Slide 1: June 2017
June 2017
Slide 2: Content
CONTENT A- Overview G- Other participations B- World LPG market H- Financial highlights C- Turkish LPG market & Aygaz — _I- Appendix __ Sia = ‘K D- The LPG value chain J- Glossary _ . E- Participation portfolio K- ak
Slide 3: Aygaz at a glance
A 6.7 billion 2.1 m tons NATURAL GAS : REFINERY AYGAZ Oiipras POWER GENERATION AYGA @ ys ive) N
Slide 4: Overview
Overview (Cons. in m TL) 2016 2015 2014 2016-2015 change 6,420 7,061 5% 337 = 188 17% Net Profit 418 §=218 = -0.6% EBITDA Margin 5% 3% +1 Net Profit Margin 7% 3% -1 1,791 3% SHAREHOLDERS (%) As of 30/06/2017 PUBLICLY TRADED Kog GROUP LIQUID PETROLEUM GAS DEVELOPMENT CO. AYGAZ
Slide 5: Generic brand for LPG
Pa Generic brand for LPG 14th largest industrial company of Turkey, as of 2016 with 55 years of history Core business - LPG distribution Most preferred LPG brand in Turkey since its foundation Market leader with 3 brands AYGAZ Mogaz Lipetgaz AYGAZ VOLUMES (000 tons) | 1 2012 2013 2014 2015 mm CYLIND
Slide 6: World LPG market
B World LPG market WORLD LPG CONSUMPTION (m tons) 2015 285 pe ay __ eFastest growing energy source after 2012 cay renewable energy 2011 | 256 300 billion USD business size worldwide 2010 249 , 2009 240 © Sources of LPG production; 2008 zon ne 2006 227 NATURAL GAS —- CRUDE OIL 2005 220 LPG AS A COMMO
Slide 7: World LPG consumption
World LPG consumption World LPG Consumption World LPG Consumption By Sector 2015 (%) By Region 2015 (%) Middle East WLPGA Statistical Review of Global LP Gas Report, 2016 AYGAZ
Slide 8: LPG price versus brent
> LPG price versus brent $/Ton BgSeeesegcg Sonatrach / Market data AYGAZ
Slide 9: Turkish LPG market
GC Turkish LPG market EUROPE (m ton) russiA SEN 4.4 TUR! 41 3.2 GREECE | 0.5 mm DOMESTIC mm INDUSTRY «a TRANSPORT WLPGA Statistical Review of Global LP Gas Report, 2016 GA Koc 4.1mtons #3*in Europe #15 in the World ~80 distribution companies Leading 3 players in the cylinder market and first 8 playe
Slide 10: Turkish LPG market ranking
GA Koc 10 Turkish LPG market ranking (Se) 1.3 m tons 2- FRANCE <5 ST'Y 1.0 m tons Ci. 1.1 m tons Peat (3 a 0.8 m tons TURKEY IS THE 5th BIGGEST DOMESTIC LPG MARKET IN EUROPE ee C2 3.7 m tons Pom) (3 ay 3.1m tons <5 USS" 3.0 m tons PRaULUS UI 1.7 m tons oa) 11 1.7 m tons TURKEY IS THE 2nd BIGGEST AUT
Slide 11: Turkish LPG market & Aygaz
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Slide 12: Cylinder market starting to stabilize
RS Turkish market Aygaz BE: Cylinder market starting to stabilize CYLINDER MARKET 890 (000 tons) 382 © 359 = 342 = 343 = 342 2012-2013, 2014S 2015 2016 Growth continued in 2016 after 2015, after 15 years of contraction Factors affecting cylinder market; ¢ Slow down of expansion in natural gas grid ¢
Slide 13: Aygaz; leading cylinder market since its foundation
13 > ‘ ‘ Aygaz; leading cylinder market since its foundation O CYLINDER MARKET SHARES AvGAZ a 42%, a 29% DEMIROREN 16% OTHER (13% Aygaz cylinder dealers 2,192 342,050 156 Total cylinder dealers 8,166 820,412 100 *EMRA data GA Koc AYGAZ
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Slide 15: Autogas market keeping its steady growth
145 ° Autogas market keeping its steady growth 3,142 3,069,’ Let > gos 2,727 2838 (000 tons) 792 777 Ayosz (7D Nas 2012 «2013 2014-2015 =. 2016 201220132014 2015 2016 == TURKISH MARKET == AYGAZ
Slide 16: Economy of autogas
16 > Economy of autogas PRICE ADVANTAGE OF AUTOGAS + 1 1 1 t — 4 t i 1 1 + 1 t 1 1 ' | oat | t pe a at nel moti at Pea ee Ae ea re 3 price advantage to gasoline “WLPGA Statistical Review of Global LP Gas Report, 2016 AYGAZ
Slide 17: Autogas; most widely-used passenger car fuel of Turkey
