#1Tüpras Investor Presentation KOC November 2020#2Disclaimer This presentation contains forward-looking statements that reflect the Company management's current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Tüpraş nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation. Nov-20 Investor Presentation Disclaimer www.tupras.com.tr 2#3Refining Market#410 Jan-16 20 20 30 40 40 50 Brent Crude Prices + OPEC++ production cut + Impact of Iran & Venezuela sanctions + Escalating regional tension $/bbl 90 60 26 70 80 30.7 2016 ave. 43.7 $/bbl OPEC Production Cut Decision Apr-16 Jul-16 Oct-16 data as of 31 October 2020 Nov-20 Investor Presentation Refining Market Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 - Concerns on global economic development Covid-19 related demand drop Storage capacity fill up 81.2 2018 ave. 71.0 $/bbl 2017 ave. 2019 ave. 54.3 $/bbl 64.3 $/bbl Apr-18 www.tupras.com.tr Jul-18 Iran Sanctions 1 All waivers expired on I Oct-18 Jan-19 Apr-19 I Jul-19 31.8 67.0 55.4 Drone Attack to Iran Saudi Fields ¦ I I I 29.0 Covid-19 & OPEC+4 disagreement I ¡ OPEC++ I 18.5 Production I i Cut Decision Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 4 43.4 40.1 40.8 40.2#5Global Refinery Capacity Changes Expectations until 2024: ~80% of net capacity additions will come from Asia & Middle East • Net capacity and demand in Europe will remain roughly unchanged 2012-2018 Net Capacity Additions by Region Europe -1.41 N. America 0.22 Japan -0.95 Other Other Asia Middle East India China 2019-2024 Net Capacity Additions Asia & Middle East Other Total 2.5 1.97 1.93 1.96 2.0 0.89 1.0 2.0 M 1.50 1.7 1.3 0.51 0.9 0.9 0.2 1.5 1.30 0.49 1.68 0.5 0.98 0.0 2.10 -2 -1 0 1 2 Nov-20 Investor Presentation Refining Market -0.5 3 2019 2020 2021 2022 2023 2024 www.tupras.com.tr 5#6Middle Distillate Cracks $/bbl 25 25 20 Jet Fuel Diesel 5yr range 2019 2020 5 yr ave 5yr range 5 yr ave 2019 2020 25 17.9 16.2 16.6 14.1 12.5 12.9 16.2 14.9 15.0 15 12.2 11.4 10 10 11.2 9.7 10.1 5 6.4 4.7 4.3 5.0 4.8 2.4 20 17.0 17.4 16.4 14.8 15 14.4 13.8 13.2 10.9 11.2 12.5 13.9 10 10 10.4 10.3 7.9 5.8 5 11.3 0.5 -0.6 0 -1.6 -2.3 -1.7 -3.3 -5 -3.9 9.3 0 -10 1 2 3 4 5 6 789 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 5 yr between 2015-2019, data as of 31 October 2020 Nov-20 Investor Presentation Refining Market www.tupras.com.tr 6#7Gasoline and High Sulphur Fuel Oil Cracks $/bbl Gasoline 5yr range 2020 2019 5 yr ave 25 0 20 20 -10 High Sulphur Fuel Oil 5yr range 2020 2019 5 yr ave -3.8 -4.8 -5.0 -5.5 -5.5 -7.0 -8.6 -7.8 -8.1 -6.9 -7.5 -8.4 -9.8 -11.3 -13.4 15 14.7 -16.9 -15.8 12.1 -20 11.0 12.0 10 5 7.7 X 9.8 10.6 -22.4 10.0 9.4 7.7 9.0 6.4 4.3 4.6 5.1 -30 4.3 -22.5 -31.6 -32.9 3.3 2.9 3.1 2.4 0 1.7 1 -40 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 5 yr between 2015-2019, data as of 31 October 2020 Nov-20 Investor Presentation Refining Market www.tupras.com.tr 7#8Crude Price Differentials to Brent OPEC+ agreement on supply cuts in May and extension of initial cut target to the end of July led to sizeable narrowing in differentials in Q3. 2 0 -2 -4 -6 -8 10 -10 -12 10 Q1 Q2 33 Q3 2017 Iran Sanctions OPEC+ Cut Decision OPEC+ disagreement OPEC+ Cut Decision Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Oct Nov** Nov-20 Refining Market Investor Presentation 2018 2019 www.tupras.com.tr 2020 Arab Heavy Basrah Heavy Kirkuk - . .Ural - -Average* *Simple average of listed differentials **(Ural as of 31 October 2020) 8#9Turkish Market Tüpras#10Turkish Consumption 2016-2019 Million Tons Diesel 28 -2.4% -4.4% +8.3% 24.2 23.6 22.3 22.5 14 8 Jet Fuel 4.4 +2.6% 4.5 +6.5% +10.5% 5.3 5.0 0 2016 