2006 H1

Economic IndicatorsEconomic Indicators

• Stabilization of financial markets• No major impact in 2006 of May – June adjustments

Inflation - Devaluation - GNP Growth

-15%-9%

8% 6% 5%5%

5% 11% 11%14%

31%

14%

89%

6%

0%

16%6%

114%

-4%

14%10%

5%4% 3%

-30%

-10%

10%

30%

50%

70%

90%

110%

inflation 89% 31% 14% 14% 5% 11% 11% 5%

devaluation (USD) 114% 14% -15% -4% 0% 16% 6% 6%

GNP Growth Rate -9% 8% 6% 10% 5% 4% 3% 5%

2001 2002 2003 2004 2005 2006 2007 2008

GNP Growth & Construction Sector GNP Growth & Construction Sector

Real Growth of GNP & Construction Sector

8.3%3.9%

6.1%9.9%

4.3% 5.3%7.6% 6.3%

-12.5%

4.6%

25.9%

-6.1%

9.4%9.8%8.0% 7.1%

-6.1%-9.3%

7.8%5.9% 5.3%

21.5%

19.7%19.7%

-1.1%

14.9%

-5.4% -4.7%

5.8% 5.0%0.7%

5.8%

-7.1%

-4.9%

-9.0%

16.5%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

gnp growth

construction growth

• Construction has not suffered from financial turbulance• Lower growth in housing will be more than offset by infrastructural projects

Construction Expenditures 1987-2005Construction Expenditures 1987-2005(at constant prices 1987=100)(at constant prices 1987=100)

Gross Fixed Capital Formation (1987=100)

10075 76 86 85 87 97

62 6382

101126 124

163130

156114

86 100

100

72 8291 92 93

93

8561

78

99

10690

101

90

91

94

91106

100

120124

120 116 123139

149163

160

160

157

143

129

119101

90

103

134

16%15%

16%

15% 14% 15%15%

14% 14% 14%13%

12%12%

10%

9%9,7%

8%

14%

15%

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Public Building Construction Public Other Construction Private Building & Housing Construction Construction a % GDP

Construction Expenditures 2005-2006Construction Expenditures 2005-2006

Gross Fixed Capital Formation (Expenditure on the gross domestic product)

2005 2006Q1Public sector mio USD

building construction 3,132 10% 3%other construction 8,399 26% 18%

Private Sector mio USD

building construction 21,280 65% 79%Total 32,811

Building Permits 2005

77,361,286 77.8% 21,961 77.8%

16,910,569 17.0% 4,812 17.0%

5,160,538 5.2% 1,449 5.1%

Total 99,432,393 28,222

Area (m2)

Private Housing

Commercial & Industrial Buildings

Public Buildings

Value (mio USD)

GNP per capita vs. Cement Consumption per GNP per capita vs. Cement Consumption per capitacapita

TURKEY GNP Capita vs Cement Capita

500 481

1.150

1.750

1.250

2.700

2.161

3.218

2.123

3.383

5.008

4.172

2.584

3.025

150

220

330

241

370

440

504

445

476

366

524

385

487

427

0

1000

2000

3000

4000

5000

6000

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

$/head

150

200

250

300

350

400

450

500

550

600

kg/head

GNP Capita Cement Capita

• Increase in consumption from 385 kg/head in 2002 to 487 kg/head in 2005• GNP/capita increased from 2,584 $/head in 2002 to 5,008 $/head in 2005

Cement SectorCement Sector

29.826.7

30.132.1 32.7 34.1

31.7 31.5

25.3 26.8 28.130.7

35.1

43.044.7

3.2

5.2

4.63.7

4.64

4.66.6

8.6

10.410.4

10.7

9.7

7.07.0

34.8 35.436.9

38.840.5 40.2

41.5

43.9 43.945.3 45.5 46.3

50.452.1

58.0

45.446.9

52.2

31.3 31.933.2

34.936.5 36.1

37.339.5 39.5

40.7 41.0 41.7

0

10

20

30

40

50

60

70

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 F 2007 F

mio

tons

domestic consumption exports (cement + clinker) cement production capacity 100 % cement production capacity 90%

