Investor Meeting February 2008

Tüpraş Key Messages

• High margin environment

• Significant upside from on-going & new refinery upgrades Tüpraş Upgrades

• Expansion to new activities • trading • retailing New Opportunities

Global Refining Environment

• Restructuring and efficiency improvement potential

• No Significant Liabilities

• Strong financial performance and high dividend yield

Restructuring

Environmental

Financial

2

3

Macro Outlook
(%)
12 11 10 9 8 7 6 5 4 3 2 1 0
2002 2003 2004

GDP Growth

Forex Trend

USA India

China Global

2005

2006

2007

2008

Slowdown or Recession Slowdown
•David McCormick - US Treasury •John Snow – Ex US Treasury •Joseph Stiglitz – Ex World Bank •Martin Wolf - FT Editor

6,0 4,0 2,0 0,0 -2,0

(%)

Quarterly Growth

Global EU G7 USA Jap

Recession
•Kenneth Rogoff – Lehman Bros •George Soros - Investor •Sergio Ermotti – Unicredit CEO •Nouriel Roubini - Economist

2007 -1Q 2007 -2Q 2007 -3Q 2007 -4Q 2008 -1Q 2008 -2Q

Crude Oil Rising Demand from EM Low Dollar Value Terrorism (Nigeria. Iraq. Angola) War Risk / Embargo (Iran) OPEC Quotas Resource Nationalism High Prices 5 .

0 0.0 8.0  Margin Drivers  Growing Global Demand • Sustainable demand.0 3.0 9.Margin Environment Changing Environment 10.0 6.0 1.0 2.0 4.0 7.0 5. driven by global economic growth  Regional product shortages supports strong margins • Gasoline in USA & Diesel in Europe • Margins supported by FOB / CIF difference  Refineries became more complex & more interdependent • Shutdown in one unit impact whole refinery  Specifications reduce flexibility  Refinery Capacity Investments  Refinery projects taking longer and costing more • Increases in supply capacity are lagging demand 2003-2005 2006 1999-2002 2007  Credit crunch will hit projects hard 6 .

Rising Refinery Costs 7 .

Tüpraş 8 .Global Product Consumption & Refining Capacity 110 100 90 80 Million bbl/day Product Consumption Product Consumption With Low Growth Actual Refining Capacity Estimated Refining Capacity 70 60 50 40 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Source: OGJ. Reuters.

6 2.4 30.Turkish Oil Products Demand Projection Base Case (Million Ton) 45 40 35 30 25 LPG Jet Asphalt Incld.5 3.1 +2.4 2.2 8% 10 5 0 93 95 99 '00 4.3 2.1 -17% 5% '06 '07 9 '10 '15 2020 . Ataş Naphtha Gas Oil / Diesel Others 2006 2007T Gasoline Fuel Oil Production 39.3 % 3.2 1.5 2.4 20 15 12.3 ∆ 0.9 3.5 31.2% -3% 7% 35.2 13.2 2.0 2.5 2.

1 Total Import Gasoil / Diesel 2006 Import Share.Turkey’s Imports Gasoline 2006 Million ton 2005 2006 2007E Israel 6% 13% 22% Gasoline Jet Fuel Gas Oil Fuel Oil 0.7 0.2 0.8 0.6 0.4 25. GDPA & EMRA 10 .7 - 0.6 8.4 7.1 82% 34.2 Greece Romania Other 59% 4.8 26.1 95% 31.0 0.9 6.3 24. % FSU Countries Russia Turkey Excluding Tüpraş Distributors Share Note: Excluding LPG 25.4 6.6 74% 4% 2% 6% 9% 7% Greece Romania Italy Other 72% >90% from the Black Sea Source: TÜPRAŞ.0 6.4 0.

with 20 days product stock held by both refiners and distributors – Draft Law • Maintain continuous production and supply of refined oil products as required by the Turkish Armed Forces • The market share of each distributor in the domestic market shall be limited to 45% Obligations Limits 11 .Petroleum Market Law Regulator • Market Supervised by Energy Markets Regulatory Authority (EMRA) Freedoms • Pricing set by the market for both refinery gate and pump price • No limit on imports • Refining companies may own distributors • All market participants needs a licence from EMRA • Refiners should give priority to indigenous crude oil • National inventory requirement of 90 days worth of domestic sales.Legislation .