2017 0 2018 2019 2016 2017 2018 2019 Gasoline Fuel Oil¹ 4 2 +3.0% 2.2 +3.1% 2.3 +1.2% 2.3 2.4 2 1 0.6 -16% 0.5 -27% -3.2% 0.4 0.3 0 2016 Source: Tüpraş and EMRA 'Bunker excluded Nov-20 Investor Presentation 0 2017 2018 2019 2016 2017 2018 2019 Turkish Market www.tupras.com.tr 10#11Turkish Market, 8M 2020 Covid-19 impact on demand started to ease as of June. While Diesel seems to be in lead, Jet is lagging far behind. Million Tons 20 Diesel -1.0% 3.0 'Jet Fuel -56.2% 15 10 10 2 сл 16.05 0 2019 Gasoline 3.50 1.5 15.90 1.53 0.0 2020 2019 2020 2Fuel Oil 1.0 1 -5.1% 0.5 1.63 1.55 'Transit flight consumption included 2019 2Bunker excluded Nov-20 Turkish Market Investor Presentation 2020 -28.3% 0.26 0.18 0.0 2019 2020 www.tupras.com.tr 11#12Turkey's Net Import / Export Balance Million Tons 4 Export 2.8 0 -3.0 -4 -3.4 -8 -12 Import -16 LPG Nov-20 Investor Presentation Turkish Market 2016 2017 2018 2019 Gasoline 3.0 -12.3 www.tupras.com.tr -8.7 0.1 0.3 Diesel Jet 12#13Company Overview SAWA WATAA#14Tüpraş Shareholder Structure Tüpraş is Turkey's biggest industrial company and leading refiner. Koç Holding 77% Ditaş 79.98% Opet 40% Körfez Ulaştırma 100% Tüpraş Trading Ltd 100% Nov-20 Investor Presentation Aygaz 20% Energy Investments Inc. (SPV) 51% Tüpras Company Overview www.tupras.com.tr Opet 3% Free Float 49% Domestic Ownership 22% Foreign Ownership 78% 'As of December 31th, 2019 14#15Tüpraş's Refining Assets & Distribution Network OPET Marmara İstanbul Terminal 721,000 m3 Aoizmir İzmit Ankara Kırıkkale OPET Antalya Terminal 19,392 m3 OPET Mersin Terminal 240,000 m3 OPET Giresun Terminal 43,130 m3 Baku Baku-Tbilisi-Ceyhan Oil Pipeline Batman Iraq-Turkey Oil Pipeline + Tüpraş supplies ~55% of Turkey's petroleum product needs + Tüpraş benefits from an integrated system optimization with its high complexity, procurement and logistics flexibility Turkey's Storage Capacity Tüpraş & 57% Opet Others 43% İzmit • 11.3 MT Capacity • NC: 14.5 • Storage Capacity: 3.0 mn m³ Nov-20 Investor Presentation İzmir •11.9 MT Capacity • NC: 7.66 Storage Capacity: 2.5 mn m³ Company Overview Kirkuk Total 30 mn Capacity tons ■Railway Crude Pipeline Terminal Refinery Batman Nelson Complexity 9.5 Tüpraş Storage 7 mn m³ 3 Cap. Kırıkkale • 5.4 MT Capacity • NC: 6.32 • Storage Capacity: 1.3 mn m³ www.tupras.com.tr • 1.4 MT Capacity • NC: 1.83 • Storage Capacity:0.3 mn m³ 15#16Nelson Complexity of Refining Companies Nov-20 Investor Presentation FL9.7 CANADA 8.9 NWE 8.2 RUSSIA EAST 11.6 USA 9.7 EUROPE İzmit Refinery 14.5 TÜPRAŞ 9.5 10.4 8.9 MED 7.7 EAST ASIA 9.9 JAPAN CHINA 7.2 MIDDLE EAST F9.0 SOUTH ASIA FL7.1 LATIN AMERICA 5.0 AFRICA Company Overview www.tupras.com.tr 7.9 AUSTRALLIA 16#17Tüpraş Subsidiaries OPET, Distribution, Tüpraş Share: 40% DDEX opet DİTAŞ, Marine Transport, Tüpraş Share: 79.98% T.GONUL 1,749 stations as of 30 Sep 2020 As of Aug 2020 Market share: 20.1% in white products; 22.3% in black products Körfez Ulaştırma, Railway Transport, Tüpraş Share: 100% · 3 Crude Oil Tanker: 479,765 DWT • 1 Crude Oil - Product Tanker: 51,532 DWT 10 Product Tanker: 171,453 DWT" Tüpraş Trading UK, Trading, Tüpraş Share: 100% EXIB ~7% share in Turkish rail freight market ~1.8 mn ton of product and semi-product carried in 2019. Operates with 10 diesel locomotives and over 600 cistern wagons Nov-20 Investor Presentation Company Overview www.tupras.com.tr Tupras Trading Trading Office in London will be an important step into wider integration with the global energy landscape by allowing to: - Closely monitor international market opportunities - Support import and export operations ■ Create additional value from supply