Transportation

FUEL
TRANSPORTATION
Tolga ALİKAYA
Land Transport Manager
May 10, 2010
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transportation
 Pipelines
2
A New Playing Field
New Petroleum Market Law
01.01.2005
Deregulation and Price
Liberalization
Increasingly Controlled
Environment
New Rules
New Playing Field
• Obligation to hold a license
• Increased levels of competition
• Import liberalization
triggering consolidation
• National marker
• Number of players increased from
• Rental & Usufructs agreements
21 as of YE04 to 52 as of 1Q10*
• Illegal fuel trading has considerably
restricted with 5 years by
Competition Board
diminished
• Fully accredited laboratories
• The sector as a whole became more
• Station automation
conscious of legal obligations
• 20 day national stock obligation
• Vertical integration is allowed
• Compliance had to be placed on the
top of the agenda
• Market share of a distributor < 40%
The leader of the sector took the lead in the new playing field
Petrol Ofisi supported the new regulation from day one
The Company was constantly in dialogue with the regulatory bodies communicating the difficulties and the
problems the sector was coping with
3
Market Snapshot
REFINER
1
4
refiner
refineries
16.97 mio tons of
crude
processed,
15.96 mio tons of
production*
60.4% CUR*
21.52 mio tons of
total sales
18.20 domestic
3.32 export *
DISTRIBUTOR
52**
distributors
Top 5
accounting for
85% of the
market
4.2 mio m3 of
storage
capacity
sTATIONS
12,714**
Dealer
Dealer
stations
owned
operated
66% of the
gasoline pump
price is composed
of tax (SCT+VAT)
Adjusted in line
with refinery
prices & currency
fluctuations
No white flags
Dealer
contracts
recently limited
down to 5
years
PRICING
•TUPRAS Datas belongs to 2009 and will be update after May 15th
** PETDER Sector Report
Gasoline USD 2.52 / lt
Diesel USD 2.07 / lt
4
Best Player in the New Playing Field -
Widest Network, Highest Market Shares
Leading Energy Force Owing to its Extensive Distribution Network, Innovative Product
Offerings and High Quality Service
1981
1991
2000
2008
2009
Diesel
Market Share

76%

59%

29%

28.3%

27.9%
Gasoline
Market Share

69%

46%

20%

24.2%

23.5%
Number of
Distribution Co.

7

9

13

45

54

6.86 mio tons
of fuel products

8.25 mio tons
of fuel products

6.51 mio tons
of fuel products

6.16 mio tons
of fuel products

5.16 mio tons of
fuel products

n.a.

