Turkcell The igital perator May 2019 1 STRATEGIC APPROACH - - PowerPoint PPT Presentation

1

Turkcell The igital perator

May 2019

2

STRATEGIC APPROACH DIGITAL SERVICES BUSINESS MODEL HEDGING Q1 2019 RESULTS APPENDIX

3

3

COMPANY OVERVIEW

1 As of May 17, 2019

SUBSCRIBER BREAKDOWN

(m, Q1 2019)

• THE DIGITAL OPERATOR
• 48.4 MILLION TURKCELL GROUP SUBSCRIBERS in 5 COUNTRIES
• 178 MILLION DIGITAL SERVICES DOWNLOADS GLOBALLY
• 93.7 MILLION DIGITAL SUBSCRIBERS GLOBALLY
• LISTED ON NYSE & BORSA ISTANBUL WITH A $4.1 BILLION MARKET CAP1

2 lifecell Europe GmbH operates in Germany under a “marketing partnership” agreement with Deutsche Telekom (DT). Its subscribers are owned by DT and are also included in the Turkcell Group subscriber figure

0.2 0.6 1.6 9.4 36.6

lifecell Europe TR Northern Cyprus Belarus Ukraine Turkcell Turkey

2

4

STRATEGIC APPROACH

5

6

6

FOCUS ON CUSTOMER

DIGITAL SERVICES DIGITAL BUSINESS SOLUTIONS TECHFIN PLATFORM

OUR CUSTOMERS WELL-INVESTED INFRASTRUCTURE

MORE TO FOLLOW

7

7

32 Min

Calling

12 Min

Interacting

37 Min

For VOIP users

22 Min

Reading

79 Min

Watching

49 Min

Listening

2.8 M

Searches per day

63

Documents uploaded per person per day

12 Min

Playing (Playcell)

33 Min

Playing (Tavla Go)

30 Min

Contest time

DELIVERING VALUE WITH DIGITAL SERVICES

TRANSFORMING INTO THE DIGITAL OPERATOR 2015 - 2018

State-of-the-art 4.5G Deployment Organizational Transformation Sales Channel Transformation Shaping Techfin in Turkey Convergence of OTT Services

178 million core app downloads

Note: Times given are in a day unless otherwise indicated.

8

68.6% multiplay customers 93.7 million digital subscribers

TURKCELL GİZLİ

8

DIGITAL SERVICES – INTERNATIONAL LICENSES

TURKCELL GİZLİ

9

PROVIDING END-TO-END ICT SERVICES

PUBLIC & HYBRID CLOUD SERVICES

CYBER DEFENSE & SECURITY OPERATION SERVICES DIGITAL TRANSFORMATION SOLUTION & SERVICES INTEGRATED INDUSTRY DIGITAL SOLUTIONS

DIGITAL BUSINESS SOLUTIONS

TURKCELL GİZLİ

10

3.3Mn

Paycell app downloads

1.5Mn

Paycell Cards

TECHFIN PLATFORM

5.0Mn

Total Paycell users

1.7Bn TL

Total Transaction

• n Paycell in Q119

Money transfer Utility payments QR code payment Mobile wallet Paycell Top-ups Carrier Billing Device Loan Insurance Device Leasing

3.6Bn TL

Loan Portfolio

28Mn

Credit scored customers

2.9Mn

Registered credit cards POS

TURKCELL GİZLİ

11

WELL-INVESTED INFRASTRUCTURE: FOCUS ON SHARING

21 28

Number of cities In partnership with Türksat & Vodafone Turkcell (stand-alone)

Turkcell infrastructure Overlapping Türksat infrastructure

First in Europe

10 Gbps

Fiber to the home

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.

