Petrol Ofisi. Company Presentation Results. February 23, 2011

Transcription

1 Petrol Ofisi Company Presentation Results February 23, 2011

2 Disclaimer Petrol Ofisi A.Ş. ( Petrol Ofisi ) has prepared this presentation (the Presentation ) for the sole purpose of providing information relating to Petrol Ofisi (the Information ). The contents of this Presentation is based on public information and on data provided by Petrol Ofisi management. No reliance may be placed for any purposes whatsoever on the Information contained in this Presentation or on its completeness, accuracy or fairness. The Information in this Presentation is subject to verification, completion and change. No representation or warranty is made by Petrol Ofisi or the Shareholders or any of their respective advisers or any of their representatives as to the accuracy or completeness of the Information and no liability is accepted by any such person for any such Information or opinion or for any loss howsoever arising from any use of this Presentation or the Information. This Presentation and/or the Information is confidential and cannot be copied, disclosed or distributed to any person and is being provided to you solely for your information. This Presentation and/or the Information cannot be distributed or disseminated into Turkey. This Presentation and/or the Information do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Petrol Ofisi, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. In the UK this Presentation is being made only to and is directed at (a) persons having professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the Order ) or (b) high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order (all such persons together being referred to as relevant persons ). Any person who is not a relevant person should not act or rely on this Presentation or any of its contents. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigations and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in an offering circular published in relation to such an offering. All statements other than statements of historical facts included in this Presentation, including, without limitation, those regarding our financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to our products), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate. The forward-looking statements in this Presentation speak only as at the date of this Presentation. 2 POAS YE10

3 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 3 POAS YE10

4 A New Playing Field Deregulation and Price Liberalization New Petroleum Market Law Increasingly Controlled Environment New Rules New Playing Field Obligation to hold a license Import liberalization National marker Rental & Usufructs agreements restricted with 5 years by Competition Board Fully accredited laboratories Station automation 20 day national stock obligation Vertical integration is allowed Market share of a distributor < 40% Increased levels of competition triggering consolidation Number of players increased from 21 as of YE04 to 52 as of YE10 Illegal fuel trading has considerably diminished The sector as a whole became more conscious of legal obligations Compliance had to be placed on the top of the agenda The leader of the sector took the lead in the new playing field Petrol Ofisi supported the new regulation from day one The Company was constantly in dialogue with the regulatory bodies 4 POAS YE10 communicating the difficulties and the problems the sector was coping with

5 Market Snapshot REFINER 1 refiner 4 refineries mio tons of crude processed, 69.6% CUR* mio tons of production* mio tons of total sales domestic 4.80 export * DISTRIBUTOR 52** distributors Top 5 accounting for 85% of the market 5 mio m 3 of storage capacity stations 12,887** stations Dealer owned Dealer operated No white flags Dealer contracts recently limited down to 5 years PRICING 64% of the gasoline pump price is composed of tax (SCT+VAT) Adjusted in line with refinery prices & currency fluctuations Gasoline USD 2.50 / lt Diesel USD 2.05 / lt 5 POAS YE ** EMRA data by

6 Best Player in the New Playing Field - Widest Network, Highest Market Shares Leading Leading Energy Energy Force Force Owing Owing to to its its Extensive Extensive Distribution Distribution Network, Network, Innovative Innovative Product Product Offerings Offerings and and High High Quality Quality Service Service Diesel Market Share 76% 59% 29% 27.9% 27.1% Gasoline Market Share 69% 46% 20% 23.5% 23.9% Number of Distribution Co PO Sales Volume * 6.86 mio tons of fuel products 8.25 mio tons of fuel products 6.51 mio tons of fuel products 5.16 mio tons of fuel products 4.77 mio tons of fuel products Number of PO Stations n.a. 5,424 4,500 3,008 2,396 6 POAS YE10 Source: GDPA for , Petroleum Industry Association for 2009 and 2010 * Gasoline + Gasoil + Kerosene+ Black Products

