INVESTOR PRESENTATION June 2019 1 STRATEGIC APPROACH FOCUS ON - PowerPoint PPT Presentation

TURKCELL INVESTOR PRESENTATION June 2019 1

STRATEGIC APPROACH

FOCUS ON CUSTOMER OUR CUSTOMERS DIGITAL DIGITAL BUSINESS TECHFIN MORE TO SERVICES SOLUTIONS PLATFORM FOLLOW WELL-INVESTED INFRASTRUCTURE 3

DELIVERING VALUE WITH DIGITAL SERVICES 79 Min 178 million 12 Min Watching 22 Min core app downloads Playing (Playcell) Reading 33 Min 49 Min Playing 93.7 million (Tavla Go) Listening 30 Min digital subscribers 12 Min Contest time 63 Interacting 37 Min Documents 68.6% uploaded For VOIP users per person multiplay customers per day 32 Min 2.8 M Calling Searches per day Note: Times given are in a day unless otherwise 4 indicated.

DIGITAL SERVICES – GLOBAL EXPANSION 5

DIGITAL BUSINESS SOLUTIONS PUBLIC & HYBRID DIGITAL TRANSFORMATION CLOUD SERVICES SOLUTION & SERVICES PROVIDING END-TO-END ICT SERVICES CYBER DEFENSE & INTEGRATED INDUSTRY SECURITY OPERATION DIGITAL SOLUTIONS SERVICES 6

INFORMATION AND COMMUNICATION TECHNOLOGIES MARKET ICT Market Size in Turkey (bn TRY) 131.7 2014 - 18 CAGR (%) 113.8 Information 19% 44.7 Technologies 94.3 38.2 81.5 29.6 69.2 25.9 Communication 17% 22.1 86.9 Technologies 75.6 64.7 55.6 47.1 2014 2015 2016 2017 2018 Source: Deloitte, April 2019 7

TURKCELL DATA CENTERS TURKEY’S LARGEST DATA CENTER Turkcell Data Centers 67K m 2 DC space with 20K m 2 white space 8 Locations Key clients: Oracle, IBM, Pegasus Airlines, HP, PwC Gebze Data Center 33K m 2 Gebze Data Center DC space with 10K m 2 white space 8 Note: Turkeys largest in terms of white space. 8

TECHFIN PLATFORM Utility Money payments transfer Paycell Carrier Top-ups Billing Device Device Loan Leasing QR code Mobile payment wallet POS Insurance 5.0 Mn 3.3 Mn 2.9 Mn 1.5 Mn 1.7 Bn TL 3.6 Bn TL 28 Mn Total Paycell Paycell app Registered Paycell Total Transaction Loan Credit scored users downloads credit cards Cards on Paycell in Q119 Portfolio customers 9

PAYCELL: VALUE PROPOSITION TODAY + TOMORROW Carrier Billing POS & MPOS CAGR Paycell Revenue (mn TL) 2019-2023  50% Utility payments QR Code Payment Money Transfer Hybrid cards (Gaming, Gift) Mobile wallet Loyalty program 300 Paycell Top-ups 187 117 Paycell Card 50 Sales Points 25 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E EBITDA Micro Credit 20 38 93 135 213 Mn TL 10

WELL-INVESTED INFRASTRUCTURE: FOCUS ON SHARING Turkcell In partnership with (stand-alone) Türksat & Vodafone Homepass 3.4 mn fiber + 3.0 mn cable (HFC) 3.4 mn 21 Number of cities 28 First in Europe 10 Gbps Turkcell infrastructure Fiber to the home Türksat infrastructure Overlapping The map displays the cities in Turkey where Turkcell offers fiber and cable internet services through its partnership with Türksat and Vodafone. HFC stands for hybrid fiber-coaxial. 11

