TURKCELL GROUP Q4 & FY 2017 February 15, 2018 BUSINESS OVERVIEW

Kaan Terzioğlu Turkcell CEO Turkcell | Fourth Quarter & Full Year 2017 2017: A REMARKABLE YEAR FINANCIAL OPERATIONAL Record top line at 17.6Bn TL, up 23.4% yoy Annual mobile churn at 20.5%, lowest of the past decade

EBITDA at 6.2Bn TL, up 34.8% yoy 36.7Mn subscribers in Turkey, with 1.5Mn net adds

Highest EBITDA margin of past 9 years: 35.3% 87% 4.5G subscriber penetration

3.0Bn TL dividend distributed 242K Lifecell subs by Feb.18

Revenue, EBITDA and EBITDA Margin Annual Mobile Churn Rate 35.3% 33.3% 32.6% 33.9% 32.7% 32.4% 32.3% 17.6 27.9% 28.3% 31.1% 30.9% 31.1% 31.2% 14.3 27.1% 27.4% 27.3% 12.0 12.8 24.6% 10.5 11.4 23.8% 8.9 9.0 9.4 6.2 3.0 2.9 2.9 3.2 3.5 3.8 4.1 4.6 20.5%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3 Revenue (Bn TL) EBITDA (Bn TL) EBITDA Margin (%) Turkcell | Fourth Quarter & Full Year 2017 GUIDANCE DELIVERED

INITIAL REVISED GUIDANCE GUIDANCE ACTUAL

REVENUE GROWTH 12% - 14% 21% - 23% 23.4% …Stellar growth performance

EBITDA MARGIN 32% - 34% 33% - 35% 35.3% …Mid-term target achieved a year ahead

OP.CAPEX / SALES* ~20% 19% - 20% 21.0% …CAPEX brought forward in Q4

4 *Excluding license fees Turkcell | Fourth Quarter & Full Year 2017 FOURTH QUARTER HIGHLIGHTS FINANCIAL OPERATIONAL Record top line at 4.7Bn TL, up 15.4% yoy Mobile triple play at 55.8%, up 14pp yoy

Highest quarterly EBITDA margin of past 9 years: 37.3% Yaani downloads reached 3.5Mn

23% growth in data and digital services revenues 4.5G user data usage at 5.9GB, up 37% yoy

500Mn TL net income impact of tax settlement 72% smartphone penetration, 15Mn 4.5G compatible

Revenue and EBITDA Margin Mobile Triple Play Multiplay with TV 37.3% 35.5% 55.8% 33.9% 34.5% 33.8% 4,597 4,666 41.8% 4,316 44.4% 4,044 4,053 35.9% 17.4% 25.9%

Q416 Q117 Q217 Q317 Q417 Q415 Q416 Q417 Q415 Q416 Q417 5 Revenue (Mn TL) EBITDA Margin (%) Turkcell | Fourth Quarter & Full Year 2017 TURKCELL GROUP FINANCIAL HIGHLIGHTS

Q4 2017 2017 Consolidated TRY Million1 YoY % YoY % Revenue 4,666 15.4% 17,632 23.4% Two-year Cumulative EBITDA 1,739 26.8% 6,228 34.8% Revenue Growth Rate (%)

EBITDA Margin 37.3% 3.4pp 35.3% 3.0pp 40% 40% 36% 37% Net Income 216 (38.4%) 1,979 32.6% 30% Net Income -excl tax settlement2 716 104.2% 2,479 52.3%

Op.Capex/Sales3 35.7% 8.8pp 21.0% (2.0pp) Q416 Q117 Q217 Q317 Q417

• All-time high yearly revenue and EBITDA • Solid operational performance led to strong bottom-line • Improved collection performance of receivables led to 133Mn TL contribution in Q417 EBITDA 1 TRY figures are based on IFRS 6 2 Excluding the negative impact of 136Mn TL tax amnesty in Q3 2016 and 500Mn TL tax settlement in Q4 2017. The latter was disclosed on January 30, 2018. 3 Excluding license fees Turkcell | Fourth Quarter & Full Year 2017 TURKCELL TURKEY FINANCIAL HIGHLIGHTS

