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INVESTOR PRESENTATION
16 March 2016
Investments03
Company
Overview02
Refining
Industry01
Key
Financials04
Refining Industry
Brent Crude Oil Prices
108,0 115,3106,1
101,2
94,6
84,3
71,7
65,760,4
55,0
55,0
45,2
62,0
66,7
26,0
39,2
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
02
.01
.20
14
15
.02
.20
14
31
.03
.20
14
14
.05
.20
14
27
.06
.20
14
10
.08
.20
14
23
.09
.20
14
06
.11
.20
14
20
.12
.20
14
02
.02
.20
15
18
.03
.20
15
01
.05
.20
15
14
.06
.20
15
28
.07
.20
15
10
.09
.20
15
24
.10
.20
15
07
.12
.20
15
20
.01
.20
16
04
.03
.20
16
$/Barrel
CONS
Excess Crude Supply
Cooling Chinese Economy
Consumption is lower than usual
in the winter months because of
the El-Nino effect
High production from the OPEC
and non-OPEC producers
Entry of Iranian production
The amount of additional new
refining capacity in ME and China.
PROS
Increased geopolitical risk perception
Potential high consumption due to the
lower price environment.
Narrowed spread between the Brent
and WTI and increased spread
between the light and heavy crudes
Worsening situation of the economies
in oil dependent countries
Refinery Capacity Change
810 640
160 195 52-255
-543 -486
334
150
340 13540
-145
-109 -266
160
250
181
84180
-240
65
-421
530
526
0 302
-5
-775
-546
520
400
120
390
-140
305
-352
270
510
0
198
-443
63
-189
200
880
0
309
-100
20
-218
-3.000
-2.000
-1.000
0
1.000
2.000
3.000
China India Middle East Other Asia Other Japan NorthAmerica
Europe
Tho
usa
nd
Bar
rels
/Day
2009 2010 2011 2012 2013 2014 2015
5Source : Tüpraş, Reuters, Reports
1.6781.790
1.041 1.110
799885
1.000
0
500
1000
1500
2000
2012 2013 2014 2015 2016 2017 2018
Refinery Value
Value Added•Ability to upgrade
•Correlated to complexity
Cost Base•Energy Efficiency•Raw Material costs•Scale•Automation
Local Market Dynamics•Growth trends•Supply / Demand balance
Market Position•Proportion of products sold domestically•Local Competition•Infrastructure
6
7
Product Crack $/bbl
5,00
7,00
9,00
11,00
13,00
15,00
17,00
19,00
21,00
23,00
Jan Feb March April May June July Agust Sept Oct. Nov Dec
Jet Fuel
2009 2010 2011 2012 2013 2014 2015 2016 F
5,00
7,00
9,00
11,00
13,00
15,00
17,00
19,00
21,00
23,00
25,00
Jan Feb March April May June July Agust Sept Oct. Nov Dec
Gasoil
2009 2010 2011 2012 2013 2014 2015 2016 F
Note: 2009-March 2016 Platts Data, 2016 (April-December estimation PIRA
8
Product Crack $/bbl
-60,00
-50,00
-40,00
-30,00
-20,00
-10,00
0,00
10,00LPG
2009 2010 2011 2012
-20,00
-15,00
-10,00
-5,00
0,00
5,00
Jan Feb March April May June July Agust Sept Oct. Nov Dec
Naphta
2009 2010 2011 2012
2013 2014 2015 2016 F
0,00
5,00
10,00
15,00
20,00
25,00
Jan Feb March April May June July Agust Sept Oct. Nov Dec
Gasoline
2009 2010 2011 2012 2013 2014 2015 2016 F
Note: 2009- March 2016 Platts Data, 2016 (April-December) estimation PIRA
Crude Differentials $/Barrel
-4,0
-3,5
-3,0
-2,5
-2,0
-1,5
-1,0
-0,5
0,0
0,5
1,0
-4,0
-3,5
-3,0
-2,5
-2,0
-1,5
-1,0
-0,5
0,0
0,5
1,0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009-2012 Min/Max 2012 2014 2011 2013 2015
-12,0
-10,0
-8,0
-6,0
-4,0
-2,0
0,0
2,0
Differentials Trends
Ural Iran Light (KI) Iran Heavy (KI) Kirkuk Arab. Heavy Siberian Light CPC
Ural Crude Differentials $/Barrel
9
