Türk Telekom

2020 Q1 1 Notice

These materials contain statements about future events and None of the Company nor any of its shareholders, directors or expectations that are forward-looking statements. Any statement in employees nor any other person accepts any liability these materials that is not a statement of historical fact is a forward- whatsoever for any loss howsoever arising from any use of this looking statement that involves known and unknown risks, presentation or its contents or otherwise arising in connection uncertainties and other factors which may cause our actual results, therewith. The PSTN services and wholesale broadband performance or achievements to be materially different from any services are provided by Türk Telekomünikasyon A.Ş., the retail future results, performance or achievements expressed or implied by internet services are provided by TTNET A.Ş. and the mobile such forward-looking statements. Except to the extent required by services – are provided by TT Mobil İletişim Hizmetleri A.Ş. Türk law, we assume no obligations to update the forward-looking Telekom® brand used in this presentation is the joint brand of statements contained herein to reflect actual results, changes in Turk Telekom Group companies. All group companies legal assumptions or changes in factors affecting these statements. This entities remain intact. There may be differences between the presentation does not constitute an offer or invitation to sell, or any data provided in this presentation and ICTA’s market reports. solicitation of any offer to subscribe for or purchase any securities These discrepancies are due differences in basis of financial and nothing contained herein shall form the basis of any contract or The information contained herein has been prepared reporting (standalone vs. consolidated) and differences in ARPU by Türk Telekomünikasyon A.Ş. (the Company) in commitment whatsoever. No reliance may be placed for any calculation methodologies. connection with the operations of Türk Telekom Group purposes whatsoever on the information contained in this companies. The opinions presented herein are based presentation or on its completeness, accuracy or fairness. The on general information gathered at the time of writing information contained in this presentation may be required to be Note: EBITDA is a non-GAAP financial measure. The EBITDA definition used in this investor and are subject to change without notice. presentation includes revenues, cost of sales, marketing, sales and distribution expenses, confirmed, completed and amended. Therefore, no declaration or general administrative expenses, research and development expenses and other operating income/(expense), and income/(expense) from investing activities, but excludes commitment has been given or implied on the name of the Company The Company relies on the information gathered from depreciation, amortization and impairment expenses, financial income/(expenses) or its shareholders, directors, employers or other third persons presented in other operating income/(expenses) (i.e. FX gain/(loss), interest and the reliable sources however does not guarantee rediscount income/(expense) on current accounts excluding bank borrowings). completeness and accuracy of such information. depending on the authenticity, completeness and accuracy of the information.

22 Türk Telekom Highlights Leading Serving COMPANY IN TURKEY Offering 48.4 mn Integrated telecom Subscribers services

92% nd LTE 2 player Population Coverage in TV market

308K km ~45% 22.6 mn fiber network in fiber connected Fiber Homepass* 81 cities LTE Base Stations *Homepass includes FTTC & FTTH/B

33 Strategy

CORE TELCO NON-CORE TELCO OPERATIONS OPERATIONS

Increase the number of access lines and Capture a share in new revenue strengthen the footprint at households areas for sustainable growth GROWTH Strengthen the preferred fixed and mobile Create value from opportunistic infrastructure provider position in wholesale ventures on top of core operations Create value via subsidiaries Achieve a fair market share in the mobile market Increase corporate service revenue growth by increasing segment penetration

Improvement in operational expenses with Change business models and EFFICIENCY strict cost control processes with internal digitalization Disciplined capex spending Be prepared for the technological Ensure the organizational transformation transformation- 5G readiness Provide a competitive customer experience

44 Strongest Position Pay TV (Home) in Multiplay 2% Broadband 6% Offers 36.3mn Pay TV subscribers Mobile (Home and GO) Mobile 92% of customers consented for 7% 48% sharing of their info among 80% our group companies Turkcell 48.4mn subscribers Fixed as of Q1 ‘20 21% Voice Broadband 4%

24% 24.6mn YoY increase in multi subscribers 3.4ppt product ownership to 63%* *Among constant customer sub-universe that provided consent last year Broadband 96% Mobile

Türk Telekom Vodafone

Turkcell and Vodafone data are from their own publications as of Q1’20. 55 Focused on High Fixed Broadband Fixed Voice Growth Areas (TL mn) (TL mn)

20% 19% 3% 0% 1,839 2,685 6,625 1,776 2,603 673 1,550 666 671 Corporate 5,533 Data

8% Fixed Voice 11%

2018 2019 Q1 ‘19 Q4 ‘19 Q1 ‘20 2018 2019 Q1 ‘19 Q4 ‘19 Q1 ‘20 Mobile 36% TL 6.3bn Q1 ‘20 consolidated revenue Mobile Corporate Data (TL mn) (TL mn) breakdown 29%

18% 8% 5% Fixed 12% 8% 12% 8,896 1,822 Broadband 1,690 484 IFRIC 12 7,534 2,312 2,273 477 449 2,022 Other