chain and sales activities 17#18Operations 11#19Crude Suppliers of Tüpraş In 2019, Tüpraş purchased 15 different types of crude from 8 countries with gravities ranging between 20-47 API. Nov-20 Investor Presentation Main Crude Suppliers in 2019 LA A 65 95 LA Crude Oil Imports by Region (%) Africa America Europe CIS ■Middle East 81 79 76 71 67 40 63 34 17 12 135 13 14 14 14 12 10 10 10 10 6 7 3 23 21 02 00 2012 2013 2014 2015 2016 2017 2018 2019 Operations www.tupras.com.tr 55 19#209M Product Yields 2019 9M LPG Bitumen Other 4% 8% 2% Kok Gasoline 2% Other 20% Fuel Oil white Light 11% 2% Black Prod. Distil. 21% 25% Naphtha 1% Mid. Distil. 52% Jet 17% Gasoil 35% White Product Yield (%) Production API Nov-20 Operations Investor Presentation 78.1% 21.2 mn tons 32.1 www.tupras.com.tr 2020 9M Other LPG 1% Bitumen 3% 12% Kok Other 3% Gasoline 20% Fuel Oil White 2% Black Prod. 1% Light 17% Distil. 24% Naphtha 1% Jet Mid. Distil. 58% 13% Gasoil 45% White Product Yield (%) Production ΑΡΙ 81.7% 17.3 mn tons 31.4 20#21Annual Product Yields 2018 LPG Other Asphalt 2% 3% 12% Gasoline Kok Other 20% 3% white Light Fuel Oil 7% 2% Black Prod. Distil. 21% 25% Naphtha 1% Mid. Distil. 52% Jet 19% Gasoil 33% White Product Yield (%) Production API Nov-20 Operations Investor Presentation 77.4% 25.7 mn tons 31.0 www.tupras.com.tr 2019 Asphalt Kok 8% OtherPG 2% 4% 3% Gasoline Other 20% Fuel Oil White 9% Black Prod. 2% Light 20% Distil. 25% Naphtha 1% Mid. Distil. 53% Jet 17% Gasoil 36% White Product Yield (%) Production ΑΡΙ 79.0% 28.1 mn tons 32.0 21#22Capacity Utilization and Quarterly Production Volume 5 6 80 • • Tüpraş produced 6.4 million tons in Q3 2020. Capacity utilization for Q3 2020 was 89% - supported by post-lockdown recovery as well as seasonality. Quarterly Production (Mn tons) 2016 2017 6.9 7 6.7 Q1 6.0 4.9 Q2 22 2018 -2019 2020 7.5 Q3 63 6.4 ¹Capacity utilization calculation is based on 30 mn tons for Q1 2019 and onwards. Nov-20 Investor Presentation Operations 6.9 Capacity Utilization ¹ (%) Crude Oil Semi Product Feedstock -Total 108 105 105 7 98 96 96 9 7 6 66 56 85 101 101 101 87 91 96 87 79 64 Q4 4 2016 2017 2018 2019 Q3 19 Q4 19 Q1 20 Q2 20 www.tupras.com.tr 88.5 69 85 9 Q3 20 08 22#23Sales • Tüpraş generated 29.2 million tons of total sales 2019. Total Sales mn tons 30.3 31.5 28.7 29.8 29.2 5.8 5.5 4.2 6.5 6.8 Exports 24.8 25.7 25.6 I Domestic Sales 22.2 22.4 mn tons 2015 2016 2017 2018 2019 Domestic Sales of Key Products Total Sales, 2019 29.2 mn tons Customer Groups 2019 Other LPG 6% Export 23% 3% Jet 9% THY Opet 5% Distributors 46% OTHER 3.5 2.9 10% POAŞ 3.4 BP 2.9 2.2 1.8 27% 2.2 2.2 2.3 13% Bitumen 2.0 4.9 4.5 4.5 4.3 Sales to Gasoline 4.8 Distributors 2019 Jet Fuel 10.8 11.3 11.9 9.2 10.4 13.3 mn tons Diesel SHELL 19% 2015 2016 2017 2018 2019 OPET 31% Nov-20 Operations Investor Presentation www.tupras.com.tr Bitumen 6% Military 2% 23#24Financials 41#25Refining Margin Premium to the benchmark Mediterranean peers' refining margin due to: $/bbl Tüpraş Net Margin • Ability to use heavier and sour crudes with higher complexity 3.2 2.5 1.9 1.7 • Access to a wide range of cheaper sources of crude oil • Close proximity to major suppliers reduces transport costs • Lower cost basis and more efficient energy usage Ability to produce a broad range of refined products with higher value added • Direct pipeline connections with domestic clients Nov-20 Financials Investor Presentation 6.5 6.0 4.8 Mediterranean 9.3 8.1 5.3 4.6 4.0 3.7 1.7 1.5 -0.2 2013 2014 2015 2016 2017 2018 2019 2020-9M Med Complex Month Annual $/bbl 5.5 4.8 5.4 4.0 4.6 2.9 2.0 1.2 1.7 2.0 1.7 -0.2 