Q4 2017 2017 TRY Million1

YoY % YoY % Revenue 4,041 13.0% 15,450 20.8% EBITDA 1,566 27.7% 5,594 34.4% EBITDA Margin 38.8% 4.5pp 36.2% 3.7pp Net Income 179 (53.7%) 1,962 32.6% Net Income - excl tax settlement2 679 75.8% 2,462 52.4%

• Turkcell Turkey Q4 revenue growth including financial services is 15.2% with 38.3% EBITDA margin, while full year 2017 revenue growth is 23.8% with 36.1% EBITDA margin

7 1 TRY figures are based on IFRS 2 Excluding the negative impact of 136Mn TL tax amnesty in Q3 2016 and 500Mn TL tax settlement in Q4 2017. The latter was disclosed on January 30, 2018. Turkcell | Fourth Quarter & Full Year 2017 OPERATIONAL HIGHLIGHTS

TURKEY SUBSCRIBERS (million) ARPU (TL)

Total Turkey subscribers 53.6 YoY 48.7 51.1 4.9% 54% 36.7 mn 31.6 18.5 28.3 YoY of total 1.5mn↑ net add YoY 25.6 mobile 11.7%

2015 2016 2017 15.6 Fixed Residential Mobile Blended (excl. M2M) 2.2 MOBILE CHURN RATE

1.2 Annual 0.9 27.3%

24.6%

Postpaid Prepaid Fiber ADSL TV* YoY 20.5% Net add 1.1mn↑ 63K↓ 160K↑ 103K↑ 146K↑ 8 2015 2016 2017 *TV subscribers include 1.7 million of «OTT only» customers and it is excluded from net add & total subs Turkcell | Fourth Quarter & Full Year 2017 INCREASING APPRECIATION OF CUSTOMERS

NET PROMOTER SCORE* OVER COMPETITION

+41 +38 +31 +32 +28 +24 SUPERIOR +21 PIONEER CAMPAIGNS +19 4.5G QUALITY & SPEED

Q117 Q217 Q317 Q417 Points over next best Points over third best

• #1 in NPS reflecting superior overall customer satisfaction

• Continued to widen the gap in the fourth quarter DIGITAL SERVICES ENHANCED PORTFOLIO SHOPPING EXPERIENCE 9 *NPS score comparison is for consumer segment in mobile. (Source: Nielsen) Turkcell | Fourth Quarter & Full Year 2017 CONTINUED RISE IN DATA USAGE

MOBILE DATA USAGE (Av. GB/User) 4.5G SUBSCRIPTION (million)

6.0 5.9 6.0GB 28 29 30 in 26 4.3 4.3 23 4.2 Dec’17 19 2.8 15 13 14 15 11 12 1.7 8 9 0

Q415 Q416 Q317 Q417 Q216 Q316 Q416 Q117 Q217 Q317 Q417 4.5G Users Total Users 4.5G subscribers 4.5G compatible smartphone SMARTPHONE PENETRATION • 4.5G users are driving data usage 71% 72% o 2x consumption vs. 2G&3G users 64% 52% • Significant room for further 4.5G adoption • 68% of smartphones on our network are 4.5G compatible

o ~1mn additions each quarter Q415 Q416 Q317 Q417 10 Turkcell | Fourth Quarter & Full Year 2017 GROWTH DRIVERS

DATA&DIGITAL SERVICES REVENUES SHARE OF REVENUES (IN TURKCELL TURKEY) (Million TL) 68% 62% 55%

2,735 2,226 23% 38% YoY 1,147 26%

19% QUARTERLY Q415 Q416 Q417 Q415 Q416 Q417

67% 57% 53% 10,304 51% 6,814 YoY 37% 38% 4,198

20% YEARLY 2015 2016 2017 2015 2016 2017 11 Voice & SMS Data and digital services Turkcell | Fourth Quarter & Full Year 2017 INCREASING MULTIPLAY

