#1TURKISH AIRLINES 00000 00000 000 DRE Turkish Airlines 2033 Strategy November 2023#2TURKISH AIRLINES A STAR ALLIANCE MEMBER 1. OVERVIEW 1. Snapshot 2. Group Structure 3. Historical Growth 4. Market Share Development 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 2#3Turkish Airlines at a Glance Countries We Fly To: 128 Global ranking: 1st Int'l Destinations: 291 Global ranking: 1st Cargo Destinations: 363 Global ranking: 1st Number of Int'l Flights: 237k 1st among network carriers in 9M'23 Fleet Size: 435 aircraft Global ranking: 9th Average Fleet Age: 9.2 Years Global ranking: 4th C⭑ WE FLY TO MORE COUNTRIES THAN ANY OTHER AIRLINE National Flag Carrier of Türkiye Flies to more countries globally than any other airline WORLD FINANCE NOST SUSTAINABLE FLAG CARRIER AIRLINE 2023 TURKISH AIRLINES |♡ "Most Sustainable Flag Carrier Airline Istanbul Airport is in 2023" World Finance the largest hub¹ in Europe TURKISH Note: All figures are as of 09.11.2023, unless otherwise stated. Fleet age ranking is among the top 10 largest carriers in terms of fleet size. AIRLINES In terms of number of flights. Source: Eurocontrol. Workforce: c. 83,000 Global ranking: 7th Leadership Avg. Experience: 29 years TURKISH AIRLINES WIDEN YOUR WORLD Surpassed 2019 capacity level by 25% in October'23#4Founded in 1933, Turkish Airlines has 20 Subsidiaries and JVs widect Wide Direct Connect we WORLD EXPRESS Open to Public: 50.88% Türkiye Wealth Fund: 49.12% Air Transportation TURKISH CARGO ANADOLUJET 1,722 mn $ Fuel STFS TURKISH Dpet TURKISH FUEL SERVICES AVIATION FUELS 3,987 mn $ 638 3,920 TURKISH Cons. Revenue (LTM 3Q'23): 20.6 bn $ AIRLINES Total Number of Personnel: 82,917 MRO & Cabin Interior TURKISH TECHNIC TEC Turkish Engine Center SunExpress AIR ALBANIA TC INTERIORS AIRCRAFT Support Services Ground Handling TGS TURKISH GROUND SERVICES 478 mn $ Catering TURKISH DO CO TURKISH NACELLE CENTER 11,256 498 mn $ 17,725 425 mn $ 6,168 TURKISH AIRLINES Other Flight Academy TURKISH AIRLINES TSS TURKISH SUPPORT SERVICES THY DESTEK HIZMETLERI AS THY Financial TECHNOLOGY Technologies Inc. Fully consolidated 11,162 Vertical integration allows us to keep c.40% of the cash outflow within our organization. TURKISH AIRLINES A STAR ALLIANCE MEMBER Note: For JVs LTM 9M'23 total revenues, not just the portion attributable to Turkish Airlines. Number of personnel figures are as of 30.09.2023. 4#5Historical Growth Utilizing structural advantages with well executed growth strategy led to Turkish Airlines' success story. Well executed business strategy led to a clear growth trend Fleet Development Since 2002, Turkish Airlines multiplied in size with increasing profitability. Our sound business strategy proved itself many times - even in the pandemic with 1.4 billion USD operational profit in 2021 followed by 2.7 billion USD in 2022. By 2023, Turkish Airlines substantially outperformed its pre-pandemic operational and financial performance. Revenue Development (bn USD) 2002-22 9% CAGR 2002-22 increase 5.6x 435 329 350 370 394 202 98 70 10 2002 2007 2012 2017 2019 2021 2022 09.11.2023 EBITDAR Development 2.0 2002-22 increase 3.7 12% 2002-22 CAGR 20.6 9.4x 18.4 11.0 13.2 Pandemic 8.2 10.7 2019 Level (bn USD) 12% 2002-22 CAGR 6.3 2002-22 increase 10.2x 5.4 3.0 Pandemic 3.7 3.1 1.6 0.8 0.5 2007 2012 2017 2019 2021 2022 LTM 3Q'23 2002 2007 2012 2017 2019 2021 2022 LTM 3Q'23 2002 TURKISH AIRLINES A STAR ALLIANCE MEMBER 2019 Level 2019 Level 5#6Market Share Development Turkish Airlines' market share quadrupled in the last two decades Global Market Share Trends 1 (2010-9M'23) 4.8% 4.9% 3.4%- ·†· Most market share gaining airline between 2010-2022. United 2 American Emirates +1.7 pt. 2.7% 7 Turkish Airlines 8 Qatar 2.7% 1.7% 1.9% 1.8% 1.3% 9 British 10 Air France 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ■9M'23 ¹In terms of billion Available Seat Kilometers (ASK). Ranking and market shares in the graph are according to 2022 data. TURKISH AIRLINES A STAR ALLIANCE MEMBER Source: IATA. Turkish Airlines Market Share Development² 2.7% 2.4% 2.4% 1.8% 1.8% 1.6% 1.4% 0.6% 0.7% 188 ~3x 202 173 176 128 96 75 42 24 2002 2007 2012 2017 2019 2020 2021 2022 9M'23 ASK (bn.) ⚫Marketshare 2 In terms of ASK (Available Seat Kilometers). 11 Lufthansa 12 KLM Turkish Airlines experienced a robust recovery after the initial shock of the pandemic and significantly increased its market share. 6#71. OVERVIEW TURKISH AIRLINES A STAR ALLIANCE MEMBER 2. INVESTMENT HIGHLIGHTS 1. Overview 2. Value Accretive Business Model 3. Flight Network and Connectivity 4. Geographical Advantage and Fleet 5. Diversified Revenue Base 6. Resilient Performance 7. Türkiye's Tourism Potential 8. Competitive Cost Base 9. Strong Balance Sheet 10. Current Results 11. 2023 Expectations 3. 2033 STRATEGY AND TARGETS 7#8Investment Highlights TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 Value Accretive Business Model 2 World Leading Network and Connectivity >>>>> 3 Geographical Advantage Combined with a Modern Fleet C 4 Diversified Revenue Base 5 Resilient Operating and Financial Performance 6 Türkiye's Tourism Potential 7 Competitive Cost Base 8 Strong Balance Sheet + ☑ B 11 8#9Value Accretive Business Model Turkish Airlines' value creation is materially above the industry Return on Invested Capital (ROIC) 9.5% 9.1% 8.5% 8.9% 8.8% 7.9% 7.9% 7.2% 6.2% 7.9% 6.8% 6.5% 4.6% 4.9% 5.4% 5.8% 2012-22 Avg.: 7.3% 4x 2012-22 Avg.: 1.8% -0% -0.5% -19.3% -8.0% 14-15% 14.3% 0.6% -1.7% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Turkish Airlines ROIC Airline Industry ROIC TURKISH AIRLINES A STAR ALLIANCE MEMBER ROIC: (EBIT + Op. Lease Interest + Interest Income + Interest Income from Financial Investments - Current Tax Expense) / (Total Debt + Equity + Adj. for Op. Leases). Source: Turkish Airlines, IATA for the airline industry. 