Financial Highlights
Bülent AKSU
| CAPITAL MARKETS DAY 2018 24 1 2015 CMD GUIDANCE
2 NEW 3-YEAR GUIDANCE
3 ASSET LIGHT INITIATIVES
4 IFRS IMPLICATIONS
| CAPITAL MARKETS DAY 2018 25 2015 CMD GUIDANCE & ACTUAL RESULTS
REVENUE GROWTH 2015 Guidance Actual (2015 – 2018) (2016 & 2017) 23% 12% • Turkcell Group CAGR 10% -14% Targets reached one year ahead
21% • Launch of 4.5G Turkcell Turkey 11% CAGR ~10% • Data & digital services
22% Turkcell • Digital transformation International CAGR ~15% 2% • Data growth in Ukraine & 4G in Belarus 79% 44% Other • Financial services Subsidiaries CAGR ~50%
| CAPITAL MARKETS DAY 2018 Financial Highlights 26 1 2015 CMD GUIDANCE
2 NEW 3-YEAR GUIDANCE
3 ASSET LIGHT INITIATIVES
4 IFRS IMPLICATIONS
| CAPITAL MARKETS DAY 2018 27 SUSTAINABLE ORGANIC REVENUE GROWTH
New 3-year Guidance (2018 – 2020)
• 4.5G user penetration TURKCELL GROUP Turkcell Turkey CAGR 12%-14% • Increasing multiplay customers CAGR (%)
14%-16% 10%-14% Turkcell • Launch of 4G in Ukraine CAGR 18%-20% International • Digital services
Other • Financial services & payment solutions CAGR 36%-38% Subsidiaries • Energy business CMD 2015 guidance 2018-2020E
| CAPITAL MARKETS DAY 2018 Financial Highlights 28 EBITDA OUTLOOK
EBITDA Growth EBITDA Margin (%) New 3-year Guidance (2018 – 2020) TURKCELL GROUP Turkcell Turkey CAGR 15%-19% 37%-40%
32%-35% Turkcell International CAGR 36%-38%
CMD 2015 guidance 2018-2020E Other Subsidiaries CAGR 26%-28%
| CAPITAL MARKETS DAY 2018 Financial Highlights 29 CAPITAL EXPENDITURES
OPERATIONAL CAPEX / SALES* OPERATIONAL CAPEX BREAKDOWN*
Turkcell Turkey Turkcell International 23% 21% 6% 18%-19% 9% 14% 15% 7% 17% 16%
90% 94% 86% 83% 93%
2016 2017 2018E 2019E 2020E 2016 2017 2018E 2019E 2020E
• Majority of 4.5G investments in Turkey completed • Fiber investments to continue • 4G investments in Ukraine and Belarus
* Excluding license. Impact of new IFRS changes on Capex are classified as non-operational
| CAPITAL MARKETS DAY 2018 Financial Highlights 30 1 2015 CMD GUIDANCE
2 NEW 3-YEAR GUIDANCE
3 ASSET LIGHT INITIATIVES
4 IFRS IMPLICATIONS
| CAPITAL MARKETS DAY 2018 31 CONSUMER FINANCE COMPANY
• Licensed consumer finance company under banking regulation • More transparent handset financing • Asset-backed securities / NPL sales reduce «Working Capital»
HANDSET FINANCING
TRY Bn 4.7 ~5.0 3.8 3.1 2.4 4.2 ~4.9 3.1 1.4 0.5 0.1 2015 2016 2017 2018E Turkcell Contracted Receivables TCF Consumer Loans
| CAPITAL MARKETS DAY 2018 Financial Highlights 32 FINTUR SALE PROCESS
• Transfer of shares for US$153 million Geocell Turkcell Telia Company • Regulatory approvals to be received
41.45% 58.55%
Fintur Holdings B.V. • Transfer of shares for EUR222 million Azercell • Transaction completed
• 41.45% minority stake in Fintur Kcell • Continuous progress • Decided to exit together with Telia Company • Several interested parties • Classified as «assets held for sale» • Negotiations ongoing Moldcell
| CAPITAL MARKETS DAY 2018 Financial Highlights 33 GLOBAL TOWER
NET REVENUE TREND Turkey 8.288 TRY mn