Med Complex Refining Margins
-2,00
-1,00
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Gro
ss M
argi
n $
/bb
l
Max-Min 2004-2009 Average 2011 2012 2013 2014 2015
10
Turkish Sector Outlook
Primary driver of demand is
growing vehicle parc
Auto sales continue to massively
outstrip removals
Very high gasoline tax has led to LPG
& Diesel substitution
Gasoline car sales improving35,8 41,2 50,6 58,3 64,5 76,1 85,4 97,543,6 44,3
52,259,4
65,473,4
80,383,9
79,4 85,5102,8
117,6130,0
149,5165,7
181,4
0
50
100
150
200
2008 2009 2010 2011 2012 2013 2014 2015
Air Passengers - Mill ion
Domestic International
4,6 5,4 6,1 6,8 7,1 7,5 8,1 8,6 9,3 9,9 10,54,1
4,86,1
7,0 7,2 7,6 8,0 8,4 8,7 9,0 9,4
8,710,2
12,213,8 14,3 15,1
16,117,0 17,9 18,8
19,9
0
5
10
15
20
25
Mill
ion
Veh
icle
s
Vehicle Parc
Passenger Car Other
Jet Fuel demand growing strongly Highly competitive liberalised market
Big infrastructure investments
Istanbul has become a hub for Turkish Airlines
Fuel Oil demand is declining Natural gas substitution
Switching is dependent on price
Long Term Asphalt Demand Growth Infrastructure investments
*By the end of November11
12 Month 2015 - Turkish Consumption (Million ton)
17,43 20,18
0,0
5,0
10,0
15,0
20,0
25,0
2014 2015
Diesel
4,104,64
0,0
1,0
2,0
3,0
4,0
5,0
2014 2015
Jet Fuel*
1,92 2,09
0,0
0,5
1,0
1,5
2,0
2,5
2014 2015
Gasoline
0,540,44
0,00
0,10
0,20
0,30
0,40
0,50
0,60
2014 2015
Fuel Oil
12
* Tüpraş sales + Distributor’s Imports
+9,1%
+15,8% +13,1%
-18,5%
Turkey’s Import / Export Balance (Net)
-3,0
2,1
-10,0
1,5
-3,0
2,5
-10,8
1,6
-3,1
2,4
-12,0
1,0
-3,1
2,5
-12,7
1,8
-3,0
3,0
-12,3
1,6
-14,0-13,0-12,0-11,0-10,0
-9,0-8,0-7,0-6,0-5,0-4,0-3,0-2,0-1,00,01,02,03,04,0
LPG Gasoline Diesel Fuel
2011 2012 2013 2014 2015
Million Ton
Export
Import
Company Overview
Tüpraş Refining Assets
İzmir
İzmit
Ankara
İstanbul
Kırıkkale
Batman
Kirkuk
Baku
MARMARA
Kırıkkale
5.0 MT Capacity
NC: 6.32
Storage Capacity :
1.4 Mn m3
Batman
1.1 MT Capacity
NC: 1.83
Storage Capacity :
0.3 Mn m3
İzmit
11.0 MT Capacity
NC: 14.5
Storage Capacity :
3.0 Mn M3
İzmir
11.0 MT Capacity
NC: 7.66
Storage Capacity :
2.5 Mn M3
Lube Oil Production 400
thousand ton
Black Sea
Total Refining Capacity: 28.1 Million Tons – 100% of Turkey’s refining Capacity
Current Nelson Complexity(NC): 9.5
15
OPET Tüpraş Share 40.0 %
1.419 İstasyon
1.003 Opet Marka
416 Sunpet Marka
1.1 Million M3 Storage
•Major Terminals in Marmara, Agean, Black Sea & Mediteranean
International Trading
•London
Jet Fuel Sales
•Turkish Airlines JV
Lubricants
•Fuchs JV
A Sector Leader
•2nd Biggest Player
•# 1 Brand
16
DİTAŞ – Deniz Taşımacılığı – Tüpraş Share %79.98
19,314,8
6,4 4,8 6,6
2,6
3,1
3,13,5
5,2
18,0
9,6
9,68,4
11,8
0
5
10
15
20
25
2011 2012 2013 2014 2015
Mill
ion
To
ns
Crude Products
Million $ 2011 2012 2013 2014 2015
Net Sales 146,4 159,0 103,7 101,7 113,6
Op. Profit 17,9 22,8 25,2 27,3 36,8
• Crude• 2001
• 164,86 K DWT
Cumhuriyet
• Products • 2008
• 10,98 K DWT
Sevgi
• Products • 2009
• 10,98 K DWT
Gönül
Products
2011
6 K DWT
Leyla
Products201255 K DWT
Suna
• Bitumen
• 2x20 K DWT
• Esra 2014
• Aylin 2015
Esra & Aylin
Financials
19 Tugboats
Crude Suppliers of TÜPRAŞ (Million Tons)
9,7
2,1
2,0
2,4
3,1
1,1 0
,1
0,0
0,3
7,2
2,0
2,8 2
,3
3,8
1,5
0,3
1,0 0
,6
5,1
1,5
2,9 2
,4
6,1
1,5
0,3
0,7
0,6