7 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 7 POAS YE10

8 Turkey, a Gateway to the Major Global Sources of Energy A bridge bridge between between east east and and west, west, connecting connecting the the leading leading energy energy suppliers suppliers and and consumers consumers Oil Pipelines Kirkuk Ceyhan Iraq s largest export line 50 million tons capacity per annum Baku Tbilisi Ceyhan Decreasing transportation and financial costs 50 million tons capacity per annum Ünye Ceyhan Ceyhan to become energy hub with new refineries and pipelines 70 million tons capacity per annum Natural Gas Pipelines Nabucco Major alternative route for gas to EU to be partially operational by 2013 with an initial pipeline capacity up to 8 bcm Construction will end in 2017, when the maximum capacity will reach 31 bcmy Turkey Greece Italy Turkey Greece part became operational in December 2007 Undersea link between Italy and Greece will be ready by 2012 Estimated capacity: 13 bcm per annum 8 POAS YE10

9 Energy Sector: Changing Composition of Consumption Considerable Considerable increase increase in in oil oil demand demand Turkish Primary Energy Consumption (mio ton) 30 Oil Demand (mio ton) Oil Gas Coal Hydro Turkish primary energy consumption reached 93.0 mio tons with 8.4% decrease in 2009 Natural gas had the leading share in energy consumption in 2009 with 31.09%, followed by oil with 31.01% and by coal with 29.21% share In 2009, oil consumption decrease by 6.5% while natural gas consumption decrease 10.6% CAGR of oil consumption for the period has been 1.9% compared to 19.52% CAGR of natural gas 9 POAS YE10 Source: BP Statistical Review of World Energy

10 Market Dynamics Slight Slight demand demand increase increase while while markets markets recover recover from from crisis crisis Gasoil (mio m 3 ) CAGR: 4.20 % Gasoline + Auto LPG** (mio m 3 ) CAGR: (0.62) % Black Products (mio ton) Lubricants (mio ton) 5.9 CAGR: (15.46) % CAGR: 1.44 % POAS YE10 Source: Petroleum Industry Association.

11 Market Volume Composition Gasoil Gasoil and and Auto Auto LPG LPG demand demand grew, grew, whereby whereby total total market market volume volume for forbelow mentioned mentioned products products has has shrunk shrunk by by 2.5% 2.5% in in YE10 YE10 YE09 YE % 13,468,245 Gasoil 13,792,517 (43.9) % Black Products 1,917,212 1,074,779 Gasoline 2,300, % Auto LPG 2,500,000 2,235,982 (7.7) % Gasoline 2,064,342 Auto LPG 11% 11% Gasoil 12% 13% 67% 70% 10% mio tons 19.43mio tons 6% Black Products 11 POAS YE10 Source: Petroleum Industry Association for Gasoline, Diesel, Black Products and Auto-LPG

12 Petrol Ofisi Leading the Market Black Products Gasoil Gasoline Auto-LPG 49.4% 27.1% 23.9% 15.3% 50.6% 72.9% 76.1% 84.7% Others Others Others Others 12 POAS YE10 Source: Petroleum Industry Association,

13 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 13 POAS YE10

14 Company History FOUNDATION PRIVATISATION SPO PRIVATISATION MERGER TENDER OFFER PRIVATE PLACEMENT SHAREHOLDER STRUCTURE TENDER OFFER PRIVATE PLACEMENT STRATEGIC PARTNERSHIP ACQUISITION MCAP Established in 1941 as a State Economic Enterprise Taken into Privatization Program in % of PO shares acquired by IsDogan Petroleum Investments Inc. for US$ 1.26 billion in July % of total shares owned by PA were publicly offered and privatized as of March 2002 In July 2002, the remaining 25.83% shares held by PA were sold to IsDogan, which already owned 51% of the Company IsDogan, owner of 82% of PO shares, merged with PO in December 2002 In Nov. Dec. 2002, IsDogan increased its share to 96.3% through a tender offer In December 2002, 14% of the shares were transferred to Isbank and Dogan Holding 6.7% of PO shares were sold to institutional investors in February 2005 Isbank s PO shares (44.1%) were acquired by Dogan Holding in September 2005 A tender offer was carried out by Dogan Holding between October 14 31, % of PO shares were sold to institutional investors in January 2006 Free float after the tender is % % of shares were sold to OMV in March 2006 OMV acquired 54.14% of Petrol Ofisi shares and increased its stake from 41.58% to 95.72%. As of December 31 th, 2010, Petrol Ofisi s MCAP is US$2.48 bio 14 POAS YE10

