PETKİM PETROCHEMICAL HOLDING CORP.

INVESTOR PRESENTATION June 2012 AGENDA

1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials

2 Outlook for the First Quarter of 2012

Global Petrochemical Industry Domestic Petrochemical Industry

• Improvement in the profitability for European ethylene crackers • Strong demand for petrochemical products in the first quarter starting from February of 2012 • Surge in costs due to rise in energy and feedstock prices • High costs stemming from high feedstock prices • Domestic demand growth by %14 in the first two months of • Contraction in demand in Emerging Markets followed by 2012 improvement in demand. • Lower Euro/Dollar parity improve competitiveness of European • Consolidation/rationalization of high cost, inefficient capacities producers • Political and economic uncertainty, complexity, volatility, ambiguity • Fast growing Turkish market attracts foreign producers in Q1 2012 • New capacities in the Middle East/Far East • High oil prices due to uncertainties in MENA region, • Low capacity utilization throughout the sector (80%) • 1 yılında Avro Bölgesi’ndeBölgesi nde yaşanan finansal sıkıntıların • 011 yılının ikinci yarısPetkim’sından itibaren küresel Strategy ekonomide yaşanan Financial Performance olumsuzluklar

• Capacity maximization • Expansion in sales • Improvement in efficiency • Strong export performance • Cost cutting efforts • Improvement in margins in the first quarter compared to the previous quarter • Smart debottlenecking investments • Deterioration in margins in the last two quarters • Expanding trading activities • Strong equity structure • Strategic partnerships (Air Liquid and APM Terminals)

3 2012+

Global Petrochemical Industry Domestic Petrochemical Industry

• 5,2% annual growth expectation for global demand in basic chemicals and plastics • A slower domestic demand growth is expected to edge • Especially Asia and BRIC countries are the driving force for down the global growth in 2012, compared to 2010 and the global demand 2011. • Product prices stage a comeback due to higher feedstock • Domestic product demand is expected to grow by 8-10% prices and supply constraints in the first quarter of 2012 between 2010-2015 • Cut in propylene and butadiene production resulting from • Thermoplastics market size expected to exceed USD 8.5 switch to ethane as feedstock for ethylene production bn • Benefit from the possible rise in propylene and butadiene • Attractive market with high growth rate prices for naphtha users with wide range of by-product advantage • ‘ The US back in play’, with the US ethylene producers’ feedstock advantage of shale oil&gas • Geopolitical and economical uncertainties

4 Petrochemical Industry

Global EBIT (EBIT/ton) Naphtha, Ethylene MED Prices $/mt $/Ton $/Ton

Contraction in margins

Ethylene (MED) Naphtha (MED) Source: CMAI Source: Platts ETHYLENE-NAPHTHA SPREAD CONTRACTED IN 2011 . THE SPREAD CYCLICAL AND MODERATE IMPROVEMENT IN GLOBAL EBIT IMPROVED IN THE FIRST QUARTER OF 2012 DESPITE OIL PRICES AT RATES. HIGH LEVELS.

1990-2011 Feedstock Prices ($/MT) Platts Global Petrochemical Index 1.000 The average naphtha price=674 USD Index improves in 800 The average naphtha between 2005-2011 price=191 USD the last three 600 between 1990-2000 months. 400 200 00

NaphthaNafta NWE NWE CrudeCrude Oil Oil-Brent- Brent Propane Source: Chemsystems Source: Platts PLATTS GLOBAL PETROCHEMICAL INDEX* ROSE BY 24% IN AVERAGE OIL PRICES EXPANDED 3 TIMES AS MUCH IN THE THE FIRST QUARTER OF 2012 COMPARED TO THE PREVIOUS LAST SEVEN YEARS COMPARED TO THE 1990-2000 PERIOD. QUARTER OF LAST YEAR.