5,3
0,6
1,9
2,4
5,7
1,6
0,2
0,1
2,6
5,4
7
3,1
1
2,3
9
2,5
7
11
,54
0,5
9
0,3
0
0,0
0 1,4
3
0
2
4
6
8
10
12
IRA N RUSS İA S .A RA BİA TURKEY IRA Q KA Z A KS TA N ITA LY L İBYA OTHER
2011 2012 2013 2014 2015
In 2015, Tüpraş purchased 21 different types of crude oil from 11
countries, with gravities ranging between 19-47 API
18
63%
30%7%
Crude Type - 2015
Heavy / SourMedium Heavy / SourLight & Sweet
Margin Environment
19
Tüpraş Refining Margins ($/bbl)Premium to the benchmark Mediterranean peers’ refining
margin due to:
► Refined products deficit characteristic to the Turkish
market (for diesel, jet fuel, LPG and specialist products
such as lube oil and extract)
► 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
Energy efficiency programs
► Capacity to produce higher value added range of
refined products
► Direct pipeline connections with domestic clients
► High export capability
Tüpraş Gross Margin Tüpraş Net Margin
Mediterranean Ural Complex Margin
5,30 5,32 5,54
1,95
2,89
1,17
4,21
1,67 2,01
4,834,77
-1,00,01,02,03,04,05,06,07,08,09,0
10,0
O 0
6
H 0
6
K 0
6
N 0
7
E 0
7
Ş 0
8
T 0
8
A 0
8
M 0
9
E 0
9
M 1
0
A 1
0
O 1
1
H 1
1
K 1
1
N 1
2
E 1
2
Ş 1
3
T 1
3
A 1
3
M 1
4
E 1
4
M 1
5
A 1
5
O 1
6Month Annual
Med Complex
9,6210,55
11,86
2,453,21
6,47
1,67 1,95
4,83
0
2
4
6
8
10
12
14
2013 2014 2015
Annual
Gross Refinery Margins, $/v
20
-5
0
5
10
15
20
25
30
35
J-9
9A
-99
J-9
9O
-99
J-0
0A
-00
J-0
0O
-00
J-0
1A
-01
J-0
1O
-01
J-0
2A
-02
J-0
2O
-02
J-0
3A
-03
J-0
3O
-03
J-0
4A
-04
J-0
4O
-04
J-0
5A
-05
J-0
5O
-05
J-0
6A
-06
J-0
6O
-06
J-0
7A
-07
J-0
7O
-07
J-0
8A
-08
J-0
8O
-08
J-0
9A
-09
J-0
9O
-09
J-1
0A
-10
J-1
0O
-10
J-1
1A
-11
J-1
1O
-11
J-1
2A
-12
J-1
2O
-12
J-1
3A
-13
J-1
3O
-13
J-1
4A
-14
J-1
4O
-14
J-1
5A
-15
J-1
5O
-15
J-1
6
Mediterranean
Tüpraş
ABD WTI
Singapore
20
Capacity Utilisation (%)9
1,1
86
,1
60
,4
69
,6 74
,4 78
,7
76
,8
71
,3
98
,1
8,7
7,55,5
2,9 2,43,6
4,4
69,2
77,181,6
79,174,9
102,5
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012 2013 2014 2015
Crude Oil Other
Quarterly Production Volume (Mn Tons)
3,31
4,19 4,324,06
5,51
6,256,47
6,07
4,554,63 5,41
5,51
5,71
6,82
7,32 7,42
0
1
2
3
4
5
6
7
8
1Q 2Q 3Q 4Q
Min / Max 2007/2014 2014 2015
Production
+27,6%
21
4th Quarter Product Yields
22
12M Product Yields
23
Refining Sales
1,8
7,9
2,8 3,0
1,8
8,6
3,32,8
1,8
8,1
3,62,9
1,8
6,7
3,9
1,92,0
9,2
4,8
2,9
0,0
2,0
4,0
6,0
8,0
10,0
Gasoline Diesel Jet Fuel Bitumen
2011 2012 2013
2014 2015
Domestic Sales, Million Tons
16,9
22,2
5,3
6,522,2
28,7
0
4
8
12
16
20
24
28
32
2014 2015
ExportDomestic
%+31,9
%+29,5
4,2
8,0
3,0 3,0
4,6
8,8
3,52,8
4,6
8,2
3,72,9
4,3
6,8
3,9
1,9
5,6
9,3
5,1
2,9
0,0
2,0
4,0
6,0
8,0
10,0
Gasoline Diesel Jet Fuel Bitumen
2011 2012 2013
2014 2015
► Sales to distributors in Turkey are
made at prices established by Tüpraş
In accordance with a formula based on
Italian "CIF" prices plus a margin
below a maximum approved by EMRA
Tüpraş's prices are affixed to all
distributors, including Opet, on an
equal basis
► Export sales are generally made to
traders, on FOB basis
Total Sales, Million Tons
Sales Breakdown & Comparison
12M Trading Activities
Exports
High CUR = big increases in export
Finished Products
High Sulfur Diesel imports decreased due to
low desulphurisation arbitrage profits.