15 Shareholder Structure OMV ENERJĐ HOLDĐNG A.Ş. Free Float & Others OMV AKTIENGESELLSCHAFT 54.14% 4.28% 41.58% Erk Petrol 99.96% PO Arama Üretim 99.96% Marmara Depoculuk % KIPET 52.00% PO Alternatif Yakıtlar 99.89% PO Gaz Đletim 99.75% PO Akdeniz Rafinerisi 99.99% Fuel Marketing E&P Storage Facility Fuel Marketing LNG Marketing LNG Transport Refining 15 POAS YE10

16 OMV became clear majority shareholder of Petrol Ofisi A.Ş. One of Austria s largest listed industrial companies and the leading energy group in the European growth belt. Refining and Marketing Exploration and Production Gas and Power 20% market share in 12 CEE and SEE markets and 27% in Turkey Five refineries with 25.8 mn t/y capacity and a network of 4,772 filling stations including Petrol Ofisi Stake in leading Turkish marketing company Petrol Ofisi increased to 95.72% in Q4/10 Integrated petrochemical business and 36% stake in Borealis Oil & gas production is running at a total of about 318,000 boe/d in 2010, proved reserves (P1) approximately 1.15 bn boe International E&P portfolio spread across 16 countries Focus on OECD and areas from which OMV markets can be supplied Shipping of approx. 90 bcm of natural gas to Western Europe in 2010 Operation of storage facilities with a capacity of 2.4 bcm Gas sales of 18 bcm in CEE, SEE and Turkey Long-term Russian and Norwegian supply contracts and access to equity gas Under its 3plus strategy, OMV combines the strengths of its E&P, G&P and R&M business units in order to ensure that it provides the best possible supply service to its three core markets of Central and Eastern Europe, Southeast Europe and Turkey. OMV uses the synergies that result from the combination of these strengths to extend its supply chain from oil and gas through to electricity and eventually renewable energy. 16 POAS YE10

17 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 17 POAS YE10

18 Business Lines E&P 57% of diesel imported in YÊ10 Largest Storage Capacity Largest Retail Network 1,215,000 m m 3 Retail in stations 26.75% share in the Black Sea Natural Gas Project Supply Logistics 1,641 m 3 /st. avg. throughput C&I State Companies Private Companies Local TUPRAS Imports Russia, Greece, Malta, Israel, Italy, Latvia, Ukraine, Libya, USA and Tunisia DDS Direct Delivery System 12 Terminals (10 fuel, 2 LPG) Others #1 in Aviation Marine Lubricants Gasoline LPG Gasoil Products Jet Fuel Black Products LNG Lubricants Production 18 POAS YE10

19 Accounting for 20.3%* of Turkey s Petroleum Product Storage Capacity Petrol Petrol Ofisi Ofisi has has the the strongest strongest logistics logistics network network in in Turkey Turkey Fuel Fuel Terminals Terminals and and 2 2 LPG LPG Terminals Terminals m 3 3 Large capacity gives the Company the flexibility to; Distribute products more efficiently than competition Access multiple sources of supply Easily manage the national stock liability Import higher percentage of products than competition Why import? CIF vs. FOB differential freight advantage Lower product premiums Tax float benefit All terminal laboratories are accredited by Turkish Accreditation Agency Currently 9 PO terminals are certified for running the mandatory EMRA Group II fuel tests, marking a first for a Turkish distribution company Supply Department successfully protects the operational stock value against the price volatility in global markets by optimizing potential market risks within VaR limits Haramidere Aliağa (2) Derince Antalya Kırıkkale Aksaray Mersin Samsun Đskenderun Trabzon New Investment: Marmara Storage Facilities Batman* The new Marmara Eregli Terminal will have a storage capacity of 225,000 m 3 The terminal will have access to Marmara Sea which will enable PO to import gasoil via 50,000 DWT vessels and increase its import capacity The construction of the terminal will be completed by July POAS YE10 * According to EMRA, total petroleum products (fuel + LPG) storage capacity figure is 5, m3 for Turkey as of

