turkcell...turkcell | first quarter of 2016 4 1 try figures are based on ifrs try figures 2 net...

Turkcell | First Quarter of 2016

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TURKCELL FIRST QUARTER OF 2016

April 28, 2016


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This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially due to factors discussed in this presentation, in our press release, in the Risk Factors section of Turkcell’s most recent Form 20-F, or in other reports and filings with the US Securities and Exchange Commission. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Please note that non-financial data is unconsolidated unless otherwise specified.

NOTICE


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BUSINESS OVERVIEW Kaan Terzioğlu Turkcell CEO


4 1 TRY figures are based on IFRS TRY figures 2 Net Income excluding FX gain/(loss) (inc tax and minority impact), monetary gain (inflation impact), interest Income on time deposit, Fintur’s profit/loss impact & one off items

Financial Highlights

CONSOLIDATED TRY MILLION1 Q1 2015 Q1 2016

Growth YoY %

Revenue 2,978 3,225 8.3%

EBITDA 927 1,002 8.1%

EBITDA Margin 31.1% 31.1% -

Net Income-Proforma2 473 544 15.1%

Net Income-IFRS 141 563 298.8%

Group

Record first quarter revenue & EBITDA


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~20%

31%-33% Margin

Turkey 8-10% Group 8-10%

EBITDA EBITDA MARGIN

OPERATIONAL CAPEX / SALES3

TURKCELL TURKEY TRY MILLION1

REVENUE

- NET INCOME-PROFORMA2

GROUP GUIDANCE

Q116 YoY

2,928 10.0%

916 31.3%

10.6% 0.2pp

538 11.4%

3,225 8.3%

1,002 31.1%

8.1% -

544 15.1%

20% 8pp

Q116 YoY

1 TRY figures are based on IFRS TRY figures 2 Net Income excluding FX gain/(loss) (inc tax and minority impact), monetary gain (inflation impact), interest Income on time deposit, Fintur’s profit/loss impact & one off items 3 Excluding license fees

Financial Highlights

Good start to the year; 2016 guidance is maintained


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Turkcell Turkey: Double Digit Growth Continued Turkcell Turkey

2,442 2,662

2,928

765 828 916

31.3% 31.1% 31.3%

Q114 Q115 Q116

Revenue EBITDA EBITDA Margin

10.0% YoY

(TRY Million)

10.6% YoY

13.9% YoY 3%

% in Turkcell Turkey

Consumer

Corporate

80%

18%

Q116 Revenue Growth

Wholesale

8.7% YoY

10.0% YoY


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Turkcell Turkey: Strong Data & Services Growth

YoY Growth

Consumer & Corporate

Revenue Breakdown

% of Turkcell Turkey

Data & Services 31.1% 42%

Other1 (including

Hardware & Software Sales) 37.0% 4%

SMS 2.9% 5%

Voice 4.1% 48%

606 638 727 740 763

187 200 213 228 240 144

159 177 179

226

Q115 Q215 Q315 Q415 Q116

Mobile broadband Fixed broadband

Services&Solutions

YoY

28.4%

25.8%

Data & Services Revenues TRY Million

1,117

937 997

1,147 1,229

As of Q116

57.2%

31.1%


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34.3 33.3

15.5 16.7

45% 50%

Q115 Q116Total PostpaidPostpaid (%)

Continued Focus on Value

1,272 1,582

776 935

Q115 Q116Total Fiber

99

268

Q115 Q116IPTV

Mobile (million) Fixed (thousand) TV (thousand)

124K 36K 44K

Smartphone (million)

13.2 16.6

42%

55%

Q115 Q116Number Penetration

514K

Postpaid Fiber IPTV Smartphone Net Add

QoQ

YoY 1.2M 159K 169K 3.4M


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29%

42% 30%

Single Play

Double Play

Multi-play with TV36%

47%

17%

Single Play

Double Play

Triple Play

Mobile

Increasing Multi-play Fiber Residential

Subscriber Breakdown* Subscriber Breakdown**

ARPU (TRY) Q116 YoY Growth

Mobile Blended 24.7 8.8%

Postpaid (excl. M2M) 41.7 2.2%

Prepaid 12.4 9.7%

ARPU (TRY) Q116 YoY Growth

Fixed Residential 50.3 6.8%

*Breakdown among mobile voice users which excludes subscribers who do not use their line in the last 3 months **Fiber residential subscriber breakdown revised and Multi-play with TV includes internet and TV users which was shown in double play in previous presentations