Ukraine 1.103 257 CAGR 15%-20% Tower portfolio: 2018-2020 10.337 Belarus 831 2017 2018E 2019E 2020E TRNC 115 TENANCY RATIO
• First and only TowerCo of Turkey 1.53 Medium 1.8x-1.9x • Regional player operating in 4 countries Term • Long term, visible revenue stream & strong profitability 2017 2018E 2019E 2020E • Listing still on the agenda
Note: Tower portfolio includes owned and managed towers and towers for which contract management services are provided
| CAPITAL MARKETS DAY 2018 Financial Highlights 34 TURKCELL SUPERONLINE
FIBER CUSTOMERS thousand 1,044 1,204 735 899 Fiber market share (%) 53%
2014 2015 2016 2017
NET REVENUE TREND TRY Mn 3,210 2,429 1 719 1,253 , CAGR 37% Independent Fiber Backbone 2015-2017
2014 2015 2016 2017 • 21 cities, 3.1 million homepass EBITDA TREND • Fiber network of 40.2 thousand km TRY Mn 1 276 900 , • Fiber Joint Venture initiative 327 548 CAGR 57% 2015-2017 • Already started to share infrastructure 2014 2015 2016 2017
| CAPITAL MARKETS DAY 2018 Financial Highlights 35 STRONG BALANCE SHEET
NET DEBT POSITION AND LEVERAGE Investment Grade TRY Mn Total Leverage: 1.26x BBB- Negative 4,248
Goal: Leverage below 1.5x BBB- Negative Telco-only 3,576 Leverage: 0.59x Ba1 2017 Stable
Net debt excl. TCF TCF loan porfolio
| CAPITAL MARKETS DAY 2018 Financial Highlights 36 FX MANAGEMENT
• «Comfort zone»: Open FX position below US$500 Mn • Cash held in hard currency & cross currency swap transactions
DEBT (2017) NET FX POSITION (US$ Mn) CAPEX & OPEX (2017)
Before hedging After hedging Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 30% (203) (144) CAPEX 13% (91) (330) (125) 70% 40% Comfort Zone (US$500 Mn) 60% (688) 87% 10%
(1.239) OPEX Nominal 90%
TRY 12.5 Bn (1.987) FX Local Currency FX Local Currency
| CAPITAL MARKETS DAY 2018 Financial Highlights 37 1 2015 CMD GUIDANCE
2 NEW 3-YEAR GUIDANCE
3 ASSET LIGHT INITIATIVES
4 IFRS IMPLICATIONS
| CAPITAL MARKETS DAY 2018 38 IFRS 9, 15 & 16 IMPLICATIONS
IFRS 9 IFRS 15 IFRS 16 (EARLY ADOPTION)
Classification & measurement Recognition of Accounting of of financial instruments revenue & related contract costs contracts containing leases
Financial Impacts Financial Impacts Financial Impacts • No impact on revenue • No material impact on revenue • No impact on revenue • No material impact on EBITDA • Positive impact on EBITDA • Positive impact on EBITDA • Non-operational Capex to increase • Non-operational Capex to increase • Lease liabilities to increase
No impact on revenues and operational Capex in our next 3 year plan. A positive 4-5pp impact on EBITDA margin.
| CAPITAL MARKETS DAY 2018 Financial Highlights 39 RAISING OUR 3-YEAR GUIDANCE
2015 - 2018 2018 2018 - 2020 TURKCELL GROUP (2015 CMD) REVISED NEW
REVENUE GROWTH 10% - 14% 14% - 16% 14% - 16%
EBITDA MARGIN 32% - 35% 37% - 40% 37% - 40%
OP. CAPEX / SALES* 17% - 16% 19% - 18% 18% - 16%
Guidance figures reflect the expected impacts of IFRS 9, IFRS 15 and IFRS 16. A positive 4-5pp impact is reflected in EBITDA margin guidance.
*Excluding license
| CAPITAL MARKETS DAY 2018 Financial Highlights 40