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 www.tupras.com.tr 25#26Tüpraş and Med Refining Margins 10 10 8 6420Ņ -2 8.1 5.3 2017 12M Average Margins Tüpraş Net Margin Med Margin 9.3 4.6 3.7 3.7 2.9 1.7 1.5 2018 12M 2019 12M 2019 9M -0.2 2020 9M Gross ($/bbl) Margin Inventory Effect Clean Gross Clean NET Margin Margin Net Margin Med Margin 2020 Q3 6.7 2.9 3.8 -0.8 2.1 -1.9 2020 9M 6.7 -0.2 7.0 1.7 1.5 -0.2 2019 Q3 9.1 -1.4 10.6 5.4 4.0 3.3 2019 9M 9.0 -0.1 9.1 3.8 3.7 2.9 Nov-20 Financials Investor Presentation www.tupras.com.tr 26#27Income Statement EBITDA realized as 977 mn TL in Q3 2020. Q3 Q3 9M 9M Million TL Net Sales % % 2020 2019 2020 2019 17,035 23,309 -27% 43,254 67,970 -36% COGS -15,845 -22,152 28% -42,083 -64,150 34% Gross Profit 1,190 1,157 3% 1,171 3,820 -69% Operating Expenses -500 -451 -11% -1,477 -1,244 -19% Income/Loss from other operations -492 -98 -400% -933 -407 -129% Operating Profit 199 608 -67% -1,239 2,169 -157% Income/Loss from equity investment 78 63 25% -147 172 -186% Operating Profit Before Fin. Income/Loss 277 671 -59% -1,386 2,341 -159% Financial Income/Expense -833 -817 -2% -2,297 -2,214 -4% Profit Before Tax -556 -146 -280% -3,683 127 -2995% Net Profit (excluding minority interest) -420 -155 -170% -2,870 340 -945% EBITDA* Inventory Gain/Loss EBITDA * CCS 977 956 2% 163 3,301 -95% 1,439 -692 -308% -585 283 -306% -463 1,648 -128% 747 3,018 -75% *On CMB reports. EBIT includes extra items such as FX impacts of trade receivables and payables. In our EBITDA calculation. FX related items are excluded from EBIT as customary in international practices. Nov-20 Investor Presentation Financials www.tupras.com.tr 27#28Financial Highlights EBITDA (mn TL) Q4 Net Income (mn TL) Q4 8,908 Q3 3,812 3,713 Q3 Q2 493 Q2 1,887 ☐ Q1 992 1,766 Q1 5,882 1,793 1,457 542 526 1,237 803 3,778 4,039 186 1,027 581 3,396 1,528 869 870 738 331 378 -2,870 79 956 1,505 -375 -155 1,542 2,210 163 867 1,495 -2,265 1,575 977 688 1,033 851 335 477 -185 -420 -1,291 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Current Ratio & Net Debt / R. EBITDA Return on Average Equity² Current Ratio Net Debt/ R. EBITDA Net Debt/ R. EBITDA CCS 19.7 о 41% 37% 22% 11.3 5% 0 -24% 2.1 1.2 1.9 2.2 1.1 1.2 1.3 2.1 1.1 1.1 1.3 1.0 2016 2017 2018 2016 2017 2018 2019 Q3 2020 2019 Q3 2020 Nov-20 Investor Presentation Financials www.tupras.com.tr 1) Excluding minority interest 2) Calculation based on rolling net income 28#29Balance Sheet Analysis Net Debt -In Billion $ bn TL 20 In Billion TL 15 17.8 bn $ 6 5 7.2 10 12.0 12.2 11.0 8.4 3 6.1 6.2 2 5 2.3 2.3 1.7 1.9 1.7 1.6 1 1.4 0 Dec-16 Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 -0.2 Working Capital Requirement (Billion TL) 2.1 4.7 2.6 -2.0 -3.0 -3.6 Dec-16 Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Nov-20 Investor Presentation Financials Redemption Schedule (Billion TL) 12.1 | TL Hard Currency 5.6 2.2 1.4 0.2 1 year 1-2 years 2-3 years 3-4 years 4-5 years Over 5 years www.tupras.com.tr Proactive Financial Management Utilized ample liquidity in the market to increase the share of TL in our borrowing and extended maturities. • Lower rates achieved in new loans, re-negotiated some of the existing loans with better rates. 