Slide 1: Strategic Transition Plan: Leader of Future Energy in Turkey
™) Energy To the future
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements that reflect the company management's current views with respect to certain future events. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by variables and changes in und
Slide 3: Largest industrial company in Turkey, providing energy for 60 years
) , A las ~ ails Ht i: J —_—- ; ame LARGEST:-INDUSTRIAL COMPANY IN TURKEY PROVIDING TURKEY'S.ENERGY FOR 60 YEARS
Slide 4: Europe's refining leader: 4 refineries, 30 million ton capacity
EUROPE Siig WORLD'S 30TH LARGEST REFINING COMPANY $ 7 BILLION INVESTMENT 4 REFINERIES 30 MILLION TON CAPACITY 75% REFINING CAPACITY* OF TURKEY AMONG LARGEST EXPORTERS OF TURKEY * SOURCE: EMRA |
Slide 5: 51% market share in Turkey
51% MARKET SHARE* IN TURKEY 57% TOTAL STORAGE CAPACITY WITH OPET ONE OF THE MOST COMPLEX REFINERIES OF THE MEDITERRANEAN REGION $ 7 BILLION once acauisition) SOLID DIVIDEND. PAYER * SOURCE: EMRA |
Slide 6: We will lead Turkey's energy transformation
WE WILL LEAD TURKEY'S ENERGY TRANSFORMATION, BY CREATING A DIVERSIFIED PORTFOLIO
Slide 7: Global primary energy demand outlook
——— GLOBAL PRIMARY ENERGY DEMAND OUTLOOK —— IEA Stated Policies Scenario IEA Sustainable Development (STEPS) Scenario (SDS) 24% 28% 16% ws, 29% 28% “es 2020 2030 2040 2050 2040 2050 ma OIL Wa COAL Ml NATURAL GAS NUCLEAR Ml RENEWABLE SB aw ls * Source: IEA, “World Energy Outlook 2021”, “Net Zero by 2
Slide 8: Electricity is the backbone of reaching Net Zero
Electricity is the backbone of reaching ‘Net Zero’, driving both electrification and green hydrogen production. Oil, the energy source of humanity for ages, is gradually being replaced by alternative energy sources. Dt Oil demand.moves onto.a downward trajectory, but it will be the significant energ
Slide 9: Turkey's transportation energy demand
Turkey's Transportation Energy Demand in million tonnes of oil equivalent (mtoe) lf Diesel Hi LPG ll Gasoline Jet Fuel Marine Fuel I Alternative Marine Fuels li SAF, Other Jet Fuel Alternatives Mi Hydrogen ‘i Electricity 51 52 52 48 a ss [ = Ls 45% = 2019 2030 2035 2040 2050 Source: Tipras Projectio
Slide 10: Slide 10
Slide 11: Strategic priorities
STRATEGIC PRIORITIES MAKE EXISTING ASSETS MORE COMPETITIVE AND INVEST IN NEW AREAS THAT WILL DELIVER PROFITABLE TO FUND THIS TRANSITION STRONG PROFITS AND SUPPORT SUSTAINABILITY a SUSTAINABLE Bp BIOFUELS ZERO CARBON GREEN pat REFINING ELECTRICITY HYDROGEN ——
Slide 12: Becoming a leading zero carbon electricity producer
BECOMING A LEADING ZERO CARBON ELECTRICITY PRODUCER BECOMING THE LEAD. SAF PRODUCER IN TURKEY ELIMINATE SCOPE 1&2 EMISSIONS BY 2050 INVESTING FORA CAPITALIZING HYDROGEN SUSTAINABLE & PROFITABLE KNOW-HOW TO°CREATE A REFINING GREEN VALUE CHAIN
Slide 13: Transition plan towards being a carbon neutral company
TRANSITION PLAN TOWARDS BEING A CARBON NEUTRAL* COMPANY 2022-2030 2031-2035 SHARE IN CAPEX SHARE IN EBITDA SHARE IN CAPEX SHARE IN EBITDA Sustainable Refining | ~60% ~90% > ~30% | ~70% | Sustainable Aviation Fuel Zero Carbon Electricity ~40% ~10% > ~70% ~30% Green Hydrogen BASE YEAR 2017 Scope 1 & 2
Slide 14: Emission reduction
EMISSION REDUCTION SCOPE 1 &2 s&s — BASE YEAR SCOPE 142 a N¢ 7.3 MN TONNES t Ss We will invest in energy efficiency & decarbonization projects, green hydrogen & zero carbon electricity usage in refining to reduce : -%100 scope 1 & 2 emissions 2017 2030 2035 2040 2050
Slide 15: Strategic transition plan
STRATEGIC TRANSITION PLAN WELCH BIOFUELS ZERO CARBON GREEN ELECTRICITY HYDROGEN
Slide 16: Sustainable refining
= SUSTAINABLE REFINING
