#1INVESTOR PRESENTATION January - September 2023 BORUSAN MANNESMANN#21 Legal Disclaimer Some information in this presentation may contain certain "forward-looking statements", including, without limitation BORUSAN MANNESMANN BORU SANAYİ ve TİCARET A.Ş. (Company)'s business projects, strategic objectives, future revenues, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, future developments regarding acquisitions, future-oriented financial information and "financial outlook" under applicable Capital Market Laws (collectively referred to herein as forward-looking statements). Forward-looking statements provide an opportunity for the potential investors to evaluate management's forecasts and opinions in respect of the future before they make a decision to invest. These forward-looking statements reflect the Company's views at the time such statement was made with respect to future events and are not a guarantee of future performance or developments and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Accordingly, the Company's board members, advisors, or employees shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in, or omission from, this presentation, or on any other information or communications in connection with it. All information contained was believed to be accurate at the time of publication of this presentation and the Company accepts no responsibility for any spelling or printing errors that may occur during its preparation. BORUSAN MANNESMANN#32 BORUSAN MANNESMANN: LOCAL PLAYER OF GLOBAL MARKETS SALZGITTERAG Stahl und Technologie BORUSAN HOLDİNG ( 23 23% (77% D Borusan Mannesmann Yatırım Holding BMBYH 73.5% Float and Other 26.5% Borusan Mannesmann Boru San. ve Tic. A.Ş. - BMB Borusan Mannesmann Pipe "BM Pipe" - 100% Borusan Mannesmann Vobarno Tubi Borusan Tube Products "Borusan Tube Romanya" 100% Borusan Tube International "Borusan Tube Germany" 100% "BM Vobarno" - 99% Borusan Berg Pipe Panama - 100% Borusan Berg Pipe Mobile - 100% * Detailed information is available on Berg Pipe Acquisition Presentation at https://www.borusanmannesmann.com/media/2554/bmb-berg-pipe-acqusition-final-eng.pdf " Borusan Mannesman ("BMB"), is among the pioneer manufacturers in Europe's and the world's steel pipe sector. Founded in 1958, BMB is the first industrial company of Borusan Group. In 1994, the Company's shares have been quoted on Borsa İstanbul and since been trading with BRSAN ticker symbol. (Float: 19.85%) In 1998, BMB merged its operations in Turkey with Salzgitter Mannesmann GMBH; the leader steel company in Europe. In 2001, in line with its strategy to grow in global markets, BMB acquired its first company abroad in Italy, established its first company in the USA in 2014, and started an investment in Romania in 2023. Ultimately, in parallel to its strategy of positioning itself as the "local player of global markets", BMB acquired 100% of USA originated Berg Europipe Holding Corp's shares in April 13, 2023, in exchange of $162 million.