MOBILE* (TRIPLE PLAY«3P») MOBILE MULTIPLAY

55.8% TRIPLE PLAY SHARE IN MOBILE REVENUE 50.4% 46.7% 41.8% 42.4%

28.2% 73% 15pp 24.0% 58% YoY

Q416 Q417 (MULTIPLAY WITH TV) FIBER RESIDENTIAL ARPU & CHURN RATE 1.0x 44.4% 42.3% 0.9x 40.5% 38.7% 0.8x 35.9% 33.9% 32.6% 2.9x 1.0x 1.5x 1P 2P 3P Q216 Q316 Q416 Q117 Q217 Q317 Q417 12 ARPU Churn Rate *Share of mobile voice line users which excludes subscribers who do not use their line in the last 3 months. Triple Play refers to mobile customers who use voice, data and one of core digital services. Turkcell | Fourth Quarter & Full Year 2017 DIGITAL COMPANION THROUGHOUT THE DAY

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

13 min interacting 27 min 33 min reading for VOIP users 24 min listening 63 min watching 31 min 13 calling Turkcell | Fourth Quarter & Full Year 2017 2017 A YEAR WITH DIGITAL SERVICES 3rd app publisher in 4th app publisher in

Shake&Win Group Video Newspapers Lifecell Advertisement First B2B sale Social Campaign Chat added «Digital Operator» from app (to Moldcell) Chat Room

Q117 Q217 Q317 Q417 Jan.18

Apple TV Introduced Yaani & High School Exclusive Launch of Airplay & e-commerce BiP messages Money Music Contest album launch BiP Gaming Android TV platform exceeded SMS transfer 14 Turkcell | Fourth Quarter & Full Year 2017 INTERACT, READ, LISTEN, WATCH & STORE

INSTANT CALL MANAGEMENT DIGITAL PERSONAL CLOUD MY ACCOUNT MUSIC TV Download* MESSAGING (UPCALL) PUBLISHING (lifebox) (Hesabım)

18.3M 2.3M 4.6M 14.7M 6.6M 6.6M 26.8M QoQ +1.7M +0.6M +1.7M +2.0M +1.3M +0.9M +3.0M Monthly Active User 4.3M 837K 7.0M** 2.0M 1.5M 1.4M 17.3M QoQ +0.1M +0.2M +2.3M +0.3M +0.2M +0.4M +2.1M

Service KPI’s 71M 737K 157K 9M 2.3M 39 40% messages calls copies read songs streamed TV sessions docs uploaded More ARPU per day per day per day per day per day per person per Less Churn day 15 *Refers to downloads as of February 2018, net adds are quarterly. ** Includes users who utilised the zero rating benefit of Dergilik magazines and newspapers via browser. Turkcell | Fourth Quarter & Full Year 2017 :MORE THAN A SEARCH ENGINE…

SERVICE DETAILS MONETIZATION

3.5M Download Advertising revenues • Keyword – traffic management Monthly 1.2M Active User • Main page icon ad

• Ad insertion Search per 1.0M day

16 Turkcell | Fourth Quarter & Full Year 2017 STRONG MOMENTUM IN TECHFIN SERVICES

FINANCIALS & HIGHLIGHTS* HIGHLIGHTS

TRY MILLION Q4 2017 2017 PAYCELL 5Mn users YoY% YoY% Consumer loans 4,248 79% 4,248 79% PAYCELL APP 405K 1.2Mn (balance sheet figure) downloads Registered credit cards Revenues 183 102% 606 228% Recently PAYCELL CARD Gross profit 110 127% 329 187% launched

• 26Mn credit scored customers and Credit Bureau integration • 350Mn TL transactions in 2017** • TCF loan portfolio grew, while Turkcell Turkey contracted handset • App Store mobile payment: first and only in Turkey receivables declined by 1.0Bn TL in 2017 • Co-founder of Turkey Payment Platform • 200Mn TL of Asset Backed Securities were issued in 2017 • Partnership with Istanbul Municipality for iTaksi network • NPL sale (Dec.17) • Established Paycell LLC in Ukraine • Established an insurance company (Feb.18) • Available in TRNC 17 *Financial services figures are based on the contribution to Turkcell Group; **Excludes consumer finance company transactions Turkcell | Fourth Quarter & Full Year 2017 TURKCELL INTERNATIONAL

