Investor Presentation...Investor Presentation 2 Disclaimer Disclaimer Hizmete Özel/ Confidential Refining Market Hizmete Özel/ Confidential 30.7 81.2 67.0 55.4 31.8 18.5 29.0 10

Hizmete Özel / Confidential

Investor Presentation

June 2020


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 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.

www.tupras.com.trJun-20Investor Presentation 2

Disclaimer

Disclaimer


Refining Market


30.7

81.2

67.0

55.4

31.8

18.5

29.0

10

20

30

40

50

60

70

80

90

Jan

-16

Ap

r-1

6

Jul-

16

Oct

-16

Jan

-17

Ap

r-1

7

Jul-

17

Oct

-17

Jan

-18

Ap

r-1

8

Jul-

18

Oct

-18

Jan

-19

Ap

r-1

9

Jul-

19

Oct

-19

Jan

-20

Ap

r-2

0

Brent Crude Prices

www.tupras.com.trJun-20Investor Presentation 4Refining Market

$/bbl

+ OPEC ++ production cut+ Impact of Iran & Venezuela sanctions+ Escalating regional tension

- Concerns on global economic development- Covid-19 related demand drop- Storage capacity fill up

2016 ave.43.7 $/bbl

2017 ave.54.3 $/bbl

2018 ave.71.0 $/bbl

2019 ave.64.3 $/bbl

All waivers expired on

Iran

OPEC Production

Cut Decision

Iran Sanctions

DroneAttack to

Saudi Fields

data as of 31 May 2020

OPEC+ disagreement

OPEC++ Production Cut Decision


Global Refinery Capacity Changes


Expectations until 2024:

• ~80% of net capacity additions will come from Asia & Middle East

• Net capacity and demand in Europe will remain roughly unchanged

2.10

0.98

1.68

0.49

1.30

-0.95

0.22

-1.41

-2 -1 0 1 2 3

China

India

Middle East

Other Asia

Other

Japan

N. America

Europe

2012-2018 Net Capacity Additions by Region

2.0

0.9

1.71.3

0.9

0.2

1.97

0.89

1.93 1.96

1.50

0.51

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

2019 2020 2021 2022 2023 2024

2019-2024 Net Capacity Additions

Asia & Middle East Other Total


Middle Distillate Cracks


14.9

16.2

15.0

12.2

12.9

11.4

14.1

16.2 16.6

17.9

13.9

11.311.210.1

12.5

9.7

5.0

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10 11 12

Diesel

5yr range 2019 2020 5 yr ave

14.4 13.813.2

10.3

10.9 11.2

14.816.4

17.0 17.4

12.5

9.3

10.4

7.9

5.8

-1.7

-3.9

-10

-5

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10 11 12

Jet Fuel

5yr range 5 yr ave 2019 2020

5 yr between 2015-2019, *data as of 31 May 2020

$/bbl


Gasoline and High Sulphur Fuel Oil Cracks


$/bbl

7.7

9.8

3.32.4

3.1

1.72.9

9.0

12.1

10.09.4

14.7

12.010.6

11.0

9.9

4.3

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10 11 12

Gasoline


-22.4

-15.8

-8.4

-4.8

-7.8-7.0

-5.0 -5.5

-8.6

-11.3-9.8

-6.9

-13.4-16.9

-22.5

-31.6-32.9

-40

-30

-20

-10

0

1 2 3 4 5 6 7 8 9 10 11 12

High Sulphur Fuel Oil


5 yr between 2015-2019, *data as of 31 May 2020


Crude Price Differentials to Brent


-10

-8

-6

-4

-2

0

2

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

17

Q1

20

18

Q2

20

18

Q3

20

18

Q4

20

18

Q1

20

19

Q2

20

19

Q3

20

19

Q4

20

19

Q1

20

20

Arab Heavy

Basrah Heavy

Kirkuk

Kuwait

Ural

Average*

0

*Simple average of listed differentials

In Q1 2020, differentials widened compared to Q4 2019 on the back of higher supply against weaker demand andIMO driven feedstock shift to lighter crude


