#1Tüpras TK-0018 T PROCKE EXT K-401 K-0048 Koc Investor Presentation February 2019.#2Disclaimer This presentation contains forward-looking statements that reflect the Company management's current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Tüpraş nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation. Investor Presentation www.tupras.com.tr Hizmete Özel / Confidential#3Content Investor Presentation www.tupras.com.tr CONTENT Refining Market Slides • Turkish Market Slides 4-10 12-15 Company Overview Slides 16-24 Operations Slides 26-31 Key Financials Slides 33-44 • Outlook Slides 46-50 Appendix Slides 52-56 3#4产 <79246 OC 126D-013 OT ATM.RESISURGE DRUM REFINING MARKET#510 0 Jan-16 20 30 100 ㅇㅇ: 응 40 36.5 Brent Crude Oil Prices ($/bbl) Feb-16 Mar-16 Apr-16 Source Platts As of February 15th. Investor Presentation www.tupras.com.tr REFINING INDUSTRY May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 65.8 PROS • OPEC+ supply cut through 2018 – 1H 2019 . - • Political instabilities in Middle East, Africa and Latin America . Healthy PMI data in developing countries • Potential impact of sanctions CONS • Increase in number of rigs & shale production in US Inventory Levels • Impact of trade tariff negotiations . • Weak PMI in Europe and China 5#6Refinery Capacity Change Thousand Barrels/Day 3000 2018 2017 ■ 2016 ■ 2015 2014 2013 ■ 2012 200 1850 420 330 70 244 156 343 270 417 46 120 520 510 14998 700 300 168 200 364 0 390 0 244 530 526 400 -116 158 302 05 200 -220 -140 -546 -775 -450 -443 -130 -352 -143 -91 -158,9 Net Capacity Additions (mb/d) -268 2.3 -1600 1.8 1.8 1.4 1.7 1.3 0.9 1.0 0.5 0.6 0.3 1.8 1.5 1.5 1.3 1.1 0.6 0.0 -2750 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 China Source:, Reuters, International Energy Agency, Tüpraş, sector reports and news. Investor Presentation www.tupras.com.tr India REFINING INDUSTRY Middle East Other Asia Other Japan North America Europe 6#7Middle Distillate Cracks ($/bbl) 20 15.9* 1614.9 Diesel 14.3 13.6 13.7 13.6 12.6 12.1 12.2 12 10.4 8 7.2 4 -2016 -2017 -2018 -2019 20 19.5 Jet Fuel 18.1 15.9 16 15.5 15.0 14.4 14.4 14.1 14.4 14.4 13.7* 13.7 13.9 13.2 13.3 12 11.5 11.9 10.0 9.5 8 4 0 0 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Source: Platts As of February 15th. Investor Presentation www.tupras.com.tr REFINING INDUSTRY 6.6 12.5 15.2 14.3 11.4 9.1 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 7#8Gasoline and High Sulphur Fuel Oil Cracks ($/bbl) 24 18 18.6 13.5 12 6 10.2 -2016 -2017 2018 -2019 Gasoline -4 -4.8* -7.0 -7 High Sulphur Fuel Oil -8.7 14.4 13.4 11.9 -10 13.0 13. -11.9 12.0 12.1 -12.5 -13.0 10.6 9.7 9.6 -14 -12.7 -13.2 1.7 1.6* 0 5.5 5.0 3.5 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Source Platts As of February 15th. Investor Presentation www.tupras.com.tr REFINING INDUSTRY -17 -20 -15.2 -3.7 -8.3 -6.8 -8.5 -9.1 -13.2 -10.2 10.9 -12.2 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 8#9Quarterly Product Crack Margins ($/bbl) Compared to Q4 2017, healthy mid-distillate environment continued in Q4 (Diesel:+34%, Jet: +33%) supporting cracks, HSFO remained strong (+29%), while Gasoline cracks were weaker (-57%). Diesel -2015 -2016 -2017 2018 Jet Fuel 18 15.9 16 16 14 16 15 13.8 15 16.7 14 13.4 14 12.3 14.5 12 12 O 10 11 13.9 1213.3 12 11 13 11 10 10 77 11 12 11 10 11 10 8 9 9 8 8 6 8 8 7 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gasoline High Sulphur Fuel Oil 19 20 19 -4 18 -7 -7 -7.1 16 15 15 15 -8-9 -10.0 14 14 13 12.5 13 43 -10 -12 -12 -9 12 13 -12 -11 12.7 10 10.9 11 11 -12.6 -12.4 -13 -16 8 -16-13 -15 6 4.7 4 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Investor Presentation www.tupras.com.tr REFINING INDUSTRY 9#10Crude Price Differentials ($/bbl) Heavy Crude differentials narrowed in Q4 with Iran