Sustainability Report 2019

Technology for life, hope for the future Table of contents Turkcell Sustainability Report 2019 | 2

Our sustainability achievements in 2019 4 Message from the Chairman of the Board 10 Message from the CEO 12 About the report 14

1. Corporate governance 15 2. Creating social value 3. Our interaction with with stakeholders 35 the environment 55 1.1 About Turkcell 16

1.2 corporate profile: Vision & mission and target 17 2.1 Social investment 36 3.1 Energy management and opposition with climate change 57 1.3 Partnership structure and senior management 18 2.2 Public health 43 3.2 Water management 63 1.4 Operational and financial information 19 2.3 Turkcell Academy for social development 44 3.3 Waste management 64 1.5 Turkcell sustainability strategy 23 2.4 Creating social value with public collaboration 47 3.4 Our environmental value chain 66 1.6 Exemplary corporate citizenship and business ethics 28 2.5 Sponsorships 48

1.7 Agile risk and crisis management 32 2.6 Transparent stakeholder interaction 51 2.7 Partnerships 54 Table of contents Turkcell Sustainability Report 2019 | 3

4. Our productive Turkcell family 68 6. Pre-eminent digital services & 8. Effective and secure content innovation 95 management 113 4.1 Being a strong and agile team (employment) 69

4.2 Equal opportunity, inclusiveness and diversity 73 6.1 Technology leadership and digitalisation 96 8.1 Data privacy and security 114 6.2 Pre-eminent digital services 100 4.3 Employee happiness 74 8.2 Cyber security 115 6.3 Techfin solutions 101 4.4 Employee health and safety (ohs) 78 8.3 Responsible content management 116 6.4 Being a digital solution partner 102 4.5 Turkcell academy 80 6.5 Digital customer experience 105 4.6 Talent management and young talents 83 6.6 Digital business culture transformation 9. Value-oriented, responsible 4.7 Digital remote working experience 86 at turkcell 107 supply chain 119 6.7 Patents 108 9.1. Effective and transparent purchasing applications 123

9.2. Green supply chain management 125 5. Human happiness-oriented 7. Effective financial accessible services 87 management 109 9.3. Supporting local suppliers 126 9.4. Public sector, operator and supplier partnerships 5.1 Customer experience orientation 88 7.1 Economic performance 110 128 5.2 Customer safety and satisfaction 90 7.2 Financial risk management 112

5.3 Inclusion and accessibility of our services 92 7.3 Access to long-term and sustainable financing 112 Appendix 1: GRI content index table 139

Appendix 2: UNGC progress table 143 Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 4

Establishing an autonomous structure by adopting a holistic approach in compliance with the affiliated local and international capital market legislation to which the company is affiliated

An exemplary Corporate Citizenship identity with our business ethics and transparent communication practices

A total of 1,403 hours of training Received “Turkey Ethics Award” by on risk-based prioritization in the Ethical Values Center Association compliance with the affiliated (EDMER) for the 3rd consecutive local and international capital year since its inception market legislation

Corporate governance Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 5

UNDP BCTA

Providing service to 2 Video thousand hearing impaired UN WEP Call customers per month Whiz Kids Project - Representation in Center Access to free artificial the GSMA Board of Participation in initiatives such as United intelligence, robotics Directors for the 3rd time Nations Development Program, Business and space science Call to Action, United Nations UN trainings for more My Gem Inside - Women Empowerment Principles than 50,000 talented Special education students and free Digital Intelligence classes for children Women Developers of the Future training opportunities Project - Educational with autism which Platform - Training for 640 women and mobilization to employment of test specialist women for all students through reached over 40,000 100 prepare our children mobile applications students through mobile and web platform. for the digital world application to equip them digital citizenship skills, access to 50,000 students and their families

Creating social value with stakeholders Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 6

Recycle into Education Project – Donating the revenue generated from the recycled electronic devices we collect with the techno waste boxes in our stores to TEGV Protection of around 500 thousand trees by preventing paper use via our Dergilik application

ISO 50001

ISO 14064 Goal to meet our electricity needs Modem Renewal Project - renewal of Contribution to circular economy The first mobile operator to obtain ISO entirely from our modem group products which are by offering companies the 50001 Energy Management System renewable sources no longer used by our customers, repair opportunity to rent mobile phones Standard and ISO 14064 Corporate by 2030 them if needed before offering them to with the device leasing project Greenhouse Gas Emissions Calculation Goal to be customers based on demand started in 2019 and Reporting Certificate carbon neutral by 2050 Our interaction with the environment Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 7

9.3 billion unique interaction

the Apprenticeship Program – 35 32% voluntary participation of 115 million employees in 2019. Participants Female employee customers rate were able to realize their potential, and have the opportunity to get to know other units better and empathize through their way of doing business

9.3 billion unique interaction with our 35 million customers

Reverse Brain Drain Project – Welcoming 5 new teammates into our Productive Turkcell Family The most loved in 2019 800 million telecommunications Our big Productive Turkcell transactions per month in Internet speed reaching operator with our fiber Family with 5,455 Digital Operator app 10 Gbps in Turkey infrastructure employees

Our productive Turkcell family Human happiness-oriented accessible services Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 8

5G

25.1 billion TL revenue and Energy savings 3.2 billion TL net profit based 1,263 of approximately 531 on consolidated financials R&D employees 9.2 million TL new patent annually by using applications environmentally friendly solutions in infrastructure, software and business Powerful mobile processes as well as via infrastructure software features that ready for 5G provide savings based transition “Sustainability on the traffic density Linked Loan” agreement

Pre-eminent digital services & innovation Effective financial management Our sustainability achievements in 2019 Turkcell Sustainability Report 2019 | 9

93% domestic supplier ratio

“Leadership Award” and “Internet of Things More than 1,100 Cyber Security Champion” Security customers award winning IoT applications

Effective & secure content management

Value-oriented, responsible supply chain Message from the Chairman of the Board Turkcell Sustainability Report 2019 | 10

Our Esteemed Stakeholders,

Towards the end of 2019, the world was expecting a awareness that respects people, the environment and better new year, however, 2020 started as a difficult nature while meeting the changing and increasing year for everyone both economically and socially. demands and needs of our customers. While doing Although Turkey performed comparably better than so, we do not compromise on our sustainability many other countries in this process economically and approach that treats people, the environment and the health-wise, many people from different corners of economy as a whole to leave a better future for our the world lost their jobs and the people they love. children.

In such periods, companies have as great This year, in the latest Global Risk Report published responsibilities as governments. In order to overcome by the World Economic Forum (WEF), issues related possible crises in the future rapidly and with ease, to climate change rank first on the list of top risks During this difficult period, as Turkey’s Turkcell, companies must take action along with governments. that the world will face in the next 10 years in terms we stand by our Country with our strong of impact and likelihood. While leading the digital infrastructure and technology. We will continue The global crisis that started with the COVID-19 transformation necessitated by the pandemic process, outbreak creates great opportunities as well as we are working hard to make the business strategies working with our nation to overcome the challenges for many sectors. In order to make of both our company and our customers more challenges we face in the upcoming period. the most of these opportunities, we act with an sustainable. Message from the Chairman of the Board Turkcell Sustainability Report 2019 | 11

As Turkcell, we are aware of our responsibility as part of our sustainability strategy framework to increase social welfare and tackle environmental problems along with facilitating economic development.

While meeting the increasing and changing needs As it has been for 26 years, we aim to base our In 2019, I would like to thank our customers, in this period, also called as the “new normal”, we future social responsibility projects, investments shareholders, investors, employees and all our use our products and services developed with our and sponsorship activities on a foundation that will stakeholders for their increasing interest in Turkcell. domestic and national technologies to facilitate the create more social value. While we provide services With pride in being a Company that pioneered lives of our customers. While doing so, we have that improve the lives of our customers with our Turkey’s digital transformation journey, we will continue invested a total of 31 billion TL in the last five years. We technological power, we will also strive to make their to work together continuously and tirelessly in the are rightfully proud of accomplishing 48 percent of lives beautiful with our humanitarian and social value- upcoming period. network investments made in Turkey in 2019. oriented projects. Bülent Aksu In the upcoming period, we will lead Turkey and We will always stand by our commitment to never Turkcell Chairman of the Board of Directors other countries we operate in, with their technological compromise our responsible, honest and value-creating transformation. We are at the forefront of the global working principles. With the Turkcell 2019 Sustainability prosperity and sustainable development race with Report, we present our approach and performance to our globally exemplary digital services. In this era the attention of our valuable stakeholders, to manage where digitalisation has become a necessity, our our core values such as human rights, supply chain goal is to make digitization affordable for everyone transparency, business ethics, environment, health and by converting it into an accessible service for our safety, protection of customer data and respect for customers not only in Turkey but also worldwide with privacy rights. We transparently disclose our strong and a focus on sustainability. agile human capital and financial capital. Message from the CEO Turkcell Sustainability Report 2019 | 12

Dear Stakeholders, we present our achievements and developments for our country and our company in 2019. The COVID-19 pandemic, which has affected the whole world since the first months of 2020, revealed We are one of the pioneering Turkish companies the importance of the telecom industry once again. As to became a member of the United Nations Global Turkcell, we mobilized our technological infrastructure, Compact which was established to support the know-how and experience to provide continuous and implementation of the Sustainable Development good quality communication services to our customers Goals defined by the United Nations to end poverty, during this period. By doing so, we are always attentive protect our world, ensure prosperity and peace by to using technology in a way that is beneficial for 2030. We have also been a member of sustainability humankind and nature. As a Company operating in performance initiatives such as the BIST Sustainability Turkey for 26 years and sharing its success with its Index since 2015 and CDP since 2014. stakeholders, we will continue striving to improve our sustainability performance. We aim to serve as a good 2019 was one of the years when the effects of climate practice example internationally with our report, where change were felt most severely, and it revealed the necessity of taking serious action in this regard.

As the Turkcell Family, we continued adding value to life with our innovative services and solutions in 2019. We continue to follow our sustainable development strategy that focuses on people and the environment, with our infrastructure investments that allow us to deliver domestic and national technologies and developed for our customers. Message from the CEO Turkcell Sustainability Report 2019 | 13

Accordingly, we accelerated our projects where we ecosystem where women can work for leading generate energy with solar panels and wind turbines technology companies in any location they wish. In line with our prioritized target of localizing the under the leadership of our Turkcell Energy subsidiary. We have implemented environmentally friendly We also work to ensure equal opportunity in our supply chain, we provide great support to local applications in our Ankara Data Center which is Turkey’s country with our activities such as My Gem Inside, development with a 93 percent local supplier ratio. largest data center. With solar panels installed over the No Barriers Project, My Dream Partner and Sign car park at our Data Center, we became the first data Language, developed for the disabled people. Our center to produce its own electricity with solar energy Hello Hope project was carried out to overcome the provided 14.5 billion TL of loans to approximately 5.1 in Turkey. Through the electronic waste campaign, we language barrier, which is the biggest obstacle to the million customers since the first day it was founded. initiated in our stores, not only do we create awareness better integration of Syrian refugees in our country, This year, we started to provide ‘digital transformation on recycling, but we also continue to contribute to the reached more than 1 million users in 2019, and cited financing’ support to finance the smart device and other education of our children with the income generated as an exemplary project by the United Nations High technological needs of our corporate customers through by this project. Awarded by the Chartered Institute of Commissioner for Refugees (UNHCR). Financell. Purchasing and Supply (CIPS), SAP and the Istanbul Buyer Network, our supply chain practices - Turkcell Green As in the case of COVID-19, the rapidly changing global In 2019, we were chosen as Turkey’s most popular Purchasing Principles, Green Logistics Process and Green agenda accommodates new risks and opportunities. telecom operator (Lovemark) and we continued to add Material Management - reduce the environmental As Turkcell, we diversify our financing options with value to the lives of our customers with our innovative impact of Turkcell and our stakeholders and provide alternative tools such as the ones offering adjusted and inclusive approach as well as our high-quality significant cost savings. interest rates based on our sustainability performance. services. While increasing our economic contribution In this context, we can now access more advantageous to the world and serving for the benefit of our country We are developing several initiatives to empower loans compared to the average interest rates in the with our technological solutions, we further reduced our women in business life and support the endeavors led market. impact on the environment. We would like to thank all by them, to ensure equal opportunities. Our “Women our employees, our customers and other stakeholders, Developers of the Future” project which is one of We moved our competencies further in 2019 with our who made these achievements possible, and our Board the most important initiatives in Turkey developed superior digital services, digital business solutions and of Directors for their trust and support. in this context, provides guidance to women on techfin services integrating finance into technology. entrepreneurship and mobile application development. Financell, our consumer financing channel facilitating Murat Erkan We are pioneering the creation of a new business our customers’ access to technological products, has CEO About the report Turkcell Sustainability Report 2019 | 14

We work with all our strength to achieve our strategic goals. Our main priority is to create value for all our stakeholders with a business model that respects human and the nature.

Sustainability is the focal point of our core business all our stakeholders. While determining Turkcell’s the of our readers and create value for all stakeholders strategy. We are pleased to present our latest Turkcell material sustainability topics; we made a detailed with the information we disclose. Sustainability Report to our stakeholders, which analysis including global mega trends, sectoral represents our environmental, social and economic priorities recommended by independent sustainability We aim to contribute to the Sustainable Development impacts, performance and sustainable business focus, performance measurement systems, sectoral Goals by seeking ways to increase the value we published annually since 2011. sustainability criteria determined by the international create for our stakeholders by placing digitalization at umbrella organization of the mobile communication the core of our business. We consider creating value “Turkcell” and “Company” phrases indicated throughout industry, GSMA (Global System for Mobile to our country as our mission by being a responsive, the report have been used instead of Turkcell İletişim Communications) and by SASB (Sustainability Accounting responsible and an entrepreneurial institution. In Hizmetleri A.Ş. The report covers our operations from Standards Board) which brings businesses and investors this direction, while striving to continuously improve January 1, 2019 to December 31, 2019 and takes into together on the financial impacts of sustainability along our sustainability performance, we also take the account the “Core” option guidance of the Global with technology sector priorities and expectations of feedback and suggestions of our stakeholders into Reporting Initiative (GRI) Standards. We aim to achieve all our stakeholders. As a result of these comprehensive careful consideration. We would like to thank all our new successes together with our stakeholders by analyses, we formed the structure of 2019 Turkcell stakeholders who supported us as we walk along this showing a better performance each year on. Sustainability Report. path.

While preparing our report, we started out with the Our Report is also a Communication of Progress as part You can share your feedback about our Report via identification of economic, social and environmental of the United Nations Global Compact (UNGC) which we [email protected] issues that are material for the Turkcell Family and take part since 2007. We aim to increase the awareness Corporate governance

“We demonstrate an exemplary Corporate Citizenship with our business ethics and transparent communication practices.” Corporate governance Turkcell Sustainability Report 2019 | 16 About Turkcell

We are the 1.1 About Turkcell 26th year world’s first digital operator to offer Ukraine As the first company in Turkey to start mobile customers,these Turkey communications, we have been operating in services over their Northern Cyprus integrated communications and technology mobile and fixed services area since 1994. The scope of our networks. Belarus Germany products and services has reached well beyond Turkey to Ukraine, Belarus, Northern Cyprus and unique digital services Germany, a total of 5 countries. We are celebrating data We are Turkey’s largest our 26th year filled with data center operator. We are aware that effective corporate messaging governance plays an important role in making success as Turkey’s Turkcell! our business practices sustainable. Therefore, we voice aim to continuously improve our performance Three main IPTV We are operating in 5 countries to make our business model more sustainable strategic and July through our commitment to corporate one core Telecommunications 2000 governance guidelines and effective practices service area services in all our business units. With the Corporate We have the highest income Since July 2000, Governance Compliance Reports included in Digital services of 25.1 billion TL among we are the only our Annual Reports, we share our performance built-in integrated telecom Turkish company in corporate governance and the activities we Digital business firms in Turkey. solutions listed on both conduct annually with our stakeholders. BIST (Borsa Financial services Istanbul) and the platform We digitally New York Stock 10 export to Exchange (NYSE). We provide fiber data Gbps 37 countries. access at speeds up to 10 Gbps per second. Corporate governance Turkcell Sustainability Report 2019 | 17 Corporate profile: Vision & mission and target

1.2 Corporate profile: Vision & mission and target

Our vision Our target • Sustainable growth at digital services Superior digital services • To become the digital transformation for a better future leader of Turkey and No. 1 IT service provider within three years • Leadership at new generation techfin services

Our mission

Adding value to the digitalization journey of our customers both in Turkey and across the globe and enriching their lives with our continuously improving competencies and robust ecosystem Corporate governance Turkcell Sustainability Report 2019 | 18 Partnership structure and senior management

1.3 Partnership structure and We believe the importance of having high standards The term of office for members of the Board of senior management in corporate governance to maintain successful Directors is a maximum of 3 years. Each member business practices and to provide long-term is expected to have time to attend at least 75% The founding partners of Turkcell İletişim Hizmetleri economic value to our shareholders. of the board meetings and time to allow them to A.Ş. are Sonera Holding which was previously known increase their knowledge of board activities, global as Telecom Finland Ltd., currently owned by Telia The Turkcell Board of Directors represents the telecommunications industry and related sectors. In Company and TeliaSonera, Çukurova Group and shareholders of our company and is responsible to addition, the number of board memberships in other MV Holding. As of 31 December 2019, Turkcell’s main the shareholders. Establishing the company’s vision, public companies is limited to ensure that board shareholder is Turkcell Holding A.Ş., with 51% of the determining short- and long-term goals, approving members fulfill their membership responsibilities in the shares. local and international business strategies, annual best way possible. budget and budget changes can be given as Turkcell stocks have been traded on Borsa İstanbul examples to the powers and responsibilities of the You can find detailed information on the functioning since 2000 and on the New York Stock Exchange as Board of Directors. As of 2019, our Board of Directors and independence of the Board of Directors and ADS (American Depositary Share). consists of 7 Members, 3 of which are independent, Subcommittees here. and the Chairman of the Board has no executive duties. Our Board of Directors consists of 6 male and Percentage of Shareholder Value of stake (TRY) 1 female Members. share capital

Turkcell Holding A.Ş. 1,122,000,000.238 51.00% At Turkcell we hold the regular General Assembly meetings at regular intervals throughout the year. In Çukurova Holding A.Ş. 995,509.429 0.05% addition, we organize additional Board of Directors meetings during the year to ensure that the Board Other (publicly traded) 1,077,004,490.333 48.95% fulfills its responsibilities and responds to certain needs. We have 5 subcommittees working to Total 2,200,000,000.00 100.00% support the Board of Directors. Corporate governance Turkcell Sustainability Report 2019 | 19 Operational and financial information

1.4 Operational and financial information EBITDA EBIT 1.4.1 Financial indicators 18.6% 19.6%

Owing to the actions we took in strategic In 2019, we focus areas and our increased our effective balance sheet management, Strong growth performance, we strengthened our record net income: Long FX position: financial position in 2019. As our revenues increased by 18.1% to 25.1 billion TL In 2019, we closed our balance sheet with a long We publish our financial in 2019, our EBITDA margin was 41.5% and our EBIT margin FX position of 115 million USD by managing indicators in detail in our was 21.4%. By increasing our net income by 60.6%, we the neutral-long FX position in line with our target. Annual Report. achieved a record net income of 3.2 billion TL.

Turkcell Group revenues Turkcell Turkcell Turkcell (TRY million) Group EBITDA (TRY million) Group EBIT (TRY million) Group net income (TRY million) 8,788 2,021 3,246 21,292 5,380 10,426 4,500 25,137 18.1% 18.6% 19.6% 60.6% Growth Growth Growth Growth 2018 2019 2018 2019 2018 2019 2018 2019 Corporate governance Turkcell Sustainability Report 2019 | 20 Operational and financial information

Turkcell Group: Financial summary*

Profit & loss statement (million TRY) 2018 2019 Change %

Revenue 21,292.5 25,137.1 18.1%

Cost of revenue1 (9,858.0) (12,036.9) 22.1%

Gross margin1 53.7% 52.1% (1.6pp)

Administrative expenses (673.4) (779.8) 15.8%

Selling and marketing expenses (1,626.7) (1,555.2) (4.4%)

Net impairment loses on financial and contract assets (346.4) (338.9) (2.2%)

EBITDA2 8,788.0 10,426.4 18.6%

EBITDA margin 41.3% 41.5% 0.2pp

Depreciation and amortization (4,288.0) (5,046.6) 17.7%

EBIT3 4,500.0 5,379.9 19.6%

EBIT margin 21.1% 21.4% 0.3pp

Net finance income/(costs)) (1,687.0) (1,727.7) 2.4%

Finance income4 1,677.1 297.5 (82.3%)

Finance costs4 (3,364.1) (2,025.1) (39.8%)

Other income/(expense) (140.1) (346.6) 147.4%

Non-controlling interests (156.3) (30.2) (80.7%) Corporate governance Turkcell Sustainability Report 2019 | 21 Operational and financial information

Turkcell Group: Financial summary* (Cont.)

Profit & loss statement (million TRY) 2018 2019 Change %

Share of profit of equity accounted investees (0.1) (15.7) n.m

Income tax expense (495.5) (785.6) 58.5%

Discontinued operations - 772.4 n.a

Net income 2,021.1 3,246.5 60.6%

* Our audited annual consolidated financial statements including our consolidated statements of financial position as of December 31, 2019 and 2018 and our consolidated statements of profit and loss, comprehensive income, changes in equity and cash flows for the two years in the period ended December 31, 2019 and the related notes included in this annual report have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Report”). The following financial and operational overview focuses principally on the developments and trends in our business in the full year 2019 and should be read in conjunction with the IFRS report. The figures are expressed in Turkish Liras (TRY) unless otherwise stated. A year on year comparison of key indicators is provided and figures in parentheses following the operational and financial results for the year end 2019 refer to the same item for the year end of 2018 unless otherwise stated. (1) Excluding depreciation and amortization expenses, (2) EBITDA is a non-GAAP financial measure, (3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses, (4) Fair value loss and interest expense regarding derivative instruments and the respective fair value gain and interest income regarding derivative instruments are represented on a net basis, Starting from Q219, interest income on financial assets and interest expenses for financial liabilities, both measured at amortized cost, are represented on a net basis, Historical periods were restated to reflect this change.

Consolidated balance sheet data (year end) (million TRY) 2018 2019 Change %

Cash and cash equivalents 7,419.2 10,238.7 38.0%

Total assets 42,765.3 45,715.0 6.9%

Long-term debt 13,119.6 12,677.4 (3.4%)

Total debt 20,155.5 20,305.7 0.7%

Total liabilities 26,711.7 27,632.0 3.4%

Total equity 16,053.6 18,082.9 12.6% Corporate governance Turkcell Sustainability Report 2019 | 22 Operational and financial information

1.4.2 Operational indicators Turkcell Turkey operational indicators 2018 2019 Change Number of subscribers (million) 36.7 35.7 (2.7%) We continued our success in the financial field through our operations as well. We Mobile postpaid (million) 18.8 20.4 8.5% publish our operational indicators every Mobile prepaid (million) 14.9 12.4 (16.8%) year in our Annual Report. Fiber (thousand) 1,385.6 1,484.7 7.2% ADSL (thousand) 905.6 719.1 (20.6%) In 2019, total number of customers reached 46.7 million, including 35.7 million Superbox (thousand)1 33.5 323.2 864.8% customers in Turkey. Cable (thousand) - 49.2 n.a. IPTV subscribers (thousand) 613.4 719.7 17.3%

1 Superbox subscribers are included in mobile subscribers.

1.5 million Increased data consumption: The monthly average data Mobil Residential consumption ARPU Fiber ARPU of our 4.5G (TRY) (TRY) 36.2 42.6 67.0 subscribers has 57.0 exceeded 10 GB. Increased postpaid mobile subscribers: 17.7% 17.5% Increased fiber subscribers: In 2019, we registered 1.5 million net postpaid mobile Growth Growth Our fiber subscriber base increased by 99 thousand subscribers. This has been identified as our best 2018 2019 2018 2019 on an annual basis, reaching a total of 1.5 million. postpaid net subscriber gain over the past 10 years.

Image 1 ARPU: Average Income per Mobile User (Excluding M2M) Corporate governance Turkcell Sustainability Report 2019 | 23 Turkcell sustainability strategy

1.5 Turkcell sustainability strategy term value. We aim reducing the inequality between and their short- and long-term needs. We aim to communities by paying attention to the accessibility reach more people with every project we implement Being a leading company in today’s rapidly changing of our services, protecting our home, the world by and increase our impact; while reducing economic, environment requires an agile response to the needs combatting climate change and becoming a good environmental and social risks that both Turkey and the of today and tomorrow. As Turkcell, we aim to corporate citizen and much more with our Turkcell world are facing and by also creating opportunities. produce digital solutions to global and social problems Common Values and Code of Business Ethics. with the most up-to-date and innovative technologies By adopting this vision, we re-evaluated our material in all our business areas. Our committees responsible for making decisions topics for our stakeholders and Turkcell in 2019, as on economic, environmental and social impacts at we do every year. Thus, we have made sure that While determining Today, we believe that telecommunications industry Turkcell are Early Detection of Risk Committee, Audit our strategy, business model and activities are in line our sustainability goes far beyond ensuring communication between Committee and Corporate Governance Committee at with the most current needs and strongly positioned the two individuals. Mobile communication and the level of the Board of Directors. In addition, working against risks. Following the leadership of our Early strategy, we used the digitalization have the capacity to develop solutions groups established under the supervision of our Ethics Detection of Risk Committee and Risk Management reports and forecasts and products that can be used in almost all areas Committee and Senior Management also have the units, we are taking strong steps towards a of international of our lives such as health, education, safety, public authority on sustainability issues. Among the economic, sustainable future by evaluating economic, social and organizations such as sector and emergency situations. We know that these environmental and social conventions, principles and environmental risks that our company faces within the World Economic solutions directly contribute to the acceleration of other initiatives we signed and supported can be listed the scope of our risk universe consisting of processes, Forum (WEF) and the industrial processes and the reduction of costs. as GSMA’s Climate Change Digital Statement, mPower products and services, programs, projects and Intergovernmental Youth initiatives, United Nations Global Compact strategic initiatives. Access to information and communication (UNGC), Business Council for Sustainable Development Panel on Climate technologies has become one of the important factors Turkey (BCSD), United Nations Development Program 1.5.1 Trends Change (IPCC). affecting the development levels of countries, and Business Call to Action (UNDP BCTA) and United therefore the quality of life of societies. As a company Nations Women Empowerment Principles (UN WEP). We closely follow the sustainability trends affecting that provides integrated technology services, we We see sustainability as an indispensable component our world and therefore our stakeholders. As a serve our customers, employees, suppliers and non- of our vision and develop our strategies in this direction response, we update our business model and governmental organizations, the society in short. We in order to achieve our goals and ensure continuity sustainability strategy according to the risks and create our services, products and activities by taking of our services and product quality. While building opportunities that may affect the Turkcell ecosystem. into account sustainability principles and creating long- our business model, we consider all our stakeholders Corporate governance Turkcell Sustainability Report 2019 | 24 Turkcell sustainability strategy

The new additions to our material sustainability topics for 2019 are; Effective & 1.5.3 Turkcell 2019 materiality matrix Secure Content Management, Human Happiness-Oriented Accessible Services, Agile Risk and Crisis Management, Pre-eminent Digital Services & Innovation, and Creating Social Value with Stakeholders. In 2019 Turkcell Sustainability Report, includes the Effective & secure Human happiness-oriented content management accessible services material topic disclosure as sections and subsections together with the topics High disclosed as material in the 2018 Turkcell Sustainability Report. Preeminent digital services & innovation

1.5.2 Our material topics Effective financial Agile risk and crisis Our productive management Turkcell family As Turkcell, we give importance to the needs and demands of our stakeholders management and we constantly interact with them. In this context, while determining our material Combatting topics, we considered the priorities of Turkcell stakeholders. climate change Exemplary corporate citizenship and business ethics For detailed information about our stakeholders and how we manage our Value-oriented, Creating social value stakeholder relations, please visit the “Creating social value with stakeholders” responsible with stakeholders section of the report. supply chain

While determining our material issues, we benefited from frameworks, recommendations and reports prepared by leading institutions in sustainability and telecommunications sector such as Global System Association for Mobile Waste and electronic waste management Communication (GSMA), Sustainability Accounting Standards Board (SASB). Impact on stakeholder assessments and decisions assessments on stakeholder Impact

For the topics in the Materiality Matrix, we shared our Management Approach per relevant GRI Standards in detail. You can see the relevant guidance in the GRI Content Index at the end of our Report.

