CTURKCELLhi d fThird Quarter of 2010

November 4, 2010

Notice

This presentation may contain statements that arep yforward looking. These statements are based oncurrent expectations and assumptions that are subjectto risks and uncertainties which may cause actualresults to differ materially due to factors discussed inff y fthis presentation, in our press release, in the RiskFactors section of Turkcell’s most recent Form 20‐F orin other reports and filings with the US Securities andExchange Commission. We undertake no duty toExchange Commission. We undertake no duty toupdate or revise any forward looking statements,whether as a result of new information, future eventsor otherwise.

Please note that all financial data areconsolidated whereas non‐financial data areunconsolidated unless otherwise specifiedunconsolidated unless otherwise specified.

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• BUSINESS OVERVIEWBUSINESS OVERVIEW

• FINANCIAL OVERVIEW

Turkcell Group: Continued to improve profitability in Q3

R d li d b 1 7% Y Y d

Turkcell Group

(TRY1 mn • Revenue declined by 1.7% YoY due to reduction in MTRs and maximum price cap

• Revenue grew by 3 8% QoQ

(TRY mnConsolidated)

Q309 Q210 Q310 YoY (%) QoQ (%)

Revenue 2,368.0 2,241.2 2,327.4 (1.7%) 3.8% • Revenue grew by 3.8% QoQmainly due to– 10% growth in mobile internet

& services revenue of Turkcell 

, , , ( )

EBITDA2 813.7 724.4 863.6 6.1% 19.2%

Turkey– 3% increase in voice3 revenues 

of Turkcell TurkeyEBITDA Margin2 34.4% 32.3% 37.1% 2.7pp 4.8pp

• EBITDA margin uptake of 2.7pp YoY and 4.8pp QoQ due to reduction in costs

Net Income 496.8 422.3 556.3 12.0% 31.7%

reduction in costsAvg. TRY / $ rate  1.4910 1.5266 1.5109 1.3% (1.0%)

1 TRY  figures in this slide are based on IFRS TRY figures2 EBITDA is a non‐GAAP financial measure.     3 Includes outgoing and incoming call revenues and roaming revenues

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Turkcell Turkey: Positive ARPU and MoU trends continue

MoU (min)

89% 87% 85% 85% 85%• 32.6% YoY higher

Mobile Line Penetration*

32.6%

148.6     171.0    197.1    

17%15% 14% 14% 13%

MoU owing to positiveeffects of retention campaigns

Q309 Q210 Q310Q309 Q409 Q110 Q210 Q310

Penetration (%) Multiple simcard usage (%)

• QoQ increase mainly due to seasonality

ARPU (TRY)

36 0 33 9

Penetration (%) Multiple simcard usage (%)

Bl d d ARPU i d

Subscribers (mn)

41 8 40 5

26 9 24 2 24 0

9.1    9.8    9.9   

33.9 36.0 33.9  • Blended ARPU improved 3.6% YoY despite MTR decrease:― Increased postpaid 

b

41.8 40.5 41.0

12.5 11.2 12.0

19.7 19.4 20.4

26.9    24.2    24.0   

Q309 Q210 Q310Prepaid Postpaid

base― Increase in MoU― Higher mobile 

internet & service Q309 Q210 Q310Postpaid Prepaid Blended

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Prepaid Postpaidrevenues

* Based on our best estimations, operators’ and ICTA announcements

Turkcell Turkey: Strong uptake in mobile internet and services revenues

YoY % Chg.9M10: 1,197FY09: 1,281

Mobile internet and services revenues* (TRYm) Mobile internet revenues (TRYm)

83.7%

388333

425341 28%

29%Q2

Q3

Q4

65 6107.1 120.5

305 383301

388

FY09 9M10

29%

26%Q1

Q2 65.6

Q309 Q210 Q31009 9 0

Mobile internet and services revenues % of total revenues

4.9pp

• Turkcell branded smartphone: T10― Aiming to increase smartphone 

penetration through affordable 

15.6%

19.6% 20.5%

15.1%18.7% 19.5%

• Monthly average mobile internet users increased

p gprices together with best internet and Turkcell experience

Q309 Q210 Q310

Monthly average mobile internet users increased to 8.1mn

• On Turkcell’s network there are now― 5.8 mn 3G devices

1 6mn smartphones

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Turkcell Turkey Consolidated

* Includes revenues from SMS/MMS, mobile internet and other services

― 1.6mn smartphones

Superonline: Fiber optic expansion on track

• Strong revenue growth at 32 3%

TRY mn Q309 Q210 Q310 YoY (%) QoQ (%)

Revenue 68 8 80 9 91 0 32 3% 12 5% • Strong revenue growth at 32.3% YoY with share of non‐Group revenues 59% in Q310

Revenue 68.8 80.9 91.0 32.3% 12.5%

EBITDA 4.5 10.5 11.2 148.9% 6.7%

EBITDA Margin 6 6% 13 0% 12 3% 5 7 (0 7 ) • Increased Group synergies:

― Superonline further increased its share in Turkcell’s transmission

EBITDA Margin 6.6% 13.0% 12.3% 5.7pp (0.7pp)