3.4 mn 3.4 mn fiber + 3.0 mn cable (HFC)

Homepass

12

DIGITAL SERVICES

13

13

DIGITAL SERVICES PLATFORM

DIGITAL COMMUNICATION & ADVERTISING SMART PLACES & BUSINESS APPLICATIONS MESSAGING & MARKETPLACE DIGITAL MEDIA PAYMENT PLATFORM

INNOVATION

MANAGEMENT DASHBOARD

DIGITAL PARTNERS & TURKCELL SECURE E-COMMERCE

CURATED SERVICES

14

14

PLATFORM of PLATFORMS

TAXI 24/7 SERVICE ASSISTANT BUS TICKET SALES

15

15

DIGITAL SERVICES COLLABORATION

Paycell enables chat-like money transfer in BiP Yaani recommends fizy & powers keyword search in Dergilik fizy & lifebox come «home» with TV+

16

16

DIGITAL EXPERIENCES

Who Wants 1 GB? Shake & Win Surprise Point

To Phygital Experiences From Classic Campaigns

17

17

BOOSTING THE SERVICES PLATFORM WITH TELCO CAPABILITIES

TechFin built on Turkcell Credit Rating Data Digital Campaigns use location data & assign telco benefits BiP App2Network Calls 2nd Number integration

18

18

BiP – COMMUNICATION & LIFE PLATFORM

HD voice & Group video calls 2nd number integration Discover services & games Peer-to-peer money transfer BiP Web BiP Instant Translate in 106 languages

19

19

fizy – MUSIC

Worldwide music playlists Live concerts Video clips Radio channels Multiplatform (Apple TV, iOS, Android, Carplay)

20

20

EPL, Bundesliga and NBA broadcast Save & watch 24 hours timeshift 4K broadcast

4K

All screens + Apple TV

TV+

21

21

Dergilik- DIGITAL PUBLISHING

Reading in airplane mode 1.3M daily reading (Q119) 50+ National & local newspapers 1000+ global & local magazines

22

22

lifebox – PERSONAL CLOUD

Face & object recognition Auto back-up Free-up space AI Integrated photo pick 5GB storage space free of charge Photo print

23

23

Yaani – SEARCH ENGINE & MAIL & ASSISTANT

Search categories Service integration Smart algorithms Location based search Yaani web Yaani Mail & Assistant

24

24

Turkcell Data Center Cyber Security Services

SECURE E-COMMERCE WITH CREDENTIALS MANAGEMENT

Fast & Secure Log-in

Traffic Management Content / Service Provider

Customer Service Seamless Payment Experience

Credentials Management

25

BUSINESS MODEL HEDGING

26

26

THREE PILLARS OF OUR BUSINESS MODEL HEDGING

INFLATIONARY PRICING FX & INTEREST RATE HEDGING LIQUIDITY

• Key for sustaining growth & margins
• Secure ROI of projects & investments
• Reflecting costs to the prices
• Proven track record
• Keeping all cash in hard currency
• FX hedged for whole maturity, both
• n principal & interest of loans
• Converted variable to fixed interest
• Strong cash flow for capex needs
• Additional committed lines
• 2.0Bn USD cash* covers principal &

interest payments until 2022

56% 44%

Details of Financial Debt

(After Hedging)

Local Currency FX

Principal & Interest Payments**

(Million USD)

100 106 115 111 110 115 125 131 129 130 139 136 142 147 164158 161 100 103 103 106 109 110 112 114 120 123 123 128 132 138 147 157 158 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 TCELL ARPU (exl. M2M) CPI

Turkcell ARPU vs. CPI Trend (Q115=100)

Fixed interest Variable interest

*Includes Fintur sale proceeds. **Data of Turkcell Group companies, excluding TCF

80% 20% 552 591 246 241 1,904 297 7 7 6 22 2019 2020 2021 2022 2023+ FX Local Currency 849 598 252 247 1,927

