PETKİM PETROKİMYA HOLDİNG A.Ş.

ANALYST PRESENTATION14 August 2009

2

PETROCHEMICAL INDUSTRY & PETKİM

AGENDA

OPERATIONAL ACTIVITIES

GROWTH PLAN

FINANCIAL RESULTS

3

AGENDA

PETROCHEMICAL INDUSTRY & PETKİM

4

World Economy & Petrochemical Industry

RECUPERATION BEGINNING FROM THE SECOND HALF OF 2009. POSITIVE GROWTH IS EXPECTED IN 2010.

DUE TO THE CRISIS GROWTH RATES HAS DECELERATED IN ALMOST EVERY REGION OF THE WORLD.

WORLD PETROCHEMICAL PRODUCTION WAS DRAGGED DOWN TO THE LEVELS OF 15-20 YEARS EARLIER

Daily QNAF-C-NWE, QBRT- 05/09/2007 - 21/08/2009 (GMT)

Line, QNAF-C-NWE, Last Quote(Last)31/07/2009, 598Line, QBRT-, Last Quote(Last)31/07/2009, 529.78

PriceUSDT

.12

2003004005006007008009001,0001,100

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32007 2008 2009

DUE TO THE SEVERE GLOBAL RECESSION THE OIL AND NAPHTHA PRICES SHARPLY DECLINED IN LINE WITH THE DEMAND CONTRACTION

GDP GROWTH %

THE WORLD PETROCHEMICAL SECTORCAPACITY UTILIZATION RATES ABRUPTLY DECLINED TO THE LEVELS OF 65-70%

THE MOST DRAMATIC FALL HAS BEEN IN THE POLYMER PRODUCTION IN EU COUNTRIES

%

CMAI

Nexant Platts

CEFICCEFIC

5

World Economy-Uncertainty Continues…

Source: CMAI

POSITIVE DEVELOPMENTS NEGATIVE DEVELOPMENTS

• The most severe recession since 1929

• Overborrowed consumers who are resistant towardsspending

• High inventories in automotive and constructionsectors

• The posibility of inflation to become a major problem

• Difficulty of finding loans, highly leveraged financialstatements

• Dwindling developed economies, the others who tryto survive

• Expectation of global growth rate to resume itsnormal trend after 2010

• Adoption of stimulus packages for the restoration of economic growth

• Declining energy prices• Falling food and other product prices• Taken measures against rising unemployment rates• Reduced investment costs; the lowest levels of

interest rates• Resilient services sector especially the health

industry• Improvement in consumer’s sentiment

6

Market Conditions

Sliding crude oil prices to $32 per barrel since January 2009 and resuming their upwards trend in February by reaching upto $70 per barrel in early June

Crude oil prices climbing up to USD 147 per barrel in June.

Ever increasing naphtha prices for the last six consecutivequarters and reaching up to 1,150 $/ton in mid-June.

Negative impact of the rising energy prices on the costsand profit margins.

Tumbling oil and naphtha prices to the five year lows at thesecond half of the year

Suffering producers from the erosion of margins, collapsing profitabilities

Extremely weak demand taking its toll on the operatingrates of the companies and temporarily shutting down of the plants.

Following the rally in crude oil prices naphtha pricessignificanty increasing from $350 to $550

After deteriorating rapidly over the last six month, petrochemical sector demonstrating a stabilization in thesecond quarter of 2009

Strengthening petrochemical product prices

Improving sectoral profitabilities

Low levels of capacity utilization rates all around the world in the second quarter.

2008 2009 H1

Positive impact of falling energy prices on the profitabilities

7

General Overview of Turkey

Source: Investment Supharbour and Promotion Agency

8

Growth Potential in the Domestic Market

PETKİM

Dominant Producer25% Market Share

Market Size$ 6-7 billion

1998-2008 CAGRThermoplasticsDemand 8%GDP 4%

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Growth in Thermoplastics Demand GDP Growth

9

10

Company Overview• Established in 1965/Second complex commissioned in 1985• The sole petrochemical producer in Turkey• 25% domestic market share (2008) well positioned in

growing markets• TRY 895 mn net sales (2009 H1)• TRY 87 mn EBITDA (2009 H1)

• 15 main plants, 8 auxiliary units• Located in Aliağa near Izmir• Sits on a land of 19 mn sqm• Harbour, water dam, power generation unit (220 MW)• Adjacent to Tüpraş Aliağa Refinery

