#1TK-1010 ❤Koc Tüpras EVE TK-401 Investor Presentation March 2018#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#3OC 128D-013 OT ATM.RESIP SURGEDRUM REFINING MARKET ha#425 4.01.2016 26,0 13.01.2016 22.01.2016 2.02.2016 11.02.2016 22.02.2016 2.03.2016 11.03.2016 22.03.2016 22.03.2016 4.04.2016 4.04.2016 13.04.2016 22.04.2016 35 4.05.2016 13.05.2016 24.05.2016 3.06.2016 14.06.2016 Source:Platts As of March 27th www.tupras.com.tr Investor Presentation REFINING INDUSTRY 23.06.2016 4.07.2016 4.07.2016 13.07.2016 22.07.2016 2.08.2016 11.08.2016 22.08.2016 1.09.2016 12.09.2016 21.09.2016 30.09.2016 11. 10. 2016 11.10.2016 20.10.2016 20.10.2016 45 31.10.2016 31.10.2016 9.11.2016 18.11.2016 18. 11. 2016 29.11.2016 8.12.2016 8.12.2016 18.12.2016 19.12.2016 30.12.2016 11.01.2017 20.01.2017 31.01.2017 9.02.2017 20.02.2017 1.03.2017 10.03.2017 21.03.2017 30.03.2017 10.04.2017 19.04.2017 27.04.2017 9.05.2017 9.05.2017 18.05.2017 55 29.05.2017 7.06.2017 16.06.2017 27.06.2017 6.07.2017 17.07.2017 6.07.2017 65 26.07.2017 26.07.2017 4.08.2017 15.08.2017 24.08.2017 5.09.2017 14.09.2017 25.09.2017 4.10.2017 13.10.2017 24.10.2017 2.11.2017 13.11.2017 22.11.2017 1.12.2017 1.12.2017 12.12.2017 21.12.2017 21.12.2017 4.01.2018 4.01.2018 15.01.2018 24.01.2018 24.01.2018 2.02.2018 2.02.2018 13.02.2018 22.02.2018 05.03.2018 14.03.2018 23.03.2018 75 Brent Crude Oil Prices ($/bbl) 64,1 70,7 PROS • OPEC & Non OPEC Supply Cut . . Political Instabilities in Middle East • Expectation of high global GDP Healthy PMI data in Developing Countries CONS • Inventory Levels OPEC production cuts Concerns about the impact of OPEC & Non • Increase in number of rigs & production in US High crude exports of OPEC 4#5Refinery Capacity Change Thousand Barrels/Day 4000 460 2009 2010 2011 2012 2013 2014 2015 2016 2017 3000 70 244 270 520 156 2000 120 417 530 300 526 510 160 340 46 198 1000 334 250 400 150 810 181 198 390 105 364 640 302 340 135 160 195 1980 305 0 -220 -255 -543 -486 Capacity Additions -145 -240 1.685 1.041 -1000 1800 1.678 1.790 1350 1.022 1.017 1.082 1.080 900 -2000 450 337 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 -3000 140 -198 -266 -443 -421 -546 143 -232 -352 -189 -268 China Source:, Reuters, UEA, Tüpraş, sector reports and news Investor Presentation www.tupras.com.tr REFINING INDUSTRY India Middle East Other Asia Other Japan North America Europe LO 5#6Middle Distillate Cracks ($/bbl) 20 1614,8 12,1 12,2 12,4 120 O 8 4 10,4 7,2 Diesel 2015 2016 2017 ► 2018 Jet Fuel 20 15,1 14,4 15 11,9 11,5 10,0 10 9,5 7,6 6,6 5 13.6 11,4 9,1 8,0 0 0 Jan Feb *Mar Apr May Jun Jul Agu Sep Oct Nov Dec Jan Feb *Mar Apr May Jun Jul Agu Sep Oct Nov Dec *As of March 27th Source: Platts Investor Presentation www.tupras.com.tr REFINING INDUSTRY 6#7Light Distillate Cracks ($/bbl) 24 18 18,6 13,5 12 9,8 10,2 10,6 6 11.8 2015 2016 2017 ► 2018 Gasoline Naphta 2,7 4 2,4 2 0 -0,5 -1,5 -2 -4 -3,6 -4,0 15,7 -64,9 -4,8 <7,3 -8 Jan Feb *Mar Apr May Jun Jul Agu Sep Oct Nov Dec 11,9 0 -2,2 9,7 -10 -172 -20 -21,5 -22,3 -30 -26,8 LPG -4,7 -16,2 -20,6 -40 Feb *Mar Apr May Jun Jul Agu Sep Oct Nov Dec Jan Feb *Mar Apr May Jun Jul Agu Sep Oct Nov Dec 0 Jan *As of March 27th Source: Platts Investor Presentation www.tupras.com.tr REFINING INDUSTRY 7#8Quarterly Product Crack Margins in 2015 - 2017 ($/bbl) 2015 2016 - 2017 Jet Fuel Diesel 16 1615,7 15,2 14,4 14,6 14 14 13, T 12,4 12,4 12,0 12 10,5 12 11,2 10,7 10,8 10,5 11,2 9,9 10 109,5 40,2 9,2 8 8,9 8 8 7,9 7,7 7,3 6 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gasoline Fuel Oil (0.01) -2 20 19,4 18,9 -3,9 -4-5,3 -5,8 -5,7 18 -6 -7,8 -7,8 16 15,0 -8-9,1 14.3 -10,2 141,532 13,5 14,5 -1011,5 -12 -12.6 -12,5 12 12,0,9 -12 -14 10,9 10 -16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: Platts Investor Presentation REFINING INDUSTRY www.tupras.com.tr 8#9-0,58 0 Crude Price Differentials ($/bbl) 1 Brent -2 -2,06 -2,41 -3 Ural Differentials 0 -0,35 -3 -1,30 -6 -4 +12 Jan Feb *Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012-2017 Differential Range - 2016 - 2017 ► 2018 *As of March 26th Investor Presentation www.tupras.com.tr REFINING INDUSTRY -9 11Q1 11Q2 11Q3 11Q4 Brent 12Q4 12Q2 12Q3 12Q4 13Q1 - Iran Heavy — Price Differentials 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 Kirkuk - Kuwait - Basra Heavy - Arab Heavy Ural 9#10Turkish Economy Strengths Population (mn) 82 1.4% growth in last 5 yrs 81 0-40 yrs >65% 12 9 9,2 8,8 GDP (%) 2002-2014 4.9% 2010-2014 5.4% 11,1 6 80 82 81 81 3 79 80 79 5,0 5,1 4,2 4,0 3,0 2,9 2,1 78 0 2010 2011 2012 2013 2014 2015 2016 2017Q1 2017Q2 2017Q3 2016 2017 2018 2019 2020 Diesel Consumption (mn tons) Car ownership per thousand people 27 26 8.8% average 4% annual growth 220 67% 213 176 growth in last 5 yrs 165 25 134 127 24 27,7 110 26,1 23 25,1 24,2 55 22 22,3 21 2016 2017 Source: EMRA, TSI 0 2018 2019 2020 2014 2015 2016 2017 Investor Presentation www.tupras.com.tr REFINING INDUSTRY 10#11Turkish Consumption (Million tons) 2015-2017 Diesel 2015 20,56 +8.3% 2016 22,31 2017 24,17 Jet Fuel 2015 4,58 +2.7% 2016 4,40 +8.5% -4% 2017 4,52 Gasoline Fuel Oil* 2015 2015 2,10 0,60 +3.1% -15.7% 2016 2,23 2016 0,58 +6.5% -3.5% 2017 2,30 2017 0.49 Source: EMRA *Bunker excluded. Investor Presentation REFINING INDUSTRY www.tupras.com.tr 11#12Turkish Petroleum Market - 12 Months 2017, (Million tons) Diesel consumption in Turkey in 2017 grew significantly driven by infrastructure projects and demand from heavy duty vehicles. 2017 Diesel 24,17 2016 22,32 2017 2016 Source: EMRA *Bunker excluded. Investor Presentation www.tupras.com.tr Gasoline REFINING INDUSTRY +8.3% 2017 Jet Fuel 4,52 2016 4,40 Fuel Oil* 2,30 +3.1% 2017 0,49 2,23 2016 0,58 +2.7% -15.7% 12#13Turkey's Import / Export Balance (Net) (Million tons) 4 Export 3,2 2,8 2,4 0 -4 -3,1 -3,4 -3,1 Import -8 -12 -16 Source: EMRA Investor Presentation www.tupras.com.tr -12,0 -12,3 -13,2 2013 2014 2015 2016 2017 LPG REFINING INDUSTRY Gasoline Diesel 1,0 0,7 0,3 0,0 0,1 0,3 Fuel Jet 13#14Tiras LO-600 ProHan Tupras COMPANY OVERVIEW ras 17#15Tüpraş Shareholder Structure Koç Holding %77 DİTAŞ %79,98 Opet %40 Körfez Ulaştırma A.Ş. %100 *As of December 31th, 2017 Investor Presentation www.tupras.com.tr COMPANY OVERVIEW Aygaz %20 Energy Investments Inc. (SPV) %51 Opet %3 Publicly Traded *Distribution of Domestic/ Foreign Ownership of Tüpraş Shares Tüpras Free Float %49 %82,5 %17,5 Foreign Ownership Domestic Ownership 15#16Tüpraş 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 OPET Giresun Terminal 43,130 m3 Baku Turkey Storage Capacity Tüpraş : 58% : 9% Opet Batman Total Capacity Nelson Complexity : 9.5 Tüpraş Storage Cap. : 7.2 mn m³ 3 OPET Storage Cap. : 1.1 mn m3 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 Crude Pipeline Storage Capacity: 1.41 mn m³ Batman Kirkuk Terminal Refinery 1.1 MT Capacity • NC: 1.83 • Storage Capacity:0.25 mn m³ Investor Presentation www.tupras.com.tr COMPANY OVERVIEW Other Companies : 33% 16#170 İzmit Ref. Valero Investor Presentation www.tupras.com.tr COMPANY OVERVIEW Reliance Essar Marathon Oil 5 Holly-Frontier Neste BP 10 Tesoro Thai Oil IOCL Tüpraş-2015 Hellenic PKN 13,0 12,6 11,8 11,6 11,5 11,0 10,4 9,9 9,8 9,6 MOL SHELL High Complexity (Nelson Complexity of Refinining Companies) İzmit After Rup 15 14,5 Petrom Galp Saras Tüpraş After Rup 9,5 9,4 9,2 9,2 9,0 8,8 8,7 8,4 8,0 7,3 7,1 7,1 7,1 7,1 Petrobras Tüpraş Lukoil HPCL CPCL BCP Esso(Thai) S-Oil MRPL SK Energy BPCL 17 Tüpraş Before Rup 6,8 6,5 5,9 5,8 5,8#18Crude Suppliers of TÜPRAŞ (Million Tons) In 2017, Tüpraş purchased 25 different types of crude oil from 14 countries, with gravities ranging between 18-47 API. כככי A 90 80 Africa America Europe CIS Middle East 79 76 70 71 67 65 60 63 50 A Crude