Investor Presentation - .NET Framework · 2021. 5. 7. · Investor Presentation Company Overview 15 İzmit İzmir Kırıkkale Batman Total Capacity (mn tons) 11.3 11.9 5.4 1.4 30

Hizmete Özel / Confidential

Investor Presentation

May 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.trMay-21Investor Presentation 2

Disclaimer

Disclaimer


Refining Market


Brent Crude Prices

www.tupras.com.trMay-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 30 April 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

62.265.6

64.7

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

5.04.8

6.4

4.7

2.4

4.34.8

5.4

4.9

4.83.7

4.1

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

-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 30 April 2021

$/bbl


Gasoline and High Sulphur Fuel Oil Cracks


$/bbl

6.27.0

10.411.5

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

5 yr between 2016-2020, data as of 30 April 2021

-6.4

-9.7

-10.7

-10.4

-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 Sulfur Fuel Oil

5 yr range 2021 2020 5 yr ave


-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

Heavy Crude Price Differentials to Brent ($/bbl)

www.tupras.com.tr 8

OPEC+ Cut Decision

Iran Sanctions

*Simple average of listed differentials

06/05/2021Investor Presentation

OPEC+disagreement

OPEC+ Cut Decision


Turkish Market


Turkish Market, 12M 2020

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

Covid-19 impact was felt throughout the year especially on jet demand while diesel remained resilient.

¹Transit flight consumption included

MillionTons

0.9 1.1 1.2 1.0

4.2

0.9 0.8 1.2 0.9

3.9

0

1

2

3

4

5

Q1 Q2 Q3 Q4 Total

LPG

5.2 6.1 7.0 6.7

24.9

5.6 5.3 7.4 6.8

25.2

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4 Total

Diesel +1.1%

0.5 0.6 0.7 0.6

2.4

0.5 0.50.8 0.6

2.4

0

1

2

3

Q1 Q2 Q3 Q4 Total

Gasoline

1.0 1.3 1.7 1.3

5.3

0.9 0.2 0.7 0.6

2.4

0

1

2

3

4

5

6

Q1 Q2 Q3 Q4 Total

¹Jet Fuel

-7.6%-2.5%

-54.4%

20202019


3.6 3.4

2M 2021

Diesel

0.7

0.4

2M 2021

¹Jet Fuel

Turkish Market, 2M 2021


¹Transit flight consumption included

MillionTons

0.60.5

2M 2021

LPG

0.4 0.3

2M 2021

Gasoline

-12.3%

-45.7%-4.1%

-17.9%

2021

2020


Turkey’s Net Import / Export Balance


-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

-8.7

0.3

-16 -12 -8 -4 0 4

LPG

Gasoline

Diesel

Jet

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.trMay-21Investor Presentation 14Company 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%

• 1,765 stations as of 31 Mar 2021• As of Feb 2021 Market share: 18.3% in white products; 10.5% 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.trMay-21Investor Presentation 20Operations

2019

White Product Yield (%) 79.0%

Production 28.1 mn tons

API 32.0

2020

White Product Yield (%) 81.5%

Production 23.4 mn tons

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%


10

1

10

1

87 91

75 8

7

79

64

80

78

4 7

9 7

6

9

6

5

9 6

105 108

96 98

82

96

85

69

8984

2016 2017 2018 2019 2020 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

Capacity Utilization (%)

Crude Oil Semi Product Feedstock Total

Capacity Utilization1 (%)Quarterly Production (Mn tons)

Capacity Utilization and Quarterly Production Volume

www.tupras.com.trMay-21Investor Presentation

21

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

• Tüpraş produced 6.1 million tons in Q4 2020.

• Capacity utilization for Q4 2020 was 84% - supported by domestic demand and improved cracks q-o-q

Operations

6.76.9

7.5

6.9

6.0

4.9

6.4

6.1

4

5

6

7

8

Q1 Q2 Q3 Q4

2016 2017 2018 2019 2020


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%


Key FinancialsFinancials


Refining Margin


2.5

3.2

6.56.0

8.1

9.3

3.7

1.31.7 1.9

4.8

4.0

5.3

4.6

1.7

-0.2

2013 2014 2015 2016 2017 2018 2019 2020

Tüpraş Net Margin Mediterranean

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

• 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

Financials

$/bbl


Tüpraş and Med Refining Margins

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

($/bbl)Gross

MarginInventory

EffectClean Gross

MarginClean NET

MarginNet

MarginMed Margin

2020 Q4 5.6 0.7 4.8 -0.1 0.7 -0.1

2020 12M 6.4 0.0 6.4 1.2 1.3 -0.2

2019 Q4 9.7 0.7 9.0 2.9 3.6 -1.9

2019 12M 9.2 0.1 9.1 3.6 3.7 1.7

6.0

8.19.3

3.7

1.3

3.6

5.34.6

1.7

-0.2-2

0

2

4

6

8

10

2016 12M 2017 12M 2018 12M 2019 12M 2020 12M

Average Margins

Tüpraş Net Margin Med Margin


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 383 mn TL in Q4 2020.