Capex 62.3 65.8 112.3 80.3% 70.7%

share in Turkcell s transmission costs  to more than 40%

― In terms of capacity  Superonline carries approx 66% of Turkcell’s42%

Share in Turkcell’s  transmission costs

carries approx. 66% of Turkcell s transmission

• Fiber optic network reached 18.4 th d k

13%20% 24%

30% 33% 37%42%

thousand kmQ109 Q209 Q309 Q409 Q110 Q210 Q310

Consolidated Transmission costs trendSuperonline's share in Turkcell's transmission costs

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Ukraine: Further improvement in EBITDA margin

• Continued focus on profitability 

USD mn Q309 Q210 Q310 YoY (%) QoQ (%)

Revenue 93.2 89.5 84.9 (8.9%) (5.1%)

• Close down of non‐profitable carrier business line 

EBITDA 7.4 20.3 21.5 190.5% 5.9%

EBITDA Margin 7 9% 22 7% 25 3% 17 4pp 2 6pp • Resulted in a revenue decline of 8.9% in USD terms YoY

• EBITDA margin improvement

EBITDA Margin 7.9% 22.7% 25.3% 17.4pp 2.6pp

Capex 31.9 12.9 5.0 (84.3%) (61.2%)

$

25.3%

EBITDA margin improvement maintained owing to:― Decline in interconnect costs mainly 

due to tarrif redesigns and lower

Continued improvement in EBITDA margin

Avg. UAH/$ rate 7.8357 7.9223 7.8965 0.8% (0.3%)

7.9% 7.4% 7.0%

22.7%due to tarrif redesigns and lower interconnect rates 

― Effective cost control measures resulting in declining selling expenses

4.6% 2.7%7.4% 7.0%

Q109 Q209 Q309 Q409 Q110 Q210 Q310

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Turkcell Group: Investing for future growth

C t C

Building on Value & Profitability Changing World & Needs

Sales & Marketing

Training & Support

Customer Care

“Strong BRAND” “MOBILITY”Smartphones

Sales  & Marketing

Applications

Project Management“Best  CUSTOMER 

& USER “INTERNET”

New emerging business lines

Device/Handset

Applications

3G Network

& USER EXPERIENCE”

INTERNET

Higher speed access

3G Network

Fiber Backbone

2G Network “Superior INFRASTRUCTURE”

“CONVERGENCE” Total telecom solutions

Fiber Backbone

Well‐positioned for the “New World”

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p f

• BUSINESS OVERVIEW

• FINANCIAL OVERVIEW

NOTICE:

Please note that all financial data are consolidated whereas non‐financial data are unconsolidated unlessotherwise specified.EBITDA is a non‐GAAP financial measure. Please refer to the press release for the reconciliation of EBITDA to netcash from operating activities.All non‐financial data are unconsolidated, prepared in accordance with IFRS and expressed in US$ and/or TRY.The figures used in this presentation are rounded while percentage changes are calculated based on the figuresdisclosed in the Q3 2010 result announcement press release.

Turkcell Group: Revenue

2,368 Δ in Turkcell Turkey: ∑ (TRY 66.7mn)

YoY: (1.7%)

2,327

(158.7)92.0

26.1YoYQ310 vs Q309

Revenue Q309 Δ in Voice and others

Δ in  Mobileinternet&services

Δ in Subsidiaries Revenue Q310

2 327Δ in Turkcell Turkey: ∑ TRY 89.2mn

QoQ: 3.8%

2,241

2,327

52.037.2 (3.0)

u ce u ey ∑ 89

QoQQ310 vs Q210

Revenue Q210 Δ in Voice and others

Δ in  Mobileinternet&services

Δ in Subsidiaries Revenue Q310

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Turkcell Group: EBITDA margin

34.4%37.1%

1 7pp (0 9pp) 1.9pp

YoY: 2.7pp

1.7pp (0.9pp) 1.9pp

YoY net EBITDA impact of interconnect: TRY ‐65 million (Turkcell Turkey)

YoYQ310 vs Q309

EBITDA Q309 Δ in Direct costof revenues

Δ in General & Admin. Exp.

Δ in Selling &Marketing exp.

EBITDA Q310*

32 3%37.1%

QoQ: 4.8pp

32.3%0.7pp 1.0pp

3.2ppQoQ

Q310 vs Q210

EBITDA Q210 Δ in Direct costof revenues

Δ in General & Admin. Exp.

Δ in Selling &Marketing exp.

EBITDA Q310*

12*Depreciation and amortization expenses are not included

Turkcell Group: Net Income 

(34 5) (3 3) 12 1 77.2 6.7 1.3

YoY: 12.0%

496.8 556.3

(34.5) (3.3) 12.1 .

Δ in EBITDA 49.9

Δ in Depreciation (84.4)

YoYQ310 vs Q309

Net income  Q309

Δ in EBIT Δ in Interest Inc./Exp.

Δ in Equity in Net 

Inc./Loss

Δ in FX Gain/Loss

Δ in Other Inc./Exp.