PETKİM

FACILITIES

MAIN FEEDSTOCKPRODUCTS

PRODUCTION

• Naphtha, LPG, C4, Condensate• Main product goups: olefins, polyolefins, vinyl

chain, aromatics and other basic chemicals

• 2.9 mn. tons of gross production realized in 2008• 3.2 mn. tons of gross production planned in 2009

11

PA10,3%

Free Float38,7%

SOCAR-TURCAS PETRO

CHEMICAL COMPANY

51,0%

Petkim’s Ownership Structure

Share Information (11 August 2009)

Stock Price Performance

Ownership Profile

Long-running privatization processcompleted in May 2008. SOCAR&TurcasConsortium submitted a bid of $ 2.04 bn

and acquired 51 % stake in Petkim successfully

Closing Price (TRY/Share) 7,40Market Cap ( TRY million) 1.515Market Cap ( $ million) 1.034

Free Float (%) 38,7

Relative Performance

405060708090

100110120

May-08

Jul-0

8Aug-0

8Sep

-08Nov-0

8Dec

-08Ja

n-09

Mar-09

Apr-09

May-09

Jul-0

9Aug-0

9

ISE 100 PETKIM

12

Petkim: The Strong & Tangible Symbol of Economical & Strategical Partnership

TURCAS is the first privately-ownedpetroleum distribution company in Turkey which focus on oil productsdistrubution and energy investmentswith its international strategicalpartnerships

SOCAR one of the world’s oldestpetroleum companies, has majorinvestments in Azerbaijan. SOCAR is a shareholder and major supplier in the 50 million ton capacity BTC crude oilpipeline and the BTE natural gaspipeline, which transports 6,6 million ton cubic meters of natural gas to Turkey

PETKİMA BRIDGE LINKING AEGEAN TO CASPIAN

13

Products and Capacity

PETKIMALIAGA COMPLEX

START-UP 1985

PETKIMPETKIMALIAGA COMPLEXALIAGA COMPLEX

STARTSTART--UP 1985UP 1985

TOTALCapacity 1,916,000 ton/yr

TOTALTOTALCapacity 1,Capacity 1,916916,000 t,000 toon/yrn/yr

Other Products1

Capacity 954,000 ton/yrOther ProductsOther Products11

Capacity 9Capacity 95454,000 t,000 toon/yrn/yr

Fiber Raw MaterialsCapacity 249,000 ton/yrFiberFiber Raw MaterialsRaw Materials

Capacity 249,000 tCapacity 249,000 toon/yrn/yr

ThermoplasticsCapacity 713,000 ton/yr

ThermoplasticsThermoplasticsCapacity 7Capacity 71313,000 t,000 toon/yrn/yr

1 Ethylene (520,000), VCM (152,000), PA (34,000), Chlorine (100,000), Benzene (134,000), MB (10,000), Plastic Products (4,000)

ETHYLENE 520 PROPYLENE 240C4 140 PY-GAS 390AROMATICS 346

BENZENE 160P-X 136O-X 50

CHLORINE 100VCM 152PVC 150LDPE 334 HDPE 96PP 144 MEG 89ACN 90PTA 70PA 34Power (MW) 226

Product Capacities(thousand tons)

PLANT CAPACITIESPLANT CAPACITIES

14

AGENDA

OPERATIONAL ACTIVITIES

15

• Achievement of the capacity utilization rates above than theEuro Area averages (96% CUR in the second quarter of 2009)

• Recruitment of 250 employees in the first six months of 2009

• 27% reduction in total energy costs compared to the last year

• Increase in market share from 24% to 29% due to the domesticdemand contraction

• One of the rare petrochemical companies which haveannounced a net profit

• Reemphasized strategical importance of Petkim

Petkim: Created Efficiencies

16

Petkim: Labor Productivity

Per Capita Marketable Production and Efficiency

Production per capita has increased from 457tons/capita in 200 to 539 tons/capita in H1

2009

Improvement in productivity and efficiency with the capacity increase

and reduced number of employees

Ongoing restructuring at organizational level:

Assessment of personnel efficiency withthe benchmarks (PerformanceManagement System)

Simplifying hierarchic level

Outsourcing of the services other thanthe main activities (maintanance, logistics)

Plant maintenance, power generation, harbourmanagement are currently managed in-

house.

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009H1

0

1000

2000

3000

4000

5000

6000

7000Net Sales Per Capita (Left Axis)

Marketable Production Per Capita (Left Axis)

Employees (Right Axis)

17

Petkim Efficiency Increase

Cost Efficiency Power Efficiency

Trading, Sales & Marketing Shell Global SolutionsRisk based HSE management and adoption of HSE

cultureEfficient asset management and the management of

planned shutdowns with the optimization techniques

By establishing Power Management System improvingsite energy efficiency at a sustainable level.