sanctions, OPEC+ cut decision and higher interest for fuel oil. Brent 15Q1 15Q2 15Q3 15Q4 16Q1 1601 Heavy Crude Price Differentials 16Q2 16Q3 16Q4 17Q1 17Q2 T703 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 0 -2 -4 -6 -8 -10 Iran Heavy Kirkuk Kuwait Source: Platts As of february 15th. Investor Presentation www.tupras.com.tr REFINING INDUSTRY Opec Cut Decision Basra Heavy Arab Heavy -- Ural Iran Sanctions Opec Cut Decision 10#11TURKISH MARKET#12Turkish Consumption 2015-2017 (Million tons) 2017 2016 Diesel 24.17 2017 +8.3% 2016 4.40 22.31 +8.5% 2015 2015 20.56 Jet Fuel 4.52 +2.7% -4% 4.58 Gasoline Fuel Oil* 2017 2.30 2017 0.49 -15.7% +3.1% 2016 2.23 2016 0.58 -3.5% +6.5% 2015 2.10 2015 0.60 *Bunker excluded. Source: EMRA Investor Presentation www.tupras.com.tr REFINING INDUSTRY 12#13Strong Turkish Market, 11M 2018 (Million tons) . Tüpraş is well positioned in a growing, short market. • Diesel and jet fuel consumption in Turkey grew in the first 11 months of 2018 with infrastructure projects and aviation growth. 2018 Diesel 23.13 2017 22.20 Jet Fuel +4,2% 2018 4.61 2017 4.22 +9,0% Gasoline Fuel Oil* 2018 2.16 +1,7% 2018 0.34 -21.2% 2017 2.12 *Bunker excluded. Source: EMRA Investor Presentation www.tupras.com.tr REFINING INDUSTRY 2017 0.44 13#14Turkey's Import / Export Balance (Net) (Million Tons) Source: EMRA 4 Export 3 2.4 0 -4 -3.1 -3 -8 -12 -16 Investor Presentation www.tupras.com.tr Import 2013 2014 2015 2016 2017 LPG Gasoline REFINING INDUSTRY -12.0 Diesel -13 1.0 1 0.0 0 Fuel Oil Jet 14#15Tupras LG-600 ProHang Tupras COMPANY OVERVIEW ras 1#16Tüpraş Shareholder Structure Koç Holding %77 DİTAŞ %79,98 Opet %40 Körfez Ulaştırma A.Ş. %100 *As of February 15th, 2019. Investor Presentation www.tupras.com.tr Aygaz %20 Energy Investments Inc. (SPV) COMPANY OVERVIEW %51 Opet %3 Tüpras Free Float %49 Publicly Traded *Distribution of Domestic/ Foreign Ownership of Tüpraş Shares Foreign Ownership 86% Domestic Ownership 14% 16#17Tüpraş Refining Assets & Distribution Network OPET Marmara Terminal 721,000 m3 İstanbul İzmir I İzmit Ankara Kırıkkale : 28.1 mn ton OPET LAntalya Terminal 19,392 m3 OPET Mersin Terminal 240,000 m3 Total Capacity Nelson Complexity : 9.5 Tüpraş Storage Cap. : 7.2 mn m³ OPET Storage Cap. : 1.1 mn m3 OPET Giresun Terminal 43,130 m3 Baku Turkey Storage Capacity Tüpraş : 58% Opet : 9% Batman Other Companies : 33% Crude Pipeline İzmit 11.0 MT Capacity • NC: 14.5 Storage Capacity: 3.03 mn m³ İzmir • 11.0 MT Capacity NC: 7.66 Storage Capacity: 2.51 mn m³ • Base oil 400 k tons Kırıkkale 5.0 MT Capacity • NC: 6.32 Storage Capacity: 1.41 mn m³ Investor Presentation www.tupras.com.tr COMPANY OVERVIEW Kirkuk Terminal Refinery Batman 1.1 MT Capacity • NC: 1.83 Storage Capacity:0.25 mn m³ 17#18Nelson Complexity of Refining Companies 9,7 CANADA 11.6 USA Investor Presentation www.tupras.com.tr COMPANY OVERVIEW 7,1 LATIN AMERICA N NWE 8,9 8,2 RUSSIA İzmit ref. 9,7 14,5 EAST TÜPRAŞ EUROPE 7,7 •9.5 9,9 10,4 8,9 EAST CHINA ASIA JAPAN MED 7.2 MIDDLE 9,0 EAST SOUTH 5,0 ASIA AFRICA 7,9 AUSTRALLIA 18#19Crude Suppliers of TÜPRAŞ (Million Tons) In 2018, Tüpraş purchased 20 different types of crude oil from 12 countries, with gravities ranging between 19-47 API. Investor Presentation www.tupras.com.tr COMPANY OVERVIEW Africa America ■Europe ■CIS ■Middle East 90 80 81 79 76 70 71 67 65 60 A 63 50 40 A 30 20 17 10 12 1315 10 13 '11 14 10 14 10 14 6 6 23 0 10 2.1 7 302 2012 2013 2014 2015 2016 2017 2018 19#20Sales By Customer (2018) Customer Groups Bitumen; Military; 1% 10% Export; 14% Other; 6% LPG; 3% Jet; 6% THY Opet; 10% Total: 29.8 mn tons Investor Presentation www.tupras.com.tr COMPANY OVERVIEW Dist.; 50% Sales to Distributors OTHER AKPET 8% 4% TP 1% BP 13% SHELL 17% OPET 30% POAŞ 27% Distributors : 14.8 mn tons 20#21OPET Opet expanded its retail footprint from 1,560 stations in December 2017 to 1,615 stations in December 2018. 