1

Q1 2020 Results

Q1 2020

Turkcell Group

April 29, 2020

Q1 2020 Results

Business Overview

Murat ErkanTurkcell CEO

2

3

Q1 2020 Results

Q1 2020: Strong Start to the Year

REVENUE GROWTH

17.3%

6.7Bn TL

EBITDA MARGIN

42.2%

Up 2pp yoy

TOTAL SUBSCRIBERNET ADD

614K

towards 1Mn/y target

POSTPAIDSHARE

63.2%

Up 8pp yoy

MOBILEARPU GROWTH

21.5%

Double-digit growth

RESIDENTIAL FIBER ARPU GROWTH

13.4%

• Strong growth

Solid profitability

Strong net add

2 week/limited impact of COVID-19

4

Q1 2020 Results

Note: Figures are based on IFRS. 1Excluding license fees

Turkcell Group Financials

Highlights

• Double digit revenue growth and strong operational profitability

• 2 week/limited impact of COVID-19

• Excluding the 772Mn TL transaction gain in Q119, yearly net income growth is 93%

Revenue 6,658 (0.4%) 17.3%

EBITDA 2,809 2.0% 23.1%

EBITDA Margin 42.2% 1.0pp 2.0pp

EBIT 1,437 6.5% 30.3%

EBIT Margin 21.6% 1.4pp 2.2pp

Net Income 873 15.5% (28.7%)

Opr. Capex/Sales1 12.6% (12.8pp) (3.0pp)

QoQ % YoY %Q1 2020MILLION TL

5

Q1 2020 Results

1.9%

4.5%

2.0%

1.9% 2.1%1.7%

Q1 19 Q4 19 Q1 20

TURKEY SUBSCRIBERS ARPU

MONTHLY AVERAGE MOBILE CHURN RATE

21.0

12.2

Postpaid Prepaid

QoQ 679K↑ 113K↓ 34K↑ 28K↑

Net add

Operational Highlights

23K↓

1.5

0.7

59K

Fixed subscribers

0.7

IPTV

fiber ADSL

fiber

cable

ADSL

2.3

MILLIONTL

62.870.4 71.2

38.1

45.9 46.3

Mobile blended (excl.M2M)Q1 19 Q1 20

21.5% YoY

Fiber ResidentialQ1 19 Q1 20

13.4% YoY

Q4 19 Q4 19

63%Postpaid

Share

Total

614K↑

excluding the impact of regulatory change &

involuntary deactivated lines

6

Q1 2020 Results

MOBILE POSTPAID SUBSCRIBERS

Shifting to a More Valuable Portfolio

18.718.9

19.4

20.4

21.0

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

MILLION

(155K) 215K 503K 679KNet add 984K

55.4% 55.7% 56.3% 63.2%Postpaid

share 62.2%

• Solid performance in a seasonally weak quarter

• Strong start to 2020 with 679K postpaid net adds

• Rising postpaid share is encouraging

• More secure for upsell & collection during this fragile period

• Supportive of blended ARPU growth

7

Q1 2020 Results

56

130

217

323

400

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

SUBSCRIBER TREND

23K 73K 88K 106KNet Add

~2xthe ARPU of

fixed broadband

THOUSAND

76K

Superbox«The Brand for FWA»

• Sole alternative to fiber, offering fiber-like speed

• Demand rose %125 in late Mar; doubled in the first week of Apr

8

Q1 2020 Results

• Standalone revenue growth: 29% yoy

• First enterprise customer on BiP Multicloud

• New: Digital Security Service

• Turkcell Data Management Platform: 1st phase concluded

• Efforts and campaigns in all our apps to motivate «stay-at-home»

Strategic Focus Areas: First Quarter Highlights

DIGITAL SERVICES

DIGITAL BUSINESS SOLUTIONS

TECHFIN SERVICES

• Strong topline growth continued: 42% yoy

• Secured nearly 700 new projects in Q1 2020

• Rise in demand for our services for remote working &education, security & cloud