ULSD imports were higher due to the trading
arbitrage.
Intermediates
Additional HVGO + LCGO imported to increase
Capacity Utilisation of conversion units.
0
882
692
24
532
274
0
637
804
49
588
61
0
200
400
600
800
1.000
Product Imports, Ton*000
2014
2015
2.508
129
2.670
27
3.559
349
2.551
350
1.000
2.000
3.000
4.000
Gasoline Middle Dist. Fuel Oil Other
Exports, Ton*000
2014
2015
436
733
0
200
400
600
800
HVGO + LCGO ASR F.Oil
Intermediate Imports , Ton*000
12M 2014 12M 2015
25
Sales By Customer 2015
26
Distributors40%
THY Opet11%
Jet Fuel5%
LPG Dist.3%
Petkim1%
Other5%
Export23%
Asphalt10%
Military2%
OMV POAŞ25%
OPET17%
Shell13%
BP6%
TP4%
TOTAL4%
Others31%
Customer Groups Sales to Distributors
Total: 28.7 million ton Distributors : 12.8 million ton
Investments, million $
397
761
1.006
701
190150
231
213
207
258
153
268
177
628
974
1.213
959
344268
0
200
400
600
800
1.000
1.200
1.400
2010 2011 2012 2013 2014 2015 2016
RUP with Supplementary Projects
Others
Other Major ProjectsProject Aims
•To reduce the need for fresh water
What the Project Entails
•A water treatment plant to process municipal & refinery waste water
•Two temporary systems were built to serve until the main system was completed
•Project completed in 2015
Investment
•22 Million USD
29
İzm
it W
aste
Wat
er
Tre
atm
en
t
Project Aims
•Eliminating low energy efficiency in the furnaces
•Enables sustainable full capacity utilization
What the Project Entails
•Configuration Changes
•De-salter & Pre-flash column
•Heat recycling – Heat Exchanger
•Replace column internals
•New pre-flash drum
Expectations
•Investment: 31.9 Million USD
•IRR > 40%
İzm
ir C
rud
e O
il R
eva
mp
ing
Project Aims
•Improving Energy Efficiency at Kırıkkale with a combined heat & power plant
•The other refineries are already equipped
•Expected completion: 2016
What the Project Entails
•A new gas turbine
•New steam turbines
•New boilers
•One existing steam turbine will be utilized
•Total power: 60 MW
Investment
•84 Million USD
•IRR: >30%
Kır
ıkka
le P
ow
erP
lan
t
Profitability Indicators , 12 M & 4Q
* In our EBITDA calculation, FX related items are not included, whereas CMB rules is that these should be included in
operationg profit
4th Q(%)
Full Year(%)
2014 2015 2014 2015
76,27 43,69 -43 Dtd.Brent Price, ($/bbl) 98,99 52,46 -47,0131,91 30,27 -5,1 Processed Crude API 32,29 31,35 -2,9170,50 77,50 7,0 White Product Yield, (%) 72,20 75,40 3,20
3,84 3,54 -7,8 Med. Complex Margin,($/bbl) 1,95 4,83 148,24,56 5,17 13,3 Tüpraş Net Margin,($/bbl) 3,21 6,47 101,613,2 422,0 - Operating Profit, (mn. $) 199,3 1.012,2 408-41,1 362,4 982 Operating Profit for EBITDA, (mn. $) 220,1 1.218,6 45443,4 481,4 1.008 EBITDA (mn.$)-CMB 317,3 1.191,0 275