Storage Capacity and Compulsory Stock Requirement Product Storage Capacity in Turkey Enerji 0.0% Siyam 1.6% Tuta 2.3% BP 6. Opet 11.4% Delta Aktaş Bölünmez 4.2% Storage Capacity of Tüpraş (000’ton) Crude Oil 1.6% Altınbaş 2.4% TÜPRAŞ 41.3% Petline 0.300 Current Compulsory Stock of TÜPRAŞ (20days) 920 kton Tüpraş owns 4 times more storage capacity than its 20 day compulsory stock requirement.3% Source: EMRA 12 .9% Balpet 0.8% 3.5% Shell Aytemiz 5.4% Turkuaz 0.1% POAŞ 11.700 Product 2.4%) in Turkey. Tüpraş owns 65% of combined crude oil & product stock capacity Tüpraş+ Opet own more than half of total product storage capacity (52.5% Others 2.600 Total 4.8% Total 4.1% 0.7% 0.

all gasoil sold in Turkey will have at maximum 1000 ppm sulphur content  EURO IV: 50 ppm S for gasoline & diesel. aromatics (35%) for gasoline  EURO V: 10 ppm S  10 ppm Diesel already in the market ahead of regulations  National Marker Process introduced in order to prevent illegal trade.Developments in Turkish Petroleum Sector Change in Fuel Regulations & Standards: EU and Turkey 2005 • EU • EURO IV 2007 • Turkey • National Marker Process 2008 • Turkey • EURO IV • 1000 ppm • National Compulsory Stock 2009 • EU • EURO V • Turkey • EURO V Expected  1000 ppm: From Jan 1st 2008.  National Compulsory Stock may become an issue in 2008. 13 .

14 .

280 Retail Sites 850 kM3 Storage Trading.1 mt NC:1.0 mt NC: 5.TÜPRAŞ Assets Black Sea İstanbul Marmara Baku İzmit 11. Lubricants & Bunkering activities Petrochemicals Shipping 15 Retailing .25) Kirkuk Körfez 100% Share Capacity: 50 kt Product: Carbon Black Ditaş 79.98% Share 165 kDWT Crude Tanker 15 kDWT Product Tanker Opet 40% Share 1.66 Ankara Kırıkkale 5.1 Million Tons 7.0 mt NC: 7.78 Körfez İzmir 11.32) Batman 1.0 mt NC: 7.08 (7.83 Mersin Ceyhan Total Capacity: Current Nelson Complexity(NC): 28.32 (6.

100.000 M3 Opet 850.6 249.5 43.000 M3 Unmatched Logistics Strength 100% Coverage of Turkey .1 Aygaz 150.000 M3 16 Tüpraş 5.7 65.Koç Energy Group Storage Capacities 453 36.

1 2004 2005 0.1 2006 2007 Domestic Crude 2.5 3.1 2004 2005 2006 2007 2004 2005 2006 2007 Iran 3.8 7.1 6. Arabia 17 .4 0.2 Syria 2007 Iraq 0.2 2006 2.8 0.5 0.3 2005 2006 0.9 2007 2004 7 8.9 2005 5.9 1.6 4.5 3.3 2004 2.4 2004 0.7 Kazakhstan 0.5 2006 2005 2006 2007 Libya 4.2 2004 0.1 5.8 4.1 2004 2005 2006 2007 Russia 0.1 2007 Azerbaijan Algeria 0.9 8.1 2004 2005 2006 0.3 S.Crude Suppliers of TÜPRAŞ (million ton) 9.5 2007 2004 2005 2006 2007 Italy 0.5 3.2 2005 2.4 2004 2005 2006 2007 0.

