Message From The Chairman Of The Board Of Directors

Dear Shareholders,

The growth period that the world economy enjoyed in the past several years ended in the last quarter of 2008 with the US-based financial crisis. 2008 will be remembered as a year when the developed, great economies were confronted with a global financial crisis, resulting in a global recession.

Although the shock waves of the economic crisis reached Turkey in 2008, the impact was felt towards the end of the year, thanks to the fact that our country was at the perimeter of these developments. However, entering into a crisis psychology was inevitable. Structural arrangements, such as “lean management” implementations and strategic planning efforts, which were initiated during previous years, helped our companies to be well-prepared against any crisis. Thus, our companies were protected against the crisis, which began in the last quarter of the year.

In 2008, Ülker Bisküvi took the potential impact of the financial crisis of the last quarter of the year into account, and managed to reach its objectives according to plan, and in spite of an intense competitive environment. The dynamics of the food sector, where Ülker Bisküvi operates, offered an important advantage for our Company. Since the food sector is not among the first three sectors that consumers will cut back on, it can be assumed that our sector will be impacted less by the existing economic conditions than other sectors.

Ülker Bisküvi, celebrating its 65th anniversary in 2009, gained its consumers’ confidence by constantly emphasizing quality and efficiency in its structure. Focusing on the needs and demands of its consumers, the Company enjoyed a year of success, despite the unfavorable environment caused by macroeconomic conditions. In 2008, the net sales of Ülker Bisküvi reached TRY 1,412 million, and the operating profit was TRY 112 million.

The Company gained a competitive advantage by presenting the best quality in the most efficient way to its consumers, thanks to realized investments and newly developed products by the R&D teams in 2008.

Implementations, which were already in effect in the existing corporate structure, have been rearranged along Corporate Governance Principles, with the amendments made in the Articles of Incorporation in 2008. According to the changes in the Articles of Incorporation, the number of independent members on the Board of Directors was raised from two to three. The Corporate Governance, Audit and Risk Committees were set up.

Transparency, accountability and responsibility was adopted in all of our business processes and in our relations with all stakeholders. With the changes introduced, in regards to increased effectiveness and efficiency in corporate actions, reporting safety and compliance with legal regulations, the solid structure of Ülker Bisküvi was strengthened even more.

At Ülker Bisküvi, we assign great value to our consumers’ opinions and expectations. We believe that our Company will continue to differentiate itself, thanks to its capacity to develop product concepts in accordance with customer needs. Our integrated structure, advanced technology, strong distribution network, and our relationship with our suppliers based on trust, constitute major advantages for Ülker Bisküvi. With the help of the synergy from the Godiva acquisition of 25.23%, solid capital structure, export activities in 110 countries and a wide distribution network, Ülker Bisküvi will carry its successes into 2009 as well.

Yours Sincerely,
Murat ÜLKER
Chairman of the Board