* Berg Pipe financials have been consolidated into Borusan Mannesmann's financial tables as of April 13, 2023. Borusan Holding signed a share purchase agreement in June 2023 to acquire 23% share of Salzgitter Mannesmann GmbH in BMBYH's capital, for a transaction price of €52,8 million. Necessary permissions for the share transfer have been obtained. The Extraordinary General Assembly Meeting is to convene on November 21 for the amendment of Articles of Association. BORUSAN MANNESMANN#4SUSTAINABLE GROWTH IN TARGET MARKETS FACILITY PRODUCT SECTOR YEAR CAPACITY (tons) TR - Halkalı ERW and Cold Drawn Pipe 100,000 welded Industry & Construction 1958 40,000 drawn Industry & Construction, TR - Gemlik ERW Pipe 1976 550,000 Infrastructure & Project, Energy TR - Gemlik HSAW Pipe Infrastructure & Project 2011 300,000 3 Continents 11 Facilities 1.1 million m² Area 2,597 Employees 2 million ton Capacity 4,000 Product Types IT - Vobarno 3 * Commercial production to commence in the first quarter of 2024 TR - Bursa Service Center Automotive TR - Gemlik Cold Drawn Pipe Automotive USA - Baytown ERW Line Pipes Energy 2016 21 mln units 60,000 welded 2019 50,000 drawn 2014 300,000 USA Baytown* SRM Pipe Industry & Construction 2023 100,000 USA - Panama City LSAW Pipe Infrastructure & Project 1979 330,000 - USA Mobile HSAW Pipe Infrastructure & Project 2007 220,000 ERW and Cold Drawn Pipe Automotive 2001 30,000 drawn RO - Romania* Service Center* Automotive 2023 21 mln units BORUSAN MANNESMANN#5INCREASING STAKEHOLDER VALUE THROUGH GROWTH ORIENTED INVESTMENTS 75% Global Market* Revenue Share Şimdi Borusan'ın büyüklüğünden herkes kendine pay çıkarabilir. 1976 Gemlik ERW Pipe Facility commenced operations 1994 BORUSAN Borusan Boru A.Ş. shares started to be traded on BIST 2001 Borusan Mannesmann Vobarno Tubi S.p.A.; the first company abroad has been acquired 2011 Gemlik HSAW Pipe Facility commenced operations 2014 OCTG Pipe Facility in Houston constructed with a $150 mln investment, has commenced operations 2019 Gemlik Automotive Pipe Line established 2021 Germany Commercial Office has been launched $1.3 billion 2023 Berg Pipe's LSAW (1979) Facility in, Florida and HSAW (2007) Facility in Alabama acquired for $162 mln $50 million 2023 SRM investment, which is worth $50 m In, continues in US, Baytown 1968 Halkalı ERW Pipe Facility commenced operations 1958 Borusan 1979 Boru has been 1969 First export has Borusan started seaborne trade established been realized 2004 The Company has 1998 Borusan and Mannesmann merged their pipe operations in Turkey been titled as Borusan Mannesman 4 * Represents total revenue generated from all products manufactured in facilities abroad and exported from Turkey. 2016 Bursa Service Center serving for the automotive segment established 2022 BMB revenues reached to $1.3 billion 2023 Romania Service Center investment, which is worth €15 min, continues BORUSAN MANNESMANN#6FOUR BUSINESS LINES MANAGING RISKS WITH THEIR POTENTIAL Revenue Breakdown* Production Centers INFRASTRUCTURE INDUSTRIAL AUTOMOTIVE ENERGY & PROJECT & CONSTRUCTION 15% C • Gemlik (TR) Panama City (USA) • Mobile (USA) Spiral Welded Pipes Products LSAW Line Pipes ERW Line Pipes 5 *As of September 30, 2023 19% C • • Gemlik (TR) Halkalı (TR) Houston (USA) ERW Natural Gas Pipes Industrial Pipe and Profiles Water Pipes Construction Pipe and Profiles SRM Installation Pipes • 13% • Halkalı (TR) . Gemlik (TR) • Vobarno (IT) Hydraulic Cylinder Pipe Cold Drawn Pipes Advance Processed Pipes Precision Pipes and Profiles C 53% • Gemlik (TR) Houston (USA) ERW Line Pipes • OCTG Pipes BORUSAN MANNESMANN#7CO 6 STRONG REVENUE SHARE IN GLOBAL MARKETS USA 41% REGIONAL BREAKDOWN 9M22 (%) REGIONAL BREAKDOWN 9M23 (%) EXPORT REVENUES ($ mln) Exports* 28% 328 EU 278 3% EU USA 4% 63% 73% Turkey 27% O 75% Turkey 25% Revenue share of global markets increased to 75% as of 9M 2023. * Exports from Turkey to EU and US operations are consolidated under the relevant operations. 