1800 ■ Opet ■ Sunpet 1,615 1600 1,560 1,504 Market share as of 1,444 1,393 1400 1,325 1,356 463 November 2018 1,325 434 1,279 431 1200 435 427 418 410 394 1000 394 17.78% 36.18% 800 White 600 1,073 1,126 1,152 Product Black Product 885 915 938 966 1,009 400 830 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Investor Presentation www.tupras.com.tr COMPANY OVERVIEW 21#22DİTAŞ, Marine Transport -Tüpraş Share 79.98% . 3 Crude Oil Tanker: 479,765 DWT 1 Crude Oil - Product Tanker: 51,532 DWT 7 Product Tanker: 90,534 DWT 11 tugboats 7 mooring boats 2 service boats 1 pilot boat One of the biggest Turkish marine transportation companies of crude oil and petroleum products. Carries mainly Tüpraş' crude oil purchases and makes the transfer operations of product and semi-products. 25 213.5 mn $ Net Sales NO UNOKING SAFETY FAST ■ Product ■Crude Oil 6.3 6.8 17.0 20 15 10 19.3 3.1 14.8 السنا 6.6 9.3 11.8 69.1 mn $ Op. Profit 3.5 2012 2013 2014 2015 2016 2017 2018 2011 5 0 Investor Presentation www.tupras.com.tr COMPANY OVERVIEW T.SUNA T.GONUL NO SMOKING SAFETY FIRST XCANAM 22#23Körfez Ulaştırma A.Ş.- Tüpraş Share 100% Körfez Ulaştırma A.Ş. Turkey's First Private Railway Operator On 16/06/2018, Freight Train Operator Certificate. ■ On 20/09/2018, Safety Management Certificate received. ■ Operates with 491 cistern wagons and 5 diesel locomotives. ■ Ordered 5 locomotives to be delivered for Q2-2019. - - 2018 Körfez Rail Transport = 0.5 mn tons 2018 Total Rail Transport = 1.7 mn tons (*) 2019 Total Rail Transport > 2 mn tons (*) (*) including TCDD. Investor Presentation www.tupras.com.tr ~7% Market Share in Turkish Rail Freight Market COMPANY OVERVIEW Convenoco0000000000 23#24Enhancing our Trading Capabilities We have opened a trading office in London to: Closely monitor international market opportunities, Support import and export operations, Create additional value from supply chain and sales activities. O Trading office will be an important step in Tüpraş's integration to global energy market. Investor Presentation www.tupras.com.tr COMPANY OVERVIEW 24#25207 OPERATIONS#26Capacity Utilization and Quarterly Production Volume 99% Capacity Utilization in Q4 2018 (95% in Q4 2017), 96% for the whole year. Quarterly Production (Million Tons) Capacity Utilization* (%) ■ Crude Oil Semi Product Feedstock 9 2014 02015 2016 2017 2018 12M 2018 CUR: 96% 8 7.8 7.77.7 7.4 103 105 108 115 7.3 4.4 6.7 7.1 44 95 6.9 7.4 7 98.1 100.9 101.4 5.0 500 99 93 107.2 9.0 7.2 6.6 7.1 75 90.0 78 89.0 85.4 3.6 6.7 10.7 6.6 71.3 6 6.3 67.3 5.6 6.2 55.2 4.5 4 Q1 4.6 Q2 5.4 5.5 Q3 *Nameplate capacity calculated by standard 330 days of operations. Investor Presentation www.tupras.com.tr OPERATIONS 2014 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q4 2017 2018 2018 2018 2018 28#27Q4 2018 Product Yields 2017 LPG 3% Bitumen 16% Gasoline 21% 2018 Bitumen 9% LPG 3% Fuel Oil Gasoline 19% 9% Coke Fuel Oil 6% Black Black Light 3% Light Other Prod. Distil. Prod. Distil. 1% 21.0 24.7 25.2 24.9 Coke % % 3% Other Naphtha 1% Othe % Naphtha 3% 1.5% Other 2.9% Mid. Mid. 3% Distil. Distil. 47.0 52.8 % % Jet 16% Jet 17% ULSD 31% White Products Production ΑΡΙ %73.74 6.3 mn tons 30.0 Investor Presentation www.tupras.com.tr OPERATIONS ULSD 35% White Products Production ΑΡΙ %77.85 6.6 mn tons 31.1 27#282018 Product Yields 2017 LPG Bitumen 12% 4% Gasoline 20% 2018 Bitumen 12% LPG 4% Gasoline 20% Fuel Oil Fuel Oil 7% 7% Coke Black Black Coke Light Light 3% Prod. Prod. Distil. Distil. Other 3% 21.5 Other 22.6 25.0 24.6 2% Othe % Naphtha 1% 2% Othe % Naphtha 1% 1.7% 2.1% Mid. Mid. Distil. Distil. 