Δ in Taxation

Net income  Q310

108 3 (17.0) 7.5 50.9 9.3 (25.0)

QoQ: 31.7%

422.3556.3

108.3 (17.0) 7.5

Δ in EBITDA 139.2

Δ in Depreciation (30.9)

QoQQ310 vs Q210

Net income  Q210

Δ in EBIT Δ in Interest Inc./Exp.

Δ in Equity in Net 

Inc./Loss

Δ in FX Gain/Loss

Δ in Other Inc./Exp.

Δ in Taxation

Net income  Q310

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Turkcell Group: Balance Sheet Higlights

TRY mn Q309 Q210 Q310

Cash & Cash Equivalents  3,916  4,193 4,623QoQ: 10.2%

Net Cash Flow (TRY mn)

q 3,916  , ,

Total Assets  13,153  14,071 14,496

Total Debt  (1,722) (2,664) (2,609)

864   (310) 64    156 (344)   

4,1934,623

Net Cash 2,194 1,529 2,014

Total Equity  8,547 8,740 9,322

Equity ratio 65.0% 62.1% 64.3%

• Strong balance sheet is maintained• Strong balance sheet is maintained

– Equity ratio is around 64.3% 

• Consolidated debt of TRY2.6bnk ll k 0 6b Cash at 

30‐Jun‐10EBITDA Capex Net 

interestincome/expense

Net change in debt

Other Cash at 30‐Sep‐10

– Turkcell Turkey :TRY0.6bn– Astelit Ukraine: TRY0.9bn

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• AppendixAppendix

Summary Income Statement as per CMB1 Financials (TRY  million)

(TRY1 m Consolidated)

Q309 Q210 Q310 YoY (%) QoQ (%)

Revenue 2,368.0 2,241.2 2,327.4 (1.7%) 3.8%

Direct Cost of 2

(1,243.2) (1,217.7) (1,269.0) 2.1% 4.2%Revenues2   

( ) ( ) ( )

S&M   (430.9) (436.3) (379.3) (12.0%) (13.1%)

G&A   (100.8) (137.6) (120.6) 19.6% (12.4%)

EBITDA 813.7 724.4 863.6 6.1% 19.2%

EBITDA Margin 34.4% 32.3% 37.1% 2.7pp 4.8pp

Net Income 499 4 425 2 557 6 11 7% 31 1%

1 Capital Markets Board of Turkey2 Depreciation and amortization is included

Net Income 499.4 425.2 557.6 11.7% 31.1%

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Consolidated Cash Flow ($ million)

Q309 Q210 Q310 YoY (%) QoQ (%)

EBITDA  545.4 474.1  570.7 4.6% 20.4%

LESS:

Capex and Licence (326.1) (220.8) (253.0) (22.4%) 14.6%Capex and Licence (326.1) (220.8) (253.0) (22.4%) 14.6%Turkcell (196.4) (136.5) (122.1) (37.8%) (10.5%)

Euroasia (Ukraine) (31.9) (12.9) (5.0) (84.3%) (61.2%)

Investments & Marketable S i i

30.6 30.0  ‐ ‐ ‐Securities

30.0

Interest income/expense 45.4 53.4  42.7 (5.9%) (20.0%)

Other (25.5) (160.5) 57.4 (325.1%) (135.8%)

Net change in debt 409.0 180.7  104.8 (74.4%) (42.0%)

Dividends paid by Turkcell ‐ (573.5) ‐ ‐ ‐

Cash Generated 678.8 (216.4) 522.6 (23.0%) (341.5%)Cash Generated                       6 8.8 (216.4) 522.6 (23.0%) (341.5%)

Cash Balance 2,642.3 2,662.7 3,185.3 20.6% 19.6%

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Consolidated Balance Sheet ($ million)

Q309 Q210 Q310 YoY (%) QoQ (%)

Cash & bank 2 642 2 663 3 185 20 6% 19 6%Cash & bank  2,642 2,663 3,185   20.6% 19.6%

CURRENT ASSETS   3,833 3,910 4,487     17.1% 14.8%

Fixed assets, net  4,479 4,504 4,873     8.8% 8.2%Other long term assets 563 522 629 11.7% 20.5%Other long term assets   563 522 629     11.7% 20.5%Total Non‐current Assets 5,042 5,026 5,502     9.1% 9.5%

Total Assets   8,875 8,936 9,989     12.6% 11.8%

S/t debt   602 629 417   (30.7%) (33.7%)

Total Current Liabilities  2,025 1,993 1,790     (11.6%) (10.2%)

L / t debt   561 1,063 1,381    146.2% 29.9%

Total Non‐current Liabilities  1,082 1,393 1,776     64.1% 27.5%

Minority Interest  33 (1) (10)     (130.3%) 900.0%

Share Capital   1,636 1,636 1,636     0.0% 0.0%

Total Equity  5,767 5,550 6,424     11.4% 15.7%

Total Equity and Liabilities  8,875 8,936 9,989     12.6% 11.8%

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q y , , ,

THANK YOUTHANK YOU . . .

investor.relations@turkcell.com.tr

www.turkcell.com.tr

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