113 Exports* 10% 2021 END 2022 END 9M2023 BORUSAN MANNESMANN#87 NORMALIZATION OF REVENUE AS A RESULT OF THE SUPPLY-DEMAND BALANCE IN 3Q 2023 SALES VOLUME (ton) REVENUE (mIn $) EBITDA (mln $) & EBITDA MARGIN (%) PROFIT BEFORE TAX (min $) NET INCOME (min $) г 9.7% 11.7% 934 24.6% 1,164 5.8% LL 625 686 224 220 250 9M22 9M23 3Q22 2Q23 3Q23 9M22 9M23 3Q22 2Q23 3Q23 r 142.8% 12.2% 55.5% 23.7% r 326.9% 25.7% 16.4% 200 11.1% 112.1% 327.7% 149 131.8% 359 391 379 276 62 79 29 114 40 100 47 14 21 9 57 35 9M22 9M23 3Q22 2Q23 3Q23 9M22 9M23 3Q22 2Q23 3Q23 9M22 9M23 3Q22 2Q23 3Q23 Annual volume change as of 3Q 2023 based on business lines: + Infrastructure and Project: 161.8% increase - + Automotive: 7.2% increase + Industrial and Construction: 5.2% increase Energy: 27.2% decrease Annual volume change as of 3Q 2023 based on business lines: + Infrastructure and Project: 124.6% increase + Automotive: 0% Industrial and Construction: 10.9% decrease Energy: 14.2% decrease - Normalization of exceptional profitability generated in 1H23, as a result of decreasing volume and sales prices in the energy business line in 3Q Negative impact on profitability of the production costs affected by the fx volatility and inflation + Diminishing financing costs with decreasing working capital and financial loans - Diminishing net income as a result of declining gross profitability in 3Q as well as rising tax rates BORUSAN MANNESMANN#9REVENUE ($ mln) REVENUE SHARE 8 BUSINESS LINES MITIGATING THE EFFECTS OF GLOBAL VOLATILITY 88 INFRASTRUCTURE 15% & PROJECT 19% INDUSTRIAL & CONSTRUCTION AUTOMOTİVE ENERGY 13% 53% 93.3% -27.2% 124.6% 314 170 229 -14.8% 177 -10.9% 0% 151 98 87 66 73.1% 614 -14.2% 355 51 "0" 217 48 51 166 142 98 44 60 9M22 9M23 3Q22 2Q23 3Q23 9M22 9M23 3Q22 2Q23 3Q23 9M22 9M23 3Q22 2Q23 3Q23 + Contribution of Berg Pipe, which has been consolidated as of April + Increasing share of high value added spiral welded pipe sales Negative effect of economic volatility in the operating areas The pressure on sales price resulting from the decreasing raw material prices Contracting demand particularly in Europe and resulting negative impact on revenue 9M22 9M23 3Q22 2Q23 3Q23 Normalization of revenue as a result of supply and demand beginning to balance in the 2. Half of the year BORUSAN MANNESMANN#109 SUMMARY INCOME STATEMENT ($ MLN) CONSOLIDATED ($ mln) 9M23 9M22 Change (%) 3Q23 3Q22 Change (%) 2Q23 Revenue 1,164 934 24.6% 379 359 Gross Profit 280.5 103.3 171.5% 59.5 39.1 5.8% 52.4% 391 108 Gross Profit Margin (%) 24.1% 11.1% 13.0 p.p. 15.7% 10.9% 4.8 p.p. 27.6% Operational Expenses (69) (43) 58.8% (23) (15) 45.9% (27) OPEX Margin (%) (5.9%) (4.6%) 1.3 p.p. (6.0%) (4.3%) 1.7 p.p. (7.0%) Other 26 27 (3.8%) 7 8 (14.6%) 9 EBIT 238 88 172.0% 44 32 38.2% EBIT Margin (%) 20.5% 9.4% 11.1 p.p. 11.6% 8.9% 2.7 p.p. 90 22.9% Financial Expenses (39) (41) Profit Before Tax 200 47 (5.2%) 326.9% (15) (18) 29 14 (16.6%) 112.1% (10) 79 PBT Margin (%) 17.1% 5.0% 12.1 p.p. 7.6% 3.8% 3.8 p.p. 20.2% Net Income 149 35 327.7% 21 9 131.8% 57 Net Income Margin (%) 12.8% 3.7% 9.1 p.p. 5.5% 2.5% 3.0 p.p. 14.6% Amortisation 38 26 45.2% 18 8 123.7% 11 EBITDA* 276 114 142.8% 62 40 55.5% 100 EBITDA Margin (%) 23.7% 12.2% 11.5 p.p. 16.4% 