29#30Q3 Profit Before Tax Bridge (2019-2020) Inventory gain was off set by weaker crack margins and narrower differentials as well as higher fx loss leading to decline in PBT compared to Q3 2019. Million TL -146 2,131 -1,336 -486 -556 -440 -148 -130 Q3 2019 PBT Inventory Impact Crack Margin Differential FX impact Production Other Q3 2020 PBT Nov-20 Financials Investor Presentation www.tupras.com.tr 30#31Annual Profit Before Tax Bridge (2018-2019) 2019 PBT was lower mainly due to narrow differentials, weaker crack margins and natural gas price hikes. Million TL 3,724 468 -1,723 -1,114 -912 -587 -311 -431 461 -198 2018 Production Differentials Crack Margin Energy Costs RUP Maintanence Interest Expense FX & Inventory Other 2019 Nov-20 Financials Investor Presentation www.tupras.com.tr 31#32Dividend (TL) 20 18 16 14 77% 12 10 8 6 4 EPS DPS Dividend Payout 101% 79% 66% 33% 5.8 5.0 4.8 2 3.9 3.9 3.2 2.9 3.0 2.5 5.8 64% 10.2 89% 87% 7.2 6.5 6.2 102% 120% 80% 15.2 14.8 15.2 13.6 40% 0% 1.6 2.10% 0.0 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Nov-20 Financials Investor Presentation www.tupras.com.tr 32#33Investments (Million $) • c6.7 bn USD investments since privatization Reached 9.5 Nelson Complexity Capability to process heavier and more sour crude Avg. 278 Mn$ 628 400 355 274 186 177 Avg. 943 Mn$ 1213 974 959 Avg. 207 Mn$ 344 213 185 69 138 157 69 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Nov-20 Financials Investor Presentation www.tupras.com.tr 9M • Ongoing Projects Revamp of Crude Units • FCC Modernization • New Sulphur Units • . Energy Saving Projects Optimization of conversion. units 33#349M 2020 Results 9M 2020 Refining Margins ($/bbl) Med FY Exp Tüpraş FY Target -0.2 Med Margin 9M 2020 Capacity Utilization (%) 80.9 80.9% total capacity utilization in 9M 2020 0 20 40 60 80 100 9M Operationals FY Target 18.2 mn tons of sales and 17.3 mn tons of production in 9M 2020 22 23 1.5 I Tüpraş Net Margin 17.3 18.2 -1.0 0.0 1.0 2.0 3.0 4.0 1.5 $/bbl net refining margin in 9M 2020 Nov-20 Financials Investor Presentation www.tupras.com.tr Production Sales Refining Capex (mn $) 69 mn $ refining CAPEX in 9M 2020 115 69 9M 2020 Target 34#35Tüpraş Balance Sheet (Million TL) 30.09.2020 31.12.2019 Diff. Diff. (%) Current Assets 25,054 27,919 -2,865 -10 Cash&C. Equivalents 10,891 10,652 239 Trade Receivables 4,676 4,788 -112 -2 22 Derivatives 1,064 304 760 250 Inventories 7,234 9,469 -2,235 -24 Pre-paid expenses 224 237 -13 -6 Other Current Assets 965 2,470 -1,504 -61 Long Term Assets 28,560 27,593 968 4 Financial Assets & Subsidiaries 1,129 1,363 -234 -17 Fixed Assets 20,785 20,587 198 1 Derivatives 123 99 25 25 Pre-paid expenses 124 199 -75 -38 Deferred Tax 4,753 3,768 986 26 Other Long Term Assets 1,646 1,578 69 4 Total Assets 53,614 55,512 -1,897 -3 Short Term Liabilities 21,890 28,120 -6,230 -22 Financial Loans 7,220 5,178 2,042 39 Trade Payables 9,351 17,816 -8,465 -48 Derivatives Provisions Other ST Liabilities 147 79 68 86 292 117 175 150 4,879 4,930 -51 -1 Long Term Liabilities 21,854 14,255 7,599 53 Financial Loans Payables & Provisions 21,440 13,898 7,542 54 346 316 29 9 Derivatives 57 32 25 78 Other LT Liabilities 11 9 3 30 Total equity attributable to equity holders of the parent 9,663 12,963 -3,300 -25 Minority Interests Total Liabilities & Equity 207 53,614 174 34 19 55,512 -1,897 -3 Nov-20 Financials www.tupras.com.tr Investor Presentation 35#36Leading Corporate Governance Score Tüpraş BIST Corporate Governance Rating Score Credit Rating Scores Overall 95.8 Foreign Currency Fitch Ratings MOODY'S S&P Global Long Term Ratings Shareholders 95.5 Tüpraş Turkey B+ (Negative) B2 (Negative) Koç Holding BB- (Negative) B2 (Negative) B2 (Negative) B+ (Stable) BB- (Stable) Transparency 97.2 Stakeholders Board 0 25 50 50 99.5 93.3 75 100 Source: SAHA Corporate Governance and Rating Services Inc. (October 2020) Nov-20 Investor Presentation Financials www.tupras.com.tr Analyst Recommendations 19% Buy 50% Hold 31% ■Sell Source: Bloomberg 36#37Financial Policy Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty risk, commodity, interest rate and currency exposure. Leverage & Liquidity Proactive in liquidity risk management & targets/limits for financial ratios: • Net financial debt/EBITDA Net financial debt/Equity • Current ratio • Share of long term debt Counterparty Risk Policy Deposit is kept within bank-based limits: Interest Rate & Fx • Nov-20 • Credit rating assessment and strong capital base. . • • Cap on the maximum deposit allocated to a single bank. Threshold for deposits subject to banks shareholders' equity. The fixed/floating profile of financial debt. Proactive management of FX risk with derivative instruments • Zero FX exposure target. Inventory Hedging Policy: • Operational hedge: Optimum stock policy & forward pricing mechanism. Financial hedge: Expected inventory exposure for the year end is hedged by using derivatives. Hedging ratio increasing throughout the year. Crack Margin Hedging Policy: . • Financial hedge: Crack margin (gasoline, diesel, jet fuel, fuel oil) risk mitigation by using derivatives. Hedge ratio between %0-%50 with up to 1 year hedge tenor . Commodity Hedging Policy • Financials Inestor Presentation www.tupras.com.tr 37#38FX Exposure Management (30 September 2020) Tüpraş continues to employ strict FX policies to mitigate currency risks stemming from volatility. A significant portion of the Group's crude oil and refined product purchases are denominated in US Dollars. In addition, the Group finances its capital expenditures mostly through borrowings denominated in US Dollars. • Natural Hedge: The Group is able to mitigate some of the impact of volatility in exchange rates through natural hedges: crude oil and refined product inventories are US Dollar denominated assets. ⚫ Cash flow Hedge: RUP Facility financing loans designated as hedging instruments of highly probable export revenues. As a general Koç Holding financial policy, Group companies are allowed to keep foreign exchange positions within certain limits. Consolidated Hard Currency Assets Cash 1,082 Receivables & Other Assets 63 Stock 932 Forward 584 CFH* 647 Consolidated Hard Currency Liabilities Million $ +21 mn $ Payables & Other Liabilities 1,074 ST Financial Loans 458 • RUP: 170 • Other: 288 LT Financial Loans 1,755 RUP: 449 Eurobond: 700 Other Loans: 607 Nov-20 Investor Presentation Financials www.tupras.com.tr *Cash Flow Hedge 38#39Tüpras Tüpras Tüpras Tüpraş Tüpraş Tüp Tüpraş as Appendix#402020 Refinery Maintenance Schedule Refinery Unit Quarter Duration (weeks) Status Q1 10-12 Completed Batman Plt 100/1100 Crude Oil & Vacuum 2019 Q4-2021 Q1 8 Planned U-100 Crude Q1 9* Completed U-9200 CCR Q1 3 Completed U-4000 FCC Q4 60 İzmir U-9200 CCR 04 7 U-9600 Isomerization Q4 OD Planned Postponed to 2021 Postponed to 2021 U-9900 MQD Q4 7 Postponed to 2021 Plt-6 Desulphurizer İzmit Plt-5 Crude &Vakum Plt-47 Hydrocracker Plt-147 Hydrocracker $ ཏྱཾ ཛྱ བྱ 04 4 Postponed to 2021 Q4 2 Planned Q4 2 Q4 4-5 Planned Completed Kırıkkale * This activity had started in Q4-19. Duration figure indicates the portion carried out in 2020 Nov-20 Investor Presentation Appendix www.tupras.com.tr 40#412020 Expectations(*) Med Complex Refining Margin ~-0.5 $/bbl Weak outlook for mid-distillate cracks • Ural-Brent differential slightly wider compared to 2019 Tüpraş Net Refining Margin ~1.0 $/bbl • Weak performing mid-distillate cracks Strong HSFO and relatively resilient gasoline cracks • ~22 mt production, ~23mt sales and 75 - 80% capacity utilization Refining Capex ~115 million $ • Process improvement projects *Due to the ongoing negative impact of the Covid-19 outbreak on petroleum products