2018 2019 Q1 ‘19 Q4 ‘19 Q1 ‘20 2018 2019 Q1 ‘19 Q4 ‘19 Q1 ‘20 66 Turnaround in Fixed Segment 54% EBITDA Margin EBITDA (TL mn) EBITDA Margin 52% 51% 51% 48% 48% 45% 45% 45% 45% 44%

Consolidated 8,341 EBITDA (TL mn) EBITDA Margin 6,739 5,675 4,703 4,614 4,403 4,350 4,508 5,214 2,015 2,332 49% 47% 47% 43% 40% 41% Q1 '19 Q1 '20 38% 37% 37% 2011 2012 2013 2014 2015 2016 2017 2018 2019 34% 36% Mobile Segment 32% EBITDA (TL mn) EBITDA Margin 32% 28% 22% 15% 16% 17% 12% 14% 12% 5% 11,170

8,436 2,836 6,452 5,077 5,096 4,986 5,047 5,334 5,470 1,706 2,655 2,977 829 643 645 584 696 793 380 486 295

2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 '19 Q1 '20 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 '19 Q1 '20

Türk Telekom adopted IFRS 15 and IFRS 16 accounting standards starting from 1 January 2018 and 1 January 2019, respectively. Includes TT Ödeme ve Elektronik Para Hizmetleri A.Ş. For further details please refer to “Financial Footnotes” & ”Summary Financial and Operational xls” on our web site.

77 Focus on Personnel Expense Provision for Doubtful Efficiency to Sales (%) Receivables to Sales (%)

15.7 14.8 14.5 14.3 15.2 14.4 Commercial 2.6 1.3 Cost 0.8 1.1 0.7 0.9

6% 2017 2018 2019 Q1 '19 Q4 '19 Q1 '20 2017 2018 2019 Q1 '19 Q4 '19 Q1 '20 Direct Costs 42% Commercial Cost TL 3.3bn to Sales (%) 2020 Q1 consolidated opex breakdown

44% 8.6 IFRS 15 7.2 Effect 8% Other Costs IFRIC 12 9.6

5.3 3.9 3.7 4.4 Türk Telekom adopted IFRS 15 and IFRS 16 accounting standards starting from 1 January 2018 and 1 January 2019, 3.4 respectively. For further details please refer to “Financial Footnotes” & ”Summary Financial and Operational xls” on our web site. 2017 2018 2019 Q1 '19 Q4 '19 Q1 '20 88 Net Subscriber Additions 48.4mn total K K subscribers Broadband 262 589 Q1 ‘20 LTM

563K 253K 1.1mn net additions* Mobile in Q1 ‘20 Q1 ‘20 LTM

1.7mn Fixed Voice 103K 202K net additions Q1 ‘20 LTM in LTM

*Includes Tivibu

99 Financial Performance

(TL mn) 2019 Q1 2019 Q4 2020 Q1 Growth (QoQ) Growth (YoY)

Revenue 5,403 6,284 6,303 0.3% 16.6% Revenue 5,304 5,990 6,016 0.4% 13.4% (exc. IFRIC12)1 EBITDA 2,655 2,828 2,977 5.3% 12.1%

EBITDA Margin 49.1% 45.0% 47.2%

Operating Profit 1,491 1,600 1,704 6.5% 14.3%

Profit Before Tax 215 661 834 26.1% 287.4%

Net Income 310 545 661 21.3% 113.2%

CAPEX 637 2,149 896 (58.3)% 40.5%

(1) IFRIC 12 adjustment is a non-operational revenue line booked in conjunction with upgrades to fixed line infrastructure, such as the upgrade from copper to fiber based network

1010

Fixed Broadband Subscriber Market Share Market Other Superonline 14% 11% Cable 8% Superonline 16% Retail Wholesale Q4 ‘19 Q4 ‘19 8% 62% Cable 81%

Household penetration in Türk Telekom Türk Telekom Europe 83% Source: Other operators’ data are from ICTA

Subscribers* & Avg. Household Monthly Data Usage Penetration Total subscribers (mn) Average usage (GB) Average 119.3 household size Household 90.7 97.5 in Turkey penetration in Turkey 3.4 57% people 55% 57% 50% 13.4 14.2 11.9

Q4 '17 Q4 '18 Q4 '19 Q4 '17 Q4 '18 Q4 '19

Source: Analysys Mason, Q4‘19 CEE&WE Telecom Matrix, TR data is from ICTA, Q4’19 Market Report *Dial-up and other methods are included. 1212 European countries include: AT, BE, BG, HR, CZ, DK, FI, FR, DE, GR, HU, IE, IT, ME, NL, NO, PL, PT, RO, RU, RS, SK, SI, ES, SE, CH, UK, UA Source: ICTA Extensive Fiber Network

