#1TURKISH AIRLINES STAR ALLIANCE MEMBER 2022 Results Investor Presentation TURKISH AIRLINES &#2KEY TAKEAWAYS 1. SUMMARY OF 2022 TURKISH AIRLINES A STAR ALLIANCE MEMBER 3. 4. STRATEGY AND TARGETS 2. 2022 OPERATIONAL HIGHLIGHTS 2022 FINANCIAL HIGHLIGHTS 2#3TURKISH AIRLINES A STAR ALLIANCE MEMBER Total Revenues 39% higher revenue achieved in 2022 compared to 2019. Passenger Revenue Passenger revenue surpassed 2019 levels by 28% as demand gained momentum. Cargo Revenue Cargo revenue more than doubled in 2022 compared to 2019. Cash & Liquidity Liquidity remains strong with ~4.7 bn USD Cash & Eqv. Ex-Fuel CASK Ex-Fuel unit cost decreased by 2% in 2022 compared to 2019. mn USD 13,229 mn USD mn USD 18,426 14,291 11,167 1,688 Cololololola Colclo 3,735 2019 2022 2019 2022 2019 2022 mn USD USC 31 Dec. 2022 4,701 4.67 4.58 31 Dec. 2021 2,682 2019 2022#4Turkish Airlines offered the highest seat capacity in the world among the network carriers International Seat Capacity Ranking¹ (2022) Top 10 Airports in Europe² (2022) Turkish Airlines Emirates Lufthansa Qatar American British Air France United Delta KLM 25.2 24.0 1 Source: OAG. 35.7 34.2 33.2 43.8 41.1 40.7 Ranked 3rd 2 57.9 in 2019 with 54.1 mn. Istanbul (IST) 54.9 London (LHR) Paris (CDG) Amsterdam Madrid Barcelona London (LGW) 32.8 Munich Antalya 31.6 31.2 41.6 52.5 50.6 57.5 Ranked 3rd 64.3 in 2019 with 68.5 mn. 61.6 Turkish Airlines climbed to 1st place in 2022 from 3rd place in 2019 among the global network carriers. 2In terms of Passenger Volume (thousand). Source: ACI Europe. Turkish Airlines' main hub, Istanbul Airport was Europe's busiest airport in 2022. TURKISH AIRLINES A STAR ALLIANCE MEMBER 4#5We have one of the lowest cost base compared to our peers. During the pandemic, we continued to invest in our fleet and workforce while preserving our unit cost advantage. Ex-Fuel CASK (USC) 2022 Network Airlines Average 8.2 Usc* 2019 2022 Doing so allowed us to capitalize on surging passenger demand and capture significant market share profitably. 8.0 7.4 7.3 7.2 -43% 6.9 6.7 6.5 6.3 5.4 4.7 4.6 9.4 9.5 11.4 (vs. 2019) Turkish Airlines IAG AF-KLM United American Delta Lufthansa G.2 Passenger Capacity (ASK¹) 7% -22% -15% -13% -9% -15% -30% Number of Aircraft -11% -7% -6% -2% -6% -1% -6% Number of Personnel 4% -10% -13% -3% -3% 1% -22% TURKISH AIRLINES A STAR ALLIANCE MEMBER 1ASK: Available Seat Kilometers 2LTM 9M'22 data for Lufthansa Group Source: Company reports. LO 5#6Outperformance of pre-pandemic levels is clearly visible across the board 47.1 Passenger Capacity (ASK bn) 7.9% 18.6 50.8 38.7 39.6 Passenger Demand (RPK bn) 9.3% 11.9 27.9 42.3 4Q'19 4Q'20 4Q'21 4Q'22 4Q'19 4Q'20 4Q'21 4Q'22 Total Revenue (mn USD) 45.4% 4,772 3,281 3,309 1,772 Profit from Main Operations (mn USD) 336 112 102% 619 678 4Q'19 4Q'20 4Q'21 4Q'22 4Q'19 4Q'20 4Q'21 4Q'22 TURKISH AIRLINES A STAR ALLIANCE MEMBER As passenger demand exceeded capacity, passenger Load Factor increased by 1.2 points. Total Revenue surpassed 4Q'19 by 45% owing to robust passenger and resilient cargo demand. Profitability in the fourth quarter recorded well above pre-pandemic levels. 6#71. SUMMARY OF 2022 TURKISH AIRLINES A STAR ALLIANCE MEMBER 2. 3. 4. 2022 OPERATIONAL HIGHLIGHTS 2022 FINANCIAL HIGHLIGHTS STRATEGY AND TARGETS 7#8Capacity Management In the fourth quarter, we surpassed 2019 ASK by 8% and LF by 1.2 pp. Number direct international passengers to Türkiye carried by Turkish Airlines was materially above 2019 level. 