TURKCELL GROUP · Moldcell Background information: •Fintur has operations in Azerbaijan, Kazakhstan, Moldova and Georgia, and Turkcell holds 41.45% stake in the company. •Turkcell

Q4 & FY 2017February 15, 2018

TURKCELL GROUP

BUSINESS OVERVIEW

Kaan TerzioğluTurkcell CEO

Turkcell | Fourth Quarter & Full Year 2017

3

Annual mobile churn at 20.5%, lowest of the past decade

36.7Mn subscribers in Turkey, with 1.5Mn net adds

87% 4.5G subscriber penetration

242K Lifecell subs by Feb.18

2017: A REMARKABLE YEAR

Record top line at 17.6Bn TL, up 23.4% yoy

EBITDA at 6.2Bn TL, up 34.8% yoy

Highest EBITDA margin of past 9 years: 35.3%

3.0Bn TL dividend distributed

8.9 9.0 9.410.5 11.4 12.0 12.8

14.3

17.6

3.0 2.9 2.9 3.2 3.5 3.8 4.1 4.66.2

33.3% 32.7%

31.1% 30.9% 31.1% 31.2%32.4% 32.3%

35.3%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Revenue (Bn TL) EBITDA (Bn TL) EBITDA Margin (%)

FINANCIAL OPERATIONAL

23.8%

32.6% 33.9%

27.9%

27.1% 27.4%28.3%

27.3%24.6%

20.5%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Revenue, EBITDA and EBITDA Margin Annual Mobile Churn Rate


4

GUIDANCE DELIVERED

*Excluding license fees

INITIALGUIDANCE

REVISEDGUIDANCE ACTUAL

13% - 15%REVENUE GROWTH

21% - 23% 23.4%

32% - 34%EBITDA MARGIN 33% - 35% 35.3%

~20%OP.CAPEX /

SALES* 19% - 20% 21.0%

…Stellar growth performance

…Mid-term target achieved a year ahead

…CAPEX brought forward in Q4


5

17.4%

41.8%

55.8%

Q415 Q416 Q417

4,044 4,0534,316

4,597 4,66633.9% 34.5% 33.8%

35.5%37.3%

Q416 Q117 Q217 Q317 Q417

Revenue (Mn TL) EBITDA Margin (%)

Mobile triple play at 55.8%, up 14pp yoy

Yaani downloads reached 3.5Mn

4.5G user data usage at 5.9GB, up 37% yoy

72% smartphone penetration, 15Mn 4.5G compatible

FOURTH QUARTER HIGHLIGHTS

Record top line at 4.7Bn TL, up 15.4% yoy

Highest quarterly EBITDA margin of past 9 years: 37.3%

23% growth in data and digital services revenues

500Mn TL net income impact of tax settlement

FINANCIAL OPERATIONAL

25.9%

35.9%44.4%

Q415 Q416 Q417

Revenue and EBITDA Margin Mobile Triple Play Multiplay with TV


6

ConsolidatedTRY Million1

YoY % YoY %

Revenue 4,666 15.4% 17,632 23.4%

EBITDA 1,739 26.8% 6,228 34.8%

EBITDA Margin 37.3% 3.4pp 35.3% 3.0pp

Net Income 216 (38.4%) 1,979 32.6%

Net Income -excl tax settlement2 716 104.2% 2,479 52.3%

Op.Capex/Sales3 35.7% 8.8pp 21.0% (2.0pp)

1 TRY figures are based on IFRS2 Excluding the negative impact of 136Mn TL tax amnesty in Q3 2016 and 500Mn TL tax settlement in Q4 2017. The latter was disclosed on January 30, 2018.3 Excluding license fees

Q4 2017

TURKCELL GROUP FINANCIAL HIGHLIGHTS

• All-time high yearly revenue and EBITDA

• Solid operational performance led to strong bottom-line

• Improved collection performance of receivables led to 133Mn TL contribution in Q417 EBITDA

2017

30%

36%40%

37%40%

Q416 Q117 Q217 Q317 Q417

Two-year Cumulative Revenue Growth Rate (%)


7

TRY Million1

YoY % YoY %

Revenue 4,041 13.0% 15,450 20.8%

EBITDA 1,566 27.7% 5,594 34.4%

EBITDA Margin 38.8% 4.5pp 36.2% 3.7pp

Net Income 179 (53.7%) 1,962 32.6%

Net Income - excl tax settlement2 679 75.8% 2,462 52.4%

Q4 2017

TURKCELL TURKEY FINANCIAL HIGHLIGHTS

• Turkcell Turkey Q4 revenue growth including financial services is 15.2% with 38.3% EBITDA margin, while

full year 2017 revenue growth is 23.8% with 36.1% EBITDA margin

2017

1 TRY figures are based on IFRS2 Excluding the negative impact of 136Mn TL tax amnesty in Q3 2016 and 500Mn TL tax settlement in Q4 2017. The latter was disclosed on January 30, 2018.