27

27

MAJOR FUNDING & HEDGING DETAILS

TYPE & DATE AMOUNT MATURITY INTEREST PURPOSE OF FUNDING

Club Loan (September 2015) US$500Mn EUR445Mn 2-year grace period, 5-year maturity 3-month LIBOR/ EURIBOR + 2.00% CAPEX and inorganic growth opportunities Bond (October 2015) US$500Mn 15/10/2025 5.75% (fixed rate) China Development Bank (October 2015) EUR500Mn EUR750Mn 3-year grace period, 10-year maturity EURIBOR + 2.20% Debt restructuring CAPEX CAPEX and inorganic growth opportunities Bond (April 2018) US$500Mn 11/04/2028 5.80% (fixed rate) Repayment of existing indebtedness 80% hedged with PCCS 7% hedged with PCCS

HEDGING DETAILS

• 100% hedged with PCCS

~48% hedged with PCCS &CCS

UTILIZATION

Fully utilized in Jun 16

• Fully utilized

in Oct 15 ~EUR550 Mn utilized as of March 19

• EKN-Covered

(March 2019) US$150Mn 10-year maturity

1st Tranche: LIBOR+2.10% 2nd-3rd Tranche: 5.35%

CAPEX US$50mn utilized as of March 31

• EUR : EURIBOR + 2.20%

USD : LIBOR + 2.22% CNY : 5.51%

TURKCELL GİZLİ

28

SOLID BALANCE SHEET

NET DEBT/ EBITDA

1 Corresponds to proceeds from the Fintur transaction closed on April 2, 2019. 2 Q119 balance includes Fintur sale proceeds. 3 Excludes Turkcell Consumer Finance Company’s loan portfolio

TCF loan porfolio Net Debt2,3

TRY Mn Q4 2018 Q1 2019 Total Cash 7,419 8,888 Due From Related Parties1

• 2,230

Total Assets 42,765 46,079 Total Debt 20,156 22,867

Lease Obligations 1,414 1,410

Total Equity 16,054 17,102 Net Debt2 12,736 11,749 Net Debt3 8,565 8,108

SUMMARY

9,516 8,565 8,108 4,790 4,171 3,641

1.7x 1.4x 1.3x 1.2x 1.0x 0.9x

Q318 Q418 Q119 Net Debt/EBITDA Net Debt/EBITDA

TURKCELL GİZLİ

29 (204) (301) (255) (224) 216 Q118 Q218 Q318 Q418 Q119

FX EXPOSURE

8.9Bn TL

Nominal

34% 10% 49% 7% 50% 33% 9% 8%

CASH1 DEBT

Before Hedging

2 Including advance payments, hedging and excluding FX swap transactions for TL borrowing. Derivatives (VIOP) and forward transactions are included.

After Hedging

NET FX POSITION2

22.9Bn TL

USD MILLION

Share

1 Excluding FX swap transactions for TL borrowing.

USD EUR TRY Other

79% 21%

30

Q1 2019 RESULTS

TURKCELL GİZLİ

31

5.7 Bn TL

19.2% yoy

Q1 2019: STRONG START TO THE YEAR

178 Mn

downloads

2.3 Bn TL

40.2% margin

772 Mn TL

Fintur sale P&L contribution

0.2x impact 1.3x

Leverage ratio

STRONG TOPLINE RESILIENT EBITDA THE DIGITAL OPERATOR ASSET-LIGHT STRATEGY

Performance exceeding targets

10 K

Participants

265 K

Digital participants

TURKEY’S TECH SUMMIT

TURKCELL GİZLİ

32

Consolidated TRY Million1

Q1 2018 Q4 2018 Q1 2019 QoQ% YoY %

Revenue

4,762 5,626 5,675 0.9% 19.2%

EBITDA

2,022 2,239 2,281 1.9% 12.8%

EBITDA Margin

42.5% 39.8% 40.2% 0.4pp (2.3pp)

Net Income

501 864 1,224 41.7% 144.5%

Op.Capex/Sales2

11.1% 25.7% 15.6% (10.1pp) 4.5pp

1 TRY figures are based on IFRS. 2 Excluding license fees

TURKCELL GROUP FINANCIAL HIGHLIGHTS

• +0.4 pp QoQ improvement in EBITDA margin (+2.2 pp in Turkcell Turkey)
• Capex in line with targets