17 Autogas; most widely-used passenger car fuel of Turkey RATIO OF CARS REGISTERED TO TURKISH CAR PARK (m cars) TRAFFIC ACC. TO FUEL TYPE 2011 2012 2013 2014 2015 2016 m= GASOLINE === DIESEL = AUTOGAS M@™@ GASOLINE mmm DIESEL mal AUTOGAS : : CAR OWNERSHIP PER PERSON Most widely-used passenger car fu
Slide 18: Aygaz; leader of World's second biggest Autogas Market
18 RS Aygaz; leader of World’s second biggest Autogas Market 2h) AUTOGAS MARKET SHARES MARKET SHARE & STATION NUMBER SHARE (%) AYCAZ I 25% PO 13% SHELL-TURCA! 12% SHV 8% DEMIROREN [ij 8% sume MARKET SHARE BP i 6% mmm STATION NUMBER SHARE TOTAL |) 4% OTHER NN 24% j i ial Number of Sales Volume Avg de
Slide 19: Autogas car park growth
19 Autogas car park growth conversions per year AUTOGAS CONVERSIONS (m cars) isla label bb 2010 2011 2012 2013 2014 2015 2016 fm PASSENGER CAR PARK mal AUTOGAS CAR PARK Turkstat GA Koc AYGAZ
Slide 20: The LPG value chain
Da The LPG value Ww Supplying 2 million tons of LPG ‘ chain 20 ee El ~200 1,741 auto gas stations tankers 1,000,000 + vehicles using Aygaz Euro LPG+ Fixed storage f Moving&floating capacity of N ; storage capacity 178,400 m3 via AMOS 2 aoe = Lu By of 45,000 m3 23 facilities [oor —__ 3,000+ ——_ bulk
Slide 21: Competitive Supply Chain
22 Competitive Supply Chain Drs. BIG PLAYER #1 purchaser in Mediterranean #1 importer in Turkey #1 FOB player in Black Sea #1 exporter in Turkey #1 storage owner in Turkey (~31% of TR) eseee FLEET MANAGEMENT Top-notch LPG fleet owner Total capacity: 33,800 chm, Average age: 12 yrs Single LPG vessel
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Slide 23: Participation Portfolio
23 tr Participation Portfolio oe Natural Gas Anadoluhisan 100% Opet-Aygaz Real Estate 50% - *EYAS owns 51% of the shares of TUPRAS GA Koc AYGAZ
Slide 24: Natural gas
aa Natural gas AYGAZ DOQGALGAZ LNG SALES > » © 2016 Transportation 19% market share, sales: and regasification 300 industrial ~100 mem customers 1,103 961 Started in 2016 sales: F 837 2010 ~950 mem 7 366 PROJECTS a LNG & Pipeline gas import 128 2012 2013 2014 2015 2016 PIPELINE NATURAL GAS SALES @&
Slide 25: Natural gas strategy
25 ° ‘Natural gas SIRATEGY : Wholesale Power generation : Companies and industry TRANSMISSION = AND STORAGE IMPORT H WHOLESALE ro i ts Distribution Companies Companies eeee TARGET POSITION TPO O ee eR Ree eee eee ETO E EEE T SHEET TEED SEH ESETEEE TESTS HOTT E STEREO TEEEEEe ie
Slide 26: Natural gas market dynamics
26 ° Natural gas market dynamics * Liberalization process still continues; only 20% of the market is composed of private sector. * Natural gas consumption of Turkey is expected to reach 65 bem in 2026. * Turkey needs additional gas entry for the following 10 years especially in winter time peak dema
Slide 27: Other participations
i Other participations izmit NGCC: 157 MW 3 hydro assets: 62 MW Kepezkaya HEPP (Karaman) 28 MW Damlapinar HEPP (Karaman) 16 MW Kumkoy HEPP (Samsun) 18MW Direct sale of cylinder gas and carboy water throughout Turkey Fuel trade at its fuel stations Founded in 2013 as a 50-50 partnership with Opet to
Slide 28: Aygaz key takeaways
28 Aygaz key takeaways Consistent Brand Market j Power Leader LS | e , lin % Strong Sales & Logistics Network STRATEGIC PRIORITIES Sustain its market leadership in LPG through; Product differentiation and innovation for autogas Further penetration by opening new autogas stations © Growth prospects f
Slide 29: Shareholder value
29 Shareholder value CONTINUOUS OUTPERFORMER OF BIST 30 ee —AYGAZ Mcap (mTL). — BIST-30 INDEXED (mTL) “geeaeeeeeeeeeeenezttreeesesece 2012 2013 2014 2015 2016 PEPRPSEREE TELE ESE ETERS RES S BES mK mine ae ur GA Koc AYGAZ
Slide 30: Financial highlights
Financial highlights iit Sales revenue figure fluctuations are mainly due to; * FX rate changes * Commodity price changes 30. AYGAZ
Slide 31: Financial highlights