3 5.1 5.7 6M 5.9 Improving Margin Premium     Investments in yield improvements Operational optimisation Bigger domestic market share Better export premiums TÜPRAŞ Difference 2007 Med Complex TÜPRAŞ Difference 18 .2 1.7 6.6 5.5 6.0 -0.3 7.5 7.6 7.8 9M 5.2 0.3 0.4 -0.6 Year 5.8 3.9 0.1 1.6 5.7 5.Gross Refining Margin Drivers of Refining Margin:        Advantageous crude supply Strong purchasing power Flexible crude slate Refineries designed for sour crude Favorable transport costs A strong position in import infrastructure Pipeline links and reduced storage needs for key customers  High exporting ability Gross Margin ($ / bbl) 2006 Med Complex Average 1st Q 4.9 5.7 -1.

6 10.8 0.1 %92.0 0.0 5.9 0.4 0.0 24.Crude Processing and Production 12M 2007/2006 30.2 %88.6 1.0 2.0 2.2 24.8 Production Crude 5.6 1.6 mn tons of crude oil were processed and decreased 2.0 3.0 7.8 15.0 1.0 Production Mix (mn ton) -2.1 vs 32.5% from 67.1 Jet / Kero Gasolines Naphtha LPG 110 100 90 80 70 60 J Tüpraş Capacity Utilisation (%) Annual %93.5 for 2006 • White Production Yield 67.5% • Processed heavier Crude Oil API 32.1% in 2006 20.0 2.4 Fuel Oil Gasoil 7.5% 25.2 5.6 4.3 Others Asphalt • Crude Volume Optimisation • Maximising capacity of conversion units • 25.8 %91.0 12M 2006 12M 2007 2004 2006 2005 2007 F M A M J J A S O N D 19 .4 2.

432 2007 Asphalt 2006 Fuel Oil 20 .965 869 2007 Naphtha Middle Distillate 12.000 0 2.000 10.000 6.286 5.615 2.000 0 Fuel Oil / Asphalt 10.612 1. yields are becoming more profitable  Increased Gasoline  More high priced Jet  Asphalt Maximisation Gasoline / Naphtha 6.771 7.000 9.220 5.000 3.000 5.706 Volume MT 7.000 0 Volume MT 3.000 8.000 4.Changing Product Yields Through investment and optimisation.799 2.000 2.000 2.000 4.000 1.000 2.000 4.410 2006 Gasolines 3.118 2.156 2006 Jet /Kerosene Gasoil 9.588 2007 Volume MT 8.000 6.

123 2007 26.070 6.047 2.137 1.780 2.186 325 601 2.328 968 869 4.793 10.691 2.659 2.Tüpraş Total Product Sales – 12 Months kton Total Sales LPG Naphtha Gasolines Jet Fuel/Kerosene Gasoil 50 PPM Gasoil 7000 PPM Middle Distillates Fuel Oil 2006 26.410 3.190 1.291 308 674 145 -84 494 -89 105 -17 73 Asphalt Lube Oil Other Record 21 .709 11.480 5.556 Difference 191 -222 -541 388 433 2.986 5.215 6.

814 2.Tüpraş Domestic Product Sales Kton Domestic Sales Total LPG Naphtha Gasolines Jet Fuel / Kerosene Gasoil 50 ppm Gasoil Middle Distillates Fuel Oil Asphalt Lube Oil Other White Product Black Product White Product (%) Record 2006 19.173 14.010 1.179 2007 19.878 70% 22 511 949 14.595 3.173 1.033 6.332 73% 10 -223 584 -546 3% .627 2.292 Difference 38 -223 -239 83 168 -16 817 969 -673 112 502 1.897 2.637 1.725 10.954 2.605 5.021 5.937 949 771 1.563 2.201 6.899 1.653 909 9.