Revenue Growth EBITDA Margin HIGHLIGHTS (2017, in TRY) (2017) lifecell 4G TRY MILLION1 tender: Q4 2017 2017 15MHz YoY 16.5% 27.2% YoY in 2600 Revenue 288 14.6% 1,067 22.0% BeST EBITDA 64 (6.3%) 264 12.1% Continued 40.2% 3.8% 4G rollout EBITDA 22.2% (5.0pp) 24.7% (2.2pp) Margin Kuzey Kıbrıs Turkcell MNP 16.4% 33.5% in Q118

18 1 TRY figures are based on IFRS Turkcell | Fourth Quarter & Full Year 2017 FINTUR UPDATE: GEOCELL SHARE TRANSFER Background information:

• Fintur has operations in Azerbaijan, Kazakhstan, Moldova and Georgia, and Turkcell holds 41.45% stake in the company. • Turkcell has decided to exit Fintur together with majority partner Telia Company, and reported as “assets held for sale” as of October 2016. KCell

Recent development: Moldcell • On January 25, 2018, Fintur has signed a binding agreement Geocell with Silknet JSC for selling of Geocell for 153Mn USD. Azercell • The transaction is expected to be completed once the regulatory approvals are received. • The transaction has no impact on our financial statements since Fintur is classified as “assets held for sale” in our financials. 19 Turkcell | Fourth Quarter & Full Year 2017 2018 GUIDANCE

2017 - 2019 2018 Guidance (Feb.17) Guidance

REVENUE GROWTH 12% - 14% 13% - 15%

EBITDA MARGIN 33% - 35% 33% - 35%

* OP.CAPEX / SALES 16% (in 2019) 18% - 19%

20 *Excluding license fees FINANCIAL OVERVIEW

Bülent Aksu Turkcell CFO Turkcell | Fourth Quarter & Full Year 2017 REVENUE

QUARTER FULL YEAR TRY MILLION TRY MILLION

29 71 37 92 192 421 464 2,663

17,632 4,666 14,286 4,044 15.4% 23.4%

Revenue Δ Turkcell Δ Turkcell ΔTCF* Δ Other Revenue Revenue Δ Turkcell Δ Turkcell Δ TCF* Δ Other Revenue Q416 Turkey International Subsidiaries Q417 FY16 Turkey International Subsidiaries FY17

• 0.6 bn TL revenue add in Q4 YoY, 3.3 bn TL in 2017 YoY • Turkcell Turkey and TCF are main growth contributors 22 * Turkcell Consumer Finance Company Turkcell | Fourth Quarter & Full Year 2017 EBITDA & EBITDA MARGIN

QUARTER FULL YEAR TRY MILLION TRY MILLION

(312) (1,720) 123 (66) 622 1,739 3,347 77 (95) 6,228

1,371 4,620

Margin Margin Margin Margin 33.9% 26.8% 37.3% 32.3% 34.8% 35.3% EBITDA Δ in Δ in Direct Δ in G&A Δ in S&M EBITDA EBITDA Δ in Δ in Direct Δ in G&A Δ in S&M EBITDA Q416 Revenues cost of exp. exp. Q417 FY16 Revenues cost of exp. exp. FY17 revenues* revenues*

• EBITDA increase via top-line growth & OPEX management • Improved collection performance of receivables led to 133Mn TL contribution in G&A 23 *Excluding depreciation and amortization Turkcell | Fourth Quarter & Full Year 2017 NET INCOME DEVELOPMENT

Q416 vs. Q417 Includes Tax TRY MILLION Settlement Provision 716 (96) (62) 153 368 (584) 44 42 351 216 FY16 vs. FY17 TRY MILLION 2,479 (394) 251 (401) 1,609 (472) 42 Amount 1,628 factored in (149) for 1,979 1,492 dividend proposal Net income Δ in EBITDA Δ in D&A Δ in Interest Δ in FX Δ in Other Δ in Fintur Δ in Taxation Net income Inc./Exp. Gain/Loss* Inc/Exp. 24 * FX/Gain loss includes impact of fair market value change of swap contracts Tax settlement & amnesty impact Turkcell | Fourth Quarter & Full Year 2017 SOLID BALANCE SHEET