Type 2017 40 %5,3 30 %36 Investor Presentation www.tupras.com.tr COMPANY OVERVIEW 20 %58 17 10 12 6 CO 6 >34 30> 30-40 0 2012 1315 2013 10 1311 14 10 14 10 10 7 2014 2015 2016 2017 18#19Sales By Customer (2017) Customer Groups Export %18 Other %6 Petkim LPG Bitumen %11 Military %1 %1 %4 Jet %5 THY Opet %9 Total: 31.5 mn tons Investor Presentation COMPANY OVERVIEW www.tupras.com.tr LUKOIL %4 TP %3 Distributors %45 BP %15 Sales to Distributors Other %13 Shell %15 POAŞ %26 OPET %25 Distributors: 14.3 mn tons 19#20Competitive Advantages of Tüpraş Investor Presentation www.tupras.com.tr Added Value Created by Tüpraş Local Market Dynamics Cost Base of Tüpraş Best Fit for the Market with high diesel yield High Economic Growth Energy Efficient High Complexity of Tüpraş Short on Diesel Presence in all over Turkey through refineries and terminals Import Parity Pricing (Freight advantage of Tüpraş) COMPANY OVERVIEW Crude Oil & Feedstock Cost Advantage Economies of Scale 20#21OPET- Tüpraş Share 40.0% 1.560 1600 1.504 1.444 434 1.39 431 1.35 435 1.32 427 1.27 418 1.22 410 394 1200 394 1.560 Stations 1.1 Million M3 Storage 1.126 1.073 1.009 966 938 915 885 800 830 400 Market positions: 17.8% in White product; 23% Marmara, Aegean, Black Sea & Mediterranean # 1 Brand Royalty Award 2nd Biggest Distribution Company by Volume Jet Fuel Sales THY Opet- 50/50 joint venture with Turkish Airlines for air transport fuel sales in Turkey OInternational Trading London OLubricants Opet Fuchs- 50/50 lubricant joint venture with Fuchs 0 2010 2011 2012 2013 2014 2015 2016 2017 Investor Presentation www.tupras.com.tr Opet Sunpet 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 13 tugboats 10 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 30 30 Crude Oil Product 25 10 5 6 0 18 15 21,9 20 19 15 استا 23,3 6 253,7 mn $ 15,2 17 Net Sales NO SMOKING SAFETY THAT 11,8 6 5 4 7 5 49,6 mn $ Op. Profit 2011 2012 2013 2014 2015 2016 2017 Investor Presentation www.tupras.com.tr COMPANY OVERVIEW T.SUNA T.GONUL NO SHOKING BAFETY FIRST 22#23Körfez Ulaştırma A.Ş.- Tüpraş Share 100% Körfez Ulaştırma A.Ş. Turkey's First Private Railway Operator On June 16th, Freight Train Operator Certificate, On September 20th, Safety Management Certificate received Operates with 491 cistern wagons and 5 diesel locomotives 2018 Target 2,5 mn tons/year transport % 10 Market share Investor Presentation www.tupras.com.tr COMPANY OVERVIEW C CC. 36 006 e www 3000 600 00 23#24H EVIDE OPERATIONS#25Margin Environment ($/bbl) Med Complex Margin 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 Ability to use heavier and sour crudes Proximity to major suppliers • Reduces transport costs. Implemented cost reduction measures 10 7,5 5 2,5 0 -2,5 Month - Annual J-08 J-08 J-09 J-09 J-10 J-10 J-11 J-11 J-12 J-12 J-13 J-13 J-14 J-14 J-15 J-15 J-16 J-16 J-17 J-17 O 18 Tüpraş Brüt Marj 16 Tüpraş Net Marj Akdeniz Marj 12,9 12,8 11,9 11,2 • Capacity to produce higher value added range of 10,6 9,6 9,6 Energy efficiency programs. refined products • Direct pipeline connections with domestic clients • High export capability Investor Presentation OPERATIONS www.tupras.com.tr 8,1 6,5 6,4 6,0 3,2 4,8 3,2 2,5 5,3 " 4,0 1,7 2,0 0 2013 2014 2015 2016 2017 25#26Capacity Utilization and Quarterly Production Volume Capacity Utilization* (%) Quarterly Production (Mil. Tons) Full Year 120 Crude Oil Other Q4 111,6 110.6 9 2014 2015 2016 2017 108,1 105,3 102,5 100,9 101,4 98,1 90 81,9 74,9 78,9 71,3 60 106,3 107,5 94,6 8 78 7,7 89,7 7,4 7,3 7,1 6,9 7,4 7 7,2 6,7 6,3 6,6 6 5,6 30 0 2014 2015 2016 2017 *Nameplate capacity calculated by standard 330 days of operations. Investor Presentation www.tupras.com.tr OPERATIONS 5 5,5 5,4 4,6 4,5 4 2014 2015 2016 2017 Q1 Q2 Q3 Q4 26#2712M Product Yields 2016 Bitumen %12 LPG %4 Gasoline %20 2017 Bitumen %12 LPG %4 Gasoline %20 Fuel Oil %7 