50.3 52.2 % % Jet 17% Jet 19% ULSD 33% White Products Production ΑΡΙ %76.27 28.9 mn tons 30.3 Investor Presentation www.tupras.com.tr OPERATIONS ULSD 33% White Products Production ΑΡΙ %77.39 25.7 mn tons 30.99 28#29Domestic Sales (Million Tons) We generated 29.8 million tons of total sales 2018. Jet fuel and diesel sales increased by 7.4% and 5.3% compared to 2017, respectively. Total Sales Domestic Sales of Key Products Diesel Jet Fuel Gasoline Bitumen Domestic Sales ■ Export 31.5 30.3 21.9 29.8 21.6 28.7 20.9 2.9 5.8 3.5 5.5 4.2 18.9 3.4 6.5 2.9 2.2 25.7 25.6 22.2 24.8 2.2 2.2 22.2 14.3 2.0 4.9 5.3 1.9 4.5 4.5 1.8 4.8 16.9 3.9 10.8 11.3 11.9 9.2 6.7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Investor Presentation www.tupras.com.tr OPERATIONS 29#30Investments (Million $) Avg. 278 mn$ 9.5 Nelson complexity High white product yield Process more heavier and sour crudes • Run all refineries with 100% capacity utilization • 6 bn USD investments since privatization. Avg. 943 mn$ 1.213 Ongoing Projects 628 974 959 Avg. 247 mn$ 400 355 274 344 213 138 186 177 185 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Investor Presentation OPERATIONS www.tupras.com.tr Revamp of Crude Unit ⚫ FCC Modernization • New Sulphur Units Energy Saving Projects Optimization of conversion units 30#312018 Results Refining Margins ($/bbl) Tüpraş Net Margin 10 8 Capacity Utilisation (%) 2015 2016 2017 2018 ■Med Margin 2018 Operational (mn ton) 6 9.3 Production 4 4.6 2 0 Investor Presentation OPERATIONS www.tupras.com.tr Sales Capex (mn $) 25.7 99 104 113 96 • 96% Total Capacity Utilization in 2018 29.8 mn tons of sales and 25.7 mn tons of production in 2018 29.8 2016 213.0 2017 185.0 9M 2018 138.0 138 mn $ CAPEX in 2018 31#32KEY FINANCIALS#33Margin Environment ($/bbl) Tüpraş' 9.3 $/bbl Net Refining Margin in 2018 was higher than 4.7 $/bbl Med Complex margin. 12 Med Complex Month Premium to the benchmark Mediterranean peers' refining margin due to: • Refined products deficit characteristic to the Turkish market . • Access to cheaper sources of crude oil 10 8 5.54 6 4.21 2.89 4 1.95 1.17 1.95 1.67 2 0 -2 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Annual 5.30 4.83 3.97 4.56 . Ability to use heavier and sour crudes . Proximity to major suppliers . • Reduces transport costs Implemented cost reduction measures ● Energy efficiency programs. . Capacity to produce higher value added range of refined products • Direct pipeline connections with domestic clients ● High export capability Investor Presentation KEY FINANCIALS www.tupras.com.tr 16 Tüpraş Gross Margin Tüpraş Net Margin 14 12 12.9 11.9 11.2 10 10.6 9.6 8 6 4 6.5 6.0 4.8 4.0 Mediterranean 14.7 8.1 9.3 5.3 4.6 3.2 2 2.5 1.7 2.0 0 2013 2014 2015 2016 2017 2018 33#34Income Statement Strong EBITDA generation continued in Q4 2018, Net Income supported further with FX and tax revaluation gains. Million TL Q4 2018 Q4 2017 % 12M 2018 12M 2017 % Net Sales 24,803 14,604 70 88,552 53,948 64 COGS Gross Profit -22,778 -13,204 73 -79,328 -47,734 66 2,025 1,400 45 9,224 6,214 48 Operating Expenses -438 -357 23 -1,307 -1,150 14 Income/Loss from other operations 1,591 -265 -699 -2,181 -206 958 Operating Profit 3,178 778 308 5,736 4,857 18 Income/Loss from equity investment 72 61 18 257 234 9 Operating Profit Before Fin. Income/Loss 3,249 839 287 5,993 5,092 18 Financial Income /Expense -1,600 -85 1.786 -2,268 -618 267 Profit Before Tax 1,649 754 119 3,724 4,474 -17 Net Profit (including minority interest) 1,789 501 257 3,761 3,841 -2 EBITDA (*) Inventory Gain/Loss EBITDA CCS (*) 1,887 1,237 53 8,908 5,882 51 -212 341 -162 2,741 612 348 2,100 896 134 6,167 5,270 17 * On CMB reports, EBIT includes extra items such as FX impacts of trade receivables and payables. In our EBITDA calculation, FX related items are excluded from EBIT as customary in international practices. Investor