Million TLQ4 Q4

%12M 12M

%2020 2019 2020 2019

Net Sales 19,990 21,631 -8% 63,244 89,601 -29%

COGS -19,396 -20,566 6% -61,480 -84,716 27%

Gross Profit 593 1,065 -44% 1,764 4,884 -64%

Operating Expenses -535 -540 1% -2,012 -1,783 -13%

Income/Loss from other operations 562 -464 221% -371 -871 57%

Operating Profit 620 61 912% -619 2,230 -128%

Income/Loss from equity investment 120 25 383% -28 197 -114%

Operating Profit Before Fin. Income/Loss 739 86 760% -647 2,427 -127%

Financial Income/Expense -852 -525 -62% -3,149 -2,739 -15%

Profit Before Tax -113 -439 74% -3,795 -311 -1,119%

Net Profit (excluding minority interest) 376 186 102% -2,494 526 -574%

EBITDA* 383 738 -48% 545 4,039 -86%

Inventory Gain/Loss 127 -89 -242% -457 194 -336%

EBITDA* CCS 256 827 -69% 1.003 3,845 -74%


Financial Highlights

www.tupras.com.tr

May-21Investor Presentation 27Financials

3351,575

1,033 851

-1,291

688

1,542 2,2101,495

477

867

1,528

3,778

956

977

1,505

1,237

1,887

738

383

3,396

5,882

8,908

4,039

545

2016 2017 2018 2019 2020

EBITDA (mn TL) Q4

Q3

Q2

Q1

79

869378

-375

-2,265

331

1,457

1,027

870

-185

581

992

542

-155

-420

803

493

1,766

186

376

1,793

3,812 3,713

526

-2,494

2016 2017 2018 2019 2020

Net Income¹ (mn TL) Q4

Q3

Q2

Q1

22%

41%37%

5% 1%

2016 2017 2018 2019 2020

Return on Average Equity²

1.11.2

1.3 1.0

1.12.1

1.2

1.9 2.2

2.4

2016 2017 2018 2019 2020

Current Ratio & Net Debt / Adj. EBITDA2

Current Ratio

Net Debt / Adjusted EBITDA

(1) Excluding minority interest(2) Adjustments to 2020 EBITDA are based on inventory loss, İzmir shutdown in Q2’20, historically low crack adjustment in 2H’20.


Balance Sheet Analysis

28

-0.2

2.1

4.7

-3.6

-2.0-3.0

2.6

-4.7Dec-16 Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20

Working Capital Requirement (Billion TL)

6.1 6.2

12.0

8.4

12.211.0

17.8

9.4

1.7 1.72.3

1.41.9

1.6

2.3

1.30

1

2

3

4

5

6

0

5

10

15

20

Dec-16 Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20

Net Debt

In Billion TL In Billion $

8.5

12.4

2.2

5.7

0.1 0.3

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 bn $

Financial Management

• Supplier financing with fully collateralized receivables resulted in early collections

• Extended payment terms to our suppliers, especially for spot cargoes which have improved payables

Financials www.tupras.com.trMay-21Investor Presentation


Q4 Profit Before Tax Bridge (2019-2020)

29

Million TL

Despite the narrower crude oil differentials and worsening crack margins, Q4 2020 PBT was supported with TL appreciation and inventory gains.

www.tupras.com.trFinancialsMay-21Investor Presentation


Annual Profit Before Tax Bridge (2019-2020)

www.tupras.com.tr 30

Million TL

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

May-21Investor Presentation Financials


2021 Expectations

www.tupras.com.tr06/05/2021Earnings Presentation 31

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 $


1,3

1.0

-0.2

-0.5

Tüpraş Margin12M 2020

Tüpraş FYTarget

Med Margin Med MarginExp.