Turkish Market


Turkish Consumption 2015-2018

www.tupras.com.trJun-20Investor Presentation 10Turkish Market

Source: Tüpraş and EMRA ¹Bunker excluded

20.60

22.30

24.2023.60

2015 2016 2017 2018

DieselMillionTons

+8.5%

+8.5%

-2.4%

4.58

4.404.52

4.99

2015 2016 2017 2018

Jet Fuel

+10.4%

+2.7%-3.9%

2.10

2.23

2.302.34

2015 2016 2017 2018

Gasoline

+1.8%

+3.1%

+6.5%

0.6 0.58

0.49

0.39

2015 2016 2017 2018

Fuel Oil¹

-20.1%

-15.7%

-3.5%


Turkish Market, 12M 2019


Diesel demand contraction in H1 has been mostly off set in H2. Aviation driven jet demand has been healthy.

0.39 0.40

0.0

0.5

1.0

1.5

2018 2019

²Fuel Oil

2.34 2.42

1

2

3

2018 2019

Gasoline

4.99 5.31

2.0

3.0

4.0

5.0

6.0

2018 2019

¹Jet Fuel

25.01 24.90

0.0

10.0

20.0

30.0

2018 2019

DieselMillionTons

¹Transit flight consumption included²Bunker excluded

-0.4%+6.5%

+0.5%+3.2%


0.150.10

0.0

0.1

0.2

0.3

0.4

0.5

2019 2020

²Fuel Oil

0.52 0.55

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2019 2020

Gasoline

Turkish Market, 3M 2020


Diesel demand recovery since H2 2019 continued while jet demand started to show Covid-19 impact.

¹Transit flight consumption included²Bunker excluded

5.205.64

4.0

4.5

5.0

5.5

6.0

2019 2020

Diesel

+8.4%

1.02

0.88

0.5

0.6

0.7

0.8

0.9

1.0

1.1

2019 2020

¹Jet FuelMillionTons

-33.5%

+4.4%

-13.3%


Turkey’s Net Import / Export Balance


-3.4

2.8

-12.3

0.1

-3.0

3.0

-8.7

0.3

-16

-12

-8

-4

0

4

LPG Gasoline Diesel Jet

2016 2017 2018 2019

Export

Import

MillionTons


Company Overview


Domestic Ownership

22%

Foreign Ownership

78%

Tüpraş Shareholder Structure

www.tupras.com.trJun-20Investor Presentation 15Company Overview

¹As of December 31th,2019

Koç Holding77%

Aygaz20%

Opet3%

Ditaş79.98%

Opet40%

Körfez Ulaştırma100%

Free Float49%

Tüpraş is Turkey’s biggest industrial company and leading refiner.

Energy Investments Inc. (SPV)51%


Tüpraş’s Refining Assets & Distribution Network


İzmit

• 11.3 MT Capacity• NC: 14.5• Storage Capacity: 3.0 mn m3

İzmir

• 11.9 MT Capacity• NC: 7.66• Storage Capacity:2.5 mn m3

Kırıkkale

• 5.4 MT Capacity• NC: 6.32• Storage Capacity: 1.3 mn m3

Batman

• 1.4 MT Capacity• NC: 1.83• Storage Capacity:0.3 mn m3

Turkey‘s Storage Capacity

Tüpraş & Opet

57%

Others 43%

Railway

Iraq-Turkey Oil Pipeline

Baku-Tbilisi-Ceyhan Oil Pipeline

+ Tüpraş supplies ~55%

of Turkey’s petroleum

product needs

+ Tüpraş benefits from

an integrated system

optimization with its

high complexity,

procurement and

logistics flexibility

Total Capacity

30 mntons

Nelson Complexity

9.5

Tüpraş Storage Cap.