5,424

4,500

3,223

3,008
PO Sales
Volume *
Number of
PO Stations
Source: GDPA for 1981 – 2000, Petroleum Industry Association for 2008 and 2009
* Gasoline + Gasoil + Kerosene+ Black Products
5
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transportation
 Pipelines
6
Turkey, a Gateway to the Major Global Sources of Energy
A bridge between east and west, connecting the leading energy suppliers and consumers
Oil Pipelines
Kirkuk – Ceyhan
Iraq’s largest export line
50 million tons capacity per annum
Baku – Tbilisi – Ceyhan
Decreasing transportation and financial costs
50 million tons capacity per annum
Ünye – Ceyhan
Ceyhan to become energy hub with new
refineries and pipelines
70 million tons capacity per annum
Natural Gas Pipelines
Nabucco
Major alternative route for gas to EU to be
partially operational by 2013 with an initial
pipeline capacity up to 8 bcm
Construction will end in 2017, when the
maximum capacity will reach 31 bcmy
Turkey – Greece – Italy
Turkey – Greece part became operational in
December 2007
Undersea link between Italy and Greece will be
ready by 2012
Estimated capacity: 13 bcm per annum
7
Energy Sector: Changing Composition of Consumption
Considerable increase in oil demand
120
35
100
Oil Demand (mio ton)
30
Turkish Primary Energy Consumption (mio ton)
25
80
20
60
15
40
10
20
5
0
Oil
Gas
Coal
2005
2000
1995
1990
1985
1980
1975
1970
1965
2005
2000
1995
1990
1985
1980
1975
1970
1965
0
Hydro
Turkish primary energy consumption reached 102.6 mio tons with 1.48% increase in 2008
Natural gas had the leading share in energy consumption in 2008 with 32.4%, followed by oil with 32.3% and
by coal with 30.4% share
In 2008, oil consumption rose by 5.9% while natural gas consumption increased by 2.5%
CAGR of oil consumption for the 1986-2008 period has been 2.5% compared to 21.38% CAGR of natural gas
Source: BP Statistical Review of World Energy - 2008
8
Market Dynamics
Contraction in demand due to economic crisis
Gasoil (mio m3)
11.6
10.8 11.0 11.3
Gasoline + Auto LPG** (mio m3)
CAGR: 3.9 %
12.7 13.1
14.2
15.3
16.6 15.9
CAGR: (0.7) %
6.6
6.1
6.1
5.7 5.4 5.7 5.6 5.8 6.0 5.9
(5.9) %
(0.3) %
3.4 3.2
1.1 1.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1Q09
1Q10
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1Q09 1Q10
Jet Fuel* (mio m3)
Black Products (mio ton)
5.5 %
CAGR: (10.7) %
5.9
5.1 4.9
4.8 4.5
CAGR: 5.98 %
4.0
2.9
(65.4) %
2.6 2.8
1.6
1.6
2000
2001
1.7
1.7
2002
2003
2.0
2.3
2.3
2005
2006
2.6
2.7
1.9
0.8
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1Q09
0.3
1Q10
Source: Petroleum Industry Association for Gasoline, Diesel, Black Products and LPG Association for Auto-LPG
•Company estimate between 2000-2008, starting from 2009, the Company can no longer provide market information with respect to jet fuel sales , ** PETDER's Jan,Feb data
2004
2007
2008
9
Market Volume Composition
Economic slowdown took its toll on fuel consumption, whereby market volume has shrunk
by 15% in Q1/2010
1Q09
1Q10
2,878,874
(4.6) % Gasoil
2,747,619
(65.4) % Black Products
845,049
292,451
310,129
488,439
7.1 % Auto LPG
332,235
(8.5) % Gasoline
446,714
Gasoline
12%
11%
7%
Auto LPG
9%
63%
71%
8%
Gasoil
19%
4.52 mio tons
Source: Petroleum Industry Association for Gasoline, Diesel, Black Products and PETDER for Auto-LPG
3.82 mio tons
Black Products
10
Petrol Ofisi Leading the Market
Black Products
Gasoil
Gasoline
Auto-LPG *
22.8%
15.2%
46.9%
26.4%
53.1%
73.6%
77.2%
Others
Others
Others
Source: Petroleum Industry Association
* PETDER's Jan,Feb data
84.8%
Others
11
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
12
1941
Company History
FOUNDATION
 Established in 1941 as a State Economic Enterprise

PRIVATISATION
SPO


16.5% of total shares owned by PA were publicly offered and privatized as of
March 2002

In July 2002, the remaining 25.83% shares held by PA were sold to IsDogan, which
already owned 51% of the Company

IsDogan, owner of 82% of PO shares, merged with PO in December 2002

In November - December 2002, IsDogan increased its share to 96.3% through a
tender offer
In December 2002, 14% of the shares were transferred to Isbank and Dogan
Holding
PRIVATISATION
MERGER
TENDER OFFER

PRIVATE PLACEMENT

6.7% of PO shares were sold to institutional investors in February 2005
SHAREHOLDER STRUCTURE

Isbank‟s PO shares (44.1%) were acquired by Dogan Holding in September 2005
TENDER OFFER

A tender offer was carried out by Dogan Holding between October 14 – 31, 2005

6.25% of PO shares were sold to institutional investors in January 2006
Free float after the tender is %13.3
STRATEGIC PARTNERSHIP

34% of shares were sold to OMV in March 2006
MCAP

As of March 31th, 2010, Petrol Ofisi‟s MCAP is US$2.46 billion
PRIVATE PLACEMENT
2010
Taken into Privatization Program in 1991
51% of PO shares acquired by IsDogan Petroleum Investments Inc. for US$ 1.26
billion in July 2000