11.1% 5.3 p.p. 25.7% BORUSAN * EBITDA is calculated including Net Operating Income, Income from Investment Activities and excluding Extraordinary Income (Expense). MANNESMANN#11SUMMARY INCOME STATEMENT (TRY MLN) 10 * CONSOLIDATED (TRY mln)* 9M23 9M22 Change (%) 3Q23 3Q22 Change (%) 2Q23 Revenue 25,734 14,834 73.5% 10,156 6,289 61.5% 8,151 Gross Profit 5,975 1,641 264.2% 1,594 687 132.1% 2,248 Gross Profit Margin (%) 24.1% 11.1% 13.0 p.p. 15.7% 10.9% 4.8 p.p. 27.6% Operational Expenses (1,525) (685) 122.6% (605) (274) 120.4% (568) OPEX Margin (%) (5.9%) (4.6%) 1.3 p.p. (6.0%) (4.3%) (1.7 p.p.) (7.0%) Other 567 436 29.9% 183 151 21.4% 187 EBIT 5,017 1,392 260.4% 1,172 563 108.1% 1,867 EBIT Margin (%) 20.5% 9.4% 11.1 p.p. 11.6% 8.9% 2.7 p.p. 22.9% Financial Expenses (867) (649) 33.6% (403) (314) 28.4% (219) Profit Before Tax 4,149 743 458.8% 769 249 208.4% 1,649 PBT Margin (%) 17.1% 5.0% 12.1 p.p. 7.6% 3.8% 3.8 p.p. 20.2% Net Income 3,093 554 458.1% 556 169 228.9% 1,190 Net Income Margin (%) 12.8% 3.7% 9.1 p.p. 5.5% 2.5% 3.0 p.p. 14.6% Amortisation 846 416 103.3% 449 147 204.8% 228 EBITDA** 5,863 1,808 224.2% 1,621 710 128.2% 2,095 EBITDA Margin (%) 23.7% 12.2% 11.5 p.p. 16.4% 11.1% 5.3 p.p. 25.7% BORUSAN Margins calculated on TRY based Consolidated Income Statement vary from margins calculated on USD dollar figures due to fx translation differences. ** EBITDA is calculated including Net Operating Income, Income from Investment Activities and excluding Extraordinary Income (Expense). MANNESMANN#12SUMMARY BALANCE SHEET AND FX POSITION BALANCE SHEET CASH DEBT BREAKDOWN - ($ mln) 3Q23 2Q23 2022 3Q22 ($ min) DEBT € Cash and Cash Equivalents 134 178 83 77 CASH Trade Receivables 191 224 251 204 TL Inventories 526 475 335 412 82% 12% 63% Current Assests 986 953 735 754 134 Non-Current Assets 865 857 741 665 6% TOTAL ASSETS 1,850 1,810 1,476 1,419 O 22% 396 15% Short Term Borrowings 297 277 424 460 Trade Payables 253 229 203 249 Short Term Liabilities 846 779 681 747 On October 2, 2023, TRY500 million bond with four coupon payments, 365 days of maturity, fixed interest rate of 45% and redemption date of October 1st, 2024 has been issued for the qualified investors in domestic market. Long Term Borrowings 99 139 79 66 Long Term Liabilities 235 255 161 143 NET DEBT*/EBITDA Paid in Capital 69 69 69 69 448 Equity 769 776 634 530 420 TOTAL LIABILITIES 1,850 1,810 1,476 1,419 3.7X 2.1X 262 238 ($ mln) 3Q23 2Q23 2022 3Q22 Net Working Capital 464 470 382 368 Net Debt 262 238 420 448 9M22 2022 1H23 9M23 0.7X 0.6X 11 * Net Debt/EBITDA ratios are calculated using EBITDA for the last twelve months. BORUSAN MANNESMANN#1312 STRONG CASH GENERATION ABILITY THROUGH EFFECTIVE EXECUTION EBITDA ($ min) FREE CASH FLOW ($ min) 59 -76 276 -57 сл 5 208 81 EBITDA Change in Net Tax and Other Investment Dividend Working Capital Free Cash Flow 259 -51 -154 Cash 2022 Cash Inflow From Operating Activities Cash Outflow From Investing Activities 134 Cash Outflow From Financing Activities Cash - 9M23 BORUSAN MANNESMANN#14OUR REVIZED 2023 GUIDANCE 2022 ACTUAL CHANGING DYNAMICS 2Q 2023 OLD 3Q 2023 REVIZED Sales Volume: 853,000 Tons + Contribution of Berg Pipe Falling volume in Energy business line Limited exports Revenue: $1.34 Billion + Contribution of Berg Pipe Normalized sales prices Contracting demand EBITDA Margin: 14.9% Decrease in steel prices Rising inflation FX fluctuation Rising