Refining Margins ($/bbl)

12M 2020 Results


81.8 % total capacity utilization in 12M 2020

23.4 24.522 23

Production Sales

Operationals

12M 2020 TüpraşFY Target

24.5 mn tons of sales and 23,4 mn tons of production in 12M 2020

113 115

12M 2020 Target

Refining Capex (mn $)

113 mn $ refiningCAPEX in 12M 2020

81.8

0 20 40 60 80 100

12M2020

Capacity Utilization (%)

1.25 $/bbl net refining margin in 12M 2020

Tüpraş FY Target

75%-80%


Investments (Million $)


274355

400

186 177

628

974

1213

959

344

213 185138 157

113

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

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. 278 Mn$

Avg. 943 Mn$

Avg. 207 Mn$

Financials


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

• Net financial debt/EBITDA

• Net financial debt/Equity

Financial Policy

www.tupras.com.trMay-21Inestor Presentation 34

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 December 2020)


• 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.

Financials

*Cash Flow Hedge

Cash

105

Forward 2,193CFH* 594

Stock984

Receivables & Other Assets

70

Payables & OtherLiabilities

1,785

ST Financial Loans552

• RUP: 181• Other: 370

LT Financial Loans1,660

• RUP: 411• Eurobond: 700• Other Loans: 549

Consolidated Hard Currency Assets

Consolidated Hard Currency Liabilities

Million $

-52 mn $


Appendix


Tüpraş Balance Sheet (Million TL)


31.12.2020 31.12.2019 Diff. Diff. (%)Current Assets 30.663 27,919 2.744 10

Cash & C. Equivalents 19.825 10,652 9.173 86

Trade Receivables 1.736 4,788 -3.052 -64

Derivatives 380 304 76 25

Inventories 7.701 9,469 -2.235 -24

Pre-paid expenses 234 237 -3 -1

Other Current Assets 1.022 2,470 -1.215 -49

Long Term Assets 30.505 27,593 2.913 11

Financial Assets & Subsidiaries 1.330 1,363 -33 -2

Fixed Assets 22.137 20,587 1.550 8

Derivatives 88 99 -11 -11

Pre-paid expenses 135 199 -64 -32

Deferred Tax 5.002 3,768 1.235 33

Other Long Term Assets 1.813 1,578 235 15

Total Assets 61.169 55,512 5.657 10

Short Term Liabilities 28.341 28,120 220 1

Financial Loans 8.502 5,178 3.324 64

Trade Payables 14.137 17,816 -3.679 -21


Provisions 142 117 25 21

Other ST Liabilities 4.796 4,930 -134 -3

Long Term Liabilities 21.155 14,255 6.901 48

Financial Loans 20.743 13,898 6.845 49

Payables & Provisions 356 316 40 13


Other LT Liabilities 10 9 2 18

Total equity attributable to equity holders of the parent 11.446 12,963 -1.517 -12

Minority Interests 226 174 52 30

Total Liabilities & Equity 61,169 55,512 5.657 10


2021 Refinery Maintenance Schedule

www.tupras.com.tr06/05/2021Earnings Presentation 38

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

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


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)

Financials

54%

25%

21%Buy

Hold

Sell


4.1 4.1 4.1 4.2

0

1

2

3

4

5

2016 2017 2018 2019

LPG

-0.6%

Turkish Consumption 2016-2019


Source: Tüpraş and EMRA* Transit flight consumption included

22.324.2 23.6 22.5

0

14

28

2016 2017 2018 2019

Diesel

-4.4%+8.3%

MillionTons

-2.4%

4.4 4.55.0 5.3

0

4

8

2016 2017 2018 2019

Jet Fuel*

+10.5%+2.6%

2.2 2.3 2.3 2.4

0

2

4

2016 2017 2018 2019

Gasoline

+3.0%+1.2%+3.1%

+6.5%

+1.6% +0.8%


Competition - STAR Refinery

www.tupras.com.tr 41May-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

DemandBalance

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

Jet Fuel 5.2 1.6 6.8 5.2 1.6

Diesel 10.7 4.5 15.2 26.5 -11.3

Fuel Oil 1.8 1.8 1.3 0.5

Bitumen 3.1 3.1 3.1

Pet coke 0.8 0.7 1.5 4.6 -3.1

Total ~30 ~10 ~40

Appendix


Competition - Regional Competition

www.tupras.com.tr 42May-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


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.trMay-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


• 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 62.0% 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,

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

Governance Excellence

AppendixMay-21Investor Presentation


LPG and Naphtha Cracks


$/bbl

-11.4

-17.2-17.7

-19.6

-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

-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


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


Koç Holding


• 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)

AppendixMay-21Investor Presentation


contact us: [email protected]

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Investor Presentation - .NET Framework · 2021. 5. 7. · Investor Presentation Company Overview 15 İzmit İzmir Kırıkkale Batman Total Capacity (mn tons) 11.3 11.9 5.4 1.4 30