9#10World Leading Network Turkish Airlines ranks #1 in the World by international destinations Turkish Airlines flies to 291 international destinations in 128 countries1 Provides 52.2 thousand connection options² Canada United States 508 international destinations (including offline³) Sweden Europe 121 Finland Norway France Bel Poland Our network reaches more than 90% of the world's population, GDP and trade volume4 Russia Far East & Asia Ukraine Kazakhstan Mongolia 47 Turkey Americas Algeria Libya 23 Egypt Arabla Mexico 78 Colonbia Venezuela Africa 62 Brazil Peru Argentina Sudar Yemen Democratic Republic of Congo South Africa Iran Pakistan India Middle East 38 China • Currently no freq. 1-50 freq. O51-100 freq. 101-120 freq. +121 freq. Australia 21 New Routes in 2021-23 Americas Seattle, Newark, Dallas, Vancouver Europe Palermo, Bergamo, Krakow, Tivat, Rize-Artvin Middle East Kirkuk, Urmia Africa Juba, Luanda, Lusaka Far East & Asia Cebu, Bukhara, Turkistan, Fergana, Urgench, Aktau, Turkmenbashi Future Routes Americas Detroit, Denver, Orlando, Lima, Santiago, Rio de Janeiro Europe Bergen, Glasgow, lasi, Katowice, Nantes, Newcastle, Timisoara, Bayburt, Yozgat Middle East Abha, Salalah Africa Aswan, Brazzaville, Hargeisa, Lome, Monrovia, Port Sudan, Windhoek Far East & Asia Sydney, Melbourne, Phnom Penh, Atyrau, Osaka TURKISH AIRLINES As of 09.11.2023. 2 Meaningful O&D's with detour factor <1.4. ³Including codeshare agreements. 4 On a country basis. World Bank. Circle sizes represent the number of weekly frequencies. A STAR ALLIANCE MEMBER The boxes show the number of destinations in the corresponding region. 10#11Highest Connectivity in the EMEA Region Turkish Airlines offers the most diverse set of flight itineraries with minimum detour¹ Top Airlines by Connectivity Number of International City Pairs² Europe to the World 1. Turkish Airlines 2. Lufthansa 3. Air France Middle East to the World 1. Turkish Airlines 2. Qatar Airways 3. Indigo Africa to the World 1. Turkish Airlines 2. Ethiopian 3. Air France ~17,800 ~7,200 ~6,300 From Europe Detour Advantage³ ~6,800 ~3,500 ~1,600 to Africa +12.5% to M. East +7.7% ~4,000 ~3,000 ~2,200 Transit Connection Time (hour) 2013 2015 03:39 03:12 to Far East +11% 2017 02:50 -31% 2019 02:43 2023 02:31 Compared to direct flight, transit travel from Europe with Turkish Airlines increases flight distance by just 12%. Average international transfer time decreased by 30% for optimum connectivity. TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 Detour (Circuity): Increase in the flight distance compared to a non-stop flight. 2 Includes meaningful city pairs with maximum 40% detour (detour factor <1.4). 3 Analysis is based on c.14,000 city pairs with detour factor <1.4. Source: OAG. As of 13 August 2023. 11#12Leveraging Istanbul's Ideal Geographical Location with a Modern Fleet Within Narrow Body Range 99 countries/% of the World 3.8 billion people / ~50% 33 trillion USD GDP / 35% 24 tn USD Trade Volume / 50% Europe Population: 742 million GDP: 23.7 trillion USD Trade Vol.: 18.8 trillion USD Africa Population: 1 billion GDP: 1.8 trillion USD Trade Vol.: 850 billion USD M. East & Asia Population: 2.1 billion GDP: 7.4 trillion USD Trade Vol.: 3.9 trillion USD TURKISH AIRLINES A STAR ALLIANCE MEMBER Note: Narrow body aircraft range represents 5,000 km non-stop flight from Istanbul. Source: World Bank (Population, GDP: 2021; Trade volume: 2019) Fleet (9 November 2023) Average Fleet Age 9.2 years Type Total B787-9 21 # of New Generation A350-9 14 Aircraft A330-2/3 49 B777-300ER 33 133 (31% of total) Wide Body Total 117 B737 MAX 8/9 35 Airbus Boeing Split A321/320 NEO 63 54% / 46% B737-8/9 100 A321/320/319 96 Narrow Body Total 294 Ownership Cargo Total 24 Owned: 26% Fin. Lease: 49% Grand Total 435 Op. Lease: 20% 12#13Balanced Exposure to Specific Business Segments and Regions More than 90% of the revenues are generated outside of Türkiye Segment 2017 Technic Other 1.3% 1.6% 9M'23 Other 0.9% Technic 2.4% Diversified revenue base increases our ability to adapt to different macro economic conditions. Passenger ■ Cargo ■ Technic ■ Other Region 12.0% 85.1% 2017 11.4% Regional revenue distribution provides a natural hedge against FX volatility as well as geopolitical risks. 60% of our revenues are in hard currencies¹. Currency Exposure² (9M'23) EUR (bn USD) 85.3% USD (bn USD) 9M'23 Revenues USD 2.5 Cor.1 Revenues TRY (bn USD) Revenues ■ Europe 9% ■ Far East 29% 13% 21% ■ Domestic ■ Middle East 12% ■ Americas 10% -7.6 13% 24% 8% 22% 7% Net EUR Cor.1 1.2 Long 32% USD 6.1 Net EUR 4.3 +4.0 Long +1.0 1.4 -1.5 -2.4 -3.8 Net Short ■ Africa TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 Currencies that are highly correlated (85%) with USD and EUR comprise 90% of our total revenues. 285% correlation with USD and EUR considered as USD and EUR correlated respectively. Expenses Expenses Expenses 13#14Durable Operational and Financial Performance Resilient performance despite many turbulences Traffic Performance (Passenger Capacity and Load Factor) EBITDAR Development 35.0% 27.5% 26.0% 27.7% 29.2% 30.4% Turkish Avg. 81.9% 83.2% 23.5% Margin 81.6% 79.1% 80.6% 74.6% 71.0% 227 18.6% 16.6% 18.3% 27.0% 16.4% 17.1% 15.3% Peers' Avg. 12.5% 67.9% Margin 202 4.2% 8.4% 182 188 170 173 -35.0% 75 128 6.3 5.4 3.7 3.3 3.0 3.1 1.6 1.9 2016 2017 2018 2019 2020 2021 2022 LTM 3Q'23 2016 2017 2018 2019 2020 2021 2022 LTM Capacity (bn ASK¹) Load Factor (%) EBITDAR (bn. USD) EBITDAR Margin 3Q'23 Peers' Avg. EBITDAR Margin² Turkish Airlines' operating performance is tested many times against a number of exceptional events in recent years: • • Strict flight restrictions and drop in global demand due to the pandemic 2018 currency crisis and volatility of the Turkish Lira exchange rate • Numerous terrorist attacks in late 2015 and 2016 across Europe TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 ASK: Available Seat Kilometers. 2 Peers include: Delta, United, American, Lufthansa Group, AF-KLM, IAG. Resilience of our operating performance reflects the following factors: • • Well analyzed international network expansion plan Successful capacity management and lean operational structure • • Strategic & efficient positioning of Istanbul as a regional hub Favorable cost base 14#15Türkiye's Tourism Potential is an Important Growth Driver As one of the most visited destinations in the World, Türkiye attracted more tourists after the pandemic International Tourism Recovery by Country¹ (Change vs. 2019) Top Tourism Destinations in the World by Country¹ Country 2022 Visitors (million) 1 France 79.4 Change (vs.2019) -13% Full recovery level 2 Spain 71.7 -14% 3 United States 50.9 -36% 4 Turkey 50.5 -1% I 5 Italy 49.8 -23% +4 compared 6 Mexico 38.3 -15% to 2017 7 United Kingdom 30.7 -22% 8 Germany 28.5 -28% 9 Greece 27.8 -11% 36% 10 Austria 26.2 -18% Full recovery 22% level Türkiye 2028 Tourism Target: 82 million visitors and 100 billion USD revenue 91% 1Q'22 2Q'22 3Q'22 4Q'22 ■2019 Direct int'l PAX in % May'22 Jun'22 Jul'22 Aug'22 Sep'22 Oct'22 Nov'22 Dec'22 Jan'23 Feb'23 Mar'23 Apr'23 May'23 Jun'23 Jul'23 Tourist arrivals to Türkiye in 9M'23 exceeded 2019 level by 9%. Türkiye; 6% Spain; 3% Mexico; -5% World; -10% Italy; -11% France; -25% Direct International Passengers to Türkiye carried by Turkish Airlines (Change vs. 2019) 23% 25% 26% 13% 1Q'23 2Q'23 I L 3Q'23 ■Exceeding 2019 direct int'l PAX TURKISH AIRLINES 1 In terms of tourist arrivals. A STAR ALLIANCE MEMBER Source: UN World Tourism Organization. 