#1$ $ TURKCELL INVESTOR PRESENTATION May 2020#2STRATEGIC FOCUS AREAS & 3-YEAR PLAN Investor Presentation 2#3Well-Positioned to Create More Value STRATEGIC FOCUS AREAS CORE Investor Presentation Digital Services Digital Business Solutions Techfin Services sim TV+ Fizy COMPETENCIES Strong Bond With Customers digital business services Telecom Services 10000- 000000 State-of-the-art Infrastructure 8 Advanced Analytics & Technology PAYCELL VISA PAY CELL financell Strong & Agile Team 3#4Investor Presentation Strategic Focus Areas TURKCELL GROW IN TELECOM SERVICES Enlarge subscriber base with dedicated focus on postpaid segment Grow in fixed broadband through fiber and FWA Sim TV+ Fizy MONETIZE DIGITAL SERVICES Leverage continued demand Ensure standalone growth digital PAYCELL VISA 40.00 PAY CELL business services LEVERAGE DIGITAL BUSINESS SOLUTIONS Boost overall corporate business with multiplay focus Provide end-to-end IT solutions for corporates 130.00 60.00 LEAD TECHFIN SERVICES Reach wider customer base with complete portfolio of solutions Reach out to long tail of 1.6Mn+ merchants in Turkey Utilize the digital channel for acquisition, device sales and growth +1 Million Subscribers/year in Turkey Expand globally 2.5x Standalone revenue growth in 3 years Trusted partner of corporates through their digital transformation Launch new consumer finance solutions #1 17 Million Solution Provider in 3 years Active Paycell users by 2022 4#5Techfin: Regulation Becoming More Supportive B O MPOS PSD2 E-money Micro Lending Using smartphone or tablet to perform the functions of a cash register Benefit: Increased penetration of longtail merchants The potential adaptation of PSD2 Payment Services Directive of EU in Turkey Benefit: Ability to reach banking system, becoming single interface for customers Potential legislative measure to remove the requirement to keep e-money funds in escrow account Benefit: Potential to attract more users offering return on e-money accounts Potential regulatory changes in the definition of loan facilitations Benefit: Potential to give micro loans to consumers Investor Presentation 5#6Paycell: Super App for All Techfin Solutions VISION: Being an enabler on financial inclusion with the combination of technology and financial services Turkish Techfin Ecosystem Paycell App Strategy vodafone fastPay express Wallet tl Lets Ride LTE 20:01 7%28 MasterPass DCB Türk Telekom Payment Facilitators ödeal PayU ¡Para iyzico Wirecard PAYTR PAY CELL ininal manibux papara Money Transfer CUPT MoneyGram. Fatura Vizyon >Faturamatik n Bill Payment FC SCAN OR 用 Bill Payment Ho SHOW OR TOP-UP MONEY ADD CARD Istanbulkart Send Money Money Request Top-up E-Money Turkcell TL Fuch D • l PAYE Turkcel Top-up Package Top-up PAYE Card Transactions + Financell Payment Learn Credit Turkcel More Limit B Payment ค Homepage HEDİYE DÜNYAM'A HOŞ GELDİNİZ ARTIK PAYCELL DE PUANLAR BİRİKİYOR SİZE HEDİYELERİNİZİ SEÇMEK KALIYOR YENİ 80 tiffi My Account Faycell World Compaigns Investor Presentation 6#7Paycell: Go to Market Strategy Merchants Go-to Market Strategy (MPOS & QR) PAY CELL E F 09 D ADO CARD P R PAVE TENI HEDİYE DÜNYAMA HOŞ GELDİNİZ 6,000 Turkcell Stores 4,000 Direct Sales Force Turkcell Technology Mar 37 Mn Customers Investor Presentation Customers •10 Go-to Market Strategy (App) 7#8DSS: The Dynamics of New Standalone Strategy Investor Presentation TITY ΣΙ 兆 Paid Subscriptions Platform Licensing Discovery Services Traffic Monetization Data Monetization Operator Co-operations Standalone Revenue (TRY) 1 Bn 2.5x 2.5 Bn 2019 2022E 8#9DBS: Market & Turkcell Positioning • • TELCO BUSINESS / EXISTING BUSINESS 41% Telco % Market Share Superior network perception Net add, increase in ARPU • Opportunity of multiplay, new services High margin Addressable Market 24 Investor Presentation DIGITAL & ICT BUSINESS / GROWTH ENGINE 5% • • ICT % Market Share Fragmented market Lack of strong system integrator Increase in demand for digitilization • Billion TRY HARDWARE & SOFTWARE BUSINESS / OPPORTUNISTIC APPROACH • Profitable growth with integrated solutions Telco market figures consist of mobile and fixed voice & data figures and exclude hardware sales. Mobile figures are based on Futurebright 2018Q4 Field Research. Fixed figures are based on ICTA Report 2018Q4 and Turkcell Estimation. ICT, Hardware & Software figures are based on IDC Blackbook 2019. 9#10Turkcell Finance: Key Priorities Investor Presentation 24.34 5351 00 5327.00 $216.11 $173 03 Nickel Bauxite $151.07 Inflationary Pricing . Key to sustainable growth and . profitability • Assurance for required return on investment Above-market ARPU growth 15.44 25 65.32 14 55.01 11.08 Effective Balance Sheet Risk Management Strong Free Cash Flow Generation Sustainable revenue growth Efficient Capital Allocation Review of investment Liquidity management • • Net fx position · Continued operational profitability Controlled capex requirement in conventional services Investment in high growth businesses Ensure returns above WACC 10 10#11Efficient Capital Allocation Global Telco Industry Challenges Turkcell's Responses Heavy investment need IPO/M&A activities Infrastructure sharing Sell & leaseback transactions Reduce funding needs