Fact Sheet

Türk Telekom Group - 1Q 2013

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 over 75 mn growing population and increasing number of households.

Group Companies

Ownership

Overview of Türk Telekom Group

• Turkey’s leading communication and technology group; TL 3.1 bn revenue and TL 1.15 bn EBITDA generated in Q1 2013
• 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
• 45% of the total revenues in Turkish telecom market is generated by Turk Telekom Group
• Turkey’s leading fixed-voice and data provider with 14 mn access lines and 7.1 mn broadband lines
• AVEA - Turkey’s youngest and growing mobile operator with 13.7 mn mobile subscribers
• Solid dividend policy of maximum payout as defined in the Articles of Association

Consolidated Revenue - (TL mn)

Revenue Breakdown

2012 Performance and 2013 Guidance

• Solid performance in all segments leading to a top-line growth of 6.2% year on year
• EBITDA remained flat YoY excluding one off effect of voluntary retirement incentive payment
• 2013 Guidance (Consolidated)
  • 5 - 7 % Revenue growth
  • Between TL 5.1 billion & TL 5.3 billion EBITDA
  • Around TL 2.2 billion CAPEX

Fixed Line Highlights

• 12% broadband revenue growth YoY backed by 66K net subscriber growth in Q1’13 and 9% ARPU increase
• Positioned to reap benefits from penetration increase
• Strongest player in fiber with highest home-pass

KPI	Q4’11	Q4’12	Q4’12
Total Access Lines – mn	15.0	14,3	14,0
Fixed Voice ARPU – TL	22.3	22.2	22.0
Broadband Connections – mn	7.0	7.0	7.1
Broadband ARPU – TL	36.0	37.4	39.3

Mobile Highlights

• Strong start to the year in mobile business with 240K net subscriber additions, 17% YoY revenue increase, and 40% EBITDA increase YoY
• Highest postpaid to total subscribers ratio in the market
• 10% YoY growth in ARPU – Highest ARPU in the market as of Q4 2012

KPI	Q1’12	Q4’12	Q1’13
Mobile Subscribers – mn	12.9	13.5	13.7
Mobile ARPU – TL	19.9	22.4	21.9

Summary Financials

Consolidated Income Statements (TL millions)	2012	Q1’12	Q4’12	Q1’13
Revenues	12,706	2,960	3,327	3,143
OPEX	7,610	1,728	2,035	1,992
EBITDA	5,096	1,232	1,292	1,151
Margin	40%	42%	39%	37%
Operating Profit	3,400	817	851	712
Margin	27%	28%	26%	23%
Net Financial In./Ex.	(33)	160	(87)	(34)
Tax Expense	(773)	(233)	(165)	(161)
Net Profit	2,637	772	600	526
Margin	21%	26%	18%	17%
EPS - Kurus	0.75	0.22	0.17	0.15
DPS - Kurus (Gross)	0.69*
Dividend	2,413*
CAPEX	2,435	401	814	254

Consolidated Balance Sheet (TL millions)	31.03.2012	31.12.2012	31.03.2013
Intangible Assets	3,474	4,050	4,013
Tangible Assets	8,197	8,347	8,179
Other Assets	3,637	3,850	4,135
Cash and Euqivalents	1,063	961	1,429
Total Assets	16,371	17,208	17,756
Share Capital	3,260	3,260	3,260
Reserved and Retained Earnings	3,167	3,195	3,691
Interest Bearing Liabilities	5,312	6,038	6,548
Provisions for LT Employee Benefits	583	749	620
Other Liabilities	4,049	3,966	3,637
Total Equity and Liabilities	16,371	17,208	17,756

Consolidated Cash Flow Statement (TL millions)	2012	Q1’12	Q4’12	Q1’13
CF from Operating Activities	3,579	331	1,212	211
CF from Investing Activities	(1,972)	(299)	(661)	(220)
CF from Financing Activities	(1,387)	88	(556)	435
Net Change in Cash Position	220	118	(5)	426