7 mnm3


Nelson Complexity of Refining Companies



Tüpraş Subsidiaries


OPET, Distribution, Tüpraş Share: 40%

• 1,693 stations as of 31 Mar 2020• As of February 2020 Market share: 20.1% in white products; 20.2% in

black products

DİTAŞ, Marine Transport, Tüpraş Share: 79.98%

• 3 Crude Oil Tanker: 479,765 DWT• 1 Crude Oil - Product Tanker: 51,532 DWT• 10 Product Tanker: 171,453 DWT“

Körfez Ulaştırma, Railway Transport, Tüpraş Share: 100%

• ~7% share in Turkish rail freight market• ~1.8 mn ton of product and semi-product carried in 2019.• Operates with 10 diesel locomotives and over 600 cistern wagons

Tüpraş Trading UK, Trading, Tüpraş Share: 100%

• Trading Office in London will be an important step into wider integration with the global energy landscape by allowing to:

Closely monitor international market opportunities Support import and export operations Create additional value from supply chain and sales activities


Operations


6 610

2 2 3

12

3 3 1 0 0

12 13 1310 10 10

2 0

17 1511

14 14

7

14

34

65 6763

7176

7981

55

2012 2013 2014 2015 2016 2017 2018 2019

Africa America Europe CIS Middle East

Main Crude Suppliers in 2019

Crude Suppliers of Tüpraş


In 2019, Tüpraş purchased 15 different types of crude from 8 countries with gravities ranging between 20-47 API.

Operations

Crude Oil Imports by Region (%)


Q1 Product Yields

www.tupras.com.trJun-20Investor Presentation 21Operations

LPG4%

Gasoline21%

Naphtha1%

Jet17%Gasoil

43%

Fuel Oil2%

Kok4%

Asphalt7%

Other1%

LPG Gasoline Naphtha Jet Gasoil

Fuel Oil Kok Asphalt Other

Light Distil.25%

Mid. Distil.60%

Black Prod.13%

Other white

2%

2020 Q1

White Product Yield (%) 85.7%

Production 6.0 mn tons

API 32.1

LPG4%

Gasoline20%

Naphtha2%

Jet17%

Gasoil33%

Fuel Oil15%

Kok2%

Asphalt5%Other

2%



Light Distil.26%

Mid. Distil.51%

Black Prod.21%

Other white

2%

2019 Q1



API 32.4


Annual Product Yields

www.tupras.com.trJun-20Investor Presentation 22Operations

LPG3%

Gasoline20%

Naphtha1%

Jet19%

Gasoil33%

Fuel Oil7%

Kok3%

Asphalt12%

Other2%



Light Distil.25%

Mid. Distil.52%

Black Prod.21%

Other white

2%

2018



API 31.0

LPG4%

Gasoline20%

Naphtha1%

Jet17%

Gasoil36%

Fuel Oil9%

Kok3%

Asphalt8%

Other2%



Light Distil.25%

Mid. Distil.53%

Black Prod.20%

Other White

2%

2019



API 32.0


6.76.9

7.5

6.9

6.0

Q1 Q2 Q3 Q4

Quarterly Production (Million Tons)

2016 2017 2018 2019 2020

10

1

10

1

87 91

89 91 96

87

79

4 7

9 7 4 59

9

6

105 108

96 9894 96

105

96

85

2016 2017 2018 2019 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Capacity Utilization (%)

Crude Oil Semi Product Feedstock Total

Capacity Utilization1 (%)Quarterly Production

Capacity Utilization and Quarterly Production Volume

www.tupras.com.trJun-20Investor Presentation

23

¹Capacity utilization calculation is based on 30 mn tons for Q1 2019 and onwards.

• We produced 6.0 mn tons in Q1 2020

• Capacity utilization for Q1 2020 was 85% with much higher white product yield at 86%.

Operations


Sales


24

• Tüpraş generated 29.2 million tons of total sales 2019.