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Integrated Call Center Single call center & My Account app

Uninterrupted Connection 4.5GB mobile internet until XDSL installation

No installation Costs No charge for fixed line installation

Single Invoice One and only in Turkey

First Real Converged Offers

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10

6 4

1000 MIN 500 MIN

5GB 5GB 1GB

50 Mbps Unlimited (75 GB)

TRY129 TRY109 TRY89 TRY79

GB Mobile internet

GB

GB GB

5GB 5GB ∞


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INSTANT MESSAGING

7.5M download As of April

SPORTS


PERSONAL CLOUD


MUSIC


DOWNLOAD (Million) DOWNLOAD (Million) DOWNLOAD (Million)

679 558

342 211

165

Q116

Q415

Q315

Q215

Q115

TURKCELL TV+

~700K subscribers As of April

2.0 1.6

1.1 0.9

0.6

Q116

Q415

Q315

Q215

Q115

2.5 2.3

2.0 1.2

0.8

Q116

Q415

Q315

Q215

Q115

5.6 5.2

4.1 3.5

3.0

Q116

Q415

Q315

Q215

Q115

7.1 4.8

1.9 1.4

0.5

Q116

Q415

Q315

Q215

Q115

SUBSCRIBERS (000)

Download numbers are cumulative BIP download numbers include total of BIP 1.0, 2.0 and 3.0

Continued Focus on Strategic Services

"All-Access" "All-Access" "All-Access" "All-Access" "All-Access" in Q2

DOWNLOAD (Million)


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• Rich product & service portfolio

• Highest data packages (up to 50GB)

• «10 principles» for customer satisfaction

• Largest frequency

• 375 Mbps speed at launch

• >70% population coverage

New Era Starts with 4.5G

42% smartphones are

4.5G enabled

22% 4.5G data traffic share

Highest Capacity & Speed Best Experience

62.0 64.8 57.0

172.4 110.2

82.8

Turkcell TT Vodafone

Before 4.5G tender 4.5G tender

234.4 MHz

139.8 MHz

175.0 MHz 16%

4.5G penetration in subscriber base*

Total

* share of customers with 4.5G compatible devices and SIM cards in total subscribers exc. M2M


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Turkcell International: Returned to Growth & Profitability

17%

UKRAINE

BELARUS

65%

% in Turkcell International

16%

NORTHERN CYPRUS

31.4%

1.7%

3.2%

Revenue Growth (in local currency)

EBITDA Margin

34.8%

6.9%

30.7%

in UAH

in BYR

in TRY

-656

109

4 58

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-38.0%

-23.6% -22.9%

-12.0%

2.1%

Turkcell International (TRY Million)

Q115 Q215 Q315 Q415 Q116

Revenue 193 205 235 224 197

EBITDA Margin 27.5% 27.2% 29.6% 30.2% 27.2%

Net Income

Revenue

Growth YoY


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FINANCIAL OVERVIEW Murat D. Erden Turkcell CFO

NOTICE:

Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified.

All non-financial data are unconsolidated, prepared in accordance with IFRS and expressed in US$ and/or TRY.

The figures used in this presentation are rounded while percentage changes are calculated based on the figures disclosed in the Q1 2016 result announcement press release.


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2,978

3,225

265

4 (22)

RevenueQ115

Δ in Turkcell Turkey

Δ in Turkcell International

Δ in Other Subsidiaries

RevenueQ116

8.3%

TRY MILLION

Turkcell Group: Revenue & EBITDA Development REVENUE

927 1,002

247 (129)

(38) (5)

EBITDAQ115

Δ in Revenues

Δ in Direct cost of

revenues*

Δ in G&A exp.

Δ in S&M exp.

EBITDAQ116

TRY MILLION

8.1%

EBITDA

* Excluding depreciation & amortization


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141

563 14 (43)

(80)

693

91 (253)

Q115 Δ in EBIT Δ in Interest Inc./Exp.