Türk Telekom Fiber Network Superonline Fiber Network

Presence in 21 cities of Turkey

Present in 46K km fiber length 308K km 81 cities of fiber length Turkey Wholesale customer of Türk Telekom Based on Turkcell’s own publications as of Q1’20

Fiber Homepass (mn) Fiber Subscribers (thousands) Türk Telekom (FTTC) Türk Telekom (FTTH/B) Türk Telekom Superonline Unrivalled fiber network Superonline 4,216 4,447 Strong prospects for monetization 6.3 6.4 3,633 Best placed to benefit from move towards 5.3 higher connection speeds 4.5 2,749 3.9 3.3 2,011 Well-equipped to support 5G/small-cell 16.1 13.4 15.6 deployment 10.0 11.7 3.1 3.4 3.5 3.6 1,485 1,518 8.7 2.4 2.7 1,044 1,204 1,386

2015 2016 2017 2018 2019 Q1 '20 2016 2017 2018 2019 Q1 '20

Fiber subscribers include FTTH/B & FTTC subscribers

1313 Fixed Broadband ARPU & Subscribers Subscribers (mn) ARPU (TL) Performance 53.5 47.1 45.0 44.6

11.6 11.0 10.1 8.9 262K net additions in Q1

Q1 '17 Q1 '18 Q1 '19 Q1 '20

Fiber Subscribers Speed Breakdown Subscribers (thousand) Fiber Subscriber Ratio (% of Subscribers) 38% 33% 29% 24% Up to 20 Up to 24 Up to 20 Up to 24 31% 28% Mbps Mbps Mbps 4,447 Mbps 3,654 231K Q1 ‘19 Q1 ‘20 2,960 46% 12% 48% net additions 10% 2,175 35 Mbps 35 Mbps in Q1 and Above and Above 13% 12%

Up to 8 Up to 8 Mbps Mbps

Q1 '17 Q1 '18 Q1 '19 Q1 '20 Excluding subscribers for penetration campaigns All figures are based on Türk Telekom’s retail subscribers 1414 Mobile Market Subscriber Market Share

Türk Telekom Vodafone Turkcell

59% 42% Mobile broadband 29% population 26% penetration in 29% Population Europe 15% penetration 100% in Europe Q1 ‘07 Q1 ‘20 130% Subscriber vs. Spectrum Market Share Mobile broadband Türk Telekom Vodafone Turkcell population penetration in Turkey Population 42% 43% 75% penetration in Turkey 97% 29% 26%

29% 32%

Subscriber Spectrum Market Share Market Share

Other operators’ data are from their own publications as of Q1 ‘20 Source: ICTA, Q4 ’19 Market Report European countries include: AT, BE, DK, FI, FR, DE, GR, IT, NL, NO, PT, ES, SE, CH, UK 1515 Mobile Network Superior Spectrum Allocation

20.0 24.8

20.0 59.6 Extensive Network Coverage 20.0 20.0 70.0 24.8 70.0 20.0 30.0 35.0 92% LTE 60.0 c.22,000 35.0 40.0 Population Sites Coverage

2,600 MHz 2,100 MHz 1,800 MHz 900 MHz 800 MHz

Highest Share of Highest Spectrum Capacity 1,800 MHz Per Subscriber 97% coverage and Below Frequencies (Hz/Subscriber)

23.2mn 33.3mn 23.5mn 110.0 104.4 7.5 92% coverage 7.0 64.8 5.9

5G Getting ready for 5G via ongoing studies by Argela and TT on RAN slicing, NFV and SDN Turkcell and Vodafone data are from their own publications as of Q1’20.

1616 Mobile Performance

Growing ARPU & Subscriber Base Net Subscriber Additions Blended ARPU (TL) (thousand) Prepaid (mn) Postpaid (mn) Türk Telekom Vodafone Turkcell

32.5 30.6 26.7 28.4 24.0 1,929

22.1 23.2 19.9 1,430 18.7 1,321 1,300 17.7 1,028 1,044 12.8 14.0 932 11.1 772 8.9 10.0 253K 576 566 net additions in Q1 211 253 108 8.8 8.7 8.8 9.3 9.2 10 2015 2016 2017 2018 2019 Q1 ‘20 -262 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 -623

-966 -1,100

Other operators’ data are from their own publications. Note: For 2019,Turkcell’s net subscriber addition/loss number is calculated using the subscriber 1717 numbers in its press release. Data Revenue Mobile Data (Mobile service revenue share)

Data Revenue Share

59% 61% 39% 41% Q1 ‘19 Q1 ‘20

LTE Users* Avg. Monthly (Total subscriber share) Mobile Data Usage (GB per LTE user) 80% 58% Smartphone 55% 8.6 Penetration 8.2 49% 6.2 91% LTE Compatible Smartphone**

Q1 '19 Q4 '19 Q1 '20 Q1 '19 Q4 '19 Q1 '20 *Subscribers who 1) registered for LTE 1818 ** Among smartphone users 2) have LTE compatible device and simcard Pay TV Market Subscribers (mn)