Setting up an advanced “steam cracker” model for theutilization of different feedstocks and the factoryoptimization

• Meeting the total needs of customers

• Trading to be conducted from new logisticcenters that will be established out of Aliağa

• Implication of alternative financial tools in orderto promote sales

• Energy savings program

• Feedstock flexibility in power generation

• Positive impact of power price reductions

• Switching over to LPG as an alternative tonaphtha following the cut in special cosumptiontax

• Efficiencies on production with the cost cuttingefforts and Petkim’s Suggestion and RewardSystem

• Raising capacity utilitization

18

Petkim: Production & Sales

Production Sales

Marketable Production (thousand tons)

Breakdown of Marketable Production 2009 H1

1.383

733 663398 294 369

1.409

0

200

400

600

800

1000

1200

1400

1600

2007 2008 H1 08 H1 09 Q2 08 Q1 09 Q2 09

Net Sales (TRY Mn)

Breakdown of Sales Revenues 2009 H1

2.175 2.320

1251895

520375

681

0

500

1.000

1.500

2.000

2.500

2007 2008 H1 08 H1 09 Q2 08 Q1 09 Q2 09

PVC11% PY-GAS

2%

LDPE28%

C53%

HDPE9%

PP12%

Benzene6%

ACN7%

P - X6%

Others6%

PTA4%

Costik3%

PA3%

PVC11%

PY-GAS4%

LDPE21%

C54%

HDPE6%

PP9%

Benzene10%

ACN7%

PTA4%

P-X6%

Others8%

Costik7%

PA3%

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Petkim: Export

Breakdown of export revenues by product type 2009 H1

Breakdown of export by region 2009 H1

Export revenues by years (USD mn)

182

410358

523

296

129 153

4584

217

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 H1 08 H1 09 Q2 08 Q1 09 Q2 09

USA8%

Others2%

Mid-East, Africa26%

Asia-Far East24% EU

Countries40%

Benzen25%

PP6%

PVC3%

PTA8%

P-X10%

C46%

Py-Gas10%

Caustic3%

Others9%

HDPE2%

AYPE18%

• Petkim products are exported to nearly 60 different countries

• Benzene, C4, LDPE, Py-Gas and P-X are the mainexport products.

•The third exporter in chemical industry in Turkey in 2008.

20

Petkim: Price Changes & Cost Base

50

100

150

200

Jan-07

Apr-07

Jul-0

7

Oct-07

Jan-08

Apr-08

Jul-0

8

Oct-08

Jan-09

Apr-09

Thermoplastics Naphta

Petkim Thermoplastics and Naphtha Price Changes

Global Basic Chemicals and Integrated EBITRaw Material and Product Prices*

167

87

36 32

54

-5

46

-10

40

90

140

190

2007 2008 H1 2008 H1 2009 Q2 2008 Q1 2009 Q2 2009

Cost Breakdown*

0

250

500

750

1.000

LDPE HDPE PP MEG PVC

Cost of naphthaProduct Prices

Index (January 2007=100)

Petkim EBITDA Performance (TRY Mn)

* As of 2009 H1 Kaynak: CMAI

Labour7,4%

Energy12,2%

Others10,8%

Raw Materials

69,6%

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AGENDA

FINANCIAL RESULTS

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2007 2008 1H 08 1H 09 2Q 08 1Q 09 2Q 09

Net Sales 2.175 2.320 1.251 895 681 375 520

Cost of Goods Sold (-) (1.970) (2.355) (1.234) (823) (671) (338) (485)

Gross Profit (Loss) 205 (35) 17 73 10 37 36

Gross Profit (Loss) Margin 9,4% (1,5%) 1,3% 8,1% 1,5% 9,9% 6,9%

Operating Expenses (-) (96) (93) (34) (31) (9) (11) (20)

Other Operating Income/(Expenses),net

(26) (4) 2 1 5 (2) 3

Operating Profit/(Loss) 82 (131) (15) 42 6 23 19

Financial Income/(Expenses), Net (14) (26) (1) 3 (7) (4) 7

Profit/(Loss) Before Taxation 68 (157) (16) 45 (1) 19 25

Deferred Tax (2) 6 (2) (4) (2) (7) 3

Net Profit/(Loss) for the Period 66 (151) (18) 41 (3) 12 28

EBITDA 167 (5) 46 87 36 32 54

EBITDA Margin 7,7% (0,2%) 3,6% 9,7% 5,2% 8,6% 10,5%

Financials

Income Statement (TRY Mn) (UFRS )