• New city hospital inauguration on 20 April: earlier than scheduled

• Highest-ever yoy transaction volume growth in March with 146%

• Active Paycell app user growth 50%; active Paycell Card users doubled yoy

• Paycell integration with Istanbulkart mobile application

• Acceleration of payment habits into cashless methods

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Q1 2020 Results

3.44.4 4.7

7.4

10.8 11.6

5.9

9.0 9.8

Q1 19 Q4 19 Q1 20

Non 4.5G Users 4.5G Users Total Users

MOBILE DATA USAGE 4.5G SUBSCRIPTION

Growth Engine: Mobile Data

94% are 4.5G

subscribers

20 million with

4.5G compatible SPs89% are 4.5G

compatible SPs

Monthly data consumption of a 4.5G user reached to 13GB in March 2020

78% smartphone

penetration

31.0 30.7 31.4

18.5 19.2 20.4

Q1 19 Q4 19 Q1 20

4.5G subscribers 4.5G compatible smartphone

66%YoY data

usage growth

AV. GB/USER MILLION

10

Q1 2020 Results

23 22

Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

Turkcell Op1 Op2

Leadership in Quality & ExperienceCUSTOMER EXPERIENCECONSUMER NET PROMOTER SCORE (POINTS)

LEADER IN QUALITY

Source: Future Bright

• Widest: 234 MHz spectrum

• Fastest: 1.2 Gbps LTE-Advanced/5G ready

• AI-based Smart network operation

• Fiber-to-the-home: 10Gbps NETWORK

SALES CHANNEL

• 1,315 exclusive stores

• 5,200+ non-exclusive stores

• Digital channel: Turkcell website and app

LEADER IN DISTRIBUTION

11

Q1 2020 Results

16%

1 Figures are based on IFRS

Turkcell International

SUBSIDIARIES AT A GLANCE

Note: Remaining 5% comprises lifecell Germany, other international operations and intra-company eliminations. Ukraine, Belarus and TRNC local currency growth figures are based on stand-alone financials.

• 12% yoy revenue growth in local currency

• 4G user data usage: 10GB/month, ↑42% yoy

• 2% yoy revenue growth in local currency

• 4G user data usage: 11GB/month, ↑35% yoy

Lifecell Ukraine

Life :) Belarus

Revenue 560 (0.2%) 31.7%

EBITDA 250 2.5% 29.0%

EBITDA Margin 44.6% 1.1pp (1.0 pp)

FINANCIAL HIGHLIGHTS1

10%

69%

KKTCell TRNC

• 14% yoy revenue growth

• Increasing contribution of fixed & corporate business

Q1 2020 Revenue ShareMILLION TL

QoQQ1 2020 YoY

12

Q1 2020 Results

COVID-19 Impacts – Recap

• Rise in data usage in total network: 35%

• Customer acquisitions are:

• Mobile (postpaid): 35% lower• Fixed: 52% higher

• Churn:

• Mobile (postpaid): 37% lower• Fixed: 28% lower

• Accelerated demand for digital channel

• %30 more visitor• %76 more sales volume

• Digital Services

• Group video call in BiP increased 10x

• TV+ Login & session time: up by 15%

• Digital Business Solutions

• higher demand for cloud, security services

• city hospital projects accelerated & new ones

• Techfin solutions

• 30% increase in online payments

• 42% increase in DCB

• Quarantine rules apply in Ukraine and TRNC

• Stores open

• Customers are encouraged to use online channels

• Higher consumption (Ukraine):