The analyses we draw from the reports and recommendations of international Low organizations also greatly contributed to the establishment of our sustainability strategy. Low Importance to Turkcell High Corporate governance Turkcell Sustainability Report 2019 | 25 Turkcell sustainability strategy

Material topic Content Associated Sustainable Development Goals (SDG)

- Network security and coverage

Human happiness-oriented - Network durability and reliability accessible services - Network investment and service quality - Customer-orientedness

- Technology and innovation - Technology leadership and digitalization Pre-eminent digital services & - Being a digital solution partner and digital customer experience innovation - Techfin solutions becoming widespread

- Digital business culture

- Financial risk and liquidity management - Diversification of financing resources Effective financial management - Transparent investor communication and relations - Increasing the market value and trading volume

- Data privacy and security Effective & secure content - Cyber security & privacy management - Responsible content management

Corporate governance Turkcell Sustainability Report 2019 | 26 Turkcell sustainability strategy

Material topic Content Associated Sustainable Development Goals (SDG)

- Strong and agile team - Employment - Educational studies for institutional needs Our productive Turkcell family - Employee health and safety - Talent management and young talents

- Business & private life balance - Employee happiness, loyalty and digital talent development

Combatting climate change - Turkcell 2030 Renewable Energy Target (discussed in Our interaction with the environment section) - Energy efficiency

Exemplary corporate citizenship - Fair and sustainable regulatory framework and business ethics - Ethics and reputation management / human rights (discussed in Corporate governance - Artificial intelligence and responsible use of new technologies, section) human-orientedness

- Intellectual property

Agile risk and crisis management (discussed in Corporate governance - Strong risk management section) - Effective crisis management Corporate governance Turkcell Sustainability Report 2019 | 27 Turkcell sustainability strategy

Material topic Content Associated Sustainable Development Goals (SDG)

- Technology for good - Social investment - Social health Creating social value with - Technology literacy stakeholders - Stakeholder dialogue

- Transparent stakeholder interaction - Patents & partnerships

- Green supply chain management - Equal opportunities for suppliers and Value-oriented, responsible supply supporting local initiatives chain - Supply chain transparency

- Supplier diversity

- Recycling efforts Waste and electronic waste management - Waste disposal methods (discussed in Our interaction with the - Zero waste project environment section) - Circular economy Corporate governance Turkcell Sustainability Report 2019 | 28 Exemplary corporate citizenship and business ethics

1.6 Exemplary corporate citizenship and business ethics

As Turkcell, we are aware of our duties With the developing technology and We have also been involved in the work for We will continue to abide by our principle and responsibilities towards the society, our digitalization, improvements and further efforts the creation of the “Framework for Responsible of being honest, consistent, fair and ethical stakeholders and humanity, along with our are required in the field of human rights. In this Limits on Facial Recognition Use” lead by the towards our stakeholders with whom we goal of being a pioneer in every field we context, we attend workshops organized by WEF (World Economic Forum). create value for our customers every moment touch. While we protect our Turkcell Family UNICEF (United Nations International Children’s with our innovative and value-added services with the Turkcell Common Values and Code Emergency Fund) to evaluate the effects of You can access the details of our work on and solutions. of Business Ethics (TODİEK), we are proud artificial intelligence on children’s rights and to how we manage the negative effects of to display exemplary ethical behaviour. With determine international principles on artificial technology and digitalization in the “Effective the responsible business model we adopt, we intelligence and children’s rights. & secure content management” section. prefer to be the solution instead of being part of the problem. Corporate governance Turkcell Sustainability Report 2019 | 29 Exemplary corporate citizenship and business ethics

1.6.1 Our common values We are rich in our differences We believe in open We are an agile team communication • We respect the age, • We believe that being rapid, gender, disability, • We establish sincere and honest result-oriented and flexible lead to We value people lifestyle, religious relationships at all levels. success. • We believe that our employees are at the belief, political • We share our knowledge, • We take strength from our desires foundation of our success. preference of our support different opinions. and enthusiasm. • We use our knowledge and experience for the stakeholders and we common good of humankind. do not discriminate. • We learn from our mistakes; we • We run together to the same target. question ourselves to get better. • We add value to society with social responsibility and environmental awareness. • We do not compromise on compliance with the principles of freedom of communication under We are here for our We make difference the scope of the relevant legislation. customer first • We do not give up from leadership. • We believe that every customer • We support creativity and innovative ideas in evert field, deserves the best, so we always especially in technology. provide the highest quality We own our social values service. • We take responsibility, make bold decisions and reach the • We mind and respect the values of our society. outcome. • We provide confidence to our • We exercise due care to ensure that our activities customers; we ensure that they comply with our social values. feel special.

• We are available for every customer and we provide quick solutions. Corporate governance Turkcell Sustainability Report 2019 | 30 Exemplary corporate citizenship and business ethics

In order to adopt the Turkcell Code of Business 1.6.2 Ethics and reputation management Ethics, create awareness by providing trainings we Since 2000, Turkcell is the only Turkish company on Corruption Practices in Foreign Countries call Turkcell Common Values and Business Ethics whose shares are traded not only on the (FCPA) are particularly prominent in our long- Istanbul Stock Exchange, but also on the New term, sustainable corporate DNA. In light of the principles of transparency, Rules to our employees through various channels. York Stock Exchange (“NYSE”) in the United honesty and reliability, we constantly Turkcell expects its group companies to States of America at the highest level (ADR Level keep our Turkcell Ethics and Reputation comply with the same anti-bribery and 1.6.3 Anti-bribery and corruption III). Accordingly, Turkcell monitors both Turkish corruption standards. In compliance with Management approach alive. With this and American capital market regulations and the main framework set by the ABC Policy; approach, we share our ethical rules Within the scope of Anti-Bribery and Corruption implements the rule set that is directly applied ABC Program has been carried out by the created by our Ethics Committee with our (ABC), we put the requirements of national and from both sides, especially for corporate Corporate Governance & ABC Program Office employees through the Turkcell Common governance structures and financial reporting international legislation as an integral part of our daily (“ABC Office”) since April 2018, which takes the processes. Values and Code of Business Ethics and long-term business conduct. In this context, our necessary preventive measures to comply with (TODİEK) handbook and apply them in Board of Directors has made it one of its primary We can mention; the structure, operating rules these rules, provides risk-based training (1,403 integrity with Turkcell policies, values and goals to act in accordance with international and independence of our Board of Directors hours of training was provided in 2019) and principles. Under the leadership of our standards on anti-bribery and corruption. Our and committees, transparency supported by internal communication. With the establishment Board of Directors and senior executives, compliance program, put into practice in line with reporting as per the reporting obligations of of the ABC Office, direct and effective access Capital Markets Board of Turkey (CMB), US channels have been established for our Board of we make these rules the top priority of our our Turkcell Group Anti-Bribery and Corruption (“ABC”) way of doing business for all employees. Securities and Exchange Commission (SEC), Directors, committees and Senior Management Policy approved by the Board of Directors, is one of Borsa Istanbul (BIST) and NYSE, effective internal on ABC compliance issues. ABC Office is the Thus, we help achieving the Sustainable the fundamental tools that embody our work against control over the financial reporting process, first point of contact at Turkcell in order to Development Goals, “Decent Work bribery and corruption. ethics rules applied to the company’s senior understand the values, rules and processes and Economic Growth” Target 8.5 executives and managers responsible for finance determined within the scope of the ABC and “Peace, Justice and Powerful as an obligation of SEC as some elements of Program and to these exist together with the Turkcell Group Internal Auditors team has Institutions” Targets 16.5 and 16.6. Turkcell’s effective corporate processes. company dynamics. been awarded Turkey Ethics Award for the 3rd time in a row by the Ethical Practices based on US Public Company Thus, fulfilling the Accounting Reform and Investor Protection Act, th Values Center Association requirements of the 16 also known as Sarbanes-Oxley (SOX) Law, seen Sustainable Development (EDMER), an organization as an initiative aimed at improving the control of Goal to significantly reduce which evaluates organisations companies’ financial reporting and supporting corruption and all forms of commitment to ethics. effective corporate management, and the Law bribery (Target 16.5). Corporate governance Turkcell Sustainability Report 2019 | 31 Exemplary corporate citizenship and business ethics

Business 1.6.4 Competition management Ethics Our employees, customers and suppliers employees can report cases of violations As Turkcell, we take the necessary precautions following can convey their reasonable doubts and to regulations or ethically inappropriate the leadership of our legal team to carry out all our feelings regarding cases that violate the situations through the company’s activities in accordance with relevant legislation to rules and regulations contained in the intranet, internal forms, telephone, e-mail maintain effective competition in the markets we Turkcell Common Values and Code of ([email protected]) and directly operate. We inform all our business teams about Business Ethics Manual to the Turkcell or indirectly to the Audit Committee the content and general principles of our country’s Ethics Committee through the Ethics Line ([email protected]) via our competition legislation. As we examine all contracts (532 210 4444). At the same time, our Ethics Committee. which carry risk, we provide training to our business teams and implement competition compliance guidelines. Our competition adaptation strategy is carefully prepared to minimize risks that may be encountered. We proceed our operations by consulting and getting the approval of the Competition Authority when necessary, before we implement important constructs.

In 2019, four out of five investigations carried out by the Competition Authority against Turkcell resulted in our favour and no violation or sanction decision taken against Turkcell. Only in one investigation, the judicial process is still on going and necessary legal actions have been taken regarding the administrative fines applied as a result of this investigation. Corporate governance Turkcell Sustainability Report 2019 | 32 Agile risk and crisis management

1.7 Agile risk and crisis management You can find detailed information on how we manage We established the Early Detection of Risk the performance and health risks of our base stations Committee in 2012 to support the Board of We manage our corporate risk strategy considering in the Human Happiness-Oriented Accessible Directors by carrying out necessary measures in information security, financial, business continuity, Services section of our report. early identification of risks that pose a danger to operational, market, strategic and legal risk, which we may the existence, development and continuity of the encounter in realizing our goals and strategies. In our Agile 1.7.1 Proactive risk management company, and by working on risk management. We Risk and Crisis Management processes, we satisfy share the risk report our committee prepares every 2 the requirements of the Target 8.2 of Sustainable Within the scope of Turkcell Enterprise Risk months with an independent audit company as well Development Goal 8 “Decent Work and Economic Management, we act to prevent risks without as our management. Our Board of Directors regularly Growth”. We report compliance audits to the Audit experiencing their negative impact. We publish our evaluates the risks identified in the report. Turkcell Committee and the General Manager through our Internal risks and risk management mechanisms in detail in Business Continuity Management, which we have Audit Directorate, and the activities conducted with our the “Review of Risk Assessment” section of our Annual prepared and developed in accordance with the Corporate Risk Management Unit to our Early Detection of Report. ISO 22301 Business Continuity Management System, Risk Committee. We constantly review our Internal Audit continues to operate including our group companies mechanism against functional and corporate risks in the We handle the Turkcell Enterprise Risk Management and suppliers. Through this management system, we framework. process in an integrated manner to our fundamental aim to ensure the safety of life as the priority in cases management processes. To achieve this, we define of disasters and emergencies, protect our image of With our Turkcell Group Corporate Risk Management our Turkcell Enterprise Risk Management procedure reliable, reputable and robust communication operator Policy, we define how our corporate risk management in compliance with the COSO’s (Committee together with our group companies, ensure the is operated. In this Policy, we aim to identify, analyse of Sponsoring Organizations of the Treadway continuity of our calls, messaging, internet and social and manage the risks or opportunities that may affect Commission) Risk Management Framework and the security services, prepare business continuity plans Turkcell’s process of achieving goals, thereby maximizing ISO 31000 Risk Management System. We also include taking into account customer expectations, corporate opportunities and reducing the negative effects of different methods such as workshops, brainstorming policies and legal obligations. We conduct regular uncertainty. sessions, interviews, research reports and studies with drills to ensure the effectiveness of our plans during The risks we may face for 2019 include macroeconomic, units that are exposed to risks. emergencies. commercial, political, social, financial, regulatory, and legal risks, as well as risks specific to telecommunications industry such as the performance and health risks of base stations. Corporate governance Turkcell Sustainability Report 2019 | 33 Agile risk and crisis management

1.7.2 Effective crisis management COVID-19 effect note We consider providing simultaneous and effective crisis management against all natural, economic As Turkcell, like all states and organizations Dear Stakeholders, “Turkcell Group Our Initial Take on and social crises as one of the most important in the world, we benefited from Effective COVID-19” released on 10 April 2019 features of Turkcell’s internal power and corporate Crisis Management during the Corona We are going through an enormous published on turkcell.com.tr reputation. We shape our resource and information Virus (COVID-19) pandemic which we saw global crisis that has and is expected management accordingly, especially considering the the first cases at the end of 2019 and was to impact each and every sector in a Within the scope of Business Continuity impact of digital transformation in crisis management. declared as a pandemic by the World variety of ways. As Turkcell, we believe Management, we took action to secure We realize the vital importance of effective crisis Health Organization in 2020. During this we have acted fairly quickly in taking the health of our greatest value, Productive management, which we had first-hand experience period, where our way of doing business precautions and actions both for our Turkcell Family. On March 13, 2020, we during the pandemic as of mid-March 2020 and was significantly affected, we also had the customers and at the company level implemented our home-office system to present our business model transformation during the opportunity to experience the life-saving against the arising challenges. This cover more than 10 thousand call center pandemic to our stakeholders. feature of technology and digitalization. In presentation aims to summarize our employees. We provided the necessary this period of uncertainty, we understood the actions, challenges, and anticipated hygiene materials to our field workers. importance of taking quick actions for our long term opportunities. Due to limited employees, customers and business partners. visibility, we are not yet in a position In order to make instant crisis management to share exact numerical updates, or more effective, we created a Coordination During this period of global crisis, we work a view on our guidance; however, we Board with the management level with the responsibility and awareness of will do our best to discuss this more partnership. As part of Business Continuity, providing unprecedented service accessibility thoroughly in our Q1 2020 earnings we have implemented our critical as Turkey’s Digital Operator. We work with release some weeks from now. personnel backup system and shared our an agile compliance process to provide our Working from Home Principles with our Turkcell Family continuity of communication, Hope you all stay healthy. employees. access to news, and work to ease negative Murat Erkan, CEO impacts on trade and economy to ensure that our Turkcell Family can continue to work wherever possible. Corporate governance Turkcell Sustainability Report 2019 | 34 Agile risk and crisis management

In the “Our productive Turkcell family” section of the • We provided monthly 6 GB free mobile internet for online Fahrettin Koca’s tweets regarding fight against COVID-19 report, you can find detailed information about the measures education portals and monthly 10 GB free internet for TV+ can be received as a BiP message even if the user is not a we take for our employees as well as our remote working users. Twitter member. practices. • We have provided 6 GB free internet to lines of university We also consider COVID-19 crisis as an opportunity to Afterwards, we implemented an active crisis management by students to ease access online education platforms. remind us that we need to be prepared and act against reviewing financial planning and activities to be carried out natural disasters, climate crises and other possible global with our business partners. • We have made Consular Call Centers calls free of charge crises that significantly affect companies and communities. for international Turkcell subscribers. As a technology company, we are aware of our We set off with the goal of providing uninterrupted service responsibility and we always continue our activities to make to our healthcare professionals and institutions that need • We provided network management optimization by our business model accessible and effective especially reliable and effective technology. providing active management of network density with in areas such as online shopping, online education and artificial intelligence. public health. We manage • We provided 500 minutes and 5 GB of internet per month our supplier diversity, our free of charge for healthcare professional subscribers and • We have directed our network operation teams to be employee health and free 10,000 minutes for family physicians. ready at any time and to put up spare capacity. financial performance, especially our supply chain • We provided ease of collection with Paycell for healthcare • We pre-ordered critical equipment and replenished our management in a way to professionals and users over the age of 65. stocks. maintain our strong position in periods of crisis. • In fiber internet, we quadrupled the upload speed and • With our BiP application created opportunity to track increased the download speed to 50 mbps. In this way, Ministry of Health’s COVID-19 Live Map showing live we have helped our customers connect to life from their situation of Turkey and the World. Also, with BiP, we homes easier with remote education, remote work and established a system where announcements from the video conferencing applications. Ministry of Health, notifications and Health Minister Dr. Creating social value with stakeholders

Sports investment Millions of content and Access to Video call center Reached nearly Access to free artificial intelligence, robotics Close to of 56 million technology accessible to more than 220 service to 2 HIMMS 30,000 and space science training for more TL to Athletics more than 250 1 million thousand thousand Awards on students with than 50,000 students with Whiz Kids visitors at Turkcell and Swimming thousand people with users with hearing impaired Community My Gem Inside project; and free training for all students Dialogue Performance disabilities through My Dream Hello Hope customers per Health project across across Turkey with mobile applications and Projects between Partner, Sign Language and application Museum month Turkey web coding platform. 2013-2020 My Gem Inside applications Creating social value with stakeholders Turkcell Sustainability Report 2019 | 36 Social investment

We believe in the healing power of technology.

As Turkey’s Leading Integrated Telecom Company, 2.1 Social investment we consider developing products and services with social benefits and to use them for the good As Turkcell, we attach great importance to equality as one of our main responsibilities. With the of opportunity with technology in focus, and we social investments we make and by transforming implement social responsibility projects within technology for good, we evaluate and this scope. We aim for everyone to have equal implement every idea that will make the lives of opportunity to access information. disadvantaged groups easier and put it into service No Barriers Project: We offer practical and life- for our society. facilitating solutions in many different areas by using We carry out our projects and investments creating digitalisation under the roof of “No Barriers Project” social value for the society in many different areas (those who don’t recognize and give into barriers) to such as education, gender equality, accessibility, contribute to the inclusion of disabled individuals in equal opportunity and health. We mobilize our all areas of social life. By “No Barriers Project” We are capabilities and experience for the benefit of contributing to the achievement of the Target 4.5 of Turkcell ecosystem and our society. By doing so, we SDG 4 “Quality Education”, and 8.5 and 8.6 Targets also contribute to the United Nations Sustainable of SDG 8, “Decent Work and Economic Growth”. Development Goals (SDGs). In our Sustainability Report, we state the goals and targets we contribute with our projects and practices, along with numerical data we use to measure the impact we create as a result of our projects. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 37 Social investment

The No Barriers Education Programme

The No Barriers Education Programme is a project tours touching, feeling, and hearing cities. 7 visually we have been carrying out under the auspices of the impaired children experienced football excitement in Ministry of National Education of Turkey since 2015 a stadium for the first time in their lives as our guests, in order to increase the competencies of individuals in Turkey-Albania national football match played with special education needs and to ensure their on October 11. Thanks to the technical infrastructure participation in social life. With our project, which specially prepared for the national match, children aims to enable disabled students to gain knowledge, had the chance to follow the match with live audio skills and attitudes for employment, we have reached description. Within the scope of The No Barriers nearly 50,000 students and their families with the last Education Programme, we provided Braille printed 10 classes added this year. books to 3 thousand visually impaired students and Orbit Readers (note taking) to more than 500 visually Within the scope of the program, hearing and visually impaired teachers and students. More than 100 students impaired students receive trainings for their personal had the opportunity to exhibit their works in the No and professional development in specially equipped Barriers to Art exhibition, which we organized for The technology classrooms. Mild intellectually disabled No Barriers Education Programme students in Urfa and students, on the other hand, are being prepared for Bursa. In the Barrier Free Cinema Festival, which we professional life after school with vocational workshops organized with the participation of nearly 100 visually in areas such as music, visual arts, accommodation and hearing-impaired children, participants attended in & travel and crafts. Within the scope of the project, various activities specially prepared for them in nature vocational workshops and technology classes were and watched cartoons using the My Dream Partner established in 112 schools in 60 provinces in 5 years. application. While hearing impaired children watched We support the learning process of students with the movie with Sign Language translation and detailed excursions, exhibitions and many other projects. With subtitle options, visually impaired children enjoyed the the program, more than 3 thousand students with cartoon with the Voice Description technology of the disabilities from all around Turkey participated in cultural My Dream Partner application. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 38 Social investment

My Gem Inside

Our “My Gem Inside” project was launched in February under the umbrella of No expressive language development, self-care skills, big-small muscle development as Barriers Project for the development of children with autism spectrum disorders, well as social and cognitive skills. My Gem Inside Mobile Application offers fun and under the auspices of the Ministry of National Education of Turkey and in cooperation educational games supporting mental, emotional and behavioural development of with Tohum Autism Foundation. During the first phase of the project, “My Gem children with autism, Down syndrome and learning difficulties. It is a free application Inside Classes”, we have established special education classes to meet the needs for all operator subscribers, where families and teachers can follow the in-app of students across 11 special education schools, we conducted various trainings and development of children with detailed reports and access to articles on special provided the necessary technology, materials and architectural hardware for the education. As a result of the training classes established within My Gem Inside project classes. We have prepared a variety of materials aimed at improving receptive and and the mobile application, we reached nearly 30,000 students and their families. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 39 Social investment

Turkcell Dialogue Museum

Believing in the importance of raising awareness to offer a different world with accompanying guides also with visual solutions for social problems we turned the “Dialogue in the and hearing impairments. Nearly 50 visual and hearing- Dark” and “Dialogue in Silence” exhibitions, into a permanent impaired people are employed through this project in Istanbul. museum under the name of “Turkcell Dialogue Museum” In As of 2019-year end, we contributed to the social awareness partnership with Istanbul Social Enterprise. We bring visitors to raising for nearly 220 thousand visitors.

There is nothing to see in the museum, but there is a lot to share, come and experience communication without seeing it Creating social value with stakeholders Turkcell Sustainability Report 2019 | 40 Social investment

Turkcell Whiz Kids Project

It is a social responsibility project that we conduct printers, smart boards, electronic and robotic coding and robotic kit for specially talented students under the auspices sets and other toolkits. Children receive training and distribution. Our of the Ministry of National Education of Turkey. develop projects on artificial intelligence, coding, students have been The main purpose of the project is to introduce space sciences, robotics, smart home and cloud awarded more Video students with special talent to technology, to technologies. At our class-opening in Urfa in 2019, than 600 project Call attract students’ curiosity in this field and to we launched Whiz Kids Platform mobile application awards in national Center encourage them to develop their own skills by and allowed access for not only specially talented and international identifying students who are talented at an early students but all students throughout Turkey. Whiz platforms. In stage. Kids Platform and Mobile Application aims to addition, the Whiz Our Face-to-Face reduce inequalities and promote gender equality Kids Project was Customer Services channel, Many opportunities are offered to students in the by providing inclusive, free and high-quality invited to the 2019 mEducation Alliance Symposium where we bring another Whiz Kids Maker Laboratories such as laptops, 3D education in Turkish reaching even the remotest by the mEducation Alliance, which works to improve convenience to the lives corners of the country. With these features, the the effects, accessibility and inclusiveness of mobile of our hearing-impaired project serves SDG 4 “Quality Education” and technologies in education. Mobiles for Education customers, started SDG 10 “Reducing Inequalities”. After addition Alliance which was created by the partnership providing video service of new contents such as artificial intelligence and of internationally respected organizations such as of March 1, 2019. We space sciences we have reached more than as the World Bank, UNESCO, UNICEF, USAID and serve 2 thousand hearing 50,000 students so far, by face-to-face trainings at the most important institutions impaired customers per month through our video 35 laboratories of the mobile communication call center. In addition, we established in 27 world such as GSMA and ITU, meet the demands of 100 provinces as well chose Turkcell Whiz Kids as an customers per month by as online trainings, exemplary project among 130 making external calls. mobile application projects. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 41 Social investment

Whiz Kids cooperation with LÖSEV DQ Digital Intelligence In a very special cooperation with LÖSEV (The Through the “Digital Intelligence Project” launched in January 2019, we initiated Foundation for Children with Leukaemia) we opened a major education campaign to prepare our children for the digital world and a technology class in Ankara. With this classroom, to give them digital citizenship skills. The gamified education platform, prepared which is our first collaboration with LÖSEV, children for students aged between 8–12, enables children to become aware of the interested in science and technology are one step dangers in the digital world and gain competencies such as taking better closer to realizing their potential. advantage of opportunities and learning to protect themselves. While playing games, children learn to cope with the risks of the digital world and adapt its necessities.

DQ Institute has been working for a long time to enable our children to better use the opportunities offered by the digital world and technology. Trainings, games and special characters developed by DQ Institute are presented to students as enjoyable lessons. These lessons bring digital skills to children by collecting cognitive and emotional skills under eight different topics. Children will have 8 basic technical, mental and social skills namely privacy, cyber security, critical thinking, cyberbullying, digital empathy, screen time management, digital identity and digital footprint.

In the classroom for LÖSEV School, students whose With DQ-Digital Intelligence, which has set the world standard in digital literacy leukaemia treatments have been completed or and competencies, our children will be an effective citizen of the digital world still on-going meet with science and technology. and will be able to take advantage of the opportunities offered by technology. Students who receive training on topics such Through Turkcell’s digital education platform and mobile application which was as artificial intelligence, coding, space sciences, made available in Turkish, more than 50,000 students and teachers have taken robotics, smart home and cloud technologies will the first step towards becoming a digital leader by experiencing DQ.. also be able to develop projects. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 42 Social investment

We help refugees and disabled individuals to access Another application we have created by considering social better quality education opportunities by My Dream Sign Language benefit is Hello Hope Project, which we offer to Syrian refugees Partner, Sign Language and Hello Hope projects. By in our country in order to meet their basic needs. Is our application which those projects we also contribute to Target 4.5 of instantly translates what is Sustainable Development Goal 4 “Quality Education”. written and spoken into sign Hello Hope language and has the sign language equivalents of Hello Hope was developed in 2016 to support Syrian refugees My Dream Partner more than 3,500 words. to overcome the biggest obstacle, the language barrier, in Is a mobile application which facilitates the access of Sign language provides up- participating social life in Turkey. The project reached 1 million visually impaired individuals to information and technology to-date news, and trainings users in 2019. Hello Hope mobile application was introduced as and supports their equal and independent participation on personal development, a good practice at the “Global Refugee Forum”, which was jointly hosted by the United Nations High Commissioner for Refugees in social life. It can be used free of charge by all operator child development and (UNHCR) and the Swiss Government at the UN Geneva Office subscribers. The application offers instant audio description sign language. It can be for the first time in December 2019 with the for movies, indoor navigation, thousands of audio books, used free of charge by participation of the heads of states. By Hello trainings, current news, and articles. Audio description of customers of all operators, Hope Project, we are contributing to Target 30 films shown in Istanbul Film Festival and Filmekimi while the use of data in the 8.6 of Sustainable Development Goal 8 (organized by the Istanbul Foundation for Culture and application is completely “Decent Work and Economic Growth”. Arts (IKSV) in 2019) and 20 films shown at Extraordinary free for Turkcell customers. Film Events (Sıradışı Film Etkinlikleri) and Other Cinema With the development Screenings in the Open Air (Açıkhavada Başka Sinema launched in 2019, the Video In 2019, Turkcell Foundation has developed various projects to support Gösterimleri), Call Center was integrated were offered to visually impaired people the development and awareness of science and technology in our to the application in order in sponsorship of TV+, by using My Dream Partner Audio country, the use of technology in line with the needs of society, and to Description technology. In 2019, audio navigation technology to enable hearing impaired enrich the relationship of society with technology. was also developed for all indoors using Audio Description and deaf individuals to technology and made compatible with digital platforms, receive services in Sign which was only working in movie theatres before. Language. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 43 Public health

2.2 Public health Dr. Öz and his Team’s healthy Our mobile infrastructure solution, As Turkcell, we have created a digital lifestyle suggestions are in BiP! eCall making intervention to car accidents Due to current risks such as infrastructure for the healthcare epidemic diseases, stressful life more efficient Known for his worldwide reputation industry. We exhibited this digital and climate change, public health and success, Dr. Mehmet Öz was our We are proud to be the first operator in Turkey needs the support of technology infrastructure at HIMSS (Healthcare guest in Istanbul in 2019. BiP, Turkcell’s which began providing the communication more than ever. The future of Information and Management communication and life platform, offers infrastructure of the emergency call system healthcare is being reshaped Systems Society) Eurasia 19 Health recipes, diet, mental health, fitness, and proposed by the European Commission, “eCall”. with advances in digital health beauty suggestions through a channel With this technological solution serving in Informatics Fair. In the event, we were technologies such as artificial directly controlled by Dr. Öz and his the field of health, in case of an accident, in- awarded HIMSS 6 with our Adana intelligence, mobile communication, Team. vehicle equipment automatically transmits data City Hospital and HIMSS 7 with our robotics or nanotechnology. such as the time of the accident, the reason Yozgat City Hospital. for activation, GPS coordinates and vehicle Together with our stakeholders, we information to the emergency center, which are pleased to offer many new allows the healthcare teams to intervene faster generation technology solutions for We continue to work on “5G and more effectively. Thanks to “eCall”, we Remote patient management device the changing health needs of the usage scenarios in vertical sectors” have taken an important step in reducing society, while developing services which show the difference of 5G With our device developed for people with deaths and permanent injuries and wrong which will benefit public health. technology from other technologies chronic diseases, we offer technology to the interventions that may occur as a result in the Health Sector. Using our 5G trial service of health. With the device we have of accidents. We have also In addition to our projects that version, we demonstrated “Remote developed, we perform periodic checks, analyse contributed to the Target create value, we manage Mobile Diagnosis” in healthcare. the measurement values, and ensure that 3.6 under Sustainable the impact of our network Ultrasound check of a patient in patients’ relatives are informed when necessary. Development Goal 3 “Good management operations on public an ambulance was successfully Health and Well-Being”. health by not adhering to the limits completed by the specialist doctor at set by the relevant legal authorities the hospital via remotely controlling and by implementing much stricter the haptic gloves connected to 5G. limits for ourselves. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 44 Turkcell Academy for social development

2.3 Turkcell Academy for social development Turkcell Developers of the Future Platform As Turkcell Academy, we have been working with a We provided trainings on Microsoft SQL Server learning model that aims continuous improvement platform, Data Literacy, Python, Data Science and for our society since 2006. Our work is based on Introduction to Artificial Intelligence in 2019. Until innovation, change and continuous improvement, and the end of the year, we published trainings such we strive to improve our teaching power. We offer as 2D Mobile Game Making, Data Visualization, trainings that prepare for the future, focusing on raising Data Manipulation, Data Pre-Processing, Statistics technology-equipped workforce not only for our own for Data Science, Python and Big Data and Data employees, but also for the Turkcell ecosystem and Science Project Management in Unity Game our society. With our years of experience, we carefully Engine. In addition to all these trainings, we offer arrange the topics and content of the trainings for the development opportunities for all segments of the target audience and select the most suitable trainer society with Digital Literacy Education. from our pool of more than 600 trainers.