Flow of funds in capex heavy traditional business Slow revenue growth Digital services (TV, music, etc.) Techfin services ICT solutions (datacenter, cloud etc.) Improve returns over WACC Investor Presentation Invest in new high growth areas 11#12OUR INITIAL TAKE ON COVID-19 Investor Presentation#13Our Initial Take on the Impacts of COVID-19 Investor Presentation KEY POINTS > At Turkcell, we are closely monitoring the situation, and act via work groups/squads at each function We prioritize employee health, keeping our services and operations uninterrupted, and management of any potential risks related with balance sheet with an increased emphasis on liquidity management >Telecom services have become more critical for work, education & life, and demand has surged We are also aware of potential risks due to limited mobility (roaming etc.) and a prolonged scenario Fast forward digitalization enhances the opportunities in business & entertainment for the long run Our unique portfolio of digital services and solutions positions us favorably in the post-crisis era We have a robust balance sheet with strong liquidity Turkcell has a strong balance sheet with strong liquidity and limited financial risk exposure 13#14Investor Presentation Initial Management Response EMPLOYEES Remote working since March 13 including more than 10,000 call center agents Provided field employees with necessary hygiene equipment CUSTOMERS Free 6 GB/mo for mobile remote education portal; free 10GB/mo TV+ users for remote education channels Plans to provide free 6GB/mo to university students to access online education platforms (under discussion) Free 500 minutes and 5 GB/mo provided to subscribers in health sector; 10,000 free minutes for family physicians Collection terms eased for subscribers in health sector and subscribers above age 65 Free calls to Consulate Call Center for Turkcell subscribers abroad RETAIL CHANNEL Stores at malls closed (170 out of 1,300 exclusive stores. 4,000+ non-exclusive stores open) Street stores work 6 days of the week between 12pm to 6pm; these stores are provided with hygiene materials NETWORK Network optimization based on Al to manage traffic load actively Network operations teams on alert mode and back-up core capacity is ready for any need Critical equipment orders brought forward and inventory replenished FINANCIAL OTHER Increased emphasis on liquidity management and collection risks Daily financial risk management meeting with CFO; weekly status updates with Group CFOs ; monitoring cash flow on a daily basis Dynamic revenue forecasting and cost control measures Three operators initiated a project with the cooperation of Ministry of Health aimed at identifying high risk groups to virus based on Al, ensuring compliance to lock up rules based on location data and developing a mobile app including updated information on pandemic Note: Retail channel reflects the picture prior to the ease of lockdown actions 14#15COVID-19 Impacts - Recap . TURKCELL OPERATIONS IN TURKEY DA Fizy TV digital business services PCELL STRATEGIC FOCUS AREAS Investor Presentation INTERNATIONAL BUSINESS • Group video call in BiP increased 10x Quarantine rules apply in Ukraine and TRNC Stores open • TV+ Login & session time: up by 15% • Customers are encouraged to use online channels Rise in data usage in total network: 35% Customer acquisitions are: Mobile (postpaid): 35% lower Fixed: 52% higher • Digital Services Digital Business Solutions IMPACTS • Churn: • Mobile (postpaid): 37% lower Fixed: 28% lower RISKS • Accelerated demand for digital channel • %30 more visitor %76 more sales volume Roaming revenue Prepaid revenue SME segment and equipment sales Lower acquisition • Lower handset sales Note: Impact figures compare last week of March to last week of February • • higher demand for cloud, security services city hospital projects accelerated & new ones Techfin solutions • 30% increase in online payments • 42% increase in DCB Digital Business Solutions • deferral of projects collection risk • Techfin solutions • decline in consumer finance business Higher consumption (Ukraine): • Voice traffic: 9% • Data: 3% • Roaming revenue . Lower acquisition Prepaid dominated markets Price increase limitations 15#16Investor Presentation Major Challenges and Risks CONSUMER SEGMENT Declining traffic in physical channel impacting customer acquisitions (similar but positive impact on churn levels) >Pre-paid line top-ups in physical channels (low pre-paid subs share of 38%, rev. share is <20% in mobile in Turkey) Declining device sales due to limited mobility CORPORATE SEGMENT Certain industries are impacted directly by the pandemic which might lead to requests from clients regarding: Deferral on payments; temporary discount of services > SMEs vulnerable to prolonged time and macro risks (rev. share is <10% in Turkey) ROAMING REVENUES Roaming income in consumer and corporate segments at risk with suspension of inbound and outbound travels (rev. share is <3%), but also lower roaming costs CONSUMER FINANCE BUSINESS OTHER Potential of further slow down in consumer finance business with the decline in device sales Potential increase in cost of risk on BRSA's resolution on deferral