13
Shareholder Structure
One of the top 3
conglomerates in
Turkey and a leading
media group
Austria‟s largest listed
industrial company and
a leading oil and gas
group in Central Europe
Free
Float
54.17% after
41.58% after
support
purchases
support
purchases
52.7%
34.0%
13.3%
4 BoD members
Erk Petrol
PO Arama
Üretim
99.96%
99.96%
Fuel
Marketing
E&P
4 BoD members
Marmara
Depoculuk
.
89.97%
Storage
Facility
KIPET
PO Gaz
İletim
52.00%
PO
Alternatif
Yakıtlar
99.89%
Fuel
Marketing
LNG
Marketing
LNG
Transport
99.75%
PO
Akdeniz
Rafinerisi
99.99%
Refining
14
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transportation
 Pipelines
15
Business Lines
53% of diesel
imported in 1Q10
Largest Storage Capacity
1,215,000 m3
in 2011
985.978 m3
Largest Network
Retail
2.972 stations
1,532 m3 avg.
26.75% share in the
Black Sea Natural Gas
Project
Supply
Logistics
throughput
C&I
State Companies
Private Companies
Local – TUPRAS
DDS – Direct Delivery System
Imports – Russia, Greece, Malta and
12 Terminals (10 fuel, 2 LPG)
Tunisia
Others
#1 in Aviation
Marine
Lubricants
Products
16
Accounting for 23%* of Turkey’s Petroleum Product Storage Capacity
Petrol Ofisi has the strongest logistics network in Turkey
12 terminals (including 2 LPG terminals) – 985.978 m3
Large capacity gives the Company the flexibility to;

Distribute products more efficiently than competition

Access multiple sources of supply

Easily manage the national stock liability

Import higher percentage of products than
Haramidere
Derince
Samsun
Trabzon
Kırıkkale
competition
Aksaray
Why import?

Batman*
Aliağa (2)
İskenderun
CIF vs. FOB differential freight advantage
Mersin
Antalya

Lower product premiums

More competitive payment terms

“Tax float” benefit
All terminal laboratories are accredited by
Turkish Accreditation Agency
Currently 9 PO terminals are certified for running the
mandatory EMRA Group II fuel tests, marking a first
for a Turkish distribution company
Supply Department successfully protects the stock
value against the price volatility in global markets by
optimizing potential market risks within VaR limits
New Investment: Marmara Storage Facilities
The new Marmara Ereğli Terminal will have a
storage capacity of 225,000 m3
The terminal will have access to Marmara Sea
which will enable PO to import gasoil via 50,000
DWT vessels and increase its import capacity
Yearly additional import volume of 1,000,000 m.tons
will be generated which will bring PO additional
import advantage
The construction of the terminal will be completed
by end of 2011
* According to EMRA, total storage capacity figure is 4,197,189 m 3 for Turkey
17
DDS for Quality Assurance and LPG Transportation
DDS (Direct Delivery System)
Petrol Ofisi has launched DDS in 2002, to maximize product
quality
DDS utilizes a dedicated latest technology fleet of 140
subcontracted road tankers in the distribution of products.
LPG distribution is carried out with a dedicated fleet consisting of
151 leased / subcontracted road tankers to 1,178 stations.
LNG distribution is carried out with a dedicated fleet consisting of
35 leased/subcontracted cryogenic road tankers to approximately
100 customers.
Aviation fuels transportation is carried out with a dedicated fleet
of subcontracted road tankers with special tank interior covering
for fuel quality assurance.
Lubricants is transported to customers in either bulk carrying
tankers or trucks carrying packaged products.
Transportation business is complying with ADR standards
In 2010 Q1, DDS deliveries reached 90k m3 along with auto-LPG
deliveries undertaken by PO to supply PO/gaz stations,
amounting to 80k tons. 15k tons of LNG is delivered to
commercial customers. C&I customer deliveries reached to 17k
tons and 17k lubricants is transported to dealers and customers.
18
Retail – Only Company with Nationwide Coverage
Turkey‟s largest nationwide network
Number of Stations*
2,972 stations as of March 2010
March 2010
2,782
190
1,393
v
1,208
Network Rationalization - Divesting stations with low throughput and efficiency
621
and investing in new stations in Preferred Market Areas with high throughput and
high potential to;

Generate higher throughput

Increase efficiency

Improve flexibility in adapting to changes in the market

Increase presence in 3 big cities
Average annual throughput has more than doubled since year-end 2000, reaching
1,532
m3
509
Others**
1,792
* EMRA (31.03.2010) for Opet, Shell-Turcas, BP,
Total and for Others and PO for PO and Erk
** Others include Akpet, Lukoil, Moil, Alpet,
Petline
19
Operational Excellence in Retail – Customer Focused Approach
Customer Value Proposition – Placing customer in the core of operations
High quality products and services
At well located and well designed convenient stations with appealing physical conditions
With an optimum shop and clean restroom
Via well trained, friendly site staff that are committed to deliver all
To ensure that you and your vehicle can get back on the road rewarded for your loyalty to PO
How to differentiate?
Provide PO customers with high quality products
 Innovative Product Development