THREE PILLARS OF OUR BUSINESS MODEL HEDGING INFLATIONARY PRICING LIQUIDITY FX & INTEREST RATE HEDGING • Key for sustaining growth & margins • Keeping all cash in hard currency • Strong cash flow for capex needs • FX hedged for whole maturity, both • Secure ROI of projects & investments • Additional committed lines on principal & interest of loans • 2.0Bn USD cash * covers principal & • Reflecting costs to the prices • Converted variable to fixed interest interest payments until 2022 • Proven track record Details of Financial Debt Principal & Interest Payments ** Turkcell ARPU vs. CPI Trend (Q115=100) 164 158 161 (After Hedging) (Million USD) 147 158 142 139 157 136 147 131 130 1,927 129 125 138 115 115 132 22 111 20% 110 128 106 123 44% 123 120 100 114 849 112 56% 110 598 109 106 1,904 103 103 80% 247 252 100 297 7 7 6 591 552 246 241 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Local Currency Fixed interest 2019 2020 2021 2022 2023+ TCELL ARPU (exl. M2M) CPI Column1 FX Variable interest FX Local Currency *Includes Fintur sale proceeds. 12 **Data of Turkcell Group companies, excluding TCF

MAJOR FUNDING & HEDGING DETAILS TYPE & PURPOSE OF AMOUNT MATURITY INTEREST UTILIZATION HEDGING DETAILS DATE FUNDING 3-month US$500Mn 2-year grace 80% hedged with PCCS CAPEX and inorganic Fully utilized Club Loan LIBOR/ period, 5-year (September 2015) EURIBOR growth opportunities in Jun 16 EUR445Mn maturity 7% hedged with PCCS + 2.00% CAPEX and inorganic Bond 5.75% - 15/10/2025 US$500Mn - growth opportunities (October 2015) (fixed rate) EURIBOR Fully utilized Debt restructuring 100% hedged with PCCS EUR500Mn + 2.20% China 3-year grace in Oct 15 Development period, 10-year EUR : EURIBOR + 2.20% Bank ~EUR550 Mn utilized maturity ~48% hedged with PCCS &CCS USD : LIBOR + 2.22% CAPEX (October 2015) EUR750Mn as of March 19 CNY : 5.51% 5.80% Bond Repayment of existing - 11/04/2028 US$500Mn - (April 2018) (fixed rate) indebtedness EKN-Covered 10-year US$50mn utilized 1st Tranche: LIBOR+2.10% CAPEX - US$150Mn (March 2019) maturity 2nd-3rd Tranche: 5.35% as of March 31 13

Q1 2019 RESULTS

Q1 2019: STRONG START TO THE YEAR STRONG TOPLINE RESILIENT EBITDA 5.7 Bn TL 2.3 Bn TL Performance 19.2% yoy exceeding targets 40.2% margin THE DIGITAL OPERATOR ASSET-LIGHT STRATEGY TURKEY’S TECH SUMMIT 772 Mn TL 10 K 178 Mn Fintur sale P&L contribution Participants downloads 0.2x impact  1.3x 265 K Leverage ratio Digital participants 15

TURKCELL GROUP FINANCIAL HIGHLIGHTS Consolidated Q1 2018 Q4 2018 Q1 2019 QoQ% YoY % TRY Million 1 4,762 5,626 5,675 0.9% 19.2% Revenue 2,022 2,239 2,281 1.9% 12.8% EBITDA 42.5% 39.8% 40.2% 0.4pp (2.3pp) EBITDA Margin Net Income 501 864 1,224 41.7% 144.5% Op.Capex/Sales 2 11.1% 25.7% 15.6% (10.1pp) 4.5pp • +0.4 pp QoQ improvement in EBITDA margin (+2.2 pp in Turkcell Turkey) • Capex in line with targets 1 TRY figures are based on IFRS. 16 2 Excluding license fees