Fuel Oil %7 Coke Other %1,7 Coke Other %2,1 %3 Black Prod. Light Distil. %25,5 %3 Other %2 %22,3 Naphtha %1 Other %2 Black Prod. %22,6 Light Distil. %25,0 Naphtha %1 Investor Presentation www.tupras.com.tr Mid. Distil. %50,4 ULSD %33 White Product Production API %76.56 27,93 mn tons 30,62 OPERATIONS Jet %17 ULSD %33 White Product Production ΑΡΙ Mid. Distil. %50,3 %76.27 28,88 mn tons 30,26 Jet %17 27#28Tüpraş Sales (Million Tons) Tüpraş achieved highest total sales of 31.5mt in 2017. Full Year Total Sales (mt) 30 30 40 Total Sales in Q4 (mt) 31.5 7,9 7,7 8 00 28,7 30,3 7,3 30 6,1 22,2 6 6,2 6.4 6,4 24,8 25,7 20 22,2 4 4.3 16,9 10 2 0 2014 2015 2016 2017 Full Year Domestic Sales of Key Products (mt) 6 0 2014 Q4 2015 Q4 2016 Q4 2017 Q4 Domestic Sales of Key Products in Q4 (mt) Export Domestic Sales 0,9 0.9 1.0 20 3,4 3.5 4 0,5 0,5 0.5 2,8 2,2 2,2 0.5 1,1 1,0 1,0 1,8 000 4,3 4,4 4,5 10 2 0,9 2,9 2,6 2,9 3,6 10,6 11,1 9,0 1,7 6,5 0 0 2014 2015 2016 2017 2014 Q4 2015 Q4 2016 Q4 2017 Q4 Investor Presentation OPERATIONS Diesel Jet Fuel Gasoline Bitumen www.tupras.com.tr 28#29Investments (mn $) • 9.5 Nelson complexity Avg. 278 mn$ . High white product yield • Process more heavier and sour crudes • Run all refineries with 100% capacity utilization Avg. 943 mn$ 1.213 Ongoing Projects 628 974 959 Avg. 247 mn$ 400 355 274 344 250 C 213 186 177 185 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 E Investor Presentation OPERATIONS www.tupras.com.tr 171 • New Power Plant . Revamp of Crude Unit • FCC Modernization • New Sulphur Units . Energy Saving Projects Optimization of conversion units 29 29#302017 Expectations vs 12 Months Results Brent Price ($/bbl) Capacity Utiliation (%) 70 140 CPU - 65 120 Average 102,5 105,3 108,1 100 60 74,9 80 55 60 50 62,6 64,2 104 110,3 111.6 99,7 102 109 110,5 106,4 116,5 114,8 54,7 55,1 56 57,4 40 80,7 81,9 84,1 94,6 68 69 45 51,6 52,5 50,4 51,6 48,6 46,5 20 40 0 117 M-17 J-17 N-17 D-17 Our expectation was 50-55 $/bbl; 2017 average was 54.3 $/bbl. Margins ($/bbl) Expected Full Capacity Utilization in 2017; achieved 108.1% capacity utilization. Capex (mn $) 10 8 8,7 6 4 8,2 5,4 8,9 6,5 hhbi 2 0 17 Q1 5,0 17 Q2 17 Q3 400 Tüpraş Net Margin Med Margin Tüpraş Ditaş 320 344,0 117,6 240 6,7 160 4,1 80 17 Q4 Net Tüpraş refinery margin for 12M was 8,1 $/bbl above target of 7,50 - 8,00 $/bbl. Investor Presentation 0 2015 213,0 2016 185,4 2017 Tüpraş core refining business capex guidance for 2017 was 200 Million dollars. www.tupras.com.tr OPERATIONS 30#31KEY FINANCIALS#322017 Key Highlights In Full Year 2017, Tüpraş generated record sales of 31.5 mt and EBITDA of 5.9b TL. 31.5 101.4 % 30.4 Million tons of Sales Crude Capacity Utilization Million tons Processed (Total) 8.1 $/bbl Net Refining Margin 5.9 Billion TL EBITDA 4.5 Billion TL Profit Before Tax Investor Presentation KEY FINANCIALS www.tupras.com.tr 32#33Investor Presentation Financial Highlights (mn $) EBITDA Net Debt- *Debt/Rolling EBITDA 1750 USD 1.614 USD 1750 1450 1.397 321 1.046 1450 422 1150 1.125 938 435 1150 817 123 480 629 850 667 285 283 715 850 410 560 431 4th Q 271 594 47 91 106 3rd Q 550 268 550 89 294 361 309 435 175 256 338 405 415 2nd Q 315 427 171 250 226 237 1st Q 250 75 273 197 153 95 78 150 150 114 161 75 посл 231 112 121-3 235 -50 -50 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Net Debt/Rolling EBITDA was calculated with USD figures www.tupras.com.tr 2014 9M KEY FINANCIALS 2015 H1 3.000 4,9 Net Debt 2.500 3,5 3,6 Net Debt/*R. EBITDA 3,3 2.000 2,8 0,35 2,4 0,32 0,3 1.500 2,0 1,7 0,26 1,6 1,5 0,24 1.000 0,8 1,1 1,0 1,1 0,7 500 551 1.340 1.869 1.598 1.663 2.577 2.748 2.370 2.391 1.751 1.729 1.555 1.680 1.240 1.729 0 2015 9M 2016 H1 2019 9M 2017 Q1 2017 H1 2017 9M Net Income Return of Average Equity 0,22 0,16 0,11 0,04 0,55 0,49 0,45 0,41 33#34Investor Presentation www.tupras.com.tr KEY