Operations

Distributors46%

THY Opet5%

Jet9%

LPG3%

Other6%

Export23%

Bitumen6%

Military2%

22.2 24.8 25.7 25.622.4

6.55.5 5.8 4.2

6.8

28.7 30.3 31.5 29.8 29.2

2015 2016 2017 2018 2019

Exports

Domestic Sales

9.2 10.8 11.3 11.9 10.4

4.84.5 4.5 4.9

4.32.0

2.2 2.2 2.22.3

2.93.4 3.5 2.9

1.8

2015 2016 2017 2018 2019

Bitumen

Gasoline

Jet Fuel

Diesel

Total Sales

Domestic Sales of Key Products

Customer Groups 2019mn tons

mn tons

Sales to Distributors

2019

13.3 mn tons

Total Sales, 2019

29.2 mn tons

POAŞ27%

OPET31%

SHELL19%

BP13%

OTHER10%


Key FinancialsFinancials


Refining Margin


2.53.2

6.56.0

8.1

9.3

3.7

1.21.7

1.9

4.84.0

5.34.6

1.7 1.8

2013 2014 2015 2016 2017 2018 2019 2020-Q1

Tüpraş Net Margin MediterraneanPremium to the benchmark Mediterranean

peers’ refining margin due to:

• Ability to use heavier and sour crudes with higher

complexity

• Access to a wide range of cheaper sources of crude

oil

• Close proximity to major suppliers reduces

transport costs

• Lower cost basis and more efficient energy usage

• Ability to produce a broad range of refined products

with higher value added

• Direct pipeline connections with domestic clients

5.5

2.02.9

1.2

4.2

1.7 2.0

4.84.0

5.4 4.6

1.7 1.8

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Med Complex

Month Annual

Financials

$/bbl

$/bbl


Tüpraş and Med Refining Margins

www.tupras.com.trJun-20Investor Presentation 27Financials

($/bbl)Gross

MarginInventory

EffectClean Gross

MarginClean NET

MarginNet

MarginMed Margin

2019 Q1 9.9 0.8 9.0 3.2 4.2 3.6

2019 12M 9.2 0.1 9.1 3.6 3.7 1.7

2020 Q1 7.1 -2.7 9.8 3.9 1.2 1.8

8.1

9.3

3.74.2

1.2

5.34.6

1.7

3.6

1.8

2017 12M 2018 12M 2019 12M 2019 Q1 2020 Q1

Margins

Tüpraş Net Margin Med Margin


Income Statement


28

*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.

Financials

Tüpraş generated 725 MTL EBITDA CSS in Q1 2020.

Million TLQ1 Q1

%2020 2019

Net Sales 16,940 20,708 -18%

COGS -17,849 -19,717 9%

Gross Profit -909 991 -192%

Operating Expenses -458 -373 -23%

Income/Loss from other operations -349 -390 10%

Operating Profit -1,716 228 -852%

Income/Loss from equity investment -168 63 -368%

Operating Profit Before Fin. Income/Loss -1,885 291 -747%

Financial Income /Expense -913 -601 -52%

Profit Before Tax -2,798 -310 -802%

Net Profit (excluding minority interest) -2,265 -375 -504%

EBITDA *(mn.TL) -1,291 851 -252%

Inventory Gain/Loss -2,016 301 -770%

EBITDA* (mn. TL) CCS 725 550 32%


Financial Highlights


1.8

1.1

1.3 2.1

6.4

1.11.2

1.31.0 0.9

2.1

1.21.9 2.2

3.0

2016 2017 2018 2019 Q1 2020

Current Ratio & Net Debt / R. EBITDA

Net Debt / R. EBITDA

Current Ratio

Net Debt / R. EBITDA CSS

3351,575 1,033 851

-1,291

688

1,542 2,2101,495867

1,5283,778

9561,505

1,237

1,887

7383,396

5,882

8,908

4,039

-1,291

2016 2017 2018 2019 2020

EBITDA (mn TL)Q1 Q2 Q3 Q4

79869 378

-375

-2,265

331

1,4571,027

870581

992

542

-155

803

4931,766

186

1,793

3,812 3,713

526

-2,265

2016 2017 2018 2019 2020

Net Income¹ (mn TL)