Presentation KEY FINANCIALS www.tupras.com.tr 34#35Financial Highlights (Million TL) Tüpraş achieved 1,887 MTL EBITDA in Q4 2018 with high capacity utilization and inventory gain. EBITDA Net Income 10,000 5,000 8,908 1,887 4,000 3,841 3,761 7,500 501 5,882 3,778 ■4th Q 3,000 ■ 3rd Q 2,564 1,000 1,789 5,000 1,237 3,799 ■ 2nd Q 3,396 1,528 2,000 822 1,813 ■1st Q 1,470 1,208 2,351 2,500 1,505 1,199 1,464 551 217 751 809 1,542 1,066 1,144 2,210 1,000 112 379 1,035 685 867 819 361 713 586 878 340 1,080 0 283 489 367 2013 2014 2015 688 2016 1,575 1,033 138 513 278 38335 876 387 0 2017 2018 2013 2014 2015 2016 2017 2018 Current Ratio & Net Debt/ EBITDA Return of Average Equity 1.81 2015 1.31 6.0 1.4 5.4 1.15 1.08 5.63 4.8 0.99 0.94 4.2 0.82 3.6 3.0 2.4 1.8 1.2 0.6 1.22 0.0 2013 2014 1.1 Net Debt/EBITDA 0.7 Current Ratio 42% 35% 37% 0.4 24% 26% 1.79 22% 1.34 1.06 0.0 2016 2017 2018 2013 2014 2015 2016 2017 2018 *Rolling EBITDA is calculated with dollar terms. Investor Presentation www.tupras.com.tr KEY FINANCIALS 35#36-2.9 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Investor Presentation www.tupras.com.tr KEY FINANCIALS Sep-15 Dec-15 12.0 9.6 7.2 4.8 2.8 2.4 0.0 Jun-14 Sep-14 Dec-14 Mar-15 3.7 3.9 Jun-15 4.7 4.6 3.2 2.8 3.0 2.5 Balance Sheet Analysis (Billion TL) Strict financial management policies improved current ratio to 1.3x. Cash & Cash Equivalents Financial Loans 7.3 7.4 6.1 5.5 18 20.0 19.6 ST Loans LT Loans 17.9 17.1 16.1 15.1 14.8 5.4 14 4.1 14.3 11.0 11.2 11.6 12.6 12.4 13.0 12.2 11.4 3.6 11.4 9.7 9.7 9.9 5.3 6.5 6 8.6 6.8 7.3 7.7 4.0 4.6 14.2 13.8 5.7 11.2 8.1 8.3 9.3 9.8 9.7 5 2.9 6.2 6.6 8.6 7.0 8.3 9.1 8.1 10.2 10.7 7.4 7.5 2.9 3.5 3.3 0.0 90 07 10 7 1.0 1.3 1.8 1.7 2.1 2.3 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 0 Jun-14 Sep-14 Dec-14 Mar-15 10.0 10.0 8.8 7.8 8.0 6.8 5.9 6.0 6.0 4.0 3.3 3.2 2.6 2.6 1.8 2.0 2.2 2.0 1.1 1.2 0.2 0.5 0.0 7 6.9 5.7 4.5 4.6 4.8 Jun-15 Sep-15 Dec-15 Mar-16 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Payables Receivables 4.0 4.0 5.6 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 12.6 10.5 9.5 9.6 8.4 7.7 7.1 5.9 4.9 4: 3.5 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 36 Sep-18 Dec-18 7.7 16.7 Mar-18 6.9 5.7 5.1 Jun-18 Sep-18 Dec-18 5.5 9.4#37Q4 Profit Before Tax Bridge (2017-2018) Q4 PBT growth driven by strong FX gain, higher white product yield and better crack margins. Million TL 754 271 426 553 126 846 31 1,649 Q4 2017 Crack Margin Production Inventory Loss Crude Oil Differential FX Other Q4 2018 Investor Presentation KEY FINANCIALS www.tupras.com.tr 37#382018 Profit Before Tax Bridge 2018 PBT was lower mainly due to Crude Oil Differential and Crack Margin impacts. With the help of FX based pricing, FX losses incurred from payables were recovered with Inventory Gains. Million TL 4,474 2017 2,129 311 660 293 1,779 164 3,724 Inventory Gain Crack Margin Crude Oil Differential Production FX Other 2018 Investor Presentation KEY FINANCIALS www.tupras.com.tr 38#39Dividend (TL) 16 Earings per Share Gross Dividend Total Payout 4000 15.22 14 14 One of the highest dividend 13.60 12 yield in BIST 3000 10 8 CO 6 4 4.96 3.93 5.83 4.78 3.85 1.58 3.24 2.94 2.98 2 2.31 2.50 1.73 0 2008 2009 2010 2011 2012 2013 2012/2013 EPS includes the tax incentive. Investor Presentation www.tupras.com.tr KEY FINANCIALS 10.18 7.16 6.50 6.20 2000 1000 0 2014 2015 2016 2017 39#40Tüpraş Balance Sheet Million TL 31/12/2018 31/12/2017 Difference % Difference Current Assets 20,962 20,366 596 3 Cash & C. Equivalents 5,983 8,802 -2,819 -32 Receivables 5,429 5,027 402 8 Derivatives 176 347 -171 -49 Inventories 6,765 5,291 1,474 28 Pre-paid expenses 109 62 46 74 Other Current Assets 2,502 837 1,665 199 Long Term Assets 19,074 17,797 1,277 7 Financial Assets & Subsidiaries 