15#16Competitive Cost Base Ex-Fuel CASK1 (USC) 9M'23 Network Airlines Average 7.8 USC We have one of the lowest ex-fuel unit costs among our peers ■9M'23 9M'19 7.2 7.2 -35% 7.0 6.1 5.4 5.2 5.0 4.7 4.7 8.4 7.1 74 9.9 9.6 9.3 (9M'23 vs. 9M'19) Turkish Airlines Singapore IAG AF-KLM American Delta Lufthansa G. Passenger Capacity (ASK¹) +25% -13% -5% -7% -3% -3% -18% Number of Aircraft +25% -3% 4% -1% -3% 2% Number of Personnel +41% -16% 4% -10% 1% -5% -6% -15% During the pandemic, we continued to invest in our fleet and workforce while preserving our unit cost advantage. TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 Ex-fuel CASK: Total Costs Excluding Fuel/Available Seat Kilometers (ASK). Source: Company reports. Doing so, allowed us to capitalize on surging passenger demand and capture significant market share profitably. 16#17Strong Balance Sheet We have sound liquidity and comfortable leverage levels Liquidity Development 14.0 4,866 +4,061 Cash Flow from Operating Activities -95 Net Cash Flow from Investing Activities -1,968 Cash Flow from Financing Activities 6,864 31 Dec. 2022 Cash and Cash Eqv. & Financial Investments (mn USD) 30 Sep. 2023 Net Debt & Leverage Net Debt (bn USD) 7.8 bn USD decrease Net Debt to EBITDA 9.5x 8.5 3.9x 3.0x 3.4x 1.7x 1.1x 6.2 31 Dec. 2020 31 Dec. 2022 30 Sep. 2023 2018 2019 2020 2021 2022 LTM 3Q'23 2023 TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 Net Debt: Total Debt - (Cash & Cash eq.+ Financial Investments + Short-term PDP Receivables + Restricted Cash) Sound Liquidity and Comfortable Leverage We have ~6.9 bn USD liquidity as of September 30. LTM Net Debt to EBITDA decreased to 1.1x to its lowest level. Net debt decreased by 7.8 billion USD from its peak at the end of 2020. Deleveraging driven by operational cash generation. 17#18Current Results (3Q'23) Substantial outperformance of the pre-pandemic levels Passenger Capacity (billion ASK¹) 25% Total Revenues (million USD) Passenger ■Cargo Other 140.6 176.0 150.9 116.7 81.3 59% 15,823 13,654 1,809 9,948 2,921 1,217 7,377 4,962 13,586 2,734 10,448 8,459 1,881 4,432 2,916 9M'19 9M'20 9M'21 9M'22 9M'23 9M'19 9M'20 9M'21 9M'22 9M'23 EBITDAR EBITDAR (mn USD) ⚫EBITDAR Margin 33.9% 29.2% 30.7% 22.3% 23.7% 4,864 3,982 2,502 2,214 1,177 9M'19 9M'20 9M'21 9M'22 9M'23 TURKISH AIRLINES A STAR ALLIANCE MEMBER ASK: Available Seat Kilometers. Net Profit (million USD) 27% Exceeded 3Q'22 Net Profit 1,920| 1,515 Ninth consecutive quarter with 735 Net Profit 635 576 473 225 233 161 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 18#192023 Expectations Passenger Capacity: 17-19% higher than 2022 Costs: High-single digit pp. increase in Ex-fuel CASK compared to 2022 (Total CASK to decline) CapEx: Around 5-5.5 bn USD Gross CapEx in 2023 including aircraft, engines and other investments Fleet: 435 as of November 9 Year-end fleet expectation 441 New Int'l Routes in 2023: Network: Started: Lusaka Krakow Palermo TURKISH AIRLINES A STAR ALLIANCE MEMBER Planned: 344 Detroit destinations Osaka in 129 countries ايا TURKISH AIRLINES - 19#20TURKISH AIRLINES 1. OVERVIEW A STAR ALLIANCE MEMBER 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus 3. Execution and Growth Levers 20 20#21Aviation sector always bounced back after global crises and continued to grow RPK1 (tn) 19 14 9 Global Passenger Traffic Growth 1989 - 2004 WORLD CAGR 4.0% TK CAGR 9.1% Asian Financial Crisis 9/11 SARS Gulf Crisis 4 1989 2002 0.5% TURKISH AIRLINES 1 RPK: Revenue Passenger Kilometers. A STAR ALLIANCE MEMBER 2004 2004 - 2019 WORLD CAGR 5.7% TK CAGR 15.1% Financial Crisis 2 In terms of RPK. Historical market shares from IATA. 2033 internal analysis. Source: IATA, Airbus GMF 2022-2041. 2023 - 2033 WORLD CAGR 4.8% TK CAGR 7.6% Covid-19 Our 2.7% 2022 2019 2023 Market Share2 3.8% 2033 2033 21#22Industry Overview - Türkiye will be at the center of the aviation growth Regional Passenger Flow Development Europe--North America Europe--Middle East Africa--Europe 1.5x 1.6x 1.4x China--Europe 1.5x Europe--South America 1.6x Central America--Europe 1.4x Europe--Southeast Asia 1.3x Middle East--North America 1.7x Europe--Northeast Asia 1.1x 2019 2019-2032 Europe--South Asia 1.6x 0 100 200 300 400 500 600 700 800 900 1000 (RPK¹ bn) TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 RPK: Revenue Passenger Kilometers Source: Boeing Commercial Market Outlook 2023-2042. Air Traffic over Türkiye (vs. 2019) 2032 2042 1.6x 2.3x 22 22#23Industry Overview - Global Mega City's 2033 By 2033 more than 90% of the global mega cities will be in Turkish Airlines' network Reykjavik Helsinki Stockholm Copenhagen Manchester Vancouver Dublin O London Amsterdam Brussels Moscow Frankfurt Seattle Paris ‣ Vienna Montreal Zurich Toronto Munich Milan Chicago ▸▸ Boston San Francisco Detroit New York City Philadelphia Madrid Rome Beijing Barcelona Istanbul Seou Dallas Washington, D.C. Tokyo Atlanta Los Angeles Lisbon Casablanca 0 Kuwait City Tel Aviv Shanghai▸ Osaka Orlando Doha Dubai Houston Miami Riyadh Muscat Delhi Guangzhou ▸ Taipei Jeddah‣ Abu Dhabi Dhaka Cancun Hong Kong Mexico City Mumbai Panama Colombo Bogota Addis Ababa Lagos Bangkok Phuket ‣ Kuala Lumpur A ‣Manila Ho Chi Minh City Singapore Jakarta Lima Denpasar TURKISH AIRLINES Sao Paulo Rio de Janeiro Santiago Buenos Aires A STAR ALLIANCE MEMBER Source: Airbus, GMF 2019 Port Louis Johannesburg Cape Town Current Destinations Future Destinations Brisbane Sydney Perth Melbourne Auckland 23 23 Honolulu#24TURKISH AIRLINES 1. OVERVIEW A STAR ALLIANCE MEMBER 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus i. Summary of 2033 Targets ii. Building the Ecosystem iii. Future of Our Investment Case iv. Fleet Development v. Capacity Growth vi. Revenue Development 3. Execution and Growth Levers 24 24#25Number of Aircraft 12.5 x TURKISH AIRLINES A STAR ALLIANCE MEMBER TM Passenger Capacity (bn ASK) Passengers (mn) Cargo Carried (mn ton) 20 x 16 x 39 x + 2003 2023 2033 2003 2023 2033 2003 2023 2033 24 235+ 480+ 10.4 84+ 170+ 0.1 1.6+ 3.9 2003 65 2023 441 2033 800+ RKISH AIRLINES Revenue (bn USD) 29 x EBITDAR Margin ROIC (%) (Return on Invested Capital) Leverage (Net Debt/EBITDA) 2003 2023 2033 