Investor Presentation · 2021. 6. 2. · Investor Presentation Company Overview 14 İzmit İzmir Kırıkkale Batman Total Capacity (mn tons) 11.3 11.9 5.4 1.4 30 Nelson Complexity

Hizmete Özel / Confidential

Investor Presentation

June 2021


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.

www.tupras.com.trJun-21Investor Presentation 2

Disclaimer

Disclaimer


Refining Market


Brent Crude Prices

www.tupras.com.trJun-21Investor Presentation 4Refining Market

$/bbl

+ OPEC ++ production cut+ Impact of Iran & Venezuela sanctions+ Escalating regional tension+ Covid 19 vaccine discovery

- Concerns on global economic development

- Covid-19 related demand drop- Storage capacity fill up

data as of 31 May 2021

63.5

55.4

31.8

18.5

29.0

40.143.4

44.8

40.8 40.242.7

49.9

54.8

62.2

65.6 64.768.7

10

20

30

40

50

60

70

80

90

1 2 3 4 5 6 7 8 9 10 11 12

5yr range 5 yr ave 2020 2021

Year Average Brent Prices ($/bbl)

2016 43.7

2017 54.3

2018 71.0

2019 64.3

2020 41.7


Global Refinery Capacity Changes


Expectations until 2024:

• 73% of net capacity additions will come from Asia & Middle East

• Net capacity and demand in Europe will remain roughly unchanged

14%

13%

32%

41%

0% 10% 20% 30% 40% 50%

Other

Africa

Middle East

Asia

Net Capacity Additions by Region

-0.3

-1.7

-0.6-0.3

-0.4

-1.0

-0.4

2.3

1.00.8

1.2

2.3

1.7

0.2

2019 2020 2021 2022 2023 2024 2025

2019-2024 Net Capacity Additions

Closures Expected Closures Openings


Middle Distillate Cracks


11.2

10.1

12.5

9.7

5.0 4.8

6.4

4.7

2.4

4.34.8

5.4

4.9 4.8

3.7 4.15.0

0

5

10

15

20

1 2 3 4 5 6 7 8 9 10 11 12

Diesel


10.4

7.9

5.8

-1.7

-3.9

-1.6-0.6

-2.3-3.3

0.5

2.23.1

3.01.8

0.91.9 2.3

-10

-5

0

5

10

15

20

1 2 3 4 5 6 7 8 9 10 11 12

Jet Fuel


5 yr between 2016-2020, data as of 31 May 2021

$/bbl


Gasoline and High Sulphur Fuel Oil Cracks


$/bbl

6.27.0

10.411.5

10.6

7.7

9.8

3.32.4

3.1

4.3 4.65.1

7.7

6.4

4.13.4

0

5

10

15

20

1 2 3 4 5 6 7 8 9 10 11 12

Gasoline

5yr range 2021 2020 5 yr ave


-6.4

-9.7

-10.7

-10.4

-12.9

-22.4

-15.8

-8.4

-4.8

-7.8 -8.1-7.1 -7.5

-5.5-3.8 -4.4

-7.4

-35

-25

-15

-5

1 2 3 4 5 6 7 8 9 10 11 12

High Sulphur Fuel Oil

5 yr range 2021 2020 5 yr ave

Hizmete Özel / Confidential www.tupras.com.trJun-21Investor Presentation 8

Heavy Crude Price Differentials to Brent ($/bbl)