Türk Telekom Tivibu Home

1.60

Turkcell

0.72 Cable 1.28 Household 6.9mn penetration in subscribers Europe (as of Q4 ’19) 83% 0.96 2.35 Digiturk

D-Smart

Source: ICTA Household penetration Tivibu Home Subscriber Market Share in Turkey

28% 24% 23%

18%

12%

Source: Analysys Mason, Pay-TV quarterly Metrics, Q4 ‘19 Report ,TR Data is calculated from ICTA Q4 ’19 Q4 '16 Q4 '17 Q4 '18 Q4 '19 European countries include: AT, BE, BG, HR, CZ, DK, FI, FR, DE, GR, HU, IE, IT, ME, NL, NO, PL, PT, RO, RU, RS, SK, SI, ES, SE, CH, UK, UA Source: ICTA 1919 TV Performance

Subscribers (thousand)

Tivibu Home Total TV (Tivibu Home + Tivibu GO) 1,681 1,595 3,660 3,414

1,276 2,924

2,132 774

Wireless Homes

Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '17 Q1 '18 Q1 '19 Q1 '20

Platform IPTV + DTH + Web TV + Smart TV

‣Turkish Basketball Super League ‣3 Inhouse Sports Channels Content ‣NBA ‣Kids & Documentary Channels ‣English Premier League ‣+4,000 on demand assets 2020 Fixed Voice Performance Access Lines and ARPU Fixed Voice (mn) Naked Broadband (mn) Fixed Voice ARPU (TL)

23.1 23.1 23.0 22.7 22.8 22.5 22.5 22.5 22.3 22.2 21.9 22.2 22.2

14.8 14.3 14.4 14.5 14.5 14.6 14.6 13.7 13.9 14.1 13.2 13.2 13.4 4.6 4.4 4.5 4.6 4.5 4.6 4.6 4.1 4.2 4.3 3.7 3.8 4.0

10.1 9.5 9.4 9.5 9.6 9.7 9.7 9.8 9.9 9.9 9.9 10.0 10.0

Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

2121 Investing Working with Argela in Future for SDN& NFV based Working on cybersecurity Preparations for 5G with transformation of solutions network ahead of pilot 5G test networks Turkey’s largest 5G 5G Work to manage the 5G Cyber Security network with AI technology Services Center in Ankara with wide First Industry 4.0 5G test in portfolio of end-to- Turkey end solutions

Best in class Focus on network cloud computing Leading largest sharing projects in solutions smart city mobile and fixed for projects in asset efficiency Turkey Esenyurt Data Center with 10K sqm area 2222 Digital Customer Services Transformation Sales Improved customer Branding & Comm. Diversification services via online channels towards virtual channels

Utilization of internal Marketing Easy, quick, products for external sale secure online payment Technology Diverse portfolio addressing Segmented the consumer segment with digital advertises 200+ value added services and Custom solutions by using Account both internal and subsidiary mobile applications Direct Carrier Billing Management Jetfix resources for serving both Turk Telekom and 3rd parties

Web-sites / Applications Tambu Tivibu Go

Türk Telekom Music

2323 Digital Transformation: Online Transaction ‣ The digital self-care application which allows mobile, fixed broadband and fixed voice subscribers to carry out a wide range of services including invoice payments, TL uploads, and application for new subscriptions ‣ Continuous expansion of digital services for best in-class customer experience 15.0 mn unique users in Q1 ’201 19.8 mn in Q1 ‘20 LTM

38 mn downloads as of Q1 ‘20

73% Ratio of subs using the app among total mobile subs base as of Q1 ’202

1 3MAU: 3-Month active user 2424 2 Based on LTM active unique users and average mobile subs Digital Service Turkey’s New Generation TV Platform: Turkey’s first smart and hyperlocal Tivibu GO Launch: 2010 digital keyboard Launch: 2017 Portfolio Türk Telekom’s TV platform which provides national and Turkey’s first local and customized smart digital exclusive linear channels, VoDs, and catchup programs in keyboard HD quality

Turkey’s Enriched Digital Music Platform: Turkey’s Most Comprehensive Online Türk Telekom Music Launch: 2008 Reading Platform:E-Dergi Launch: 2017 Turkey’s most preferred digital music platform to listen and Turkey’s online magazine and newspaper reading platform download millions of songs and watch videos with advantageous campaigns for Turk Telekom mobile users

Turkey’s Leader Digital Gaming Turkey’s Most Comprehensive Security Platform: Playstore Launch:2011 Platform: TT Security Launch: 2009 Turkey’s first and leader digital gaming, e-pin, console Turkey’s most comprehensive and secure anti-virus and games and pyscical gaming accessory sales platform family protection service platform

Turkey’s Widest Wifi Broadband Turk Telekom’s Education Platform: Network: TT WiFi Launch: 2006 Launch: 2018 Turk Telekom Academy Turkey’s widest WiFi hotspot coverage and services Education platform for Turk Telekom employees has been for Turkish Airlines flights relaunched and now available to all Turk Telekom internet subscribers