370 1.509 1.000 Production Trading Product LPG Diesel Fuel Oil Total 2006 334 1.218 Diff. kton 6.000 4.370 2.853 264 2.853 Focus trading on high margin products Gasoil import contributed to market share increase Low Sulphur Fuel oil was imported to produce heating oil without the need to process more sweet crudes.000 10.000 8.Progress in the near term strategy: Increasing Trading Activities 30% Increase in sales from imported products 2007 Domestic Gasoil Sales.704 2007 101 1. % -70% 35% 30% 23 .192 1.000 6. 2006 - 6.

1 9.9 Market Growth Tupraş Growth Share Increase 5.6 -2.2 2.Tüpraş vs The Market – 2007 /2006 Tüpraş increased its market share in automotive products. growing sale faster than the market Better sales strategy.3 Gas Oil 12 9 6 3 0 Market Growth Source: Tüpraş.0 Tupraş Growth Share Increase Tupraş Growth Share Increase .6 3 0 Market Growth Excluding Auto LPG 24 7.6 6. PetDer Automotive Fuels 12 9 6 1.9 10. National Marker & targeted discounting all had an impact Gasoline 6 4 2 0 -2 -4 4.

7% Export 24.Total Sales By Customers – 12 M 2007 Sales By Customer Group (%) Asphalt 8.4% LPG Dist.3% Petkim 3. 3.0% BP 12.80 % 25 .3% Petrol Retailers 54.4% Sales To Petrol Retailers (%) Others (45) 20.2% POAŞ 35.328 kton Shell 19.5% Total Sales: 26.8% Military 2.7% Others 2.8% First 4 Distributor’s Share in Total Sales to Distributors = 79.8% OPET 12.

6 3.000 500 0 Export by Product (kton) 6.152 2.390 373 S.000 1.0 1.9 2.4 3.000 6.000 3.845 400 Mn Ton Bn $ 4.TÜPRAŞ Exports 12M 2007/2006 7.301 470 562 2.0 04 05 06 07 26 .500 1.3 01 0.4 3.500 2.7 03 1. Arabia 6% USA 8% Export by Market Other 12% Italy 14% Croatia 7% Malta 6% Other Europe 10% Greece 9% 2.0 3.2 6.000 4.000 5.6 02 0.151 98 UAE 4% South Africa 9% Singapore 15% USA & Europe > 54% 8 6 4 Export By Years 6.8 2.238 135 6.737 405 1.500 4.500 3.0 12M 2006 Naphtha HVGO Gasoline Fuel Oil 12M 2007 Gas oil Other 2 0 0.500 6.4 1.000 2.500 5.

27 .

Strategy: Key Parameters Master Plan Investment Master Plan Investment  Euro V Specifications  Product Yield Improvements Restructuring Restructuring  HR Improvements  New Management Techniques  Trading Focus Operational Excellence Operational Excellence  Expense Reduction & Profitability  Productivity Improvements Profitability Focused Investment Profitability Focused Investment “Residium Upgrading”     Asphalt Maximizasion Crude / Product Blending Increased Tank Capacity Railway Transportation System Diesel Residium Upgrading Project  Fuel Oil  28 .

Including Related Interest Costs 2007 Master Plan 29 .Progress in the near term strategy: Investments On-Going Investment  May 31st: Izmit CCR onstream  July 8th : Izmit HDS onstream  Kırıkkale HDS &CCR 2nd Q 2008 Million $ 400 350 300 250 200 150 100 50 0 373 273 123 53 250 Other Investments  Wagon loading facilities in Izmit are completed  Tank investments to add 1 million M3 capacity (+20%)  8 MW Wind Turbine investment to be made in Izmir by 2011 220 2006 New and Other Inv.