* The Platts Global Petrochemical Index reflects a compilation of the daily price assessments of physical spot market ethylene, propylene, benzene, toluene, paraxylene, low density polyethylene (LDPE) and polypropylene as published by Platts and is weighted by the three regions of Asia, Europe and the United States.

5 AGENDA

1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials

6 PETKİM

STAR Refinery TÜPRAŞ

PETKİM PLANTS ADDITIONAL LAND FOR EXPANSION POTENTIAL

PETKİM PORT

PETROL OFİSİ

7 Products

PP Knitting yarn, sacks, carpet thread, ropes and hawsers, BUTADIENE table cloths, napkins, C4 doormats, felt, hoses, radiator PROPYLENE Rubber pipes, fishing nets, brushes, Automobile tire blankets ACN Textile fibers, artificial wool, ABS (Acrylonitrile Butadiene Styrene) resins NAPHTHA

LDPE LPG Bags, greenhouse covers, film, cables, toys, pipes, bottles, hoses, packaging HDPE BENZENE Packaging film, construction and Detergent, water pipes, bottles, soft drink Parts of white goods, crates, toys, jerry cans, barrels ETHYLENE AROMATICS TOLUENE MEG Solvents, explosives, Polyester fiber, polyester film, pharmaceuticals, cosmetics antifreeze O-X - PA VCM - PVC - EDC Pigments, plasticizers, Pipes, window and door frames, synthetic chemicals, blinds and shutters, cables, bottles, polyester construction materials, packaging P-X - PTA film, floor tiles, serum bags Polyester fiber, polyester CA-CAUSTIC SODA resin, polyester film Textile, detergent, aluminium

8 h osinQ12012. th. tons 491 to up edged Sales 2012. inQ1 USD 674mn trend with on upward are netsales Petkim’s efrac nteFrtQatrof 2012 First Quarter the in Performance Sales (th. ton ) ton (th. Sales 2010 Q1 380 2011 Q1

2011 467 Net Sales (USD mn) (USD Net Sales 2012 2010 Q1 491 Q1 451 2011 Q1 602 2012 Q1 674 288 mn. USD time with all the of record beat Exports xot UDmn) Exports (USD 2010 Q1 118 2011 Q1 192 2011 2012 Q1 288 9 Company Overview

PETKİM FACILITIES • First complex established in 1965, • 15 main plants, 7 auxiliary units second complex established in 1985 • Located in Aliağa near Izmir • The sole petrochemical producer in • Sits on a land of 19 mn sqm Turkey • Harbour, water dam, power • 25% domestic market share and generation unit (226 MW) dominant in an ever growing market • Adjacent to Tüpraş Aliağa Refinery • USD 674 mn net sales in Q1 2012 • USD 5,2 mn EBITDA

MAIN FEEDSTOCK&PRODUCTS PRODUCTION

• Naphtha, LPG, C4, Condensate • Gross production of 807 th. tons in Q1 • Main product goups: olefins, 2012 polyolefins, vinyl chain, aromatics and • Capacity utilization rate (CUR) of 97% other basic chemicals in Q1 2012

10 Petkim’s Ownership Structure

Petkim Stock Performance Ownership Profile

Source: Reuters

Petkim Share Information (31 March 2012)

Closing Price (TRY/Share) 2,22 • Privatization process was completed in May 2008. STEAŞ Market Cap (TRY mn) 2.220 Group acquired 51% stake in Petkim at an amount of USD Market Cap (USD mn) 1.253 2.04 bn. • Upon restructuring in STEAS Group Company, 25% stake Free Float (%) 38,7 of Turcas acquired by SOCAR and the Group’s commercial name became SOCAR Turkey Enerji A.Ş. • SOCAR Turkey Energy&SOCAR International DMCC Source: Reuters Consortium acquired 10,3% stake of Privatization Agency in May 2012. 11 State Oil Company of The Azerbaijan Republic (SOCAR)

• Founded in 1992, • State Oil Company of The Azerbaijan Republic, • One of the most important oil and natural gas producer in the world, • Oil products exported to 33 countries, including USA, China, Brazil, Chile, Thailand. • «Azerikimya», «Azerigaz» important enterprises of SOCAR

• Drilling and exploration of oil and natural gas, oil production and oil refinery activities together with oil and natural gas transportation, distribution and petrochemicals,

• 8.5 mn tons of crude oil, 7.2 bn m3 of natural gas production in 2010, • 2 oil refineries on balance, 6.2 mn tons of refining capacity. • 80,000 employees.

