1Q19 Earnings Presentation

10

22 1 6 1 11

36

-30

-5

20

45

Turcas KuyucakGeothermal Gross

Profit

Management Feesand Usufruct

CertificateRevaluation Gains

Deferred Tax Holding&TurcasKuyucak Opex

Net Loss Impact ofSTAŞ

Net Loss Impact ofRTG

Net FinancingExpenses & Other

(o/w 33 MM TL is FXlosses fromfinancing)

Turcas Petrol IFRS Consolidated Net Income/Loss Bridging (1Q19)

Message from Turcas Petrol CEO

1

1Q19 General Overview

TP Net Loss

-21 MM TL

• First quarter results are supported by i) sustained positive contribution from

geothermal business, ii) USD denominated management fees (3.3 MM

USD) obtained from Shell & Turcas and iii) revaluation gains from usufruct

certificates

• Weak demand conditions in the electricity market continue to negatively impact

gas fired power plants like RWE & Turcas

• Adjusted for the impact of FX losses (33 MM TL), Turcas 1Q19 net income

would have been 12 MM TL

At a glance- 1Q19

2

>1 million daily

visitors via

1.020 fuel stations

-3

MM TL Net

Loss

193 million

kWh Generation

-9

MM TL EBITDA

22 million

kWh Generation

11.8

USc/kwh Feed -In

Tariff

11

MM TL

EBITDA

Shell & Turcas JV

RWE & Turcas JV

Kuyucak

Geothermal

91

MM TL Net Sales

237

MM TL EBITDA

Segmental Analysis

3

MM

TL

Oil Segment Energy Segment

Shell & Turcas RWE & Turcas TKG

Revenues EBITDA

Net

Income Revenues EBITDA

Net

Loss Revenues EBITDA

Net

Income

1Q19 9,009 237 -3 91 -9 -38 15 11 1

1Q18 5,274 247 55 155 6 -20 9 4 -6

24

18

1Q18 1Q19

961 922

1Q18 1Q19

174 173

1Q18 1Q19

Gasoline Sales (STAŞ) Diesel Sales (STAŞ)

Lubricants Sales (STAŞ) Onsite Market Share (2M19)

4

Shell & Turcas JV – 1Q19 Key Highlights

Source: PETDER. Market share info EMRA

ths m3

-1% y/y

-4% y/y

ths m3

ths m3

-23% y/y

#1

Shell 19.7%

Opet 18.0%

PO 18.0%

BP 9.3%

Total 5.2%

Aytemiz 4.6%

TP 3.7%

Akpet 2.4%

Others 20.3%

247 237

1Q18 1Q19

5,274

9,009

1Q18 1Q19

Net Sales EBITDA

Net Income/Loss Shell & Turcas 1Q19 Highlights

Source: STAŞ IFRS consolidated financials. EBITDA includes EBIT, depreciation, amortisation and amortisation of prepaid rent expenses

5

Shell & Turcas JV – 1Q19 Key Highlights

MM TL

MM TL

MM TL

71% y/y

• Significant increase in net sales driven by higher prices

in the absence of volume growth

• Net loss due to i) increase in operating expenses

impacted by inflation, ii) FX losses from product

sourcing, iii) higher interest expenses on TL

denominated loans due to increase in TL borrowing

rates

• Net Debt / EBITDA at a healthy level of 1.2x (100% of

debt in local currency)

-4% y/y

55

-3

1Q18 1Q19

Continuous Cash inflows from Shell & Turcas

6

Dividends & Management Fees & Preferred Dividends Received from Shell & Turcas

MM TL

51

18

45

27 31

45 53 50

15

40

57

24 36

23

14

16 13

16 10

5

201920182017201620152014201320122011201020092008

Dividends Received from Shell & Turcas Management Fees and Preferred Dividends Received from Shell & Turcas

On top of 3 MM USD

already received in

1Q19, 8 MM USD of

preferred dividends

to be received in

Jun’19

6

-9

1Q18 1Q19

155

91

1Q18 1Q19

Net Sales EBITDA

RTG Average Electricity Sales Price (TL/MWh)

Source: RWE & Turcas IFRS consolidated financials.

7

RWE & Turcas JV – 1Q19 Key Highlights

MM TL MM TL

RWE & Turcas 1Q19 Highlights

-41% y/y

• Decline in net sales ( - 41% y/y) due to lower capacity utilization impacted by weak demand conditions and higher capacity utilization at hydro power plants

• 13 MM TL capacity payments realized in 1Q19

(1Q18: 10 MM TL)

• Lower capacity utilization is not compensated by higher average electricity sales price at RTG

180 189

197 186

280

336

2014 2015 2016 2017 2018 1Q19

125

38

1Q18 1Q19

644

193

1Q18 1Q19

Electricity Generation Cash inflows to Turcas from RWE & Turcas JV

(under SHL repayment)

Gas Consumption Capacity Utilization Rate

Source: RWE & Turcas IFRS consolidated financials. Cash inflows indicate shareholder loan repayments from RWE & Turcas to