289 670 281 -1.) (1) Difference (1)-(2) Kton % Kton % Kton Net Margin $/ton Maximum EBIT Million USD LPG Naptha Gasoline Jet Fuel Gas Oil Black Products Others Total Crude Processed 764 1.8 25.683 7.4 803.013 7.4 31.120 419 5.7 25.2 5.7 10.824 63 22.494 26.9 100.6 33.303 457 24.0 1.5 235.7 34.9 8.7 23.388 3.5 1.0 100.500 Note: Based on Optimal Crude Slate 30 .6 1.2 382.889 3.Upside Potential Products 2005 Actual Production (2) After Investment (Max.2 40 50 30 91.548 2.9 31.8 14.837 2.566 8.666 4.0 2.127 484 23.0 356 -969 2.847 6.

31 Profitability .TÜPRAŞ’s Major Investment Study-Residium Upgrading Why Residium Upgrade? • Jet-Gasoil demand growth • Contraction in Fuel Oil market • Alternative to new refinery projects • Matching Production to demand • Local trends are mirrored in global markets • Converts low-value black product to high-value white products • Increases Tüpraş’s margin premium over its competitors • Improves long term cash flow & income • Note: Makes no assumption about refinery margins going forward.

32 .

5 32.($/bbl) Operating Profit.2006 /2007 (Tax Purpose) Difference 2006 Dtd.8 32.5 5.1 67. ($/bbl) Brent vs Tupras Crude Cost. (mn.22 652 881 151 159 0.Brent Price. (%) Med.32 7.4% 23. $) 65.4 0.1 -4.4% -15.Profitability Indicators .1 5.7 (%) 11.86 501 722 2007 Amount 72.30 5.($/bbl) Tupras Margin. Complex Margin. $) EBITDA.4% 0. (mn. ($/bbl) Processed Crude API White Product Yield.5 67.5 -3.6% 33 .2% 30% 22% 7.

793 243 (128) 115 49 (2) 163 131 % Diff. (Net) Finance Expenses Profit Before Tax Net Profit 14. Million USD 2006 2007 15. 40 129 128 130 93 (112) 79 76 Net Sales Gross Profit Operating Expenses Operating Profit Income From Others.115 768 (267) 501 129 (11) 619 507 12 41 61 30 88 37 42 40 34 .838 1.Income Statement :2006/2007 (Tax Purpose) 4Q 2006 3.429 106 (56) 50 25 15 91 74 4Q 2007 4.081 (429) 652 243 (15) 880 708 % Diff.

909 Recievables:267 Short Term Loans:74 Financial Loans: 322 Stock:1.798 +4 35 .FX Risk (2007 Tax Purpose) Consolidated Assets Consolidated Liabilities Cash: 244 Payables: 1.

1 2003 8.Financial Highlights EBITDA (USD Million) New One Off 5.1 12.1 15.8 2007/9M 2005 2006 Natural Gas 881 768 769 711 769 Net Income (USD Million) 356 279 429 491 154 2007 Tax 2001 291 116 2007 Tax 2002 2003 2004 2005 2006 2007/9M 508 575 725 708 2001 2002 2003 2004 2005 2006 2007 Tax = Results for Tax Purposes 36 2007/9M 2007 Tax .2 2002 6.1 14.2 2001 Revenue (USD Billion) 5.6 2004 11.

in addition to investing.0 1.0 0.5 0.5 3. with a good ability to generate dividends.Dividends Tüpraş is a cash generating company.0 Earnings & Dividends YTL/Share 2002 2003 2004 2005 2006 Earnings Per Share Dividend 37 .5 Tüpraş plans to continue to pay out 100% of distributable income 3.0 2. In 2006 the dividend yield was around %8.5 1.5 2.

(Neg) BB (Stab) BB (Stab) National Shareholders Transparency Stakeholders Board 0% 77.31 88. 2008 SOVEREIGN TÜPRAŞ Vestel Hürriyet Turkcell FOREIGN CURRENCY Corporate Governance Rating Overall 79.09 62.12 LOCAL CURRENCY Long-term BB (Stab) BBB-(Stab) BB.Ratings & Corporate Governance Fitch Rating Comparison As of January 28.65 50% 100% Rating by Saha Ratings 38 .34 88.(Neg) BB (Stab) BBB-(Stab) AAA (tur) (Stab) AA (tur) (Stab) - Long-term BB (Stab) BB (Stab) BB.