Δ in Equity in Net Inc./Loss

Δ in FX Gain/Loss

Δ in Taxation Δ in Other Inc/Exp. Q116

Turkcell Group: Net Income Development TRY MILLION

∆ in EBITDA 75 ∆ in D&A (61)

∆ in non-controlling interest (295) ∆ in other inc/exp 43


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Turkcell Group: Balance Sheet Highlights

TRY MILLION Q1 2015 Q4 2015 Q1 2016

Total Cash 8,174 2,919 2,522

Total Assets 23,978 26,207 26,175

Total Debt 4,127 4,214 4,028

Net Debt/(Cash) (4,046) 1,295 1,506

Total Equity 12,927 14,419 14,902

SUMMARY BALANCE SHEET

2,919 2,522

1,002 (738) 172 (145) (491) (195)

Q415 EBITDA Capex* Net intincome

Net chg in debt Regulatory fees Other Q116

CASH DEVELOPMENT

* Including operational and non-operational Capex


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86%

14%

Foreign Currency Local Currency

81%

19%

Foreign Currency Local Currency

Debt Breakdown Q1 2015

TRY 4,127 mn

TRY 4,028 mn

Turkcell Turkey 54% 46% 90% 10%

lifecell 94% 6% 0% 100%

BeST 100% 0% 0% 100%

Q1 2016

(5,334)

1,295 1,506

(1.4x)

0.3x 0.4x

2014 2015 Q116

Net Debt (TRY mn)

Net Debt/EBITDA

NET DEBT/EBITDA


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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


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APPENDIX


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Summary Income Statement As Per CMB1 Financials

1 Capital Markets Board of Turkey 2 Depreciation and amortization is included

Summary income statement Q1 2015 Q4 2015 Q1 2016 YoY (%) QoQ (%)

Revenue 2,978 3,335 3,225 8% (3%)

Direct Cost of Revenues2 1,828 (2,054) (2,018) 10% (2%)

S&M (476) (493) (481) 1% (2%)

G&A (141) (166) (179) 27% 8%

EBITDA 927 1,058 1,002 8% (5%)

EBITDA Margin 31.1% 31.7% 31.1% - (0.6pp)

Net Income 142 585 563 298% (4%)

(TRY MILLION)


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Consolidated Balance Sheet

Consolidated Balance Sheet 1Q 2015 4Q 2015 1Q 2016 YoY (%) QoQ (%)

Cash & Bank 8,174 2,919 2,522 (69%) (14%)

CURRENT ASSETS 13,363 8,795 8,645 (35%) (2%)

Fixed Assets, Net 8,564 15,104 15,272 78% 1%

Other Long Term Assets 2,051 2,308 2,258 10% (2%)

TOTAL NON-CURRENT ASSETS 10,615 17,412 17,530 65% 1%

TOTAL ASSETS 23,978 26,207 26,175 9% 0%

S/T Debt 3,578 726 655 (82%) (10%)

TOTAL CURRENT LIABILITIES 9,742 6,304 5,759 (41%) (9%)

L/T Debt 550 3,488 3,373 514% (3%)

TOTAL NON-CURRENT LIABILITIES 1,309 5,484 5,514 321% 1%

MINORITY INTEREST (530) 64 66 (112%) 3%

Share Capital 2,200 2,200 2,200 - -

TOTAL EQUITY 12,927 14,419 14,902 15% 3%

TOTAL EQUITY AND LIABILITIES 23,978 26,207 26,175 9% 0%

(TRY MILLION)


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2.54 2.90 3.02 3.22 2.94 2.82 3.18 3.21

2013 2014 2015 1Q16

Average Period-End

Currency Trends USD / TRY EUR / TRY

USD / BYR USD / UAH

1.91 2.19 2.73 2.92

2.13 2.32 2.91 2.83

2013 2014 2015 1Q16

8,883 10,255 15,917 20,552

9,510 11,850 18,569 20,133

2013 2014 2015 1Q16

7.99 11.87

21.79 25.77 7.99

15.77 24.00 26.22

2013 2014 2015 1Q16

turkcell...turkcell | first quarter of 2016 4 1 try figures are based on ifrs try figures 2 net...

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