V. International Istanbul Insurance Conference3 – 4 October 2013

Intermediaries Roles on Improving Risks

1

2www.koc.com.tr

We have the right size to benefit from economies of scale…

Best Proxy to the Turkish Market - Winning Through Continuous Growth

Total Sales / GDP

Total Exports / Turkey’s Exports

Total Share in ISE Market Cap.

9%10%

16%

As of year-end 2012

…with unrivaled competitive advantages to differentiate.

We are the best proxy to the growing Turkish market…

Largest distribution and after-sales network Largest customer database (strong CRM capabilities

for up/cross-selling) Leading brands and strong recognition Optimum portfolio diversification (Resilience

against sector and geography-specific risks - Use of early warning indicators)

…with leading positions in low-penerated markets.

Market leader or close second in every business we operate

Long-standing international partnerships Strong growth potential in line with increasing

penetration levels Focus on core sectors with large investments

promising for maximum returns

1980-85 1985-90 1990-95 1995-00 2000-05 2005-11 2010-12

5 63 4

5 4 5

1517

5 6

1112

16

GDP Growth % (CAGR)

Koç Growth % (Consolidated Revenues Constant Prices - CAGR)

3www.koc.com.tr

Continuous Leadership - Setting the Benchmarks in Core Sectors

Energy

Main CompaniesTüpraş* / Aygaz* / Opet / Entek

International AlliancesAES Corporation

Domestic Market Position – Market ShareSole petroleum refiner in Turkey#1 in LPG distribution – 29%#2 in petroleum products distribution – 19%

* Listed companies

OthersMain CompaniesTat Konserve* (Food) / Koçtaş (DIY Retailing) / Marmaris Altınyunus* (Tourism) / Koç Sistem (IT)

Main companiesFord Otosan* / Tofaş* / Türk Traktör* / Otokar*

International AlliancesFord Motor Co. / Fiat Auto S.P.A.Case New Holland

Domestic Market Position – Market Share#1 in total automotive – 27%#1 in passenger cars – 17%#1 in commercial vehicles – 49%#1 in farm tractors – 50%#1 in automotive retailing

Automotive

Main CompaniesArçelik*

International AlliancesLG Electronics (Air conditioner manufacturing)

Domestic Market Position – Market Share#1 in refrigerators, washing machines, dishwashers and ovens – 50%#1 in TVs and air conditioners

Consumer Durables

Main CompaniesYapı Kredi Bankası*

International AlliancesUniCredit

Domestic Market Position – Market Share#4 in total banking assets among private banks#1 in credit cards – 19%(outstanding volume)#1 in leasing – 17%#1 in factoring – 15%#2 in investment funds – 17%

FinanceAutomotive

4www.koc.com.tr

Koç Holding : Strongest Beneficiary of the High Growth Environment and Strong Profitability Despite Global Turmoil

Revenues – Consolidated-US$bn EBITDA – Consolidated-US$bn

2009 2010 2011 2012

2.8

3.43.9

3.1

Operating Profit – Consolidated-US$bn

2009 2010 2011 2012

2.2

2.7

3.3

2.5

2009 2010 2011 2012

29.0

35.9

44.947.32009-2012 CAGR : 18%

2009-2012 CAGR : 3,5%

2009-2012 CAGR : 3,5%

5www.koc.com.tr

Energy30%

Automotive19%

Durables19%

Finance29%

Other3%

High Resilience Against Risks – Well Diversified Portfolio

Our diversified portfolio enables us to balance out cyclicalities among different sectors

EBITDA Breakdown – 2012

Our increasing geographic diversification enables us to reduce country-specific risks

Americas4% 7%

Europe77% 56%

Asia12% 20%

Africa7% 10%

International Sales – 2007 to 2012 Regional Breakdown

6www.koc.com.tr

One of the only two companies in Turkey with investment grade higher than Turkey's Sovereign Rating

Turkey's Sovereign Rate is BB+

7www.koc.com.tr

• Responsible for insurance needs for the entire Koç Group in close cooperation with KH risk management and group companies

• Active in all lines of business

Established in 1992 as a part of Ram Foreign Trade Company

Integrated into Koç Allianz, then a JV company

Standalone company immediately following exit from Koç Allianz

Restructured to serve the needs of entire Group

• Acts as an inhouse broker• A major insurance buyer• Access to international markets

8www.koc.com.tr

Tüpraş – Turkey’s Sole Refining Company

4 refineries with 28.1 MT total capacity

One of the most complex refineries in the Mediterranean. Nelson Complexity: 7.25

Among the most profitable refineries in Europe and the U.S. :

- Operational flexibility

- Optimum production and sales policy

- Energy efficiency programs

~70% of Turkey’s total storage capacity

7th largest refinery in Europe and

30th largest in the world

Provides 65% of domestic fuel demand

Integrated refining company with downstream operations

Well-positioned refineries Diversified supply base Shift to higher margin products