of loan payments Stricter lock down conditions might impact fixed broadband service set-ups Any rise in unemployment or decreasing purchasing power may impact our overall business Higher vulnerability to cyber-attacks due to remote working 16#17Investor Presentation Long Term Opportunities DIGITALIZATION OF CUSTOMER Fast forward digitalization enhances the opportunities in business & entertainment > Our digital business solutions needed for online education platforms, remote work, e-commerce > Rising use of our digital services portfolio leading to established habits DIGITALIZATION OF SERVICE CHANNELS > Optimization of our channel costs with faster shift to digital channels Call center agents switched to home agents reducing overhead costs FIXED WIRELESS ACCESS (FWA) Who led the digital transformation of your company? A) CEO B) CTO C) COVID-19 Like Superbox, the brand for FWA in Turkey, stands out as the sole alternative to fiber offering fiber-like speed 390 12 Comments Comment Share > Faster penetration of Superbox than our plans; 125% increase in acquisitions (last week of March vs last week of Feb) TECHFIN > Acceleration of payment habits into cashless methods > Surge in demand for digital content: Opportunity for mobile payment growth Increase in QR based and contactless payments 17#18Conclusions Telecom services have become more critical for work, education & life • Need for Turkcell's quality service is more important than ever We see strong demand leading to overage, upsell and behavior change Fast forward digitalization enhances the opportunities in business & entertainment • • Our digital business solutions needed for online education platforms, remote work, e-commerce Rising usage of our digital services portfolio Optimization of our channel costs with faster shift to digital channels > Potential risks lie in certain area and segments Investor Presentation • Roaming income at risk if situation extends beyond summer (rev share is <3%) • Top-up of pre-paid cards in physical channels (we have a low pre-paid share of 38%, rev. share is <20% in mobile in Turkey) • Risk of disruption to the global supply chain depending on the duration of this crisis • Rising vulnerability to cyber-attacks given significant remote working Quality of balance sheet and cash strength is key • • Turkcell has a robust balance sheet with strong liquidity: USD1.4Bn cash at hand (Mar-20) We carry a long FX position of USD114Mn as of Mar-20 18#19Q1 2020 RESULTS Investor Presentation 19#20Q1 2020: Strong Start to the Year REVENUE GROWTH EBITDA MARGIN TOTAL SUBSCRIBER NET ADD POSTPAID SHARE MOBILE ARPU GROWTH Investor Presentation RESIDENTIAL FIBER ARPU GROWTH 17.3% 42.2% 614K 63.2% 21.5% 13.4% 6.7Bn TL Up 2pp yoy towards 1Mn/y target Up 8pp yoy Double-digit growth Strong growth Solid profitability Strong net add 2 week/limited impact of COVID-19 20 20#21Turkcell Group Financials Investor Presentation Q1 2020 QoQ % YoY % MILLION TL Revenue 6,658 (0.4%) 17.3% EBITDA 2,809 2.0% 23.1% EBITDA Margin 42.2% 1.0pp 2.Opp EBIT 1,437 6.5% 30.3% EBIT Margin 21.6% 1.4pp 2.2pp Net Income 873 15.5% (28.7%) Opr. Capex/Sales¹ 12.6% (12.8pp) (3.0pp) Highlights • Double digit revenue growth and strong operational profitability 2 week/limited impact of COVID-19 Excluding the 772Mn TL transaction gain in Q119, yearly net income growth is 93% Note: TRY figures are based on IFRS. 1Excluding license fees 21 224#22Operational Highlights TURKEY SUBSCRIBERS MILLION 63% 21.0 Postpaid Share 12.2 2.3 cable 59K ADSL 0.7 fiber 0.7 1.5 ARPU TL 21.5% YoY 38.1 Investor Presentation 13.4% YoY 70.4 71.2 45.9 46.3 62.8 Q1 19 Q4 19 Q1 20 Mobile blended (excl.M2M) Q1 19 Q4 19 Q1 20 Fiber Residential MONTHLY AVERAGE MOBILE CHURN RATE 4.5% Postpaid Prepaid Fixed subscribers IPTV 1.9% 2.0% Net add 1.9% 2.1% fiber ADSL Total QoQ 679K↑ 113K↓ 34K↑ 23K↓↓ 28K↑ 614K↑ Q1 19 Q4 19 1.7% Q1 20 excluding the impact of regulatory change & involuntary deactivated lines 22#23Shifting to a More Valuable Portfolio MOBILE POSTPAID SUBSCRIBERS MILLION 18.9 18.7 19.4 20.4 Investor Presentation 21.0 • Solid performance in a seasonally weak quarter • Strong start to 2020 with 679K postpaid net adds Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Net add (155K) 215K 503K 984K 679K Postpaid share 55.4% 55.7% 56.3% 62.2% 63.2% • Rising postpaid share is encouraging • More secure for upsell & collection during this fragile period Supportive of blended ARPU growth 23 23#24Superbox <<The Brand for FWA>>> SUBSCRIBER TREND THOUSAND SUPERBOX C ~2x the ARPU of fixed broadband 130 56 217 Investor Presentation 400 323 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Net Add 23K 73K 88K 106K 76K • Sole alternative to fiber, offering fiber-like speed Demand rose %125 in late Mar; doubled in the first week of Apr 24#25Strategic Focus Areas: First Quarter Highlights sim Fizy O TV+ DIGITAL SERVICES • Standalone revenue growth: 29% yoy • First enterprise customer on BiP Multicloud • New: Digital Security Service Turkcell Data Management Platform: 1st phase concluded • Efforts and campaigns in all our apps to motivate «stay-at-home>> PAYCELL VISA Strong topline growth continued: 42% yoy Investor Presentation digital business