247,7 564,9 128 EBITDA (mn.$)-CMB- CCS 554,1 1.379,1 149-10,9 421,8 -3.980 EBITDA *(mn. $) 338,2 1.397,4 313193,4 505,3 161 EBITDA* (mn. $) CCS 575,0 1.585,5 176
Financial Highlights (mn $)
779
134262
95 79 150 150
256
328
153 78-27
415
271
468
361315 226
410169
272
10689
-11
422
830
1.329
715560
338
1.397
-200
0
200
400
600
800
1.000
1.200
1.400
2009 2010 2011 2012R 2013 2014 2015
522
67194 161
72231
112145
16575
75
171273
230
206309 435
175 26847
174 27147 91
285
490
740817
629 667
938
0
100
200
300
400
500
600
700
800
9001000
2009 2010 2011 2012 2013 2014 2015
-65
3
-1.9
55
57
8
55
1
1.3
40 1.9
94
1.6
96
1.8
69
1.5
98
1.6
63 2
.45
2
2.5
77
2.7
48
2.3
70
-3.000
-2.000
-1.000
0
1.000
2.000
3.000
0,2
2
0,1
9
0,3
0
0,3
2
0,2
4
0,1
0
0,4
0
0,3
3
0,3
0
0,2
6
0,1
8
0,3
0 0,3
5
0,3
5
0,000,050,100,150,200,250,300,350,400,45
2009 2010 2011 2012 2013 20131Q
20141Q
20141H
20149M
2014 20151Q
20152Q
20159M
2015
EBITDA Net Income
Net Debt/(Cash) Return on Average Equity
32
Balance Sheet Analysis
1,831,81
1,41
2,16
1,721,69
1,30
1,641,68
1,211,04
0,821,04
0,0
0,5
1,0
1,5
2,0
2,5
Dec.12Mar.13 Jun 13 Sep13 Dec 13Mar.14 Jun.14 Sep.14 Dec.14Mar.15 Jun.15 Sep.15 Dec.15
Cash & Equivalents (Billion $)
1,191,34
1,451,33
0,930,71
0,520,51
0,090,20
0,66
1,070,88
0,0
0,5
1,0
1,5
2,0
Receivables (Billion $)
2,0 2,1 2,3 2,4 2,6 2,8 2,9 2,9 3,0 3,3 3,1 3,0 2,8
0,40,8
0,81,0 0,5
0,90,3 0,3 0,3
0,4 0,5 0,60,6
2,4
2,93,1
3,43,1
3,7
3,2 3,2 3,33,7 3,6 3,6 3,4
0,0
1,0
2,0
3,0
4,0Financial Loans (Billion $)
LT Loans ST Loans
2,882,972,94
3,463,223,103,28
3,04
2,46
1,741,701,591,36
0,0
1,0
2,0
3,0
4,0
Payables (Billion $)
33
FX Risk Exposure (31 December 2015 )
ConsolidatedAssets
ConsolidatedLiabilities
LT Financials: 2,337
RUP Loans: 1,550
Eurobond: 700
Other credits 88
ST Financials 351
• RUP 300
Payables
904
Forward
2,003
Stock
675
Receivables
188
Cash
550
Million $
-177 million $
Cash flow hedge accounting : 1,709 mn $
Future Expectations
Brent Price Estimation
• The average Brent price in 2016 is expected to be 45-55 dollars per barrel band.
Med Complex Margin
• We expect Med Complex margins to be 3.5-4.0 dollars per barrel band in 2016.
Tupras Net Margin
• For Tupras net refinery margins, we expect this to be in the region of 5.8-6.3 dollars per barrel
Capacity Utilisation
• Expected Capacity Utilisation in 2016 will be around 100 %.
• Production will therefore be approximately 28 million tons
• Imports of finished products will be minimal, as we focus on selling increased volumes of production
• Total sales volume will be 30.0 million tons
Investment
• Total investments for 2016 will be about 270 Million dollars
Income Statement
4Q 4 Q% Diff. Million USD 2014 2015 % Diff.