-12

-9

-6

-3

0

3

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2018 2019 2020 2021

Arab Heavy

Basrah Heavy

Kirkuk

Ural

Average*

0

*Simple average of listed differentials

OPEC+ Cut Decision

Iran Sanctions

OPEC+disagreement

OPEC+ Cut Decision

Refining Market


Turkish Market


5.6 5.6

3M 2020 3M 2021

Diesel

0.9

0.6

3M 2020 3M 2021

¹Jet Fuel

Turkish Market, 3M 2021

www.tupras.com.trJun-21Investor Presentation 10Turkish Market

¹Transit flight consumption included

MillionTons

0.9 0.8

3M 2020 3M 2021

LPG

0.5 0.5

3M 2020 3M 2021

Gasoline-5.0%

-36.2%+0.6%

-8.0%


Turkey’s Net Import / Export Balance

www.tupras.com.trJun-21Investor Presentation 11Turkish Market

-3.4

2.8

-12.3

0.1

-3.1

3.2

-13.2

0.3

-3.2

2.4

-13.6

-0.4

-3.0

3.0

-8.8

0.3

-2.9

1.9

-5.9

0.4

-16 -12 -8 -4 0 4

LPG

Gasoline

Diesel

Jet

2020 2019 2018 2017 2016

ExportImportMillionTons

97%

87%

41%

Gasoline

Jet

Diesel

2020 12M

Tüpraş’ Market Share

Fuel Choice of Passenger Cars

LPG;40%

Gasoline; 20%

Diesel; 40%

LPG;40%

Gasoline; 20%

Diesel; 40%


Company Overview


Tüpraş Shareholder Structure

www.tupras.com.trJun-21Investor Presentation 13Company Overview

¹As of December 31st,2020

Foreign Ownership¹

48%

Domestic Ownership

52%

Free Float49%

Tüpraş is Turkey’s biggest industrial company and leading refiner.

Ditaş79.98%

Opet40%

Körfez Ulaştırma100%

Tüpraş Trading Ltd100%

Koç Holding77%

Aygaz20%

Opet3%

Energy Investments Inc. (SPV)51%


Tüpraş’ Refining Assets & Distribution Network


İzmit İzmir Kırıkkale Batman Total

Capacity (mn tons) 11.3 11.9 5.4 1.4 30

Nelson Complexity 14.5 7.66 6.32 1.83 9.5

Storage Capacity (mn m3) 3.0 2.5 1.3 0.3 7.0

Turkey’s petroleum product needs

Tüpraş;55%

Others; 45%

Turkey’s Storage Capacity

Tüpraş & Opet;57%

Others; 43%

İstanbul

Ankara

İzmir

Mersin

Baku

Kirkuk

OPET

Antalya Terminal19,392 m³

OPETMersin Terminal240,000 m³

OPETGiresun Terminal43,130 m³

OPETMarmara Terminal721,000 m³

İzmit

Kırıkkale

Batman

Crude Pipeline Terminal Refinery

Ceyhan

Railway

Iraq-Turkey Oil Pipeline

Baku-Tbilisi-Ceyhan Oil Pipeline

Integrated system optimization with high

complexity, procurement & logistics flexibility


Nelson Complexity of Refining Companies



Tüpraş Subsidiaries


OPET, Distribution, Tüpraş Share: 40%

• 1,769 stations as of 30 April 2021• As of March 2021 Market share: 17.9% in white products; 9.7% in black

products

DİTAŞ, Marine Transport, Tüpraş Share: 79.98%

• 3 Crude Oil Tanker: 479,765 DWT• 1 Crude Oil - Product Tanker: 51,532 DWT• 10 Product Tanker: 171,453 DWT“

Körfez Ulaştırma, Railway Transport, Tüpraş Share: 100%

• ~7% share in Turkish rail freight market• ~1.5 mn ton of product and semi-product carried in 2020.• Operates with 10 diesel locomotives and over 600 cistern wagons

Tüpraş Trading UK, Trading, Tüpraş Share: 100%

• 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


Operations


6371

76 79 81

5564

11

1414 7

14

3421

13

1010

102

310

2 2 312 12

3 3 1

2014 2015 2016 2017 2018 2019 2020

Middle East CIS Europe Africa America

Main Crude Suppliers in 2020

Crude Suppliers of Tüpraş


In 2020, Tüpraş purchased 18 different types of crude from 11 countries with gravities ranging between 20-47 API.

Operations

Crude Oil Imports by Region (%)