services DIGITAL BUSINESS SOLUTIONS • Secured nearly 700 new projects in Q1 2020 • Rise in demand for our services for remote working &education, security & cloud ⚫ New city hospital inauguration on 20 April: earlier than scheduled PAY CELL TECHFIN SERVICES Highest-ever yoy transaction volume growth in March with 146% • Active Paycell app user growth 50%; active Paycell Card users doubled yoy Paycell integration with Istanbulkart mobile application Acceleration of payment habits into cashless methods 25#26Growth Engine: Mobile Data MOBILE DATA USAGE AV. GB/USER 4.5G SUBSCRIPTION MILLION 3.4 7.4 5.9 4.4 Q1 19 Investor Presentation 11.6 10.8 31.0 30.7 31.4 9.8 9.0 +66% YoY data 20.4 4.7 usage growth 18.5 19.2 Q4 19 Q1 20 Q1 19 Q4 19 Non 4.5G Users 4.5G Users Total Users -4.5G subscribers 78% smartphone penetration Q1 20 -4.5G compatible smartphone 89% are 4.5G compatible SPS 4.5G 94% are 4.5G subscribers 20 million with 4.5G 4.5G compatible SPS Monthly data consumption of a 4.5G user reached to 13GB in March 2020 26#27Leadership in Quality & Experience LEADER IN QUALITY • Widest: 234 MHz spectrum CUSTOMER EXPERIENCE CONSUMER NET PROMOTER SCORE (POINTS) • Fastest: 1.2 Gbps LTE-Advanced/5G ready 23 • Al-based Smart network operation NETWORK • Fiber-to-the-home: 10Gbps LEADER IN DISTRIBUTION SALES CHANNEL 1,315 exclusive stores • 5,200+ non-exclusive stores • Digital channel: Turkcell website and app Investor Presentation 22 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 -Turkcell Op1 -Op2 Source: Future Bright 27 22#28Turkcell International FINANCIAL HIGHLIGHTS¹ MILLION TL Q1 2020 QoQ YOY Revenue 560 (0.2%) 31.7% SUBSIDIARIES AT A GLANCE Q1 2020 Revenue Share Lifecell Ukraine • 69% Investor Presentation • 12% yoy revenue growth in local currency 4G user data usage: 10GB/month, 142% yoy Life :) Belarus 2% yoy revenue growth in local currency EBITDA 250 2.5% 29.0% • 16% EBITDA Margin 44.6% 1.1pp (1.0 pp) 1 Figures are based on IFRS 10% C✶ • 4G user data usage: 11GB/month, 135% yoy KKTCell TRNC • 14% yoy revenue growth • Increasing contribution of fixed & corporate business Note: Remaining 5% comprises lifecell Germany, other international operations and intra-company eliminations. Ukraine, Belarus and TRNC local currency growth figures are based on stand-alone financials. 28#292020 Guidance Revisited EXISTING IMPACTS Investor Presentation REVISED Lower roaming revenues • Less mobility, store working hours REVENUE GROWTH 13% -16% 10% -12% • Lower handset sales, consumer finance Risk at SME and equipment revenues • S&M savings Overhead savings S&M savings EBITDA MARGIN 39% -42% EBIT MARGIN 18% -21% • 16% - 18% OP.CAPEX/SALES* Overhead savings Revised revenue guidance Level to preserve quality Important notice: Revised guidance is based on a scenario where gradual normalization of pandemic related impacts starts in 3Q 2020 Long Term Opportunities *Excluding license Faster Digitization of Customer Faster Digitization of Service Channels Fixed Wireless Access $Techfin 40% -42% 19% -21% 17% -19% 29#30Revenue MILLION TL • 5,675 135 (79) 905 ↑17.3% Revenue Q119 A Turkcell Turkey A Turkcell International Yearly incremental revenue generation of 1.0 bn TL in Q120 • Top-line impacted by slowdown in TCF and exit from Inteltek • Growth excluding TCF and Inteltek: 20.8% yoy * Turkcell Consumer Finance Company (Financell) ATCF* 22 Δ Other Subsidiaries 6,658 Revenue Q120 Investor Presentation 30#31EBITDA & EBIT • • MILLION TL EBIT: 1.103 19.4% 2,281 (467) 983 2 54 (44) EBITDA Q119 A in Revenues A in Direct cost of revenues ** 123.1% A in G&A expenses A in S&M expenses 23.1% EBITDA growth via revenue increase & effective OPEX management 2.Opp yoy EBITDA margin improvement driven mainly by lower S&M expenses Excluding depreciation and amortization *** net impairment losses on financial and contract assets A Doubtful trade receivables* *** Investor Presentation EBIT: 1,437 21.6% 2,809 EBITDA Q120 31#32Techfin: Consumer Finance Business financell MILLION TL HANDSET FINANCING BILLION TL 3.9 Investor Presentation 2.8 2.5 Q1 2020 QoQ YOY 3.6 2.4 2.1 0.3 0.4 0.4 Revenue 162.5 (19.2%) (32.8%) Q1 19 Q4 19 Q1 20 Turkcell Contracted Receivables Financell Consumer Loans EBITDA 101.5 (21.0%) (7.2%) EBITDA Margin 62.5% (1.4pp) 17.2pp Net Income 64.3 (36.6%) (21.2%) Declining portfolio due to regulation • Potential further decline expected due to lower handset sales Potential increased CoR on BRSA's resolution on deferral of payments 32#33Techfin: Payment Services Platform PAY CELL MILLION TL FOUR PILLARS OF REVENUE GENERATION 77% 71% 72% Investor Presentation 57% 四 }} 42% DIRECT CARRIER 77 BILLING BILL PAYMENT 61 64 MERCHANT SOLUTIONS PAYCELL CARD 57 58 43 44 42 32 36 69% 216% 9.3K 171 Million TL 3.2 million Q119 Q219 Q319 Q419 Q120 DCB transactions Revenue EBITDA EBITDA Margin 3rd party Bill Payments Note: Growth figures are based on non-group transactions and indicate y-o-y growth in Q1 2020. Points Paycell Is Accepted 4.6 million Paycell 3MAU* 2.4 billion TL Total transaction volume* * includes direct carrier billing, bill payments and Paycell Card transaction volumes, both group and non-group 73%⭑ 52.6 million TL Paycell Card transactions HIGHLIGHTS Value