2014 2015
3.974,2 3.031,3 -24 Net Sales 18.164,8 13.570,7 -25
98,0 454,5 364 Gross Profit 577,5 1.535,7 166
-108,1 -98,8 -9 Operating Expenses -334,6 -322,6 -4
23,2 66,3 185 Income/Loss from Other Oper. -43,6 -200,9 361
13,2 422,0 3.098 Operating Profit 199,3 1.012,2 408
-28,6 10,9 -138 Income/Loss from equity & Inv. -7,6 26,7 -450
-15,4 432,9 -2.913 Operating Profit Before Finance 191,6 1.038,9 442
64,9 -60,0 -192 Financial Income 228,1 317,3 39
-94,5 2,0 -102 Finance Expenses -335,8 -537,7 60
-45,0 374,9 -932 Profit Before Tax & Minorities 84,0 818,6 875
90,8 284,8 213 Net Profit 667,2 938,0 41
Tüpraş Balance Sheet-Assets
Million USD 31.12.2015 31.12.2014 Difference%
Difference
Current Assets 2.984 3.015 -31 -1
Cash & C. Equivalents 1.041 1.681 -640 -38
Receivables 882 87 796 920
Derivatives 6 28 -21 -77
Inventories 723 1.022 -299 -29
Pre-paid expenses 45 53 -8 -15
Other Current Assets 285 144 141 98
Long Term Assets 5.776 6.443 -667 -10
Financial Assets & Subsidiaries 264 315 -51 -16
Fixed Assets 3.950 4.600 -651 -14
Pre-paid expenses 62 112 -50 -45
Deferred Tax 1.101 1.131 -30 -3
Other Long Term Assets 314 284 29 10
Total Assets 8.760 9.458 -698 -7
Tüpraş Balance Sheet-Liabilities
Million USD 31.12.2015 31.12.2014 Difference % Difference
Short Term Liabilities 3.036 3.692 -656 -18
Financial Loans 644 335 308 92
Payables 1.363 2.464 -1.101 -45
Derivatives 13,89 0,03 13,86 47.258
Deferred Incomes 8 8 -0,12 -1
Provisions 24 47 -23 -48
Other ST Liabilities 984 838 146 17
Long Term Liabilities 2.845 3.087 -242 -8
Financial Loans 2.768 3.009 -241 -8
Payables & Provisions 67 76 -9 -12
Derivatives 9 0 9 4.325
Other LT Liabilities 1 2 -1 -29
Equity 2.856 2.655 201 8
Minority Interests 22 24 -2 -10
Total Liabilities 8.760 9.458 -698 -7
Dividends (TL)
1,73
3,242,94
4,96
5,83
4,78
2,312,50
2,98
3,93 3,85
1,58
579626
746
985 964
396
0
200
400
600
800
1.000
1.200
0
1
2
3
4
5
6
7
2008 2009 2010 2011 2012 2013 2014
Tota
l Pay
ou
t (M
illio
n T
L)
Earnings per Share Gross Dividend Total Payout
2012/2013 EPS includes the tax incentive39
Disclaimer
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.
The Investor Relations section of our company website has a rich content of updated
information for the interested investors
www.tupras.com.tr
CFOInvestor Relations and Reporting
Director
Doğan Korkmaz Turgut Tuncay Önbilgin
Investor Relations and Reporting DirectorsTel. : 262 316 3269Fax : 262 316 30 10-11Güney Mah. Petrol Cad. No .25 PK.41790 Körfez-Kocaeliwww.tupras.com.trE-mail: [email protected]
Supplements
HIGH DEMAND (12 Month 2015 - Turkish Consumption (Million ton))
17,43 20,18
0,0
5,0
10,0
15,0
20,0
25,0
2014 2015
Diesel
4,104,64
0,0
1,0
2,0
3,0
4,0
5,0
2014 2015
Jet Fuel*
1,92 2,09
0,0
0,5
1,0
1,5
2,0
2,5
2014 2015
Gasoline
0,540,44
0,00
0,10
0,20
0,30
0,40
0,50
0,60
2014 2015
Fuel Oil
* Tüpraş sales + Distributor’s Imports
+9,1%
+15,8%+13,1%
-18,5%
HIGH COMPLEXITY #1(Nelson Complexity of Refinining Companies)
14,5
13,012,6
11,8 11,6 11,511,0
10,49,9 9,8 9,6 9,5 9,4 9,2 9,2 9,0 8,8 8,7
8,48,0
7,3 7,1 7,1 7,1 7,16,8
6,5
5,9 5,8 5,8
0
2
4
6
8
10
12
14
16
Tüpraş Before RUP
Tüpraş After RUP
İzmitAfter RUP
HIGH COMPLEXITY # 2(Resid Upgrading Units Production – (Thousand Tons))
Raw Materials
Natural Gas 246
Vacuum Resid1,214
Atm. Dip3,036
Total Feed 4,496 Total Production 4,250
(kton)
Products(kton)
45
HIGH COMPLEXITY # 3(Tüpraş Total Production Change After RUP)
4,7
3,6
5,6
1,4
2,9
1,7
0,9
5,5
0,3
0,35
0,7
0 2 4 6 8 10 12
Gasoline&Naptha
Jet Fuel
Diesel
Others
Fuel Oil
Coke
BitumenBefore RUP After
%35
%25
%19
%-87
Million ton
46
2,7
RUP production + 4 Refineries Capacities increase 9,1 mn tons, instead of 4,2 mn ton
HIGH COMPLEXITY # 4(Tüpraş Tax Incentive From RUP)
• Valued at 30% of project cost
• Realised after completion
• Tax rate of 10% on project earnings until total incentive is reached
Large ScaleInvestment Incentive
21.10.2010
• Valued at 50% of project cost
• Partly realised during construction
• Tax rate of 2% on project earnings until total incentive is reached
Strategic Investment Incentives 19.10.2012
• is 3,66 billion TL.