Q1 Q2 Q3 Q4

22%

41%37%

5%

-12%

2016 2017 2018 2019 Q1 2020

Return on Average Equity²

1) Excluding minority interest 2) Calculation based on rolling net income


Balance Sheet Analysis


-0.2

2.1

4.7

1.6

-0.7

-2.3-3.6

-2.0

Dec-16 Dec-17 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20

Working Capital Requirement (Billion TL)

6.1 6.2

12.010.6 10.1

8.7 8.4

12.2

1.7 1.7

2.31.9 1.8 1.5 1.4

1.9

0

1

2

3

4

5

0

3

6

9

12

15

Dec-16 Dec-17 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20

Net DebtIn Billion TL In Billion $

Proactive Financial Management

• Net debt increased due to lower working capital contribution and TL depreciation

• Dynamic liquidity management ensures optimal cash and receivables management

8.1

6.5

1.8 1.7

4.8

0.2

1 year 1-2 years 2-3 years 3-4 years 4-5 years Over 5 years

Redemption Schedule (Billion TL)

TL Hard Currency

bn $


Decline in Profit Before Tax was driven by inventory loss due to sharp drop in Brent Price.

Q1 Profit Before Tax Bridge (2019-2020)


Million TL

Financials


Annual Profit Before Tax Bridge (2018-2019)


2019 PBT was lower mainly due to narrow differentials, weaker crack margins and natural gas price hikes.

Million TL

Financials


Dividend (TL)


3.2 2.9

5.05.8

4.85.8

10.2

7.2

15.2 14.8

2.12.5 3.03.9 3.9

1.6

6.5 6.2

13.615.2

0.0

77%

101%

79%

66%

33%

0%

64%

87%89%

102%

0%

0%

40%

80%

120%

0

2

4

6

8

10

12

14

16

18

20

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

EPS DPS Dividend Payout

Financials


Investments (Million $)


274355

400

186 177

628

974

1213

959

344

213 185138 157 29

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Q1

Ongoing Projects

• Revamp of Crude Units

• FCC Modernization

• New Sulphur Units

• Energy Saving Projects

• Optimization of conversion

units

• c6.7 bn USD investments since privatization

• Reached 9.5 Nelson Complexity

• Capability to process heavier and more sour crude

Avg. 278 Mn$

Avg. 943 Mn$

Avg. 207 Mn$

Financials


Q1 2020 Results


1.2

1.8

0 1 2 3 4 5

Q1

20

20

Refining Margins ($/bbl)

Med Margin Tüpraş Net Margin

84.6 % total capacity utilization in Q1 2020

6.0 6.224 25

Production Sales

OperationalsQ1 FY Target

6.2 mn tons of sales and 6.0 m tons of production in Q1 2020

29

125

Q1 2020 Target

Refining Capex (mn $)

29 mn$ refining CAPEX in Q1 2020

84.6

0 20 40 60 80 100

Q12020

Capacity Utilization (%)

1.2 $/bbl net refining margin in Q1 2020

Med FY Exp

Tüpraş FY Target


Tüpraş Balance Sheet (Million TL)


31.03.2020 31.12.2019 Diff. Diff. (%)Current Assets 22,939 27,919 -4,980 -18

Cash & C. Equivalents 10,995 10,652 343 3

Trade Receivables 4,423 4,788 -365 -8

Derivatives 756 304 452 149

Inventories 5,300 9,469 -4,168 -44

Pre-paid expenses 97 237 -140 -59

Other Current Assets 1,368 2,470 -1,102 -45

Long Term Assets 28,018 27,593 425 2

Financial Assets & Subsidiaries 1,084 1,363 -279 -20

Fixed Assets 20,752 20,587 164 1


Pre-paid expenses 172 199 -27 -13

Deferred Tax 4,341 3,768 573 15

Other Long Term Assets 1,565 1,578 -13 -1

Total Assets 50,956 55,512 -4,555 -8Short Term Liabilities 24,707 28,120 -3,413 -12