Until today, 6 million users from 100 different 2.3.1. Efforts to increase technology literacy countries had the opportunity to benefit from content related to new technologies for adults As Turkcell, we continue our various training activities and children. In addition, 23 thousand people who 6 million with the aim of making Turkey a leading country which is successfully completed their online training were 50 aware of software development and digital conversion. users from entitled to 50 thousand achievement certificates. 100 different thousand countries achievement certificates Creating social value with stakeholders Turkcell Sustainability Report 2019 | 45 Turkcell Academy for social development

Women Developers of the Future Platform

In 2019, we received over 1,600 applications from 64 Our Women Developers of the Future Platform was included provinces to our “Women Developers of the Future” project. in the United Nations Business Call to Action (BCTA) program 235 out of 640 women who completed their training came as a good practice of the inclusive business model in 2019 up with 141 project ideas and developed mobile applications. and was introduced as a model project in New York during We awarded the three most successful projects. the United Nations Week. Again in 2019, it received the “Technology Sector Leadership for Women” award within In addition to these awards, women who have successfully the scope of the Global Mobile Awards organized by GSMA completed the training process were also employed as and was described by GSMA as an exemplary project on testers. By this expertise, they were informed that they could the way to change the world at CaseforChange. perform end-user tests of Turkcell products and services. So far, 100 test expert women from 21 different cities in In the “Women’s Empowerment Principles” (WEPs) event Turkey had the opportunity to work remotely. organized by the United Nations Women, Women Developers of the Future Platform was cited as an With Women Developers of the Future Platform, we exemplary project for promoting gender equality and contribute to the Targets of Sustainable Development enabling women to benefit from future opportunities. Goals, 4.3, 4.4 and 4.5 of “Quality Education”, Targets 5.5 and 5B of “Gender Equality”, Target 8.3 “Decent Work Women Developers of the Future Platform received the and Economic Growth” and Target 10.2 of “Reducing support of First Lady Emine Erdoğan in 2019 in the second Inequalities”. term of the project after the first term graduates. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 46 Turkcell Academy for social development

Children Developers of the Future We Also Improve the Expertise of Our Distributors

With this project, we support children between Under the leadership of Turkcell Academy, we continue to targets with training programs for leadership, sales, product the ages of 7 and 18, to develop in the software implement digital and in-class training solutions designed management, corporate culture and specific focuses within the field with Scratch and App Inventor trainings. By specifically for KVK’s and GENPA’s needs and performance scope of certification programs for 900 employees. doing so, our children learn to code and take more competent steps towards the requirements of the future. 5. Year in Academy service

Sales Develeopment Program Leadership Sales Product mng. We raise qualified workforce for Product Management Development Program Feedback Skils Sales Coaching Business Management technology sector Customer Focused Development Inspiring Leader Hunter Salesman Simulation Program From Expert to Leadership Data Oriented Sales Meeting Management With the Mobile Communication Technologies Call Center Development Program and our Software Testing course jointly designed Financial Affairs Development Program Corporate culture Customer focused Other specialties by Turkey’s esteemed universities and Turkcell Risk Management Development Program Programs Academy instructors, we introduce Turkish Financial Analysis Information Technologies Development Correct Toxic Communication

Leadership Development Development Leadership Contract Management Logistics youth with technology sector, and we improve Program Service Oriented Sales Corporate Culture Programs Culture Corporate Creating Impact Management hardware and knowledge of our employees. Human Resources Development Program Emotion Management Internal Motivation Human Resources Consultancy While we financially support the research of Internal Trainer Development Program Approach PhD students working in the field of artificial intelligence, we play an important role in bringing thousands of students into the IT sector as a Certified Employees qualified workforce with the certificate programs KPI where we transfer our knowledge. Sales & product mngm. 100% 100% N/A All employees 96% 96% 98% Creating social value with stakeholders Turkcell Sustainability Report 2019 | 47 Creating social value with public collaboration

2.4 Creating social value with public collaboration For every 100 searches with Yaani, With our Hello Hope Project, work permits as well as written and visual contents were We are aware of the broad impact of public policies, from the daily we planted a tree in cooperation added to the application in cooperation with the Ministry of Family, Labour and Social with the Ministry of Agriculture and life of a society to its long-term well-being. In this regard, we support Services of Turkey and the United Nations International Organization for Migration. Forestry of Turkey. the development of public policies that aim to prepare our country’s technological infrastructure for the future with new innovations and We carry out our My Gem Inside project under the auspices of the Ministry of to be among the global leaders in digital transformation with all our In cooperation with the Youth and National Education of Turkey. resources. Sports Ministry of Turkey and the Ministry National Education of Turkey, Working in cooperation with public institutions is one of our basic we have implemented Turkey Sports principles while implementing our projects. Another point we attach Under the patronage and Sports Routing Capability Survey of Youth and Sports importance to is to carry out our activities in compliance with all laws, Project where we continue to grow regulations and guidelines. We continue our sustainable cooperation champion athletes of the future. Ministry of Turkey, in in the field of social investment with all relevant public institutions. collaboration with Athletics Federation Today, regulatory needs are renewed and changed with the We reached 30 thousand students of Turkey and Turkey regulation design processes and developments in the national and in 2019 with the Whiz Kids Project, Swimming Federation international areas. In this context, we effectively monitor existing which was implemented in we launched in as well as new regulations, conduct our analysis and prepare collaboration with the Ministry of 2013 Athletics publications. With this perspective, we develop appropriate political National Education of Turkey. and Swimming and regulatory tools based on our sectoral knowledge and Performance Projects requirements. which totals up to We are carrying out Turkey’s Car 56 million TL with the We conduct various projects and initiatives to ensure the leadership Project under the coordination goal of 2021 Tokyo and continuous improvement of Turkey in our sector. We continue our Sports of the Industry and Technology Olympics. efforts to provide fiber infrastructure and extend mobile infrastructure, Ministry of Turkey and the Union investment of increase shared infrastructure company initiatives, protection of of Chambers and Commodity 56 personal data, the adoption of the “Turkey’s data should remain in Exchanges of Turkey. million TL Turkey” approach and digitalisation of services. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 48 Sponsorships

2.5 Sponsorships Our contribution to the development of Continuous support to football Our cooperation with the Physically Apart from our products and Turkish sports continues Handicapped Sports Federation We have been sponsoring our A National Football services, we believe that As Turkcell, we are working to ensure Team, as the “Official Communication Sponsor” In 2019, we continued our efforts to remove we bear the responsibility development in all areas of sports in our country. since 2002, and as the main sponsor since 2005. barriers in sports. We support amateur of contributing financially In 2019, we continued to support our National We organize meetings with the participation of sports such as athletics and swimming to make a difference in the Teams in branches such as football and athletics. Turkcell employees and athletes and stand by our for our disabled athletes, and work for society and touch the points In addition to all these, we supported amateur A National Football Team. continuous improvement. where we can improve with sports by encouraging individual sports. our technology. In this regard, we participate in sponsorship activities in a number of areas outside the scope of our influence which we see as a social investment including sports, music, youth development, cultural activities.

As Turkcell we continue to work to improve sports in Turkey and for Turkish Sports to be recognised in global arena! Creating social value with stakeholders Turkcell Sustainability Report 2019 | 49 Sponsorships

Turkcell Platinum Bosphorus Cup Music lovers enjoyed a magnificent series of summer concerts with Turkcell Starry Nights, More than 100 boats from around the world which took place between 19 July and 7 joined Turkcell Platinum Bosphorus Cup, one August 2019. 120 thousand people watched our of Turkey’s most important sports events in concerts at the Harbiye Open Air Theater. Our the international arena which was organised social media campaigns and Instagram stories in 28-29 September 2019. After two days received 2.7 million views and reached 2.5 million of uninterrupted excitement, the team that people. Turkcell Starry Nights, which has now embraced the big cup this year was “Istanbul become a classic, brought together all music Cerrahi Cheese” led by Levent Peynirci. lovers in the open air during the summer months.

As part of our main sponsorship of Turkcell Platinum İstanbul Night Flight Zorlu PSM Zorlu Performing Arts Between 25 May and 29 October 2019, we Center, we hosted 650,000 people in 2019 at our Turkcell Stage and hosted 8 thousand people with seven concerts Turkcell Platinum Stage. With our which took place in the magical atmosphere advertising spaces and branding of Aya Irini Church with the sponsorship of within Zorlu PSM, we have provided Turkcell Platinum for the third time. We reached the visibility of our logo to over 1 1.5 million people by social media campaigns million people. for concerts where world-famous local and foreign artists performed. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 50 Sponsorships

Since 2014, we have been the supporter of Sakıp Sabancı Museum as the fizy music awards and fizy Istanbul Music Week The 22nd anniversary Communication and Technology Sponsor. With the “Biletim Cepte” application, of fizy High School which we developed by integrating our technologies that improve and Awards were given in 10 different categories according to the number of Music Competition facilitate life, visitors can access the exhibitions and events at Sakıp Sabancı times listened on Turkey’s popular music platform fizy. They were presented at took place under th Museum without going to special delivery points and waiting in queues. In Volkswagen Arena on 4 of November. the sponsorship of fizy. 27 thousand addition, with another mobile application developed by Turkcell that can be people attended downloaded free of charge, the works in the museum can be examined in Following the music awards, we organised fizy Istanbul Music Week from the organization and detail. Our application also offers the opportunity to participate in trainings and November 4 to 9 for the second time which for the first time in Turkey brought popular culture and Turkish pop music under the same roof. More than 30 708 high schools to learn more about the museum. from 49 cities artists met with music lovers in different venues such as Volkswagen Arena, IF competed. The Performance Hall Beşiktaş, Moda Kayıkhane and Kadıköy Sahne. Panels organised qualifying videos within fizy Istanbul Music Week set the music agenda in Istanbul and Turkey. put on the fizy high school music competition platform visited by 4.6 million users and received over 553 thousand votes in three weeks. In the event where 35 high schools competed on the final day, Private Moda Mimar Sinan Fine Arts Anatolian High School and Private Kadıköy Evening High Schools won the first place. Creating social value with stakeholders Turkcell Sustainability Report 2019 | 51 Transparent stakeholder interaction

2.6 Transparent stakeholder interaction

As Turkcell, we care about our stakeholders We mapped material topics of our stakeholders Shareholders and investors: We are in contact on customer experience in our products and and we constantly interact with them in all our and Turkcell in our “2019 Turkcell Materiality with our shareholders and investors to ensure services. You can find our comprehensive business areas. We determine the expectations Matrix”. You can find our matrix and our method continuous development by maintaining our work on our customer value in the Human of our stakeholders as inclusive as possible, of determining our material topics in the leading position in our country and industry. We happiness-oriented accessible services taking into account the groups affected by our “Corporate governance” section. publish announcements on our investor relations section of our report. services and activities in the society. We create website, including information on our shares, We give importance to direct and indirect value together in line with our sustainable and ensure that our investors receive constant Suppliers: Although we have a wide supplier interaction. We carry out a transparent communication vision. With the feedback and information through our financial reports, network, we ensure the flow of material and communication policy with our stakeholder suggestions we receive from our stakeholders, while also ensuring the transparency of our information within the principle of transparency, groups using different channels of interaction. we continuously improve our processes, and We work with many national and international communication. flexibility, ethics and superior quality in our we aim to always advance our performance non-governmental organizations on the basis of relations with our suppliers. In the Value- without leaving anyone behind. Sustainable Development Goal 17 “Partnerships for Employees: We act together with our oriented, responsible supply chain section of Goals”. With these activities, we contribute to productive Turkcell Family in all steps of our our report, you can find detailed information on We manage our communication with our Targets 17.16 and 17.17. Another Goal we support business processes, listen to their requests the practices we make a difference with our stakeholders periodically throughout the year with our transparent stakeholder interaction and demands in various environments, and suppliers. with various reports published on our website. is SDG 16 “Peace, Justice and Powerful aim to ensure employee happiness with the In addition, in line Institutions”. While contributing to Targets focus of digital development. You can find our National and international with the demands 16.5 and 16.6 with transparent communication detailed relations with our employees in the non-governmental organizations: We believe of our stakeholders, channels we have developed within the Our productive Turkcell family section of our in the power of collective work and freedom of we respond to scope of SDG 16, we also support Target report. expression. As Turkcell, we are developing our the needs with 16.7 by providing continuous and effective work through various platforms, together with communication with our stakeholders. customised meetings Customers: At Turkcell, we move our goals national and international non-governmental and workshops we further by focusing on the customer. We organizations. organize on various constantly improve our designs and customer issues. relationship management performance based Creating social value with stakeholders Turkcell Sustainability Report 2019 | 52 Transparent stakeholder interaction

As Turkcell Group, national and international non-governmental organizations with which we cooperate;

3GPP The 3rd Generation Partnership Project Mobile Communication Tools and Information Technologies MOBİSAD Businessmen Association AUSDER Intelligent Transportation System Association of Turkey M-TOD Mobile Telecommunication Operators Association BCTR Blockchain Turkey Platform MÜSİAD Independent Industrialists and Businessmen Association BGD Information Security Association (ISA) NGMN Next Generation Mobile Networks BİED Knowledge Economy Association ÖDED Payment and Electronic Money Association DEİK Foreign Economic Relations Board of Turkey PERYÖN Turkey People Management Association ECTA European Competitive Telecommunications Association SKD Business World and Sustainable Development Association

ETİD Electronic Commerce Operators Association TELKODER Turkish Competitive Telco Operators’ Association

ETSI European Telecommunications Standards Institute TOBB The Union of Chambers and Commodity Exchanges of Turkey Telecommunications Satellite and Broadcasting Business People FKB The Association of Financial Leasing, Factoring and Financing Companies TUYAD Association GSMA Global System for Mobile Communications Association TÜBİSAD Informatics Industry Association GTI Global TD-LTE Intitiative TÜSİAD Turkish Industry and Business Association IAPP International Association of Privacy Professionals TÜYİD Turkish Investor Relations Society IIC International Institute of Communication UN (UN Global Compact) United Nations ItechLaw International Technology Law Association WTECH Women’s Association in Technology

ITU International Telecommunication Union YASED International Investors Association Creating social value with stakeholders Turkcell Sustainability Report 2019 | 53 Transparent stakeholder interaction

Our board memberships Table of communication channels Non-governmental organisation Board member Stakeholder group Communication channels Internal and External Meetings, GMY Open Door Interviews, Evaluations, Announcements, Dashboard, BGD Burhanettin Al Employees Reports, Awayday, Events, Information Reports, Periodic Publications and Bulletins GSMA Murat Erkan Supplier Management System (2020), Supplier Portal, Internal and External Meetings, Supplier Days, Cooperation Meetings with SMEs and Local Manufacturers, Turkcell Partner Network, Field Rental Owner M-TOD Murat Erkan, Serhat Demir, Gediz Sezgin Suppliers Meetings, Technopark Meetings TÜYİD Zeynel Korhan Bilek Customers Media, turkcell.com.tr, Turkcell and Turkcell General Manager Social Media Accounts

TUYAD Barış Zavaroğlu Board of Directors Meetings, Conferences, Meetings and Road-show activities, Investor and Analyst Day Meetings, Quarterly Final Disclosures on the Investor Relations Website and Teleconferences, Material Shareholders and Investors Disclosures (KBA) on Public Disclosure Platform, Annual and Interim Activity Reports, Frequently Asked We are taking an active role in media both in Turkey Media and social media: Questions Section and Turkcell Investor Relations e-mail and Telephone Lines and Global arena with the products and services we have developed. By taking BTK and HTK Meetings, Panels, Workshops, Reports, Passage Rights Excavation Permits Public Institutions advantage of the transformative power of technology, we actively take part in Public Institutions and (Municipality, etc.) Meetings, Customs and Shipment Processes, Official Correspondence, Periodic and all social media networks and communicate with our stakeholders. We make Regulatory Authorities Subject-Specific Meetings, Workshops, Information Reports, Presentations and Position Papers, Public Opinion the necessary announcements for our stakeholders through press conferences, Documents, Periodic Publications and Bulletins advertisements, interviews and news. Board of Directors Meetings, Working Group Meetings, Council Meetings, Workshops, Seminars and Conferences, Annual Forums and Meetings, Regional Events, Fairs, Award Ceremonies, Subject-Oriented NGOs Initiatives (via website and social media), Memberships, Working Group Activities and Projects, Meetings, Universities/academies: We attach importance to be in continuous communication Joint Projects with universities with the aim of shaping Turkey’s future business with technology Direct Communication, Turkcell Media website, Turkcell and Turkcell General Manager social media accounts, Media focus, supporting young people to develop their competencies and discovering turkcell.com.tr future talents. With the aim of improving our competencies in R&D and innovation; Curriculum Lessons, Certificate Programs, Technical Trip, Project Competitions, Information Sharing Sessions, Students we support our work with the data we received from academic platforms within Sponsorships for Turkcell Academy’s Vision for Qualified Workforce to the Industry masters and PhD programmes in cooperation with Özyeğin University. Curriculum Courses and Certificate Programs in parallel with Turkcell Academy’s Vision of Raising Qualified Academics Workforce for the Sector, Scholarship Opportunity for PhD Students Working in the Field of Artificial The information we provide in the table on the right side reflects our communication Intelligence with the Turkcell Foundation, Supporting Publications channels with our stakeholders as Turkcell. Think Tanks Providing Content and Contribution to Regulatory Publications Creating social value with stakeholders Turkcell Sustainability Report 2019 | 54 Partnerships

2.7 Partnerships You can reach the full list of our domestic and foreign subsidiaries an interaction platform. The Turkcell Partner Program consists of more on our website. Within the scope of our partnerships, we share the than 200 business partners, local and worldwide companies with With the help of our business partners, we strive details of the digital services we provide to the community with you in which we cooperate strategically, NGOs, investors and entrepreneurs to close the digital gap and increase access in the the Pre-eminent digital services & innovation section of our report. and thousands of application developers. With this ecosystem, we whole society. With our subsidiaries, we continue to contribute in the labour force of Turkey by employing more than 10 be a supporter of development of technology and Turkcell Partner Program: We established the Turkcell Business thousand people. We also have a number of common initiatives with communications in Turkey. We are pleased that our Partnership Department in 2001 with participation of 15 business Turkcell Digital Business Services Business Partners, on various subsidiaries in different fields have grown the Turkcell partners. In 2004, we launched the “Turkcell Partner Program” to add areas including IoT, Big Data, Security and Cloud digital solutions brand without losing sight of the technology focus. new business partnerships to our Turkcell ecosystem and to create within Partners Programme.

Digital game and entertainment services: Dergilik, Beehive, Inteltek, Our partnerships abroad: Techfin digital solutions: Lifecell lifeCell Ukraine, BeST, Paycell, Financell and Electronic Energy Northern Cyprus Turkcell, Financell Contributions Call center services: communication services: solutions: Lifecell Ventures, Turkcell Global Bilgi SuperOnline Enerjicell Europe Our interaction with the environment

First solar The goal of First mobile operator to obtain Protection of power plant meeting our “Sustainability Linked ISO 50001 Energy Management approximately of Turkcell in electricity needs Loan” agreement System Standard and ISO 500 thousand the Turkish 100% from signed with BNP 14064 Corporate Greenhouse trees via our Republic of renewable sources Paribas Gas Emissions Calculation and Dergilik application Northern by 2030 Reporting Certificates Cyprus Our interaction with the environment Turkcell Sustainability Report 2019 | 56

Integrated sustainability consciousness considering

Mindful of our impact on the environment we Our top management takes responsibility while human, environment and economy together interact with should be minimized in order to prioritizing the integration of sustainability in maintain a liveable world for future generations. our business, which we carry out in line with the We consider resource utilization, natural ecosystem Sustainable Development Goals. As a Company balance and needs of future generations while that achieves high value-added work that touches developing our operational plans. By doing so, people’s lives, minimizes its impact on the environment, we aim to effectively manage our environmental harmonizes production processes with environment, performance. trains employees on environmental awareness, uses We use our capabilities to reduce the environmental clean technologies, and offers solutions to customers impacts resulting from our operational activities. We and all stakeholders for a sustainable life, we conduct include our employees and their families as well as research for environmentally friendly products and suppliers, investors and customers in the process of services and aim to carry out new projects to protect developing our office practices and business processes the environment. according to sustainable innovation principles. Throughout our value chain, we adopt a recycling- While we initiate many social responsibility and focused approach by using resources effectively and sponsorship activities to contribute to the Turkcell conducting effective waste management. ecosystem and the society we operate in, we are also heightening our efforts to minimize our impact on We implement our obligations under national environmental regulations. In 2019, there were no the environment. As an indicator of our performance incidents regarding legislative misconducts or in this field, we maintained our place in the BIST complaints related to environmental issues have Sustainability Index in 2019 assessment period as well. been applied to us by the regulatory and supervisory agencies. Our interaction with the environment Turkcell Sustainability Report 2019 | 57 Energy management and opposition with climate change

3.1 Energy management and opposition with climate change We place sustainability at the core of our business in every field we operate. Recently, we have taken innovative steps in sustainable finance. With the “Sustainability According to the 2020 edition of the Global Risks Linked Loan” agreement signed with BNP Paribas, we implemented our sustainability Report published annually by the World Economic Forum, top 5 risks that are most likely to occur in the approach to financing. Through this loan, we will be able to reduce our financing next decade include topics related to climate change costs while fulfilling our environmental responsibilities. and environment. Combatting climate crisis and adaptation risks are ranked as the top risk in terms of impact. Described as one of the most important 3.1.1 Energy management environmental, social and economic threats that the The Turkcell Energy Density ratio for 2019, which includes the total energy world is facing, climate change requires both reduction We consider energy from two aspects; the energy we consumption of all types in 2019, is calculated as 203,711 GJ / 1,000,000 TL. of carbon emissions, which have been constantly consume as part of our activities and the energy we Denominator we use to calculate the energy density was total annual revenue increasing over time, and efficient use of natural produce from renewable sources. We work towards of Turkcell generated in Turkey in 2019 (21.487 million TL). resources at the same time. As Turkcell, we believe balancing our energy production and consumption. that combatting climate change and managing Within the framework of our mission to use natural associated risks are among the strategic components resources entrusted to us in the most efficient manner, of our corporate sustainability approach. In this regard, our environmentally conscious business approach based we carry out our initiatives in accordance with the 13th on shaping technology according to the needs of the Sustainable Development Goal within the framework of society, we combat global climate change with energy “Climate Action” and we try to fulfill our duty in the best production that prioritizes renewable resources. On the way by integrating the awareness of climate change other hand, we are proud to be the first mobile operator into all our processes. In this regard, we prioritize in Turkey to obtain the ISO 50001 Energy Management efficient and effective use of energy. In addition, we System standard and we try to realize every opportunity develop environmentally friendly technologies with the that will help us save energy. We calculate and track motto “Technology for Good”. We continue responding our energy performance with the energy intensity to CDP Climate Change Program and transparently performance indicator as well as the ratio of the total share our climate-related performance. amount of non-renewable energy over total income. Our interaction with the environment Turkcell Sustainability Report 2019 | 58 Energy management and opposition with climate change

We are gravitating towards environmentally friendly green We installed the first solar power plant of our Group in the Turkish Republic of Northern Cyprus energy sources to minimize our environmental footprint and in 2019. maintain ecological order. We aim to meet our electricity consumption from 100% renewable sources by 2030. As Kuzey Kıbrıs Turkcel, we completed the installation of the first solar power plant in the third largest Mediterranean island, on the South of Turkey in a With the efforts we carry out in this context, short period of 4.5 months. The plant, which will we strive to contribute to the 7th Sustainable generate more than 1,500,000 kWh of electricity per

Development Goal, Target 7.2 to significantly year, will prevent 906,481 kg of CO2e emissions to increase the share of Renewable Energy in be released into the atmosphere. Through this plant, Affordable and Clean Energy, and Target 13.1 in we also meet the demand among Cyprus Turkish Ankara Data Center became the first data the context of Goal 13, Climate Action. Electricity Authority (KIB-TEK) network and contribute center in Turkey that produces its own to the digital infrastructure of the electricity network. electricity with solar panels. With our Enerjicell subsidiary, we pioneered the realization of renewable energy investments with the self-consumption model in Turkcell’s buildings in 2019. We have In this new data center, launched in Ankara in implemented roof-type solar energy projects, notably in the newly established 2019, we benefit from solar energy with new Ankara Data Center. Enerjicell, which will continue its renewable energy investments generation panels installed on the building in the upcoming periods, aims to transform Turkcell into a company with zero carbon parking lot to meet part of our electricity emissions and supplying electricity from environmentally friendly sources. Through demand from renewable sources. We will Enerjicell, we are going to meet our energy needs from green energy sources via utilize the renewable energy with the goal of the power plants we will own and rentals of renewable energy generation capacity generating approximately 500,000 kWh of with a long-term approach from power plants in Turkey. . electricity per year. With the project, we will

prevent 245 t CO2e of greenhouse gas emissions annually. Our interaction with the environment Turkcell Sustainability Report 2019 | 59 Energy management and opposition with climate change

We consider the Portable Solar Field solution as We continue to produce electricity from renewable In 2019, we provided 42% of total Turkcell Group electricity consumption from a product of our innovation activities, which we energy with the solar energy project on the roof renewable sources.* developed for the needs that occur in regions where of the Turkcell Adana Plaza building. We use the the population increases periodically and access energy produced with the self-consumption model * Turkish. Electricity Market Regulatory Authority Official Statistics 2019 Year of Turkey was used as a guide to the percentage of renewable energy usage data. to energy resources is limited. The environmentally to meet the electricity needs of the building. We friendly nature of these communication stations,

save about 49 t CO2e of greenhouse gas emissions installed in four locations in four different cities annually with the planned annual 100 MWh in 2019, comes to the forefront. With this solution electricity generation capacity. developed by Turkcell engineers, we contribute to our sustainability goals. By the help of the solar panels and wind turbines we install at our sites, we produce approximately 505 MWh of electricity annually from renewable energy sources. We are happy to share that our investments in renewable energy technologies will continue to increase in the upcoming periods.