Annual Product Yields

www.tupras.com.trJun-21Investor Presentation 19Operations

2019

White Product Yield (%) 79.0%

Production 28.1 mn tons

API 32.0

2020



API 31.5

LPG4%

Gasoline20%

Naphtha1%

Jet17%

Diesel36%

Fuel Oil9%

Coke3%

Bitumen8%

Other2%

Light Distil.25%

Mid. Distil.53%

Black Prod.20%

Other white

2%

LPG3%

Gasoline21%

Naphtha1%

Jet12%

Diesel45%

Fuel Oil2%

Coke3%

Bitumen12%

Other1%

Light Distil.25%

Mid. Distil.57%

Black Prod.17%

Other White

1%


Q1 Product Yields


LPG3%

Gasoline19%

Naphtha3%

Jet12%

Diesel47%

Fuel Oil2%

Kok5%

Bitumen7%

Other2%

LPG Gasoline Naphtha Jet Diesel

Fuel Oil Kok Bitumen Other

Light Distil.25%

Mid. Distil.59%

Black Prod.14%

Other white

2%

Q1 2021



API 31.9

LPG4%

Gasoline21%

Naphtha1%

Jet17%Diesel

43%

Fuel Oil2%

Kok4%

Bitumen7%

Other1%

LPG Gasoline Naphtha Jet Diesel

Fuel Oil Kok Bitumen Other

Light Distil.25%

Mid. Distil.60%

Black Prod.13%

Other white

2%

Q1 2020



API 32.1

Operations


10

1

10

1

87 91

75 79

64

80

78

57

4 7

9 7

66

5

9 6

8

105 108

96 98

82 85

69

8984

65

2016 2017 2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

Capacity Utilization (%)

Crude Oil Semi Product Feedstock Total

Capacity Utilization1 (%)Quarterly Production (Mn tons)

Capacity Utilization and Quarterly Production Volume

www.tupras.com.trJun-21Investor Presentation

21

¹Capacity utilization calculation is based on 30 mn tons for Q1 2019 and onwards.

Operations

6.0

4.9

6.4

6.1

4.6

4

5

6

7

8

Q1 Q2 Q3 Q4

2017 2018 2019 2020 2021


Sales


22

• Tüpraş generated 24.5 million tons of total sales in 2020.

Operations

24.8 25.7 25.622.4 19.8

5.5 5.8 4.26.8

4.7

30.3 31.5 29.8 29.2

24.5

2016 2017 2018 2019 2020

Exports

Domestic Sales

10.8 11.3 11.9 10.4 10.6

4.5 4.5 4.94.3 2.2

2.2 2.2 2.22.3

2.3

3.4 3.5 2.91.8

2.4

2016 2017 2018 2019 2020

Bitumen

Gasoline

Jet Fuel

Diesel

Total Sales

Domestic Sales of Key Products

Customer Groups 2020mn tons

mn tons

Sales to Distributors

2020

12.7 mn tons

Total Sales, 2020

24.5 mn tons

Distributors52%

Jet8%

Other12% Export

18%

Bitumen10%

POAŞ27%

OPET30%

SHELL20%

BP14%

OTHER9%


Sales in Q1 (Million Tons)


Tüpraş generated 5 million tons of sales in Q1 2021. Despite resilient domestic demand, total sales decreased due

to İzmir maintenance.

5.1 5.0 5.2 5.24.6 4.2

1.8 2.31.0

2.1

1.6

0.8

6.97.2

6.2

7.2

6.2

5.0

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021

Total Sales

Domestic Sales Exports

2.3 2.5 2.5 2.3 2.3

0.81.0 1.0

0.8 0.6

0.4

0.5 0.5

0.50.5

0.3

0.3 0.3

0.30.2

Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021

Domestic Sales of Selected Products

Diesel Jet Fuel Gasoline Bitumen

Operations


Key FinancialsFinancials


Tüpraş and Med Refining Margins

www.tupras.com.trJun-21Investor Presentation 25Financials

6.0

8.19.3

3.7

1.3

3.65.3

4.6

1.7

-0.2

2016 2017 2018 2019 2020

Average Margins

Tüpraş Net Margin Med Margin

($/bbl)Gross

Margin

Inventory

Effect

Clean Gross

Margin

Clean NET

Margin

Net Margin

Med Margin

Q1 2020 7.1 -2.7 9.8 3.9 1.2 1.8

2020 6.4 0.0 6.4 1.2 1.3 -0.2

Q1 2021 7.7 2.5 5.2 -1.0 1.5 -0.2

1.2 0.92.1

0.71.51.8

-0.6 -1.9 -0.1 -0.2

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Average Margins

Tüpraş Net Margin Med Margin

• Ability to use heavier and sour crudes with higher complexity

• 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

Premium to the benchmark Mediterranean peers’ refining margin due to:


Income Statement


26

*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.

Financials

EBITDA realized as 1.2 bn TL in Q1 2021.