Company StructureCompany Structure

Akçansa is a Joint Venture between HC and Sabancı

Created in October 1996 by the merger of: Akçimento (Sabancı) Çanakkale Çimento

Quoted in the stock market

SABANCI GROUP; 32,2%HC - CBR

GROUP; 39,7%

FREE FLOAT; 20,6%

AKSİGORTA; 7,5%

IZMİR

ANKARA

KILN+GRINDING

CEMENT TERMINAL

CEMENT GRINDING

ALİAĞA

ÇANAKKALE

BÜYÜKÇEKMECE

AMBARLI KARÇİMSA*

KARAMÜRSEL

Capacity (mt/year)1,850,000 clinker2,800,000 cement Capacity (mt/year)

200,000 cement

Capacity (mt/year)1,900,000 clinker3,500,000 cement

+ 20 RMC plants

(*) Partnership between Akçansa (51%) and Kardemir Steel works (49%)

Capacity (mt/year) 577,500 clinker

1,160,000 cement

LADİK

LocationsLocations

2006 H12006 H1• Small financial crisis

• Strong domestic sales growth

• Price increase by 10% compared to Dec 2005

• Clinker imports

• ÇNK Investment Ground Breaking Ceremony

H2 Expectations

• Continued domestic growth

• Reduced exports

• Alternative fuel projects

Domestic Market PerformanceDomestic Market Performance

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000('000 ton)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Volumes 3,416 2,835 2,794 2,167 2,102 2,318 2,648 3,104 3,690

$/ton 77.2 71.4 56.1 60.9 61.9 53.7 60.2 63.3 64.7

YTL/ton 103.6 95.8 75.3 81.8 83.0 72.1 80.7 84.9 96.7

1998 1999 2000 2001 2002 2003 2004 2005 2006

1.827

H1/06

1.426

H1/05

Export PerformanceExport Performance

• Low exports due to kiln stop and higher domestic demand

0

250

500

750

1.000

1.250

1.500

1.750

2.000

('000 ton)

0

10

20

30

40

50

60

70

80

90

100

Volumes 1.128 1.126 1.537 976 940 1.379 1.223 795 805

$/ton 58,2 59,1 49,3 64,6 48,9 36,9 35,7 36,7 45,2

Local $/ton 34,8 33,8 28,6 31,2 28,5 27,3 30,5 36,2 45,2

1998 1999 2000 2001 2002 2003 2004 2005 2006

383

H1/06H1/05

363

RMC Sales PerformanceRMC Sales Performance

0

500

1,000

1,500

2,000

2,500

3,000

('00

0 m3 )

0

10

20

30

40

50

60

70

80

90

Volumes 2,165 2,114 2,216 1,328 1,536 1,702 2,018 2,402 2,650

$/m3 59.4 60.9 52.4 52.0 46.1 44.0 46.5 45.3 47.8

YTL/m3 79.7 81.7 70.3 69.7 61.8 59.0 62.5 60.7 71.3

1998 1999 2000 2001 2002 2003 2004 2005 2006

H1/06

1.3141.104

H1/05

Production Performance (PÇ 42.5)Production Performance (PÇ 42.5)

PÇ 42.5 VC (Rest @ 2006/12)

17 15 12 12 13 13 13

4 4

32

2425 25 22 22 22

41

3429 27

25 24 24

3

2

2 23 3 3

5 44 4 4

333

23 3 3

6869707374

100

82

0

20

40

60

80

100

02A 03A 04A 05A 06B 07 08

Raw material Additives Operating Material Fuel Electricity Other Total

Fixed CostsFixed Costs

• Decrease in fixed costs by 48% (1999 to 2006)

AKÇANSA Fixed Costs Rest US$ @ dec 06 p.p.