focus: 82% increase in non-group revenues, representing majority of revenues Change of payment habits towards cashless payment has set the scene for further growth for Paycell • Big data analytics helping Paycell to achieve micro-segment marketing • Upcoming: wide-spread use of QR code 33#34Solid Balance Sheet SUMMARY MILLION TL Q3 19 Q4 19 Q1 20 NET DEBT/EBITDA Investor Presentation 1.0x 1.0x 0.9x Total Cash 10,975 10,239 9,212 2,075 TCF loan portfolio Total Assets 45,515 45,715 45,329 2,409 2,724 Total Debt 20,675 20,306 19,500 0.7x 0.8x 0.8x Lease Obligations 1,544 1,533 1,482 7,658 8,213 Net Debt¹ 6,975 Total Equity 17,431 18,083 18,678 Net Debt 9,700 10,067 10,288 Q3 19 Q4 19 Q1 20 Net Debt¹ 6,975 7,658 8,213 -Net Debt/EBITDA -Net Debt/EBITDA 1 1 Excludes Turkcell Consumer Finance Company's loan portfolio 34#35Liquidity Management Maturity risk management: Average debt maturity around 5 years. Working capital is funded mainly through bank loans matching the maturity of our obligations. Liquidity: Sufficient buffer to sustain operations with: . ~1.4Bn USD equivalent cash, mostly in hard currency • Lower debt service until 2023 (~1Bn USD in 3 years excluding short term local currency loans) • Available credit lines from diversified funding sources • Potential for further slow down in consumer finance business will mean additional working capital release PRINCIPAL & INTEREST PAYMENTS* USD MILLION ~USD1.4Bn cash covers payments until 2024 1,675 588 1,675 335 221 271 211 253 221 271 211 2020 2021 2022 2023 2024+ FX Local Currency *Data of Turkcell Group companies, excluding TCF Investor Presentation 35#36FX Exposure Share CASH¹ DEBT Before Hedging 7% 5% 9% 11% After Hedging 8% 36% NET FX POSITION² USD MILLION 52% 28% 53% 88% 4% (224) Nominal 9.2Bn TL 19.5Bn TL USD EUR TRY Other 1 Excluding FX swap transactions. 2 Including advance payments, derivative transactions for hedging purposes and excluding FX swap transactions Investor Presentation 216 207 155 115 114 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 36#37APPENDIX Investor Presentation#38Strategic Focus: Investor Presentation Differentiation with Unique Skills Digital Services bip Haftalik Kesif Listen Ha sede mig kasket Fizy bip Murat İnan CALLING bip Tv+ TV+ Ne 3D SORES DOLMADAN AZLE 100 100 Jazz Essential Boogie Woogie " G 13 COVERT D ForE LEOPOLD EN COR IZLENENLER bip Translation Top-Notch Features Tv+ Timeshift & Cloud Recording bip App2NW TV+ fizy bip Group Video Call Lyrics bip 2nd Number bip Secret Message fizy Music Video bip Fixed Number fizy Live Broadcasting O Yaani D Juan Beber sanan in F Fizy O müziğini keşfet 0 D - O C Fizy Telco-OTT Power Tv+ Quality of Service Dedicated Bandwith OTT Box Integrated Experiences fizy Digital Mags TV+ Fizy Cross TV+ Platform Recommendation 38#39Global Expansion lifecell TURKCELL KUZEY KIBRIS ALASKA USA! ALBtelecom Moldcell Digicel life:) CG Corp Global Negotiation Done Deal Subsidiaries Potential CANADA UNITED STATES OF AMERICA MEXICO TREBATAMAN PERU CHILE BOLIVIA BRAZIL PARAGUAY ARGENTIN GREENLAND (DENMARK) Strategic Focus: Digital Services Investor Presentation Svin IBAG IRAN ALGERIA LIBYA EGYPT SAUDI ARABIA MALI NIGER CHAD SUDAN HISTRIA ANGOLA ZAMBIA ETHIOPIA KEN LA RUSSIA KAZAKHSTAN MONGOLIA PAKISTAN INDIA JAPAN CHINA MALAYSIA INDONESIA AUSTRALIA сили NEW ZEALAN 39#40Corporate Customers' Needs in Turkey Strategic Focus: Digital Business Solutions digital business services OPTIMIZE COSTS 3 MILLION COMPANIES SMALL BUSINESS SME ENTERPRISE 16K COMPANY 528K COMPANY 2.5Mn COMPANY INCREASING END TO END DIGITALIZATION OF CORPORATE CUSTOMERS Investor Presentation INCREASE REVENUES 40 40#41Global Techfin Revolution KEY DRIVERS IN WEST Strategic Focus: Techfin Services PAY financell CELL KEY DRIVERS IN EAST Investor Presentation E-Commerce • Tech Savvy • Regulatory Environment Unbanked Population • Tech Savvy • Regulatory Environment * Active users **Registered users Pay a PayPal 383 Mn** 310 Mn* 286 Mn* C⭑ PAY Paytm 140 Mn* 23 Mn* m-pesa 問 ® >1 Bn* 支付宝 ALIPAY WeChat Pay 900 Mn* JD .COM 400 Mn** - 41#42Turkey: Attractive Dynamics Strategic Focus: Techfin Services PAY CELL financell 17th M Largest economy in the World 82Mn 77% 30Mn Smartphone penetration 1.6Mn 血 Unbanked population 60% Youngest & largest Cash Merchant spending population in Europe Investor Presentation 222 42#43Regulation Becoming More Supportive PAY CELL E O MPOS E-money Using smartphone or tablet to perform the functions of a cash register Benefit: Increased penetration of longtail merchants Strategic Focus: Techfin Services The potential adaptation of PSD2 Payment Services Directive of EU in Turkey Benefit: Ability to reach banking system, becoming single interface for customers financell PSD2 Potential legislative measure to remove the requirement to keep e-money funds in escrow account Benefit: Potential to attract more users offering return on e-money accounts Micro Lending Potential regulatory changes in the definition of loan facilitations Benefit: Potential to give micro loans to consumers Investor Presentation 43 33#44Key Performance Metrics PAY PCELL Strategic Focus: Techfin Services PAY CELL financell 2019 2022E Investor Presentation 3-Month Active 4.5Mn 