Investing in technology
Provide PO customers with high quality service
 Reinforcing the sales force
 Implementing operational improvement projects
 Continuous training for dealers and station personnel
 Completing the automation of stations through the employment of state-of-the-art technology
Offer a loyalty program which is both very widespread and has a differentiating CVP
 Rewarding loyalty in line with customer segmentation
“All that PO
invests in its
customers
be it through the
utilization of
technology,
people or the
Company‟s
innovative spirit
will translate into
more satisfied
customers, higher
volumes and
higher
profitability.”
 Utilizing technology and creative power
Invest in Petrol Ofisi Brand
20
Retail Volume Enablers
Network Growth
Operational Improvements
Marketing Activities
NTI/NTPO Projects
Site improvement projects to
Fuel Differentiation
Network growth by opening or
transferring new stations
capture
Each year there are  200
Greenfield investments and  200
station transfers in the market
stations;
New
Generation
V/Max
Eurodiesel Launched Feb 2010
Provides the Highest Level of Fuel
Economy (save up to 4 litres of
fuel in 100 litres)
potential
Contract renewals: Each year
contracts of  200 PO stations are
up for renewal
The sales performance of the station,
the location, the relationship with the
dealer are taken into consideration
when allocating the CR budget
In March 2009, the Competition Board
decided to limit the duration of all
usufruct contracts by 5 years. Contracts
signed prior to 2005 will benefit from
the exemption until 18.09.2010.
Contracts signed after 18.09.2005 will
benefit from the exemption for the first
five years. The new decree will lead to
significant revisions in investment plans
of distribution companies and thereby
the NTI/NTPO and CR statistics
displayed above
upside
volume
the
existing
of
Hardware Improvements
Toilets,
CR Projects
the
lighting,
landscaping,
visuals, car-wash and air/water,
lube changing units
Software Improvements
Improvements that don’t require
additional CAPEX
Training of station personnel
Localized campaigns/promotions
Optimum utilization of the site
Site Operations Development
Program
Territory Trainers are allocated to
each site for a week to train
station
V/Max Performance Series
Launched in Sep 2007
Positive effect on pump sales by
increasing high income / high
mileage customers
Low Sulphur Diesel – 10ppm
PO was the 1st in the market to
offer it in Dec 2007 – 1st mover
advantage
Positive Card
Launched in Jan 2008
Broadest customer commitment
program in Turkey
Payment and loyalty card in 1
Convenience of paying for fuel
without leaving the vehicle
Over 2,4 million members!
staff
21
LPG - Growing Business Line
Turkey‟s largest Auto-LPG network
Petrol
Ofisi is
currently operating auto-LPG
Within the scope of the national distributor license
business through 2 channels: PO/gaz (PO Brand)
requirements, Petrol Ofisi has 2 filling facilities;
and Contracted stations.
Aksaray and Aliağa
The national distribution licence was granted in
2 LPG terminals with a total capacity of 50,000m3
March 2007 and in line with the licence PO
will become operational in 2012, enabling LPG
launched its new brand, “PO/gaz” in order to
procurement through imports to achieve higher
create higher earnings on auto-LPG sales.
supply margins
As of March 2010, there are 1,345 PO/gaz and
156 Contracted stations. Conversion of contracted
sites to PO/gaz is still continuing.
As of March 2010, sales volume has reached to
79,310 tons in PO/gaz and 11.815 tons in
Contracted stations with a total of 91.125 tons.
* Source: Energy Market Regulatory Authority as of YE09
22
C&I - Fuelling the Energy that Turkish Industry Needs and Relies on
Turkey‟s biggest single B2P, B2B and B2D fuel distributor
Nationwide presence, established infrastructure, logistics capability & long-term business relationships
Commercial and Industrial (C&I) customers are defined under 3
separate categories

State-owned entities, military institutions and municipalities

Private companies in industry, agriculture, transport, logistics
and construction