Financial Loans 8,076 5,178 2,899 56

Trade Payables 11,704 17,816 -6,112 -34


Provisions 178 117 61 52

Other ST Liabilities 4,517 4,930 -413 -8

Long Term Liabilities 15,458 14,255 1,203 8

Financial Loans 15,102 13,898 1,204 9

Payables & Provisions 315 316 -1 0


Other LT Liabilities 9 9 1 6

Total equity attributable to equity holders of the parent 10,615 12,963 -2,348 -18

Minority Interests 176 174 3 2

Total Liabilities & Equity 50,956 55,512 -4,555 -8


Foreign Currency Long Term

Tüpraş BB- (Negative) B1 (Negative)

Turkey BB- (Stable) B1 (Negative) B+ (Stable)

Koç Holding B1 (Negative) BB- (Stable)

Leading Corporate Governance Score


92.6

99.5

95.3

95.5

95.0

0 25 50 75 100

Board

Stakeholders

Transparency

Shareholders

Overall

Tüpraş BIST Corporate Governance Rating Score

Source: Bloomberg

35%

54%

11%

Buy

Hold

Sell

Analyst Recommendations

Credit Rating Scores

Source: SAHA Corporate Governance and Rating Services Inc. (October 2019)

Financials


Proactive in liquidity risk management & targets/limits for financial ratios:

• Net financial debt/EBITDA

• Net financial debt/Equity

Financial Policy

www.tupras.com.trJun-20Inestor Presentation 38

Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty risk, commodity, interest rate and currency exposure.

Leverage & Liquidity

• 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.

Counterparty Risk Policy

• The fixed/floating profile of financial debt.

• Proactive management of FX risk with derivative instruments

• Zero FX exposure target.

Interest Rate & Fx

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.• Hedge ratio between %0-%50 with up to 1 year hedge tenor

CommodityHedging

Policy

Financials


FX Exposure Management (31 Mar 2020)


• 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.

Tüpraş continues to employ strict FX policies to mitigate currency risks stemming from volatility.

Financials

Cash

681

Forward 1,327CFH 753

Stock826

Receivables & Other Assets

94

Payables & OtherLiabilities

981

ST Financial Loans729

• RUP: 204• Other: 525

LT Financial Loans1,874

• RUP: 575• Eurobond: 700• Other Loans: 599

Consolidated Hard Currency Assets

Consolidated Hard Currency Liabilities

Million $

+97 mn $


Appendix


2020 Refinery Maintenance Schedule

www.tupras.com.trJun-20Investor Presentation 41Appendix

Refinery Unit Quarter Duration (weeks) Status

Batman Plt 100/1100 Crude Oil & Vacuum Q1 10-12 Completed

İzmir

U-100 Crude Q1 9* Completed

U-4000 FCC Q4 6

U-9200 CCR Q1 3 Completed

U-9200 CCR Q4 7 Postponed to 2021

U-9600 Isomerization Q4 8 Postponed to 2021

U-9900 MQD Q4 7 Postponed to 2021

İzmit Plt-6 Desulphurizer Q4 4 Postponed to 2021

Kırıkkale

* This activity had started in Q4-19. Duration figure indicates the portion carried out in 2020


2020 Expectations(*)


• Ural-Brent differential widening compared to 2019

• Weak outlook for Jet fuel and gasoline

Med Complex Refining Margin 1.0-2.0 $/bbl

• Weak outlook for jet fuel and gasoline cracks

• Resilient diesel and strong HSFO cracks

• Heavy crude differentials to widen

• ~24 mt production, ~25mt sales and 80 - 85% capacity utilization

Tüpraş Net Refining Margin 3.0-4.0 $/bbl

• Sulphur treatment units, improvement in storage units

Refining Capex ~125 million $

* During preparation of the revised 2020 expectations, it has been assumed that Covid-19's negative impact on crude oil and petroleum products demand will began to decrease by June and normal economic activity will resume starting from August.