İzmit11 MTNC: 7.78

İzmir11 MTNC: 7.66

Kırıkkale5 MTNC: 6.32 Batman

1.1. MTNC: 1.83

Iran : 7.41 MT

Russia : 2.88 MT

S. Arabia : 1.80 MT

Turkey : 2.50 MT

Iraq : 2.06 MT

Kazakhstan : 2.21 MT

2005 2011

Product Yields

70.3

29.7

66

34

White products Black products

www.koc.com.tr

Technical Summary of Tupras Refineries

İzmit İzmir Kırıkkale Batman

DescriptionMedium

complexity, 3 CDUs

Medium complexity,

2 CDUs

Medium complexity,

1 CDU

Simple Asphalt Refinery

2 CDUs

Cracking Units FCC, HCU FCC, HCU HCU -

Capacity, mn ton /annum 11.0 11.0 5.0 1.1

Process Licences Include

Kellog, UOP, Shell,

Comprimo, Unocal

Neftechim, Villas, Texaco, UOP, Lummus

BP

Petrolite, UOP, IFP, Merichem

and Parsons

Parsons, UOP Foster

Wheeler

Nelson Complexity 7,78 7,66 6,32 1,83

Tank Capacity, million m3 2,2 1,9 1,2 0.205

10www.koc.com.tr

SGS Operational Excellence Program

Management of Change

Procedure & Standards

HAZOP Studies

Process Safety Leading & Lagging Metrics

Process Safety Audits

Fire Fighting

Proactive HSE Approach

Permit to Work System

Emergency Response & Preparedness

Full surface tank fire project

Fixed foam systems

Pre-incident planning

Fire fighting equipment

Health Risk Assessment

Risk Management Activities in Tüpraş Refineries

Job Hazard Analysis

Learning from incidents

Near miss reporting

Oil spill emergency response

1999 Earthquake post work

SGS Program

• Just after the privatization, Tupras made a three year agreement with SGS to improve all critical processes.

• SGS Consultant Team which consisted of all the disciplines visited refineries and worked on the Areas For Improvements (AFI’s)

• Tupras decided to study on the AFI’s and implement all the improvements to all refineries.

• Tupras assigned focal points for the project in all refineries and HQ.

• Second phase of the project started in 2010 and will last for another 3 years.

www.koc.com.tr

SGS Operational Excellence Program

Hydrocarbon Margin• Energy Efficiency• Economics & Scheduling• Process Optimization

Integrity and Reliability• Risk and Reliability

Management• Daily Maintenance

Planning• Turnaround Management

Health, Safety and Environment•Risk Assesment•HSE Culture• Incident Reporting, •Hazards and Effects•Contractor Management•PTW•Emergency Preparedness•HSE Competency Assurance•HSE MS Review

•The first phase of the project has contributed $244 Million (2007 – 2009) •The second phase of the project has contributed $ 18 Million to the bottom line up to now (2010 - 2011). (The second covers all the above items except Economics and Scheduling.)

Recent Performance

Hydrocarbon management Operations & Maint. Organization & Culture

Supp

ly &

dis

trib

ution

HSE

2007 2008 2009 2010

Tracking& KPI’s

PTW-JHA

HEMP

Leadership and Commitment

HSE Critical Activities and Competencies

Root cause analysis

Incident Investigations

HEMP & ALARP developments

MOC

Equipment management

Devoloping HEMP

Proactive HSE

Audit & Review

Technical Safety Training

We are here

Technical Safety Reviews

SGS Recommendations and Post-Work

Permit to work

Emergency Preparedness

HSE Competency Assurance

HSE MS Review

2011 2012

Management of Change

HAZOP

Permit to work

Facility siting

2013

Seveso II Compliance (Hazardous Equipment Selection, Fault Tree+Event Tree Analysis, QRA, Emergency Response Plan Preparation for Selected Scenerios)

Near Miss Reporting

All near misses are reported and their root cause determinations and necessary actions are followed in a program called ‘OSAR’.

Real and potantial risk assessment is done in the program and according to the RA result the technique for investigation is determined.

After investigation, investigation report is uploaded to the system including the necessary actions to be taken.

Near Misses and Unsafe Acts

  İzmit İzmir Kırıkkale Batman Tüpraş

No. of Near Misses and Unsafe Acts

2012(6 Months) 590 239 218 143 1,190

2011 1,056 724 276 183 2,239

No. of Near Misses

2010 466 385 314 252 1,417

2009 324 308 82 161 875

2008 142 67 88 39 336

2007 199 134 224 176 733

16www.koc.com.tr

Engineering Surveys & Reporting

17www.koc.com.tr

Recommendations

Insurance Programmes

Insurance Programme

Internal Assessment• Losses• Risk Management Studies• Developments & Changes

of Risk Appetite and Environment

Cooperation with International Reinsurance Broker• Engineering Surveys• Recommendations• Status of RC• Valuation of Assets• Loss estimations

Placement Strategy• Review of Coverage• Changes of Limits • Improvements• Structure of insurance

programme• Players & Markets

Roadshow

Placement

V. International Istanbul Insurance Conference3 – 4 October 2013

Thank you !!

19