20 PO Land Transportation Activities Petrol Ofisi has launched Direct Delivery System (DDS) for fuels in 2002, to maximize product quality DDS utilizes a dedicated latest technology fleet of 140 road tankers in the distribution of fuel products. LPG distribution is carried out with a dedicated fleet consisting of 151 road tankers to around retailers. A fleet composed of 4 semi trailers is utilized for PO Aksaray LPG Terminal supply. LNG distribution is carried out with a dedicated fleet consisting of 36 cryogenic road tankers to approximately 150 customers. Aviation fuels transportation is carried out with a dedicated fleet of 87 road tankers with special tank interior covering for fuel quality assurance for 35 aviation supply units. Lubricants is transported to customers in tankers carrying bulk, in trucks carrying packaged products, by trucks operating in Direct Delivery System for lubes or through express distribution. Fuel to Border Stations is transported by a fleet of 12 dedicated semi trailers. PO Batman Terminal supply is carried out by a fleet of 15 dedicated semi trailers from PO Đskenderun Terminal and/or PO Mersin Terminal. Transportation business is complying with ADR standards In 2010, DDS deliveries reached to 420k m3 along with auto-lpg deliveries undertaken by PO to supply PO/gaz stations, amounting to 380k tons. 92k tons of LNG is delivered to commercial customers. C&I customer deliveries reached to 125k tons and around 85k tons lubricants is transported to lubes dealers and customers. 130k tons of fuel is carried to Border Stations and 52k tons of fuel is transported to PO Batman Terminal. 20 POAS YE10

21 Retail Only Company with Nationwide Coverage Turkey s largest nationwide network 2,396 stations as of December 2010 Number of Stations* December , ,315 v 1, Network Rationalization - Divesting stations with low throughput and efficiency and investing in new stations in Preferred Market Areas with high throughput and high potential to; Generate higher throughput Increase efficiency Improve flexibility in adapting to changes in the market Increase presence in 3 big cities 474 Others** 1,767 * EMRA ( ) for Opet, Shell-Turcas, BP, Total and for Others and PO for PO and Erk ** Others include Akpet, Lukoil, Moil, Alpet, Petline Average annual throughput has more than doubled since year-end 2000, reaching 1,641 m 3 21 POAS YE10

22 Key Success Areas of Retail Creating Creating value value for for our our customers customers by by delivering delivering high high quality, quality, differentiated, differentiated, value value added added products products and and services services in in all all retail retail outlets outlets at at all all times. times. Differentiate Fuels Attract & Keep Customers Upgrade Stations & Services OBJECTIVE To To create unique brand positioning of of innovative leadership and and high high quality fuels fuelsprovider and and sustain this this position. OBJECTIVE To To maximise customer satisfaction by by offering differentiated products and and services, develop customer segmented solutions and and retention efforts and and improve the the perceived value. OBJECTIVE To To improve brand preference by by upgrading the the customer experience in in the the station. CVP CVP Petrol Ofisi Ofisi offers high high quality premium fuel fuelproducts with with maximum economy, maximum power claim. CVP CVP Petrol Ofisi Ofisi offers a customer centric loyalty program which is is differentiated for forsegmented customer groups as as well well as as innovative convenience solutions such such as aspay-pass and and PositiveMatic. CVP CVP Petrol Ofisi Ofisi offers high high quality products and and services at at convenient stations via via well well trained, friendly staff. 22 POAS YE10