Million TLQ1 Q1

%12M 12M

%2021 2020 2020 2019

Net Sales 19,821 16,940 17% 63,244 89,601 -29%

COGS -18,294 -17,849 -2% -61,480 -84,716 27%

Gross Profit 1,527 -909 - 1,764 4,884 -64%

Operating Expenses -557 -458 -22% -2,012 -1,783 -13%

Income/Loss from other operations -1,584 -349 -353% -371 -871 57%

Operating Profit -614 -1,716 64% -619 2,230 -

Income/Loss from equity investment 10 -168 - -28 197 -

Operating Profit Before Fin. Income/Loss -604 -1,885 68% -647 2,427 -127%

Financial Income/Expense -356 -913 61% -3,149 -2,739 -15%

Profit Before Tax -960 -2,798 66% -3,795 -311 -1,119%

Net Profit (excluding minority interest) -760 -2,265 66% -2,494 526 -

EBITDA* 1,170 -1,291 - 545 4,039 -86%

Inventory Gain/Loss 1,512 -2,016 - -457 194 -

EBITDA* CCS -342 725 - 1.003 3,845 -74%


Financial Highlights


1,5751,033 851

-1,291

1,170

1,542 2,2101,495

477

1,528

3,778

956

977

1,237

1,887

738

383

5,882

8,908

4,039

545 1,170

2017 2018 2019 2020 2021

EBITDA (mn TL) Q4

Q3

Q2

Q1

869378

-375

-2,265

-760

1,457

1,027

870

-185

992

542

-155

-420

493

1,766

186

376

3,812 3,713

526

-2,494-760

2017 2018 2019 2020 2021

Net Income¹ (mn TL) Q4

Q3

Q2

Q1

41%37%

5%1% 14%

2017 2018 2019 2020 2021

Return on Average Equity2

(1) Excluding minority interest(2) Adjustments to 2020 and 2021 Q1 EBITDA are based on İzmir shutdown in Q2’20 and historically

low crack adjustments in 2H’20 and Q1’21.

1.21.3 1.0

1.1 1.01.2

1.9 2.2

2.41.9

2017 2018 2019 2020 Q1 2021

Current Ratio & Net Debt / Adj. EBITDA2

Current Ratio

Net Debt / Adjusted R. EBITDA

Financials


Balance Sheet Analysis


2.1

4.7

-3.6-2.0

-3.0

2.6

-4.7-5.4

Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21

Working Capital Requirement (Billion TL)

6.2

12.0

8.4

12.211.0

17.8

9.4

12.5

1.72.3

1.41.9

1.6

2.3

1.3 1.5

0

1

2

3

4

5

6

0

5

10

15

20

Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21

Net DebtIn Billion TL In Billion $ 13.9

11.0

2.3

6.2

0.1 0.2

1 year 1-2 years 2-3 years 3-4 years 4-5 years Over 5 years

Redemption Schedule (Billion TL)TL Hard Currency

bn TL

Financial Management

• Effective receivable risk assessmentand fully collateralized receivablesresulting in better collection period.

• Extended payment terms to our suppliers, especially for spot cargoes improves payables.

Financials


Annual Profit Before Tax Bridge (2019-2020)


2020 PBT was adversely affected from historically low crack margins, lower production and inventory losses due to Covid19

Financials


Q1 Profit Before Tax Bridge (2021-2020)


Despite the worsening crack margins compared to the previous year, Q1 2021 PBT has recovered with the positive impact of higher Brent Crude Oil prices.

Million TL

Financials


2021 Expectations


Med Complex Refining Margin 0.0 - 0.5 $/bbl

• 26-27 mt production, 26-27 mt sales and 90 - 95% capacity utilization

Tüpraş Net Refining Margin 2.5 - 3.5 $/bbl

• ~40% of capex for sustainability focused energy efficiency and environmental projects

Consolidated Capex ~200 million $


Q1 2021 Results


1.5

-0.2

-1.0 0.0 1.0 2.0 3.0 4.0

Q1

20

21

Refining Margins ($/bbl)

Med Margin Tüpraş Net Margin

65% total capacity utilization in Q1 2021

4.6 5.026 26

Production Sales

Operationals

Q1 2021 FY Target 5.0 mn tons of sales and 4.6 mn tons of production in Q1 2021

34

200

Q1 2021 FY Target

Total Capex (mn $)

