Turcas Petrol : 2024 1Q Earnings Release

2024 1st Quarter Earnings Presentation

1Q24 General Overview

			IFRS Consolidated Net Income Bridging (1Q24) (Inflation Adjusted) (MM TL)	Turcas 1Q24
			Net Loss: -19 MM TL
				25	-47
			203	8
		30	-189			-50

-19

Turcas' Share in STAŞ	Turcas' Share in RTG STAŞ BPA Revenues	Other (Net)*	Net Financing Income	Opex	Monetary Loss	Net Loss as of 1Q2024
Net Profit	Net Loss		(o/w 26 MM TL from
			net FX gains)

* Rent & Service income and other income (+4.9 MM TL), Fair Value Difference Of Venture Capital Investment Fund (+4.5 MM TL), STAŞ Preferred Shares Revaluation Loss (-0.8 MM TL) and Deferred Tax Expense (-0.3 MM TL)

1Q24 Inflation Adjusted ("IA") results were marked by below performance factors:

1. Shell&Turcas's Net Profit of +101 MM TL thanks to positive operational performance and stock gains resulting from oil price increases. Net Profit of Shell&Turcas before IA is +548 MM TL - main reason for the delta is the increase of depreciation expenses due to IA indexation of right of use assets and fixed assets;

(-) RWE&Turcas's Net Loss of -629 MM TL as a result of insufficient operational margins. Net Loss of RWE&Turcas before IA has been -81 MM TL - main reasons for the delta is (i) 213 MM TL monetary loss due to IA indexation of capital accounts and (ii) 385 MM TL deferred tax expense;

1. 203 MM TL STAŞ BPA ("Balancing Payment Agreement") Revenues;

1. 26 MM TL Net FX Gains; thanks to the FX denominated cash position and significant decrease in the Company's total loan balance as a result of the well on track financial deleveraging (Slide#12);

(-) Net Monetary Loss booked mainly due to IA indexation of capital accounts amounting to -50 MM TL.

1

Restatement of YE2023 Financials

Turcas Petrol's 30% owned subsidiary RWE & Turcas has identified a mistake in YE23 financial statements in the deferred tax expense recognition and calculations (as per IAS 29). The impacts of this mistake has been adjusted by restatement of YE23 financial statements of RWE & Turcas.

As Turcas Petrol books its 30% stake in RWE & Turcas under "Investments Accounted by Equity Method" in its Balance Sheet, the effects of this restatement has been on the "Investments Accounted by Equity Method" in Turcas' YE23 Balance Sheet and on "Net Income / Loss" in Turcas' Income Statement for 2023.

The effects of this restatement on the YE2023 financials of Turcas Petrol has been presented below:

Effect on YE2023 Net Income	Effect on YE2023 Summary Balance Sheet
TL		YE2023 - Previously	Effect of	YE2023 - Restated
		Turcas Petrol A.Ş.	Reported Figures Restatement	Figures
		Total Current Assets	402,492,365	-	402,492,365
		Total Non-Current Assets	6,439,598,689	457,285,548	6,896,884,237
		-Investments Accounted by Equity Method	5,886,536,288 457,285,548	6,343,821,836
		-OtherNon-Current Assets	553,062,401	-	553,062,401
		Total Assets	6,842,091,054 457,285,548	7,299,376,602
		Total Short-Term Liabilities	242,167,561	-	242,167,561
		Total Long-Term Liabilities	181,021,201	-	181,021,201
		Total Equity	6,418,902,292	457,285,548	6,876,187,840
		-Other Equity Accounts	6,049,813,671	-	6,049,813,671
		-Net Profit for the Period	369,088,621	457,285,548	826,374,169
		Total Liabilities & Equity	6,842,091,054	457,285,548	7,299,376,602

Abovementioned restatement has been made on IFRS financials of Turcas as of 31.12.2023. However, the Statutory Financials as of the same date has not changed. Pursuant to Resolution of Board of Directors dated 22.04.2024, it has been proposed not to distribute dividend due to Previous Years Losses on Statutory Financials and the relevant proposal has been approved at the Ordinary General Assembly held at 15.05.2024. Therefore, above mentioned change does not affect Company's Statutory Financials and does not create any change on the decision of not distributing dividends in accordance with financial statements as of 31.12.2023.