• Ba1 Stable (Moodys’), BB+ Stable (S&P), BBB- Stable (Fitch) • Asset size of USD 20 bn, • Equity size over USD 10 bn, • Operating profit margin of 34%, • Sustainable, high profit margins, • High return on asset and equity.

12 Products and Capacities

Plant Capacities

PVC 150,000 MEG 89,000 ETHYLENE 520,000 LDPE 350,000 ACN 90,000 Propylene 240,000 HDPE 96,000 PTA 70,000 C4 140,000 PP 144,000 Py-Gas 390,000 BENZENE 150,000 P-x 136,000 O-x 50,000 CHLORINE 100,000 VCM 152,000 PA 34,000 MB 10,000 Plastic Products 4,000 Power (MW) 226

13 Petkim: Net Sales (Volume)

Net Sales (th. ton) Q1 2012 Breakdown of Sales Volume Q1 2012

2000 1800 1.745 1.638 1600 1400 1200 1000 800 11% increase 491 600 467 442 400 200 0 2010 2011 Q1 11 Q4 11 Q1 12

14 Petkim: Net Sales (USD mn)

Net Sales (USD mn) Q1 2012 Breakdown of Sales Revenue Q1 2012

2.500 2.339

2.000 1.943

1.500

1.000 27% rise 674 602 532 500

0 2010 2011 Q1 11 Q4 11 Q1 12

15 Petkim: Trading Activities

Sales of Imported Products (th. ton) Q1 2012 Sales of Imported Products (USD mn ) Q1 2012

300 300 269 248 250 250

200 200 83% rise 55% rise 150 150

100 100 75 73 66 56 54 53 40 36 50 50

0 0 2010 2011 Q1 11 Q4 11 Q12010 12 2011 Q1 11 Q4 11 Q1 12

16 Petkim: Exports

Exports Revenues by Years and Q1 2012 (USD mn) Breakdown of Export Revenues by Product 2011

900 834 800 700 600 531 500 %44 rise 400 288 300 192 200 200 100 0 2010 2011 Q1 11 Q4 11 Q1 12

17 Petkim: Exports (Region)

Breakdown of Exports by Region Q1 2012

Caucasus and Middle Middle Af rica East and Asia 4% Gulf 3% Countries 3%

• Products are exported to 40 different countries. • Benzene, C4, LDPE, Py-Gas and P-X are the main exports products Asia Pacific • Petkim is the second exporter in chemical 37% industry in Turkey in 2011. • The exports account for 43% of total sales in Q1 2012. North and Europe Latin 54% America 0,01%

18 Petkim: Product & Raw Material Prices

Petkim Thermoplastics and Naphtha Price Changes Petkim EBITDA Performance (USD mn)

Index (2007 January =100) 250 200 195 145 136 150 145 99 100 68 95 50 45 0 5 -5 2009 2010 2011 Q1 11-11 Q4 11 Q1 12 -55 THERMOPLASTICS NAPHTHA Raw Material and Product Prices (USD/ton)* Raw Material, Unit Price and Margin

USD/ton Plant Cost Base USD/ton Breakdown** 2000 1.600 200

1500 1.400 150

1000 1.200 100

500 1.000 50

0 800 0 LDPE HDPE PP MEG PVC 600 Margin (Right Axis) -50 Naphtha Cost Product Prices 400 Unit Price -100 Naphtha 200 -150