Slide 17: Sustainable refining: refining investments
— SUSTAINABLE REFINING REFINING INVESTMENTS PRIORITIZE MANDATORY INCREASE AND QUICK ENERGY EFFICIENCY DECARBONIZATION .~$2.3BN CAPEX ASTD propucts.. PROJECTS PROJECTS ~S138N EBIRDA®® ate. ee @ REFINING WILL REMAIN AS A MAJOR 4 EBITDA CONTRIBUTOR 400 @ WE WILL CONTINUE TO INVEST TO DIVERSIFY PRODUCT
Slide 18: Sustainable refining: achievements and targets
— SUSTAINABLE REFINING ACHIEVEMENTS TARGETS Improvement in Energy Energy Efficiency Roadmap Intensity since 2008 delim = -26 0-28 +01 Energy efficiency projects ENERGY in 2020 EFFICIENCY Annual energy saving in 2020 CO2 emission reduction \ Me i 2017 Energy Efficiency Operational Changes Ongoing & F
Slide 19: Biofuels
Slide 20: Biofuels market outlook
— BIOFUELS MARKET OUTLOOK Global Biofuel Consumption* (EJ) ones OTHER “a aan NATURAL GAS. GAS HYDROGEN or 2020 >» 2050 [3] TRANSPORT ELECTRICITY ol 2020 2030 2050 al & », BIOFUELS 1% ELECTRICITY BIOFUELS 4% * Source: IEA, Net Zero by 2050: A Roadmap for the Global Energy Sector FEEDSTOCK ALTERNATIVE
Slide 21: Our focus: becoming the lead SAF supplier in Turkey
OUR FOCUS: BECOMING THE LEAD SAF SUPPLIER IN TURKEY OFFERS LONG TERM HIGH PROFITABILITY BEST “EMISSION REDUCING ALTERNATIVE” FOR AVIATION REDUCES GHG EMISSIONS MORE THAN 50%* vs FOSSIL JET FUEL * Source: Estimate based on CORSIA Eligible Fuels Life Cycle Assessment Methodologies
Slide 22: Biofuels business plan
—— BIOFUELS BUSINESS PLAN OPEN FOR PARTNERSHIPS HYDROPROCESSING REVAMP OF OF 2ND GENERATION EXISTING BIO FEEDSTOCKS UNIT CONVERT EXISTING UNIT IN IZMIR WITH ~$230M CAPEX TO BE FINALIZED IN 2026 e 400 kton/year biofuel production capacity at the first stage e ~10% of our jet fuel sales will be SAF by
Slide 23: Zero carbon electricity
Slide 24: Zero carbon electricity market outlook
— ZERO CARBON ELECTRICITY MARKET OUTLOOK ELECTRICITY 20% OTHER Global Electricity Consumption* (EJ) orem ELECTRICITY 53% TRANSPORT BIOFUELS NATURAL GAS > > HYDROGEN 2050 | a BUILDINGS INDUSTRY Bit BIOFUELS: 2020 2030 2050 * Source: IEA, Net Zero by 2050: A Roadmap fer the Global Energy Sector INTEGR
Slide 25: Investing in zero carbon electricity
INVESTING IN ZERO CARBON ELECTRICITY Use majority of actricity to produce for our refinery processes and sales to heavy transportation . and logistics ZERO CARBON ELECTRICITY'S ROLE IN ENERGY TRANSITION Sell remaining f ty (~50% of total need) via PPAs to optimize capex/cogs balance Green H2 Product
Slide 26: Zero carbon electricity business plan
Completed study for Solar and installations at our refineries (potential to install up to ) Installed to Batman In 2021, to be followed by in Kirtkkale Exploring areas to t through Main portion of profits from investments is included in integrated margins INSTALLED CAPACITY BY 2030: - BY 2035: $1,30
Slide 27: Green hydrogen
Slide 28: Green hydrogen market outlook
— GREEN HYDROGEN MARKET OUTLOOK Global Hydrogen oor as Fuel* (EJ) *No Hydrogen sl ELECTRICITY NATURAL GAS consumption in 2020 OTHER scenario TRANSPORT HYDROGEN 6% (9) Source: Ik INDUSTRY acne OL > 2050 ° -_ on BIOFUELS 2020 2030 2050 ELECTRICITY * Source: IEA, Net Zero by 2050: A Roadmap fer the Glo
Slide 29: Our focus: green hydrogen
ae NBiS.. OUR FOCUS: GREEN HYDROGEN Capture opportunities in evolving markets such as heavy transportation & logistics GREEN Hz fo N Reduce refining emissions from operations by 25% >» eLectRoLysis PROVIDES FUEL > FES =O. by 2040 with H2 unit conversion A CIRCULAR GE. SOLUTION CONVERT EXISTING H2 UN
Slide 30: Hydrogen business plan