2

At a glance - 1Q24 vs [1Q23] (with "IA")

		Retail (Fuel Distribution & Lubricants)
	VOLUME	NET SALES	EBITDA	NET PROFIT
	1,833	62,780	1,896	101
	ths m3	MM TL	MM TL	MM TL
Shell & Turcas	in 1Q24	in 1Q24	in 1Q24	in 1Q24
	[1,798 ths m3 in 1Q23]	[56,443 MM TL in 1Q23]	[287 MM TL in 1Q23]	[-759 MM TL in 1Q23]
		Electricity (Power Generation)
	567 MM	1,971	92	-629
	kWh	MM TL	MM TL	MM TL
RWE & Turcas	in 1Q24	in 1Q24	in 1Q24	in 1Q24
	[484 MM kWh in 1Q23]	[3,490 MM TL in 1Q23]	[114 MM TL in 1Q23]	[81 MM TL in 1Q23]

Notes:

• As per IAS 29 (financial reporting in hyperinflationary economies), 1Q2023 figures are escalated to present all figures with purchasing power as of end of 1Q 2024.
• IA : Inflation Accounting
• STAS Volume includes Onsite B2C Fuels, Onsite B2B Fuels, Commercial Fuels , LPG, Lubricants. Excluding Supply Third Party Sales.

3

Associates of Turcas - Summary Balance Sheet Figures

	Retail (Fuel Distribution & Lubricants)
TOTAL ASSETS	LIABILITIES	SHAREHOLDERS	PAID-IN CAPITAL
EQUITY

		42,888	28,257	14,631	528
		MMTL	MM TL	MM TL	MM TL
Shell & Turcas	in 1Q24	in 1Q24	in 1Q24	in 1Q24
		[45,945 MM TL in YE23]	[31,381 MM TL in YE23]	[14,564 MM TL in YE23]	[528 MM TL in YE23]
			Electricity (Power Generation)
		10,230	1,036	9,194	1,163
		MM TL	MM TL	MM TL	MM TL
RWE & Turcas	in 1Q24	in 1Q24	in 1Q24	in 1Q24
		[10,843 MM TL in YE23]	[1,020 MM TL in YE23]	[9,823 MM TL in YE23]	[1,163 MM TL in YE23]
				Combined Equity of Associates:	MCap of Turcas: 6.8 Billion TL
				23,825 MM TL
					Book Value of Turcas: 7.9 Billion TL
				Turcas' Share in Associates'	(as of 2024 1Q)
				Combined Equity: 7,148 MM TL
					P/B Value: 0.85x

All figures demonstrate After IA figures as per IAS 29 (financial reporting in hyperinflationary economies). Figures for 2023 are escalated in order to present all figures with purchasing power as of end of 1Q 2024.

YE23 figures for RWE & Turcas are based on the 2023 year-end restated financials.

4

Quarterly Segmental Analysis

MM				Oil Segment				Energy Segment
		Shell & Turcas				RWE & Turcas
TL
	(Turcas share: 30%)	(Turcas share: 30%)
		Revenues		EBITDA			Net Profit/		Revenues	EBITDA			Net Profit/
					Loss				Loss
				After Inflation Accounting
1Q24		62,780		1,896			101		1,971	92			-629
1Q23		56,443		287			-759		3,490	114			81
				Before Inflation Accounting
1Q24		62,587		1,814			548		1,901	33			-81
1Q23		32,647		155			-473		2,019	78			129

5

Shell & Turcas JV - Volumes & Market Share

Onsite B2B + B2C Fuel Sales

ths m3

		+4% q/q	1,354
	1,300
			+x,xxx
	+x,xxx		in Q2
	in Q2

		1Q2023			1Q2024
			Lubricants Sales
ths m3
				+17% q/q
			54
46
					+xx
		+xx			in Q2
		in Q2