Sub-distributors who supply commercial customers with an
annual consumption of less than 5,000 tons that distribution
companies can’t supply by law
C&I sales are comprised mostly of jet fuel, gasoil and black product.
23
Land, Air & Sea – No Boundaries for Petrol Ofisi
Market leader with sales over 0.4 m3
PO Air is present at 35 airports
Customers include Turkish Airlines, all
other domestic airlines as well as more
than 60 international airline carriers: KLM,
SAS, Lufthansa, Air France …
PO Air is the only company that can
supply Istanbul Airport through its
pipelines, lowering transportation costs
“En route” to becoming an international
player...
Since 2006, PO air started supplying
Turkish Airlines and other domestic
carriers at international airports
* Company estimate
Market leader with supply throughout
Turkish coast.
PO Marine is the only Turkish supplier to

Own marine terminals in all seas

Offer all marine fuels and
lubricants

Provide transit bunker services in
Turkish Karadeniz, Marmara, Ege
and Akdeniz
Other than the 8 marine terminals along
the coastlines, PO Marine operates the
largest floating station network in Turkey
Introduced in July 2005 and strong
position as the second largest
company in the market, more than
175 LNG tanks installed, more than
26 LNG tankers for transportation
LNG is natural gas liquid form which is
stored at approximately -162ºC
LNG is mainly used by commercial and
industrial customers who do not have
access to natural gas pipelines
LNG is transported by specially designed
cryogenic road tankers to customers’
premises and stored in specially
designed cryogenic tanks
In 2010, PO LNG sales volume has
passed through 14.5k tons,
24
Leading Player in the Lubricants Market
24.9%* market share - 1 out of every 4 lubricants is sold by PO
2010 sales amount is 18,823 tons, including 2,776 tons of export to 17 countries
Petrol Ofisi is Turkey’s leading lubricant producer with total
annual capacity of 140,000 tons in Derince plant
PO lubricants target high technology products and gained 5%
market share in multigrade engine oils in 2010.
PO started producing synthetic motor oils in Derince plant in
June 2009.
PO is continuously optimizing its product portfolio in line with the
market demand. Total number of products is 393.
Petrol Ofisi Technology Centre (“POTEM”), which is established
in October 2007 in Derince on an area of 1,200 m2, is accredited
for 111 domestic and international tests with the capacity to
perform 166 different test methods
Exporting lubricants to 3 continents
In 2010, PO exported 2.8k tons lubricants to 17
countries.
In 2010, PO also continued production for Petrom and
designated OMV markets
* Source: Petroleum Industry Association as of February 2010
25
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transportation
 Pipeline
26
All Fuelled Up – Future
Backed by a
strong
partnership
a vertically
integrated
#1 in retail
market leader
#1 in aviation
#1 in marine
#1
#1 in lubricants
&
Supplying Turkish carriers at >100 international
airports
a regional
WER
Supplying international airports
Biggest marine refueler of the East Mediterranean
Exporting lubricants to >30 countries
27
Offshore Black Sea – Gas Exploration & Production
A Huge First Step into Upstream, towards an Integrated Energy Company
Petrol Ofisi acquired 26.75% share in the Western Black Sea USD 55 mio in January 2009
and has become the largest private partner of Turkey‟s largest offshore natural gas production project
Project Details
8 Offshore licenses (total of 3892 Km2)
Integrated E&P project, including, Exploration, Development and natural gas Production through