23 Retail Volume Enablers Network Growth NTI/NTPO Projects Network growth by opening or transferring new stations Each year there are 200 Greenfield investments and 700 station transfers in the market CR Projects Existing sites are up to contract renewal every 5 years. In average 450 contracts/year will be renewed between The sales performance of the station, the location, the relationship with the dealer are taken into consideration when allocating the CR budget. Operational Improvements Site improvement projects to capture the upside volume potential of the existing stations; Hardware Improvements Toilets, lighting, landscaping, visuals, car-wash and air/water, lube changing units Software Improvements Improvements that don t require additional CAPEX Training of station personnel Localized campaigns/promotions Optimum utilization of the site Site Operations Development Program Territory Trainers are allocated to each site for a week to train station staff. Marketing Activities Fuel Differentiation New Generation V/Max Eurodiesel Launched Feb 2010 New Generation V/Max Gasoline Launched April 2010, Over 2,5 million members! Above 2 products provide the Highest Level of Fuel Economy (save up to 4 litres of fuel in 100 litres) V/Max Performance Series Launched in Sep 2007 Positive effect on pump sales by increasing high income / high mileage customers Low Sulphur Diesel 10ppm PO was the 1 st in the market to offer it in Dec st mover advantage Positive Card Launched in Jan 2008 Broadest customer commitment program in Turkey. Payment and loyalty card in 1 Convenience of paying without leaving the vehicle, pay&pass customers purchase 25% more in average than a regular positive card member pay&pass members by the end of December 23 POAS YE10

24 LPG - Growing Business Line Turkey s Turkey s largest largest Auto-LPG Auto-LPG network network Petrol Ofisi is currently operating auto-lpg business through 2 channels: PO/gaz (PO Brand) and Contracted stations. The national distribution licence was granted in March 2007 and in line with the licence PO launched its new brand, PO/gaz in order to create higher earnings on auto-lpg sales. Within the scope of the national distributor license requirements, Petrol Ofisi has 2 filling facilities; Aksaray and Aliağa. 2 LPG terminals with a total capacity of 50,000m 3 will become operational in 2012, enabling LPG procurement through imports to achieve higher supply margins. As of December 2010, there are 1,340 PO/gaz and 56 Contracted stations. Conversion of contracted sites to PO/gaz is still continuing. As of December 2010, sales volume has reached to 382,021 tons in PO/gaz and tons in Contracted stations with a total of tons. 24 POAS YE10 * Source: Energy Market Regulatory Authority as of 3Q10

25 C&I - Fuelling the Energy that Turkish Industry Needs and Relies on Turkey s Turkey s biggest biggest single single B2P, B2P, B2B B2B and and B2D B2D fuel fuel distributor distributor Nationwide Nationwide presence, presence, established established infrastructure, infrastructure, logistics logistics capability capability & long-term long-term business business relationships relationships Commercial and Industrial (C&I) customers are defined under 3 separate categories State-owned entities, military institutions and municipalities Private companies in industry, agriculture, transport, logistics and construction Sub-distributors who supply commercial customers with an annual consumption of less than 5,000 tons that distribution companies can t supply by law C&I sales are comprised mostly of jet fuel, Gasoil and Black product. 25 POAS YE10

26 Land, Air & Sea No Boundaries for Petrol Ofisi Market leader with sales over Market leader with supply throughout 1.9 mio m 3 Turkish coast. Strong position as the second largest company in the market PO Air is present at 35 airports Customers include Turkish Airlines, all other domestic airlines (Onur Air, Pegasus, Atlasjet...) as well as more than 60 international airline carriers: Emirates, Qatar, Lufthansa Cargo, Korean, Thomas Cook, SAS- Scan, Royal Jordanian, Swiss, Austrian Airlines PO Air is the only company that can supply Istanbul Airport through its pipelines, lowering transportation costs En route to becoming an international player... Since 2006, PO air started supplying Turkish Airlines and other domestic carriers at international airports (Amsterdam, Manchester, Copenhagen, Brussels...) PO Marine is the only Turkish supplier to Own marine terminals in all seas Offer all marine fuels and lubricants Provide transit bunker services in Turkish Karadeniz, Marmara, Ege and Akdeniz Streching along the entire Turkish coastline from Hopa to Đskenderun, this network includes 8 terminals, 20 marine fuel vessels which are called barge, 3 floating storage vessels from small scaled customers and 6 POMarine fuel stations. Introduced in July 2005 and strong position as the second largest company in the market, more than 200 LNG tanks installed, more than 35 LNG tankers for transportation. LNG is natural gas liquid form which is stored at approximately - 162ºC LNG is mainly used by commercial and industrial customers who do not have access to natural gas pipelines LNG is transported by specially designed cryogenic road tankers to customers premises and stored in specially designed cryogenic tanks In 2010, PO LNG sales volume has passed through 91 k tons, 26 POAS YE10