8

48.7 51.1 53.6

25.628.3

31.6

2015 2016 2017

Fixed Residential Mobile Blended (excl. M2M)

27.3%

24.6%

20.5%

2015 2016 2017

OPERATIONAL HIGHLIGHTS

*TV subscribers include 1.7 million of «OTT only» customers and it is excluded from net add & total subs

TURKEY SUBSCRIBERS (million)

4.9%YoY

11.7%YoY

ARPU (TL)

MOBILE CHURN RATE

1.20.9

2.2

Fiber ADSL TV*

Total Turkey subscribers

36.7 mn18.5

15.6

Postpaid PrepaidYoY

1.1mn↑ 63K↓ 103K↑160K↑ 146K↑Net add

54%of total mobile

1.5mn↑ net add YoY

Annual


9

SUPERIOR 4.5G QUALITY & SPEED PIONEER CAMPAIGNS+21

+19

+24+28

+31 +32

+38+41

Q117 Q217 Q317 Q417

Points over next best Points over third best

INCREASING APPRECIATION OF CUSTOMERS

• #1 in NPS reflecting superior overall customer satisfaction

• Continued to widen the gap in the fourth quarter

*NPS score comparison is for consumer segment in mobile. (Source: Nielsen)

NET PROMOTER SCORE* OVER COMPETITION

DIGITAL SERVICESPORTFOLIO

ENHANCED SHOPPING EXPERIENCE


10

1519

2326 28 29 30

8 9 11 12 13 14 15

Q216 Q316 Q416 Q117 Q217 Q317 Q417

4.5G subscribers 4.5G compatible smartphone

0

4.3

6.0 5.9

1.72.8

4.2 4.3

Q415 Q416 Q317 Q417

4.5G Users Total Users

MOBILE DATA USAGE (Av. GB/User)

52%64%

71% 72%

Q415 Q416 Q317 Q417

SMARTPHONE PENETRATION

CONTINUED RISE IN DATA USAGE4.5G SUBSCRIPTION (million)

6.0GBin

Dec’17

• 4.5G users are driving data usage

o 2x consumption vs. 2G&3G users

• Significant room for further 4.5G adoption

• 68% of smartphones on our network are 4.5G compatible

o ~1mn additions each quarter


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4,1986,814

10,304

2015 2016 2017

1,147

2,2262,735

Q415 Q416 Q417

GROWTH DRIVERS

23%YoY

DATA&DIGITAL SERVICES REVENUES

55%

26%19%

38%

62%68%

Q415 Q416 Q417

SHARE OF REVENUES (IN TURKCELL TURKEY)

(Million TL)

57%

38%

20%

37%

53%

67%

2015 2016 2017

Voice & SMS Data and digital services

QU

AR

TER

LYY

EAR

LY

51%YoY


12

58%73%

Q416 Q417

INCREASING MULTIPLAY

24.0%28.2%

41.8% 42.4%46.7%

50.4%55.8%

MOBILE* (TRIPLE PLAY«3P»)

1.0x 1.5x2.9x

1.0x

0.9x0.8x

1P 2P 3P

ARPU & CHURN RATE

ARPU Churn Rate

MOBILE MULTIPLAY

32.6%33.9%

35.9%38.7%

40.5%42.3%

44.4%

Q216 Q316 Q416 Q117 Q217 Q317 Q417

FIBER RESIDENTIAL (MULTIPLAY WITH TV)

*Share of mobile voice line users which excludes subscribers who do not use their line in the last 3 months. Triple Play refers to mobile customers who use voice, data and one of core digital services.