demand globally and significant deterioration in crack margins due to the elevated global product inventories, our 2020 expectations were revised. Nov-20 Investor Presentation Appendix www.tupras.com.tr 41#42Competition - STAR Refinery Timeline Turkish Market Structure (mn tons) Turkish 11411 Turkey Demand Tüpraş STAR Total Market Balance Demand LPG 1.1 0.3 1.4 4.1 -2.7 Petchem F. 0.2 2.6 2.8 Gasoline 6.1 6.1 2.4 3.7 • Feasibility studies began in 2010 and Jet Fuel 5.2 1.6 6.8 5.2 1.6 construction kicked off in 2011 Diesel 10.7 4.5 15.2 26.5 -11.3 • Goldman Sachs has acquired a 13% stake in SOCAR Turkey for $1.3 billion. Fuel Oil 1.8 1.8 1.3 0.5 Bitumen 3.1 3.1 3.1 • Total investment size 6.3 bn USD, with Pet coke 0.8 0.7 1.5 4.6 -3.1 3.3 bn USD credit agreement. • Following the completion of construction late 2018, reached full Total ~30 ~10 ~40 capacity utilization in August 2019 Nov-20 Investor Presentation Appendix www.tupras.com.tr 42#43Competition - Regional Competition Tüpraş competes with 71 refineries in the Mediterranean and Black Sea markets. Mediterranean regional product balance is also affected from Middle East, North West Europe and Asia flows Mediterranean Black Sea Portugal France Croatia Spain Italy Albani Greece Turkey Morocco Algeria Tunisia Moldova Ukraine Romania Bulgaria Syria Israel Libya Egypt 54 Refineries ~7.8mbd Nov-20 Investor Presentation Appendix www.tupras.com.tr Turkey 17 Refineries ~1.8mbd Russia Georgia 43#44IMO 2020: Changes in Bunker Specification and Its Effects Beyond 2020 Current Outlook 4.0 3.5 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 HSFO replacement expectations -0.6 -0.5 1.3 -1.1 Current compliant fuels • Marine Gasoil (Diesel): Easiest solution as it is already available • Very Low Sulphur Fuel Oil (VLSFO): Either through FCC with sweet crudes or by blending • Scrubbers: As of 17/07/20, ~3.9K vessels are either fitted or scheduled to be fitted and ~0.5K vessels are on order book to be delivered with scrubbers • Current HSFO HSFO w/ scrubbers HSFO Non-compliance VLSFO MGO LNG: requires significant investments at ports 6 5 43 2 1 0 Long term outlook for marine fuels Compliant HSFO Non-compliant HSFO VLSFO MGO LNG Demand shift beyond 2020 • VLSFO is the initial choice, followed by MGO • Fuel choice might change through the years as availability & compatibility issues get resolved • Compliant HSFO use grows as scrubber numbers rise from ~2K after Jan 1st, 2020 (some ports started bans on open-loop scrubbers thus this projection might change) Nov-20 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Investor Presentation Appendix www.tupras.com.tr Source: Market Reports 44#45Tüpraş Production Flow and Yield Breakdown • Tüpraş has 30 million tons of production capacity Tüpraş operates 4 refineries with an integrated system optimization program # of Capacity Key Units Units (m³/d) CRUDE OIL 8 99,420 Flow Diagram LPG MEROX LPG, 3.5% Gasoline Naphtha, 22.0% VACUUM DIST. 8 42,752 HYDROCRACKER 4 18,032 ISOMER. NAPHTHA SPLITTER Benzen Saturation UNIFINER REFORMER ISOMERATION 7,804 Jet Fueloil, 16.5% UNIFINER 5252 5 16,225 5252 REFORMER 5252 KERO/DIESEL (HDS) 5254 KERO/DIESEL 9 37,265 (HDS) 5252 FCC Diesel, FCC Gasoline HDS 33.9% FCC 2 4,650 VACUUM DIST. COKER 1 9000 Multiple distillation HYDROCRACKER ΝΑΡΗΤΑ SPLITTER and production units Lube Oil LPG MEROX 6 COKER Bitumen Lube Oil, 0.5% Bitumen & Fuel Oil, 19.9% Other, 3.8% Nov-20 Investor Presentation Appendix www.tupras.com.tr 45#46RUP Feedstock and Production • Residuum Upgrade Plant (RUP) was completed in 2015 and it is the main conversion unit of Tüpraş. First periodic