2003 2023 2033 2013 2023 2033 2013 2023 2033 1.8 20+ 50+ 28% 26-28% 20-25% 8.9% 14-15% 8-10% 3.0x 1-1.5x 2-2.5x 25 25#26Our Strategic Focus ડ Building Value Accretive Ecosystem for Our Stakeholders Pillars of our Strategy Sustainable Growth & Profitability Continuous focus on value creation Efficiency & Business Excellence Improving efficiency while elevating passenger experience Digitalization IIIIII Capitalizing on digital transformation Sustainability Implementing into all layers of our business processes TURKISH AIRLINES A STAR ALLIANCE MEMBER Our Stakeholders Creditors Employees Shareholders Society Customers Suppliers 26 26#27Strengthening Our Investment Case Paving the way for further value extraction embedded in our business model Leveraging our Strengths World Leading Flight Network Geographical Advantage combined with a Modern Fleet ☑ Well Positioned Main Brands and Supporting Subsidiaries ☑ Competitive Cost Base and Lean Organizational Structure Türkiye's Tourism Potential & Strong Aviation Infrastructure TURKISH AIRLINES A STAR ALLIANCE MEMBER Will lead us to the Top in World Rankings Most Prestigious Airline Air Cargo Carrier Top 3 1. Above Industry Value Creation is our #1 Goal Int'l Pax Capacity 2. Digital Experience Top 3 5-Star Airline # of Int'l Destinations 1. 27 22#28Roadmap to Our Centenary in 2033 2033 Holistic view on each of the growth and profitability drivers Fleet Growth Increased efficiency via higher proportion of new generation aircraft High density aircraft (Upgauging) Introducing Regional Jets Cabin transformation ■ Passenger aircraft to Freighter conversion Enhancing Network Depth & Breadth Far East new flight bank Ultra Long Range flights New routes in Americas and Asia Transforming our route network in Africa from multi-leg to direct flights Expanding our reach with JVs and codeshare agreements Increased Penetration in Low Cost Market ☐ ☐ AJet incorporation Focus on high growth leisure market Decreasing units costs with new operating structure Higher ancillary revenue through merchandising and unbundling Digitalization PSS1 Transformation Dynamic Pricing & Bundling Seamless omnichannel experience Investing in new financial technologies (e-wallet, PSP² infrastructure) Data driven process management Extracting Turkish Cargo Potential ☐ Network and fleet expansion ■ Doubling SmartIST capacity Introducing Logistics Ecosystem Focus on Special Cargo segment Capitalizing on the express cargo growth via Door-to-Door delivery platform (WIDECT) ☐ " ◉ ☐ Elevating Customer Experience Transforming passenger experience through standardizing cabin design, services and opening new lounges CDP3 based segmentation and customized campaigns Customer centric signature experiences TURKISH AIRLINES 1PSS: Passenger Service Systems 2 PSP: Payment Service Provider A STAR ALLIANCE MEMBER 3 CDP: Customer Data Platform 28#29Our modern fleet to be complemented with the new entries Simple fleet structure with the most common aircraft types will provide an efficient growth platform 441 ~500 Fleet Growth by 2033 ~800 -700 ~600 Current and New Orders 230-250 400-420 150-170 Planned in Strategy 82 2023-2028 2029 - 2033 Existing Firm Orders ■New Orders and Op. Leases Major Aircraft Types in Fleet¹ (2033) A320 Family -300 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 ■ Cargo Fleet ■ Current New Gen. Fleet ■ Existing Old Gen. Fleet ■Planned Acquisition B737 Family -200 B777/787 Family -150 Total Fleet 800+ New Gen. Aircraft Ratio 98% A350 Family -120 2033 Upgauging Others -30 AJet Fleet 200 +7% Airbus Boeing Split ~50%-50% (seat per aircraft) 1 Indicative representation. May change depending on the negotiations with OEMs. 29#30Passenger capacity growth will be around 7% p.a. for the next decade Growth will mainly come from frequency increases supported by addition of new destinations Targeted Passenger Capacity Growth 2023-33 ASK1 CAGR: ~7% 5-10% 480+ 3-7% 15-20% 5-10% 360+ CAGR: 4-7% CAGR: 7-10% 235+ 2023 ASK TK AJet 2028 ASK TK AJet 2033 ASK TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 ASK: Available Seat Kilometers Growth Composition % of Total Capacity Growth 23-28 28-33 Higher Frequency and Gauge 93% 90% ☑New Routes 7% 10% Future Route Additions Americas +9 Europe +22 Middle East +2 +54 Africa +8 Far East & Asia +13 30 30#31We are targeting to more than double our revenues by 2033 TURKISH AIRLINES A STAR ALLIANCE MEMBER 20+ bn USD 6-10% Revenue Development 2023-33 CAGR: ~10% 20-30% TURKISH CARGO 15-20% CAGR: 12-14% 2023 Revenue TK AJet 5-9% TURKISH CARGO 2 5-10% 5-10% 36+ bn USD CAGR: 6-9% 50+ bn USD Cargo 2028 Revenue TK AJet Cargo 2033 Revenue 31#32TURKISH AIRLINES A STAR ALLIANCE MEMBER 1. OVERVIEW 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus 3. Execution and Growth Levers i. Turkish Airlines - Main Brand ii. AJet iii. Turkish Cargo iv. Turkish Technic V. Digitalization vi. Sustainability 32 32#33Turkish Airlines - Leveraging our main brand to become the Most Prestigious Airline in the World by 2033 SUSTAINING OUR MARKET LEADERSHIP 1. # of Int'l Destinations 3.8% Market Share in RPK 2023 2033 TURKISH AIRLINES A STAR ALLIANCE MEMBER 1 RPK: Revenue Passenger Kilometers PRESTIGIOUS BRAND Top 3 Most Recognized Airlines 2023 75% Global Brand Awareness 2028 AWARDS Best Airline in Europe Skytrax APEX+ OFFICIAL AIRLINE RATING WORLD CLASS 2023 2023 2023 Most Sustainable 26 Lounges 2027 Flag Carrier Airline 83% Customer Satisfaction 2023 BUILDING ON OUR ACHIEVEMENTS 5 STAR AIRLINE SKYTRAX World's Best Airline Skytrax 2028 2028 Top 3 in Digital Experience 2026 33 33#34Turkish Airlines - Strengthening Our Network WIDE BODY Far East 2. Bank Adding a mid-day flight bank in Far East destinations leads to higher utilization and enhanced connectivity Ultra Long Haul Routes • Flights to Australia, Chile, Peru and Uruguay • • • New Routes & Frequency Increases Minimum 2 daily flight availability on North American routes Adding 9 new destinations in Americas and 13 in Far East Africa Increasing allocation of wide-body aircraft . • • NARROW BODY High Density Configuration High-density aircraft conversions to increase efficiency • • Higher rate of direct flights as the network matures • TURKISH AIRLINES A STAR ALLIANCE MEMBER Regional Jets Increasing frequency on routes in the short-haul range Improving feasibility in thin markets by lowering unit costs and break-even load factor Adding new secondary cities to our network Africa Conversion of multi-leg flights to direct Europe Minimum 2 