34 mn $ total CAPEX in Q1 2021

65.0

0 10 20 30 40 50 60 70 80 90 100

Q12021

Capacity Utilization (%)

1.5 $/bbl net refining margin in Q1 2021

Med FY Exp

Tüpraş FY Target

Financials


Investments (Million $)


274343

484

219162

633

1,061

1,246

979

357291 301

165236

153 34

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q12021

Ongoing Projects

• Revamp of Crude Units

• FCC Modernization

• New Sulphur Units

• Energy Saving Projects

• Optimization of conversion

units

• c6.9 bn USD investments since privatization

• Reached 9.5 Nelson Complexity

• Capability to process heavier and more sour crude

Avg. 296 Mn$

Avg. 980 Mn$

Avg. 250 Mn$

Financials


Proactive in liquidity risk management & targets/limits for financial ratios:

• Net financial debt/EBITDA

• Net financial debt/Equity

Financial Policy


Financial Discipline: Risk management policies focusing on areas such as leverage, liquidity, counterparty risk, commodity, interest rate and currency exposure.

Leverage & Liquidity

• Current ratio

• Share of long-term debt

Deposit is kept within bank-based limits:

• 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.

Counterparty Risk Policy

• The fixed/floating profile of financial debt.

• Proactive management of FX risk with derivative instruments

• Zero FX exposure target.

Interest Rate & Fx

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

CommodityHedging

Policy

Financials


FX Exposure Management (31 March 2021)


Cash

336

Forward 2,324CFH* 540

Stock1,478

Receivables & Other Assets

128

Payables & OtherLiabilities

2,373

ST Financial Loans1,052

• RUP: 198• Other: 853

LT Financial Loans1,301

• RUP: 385• Eurobond: 700• Other Loans: 216

Consolidated Hard Currency Assets

Consolidated Hard Currency Liabilities

Million $

*Cash Flow Hedge

• 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.

Tüpraş continues to employ strict FX policies to mitigate currency risks stemming from volatility.

+81 mn $

Financials


Appendix


Tüpraş Balance Sheet (Million TL)


31.03.2021 31.12.2020 Diff. Diff. (%)

Current Assets 39,091 30,663 8,428 27

Cash & C. Equivalents 21,145 19,825 1,319 7

Trade Receivables 3,758 1,736 2,022 117

Derivatives 1,617 380 1,237 325

Inventories 11,385 7,701 3,684 48

Pre-paid expenses 124 234 -109 -47

Other Current Assets 1,062 788 274 35

Long Term Assets 30,696 30,505 191 1

Financial Assets & Subsidiaries 1,261 1,330 -69 -5

Fixed Assets 22,234 22,137 97 0

Derivatives 113 88 25 28

Pre-paid expenses 108 135 -27 20

Deferred Tax 5,272 5,002 269 5

Other Longterm Assets 1,708 1,813 -105 -6

Total Assets 69,787 61,169 8,619 14

Short Term Liabilities 38,870 28,341 10,529 37

Financial Loans 13,884 8,502 5,383 63

Trade Payables 20,522 14,137 6,385 45

Derivatives 159 763 -604 -79

Provisions 194 142 52 37

Other ST Liabilities 4,110 4,796 -687 -14

Long Term Liabilities 20,190 21,155 -966 -5

Financial Loans 19,774 20,743 -969 -5

Payables & Provisions 342 356 -14 -4

Derivatives 62 45 -17 37

Other LT Liabilities 12 10 1 14

Total equity attributable to equity holders of the parent 10,513 11,446 -934 -8

Minority Interests 215 226 -11 -5

Total Liabilities & Equity 69,787 61,169 8,619 14

Appendix


2021 Refinery Maintenance Schedule


Refinery UnitStartingQuarter

Duration (weeks) Purpose Status

Batman Crude Oil & Vacuum Q1 7* Seasonal Done

İzmir

Crude Unit Q1 9

Revamp / OpportunityMaintenance

Done

CCR Q1 10 Done

FCC Q1 9 Done

Isomerization Q1 10 Done

Desulphurizer Q1 11 Done

Periodic MaintenanceVacuum Q4 6 Planned

Periodic MaintenanceLube Complex Q4 6 Planned

İzmitDesulphurizer Q1 4 Periodic Maintenance Done

FCC Q1 30 Revamp Ongoing

Kırıkkale

(*) This activity started in Q4 2020. Duration figure indicates the portion carried out in 2021