TURKCELL GİZLİ

33

2,022 2,022 2,340 2,304 2,258 2,258 2,281 914 (595) (36) (47) 23

EBITDA Q118 Δ in Revenues Δ in Direct cost of revenues** Δ in G&A exp. Δ in S&M exp. Δ in net impairment losses*** EBITDA Q119

Margin 40.2% 4,762 5,675 764 145 30 (26)

Revenue Q118 Δ Turkcell Turkey Δ Turkcell International ΔTCF* Δ Other Subsidiaries Revenue Q119

REVENUE & EBITDA

* Turkcell Consumer Finance Company, Financell ** Excluding depreciation and amortization *** on financial and contract assets

19.2%

REVENUE

TRY MILLION

• 914 mn TL yearly revenue increase in Q119; Turkcell Turkey is the main growth driver
• Exit from sports betting operations in Azerbaijan in Q418 had c.1% impact on the top-line
• New businesses such as energy contribute to nominal EBITDA growth; yet with a lower margin
• G&A and S&M under control

EBITDA & EBITDA MARGIN

Margin 42.5%

12.8%

TRY MILLION

TURKCELL GİZLİ

34

54.0 55.9 62.8 30.5 33.6 38.1

Q117 Q118 Q119

1.4% 1.9% 2.2% 2.9% 1.9%

Q118 Q218 Q318 Q418 Q119

Note: TV subscribers and the related net add figure include the total of and the change for 3.6 million of «OTT only» cumulative active users.

TURKEY SUBSCRIBERS (million) ARPU (TL) MONTHLY AVERAGE MOBILE CHURN RATE 18.7 15.0

Postpaid Prepaid

QoQ -155K↓ 73K↑ 25K↑ 720K↑

Net add

55%

• f total

mobile

OPERATIONAL HIGHLIGHTS

* The ARPU of customers who have stayed with Turkcell for at least 14 months.

• 44K↓

1.4

0.9 10K

Fixed subscribers

3.2 Mn

Lifecell subscribers

12.3%

YoY

4.1

TV

fiber ADSL

fiber cable ADSL

56 K

Superbox subscribers

19.6% 11.7%

like-for-like* growth

13.4%

Residential fiber Mobile blended (excl.M2M)

TURKCELL GİZLİ

35

LEADING CAMPAIGNS IN Q119

LEADERSHIP IN QUALITY AND EXPERIENCE

4.5 mn participants/gifts

«#DO» campaign

+9 +11 +20 +23

Q118 Q119 Points over next best Points over third best

Source: Future Bright

CUSTOMER EXPERIENCE

Turkcell Score 23

2.2 mn first-timer to our

digital services

Consumer Net Promoter Score (Points)

13.4 mn participants 140 mn gifts

Turkcell’s Shake & Win – specials for the 25th year

36

36

25.8 30.7 31.0 12.5 16.8 18.5

Q117 Q118 Q119 4.5G subscribers 4.5G compatible smartphone

2.2 2.9 3.4 4.6 5.8 7.4 3.0 4.4 5.9

Q117 Q118 Q119 Non 4.5G Users 4.5G Users Total Users

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

GROWTH ENGINE: MOBILE DATA

92% are 4.5G

subscribers

18.5 million with

4.5G compatible SPs

82% are 4.5G

compatible SPs 7.8 GB

in Mar 2019

Data consumption continued its pace with a 7.4GB user/month on average 74% smartphone

penetration

37

37

1: Refers to downloads as of Apr 25, 2019. 2: 3-MAU includes users who utilised the zero rating benefit of Dergilik magazines and newspapers via browser. 3: 3-Month active users also include IPTV

users 4: My Account is renamed as Digital Operator in 4Q 2018.

5: Transactions include subsidiary revenues. Active users include direct carrier billing, app and Paycell card customers.