maintenance was completed in Q2 2019. Nov-20 Investor Presentation Appendix Natural Gas ~0.25 mt Vacuum Resid ~1.2 mt Atm. Resid ~3.0 mt Total Processing ~4.50 mn tons www.tupras.com.tr Diesel 2.883 Gasoline 522 LPG 69 PetroCoke 690 Sulphur 86 Total Output ~4.25mn tons 46#47European Pump Price Comparison Turkish fuel prices are highly competitive with other European countries. Gasoline (TL/Lt) Refinery Price ■Dist. Margin Tax 12 12 10 8 6.64 6.60 6.15 6.14 5.86 4.55 6 5.69 3.45 Diesel (TL/Lt) Refinery Price ■Dist. Margin Tax 12 10 60 6.21 4.49 5.55 5.75 4.78 3.85 4.37 2.58 4 0.00 0.70 0.00 -0.00 0.54 0.96 0.95 0.00 0.00 0.00 0.76 0.91 0.92 0.80 0.73 0.87 4.52 2 3.93 2 4.10 3.56 3.72 3.94 2.83 3.02 3.17 2.79 2.73 2.89 3.02 3.05 3.18 2.37 0 TR Spa. Ger UK Eu19 Fra. European prices as of 16th December - Turkeys prices as of 24th December 2019 Nov-20 Investor Presentation Appendix Gre. Ita. www.tupras.com.tr TR Spa. Ger. EU19 Gre. Fra. Ita. UK 47#48Tüpraş's Sustainability Efforts Over a Decade of Dedication Tüpraş kicked off its sustainability program back in 2008 and achieved many milestones in a decade ~500 energy efficiency projects leading to ~35,000 TJ saving and 2.4 mt CO2 reduction 11.5% increase in solid waste recovery 20.7 points drop in Energy Intensity 45.5% decrease in fresh water usage From our investment decisions to our working methodology, we placed sustainability at the forefront of our operations, as a core management aspect. Accordingly, we adopted the UN Sustainable Development Goals (SDGs) as a significant guidance mechanism seeking creative solutions to global challenges. ~209 MTL donations and sponsorships +1.3 points increase in Corporate Governance rating 76.5% increase in female employee numbers ~1.2 mn workhours dedicated to OHS training 17% female representation in senior and mid-level management Nov-20 Investor Presentation Appendix www.tupras.com.tr See our Sustainability Report for details 48#492019 Achievements Environmental Responsibility Social Support Tüpraş ENERJIM Governance Excellence • Tüpraş won the first and jury special awards in Energy Efficiency category of Industry Project Competition. • Kırıkkale Refinery New Power Plant project was selected as the "Project of the Year" at the ICCI International Energy and Environment Fair and Conference. • Achieved 69.6% water recycle ratio • Achieved 69.5% solid waste recovery ~12,000 students have received robotic coding training within Our Energy to the Future; I Code, Model, Produce CSR Project. 80% of ex-crude procurement activities were conducted through local businesses. • 9.50 Corporate Governance Rating • 18% Female Representation at the Board, • 17% Female Representation in Upper and Mid-Level Management. Nov-20 Investor Presentation Appendix www.tupras.com.tr 49#50Koç Holding . Turkey's Leading Investment Holding Company Koç Holding is Turkey's largest industrial and services. group in terms of revenues, exports, employees, taxes paid and market capitalization • The only Turkish company in Fortuna 500¹. • 26% CAGR in consolidated profit2 the last five years Pioneer in its Sectors Leading positions with clear competitive advantages in sectors with long-term growth potential such as energy, automotive, consumer durables and finance. Notes Data as of YE19 (1) 2019 Report (based on consolidated revenues) (2) In TL terms between 2015-19 Nov-20 Investor Presentation Appendix www.tupras.com.tr 8% 9% Combined Revenues/ GDP Total Exports / Turkey's Exports 15% Total Market Cap in Borsa Istanbul Koc 50#51Investor Presentation Tüpras Koç Latest Webcast contact us: [email protected] Sustainability Report