9,7 7,3 5,5 4,9 6,3 7,1 5,8 5,9 5,6

33,5 37,032,7 29,8 24,4 23,8 24,7 23,7 21,8

27,6 29,5

23,0

15,011,0 10,7 10,7 11,7

10,1

10,412,2

11,8

11,6

8,4 7,6 7,1 7,87,4

45,0

73,0

61,3

50,249,2 48,3 49,2

0

20

40

60

80

100

120

98 99 00 01 02 03 04 05 06B

material payroll external services other

86,081,2

Akçansa Financial StatementsAkçansa Financial Statements(2006H1 vs 2005H1)

Actual Actual Variance

(2005 restated KUSD @ December pp) 2005 H1 2006 H1

Domestic Sales 135.916 178.878 42.962

Export Sales 13.106 15.561 2.455

Total Gross Sales 149.022 194.439 45.417Distribution Costs 8.744 11.873 3.129

Net Sales 140.278 182.567 42.288Variable Costs 74.182 88.097 13.915

Gross margin 66.096 94.469 28.373

% of Sales 44,4% 48,6%Fixed Costs 28.324 28.324 -1Other Operating Income and Charges -1.233 389 1.622

Operating income bef. Depr. 36.539 66.535 29.996

% of Sales 24,5% 34,2%

Operating income 24.571 53.448 28.878

% of Sales 16,5% 27,5%

Non Operating Income -809 -321 489

Dividends 22.188 3.351 -18.836

Financial Result 4.762 7.955 3.193

Net Monetary Gain/Loss -747 0 747

Income before taxes 49.964 64.434 14.469

Income Taxes 8.483 13.548 5.066

Net Income 41.481 50.885 9.404

Deferred Tax 248 -12.069 -12.317

Net Income after deferred tax 41.234 62.954 21.720

Variance AnalysisVariance Analysis2006H1 vs 2005H1(rest K USD @ 2005Q4 pp)

30.765-V

8.016- P

-87-V

2.645- P

-14.515-V

895- C

0

878

-1.118

318 1.081

28.878

-20.000

-16.000

-12.000

-8.000

-4.000

0

4.000

8.000

12.000

16.000

20.000

24.000

28.000

32.000

36.000

40.000

Domestic Export V.Cost Fixed Cost Other Op.Inc/Ch. Depr. FX Diff. Opr.Mon G/L Net Op. Income

Financial Position (2006H1)Financial Position (2006H1)

mio USD 2006H1

Cash 24.7

Marketable Securities 19.1

Financial Fixed Assets 100.9

- Çimsa 48.8

- Enerjisa 28.7

- Liman İşletmeleri 14.8

- Other 8.6

Financial Debt 1.2

Net Financial Position 143.5

Akçansa and the CommunityAkçansa and the Community

• Akçansa has been selected as the biggest and the most profitable cement producer in Turkey and has been upgraded to the 71st rank in 2005.

• The construction of the Akçansa-Fatih Sultan Mehmet Primary School is completed, the school will be inaugurated on the 18th of September in the context of the 10th year celebrations of Akçansa after the merger. (43 classes and 1500 students)

Contacts

Christian Leclercq CFO - AKÇANSA christian.leclercq@akcansa.com.trNeşe Soybaş Manager - SABANCI nozgun@sabanci.comBanu Üçer Communication Officer - AKÇANSA banu.ucer@akcansa.com.tr

Websites

www.akcansa.com.trwww.betonsa.com.trwww.sabanci.com.trwww.heidelbergcement.com

AppendixAppendix

World Cement Prices (+/- % 5)

130

107 105100

9289 88

85 84 83 81 81 81 81 80 78 78 77 77 75 75 74

65 65 65

50

40

64

0

20

40

60

80

100

120

140

USD/ton

Akçansa

Akçansa

Italcementi

Cementir

Cementir

Cementir

Batı

Batı

Denizli

NUH

Bursa

Italcementi

Göltaş

ADO

LF

Italcementi

Italcementi

OYAK

OYAK

OYAK

OYAK

OYAK

YİB-LF

YİB-LFYİB-LF

Çimsa

Çimsa

Çimsa

OYSA

ASKALE

ASKALE

LIMAK

LIMAK

Orascom

Türkerler

Türkerler

Vicat

Vicat

Cement Plant Grinding Mill

Karçimsa

OYSA

ADO

LF Aytek

YİB-LF

Batı

Major investment in ÇNK plantMajor investment in ÇNK plant• Major contracts have been

signed

• Equipment mainly will come from China, Germany and other European countries

• Erection and construction with local contractor

• Ground breaking ceremony on June 19

• The clinker capacity of ÇNK plant will increase by 100 %: +1.9 mio tons

• Cost of investment is 135 Mio USD

• State-of the-art & environmentally friendly production technologies will be used