1Q2023

1Q2024

Commercial Fuel Sales

ths m3

269
-1% q/q	267

+xxx

in Q2+xxx in Q2

		1Q2023							1Q2024
	Onsite Market Share Progress in 2021 - March 2024	1
	23.0%	21.6%						21.9%		22.1%	21.8%
	22.0%						21.6%
	21.5%
	21.0%				21.4%	21.7%		19.5%
	20.0%	18.8% 18.8%18.8%	19.3% 19.3%
	19.0%
	18.1%							19.3%	19.2%
	18.0%
	18.8%	18.2%	18.4%18.4%	18.7%
	17.0%
	16.0%
	Jun. 21' Jul. 21' Aug. 21' Sept. 21' Oct. 21' Nov. 21' Dec. 21' Jan. 22' Feb 22' Mar. 22' Apr. 22' May. 22' Jun. 22' Jul. 22' Aug. 22' Sep. 22' Oct. 22' Nov. 22' Dec. 22' Jan. 23' Feb. 23' Mar. 23' Apr. 23' May. 23' Jun. 23' Jul. 23' Aug. 23' Sep. 23' Oct. 23' Nov. 23' Dec. 23' Jan. 24' Feb. 24' Mar. 24'
				Shell			Opet			PO (Vitol)

Source: STAŞ management reports. Market share info: EMRA

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Shell & Turcas JV - Key Financial Highlights

Net Sales		EBITDA

MM TL

	+11% q/q	62,780
56,443
1Q2023		1Q2024

MM TL

+560% q/q	1,896
287
1Q2023	1Q2024

Net Profit / Loss

Shell & Turcas 1Q24 Highlights

MM TL

+113% q/q

101

	1Q2023		1Q2024

-759

Source: STAŞ IFRS consolidated financials

• Total sales volume is up by 2% compared to the same quarter of the previous year.
• Net sales (before IA) has increased by 93% QoQ basis demonstrating the significant price increase effect (beyond the volume increase mentioned above) due to the increase in oil / product prices and FX.
• EBITDA has increased sharply both before and after IA and 1Q24 EBITDA (after IA) has been realized as 1,896 MM TL thanks to positive operational performance.
• Net Profit of Shell&Turcas before IA has been realized as 548 MM TL thanks to positive operational performance and stock gains resulting from oil price increases; while Net Profit after IA has been realized as 101 MM TL - main reason for the delta is the increase of depreciation expenses due to IA indexation of right of use assets and fixed assets.

All figures demonstrate After IA figures as per IAS 29 (financial reporting in hyperinflationary economies). Figures for 1Q 2023 are escalated in order to present all figures with purchasing power as of end of 1Q 2024.

7

Cash inflows from Shell & Turcas

MM TL

265

30

																		177
																			203
														65
												57					168
	5	10	16				23								85		120
			13		14						75
7		53		16						70
50	45					51	41
31		30	33	36							30
26	27	24
2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	*
5M 2024

MM USD

4

7

11

6	8					15
			11
39		9	8			11
34
	30
20	18
	15	16	15		13					7
		12		13	10	11
					9	10
						8
											4

8

1

6

1

2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	5M 2024
			Ordinary Dividends Received from Shell & Turcas			BPA Revenues & Preferred Dividends & SHL Interest Received from Shell & Turcas
	The figures demonstrate actual amounts received in the respective year with no IA adjustment.		Collections expected in the remaining of the year
		Relevant TL and USD figures are calculated with an estimated FX rate
	The figures exclude VAT (received / paid).
	* BPA Revenues (6.30	MM USD-excl. VAT; 7.55 MM USD-incl. VAT) and Ordinary Dividends (30 MM TL) collected in 1Q24.
	Preferred Dividends (8 MM USD) and 2nd Ordinary Dividends (30 MM TL) will be collected in June'24.
						8

RWE & Turcas JV - Key Operational Highlights

						Gas Consumption											Electricity Generation
mcm													GWh
							+17% q/q															+17% q/q		567
								108												484
					92			+149																+779
							in Q2																	in Q2
																	+789
					+153															in Q2
					in Q2
					1Q2023		1Q2024										1Q2023					1Q2024
		RTG Average Electricity Sales Price (TL/MWh)							Cash inflows to Turcas from RWE & Turcas JV*
															MM TL				SHL Repayment		Cash Capital Decrease			Dividend Payment
								4,506
						4,004
								3,519
						2,644	2,500
								2,232		2,471
						1,530	2,268																				169
						913											32										83
					421													20
					557								8				11	11	8	6
			308																30
323
														2013	2014	2015	2016	2017	2018	2019			2022	2023
		4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24

• The figures demonstrate actual amounts received in the respective year with no IA adjustment. Source: RWE & Turcas management reports

9