Appendix


Foreign Currency Long Term

Tüpraş B+ (Negative) B2 (Negative)

Turkey BB- (Negative) B2 (Negative) B+ (Stable)

Koç Holding B2 (Negative) BB- (Stable)

Tüpraş - Ratings


93.3

99.5

97.2

95.5

95.8

0 25 50 75 100

Board

Stakeholders

Transparency

Shareholders

Overall

Tüpraş BIST Corporate Governance Rating Score

Source: Bloomberg*

Analyst Recommendations

Credit Rating Scores

Source: SAHA Corporate Governance and Rating Services Inc. (October 2020)

65%

35%

0%

Buy

Hold

Sell

*data as of 31 May 2021

Appendix


4.1 4.1 4.1 4.23.9

0

1

2

3

4

5

2016 2017 2018 2019 2020

LPG

-0.6%

Turkish Consumption 2016-2020


Source: Tüpraş and EMRA* Transit flight consumption included

22.324.2 23.6 22.5 22.7

0

14

28

2016 2017 2018 2019 2020

Diesel

-4.4%+8.3%+0.5%

MillionTons

-2.4%

4.4 4.55.0 5.3

2.4

0

4

8

2016 2017 2018 2019 2020

Jet Fuel*

-54.4%

+10.5%+2.6%

2.2 2.3 2.3 2.4 2.3

0

2

4

2016 2017 2018 2019 2020

Gasoline

-2.5%+3.0%+1.2%+3.1%

+6.5%

+1.6%+0.8% -7.4%

Appendix


Competition - STAR Refinery

www.tupras.com.tr 41Jun-21Investor Presentation

• Feasibility studies began in 2010 and construction kicked off in 2011

• Goldman Sachs has acquired a 13% stake in SOCAR Turkey for $1.3 billion.

• Total investment size 6.3 bn USD, with 3.3 bn USD credit agreement.

• Following the completion of construction late 2018, reached full capacity utilization in August 2019

Turkish Market Structure (mn tons)Timeline

Turkey Demand

Tüpraş STAR TotalTurkishMarket

Demand*Balance

LPG 1.1 0.3 1.4 4.2 -2.8

Petchem F. 0.2 2.6 2.8

Gasoline 6.1 6.1 2.4 3.7

Jet Fuel 5.2 1.6 6.8 5.3 1.5

Diesel 10.7 4.8 15.2 22.5 -7.3

Fuel Oil 1.8 1.8 0.3 1.5

Bitumen 3.1 3.1

Pet coke 0.8 0.7 1.5

Total ~30 ~10 ~40

Appendix

Source: EMRA


Competition - Regional Competition

www.tupras.com.tr 42Jun-21Investor Presentation

• 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

17 Refineries ~1.8mbd

Mediterranean Black Sea

54 Refineries ~7.8mbd

Appendix


Dividend (TL)


3.2 2.95.0 5.8 4.8 5.8

10.2

7.2

15.2 14.8

2.1

-10.0

2.5 3.0 3.9 3.91.6

6.5 6.2

13.615.2

0.0 0.0

77%

101%

79%

66%

33%

0%

64%

87%89%

102%

0% 0%

0%

40%

80%

120%

-11

-6

-1

4

9

14

19

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

EPS DPS Dividend Payout

Appendix


Tüpraş Production Flow and Yield Breakdown


• Tüpraş has 30 million tons of production capacity

• Tüpraş operates 4 refineries with an integrated system optimization program

Appendix

Key Units# of

UnitsCapacity(m3/d)

CRUDE OIL 8 99,420

VACUUM DIST. 8 42,752

HYDROCRACKER 4 18,032

ISOMERATION 3 7,804

UNIFINER REFORMER

5 16,225

KERO/DIESEL (HDS)

9 37,265

FCC 2 4,650

COKER 1 9000

NAPHTASPLITTER

8

LPG MEROX 6

Flow Diagram

LPG MEROX

NAPHTHASPLITTER

ISOMER.

VACUUMDIST.