1,271 1,148 123 11 Fixed Assets 12,397 12,369 29 0 Derivatives 168 101 68 67 Pre-paid expenses 378 99 279 281 Deferred Tax 3,566 3,068 498 16 Other Long Term Assets 1,293 1,013 280 28 Total Assets Short Term Liabilities 40,036 38,163 " 15,950 17,676 1,873 -1,726 5 -10 Financial Loans 4,113 5,274 -1,160 -22 Payables 7,663 8,370 -707 -8 Derivatives 236 177 59 33 Deferred Incomes 5 20 -16 -76 Provisions 80 90 -10 -11 Other ST Liabilities 3,852 3,745 107 3 Long Term Liabilities Financial Loans Payables & Provisions 24,086 20,487 3,599 18 13,836 9,777 4,059 42 257 224 34 15 Derivatives 42 3 39 1,156 Other LT Liabilities 5 5 -1 -13 Equity 9,825 10.373 -549 -5 Minority Interests 121 104 17 16 40,036 38,163 1,873 5 Total Liabilities Investor Presentation KEY FINANCIALS www.tupras.com.tr 40#41Creating Competitive & Sustainable Shareholder Value Tüpraş has one of the highest Corporate Governance Ratings. Board Stakeholders Transparency Shareholders Overall 0 25 50 75 Investor Presentation www.tupras.com.tr KEY FINANCIALS 92.9 Foreign Currency Long Term Fitch Ratings MOODY'S S&P Global Ratings Tüpraş BB+(Neg.) Ba2 (Negative) Türkiye BB (Neg.) Ba3 (Negative) B+ (Stable) 99.5 Koç Holding Ba2 (Negative) BB- (Stable) 94.0 95.5 94.8 100 Analyst Recommendations 29% 71% Buy Hold 41#42Financial Policy Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty risk, commodity, interest and currency exposure. Leverage & Liquidity Counterparty Risk Policy Interest Rate & Fx Proactive in liquidity risk management & targets/limits for financial ratios: Net financial debt/EBITDA Net financial debt/Equity Current ratio Share of long term debt Deposit is kept within bank-based limits. Credit rating assessment and strong capital base. Cap on the maximum deposit allocated to a single bank. Threshold for deposits subject to banks shareholders' equity. • The fixed/floating profile of financial debt. Commodity Hedging Policy Zero FX exposure target. Inventory Hedging Policy: Operational hedge: Optimum stock policy & forward pricing mechanism. Financial hedge: Expected inventory exposure for the year end is hedged by using derivatives. Hedging ratio increasing throughout the year. Crack Margin Hedging Policy: Financial hedge: Crack margin (gasoline, diesel, jet fuel, fuel oil) risk mitigation by using derivatives. Statistical mechanical approach: Historical average prices + standard deviations. Hedge ratio between %0-%50 with up to 1 year hedge tenor. Investor Presentation www.tupras.com.tr KEY FINANCIALS#43FX Exposure Management (31 December 2018) Tüpraş continues to employ strict FX policies to mitigate currency risks stemming from volatility. A significant portion of the Group's crude oil and refined product purchases are denominated in US Dollars. In addition, the Group finances its capital expenditures mostly through borrowings denominated in US Dollars. • Natural Hedge: The Group is able to mitigate some of the impact of volatility in exchange rates through natural hedges: crude oil and refined product inventories are US Dollar denominated assets. • Cash flow Hedge: RUP Facility financing loans designated as hedging instruments of highly probable export revenues. * As a general Koç Holding financial policy, Group companies are allowed to keep foreign exchange positions within certain limits.. Cash flow hedge accounting: 874 mn $ Investor Presentation www.tupras.com.tr KEY FINANCIALS Consolidated Assets Consolidated Liabilities Million $ Cash 955 Payables 1,189 Receivables & other assets 136 Stock 1,201 Forward & CFH 1,500 +11 mn $ ST Financial 598 RUP : 182 Other: 416 LT Financial 1,994 RUP : 780 Eurobond 700 Other Loans : 514 43#44Tüpraş: Growing, Resilient, Profitable Tüpraş is a compelling investment case with strong sales growth, resilient and