In 2019, we achieved energy savings of approximately 9.2 million TL annually by We produced approximately implementing software features 1,070,000 kWh of electricity from that provide savings when network renewable sources with a total of traffic is very low. 3 solar projects launched in 2019. Our interaction with the environment Turkcell Sustainability Report 2019 | 60 Energy management and opposition with climate change

Although increasing investments in environmentally Energy saving actions and amount of savings: friendly products and technologies by reducing energy costs are among the prominent trends of While calculating our energy savings, we found the by multiplying this unit savings by the total number of today, companies can differentiate themselves in the approximate annual savings of each action per field fields applied. We also included the devices installed market in which they operate and gain competitive of application. Then, we calculated the annual savings before 2019, as they also contributed to savings in 2019. advantage by implementation of determined strategies considering the environmental impact. We have processes to minimize environmental impact not only Amounts* Details Actions in our direct operations, but throughout our entire 2018 2019 value chain. Green purchasing practices enable us Inverter Air The amount of savings that the invertor air conditioner in our networks enable in a year to evaluate the compliance of various environmental 43.8 million kWh 46.4 million kWh Conditioner compared to on/off air conditioners. criteria such as energy efficiency of the products we Field Without Air 564 thousand The amount of electricity savings that occur as a result of increasing non-air-conditioned sites use, the sustainability of raw materials, and prioritize the 1.1 million kWh Conditioning kWh by removing air conditioners in locations where passive cooling systems are sufficient. use of products with low greenhouse gas emissions. In The amount of savings that all high efficiency rectifiers in the network achieve in a year this context; Efficient Rectifier 18.1 million kWh 21.7 million kWh compared to low efficiency rectifiers. • We give importance to the energy efficiency of our Passive Cooling 8.3 million kWh 7.9 million kWh The amount of savings that all free cooling units in the network achieve in a year. network equipment. In our base station network, we Outdoor The amount of savings that all outdoor cabinets in the network achieve in a year compared 1.1 million kWh 1.8 million kWh establish stations that generate their own energy. Cabinets to a container area. Power Saving The amount of savings achieved by reducing the electricity consumption of radio equipment • We continue to renew air conditioning devices and 17 million kWh 32.1 million kWh Algorithms by using smart algorithms. energy infrastructure in the data center system rooms with more efficient, state-of-the-art products. Renewable 375 thousand 506 thousand The total amount of electricity used in a year at all base stations where renewable energy is Energy kWh kWh used. • As Turkey’s first mobile operator to obtain “ISO 50001 GPON The savings achieved by using GPON technology which provides energy efficient internet 25.4 million kWh 28.1 million kWh Energy Management System Standard”, in line with Technology access to the locations in the fixed network. our energy management procedure; we improve our Total 97 million kWh 139.6 million kWh Total Energy Savings of Turkcell purchasing activities on a daily basis by reviewing and revising planning, operational and purchasing procedures. * Savings are reported cumulatively on an annual basis. Our interaction with the environment Turkcell Sustainability Report 2019 | 61 Energy management and opposition with climate change

3.1.2 Emissions management Activity Consumption amount Unit Scope of emission t CO2e According to the Global Risks Report published by Heating (Natural Gas) 835,070.95 Sm3 the World Economic Forum (WEF) at the beginning of 2020, the most important global risk in terms Generator (Diesel) 36,875,511 lt of impact has been defined as “Climate Action Fleet Cars (Gasoline + Diesel) 1,898,951 lt Scope 1 108,025.31 Failure”. To manage this risk effectively as Turkcell, monitoring and reporting of our greenhouse gas Refrigerant Gas Filling* 1.5 ton emissions generated as a result of our activities Fire Extinguisher Refilling 8 ton are among our main environmental priorities. In this regard, we are fulfilling our responsibilities as the first Purchased Electricity 801,103,574 kWh mobile operator in Turkey with ISO 14064 Corporate Scope 2 383,987.93 2,193,690 kwh Greenhouse Gas Emissions Calculation and Reporting Purchased Natural Gas (Central Heating) Certificate. We monitor our Scope 1, Scope 2 and Employee Services 197,561 lt Scope 3 greenhouse gas emissions resulting from our activities by calculating using IPCC Tier 1 and Tier Waste Generated 728 ton 2 (electricity) approach, including CO , CH , N O and 2 4 2 Logistics 270,104 lt HFC gases. In our ISO 14064 Calculation and Reporting Scope 3 80,626.65 of Greenhouse Gas Emissions audits, we include the Transport of Consumed Energy (Gasoline + Diesel) 38,774,461 lt use of personnel service within the scope of our direct Transport of Consumed Energy (Natural Gas) 835,070.95 Sm3 and indirect energy consumption and other indirect emissions, wastes we sell, the amount of transmission Electric Transmission and Distribution Losses 801,103,574** kWh and distribution losses in the electricity network, our * Our refrigerant types are R410A, R134A, R22 and R407C. logistics services and well to tank services related to ** Calculated proportionally over the total amount. consumed fuels. Our interaction with the environment Turkcell Sustainability Report 2019 | 62 Energy management and opposition with climate change

We planted thousands of trees around base The main reasons for the increase in our Scope 1 We reduce our energy consumption via stations in cooperation with ÇEKÜD (Çevre Kuruluşları emissions in comparison with the previous year are: continuous improvements and innovative Dayanışma Derneği) to balance our carbon footprint The increase in generator fuel consumption as a practices. We aim to continue and maximize the resulting from fuel consumption as part of Turkcell and result of the increase in the average power outage use of renewable energy. In order to become a Superonline logistics operations. In addition, we have periods experienced at our base stations, and carbon neutral company by 2050, we closely further expanded Turkcell Peace Forest this year by the expansion of our vehicle fleet used in our field follow cutting edge technological developments planting 100 thousand more trees. activities as well as the increased field operations in renewable energy applications. volume. We will continue to enhance our emission management practices that will accelerate the With our increasing activities and expanding transition to a low carbon model in the upcoming The Turkcell Greenhouse Gas Emission Intensity market, we annually receive external audits by periods with increasing number of existing as well as rate of 2019, which is included Direct (Scope 1) an independent party for our Scope 1, 2 and 3 to be implemented energy-saving and renewable and Energy Indirect (Scope 2) Emissions, has greenhouse gas emissions, within the framework energy projects. been calculated as 26.651 t CO2e / 1,000,000 TL. of ISO 14064 requirements. In addition, we annually Greenhouse gas emission intensity denominator report our emissions transparently through CDP is the total annual revenue of Turkcell in Turkey in Total greenhouse gas emissions (t CO2e) Climate Change Program since 2014 to satisfy the 2019 (21.487 million TL). information requirements of our stakeholders. Our Year Scope 1 Scope 2 Scope 3 base year for greenhouse gas emission calculations 22,653 358,286 69,286 is determined as 2016 in terms of completeness 2017* of the data and the consistency of the scope. It is 2018* 54,453 381,341 65,607 assumed that 2016 is the most appropriate year for Turkcell, where direct and indirect emissions 2019 108,025 383,988 80,627 are comprehensively monitored, and that data is * Revised in line with the values verified as per ISO 14064 Independent compliant with the requirements and completeness Audit. principle. There is no activity related to the burning of biomass within the boundaries of our activities. Our interaction with the environment Turkcell Sustainability Report 2019 | 63 Water management

3.2 Water management

According to the 2020 Global Risks Report, the 5th As we strive to improve our water performance within most important global risk in terms of impact has been our operations, we also support our customers in identified as the “Water Crisis”. We give importance to managing their water consumption with the solutions the responsible consumption of water within the scope we offer. With our Smart Water Meter platform of our activities, as water is one of the most important solution which enables meters to be read remotely, natural and essential resources. With our responsible valves to be opened and closed using IoT technologies corporate citizen approach, we take actions to reduce our water consumption through the sustainable and monitored instantly through the platform, water management of water, which we see as one of our consumption is controlled and natural resources are leading environmental responsibilities. protected.

Our water demand arises from the daily general water use of our employees in the locations where we Total water consumption (m3) conduct our operations. In our office buildings where our water consumption intensity is high, we effectively manage water use via implementing a number of efficiency and savings projects and continue our efforts 2017 89,567 to recycle our wastewater using it in different areas. 2018 105,958

2019 236,357* In our Data Centers, we reuse rainwater as gray water (in toilets and urinals) with various filtering processes. * The reason for the increase in water consumption in 2019 is inclusion of new data centers in our operations. Our interaction with the environment Turkcell Sustainability Report 2019 | 64 Waste management

3.3 Waste management

We manage waste resulting from our operations and Within the scope of the Zero Waste Project, launched We prevent oil waste from mixing with domestic activities by selecting appropriate methods, technology in Turkey, we carry out projects in Turkcell since wastewater via oil trap systems. We eliminate and waste management programs. With the minimum 2018. With the help of Waste Management Center hazardous wastes such as batteries, toners, waste generation and maximum waste recycling established, we ensure that the solid food waste electronics, cables and consumables resulting from approach we adopt, we carry out our processes in full that is collected in the dining hall and office floors is our activities through licensed and competent compliance with the relevant regulations, through our recycled with the compost machine, and we obtain recycling companies within the framework of the contracted waste management company. organic soil fertilizer. We are glad to be one of the regulation, thus preventing hazardous wastes from first companies to implement this application in Turkey interacting with the environment. As part of our efforts, we integrate systems that will even though not being a manufacturing company. reduce waste generation as well as use of natural resources into our operations, we either decompose waste that we cannot prevent at its source or Waste generated from our office activities in implement recycling measures. 2019 (ton) With the Global Market Place project, we launched in 2019, unused materials Type of waste 2017 2018 2019 belonging to Turkcell and Superonline stocks to the demand of our affiliate We develop practices to reduce the materials we use companies, and we provide the sale and use of many scrap candidate in our office buildings such as paper and toner, and Domestic waste 1,290 1,255 1,287 materials as second-hand products. With the materials demanded by our separate all types of waste such as paper, plastic affiliate companies as second hand, we ensure that they do not purchase and household waste at their source. We direct the Waste oil 12 12.5 15.5 new (zero) materials and we provide cost savings and wastes that we separate to recycling facilities through Paper 90 85 84 integrate the circular economy understanding into our the works we carry out jointly with the provincial and value chain. With our Global Market Place project, district municipalities where our company buildings are Medical waste 0.15 0.24 0.26 we contribute to the 12.2 Sustainable located and related organizations. Batteries 3 2.6 0.7 and Efficient Use of Natural Resources Target of 12th Sustainable Development We collect waste batteries in waste battery boxes Electronic waste* - - 0,25 Goal, “Responsible Production and and deliver them to Municipalities and Taşınabilir Pil Consumption”. Üreticileri ve İthalatçıları Derneği‘ne (TAP) for recycling. * First time reporting as of 2019. Our interaction with the environment Turkcell Sustainability Report 2019 | 65 Waste management

3.3.1 Electronic waste recycling recycling campaign which is not only a transformation Amount of recycled electronic waste from field and network sources of education project and, to raise awareness about the in 2019 We are aware of the negative impact of electronic waste pollution caused by electronic waste and its recyclability. on the ecosystem if not properly managed, and we carry We also intensively continue campaign communications Type of waste Amount of recycled electronic waste from field out our work in this field with care. To turn this risk into an in order to raise awareness of all our stakeholders of the and network sources in 2019 (t) opportunity, we evaluate the products in electronic waste project. class rich in raw materials and materials suitable for reuse Hazardous 3,676 in terms of content. By revaluing electronic waste within 3.3.2 Network based waste management Non- hazardous 1,924 the scope of circular economy, we provide both financial savings and efficient use of limited resources. We regularly follow the industry innovations and trends Total 5,600 and renew our network systems in this direction. We With the participation of our employees, we also recycle replace the equipment we use in our base stations with electronic waste not used in their homes within the highly energy efficient devices that are developed to meet project. Approximately 3.5 tons of electronic waste has as much innovative and technological needs as possible. been recycled and the income has been donated to TEGV As a result of this change, we evaluate the possibility of for our children to receive quality education in science, reuse of old equipment and sell it as a second hand in art and technology. We place this project to initiate a order to generate more income for our company. We also contribute to the protection of our own resources with the devices we allow reuse. We carry out recycling activities With “TÜBİSAD (Bilişim Sanayicileri Derneği)” in compliance with laws and international regulations for cooperation we started the “Recycle into devices that cannot be reused. Education” project which is electronic waste recycling campaign in Turkey. Unused electronic devices have become waste are contained in In 2019, we sold approximately 5,600 Turkcell stores ‘electronic waste’ box, income derived from these products are donated to the tons of network-sourced waste for “Türk Eğitim Vakfı”. recycling. Our interaction with the environment Turkcell Sustainability Report 2019 | 66 Our environmental value chain

3.4 Our environmental value chain

With our understanding of being environmentally conscious and shaping technology according to the needs of the society, we realize our digital infrastructure with projects that benefit the environment. Our featured projects in this context;

In Turkey a significant part of the population makes access to technical support. In this regard, we offer a living with agricultural activities, the country services where those in need can be easily reached is generating 6.4% of the GNP from agricultural through technical channels through digital channels. activities. As Turkcell, we offer many services for By combining these opportunities with technology, such an important sector for our country. In this we support sustainable agriculture. way, we support the increase of both agricultural productivity and sustainability, and the income of farmers. We offer our “Filiz” application to farmers in order to protect limited water resources in the world and to support sustainable agriculture activities. Our “Turkcell Filiz” solution provides critical information such as what needs to be done for the plant’s development, water need and disease risks by monitoring the different values ​​of the soil and the air regularly through sensors, combines with algorithms created with artificial intelligence and Our product “Turkcell Kopilot”, which was first introduced at the 2018 World communicates it through the mobile application to Mobile Congress GSMA, offers a new dimension to the car driving experience the farmers and enables them to take precautions. with its superior features. It also allows indirect reduction of fuel consumption “Filiz” also stands out with its ability to reach through fuel use, travel and user analysis. With this product, we contribute to agricultural engineers through digital channels. making companies fleet management more environmentally friendly. Almost half of the farmers in Turkey do not have Our interaction with the environment Turkcell Sustainability Report 2019 | 67 Our environmental value chain

With “Turkcell Volunteers” formed by donations made by Turkcell Group employees, we carry out voluntary projects that will support With the environmentally friendly invoice educating children who subscription which we performed through are curious, strong in the telesales channel in 2019, we reduce our communication, using printed delivery costs, while significantly reducing technology, participating, our paper consumption and reducing our environmental awareness environmental impact. and questioning.

The number of newspapers and magazines downloaded in 2019 via our “Dergilik” application has exceeded 140 million, which offers the opportunity to read magazines and newspapers digitally from a single platform. Based on the number of pages of an average publication, more than 7 billion pages in total were downloaded. Thus, in 2019, “Dergilik” users protected nearly 500 thousand trees and supported prevention of over 35,000 tons of carbon emissions. The positive environmental contribution we have created through the “Dergilik” application will increase day by day with the spread of digital publishing. Our productive Turkcell family

“Flex” Human In 2019, the number 2.2 Million Resources of the Hours of Turkcell Our Big Productive of agile teams Apprenticeship Financial Literacy Certificate Digital Age with Academy Turkcell Family increased from 107 76% Program with for 824 participants by flexible applications Employee Training with 5,455 to 181, with a total 115 voluntary Turkcell Finance Masters focused on Loyalty Score provided to employees of 1,500 agile employees Program Employee over employees 55,000 Happiness participants Our productive Turkcell family Turkcell Sustainability Report 2019 | 69 Being a strong and agile team (employment)

4.1 Being a strong and agile team (employment)

At Turkcell, we believe our business units embodying year on and offer decent work worthy for human rights We increased the number of our agile teams by agile, strong and flexible teams is the greatest source being Turkey’s leading integrated telecom company. 70% in 2019, from 107 to 181, consisting of 1,500 agile of our success. Strong communication and interaction employees with the aim of making full use of talents with our employees are our biggest asset enabling our As part of our human resources processes, we apply and experience while ensuring continuous development journey to increase digital access. Together with our legal requirements in accordance with relevant laws of our employees. A great majority of our operations productive Turkcell Family, we adopt a communication and regulations. We communicate all operational are performed by our permanent employees. With approach that recognizes, listens and tries to understand changes that could significantly affect our employees our new teammates joining us from all over Turkey, their needs. In line with Sustainable Development Goals, within defined legal reporting processes through our we consistently expand our productive family and we attach importance to achieve greater success each internal communication channels. contribute to the effective labour force.

Our productive Turkcell family in numbers* Our executives * Demographic information presented in our Productive Family section covers Turkey operations data of the Turkcell company. The data was provided by Turkcell Human Resources Directorate and has not changed significantly during the year.

2017 2018 2019 Female 35%

Female Male Female Male Female Male Male 65% Number of employees 1,190 2,777 1,722 3,633 1,770 3,685

Ratio 30% 70% 32% 68% 32% 68% Our productive Turkcell family Turkcell Sustainability Report 2019 | 70 Being a strong and agile team (employment)

Total number of employees (2019) Newly hired 2017 2018 2019 Female Male Total employees Full-time 1,769 3,682 5,451 Female Male Female Male Female Male Part-time 1 3 4 Number of employees 273 511 265 474 174 419 Ratio 30% 70% 36% 64% 29% 71% Average age breakdown (2019) Under 30 Between 30-50 Over 50 Newly hired employees average age (2019) Number of employees 1,063 4,247 145 Under 30 Between 30-50 Over 50 Ratio 19.5% 77.9% 2.6% Number of employees 306 284 3 Number of executives** 0 558 25 Ratio 51% 48% 1% Ratio of executives ** 0% 95.7% 4.3% Number of employees resigned (2019) **(Manager, Director, C-Level) Female Male Education level Number of employees 162 438 Doctorate 0.1% Ratio 27% 73%

Master’s degree 9% Average age of employees resigned (2019) Bachelor’s degree 43% Under 30 Between 30-50 Over 50 Number of employees 104 450 45 Associate degree 23% Ratio 17% 75% 8% High school 24%

Other 0.9% Our productive Turkcell family Turkcell Sustainability Report 2019 | 71 Being a strong and agile team (employment)

“Flex” Human Resources of the Digital Age: At Turkcell, we consider our human resources practices as a flexible platform, which we put through a digital evolution and call “Flex”. We enable our employees to customize and personalize almost any application we offer them through our Flex HR system as part of the journey to become “Digital HR”.

Under the leadership of Turkcell HR Center We conduct the feedback processes as one of FLEXSourcing, another Flex application, of Excellence, we design all our human the most valuable elements of our workforce, which enables our Productive Turkcell Family resources processes, changes and procedure through our digital feedback mechanism to voluntarily invest 20% of their working time improvements, our wage policies, as well ReFlex. Regardless of location and time, we on innovative projects that require a diverse as our performance management and carry out processes such as performance and perspective, expertise and competence. Via employee development practices. Under this goal plan management of our employees, FLEXSourcing application which offers a wide organizational structure, we carry out works including appreciation and making constructive range of options including artificial intelligence, that will set an example in the business world suggestions. We maintain our work efficiency gamification, data analytics and crowdfunding, by determining goals and risks for our business and employee happiness at the highest level developed in light of the principles of value processes, defining roles and responsibilities and with our ReFlex system, which can be accessed creation and flexibility, over 200 Turkcell digitalizing our Human Resources management. via mobile and our HR Life portal. employees who aim to add value to Turkcell, took part in more than 40 volunteering projects in 2019. Our productive Turkcell family Turkcell Sustainability Report 2019 | 72 Being a strong and agile team (employment)

In accordance with the principle of adding value to the our employees successfully completes all processes society, we offer interview trainings and supplementary and joins our team, we offer a small thank you gift to information to all our candidates prior to interviews. the recommender through Paycell. After the interview, regardless of whether the interview performance was positive or negative, we thank our • At Turkcell, we consider creating value by inspiration candidates for seeing Turkcell as a preferred employer as the most effective and permanent development by presenting a gift card including our digital products method. Thanks to “Career Management Project”, fizy, lifebox and TV+. Also, at the Candidate Feedback Turkcell employees can join another business unit at Sessions we provide detailed feedback to all our Turkcell for one week as an “apprentice”. With the candidates and contribute to their personal as well as apprenticeship program, in which 115 of our employees career development, regardless of the interview outcome. voluntarily participated in 2019, Turkcell employees had the opportunity to get to know other units more closely We are working in a variety of areas with the aim of and empathize with their way of doing business while both growing our strong and agile Turkcell Family and realizing their potential. We continue to make our entire always taking our successes one step further; Productive Turkcell Family flexible and agile covering • We aim at contributing to qualified employment with a large variety of areas such as network, finance, law our “Reverse Brain Drain” project, which we specially and marketing. designed for our competent and highly talented • We are aware of the privilege that a qualified citizens, who want to return to their country, in order workforce will bring to Turkcell and our country. In this to encourage them to work in their country. In 2019, regard, we carry out PhD student employment projects we welcomed five new teammates to our Productive with leading universities in Turkey. By transferring Turkcell Family as an outcome of this project. We the scientific potential at our universities to business continue our active work as part of this project to world, we aim to create benefits to our company achieve even greater success in the coming years. and our country while increasing the diversity of • By the help of “Tell Your Candidate, Create Benefit” our candidates. In this context, we employed 5 PhD application, we expect Turkcell employees to candidate employees in 2019. We are moving forward recommend talented external candidates for open with the goal of increasing our number of competent positions on HR Life. In case the candidate proposed by employees in 2020. Our productive Turkcell family Turkcell Sustainability Report 2019 | 73 Equal opportunity, inclusiveness and diversity

4.2 Equal opportunity, inclusiveness and diversity

We consider it as one of our basic ethical values ​​to oppose discrimination based We manage our Wage Policy at all job levels in the most reliable way. We carry on gender, age, belief, ethnic origin, nationality, marital status, health status, physical out the Wage Policy of our Board Members and Executives with transparency capacity in all business activities that Turkcell touches. With respect for human rights, before all our stakeholders. We apply our wage policies in an impartial manner by we adopt and continuously improve Human Resources practices that provide equal covering all our operations within the framework of the relevant standards in order opportunities to all individuals and stand for inclusion and diversity. We guarantee to prevent discrimination between female and male employees at equal job levels. our Equal Opportunity, Inclusion and Diversity principles with our Equal Opportunity We manage our practices within this scope in accordance with Target 5.A of Policy. Thanks to the importance we attach to social equality of opportunity, Sustainable Development Goal 5 “Gender Equality”. diversity and inclusiveness, there were no cases of discrimination in Turkcell in 2019. Turkcell İletişim Hizmetleri A.Ş. was not subjected to any administrative fines against Difference in Average Wages of Rate of Employees discrimination in 2019, within the scope Law no 4054 on Protection of Competition. Female and Male Employees 2018 2019 2018 2019 Female Male Female Male As a part of our Human Resources Policy, we respect and guarantee all kinds Managerial 7% 12% 7% 12% -7% -5% of rights our employees arising from employee-employer relationship. We include clauses preventing forced labour in our supplier contracts. We adopt ILO Specialist 93% 88% 93% 88% -6% -6% (International Labour Organization) standards to cover our entire Total 32% 68% 32% 68% -13% -11% value chain, especially our suppliers, regarding the issue of not employing child labour. Our efforts in this context, contribute to Target 10.4 Sustainable Development Goal 10 “Reducing We believe that occupations and specialties go beyond gender classifications. With our Leading Integrated Inequalities”. Telecom Company identity, we fulfill our mission to bring our women forward, especially with their work in the fields of STEM (Science, Technology, Engineering, Mathematics). Together with our business You can access to detailed information on our Equal Opportunity, Inclusiveness partners, we relentlessly work to prevent occupational discrimination against women and Diversity practices for our supply chain in the Value-oriented responsible by employing 793 female engineering graduates in 2019. We will pursue our efforts to supply chain management Section of the report. increase the employment of women engineers in the upcoming periods in line with Target 5B within Sustainable Development Goal 5 “Gender Equality”. Our productive Turkcell family Turkcell Sustainability Report 2019 | 74 Employee happiness

4.3 Employee happiness

We work with all our strength to make work-life of all our employees who add value to Turkcell, more Apart from digital communication channels, We provide the opportunity for our new mother valuable, efficient and pleasant. We carry out various we also believe in the sincere effect of employees to work between 10.00-15.00 at the activities in order to improve our working environment, communicating face-to-face with our employees. office and wherever they wish for the rest of the maintain work-life balance, diversify social platforms If Turkcell is everywhere in Turkey, we, as Turkcell day until their babies are 16 months old. For our and activities, and strengthen communication. We employees should be in unity everywhere too. new fathers, who are legally entitled to a 5-day aim to make Turkcell the most preferred workplace in Hence, as Turkcell Human Resources Department, paternity leave, we provide 10 days, so that they the eyes of our employees by abiding to our “Business we started to organize visits to all our locations, can be with their new-born children longer during Promises”. In order to keep these values up to date, we as part of our “WeAreInUnity” (“BirlİKteyiz”) the first days of their lives. All our employees regularly communicate with our employees through project through which we have had face-to-face who were entitled to parental leave in 2019 used Employee Engagement Assessment Surveys and meetings with our Productive Turkcell Family in 30 their right. All our female employees, who used constantly review the effectiveness of our practices in different locations in 2019. During the year, we held their right to parental leave, returned to work line with the results we achieve. one-on-one meetings with approximately 4,850 at the end of their leave and stayed at work 12 employees in order to listen them in person. months upon their return. 1 of our employees left We conducted our latest Employee Loyalty Survey in after paternity leave but returned to work within November 2019. 93% of our employees participated 12 months. In order to prevent the perception in the survey over the course of 1 week. As per the that childcare is the responsibility of a single survey results, we are proud to see that our employee We love to celebrate life with our employees. It is gender, we will continue our loyalty level was 76% in 2019, above the average of one of our greatest pride to be with our Turkcell practices within the scope Best Workplaces (75%) in Turkey. Family at special moments. As part of our 2019 of Target 5.4 of Sustainable Employee Journey Program, we gave our Development Goal 5 “Gender employees number of gifts including 330 military Equality”. service send-off, 210 new-born baby welcome, 155 wedding and 18 promotion celebrations. Our productive Turkcell family Turkcell Sustainability Report 2019 | 75 Employee happiness

working hours, as long as they meet the minimum office It is very important for us to make our employees Parental leave at Turkcell hours per day. Our “Mobile Working” application enables happy and to ensure they always feel the support our employees to work from wherever they prefer. The of their Turkcell Family. For this reason, we offer many “Officestation” application, on the other hand, enables our opportunities such as special time-off for birthdays, employees to work in an area designed especially for campaign benefits from contracted companies, and them in each Turkcell location. a regeneration assistance program for a healthy life. Our flexible benefits programme Flex Menu provides By saying “The Health of Our Employees Comes First” advantages ranging from gift cards, vacation packages, we value their health and organize regular seminars and and from interim retirement payments to healthy life activities on a wide array of health and fitness topics. Our bundles. Our employees have the chance to combine employees have access to office exercise sessions as well these offerings in the way that best suits their needs. We Number of employees who were entitled to and made use of as dieticians to combat obesity and assist weight control, give our employees who have been working with us for 127 170 parental leave pilates sessions designed to preserve spinal health, and seven years or more, the right to take a “Renewal Leave”, Return to work rates of employees using parental leave 100 99.4 yoga-zumba classes for mindfulness. In addition to these where they can take a break from their business life for benefits, by facilitating access to eye and tooth scanning Employee retention rate after parental leave 100 100 up to 3 months and use this time as they wish. and spine posture check-up services, we raise awareness of our employees against common health problems and Employee platforms: Our employees at Turkcell We reach high level of efficiency by flexible working support them in protecting their health. have a wide variety of platforms where they can practices by providing our employees the opportunity to express themselves. Our top management is in regular choose from certain working condition options. Thanks contact with our employees throughout the year via to our innovative working model, we give our employees various meetings such as Infoday, Leaders’ Meeting, the chance to manage their private-work life balance Communication Meetings, Quarterly Presentations, effectively and efficiently by fast in home internet and All Hands events. We organize internal seminars connections, “Mobile Working”, “Planning the Day”, at Salı Pazarı (“Tuesday Market”) to which we invite “Part-time Working”, and “Officestation” as well as experts from various sectors and fields. We organize BiP SMS application which enables fast communication. activities under numerous social clubs such as Mom & With the “Planning the Day” application, our employees Dad, Bloggers, Fan Clubs, Animal Lovers, Motorcycle, have the opportunity to determine their own office Cinema and Turkcell Social Activity Group. Our productive Turkcell family Turkcell Sustainability Report 2019 | 76 Employee happiness

We appreciate our employees: With our CEO and We trust the power of communication: With the Voice CXO awards we reward our General Manager, Deputy We care about learning from of Managers (VOM) program, we provide our managers Director Generals and employees who made a difference. each other and support a sharing with the opportunity to take part in shaping Turkcell’s Via our instantaneous rewards platform, all our managers strategies under the leadership of our strategy team. We environment. In this context, in 2019, can provide instantaneous benefits and rewards to their also bring our directors together with our strategy team employees through our Mobilim application. We reward we listened Turkcell from Turkcell by Voice of Directors (VOD) organizations and offer innovative employees those who add long-term value members with more than 20 Flex them the environment to exchange ideas. to our company through “This one deserves an award” Chat events. initiative. Through our “Innovation Platform”, we collect We embody the privilege of working at Turkcell with the opinions of our employees on issues determined by various benefit offerings for all Turkcell employees such the business departments, and reward those with the • We believe that being a Turkcell employee means as life insurance, health services, disability insurance, most innovative suggestions. Employees who complete being advantageous in every field. Within Turkcell pension right, and shareholding. th th th th their 5 , 10 , 15 , and 20 years are awarded a specially Advantage Club, we continue to give advantageous prepared thank-you package and are honoured in our discounts and offers to our employees from 300 Sportive Turkcell family: Turkcell is active in several Seniority Awards ceremony. Along with business ideas, we different companies on average per month. sports branches including football, basketball, volleyball, also encourage our employees to participate in activities tennis, table tennis, swimming, sailing, running, cycling, that have a positive impact on the society. 1,100 Turkcell • We work together, we travel together. Within rowing, and chess with our men and women teams. employees were personally awarded in 2019 by our Turkcell Active Club, we carried out 40 excursion We have won numerous awards at both national and General Manager and Deputy General Managers for their tours with our employees. international competitions. Turkcell BiP Super League was social value adding activities. a shining star among other Turkcell sporting activities, • We compete, learn and develop together. With our which was compatible to national leagues with different We try to celebrate our employees’ birthdays in competitions in the BiP Intcom channel, more than classifications including women, men and veteran. As a meaningful way. In order to do so, we provide 500 employees won various surprise gifts from over part of the BiP Super League organization, 75 teams sponsorship for the eye surgery of a person who has 50 competitions. consisting of our employees across Turkey competed in vision problems in different countries of Africa each day three different leagues. Nearly 1,000 Turkcell employees of the year, with our initiative “Open Your Eyes to Life with played 140 matches. The tournament lasted 3 months Turkcell”, which is run in collaboration with the Doctors with participation of teams from 21 cities in Turkey. Worldwide. Our productive Turkcell family Turkcell Sustainability Report 2019 | 77 Employee happiness