Download1 3-Month Active User Service KPIs

273K 1.6Mn 36Mn

Games played

• n BiP

DIGITAL PUBLISHING2

11.3Mn 12.1Mn 1.3Mn

copies read per day

MUSIC PLATFORM

22.5Mn 3.8Mn 8.4Mn

songs streamed per day

MOBILE TV3

12.6Mn 3.6Mn 3.5Mn

TV sessions per day

PERSONAL CLOUD

11.2Mn 3.3Mn 63

docs uploaded per person / day

DIGITAL SERVICES

8.4Mn 4.5Mn 2.8Mn

search per day

DIGITAL OPERATOR4

40.7Mn 19.9Mn 28%

more ARPU

INSTANT MESSAGING

36.0Mn 10.7Mn 194Mn

messages per day

2.7Mn

digitized call experience per day

PAYMENT PLATFORM5

3.4Mn 5.0Mn 1.7Bn TL

Transaction volume in Q119

GAMING PLATFORMS SEARCH ENGINE

Unique visitor on BiP

5.9Mn

Visitor on Playcell For BackgammonGO

TURKCELL GİZLİ

38

Q1 2018 Q1 2019 YoY %

Revenues

212 242 14.2%

Net Income

40 82 106.6%

CONSUMER FINANCE

TECHFIN: NEW GROWTH AND PROFITABILITY ENGINE

124 TL average

monthly installment

95% penetration

• f loan insurance2

1,710 TL average

ticket size

2.8% cost of risk1

HANDSET FINANCING

0.4 0.4 0.3 4.4 4.2 3.6

Q118 Q418 Q119 Turkcell Contracted Receivables Financell Consumer Loans

TRY BILLION

4.8 4.5 4.0

1 per IFRS 2 in the past one year

TRY MILLION

Q1 2018 Q1 2019 YoY %

Revenues

48 60 26.0%

EBITDA

38 43 12.9%

EBITDA Margin 79.2% 70.9% (8.3pp)

TRY MILLION

PAYMENT SERVICES

39

39

TRY MILLION1

Q1 2018 Q1 2019 YoY %

Revenue 279 425

52.0%

EBITDA 93 194

108.6%

EBITDA Margin

33.2% 45.6% 12.4pp

HIGHLIGHTS

1 Figures are based on IFRS

TURKCELL INTERNATIONAL

TURKCELL INT’L REVENUE BREAKDOWN

2 Other comprises lifecell Germany, other international operations and intra-

company eliminations. Ukraine, Belarus and Turkish Republic of Northern Cyprus figures are based on stand-alone financials.

65% 19% 11% 5%

• 30% y-o-y ARPU growth
• Growing 4G subscription
• +1 mn 3-month active digital service users
• Digital tariff plan PLAY is launched

Ukraine Belarus TR Northern Cyprus

Other2

TURKCELL GİZLİ

40

7,419 7,305 8,888 8,888 2,281 (827) (1,569) 1,666 (83)

Cash Q418 EBITDA Change in operating assets/liabilities Cash flow from investing activities Cash flow from financing activities Other Cash Q119