Total Cement ConsumptionTotal Cement Consumption

('000 tons)1998 1999 2000 2001 2002 2003 2004 2005

Total Turkeyconsumption 34,127 31,530 31,515 25,082 26,811 28,106 30,671 35,083

% growth -7.6% 0.0% -20.4% 6.9% 4.8% 9.1% 14.4%

Total Akçansa 3,412 2,783 2,792 2,167 2,102 2,318 2,648 3,104

% growth -18.4% 0.3% -22.4% -3.0% 10.3% 14.2% 17.2%Total Marmara

consumption 9,723 8,961 8,326 6,135 6,507 7,093 8,215 9,773% growth -7.8% -7.1% -26.3% 6.1% 9.0% 15.8% 19.0%

Total Marmara in Turkey 28.5% 28.4% 26.4% 24.5% 24.3% 25.2% 26.8% 27.9%

Akçansa Marmara 3,085 2,508 2,504 1,836 1,850 2,076 2,382 2,819

% growth -18.7% -0.2% -26.7% 0.8% 12.2% 14.8% 18.3%Total Aegean

consumption 4,683 3,941 3,864 2,981 3,000 3,445 3,978 3,907% growth -15.8% -2.0% -22.8% 0.6% 14.8% 15.5% -1.8%

Total Aegean in Turkey 13.7% 12.5% 12.3% 11.9% 11.2% 12.3% 13.0% 11.1%

Akçansa Aegean 327 275 288 184 218 242 266 286% growth -15.9% 4.7% -36.2% 18.4% 11.4% 9.7% 7.4%

Akçansa Market SharesTurkey 10.0% 8.8% 8.9% 8.6% 7.8% 8.2% 8.6% 8.8%Marmara 31.7% 28.0% 30.1% 29.9% 28.4% 29.3% 29.0% 28.8%Aegean 7.0% 7.0% 7.5% 6.2% 7.3% 7.0% 6.7% 7.3%

Ladik AcquisitionLadik Acquisition

• 140.25 Mio USD, best bid given by AKÇANSA:– Refused by Competition Board

– According to the Tender Process, has been granted to the second best bidder, i.e. Turkerler

– Akçansa appealed to the decision and as of March 7, the Council of State approved the suspension order

• Capacity:

– 577 k tons Clinker

– 1,162 k tons - Cement

• Market share: 10.7% in Black Sea Region/1.5% in Turkey

• Technology:

– Dry kiln with 4 stages preheater

– Includes a Paper-bag Plant

• Financing: Mixed (available cash and debt)

GNP & Cement ConsumptionGNP & Cement Consumption

GNP & Cement Consumption

8%

-6%

4%

10%

0%

8% 6%

-1%

22%

2%

12%

-8%

-25,0%

-20,0%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

GNP Growth

Cement ConsumptionGrowth

’83 Nov Elections83-87 ANAP Period Avr.GNP : 6.4 %Avr.cc : 15.1 %

’87 Nov Elections88-91 ANAP Period Avr.GNP : 3.2 %Avr.cc : 1.2 %

’91 Oct Elections92-95Period Avr.GNP : 4.1 %Avr.cc : 6.0 %

’95 Dec Elections96-98 Period Avr.GNP : 6.4 %Avr.cc : 4.2 %

’99 Apr Elections99-03 Period Avr.GNP : -0.4 %Avr.cc : -5.2 %

’02 Nov Elections03-05 AKP Period Avr.GNP : 7.8 %Avr.cc : 9.3 %

* The chart on the right shows the new picture after the sale of formerly seized Uzan Plants in October

AFTERBEFORE

Akçansa11,1%

Oysa1,0%

Oyak16,8%

Italcementi7,2%

Batı5,5%Cementir

6,2%

Vicat5,0%

Lafarge3,2%

Nuh10,3%

Bursa3,5%

Others21,2%

Yibitaş LF4,1%

Çimsa4,9%

Çimsa3,6% Akçansa

9,6%

Oyak16,8%

Vicat5,0%

Nuh10,3%

Others15,8%

Cementir4,8%

Lafarge3%

Yibitaş LF4,1%

Batı5,5%

Italcementi7,2%

Rumeli9,7%

Bursa3,5%

Oysa1,0%

Capacity BreakdownCapacity Breakdown

(9.6%)(3.6%)

Pre-calciner investment in ÇNK plantPre-calciner investment in ÇNK plant

• Investment amounting to USD 4.6 mio

• Allowing to burn 100 % petcoke

(full flexibility in fuel mix)

• Expected cost saving : decrease of

fuel cost by 24 % per ton of clinker

produced

Due to the pre-calciner investment, our ÇNK plant stopped for 8 weeks, and became operational by the beginning of May 2005.