One of every five Turkcell employees is a Turkcell volunteer During the striving COVID-19 process, we made it • Video content prepared with our company our priority to ensure the motivation and happiness psychologist on the difficulties of the pandemic of our employees and we did not leave our period and the ways to overcome these difficulties Our Turkcell volunteers family: As Turkcell Volunteers, Productive Turkcell Family alone by organizing many we have taken many initiatives and organized events different activities; • EvdeMüzikVar (“MusicAtHome”) activities where for those in need as well as for disadvantaged groups Turkcell Music Club members played the Turkcell in 2019. We undertook projects with Turkcell Volunteers • 3-month Fizy Premium and Dergilik membership to melody from their homes in 10 different cities (Izmir, Trabzon, Hatay, Kayseri, Urfa, our employees through IntCom BiP account Erzurum, Konya, Van, Antalya, and Muş) and provided • Turkcell Group HR survey applications in order to support and assistance to those in need. • #EvdeHayatVar (“LifeAtHome”) concert series via closely monitor how our employees feel physically, IntCom account mentally and emotionally and to make them feel that we are with them whenever they need, and • “Şanslı Bilenler” (“LuckyThoseWhoKnow”) quiz series telephone calls made by our Business Partners to from IntCom BiP account and 100 TL hepsiburada. our employees who provided negative response com gift voucher to 5 lucky Turkcell winners to the surveys, with the aim of understanding the reasons behind their problems and guiding them to • Live broadcast with our CEO via Pikcell the necessary channels

• #EvdeHayatVar e-games tournament • Special leaves for Turkcell parents during the days announced by the Ministry of Internal Affairs for We organized a Foster Family Seminar with broad • Pedagogical seminars for providing advice to children between the ages of 0-20 to be allowed to participation of Turkcell employees who wish to be families with children go out a foster family. In order to accompany young people with down syndrome in their working life, we visited • My Dream Emocan competition and My Dream numerous restaurants, where these young people are Emocan Painting Exhibition as part of 23rd April employed, and tasted the delicious food they prepared. National Sovereignty and Children’s Day As part of these visits, we also had the chance to encourage them with face-to-face contact. Our productive Turkcell family Turkcell Sustainability Report 2019 | 78 Employee health and safety (ohs)

4.4 Employee health and safety (OHS) the nature of the work following the risk analysis we carry out with groups of network employees as well Health seminars: We perform health seminars With the expertise of our Turkcell Group Occupational as employees driving in the field and office workers. which we held face-to-face with our 940 Health and Safety Unit, we consider it a great We are working for our employees to have the employees this year under the title of Health- responsibility to ensure full safety in all our work highest level of safety and awareness on every work Safety in Pikcell covering current and professional environments and to improve health and well-being of activity by personal protective equipment supply and information on health of our employees and our employees. user trainings, visual OHS warnings, vertical lifelines their families. We also conduct regular health in tower fields, general OHS trainings organized screenings for our employees. Under the leadership of our top management, we according to hazard classes, special trainings for high- closely follow the legal obligations on Occupational risk jobs such as working at height and safe driving Health and Safety (OHS) within the framework of our training. With our software program called RADAR, we offer our employees Occupational Health and Safety Policy in compliance the opportunity to track the results of reporting dangerous situations. In with the ILO-OHS (ILO Occupational Safety and Health) 2019, 72 suggestions and complaints were received through the RADAR 2001 standard and organize employee trainings, and Network technologies field operations OHS application, 54 of them were resolved and the remainder were evaluated compliance inspections. applications: In our base station field works, in the category of acceptable risk. we apply safe working principles and action We direct our OHS Policy with regular participation of plans prepared for high-risk activities such as our OHS Committees and employees at our 11 business working at height, electrical works, excavation Hygiene audits: With the locations and take proactive measures against OHS works and vehicle use. In 2019, we completed “SafeKeyTM Food Safety & Hygiene risks. We communicate with all our employees on risk assessments at 1,962 Risk Audit Program” developed by Turkcell OHS Portal concerning OHS issues. We expect base stations and made Diversey Consulting, we check the our solution partners to comply with our OHS Policy and OHS improvements in compliance of food services offered we ensure with our business contracts that they take 424 base stations. to our employees with food safety measures to abide these rules. Our OHS experts monitor and hygiene standards. all work-related accidents and other OHS-related data.

We implement our occupational health and safety measures in accordance with the field conditions and Our productive Turkcell family Turkcell Sustainability Report 2019 | 79 Employee health and safety (ohs)

2019 All Third party employees employees

Total OHS Training 25,512 3,600 Hours

Number of 53 9 Accidents

Number of 0 0 Occupational Diseases

Accident Frequency 5,2 13.5 Rate*

*Accident Frequency Rate was calculated using 1,000,000 working hours.

It is seen that the statistical studies we created after the accident reports are important tools in determining the causes of accidents and preventing them. Risks which were identified within monthly reports we submit to senior management are analysed by our senior management and OHS experts. Those reports also play an active role in determining our future goals and realizing the necessary improvements. Our productive Turkcell family Turkcell Sustainability Report 2019 | 80 Turkcell Academy

4.5 Turkcell Academy

Turkcell Academy, the knowledge management with Rice University, Boğaziçi University and Capsim, and strategic development center, which has been and approximately 2 thousand people who completed We provided Turkcell employees implemented in line with the principles of “equality the distance education program of Rice University were with an average of 80 hours of of opportunity in education” and “investment in awarded with the certificate. 1,283 people attended training per employee in 2019. With people”, continues to support development journey for Boğaziçi University and Capsim Finance Simulation, Turkcell Ecosystem (Turkcell-Group internal and external stakeholders with its works that which is a part of the program. 824 people completed and Turkcell fields) employees, we make a difference. Turkey’s first corporate university, the program and awarded with a certificate from allocated an average of 66 hours per Turkcell Academy, was awarded with more than 40 Boğaziçi University. employee to improve ourselves. international awards since it was founded. Under the leadership of Turkcell Academy we constantly support We present the program, which we have implemented digital transformation in the field of education by our with the aim of raising the leaders of the future, at six partnerships with our country’s and the world’s leading different leadership levels up to C-Level, in cooperation With Turkcell Academy, Turkcell’s corporate university, universities and education institutions. By the help of with the International Institute for Management (IMD). we continue to stand by our employees on their Turkcell Academy, we will continue Within the scope of the program, which lasts for five development journey. By dozens of different initiatives to perform our activities in line days with the participation of more than 700 teams, of Turkcell Academy we are making our Productive with Targets 4.3 and 4.4 within it is aimed to develop new business models in the Turkcell Family more competent and preparing Turkcell Sustainable Development Goal 4 digital world, platform economies, customer-oriented and Turkey for the digital transformation of the future. “Quality Education”. approach, innovative thinking and value creation By adopting the “providing equal opportunity for focusing on big data. “Building Leaders” certificate everyone” approach in education, we provide all our Over the Turkcell Finance Masters Program, we program prepared in collaboration with Koç University, employees with the opportunity to improve themselves aim to improve the knowledge of our employees on aims to develop the participants in the areas of regardless of their duties and responsibilities within basic subjects of finance, to increase their financial strategic thinking, strategic marketing, finance, and the company. In 2019, with Turkcell Academy, we have literacy and knowledge of techfin solutions integrating digital transformation. created works that make a difference to prepare technology into Turkcell’s finance world. 2,283 people more than 55,000 employees, business partners and applied to the Finance Masters Program, which consists society in our ecosystem for the digital future. of 100 training hours in total, prepared in cooperation Our productive Turkcell family Turkcell Sustainability Report 2019 | 81 Turkcell Academy

In order to support the vision of becoming a leading training with the IMD & Turkcell Young Talent Business In our Turkcell Ecosystem, we conduct trainings integrated telecom company, Digital Business and Innovation Program were entitled to participate in under six different topics within the scope of primary Transformation Training, which was given to all the technology and development camps which take compulsory trainings. We present our corporate executive levels in 2017 and 2018, is carried out with the place in various parts of the world. identity to all our employees with our trainings focus of Customer Focus in the Digital World, Digital on “Occupational Health and Safety Trainings”, Innovation, Digital Business Disruption and Digital Business With the CX Lab Customer Experience “Information Security Training”, “Business Continuity Transformation. As part of the “Leaders as Teachers” Development Program, we aimed to improve Training”, “Bribery and Corruption”, “Competition Law” mentor program, young talents, new executives and the customer-oriented design perspectives of our and “Turkcell Values and Business Ethics Rules”. director substitutes are positioned as mentees while customer experience teams. Within the scope of our directors and experienced executives act as mentors. fixed internet services with CX Lab, we introduced a brand-new modem and service model with smart Employee development in numbers (2019) As Turkcell Academy, with the GNCYTNK Programme, home assistant feature of Turkcell Evim 360. On Number of people participated in trainings 55,000+ we offer a one-year training program specially designed the finance side, within techfin solutions, we have for new recruits. Our program consists of 6 modules. developed a new service called Paycell Wallet which Total training hours 2.2 million In this context, we offer hundreds of trainings including, allows the users to monitor joint spending and savings. Number of Academy instructors 623 digital learning, experimental learning and face-to-face learning methods, consisting of Turkcell Here, Customer Ratio of internet based trainings to all trainings 91% Here, Technology Here, Our New Business World Here, Number of training partners 300+ Culture Is Here, and Entrepreneurial Leaders Here. The following phase of the programme covers trainings organized with Turkcell technology teams and corporate universities of technology companies such as Huawei, Oracle, Cisco, Ericsson, Nokia and HP with the aims of knowing the sector closely. 87 of our young talents who successfully passed all trainings at the end of the 2019 GNCYTNK programme benefited from opportunities to study abroad at the headquarters of corporate universities. Project teams selected at the end of the Our productive Turkcell family Turkcell Sustainability Report 2019 | 82 Turkcell Academy

Turkcell primary compulsory training hours for 2019 We improve the competencies of our employees at Turkcell sales stores with different certification programs in technology retailing. The Program started in to train the advanced workforce in 25,512 hours 289 hours technology retailing started in 2016 and so far 27,580 employees have received their certificates. Our 500 Occupational Health Information Security store employees who succeeded in the Advanced and Safety Trainings Trainings Certification Exam completed the Program developed in cooperation with Marmara University and Turkcell Academy.

We place great emphasis on the importance of the competence and development of Turkcell Academy, 1,281 hours 100 hours who develops our family. This year, we put forward the Academy Trainer Development Program, which Business Continuity Competition Law includes more than 400 of our trainers, together with Trainings Trainings Marmara University Continuing Education Center. In this journey, we provide trainings for our trainer volunteers on Learning Psychology, Teaching Models and Methods, Measurement Tools and Methods and Teaching Material Development in accordance with 2,978 hours 1,403 hours Learning Styles. Following these trainings, we improve the training they give by Observation and Feedback Turkcell Values and Anti-Bribery and sessions conducted following their training. Business Ethics Rules Anti-Corruption Trainings Trainings Our productive Turkcell family Turkcell Sustainability Report 2019 | 83 Talent management and young talents

4.6 Talent management and young talents

Bearing in mind the contribution of enriching the competencies of our current as well as potential employees to our business processes, we integrate various innovative initiatives as part of our human resources processes. by doing so, we both invest in our employees and use our workforce much more effectively with the right planning.

Flex Performance system

The Flex Performance system, implemented since 2017, creating common targets, calibrating the target weights within We continue to increase our provides our employees with consultancy by “Performance the function or the directorate, managing the goal setting success in internal promotion Coaches” selected from the relevant business lines with the process, providing performance management consultancy to rates by implementing aim of supporting them in setting SMART (Specific, Measurable, the employees and increasing the use of ReFlex. Depending on succession plans with our Achievable, Realistic, Timely) targets. The Performance Coaches the fulfillment of all these roles and responsibilities, we assign “Talent Management” process are chosen among the employees of our companies (Turkcell, 15% effective Performance Management System Achievement for in-group management Turkcell Superonline, Global Tower, Turkcell Teknoloji, Turkcell Points to our Performance Coaches in addition to the function positions. Finansman A.Ş., Mobil Finans, Satış ve Dağıtım A.Ş.), approved by targets at the end of the year. Human Resources Unit as well as the relevant director, fulfilling the roles and responsibilities defined within the Performance By using the regular feedback feature of the system, we can Internal promotion rate Management System. They are responsible for supporting the monitor and evaluate the defined SMART targets on a daily Human Resources function by supporting the determination basis. In 2019, we made regular performance and career 2017 2018 2019 of “SMART” targets in line with the management objectives development evaluations for all our employees in manager and 70% 87% 89% of the function or the directorate they are responsible for, expert positions. Our productive Turkcell family Turkcell Sustainability Report 2019 | 84 Talent management and young talents

Flextalent: You are much more! GNCYTNK, Your dreams will come true GNCYTNK 2019 Advertising Campaign, presenting our career program with Turkcell! Launched in 2018, FlexTalent has turned into a for innovation and technology, has made us proud by winning a total of digital pool of Turkcell talents where Turkcell Thanks to our new graduate recruitment program seven awards at creative festivals held in the UK, Germany and the USA. members can share their professional experiences, GNCYTNK, we are proud to run the first and most talents as well as the projects they participated comprehensive young talent recruitment program in and information about themselves on their profile our country since 2016. GNCYTNK was opened on our own digital platform for the first time this year. 153 of pages. With the CV creation feature added this our young candidates, who were meticulously selected year, our employees can now apply among tens of thousands who applied, for different career opportunities became Turkcell employees. We within the company with their will continue to run our GNCYTNK FlexTalent CVs and have the program in line with the Target 4.4 opportunity to increase their under Sustainable Development Goal chances of internal promotion. 4 “Quality Education”.

Higher with YUPO in the top 30% according to the 2018 performance Volunteer YUPO candidates completed the Ability Following the completion of all practices, 540 score of functions and also with a Behaviour Grade Test while their managers completed the YUPO YUPOs, corresponding to 10% of the number of The YUPO (High Potential) program, specially 4 or above. We then shared the YUPO booklet with employees in each function, were chosen and the designed and implemented for Turkcell family with Inventory. YUPO Inventory includes 48 questions all Turkcell employees started the selection process first Kick Off meeting was held for our YUPOs. high ambitions, transform their distinctive talents based on the Turkcell Behaviour Model, consisting by applying the Ability Test consisting of 3 main into high performance and realize their potential in of 4 dimensions. These dimensions aim to evaluate Until the end of 2020, YUPO’s Education- line with the culture and values of our company. dimensions and 8 sub-dimensions to a total of 1,184 our YUPO experts and include the following titles Development, Recognizing-being volunteers who met the criteria. In beginning the YUPO Project, we first identified Awesome Together, Pursue Your Dreams, Reach Recognized, Experience Enrichment and 1,411 experts who meet the relevant criteria. While The average score of participated 1,184 Turkcell Results Without Give Up and Create Value from various networking opportunities will choosing the experts, we have listed those who are employees was determined to be 70 out of 100. Data. continue. Our productive Turkcell family Turkcell Sustainability Report 2019 | 85 Talent management and young talents

Leadership Program and Mentoring System HAP+ Digitalization with data-based analytical We support the career development of our perspective: In this context, we development We bring new learning managers and manager candidates with Leadership further in Human Resources Analytics field. perspectives to our Development Programs. We offer different Our HR Dashboard (HR Data Warehouse), employees with innovative opportunities such as distance learning, MBA programs, methods such as experimental learning and launched in 2018, reached its third version in coaching meetings and classroom trainings. Our distance learning. In 2019, we reached 5 2019. Managers in all functions can observe the executives can benefit from the distance learning thousand people in total with the trainings HR metrics of their teams, make comparisons tool Harvard Manage Mentor and GetAbstract, the provided in four different categories and 90 and access detailed analysis through the HR world’s largest online library, in collaboration with the different titles on the HAP+ platform. Dashboard. world’s leading business school Harvard Business School. Through this mentoring system, we support in- company learning and leadership development. Technology Development Program Digital White Shadow Digital Talent Development We provided 123 thousand hours of training to Our White Shadow application, including 2,500 employees on trendy technology topics colleagues who guide new employees in With the leverage effect of technology, we undertake such as Big Data, Hadoop, IOS, Android, Business Turkcell during their first days, with subjects such many different initiatives to sustain the development Analysis, UX, IOT, Virtualization, LTE, 5G and as Turkcell culture, working environment and of digital talent within our Productive Turkcell Family Security via online training platforms and in-class team dynamics via the BiP channel on digital and combine the new productivity trends of the training. Within the scope of the CIT (Customer platform; assist new Turkcell employees on many digital world with our talents. We will Experience and Information Technologies Unit) issues ranging from fringe benefits, working continue carrying out our Digital Training & Development Program, a total of 1,731 hours, phone and computer supply to general Talent Development initiatives in people supported their functional development information about Turkcell. line with Target 4.4 of Sustainable by participating in the classrooms opened under Development Goal 4 “Quality 150 different titles, while 758 people under 77 Education”. titles had the opportunity to develop in the online education category. Our productive Turkcell family Turkcell Sustainability Report 2019 | 86 Digital remote working experience

4.7 Digital remote working experience

We continue to build a Better Future with • In case of a possible problem on our Superior Digital Services by touching electronic communication systems, we the lives of our employees as Turkcell. identify the situations that need to be By the help of Flex Human Resources intervened and ensure the redundancy applications, we offer our employees a of the employees in this position. digital remote working experience. We • We ensure that the information security aim to facilitate their work with many awareness of our employees working different activities by protecting the with remote access is increased and health of our employees, especially with the necessary training/orientation is the remote working model, which has provided. become our way of doing daily business in the process of COVID-19. To enrich • We ensure that the necessary meetings the digital remote working experience are held by video conferencing as of our employees during the COVID-19 much as possible. pandemic; • We are increasing the number of • We identify and minimize the risks Virtual Rooms (meeting rooms that related to safety and working can be held in a virtual environment) conditions, by creating remote working to enable business continuity without conditions and defining working criteria. interruption during the remote working process. • In order to prevent problems that may arise in case of collective mobile work, We constantly share information for we consider business continuity and disruptions that may occur while employee health with mobile work working remotely with our employees drills. from our support line. Human happiness-oriented accessible services

800 million 230 million Fastest response World record A total of 46.7 Internet speed transactions transactions on time in social media in with our 5G million customers, reaching 10 per month in the My Company Turkey with an average infrastructure at including 35.7 Gbps with our “Digital Operator” mobile and web response time of 20 a speed over 2 million in Turkey fibre infrastructure application applications minutes Gbps Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 88 Customer experience orientation

As Turkey’s leading integrated telecom company, we Digital Business Services in order to be with them at 5.1 Customer experience orientation see our customers as the most important part of our every stage of their digitalization journey and provide family, and we are trying to add value to every second solutions in areas such as cyber security, cloud and big We aim to be instantly and practically reachable by of their lives for the past 26 years. We candidly listen data. our customers and solving their questions using the to our stakeholders’ needs and demands as part of our most effective approach. For this purpose, we develop mission to conduct human-focused communications. Our customer universe various communication channels for our customers by We design our products and services for the benefit using digital solutions. You can find the breakdown of number of customers of people first and foremost, and we aim to eliminate 8.9 billion according to subscriber types and the change from social inequalities by making our products and services process accessible to everyone. In addition to Turkish, we also previous year in the Corporate management section 151 million of our report. Self provide our services in English, Arabic and Russian Call center Service 1.9 million service Social contacts languages. We consider our high customer satisfaction Media r te scores as a measure of our success. n In 2019, we interacted e C Turkcell Turkcell ll a with a total of A 555 C C As one of the leading organizations in our country, we Turkey Global ls p o e p thousand 35 million D n n l i s have a direct impact on the communication processes n i c g u 35.7 11 a a requests i l customers, 9.3 t t t h a a i and business methods of individuals and companies. o

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35 e e-mails i F of this, we create inclusive services and products to meet t million ha those individual needs. We have created specialised C customers 224 million vreka plans for our individual customers such as Lifecell First Shop visits E 11.6 million Line, GNC, Platinum, Platinum Black and Golden Ages Total 6 thousand chats for different age groups and needs. For our corporate 46.7 Customer customers, we established our new subsidiary Turkcell million feedback Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 89 Customer experience orientation

Our Digital Operator application, developed to answer We serve our users 24/7 with a total of 54 social media our customers’ needs, has become the most preferred In 2019, 230 million transactions were accounts on Facebook, Twitter, Instagram, YouTube and service and sales channel by our customers, reaching carried out on My Company mobile LinkedIn. We take into consideration 165 thousand comments 48.6 million downloads in 2019. Digital Operators’ per month submitted by 50 thousand social media users. and web applications by 196 thousand 3-months active users reached 21.2 million and our customers performed 800 million transactions per month companies. using this application. In 2019, we became the leader of Turkey with 20-minute response time on our social With the Digital Operator application, our customers Thanks to our Chatbot application, integrated with media accounts. can monitor their invoices instantly, track their internet/ applications such as Digital Operator, GNC and Platinum, SMS/minute usage and switch to more convenient we offer our customers fast and effective solutions. Our Our Face to Face Customer Services channel, developed plans, tariffs and services if needed. We also share new customers can contact us via instant messaging when for our hearing-impaired customers, in order to increase campaigns with our users through the application, thus they have questions about their lines or applications. With the coverage and accessibility of our services, started to offering our customers the opportunity to switch to the artificial intelligence based Chatbot technology, we provide on-line services as of March 1, 2019. Our customers convenient plans. have further automated instant messaging services for can access our Face to Face Customer Services from our customers. We continuously improve our services by Digital Operator, Sign Language application. Face to Complaints and requests can also be submitted via the following customer insights with analytical models based Face Customer Services is also available at Turkcell and Digital Operator application. In this way, our customers on artificial intelligence analysis. Superonline stores, offering free sign-language service can solve many of their problems remotely, without between 10:00 and 19:00 every day of the week. At the visiting our shops. same time, we can call our customers back following the short messages they send to us and respond to their needs. With the My Company application, developed for our corporate customers, companies can perform • We provide an average of 1.6 million chat services bulk actions on corporate lines. We bring speed and to our customers every month. • We serve 2 thousand hearing impaired customers convenience to the life of corporate customers and save monthly with our video call center. • We respond approximately 72% of our customers’ paper by enabling them to make transactions such as requests with our Chatbot technology. • We are also calling back 100 customers monthly to switching to suitable plans and campaigns and changing respond to their demands. SIM cards online, without any printed documents. Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 90 Customer safety and satisfaction

5.2 Customer safety and satisfaction in the “Effective & secure content management” section of the report. With our Customer Satisfaction Policy, created in order to ensure the With our customer satisfaction-oriented business satisfaction of our customers, we are committed to resolving customer requests model we see the feedbacks of our customers as We listen to “Customer’s Voice” at every point of in an open, transparent, fast, reassuring and customer-oriented way. We receive a valuable opportunity to improve ourselves. We interaction and offer quality customer experience. thousands of requests, suggestions and complaints every year from our 46 put data security and privacy as one of the main We analyse and process of the feedback we receive million customers worldwide. We aim to analyse these feedbacks objectively, components of customer satisfaction. In this period from channels such as social media, applications, call carefully and find solutions. We also integrate permanent improvements into when technology is an integral part of our daily lives, centers and the discourses of our customers. In order our systems and processes. While designing the processes and targets to we continue our efforts to ensure the privacy and to better understand our customers, we share the calls handle the requests that reach us, we always take into consideration the legal data security of our customers in accordance with the coming to our call center with our employees through requirements, along with customer and employee needs. Personal Data Protection Law (KVKK) and ISO 10002 the Customer’s Voice platform. We always prioritize the Customer Satisfaction Management System Standard, safety of our customers; hence we remove all personal abiding by the highest possible quality conditions. data from the call records we share in our platform. As Turkcell, we are growing further every day with innovative investments putting human health first, within our responsibility to oversee the health impact of all services We manage all our products and services taking we offer to our society. In 2019, we have taken all precautions for our products and into consideration customer safety and satisfaction As a result of the surveys conducted services to avoid any violation and comply with regulations on customer health. and comply with legal requirements of both the USA with our customers, we are delighted Some of the practices we have implemented in this context; and Turkey. We publish our non-compliance cases to see that we have increased our of laws and voluntary regulations transparently and customer satisfaction in our Call We require EMC (Electromagnetic Compatibility) certificate for the radio objectively in the Corporate Governance Principles Center and Face-to-Face Channels Compliance Report within our Annual Report and in equipment we use in our network facilities from the manufacturers. We are compared to 2018. In 2019, in our regular disclosures to the SEC (US Securities and looking for the prerequisite of CE certificate for imported products. We also Exchange Commission). You can access our Annual comparison to our competitors in require that all products used in our networks comply with international 3GPP Reports and the latest versions of our SEC notifications Turkey in Mobile Personal, Mobile standards. In this way, we also guarantee that the equipment used at our base in the Investor relations section of our website. Enterprise, and Fixed Individual areas stations meet the international health standard requirements. we continue to have the highest Net You can access our work and principles in the field Promoter Score. of customer security, data privacy and cyber security Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 91 Customer safety and satisfaction

Approval of BTK (Information Technologies and Uykusu Kaçanlar Kulübü: As a result of our analysis, Communication Authority) is required for all base we implemented our “Uykusu Kaçanlar Kulübü” for station radio frequency devices to be used in our our active users at night. After 22:00, we offered country. In our fields established to provide mobile campaigns to thousands of users who visited services, operations are carried out according to our website. In 2018, an average of 150,000 users the standards set by BTK. Installations are made visited our website overnight, and 5% of these users We offer suitable in accordance with the safety distance and reviewed the latest technology products. Based campaigns to our electromagnetic radiation (EMR) limits determined on this insight, we decided to develop a special customers who cannot in the regulation. EMR values, which are ​measured page for those users visiting the website at certain sleep at night. during the installation of base stations, should remain hours of the night (22:00 - 02:00) and offered them within the limits​​ defined by BTK. As Turkcell, we strive special promotions. We selected the most popular to minimize our negative impact on public health by products and created the campaign packages operating our base stations with values ​​well below by matching the most appropriate products. We the limit values ​​defined by BTK. EMR measurement is ensured that “Uykusu Kaçanlar Kulübü” is listed carried out by independent measurement companies among the first results on Google by SEO (Search which are accredited and audited by BTK. In addition, Engine Optimization) adjustments. As a result of our BTK conducts field EMR measurements at our facilities efforts, this single campaign page was visited by 3.3 from time to time. million users. We succeeded to increase our sales 2.6 times by attracting users to our website between We take physical measures to prevent unauthorized 22:00 and 02:00 at night. Currently, we continue to access at our base stations. We require the security offer promotions with an increasing product range certificate to be physically present at each base over our special website with a visit volume of nearly station. We implement strict security measures by 4 million. We are happy to offer suitable campaigns placing emergency warning signs outside our base to our customers who cannot sleep at night. stations. Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 92 Inclusion and accessibility of our services

5.3 Inclusion and accessibility of our services living in cities and countryside. We continue our efforts to expand our network security and coverage by Unfortunately, we cannot provide fiber internet infrastructure to some We are aware of the absolute necessity of an adhering to our principles of equality of opportunity, regions and houses, but we have developed our Superbox product not to inclusive, reliable and fast network system in order customer satisfaction and service quality. deprive these customers of fiber internet. We provide internet over mobile to provide a safe and efficient user experience. For network equal to fiber internet speed to households unreachable with fiber this reason, we closely follow new technologies and infrastructure with our Superbox service which is a first in Turkey. As a highly developments in the world. We aim to increase our Fiber internet is a service that requires a appreciated service by our customers, with a growing number of users each coverage and speed with the investments we make in durable and strong infrastructure. Thanks to day, Superbox is a successful example of our innovative our network every year. infrastructure sharing agreements we signed solution services. With our Superbox product, we increase with Türksat and Vodafone Turkey, we share the technological accessibility of our society within the th Today, we are one of the few operators that provide our fiber infrastructure with other internet scope of the Target 9.B of 9 Sustainable Development the fastest 4.5G service in the world with our rich providers in Turkey. We are now able to provide Goal, “Industry, Innovation and Infrastructure”. frequency bands and strong infrastructure. We fiber internet access to more households in already started preparing ourselves for the future Turkey. In this way, by strengthening the with new 5G technology applications to maintain our technological infrastructure leading position in today’s world where technology is of our country, we help with developing rapidly. the Target 11.A of the 11th Sustainable Development 5.3.1 Network security and coverage Goal “Sustainable Cities and Communities”. Providing uninterrupted access to our services is only possible by increasing our coverage. Geographical formations such as mountains in rural areas and valleys as well as urbanization are factors affecting As of 2019, we provide 323.2 the coverage of networks. As Turkcell, we aim to thousand customers by Superbox overcome these physical and geographical barriers and provide a fast and reliable service to people with fiber speed internet. Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 93 Inclusion and accessibility of our services

