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Investor Presentation

IMO 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 6 5 43 2 1 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 07/02/20, ~3.4K vessels are either fitted or scheduled to be fitted and ~0.6K vessels are on order book to be delivered with scrubbers • Current HSFO HSFO w/ scrubbers HSFO Non-compliance VLSFO MGO LNG: requires significant investments at ports 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) February 20 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Investor Presentation Appendix www.tupras.com.tr Source: Market Reports 43
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