TRIPLE PLAY SHARE IN MOBILE REVENUE

15ppYoY


13

63 minwatching

27 minreading

24 minlistening

31 mincalling

13 mininteracting

33 minfor VOIP users

DIGITAL COMPANION THROUGHOUT THE DAY

We aim to increase customer engagement……from basic communication to potentially all digital activities

https://medya.turkcell.com.tr/bulletins/gazetecilerden-turkcell-dergilike-buyuk-odul/


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Q217

Introduced Yaani & e-commerce

platform Launch of

BiP Gaming

Lifecell«Digital Operator»

Shake&WinCampaign

A YEAR WITH DIGITAL SERVICES

Exclusivealbum launch

Money transfer

Advertisementfrom app

Newspapersadded

Q117 Q417

Group Video Chat

Jan.18

BiP messagesexceeded SMS

First B2B sale(to Moldcell)

SocialChat Room

High School Music Contest

3rd app publisher in

4th app publisher in

Apple TV Airplay &

Android TV

2017

Q317



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INTERACT, READ, LISTEN, WATCH & STORE

*Refers to downloads as of February 2018, net adds are quarterly.** Includes users who utilised the zero rating benefit of Dergilik magazines and newspapers via browser.

Download*

MonthlyActive User

Service KPI’s

QoQ

QoQ

INSTANT MESSAGING

18.3M

4.3M

71Mmessages per day

+1.7M

+0.1M

CALL MANAGEMENT(UPCALL)

2.3M

837K

737Kcalls

per day

+0.6M

+0.2M

DIGITALPUBLISHING

4.6M

7.0M**

157Kcopies read

per day

+1.7M

+2.3M

MUSIC

14.7M

2.0M

9Msongs streamed

per day

+2.0M

+0.3M

TV

6.6M

1.5M

2.3MTV sessions

per day

+1.3M

+0.2M

PERSONAL CLOUD(lifebox)

6.6M

1.4M

39 docs uploadedper person per

day

+0.9M

+0.4M

MY ACCOUNT(Hesabım)

26.8M

17.3M

40% More ARPULess Churn

+3.0M

+2.1M



16

Advertising revenues

• Keyword – traffic management

• Main page icon ad

• Ad insertion

MONETIZATION

:MORE THAN A SEARCH ENGINE…

Download

Monthly Active User

Search per day

3.5M

1.2M

1.0M

SERVICE DETAILS


17

TRY MILLION

YoY% YoY%

Consumer loans

(balance sheet figure)4,248 79% 4,248 79%

Revenues 183 102% 606 228%

Gross profit 110 127% 329 187%

• 26Mn credit scored customers and Credit Bureau integration

• TCF loan portfolio grew, while Turkcell Turkey contracted handset receivables declined by 1.0Bn TL in 2017

• 200Mn TL of Asset Backed Securities were issued in 2017

• NPL sale (Dec.17)

• Established an insurance company (Feb.18)

STRONG MOMENTUM IN TECHFIN SERVICES

*Financial services figures are based on the contribution to Turkcell Group; **Excludes consumer finance company transactions

FINANCIALS & HIGHLIGHTS*

Q4 2017 2017

• 350Mn TL transactions in 2017**

• App Store mobile payment: first and only in Turkey

• Co-founder of Turkey Payment Platform

• Partnership with Istanbul Municipality for iTaksi network

• Established Paycell LLC in Ukraine

• Available in TRNC

HIGHLIGHTS

1.2MnRegisteredcredit cards

PAYCELL CARD

PAYCELL APP 405Kdownloads

PAYCELL 5Mnusers

Recentlylaunched


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TRY MILLION1

Revenue 288 14.6% 1,067 22.0%

EBITDA 64 (6.3%) 264 12.1%

EBITDA

Margin22.2% (5.0pp) 24.7% (2.2pp)

Q4 2017YoY

TURKCELL INTERNATIONAL

lifecell

BeST

Kuzey Kıbrıs Turkcell

EBITDA Margin(2017)

27.2%16.5%

3.8%40.2%

33.5%16.4%

Revenue Growth(2017, in TRY)

1 TRY figures are based on IFRS

4G tender: 15MHz in 2600

Continued4G rollout

2017YoY

MNP in Q118

HIGHLIGHTS


19

FINTUR UPDATE: GEOCELL SHARE TRANSFER

Azercell

Geocell

KCell

Moldcell

Background information:

• Fintur has operations in Azerbaijan, Kazakhstan, Moldova and Georgia, and Turkcell holds 41.45% stake in the company.

• Turkcell has decided to exit Fintur together with majority partner Telia Company, and reported as “assets held for sale” as of October 2016.

Recent development:

• On January 25, 2018, Fintur has signed a binding agreementwith Silknet JSC for selling of Geocell for 153Mn USD.

• The transaction is expected to be completed once the regulatory approvals are received.