17Mn User [⑥ Volume (TRY) 5.7Bn 41Bn Revenue (TRY) 252Mn 750Mn 44 14#45Frequencies Before and After 4.5G Tender Investor Presentation TOTAL FREQUENCY AFTER TENDER AWARDED FREQUENCY IN TENDER TOTAL FREQUENCY €0.3 €0.5 234.4 MHz €0.4 175.0 MHz 139.8 MHz 172.4 110.2 82.8 BEFORE TENDER 62.0 64.8 57.0 Turkcell Vodafone Türk Telekom Price/ MHz / Population in Turkey: €0.12 per MHz per sub cost 45#46Frequency Bands After 4.5G Tender €0.3 Investor Presentation 800 MHz 4.5G main coverage layer €0.5 234.4 MHz 20.0 €0.4 24.8 900 MHz 2G/3G coverage and voice layer 175.0 MHz 20.0 59.6 139.8 MHz 1800 MHz Main layer for 4.5G Terminal support, capacity and coverage layer 20.0 20.0 24.8 70.0 70.0 Mobile broadband layer for 3G 20.0 2100 MHz 4.5G usage for mid/long term 35.0 30.0 60.0 2600 MHz 4.5G capacity boost layer for hot spots 40.0 35.0 Turkcell Vodafone Türk Telekom • Price/MHz / Population in Turkey: €0.12 per MHz per sub cost 46#47Fastest & Best & Widest SPEED 1,200 Mbps 4x4 2018 Gigabit LTE* *Source: https://gsacom.com/paper/progress-gigabit-lte-networks-2/ QUALITY Investor Presentation 4x4 MIMO all network MIMO: Multi Input Multi Output Carrier Aggregation all network The Best Experts 47 42#48Differentiated Through Quality DATA SPEED USER EXPERIENCE Download (Mbps) Upload (Mbps) 49 21 17 13 11 10 Source: IRIS Telecommunication Engineering Services, January 2019 Turkcell Telco1 Telco2 0-100 82 75 74 Investor Presentation 48#49Fixed Broadband Market TURKISH FIXED BROADBAND MARKET FIXED BROADBAND MARKET BY TECHNOLOGY (MN) Investor Presentation 17.1% 14.2 mn 17.1% 3 major 16.3% 1.08 Total Subscribers Penetration Operators 14.7% 0.93 13.2% 0.83 3.21 12.1% 2.80 11.5% 11.0% 0.74 10.2% 2.29 0.63 FIBER SUBSCRIBER MARKET SHARE 1.93 0.56 0.49 1.67 Q4 2019 0.49 1.46 1.2 0.55 TURKCELL SUPERONLINE 46.2% 9.5 9.7 8.7 Incumbent 51.2% 7.8 6.6 6.6 6.8 7.2 Other players 2.6% Note: Company calculation based on data in ICTA Q4 2019 Report 2012 2013 2014 2015 2016 2017 2018 2019 IxDSL Fiber Cable Penetration 49#50Well-invested Infrastructure: Focus on Sharing Turkcell (stand-alone) In partnership with Türksat & Vodafone Investor Presentation Homepass 3.6 mn 3.6 mn fiber + 3.0 mn cable (HFC) Number of cities 21 28 Turkcell infrastructure Türksat infrastructure Overlapping The map displays the cities in Turkey where Turkcell offers fiber and cable internet services through its partnership with Türksat and Vodafone. HFC stands for hybrid fiber-coaxial. First in Europe 10 Gbps Fiber to the home 50 50#515G is an Evolution Massive Machine Type Communication 4.5G SUPERBOX Enhanced Mobile Broadband 5G ERICSSON Conta TURKCELL 5G Ambulansı ACILYAR Ultra Reliable Low-Latency Communication Investor Presentation 51#52Capex/Sales Trend 25% Turkcell Group Average: 18.0%* EEMEA Average: 16.9% Between 2009 and 2019 20% 15% 10% Investor Presentation 5% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ―Turkcell Group EEMEA Source: Bloomberg Industry Data and company announcements *Excluding licence fees 52 52#53New Definition of The Customer Internet ~59% 24 Mn Households Determining household via network and social network analysis 's Share 53% Pay TV ~30% H Capturing potential via house profiling by using big data Source: Turkey Household: Turkcell expectation based on TurkStat 2018 announcement Internet & Pay TV: ICTA Q219 Turkcell's Share: Future Bright Convergence & Household Penetration Research Q119 (૧ 55555 ப Investor Presentation Raising wallet share with cross contracting, household offers and new products 53#54Utilize Big Data to Maximize Consumer Surplus BIG DATA Social network Application usage Location base Network metrics ARTIFICIAL INTELLIGENCE Adaptive learning Rule-based management RIGHT OFFER TO THE RIGHT CUSTOMER AT THE RIGHT TIME Multiple layered offers for value maximization Investor Presentation +20% +8% Analyze Customer Behaviour Higher benefit Higher price Lower benefit Lower price Special offer for customers with churn risk 54 54#55New Pricing Approach 1 HYBRID OFFERS Investor Presentation 2 3 4 YEARLY PACKAGES SEMI CONTRACTS PURE DIGITAL OFFER Mix of postpaid & prepaid offers Flexible postpaid management No bill shock Data benefit which can be used flexibly during 12 months Contract based on benefit Flexible price Game changer tariff Low cost play Digital channels only 55#56Investor Presentation Paycell: Turkey's Leading Techfin Company POTENTIAL ACTIONS Established in 2015, fully owned by Turkcell PAYCELL VESA Standalone payment and e-money company Payment institution and e-money licenses from BRSA . Mobile payment solutions in several verticals PAY CELL PAY CELL STRATEGIC PARTNER • Share know-how . Invest jointly Diversify risk INORGANIC GROWTH . • Acquire local techfin companies to expand vertical solutions Look for synergies 56#57Turkcell Superonline: Turkey's Fastest Fiber . 46 thousand km rollout, 21 cities . 