FINANCIALS 9'0 응. 0,0 Mar. 14 Jun. 14 Sep.14 3,0 2,4 1,8 1.7 1,6 1,7 1,3 1,2 1,2 1,0 0,8 Dec. 14 Mar. 15 Jun. 15 Sep.15 Dec. 15 Mar. 16 Financial Loans (Billion $) Jun. 16 Sep.16 Dec. 16 Balance Sheet Analysis Cash & Cash Equivalents (Billion $) 1,0 Mar. 17 Jun. 17 Sep.17 2,5 2,0 1,7 1,6 1,6 1,6 5,0 LT Loans ST Loans 4 4,2 4,3 3,9 4,0 4,0 3,28 3,7 3,7 3,6 3,6 3,1 3,6 3,04 3,6 3,2 3,3 3,2 3,4 3,4 3,4 3 0,4 3,2 0.5 0,9 0,3 0,3 0,3 0,6 1.1 2.46 0,6 1,0 1,2 0,6 0.6 2,9 1.4 2 1,74 1,1 1,3 1,7 1,59 2,1 3,3 1,4 2,8 2,9 2,9 3.0 3.1 , 3,0 2,8 2,9 3,1 2,8 2,9 3,0 2,6 1 2,1 2,1 0,7 0 0,0 Mar. 14 2014 1h 2014 9M Dec 14 Mar. 15 Jun. 15 Sep.15 Dec. 15 Mar-16 Jun-16 Sep-16 Dec. 16 Mar. 17 Jun. 17 Sep.17 Dec. 17 Mar. 14 Jun. 14 Sep.14 Dec. 14 Mar. 15 Jun. 15 Jun-16 Sep-16 Dec. 17 2,0 2,3 2,2 1,6 1,2 0,8 0,71 0,52 0,51 0,4 0,20 0,09 Mar. 14 Jun. 14 Sep.14 Dec. 14 Mar. 15 Jun. 15 Sep.15 Dec. 15 Payables (Billion $) 1,36 1,23 1.69 1,98 2,02 2,62 Dec. 16 34 Mar. 17 Jun. 17 Sep.17 Dec. 17 2,19 2,71 2,22 Mar. 16 1,07 0,88 0,91 0,66 0,70 0,75 Jun. 16 Sep.16 Dec. 16 Mar. 17 Jun. 17 Sep.17 Dec. 17 Receivables (Billion $) 0,91 1,09 1,15 1,57 1,36#35Tüpraş Balance Sheet Million USD Current Assets 31.12.2017 31.12.2016 Difference % Difference 5.399 3.884 1.516 Cash&C. Equivalents 2.334 1.719 614 Receivables 1.355 911 444 Derivatives 92 10 82 Inventories 1.403 1.025 377 39 36 49 832 37 Pre-paid expenses 17 28 -11 -41 Other Current Assets 199 190 9 Long Term Assets 4.718 4.987 -269 55 Financial Assets & Subsidiaries 303 264 39 15 Fixed Assets 3.263 3.338 -75 -2 Derivatives 27 105 -78 -75 Pre-paid expenses 26 68 -41 -61 Deferred Tax 813 917 -104 -11 Other Long Term Assets 286 296 -11 -4 Total Assets Short Term Liabilities 10.118 8.871 1.247 14 4.686 3.597 1.089 30 Financial Loans 1.398 556 842 151 Payables 2.219 2.020 199 10 Derivatives 47 8 39 461 Deferred Incomes Provisions Other ST Liabilities 5 4 1 24 24 18 5 29 993 990 3 0 Long Term Liabilities 2.654 Financial Loans 2.592 2.953 2.892 -299 -10 -300 -10 Payables & Provisions 59 59 0 1 Derivatives Other LT Liabilities 1 1 0 76 1 2 0 -8 Equity 2.750 2.298 452 20 Minority Interests 28 22 5 24 Total Liabilities 10.118 8.871 1.247 14 Investor Presentation www.tupras.com.tr KEY FINANCIALS 35#36Dividend In principle; as far as the related regulations, investment needs and financial situation allow, the entire amount of the "net distributable profit for the period", calculated within the frame of the Capital Markets Regulations, is distributed in cash - taking into consideration the market expectations, long term company strategies, investment and financing policies, profitability and cash position - as long as it is covered from the existing resources in our legal records. 16 One of the highest dividend yield in BIST. 14 Earnings Per Share Gross Dividend Total Payout (TL) 12 10 8 CO 6 10,18 4000 15,22 3.406 13,6 3000 2000 1.628 1.557 7,16 6,5 6,2 5,83 985 964 4,96 4 746 4,78 1000 579 626 3,933 3,85 3,24 2,94 2,98 396 2 2,31 2,5 1,73 1,58 0 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2012/2013 EPS includes the tax incentive Investor Presentation www.tupras.com.tr KEY FINANCIALS 36#37Creating Competitive & Sustainable Shareholder Value Tüpraş has one of the highest Corporate Governance Ratings Foreign Currency Long Term Fitch Ratings MoODY'S S&P Global Ratings Tüpraş BBB-(IG) Ba1 (Sta.) Turkey BB+ (stable) Ba2 (Sta.) BB 92,9 Koç Holding Ba1 (Sta.) BBB- 98,6 Board Stakeholders Transparency Shareholders Overall 0 25 50 75 Investor Presentation www.tupras.com.tr KEY FINANCIALS 94,0 Analyst Recommendations %38 95,5 94,7 100 Buy Hold %62 37#38Financial Policy Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty risk, interest rate, commodity and currency exposure Threshold and limits Net financial debt/EBITDA • Net foreign currency position/shareholders' equity • Inventory