three offshore platforms
TPAO is the operator with 51% share, PO is the second largest shareholder
PO became the largest private offshore producer in Turkey
In Q1, cumulative production is 37,493,755 scm and average daily production is 416,597 scm (Total of SASB Project)
In Q1, cumulative production is 10,029,581 scm and average daily production is 111,440 scm (PO shares)
Investments related to Phase II continue; it is expected to be on-stream by end of 2010 and a considerable increase in
production is expected.
Value of SASB Project
Cash generating proven and producing reserves
Upside reserve growth potential
New development areas and exploration potential in prospective structures
Enabled to enter the upstream E&P business (assets with all in one deal) with
proven reserves, ongoing production that creates a continuous cash flow and
exploration blocks with possible upside reserve potential
Growing, vibrant, profitable and properly regulated natural gas market
28
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transortation
 Pipelines
29
Sales Volume Comparison
16.7 %
-7.3 %
-11.8 %
20.2 %
-66.5 %
60 %
5.4 %
1Q09
1Q10
-18.2 %
Auto LPG
Gasoil
Black Products
15
14
10
6
Lubricants
1,383
1,691
Jet Fuel
409
137
285
Gasoline
342
726
50
43
102
110
824
„000 tons
LNG
Gasoline + Auto LPG*
152
153
-0.5 %
White Products
* PETDER's Jan,Feb data
1,221
1,262
-3.2%
Total Sales
30
Volume Composition
1Q09
1Q10
0.4%
0.8%
0.7%
9.9%
24.2%
1.1%
24.7%
16.8%
Volume
52.5%
48.7%
3.7%
7.4%
2.6%
6.5%
Gasoline
1.69 mio tons, 74.6% white, 24.2% black
1.38 mio tons, 88.3% white, 9.9% black
Auto LPG
2008
Diesel
Jet Fuel
Black Products
2
0
0
7
0.9%
2009
1.0%
1.0%
11.9%
19.9%
22.2%
18.6%
Volume
48.0%
51.2%
2
0
0
8
1.0%
Lubricants
LNG
4.9%
6.7%
8.27 mio tons, 78.2% white, 19.9% black
5.7%
7.1%
7.35 mio tons, 86.1% white, 11.9% black
31
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transportation
 Pipelines
32
Performance Highlights
Y-o-Y sales revenue increased by 11% to TRL 3.3 bio due to higher crude prices in 1Q10
Gross Profit decreased from TRL 266 mio to TRL 233 mio due to ongoing effect of margin cap imposed
by EMRA
Another quarter of successful cost management led to OPEX remaining almost flat at TRL 64.5 mio
In 1Q10 EBIT decreased by 22 % from TRL 171mio to TRL 132 mio
EBITDA decreased by 15% from TRL 204 mio to TRL 174 mio
Gross Profit EBITDA and EBIT margins decreased by 190 bps, 170 bps and 170 bps to 7.2%, 5.3%
and 4.1% respectively
TRL 10.5 mio FX loss realized in 1Q10 could be considered as immaterial compared with previous year
loss of TRL 135.9 mio
Net loss of TRL 32 mio realized in 1Q09 turned to positive (TRL 45 mio) in 1Q10 thanks to more stable
FX rate in 2010
Strong cash position has been maintained with TRL1,353 mio cash level.
33
Strong Operating Performance
Q1/10
Q1/09
r
10/09
in TRY mn
3.689
3.256
2.920
11%
Net Sales
200
233
266
-13%
5,4%
7,2%
9,1%
102
132
171
2,8%
4,1%
5,8%
153
174
204
4,1%
5,3%
7,0%
23
45
-32
0,6%
1,4%
-1,1%
Q4/09
-22%
-15%
n.a.
03m10
03m09
r
10/09
3.256
2.920
11%
Gross Profit
233
266
-13%
Gross Margin %
7,2%
9,1%
EBIT
132
171
EBIT Margin %
4,1%
5,8%
EBITDA
174
204
EBITDA Margin %
5,3%
7,0%
45
-32
1,4%
-1,1%
Net Income
Net Income Margin %
-22%
-15%
n.a.
34
Record Margins were Once Again Overshadowed by the FX Losses
TRL mio
Positive effect
-28,3
-1,8
125,4
-8,0
12,2
-3,0
-0,1
-13,8
Negative effect
-5,2
65
Mainly due to
ongoing effects
of margin cap
imposed by
EMRA
45
Mainly due to
decreased
provision expenses
Successful cost
management
25
45,2
5
-15
Due to high FX losses
realized in 1Q09 in line
with depreciation YTL
-32,2
-35
-55
-75
Net Income
03m/09