Turkey’s Advantageous Integrated Turkey’s First Interactive Education Cloud Platform: Dijital Depo Launch: 2018 Platform Launch: 2008 Türk Telekom’s operator free new cloud storage Turkey’s biggest online education platforms: Vitamin for application Digital Depo enables users to safely store pre-school to high grades students, Raunt for universiy photos, videos, music and all files with user - friendly preparation design

Turk Telekom has 30+ mobile applications, and 200+ value Turkey’s Mobile and Live Trivia added services. Game: Eleq Launch:2018

2525

5G and beyond next generation telco Leading system integrator & solution International arm of the Group in technologies R&D company provider in Turkey wholesale data, voice and roaming ProgRAN and vRAN: SDN (Software Defined System Integration Solutions services Networks) based RAN solutions for LTE and 5G Smart City and Smart Store Solutions Over 45K km fiber network in CEE, Turkey, with 37 patent applications the Middle East and the Caucasus NPM/CEM: Network Performance Monitoring and Health Campuses Customer Experience Management solutions used Fintech Solutions More than 114 major POPs in Europe, ME and by telecom operators in Turkey and in the world Asia IoT Platform and Solutions ULAK: Turkey’s first and only LTE base station Unique Solutions SAP Consultancy Services development project •AMEERS: New path connecting WE to ME SEBA: Broadband Access technology for fixed Business Applications (Document networks Management, Law Process Management) •SEA-ME-WE-5: Submarine cable system connecting Europe to Africa, ME and Asia Commercialization of R&D activities CRM and Business Intelligence Member of ONF and ONAP via US based Self Service and Automation Solutions subsidiary NETSIA Managed Services Leading role in Türk Telekom Network 2727 Transformation Project Leader customer service Leading and largest edtech Corporate venture capital Payment services company solutions company company in Turkey company Electronic Money License from E-educational products, covering Beyond traditional call center • Focus on investing in early stage BRSA services, solutions such as all grades from Pre-School to and scale-up companies primarily sales and marketing, social High School in healthcare, energy and education Strong position in Direct Carrier verticals, as well as opportunistic Billing (DCB) media management, e-mailing Leading and innovative e- horizontals and payroll Education products: Raunt, Sebit Expansion plans in other 1st deal on healthcare vertical: Serving largest private and VCloud and Vitamin Doctor Turkey payment related services & public institutions with more Content and platform provider products (Digital Wallets, Money 2nd deal on education vertical: than 12,500 employees for the national e-Education Transfers, Tax/Bill payments, E- MentalUP Money) transformation project (FATIH) 3rd deal on energy vertical: Eltemtek 4th deal on healthcare vertical: Virasoft 2828

Income

Statement (TL mn) Q1 ‘19 Q4 ‘19 Q1 ‘20 QoQ Change YoY Change

Revenues 5,403 6,284 6,303 0.3% 16.6%

EBITDA 2,655 2,828 2,977 5.3% 12.1%

Margin 49.1% 45.0% 47.2%

Operating Profit 1,491 1,600 1,704 6.5% 14.3%

Margin 27.6% 25.5% 27.0%

Financial Inc. / (Exp.) (1,276) (939) (870) (7.3)% (31.8)%

FX & Hedging Gain / (Loss) (825) (366) (294) (19.7)% (64.3)%

Interest Inc./(Exp.) (370) (542) (561) 3.5% 51.5%

Other Financial Inc./(Exp.) (81) (30) (15) (49.7)% (81.2)%

Tax Expense 95 (117) (173) 48.3% n.m.

Net Income 310 545 661 21.3% 113.2%

Margin 5.7% 8.7% 10.5%

3030 Balance (TL mn) 31.03.2019 31.12.2019 31.03.2020

Sheet Total Assets 40,573 39,909 42,276

Cash and Cash Equivalents 7,350 4,946 6,484

Tangible Assets1 14,052 14,727 14,582

Intangible Assets 9,684 10,328 10,413

Right of Use Assets 1,338 1,366 1,454

Other Assets2 8,150 8,543 9,343

Total Equities and Liabilities 40,573 39,909 42,276

Share Capital 3,260 3,260 3,260

Reserves, Retained Earnings and 4,632 6,183 6,688 Other Equity Items

Interest Bearing Liabilities3 24,456 20,783 22,932

Bank Borrowings and Bonds 23,342 19,642 21,688

Lease Liabilities 1,114 1,141 1,243

Other Liabilities4 8,225 9,683 9,396

(1) Tangible assets include property, plant and equipment and investment property (2) Major items within other assets are trade receivables, due from related parties, inventories, deferred tax asset, tax assets and other current assets. (3) Includes short-term and long-term borrowings and lease obligations (4) Major items within other liabilities are deferred tax liability, trade payables, provisions, income tax payable, due to related parties, other current liabilities and provisions 31 for employee termination benefits Cash Flow Statement (TL mn) Q1 ‘19 Q4 ‘19 Q1 ‘20 QoQ Change YoY Change