1.5 Mn fiber customers • Data speed up to 10Gbps . Infrastructure sharing (Turksat & Vodafone) • 3.6 Mn fiber homepass NET REVENUE TREND TRY Mn 1,719 4,823 4,076 3,210 2,429 EBITDA TREND TRY Mn 1,276 900 548 2,070 2,429 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 POTENTIAL ACTIONS INITIAL PUBLIC OFFERING Investor Presentation STRATEGIC PRE-IPO PARTNER More transparent articulation of equity story • Diversify risk Invest jointly Share know-how INORGANIC GROWTH • Acquire local or regional fiber assets, smart-home and security companies Look for synergies INFRASTRUCTURE SHARING Asset light model 57 57#58• Global Tower: Turkey's First & Only TowerCo • GLOBALTOWER First and only TowerCo of Turkey • Tower portfolio of 10,726 (owned + right of use) • Regional player operating in 4 countries Long term, visible revenue stream & strong profitability 290 223 EBITDA TREND TRY Mn NET REVENUE TREND TRY Mn 431 انت الس 139 68 112 Investor Presentation POTENTIAL ACTIONS Tenancy ratio 1.7x INITIAL PUBLIC OFFERING • More transparent articulation of equity story INFRASTRUCTURE SHARING 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Note: Tower portfolio includes owned and managed towers and towers for which contract management services are provided. • Asset light model 58#59Investor Presentation Datacenters: Largest White Space Capacity in Turkey • • 112k m² datacenter space 33.5k m² white space 8 locations Ankara datacenter: 44k m² datacenter space, 12k m² white space • Gebze datacenter: 33k m² datacenter space, 10k m² white space • İzmir datacenter: 15k m² datacenter space, 2.4k m² white space CUMULATIVE DATACENTER INVESTMENTS TRY Mn 803 346 314 207 87 2015 2016 2017 2018 2019 TURKCELL FUTURE FUNDING SELL AND LEASE BACK Asset light model FREE CASH FLOW GENERATION 59#60Inflationary Pricing TURKCELL ARPU VS. CPI TREND Q116=100 Company and TUIK announcements 100105 175177178 157 149 144 147 113 119118119 1261241 129 134 145146 150154160163 136 127 100101103105110113114118122 Q116 Q216 Q316 Q416 Key for sustaining growth & margins Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 TCELL ARPU (exl. M2M) CPI MOBILE ARPU COMPARISON Q116=100 Based on ICTA market report Q116 Q216 Q316 Q416 Q117 Secure ROI of projects & investments Reflecting costs to the prices ⚫TCELL Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 -Operator 1 -Operator 2 ARPU growth above competition 60 Investor Presentation#61Effective Balance Sheet Risk Management LIQUIDITY MANAGEMENT Principal & Interest Payments¹ NET FX POSITION 1,675 Investor Presentation US$ Mn Short FX position 1,675 Limited Short FX position Positive/Neutral FX position 588 335 221 271 211 253 221 271 211 Dec15 Dec16 Dec18 Dec19 2020 2021 2022 2023 2024+ FX ■Local Currency • US$1.4 Bn equivalent of cash holdings covers maturities until 2024 • Almost all cash in hard currency • Strong free cash flow generation • 50% of FX denominated debt is hedged • Available credit lines from diversified funding sources • Hedging for whole maturity (principal & interest) (1) Data of Turkcell Group, excluding consumer finance business. 61#62Major Funding & Hedging Details Investor Presentation TYPE & DATE AMOUNT MATURITY INTEREST PURPOSE OF FUNDING UTILIZATION HEDGING DETAILS Bond USD 500M 15.10.2025 (October 2015) 5.75% (fixed rate) CAPEX and inorganic growth opportunities EUR 500M China Development Bank (October 2015) EUR 750M 3-year grace period, 10-year maturity EURIBOR +2.20% EUR: EURIBOR+2.15% USD: LIBOR+2.17% CNY: 5.51% Debt restructuring Fully utilized in Oct 15 100% hedged with PCCS CAPEX ~EUR 560M fully utilized and availability period has expired ~84% hedged with PCCS & CCS Bond USD 500M 11.04.2028 (April 2018) 5.80% (fixed rate) Repayment of existing indebtedness EKN-Covered (March 2019) USD 150M 10-year maturity 1st Tranche: LIBOR+2.10% 2nd-3rd Tranche: 5.35% CAPEX Sustainability Linked Loan EUR 50M 3-year maturity EURIBOR + 1.95% (May 2019) Green Loan (Mar 2020) EUR 50M 5-year maturity EURIBOR +1.95% USD 50M utilized as of March 20 General Corporate Purposes General Corporate Purposes Fully utilized in May 19 Fully utilized in Mar 20 Interest Rate Swap: 56% of the utilized amount 62 62#63Strategic Focus Areas of Turkcell International Investor Presentation • • LIFECELL UKRAINE Growth driven by data Expand digital services Net profit by 2021 LIFE :) BELARUS • Growth driven by data • Expand digital services • C+ KKTCell TRNC Grow in fixed broadband • New revenue streams (Corporate & System Integration) • LIFECELL VENTURES NL Expand DSS footprint • Make new strategic alliances Revenue generation 63 83#64Operations in Ukraine UKRAINE MOBILE MARKET FACTS* lifecell PERFORMANCE Investor Presentation UAH MILLION Q1 2020 YOY% FY19 YoY% 55.1m 132% 3 Revenue 1,580 11.6% 5,984 13.6% Total Mobile Operators subscribers Penetration EBITDA 798 (2.1%) 3,243 17.4% EBITDA Margin 50.5% (7.1pp) 54.2% 1.8pp 00 lifecell КИЇВСТАР Ownership 100% Turkcell Ownership 100% VEON HIGHLIGHTS Operational performance (3 months active): . 