profitable operational and financial structure. Growing • Operating in a diesel short market (supplies 45% of the market), along with strong jet growth. • Well poised to capture future opportunities including IMO 2020 with its output complexity. • Continuous investment in logistics, infrastructure and trading capabilities. Resilient Strong balance sheet with no immediate rollover requirement. • Secure receivables portfolio, tight working capital management. Pricing mechanism in place to address commodity and FX fluctuations. . Profitable Benefits from full system optimization given high complexity, procurement and logistics flexibility. • Prudent hedging practices to ensure stable earnings Outlook. High dividend pay-out ratio annually. Investor Presentation www.tupras.com.tr KEY FINANCIALS 44#45OUTLOOK#462019 Refinery Maintenance Schedule RUP Maintenance to start on February 26, 2019. Unit Plt 100 Crude Oil İzmir Plt 9200 CCR Quarter Duration (weeks) Reason Q4 2-3 Periodic Maintenance Q1 2-3 Periodic Maintenance Q1&Q2 12-13 Detailed Maintenance RUP İzmit Plt 2 Crude Oil & Vacuum Unit Q4 7-8 Periodic Maintenance Plt 7 FCC Q4 5-6 Periodic Maintenance Kırıkkale Batman Plt 1100 Crude Oil & Vacuum Unit Q1&Q2 *3-4 Periodic Maintenance * Total duration allocated among quarters Investor Presentation www.tupras.com.tr OUTLOOK RUP Maintenance Preparation and planning phase: 2018 Maintenance Start: Feb 26 Catalyst changes Checks on distillation columns, heat exchangers and furnaces Detailed planned maintenance Completion: planned as late May 2019 46#472019 Expectations Med Complex Margin Tüpraş Net Margin Med Complex margin expectation in 2019 is 3.75 -4.25 $/bbl. Net Tüpraş refinery margin expectation in 2019 is 6.0 - 7.0 $/bbl. Operations . Investment Investor Presentation www.tupras.com.tr OUTLOOK Capacity utilization target is 95-100%. Production: ~28 million tons • Total sales: ~30 million tons Refining investments expectation is 250 Million $. 47#48Competition # 1 (SOCAR-STAR Refinery) STAR Refinery (Total Cap. 10 mn ton) Production 2019 mn ton Goldman Sachs has acquired a 13% stake in SOCAR Turkey for $1.3 billion. Goldman Sachs has the right to resell 10% of its stakes to Socar, and the remaining 3% to 'Sermaye Investments Limited' owned by SOCAR within 6 years at the same price. Tüpraş Star Total Turkish Demand Balance LPG 1.1 0.3 1.4 4.1 -2.7 Credit 3.3 Billion $ Equity 2.4 Billion $ • 3.3 billion $ credit agreement. First 4 years grace period total 15-18 years term. Petchem Feeds 0.2 2.6 2.8 Gasoline 6.1 6.1 2.4 3.7 Total 5.7 Billion $ Project finance is supplied to company (1.5 Billion $). Jet Fuel 5.2 1.6 6.8 5.2 1.6 Investment It is operational as of 2019. Diesel 10.7 4.5 15.2 26.5 -11.3 Star Refinery Production Numbers (k ton) Coke 0.8 0.7 1.5 4.6 -3.1 Diesel 4,500 Jet Fuel 1,600 Fuels Sulphur 158 Petrocoke 698 Fuel Oil 1.8 1.8 1.3 0.5 Bitumen 3.1 3.1 3.1 LPG 260 Petrochemical Feedstock Naptha 1,600 Mixed xylene 460 Reformate 524 Investor Presentation www.tupras.com.tr OUTLOOK 48#49Competition # 2 (Regional Competition) ● Tüpraş is competing with 71 refineries in the Mediterranean and Black Sea markets. • Mediterranean regional product balance is also affected from Middle East, North West Europe and Asia. Mediterranean Black Sea Investor Presentation www.tupras.com.tr France Croatia Spain Portugal Italy Albani Greece Turkey Morocco Algeria OUTLOOK Tunisia Libya Egypt 54 Refineries 7.8 mn bpd Moldova Ukraine Romania Bulgaria Syria Israel Turkey 17 Refineries 1.8 mn bpd Russia Georgia 49#50Marine Bunker Specification Changes and Its Effects IMO, at the meeting held in October 2016, lowered the sulphur emission cap from marine bunkers from 3.5% to 0.5% (5000ppm): Effective from 1 January 2020. %2 Mn b/d %5 switch to LNG