5.3.2 Network durability and reliability We are taking part in the Global Artificial According to BTK data, by performing a total Intelligence Challenge Initiative organized Apart from coverage; durability and reliability of investment of 4.9 billion TL in 2019, we maintained by GSMA and Alan Turing Institute with the the network are also important factors to ensure our leadership with 48.1% rate among all project that we have implemented to sustain uninterrupted and effective services. operator’s operator investments in Turkey. The uninterrupted communication by detecting total investments of mobile operators in Turkey the factors weakening our coverage area and In this context, in 2019, we launched our SD-WAN increased by 52.3% compared to the previous Our SON disrupting the signal with artificial intelligence (Software Defined Wide Area Networking) service year; Turkcell’s investment amount has increased management applications. to meet secure connection needs of our corporate by 105.9% recording the highest increase among received the customers. We made it easier for businesses to use all mobile operators. world’s most Our project made a significant success, by cloud solutions in their digital transformation processes, advanced being selected among the first four of 80 and we saved costs by using fewer devices. SON Award projects from operators worldwide, within this We have activated 37 different SON (Self Organized by GSMA in initiative. Our project within Global Artificial Network) modules to develop control algorithms for Intelligence Challenge 2019. We are one of the world’s leading performance management and optimization of our Initiative, contributed the network and to automatically perform performance- Target 9.B within Sustainable operators with our strong fiber improving adjustments. Our intelligent network Development Goal 9 “Industry, infrastructure and internet speed management, using artificial intelligence, improves Innovation and Infrastructure”. reaching 10 Gbps. network performance with an average of 220,000 automatic commands per day. In this way, while increasing operational efficiency, we also save 21% We launched our Wi-Fi on Campuses service to human-hour and run algorithms increasing energy support university students. We provide free Wi-Fi 5.3.3 Network investment and service quality efficiency in the network. We improve the customer access for all students at 70 university campuses in From internet services to network services, we follow experience by reducing the margin of error to zero. Turkey. the developments and trends in the world in our With our SON Project, we contributed to Target 9.B field. We aim to provide fast, reliable and up-to-date within Sustainable Development Goal 9 “Industry, services to our customers by making the necessary Innovation and Infrastructure”. research and investments. Human happiness-oriented accessible services Turkcell Sustainability Report 2019 | 94 Inclusion and accessibility of our services

As part of the Communication Technologies Cluster (HTK), we support SMEs in R&D We are developing We are among the world’s fastest 4.5G by providing them testing opportunity in Turkcell laboratories. We currently have our 5G-MOBIX project service operators with our 1.2 Gbps speed in three ongoing projects with TÜBİTAK and universities to develop 5G compatible local within the scope 4.5G technology. We can achieve this speed base stations. of Horizon 2020 and service quality owing to our investments program, which is the largest funding resource for and our wide frequency bands. We develop We carry out 5G projects with the support of CELTIC Next and TÜBİTAK. In the project 5G researches in the world and is carried out in ourselves by cooperating with leading called RELIANCE, we are working on network slicing, one of the most important partnership with the European Commission. Via this companies in investments and projects. With technologies in 5G. In addition, we support 5G Core Network and Performance project, fuel saving is achieved by creating a convoy the project we developed with ASELSAN, we Measurement Software initiatives with different companies within the scope of 5G among the trucks following the same route, which started to use our domestically produced, PERFECTA project. With this project, we contribute to the Target 9.B of within reduces exposure to road wind by lowering the 4.5G compatible network antennas. Thus, we Sustainable Development Goal 9 “Industry, Innovation and Infrastructure” and the distance between vehicles while allowing the drivers both developed our domestic technological Target 17.16 within Sustainable Development Goal 17 “Partnerships for the Goals”. in the back of the convoy to rest. By using vehicle-to- practices and contributed vehicle or vehicle-network-vehicle communications, to the local economy and road images of the front truck could be sent to Target 9.B within Sustainable the trucks at the back via 5G. This would allow the Development Goal 9 “Industry, drivers to follow the road as if they were driving Innovation and Infrastructure”. the vehicle in front of the convoy. Our 5G-MOBIX project, contributes to the Target 9.B of Sustainable Development Goal 9 “Industry, Innovation and After 4.5G, we started developing our 5G Infrastructure”, as well as the Target 17.16 of technology, which will create faster solutions and Sustainable Development Goal 17 “Partnerships for new opportunities for technological solutions. We the Goals” assist various 5G projects to contribute to local development. In this context, we have developed haptic glove project which can be remotely controlled by 5G, being a first in health sector. Details of haptic glove project can be found on Creating social value with stakeholders section of our Report. Pre-eminent digital services & innovation

A 44% increase 4.5 Million 3 in Digital Business Month- Powerful mobile Active User R&D Solutions revenue Digital export to Base and 252 million new patent 1,263 37 infrastructure ready for 531 Employees reaching billion countries TL Revenue with applications 1 5G transition TL Unique Digital Paycell, one of our Service Revenue techfin services Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 96 Technology leadership and digitalisation

6.1 Technology leadership and digitalisation In the last five years only, we have made commercial strategies, we see the dynamic potential of our young investments amounting 31 billion TL. Through our population, cost reduction possibilities, increasing We are witnessing an era in which technology and investments, we lead technology in Turkey and in countries accessibility and developing the entrepreneurial digitalization are in every area of life on a global scale. where we operate. Today, we offer products and services spirit as great opportunities. In our R&D activities, we While artificial intelligence, smart cloud systems and to individuals, companies and public institutions to aide maintain our commitment to sustainability, creativity technological innovations are reshaping our world them stand out in global competition. We are leading and efficiency principles. We continue our efforts to from our daily lives to government policies, we see the digital transformation of Turkey along with Target develop products, services and processes that take smart systems being developed that could not be 9.C “Significantly increase access to information and into account economic, environmental and social even imagined before. With our leading integrated communications technology and strive to provide impact, and aim developing sustainable production telecom company identity and competency we have universal and affordable access to the technologies. in technology sector in our country and in the world, Internet in least developed countries we offer digital solutions to strengthen our customers’ by 2020” of Sustainable Development As Turkcell, we continue our collaborations and R&D digital transformation, helping them adapt to the Goal 9 “Industries, Innovation and activities with full speed in line with our vision of being future. We are improving Turkcell brand by constantly Infrastructure”. a “technology producing and developing” company. researching global hardware and software technology We aim to steer the future with 1,263 R&D employees trends, developing the capacity and durability of our With our digital transformation journey, we create who works relentlessly to integrate innovative pre-eminent digital services and adding new features technological innovation strategies for our external and approach to our corporate culture. that will make our customers’ lives easier. internal stakeholders under the leadership of our strategy team by adopting an integrated management approach Adding on to our investments, we opened the doors with all our business units. We develop new digital of Turkey’s largest data center in October 2019, in products, services and solutions in interaction with the Ankara. We continue to increase our data storage We have continued our investments technological innovation ecosystem in line with Turkcell’s capacity with our environmentally friendly, green to offer value-added technologies long-term goals and focus areas. With our Turkcell building certified new data center with 12 thousand 2 to our society and country in over Quality Policy, we ensure the superior quality of our m of white space. We carry out our activities the past quarter century since our digital services. within the scope of Target 9.4 “By 2030, upgrade establishment. infrastructure and retrofit industries to make them As part of our R&D and innovation processes that are sustainable” of Sustainable Development Goal 9 at the core of our sustainable development and growth “Industry, Innovation and Infrastructure”. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 97 Technology leadership and digitalisation

We are proud to be a technology-oriented network As Turkcell Technology, we are in the Board of opportunity to work closely with decision makers provider and one of the Turkey’s largest R&D Directors of ITEA3 (International Technology Education in TÜBİTAK. In recent years, Turkcell Technology has organisations with our subsidiary Turkcell Technology Association) under Eureka (The European Audio- been increasing the number of project applications which employs 956 research engineers as of visual Observatory) and Celtic Next clusters. With on platforms with more competitive and selective 2019. We produce innovative solutions in domestic the responsibility our Board memberships bring, project ideas, especially in Horizon 2020 main program and international markets with our technological we provide SME’s and firms in our ecosystem the and subprograms, which have been granted direct expansions. We organize joint R&D projects, graduate opportunity access international platforms. The funding and high amounts of grants from the European and doctorate programs, trainings and conferences received for the projects we are involved under Eureka Commission. with selected universities to provide information are evaluated by competent authorities in TÜBİTAK- transfer in line with the needs arising within Turkcell TEYDEB (Scientific and Technological Research At the same time, we are working intensively to Technology. Council of Turkey Technology and Innovation Funding develop products with start-ups in techno parks Programs Directorate). In this way, we also have the to support products, services and technologies developed by start-ups. We also increase these start- ups communication and recognition by including them We collect innovative products and services developed with the engineering operations we carry out at in the European Union projects we are in. Turkcell Technology R&D center under the following groups:

• Mobile Marketing Solutions • Geographical Information Systems

• Roaming Solutions • IoT Solutions (Internet of Things) In 2019, 12 of the projects we

• Smart SIM Card Solutions • Voice Identification carried out with our national and international partners within our • Smart Cloud Platform and Solutions Developed on • AI (Artificial Intelligence), Big Data Analysis R&D operations have been granted the Platform • AR / VR (Augmented Reality / Virtual Reality) funding by R&D support institutions • Location Based Services and Platforms • 5G Infrastructure Projects such as the European Commission 2 • Value-Added Services Horizon 2020 Program, Celtic Next • Mobile Communication Solutions and TÜBİTAK. • Inter-Machine Communication Technologies Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 98 Technology leadership and digitalisation

• Today, the increase in the number of mobile • Spear: Smart Prognosis of Energy with Allocation In 2019, we invested 1,437,491 hours of engineering effort on communication system users is far beyond the of Resources: In Spear, we are collaborating projects carried out under 56 different frameworks. In the 2019 projections and the rapid increase in the amount of with the best experts and technological teams operating period, we made 12 new applications to TÜBİTAK and data users started to consume has started creating from Germany and Sweden in one of today’s 10 to the EU Commission Horizon 2020 Program. A total of 24 new infrastructure investments. In this regard, in 2019, most important technological issues: sustainable projects that we carried out in 2019 are supported by TÜBITAK. we conducted the University Cooperation Project to technology. We continue our R&D studies to both develop a new timing algorithm suitable for different make the platform available for users from different user requests and scenarios for 5G Voyager Mobile sectors and spread the use of systematic working Some of R&D projects that create value and stand out from our other activities with Communication Systems New Radio, in cooperation methods among teams. Within the scope of the the aim of breaking new grounds in the technological development both in our with Istanbul Technical University (ITU). project, we find the opportunity to exchange country and in the world; valuable outcomes and information for university- • As part of the University Collaboration Project for industry collaborations with universities and research Design and Development of Open-ID Connect Based institutes in addition to industrial companies such we designed Thanks to our wide frequency bands and the investments, we are among Next Generation Authentication Method, as Volvo, ÅF and EKS. With our contributions to a Common Password System that will work on few operators in the world that provide the fastest 4.5G service to customers the Spear Project, we support the Target 9.B of smartphones to be used in the authentication process with a 1.2 Gbps speed. In the 2019 operating period, we maintained our “Industry, Innovation and Infrastructure” goal, and of our mobile network operator customers to access preparations for 5G technology with local and international collaborations. the Target 17.16 of “Partnerships for the Goals” of various services in cooperation with Gebze Technical We shared our knowledge and experience with other industry participants the Sustainable Development Goals. on international and local platforms. We are aware of the leading role that University. 5G technology will have in the digital transformation of our country. 5G will • In the Blockchain Based Vehicle Information ease transition to Industry 4.0 and we continue our efforts Management System (BC-CAR) - Gebze Technical to ensure the most efficient use of 5G. Within the scope of University Cooperation Project, we are working Sustainable Development Goal 9 “Industry, Innovation and to develop a safe and easy-to-use information Infrastructure” Target 9.B, we are taking important steps to management system integrated with our Kopilot enable use of 5G in our country. product. We aim to offer the data sharing and communication model we developed in this project to the service of our customers in various IoT fields (agriculture, health etc.). Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 99 Technology leadership and digitalisation

• Turkey’s Automobile Joint Venture Group Inc. (TOGG) • Through SoMeDi - Social Media and Digital was established on June 25, 2018 as a part of Interaction Intelligence Applications Platform, Turkey’s Car Project under the coordination of we take the opportunity to offer our cloud-based Ministry of Industry and Technology and the Union solutions to a wider audience via social media and of Chambers and Commodity Exchanges of Turkey. digital interactions. We also improve our services to We aim to take part in important and potentially automatically identify needs of different types of promising areas such as electric and connected users and optimize the solutions offered accordingly. vehicles, smart cities and smart transportation through TOGG, which we are a founding partner • HumMingBird: Enhanced migration measures with a share of 19%. TOGG, aiming to develop new from a multi-dimensional perspective: generation electric cars with online connections and HumMingBird is our social value-oriented European to create a mobility ecosystem around these cars, Union Horizon 2020 project which was accepted in shared the design and engineering studies with the 2019. The aim of the project is to analyse and display public at Journey to Innovation Meeting in December models to understand and estimate of migration introducing C-Sedan and C-SUV models. Through flows and the events that trigger migration. our participation in the TOGG project, we contribute to Target 9.B within the scope of the You can find detailed information about our R&D 9th Goal: “Industry, Innovation and Infrastructure” activities on our Turkcell Technology website. and Target 17.17 of Sustainable Development Goal 17 “Partnerships for Goal”. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 100 Pre-eminent digital services

6.2 Pre-eminent digital services

By increasing our competitiveness with our human- of our 4.5G subscribers reached 11.5 GB in December. oriented activities and our high value-added products We have achieved a strong 17.7% growth in average From a technology-oriented network provider and services we offer in Turkey and abroad, we take revenue per mobile user (ARPU) (excluding machine- to a service-oriented experience provider on a more active role in international markets. We to-machine (M2M)) with increased data usage, as a We are carrying out many activities to gain experience in new business areas result of our strategy of switching to packages that represent the leadership in national and international and to transform into a service-oriented experience provider, from a technology- platforms with our individual digital services, techfin offer higher benefits and the increase in postpaid oriented network provider. With our expert researchers, we have developed or solutions and digital business services that add value customers. At the beginning of the year, we achieved are currently developing many services to address the needs of different customer to the lives of our customers. a record growth of 17.5% in the fixed individual fiber segments, diversifying our services by delivering many comprehensive products, ARPU, thanks to our renewed offers, our strategy services and infrastructures to our corporate and individual customers by our group In 2019, our customers’ interest in our distinctive mobile of switching to packages with higher benefits, and companies. Some of the projects we have worked in 2019 can be exemplified as: and fixed offers continued to grow. Thanks to our increasing rate of IPTV users. OneDesk, RTA, RTM, RTIM, Vending Machine, Retail Mode, Data Analytics, CrowLR, Kiraz, Corplex, BiP Emergency, Second number, BiP Multicloud solutions, TV Platform increased customer focus, we gained 1.5 million net With our distinctive mobile and fixed offers in our and Content Management Systems, Upcall Do Not Disturb Service and solutions postpaid mobile subscribers, the highest level in the core telecom business, we aim to make more people for the visually impaired, Paye Card, Social Cloud System, Fizy Smart Suggestion last 10 years. On the fixed side, our fiber customer accessible and gain one million net subscribers Solutions, Yaani Mail, Turkcell HBYS, Kopilot WIFI, Kopilot Filom, Gatekeeper, AI base increased by 99 thousand to a net 1.5 million, Platform, Fraud Fake Document Detection. every year for the next three years. While focusing while our customers using our IPTV service reached on postpaid subscribers in our mobile business, 720 thousand. On the other hand, Superbox, which we deliver internet services to more homes with was highly appreciated with the internet speeds close Superbox, which we can offer fiber-speed service to fiber in regions where we cannot reach with fiber over the mobile network. We carried out a speed test in the pilot Turkcell 5G infrastructure, reached 323 thousand subscribers with network with 5G supported mobile phones launched the strong demand from our customers. High demand We make a difference with our pre-eminent digital abroad. The world record was broken by reaching speeds for mobile data continued to increase in 2019 with the services in the public sector. We ensure that the above 2 Gbps in speed test carried out using a commercial expanding 4.5G subscriber base and the rising data Qualified Electronic Certificate produced by our Turkcell 5G smartphone on the Turkcell 5G infrastructure usage of these subscribers. The average use of data Public Certification Center is delivered to the end user via established at the Istanbul Turkcell Tepebaşı Plaza. of our subscribers reached 9 GB by increasing 53% in mobile. Qualified Electronic Certificate was put into use the last quarter of the year while the internet usage with the relevant Prime Ministry Circular. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 101 Techfin solutions

6.3 Techfin solutions call it techfin with our Paycell and Financell brands. Within Financell, our consumer financing business that the scope of our techfin services, where technology and facilitates our customers’ access to technological Fintech (Financial Technology) is the next generation financial services are combined, we continued to improve products, has extended its loans to approximately 5.1 financial industry that uses technology to improve our competencies and follow global trends in 2019. One million customers totalling up to 14.5 billion TL since financial services. Competing with traditional financial of these trends is the Super Apps where mobile payment its launch. Paycell’s total revenue increased by 35%, services with the technological power they have, systems and many different functions are combined. reaching 252 million TL within its plans. The number of Fintechs act with the philosophy of making the lives Paycell, our new generation payment platform, has an customers benefiting from the financial services during of its customers easier, all over the world. Fintechs, important potential in mobile payment field thanks to its 2019 has reached 7.3 million, and the Super App which which were first seen as the more technological wide range of services and solutions as well as Turkcell’s has continuously added new functions, has reached 5 version of traditional financial services in their early widespread sales network, strong customer base and million downloads. periods, today show that they have an effect far ease of access to technology resources. In addition beyond the initial estimations. Fintechs which increase to mobile payment service, by reflecting spending on This year we started to provide “digital transformation their impact with the widespread use of internet Turkcell invoice, we also facilitate our customers’ lives with financing” support through Financell to finance and mobile applications all over the world, and the investments they receive prove this. From sustainability services such as money transfer via Paycell, payment purchases of smart devices and other technological perspective, the Fintech sector provides many benefits services, wallet, topping up mobile line and public needs of our corporate customers. In this way, our to the digital world that transforms such as effective transportation card Istanbulkart. We also provide QR- corporate customers can get specially priced devices, time management, reduced resource usage and based payment experience and mobile POS solutions to financing limits and interest rates, while spending their monitoring data flow. We are progressing with member workplaces. instalments over time and taking advantage of flexible the Target 8.3 “Providing creative payment plans. and innovative solutions for As of the 2019 year- financial services” of Sustainable end, Paycell application Via Financell we are providing our services across Development Goal 8: “Decent Work has approximately 4.5 1,300 Turkcell stores, 2,092 DSN+ (Digital selling point) in and Economic Growth”. million 3-month active Turkey and through our digital sales channels. users and accepted as a payment instrument at 7 We are now delivering faster, easier and more reliable thousand member workplaces. We aim to become For detailed information about our Financell service, financial services for our individual and corporate Turkey’s largest payment platform with Paycell, and we can visit our Financell website. customers. We are one of the most ambitious players in rapidly increase number of users, as well as member Fintech as it’s called in the technology sector and as we workplaces. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 102 Being a digital solution partner

6.4 Being a digital solution partner

We are proud to have worked for 26 years to present our have in our superior infrastructure, technology investments and solutions responding to the needs of our customers and offer innovative products and services for our customers to make the qualified human resources, we continue to increase our service new applications that will improve the quality of life. We provide most of our communications and digital solutions by achieving quality, improve our products and services in line with the needs many digital services such as BiP, fizy, lifebox, Goller Cepte, many firsts in the sector. With the same determination we and expectations of our customers. We pay great care to find Turkcell TV+, Yaani, Upcall and Beehive following this purpose.

Application 2019 Application data Explanation of application

Turkey’s communication and life platform BiP was downloaded by 42 million people worldwide BiP usage increased 2.5 times as of the end of 2019 and remained the leader in Turkish market by being the most downloaded compared to last year, with 90 application in Turkey. With the cooperation of seven operators in the global market, BiP’s billion messaging, 2.5 billion minutes penetration expanded to 37 countries. BiP differentiates itself from global players with features of calls and 11.1 million 3-month such as lost messaging, group video calls up to 10 people, fast and secure money transfer such active users as of the last quarter of as easy as sending messages and My Second Number in BiP, which allows using two phone 2019. numbers on one phone.

While the number of songs listened fizy is one of Turkey’s most popular and most preferred digital music platform with more than increased by 10% in 2019 compared 35 million content and about 3.5 million 3-month active users. In 2019, fizy created a more to last year, the number of fizy personalised experience with suggestions list and continued to meet its users demands with Premium users broke a record by special lists and personal suggestion lists that are enriched with developing content archive. exceeding 600 thousand.

The number of users backing up The number of files stored in lifebox, which provides the opportunity to safely store and share their contacts in lifebox exceeded photos, videos, music and documents, has exceeded 6.4 billion in 2019. Lifebox now supports 2.7 million in 2019, the number of French language which was achieved in cooperation with Digicell to already existing Turkish, 3-month active users increased to English, Arabic, German, Russian, Ukrainian, Romanian, Spanish and Albanian languages. Also, 3.3 million as of the fourth quarter of lifebox was added a feature to back up music lists from Spotify in 2019. 2019. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 103 Being a digital solution partner

With the start of 2019-2020 Turkish Super League, 3-month active users With its renewed infrastructure, GollerCepte now offers faster service in 2019. In addition, of GollerCepte, showed a 38% GollerCepte succeeded in transforming the traffic management into a sustainable revenue stream increase compared to the same with the freemium model with advertising. period last year, reaching 4 million.

In 2019, the daily television viewing We provide bundle packages in which we offer television, fiber internet and fixed speech needs time of TV+ customers from home, together, where customers can access the rich content and superior technical features that mobile, computer and tablet provide ease of use of TV+. In addition, we continued to enrich our national and local channel increased to 96 minutes, and selection by increasing the number of channels broadcasting in HD and UHD format. By this, TV+ 3-month active users reached 3.6 became the platform with most UHD channels in Turkey. million.

In 2019, Yaani reached 9.7 million Turkey’s Mobile Browser and Search Engine Yaani, became the most downloaded free app downloads. As of the 4th quarter of in both App Store and Google Play application in a short period of only two days after it was 2019, the number of 3-month users added to the app market. exceeded 3.7 million.

With UpCall, which enriches and facilitates the calling experience of customers with many Our UpCall application is available different features, when a number that is not registered in the phonebook calls, who is calling for the users in the Turkish Republic can be seen on screen while the phone is ringing, calls can be made fun by adding pictures and of Northern Cyprus as of the last stickers when initiating a call. Also, with the Group Call feature, conference calls up to 7 people quarter of 2019. can be made.

In 2019, 39 of 73 projects selected through the Turkcell Beehive As of the end of 2019, over 6 thousand project applications were made to Beehive, which gave platform successfully completed the project owners the chance to reach the financial resources they need without the investment their campaigns and collected more of a particular person or institution to develop the products they work on. than 5.6 million TL in funds. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 104 Being a digital solution partner

We participated in the Mobile World Congress with our digital services

With dozens of digital services such as BiP, fizy, TV+, Digital Operator, Dergilik, lifebox, Yaani, UpCall, Akademi and Kopilot, showed ourselves on the international platform at the Mobile World Congress held in Barcelona, ​​Spain. By successfully combining OTT (Over-the-top media services) and telecom services and bringing a new breath to telecom industry, our group company lifecell Ventures announced that our digital services will be used in 37 different countries including Turkey, Belarus, Ukraine, Turkish Republic of Northern Cyprus, Moldovia, Germany, Albania with ALBtelecom and Caribbean Islands with Digicell. In Global Mobile Awards (GLOMO Awards) held in Barcelona we received Industry Leadership Award in the “Technology for Women” and we were the only telecommunications company representing Turkey in the finals. In addition, we were deemed worthy of the “Pioneering Award” by GSMA (World Mobile Operators Association) for our work in IoT (Internet of things) security.

You can find the details of our digital services launched in 2019, and the services and products we provide to individual and corporate customers in the 2019 Turkcell Annual Report. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 105 Digital customer experience

6.5 Digital customer experience expenses. Throughout the year, with the help of our analysis tools, we made more focused planning and With our services and solutions that add value to human We improved our network-related achieved successful results. At the Platinum Black life, we distinctly continued our leadership as the most customer complaint rates by 20% launch, we analysed the media consumption habits of our Platinum customers and made our TV, outdoor, recommended operator by our customers. In order to compared to the previous year. provide uninterrupted and high-quality services 24/7, we digital and magazine plans accordingly. We measured develop infrastructure monitoring methods with digital the effect of ads on the Google search network not technologies. As Turkcell, we continue contributing to the only on online platforms but also on store visits. We digitalization of our customers with our human-oriented achieved a three-fold increase in ROAS (return on communication philosophy that we internalise as a We opened mobile customer complaints to all our ads spending) by starting to use the Smart Shopping mission. customers through Digital Operator (DO) application, advertising feature for the first time. conveyed the complaints directly to the operation In 2019, we made turkcell.com.tr more dynamic as teams, and shortened the resolution time. In the As the leading integrated telecom company, we being one of our main digital communication channels event of mobile outages that caused customer increase our digital customer experience through with our customers visited by an average of 27 million complaints, we activated the IVR Announcement on social media. We increased our sales rates in people every month, which meets the needs of a district basis and provided quick notifications to device and accessory categories by making direct customers 24/7 and acts like the closest Turkcell Store to our customers. With our digital operator vision, we sales through social media channels. We made them. improved the predicted downtime announcement the communication of events such as the Mobile in case of interruptions in the fixed network, thereby World Congress organized by the GSMA, where In order to utilize the time that our customers spend on preventing uncertainty regarding downtime. In the we tell the world about our digital transformation turkcell.com.tr in the most efficient way and to reach complaints of our corporate customers, we developed story, via social media and digital channels, and them when they are active, we focused on hourly as an automation that automatically detects problems enabled our customers to live the entire experience well as night campaigns. While creating a journey where in services and makes the first user independent digitally. Thanks to the effective use of media, our customers can reflect their purchases advantageously to controls. We continue our developments in the field of hashtags #TeknolojiZirvesi and #GNÇTalks where their bills with multi-payment set-ups, we launched our automation with Zero Touch (Plug and Play) activation. we communicate our events were in the first place new website where they can complete the purchasing in Turkish agenda and included on global agenda. process over a short time of around three minutes and By analysing our data, we tried to better understand find everything they are looking for with ease. customer behaviour and optimized our marketing Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 106 Digital customer experience

We analyse the metrics such as millions of alarms, Through our contribution to the customer experience to 27%, and data upload speed up to 60% with TCP performance data, customer complaints that arise by using the benefits of virtualization with the Turkcell (Transmission Control Protocol Optimization). With its during the use of our services with artificial intelligence data optimization platform, we received the “Best 4 Tbps capacity, Turkcell data optimization platform establishing cause-effect relationships, and even NFV/SDN Business Case” award by leaving many created a difference with being the largest virtual identify problems before a complaint occurs. In strong candidates behind in the “Network Virtualization data optimization solution running on open stack. addition, we achieve efficiency by minimizing human & SDN Europe” event in Berlin. This solution improves The savings achieved by the flexibility provided by effort thanks to automation solutions we have the customer internet experience by accelerating page virtualization, while preserving the existing infrastructure, developed. loading up times up to 35%, data download speed up were deemed worthy of admiration by the juries.