• 344 mn TL of Investment incentive income deducted from Strategic Investment Incentive total
Total incentive
HIGH QUALITY(Maximum on-road diesel sulphur limits, January 2014)
48
2014 2015 2020 2025
US& Canada 15 15 15 10
Latin America 630 450 195 40
Europe 20 18 12 10
Middle east 900 470 125 45
Russia & Caspian 90 70 55 40
Africa 2.800 2.000 850 390
Asia& Pasific 245 185 105 45
Source:Stratas Advisors
Tüpraş and Turkey have the most stringentproduction limits on sulphur content
HIGH FLEXIBILITY(Tüpraş Refineries Simple Flow Diagram)
Gasoline + Naphtha
%21.9
Jet Fuel +Kerosene
%19.0
Gas Oil%30.5
Vacuum Dist.(8) Bitumen /
Fuel Oil%21.9
Crude Distillation(8)
Lube Oil%0.5
LPG
%3.4Isomerisation
(3)
Hydrocracker (4)
FCC(2)
Kero / DieselHDS (10)
LPG Merox (6)
NaphthaSplitter
(8)
FCC GasolineHDS(2)
Benzene Saturation
(2)
UnifinerReformer
(7)
Lube Oil (1)
Others %1.3
2015Yield
97,000 m3/bbl
43,000 m3/bbl
6,400 m3/bbl
16,900 m3/bbl
37,300 m3/bbl
4,700 m3/bbl
17,400 m3/bbl
400 thousand ton/year
Coker
Bitumen (4)
8,200 m3/day
LOCATIONAL ADVANTAGE & HEAVIER CRUDES(Crude Suppliers of TÜPRAŞ (Million Tons))
9,7
2,1
2,0
2,4
3,1
1,1 0
,1
0,0
0,3
7,2
2,0
2,8 2
,3
3,8
1,5
0,3
1,0 0
,6
5,1
1,5
2,9 2
,4
6,1
1,5
0,3
0,7
0,6
5,3
0,6
1,9
2,4
5,7
1,6
0,2
0,1
2,6
5,4
7
3,1
1
2,3
9
2,5
7
11
,54
0,5
9
0,3
0
0,0
0 1,4
3
0
2
4
6
8
10
12
IRA N RUSS İA S .A RA BİA TURKEY IRA Q KA Z A KS TA N ITA LY L İBYA OTHER
2011 2012 2013 2014 2015
In 2015, Tüpraş purchased 21 different types of crude oil from 11
countries, with gravities ranging between 19-47 API
50
51www.Tüpraş.com.tr
Baku
Ceyhan
Black Sea
Marmara
Mersin
Ankara
İstanbul
Batman
Kirkuk
İzmir
İzmit
Kırıkkale
COVERING WHOLE COUNTRY
Operations
İzmit
11.0 MT Capacity
NC: 14,5
Storage Capacity: 2.2 Mn M3
Sales Channels:
o Pipeline, Ship, Railway & Truck
İzmir
11.0 MT Capacity
NC: 7.66
Storage Capacity: 1.9 Mn M3
Only lubricant, base Oil, producer
Sales Channels:
o Pipeline, Ship, & Truck
Kırıkkale
5.0 MT Capacity
NC: 6.32
Storage Capacity: 1.2 Mn M3
Sales Channels:
o Pipeline, Railway & Truck
Batman
1.1 MT Capacity
NC: 1.83
Storage Capacity: 0.2 Mn M3
Asphalt - 70% of product yield
o Semi-finished products sent for
further processing
Sales Channels:
o Pipeline, Railway & Truck
Tüpraş operates the only 4 refineries in Turkey
• 3 Large Refineries produce Euro V Diesel & Gasoline, plus jet fuel, fuel oils, asphalt, LPG,
naphtha and others
13
0
10
7
15
0
11
8
10
9
80 11
9
11
3
19
6
47
17
4
20
5 17
2
21
4
22
4
21
1 27
5 32
0
24
5304 313 322 331 334 339
394
433 441
0
50
100
150
200
250
300
350
400
450
500
Spa. Ger. Gre. EU19 Fra. TR Ita. Eng. Nor.