• Voice traffic: 9%

• Data: 3%

OPERATIONS IN TURKEY STRATEGIC FOCUS AREAS INTERNATIONAL BUSINESS

Note: Impact figures compare last week of March to last week of February

RISKS

IMPACTS

• Roaming revenue

• Prepaid revenue

• SME segment and equipment sales

• Lower acquisition

• Lower handset sales

• Roaming revenue

• Lower acquisition

• Prepaid dominated markets

• Price increase limitations

• Digital Business Solutions

• deferral of projects

• collection risk

• Techfin solutions

• decline in consumer finance business

13

Q1 2020 Results

*Excluding license

2020 Guidance Revisited

REVISEDEXISTING IMPACTS

Long Term Opportunities

Techfin

Fixed Wireless Access

Faster Digitization of Service Channels

Faster Digitization of Customer

REVENUE GROWTH 10% - 12%13% - 16%

• Lower roaming revenues• Less mobility, store working hours• Lower handset sales, consumer finance• Risk at SME and equipment revenues

EBITDA MARGIN 40% - 42%39% - 42%• S&M savings • Overhead savings

OP.CAPEX/SALES* 17% - 19%16% - 18%• Revised revenue guidance• Level to preserve quality

EBIT MARGIN 19% - 21%18% - 21%• S&M savings • Overhead savings

Important notice: Revised guidance is based on a scenario where gradual normalization of pandemic related impacts starts in 3Q 2020

Q1 2020 Results

Financial Overview

Osman YılmazTurkcell CFO

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15

Q1 2020 Results

• Yearly incremental revenue generation of 1.0 bn TL in Q120

• Top-line impacted by slowdown in TCF and exit from Inteltek

• Growth excluding TCF and Inteltek: 20.8% yoy

Revenue

* Turkcell Consumer Finance Company (Financell)

5,675

6,658

905

135 (79) 22

RevenueQ119

Δ TurkcellTurkey

Δ TurkcellInternational

ΔTCF* Δ OtherSubsidiaries

RevenueQ120

17.3%

MILLION TL

16

Q1 2020 Results

• 23.1% EBITDA growth via revenue increase & effective OPEX management

• 2.0pp yoy EBITDA margin improvement driven mainly by lower S&M expenses

2,281

2,2812,797 2,797 2,799 2,809

2,809983

(467)2 54 (44)

EBITDAQ119

Δ in Revenues

Δ in Direct cost of

revenues**

Δ in G&Aexpenses

Δ in S&Mexpenses

Δ Doubtful trade

receivables***

EBITDAQ120

EBITDA & EBIT

** Excluding depreciation and amortization *** net impairment losses on financial and contract assets

MILLION TL

23.1%Margin 40.2%

Margin 42.2%

EBIT: 1.10319.4%

EBIT: 1,43721.6%

17

Q1 2020 Results

Techfin: Consumer Finance Business

HANDSET FINANCING

0.3 0.4 0.4

3.62.4 2.1

Q1 19 Q4 19 Q1 20

Turkcell Contracted Receivables Financell Consumer Loans

3.9

2.8

MILLION TLBILLION TL

• Declining portfolio due to regulation

• Potential further decline expected due to lower handset sales

• Potential increased CoR on BRSA’s resolution on deferral of payments

Revenue 162.5 (19.2%) (32.8%)

EBITDA 101.5 (21.0%) (7.2%)

EBITDA Margin 62.5% (1.4pp) 17.2pp

Net Income 64.3 (36.6%) (21.2%)

YoYQoQQ1 20202.5

18

Q1 2020 Results

69%171 Million TL

DCB transactions

Techfin: Payment Services Platform

HIGHLIGHTS

• Value focus: 82% increase in non-group revenues, representing majority of revenues

• Change of payment habits towards cashless payment has set the scene for further growth for Paycell

• Big data analytics helping Paycell to achieve micro-segment marketing

• Upcoming: wide-spread use of QR code

FOUR PILLARS OF REVENUE GENERATION

DIRECT CARRIERBILLING

BILL PAYMENT

PAYCELL CARD

MERCHANT SOLUTIONS

216%3.2 million

3rd party Bill Payments

9.3KPoints Paycell Is

Accepted

73%52.6 million TL

Paycell Card transactions

61 57 58

7764

43 44 4232 36

71%77%

72%

42%

57%

Q119 Q219 Q319 Q419 Q120

Revenue EBITDAEBITDA Margin

MILLION TL

Note: Growth figures are based on non-group transactions and indicate y-o-y growth in Q1 2020.