UNIFINERREFORMER

KERO/DIESEL (HDS)

FCC

HYDROCRACKER

COKER

Bitumen

Lube Oil

FCCGasolineHDS

BenzenSaturation

Multiple distillation

and production

units

Other, 3.8%

Bitumen & Fuel Oil, 19.9%

Lube Oil, 0.5%

Diesel,

33.9%

Jet Fueloil, 16.5%

GasolineNaphtha,

22.0%

LPG, 3.5%

Jet Fuel /Kerosene


RUP 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.

Total Output ~4.25mn tonsTotal Processing ~4.50 mn tons

Appendix


European Pump Price Comparison


European and Turkey prices as of February 8th, 2021

Turkish fuel prices are highly competitive with other European countries.

Appendix

2.833.93

2.373.02

3.562.79

3.722.73

0.70

0.00

0.870.54

0.000.96

0.000.95

3.45

4.55 5.696.14 5.86

6.15 6.64 6.60

0

2

4

6

8

10

12

TR Spa. Ger UK Eu19 Fra. Gre. Ita.

Gasoline (TL/Lt)

Refinery Price Dist. Margin Tax

3.174.10

2.893.94

4.52

3.02 3.05 3.18

0.760.00

0.910.00

0.00

0.92 0.80 0.73

2.58

3.85 4.374.78

4.49 5.55 5.756.21

0

2

4

6

8

10

12

TR Spa. Ger. EU19 Gre. Fra. Ita. UK

Diesel (TL/Lt)

Refinery Price Dist. Margin Tax


Tüpraş’s Sustainability Efforts Over a Decade of Dedication

www.tupras.com.trJun-21Investor Presentation 47Appendix

Tüpraş kicked off its sustainability

program back in 2008 and

achieved many milestones in a

decade

~500energy 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

~209 MTL donations and sponsorships

76.5% increase in female

employee numbers

~1.2 mnworkhours dedicated to

OHS training

+1.3 points increase in Corporate

Governance rating

17% female representation in senior and mid-level

management

See our Sustainability Report for details

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.


2020 Achievements

www.tupras.com.tr 48

• In the Industrial Energy Efficiency (SENVER) Project Competition, KırıkkaleRefinery won the 2nd place with its "Energy Optimization Studies" project, and İzmit Refinery received the Special Jury Award with its "Hydroprocess Units Operational Energy Optimization" project.

• İzmit Refinery won the WasteManagement Award at the “Sustainable Business Awards”.

• Achieved 63.6% water recycle ratio

• Achieved 58.8% solid waste recovery

Environmental Responsibility

• In the first days of the pandemic, we quickly coordinated with 60 volunteer teachers, using 3D printers in robotic coding classes, 10 thousand visor masks were produced for healthcare workers and delivered to Provincial Health Directorates. This project was deemed worthy of the "Possible Together" award at the TİSK Common Tomorrows Possible Together Competition in December 2020.

Social Support

• 9.58 Corporate Governance Rating

• 18% Female Representation at the Board, 25% representation is targeted in the next five years

• 20% Female Representation in Upper and Mid-Level Management.

Governance Excellence

AppendixJun-21Investor Presentation


LPG and Naphtha Cracks


$/bbl

-11.4

-17.2-17.7

-19.6

-27.7-21.7

-15.9

1.6

-5.4

-11.2

-18.0

-15.2

-17.9

-11.4

-7.5 -8.1

-13.7

-40

-30

-20

-10

0

10

1 2 3 4 5 6 7 8 9 10 11 12

LPG


-0.3

-2.1

-3.2-4.1 -4.2

-7.9

-6.4

-7.6

-9.3

-6.4

-3.6

-2.0

-3.5

-1.8

0.8

-2.4-2.8

-15

-10

-5

0

5

1 2 3 4 5 6 7 8 9 10 11 12

Naphtha



Appendix


Koç Holding

www.tupras.com.tr 50

• Koç Holding is Turkey’s largest industrial and services group

• The only Turkish company in Fortune Global 5001.

Turkey’s Leading Investment Holding Company

• Leading positions with clear competitive advantages in sectors with long-term growth potential such as energy, automotive, consumer durables and finance.

Pioneer in its Sectors

6.4%

Combined Revenues /

GDP

6.7%

Total Exports / Turkey’s Exports

19.4%

Koç Group’sMarket Cap/

Borsa Istanbul100 Index

Notes : Data as of YE20(1) 2020 Report (based on consolidated revenues)

AppendixJun-21Investor Presentation


contact us: [email protected]

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