Competition - STAR Refinery

www.tupras.com.tr 43Jun-20Investor Presentation

• Feasibility studies began in 2010 and construction kicked off in 2011

• Goldman Sachs has acquired a 13% stake in SOCAR Turkey for $1.3 billion.

• Total investment size 6.3 bn USD, with 3.3 bn USD credit agreement.

• Following the completion of construction late 2018, reached full capacity utilization in August 2019

Turkish Market Structure (mn tons)Timeline

Turkey Demand

Tüpraş STAR TotalTurkishMarket

DemandBalance

LPG 1.1 0.3 1.4 4.1 -2.7

Petchem F. 0.2 2.6 2.8

Gasoline 6.1 6.1 2.4 3.7

Jet Fuel 5.2 1.6 6.8 5.2 1.6

Diesel 10.7 4.5 15.2 26.5 -11.3

Fuel Oil 1.8 1.8 1.3 0.5

Bitumen 3.1 3.1 3.1

Pet coke 0.8 0.7 1.5 4.6 -3.1

Total ~30 ~10 ~40

Appendix


Competition - Regional Competition

www.tupras.com.tr 44Jun-20Investor Presentation

• Tüpraş competes 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 flows

17 Refineries ~1.8mbd

Mediterranean Black Sea

54 Refineries ~7.8mbd

Appendix


IMO 2020: Changes in Bunker Specification and Its Effects


Current compliant fuels

Cu

rren

t O

utl

oo

kB

eyo

nd

20

20

Demand shift beyond 2020

HSFO replacement expectations

Long term outlook for marine fuels

• Marine Gasoil (Diesel): Easiest solution as it is already available

• Very Low Sulphur Fuel Oil (VLSFO): Either through FCC with sweet crudes or by blending

• Scrubbers: As of 28/02/20, ~3.4K vessels are either fitted or scheduled to be fitted and ~0.6K vessels are on order book to be delivered with scrubbers

• LNG: requires significant investments at ports

0

1

2

3

4

5

6

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Compliant HSFO Non-compliant HSFO VLSFO MGO LNG

• VLSFO is the initial choice, followed by MGO• Fuel choice might change through the years as

availability & compatibility issues get resolved• Compliant HSFO use grows as scrubber numbers rise

from ~2K after Jan 1st, 2020 (some ports started bans on open-loop scrubbers thus this projection might change)

Source: Market Reports

Appendix


Tüpraş Production Flow and Yield Breakdown


• Tüpraş has 30 million tons of production capacity

• Tüpraş operates 4 refineries with an integrated system optimization program

Appendix

Key Units# of

UnitsCapacity(m3/d)

CRUDE OIL 8 99,420

VACUUM DIST. 8 42,752

HYDROCRACKER 4 18,032

ISOMERATION 3 7,804

UNIFINER REFORMER

5 16,225

KERO/DIESEL (HDS)

9 37,265

FCC 2 4,650

COKER 1 9000

NAPHTASPLITTER

8

LPG MEROX 6

Flow Diagram

LPG MEROX

NAPHTHASPLITTER

ISOMER.

VACUUMDIST.

UNIFINERREFORMER

KERO/DIESEL (HDS)

FCC

HYDROCRACKER

COKER

Bitumen

Lube Oil

FCCGasolineHDS

BenzenSaturation

Multiple distillation

and production

units

Other, 3.8%

Bitumen & Fuel Oil, 19.9%

Lube Oil, 0.5%

Diesel,

33.9%

Jet Fueloil, 16.5%

GasolineNaphtha,

22.0%

LPG, 3.5%


RUP Feedstock and Production


• Residuum Upgrade Plant (RUP) was completed in 2015 and it is the main conversion unit of Tüpraş.