85.9% 83.4% 79.7% 80.6% 71.5% 70.4% 70.2% Full recovery level 112% 116% 108% 107% 93% 90% 81% 84% 91% 82% 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 I 2022 3Q'21 4Q'21 ASK1 % of 2019 Passenger Load Factor (%) 1ASK: Available Seat Kilometers 1Q'22 ■2019 Direct int'l PAX in % 36% 22% 23% 20% I 2Q'22 3Q'22 4Q'22 2022 I Exceeding 2019 direct int'l PAX International ASK (% of 2019) 115% 119% 109% 110% 93% 83% 78% 81% 82% 84% 80% 71% 66% 55% Pace of our international capacity ramp up was considerably higher than the European and Global averages. 54% 73% 69% 64% 65% 28% 53% 45% 23% 25% 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 | 2022 Turkish Airlines IATA IATA - European Airlines TURKISH AIRLINES A STAR ALLIANCE MEMBER Source: IATA 8#9Passenger Traffic Recovery 2022/2019 TURKISH AIRLINES A STAR ALLIANCE MEMBER 2022 L/F 84% 81% Far East 78% Full Recovery Europe Middle East Africa North America South America 75% 70% 80% 90% 100% 110% 120% 130% 140% 2022 ASK of 2019 150% 160% 170% 180% 190% Note: The scale of the bubble represents the portion of the regions' ASK contribution in 2022. Passenger Sales (7 day moving average in USD) 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 2019 1-Jul 1-Aug 1-Sep -2022 1-Oct 1-Sep 1-Dec 31-Dec Passenger sales remain well above 2019 level in 2022. 9#10Segment Performance Revenue by Business Type (2022/2019) Other Cargo Technic 2022: 2.0% 2019: 2.3% 2022: 0.8% 2019: 1.0% 20.3% 12.8% Passenger Revenue Evolution (mn USD) 10,918 11,167 9,403 6,390 3,792 14,291 2019 83.9% 77.0% Passenger 2017 2018 2019 2020 2021 2022 2022 Cargo Revenue Evolution (mn USD) 2,722 4,015 3,735 THY Cargo Market Share (FTK) 5.2% 5.2% 4.7% 3.7% 3.0% 2.5% 2.0% 1.5% 1.7% 1.7% 1.3% 1,647 1,688 1,317 9.1 8.2 7.0 7.1 5.6 4.5 3.4 1.8 2.2 2.6 2.7 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 THY FTK (bn.) 2017 2018 2019 2020 2021 2022 THY Cargo Market Share (FTK) TURKISH AIRLINES A STAR ALLIANCE MEMBER Source: IATA Economic Performance of the Airline Industry Reports 10#111. SUMMARY OF 2022 TURKISH AIRLINES A STAR ALLIANCE MEMBER 2. 3. 4. 2022 OPERATIONAL HIGHLIGHTS 2022 FINANCIAL HIGHLIGHTS STRATEGY AND TARGETS 11#12Liquidity Management & Leverage We have 4.7 bn USD liquidity as of the end of December 2022. 2,682 -1,044 +6,011 Net Cash Flow from Investing Activities Cash Flow from Operating Activities -2,948 Cash Flow from Financing Activities 4,701 31 Dec. 2021 Cash and Cash Eqv. & Financial Investments (mn USD) 31 Dec. 2022 Net Debt (mn USD) 6 bn USD Net Operating Cashflow 11.6 8.7 31 December 2021 31 December 2022 TURKISH AIRLINES A STAR ALLIANCE MEMBER Net Debt to EBITDA 9.5x 3.9x 3.4x 3.0x 3.1x 1.8x 2017 2018 2019 2020 2021 2022 2023 2024 1 Net Debt Total Debt - (Cash & Cash eq. + Short-term Financial Investments + Short-term PDP Receivables + Restricted Cash) Operational cash generation ability accelerated deleveraging. Net debt decreased by 5.4 billion USD from its peak at the end of 2020. Year end Net Debt to EBITDA decreased to 1.8x, lower than pre-pandemic level. 12#13Financial and Operational Data 4Q'19 4Q'22 Change (USD mn) 2019 2022 Change 3,281 4,772 45.4% Total Revenues 13,229 18,426 39.3% 2,708 3,843 41.9% Passenger Revenue 11,167 14,291 28.0% 471 814 72.8% Cargo Revenue 1,688 3,735 121.3% 77 102 32.5% Technic Revenue 305 367 20.3% 137 615 348.9% Net Operating Profit / Loss 585 2,716 364.3% 336 678 101.8% Profit From Main Operations 876 2,779 336 473 40.8% Net Income 788 2,725 10.2% 9.9% -0.3 pt Net Income Margin 6.0% 14.8% 892 1,395 56.3% EBITDAR 3,107 5,377 217.2% 245.8% 8.8 pt 73.1% 27.2% 29.2% 2.0 pt EBITDAR Margin 23.5% 29.2% 5.7 pt 47,093 50,801 7.9% ASK (Million) 187,713 201,735 7.5% 5.92 8.16 7.00 9.07 37.7% 29.7% RASK2 (incl. ACTK)* 6.06 7.92 30.6% Revenue Yield (R/Y) (Usc) 7.29 8.79 20.5% 17,866 17,930 0.4% Passengers Carried ('000) 74,283 71,818 -3.3% 82.2% 83.4% 1.2 pt L/F (%) 81.6% 80.6% -1.0 pt RASK2 (incl. ACTK)*: Total Passenger and Cargo Revenue / ASK2 (Adjusted ASK by available cargo tonne kilometer) ASK: Available Seat Kilometers Revenue Yield (R/Y): Total Passenger Revenue / RPK RPK: Revenue Passenger Kilometers TURKISH AIRLINES A STAR ALLIANCE MEMBER Total revenues exceeded 2019 levels in 2022 by 39%. Cargo revenues in 2022 more than doubled compared to 2019. Profit From Main Operations reached to 2.8 billion USD in 2022. EBITDAR Margin in 2022 recorded well above 2019 with 29%. 