Operating Cash Flow 2,172 4,018 2,597 (35.4)% 19.5%

Investing Cash Flow (729) (2,118) (1,012) (52.2)% 38.8%

CAPEX (608) (2,205) (918) (58.4)% 51.0%

Other Investing Activites (121) 87 (94) n.m. (22.6)%

Financing Cash Flow1 1,492 (1,678) 133 n.m. (91.1)%

Net Change in Cash Position2 2,936 222 1,718

(1) Includes currency translation differences (2) Blocked deposits are included in operating activities rather than net cash position

3232 Revenue Breakdown (TL mn) Q1 ‘19 Q4 ‘19 Q1 ‘20 QoQ Change YoY Change

Fixed Voice 673 666 671 0.8% (0.3)%

Broadband 1,550 1,776 1,839 3.6% 18.7%

Mobile 2,022 2,312 2,273 (1.7)% 12.4%

TV 83 93 92 (0.3)% 12.1%

Corporate Data 449 477 484 1.4% 8.0%

International Revenues 222 275 306 11.1% 37.5%

Other1 326 411 371 (9.8)% 13.9%

IFRIC-12 99 294 286 (2.5)% 187.9%

Eliminations (21) (20) (20) (0.3)% (4.0)%

Total Revenue 5,403 6,284 6,303 0.3% 16.6%

(1) Includes ICT companies, device sales, domestic interconnection and other revenues

3333 Opex Breakdown (TL mn) Q1 ‘19 Q4 ‘19 Q1 ‘20 QoQ Change YoY Change

Direct Costs 1,205 1,390 1,391 0.0% 15.4%

Interconnection 425 485 515 6.3% 21.3%

Tax 493 572 570 (0.3)% 15.6%

Provisions for Doubtful Receivables 58 46 54 18.3% (6.2)%

Cost of Equipment and Technology 145 197 157 (20.4)% 8.5% Sales

Other Direct Costs 84 90 94 3.9% 11.7%

Commercial Costs 198 277 214 (22.5)% 8.1%

Other Costs 1,257 1,529 1,467 (4.1)% 16.7%

Network & Technology 425 431 467 8.3% 9.8%

Personnel 775 953 907 (4.8)% 17.0%

Other 57 145 93 (35.8)% 65.0%

Sub Total 2,660 3,196 3,072 (3.9)% 15.5%

IFRIC-12 88 260 253 (2.5)% 187.9%

Total OPEX 2,748 3,456 3,325 (3.8)% 21.0%

3434 Debt Profile Net Debt Low debt ratio among peers Net Debt (TL bn) Net Debt/EBITDA Türk Telekom 1.38 Net Debt / EBITDA

Orange (France) 2.05 2.30 1.93 1.83 1.86 1.86 1.76 Deutsche Telekom 2.53 1.55 1.41 1.38 Etihad Etisalat 2.62

BT Group 2.62

Telefonica 3.19 18.1 17.1 17.4 12.9 14.1 15.8 16.5 15.9 16.0 Vodafone 3.29

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Telecom Italia 3.90

Note: Net Debt calculation includes market valuation (MTM) of Foreign Currency TL money swap transactions. Source: Bloomberg Türk Telekom’s ratio is based on Q1’20 financials; other’s based on their latest Net Debt/EBITDA calculation does not include extraordinary provisions in EBITDA calculation. data Maturity Profile Cash FX Breakdown Gross Debt FX Breakdown

up to 1 yr EUR TL 1 to 2 yr FX 34% TL 10% 9% 24% 7% >5 yr 50% TL 10% 4% EUR 24% Q1 ‘20 Q1 ‘20 Q1 ‘20 Q1 ‘20 23% 6.5bn TL 21.7bn TL 60% 53% FX hedged 2 to 5 yr Including 2024 & with cash 2025 maturity 26% 66% bond (USD FX hedged USD 500mn) USD with PCCS All loans are senior unsecured 3535 Debt Profile Prudent Balance Sheet Management ‣ FX Risks reduced via Participating Cross Currency Swaps (PCCS), FX based cash and higher utilization of TL based financing ‣ Hedge in both principal and interests of designated debt instruments ‣ Diversified funding terms of instruments (bonds, ECAs, commercial loans, and IFIs) and geography ‣ Significant improvement in cash flow generation with normalized Capex cycle and increasing EBITDA

Corporate Credit Ratings Net FX Exposure * Increasing Cash Flow* (USD mn equivalent ) (TL mn)

Fitch Ratings 2,600 6,518 Long Term Rating: BB- 2,353 5,054 Outlook Stable 1,767

S&P Global Ratings 1,238

794 Long Term Rating: BB- 664 1,705 446 370 Outlook Stable 225

Stand-alone Credit Profile (SACP): Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q1 '18 LTM Q1 '19 LTM Q1 '20 LTM *Net FX exposure is calculated as FX based financial debt less FX hedge position less FX *Unlevered cash flow is defined as net cash provided by operating and bbb- based cash and cash equivalents. Debt calculation excludes lease obligations. investing activities from operations.