daily flight availability on our routes to Europe 34 34#35Turkish Airlines - Taking Our Offerings to New Heights: Strategic Focus Areas Experience Design & Improvement (Product/Service Management) Standardizing services Signature experiences Customer-Centric Transformation Flow Customer Experience Stopover Program, Touristanbul CUSTOMER EXPERIENCE Customer's Voice Platform KPI Tracking (Operational & Customer) Customer Satisfaction > 85% by 2028 Opening new global lounges New business class seats and amenities Increasing its revenue share by 30% BUSINESS CLASS TURKISH AIRLINES A STAR ALLIANCE MEMBER ~1.2 bn USD (5 years) ANCILLARY REVENUE Expanding Offers Upselling and cross selling 3rd party collaborations for additional non-air services Augmenting Our Offerings LOYALTY PROGRAMS DIGITAL TRANSFORMATION ~600 mn USD (5 years) Omnichannel Sales & Marketing Diversification of sales channels Increased focus to direct engagement Seamless transition across platforms Simplicity in Corporate Services One-stop booking management CRM to CDP (Customer Data Platform) Segmentation based on behavior and value Offer customization options and real time campaigns Increasing customer lifetime value (CLV) Brand Awareness Destination focused campaigns Major events sponsorships BRAND STRENGTH ~200 mn USD (Annual) Brand Perception - Prestige NPS (Net Promoter Score) > 42 by 2028 Brand Equity Sustained Investment Brand Ambassadorships Miles&Smiles and Corporate Club Enhanced Interaction 1.5x Membership growth 55 35#36ANADOLUJET A TRADEMARK OF TURKISH AIRLINES 1. OVERVIEW 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Strategic Focus 2. Strategy Execution and Growth Levers i. Industry Overview Turkish Airlines - Main Brand ii. iii. AJet iv. Turkish Cargo V. Turkish Technic vi. Digitalization vii. Sustainability 36 36#37AJet - Market Overview 27% 30% 2018 Low Cost Carriers (LCC) continue to gain market share both in Türkiye and Europe Türkiye LCC Market Share1 (Int'l) 40% 36% 34% 52% Türkiye-Europe Europe LCC Market Share1 40% 2019 2020 2021 2022 1 In terms of available seats (million available seats) 28.3 Türkiye Outbound LCC Capacity 35.4 26.2 15.9 2022 LCC Market Share 35% Türkiye-Middle East 2022 LCC Market 26% Share 46.7 2018 2019 2020 2021 2022 ANADOLUJET A TRADEMARK OF TURKISH AIRLINES Source: OAG 34% 31% 2013 2016 2019 2022 AJET 17% Corendon 11% Jet2 4% EasyJet 3% Other 6% Breakdown of 2022 Available Seat Capacity SunExpress 18% Pegasus 41% 37#38AJet - Increased Focus on International Operations Capacity Growth (bn ASK¹) Int'l Share 9% 13% 32% 52% 65% Key Facts and Figures 14.0 90 aircraft in fleet 16 As of 10.11.2023 mn passengers in 2022 ☑ 101 int'l 78 domestic routes 1.1 8.6 1.5 2.5 11.2 9.7 8.1 7.7 5.4 2018 2019 2020 Domestic International 25% int'l market share in Sabiha Gökçen Airport 46% dom. market share 2021 2022 Number of Passengers (mn) Int'l 6% 9% 14% 27% 38% Share 0.9 1.3 Revenue Growth (bn USD) 6.1 3.6 0.5 0.5 0.3 15.0 13.3 1.0 9.8 10.0 6.1 0.7 1.2 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Domestic International 1 ASK: Available Seat Kilometers 38 38#39AJet - Building a Growth Platform Fleet Incorporation Transformation ANADOLUJET Expanding Network PSS and Digital Transformation Ancillaries Customer Oriented Service ☐ ☐ Incorporation completed as of August 2023 New brand positioning to be announced Independently operational in 2024 ANADOLUJET A TRADEMARK OF TURKISH AIRLINES Decreasing unit costs with more efficient and high density new generation aircraft entries Increasing depth and breadth of the network ■ Penetration to high growth leisure and ethnic travel market ■ Higher proportion of online ticket sales ■ Seamless customer experience on web and mobile Generating ancillary revenue by merchandising and unbundling ■ Sale of onboard catering and Wi-Fi. Focusing on loyalty and customized product offering 39#40AJet - Timeline of the New Strategy International Expansion ☐ Fleet Renewal Digital Transformation RASK up by 20%, Ex-fuel CASK down by 20% Higher ancillary contribution Increasing utilization Simplified cost structure 2019 2020 2022 2023 13% Int'l ASK Share ANADOLUJET A TRADEMARK OF 2024 2028 35% - 65% Dom.& Int'l ASK ratio Incorporation New Brand Identity and Positioning Fully operational under the new structure 25% -75% Dom.& Int'l ASK ratio TURKISH AIRLINES 1 ASK: Available Seat Kilometers 40 40#41AJet - Fleet Renewal and Efficiency 2033 2028 2023 2022 Fleet Fleet renewal to be completed by 2029. Number of aircraft will reach to 200 in 2033, up from 94 in 2023. 2019 31 2017 37 32 64 94 150 + New generation high density aircraft will allow AJet to reduce its unit cost by c.20% and increase unit revenue by c.20%. New gen. ratio New Generation Aircraft 200 100% TURKISH AIRLINES 1 CASK: Total Costs / Available Seat Kilometers (ASK). ANADOLUJET A TRADEMARK OF 98% 37% 26% Young Fleet High Density Aircraft 10-15% lower fuel burn 9-10% CASK1 advantage 5% ex-fuel CASK saving 10-15% extra ancillary revenue potential 41#42AJet - Capacity Growth and Network Expansion Int'l Capacity Growth (bn ASK¹) 14.2 4.4x 23.3 34.7 44.2 62.4 2023 2024 2026 2028 2033 21.0 1.8x 16.3 14.9 12.6 11.5 Domestic 2023 2024 2026 2028 2033 ANADOLUJET A TRADEMARK OF TURKISH AIRLINES 1 ASK: Available Seat Kilometers. CMN CDG Network Expansion LED VKO HAJ WAW KBP LWO HRK OZH 44 Countries 80 Int'l Destinations in 2033 NQZ LYS BEG BLQ MRS FCO BCN MAD $ FRUALA SAW ESB EYD TUN ΑΥΤ Current Destinations 2033 Planned Destinations International and domestic production balance will provide an additional 7% advantage on ex-fuel CASK. IKA BGW AMN CA SSH DMM MED RUH 42 42#43AJet - Digital Transformation and Ancillary Revenue Potential Targeting to enhance margins through increasing share of ancillary revenue and direct distribution New Passenger Service System (PSS) will yield to ☐ Better inventory management, Optimized fare class management based on city pairs. 3 1-2% additional annual revenue 2 Share of Ancillary Revenue will be increased through merchandising and product unbundling. (Ancillary Revenue % of Total) 30-35% 17-22% 5-10% 2022 2024 2028 The adaption of NDC1 compatible direct distribution channels will decrease GDS2, commission and incentive expenses. The ratio of tickets sold through online channels International -50% -30% Pre-PSS Post-PSS 1 NDC: IATA's New Distribution Capability. 