LIQUIDITY MANAGEMENT

TRY MILLION1

Q418 vs. Q119

Fintur cash

2,230

1 Figures are based on IFRS.

TURKCELL GİZLİ

41

GUIDANCE REVISED UPWARDS

PREVIOUS

• OP. CAPEX / SALES*

TURKCELL GROUP

2019 GUIDANCE

REVENUE GROWTH EBITDA MARGIN

NEW

16% - 18% 17% - 19% 37% - 40% 38% - 40% 16% - 18% 16% - 18%

*Excluding licence fees

42

APPENDIX

• Network Dynamics
• International Business
• Regulatory
• Currency Trends

43

43

234.4 MHz

FREQUENCIES BEFORE AND AFTER 4.5G TENDER

TOTAL FREQUENCY BEFORE TENDER

Turkcell Vodafone Türk Telekom

62.0 57.0

64.8 64.8

172.4 82.8

110.2

AWARDED FREQUENCY IN TENDER TOTAL FREQUENCY AFTER TENDER

139.8 MHz 175.0 MHz

€0.3 €0.4 €0.5

• Price / MHz / Population in Turkey: €0.12

per MHz per sub cost

44

44

234.4 MHz

FREQUENCY BANDS AFTER 4.5G TENDER

Turkcell Vodafone Türk Telekom

62.0 62.0 57.0 57.0 64.8 64.8 172. 172.4 82.8 82.8 110. 110.2

139.8 MHz 175.0 MHz

Main layer for 4.5G Terminal support, capacity and coverage layer

2600 MHz 2100 MHz

1800 1800 MHz

900 MHz 800 MHz

4.5G main coverage layer 2G/3G coverage and voice layer

Mobile broadband layer for 3G 4.5G usage for mid/long term

4.5G capacity boost layer for hot spots

€0.3

€0.4

€0.5

• Price / MHz / Population in Turkey: €0.12

per MHz per sub cost

60.0 40.0 35.0 70.0 35.0 30.0 59.6 20.0 70.0 24.8 24.8 20.0 20.0 20.0 20.0

45

45

FASTEST & BEST & WIDEST

SPEED

1,200 Mbps

2018

* Source: https://gsacom.com/paper/progress-gigabit-lte-networks-2/

QUALITY

Carrier Aggregation all network The Best Experts

4x4

4x4 MIMO all network

MIMO: Multi Input Multi Output

SPEED QUALITY

46

46

DIFFERENTIATED THROUGH QUALITY

Source: IRIS Telecommunication Engineering Services, January 2019

USER EXPERIENCE

82 75 74 0-100

DATA SPEED

49 21 13 17 11 10

Download (Mbps) Upload (Mbps)

Turkcell Telco1 Telco2

47

47

5G

eMBB eMTC URLLC

Higher Capacity

100x 10x

Faster Data Rate

10x

Lower Latency

5G: MORE THAN HIGHER SPEED

48

48

49.5%

Incumbent 48.4%

Other players 2.1%

FIXED BROADBAND MARKET

6.6 6.6 6.8 7.2 7.8 8.7 9.5 0.55 1.2 1.46 1.67 1.93 2.29 2.80 0.49 0.49 0.56 0.63 0.74 0.83 0.93 10.2% 11.0% 11.5% 12.1% 13.2% 14.9% 16.3% 2012 2013 2014 2015 2016 2017 2018

xDSL Fiber Cable Penetration

Note: Company calculation based on data in ICTA Q4 2018 Report

13.4 mn

Total Subscribers

3 major

Operators

16.3%

Penetration

TURKISH FIXED BROADBAND MARKET FIXED BROADBAND MARKET BY TECHNOLOGY (MN)

FIBER SUBSCRIBER MARKET SHARE

Q4 2018

49

49

548 900 1,276 2,070

2015 2016 2017 2018

Turkcell Superonline (stand-alone) Fiber Backbone

NET REVENUE TREND 24%

CAGR 2015-2018

EBITDA TREND 39%

CAGR 2015-2018 1,719 2,429 3,210 4,076

2015 2016 2017 2018

TRY Mn TRY Mn

899 1,044 1,204 1,386

2015 2016 2017 2018

FIBER CUSTOMERS

Fiber market share (%)

50%

thousand

• 44.3 thousand km rollout
• 21 cities
• Data speed up to 10Gbps
• 42% take up rate
• Infrastructure sharing protocol signed by Turkcell, Türk Telekom,

Vodafone TR, Türksat and Telkoder in May

• Bilateral agreements to follow: 3 Mn additional homepass through

Türksat and potential for more

• A new capex model on fixed business

NEW BUSINESS MODEL ON FIXED INFRASTRUCTURE

TURKCELL SUPERONLINE

50

50

9% Digitürk (beIN) 36% Tivibu 24% D-Smart 14% CableTV 18%

IP TV Subscriber Market Share1

As s of

• f Q418

Q418

1Source: ICTA Q4 2018 Report 2Includes IP TV and OTT TV subscribers

3.6 million

Turkcell TV+ subscribers2 in Q1 2019

SUCCESSFUL IPTV SERVICES

51

51

Tower portfolio:

10,581

Turkey Ukraine Belarus TRNC 8,501 1,132 833 115

• First and only TowerCo of Turkey
• Regional player operating in 4 countries
• Long term, visible revenue stream & strong profitability
• Aim to increase efficiency by consolidating towers in Turkey

338

2018 2019E 2020E 2021E

1.60

2018 2019E 2020E 2021E

25%-30% 1.8x-1.9x

CAGR 2019-2021 Medium Term

TRY mn Note: Tower portfolio includes owned and managed towers and towers for which contract management services are provided.

GLOBAL TOWER

NET REVENUE TREND TENANCY RATIO

52

52

5% 10% 15% 20% 25% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Turkcell Group EEMEA

Source: Bloomberg Industry Data and company announcements *Excluding licence fees

Turkcell Group Average: 17.7%* EEMEA Average: 17.6%

Between 2008 and 2018

CAPEX/SALES TREND

53

53

lifecell PERFORMANCE HIGHLIGHTS UKRAINE MOBILE MARKET FACTS*

53.4m

Total subscribers

3

Operators

125%

Mobile Penetration

Ownership 100% Turkcell Ownership 100% VEON Ownership 100% MTS

*Source: Global Wireless Matrix Q4 2018 ** MTS Ukraine changed its legal name to Vodafone Ukraine with a marketing agreement

UAH MILLION

Q1 2019 YoY% FY18 YoY%

Revenue

1,416 17.2% 5,269 8.0%

EBITDA

816 61.5% 2,762 108.2%

EBITDA Margin 57.6% 15.8pp 52.4% 25.2pp

**

OPERATIONS IN UKRAINE

• Operational performance:
• 6.9 million subscribers in Q1 2019 (3 months active) with UAH 49

ARPU (up 30.0% yoy)  3.9 million 3-month active 3G and 4.5G data users

• 77% SP penetration (market leader)
• +1 million 3-month active digital service users
• First to launch 4G services in Ukraine on 2600 MHz
• 4.5G services on the 1800 MHz frequency since Jul 1st

54

54

49.4% 36.9% 13.7% KYIVSTAR VDF lifecell 2% 9% 9% 12% 17% 10% 11% 14% 17% 20% 3% 9% 14% 9%

Q118 Q218 Q318 Q418 Q119

FINANCIALS

41.8% 44.1% 44.6% 76.6% 57.6% 52.7% 54.9% 54.9% 52.7% 56.7% 55.1% 57.5% 55.8% 56.7%

Q118 Q218 Q318 Q418 Q119

Mobile Revenue Subscriber*

(*) 3 month active subscribers

Mobile Revenue Growth (in UAH)

(YoY)

lifecell VDF Kyivstar

EBITDA Margin (%)

Source: Company announcements (Q4 2018). Note: lifecell EBITDA margins in 2018 include new IFRS impacts (IFRS 9, 15 and 16)

MARKET SHARE

UKRAINE: MOBILE MARKET PERFORMANCE

49.0% 36.2% 14.8% KYIVSTAR VDF lifecell

55

55

*Source: Company calculation based on Q4 2018 results

OPERATIONS IN BELARUS

BeST PERFORMANCE

HIGHLIGHTS

BELARUS MOBILE MARKET FACTS*

11.6m

Total subscribers

3

Operators

121%

Mobile Penetration

Ownership 80% Turkcell 20% Belarusian State Ownership 51% Belarusian State 49% MTS Ownership 100% Telekom Austria

Q1 2019 YoY% FY18 YoY%

Revenue

31.9

9.2%

124.9

11.7% EBITDA

7.4

39.6%

27.9

548.8% EBITDA Margin

23.2%

5.0pp

22.3%

18.5pp

BYN MILLION

• 1.2 million 3 month-active subscribers in Q1 2019
• 4G services since September 2017 (through becloud)
• Expanding digital services footprints
• Launched its new digital offering PLAY, which includes 7 digital

services.