COMPETITION # 1(European Pump Price Comparison)
Gasoline (Krş / Lt) Diesel 10 ppm (Krş / Lt)
13
9
10
9
12
3
82 12
7
13
1
11
4
13
1
18
5
43
21
4
27
8 28
2
28
0
28
2 30
5
32
0 32
2
30
2
353
386405 405 409
436 434454
487
0
50
100
150
200
250
300
350
400
450
500
550
Spa. Ger. EU19 TR Fra. Gre. Eng. Ita Nor.
Tax Distr. Margin Pump No Tax
52Not:e Price valid on 15 Feb 2016. Tukey diesel price 18 Feb. 2016.
COMPETITION # 2 (Regional Competition)
Mediterranean Black Sea
53
17 Refineries
1.6 mn bpd53 Refineries
7.6 mn bpd
COMPETITION # 3 (SOCAR-STAR Refinery)
• 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.
54
Credit : 3.3 Billion $
Equity : 2.4 Billion $
Total Investment: 5.7 Billion $
STAR Refinery Production (k ton)
• 3,3 billion dollar credit aggrement. First 4 year grace period total 15-18 year term.
• Project finance is supplied to company (US$ 1.5 billion)
• It is planned to be commissioned in 2018.
Fuels
• Diesel 5.000
• Jet Fuel 1.700
• Sulphur 158
• Petrocoke 698
Petrochemical feedstock
• LPG 260
• Naptha 1.300
• Mixed xylene 460
• Reformate 524
10,100
Million ton
2018 2018*
TurkeyDemand
TüpraşProduction
Turkey-Tüpraş
StarSOCAR
Deficit/(Excess)
Crude Oil 28,1 10,0Semi product+Other charge 0,8Total processed 28,9 10,0Products
LPG 4,1 1,1 -3,0 0,3 -2,7Petrochem. charge: Naptha, Reformate/xylene 2,8 0,6 -2,2 2,3 0,1Gasoline 2,2 5,7 3,5 3,5Jet fuel/Kerosene 5,4 5,6 0,2 1,7 1,9Diesel 21,9 10,2 -11,7 5,0 -6,7Fuel Oil 1,1 0,9 -0,2 -0,2Asphalt 3,3 2,7 -0,6 -0,6Sulphur & other 1,8 0,5 -1,3 0,2 -1,1Coke 3,0 0,8 -2,2 0,7 -1,5
Total 45,5 28,4 -17,1 10,1 -7,0
COMPETITION # 4(Turkey consumption balance & the effect of new refinery)
55
*Expected to be completed by the end of 2018
7,1
7,1
6,9
6,1
4,8
5,0
3,4
3,5
1,9
1,7
1,9
1,7
2,4
2,8
3,4
1,1
3,6
3,2
1,8
2,6
1,4
0,8
1,3
2,0
0,5
3,6
2,5
1,72,2
1,51,1
1,6
2,5
0,7
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2019
Tüpraş Contractor Total
Tüpraş HSE KPI: Loss Time Incident Frequency and Severity Frequency Ratios
Loss Time Severity Frequency Rate (2015 Target 30) 2008 2009 2010 2011 2012 2013 2014 2015 2020
Tüpraş 92 44 40 53 65 61 59 719 20
Contractor 116 101 81 118 424 17 378 51 20
Toplam 105 73 57 83 289 26 308 315 20
Incident Frequency
loss time incident freaquency rate =number of incident *1000000/man hours
loss severity frequency rate = loss time*1000000/man hours
56
İncluding contractors
42 73
135
240
345376
398 407
0
50
100
150
200
250
300
350
400
450
2008 2009 2010 2011 2012 2013 2014 2015
57
Energy Index 119,1 99,2
Energy Saving Projects , mn$
2008 2009 2010 2011 2012 2013 2014 2015 Toplam
Tüpraş Energy consumption (TJ) 76.653 65.265 67.010 70.792 71.086 69.147 67.034 90.796 577.783
Energy-saving(TJ) 978 10.891 3.155 3.053 5.255 2.841 1.772 1.031 28.976
Energy Efficiency Project 36 52 65 92 97 40 22 21 425
Savings (mn $) 42 32 62 105 106 31 22 10 407
