2Q20 RESULTS SUMMARY Key Financial Data 2Q'19 2Q'20 Change 1H'19 - PowerPoint PPT Presentation

2Q’20 RESULTS SUMMARY

Key Financial Data 2Q'19 2Q'20 Change 1H'19 1H'20 Change (USD mn) 3.181 901 -71,7% Revenue 5.949 3.434 -42,3% 2.696 115 -95,7% Passenger Revenue 4.971 2.107 -57,6% 393 747 90,1% Cargo Revenue 799 1.213 51,8% 10 -232 - Net Operating Profit / Loss -193 -532 - 15 -118 - Profit From Main Operations -135 -442 - 26 -327 - Net Income -203 -654 - 0,8% -36,3% -37,1 pt Net Income Margin -3,4% -19,0% -15,6 pt 561 308 -45,1% EBITDAR 919 560 -39,1% 17,6% 34,2% 16,6 pt EBITDAR Margin 15,5% 16,3% 0,8 pt 2

Revenue Development (2Q’19 vs 2Q’20) (mn USD) Pax RASK Cargo and Other (Ex-Currency, Ex- Revenue L/F) Load Factor Currency Volume (Ex-Currency) -16 +45 -26 +309 -2.592 2.696 Passenger (-96%) 115 Cargo (90%) 747 393 Other (-58%) 92 39 ∑ ∑ 3.181 901 Total Revenue (-72%) 2Q'20 2Q'19 3

Revenue Development (1H’19 vs 1H’20) (mn USD) Pax RASK Cargo and (Ex-Currency, Other Revenue Currency Load Factor Ex-L/F) (Ex-Currency) -74 +58 Volume -143 +366 -2.722 4.971 Passenger (-58%) 2.107 Cargo (52%) 1.213 799 Other (-36%) 179 114 ∑ ∑ 5.949 3.434 Total Revenue (-42%) 1H'20 1H'19 4

Unit Revenue Development 4,5% 33,1% RASK (U RAS (USc) Sc) 7,91 7,67 6,01 5,95 5,86 5,76 2Q'19 2Q'20 2Q'20 ex-currency 1H'19 1H'20 1H'20 ex-currency Pas asse senger RAS RASK (U (USc) Sc) 6,0% -4,1% 6,20 5,85 5,80 5,60 5,37 5,21 2Q'19 2Q'20 2Q'20 ex-currency 1H'19 1H'20 1H'20 ex-currency %1,8 %27,9 Rev Revenue Yie Yield (R/ (R/Y) ) (U (Usc) sc) 19,7% 9,32 8,72 7,29 7,12 6,99 6,91 2Q'19 2Q'20 2Q'20 ex-currency 1H'19 1H'20 1H'20 ex-currency Revenue Yield (R/Y) Total Passenger Revenue / RPK 5 Passenger RASK: Total Passenger Revenue / ASK RASK: Total Passenger and Cargo Revenue / ASK* *ASK value is adjusted for cargo operations adding Cargo Available Ton Km.

Regional Yield Development in USD (2 Q’1 9 vs 2 Q’ 20) Am America Eur Europe Asia / Far Asia Far Eas East Passenger R/Y ex- Passenger R/Y ex- Passenger R/Y ex- ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency 175,9% 173,0% 35,5% 65,3% 65,8% 33,3% 31,2% 25,3% 19,9% 49,6% 45,0% -0,1% -98,9% -97,2% -95,8% Afr Africa Mid iddle Eas East Dom Domestic Passenger R/Y ex- Passenger R/Y ex- Passenger R/Y ex- ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency 78,2% 61,5% 62,2% 71,9% 13,5% 56,7% 40,1% 23,2% 12,2% -2,7% -14,1% -13,8% -98,5% -83,7% -98,1% Revenue Yield (R/Y) Total Passenger Revenue / RPK 6 Passenger RASK: Total Passenger Revenue / ASK RASK: Total Passenger and Cargo Revenue / ASK* *ASK value is adjusted for cargo operations adding Cargo Available Ton Km.