4.6 million Paycell 3MAU*

2.4 billion TL Total transaction volume*

* includes direct carrier billing, bill payments and Paycell Cardtransaction volumes, both group and non-group

19

Q1 2020 Results

Solid Balance Sheet

NET DEBT/ EBITDA

1 Excludes Turkcell Consumer Finance Company’s loan portfolio

TCF loan portfolio

Net Debt1

6,9757,658 8,213

2,7242,409 2,075

1.0x 1.0x 0.9x

0.7x 0.8x 0.8x

Q3 19 Q4 19 Q1 20

Net Debt/EBITDA Net Debt/EBITDA 1

Total Cash 10,975 10,239 9,212

Total Assets 45,515 45,715 45,329

Total Debt 20,675 20,306 19,500

Lease Obligations 1,544 1,533 1,482

Total Equity 17,431 18,083 18,678

Net Debt 9,700 10,067 10,288

Net Debt1 6,975 7,658 8,213

SUMMARYMILLION TL

Q3 19 Q4 19 Q1 20

20

Q1 2020 Results

Liquidity Management• Maturity risk management: Average debt maturity around 5 years. Working capital is funded mainly through bank

loans matching the maturity of our obligations.

• Liquidity: Sufficient buffer to sustain operations with:

• ~1.4Bn USD equivalent cash, mostly in hard currency

• Lower debt service until 2023 (~1Bn USD in 3 years excluding short term local currency loans)

• Available credit lines from diversified funding sources

• Potential for further slow down in consumer finance business will mean additional working capital release

PRINCIPAL & INTEREST PAYMENTS*

*Data of Turkcell Group companies, excluding TCF

253 221 271 211

1,675

335

2020 2021 2022 2023 2024+

FX Local Currency

588

221 271 211

1,675~USD1.4Bn cash covers payments until 2024

USD MILLION

21

Q1 2020 Results

(224)

216 207155

115 114

Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

FX Exposure

USD MILLIONNET FX POSITION2

2 Including advance payments, derivative transactions for hedging purposes and excluding FX swap transactions1 Excluding FX swap transactions.

9.2Bn TLNominal

52%28%

11%

9%

CASH1 DEBT

Before Hedging After Hedging

19.5Bn TL

Share

USD EUR TRY Other

88%

5%7%

36%

4%

53%

8%

22

Q1 2020 Results

Notice

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities ExchangeAct 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,EBIT and capex in 2020 or for the medium term 2020 to 2022. More generally, all statements other than statements of historical facts included in thispresentation, including, without limitation, certain statements regarding the launch of new businesses, our operations, financial position and business strategymay constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the written or oral use of forward-lookingterminology 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 suchexpectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety byreference to these cautionary statements. For a discussion of certain factors that may affect the outcome of such forward looking statements, see our AnnualReport on Form 20-F for 2019 filed with the U.S. Securities and Exchange Commission, and in particular the risk factor section therein. We undertake no duty toupdate or revise any forward looking statements, whether as a result of new information, future events or otherwise.

The Company makes no representation as to the accuracy or completeness of the information contained in this presentation, which remains subject toverification, completion and change. No responsibility or liability is or will be accepted by the Company or any of its subsidiaries, board members, officers,employees or agents as to or in relation to the accuracy or completeness of the information contained in this presentation or any other written or oralinformation 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 thispresentation totals may not foot due to rounding differences. The figures used in this presentation are rounded while percentage changes are calculated based onthe figures disclosed in the press release.

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Q1 2020 Results

THANK YOUFor further information please e-mail

investor.relations@turkcell.com.tror call Turkcell Investor Relations at

(+90 212 313 1888)

Turkcell IR Website

THANK YOU