31 Financial highlights GROSS PROFIT AND GPM 11% 12% 10% 2012 2013 2014 2015 2016 ™@ GROSS PROFIT MM GROSS PROFIT MARGIN NET PROFIT AND NPM T% 6% 2012 2013 2014 2015 2016 @ NETPROFIT Mi NET PROFIT MARGIN EBITDA AND EBITDA MARGIN 2012 2013 2014 2015 2016 @ EBITDA M® EBITDAMARGIN PROFIT MARGINS 2012 2
Slide 32: Financial highlights
Financial highlights NET CASH (m TL) WORKING CAPITAL (m TL) 2014 oil 2013 2015 ane MITRADE PAYABLES ‘Ml TRADE RECEIVABLES Im INVENTORY 1m WORKING CAPITAL CURRENT RATIO RETURN ON EQUITY 1.56 64.30 1.00 > 1.21 a9 2012 2013 2014 2015 2016 2012 2013-2014 *Rolling basis AYGAZ
Slide 33: Financial highlights
° Binancial highlights oy Bo ST Borrowings 66 1 Current portion of LT Borrow 182 229 LT Borrow 303 400 Total D 551 Cash and cash equivalents (-) 289 568 = Net Debt 263 63 CREDIT RATING: Following the comparative analysis of the sector and examination of financial/operational risks carried by the Com
Slide 34: Appendix
Slide 35: Income statement summary
2 Income statement summary Tes 2012 201320142015 2016) Sales Revenue 5,586 6,005 7,061 6,420 6,749 cocs (5,065) (5,434) (6,534) (5,743) (5,962) Gross Profit 521 571 (527 677 787 Operating Profit 206 170 104 250 308 Profit Before Tax 345 237 237 458 469 Net Profit 305 205 218 418 416 EBITDA 285 252 1
Slide 36: Balance sheet summary
2 Balance sheet s ummary op Si i fe es seo Cash & Cash Eq. 173 161 289° 568 Trade Receivables 367 390 483 475 Inventories 276 110° 186 267 Participations 1,377 1,677 1,867 1,922 Prop. Plant & Eq. 589 585 651 658 Financial Debt (238) (365) (551) (630) Trade Payable 376 319 372 471 Equity 2,244 2,359
Slide 37: 2017 Q2 income statement summary
37 3 2017 Q2 income statement summary (m TL) Q217 Q117 Change 0217 Q216 Change Revenues 1,881 2,065 -9% 1,881 1,535 23% Gross Profit 144 189 -24% 144 194 -26% Operating Profit 33 86-61 33 82 60% Profit Before Tax 170 170 170 105 63% Net Profit 168 157 1% 168 93 81% EBITDA 55 107 -49% 55 104 -47% MAR
Slide 38: 2017 Q2 Aygaz LPG sales
4 2017 Q2 Aygaz LPG sales 626 500 514 SAE (000 tons) 208 241 (mp BULK = OTHER 195 >) auto © cyuinver Q2 sales volumes were realized as; * 204 thousand tons in Autogas (+4.8% YoY) * 86 thousand tons in Cylinder Gas (-3.1% YoY) AYGAZ
Slide 39: GA Koc
GA Koc
Slide 40: According to May 2017 EMRA report
According to May 2017 EMRA report, Turkish cylinder sales volume is 321,861 tons and auto gas volume is 1,164,231 tons. (2016/5 months*: Cylinder gas 326,722 tons; Autogas 1,216,742 tons). MAY 2015 MAY 2017 “EMRA 2017 report SALES VOLUME (Tons) GA Koc
Slide 41: Income Statement - Summary
/ Income Statement - Summary (mTL) 6Mi/ 6Mi6 Change Revenues 3,946 3,060 29% Gross Profit 333 369 10% Operating Profit 119 148 — -20% Profit Before Tax 340 179 90% Net Profit 326 158 106% EBITDA 162 191 -15% MARGINS Gross Profit M. 8% 12% -4 Operating Profit M. 3% 5% -2 Profit Before Tax M. 9% 6% +3
Slide 42: Balance Sheet - Summary
8 Balance Sheet- Summary Cash & Cash Eq. 219 568 Trade Receivables _ 496 475 =a Inventories 263 267 180 Prop. Plant&Equipment 681 658 655 Participations 2,100 1,922 1,848 Total Assets 4,305 4,314 3,999 Financial Debt 748 630 657 Trade Payables 371 471 326 Total Equity 2,697 2,740 2,563 Total Liabili
Slide 43: Glossary
Glossary LPG Liquid Petroleum Gas Energy Market Regulatory Authority World LPG Association Sonatrach Price Petroleum Industry Association L Free On Board Cost, Insurance & Freight Mediterranean Very Large Gas Carrier Enerji Yatirnmlan A.S. Liquid Natural Gas Million Cubic Meters Billion Cubic Meters
Slide 44: 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 a variety of variables and c
Slide 45: Contacts
45 L Contacts investor@aygaz.com.tr ferda.erginoglu@aygaz.com.tr +90 212 354 1764 sebnem.yucel@aygaz.com.tr +90 212 354 1510 selin.sanver@aygaz.com.tr +90 212 354 1659 Www.aygaz.com.tr GA Koc AYGAZ