and crack margin exposure • Current ratio • The fixed/floating profile of financial debt Liquidity: share of long term debt • Counterparty risk limits Counterparty Risk Policy Deposit is kept, within certain limits, by banks that comply with the criteria determined in our policy • Credit rating and strong capital base • Cap on the maximum deposit allocated to a single bank Threshold for deposits subject to banks shareholders' equity Investor Presentation www.tupras.com.tr KEY FINANCIALS 38#39Inventory & Crack Margin Hedge Maintaining minimum amount of stock required for the refining activities Operational Hedge: Inventory Hedging Policy Forward Pricing: Purchasing crude oil through forward-priced contracts Financial Hedge: Proxy Hedging (both crude oil and refined product inventories) • Expected inventory exposure for the year end is hedged • Derivative transactions: Asian swap, Zero Cost Collar Hedging ratio increasing throughout the year Margin Hedging Policy Investor Presentation www.tupras.com.tr KEY FINANCIALS • Crack margins: Gasoline, Diesel and Jet Fuel Cracks. • Derivative transactions: Asian Swaps • Hedging Parameters: Budget figures, historical average prices of the cracks + standard deviations, market expectations • Maximum hedge ratio: 50%, • Tenor: up to next 4 quarters 39#40FX Risk Exposure (31 December 2017) • 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: 1,254 mn $ Investor Presentation www.tupras.com.tr KEY FINANCIALS Consolidated Assets Cash 1.996 Receivables & other assets 35 Stock 1,341 Forward & CFH 2,410 Million $ Consolidated 139 mn $ Liabilities Payables 1,935 ST Financial 1.199 RUP : 304 Eurobond: 700 Other : 195 LT Financial 2,510 RUP Loans : 964 Eurobond 700 Other Credits: 846 40#41OUTLOOK#422018 Refinery Maintenance Schedule & Capacity Utilization Even after the 2018 maintenance schedule, we aim to exceed our full total capacity utilization target and reach 104.6%. Unit Plt 7000 Crude Oil Unit Quarter Q4'17-Q1' 18 Duration (weeks) Reason 11-13 in 2018 Revamp İzmir Hydrocracker, DHP & Platformer Q1 5-6 Periodic Maintenance Plt 4000 FCC Q2 5-6 Plt 2 Crude Oil & Vacuum Unit Q4 5-6 Plt 5 Crude Oil & Vacuum Unit Q2 5-6 İzmit Plt 25 Crude Oil & Vacuum Unit Q4 5-6 Periodic Maintenance Plt 47 Hydrocracker Complex Plt 63 CCR & DHP Q2 4-5 Q4 5-6 Kırıkkale All Units Q1 6-7 Battery Shutdown Batman Plt. 100/Crude Oil & Vacuum Q1 4-5 Periodic Maintenance 2018 Crude Capacity Utilization 26.8 mn tons (95.4%) 2018 Total Capacity Utilization 29.4 mn tons (104.6%) Investor Presentation www.tupras.com.tr OUTLOOK FOR 2018 42#432018 Expectations Brent Price Estimation The average Brent crude oil price in 2018 is expected to be 55-60 dollars per barrel. Med Complex Margin We expect Med Complex margins to be between 4.75 - 5.00 dollars per barrel band in 2018. Tüpraş Net Margin Operations Net Tüpraş refinery margin is expected to be in the region of 7,50 - 8,00 dollars per barrel • Full Total Capacity Utilization using imported semi-products such as ASRFO and HVGO • Production: approximately 28.3 million tons • Total sales: 31.0 million tons Investment Investor Presentation www.tupras.com.tr OUTLOOK FOR 2018 Refining investments is expected to be around 250 Million dollars. 43#44Competition # 1 (SOCAR-STAR Refinery) STAR Refinery (Total Cap. 10 mn ton) Production 2019 mn ton Turkish Demand Balance Tüpraş Star Total Goldman Sachs has acquired a 13 percent stake in SOCAR Turkey for $1.3 billion. Goldman Sachs has the right to resell 10 percent of its stakes to Socar, and the remaining 3 percent to 'Sermaye Investments Limited' owned by SOCAR within 6 year at the same price. LPG 1,2 0.3 1,5 4.2 -2.8 Petchem Feeds 0,3 2.6 2,9 Credit : 3.3 Billion $ 3,3 billion dollar credit agreement. First 4 year grace period total 15-18 year term. Gasoline 5,8 5,8 2,4 3,4 Equity : 2.4 Billion $ Total Investment : 5.7 Billion $ • Project finance is supplied to company (US$ 1.5 billion) Jet Fuel 5,4 1,6 7,0 5,0 2,0 It is planned to be commissioned in 2018. Star Refinery Production Numbers (K Ton) Diesel 10,2 4,8 15 26,1 -11,1 Coke 0,8 0.7 1,5 4,6 -3,1 Diesel 4.800 Jet Fuel 1.600 Fuels Sulphur 158 Petrocoke 698 LPG 260 Petrochemical Naptha 1.600 Feedstock Mixed xylene 460 Reformate 524 Investor Presentation OUTLOOK FOR 2018 www.tupras.com.tr Fuel Oil 1,5 1,5 1,3 0,2 Bitumen 3,1 3,1 3,3 -0,2 44#45Competition # 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 Portugal France Croatia Spain Italy Albani Greece Turkey Morocco Algeria Investor Presentation OUTLOOK FOR 2018 www.tupras.com.tr Tunisia Libya Egypt 54 Refineries 7.8mn bpd Moldova Ukraine Romania Bulgaria Syria Israel Turkey 17 Refineries 1.8mn bpd Russia Georgia 45#46Marine 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. Mn b/d HS FO Scrubbed LS FO Diesel HS Fuel Oil 2,1 1,8 LS Fuel Gap %19 LS Fuel Gap Install Scrubber switch to LNG %5 %2 Other 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 %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. Source: UBS, 2017 Source: IEA, Oil Sector Report, 2017 Investor Presentation www.tupras.com.tr OUTLOOK FOR 2018 46#47Appendix#48Q4 Product Yields Fuel Oil %5 Coke %3 Other %1 2016 LPG Bitumen %13 %3 ULSD %39 Gasoline %20 2017 LPG %3 Bitumen %16 Gasoline %21 Other %1,2 Black Prod. Light Distil. %24,8 Fuel Oil %6 %21,2 Naphtha Coke %1 %3 Other %$2,9 Black Prod. %25,2 Light Distil. %24,9 Naphtha %1 Other %3 Mid. Distil. %52,8 Jet %14 Mid. Distil. %47,0 Jet %16 White Products Production %77.57 7,3 mn tons API Investor Presentation APPENDIX www.tupras.com.tr 30,1 ULSD %31 White Products Production API %73.74 6,3 mn tons 30,0 48#4912M Product Yields 2016 Bitumen %12 LPG %4 Gasoline %20 2017 Bitumen %12 LPG %4 Gasoline %20 Fuel Oil %7 Fuel Oil %7 Coke Other %1,7 Coke Other %2,1 %3 Black Prod. Light Distil. %25,5 %3 Other %2 %22,3 Naphtha %1 Other %2 Black Prod. %22,6 Light Distil. %25,0 Naphtha %1 Investor Presentation www.tupras.com.tr Mid. Distil. %50,4 ULSD %33 White Product Production API %76.56 27,93 mn tons 30,62 COMPANY OVERVIEW Jet %17 ULSD %33 White Product Production ΑΡΙ Mid. Distil. %50,3 %76.27 28,88 mn tons 30,26 Jet %17 49#50Income Statement (In USD) Million USD FY 2016 FY 2017 % Diff. 4Q 2016 4Q 2017 % Diff. Net Sales 11.547 14.801 28 3.332 3.855 16 Gross Profit 1.209 1.705 41 510 366 -28 Operating Expenses -330 -316 4 -91 -95 -5 Income/Loss from other operations -98 -57 42 -106 -73 31 Operating Profit 781 1.333 71 314 198 -37 Income/Loss from equity investment 53 64 22 8 16 93 Operating Profit Before Fin. Income/Loss 834 1.397 68 322 214 -34 Net Financial Income /Expense -190 -170 11 -35 -21 40 Profit Before Tax & Minorities 644 1.227 91 287 192 -33 Net Profit 594 1.046 76 256 123 -52 EBITDA (mn.$) * EBITDA (mn.$) CCS For P&L, USD/TL rates: 2017 12M 3,6450, 2016 12M 3,0186 *According to international standards, in our EBITDA calculation, FX related items are not included. Investor Presentation www.tupras.com.tr APPENDIX 1.125 1.614 43 480 321 -33 972 1.453 50 418 235 -44 50#51Crack Margin Effect on Tüpraş in 12M (FOB Italy Prices) Higher product cracks in 2017 over 2016 indicates a +1.9 $/bbl margin difference, yielding a 1.4 billion TL contribution to Tüpraş Financials. Product Price, $/ton Tüpraş Crack Margin, $/bbl 2017 2016 2016 Yield 2017 2016 LPG 435,2 308,3 %3,3 -15,5 -16,2 Gasoline Naptha Jet Fuel Diesel Diesel 1000 549,0 462,3 %19,5 13,4 13,3 467,2 366,6 %1.0 -1,5 -2,3 ' 512,7 408,9 %15,4 10,9 8,3 491,0 394,6 %30,4 11,7 9,3 478,0 384,9 %1,2 9,9 8,0 Fuel Oil 1% Fuel Oil 3,5% Diğer 315,0 222,3 %0,9 -5,7 -9,4 298,5 205,2 %5,7 -8,2 -12,1 ' 276,3 200,3 %16,8 -8,5 -10,5 94,4 Total Crack Margin, $/bbl 5,5 3,7 Dated Brent Avg. $/Bbl 54,3 43,7 Margin