Other HS FO Scrubbed 2.1 1.8 LS FO LS Fuel Gap LS Fuel Gap Diesel HS Fuel Oil 2016 2020 2022 Requirements of spec change can be achieved through; • Use of lower sulphur blend stocks like ULSD (Diesel) • Low Sulfur Fuel Oil production with light crudes Sulphur Fuel Reduction Systems (Scrubber) LNG . %19 Install Scrubber 0 %74 Buy Low Sulphur Fuel Ship Owners Intention Survey 80% of global trade is done via marine transportation. • 50.000 vessels are in operation. Bunker fuels account for; • ~5% of global oil demand 40% of oil related sulphur emissions. Investor Presentation www.tupras.com.tr OUTLOOK 50 50#51Appendix#52High Complexity (Resid Upgrading Units Production-(Thousand Tons) Raw Materials Products Natural Gas 246 Diesel Vacuum Resid 1,214 2.883 522 Gasoline LPG 69 Total Production 4,250 Atm. Resid 3,036 Total Feed 4,496 Investor Presentation www.tupras.com.tr APPENDIX PetroCoke Sulphur 690 86 52#53Flexibility & Reliability; Multiple routes to maksimum capacity Number Capacity Key units of units (m3/d) Flow Diagram LPG MEROX conversion capacity • Increased Strong integration among refineries Investor Presentation APPENDIX www.tupras.com.tr Yields (%) LPG 3.5% HYDROCRACKER 4 18200 ISOMERISATION 3 6400 CRUDE OIL CRUDE OIL 8 97000 ISOMER. VACUUM 8 42320 NAFTA SPLITTER GASOLINE NAPHTHA 22.0% UNIFINER REFORMER Benzen Saturation JET FUELOİL } 16.5% KERO/ DIESEL HDS UNIFINER REFORMER 7 16900 FCC 52 FCC Benzin HDS KERO/DIES EL (HDS) 10 37300 FCC ب کا کرد VACUMM DİST. DIESEL 33.9% HYDROC. 2 4700 Lube Oil COKER 1 8200 More than one distillation and production units LUBE OIL 0.5% COKER Bitumen NAPHTHA BITUMEN & FUEL OİL 19.9% 8 SPLITTER OTHER 3.8% LPG MEROX 6 53#54Competition (European Pump Price Comparison) Gasoline (Krş / Lt) 1000 Diesel 10 (Krş / Lt) Pump No Tax Distr. Marg. Tax 889 898 1000 854 809 820 791 900 733 865 878 847 801 800 782 739 750 604 709 700 601 600 554 595 596 406 504 524 540 434 409 516 529 528 349 398 500 500 272 330 400 300 78 69 55 63 63 64 61 250 62 65 47 200 395 360 347 324 292 294 266 263 273 286 275 211 210 233 236 242 100 0 0 TR TR Spa. Ger UK Eu19 Fra. Gre. Ita. Spa. Ger. EU19 Gre. Fra. Ita. UK Not: Prices valid on 11 February 2019. Investor Presentation www.tupras.com.tr APPENDIX 54#55Tüpraş HSE KPI: Loss Time Incident Frequency and Severity Frequency Ratios 8 Incident Frequency 7,1 7,1 6,9 6 6,1 5,0 4,8 Including contractors Tüpraş Contractor Total 4 3,6 3,4 3,5 3,6 2,5 3,2 2 1,7 2,2 2,6 2,8 3,4 2,5 3,1 1,5 2,4 1,9 1,6 1,9 1,7 1,8 1,9 1,1 1,7 2,0 1,4 1,3 0 0,8 0,9 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Loss Time Severity Frequency Rate Tüpraş Contractor Total loss time incident freaquency rate =number of incident *1000000/man hours loss severity frequency rate = loss time*1000000/man hours Investor Presentation www.tupras.com.tr APPENDIX 2008 2009 2010 2011 2012 2013 2014 2015 2016 92 44 40 53 65 61 59 719 101 116 101 81 118 424 17 378 51 551 105 73 57 83 290 26 308 315 354 55#56Koç Holding Turkey's Leading Investment Holding Company Turkey's largest industrial and services group in terms of revenues, exports, employees, taxes paid and market capitalization. . Turkey's Leading Investment Holding Company • The only Turkish company in Fortuna 5001. • 20% CAGR in consolidated profit2 the last five years. Pioneer in its Sectors Leading positions with clear competitive advantages in sectors with long-term growth potential such as energy, automotive, consumer durables and finance. Notes Data as of YE18, 2018 GDP reflects the projection of Turkish government's New Economic Program. (1) 2018 Report (2) In TL terms between 2014-18 Investor Presentation www.tupras.com.tr APPENDIX Combined Revenues/ GDP 8% Total Exports / Turkey's Exports 10% Total MCap on Borsa Istanbul 16% 56#57Tüpras Koc