Fact Sheet

Türk Telekom Group (As of 2012 Q1)

Türk Telekom group is Turkey’s world-class, integrated telecommunication and technology services provider offering its customers the complete range of fixed line, mobile, data, and internet services as well as innovative convergence technologies.

Turkey is one of the largest telecom markets in EMEA region with its 74 mn growing population and increasing number of households.

• Turkey’s leading communication and technology group; TL 2,960 bn Revenue and TL 1,232 bn EBITDA generated in Q1 2012.
• Number one non-bank market cap in Istanbul Stock Exchange and a member of ISE-30 and MSCI Turkey
• Privatized in 2005 and IPO’ed in 2008; a successful transformation resulting in increased efficiency, significant OPEX savings and enlarged service scope
• Strong management team with a broad range of international and sector experience building a pioneering perspective
• Extensive service and distribution networks of Türk Telekom, AVEA and TTNET providing significant opportunities
• Robust revenue and strong cash flow capacity enabling investment in promising segments and continuous growth
• One of the largest and most efficient fixed-line operators in the region
• Turkey’s leading fixed-voice and data provider with 15 mn Access Lines and 7 mn fixed broadband lines
• AVEA - Turkey’s youngest and growing mobile operator with 12.9 mn Mobile Subscribers

Q1 2012 Performance and Highlights

• Consolidated revenue growth sustained with 3% YoY growth
• Strong consolidated EBITDA margin reaching 42%
• Solid mobile business performance despite aggressive competition with 12% YoY revenue growth and 9% YoY subscriber growth
• Successful launches of fixed broadband initiatives set to lift fixed line business growth
• Continued revenue mix trend of shifting into higher growth areas
• Net Income increased 27%, supported by TL appreciation in the first quarter

Group Companies

Ownership Structure

Consolidated Revenue - TL mn

Consolidated EBITDA & Margin (TL mn)

Revenue Breakdown (Q1’12)

Fixed Line Highlights
(TL mn)	Q1'11	Q4'11	Q1'12
Revenue	2.265	2.306	2.255
EBITDA	1.277	1.116	1.152
Margin	51%	48%	51%

Fixed Line Highlights
KPI	Q1'11	Q4'11	Q1'12
Fixed Access Lines – mn	15.79	15.2	15.0
PSTN ARPU – TL	22.12	21.9	22.3
ADSL Connections - mn	6.72	6.8	7.0
ADSL ARPU - TL	36.04	36.3	36.0

Mobile Highlights
(TL mn)	Q1'11	Q4'11	Q1'12
Revenues	703	802	787
EBITDA	70	127	78
Margin	10%	16%	10%

Mobile Highlights
KPI	Q1'11	Q4'11	Q1'12
Mobile Subscribers – mn	11.82	12.8	12.9
Mobile ARPU - TL	19.13	20.5	19.9

Consolidated Income Statements (TL millions)	2011	Q1'11	Q1'12
Revenues	11,941	2,887	2,960
OPEX	6,864	1,610	1,728
EBITDA	5,077	1,277	1,232
Margin	43%	44%	42%
Operating Profit	3,501	874	817
Margin	29%	30%	28%
Net Financial In./Ex.	(891)	(121)	160
Tax Expense	(710)	(181)	(233)
Net Profit	2,069	609	772
Margin	17%	21%	26%
EPS - Kurus	0.59	0.17	0.22
DPS - Kurus (Gross)	0.54*
Dividend	1,896*
CAPEX	2,296	314	405

Consolidated Balance Sheet (TL millions)	2011	Q1'11	Q1'12
Intangible Assets	3,540	3,466	3,474
Tangible Assets	8,156	7,399	8,197
Other Assets	3,499	3,164	3,637
Cash and Euqivalents	979	1,133	1,063
Total Assets	16,174	15,162	16,371
Share Capital	3,260	3,260	3,260
Reserved and Retained Earnings	2,509	3,497	3,167
Interest Bearing Liabilities	5,346	3,756	5,312
Provisions for LT Employee Benefits	563	615	583
Other Liabilities	4,496	4,034	4,049
Total Equity and Liabilities	16,174	15,162	16,371

Consolidated Cash Flow Statement (TL millions)	2011	Q1'11	Q1'12
CF from Operating Activities	3,970	722	347
CF from Investing Activities	(2,060)	(108)	(315)
CAPEX	(2,327)	(198)	(375)
Other Investing Activities	267	90	60
CF from Financing Activities	(2,073)	(663)	86
Net Change in Cash Position	(163)	(49)	118