2 GDS: Global Distribution Systems -50% Domestic >60% -40% Total -60% Pre-PSS Post-PSS Pre-PSS Post-PSS 43 43#44......TURKISH AIRLINES 1. OVERVIEW TC-LJL BRKING 777 DO TURKISH CARGO O 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus 3. Execution and Growth Levers i. Turkish Airlines - Main Brand ii. AJet iii. Turkish Cargo iv. Turkish Technic V. Digitalization vi. Sustainability 44#45Cargo Market Overview FTK (bn) Air Cargo Traffic Over The Next Two Decades (FTK)1 2021 - 2033 World CAGR 4.1% TK CAGR 6.6% 700 2009 - 2021 World CAGR 4.5% TK CAGR 23.5% 600 500 400 300 200 100 2009 2014 1.7% 2014 2019 Covid-19 5.2% 2022 2024 2029 V 7.5-8% 2033 Our Market Share2 2034 2039 In terms of value, air cargo accounts for 35% of the global carried cargo, even though less than 1% of the total volume. As share of e-commerce in global trade increases, the express cargo segment grows faster than the general cargo. Express Cargo's traffic share rose to 21% in 2021 from 13% in 2008. Its growth pace is expected to be 80% higher than that of the general cargo. 1 FTK: Freight Ton Kilometer TURKISH CARGO 2 In terms of FTK. Historical market shares from IATA. 2033 internal analysis. Source: Boeing World Air Cargo Forecast 2022. Airbus GMF 2023. 45#46Turkish Cargo Overview Global Ranking Market Share Development (FTK)1 5. 5 5. 5.2% 5.2% 8. 5.1% 4.7% 14. 3.7% 22. 3.0% 2.5% 2.0% 1.5% 1.7% 1.7% 9.1 8.2 7.0 7.1 5.6 4.5 5.1 3.4 2.2 2.6 2.7 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M'23 Turkish Airlines FTK (bn.) Turkish Airlines Cargo Market Share (FTK) Turkish Cargo Revenue Development Counterbalancing the pandemic impact 40.4% 37.6% 20.3% 8.9% 8.8% 8.9% 10.2% 12.0% 12.8% 12.8% 11.4% 4.0 3.7 2.7 1.6 1.7 1.8 1.3 0.9 1.0 0.9 1.0 2013 2014 2015 2016 2017 2018 2019 Turkish Airlines Cargo Revenue (bn. USD) 2020 Turkish Airlines Cargo Revenue Share 2021 2022 9M'23 TURKISH CARGO 1 FTK: Freight ton kilometer. Source: IATA. Overview Flies to 132 countries / 363 destinations with 24 freighters and 409 passenger aircraft. Ranks 3rd globally in terms of FTK1 as of August 2023. Operates in SmartIST, one of the largest air cargo terminals in the world. EXCELL CELLEN CEIV FIN LOGISTICS IATA ANIMALS CEIV-EXCELLE IN LOGISTICS IATA PHARMA IN LOGISTICS CEIV EXCELLE CELLENCE IATA FRESH LENCE EXCELLE CEIV IATA LOGIS LITHIUM 2023 • Opportunities Türkiye's ideal location as a global hub and increasing trade volume Penetration into fast growing express cargo • segment • Growth opportunities in Asia through JVs and commercial partnerships Integrated solutions for intermodal transportation 46#47Turkish Cargo - Our Strategy Vision Strategic Leverage To be one of the Top 3 cargo airline by 2028 Leveraging our wide flight network and cost advantage with best-in-class customer satisfaction Leadership in Flight Network and Connectivity Strategic Pillars Leadership in Technology and Operational Excellence TURKISH CARGO 飯 Leadership in Special Cargo and Premium Products Leadership in People and Culture 47#48Turkish Cargo - Our Strategy Cargo Carried (thousand tons) 9.5+ bn USD Cargo Revenue in 2033 2015-22 CAGR Turkish Cargo 12.9% (World 2.1%) 3,900 + Increasing our reach from 104 freighter destinations to 150 by 2033. Expanding our fleet with new generation aircraft entries and P2F1 conversions. 2.3x 3,000+ 1 P2F: Passenger to Freighter 1,880 1,679 1,600+ 1,543 1,487 1,412 1,132 894 720 663 565 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2028 2033 TURKISH CARGO Doubling SmartIST capacity to 4 million tons. Introducing a logistics ecosystem through partnerships and investments in e-commerce and technology. Growing the proportion of special cargo in our overall cargo revenue from 36% in 2022 to 55% by 2033. 48#49Turkish Cargo - Strategic Focus 1 Gaining Market Share 2 Logistics Ecosystem 3 New Products and Operational Excellence Targets Targeting to sustain our above industry growth trend and profitably increase our market share 7.5%-8% widect ■ Creating a Logistics Ecosystem by entering into new business models, cooperations and JVs on the back of SmartIST's infrastructure Door-to-Door (D2D) Market Entry: Aiming to expand our operations into express cargo segment ■ Increasing profit contribution by offering end-to-end e-commerce delivery service ■ Initially targeting Turkish e- exports, then the transit market between Asia, Europe and US. 7%-7.5% 5.2% 9.6 Projects 2.6% 5.0 3.7 1.3 General Cargo 2017 2022 ■Revenue (bn. USD) 2033 2028 Market Share (FTK) Shippers Origin Air Export Import Customs Carrier Customs Express Dest. Recipient Developing new products to increase our penetration in the special cargo segment Focus in Special Cargo Segment Offering value-added services to enhance revenue mix ■ Introducing additional products to complement existing services such as TK Smart, TK Premium and TK Urgent TURKISH CARGO Airline Coop. Investments New Hub and JVs in Asia: By expanding our presence in Asia, we are targeting to gain additional market share in the fastest growing region Revenue Share of Special Cargo Segment¹ 2022 2028 2033 45- 50- 36% 50% 55% New Products IT Projects Up to 3 bn USD annual revenue contribution by 2033 1% in total cargo revenues 49#50Turkish Cargo - Extending Our Reach with Network and Fleet Expansion Cargo Fleet Size Projection Number of Destinations (Freighter Only) 2033 2028 2023 2022 2021 2020 2019 2018 21 224 20 20 2017 16 TURKISH CARGO 24 24 37 32 44 2x 150 120 100 104 88 74 2017 2019 2022 2023 2028 2033 Cargo Capacity Allocation for optimum efficiency 25 25 40-60% ratio is determined 23 61% 59% 22 22 57% 56% 57% 67% 39% 41% 43% 44% 43% 33% 2017 2019 2022 2023 2028 2033 ■Freighter ■Belly 50 50#51SmartIST is the largest Cargo Terminal in Europe 4820 Frankfurt (FRA) 6 M Tons Istanbul London 1.7 M (LHR) Tons 4 M Tons (IST) 2.2 M Tons Paris 1.9 M (CDG) Tons 2.2 M Tons 1.2 M Tons TURKISH CARGO TURKISH CARGO 2 M Tons Doha (DOH) 2.6 M Tons Singapore (SIN) Dubai (DXB&DWC) 2.1 M Tons 000 0 In 5 years 2022 (capacity) 2.9 M Tons Shanghai (PVG) 5 M Tons 2018 (handled cargo) Hong Kong (HKG) 51#52Turkish Cargo - Increasing Efficiency Through Digitalization Digital Transformation Digital Marketplaces (($) Digital Payment Channels Holistic Software Integration Digital GHAS WIDECT (Wide Direct Connect) Digital Sustainability Solutions Digital Forwarders ULD Utilization Augmented Reality in SmartIST Operations Work Order Optimization 2.0 TURKISH CARGO gog Smartdock 合自回 Cargo Track ULD Internet of Things (IoT) & Full Track and Trace 40% - ACRM (Air Cargo Revenue Management) Network Modelling & Optimization Data Driven Decision Science Artificial