* As of Q1 2012 ** Overhead is not included in plant cost base

19 Initiatives Aiming to Improve Operational Efficiencies

Total Production / Energy Unit Consumption W.Europe Ethylene Capacity Utilization Rates (%)

Source: CMAI Efficiencies on Marketable Production Per Capita Petkim Ethylene Capacity Utilization Rates (%) 1200 3000 Net Sales per Capita (tho USD) (Left Axis) Marketable Prod. per Capita (tons) (Left Axis) 1000 2800 # of Employees (Right Axis) 800 110 2600 100 Low capacity in June and July 2011 600 due to maintenance shutdown 2400 90 400 Yearly Averages 80 2011=> 88% 2200 200 70 2010=> 99% 2009=> 96% 60 0 2000 Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec 2008 2009 2010 2011 Q1 2012 2009 2010 2011 2012

• Initiatives for cost cutting and energy efficiency improvement • Maximization of capacity utilization • Feedstock flexibility (ability to use LPG/C4 at a certain ratio) • Process optimization (APC, DCS implementation) • Expanding trading activities • Important maintenance shutdown completed in 2011

20 AGENDA

1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials

21 Capital Expenditures and Planned Capacity Increases

Capital Expenditures of Petkim (USD mn) • Moderate gearing of capital investments instead of fully financing with equity • Increasing capacities of existing plants with minor capex- smart debottlenecking investments • Optimizing processes in the plants ( implementation of APC and DCS Systems) • Investments to enhance energy savings and operational efficiencies on existing plants (such as optimization and modelling of steam and energy system) • Operational excellence studies • High value added new products and investments on new plants

Planned Capacity Increases (th. ton) New Plants Planned (th. ton)

Plants Current After Date Plants Capacity Date Capacity Cap Increase BDX 100 2015 Ethylene 520 587 2014 XLPE 30 2014 PA 34 49 2012 WPP 25 MW 2013 PTA 70 105 2014

22 Carbon Management, Environment and Petkim

• Participated in International • 700 hectares of wind energy Carbon Disclosure Project. production area next to • Determined greenhouse gas Petkim’s production site. emissions. • Project partner and main • Planned greenhouse gas sponsor to Conversion of reduction strategies, formed Waste to Energy and announced its policies. Campaign with cooperation • Saved significant on energy of ENVERDER. consumption amount with the • Aiming to reduce energy completed 83 projects in the costs with a wind power last 3 years. project, an environmentally • Reduced approximately safe and renewable source

200,000 tons of CO2 emission of energy. with the projects completed in • Active participation to the last 3 years. ‘Smiling Cap Project’ • Reduced approximately 9% of arranged by Aliağa City CO2 emission with the Council. completed investments in • Planted 22,300 saplings in 2011. ‘Haydar Aliyev Friendship and Remembrance Forest’ founded in Yeni Foça.

23 Operational Excellency

Energy Efficiency Excellency Model - Process Optimization Modelling Improvement of Process - Application of New Management System S Technologies U Key Performance S Indicator Surveillance T System A Health, Environment, Current Situation Safety I Analysis Studies N - Risk Management - Work Incident Reporting A Measurement of - Sustainable Environment B Shareholders’ - Contractor Management Asset Management Expectations I - Process Safety - Plant Maintenance System Management - Turnaround Management L Market and Competition - Risk and Reliability I Analysis Management T - Troubleshooting Y Management Updating Strategical Plan

24 AGENDA

1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials

25 Growth Plan and Strategy

DOWNSTREAM • ADVANTAGES OF WIDE PRODUCT RANGE • HIGH VALUE ADDED SPECIALTY CHEMICALS • CLUSTER MODEL (PETKİM “VALUE-SITE”)