Highlights • Driven by Global Economic Growth • Increasing costs and project timelines • Sustainable economic growth • Rapid car park growth • Currently low per capita oil consumption • 4 well located refineries • Strategically valuable & profitable affiliates • Improvements in production mix and efficiency • Strengthening competitive position & profitability • Post privatisation management changes • HR Restructuring • Profitable opportunities for further investment • Strong cash generation ability & improving results • Strong performance under volatile environments 39 Strong Global Oil Demand Lagging Refinery Investments Growing & High Potential Domestic Market Domestic Monopoly Improving Operations Investments Restructuring Upsides Further Upgrade Potential Profitability Safe Haven .

tupras.Thank you… The Investor Relations section of our company website has a wealth of constantly updated information of interest to investors.tr 40 .com. www.

41 .

Invt.9% Enerji Yatırımları A. B.Ş.0% (Foreign Investor’s Share: ~85%) 42 .V 1.98% Free Float 49% 40.1% Ditaş 79.TÜPRAŞ Shareholder Structure Koc Holding 75% Aygaz 20% Opet 3% Shell O. 51% Shell Turkey 0.

3 Sustainable growth in sales and income 0 2004 2005 2006 2007 43 .7 14. with 5 Terminals total 850. Bunkering & Lubricants Opet Auto Fuels Market Share 2006 Revenue $4 Billion 20 15 2006 EBITDA $145 Million 10 5 9. Opet Tüpraş entered the retail market • Purchasing 40% of Opet shares for US$380 million from Aygaz (Dec 2006) Retail Business • Turkey’s 3rd largest • 1.6 2003 11.300 Retail sites.000 M3 Reasons for investment • First Step in diversifying along the value chain • Positive impact on earning going forward Other Business • Petrol Trading.4 15.5 12.The Distribution Business. 2 Brands Storage Capacity • Second largest in Turkey.

1 5.945 1.677 Shell 4.776 2.6 14.523 18.% 12.7 14.312 Share.9% y-o-y in 2007 44 .225 2.173 2.% 11.611 2.9 3.Market Share in Retailing 2007/2006 (1000 M3 ) Share.385 28.1 6.3 20.086 32.9 1.841 OPET 15.624 5.4 6.580 1.651 POAŞ 5.9 2006 Source: PETDER 2007 Motor Fuels sales increased by 5.9 14.9% others Total BP 2.9 17.3 21.

“Operational Excellence Program" with SHELL Global Solutions Operational Excellence Programme (OEP) Opportunity Confirmation Phase Implementation Phase 2006 2007 10 2008 44 2009 75 2010 115 2011 138 Total 378 Net Benefit. Mn$ The program areas for OEP are:  Hydrocarbon Margin  Maintenance and Reliability  Energy and Loss  Operating and Maintenance cost  Health and Safety Environment  Selective De-bottlenecking 45 .

100 120 140 150 160 130 110 80 04 Jan 18 Jan 01 Feb 15 Feb 01 Mar 15 Mar 29 Mar 12 Apr 26 Apr 10 May 24 May 07 Jun 21 Jun 05 Jul 19 Jul 02 Aug 16 Aug 30 Aug 13 Sep 27 Sep 11 Oct 25 Oct 08 Nov 22 Nov 06 Dec 20 Dec ISE Relative Performance 2007 90 IMKB-100 Relative P46 46 Tüpraş Relative .

Disclaimer This presentation contains forward-looking statements that reflect the Company management’s current views with respect to certain future events. managers or employees nor any other person shall have any liability whatsoever for any loss arising from use of this presentation. they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Tüpraş nor any of its directors. 47 . Although it is believed that the expectations reflected in these statements are reasonable.

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