Intelligence/Machine Learning & Robotics Automated Warehouse Systems and Robotics Cargy Chatbot CARGY Robotic Wings - RPA ...RPA... UAV UGV Live Will be completed soon Will start soon 529 52#531. OVERVIEW TURKISH TECHNIC OL 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus 3. Execution and Growth Levers i. Turkish Airlines - Main Brand ii. Ajet iii. Turkish Cargo iv. Turkish Technic V. Digitalization vi. Sustainability 53 53#54Turkish Technic - MRO Powerhouse Largest MRO service provider in the nearby region 11 Services and Capabilities Offers services to 364 airlines from 93 countries. Main facilities located in 4 airports in Türkiye 16 wide body and 40 narrow body MRO capacity in 11 hangars 10k highly qualified personnel 1. Aircraft Maintenance " MRO support for narrow body and Revenue and Market Share Development 2.0% 1.6% 1.6% 1.6% 1.4% 1.4% 1.5% 1.5% 1.5% 1.0% 1,514 (mn USD) 950 1,061 1,109 1,217 1,321 1,275 1,045 414 305 827 226 877 168 173 375 574 188 253 203 175 166 893 936 991 1,016 1,100 762 624 702 792 900 408 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M'23 Third Party Sales Market Share Inter-Segment Sales MRO: Maintenance, Repair and Overhaul TURKISH TECHNIC APU: Auxiliary Power Unit AOG: Aircraft on ground due to technical or other reasons. wide body aircraft along with business jets in 14 types 2. Line Maintenance ■ Total of 60 stations around the globe (26 in Türkiye) 3. Component Services and Pool ◉ Repair capabilities for 16k+ types 31 workshops and 24/7 AOG support Offers pool subscriptions to 3rd parties 700 mn USD inventory 96% service level for A320, B737, A330 and B777 ■ 85%+ customer satisfaction 4. MRO for Engines (TEC) & APU 5. Cabin Conversion and IFE 6. R&D and Training Support 54 54#55TURKISH AIRLINES 1. OVERVIEW A STAR ALLIANCE MEMBER 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus 3. Execution and Growth Levers i. Turkish Airlines - Main Brand ii. Ajet iii. Turkish Cargo iv. Turkish Technic V. Digitalization vi. Sustainability 55#56Digitalization - Becoming the IT leader in the sector 3 Ability to Execute 5 Positioning of Turkish Technology 4 Challengers Global Ranking LCC Leaders 2026 FSC small Visionaries 2 Laggards medium 1 2 3 4 Source: Gartner, internal analysis. TURKISH TECHNOLOGY large Company size 5 Completeness of Vision 3. Our goal is to be a "Digital Leader" in our industry within 3 years 2019 10. 2033 1% share of R&D investment in revenue 56 56#57Digital Transformation 2 Investing in New Technologies 3 Allocating necessary Infrastructure 4 Digitalization - Our Strategy 1 R Save on cost by increasing the efficiency of our products and services with digital transformation projects 888 Improve passenger satisfaction through easy-to-use applications and lean business processes Strengthening the passenger interaction with our brand through new digital interfaces Closely following new trends in the aviation industry and increase cooperation with the international organizations Implementing new technologies that have the potential to generate income with a "time-to-market" sensitivity O Allocating the necessary system infrastructure to meet organizational growth needs Providing agility to our Business Units TURKISH TECHNOLOGY Growth as a Technology Company CRM Generating 30% of the IT revenue from third parties within 5 years שטן Reducing external dependency with internally developed applications Designing policies to attract talents for a sustainable growth 57 57#58Digitalization - Details of Our Strategic Initiatives PSS Transformation Dynamic Pricing, Offering, Bundling Mobile Oriented Seamless Experience Financial Technologies Data Driven Transformation New Passenger Service Systems (PSS) • Revenue maximization by better inventory management, customer targeting and engagement Reducing costs by simplifying order structure, distribution mix, payment and other ad-hoc functions Initiatives • Rewriting our proprietary PSS (TROYA) based on IATA's OneOrder standard • New and customized PSS for AJet Dynamic Pricing • 1.5%-2.5% annual revenue contribution • • • Optimization via Al model New Distribution Capability (IATA NDC) . • Increased control over our offers with the in-house development of the NDC ΑΡΙ Reducing indirect distribution costs (GDS) and sales friction Presenting customized product offers, bundling and merchandising via enhanced CRM capabilities Allowing 3rd party collaborations for additional non-air services Integrating the Omnichannel Model to standardize our direct sales channels (revenue share to increase from 30% to 45%) Fully online order management ⚫ Just 2 seconds of waiting time for all online transactions ⚫ Touchless boarding via kiosk, self bag-drop and biometric verification . End-to-end internet experience in airports, lounges and aircraft • • . • • Incorporated Financial Technology subsidiary in August'23. Positioning of e-wallet- based "TK Pay" as a in- house payment instrument Providing e-wallet solutions for individuals, corporate customers and sales agents Establishing our own infrastructure for Global PSP (Payment Service Provider), intermediation by directly contacting the bank for payments Increasing security and transaction success rate with transition to 3DS 2.0 • • Implementation of Al in crew planning, flight operations, customer experience Supporting decision processes with data at every stage of business processes • Increased usage of data mining tools Active Projects: 26 Upcoming Projects: 32 TURKISH TECHNOLOGY Cyber Security • • • • Ensuring Cyber Security Standardization across the Incorporation Increasing our international Cyber Security Level above 80% Established Central Identity and Authority Management System Fully implementing ISO 22301, ISO 27701, ISO 27001 58#59TURKISH AIRLINES 1. OVERVIEW A STAR ALLIANCE MEMBER 2. INVESTMENT HIGHLIGHTS 3. 