Environmental investmentsEnvironmental investments

• USD 18 million allocated to environmental investments between 1997-2004.

• Both our plants certified by BSI with ISO 14001 Envrionmental Management System.

• Our BÇM and ÇNK cement plants are the first plants in Turkey to receive Ministry of Environment & Forestry R134-001 and R117-001 certificates authorizing the use of alternative fuel. – Currently tyres are burnt – Waste oil : in both plants– Expected cost saving is 3 % per ton clinker produced. (2005)

We started burning tyres in our BÇM plant...We started burning tyres in our BÇM plant...

Emission values in different countriesEmission values in different countries

dust

mg/Nm3

SO2,

mg/Nm3

NOx

mg/Nm3

Austria 50 200 500/1000

Belgium 50-150 1000 1800

Denmark 50 250 1200

Finland 50 150-400 1200-1800

France 50 500 1200/1500/1800

Germany 50 400 500

Grece 100

İrland 50 400 1300

İtaly 50 600 1800

Luxemburg 30 100 800

Netherlands 15 (l) 1300

Portugal 50 400 1300

Spain 100 600 1300-1800

Sweden 50 - <200

UK 40 200 900

Turkey 120/50 300 1300/1800

Akçansa

(2004 (Actual)

23/50/38 65/37/30 596/747/610

570529

297309349347

1005

798

709

1227

374

10411087

177205

360

418

279289

554

411

239

132

581

214

384

0

200

400

600

800

1000

1200

1400

0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000

Latvia

RomaniaEstonia

Czech Rep.

TURKEY Hungary

Slovenia

Ireland

PortugalSpain

Greece

Italy

Belgium

Austria

Iceland

GermanyFinland

UK Sweden

France

NorwayDenmark

Netherlands

Switzerland

Luxemburg

2003

Cement per capita in other countriesCement per capita in other countries

PE

R C

AP

ITA

CE

ME

NT

CO

NS

UM

PT

ION

(k

g / per p

erson)

GNP PER CAPITA

Shift to higher strength rmc Shift to higher strength rmc classesclasses

0,0

20,0

40,0

60,0

1996 37,3 52,3 6,4 3,4 0,6

1997 27,0 51,1 12,0 7,6 2,3

1998 24,4 45,4 18,0 8,1 4,1

1999 22,7 35,9 27,6 10,3 3,3

2000 12,0 26,2 43,0 13,8 5,1

2001 7,0 21,3 47,9 18,0 5,8

2002 5,9 21,1 46,9 19,2 6,9

2003 4,6 14,7 39,6 25,4 15,7

BS 14 BS 18 BS 20 BS 25 BS 25 +

%

Source : THBB

in the world + C25Belgium 75%Finland 95%Germany 83%Ireland 80%Norway 80%Spain 90%Sweden 95%England 70%

Akçansa Extended Executive CommitteeAkçansa Extended Executive CommitteeEXTEN DED EXEC U TIVE C OM M ITTEE

Strategy & Bus. Dev. Mng.-Nevra ÖZHATAY

In ternal Audit ManagerYavuz ÜNA L

Ass.Gn.Mng.-Cem ent Sales & MarketingTayfun ÖNEŞ

Ass.Gn.Mng.-RMC & PurchasingHakan GÜRDA L

Ass.Gn.Mng.-Hum an ResourcesA.Özer ERMAN

Plant Manager-ÇanakkaleHasan İME R

Ass.Gn.Mng.-OperationsAhmet Vasfi PEKİN

Ass.Gn.Mng.-F inanceChristian LECLERC Q

Karçim sa Company ManagerŞahap SARIER

General ManagerMehmet GÖÇME N

Cem MAY

Doğan ÖZKUL

Plant Manager – BÇM

İlkfer AKMAN