• The transaction has no impact on our financial statements since Fintur is classified as “assets held for sale” in our financials.


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2018 GUIDANCE

*Excluding license fees

13% - 15%

16% (in 2019)

2017 - 2019Guidance (Feb.17)

REVENUE GROWTH

EBITDA MARGIN

OP.CAPEX / SALES*

33% - 35%

12% - 14%

2018Guidance

18% - 19%

33% - 35%

FINANCIAL OVERVIEW

Bülent AksuTurkcell CFO


22

4,044

4,666

46437 92

29

RevenueQ416

Δ TurkcellTurkey

Δ TurkcellInternational

ΔTCF* Δ OtherSubsidiaries

RevenueQ417

REVENUE

14,286

17,632

2,663192 421 71

RevenueFY16

Δ Turkcell Turkey

Δ Turkcell International

Δ TCF* Δ Other Subsidiaries

RevenueFY17

23.4%15.4%

* Turkcell Consumer Finance Company

QUARTER FULL YEARTRY MILLION TRY MILLION

• 0.6 bn TL revenue add in Q4 YoY, 3.3 bn TL in 2017 YoY

• Turkcell Turkey and TCF are main growth contributors


23

EBITDA & EBITDA MARGIN

QUARTER FULL YEAR

4,620

6,2283,347

(1.720)

77 (95)

EBITDAFY16

Δ in Revenues

Δ in Direct cost of

revenues*

Δ in G&Aexp.

Δ in S&Mexp.

EBITDAFY17

1,371

1,739622

(312)123 (66)

EBITDAQ416

Δ in Revenues

Δ in Direct cost of

revenues*

Δ in G&Aexp.

Δ in S&Mexp.

EBITDAQ417

*Excluding depreciation and amortization

Margin32.3%

Margin35.3%

Margin33.9%

Margin37.3%

34.8%26.8%

TRY MILLION TRY MILLION

• EBITDA increase via top-line growth & OPEX management

• Improved collection performance of receivables led to 133Mn TL contribution in G&A


24

1,492 1,979

1,609

(394)(401)

251

(472) 42

(149)

Net income Δ in EBITDA Δ in D&A Δ in InterestInc./Exp.

Δ in FX Gain/Loss*

Δ in Other Inc/Exp.

Δ in Fintur Δ in Taxation Net income

351 216

368 (96)

(62) 153

(584)

44 42

NET INCOME DEVELOPMENT

* FX/Gain loss includes impact of fair market value change of swap contracts

Q416 vs. Q417

FY16 vs. FY17

TRY MILLION

TRY MILLION

Includes Tax SettlementProvision 716

2.479

Tax settlement & amnesty impact

Amount factored in

fordividend proposal

1.628


25

2,750 3,160 3,576

3,4533,801

4,2481.14x 1.19x

1.26x

0.52x 0.56x0.59x

Q2 2017 Q3 2017 Q4 2017

Net Debt (ex. TCF) TCF loan portfolioNet Debt/EBITDA Net Debt/EBITDA (excl. TCF)

SOLID BALANCE SHEET

TRY MN Q2 2017 Q3 2017 Q4 2017

Total Cash 4,995 4,906 4,712

Total Assets 31,914 32,322 33,982

Total Debt 11,197 11,867 12,536

Total Equity 14,201 14,817 15,045

Net Debt 6,203 6,961 7,824

Net Debt –

excl. TCF*2,750 3,160 3,576

NET DEBT/ EBITDASUMMARY

*Turkcell Consumer Finance Company’s (TCF) loan portfolio is excluded


26

6,0524,712

6,228

(4,090)

3961,493

(3,000)

(1,535)

(831)

Q416 EBITDA Capex* Net intincome/(expense)

Net chg in debt DividendPayment

Final installment of4.5G license fee

Other Q417

CASH DEVELOPMENT

* Including operational and non-operational Capex

TRY MILLION


27

4.7Bn TLNominal

40%

60%

(1,239)

(688)

(125) (91) (203)

(330)

(144)

Q216 Q316 Q416 Q117 Q217 Q317 Q417

87%

13%

FX Local Currency

78%

22%

FX EXPOSURE

CASH DEBT

Before Hedging

* Including advance payments, hedging and assuming the 4.5G license payables in TRY for the periods before April 2017 and excluding FX swap transactions for TL borrowing

After Hedging

NET FX POSITION*

Comfort Zone(500Mn USD)