27 Leading Player in the Lubricants Market 24.1%* 24.1%* market market share share --1 out out of of every every 4 lubricants lubricants is is sold sold by by PO PO sales sales amount amount is is 85,759 85,759 tons, tons, including including 9,982 9,982 tons tons of of export export to to countries countries PO has become Lubricants Market Leader in 2010 after 4 years Petrol Ofisi is Turkey s leading lubricant producer with total annual capacity of 140,000 tons in Derince plant PO lubricants target high technology products and gained 2% market share in passenger car motor oils in PO is producing synthetic motor oils in Derince plant PO is continuously optimizing its product portfolio in line with the market demand. Total number of products is 310. Petrol Ofisi Technology Centre ( POTEM ), which is established in Derince on an area of 1,200 m2, is accredited for 111 domestic and international tests with the capacity to perform 166 different test methods Exporting lubricants to 3 continents In 2010, PO exported 10k tons lubricants to 21 countries. In 2010, PO also continued production for Petrom and designated OMV markets 27 POAS YE10 * Source: Petroleum Industry Association as of

28 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 28 POAS YE10

29 All Fuelled Up Future a vertically integrated market leader #1 in retail #1 in aviation #1 in marine #1 in lubricants #1 & a regional WER Supplying Turkish carriers at >100 international airports Supplying international airports Biggest marine refueler of the East Mediterranean Exporting lubricants to >30 countries 29 POAS YE10

30 Offshore Black Sea Gas Exploration & Production A Huge First Step into Upstream, towards an Integrated Energy Company Petrol Petrol Ofisi Ofisi acquired acquired 26.75% 26.75% share share in in the the Western Western Black Black Sea Sea USD USD mio mio in in January January and and has has become become the the largest largest private private partner partner of of Turkey s Turkey s largest largest offshore offshore natural natural gas gas production production project project Project Details 4 Offshore licenses (total of approximately 1900Km 2 ) Application to GDPA for a production lease within AR/TPA-POŞ-TWY-FNV licenses Integrated E&P project, including, exploration, development and natural gas production The fourth offshore platform has been installed, hosting drilling and production facilities TPAO is the operator with 51% share, PO is the second largest shareholder PO became the largest private offshore producer in Turkey FOINAVON ENERGY In 2010, cumulative production is 139,332,663 scm and average daily production is 381,733 scm/day (Total of SASB Project) In 2010, cumulative production is 37,271,486 scm and average daily production is 102,114 scm/day (PO shares) PHASE II Akçakoca Field development completed beginning 2011, enhanced production will commence by Q1/Q2, 2011 Value of SASB Project Cash generating proven and producing reserves Upside reserve growth potential New development areas and exploration potential in prospective structures Enabled to enter the upstream E&P business (assets with all in one deal) with proven reserves, ongoing production that creates a continuous cash flow and exploration blocks with possible upside reserve potential Growing, vibrant, profitable and properly regulated natural gas market 30 POAS YE10

31 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 31 POAS YE10

32 Sales Volume Comparison -6.1% 13.6 % -0.5 % % 22.8 % 26.0 % -4.9 % YE09 YE tons ,760 3, ,261 6,904 Gasoline Auto LPG Gasoil Black Products Lubricants LNG Gasoline + Auto LPG % White Products Total Sales 6,253 6, % 32 POAS YE10 Source: PETDER data