production costs 13 * Excluding extraordinary items 1.00 1.15 mln tons 1.10 1.30 mln tons - $1.5 1.8 billion $1.7 2.0 billion < 20%* BORUSAN MANNESMANN#1514 OUR TARGET: POSITIONING BMB FOR THE FUTURE GROWING STAKEHOLDER VALUE COMPETITIVE ADVANTAGES -Qualified human resources with agility to take prompt action and vision to turn crises into advantage - Quality and leading brand perception -Strong customer satisfaction thanks to customer and solution focused approach at the maximum ■ Preferred manufacturer by suppliers due to value-added products, continuous growth and reliable partner approach -Wide product portfolio continuously supported by new investments ■ Ranked 1. in Europe in cold drawn pipes and leading manufacturer in the USA in welded steel pipe market ■ Balanced portfolio approach with presence in geographies and segments having different dynamics FOCUS FOR TRANSFORMATION ESG oriented cultural transformation Compliance studies on CBAM (Carbon Border Adjustment) ■ Digitalization of processes ■ Efficiency in operations. ☐ Profitability oriented sustainable growth in business lines and geographic regions The integration of acquisitions and investments in new regions in the most efficient manner ■Generating value add with smart pipes, enabling customer and product communication ■ Targeting new markets with hydrogen, carbon capture and energy storage products STRATEGIC ACTIONS Infrastructure and Project: Growth in Northern America Market with Berg Pipe acquisition in the USA ■ Industrial and Construction: Increasing the weight of new products in the portfolio through SRM investment in the USA ■ Automotive: Penetration in Tier 1 - Tier 2 customer segments in Europe with the Service Center investment in Romania Energy: Sustaining profitable revenue growth by weighing on automation and robotics investment in existing lines Constantly evaluating acquisition and mergers options with a focus on efficiency BORUSAN MANNESMANN#1615 OUR ENVIRONMENT, SOCIAL, GOVERNANCE (ESG) ORIENTED ACTIONS PRIORITIES RELATED KPI'S RELATED SDG INNOVATION GOVERNANCE CLIMATE HUMAN • • • • • • Occupational Health and Safety Social Contribution Effective People Management Waste Management • Circular Economy • Combating Climate Crisis Transition to Zero Carbon Economy Sustainability in Supply Chain Effective Risk ve Crisis Management Excellence in Customet Relations Adopting Innovative Business Models New Product and Innovation Digital Transformation Artificial Intelligence • Operational efficiency Decrease in Frequency and Weight of Accident 5 GENDER EQUALITY Female Employee Rate . Employee Loyalty • Talent Retention Rate • Reduction of Scope 1 and 2 Emission 6 CLEAN WATER AND SANITATION • Reduction of Waste Reduction of Water Consumption • Increase of Recycled Water . Compliance with Corporate Governance 8 DECENT WORK AND ECONOMIC GROWTH Principles • All Sustainability KPI's Green Purchase at Supply Chain Revenue Generated from Innovative Business Models Implementation of Circular Business Model (Product or Service) 8 DECENT WORK AND ECONOMIC GROWTH 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Ma QO 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 13 CLIMATE ACTION 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 17 PARTNERSHIPS FOR THE GOALS BORUSAN MANNESMANN#17BORUSAN MANNESMANN Telephone Fax 0 212 3935800 0 212 2933165 E-mail [email protected]