• First periodic maintenance was completed in Q2 2019.

Total Output ~4.25mn tonsTotal Processing ~4.50 mn tons

Appendix


European Pump Price Comparison


2.833.93

2.373.02

3.562.79

3.722.73

0.70

0.00

0.870.54

0.000.96

0.000.95

3.45

4.55 5.696.14 5.86

6.15 6.64 6.60

0

2

4

6

8

10

12

TR Spa. Ger UK Eu19 Fra. Gre. Ita.

Gasoline (TL/Lt)

Refinery Price Dist. Margin Tax

3.174.10

2.893.94

4.52

3.02 3.05 3.18

0.760.00

0.910.00

0.00

0.92 0.80 0.73

2.58

3.85 4.374.78

4.49 5.55 5.756.21

0

2

4

6

8

10

12

TR Spa. Ger. EU19 Gre. Fra. Ita. UK

Diesel (TL/Lt)

Refinery Price Dist. Margin Tax

European prices as of 16th December - Turkeys prices as of 24th December 2019

Turkish fuel prices are highly competitive with other European countries.

Appendix


Tüpraş - ESG - Over a Decade of Dedication


Tüpraş kicked off its sustainability

program back in 2008 and achieved

many milestones in a decade

~480 energy efficiency

projects leading to

~35,000 TJ saving and

2.4 mt CO2 reduction

31%increase in solid waste recovery

20 points drop in Energy

Intensity

36% decrease in fresh

water usage

~205 MTL donations and sponsorships

75% increase in female

employee numbers

~1mn workhours dedicated to

OHS training

+1.3 points increase in Corporate

Governance rating

17% female representation in senior and mid-level

management

See our Sustainability Report for details


Tüpraş - ESG - 2018 Achievements

www.tupras.com.tr 50

• Kırıkkale Refinery won the first place, İzmit Refinery the second and Batman Refinery the third in the Industrial Energy Efficiency Project Competition.

• İzmit Refinery won the first prize in the Sustainable Business Awards - Water Management Category.

• Achieved 69.5% water recycle ratio

• Achieved 88.6% solid waste recovery

Environmental Responsibility

• Signed agreement to supportHeForShe (Global cooperation with UN Women and FenerbahçeSports Club)

• 62% of ex-crude procurement activities were conducted through local businesses.

Social Support

• 9.50 Corporate Governance Rating

• 13% Female Representation at the Board,

• 17% Female Representation in Upper and Mid-Level Management.

Governance Excellence

AppendixJun-20Investor Presentation


Koç Holding

www.tupras.com.tr 51

• Koç Holding is Turkey’s largest industrial and services group in terms of revenues, exports, employees, taxes paid and market capitalization

• The only Turkish company in Fortuna 5001.• 26% CAGR in consolidated profit2 the last five years

Turkey’s Leading Investment Holding Company

• Leading positions with clear competitive advantages in sectors with long-term growth potential such as energy, automotive, consumer durables and finance.

Pioneer in its Sectors

8%

Combined Revenues /

GDP

9%

Total Exports / Turkey’s Exports

15%

Total Market Cap in Borsa

Istanbul

Notes : Data as of YE19(1) 2019 Report (based on consolidated revenues)(2) In TL terms between 2015-19

AppendixJun-20Investor Presentation


Investor Presentation

Latest Webcast

Sustainability Report

contact us: [email protected]

Documents

Investor Presentation...Investor Presentation 2 Disclaimer Disclaimer Hizmete Özel/ Confidential Refining Market Hizmete Özel/ Confidential 30.7 81.2 67.0 55.4 31.8 18.5 29.0 10