7.5 million subscribers in Q1 2020 • UAH 69.5 ARPU (up 4.2% yoy) Ownership 100% MTS • ** 80% SP penetration (market leader) *Source: Global Wireless Matrix Q4 2019 ** MTS announced the sale of its Ukrainian operations to Bakcell (Azerbaijan) on Nov 25, 2019. • First to launch 4G services in Ukraine on 2600 MHz • 4.5G services on the 1800 MHz frequency since Jul 1st, 2018 NCCIR issued license for both GSM and LTE in 900 MHz band • New license will become valid July 1st, 2020 (for 5 years) 64#65Ukraine: Mobile Market Performance MARKET SHARE Subscriber* FINANCIALS - lifecell Mobile Revenue Growth (in UAH) 37.0% 13.9% (*) 3 month active subscribers Mobile Revenue 30.6% 15.5% Source: Company announcements (Q4 2019) VDF - Kyivstar Investor Presentation (YoY) 30% 20% 24% 18% 19% -21% 16% 16% KYIVSTAR 17% 16% 49.1% VDF 12% 10% 12% lifecell -11% Q119 Q219 Q319 Q419 Q120 EBITDA Margin (%) 69.5% 67.9% 65.0% KYIVSTAR 62.9% 64.8% VDF 53.9% 57.6%- 53.9% 53.0% 52.6% 50.5% lifecell 52.8% 54.6% 51.7% 49.1% Q119 Q219 Q319 Q419 Q120 65 55#66Operations in Belarus BELARUS MOBILE MARKET FACTS* BEST PERFORMANCE Investor Presentation BYN MILLION Q1 2020 YoY% FY19 YoY% 11.9m Total 125% 3 Revenue Mobile Operators subscribers Penetration EBITDA 32.5 1.9% 135.0 8.1% 8.4 13.5% 35.5 27.2% EBITDA Margin 26.0% 2.9pp 26.3% 4.0pp life:) Ownership 80% Turkcell ● MTS A1 Ownership Ownership • HIGHLIGHTS 1.0 million subscribers in Q1 2020 (3-month active) 20% Belarusian State 51% Belarusian State 100% Telekom Austria 49% MTS • Provides 4G LTE services in 6 regions and ~191 cities Average monthly data consumption grew by 35% yoy to 11GB *Source: Company calculation based on Q4 2019 results • 4G users reached 58% of 3-month active users, driving further data and digital services usage. 66#67Belarus: Mobile Market Performance MARKET SHARE Subscriber* FINANCIALS life:) A1 MTS Mobile Revenue Growth (in BYN) 41.0% 12.0% (*) 3 month active subscribers Revenue 5.8% 44.7% Source: Company announcements (Q4 2019) Investor Presentation (YoY) 20% 18% 19% 19% 15% MTS 47.0% A1 9% 10% 10% 9% life:) 3% 7% 2% 6% 5% Q119 Q219 Q319 Q419 Q120 MTS 49.5% ■ А1 life:) life :) EBITDA Margin Trend* 23.1% 32.9% 27.2% 26.0% 21.7% Q119 Q219 Q319 Q419 Q120 40 67#68Taxation in Turkey TAX MOBILE FIXED 70% Special Communication Tax (SCT) 7.5% 7.5% VAT 18% 60% 18% Treasury Share¹ 15% 1% 50% TRX fees Contribution Share to Telecom Authority New subscription SCT² 5% (of net sales) 40% 0.35% (of net sales) 0.35% (of net sales) 30% TRY 79.00 (at first enrollment) Wireless license fees TRY 34.15 (per acquisition) Wireless usage fees TRY 34.15 (annual) 20% TURKEY HAS THE WORLD'S HIGHEST MOBILE SERVICE TAXES³ Investor Presentation 10% Turkey Hungary Jordan UK Croatia Greece Italy Spain Egypt 1Under the license agreement Turkcell pays a treasury share equal to 15% of its gross revenue from Turkish GSM operations 2 Excluding M2M SIMS 3 GSMA/Turkey Report, 2016 68 89#69Mobile/SMS Termination Rates in Turkey MTR RATES TRYKr. Mobile Voice Rates SMS Rates OLD Since 2013 Asymmetry OLD Since 2013 Asymmetry Turkcell 3.13 2.50 1.70 0.43 Vodafone TR 3.23 2.58 3% 1.73 0.43 TTKOM 3.70 2.96 18% 1.87 0.47 9% EVOLUTION OF MTR Investor Presentation TRY kuruş per min. 17.2 15.7 14.4 13.6 Turkcell MTR is half of the European MTR level 11.1 11.1 9.1 8.1 MTR-Turkcell Europe-MTR 6.6 6.5 4.9 5.0 4.8 3.1 3.1 3.1 4.2 4.4 4.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2007 2008 2009 2010 2011 2012 MTR: Mobile Termination Rate Source: BEREC July 2019 report, Cullen International 2013 2014 2015 2016 2017 2018 2019 69 59#70Currency Trends USD/TRY Investor Presentation EUR / TRY Average Period-End 6.52 5.94 7.22 5.26 6.65 6.03 6.14 3.77 5.66 6.79 4.52 6.33 4.76 5.60 3.63 4.11 2017 USD / BYN 2018 2019 Q1 2020 2017 2018 2019 Q1 2020 USD / UAH 2.60 28.07 28.06 27.69 2.16 2.10 1.97 25.90 2.24 27.32 2.03 2.10 26.64 1.93 25.12 23.69 2017 2018 2019 Q1 2020 2017 2018 2019 Q1 2020 70 70#71Notice Investor Presentation This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. This includes, in particular, our targets for revenue, EBITDA, EBIT and capex in 2020 or for the medium term 2020 to 2022. More generally, all statements other than statements of historical facts included in this presentation, including, without limitation, certain statements regarding the launch of new businesses, our operations, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the written or oral use of forward-looking terminology such as, among others, "will," "expect," "intend," "estimate," "believe", "continue" and "guidance". Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward looking statements, see our Annual Report on Form 20-F for 2019 filed with the U.S. Securities and Exchange Commission, and in particular the risk factor section therein. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The Company makes no representation as to the accuracy or completeness of the information contained in this presentation, which remains subject to verification, completion and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers, employees or agents as to or in relation to the accuracy or completeness of the information contained in this presentation or any other written or oral information made available to any interested party or its advisers. Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified. In the charts or tables used in this presentation totals may not foot due to rounding differences. The figures used in this presentation are rounded while percentage changes are calculated based on the figures disclosed in the press release. 71 14#72THANK YOU For further information please e-mail [email protected] or call Turkcell Investor Relations at (+90 212 313 1888) Turkcell IR Website