13#14Unit Expenses 4Q'19 4Q'22 Change (USC) 2019 2022 Change 2.07 3.11 50.5% Fuel 2.06 3.21 55.4% 1.00 1.31 30.1% Personnel 1.10 1.06 -3.7% 0.97 1.04 7.3% Aircraft Ownership¹ 0.98 1.00 2.6% 0.65 0.60 -7.9% Airports & Air Navigation 0.63 0.61 -2.4% 0.52 0.54 4.5% Sales & Marketing 0.59 0.51 -12.4% 0.43 0.46 5.9% Ground Handling 0.43 0.46 6.3% 0.32 0.36 14.3% Passenger Services & Catering 0.33 0.31 -7.5% 0.49 0.54 10.8% Maintenance 0.42 0.43 1.8% 0.23 0.22 -2.9% Other 0.20 0.20 0.9% 6.68 8.18 22.6% CASK 6.74 7.79 15.6% 4.61 5.07 10.0% Ex-Fuel CASK 4.67 4.58 -1.9% 5.86 7.28 24.3% CASK2 (incl. ACTK)² 5.96 6.90 15.7% 4.04 4.51 11.6% Ex-Fuel CASK2 (incl. ACTK)² 4.14 4.06 -1.9% 1includes Depreciation and Aircraft Rent expenses. CASK: Total Expenses / ASK Ex-Fuel CASK: (Total Expenses - Fuel Expenses) / ASK (Available Seat Kilometers) CASK2: Total Expenses / ASK2* Ex-Fuel CASK2: (Total Expenses - Fuel Expenses) / ASK2 (Adjusted ASK by available cargo tonne kilometer) TURKISH AIRLINES A STAR ALLIANCE MEMBER Continuing focus on transformation in order to reinforce cost discipline. Enhancing capabilities of digital sales channels to save on distribution costs. Aiming a lean organizational structure and downsizing. Optimizing marketing expenses by focusing on tactical campaigns. 14#151. SUMMARY OF 2022 TURKISH AIRLINES A STAR ALLIANCE MEMBER 2. 3. 4. 2022 OPERATIONAL HIGHLIGHTS 2022 FINANCIAL HIGHLIGHTS STRATEGY AND TARGETS 15#16AnadoluJet's international capacity share increased by 51 p.p. since 2019 ANADOLUJET 2019 2021 2022 Number of Aircraft 31 Number of Routes 53 53 64 129 168 180 International Capacity 13.3% 51.7% 64.5% Share (%) Int'l Market Share in Hub 18% 25% 24% (Ist. SAW Airport) Number of Passenger (mn) 14.6 13.3 16.1 Capacity¹ 11.2 16.7 21.7 A TRADEMARK OF TURKISH AIRLINES In 2022, AnadoluJet operated in 180 routes with 64 aircraft. 70% of AnadoluJet's international destinations are in Europe and 30% in the Middle East. AnadoluJet is targeting to: Drive down unit costs further with 15 new generation aircraft additions in 2023. Increase penetration to high growth leisure markets through direct international flights. Capture ethnic travel segment from Europe, Middle East and Central Asia to Türkiye. Load Factor 87.5% 74.2% 82.9% Reach price sensitive customers. TURKISH AIRLINES ¹In terms of billion Available Seat Kilometers (ASK). A STAR ALLIANCE MEMBER Extract ancillary revenue potential by merchandising and bundling. 16#172023 Expectations and Mid-term Priorities Passenger Capacity: 10-20% higher than 2022 Costs: Low single digit increase in Ex-fuel CASK compared to 2022 CapEx: Priorities Sustaining our low unit costs Continued focus on deleveraging and keeping liquidity at comfortable levels Targeting new organic growth opportunities Around 5-5.5 bn USD gross CapEx in 2023 including aircraft, engines and other investments |.