3636 Operational Q1 ‘19 Q4 ‘19 Q1 ‘20 QoQ Change YoY Change

Highlights Total Access Line (mn) 14.5 14.6 14.8 1.2% 2.0%

Fixed Voice Subscribers1 (mn) 9.9 10.0 10.1 1.0% 2.0%

Naked Broadband Subscribers (mn) 4.6 4.6 4.6 1.6% 1.9%

Fixed Voice ARPU (TL) 22.7 22.2 22.3 0.4% (1.6)%

Broadband Total Subscribers (mn) 11.0 11.4 11.6 2.3% 5.3%

FTTH/B Subscribers (‘000) 1,391 1,645 1,740 5.8% 25.1%

FTTC Subscribers (‘000) 2,263 2,571 2,707 5.3% 19.6%

Broadband ARPU (TL) 47.1 52.0 53.5 2.8% 13.6%

Total Tivibu Subscribers2 (thousand) 3,660 3,470 3,414 (1.6)% (6.7)%

Tivibu Home Subscribers3 (thousand) 1,681 1,605 1,595 (0.6)% (5.1)%

Tivibu ARPU (TL) 15.1 18.0 18.2 1.1% 20.8%

Mobile Total Subscribers (mn) 22.1 22.9 23.2 1.1% 5.0%

Mobile Postpaid Subscribers (mn) 12.8 13.7 14.0 1.9% 9.2%

Mobile Prepaid Subscribers (mn) 9.3 9.3 9.2 (0.1)% (0.7)%

Mobile Blended ARPU (TL) 30.6 33.4 32.5 (2.7)% 6.1%

Mobile Postpaid ARPU (TL) 38.4 42.7 40.1 (6.1)% 4.3%

Mobile Prepaid ARPU (TL) 19.6 18.9 20.6 9.0% 5.4%

(1) Includes PSTN and WLR Subscribers (2) Includes IPTV, DTH, and Tivibu GO subscribers (3) Includes IPTV and DTH subscribers 3737 Guidance

2020 2020 Revised 2019 YE TL mn Guidance Guidance

Revenue 23,657 Around 14% growth Around 13% growth (exc. IFRIC 12)1

EBITDA 11,170 Around TL 12.4 bn TL 12.4 bn – TL 12.6 bn

CAPEX 4,940 Around TL 5.8 bn Around TL 6.4 bn

(1) IFRIC 12 adjustment is a non-operational revenue line booked in conjunction with upgrades to our fixed line infrastructure such as the upgrade from copper to fiber based network

3838 CAPEX

‣ Major Capex areas are fiber network roll-out in fixed line, network investments in mobile and IT transformation projects

Capex* & Capex / Sales

CAPEX (TL mn) CAPEX/Sales

20% 20% 21% 19% 19% 19% 19% 18% 17% 16% 17% 16%

Other*

42% 4,940 4,087 Mobile 3,221 2019 2,929 3,027 2,278 2,435 20% 2,007 2,205 2,146 1,745 1,717 39% Fixed

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * Other Capex includes IT related capex, Capex for subsidiaries, Capex for new revenue streams, IFRS 15 capitalization and other 3939 * Capex figures exclude license fees Shareholder

Remuneration ‣ Dividend policy is to distribute the maximum amount of distributable profit subject to relevant articles of the Company’s Articles of Association

Dividend Distribution Dividend Yield & Payout Ratio

Dividend (TL mn) Dividend per Share (TL) Dividend Payout Ratio Dividend Yield

0.64 0.69 0.43 0.45 0.54 0.53 10% 0.26 9% 9% 8% 9% 7% 0.24 4% 4% 2,413 2,244 92% 92% 92% 91% 93% 86% 85% 1,897 1,841 1,590 70% 1,490

912 841

2008 2009 20101 2011 2012 22013 2014 2015 3 2008 2009 20101 2011 2012 22013 2014 2015 3

1) The cap in the first legal reserve was reached in 2010 2) 2013 dividend payout ratio was revised to 70% with BoD decision to prepare for any potential transaction for implementation of integration of the group

Note: Based on General Assembly decision, no dividends distributed for the activity years 2016 & 2017 & 2018. 4040

Shareholder Structure

Banco Bilbao Vizcaya Hacı Ömer Sabancı Holding Argentaria

40.8% 49.9%

LYY (UK) International Akbank Türkiye Garanti Bankası Türkiye İş Bankası Other Holdco Limited

35.6% 22.1% 11.6% 11.7% 19.0%

100%

Turkey Wealth Fund LYY* 55% 5%

15% 25% Republic of Turkey Ministry of Free Float Treasury and Finance

Note: Turkey Wealth Fund has 1.68% public share ownership. 4242 *LYY Telekomünikasyon A.Ş. ‣ Türk Telekom is member of BIST Sustainability Index since creation with its long lasting emphasis on Corporate Environmental, Social and Governance policies and exemplary practices ‣ The only telecom company qualified to be included in the BIST Corporate Governance Index since Governance 2009 ‣ Türk Telekom is a member of FTSE4GOOD Index Series ‣ Türk Telekom, which has carried out exemplary projects in the field of sustainability, became a member of the UN Global Compact platform, which is the largest corporate sustainability initiative in the world.