Differences, $/bbl Total Processed, mn bbl Total Effect, mn $ +1,86 213.29 383.6 Total Effect, mn TL Investor Presentation www.tupras.com.tr APPENDIX 1.398,1 51#52High Complexity (Resid Upgrading Units Production-(Thousand Tons) (kton) Raw Materials Products Natural Gas 246 Diesel Gasoline LPG Vacuum Resid 1,214 2.883 522 69 Atm. Straight Run Fuel Oil 3,036 Total Feed 4,496 Investor Presentation www.tupras.com.tr APPENDIX PetroCoke 690 Sulphur 86 Total Production 4,250 52#53High Complexity (Tüpraş Total Production Change After RUP) mn tons Gasoline&Naptha 4,7 Investor Presentation www.tupras.com.tr 1,7 %35 Jet Fuel 3,6 0,9 %25 Diesel 5,6 Others 1,4 0,3 %19 Fuel Oil 0,35 2,7 %-87 Coke 0,7 Bitumen 2,9 APPENDIX 5,5 RUP production + 4 Refineries Capacities increase 9,1 mn tons, instead of 4,2 mn ton Before RUP After RUP 53#54Flexibility & Reliability; Multiple routes to maksimum capacity • Increased conversion. capacity • Strong integration among refineries Investor Presentation APPENDIX www.tupras.com.tr Key units Number of units Capacity (m3/d) Flow Diagram LPG MEROX Yields (%) LPG 3.5% CRUDE OIL 8 97000 VACUUM 8 42320 ISOMER. NAFTA SPLITTER GASOLINE NAPHTHA 22.0% HYDROCRACKER UNIFINER REFORMER Benzen Saturation 4 18200 5252 KERO / ISOMERISATION 3 6400 DIESEL CRUDE OIL JET FUELOİL } 16.5% HDS UNIFINER REFORMER 7 16900 5254 FCC FCC Benzin HDS 522 DIESEL 33.9% KERO/DIES EL (HDS) 10 លោ 10 37300 VACUMM DİST. HYDROC. FCC 2 4700 Lube Oil COKER 1 8200 More than one distillation and production units LUBE OIL 0.5% COKER Bitumen NAPHTHA BITUMEN & FUEL OIL 19.9% 8 SPLITTER LPG MEROX 6 OTHER 3.8% 54#55Competition (European Pump Price Comparison) Gasoline (Krş / Lt) Diesel 10 (Krş / Lt) Pump No Tax Distr. Marg. Tax Pump No Tax Distr. Marg. Tax 800 700 725 735 691 473 473 663 634 642 439 419 413 600 584 408 553 317 322 675 620 660 411 394 650 416 596 317 552 337 540 308 525 496 266 255 400 350 62 72 55 175 26 51 52 200 267 244 252 203 191 190 180 174 0 TR Spa. 58 60 64 26 303 274 259 218 186 184 199 201 0 UK Ger Eu19 Fra. Gre. Ita. TR Spa. Ger. EU19 Fra. Gre. UK Ita. Not: Prices valid on 12 Feb 2018-Turkey Gasoline pirice as of 14th of February 2018 Investor Presentation www.tupras.com.tr APPENDIX 55#56Tüpraş HSE KPI: Loss Time Incident Frequency and Severity Frequency Ratios 8 Incident Frequency Including contractors Tüpraş Contractor Total 7,1 7,1 6,9 6 CO 6,1 4,8 5,0 3,6 4 3,4 3,5 3,6 2,5 3,2 1,7 2,2 3,4 2,5 3,1 2,6 2,8 1,9 2 1,5 2,4 1,6 1,9 1,7 1,8 1,9 1,1 2,0 1,7 1,4 1,3 0,8 0,9 0 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 56#57Energy Saving Projects (mn$) 500 375 250 125 240 398 407 416 424 376 345 135 73 42 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Tüpraş Energy consumption (TJ) 76.653 65.265 67.010 70.792 71.086 69.147 67.034 90.796 102.156 105.851 785.790 Energy-saving (TJ) 978 10.891 3.155 3.053 5.255 2.841 1.772 1.031 1.054 830 30860 Energy Efficiency Project 36 52 65 92 97 40 22 21 18 15 458 Savings (mn $) 42 32 62 105 106 31 22 10 9 5 424 Investor Presentation APPENDIX www.tupras.com.tr 57#58Koç Holding Turkey's Leading Investment Holding Company Turkey's largest industrial and services group in terms of revenues, exports, employees, taxes paid and market caputalization Turkey's Leading Investment Holding Company The only Turkish company in Fortune 500¹ Combined Revenues/ GDP 7% 16% CARG in consolidated profit2 in the last five years. Total Exports / Turkey's Exports 10% Pioneer in its Sectors Total MCap on Borsa İstanbul 19% 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 YE17, 2017 GDP reflects the projection of Turkish government's Medium Term Program (1) 2017 Report (2) In TL terms between Investor Presentation www.tupras.com.tr APPENDIX 58#59Tüpras ©Ꮚ Koç Updated information can be found in the Investor Relations section of the company website www.tupras.com.tr