REPORTED AND COMPARABLE ARPU TREND ARPU (TL) Mobile ARPU Growth (TL) YoY (0.11) (0.80) 62.8 12.3% Residential fiber 55.9 54.0 6.30 13.4% 38.1 Mobile blended 33.6 38.1 38.1 (excl.M2M) 19.3% 30.5 32.7 19.6% 11.7% like-for-like * growth Q118 ARPU Organic growth Dunning fee Other reg. & tax Q119 ARPU Q117 Q118 Q119 Q219 excl. one-off impacts excl. M2M impacts and M2M * The ARPU of customers who have stayed with Turkcell for at least 14 months. CPI Turkey (YoY)  Upsell performance has doubled in Q119 on a yearly As inflation declines, we expect basis in terms of number of subs and revenues our ARPU growth to exceed it  12pp y-o-y decrease in downsell (to lower packages) 22.4% 19.9% 18.5% 19.4% ratio in Q119 15.0% 12.8% 13.8% 10.3% Q118 Q218 Q318 Q418 Q119 Q219E Q319E Q419E 17 Source: Bloomberg

NET ADD AND NEW SUBSCRIBER TRENDS MOBILE NET ADDITIONS (thousand) NEW POSTPAID CUSTOMERS’ ARPU (TL) 20.0% 66 17.3% 10.3% 42.1 41.6 41.6 37.7 35.5 35.1 -45 Jan-19 Feb-19 Mar-19 -103 2018 2019 YoY Jan-19 Feb-19 Mar-19 Apr-19  Positive net additions since March  Increasing prices of new postpaid customers ’ packages  Customer loss in low ARPU segment in Jan-Feb  <25 TL ARPU decreased by 4% QoQ  >50 TL ARPU increased by 7% QoQ 18

LEADERSHIP IN QUALITY AND EXPERIENCE LEADING CAMPAIGNS IN Q119 CUSTOMER EXPERIENCE Consumer Net Promoter Score (Points) «#DO» campaign Turkcell Score 23 4.5 mn participants/gifts +23 2.2 mn first-timer to our +20 digital services +11 +9 Turkcell’s Shake & Win – specials for the 25 th year 13.4 mn participants Q118 Q119 140 mn gifts Points over next best Points over third best Source: Future Bright 19

SOLID BALANCE SHEET SUMMARY NET DEBT/EBITDA TRY Mn Q4 2018 Q1 2019 1.7x Total Cash 7,419 8,888 Due From Related Parties 1 - 2,230 1.4x 4,790 1.3x Total Assets 42,765 46,079 4,171 3,641 TCF loan porfolio 1.2x Total Debt 20,156 22,867 1.0x Lease Obligations 1,414 1,410 0.9x 9,516 8,565 Total Equity 16,054 17,102 Net Debt 2,3 8,108 Net Debt 2 12,736 11,749 Q318 Q418 Q119 Net Debt 3 8,565 8,108 Net Debt/EBITDA Net Debt/EBITDA 1 Corresponds to proceeds from the Fintur transaction closed on April 2, 2019. 2 Q119 balance includes Fintur sale proceeds. 20 3 Excludes Turkcell Consumer Finance Company’s loan portfolio

LIQUIDITY MANAGEMENT Q418 vs. Q119 TRY MILLION 1 Fintur cash 2,230 (827) (83) 2,281 1,666 (1,569) 8,888 8,888 7,419 7,305 Cash Q418 EBITDA Change in operating Cash flow from Cash flow from Other Cash Q119 assets/liabilities investing activities financing activities 1 Figures are based on IFRS. 21

FX EXPOSURE CASH 1 DEBT NET FX POSITION 2 Before Hedging After Hedging USD MILLION 7% 8% 9% 216 21% 34% Share 50% 49% 33% 79% 10% (204) (224) (255) (301) Nominal 8.9Bn TL 22.9Bn TL Q118 Q218 Q318 Q418 Q119 USD EUR TRY Other 1 Excluding FX swap transactions for TL borrowing. 2 Including advance payments, hedging and excluding FX swap transactions for TL borrowing. Derivatives (VIOP) and forward transactions are included. 22

GUIDANCE REVISED UPWARDS 2019 GUIDANCE TURKCELL GROUP PREVIOUS NEW 17% - 19% 16% - 18% REVENUE GROWTH 38% - 40% 37% - 40% EBITDA MARGIN 16% - 18% 16% - 18% OP. CAPEX / SALES* 23 *Excluding licence fees