33 Volume Composition % 1.1% 12.1% 7.7% 1.0% 1.3% 22.5% 23.0% Volume 51.8% 54.2% 4.6% 5.5% 7.2% 7.1% Gasoline 7.26 mio tons, 86.1% white, 12.1% black 6.90 mio tons, 89.9% white, 7.7% black Auto LPG Diesel Jet Fuel Black Products Lubricants 1.0% 1.0% 0.9% 19.9% 11.9% 1.0% % 48.0% Volume 22.2% 51.2% LNG 33 POAS YE10 4.9% 5.7% 6.7% 7.1% 8.27 mio tons, 78.2% white, 19.9% black 7.35 mio tons, 86.1% white, 11.9% black

34 Table of Contents Introduction Turkish Energy Sector Company Overview Business Lines Future Story Sales Analysis Financial Overview 34 POAS YE10

35 Performance Highlights Y-o-Y sales revenue increased by 15% to TRL16.1bio due to higher crude prices Y-o-Y Gross Profit decreased by 16% from TRL971mio to TRL 812 mio primarily due to decrease in commercial sales; extra rebates given to dealers as a part of contract renewal investments and impairment on natural gas exploration wells where no proved reserves could be demonstrated Despite decrease in general administration expenses, marketing sales& distribution expenses led cash OPEX to increase by 5% Fines and penalties paid and increase in depreciation expenses are main reasons for greater proportional fall of EBIT in 12m10 by 56% from TRL566mio to TRL249mio than gross profit EBITDA decreased by 38% from TRL721mio to TRL449mio Gross Profit EBIT and EBITDA margins decreased by 190bps, 350bps and 230bps to 5.0%, 1.5% and 2.8% respectively In 12m 2010 FX loss realized TRL70mio more than the previous financial year In 12m 2010 financial performance turned to negative at the bottom-line as result of one time expenses and f/x losses realized 35 POAS YE10

36 Strong Operating Performance Q3/10 Q4/10 Q4/09 10/09 in TRY mn 12m10 12m09 10/ % Net Sales % % Gross Profit % 4,9% 3,3% 5,4% Gross Margin % 5,0% 6,9% n.a. EBIT % 2,1% -0,9% 2,8% EBIT Margin % 1,5% 4,0% % EBITDA % 3,0% 1,0% 4,1% EBITDA Margin % 2,8% 5,1% n.a. Net Income n.a. 2,3% -3,9% 0,8% Net Income Margin % -0,3% 1,8% 36 POAS YE10

37 250 Reasons of difference between 12m of TRL mio -146,9-18,5-45,5-72,0-103,7 33,4 2,4 40,4 17,6 Positive effect Negative effect ,5 Higher depreciation as a consequence of contract renewal investments in 2010 F/x loss due to depreciation of TL in last quarter Mainly due to fines & penalties paid and loss from sale of fixed assets in , Net Income 12m/09 Gross Profit Cash OPEX Depreciation FX Income-net Other Incomenet Interest Expense-net Minority Interest Cash Tax Deferred Tax Net Income 12m/10 37 POAS YE10

38 EBITDA Q3/10 Q4/10 Q4/09 10/09 in TRY mn 12m10 12m09 10/ n.a. EBIT % % Depreciation % % EBITDA % EBITDA Q3/10 Q4/10 Q4/09 38 POAS YE10

39 Net Liability Position TRL mio December 31, 2008 December 31, 2009 December 31, 2010 Liquid Assets 3,329 3,127 2,492 Cash 1,536 1, Inventories Trade Receivables & Other Current Assets 1,074 1,008 1,254 Liabilities ,152 Trade Payables Taxes Payable Other Payables* Assets/Liabilities Net Assets 2,583 2,352 1,339 Total Financial Debt 3,373 3,091 3,250 Net Liabilities ,911 Change in Net Liabilities ,172 * Excluding deferred tax liabilities and long term provisions but including short term provisions (tax liability) 39 POAS YE10