23

9883

5428

72 80

31

64

29 3214

28

020406080

100120

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09Cash Bank Debt

Receivables, Inventories and Payables (TRY Mn)

Balance Sheet (TRY Mn) (UFRS)

Financials

Cash&Bank Debt (TRY Mn)31/12/2008 31/03/2009

232

87

174

443

29

1.698

28

9

72

194

247

135

90

1.357

1.698

251

23

536

1.778

32

206

74

312

97

1.369

1.778

Cash&Cash Equivalents

Trade Receivables

Inventories

Other Current Assets

Current Assets

Non-Current Assets

TOTAL ASSETS

Financial Liabilities

Other Payables

Trade Payables

Short-Term Liabilities

Long-Term Liabilities

Shareholders’ Equity

TOTAL LIABILITIES

1.255 1.242

-300

-200

-100

0

100

200

300

400

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Trade Receivables Inventories Trade Payables

30/06/2009

205

296

24

605

1.832

14

246

76

336

99

1.397

1.227

1.832

80

24

AGENDA

GROWTH PLAN

25

VISION AND MISSION

To become a regional force in petrochemicalsector

To achieve 40% market share in 2018 alongwith the sustainable growth

VISION

MISSION

26

PETKİM 2018

Targetting a “SUPERSITE”

● With the implementation of Refinery-Petrochemical-Power-Logisticsintegration to become a regional power in petrochemical industry

● By reaching a 40% domestic market share

● By producing high value added products, to establish “ClusterModel” with the participation of local and foreign investors

● With one of the largest and most intensive container harbours of Aegean and Mediterranean Region and has logistics support fields

27

PETKİM: Growth Plan & Strategy

Growth Plan

Short Term Growth Plan

Mid to LongTerm Growth Plans

• Capacity expansion/ debottlenecking• Business Transformation Program• Feedstock flexibility• Energy saving/cost reduction• Logistics• Sales and marketing• ERP Project• Trading activities

• Upstream investments(SOCAR&Turcas)

• Downstream investments• Energy-wind turbine• Logistics (harbour, railway)

Petkim’s main strategy is to increase market share and achieve high customer satisfaction

VISION 2018To become a regional

power in petrochemicalsector

40% market share in 2018

28

GROWTH WITH “UPSTREAM” INVESTMENTS REFINERY

ADVANTAGES

• Creating synergy with thevertical integration

• Feedstock security• Competitive advantage• Chance to be a global player

REFINERY• Allocation of 130 ha area to

SOCAR&Turcas Refinery A.S. for therefinery investment

• Additional income generation with therefinery services

• 30% investment cost cut with the currentinfrastructure

• Main customer of the refinery: Petkim

PETKİM: Growth Strategy

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40% MARKET SHARE TARGET WITH DOWNSTREAM INVESTMENTS

PETKİM: Growth Strategy

ADVANTAGES

• Increasing product diversity• Producing high value added products• Strategical partnerships• The Cluster Model• Chemical Park (Petkim Supersite)• Accessing economies of scale

DOWNSTREAM INVESTMENTS• Sufficient infrastructure for the

investments• Double digit growth rates in the chemical

sector in Turkey• Increasing competitive advantage with

created synergy• New investment opportunities with the

local and foreign companies

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PETKİM: Growth Strategy

GROWTH WITH ENERGY INVESTMENTS

POWER• Wind power

• Coal and/or natural gas based powerproduction plants with potentialpartners

• More power production

• Supporting national power grid

ADVANTAGES• Lower cost of power production with the

new investments

• Marketing of the redundant powerproduced

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GROWTH WITH LOGISTICS INVESTMENTS

LOGISTICS• To become one of the key logistics

main terminals in the region

• High capacity of container handlingpotential

• High capacity of liquid and drycargo handling potential

• High capacity of logistics supportunits

ADVANTAGES• Enlarging harbour capacity and

utilization rate

• Storage of various solid, liquid, andcompressed gas chemicals

• Paving the way for potentialinvestments on transportation

• Import and export opportunities forchemicals

PETKİM: GROWTH STRATEGY

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PETKİM PETROKİMYA HOLDiNG A.Ş.HEAD QUARTERSALİAĞA – İZMİR / TÜRKİYE

Tel: 0-232-6161240 (20 lines)0-232-6163240 (20 lines)

Fax: 0-232-6161248 0-232-6161439 0-232-6162490

Web site : www.petkim.com.tr , E-mail: petkim@petkim.com.tr

PETKİM GUZELHISAR DAM PETKİM harbour