12.5Bn TL

USD MILLION

Share


28

CAPITAL MARKETS DAY 2018

March 14, 2018

09:00-10:00 Registration & Light Breakfast

10:00-15:30 Management Presentations

19:30-22:00 Dinner w/Management & BoD

AGENDA & DETAILS

Update on the Turkcell Group strategy and 3-year outlook

Four Seasons Bosphorus

İSTANBUL /TURKEY

Guest Speaker

Murat Çetinkaya, CBRT Governor


29

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21Eof the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Thisincludes, in particular, our targets for revenue, EBITDA and capex in 2018 or for the medium term 2017 to 2019. More generally, allstatements other than statements of historical facts included in this presentation, including, without limitation, certain statementsregarding the launch and goals of our payment card business, our operations, financial position and business strategy may constituteforward-looking statements. In addition, forward-looking statements generally can be identified by the written or oral use of forward-looking terminology such as, among others, "will," "expect," "intend," "estimate," "believe", "continue" and “guidance”.

Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give noassurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable tous are expressly qualified in their entirety by reference to these cautionary statements. For a discussion of certain factors that mayaffect the outcome of such forward looking statements, see our Annual Report on Form 20-F for 2016 filed with the U.S. Securities andExchange Commission, and in particular the risk factor section therein. We undertake no duty to update or revise any forward lookingstatements, whether as a result of new information, future events or otherwise.

The Company makes no representation as to the accuracy or completeness of the information contained in this presentation, whichremains subject to verification, completion and change. No responsibility or liability is or will be accepted by the Company or any of itssubsidiaries, board members, officers, employees or agents as to or in relation to the accuracy or completeness of the informationcontained in this presentation or any other written or oral information made available to any interested party or its advisers.

Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified. In thecharts or tables used in this presentation totals may not foot due to rounding differences. The figures used in this presentation arerounded while percentage changes are calculated based on the figures disclosed in the press release.

NOTICE

For further information please e-mail

[email protected] call Turkcell Investor Relations at

(+90 212 313 1888)

Have you updated Turkcell IR app?

THANK YOU

For Android For iOS

APPENDIX


32

Summary Income Statement As Per CMB1 Financials

1 Capital Markets Board of Turkey2 Depreciation and amortization is included

(TRY MILLION)

Summary income statement Q4 2016 Q4 2017 YoY (%) 2016 2017 YoY (%)

Revenue 4,044 4,666 15% 14,286 17,632 23%

Direct Cost of Revenues2 (2,608) (3,016) 16% (9,219) (11,350) 23%

S&M (479) (544) 14% (1,911) (2,005) 5%

G&A (190) (67) (65%) (722) (645) (11%)

EBITDA 1,371 1,739 27% 4,620 6,228 35%

EBITDA Margin 33.9% %37.3 3.4pp 32.3% %35.3 3.0pp

Net Income 351 216 (38%) 1,512 1,979 31%


33

(TRY MILLION)

Consolidated Balance Sheet (TRY mn) 2016 2017 YoY(%)

Cash & Bank 6,052 4,712 (22%)

CURRENT ASSETS 13,351 14,069 5%

TOTAL NON-CURRENT ASSETS 18,249 19,913 9%

TOTAL ASSETS 31,600 33,982 8%

S/T Debt 2,846 4,278 50%

TOTAL CURRENT LIABILITIES 7,359 9,224 25%

L/T Debt 6,935 8,258 19%

TOTAL NON-CURRENT LIABILITIES 8,173 9,714 19%

MINORITY INTEREST 57 56 (2%)

SHARE CAPITAL 2,200 2,200 -

TOTAL EQUITY 16,068 15,045 (6%)

TOTAL EQUITY AND LIABILITIES 31,600 33,982 8%

Consolidated Balance Sheet


34

2.90 3.023.32

4.112.82

3.18 3.714.52

2014 2015 2016 2017

Average Period-End

Currency TrendsUSD / TRY EUR / TRY

USD / BYN USD / UAH

2.192.73 3.01

3.632.322.91

3.52 3.77

2014 2015 2016 2017

1.031.59

1.98 1.931.19

1.86 1.96 1.97

2014 2015 2016 2017

11.87

21.7925.56 26.6415.77

24.0027.19 28.07

2014 2015 2016 2017

Documents

TURKCELL GROUP · Moldcell Background information: •Fintur has operations in Azerbaijan, Kazakhstan, Moldova and Georgia, and Turkcell holds 41.45% stake in the company. •Turkcell