With our Customer Focused Fault Management application, we became the 1st in the 2019 Glotel Awards finals held in London in November 2019. With the “Base Station Service Interruption Estimation” project developed by our engineers and local AI capabilities, possible problems in the base stations cause communication problems are predicted in advance and field interruptions are prevented. With this project, we reached the finals in the 2019 Loyalty Awards competition. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 107 Digital business culture transformation at Turkcell

6.6 Digital business culture transformation at Under the scope of digitalization, we made a rapid Digital Business Transformation Training, which was Turkcell entry to 2019 with our online sales channels and took given to all executive employees in 2017 and 2018, was steps to provide direction to the Turkish e-commerce given as an online training in four different modules to Turkcell’s digital transformation started with the sector. Our channel, which focuses its investments all Turkcell employees in 2019. This year, we focused on vision of becoming a “Digital Operator”. As a digital on new communication and sales models, reflected Customer Focus, Digital Innovation, Digital Demolition operator, we develop our digital product and service its steady growth in its visit figures reaching more and Digital Business Transformation in the Digital World. portfolio according to the needs of our customers than 1 million daily visits in 2019. Maintaining the digital and we have pioneered in digitalising economies communication strategy initiated in 2018, we continued Within the scope of the digital transformation vision in the markets where we operate. Today, we have 360-degree communications with campaigns such as in our workflows related to Laws and Regulations, we reorganized our organization not only to digitalise Yellow Days and Opportunity Garage and increased have put our Turkcell Mobile Signature competence our product and service portfolio, but also to coordination with all our sales channels. By focusing into operation, which provides great convenience for digitalise our sales channels. We digitalised our sales on a seamless and perfect customer experience in our our signature processes by working integrated with our and after-sales processes and started to create online sales channel, we created flexible options such contract process, and thus achieving a 79% increase customer experience through digital channels. Digital as product delivery in 24 hours, alternative payment in speed in-house signing times. In 2019, we started transformation is not only for our external customers, options for purchases, and store-pick up option. to execute our contracts with our business partners, we developed digitalisation projects which will dealers and suppliers through Turkcell Mobile Signature. increase efficiency in our internal processes with In this way, we transfer our entire contracting process our internal customers. While doing these, we also (including stamp duty transactions) to end-to-end continue to invest in our analytical capabilities and With our Kiosk Transformation digital environment and achieve a significant reduction information technology solutions to support digital in internal paper consumption as well as shipping costs. (Support Line) project, developed transformation. As our transformation has progressed great lengths both in environmental and economical in accordance with Turkcell’s means, we will also reinforce our contribution to social digitalisation strategies, we sustainability moving forward. eliminated the need for a physical Digital Business Transformation Training, which was given kiosk (Support Line) and offered to all executive employees in 2017 and 2018, was given as digital solutions in over 1,300 stores. an online training in four different modules to all Turkcell employees in 2019. Pre-eminent digital services & innovation Turkcell Sustainability Report 2019 | 108 Patents

6.7 Patents

We are happy to be one of the leaders in the race and to add value to our country with patent Patents 2017 2018 2019 applications and ownership processes, which Number of Turkcell patent applications 14 15 15 are indicators of measurable performance in the technology sector, products, services and Number of patents received by Turkcell 12 14 15 infrastructure, especially for Turkcell Technology. With Number of Turkcell Technology patent applications 353 453 511 the aim of preventing our products, services and infrastructures in national and international markets Number of patents received by Turkcell Technology 312 379 521 from being quickly imitated or hindered by property rights owned by other companies, we launched the patent system in 2011 to expand the patent culture and The prominent projects we applied for a patent in 2019; increase awareness within our company. • We completed the first installation of our Portable Solar Infrastructure”, we will continue our works in Target 9.4, We aim to access patent research channels through Field project in Antalya. We delivered Turkcell quality to our offering environmentally friendly technological products. the patent system, enrich our innovation ideas and customers on the Kaş-Kalkan tourism road and the world increase the potential for patent commercialization. famous Kaputaş Beach. We offer the Portable Solar Field • We developed automation software that ensures the quality We are aware that conducting new studies on solution in Beytabı Plateau in Ordu where access to energy and continuity of service with the control of security definitions vacant issues that do not have patent applications, sources is limited, in Ericek Pond in Gürsu district in Bursa, and and applied for a patent for our software. especially in the fields we operate, is highly strategic in Artvin Borçka Beyazsu Plateau, which is one of the plateaus for becoming a global company. of Karçal Mountain at an altitude of 3 thousand 415 meters. • We developed a unique smart system which automatically Thanks to the Portable Solar Field we are the detects the density in the customer lines and triggers the only operator providing service in this area and capacity increase process, and applied for a patent for our we have officially applied for a patent for our system. new product. Within the scope of Sustainable Development Goal 9 “Industry, Innovation and Effective financial management

25.1 billion TL Contribution to the revenue and Annual revenue “Sustainability achievement of the 3.2 billion TL growth target Linked Loan” of 50 Sustainable Development net profit based between 13% million Euros with a Goals by being one of the on consolidated and 16% by 2022 three-year term founding members of the financials UNGC CFO Task Force Effective financial management Turkcell Sustainability Report 2019 | 110 Economic performance

We consider fulfilling our economic responsibility to improve control over companies’ financial reporting and towards our investors, increasing financial benefits by also supports effective corporate governance applications. We ensured the continuity of our operations during using our resources more efficiently, in short, having As Turkcell, we create positive economic, social and the pandemic originating from COVID-19, emerged in an effective financial management among our the first quarter of 2020. We increased our share and material topics. We embrace fulfilling our economic environmental impact not only through our services and bond repurchase limits to 450 million TL in order to protect responsibilities towards our employees, customers and products, but also with our financial transactions. We our share and bond investors from market effects. other key stakeholders on time and with the highest contribute to the development of capital markets of efficacy while maintaining our strong and agile structure Turkey with our stock transactions, bond investments and exported credits. We perform all our financial transactions against the risks and uncertainties we face. In 2019, we We have determined our main priorities in our business in accordance with the CMB and SEC regulations. continued our effective financial management in a way model as right pricing, effective balance sheet risk that covers all the activities we carry out in a strategic We established a transparent and effective management, strong free cash flow creation and sector for our country’s economy. communication with our stakeholders by publishing our efficient capital management in order to maximize our economic performance. Accurate determination of Turkcell applies the rule set (“bonding mechanism”) audit reports, press releases, investor presentations and our priorities has enabled us to maintain our agility and originating from both domestic and foreign capital detailed financial statements including our financial and grow strong despite the challenging market conditions, markets legislation. Accordingly, within an autonomous operational performance quarterly on our website. In apart from maintaining our profitability and creating organizational structure which reports its activities to the addition, we present our financial management approach value for our shareholders. Board of Directors, applicable capital markets regulations to our stakeholders through our Annual Report and are handled in a holistic manner. Turkcell’s adoption of the Sustainability Report on an annual basis. General corporate management dynamics arising from its unique Sales and Sales Cost of sales administrative and singular position in the capital markets within its internal 7.1 Economic performance marketing 12 billion TL expenses organizational structure in a permanent and optimal way 25.1 billion TL expenses 0.8 billion TL shows its commitment in effective corporate processes to As Turkcell Finance Management, we maintained our solid 1.6 billion TL create long-term and sustainable value. In Turkcell’s long- balance sheet structure and profitability by simultaneous term, sustainable corporate journey is based on the Public and on-the-spot actions we took, despite the significantly Company Accounting Reform and Investor Protection Act, slowed global growth as well as the uncertainties also known as the Sarbanes-Oxley (“SOX”) Act, which aims dominating the financial markets as a result of trade wars in 2019. Our main performance indicators disclosed in the 2019 CMB Report include: Effective financial management Turkcell Sustainability Report 2019 | 111 Economic performance

In accordance with conditions in capital markets, we Sonera Holding B.V., another shareholder of Fintur. Thus, manage our cash projections, future prospects and As a result of the transfer of Fintur we improved our leverage ratio and strengthened our investment plans with the “Turkcell Profit Distribution shares, we generated a profit of 772 liquidity. Policy”, which aims to secure at least 50% of our million TL and provided a cash inflow company’s distributable net profit in cash. We undertook important steps in 2019 to improve of 2.2 billion TL to our balance sheet. the digital maturity of the Turkcell Finance function We have been included in the BIST (Borsa İstanbul) by integrating technology and digital applications Sustainability Index, one of the biggest initiatives in the field into our business processes. As a result of this nationally and internationally under the roof of “Asset of financial sustainability in our country, since its inception transformation, we aim to reduce the time allocated Light” approach while structuring our financial accounts. in 2014. Once again, we met the criteria for being included to operational processes and further focus on value- By following this strategy, Fintur Holdings B.V. (“Fintur”) in in the BIST Sustainability Index in 2019. In addition, we are added analysis and decision support activities. which we held 41.45% stake, have been transferred to within the scope of MSCI ESG (Morgan Stanley Capital International - Environmental, Social and Governance - Environmental Social and Managerial) Index, which is one With our confidence in our strong economic We have the potential to automate 40% of all of the leading sustainability performance indices in the structure, we shared our three-year 2020- our financial processes with robotic automation world, and we maintained our MSCI ESG index score at 2022 period goals and strategies with our key technologies. The detection phase, which is the level A, which corresponds to the third best score. We stakeholders via meetings we held in London first phase of our work, was completed in 2019 by continue our efforts to increase this score in the upcoming and later in Istanbul. In this three-year period, we 70%. We will implement 30% of our determinations periods. FTSE (Financial Times Stock Exchange - Financial aim to realize 13-16% annual income growth, 39- in the second phase of the project with nearly 200 Times Stock Exchange), an independent organization in 42% EBITDA margin and 18-21% EBIT margin. We development suggestions to be implemented with partnership with the London Stock Exchange and Financial expect the ratio of our operational investment the help of Robotic Process Automation. Times, includes companies in FTSE4Good Emerging expenditures to sales to be between 16% and Markets Index by measuring their ESG performance. We 18%. Thus, we take into are proud to be the only Turkish telecommunications account the requirements for We present detailed financial and operational company in FTSE4Good Emerging Markets Index. Target 8.2 within Sustainable disclosures of Turkcell Group to the attention of Development Goal 8 “Decent our stakeholders in the Operational and financial We put our new digital efficiency-focused strategy into Work and Economic Growth”. indicators section of our report. practice, which enables our physical assets to grow Effective financial management Turkcell Sustainability Report 2019 | 112 Financial risk management / Access to long-term and sustainable financing

7.2 Financial risk management 7.3 Access to long-term and sustainable financing

As a company in the telecommunications and technology industry that serves millions of customers, we We plan our investments in accordance with sustainability principles to keep the value we create face with a wide range of macroeconomic and country-based financial risks. We manage our risks with our main stakeholders at the highest level and shape our financing options in this direction. effectively through regular information sharing with other stakeholders in the industry, in addition to our In March 2019, we signed a 10-year loan agreement of 150 million USD, guaranteed by the efficiency-oriented diversified balance sheet and financial resources. Swedish Export Credit Corporation. With this long-term loan, we will strengthen our infrastructure spending and further strengthen our services. We consider another important result of obtaining We took proactive actions in 2019 aimed at hedging against fluctuations in financial markets and this loan as the presence of trust in Turkcell and our country in a period with such high financial implemented the right product choices with the right timing despite the increasing costs. Making use volatility and uncertainties. of low inflation rate in the last quarter of 2019 and interest rate cuts by the Central Bank of the Republic Thanks to our sustainability practices, we created new and reliable financing options for our of Turkey (CBRT), we protected our position against long-term risks. We attached importance to use company. In May 2019, we received a 3-year “Sustainability Linked Loan” amounting 50 million the local currency while making payments to our suppliers. Thus, we maintained our robust market Euros. As we achieve our sustainability goals set out in the agreement, we will have the chance presence by strengthening our foreign exchange transactions and position. to reduce our borrowing costs and achieve our goals to become a more sustainable company.

Apart from financial diversification, access to accurate information also plays a crucial role in reducing financial risks. We launched the Blockchain-based “Inter-Operator Blacklist” system and shared the list of customers with overdue debts in May. By enabling the share of information with this system, which is We were awarded with a total of 6 awards at Bonds & Loans Awards Turkey in 2019 used by many operators, we helped all operators to reduce their customer-related risks. with our loan agreements. We joined the CFO Task Force (Chief Financial Officer Taskforce) initiated by the United Nations Global Compact (UNGC) as a founding We try to keep the negative effects of global crises on our company under control with detailed member and the first and only organization participating from Turkey. While contributing to the achievement of the Sustainable Development Goals with other leading analyses and mega trend follow-ups. Climate change creates various economic risks and opportunities companies in the world through this Task Force, we will continue to in the telecommunications sector as in all sectors. In order to reduce our climate-related risks, we draw the principles and sustainable roadmap of sustainable corporate increased our renewable energy investments and we set ourselves a goal of becoming carbon neutral finance. With our cooperation in the CFO Task Force, we serve by 2050. Target 17.16 of Sustainable Development Goal 17 “Partnerships for Goals”. You can find the details of our efforts to reduce our risks related to climate change in Our interaction with the environment section. Effective and secure content management

Our Turkcell Cyber Defence Center team, has been Contribution to “Leadership Award” selected as Over studies on artificial the most 1,100 and “Internet of Things customers in the applications intelligence principles mature security operation 1,667 Security Champion” field of Cyber to with the World center team in the global Cyber Camp award to our IoT Security Economic Forum telecommunications industry applications and UNICEF Effective and secure content management Turkcell Sustainability Report 2019 | 114 Data privacy and security

With the rapid digitalization of institutions, services 8.1 Data privacy and security involving personal data and products, both organizations and individuals processing with “privacy With the integrate more into digital processes and are exposed We carry out our activities without compromising the by design” principle and ‘Turkey’s data to more digital content. While digitalization offers information security of our individual, corporate and a privacy and people- should remain many opportunities and chance to become more fixed customers. We manage our customers’ data oriented approach. We in Turkey’ efficient, it also brings new risks and threats in terms of in accordance with the Personal Data Protection Act also take necessary data privacy and security. In this regard, while taking (KVKK) and the Turkcell Privacy Policy. We take the technical and administrative vision, we store advantage of our superior digital services, we place relevant technical and administrative measures, using measures by performing our customers’ our customers’ satisfaction and security among our our technological infrastructure facilities to ensure that personal data impact data in Turkey’s priorities. We aim to protect our customers from the personal data is securely stored and lawfully processed. analysis. We provide training largest data negative impacts of digitalization and to maximize the In addition, we have an Information Security Policy to our employees to comply with regulations and consider center, Ankara efficiency achieved in technological developments with in order to ensure that Information Security risks are privacy issues during product and process designs. As part Turkcell Data managed, and information security is at an adequate of compliance with the legislation we are subject to and our activities. Center. Our level. considering good practices, we are redesigning the current As Turkcell, we strengthen our cyber security systems security measures and violation reporting processes. investments against cyber-attacks and leaks to protect both our We give importance to privacy of personal data and in this area own operations and the institutions we provide services closely follow domestic and international regulations, Since Turkcell shares are traded in both Turkey and the will exceed to. Thus, while protecting the data of our customers, good practices and legal requirements regarding USA, we carry out our data management operations 2 billion TL we also prevent service interruptions. In addition, as personal data management. We revise our organizational in accordance with the legal requirements of both with our data a leading integrated telecom company serving in an structure with a personal data privacy focused approach countries. We report our non-compliance with laws center in Çorlu, industry subjected to intense regulations, we apply the and assign Data Protection Officers. and voluntary regulations in the “Corporate Governance which will be highest standards and policies to protect our customers’ Principles Compliance Report” of our Annual Report completed in data. We actively work to protect our customers from In order to sustain compliance with personal data and in regular reports to the SEC (US Securities and unsafe and harmful content on the internet and to regulations, we carried out “Personal Data Compliance Exchange Commission). 2020. increase technology literacy. Program” which includes both Turkcell and its subsidiaries. We prepared and implemented policies and procedures You can access the most recent version of our regarding personal data management as part of this statement in the Investor relations section of our Program. We design all our products and processes website. Effective and secure content management Turkcell Sustainability Report 2019 | 115 Cyber security

Due to the increasing importance of cyber 8.2 Cyber security security issues and limited human resources in this field, as Turkcell we organize cyber security The risks and dangers institutions face transforms as has earned “FIRST” certificate making us the only training programs. Cyber Camp program, their way of doing business change. Today, institutions company in Turkey to earn the certificate. which aims to educate young people and are rapidly digitizing and therefore cyber security risks raise awareness about cyber security, received are becoming more relevant both in terms of their We use our competencies in cyber security not only 1,667 applications from talented young people. impact and frequency. As a company positioning itself via in-house applications, but also with solutions we Four of these talented young people joined at the core of digital transformation, we manage offer to Domestic and National Cyber Security our Productive Turkcell Family full time after In 2019, the cybersecurity issues with great seriousness, and products and services with other companies. Remote successfully completing a long and challenging number of remain among Turkey’s leading institutions with our Cyber Attack Monitoring and Case Analysis SOC, training process and eliminations. Thus, we our Cyber efforts in this area. Having ISO 20000 Information different security test services including penetration contribute to the Targets of the Security Technologies Service Management System and ISO tests, Identity and Access Management consultancy Sustainable Development Goal 27001 Information Security Management System service, Cyber Threat Intelligence portal BOZOK are customers “Decent Work and Economic certificates is an indication of the high standards we some examples to our cyber security services. exceeded Growth”, 8.3, 8.5 and 8.6. apply in this field. In addition, Turkcell Cyber Defence 1,100. Center (CDC) and Security Operations Center (SOC)

Another system that becomes important with With more effective and sustainable solutions, Our Turkcell CDC team won the title of digitalisation and enables creating efficient and we offer with our IoT applications, we help the most mature SOC (Security Operation integrated solutions is Internet of Things (IoT). We achieving the Target 9.4 of the “Industry, Center) team in telecommunications integrate our IoT applications into many services Innovation and Infrastructure” Sustainable such as Turkcell Filiz, Traffic Control Systems, Development Goal. industry worldwide, by receiving 3.2 Smart Water Meter, Smart Waste. We have points out of 4 from the audit conducted been awarded “Leadership Award” and “Internet under the Maturity Level Assessment by of Things Security Champion” awards by World the Micro Focus Global SIOC Team. Mobile Operators Association (GSMA) for our IoT applications. Effective and secure content management Turkcell Sustainability Report 2019 | 116 Responsible content management

8.3 Responsible content management

Internet and digital solutions undoubtedly provide ease Besides our Secure Internet Service, we have In addition to our efforts for a safer internet, we also to our lives, while also making us clear targets against responsible content management tools embedded offer packages to children aged between 8 and14 which risks such as fraud, racism, terrorism and cyberbullying. in Turkey’s Mobile Browser and Search Engine supports safer and responsible use with “Lifecell My As Turkcell, we carry out many operations with our Yaani. The inappropriate content score of searches First Line”. With the My Child is Safe application, we superior digital services to minimize the risks arising are calculated in Yaani which reached 9.7 million enable parents of children aged between 7 and 14 to from digital content that our society is exposed to. downloads in 2019. We protect our users against manage their children’s’ calls and prevent them from As part of these operations, we adopt a responsible inappropriate content according to inappropriate talking strangers. Also, in case of an earthquake, we content approach that differs according to the target content score with different filtering systems based send the child’s location to the parent via SMS in order to audiences, creating different solutions for adults, on the Machine Learning. Our inappropriate content ensure the safety of the child. institutions, the elderly, children and young people. score calculation system learns and improves with machine learning as more searches are made. Since Internet has a decentralized structure, it has many useful and instructive content as well as content We are aware that the internet is a very powerful such as gambling, drugs, prostitution, obscenity, learning tool. When preparing our services, we violence, terrorism, fraud, racism and malware. We acknowledge that especially students are using the have been providing Secure Internet Service since internet and technology with efficiency and capacity 2011 to protect our customers from such harmful that sometimes surprise adults. Unfortunately, during content. With Secure Internet Service, which is a this learning and development, students sometimes completely free, optional, transparent and easy-to-use encounter virtual bullying, privacy problems, and may service, we aim to ensure the security of all internet experience difficulties when communicating with users and take better advantage of the opportunities their families. To overcome these problems, we have of the digital age. Our Secure Internet Service has developed our Digital Intelligence Project. two profiles: Family and Child. The criteria of these profiles are determined by a Board of Academics You can find more information about our DQ Digital who are experts in the fields of psychology, pedagogy, Intelligence Project in the “Creating social value with sociology and law. stakeholders” section of our report. Effective and secure content management Turkcell Sustainability Report 2019 | 117 Responsible content management

Another important part of digital content You can find details about our technology literacy Development Goal 17 “Partnerships for Goals”, such management for us is technology literacy. We can projects in the “Creating social value with as 17.14, 17.15 and 17.17. achieve the safest technologies by raising awareness stakeholders” section of our report. of individuals who use them. In this context, we are By launching Artificial Intelligence Principles in the working to develop various technology literacy Artificial Intelligence applications integrate to our life beginning of 2020, we became the first company in programs suitable for everyone. We with an unprecedented speed and we come across Turkey which launched artificial intelligence principles. also contribute directly with our AI applications during our daily internet use even if we You can find more detailed information regarding work to the Targets of “Quality are not aware of it. We are working to reduce the Artificial Intelligence Principles in our website. Education”, which is among the negative effects of artificial intelligence technologies Sustainable Development Goals. on human life, thus increasing the efficiency we receive from new technologies. We have participated We have committed ourselves With trainings on Microsoft SQL Server, Data into the efforts by the World Economic Forum (WEF) Literacy, Data Science and Introduction to Artificial aimed at creating a framework for the responsible to use artificial intelligence Intelligence and Python in our Developers of the use of artificial intelligence-based facial recognition responsibly as part of our Future Platform, we reached 6 million users from 100 technologies. In addition, we took part in workshops operations including responsible different countries. organized by the United Nations International content management with the 7 Children’s Emergency Fund (UNICEF) to determine the principles we have determined. With the Women Developers of the Future effects of artificial intelligence use on children and By launching Artificial Intelligence Platform, 640 women completed our trainings and create international principles regarding children’s Principles in the beginning of 2020, 235 developed mobile applications. 100 women who rights in order to support responsible use. we became the first company in completed the training successfully also had the opportunity to work remotely as test experts. We have contributed to the development of coherent Turkey which launched artificial policies by sharing knowledge and experience intelligence principles. In Children Developing the Future project, targeting by participating at international level stakeholder the 7-18 age group, we provide children with the communication through our work with the World opportunity to learn coding through Scratch and App Economic Forum and UNICEF. With our work, we Inventor trainings. have supported many Targets of the Sustainable Effective and secure content management Turkcell Sustainability Report 2019 | 118 Responsible content management

Turkcell artificial intelligence principles

We are transparent As Turkcell, We aim to ensure that the criterion, processes and We are human and environment centric we review technologies have predictable and explainable results. We develop our artificial intelligence solutions with a deep respect for and revise our human dignity, fundamental rights and freedoms while contributing to principles as the the UN Sustainable Development Goals with the purpose of making the technology and world a better place to live. We are security-based the products are We aim to prevent the misuse of our artificial intelligence solutions – we dynamic and prioritise the identification of possible risks by subjecting our solutions to We are professionally responsible safety tests. evolving. In this We always care about the contribution of our artificial intelligence solutions to social sense, we use welfare and common good. We reveal who will be responsible for the developed our continuous technology. We design it to be under human control and supervision and is receptive We are fair experience to the feedback of interested parties. We do not discriminate and act in an inclusive manner as a medium within the framework of the principle of equality. for further We respect data privacy development of We take the necessary measures to protect personal data. We AI technology We share and collaborate for a better future abide by the Turkcell Privacy Policy regarding the processing of in an ethical personal data. We share our experiences on AI technologies for a better future and responsible and are always excited to cooperate. manner. Value-oriented, responsible supply chain

Cooperation with 6 93% start-up companies 27.2 million TL 135,000 TL financial savings domestic from 3 different annual saving by and resource use reduction supplier Techno parks in choosing locally in field rental contracts by ratio Istanbul, Ankara and supplied products Biometric Signature Project Denizli Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 120

Over the recent years, an increasing number of companies have started to integrate competitive and While carrying out our operations, we maintain a continuous beneficial practices on supply chain sustainability communication with our suppliers. Via Turkcell Supplier Portal, into their working methods in order to effectively which was renewed in April 2019 and gained a more user-friendly manage the impacts of their business models. Starting interface, we inform our suppliers about our environmental, with the materials we use, we evaluate every single economic and social policies they need to comply with. We stage in our supply chain management including the communicate the importance of complying with the policies we activities and practices of each company, in terms of set in our purchasing processes and ensure the sustainability of our sustainability. We classify our supply chain to include supply chain by applying penal sanctions when necessary. information, material, financial and labour resources of our Code of Ethics published on Turkcell Supplier Portal and and address each resource management category Our prominent ethical supplier obligation is our principle of not accepted by our suppliers, we expect our suppliers to conduct all with a sustainability perspective. We restructure our employing child labour at any stage of our value chain. With employee-employer relations with respect to employee rights. main business processes, logistics and technologies with a specific provision under the Framework Agreement we sign a holistic approach with the support of our suppliers with our suppliers, we openly state that child labour should not We aim to establish a transparent, value-added oriented, flexible to ensure that our national and international supply be employed. We also comply with legal obligations and forbid and collaborative business partnership with our suppliers. With our network is as agile, flexible and sustainable as our direct employing any child who has not completed his or her compulsory ethical supplier practises, we aim to contribute Targets 8.7 and operations. education and is under the age of 15 (within the scope of the 8.8, as well as 16.5 and 16.6 under Sustainable Development International Labour Organization (“ILO” Convention No.138)), Goals covering “Decent Work Following the leadership of our Supply Chain unless a higher age limit is stated in local law, in both Turkcell and Economic Growth” and Management Team and in line with the constantly and our suppliers. We also apply and strictly audit the rule of not “Peace, Justice and Powerful evolving, changing world conditions, we not only employing employees under the age of 18 in hazardous jobs and Institutions”. provide the best and highest quality service, but also night jobs within Turkcell and our suppliers. plan and maintain our procurement activities by You can access more information about our suppliers’ obligations taking into account social responsibility, environmental Another ethical supplier obligation we impose includes not covering harassment, bribery, compensation, working hours, awareness and respect for employee rights. As a allowing forced labour at Turkcell and our supplier companies. discrimination, health, safety and environment via Turkcell Supplier requirement of joint responsibility, we expect our This requirement also applies to employment in return of collecting Portal. suppliers to spread this awareness around their high-interest loan or other forms of forced labour. Within the scope network and operate with the same responsibility. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 121

As we offer services with a direct touch on people, suppliers by regular assessment and audits and report aim of breaking dependence on a limited number of possible disruptions may have direct negative impact the results to the Senior Management. In 2019, no suppliers in radio access networks. We are in close on vital needs of our society such as communication, case was reported in which our supply chain or our contact with O-RAN manufacturers and we aim to health and security. The products or services offered to suppliers had or potentially could have had a negative test their solutions in our network. In this context, we our customers by our suppliers are therefore of great environmental or social impact. have also participated in an R&D project on open importance. We choose all the suppliers we work networks where international operators including with on the basis of mutual trust along with criteria We evaluate the performance of our suppliers Netsia, Telefonica and KDDI took part in. including quality-price balance, previous performance, in accordance with key performance indicators market conditions and references. We prioritize defined by our purchasing teams. Based on these supplier candidates, who are conscious of conserving key performance indicators, purchasing targets are ecological balance, possess quality management and defined by purchasing managers of our respective We protect our suppliers. As Turkcell Family, we attach information security management certificates, and group companies and reviewed twice a year under importance to transparency and reliability when choosing carry out social responsibility projects, along with other the leadership of our purchasing management team. our suppliers. basic criteria. We share the initiatives and strategies of Turkcell We protect our suppliers. As Turkcell Family, we with our suppliers through regular meetings such We build our Supply Chain Management Sustainability attach importance to transparency and reliability as Supplier Workshops, Supplier Days, Supplier Axis Strategy as part of managing our environmental, when choosing our suppliers. We guarantee that our Innovation. We take aboard the innovative ideas, social and economic impact and promoting good suppliers will not engage in any business relationship feedbacks and improvement points suggested by our governance practices throughout the life cycle of that will provide direct or indirect benefit for any suppliers. our superior digital products and services. We aim Turkcell Group employee or his/her for family. to create, maintain and continuously improve long- We see the diversity of our suppliers as one of the term environmental, social and economic value for As part of our value-oriented, responsible supply chain biggest guarantees of our superior digital as well as our stakeholders who are involved in the delivery practices, we quickly take improvement actions by other services. In this context, we closely follow the of our products and services to the market by our assessing complaints in accordance with the articles work of O-RAN Alliance (Open Radio Access Network sustainability approach in the supply chain. We of contract, in line with the feedback from the general Association). O-RAN is an organization providing also contribute to Targets 12.2, 12.4 and 12.A of customer communication channels or suppliers and possibility for small scale suppliers to participate in Sustainable Development Goal 12 “Responsible business units. We evaluate the suitability of our competition by standardizing used interfaces with the Consumption and Production”. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 122

Turkcell supply chain management sustainability strategy Our Value-Oriented, Responsible Supply Chain management approach was awarded in many national and international platforms in 2019 with the practices we have implemented:

CIPS MENA 2019: Chartered Institute of Purchasing and Supply (CIPS), Green Supply Chain headquartered in the UK, is the most reputable and largest purchasing Public Sector, Operator • Green Procurement organization in the world with more than 100,000 corporate members. We and Supplier Partnerships • Green Logistics (Local were the first company from Turkey to obtain the Corporate Purchasing • Innovation for Suppliers Warehouses) Certificate issued by CIPS. Thanks to the progress of our talent management • Public Sector-Operator • Green Audit Cooperation • Digital Data Management and purchasing teams in the Supply Chain function during the first two years • Digital Signature Turkcell Supply Chain Management Team was awarded with CIPS Middle East • Green Data Centers Supply Management Award in “People Development” category.