SUMMARY NET DEBT/ EBITDA

TRY MN Q2 2017 Q3 2017 Q4 2017 1.26x 1.14x 1.19x Total Cash 4,995 4,906 4,712 4,248 3,801 Total Assets 31,914 32,322 33,982 3,453 0.59x Total Debt 11,197 11,867 12,536 0.52x 0.56x

Total Equity 14,201 14,817 15,045 3,576 2,750 3,160 Net Debt 6,203 6,961 7,824 Q2 2017 Q3 2017 Q4 2017 Net Debt – 2,750 3,160 3,576 excl. TCF* Net Debt (ex. TCF) TCF loan portfolio Net Debt/EBITDA Net Debt/EBITDA (excl. TCF)

25 *Turkcell Consumer Finance Company’s (TCF) loan portfolio is excluded Turkcell | Fourth Quarter & Full Year 2017 CASH DEVELOPMENT

TRY MILLION

(4,090) 6,228 1,493 396 (3,000)

(1,535) (831)

6,052 4,712

Q416 EBITDA Capex* Net int Net chg in debt Dividend Final installment of Other Q417 income/(expense) Payment 4.5G license fee

26 * Including operational and non-operational Capex Turkcell | Fourth Quarter & Full Year 2017 FX EXPOSURE

CASH DEBT NET FX POSITION* USD MILLION Before Hedging After Hedging

Q216 Q316 Q416 Q117 Q217 Q317 Q417 13% 22% (144) 40% (91) (203) Share (125) 60% (330) 78% 87% Comfort Zone (500Mn USD) (688) Nominal 4.7Bn TL 12.5Bn TL

FX Local Currency (1,239)

27 * Including advance payments, hedging and assuming the 4.5G license payables in TRY for the periods before April 2017 and excluding FX swap transactions for TL borrowing Turkcell | Fourth Quarter & Full Year 2017 CAPITAL MARKETS DAY 2018 AGENDA & DETAILS Update on the Turkcell Group strategy and 3-year outlook

Guest Speaker Murat Çetinkaya, CBRT Governor

March 14, 2018 09:00-10:00 Registration & Light Breakfast 10:00-15:30 Management Presentations 19:30-22:00 Dinner w/Management & BoD

Four Seasons Bosphorus

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

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

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

Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified. In the charts or tables used in this presentation totals may not foot due to rounding differences. The figures used in this presentation are rounded while percentage changes are calculated based on the figures disclosed in the press release. 29 THANK YOU For further information please e-mail [email protected] or call Turkcell Investor Relations at (+90 212 313 1888) Have you updated Turkcell IR app? For Android For iOS APPENDIX Turkcell | Fourth Quarter & Full Year 2017 Summary Income Statement As Per CMB1 Financials (TRY MILLION)

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

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

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

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

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

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

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

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

1 Capital Markets Board of Turkey 32 2 Depreciation and amortization is included Turkcell | Fourth Quarter & Full Year 2017 Consolidated Balance Sheet (TRY MILLION)

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

Cash & Bank 6,052 4,712 (22%) CURRENT ASSETS 13,351 14,069 5% TOTAL NON-CURRENT ASSETS 18,249 19,913 9% TOTAL ASSETS 31,600 33,982 8% S/T Debt 2,846 4,278 50% TOTAL CURRENT LIABILITIES 7,359 9,224 25% L/T Debt 6,935 8,258 19% TOTAL NON-CURRENT LIABILITIES 8,173 9,714 19% MINORITY INTEREST 57 56 (2%) SHARE CAPITAL 2,200 2,200 - TOTAL EQUITY 16,068 15,045 (6%) TOTAL EQUITY AND LIABILITIES 31,600 33,982 8% 33 Turkcell | Fourth Quarter & Full Year 2017 Currency Trends USD / TRY EUR / TRY Average Period-End 3.52 3.77 2.91 4.52 3.63 2.32 3.18 3.71 3.01 2.82 2.73 4.11 3.32 2.19 2.90 3.02

2014 2015 2016 2017 2014 2015 2016 2017

USD / BYN USD / UAH

27.19 28.07 1.86 1.96 1.97 24.00 15.77 26.64 1.19 1.98 1.93 25.56 1.59 21.79 1.03 11.87

2014 2015 2016 2017 2014 2015 2016 2017

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