Turcas

8

RWE & Turcas JV – 1Q19 Key Highlights

MM TL

mcm %

gWh

- 70%

- 69%

8

32

7 9

20

6

2013 2014 2015 2016 2017 2018 YTD

41%

13%

1Q18 1Q19

9 14

10 13

15

1Q18 2Q18 3Q18 4Q18 1Q19

26

19 15

20 22

1Q18 2Q18 3Q18 4Q18 1Q19

Net Sales EBITDA

Electricity Generation

Source: Turcas Kuyucak financials

9

Turcas Kuyucak Geothermal (TKG) PP-1Q19 Key Highlights

MM TL

million kWh

MM TL

Turcas Kuyucak Geothermal PP 1Q19 Highlights

• Turcas Kuyucak contributing positively to

Turcas consolidated EBITDA driven by USD

based Feed-In Tariff

• Long term project finance loan repayments

serviced through free cash flow generation of

TKG

• Additional production well to be drilled with

the goal of maximizing EBITDA

11

38

1Q19 2019 Expectation

Potential Project Pipeline

10

Geothermal Energy

Turcas plans to grow in geothermal energy with the following projects:

1. Existing TKG Plant : TKG plans to drill an additional production well (8th production well) with the goal of maximizing the generation capacity and thus the EBITDA at the existing plant.

2. Manisa Concession Zone: Turcas is developing another geothermal energy project on a 4,958.68 hectares concession zone in Manisa Gölmarmara in Western Turkey. TP drilled an exploratory well in Q2 2018 and obtained operation license for 30 years, however, before proceeding with new drillings and further investment, TP will wait for the official announcement of the Ministry of Energy and Natural Resources related to the details of the Feed-In Tariff Mechanism to be applied to Geothermal investments for the period after 2020.

Oil Upstream (Denizli)

Our 2,600 m deep geothermal well (drilled 1Q-2017) in Denizli Hacıeyüplü did not yield enough thermal heat for power generation but encountered oil findings around 700 to 900 meters depth, TP completed the geological and geophysical studies in 2018 and plans to move on with seismic studies in 2019 and to drill a new (shallow) well here for oil exploration in 2020. We obtained the required Oil Exploration License from the Government Authorities on 02.05.2018.

Manisa

Gölmarmara

Geothermal Site

(Virgin)

Denizli

Hacıeyüplü Oil

Upstream Site

TKG

14

18

14 13

11

8 8

11

14

26

31

20182017201620152014201320122011201020092008

Continuous Dividend Distribution

11

Dividends Paid by Turcas

MM TL

Last 5 yr avg dividend yield: 2.5%

14 mln TL capital

gain created for

shareholders as a

proxy for dividends

via share cancellation

in Jun’18

Turcas Consolidated IFRS Summary BS & PL

12

IFRS Consolidated Financial Statements & Financing Ratios

Note: Leverage = Financial Liabilities / Total Assets, Net Leverage = Net Debt / Assets

Balance Sheet , million TL 2018 1Q19 Ytd

Cash & Cash Equivalents 86 114 34%

S -T Rec. From Rel.Parties (mostly from RTG) 19 28 50%

L -T Rec. From Rel.Parties (mostly from RTG) 70 64 -9%

Investments (STAS & RTG) 806 794 -2%

Fixed Assets (TKJ Capex Investments) 264 262 -1%

Financial Assets (FMV of Usufruct Certificates) 74 81 9%

Total Assets 1,352 1,377 2%

S - T Financial Liabilities (PF Loans for RTG & TKG) 135 140 4%

L - T Financial Liabilities (PF Loans for RTG & TKG) 615 661 7%

Equity 561 531 -5%

Total Liabilities & Equity 1,352 1,377 2%

Net Debt664 687 3%

Income Statement, million TL 1Q18 1Q19 Y/Y

Revenues (Electricity Sales) 9 15 59%

Gross Profit 6 10 65%

Other Operational Income (Net) 1 14 1369%

Operating Expenses 7 6 -10%

Operating Profit 0 18 n.m.

Income from Investments 0 7 n.m.

Income from Subsidiaries 11 -12 n.m.

Shell & Turcas 16 -1 n.m.

RWE & Turcas -5 -11 n.m.

Earnings Before Financing & Tax 11 13 13%

Net Financial Losses -35 -35 n.m.

FX Losses -35 -33 n.m.

Net Income Before Tax -24 -22 n.m.

Tax 1 1 -32%

Net Income/Loss -23 -21 n.m.

37%40% 44% 45%

55%58%

19%24%

31%35%

49% 50%

2014 2015 2016 2017 2018 1Q19

Leverage & Net Leverage

Leverage Net Leverage

680 633 641 689

561 531

1,098 1,072 1,155

1,348 1,352 1,377

62%59%

55%51%

41% 39%

0%

30%

60%

90%

0

300

600

900

1,200

1,500

2014 2015 2016 2017 2018 1Q19

Equity & Equity Financing

Equity Assets Equity/Total Assets

Thank you!

Pınar SAATCIOĞLU

Head of Investor Relations

E-mail: pinar.ceritoglu@turcas.com.tr

Phone: +90 212 259 00 00 / Ext: 1287

Contact Information