9.29 9.40 9.02 9.18 8.72 8.91 Weighted Average

9.06 9.24 8.82 8.93 8.54 8.79 Board of Directors

8.69 8.76 8.46 8.69 Shareholders 8.45 8.46

Public 9.73 9.77 9.86 9.89 Disclosure and 9.45 9.66 Transparency

9.93 Stakeholders 8.40 8.68 9.27 9.56 9.86

2014 2015 2016 2017 2018 2019 4343 Regulatory 2013 March 2015

• Mobile on-net price floor for August Actions 2011 TCELL formulated by Mobile Termination Rate • LTE tender was held April 1.7x • Mobile off-net price cap was April 2018 increased by 4% • 75% reduction in MTRs on January SMS price cap was • SMS SCT rates for mobile voice, decreased by 48% • July fixed voice, mobile data, September and fixed data was unified • 20% reduction in MTRs • Deregulation on MTRs on at 7.5% international calls and September 2010 liberalization on their pricing • Duct Sharing officially April October started • About 52% reduction in • ICTA’s fiber decision: MTRs FTTH/B will be excluded • 17% cut in double tandem from the market analysis FTR process until 25% fiber market share or for 5 years 2008 • 38% decrease in GSM to GSM retail price cap April • TL per minute pricing 2016 • Interconnection rate introduced decrease in Fixed (10%) and December April Mobile (33%) 2009 Naked Broadband services • LTE Service Launch November • started August • 3G tender held January • Mobile on-net price floor • Mobile Number Portability • About 50%-55% reduction in MTRs on SMS regulation for TCELL was introduced lifted 2019 March • New Electronic October Communications Law • Reduction in SCT rate (25% January 2014 The deadline to shift Port passed to 5%) on internet services • Fair usage quota was lifted Transmission Model • April 2012 July • On-net price floor for • Calls over fixed line TCELL January infrastructure was deregulated. Accordingly, May • WLR was introduced Türk Telekom is no longer • About 29% reduction in November designated as having SMP (significant market power) MTRs Deregulation on FTRs on • in fixed voice market • MVNO regulation in place international calls and liberalization on their July pricing • 3G service launch September • Fixed number portability introduced • Local call liberalization 4444 Invitel Acquisition History Brand Unification Acquired Pantel Türk Telekom unified mobile, (rebranded as Türk Aycell Merger fixed voice, fixed broadband and Telekom International), the with Aria TV brands under single “Türk leading wholesale capacity Aycell merged with İŞ- Avea Share Telekom” brand, while keeping and data services provider Separation from TİM’s Aria and officially Transaction Bond Issuance Türk Telekomünikasyon A.Ş., in Central and Eastern Türk Telekom issued USD named “Avea İletişim Acquisition of TTNET A.Ş., and Avea İletişim Bond Issuance Post Office Europe to complement its 1bn bond in tranches, at Türk Telekom successfully Hizmetleri A.Ş” İŞ-TİM’s 40.55% Hizmetleri A.Ş. legal entities Türk Telekom separated international carrier USD 500mn each, with a completed its 500 million stake in Avea, raising total intact from the Post Office business and infrastructure maturity of 5 and 10 Dollar bond offering of 6- stake in Avea to 81.12% years year maturity 2004 1995 2010 2016 2006 2014 2019

2001 2015 2008 2018 2013 2005 Aycell Avea Share Establishment of CVC Established Public Offering Transaction Avea share transfer Company Türk Telekom’s GSM IPO with a listing on the transactions were The Corporate Venture Capital operator, Aycell Istanbul Stock Exchange Integration completed and Türk Company was established under “ TT established (Aycell later Privatization and the sale of 15% stake Project Initiated Telekom has became the Ventures Proje Geliştirme A.Ş.” name named as AVEA after Privatized through a 55% owned by the Treasury Integration project for a sole owner ofAvea İletişim merging with Aria 2004) stake sale to Oger to the public customer oriented Hizmetleri A.Ş Shareholder Change Telecom organization 55% shares of Türk Telekom was transferred to LYY Telekomünikasyon A.Ş. (LYY) from OTAS 4545 Türk Telekom Investor Relations

[email protected] ttinvestorrelations.com

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