Regional Yield Development in USD (1H ’1 9 vs 1H ’ 20) Am America Europe Eur Asia / Far Asia Far Eas East Passenger R/Y ex- Passenger R/Y ex- Passenger R/Y ex- ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency 8,5% 2,7% 2,2% 1,6% 6,6% 4,3% 1,5% -3,9% -5,6% -4,2% -11,0% -7,7% -55,0% -49,7% -57,8% Afr Africa Mid iddle Eas East Dom Domestic Passenger R/Y ex- Passenger R/Y ex- Passenger R/Y ex- ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency ASK RASK RASK R/Y currency 0,8% 0,3% 14,5% 1,9% -1,4% -6,2% -2,6% -6,0% -6,7% -5,8% -4,4% -3,9% -49,2% -51,2% -60,6% Revenue Yield (R/Y) Total Passenger Revenue / RPK 7 Passenger RASK: Total Passenger Revenue / ASK RASK: Total Passenger and Cargo Revenue / ASK* *ASK value is adjusted for cargo operations adding Cargo Available Ton Km.

Profit From Main Operations Bridge (2 Q’1 9 vs 2 Q’ 20) (mn USD) Load Currency Factor Fuel Utilization Other* Ex-Fuel Unit Cost (Ex-Currency, Ex- RASK Utilization, Ex-L/F) (Ex-Currency, Ex- L/F) Revenue Effect : -16 mn USD Cost Effect : +44 mn USD 2Q'19 2Q'20 Profit from Main Operations *Includes other operating income, other operating expense and FX gains/losses from operational activities. 8

Profit From Main Operations Bridge (1H ’1 9 vs 1H ’ 20) Revenue Effect : -74 mn USD (mn USD) Cost Effect : +172 mn USD Load Ex-Fuel Unit Other* Fuel Factor Cost RASK Currency (Ex-Currency, (Ex-Currency, Ex- Ex-Utilization, L/F) Ex-L/F) Utilization 1H'19 1H'20 Profit from Main Operations *Includes other operating income, other operating expense and FX gains/losses from operational activities. 9

Operational Expense Breakdown 2Q'19 2Q'20 Change 1H'19 1H'20 Change (mn USD) 981 196 -80,0% Fuel 1.836 985 -46,4% 524 127 -75,8% Personnel 1.041 617 -40,7% 461 449 -2,6% Aircraft Ownership 895 928 3,7% 303 65 -78,5% Airports & Air Navigation 548 317 -42,2% 265 50 -81,1% Sales & Marketing 575 264 -54,1% Ground Handling 202 55 -72,8% 391 239 -38,9% 157 23 -85,4% Passenger Services & Catering 298 144 -51,7% 192 93 -51,6% Maintenance 384 310 -19,3% Other 1 86 75 -12,8% 174 162 -6,9% 3.171 1.133 -64,3% TOTAL 6.142 3.966 -35,4% ASK Growth: -95,7% ASK Growth: -54,5% 1 Includes General Administration and Other Cost of Sales. 10

Fuel Expense Breakdown Price Hedging (mn USD) 981 Volume +112 -137 -760 196 Fuel Expense (-80%) 2Q’19 2Q’20 Hedging* Price 1,836 Volume +157 -187 -822 985 Fuel Expense (-46,4%) 1H’19 1H’20 11

CASK Breakdown 2Q'19 2Q'20 Change 1H'19 1H'20 Change (USc) 2,13 9,91 365,8% Fuel 2,07 2,44 17,9% 1,14 6,42 465,0% Personnel 1,17 1,53 30,2% 1,00 22,70 2170,5% Aircraft Ownership 1,01 2,30 127,8% 0,66 3,29 400,1% Airports & Air Navigation 0,62 0,78 27,1% 0,57 2,53 339,9% Sales & Marketing 0,65 0,65 0,9% 0,44 2,78 534,7% Ground Handling 0,44 0,59 34,3% 0,34 1,16 241,5% Passenger Services & Catering 0,34 0,36 6,2% 0,42 4,70 1029,2% Maintenance 0,43 0,77 77,4% 0,19 3,79 1933,0% Other 0,20 0,40 104,6% 6,88 57,28 732,9% TOTAL 6,92 9,82 41,9% Ex-Fuel CASK: 897,4% Ex-Fuel CASK: 52,1% Ex-Fuel CASK (incl. ATK)*: -26,2% Ex-Fuel CASK (incl. ATK)*: -59,7% *ASK value is adjusted for cargo operations adding Available Cargo Ton Km. Note: ASK value is adjusted to indicate effect of cargo because cargo expenses has reasonable share in our total expenses. 12