Gross Profit

Cash OPEX Depreciation


FX Incomenet

Other
Income-net

Interest
Expense-net

Minority
Interest

Cash Tax
Deferred Tax


Net Income
03m/10

35
Strong & Sustainable EBITDA
Q1/10
Q1/09
r
10/09
102
132
171
-22%
51
42
34
24%
153
174
204
-15%
Q4/09
in TRY mn
EBIT
Depreciation
EBITDA
03m10
03m09
132
171
42
34
174
204
r
10/09
-22%
24%
-15%
EBITDA
204
174
153
Q1/09
Q4/09
Q1/10
36
Net Liability Position
TRL mio
December 31, 2008
December 31, 2009
March 31, 2010
3,389
3,196
3,231
1,536
1,390
1,353
780
798
745
1,074
1,008
1,133
3,136
2,448
2,448
2,661
2,034
2,040
Taxes Payable
342
299
310
Other Payables*
133
115
193
Assets/Liabilities
1.08
1.31
1.27
Net Assets
253
748
688
Total Financial Debt
984
1,418
1,302
Net Liabilities
731
670
615
Change in Net Liabilities
139
-60
-56
Liquid Assets
Cash
Inventories
Trade Receivables & Other Current Assets
Liabilities
Trade Payables
* Excluding deferred tax liabilities and long term provisions but including short term provisions (tax liability)
37
BB Positive
Sovereign
BB+ Stable
July, 2004
B Stable
July, 2004
B+ Stable
February, 2005
B Positive
June, 2005
B+ Positive
April, 2005
B+ Stable
March, 2006
BB- Stable
September, 2006 B+ watch neg
National
February, 2007
B+ Stable
AA- (tur)
High Yield
Sovereign
Investment Grade
Our Ratings
AAA
AAA
AA+
AA
AA-
AA+
AA
AA-
A+
A
A-
A+
A
A-
BBB+
BBB
BBB-
BBB+
BBB
BBB-
BB+
BB
BB-
BB+
BB
BB-
B+
B
B-
B+
B
B-
CCC+
CCC
CCCCC
C
CCC+
CCC
CCCCC
C
D
DDD
38
Table of Contents
 Introduction
 Turkish Energy Sector
 Company Overview
 Business Lines
 Future Story
 Sales Analysis
 Financial Overview
 Transportation
 Maritime Transportation
 Land Transportation
 Pipelines
39
Fuel Transportation
• Fuel
– Energy Market Regulatory Authority (EMRA)
• Transportation
– Ministry of Transportation
40
Transportation
•
•
Maritime Transportation
–
IMO (International Maritime Organization)
–
MARPOL (International Convention for the Prevention of Pollution from Ships)
–
ISGOTT (International Safety Guide For Oil Tankers And Terminals)
Land Transportation
–
•
ADR (The European Agreement concerning the International Carriage of Dangerous Goods
by Road )
Pipelines
41
Maritime Transportation
•
•
Domestic
–
10 vessels (CPP) + 6 vessels (DPP)
–
~ 75k DWT
–
More than 1.000 voyage
–
~ 4.000k tons of product
Import
–
2 vessels x 30.000 DWT
–
~ 1.000k tons of product
42
Maritime Transportation
43
Maritime Transportation
44
Maritime Transportation
45
Maritime Transportation
46
Maritime Transportation
47
Maritime Transportation
48
Transportation
•
•
Maritime Transportation
–
IMO (International Maritime Organization)
–
MARPOL (International Convention for the Prevention of Pollution from Ships)
–
ISGOTT (International Safety Guide For Oil Tankers And Terminals)
Land Transportation
–
•
ADR (The European Agreement concerning the International Carriage of Dangerous
Goods by Road )
Pipelines
49
Direct Delivery System
•
10 Terminals
•
More than 3k stations
•
140 semi-trailers
•
Planning & optimization
•
~ 500k tons of delivery
•
More than 20k trips
50
Direct Delivery System
51
Direct Delivery System
52
Direct Delivery System
53
Aviation Fuels
•
10 Terminals
•
Around 35 aviation supply units
•
Semi trailer fleet with varying size seasonally
•
More than 600k tons of carriage
•
Pipelines
54
Aviation Fuels
55
Aviation Fuels
56
LPG
•
More than 150 tankers
•
Local suppliers
•
Planning & optimization
•
Around 400k tons of carriage
•
Nearly 25k trips
57
LPG
58
LPG
59
LNG
•
Around 35 tankers
•
POAY, POGİ
•
Cryogenic tanks
•
Around 80k tons of carriage
•
Nearly 5k trips
60
LNG
61
Lubricants
•
1 Lubricant Factory in Derince/İzmit
•
Bulk carrying tankers
•
Packaged product carrying trucks
•
Customers, retailers, distributors, terminals
•
Not dangerous good
62
Lubricants
63
Others
•
Wholesale Customers
•
Commercial and Industrial Customers
•
Public Organizations
•
Border Stations
•
Inter-terminal Supply Needs (Batman)
64