||| Investing in increased connectivity Fleet: 394 as of 2022 year-end Total of 33 net additions expected in 2023 New int'l. routes in 2022: Extract ancillary revenue potentials to enhance top line growth Network: Seattle Bergamo 342 Cebu Juba destinations TURKISH CARGO TURKISH AIRLINES Bukhara Tivat Turkmenbashi Kirkuk in 129 countries TURKISH AIRLINES A STAR ALLIANCE MEMBER 17#18Sustainability Most Material Issues Flight Safety and Flight Security Climate Change Employee Health & Safety and Wellbeing Changing Customer Expectations & Behaviour Digitalization Business Continuity Talent Management Waste Management Highly Material Issues Support for the Social Development Fair Competition Water Management Single Use Plastic Sustainable Catering Noise Management Responsible Supply Chain Management Innovation EnVA REGISTERED IATA STAGE 2 ENVIRONMENTAL BORSA İSTANBUL SUSTAINABILITY D AIRLINE ASSESSMENT CERTIFIED ISO 14001:2015 COMPANY LEADERSHIP IN ENERGY L ENVIRONMENT LEED CERTIFIED L DESIGN Comission CORSIA united ZERO WASTE for wildlife Participating in the performance evaluations of international sustainability indices: REFINITIV F WCDP₂ Dow Jones Sustainability Indexes SILVER S&P Global Sustainable 1 2023 ecovadis MSCI SUSTAINALYTICS Sustainability Rating FTSE4Good TURKISH AIRLINES A STAR ALLIANCE MEMBER You can find our Sustainability Reports in the Investor Relations homepage. 2022 Developments In 2022: Saved Fuel: 57,581 tons Avoided Emissions: 181,379 tons of CO2 Fleet Age: 8.7 years (47 LACP -2018- SPOTLIGHT LACP =2018- AWARDS SPOTLIGHT AWARDS GOLD WINNER TOP 100 WORLDWIDE <<Gold Award Winner in the Sustainability Report Category & one of the Top 100 Winners>> CAPA CENTRE FOR AVIATION <<Airline Sustainability Innovation of the Year>> 18#19TURKISH AIRLINES SOCIAL CORPORATE GOVERNANCE WE SUPPORT UN GLOR COMPACT UN Global Compact We commited to the voluntary initiative to implement universal sustainability principles and to take steps to support UN goals. 25 by 2025 <<IATA 25by2025>> We are part of the 25by2025, a voluntary campaign for IATA member airlines to improve female representation in the industry by 25%, or up to a minimum of 25% by 2025 Global SAF Declaration Our Incorporation underlined the importance it attaches to the subject by signing the Global SAF Declaration. Participated Programs & Initiatives TURKISH AIRLINES A STAR ALLIANCE MEMBER ENVIRONMENT BIO Biofuel Usage We started using a sustainable aviation fuel mixture in our Paris, Oslo, Gothenburg, Copenhagen, London, Arlanda, Brussels and Lyon flights. In addition to these, we use sustainable aviation fuel in return flights returning from Lyon, Marseilles, Oslo, Strasbourg and Toulouse to Istanbul Airport. Additionally, we continue our collobration on the "Microalgae Based Sustainable Bio-Jet Fuel Project (MICRO-JET)"with Boğaziçi University. CDP Carbon Disclosure Project (CDP) Climate Change Program Our Incorporation's CDP Climate Change score increased to "B" in 2022 placing us ahead of the sector average of 'B-'. REGISTERED JATA STAGE 2 ED AIRLINE ASSESSMENT ENVIRONMENTAL A CERTIFIED ISO 14001:2015 COMPANY IATA Environmental Assesment We achieve the highest-level certificate in IATA's IEnvA System and became the "First airline to directly obtain the Stage 2 Certificate". ISO 14001 Environmental Management System#20TURKISH AIRLINES INVESTOR RELATIONS Tel: +90 (212) 463 63 63 ex.12187 e-mail: [email protected]#21DISCLAIMER Türk Hava Yolları A.O. (the "Incorporation" or "Turkish Airlines") has prepared this presentation for the sole purpose of providing information about its business, operations, operational and financial results. The information in this presentation is subject to updating, revision and amendment. This presentation is not, and does not support to be comprehensive and to contain all information related to Turkish Airlines. 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