CIPS Supply Management Awards: Our Supply Chain Process Sustainable Use of Equal Opportunities for Development Team received an award in the Technology Innovation Resources Suppliers and Supporting category at the ceremony held in London Grosvenor House. • Waste and Electronic Local Suppliers Waste Management • Access to Information with SAP Executive Summit: Our EPOS (Integrated Retail Automation • Reuse Open Access Platforms • Recycle • Start-up Business Model System) project, automatizing and digitalizing the supply • Green Material • Developing Local management processes of our sales channels end-to end, won Supply Chain Transparency Management Ecosystem the “Intelligent Enterprise of the Year” Quality Award at SAP Executive Summit. • Robotic Process • Customs Processes Management Optimization and Digitisation Istanbul Buyer Network: The “Purchasing and Supply Chain Management • Supplier Management Conference” was organized by the Istanbul Buyer Network for the 13th time System Platform this year and with participation of more than 500 companies and managers. Our Supply Chain Management Department was awarded in Supply Chain Management branch within the category of Young Purchasing Manager with our SCM Digital Transformation Journey story covering the process of our digitalization. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 123 Effective and transparent purchasing applications

9.1. Effective and transparent purchasing • ISO 9001 Quality Management System and ISO 27001 applications Information Security Management System

As Turkcell Group, we establish our purchasing • Customs Law No. 4458 and Free Trade Zones management structure under 4 main categories Legislation including strategy, people, process and application. We • Obligations related to the legislation of other countries carry out our activities with a transparent approach in which we operate (Ukraine, Belarus, Northern Cyprus towards our stakeholders by taking into consideration Biometric Signature Project: We developed biometric signature practice for ethical factors, anti-corruption and social contribution in We manage our purchasing processes by adopting contracts signed with landlords during field rental processes. We adopted a all our purchasing processes. We are guided by national cost analysis and dynamic working principles. When digital contract management system allowing end-to-end digital data entry and international standards to make our purchasing evaluating purchasing processes, we prioritize savings instead of a process based on physical exchange of contracts. By reducing processes fully transparent. We conduct our purchasing driven practices and make use of the integrative the number of steps from 13 to 5, we can now complete the processes in one processes in accordance with the following standards: advantage of technology. We attach importance to day, which previously took 3-10 days. By switching to tablets and biometric efficient and effective use of resources, and we carry signatures at contract signing phases, we saved approximately 135,000 TL on • Sarbanes-Oxley Act (“SOX”) out our operations accordingly. Highlights from the paper, archiving, cargo and fuel costs, and reduced our resource use. • Security Exchange Commission (“SEC”) Regulations projects we developed in this context are listed below:

• Foreign Corrupt Practices Act (“FCPA”) Regional Warehouse Technology: It covers the process of designing logistics • Capital Markets Board of Turkey (“CMB”) Regulations architecture by determining the optimum warehouse locations and material flow • Information Technologies Authority (“BTK”) Regulations plans and changing the regional distribution warehouses from “pull” strategy to “push” strategy. With this project, we ensure accurate and in-time delivery • Obligations related to Turkish Commercial Code (“TCC”) performance at targeted service levels, optimization of our logistics network, • Obligations related to Turkish Penal Code strengthened interaction with our suppliers, reduced shipping costs, fast and

• Obligations related to Tax Laws effective delivery of products, and standardized logistics operation quality. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 124 Effective and transparent purchasing applications

Electronic Tender Management: We manage our procurement tenders by electronic Supply Chain Management Dashboard Project: In 2019, we continued to develop digital imaging tender system as much as possible. We ensured transparency and effectiveness on our applications enabling instant update of data which can be tracked on mobile devices, to avoid non- supplier bid management process by 234 e-tenders we carried out in 2019. As another automated reporting processes in our Supply Chain. In this way, we can now monitor all our targets and facilitator, we also support the use of digital signatures on our contracts. Thanks to our take timely actions. Dashboard is in active use of Turkcell Senior Management, supply chain managers Digital Contract Management system, we operate our contract management within a and related responsible teams. single, end to end digital system. Our teams managing contract processes at Turkcell came together for this project, created the demand design and put out to tender. We enhance the competency of our purchasing teams to continuously improve our effective Robotic Process Automation (RPA): We automated processes including item purchasing practices. Training Wagon project was identification, contract renewal, warehouse count lists, inventory location transfer, conducted in cooperation with Turkcell Academy. In inventory reporting within the Supply Chain and contract information inquiry by this context, we developed trainings and animated introducing the Robotic Process Automation developed by our subsidiary Turkcell videos dubbed by our Supply Chain team to raise Global Bilgi to our Supply Chain Process Development Team. In this way, we reduce awareness of our purchasing teams on conducting the operational burden on our employees and enable them to utilise their time by business activities in line with ethical rules. working on more value-added processes. By implementing 6 scenarios within the scope of this project in 2019, we saved a total of 60 man-hours per month. With the same conditional contract renewal scenario, we now carry out 6,000 contract renewals per year by RPA. SCM Paf Team - Innovation Projects: It is the set of projects developed by teams established to create innovative ideas within the Supply Chain B2B (Business-to-Business) Projects with Our Suppliers: It is a set of projects Management Department. We present the projects put forward by our teams enabling requesting parties, suppliers and Turkcell purchasing units to follow the to the Senior Management and facilitate effective innovation in the supply process on a common system by digital system integrations with our suppliers. chain by implementing the accepted projects. Until today, we have created 12 Thanks to this project, we facilitated system integration with one of our critical teams including 53 employees and completed 12 projects, within SCM Paf Team business partners and minimized disruptions in the procurement process. Projects, carried out in 3 cycles. In addition to this, we have 3 ongoing projects. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 125 Green supply chain management

9.2. Green supply chain management

We continuously emphasize the importance of Turkcell Green We are working to expand the perception of circular economy • With the Modem Renewal Project launched in 2019, we Procurement, Green Logistics Process, Green Material in our industry by prioritising purchase of materials produced renew our modem group products which are no longer used Management and environmental standards as part of our business from recycled materials or equipment that can be reused or by our customers, repair them if necessary and offer to our strategy to our suppliers. Thanks to our Green Supply Chain recycled at the end of its product life in our supply processes. customers who made a modem request. We take advantage Management, we not only reduced our negative environmental Our main activities under the Green Supply Chain include the of the circular economy business model by minimizing our impact but also cut our energy costs by using environment and energy following: resource use. In 2019, we saved 10 million TL in total with the friendly products. Thus, we act under environmental awareness as a Modem Renewal Project. responsible corporate citizen, and further strengthen our position in • We evaluate the equipment to be purchased for our energy- the sector. With our Green Supply Chain practices, we support intensive networks with a focus on energy efficiency. In • In order to ensure more efficient use of our supplies, we the Targets 7.2, 7A and 7B within Sustainable Development Goal addition, we also install base stations within our networks that transferred our inventory optimization and demand planning 7 “Affordable Clean Energy” produce their own energy from renewable sources. processes to digital environments. Thanks to this project, we as well as 12.4 and 12.5 within saved 4.8 million TL by eliminating problems such as over- Sustainable Development Goal 12 • We renew the air-conditioning and energy infrastructures stocking, unnecessary orders and wrong time delivery. “Responsible Consumption and at our data center system rooms, requiring high amount of Production”. refrigerant gas and energy, with efficient, latest technology • Within the scope of ISO 50001 Energy Management System, designs. With our LEED (Leadership in Energy and we also review our purchasing procedures and integrate our We assess and audit the effectiveness of supply chain Environmental Design) Gold certified data centers, we aim at energy management plan into our purchasing activities. management under three main headings including green setting a pioneering example not only in terms of technology purchasing, forward and reverse logistics, green material but also environmental impact. • In all our construction projects; we prefer the highest quality management. We aim to reduce our environmental footprint construction and architectural materials known. We attach resulting from our purchasing activities by prioritizing the use of • We prefer environment friendly products in office supplies. importance to ensure that these materials are environment recyclable equipment running on alternative/clean energy. We In this context; we make purchases such as environment friendly and do not pollute the soil and water throughout their inform our suppliers on important supply chain sustainability friendly furniture, faucets with sensors, cardboard cups pencils, lifecycle starting from their production. elements such as corporate social responsibility projects, energy notebooks and paper made from recycled materials. saving targets and reduction of paper consumption. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 126 Supporting local suppliers

9.3. Supporting local suppliers The share of our products and We are proud to offer the highest quality and services purchased from our local accessible services and to initiate activities that will add value to our country. In this direction, while suppliers assigned in 2019, within all offering our products and services to domestic and purchased products and services international markets, we attach great importance was 14%. We have saved 27.2 million to supporting local suppliers. In this way, we fulfill our TL by locally supplied products. obligations arising from BTK (Information Technologies and Communication Board) regulations and contribute to local employment and regional development. We modified our standard purchasing process for start-up firms to support local economic activity, Number of Turkcell suppliers (2019) the growth of the entrepreneurial ecosystem and contribute to the sustainability of the innovation in 7% Turkey. We visited our techno parks with related business units, introduced our Business Model with Local 1,497 Start-up Companies, and showed our support to Foreign 118 the entrepreneurship ecosystem. We reorganized Total 1,615 the tender model carried out by our purchasing team in a way that would allow tendering 90% of 93% the service and working with start-up companies for the remaining 10%, Instead of tendering the entire service scope to a single company. In 2019, we signed Our local supplier definition covers all 3G and 4.5G a contract with 6 start-up companies from 3 techno in-scope, out-scope local manufacturers as well parks in Istanbul, Ankara and Denizli including them in as locations of operations reported in line with BTK our supply chain. regulations. Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 127 Supporting local suppliers

Customized High Technological Devices within the innovation in the domestic sector and support the context of Localization: In order to meet our high growth of the local economy. technology device demand at our data centers, we purchased custom produced devices by cooperating Based on the idea “If SMEs grow, Turkey grows”, we with local suppliers. We offered the knowledge and organize SME Days in order to strengthen economic cooperation of Turkcell to produce these devices in development and technological know-how of Turkey which can be purchased abroad for 17.7 million domestic small and medium-sized businesses. We are TL. We provided employment opportunities and contributing to development of the local ecosystem know-how transfer for the Turkish economy as we by conducting workshops with SMEs, bringing them shared our technological knowledge. together for collaborations that can create synergies such as 5G Test Valley, 5G TR Forum, Communication We constantly work to support our local suppliers in Technologies Cluster (HTK). creating a Turkey that does not only consumes but also produces technology. With ASELSAN, ULAK and UKrtower Project: Electronic communication is other domestic manufacturers, we took important facilitated by high tower structures designed to steps to produce antennas, base stations and radio support telecommunication and broadcast antennas. link devices. We play an active role in the initiatives Tower structures are one of our most important created to develop local technologies in the field of investments for our networks and industry. In this 5G. Finally, we started to use locally manufactured context, we implemented a localisation project with 4.5G compatible antennas developed by ASELSAN in Ukrtower where we redesigned the towers belonged our network. to the company with local manufacturers in Turkey instead of purchasing them from manufacturers in We fulfill almost all our demand for battery equipment Ukraine. In this way, we achieved an international from local suppliers to ensure continuity of our service supplier-based optimization and contributed to the in cases of electricity cuts in regions where our base domestic production and the local economy by stations are located. In line with our capacity needs, exporting domestically produced towers. we work together with our suppliers to facilitate Value-oriented, responsible supply chain Turkcell Sustainability Report 2019 | 128 Public sector, operator and supplier partnerships

9.4. Public sector, operator and supplier In 2019, we supported the improvement of partnerships Insurance Information and Surveillance Center’s digital infrastructure in terms of enhancing its We strengthen our Supply Chain approach with our speed and security. All the data, including traffic, activities aiming at social benefit and creating positive fire, health and life insurance, is now securely economic and social impact for all parties. Particularly, stored in SBM (Insurance Information Center) we aspire to make a difference with the superior digital systems, processed and put into service with the services we provide by acting as a bridge between digital infrastructure provided by Turkcell. In this public and supplier partnerships. Our main activities way, Turkey’s data, remains in Turkey. within the scope of Public Sector, Operator and Supplier Partnerships are as follows: Infrastructure of 112 Emergency Call Centers in 25 provinces entrusted to Turkcell: Following Istanbul, Turkcell will provide the infrastructure of 25 We take part in Turkey’s Automobile Joint new provinces integrated into 112 Emergency Call Venture Group Inc. (TOGG) with a 19% share Center operating in 44 provinces for emergency under the coordination of the Ministry of Industry calls such as Health, Police, Gendarmerie, AFAD, and Technology of Turkey and the Union of Fire Brigade, Coast Guard, Forestry Organization. Chambers and Commodity Exchanges of Turkey Within the scope of the project carried out by the (TOBB). We offer procurement support for the General Directorate of Provincial Administration of developed domestic car’s mobility solutions. the Ministry of Internal Affairs of Turkey, we provide We support the process with our digital supply support to 112 Emergency Call Centers with new resources for a domestically produced car which generation technologies such as service in four offers suitable solutions to the user with internet- foreign languages, domestic software, special based audio listening and understanding. video calls for citizens with hearing loss and direct call forwarding in case of an accident. GRI content index table UNGC progress table

You can find the GRI items responded in this report within the scope of GRI 102-55 and related report sections on this table.

GRI Disclosures related to material topics are marked by . Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 130

GRI 102 General disclosures (2016) GRI 102 General disclosures (2016)

Disclosure Report section Page Disclosure Report section Page

Organisational Profile 102-13 Membership of associations Transparent Stakeholder Interaction 51

102-1 Name of the organization Corporate Governance 15 Strategy

102-2 Activities, brands, products, and 102-14 Statement from senior decision-maker Message from the CEO 12 Corporate Governance 15 services Exemplary Corporate Citizenship and Business 102-15 Key impacts, risks, and opportunities 28 Turkcell Küçükyalı Plaza, Aydınevler Mahallesi Ethics 102-3 Location of headquarters İnönü Caddesi No:20 Küçükyalı Ofispark B Blok – Maltepe / İSTANBUL, TURKEY Ethics and Integrity

102-16 Values, principles, standards, and 102-4 Location of operations Corporate Governance 15 Corporate Governance 15 norms of behaviour 102-5 Ownership and legal form Corporate Governance 15 102-17 Mechanisms for advice and concerns Exemplary Corporate Citizenship and Business 28 102-6 Markets served Corporate Governance 15 about ethics Ethics

102-7 Scale of the organization Our Productive Turkcell Family 68 Governance

102-8 Information on employees and other 102-18 Governance structure Corporate Governance 15 Our Productive Turkcell Family 68 workers 102-22 Composition of the highest Corporate Governance 15 102-9 Supply chain Value-Oriented, Responsible Supply Chain 119 governance body and its committees

102-10 Significant changes to the 102-23 Chair of the highest governance body Corporate Governance 15 Value-Oriented, Responsible Supply Chain 119 organization and its supply chain

Exemplary Corporate Citizenship and Business 102-11 Precautionary Principle or approach 28 Ethics

102-12 External initiatives Turkcell Sustainability Strategy 23 Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 131

GRI 102 General disclosures (2016) GRI 102 General disclosures (2016)

Disclosure Report section Page Disclosure Report section Page

102-30 Effectiveness of risk management 102-52 Reporting cycle About the Report 14 Corporate Governance 15 processes 102-53 Contact point for questions regarding About the Report 14 102-35 Remuneration policies Equal Opportunity, Inclusiveness and Diversity 73 the report

Stakeholder Engagement 102-54 Claims of reporting in accordance About the Report 14 with the GRI Standards 102-40 List of stakeholder groups Transparent Stakeholder Interaction 51 102-55 GRI content index GRI Content Index 130 102-42 Identifying and selecting stakeholders Transparent Stakeholder Interaction 51 In the Turkcell 2019 Sustainability Report, only 102-43 Approach to stakeholder Transparent Stakeholder Interaction 51 Scope 1, Scope 2 and Scope 3 greenhouse gas engagement emission data and energy consumption data 102-56 External assurance were subjected to external audit. You can access 102-44 Key topics and concerns raised Transparent Stakeholder Interaction 51 the Assurance Report at Reporting Practice https://www.turkcell.com.tr/en/aboutus/ corporate-social-responsibility/sustainability 102-46 Defining report content and topic About the Report 14 Boundaries

102-47 List of material topics Corporate Governance 15

102-49 Changes in reporting Corporate Governance 15

102-50 Reporting period About the Report 14

It was published in June 2018 to cover our 102-51 Date of most recent report activities in 2018. Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 132

GRI 201 Economic performance (2016) GRI 203 Indirect economic impacts (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic Effective Financial Management 109 Technology Leadership and Digitalisation 96 and its Boundary and its Boundary

103-2 The management approach and 103-2 The management approach and Technology Leadership and Digitalisation, Effective Financial Management 109 96, 105 its components its components Digital Customer Experience

103-3 Evaluation of the management Operational and Financial Information, 103-3 Evaluation of the management 19, 109 Technology Leadership and Digitalisation 96 approach Effective Financial Management approach

201-1 Direct economic value generated Corporate Governance, Economic Technology Leadership and Digitalisation, 15, 110 203-1 Infrastructure investments and and distributed Performance Pre-eminent Digital Services, Being a Digital 96, 100, 102 services supported Solution Partner 201-2 Financial implications and other Financial Risk Management, Energy risks and opportunities due to climate Management and Opposition with Climate 112, 57 change Change, Energy Management

201-4 Financial assistance received from Effective Financial Management, Corporate 109, 15 government Governance Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 133

GRI 204 Procurement practices (2016) GRI 206 Anti-competitive behaviour (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic and Supporting Local Suppliers 126 Competition Management 31 and its Boundary its Boundary

103-2 The management approach and 103-2 The management approach and its Supporting Local Suppliers 126 Competition Management 31 its components components

103-3 Evaluation of the management 103-3 Evaluation of the management Supporting Local Suppliers 126 Competition Management 31 approach approach

204-1 Proportion of spending on local 206-1 Legal actions for anti-competitive Supporting Local Suppliers 126 Competition Management 31 suppliers behaviour, anti-trust, and monopoly practices Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 134

GRI 302 Energy (2016) GRI 303 Water and effluents (2018)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic and its 103-1 Explanation of the material topic Our Interaction with the Environment 55 Our Interaction with the Environment 55 Boundary and its Boundary

103-2 The management approach and its 103-2 The management approach and Our Interaction with the Environment 55 Our Interaction with the Environment 55 components its components

103-3 Evaluation of the management approach Our Interaction with the Environment 55 103-3 Evaluation of the management Our Interaction with the Environment 55 approach 302-1 Energy consumption within the organization Emissions Management 61 303-1 Interactions with water as a 302-4 Reduction of energy consumption Energy Management 57 Our Interaction with the Environment 55 shared resource

303-3 Water withdrawal Our Interaction with the Environment 55

303-5 Water consumption Our Interaction with the Environment 55 Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 135

GRI 305 Emissions (2016) GRI 306 Effluents and waste (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic Our Interaction with the Environment 55 Our Interaction with the Environment 55 and its Boundary and its Boundary

103-2 The management approach and 103-2 The management approach and Our Interaction with the Environment 55 Our Interaction with the Environment 55 its components its components

103-3 Evaluation of the management 103-3 Evaluation of the management Our Interaction with the Environment 55 Our Interaction with the Environment 55 approach approach

305-1 Direct (Scope 1) GHG emissions Our Interaction with the Environment 55 306-2 Waste by type and disposal Our Interaction with the Environment 55 method 305-2 Energy indirect (Scope 2) GHG Our Interaction with the Environment 55 emissions

305-3 Other indirect (Scope 3) GHG Our Interaction with the Environment 55 emissions

305-4 GHG emissions intensity Our Interaction with the Environment 55

305-6 Emissions of ozone-depleting Our Interaction with the Environment 55 substances (ODS) Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 136

GRI 307 Environmental compliance (2016) GRI 308 Supplier environmental assessment (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic Our Interaction with the Environment 55 Value-Oriented, Responsible Supply Chain 119 and its Boundary and its Boundary

103-2 The management approach and 103-2 The management approach and Our Interaction with the Environment 55 Value-Oriented, Responsible Supply Chain 119 its components its components

103-3 Evaluation of the management 103-3 Evaluation of the management Our Interaction with the Environment 55 Value-Oriented, Responsible Supply Chain 119 approach approach

307-1 Non-compliance with 308-1 New suppliers that were screened Our Interaction with the Environment 55 Value-Oriented, Responsible Supply Chain 119 environmental laws and regulations using environmental criteria

308-2 Negative environmental impacts Value-Oriented, Responsible Supply Chain 119 in the supply chain and actions taken Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 137

GRI 401 Employment (2016) GRI 402 Labour/management relations (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic Employee Happiness 74 Employee Happiness 74 and its Boundary and its Boundary

Equal Opportunity, Inclusiveness and 103-2 The management approach and 103-2 The management approach and Employee Happiness 74 Diversity, Employee Health and Safety 73, 78 its components its components (OHS) 103-3 Evaluation of the management Employee Happiness 74 103-3 Evaluation of the management Being a Strong and Agile Team approach 69 approach (Employment) Employee Happiness, 401-1 New employee hires and employee Being a Strong and Agile Team 402-1 Minimum notice periods regarding There are no collective bargaining 69 74 turnover (Employment) operational changes agreements for employees with Turkcell payroll. 401-2 Benefits provided to full-time employees that are not provided to Employee Happiness 74 temporary or part-time employees

401-3 Parental leave Employee Happiness 74 Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 138

GRI 403 Occupational health and safety (2018) GRI 404 Training and education (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic and its Boundary Employee Health and Safety (OHS) 78 103-1 Explanation of the material Talent Management and Young 83 topic and its Boundary Talents 103-2 The management approach and its components Employee Health and Safety (OHS) 78 103-2 The management Talent Management and Young 103-3 Evaluation of the management approach Employee Health and Safety (OHS) 78 83, 80 approach and its components Talents, Turkcell Academy 403-1 Occupational health and safety management system Employee Health and Safety (OHS) 78 103-3 Evaluation of the Talent Management and Young 83 403-2 Hazard identification, risk assessment, and incident investigation Employee Health and Safety (OHS) 78 management approach Talents

Employee Health and Safety (OHS), 404-2 Programs for upgrading There are no employees excluded Talent Management and Young 403-3 Occupational health services 78 employee skills and transition 83, 80 from the OHS Management Talents, Turkcell Academy System. assistance programs

403-4 Worker participation, consultation, and communication on Employee Health and Safety (OHS) 78 404-3 Percentage of employees occupational health and safety Talent Management and Young receiving regular performance 83 Talents 403-5 Worker training on occupational health and safety Employee Health and Safety (OHS) 78 and career development reviews

403-6 Promotion of worker health Employee Happiness 74

403-7 Prevention and mitigation of occupational health and safety Employee Health and Safety (OHS) 78 impacts directly linked by business relationships

403-8 Workers covered by an occupational health and safety Employee Health and Safety (OHS) 78 management system

403-9 Work-related injuries Employee Health and Safety (OHS) 78

403-10 Work-related ill health Employee Health and Safety (OHS) 78 Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 139

GRI 405 Diversity and equal opportunity (2016) GRI 406 Non-discrimination (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic Being a Strong and Agile Team 103-1 Explanation of the material topic and Equal Opportunity, Inclusiveness and 69 73 and its Boundary (Employment) its Boundary Diversity

Being a Strong and Agile Team 103-2 The management approach and its Equal Opportunity, Inclusiveness and 73 103-2 The management approach and components Diversity (Employment), Equal Opportunity, 69, 73 its components Inclusiveness and Diversity 103-3 Evaluation of the management Equal Opportunity, Inclusiveness and approach Diversity 73 Being a Strong and Agile Team 103-3 Evaluation of the management 406-1 Incidents of discrimination and Equal Opportunity, Inclusiveness and (Employment), Equal Opportunity, 69, 73 73 approach corrective actions taken Diversity Inclusiveness and Diversity

405-1 Diversity of governance bodies Being a Strong and Agile Team 69 GRI 407 Freedom of Association and Collective Bargaining (2016) and employees (Employment) Disclosure Report section Page Being a Strong and Agile Team 405-2 Ratio of basic salary and (Employment), Equal Opportunity, 69, 73 103-1 Explanation of the material topic and its remuneration of women to men Value-Oriented, Responsible Supply Chain 119 Inclusiveness and Diversity Boundary 103-2 The management approach and its Value-Oriented, Responsible Supply Chain 119 components

103-3 Evaluation of the management approach Value-Oriented, Responsible Supply Chain 119

407-1 Operations and suppliers in which the Our Productive Turkcell Family, Value- right to freedom of association and collective 68, 119 Oriented, Responsible Supply Chain bargaining may be at risk Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 140

GRI 408 Child labour (2016) GRI 413 Local communities (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic Value-Oriented, Responsible Supply Chain 119 Creating Social Value with Stakeholders 35 and its Boundary and its Boundary

103-2 The management approach and 103-2 The management approach and Value-Oriented, Responsible Supply Chain 119 Creating Social Value with Stakeholders 35 its components its components

103-3 Evaluation of the management 103-3 Evaluation of the management Value-Oriented, Responsible Supply Chain 119 Creating Social Value with Stakeholders 35 approach approach

408-1 Operations and suppliers at Value-Oriented, Responsible Supply Chain, 413-1 Operations with local community 119, 73 significant risk for incidents of child labour Equal Opportunity, Inclusiveness and Diversity engagement, impact assessments, and Creating Social Value with Stakeholders 35 development programs

GRI 409 Forced or compulsory labour (2016) 413-2 Operations with significant actual and potential negative impacts on local Creating Social Value with Stakeholders 35 Disclosure Report section Page communities 103-1 Explanation of the material topic Value-Oriented, Responsible Supply Chain 119 and its Boundary

103-2 The management approach and Value-Oriented, Responsible Supply Chain 119 its components

103-3 Evaluation of the management Value-Oriented, Responsible Supply Chain 119 approach

409-1 Operations and suppliers at Value-Oriented, Responsible Supply Chain, significant risk for incidents of forced or 119, 68 Our Productive Turkcell Family compulsory labour Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 141

GRI 414 Supplier social assessment (2016) GRI 416 Customer health and safety (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic Value-Oriented, Responsible Supply Chain 119 Customer Safety and Satisfaction 90 and its Boundary and its Boundary

103-2 The management approach and 103-2 The management approach and Value-Oriented, Responsible Supply Chain 119 Customer Safety and Satisfaction 90 its components its components

103-3 Evaluation of the management 103-3 Evaluation of the management Value-Oriented, Responsible Supply Chain 119 Customer Safety and Satisfaction 90 approach approach

414-1 New suppliers that were screened 416-1 Assessment of the health and Value-Oriented, Responsible Supply Chain 119 using social criteria safety impacts of product and service Customer Safety and Satisfaction 90 categories 414-2 Negative social impacts in the Value-Oriented, Responsible Supply Chain 119 supply chain and actions taken

GRI 415 Public policy (2016)

Disclosure Report section Page

There is no direct or indirect financial or 415-1 Political contributions in-kind political support given in 2019. Appendix 1: GRI content index table Turkcell Sustainability Report 2019 | 142

GRI 417 Marketing and labelling (2016) GRI 418 Customer privacy (2016)

Disclosure Report section Page Disclosure Report section Page

103-1 Explanation of the material topic 103-1 Explanation of the material topic and its Customer Safety and Satisfaction 90 Customer Safety and Satisfaction 90 and its Boundary Boundary

103-2 The management approach and 103-2 The management approach and its Customer Safety and Satisfaction 90 Customer Safety and Satisfaction 90 its components components

103-3 Evaluation of the management 103-3 Evaluation of the management approach Customer Safety and Satisfaction 90 Customer Safety and Satisfaction 90 approach 418-1 Substantiated complaints concerning 417-1 Requirements for product and breaches of customer privacy and losses of Customer Safety and Satisfaction 90 Customer Safety and Satisfaction 90 service information and labelling customer data

417-3 Incidents of non-compliance Customer Safety and Satisfaction 90 concerning marketing communications APPENDIX 2: UNGC PROGRESS TABLE Turkcell Sustainability Report 2019 | 143

Topic UNGC principles 2019 Turkcell Sustainability Report section

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights Exemplary Corporate Citizenship and Business Ethics Human Rights Principle 2: make sure that they are not complicit in human rights abuses Exemplary Corporate Citizenship and Business Ethics

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the Equal Opportunity, Inclusiveness and Diversity right to collective bargaining

Principle 4: the elimination of all forms of forced and compulsory labour Equal Opportunity, Inclusiveness and Diversity

Labour Equal Opportunity, Inclusiveness and Diversity, Principle 5: the effective abolition of child labour Value-Oriented, Responsible Supply Chain

Equal Opportunity, Inclusiveness and Diversity, Principle 6: the elimination of discrimination in respect of employment and occupation Value-Oriented, Responsible Supply Chain

Principle 7: Businesses should support a precautionary approach to environmental challenges Our Interaction with the Environment

Environment Principle 8: undertake initiatives to promote greater environmental responsibility Our Interaction with the Environment

Principle 9: encourage the development and diffusion of environmentally friendly technologies Our Interaction with the Environment

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery Anti-Bribery and Corruption Policy Turkcell İletişim Hizmetleri A.Ş. Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi No: 20 Küçükyalı Ofispark B Blok - Maltepe/İstanbul

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