2033 STRATEGY AND TARGETS 1. Industry Overview 2. Strategic Focus 3. Execution and Growth Levers i. Turkish Airlines - Main Brand ii. Ajet iii. Turkish Cargo iv. Turkish Technic V. Digitalization vi. Sustainability 59 59#60Sustainability - Our Strategy We are incorporating sustainability practices into all layers of our business MANAGEMENT FUNDAMENTALS Corporate Governance Business Ethics Legal Compliance Risk Management Customer Satisfaction Financial Performance RESPONSIBLE COMPANY Climate Change Fleet Modernization Waste Management RELIABLE OPERATOR Flight Safety and Security Employee Health and Safety Business Continuity Digitalization Customer Expectations and Behavior FAIR EMPLOYER Equal Opportunity Talent Management Gender Balance ■ Corporate Sustainability Management Sustainability Committee (Quarterly C-Level Meetings) Sub-Committees (Quarterly meetings with the unit leads) ◉ Emissions Management Corporate Social Responsibility Sustainable Practices Sustainability Strategy Investing in New Technologies ■ Higher proportion of more fuel efficient new generation aircraft (from 30% in 2023 to 98% by 2033) Increasing SAF Usage ☐ Empowering Workforce Acknowledging diversity and inclusion Committed to IATA 25by2025 Percentage Of Women In Workforce: ~47% Fair Remuneration "Equal Pay for Equal Work" TURKISH Tomorrow AIRLINES On-Board 60 60#61Sustainability - Our Priorities We set our priorities in collaboration with our external stakeholders and by considering the international standards .................TURKISH AIRLINES The Most Material Issues ◆ Flight Safety and Security + Climate Change + Employee Health and Safety * Changes in Customer Expectations and Behavior + Fleet Modernization and Development + Digitalization + Business Continuity ◆ Talent Management + Waste Management Turkish Airlines Sustainability Priorities High Material Issues + Support for the Social Development + Fair Competition + Water Management Single Use Plastic + Sustainable Catering + Noise Management * Responsible Supply Chain Management + Innovation TURKISH Tomorrow AIRLINES On-Board Material Issues + Human Related Environmental Disasters + International Crises Animal Welfare + Global Economic Crises + Biodiversity Loss 61#62Sustainability - Our Efforts Turkish Airlines has wide array of sustainability initiatives TURKISH AIRLINES Fleet Modernization ■ One of the youngest fleets in Europe with an average fleet age of 9.2 ■ Investment in new generation aircraft ■ Cabin densification AIRLINES Are you ready to offset your flight's carbon emission? We love to fly around the world but we are also aware of the environmental impact of our air travels That's why we invite you to offat your carbon Making our unique journey e CO₂ Offsetting ■ 'CO2mission' voluntary carbon offsetting program for passengers Voluntarily offsetting employee's duty flights TURKISH AIRLI COOOB0000000 TFS GREEN Sustainable Aviation Fuels ▪ Voluntary usage of sustainable aviation fuel (SAF) ■ Investment on alternative fuel research projects (Micro-Jet Project) ▪ Signatory of Global SAF Declaration Discover Carbon Neutral Flights Waste Management ■ In-cabin waste separation ▪ Zero Waste Certificate ■ Transformation to the Future Project Environmental Management ■ IATA Environmental Assessment "First airline to directly obtain the Stage 2 Certificate" ■ ISO 14001 Environmental Management System ■ 9 LEED certified buildings In-flight Practices Offering wooden toys made from FSC certified forest products ■ Reduction of all plastic covers from travel sets Sustainability Initiatives & Programs UN Global Compact ■ The Task Force on Climate Related Financial Disclosures (TCFD) Supporter ■ Carbon Disclosure Project (CDP) Climate Change Program Türkiye Sustainable Aviation Alliance TURKISH Tomorrow AIRLINES On-Board Fair Employer ■ Voluntarily supporting female employment by participating IATA's '25by2025' initiative Advancing Gender Balance 62 62#63Sustainability - Specific Focus on Fuel Efficiency TURKISH Tomorrow AIRLINES On-Board à We are committed to optimize our fuel consumption Fuel Efficiency Policy Investments in New Technologies Operational Optimization HE Infrastructure Improvement Fleet Modernization Research in Biofuels 4-D Flight Planning Flight Operations Practice (Reduction of auxiliary power unit - APU, engine out taxi, efficient take off, climb, descent profiles, shortcuts) Technical Maintenance Practices (Engine wash, aircraft weight reduction, aircraft modifications such as winglet/sharklet) Ground Operation Practices (Center of Gravity (CG) optimization, monitoring potable water uplift, weight reduction of cabin interior) ATC operations (separation, use of airspace more effectively) SESAR Project (modernization of Europe's air traffic management) Military Airspace Route Optimization Aerodrome Infrastructure (New parking areas / taxiways Assessment of Service Providers' Equipment) 63#64Sustainability - Carbon-Neutral Airline by 2050 60 50 50 10 40 Strategy to Achieve Carbon-Neutrality by 2050 Mt. CO2 Fleet Modernization and Optimization of Operations Sustainable Aviation Fuel Carbon Offsetting No Action Taken - Net Emissions Action Scenario (Reduced by Operational Changes) 30 30 20 20 10 10 No Action Taken 2050 -31% -35% -35% 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050 TURKISH Tomorrow AIRLINES On-Board Fleet Modernization and Operational Optimization New generation aircraft consume 10-20% less fuel than older ones per unit capacity. By 2033, at least 95% of our fleet will be comprised of new generation aircraft. Sustainable Aviation Fuel Sustainable Aviation Fuel (SAF) plays a key role in reducing carbon emissions. We plan to expand our current SAF usage as the availability increases globally. Carbon Offsetting Emissions that cannot be prevented will be offset voluntarily, in addition to the regulatory offsetting schemes (CORSIA, EU ETS, UK ETS). 19 64#65Sustainability - Where We Stand in the Industry Our sustainability ratings indicate continuous improvement and above-industry performance TURKISH AIRLINES CDP S&P Global Sustainable1 B 51 B- 47 B- 44 29 FTSE Russell FTSE4Good 3.2 3.3 3.5 2.7 2021 2022 Sector Average 2020 2021 ■2022 ■Sector Average -2020 ■2021 ■2022 Sector Average Rating scale: A to D- (from highest to lowest) Rating scale: 100 to 0 (from highest to lowest) Rating scale: 5 to 0 (from highest to lowest) MSCI SILVER 2023 ecovadis covadis Sustainability Rating 42 BBB BBB BB BB 53 60 60 SUSTAINALYTICS a Morningstar company 22.0 24.3 44 27.4 31.7 2020 2021 ■2022 Sector Average ■2020 2021 2022 Sector Average 2020 2021 ■2022 Sector Average Rating scale: AAA to CCC (from highest to lowest) Rating scale: 100 to 0 (from highest to lowest) Rating scale: 0 to 100 (from highest to lowest) Tomorrow On-Board 65 65#66TURKISH AIRLINES INVESTOR RELATIONS e-mail: [email protected]#67DISCLAIMER 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. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Turkish Airlines nor any of its subsidiaries or their respective affiliates nor should it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. 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