HYDROGEN BUSINESS PLAN INSTALLED ELECTROLYZER CAPACITY Evaluating test site for a 20 MW H. BY 2030: I BY 2035: fueling station and renewables to $640M $690M Start selling Green H2 to heavy tre P and logistics by 2030 $310M Convert all existing grey Hz produce $35M il to green by 2040 2030 2035 2030
Slide 31: Venturing with Emerald Technology Ventures
emerald Technology Ventures 2020-2021 2022 COOPERATION WITH i CO-INVESTMENT = EMERALD TECHNOLOGY VENTURES Sy EVALUATIONS WITH VC'S & 2023 DIRECT INVESTMENT EVALUATIONS ENERGY COMPANIES COLLABORATION WITH NEW TECHNOLOGY STARTUPS, IN THE U.S. ( Kees" 2030 INDICATORS BENEFITS CULTURAL TRANSFORMATION *
Slide 32: Digitalization
Slide 33: Digitalization: operational transparency and automation
—-_ CO ' 2. ee ~— = OPERATIONAL HIGH AUTOMATION EMPLOYEE EFFICIENCY / TRANSPARENCY & HIGH EFFICIENCY & EXPERIENCE JK INTERCONNECTED 4 ? d LOW CYBER SECURITY & pel Ae CARBON TECHNICAL SAFETY Al & MOBILITY
Slide 34: Leadership and culture
LEADERSHIP & CULTURE Create and implement a roadmap for Leadership Development and Cultural Progress to create the future of Tupras Create and deploy a lean new generation operating model, based on total business portfolio F CF/P PDB he 0 S/he Was EMPLOYEE AF | NS CAPABILITY EXPERIENCE ff i Gi & MET
Slide 35: Social and governance
SOCIAL & GOVERNANCE STRONG POLICIES HAVE BEEN EFFECTIVELY IMPLEMENTED FOR YEARS AS ANTI-BRIBERY, DONATION & COMPETITION aapag TUMAN RIGHTS on Orr, Qposaicsure @ wrens TUPRAS IS TAKING PLACE IN THESE SUSTAINABILITY INDICES BORSA VE MSCI°:: i) FTSE4Good (Cbspone FEMALE REPRESENTATION IS THE KEY FACTOR
Slide 36: Main fields of R&D studies
MAIN FIELDS OF R&D STUDIES Horizon2020 European Union Funding for Research & Innovation DIGITAL TRANSFORMATION & > ENOTES Tupras roils the most successful Turkish Company CARBON CAPTURE in EU Horizon 2020 WATER & WASTE 12 ongoing, 5 completed projects MANAGEMENT ce ° ENERGY MANAGEMENT Sustainable De
Slide 37: Financials
1009917939 JA45379.. oo _ FINANCIALS ® - Se an == © A A a 6 7A ‘
Slide 38: Sustainable and profitable plan targets
We a re Will eliminate our scope 1&2 emissions by 2050 while executing our plan and achieving these results su sta i na b | e $350mn average CAPEX until 2035, totaling $5bn. d ROACE will remain above 25% creating ~$9bn total FCF until 2035 a nN With ample FCF, Net Debt / EBITDA will be below <2.0x e
Slide 39: Financial transition: EBITDA by business
FINANCIAL TRANSITION EBITDA BY BUSINESS (IN $ MILLION) =~" a=a~™ | 110 | 2015-2020 Refining & Biofuel ZeroCarbon — Green 2030 Refining & Biofuel ZeroCarbon Green 2035 Average Subsidiaries Electricity Hydrogen Subsidiaries Electricity Hydrogen
Slide 40: Financial transition: capex by business
FINANCIAL TRANSITION CAPEX BY BUSINESS (IN $ MILLION) 2006-2020 Refining & Biofuel ZeroCarbon Green —-2022-2030 Refining & Biofuel ZeroCarbon — Green 2031-2035 2036-2050 Average* — Subsidiaries Electricity Hydrogen Average Subsidiaries Electricity Hydrogen — Average Average *Total consolidated inves
Slide 41: Financial transition: cumulative cash flow bridge
FINANCIAL TRANSITION CUMULATIVE CASH FLOW BRIDGE 2022- 2035 SOUND FINANCIAL PLAN Superior EBITDA generation 23, and disciplined CAPEX plan ke leads to low external funding $5 bn requirement dividend payment & Strong FCF generation 7 ensures strong dividend oo potential EBITDA CAPEX Net Fin. Exp.* Ot
Slide 42: Financial transition: dividend
FINANCIAL TRANSITION DIVIDEND DIVIDEND PAYOUT 100% 75% Our new business Net best/EB0A pene ya model enables us to 1.5x - 2.0: <2.0: 50% _ - pay ~80% average dividends and we will 25% remain as a high dividend payer 0% 2015-20* 2025-35 * Years without dividend payments are not taken into account. Div
Slide 43: C)Tupras™ GY Koc
C)Tupras™ GY Koc