UPSTREAM 5 PILLARS OF GROWTH PLAN STAR Refinery ENERGY (SOCAR Turkey) PRODUCTION

DISTRIBUTION (SOCAR Turkey) LOGISTICS

26 Short Term Growth Plans

Capacity Increase Energy Logistics

Capacity increase by: • Energy optimization study with KBC • New distribution centers • Debottlenecking and (steam and energy opt.) • Strategic partnership in port modernization investments • Fuel flexibilty in energy production business (APM Terminals) • Maximizing asset utilization • Advance control system application in aromatics, ethylene and VCM plants • Increased transportation by rail • Investments on new products • Obtained 25 MW licence for power • Capability for storage facilities and capacity expansion generation from wind leasing • Ethylene and thermoplastics • PETKİM is a project partner and main revamping sponsor of Convertion of Waste to Energy Campaign

Trading Business Feedstock Flexibility Sales&Marketing Transformation • Increasing LPG utilization in feed • Meeting total needs of customers • Reviewing the current performance slate of cracker • Increasing product trading • Assessing potential improvement • Utilization of Fluid Catalytic • New financial instruments to promote areas in organization, maintenance, Cracking (FCC) and C4 stream sales energy, HSE and operations • Improving IT infrastructure with ERP and integrated Manufacturing Execution System (MES)

27 Mid to Long Term Growth Plans

“UPSTREAM” INVESTMENTS SECURING FEEDSTOCK WITH THE REFINERY INTEGRATION

To be built by SOCAR&TURCAS • Allocation of 130 ha area for the refinery investment • Start of area preparation activities • 10 million tons /year crude oil capacity • Product slate: naphtha, LPG, diesel, kerosene, jet fuel (no gasoline) • 30% investment cost reduction due to existing infrastructure • Creation of synergy with the vertical integration • Feedstock security for Petkim • Additional revenue from services to the refinery (ex. USD 3 mn annual rental income) TO REACH 40% MARKET SHARE WITH “DOWNSTREAM” INVESTMENTS –VALUE SITE

• Available infrastructure for potential investments • Double digit demand growth in the Turkish chemical sector • Increasing competitive advantage with sinergies created • New investment opportunities with local and foreign companies • Cluster Model (PETKİM “VALUE – SITE”)

28 2023 Petkim

STAR Refinery Petrochemical Production Capacity: 10 MMTPA New Petrochemical Products; BDX, XLPE Capacity Increase of Current Plants; PA, PTA, 600.000 MTPA Ethylene Production

WIND ENERGY Min 25 MW Energy Production

PETKİM Port Min. 1,5 million TEU Container Handling Terminal Capacity

29 PETKİM: Growth Strategy

GROWING WITH LOGISTICS INVESTMENTS

LOGISTICS ADVANTAGES • To become one of the key logistics main • Increasing harbor capacity and utilization terminals in the region rate • High capacity potential of container handling • Storage of various solid, liquid, and gas • High capacity potential of liquid and dry chemicals cargo handling • Paving the way for potential investments • High capacity of logistics support units on transportation • Direct access to national railway hubs and • Import and export opportunities for national transit ways and highways chemicals • Tank Farm

30 PETKİM: Growth Strategy

GROWTH WITH LOGISTICS INVESTMENTS

A Head of Terms was signed with one of the industry-leading companies, APM Terminals BV, for the development of Petkim port.

Details of Head of Terms

Operating rights of port for 28 years 1st phase construction of main port by 2013, Option to extend by 4 years 2nd phase construction by 2014 1.5 million TEU Container Handling capacity The infrastructure part by Petlim, equipment 42 hectare main port area, part by APMT 11 hectare off-dock service area, Investment cost around USD 350-400 mn, Starting the container handling activities Possibility to increase capacity up to 3 immediately at the off-dock area, million TEU.