Selected KPI’s 2Q'19 2Q'20 Change 1H'19 1H'20 Change 718 599 -16,6% Fuel Price (Usd/ton) 698 669 -4,1% 3,29 3,63 10,6% Fuel Consumption (lt) per 100 ASK2 3,28 3,24 -1,1% 1.242 7.286 486,6% Aircraft Ownership Cost per BH 1.251 2.527 102,0% 517 1509 191,7% Maintenance Cost per BH 537 844 57,3% 1.652 5.939 259,5% Handling Cost per Landing 1.663 2.291 37,7% 1.335 1.336 0,1% Airports & Air Navigation Cost per km Flown 1.251 1.308 4,5% 8,54 20,00 134,1% Passenger Services & Catering Cost per Pax 8,49 9,86 16,1% 8,3% 5,5% -2,8 pt Sales & Marketing Cost / Total Revenue 9,7% 7,7% -2,0 pt 13

EBITDAR Calculation 2Q'19 2Q'20 Change EBITDAR (mn USD) 1H'19 1H'20 Change 3.181 901 -71,7% Sales Revenue 5.949 3.434 -42,3% 2.753 1.000 -63,7% Cost of Sales (-) 5.257 3.474 -33,9% 428 -99 - GROSS PROFIT / (LOSS) 692 -40 - 73 45 -38,4% General Administrative Expenses (-) 145 116 -20,0% 345 88 -74,5% Marketing and Sales Expenses (-) 740 376 -49,2% 10 -232 - NET OPERATING PROFIT / (LOSS) -193 -532 - 45 78 73,3% Other Operating Income 100 118 18,0% 40 -36 - Other Operating Expense (-) 42 28 -33,3% 15 -118 - Profit / (Loss) from Main Operations -135 -442 - 54 -35 - Adjustments 52 -16 - Share of Investments' Profit / Loss Accounted by Using 23 -74 - 8 -91 - The Equity Method 31 39 25,8% Income From Government Incentives 44 75 70,5% 69 -153 - EBIT -83 -458 - 376 402 6,9% Depreciation 736 813 10,5% 445 249 -44,0% EBITDA 653 355 -45,6% Adjusted Operating Lease Expenses 1 74 37 -50,1% 189 148 -21,8% Adjusted Short term Lease Expenses (Wet-lease) 2 42 22 -47,4% 77 57 -26,4% 561 308 -45,1% EBITDAR 919 560 -39,1% 17,6% 34,2% 16,56 EBITDAR MARGIN 15,5% 16,3% 0,85 Notes: - For 1H’20 Turkish Technic’s contribution to EBITDAR through consolidation is 86 mn USD, compared to 150 mn in 1H’19. - For 1H’20 adjustments for heavy maintenance of operational lease expenses is 136 mn USD compared to 170 mn USD in 1H’19. 1 Adjusted for A/C heavy maintenance 14 2 Adjusted for A/C rent and heavy maintenance portion (Aprox. 55%)

2Q’20 RESULTS

Aviation Sector & Economy Turkish Market Growth (mn passengers) Domestic (*) International ’13 - ’22F CAGR 2,3% 3,7% 108,4 101,4 97,6 84,0 83,5 80,3 79,3 73,3 71,2 56,5 54,8 51,2 50,0 48,5 46,6 42,7 40,8 38,1 24,4 28,8 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F Source: General Directorate of State Airports Authority (DHMI) – July 2020 (*)Adjusted for double count on Domestic Pax Annual RPK Growth (%) 26,7% 23,2% 22,9% 16,2% 11,6% 8,9% 7,9% 7,4% 7,3% 6,3% 5,7% 5,3% 5,2% 4,2% 8,0% 6,5% 6,3% 2,7% 2011 2012 2013 2014 2015 2016 2017 2018 2019 World RPK Growth THY RPK Growth Source: IATA 16