56

56

BELARUS: MOBILE MARKET PERFORMANCE

22% 11% 8% 8% 9% 18% 11% 8% 7% 21% 16% 17% 19%

Q118 Q218 Q318 Q418 Q119

47.3% 46.5% 6.3% MTS VELCOM LIFE :)

Source: Company announcements (Q4 2018).

Subscriber* Revenue

(*) 3 month active subscribers

47.4% 42.0% 10.7% MTS VELCOM life :)

life :) EBITDA Margin Trend* Mobile Revenue Growth (in BYN)

(YoY)

18.2% 14.4% 17.1% 38.6% 23.2%

Q118 Q218 Q318 Q418 Q119

LIFE:) VELCOM MTS

MARKET SHARE FINANCIALS

Note: life :) EBITDA margins in 2018 include the impacts of IFRS 9, 15 and 16

57

57

10% 20% 30% 40% 50% 60% 70%

Turkey Hungary Jordan UK Croatia Greece Italy Spain Egypt

Special Communication Tax (SCT) 7.5% 7.5% VAT 18% 18% Treasury Share1 15% 1% TRX fees 5%

(of net sales)

• Contribution Share to

Telecom Authority 0.35% 0.35% New subscription SCT2 (at first enrollment) TRY 65.00

• Wireless license fees

(per acquisition) TRY 27.86

• Wireless usage fees

(annual) TRY 27.86

• TAX

MOBILE FIXED TURKEY HAS THE WORLD’S HIGHEST MOBILE SERVICE TAXES3

1Under the license agreement Turkcell pays a treasury share equal to 15% of its gross revenue from Turkish GSM operations 2 Excluding M2M SIMs 3 GSMA/Turkey Report, 2016

TAXATION IN TURKEY

58

58

13.6 9.1 6.6 3.1 3.1 3.1 2.5 2.5 2.5 2.5 2.5 2.5 17.2 15.7 14.4 11.1 11.1 8.1 6.5 4.9 4.8 4.2 4.4 4.5 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

MTR -Turkcell Europe-MTR

MTR: Mobile Termination Rate Source: BEREC July 2017 report, Cullen International

EVOLUTION OF MTR

TRY kuruş per min.

MTR RATES TRYkr.

OLD Since 2013

Asymmetry

OLD Since 2013

Asymmetry

Turkcell 3.13 2.50

• 1.70

0.43

• Vodafone TR

3.23 2.58 3% 1.73 0.43

• TTKOM

3.70 2.96 18% 1.87 0.47 9%

Mobile Voice Rates SMS Rates

Turkcell MTR is 1.8x below EU

MOBILE/SMS TERMINATION RATES IN TURKEY

59

59

CURRENCY TRENDS

3.02 3.32 4.11 5.60 6.08 3.18 3.71 4.52 6.03 6.32 2015 2016 2017 2018 Q119

Average Period-End

2.73 3.01 3.63 4.76 5.34 2.91 3.52 3.77 5.26 5.63 2015 2016 2017 2018 Q119 1.59 1.98 1.93 2.03 2.15 1.86 1.96 1.97 2.16 2.13 2015 2016 2017 2018 Q119 21.79 25.56 26.64 27.32 27.41 24.00 27.19 28.07 27.69 27.25 2015 2016 2017 2018 Q119

USD / TRY EUR / TRY USD / BYN USD / UAH

60

60

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 2019 or for the medium term 2018 to 2020. 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

• perations, 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 2018 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

• therwise.

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,

• fficers, employees or agents as to or in relation to the accuracy or completeness of the information contained in this presentation or any other written
• r 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.

NOTICE

61

THANK YOU

For further information please e-mail

investor.relations@turkcell.com.tr

• r call Turkcell Investor Relations at (+90 212 313 1888)

Please download our IR App via here for iOS and here for Android mobile devices or via below QR codes.

For Android For iOS