31 AGENDA

1 I Petrochemical Industry 2 I A Glance at Petkim 3 I Investments 4 I Growth Plans and Strategies 5 I Key Financials

32 Financial Structure and Profitability (USD mn)

Shareholders’ Equity EBITDA

Q1 Q1 956 2012 5 2012

Q1 Q1 1,084 2011 68 2011

Q1 Q1 980 2010 29 2010

Total Assets Net Sales

Q1 Q1 1,604 2012 674 2012

Q1 Q1 1,614 2011 602 2011

Q1 Q1 1,344 2010 451 2010

33 Financial Tables

Income Statement (USD mn)(IFRS ) 2009 2010 2011 Q1 11 Q4 11 Q1 12 Net Sales 1.342 1.943 2.339 602 532 674

Cost of Goods Sold (-) (1.269) (1.790) (2.224) (527) (557) (662)

Gross Profit (Loss) 73 153 114 75 (25) 12

Gross Profit (Loss) Margin 5,4% 7,9% 4,9% 12,5% -4,7% 1,8%

Operating Expenses (-) (44) (63) (73) (19) (18) (24)

Other Operating (3) (5) 62 (0,4) 30 (0,3) Income/(Expenses),net

Operating Profit/(Loss) 26 85 103 55 (13) (12)

Financial Income/(Expenses) 16 9 (25) 4 (16) 10

Profit/(Loss) Before Taxation 41 93 78 59 (29) (3)

Deferred Tax 34 (7) (11) (10) 7 (2)

Net Profit/(Loss) for the Period 75 87 67 49 (22) (4)

EBITDA 99 145 136 68 (11) 5 34 EBITDA Margin 7,4% 7,5% 5,8% 11,3% -2,1% 0,8% Financial Tables

Balance Sheet (USD mn) (IFRS) Cash&Bank Debt (USD mn) 31/12/2010 31/12/2011 31/03/2012 Cash&Cash Equivalents 130 77 71 200 182 147 137 Trade Receivables 268 309 402 150 131 86 100 77 Inventories 281 258 261 63 61 71 Other Current Assets 35 61 111 50 28 0 Current Assets 715 706 845 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Non-Current Assets 821 708 759 Cash Bank Debt TOTAL ASSETS 1,537 1,414 1,604 Receivables, Inventories and Payables (USD mn)

Financial Liabilities 57 137 182 600 402 400 309 Trade Payables 339 273 320 308 365 267 320 261 264 272 258 Other Payables 45 36 56 200 0 Short-Term Liabilities 441 445 557 -200 -152 Long-Term Liabilities 61 67 91 -266 -273 -320 -400 -319 -600 Shareholders’ Equity 1,035 901 956 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 TOTAL LIABIL.& OE 1,537 1,414 1,604 Trade Receivables Inventories Trade Payables

35 Disclaimer

This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Petkim Petrokimya Holdings A.Ş. (the “Company”) or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group nor shall it or any part of it form the basis of or be relied on in connection with any contract, investment decision or commitment whatsoever. This presentation has been made to you solely for your information and background and is subject to amendment. This presentation (or any part of it) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior written consent of the Company.

36 Investor Relations

We welcome your questions, comments and suggestions. Our corporate headquarters office address is:

Petkim Petrochemical Holding Corp. PO. Box.12 Aliağa, 35801 İzmir/ TURKEY To contact us with respect to shareholding relations for individual and corporate investors, please call directly or send an e-mail to:

Şafak AYIŞIĞI Hayati ÖZTÜRK Füsun UGAN Assistant General Manager Corporate Governance & General Manager (Finance) Investor Relations Coordinator

Tel :+90 232 616 1240 (Ext:2040) Tel :+90 232 616 1240 (Ext: 2150) Tel :+90 232 616 1240 (Ext:3620) •Direct :+90 232 616 2297 •Fax :+90 232 616 2297 •Direct :+90 232 616 6127 •Fax : +90 232 616 8519 •E-mail :[email protected] •E-mail :[email protected] •E-mail :[email protected]

Also, please visit our web site at www.petkim.com.tr for further information and queries.

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