ITEA 3 Kick-off 2014 A Turkish Partner Perspective

M. Esen Tuna Turkcell Teknoloji

29.5.2014

Innovation

Business Impact

Fast Exploitation

Seizing the high ground

Happiness

ITEA3 High Level Ambitions

Belarus

Azerbaijan*

Georgia*

Turkey

TRNC

Kazakhstan* Ukraine

Germany

Moldova*

71 million subscribers**

9 countries

0 10 20 30 40

Turkcell EuropeTRN Cyprus

BelarusMoldovaGeorgia

AzerbaijanUkraine

KazakhstanTurkcell (Turkey)

Turkcell Group: Regional Leader

* Managed by Fintur ** Turkcell Group Subscribers 2013 YE (millions)

Z

Access To Information

Technology Producer, Value Add, Economic Development

Connecting People To

Each Other

From Everywhere All the Time

•Mobile Voice •Mobile SMS

•Mobile Internet •Fiber Internet

•Software • Smartphones • Tablets • Cloud Computing • M2M • TV

•Mobil Services • Finance • Education • Health • ...

GSM Communication Technology

Turkcell’s Evolution

DELIVER SUPERIOR CUSTOMER EXPERIENCE → Create value → Differentiate → Conquer Hearts

FOCUS ON OUR CUSTOMER → Segmentation

Basic Strategy for Success

Source: Operators’ announcements as of December 31, 2013. Growth figures are based on reporting currencies. * Vodafone’s growth is based on 9M13/14 figures.

REVENUE GROWTH YoY (%)

-9% -9% -8% -6%

-3% -3% 0%

2% 3%

5%

9% 9% 2013

KPN Telefonica Orange Telekom Austria

Vodafone* Telia Sonera

Telenor MTS DT Megafon Turkcell TIM

Strongest Telecom Growth in Europe

TURKCELL TURKEY: VOICE1

TURKCELL TURKEY: MOBILE SERVICES

OTHER SUBSIDIARIES

↑0%

↑4%

↑38%

TURKCELL GROUP

TURKCELL TURKEY: MOBILE BROADBAND

TURKCELL SUPERONLINE: FIBER BROADBAND ↑35%

↑24%

↑ 9% FY13 YoY Growth

SUBSIDIARIES

Key Revenue Growth Drivers

Turkcell Technology

More than 10 years of experience in Turkcell ICT

TTECH R&D Center established

Team of 750+ people Customers in 17 countries

TTECH company founded with 44 engineers

First non Turkcell Group customers

Our innovation is driven by our customer’s challenges and we are passionate in differentiating our customer’s business.

2009 2008 2014 2007 1994 - 2006

Strong Partnerships

Strategic Focus

Nexus Technologies

Software/Service Creation Customer Focused Innovation

Intellectual Property

10 PetaByte Storage Capacity

100 TeraByte DWH Size

1M Daily CRM

Transactions

100 Billion Monthly CDR

Big Data @ Turkcell

365 Active

Campaigns

Big Data

640 TB IP Traffic

Software Creation: Open Source

Contribute

Develop

Use

1.İstanbul

2.Ankara

3.İzmir

4.Uşak

5.Antalya

6.Erzurum

17 4

11

3

1

25

27 16

2

5

31

29

33 32

15

10

7

26

35

9

21

28 13

23

6

24

12

Turkcell Global Bilgi

Operations + Partners

Others

Before our Erzurum CC

Creating Jobs: Turkey Call Center Map

Turkcell Global Bilgi

Operations + Partners

Others

17 4

11

3

1

14

25

34

27 33 16

2

5

18

29

32 31

15

38

37

10

7

26

36

22

9

21

8

28

35

20

13

23

6

19

24

30

12

1. İstanbul

2. Ankara

3. İzmir

4. Uşak

5. Antalya

6. Erzurum

7. Erzincan

8. Diyarbakır

9. Gümüşhane

10.Malatya

11.Denizli

12.Yalova

13.Düzce

14.Eskişehir

15.Sivas

16.Samsun

17.Afyon

18.Kayseri

19.Karaman

20.Van

21.Bingöl

22.Trabzon

23.Konya Ereğli

24.Bitlis

25.Bursa

26.Elazığ

27.Kocaeli

28.Rize

29.Yozgat

30.Artvin

31.Ordu

32.Amasya

33.Karabük

34.Kütahya

35.Kars

36.Adıyaman

37.Kahramanmaraş

38.Gaziantep

After our Erzurum CC

Creating Jobs: Turkey Call Center Map

SIM Management & Services: NFC, On-demand provisioning, MSign

Mobile Marketing: Marketing Suite, Campaign Management, Mobile Advertising

Roaming: Steering, SMS filtering, activation, call assistance

Value Added Services: Mobile PBX, GSM call center, Voice Services

Device Management: Interactive Device Manager

Location Based Services & Platforms: Location Information Server, Terminal Location Cache

Technology Products & Solutions

TTECH’s solutions are market proven and serve more than 100 million customers in 17 countries

Developed in Turkey, sold globally

Business Intelligence Applications

17%

Value Added Services

15%

GSM Infrastructure 13%

Terminal Development and

Applications 13%

Charging - Billing -Collection

Infrastructure 10%

Software Engineering

9%

M2M 8%

Mobile Financial Services

4%

Multimedia 4%

SIM Card Technologies

4%

Mobile Marketing 2%

Cloud Computing

1%

277 national and 43 international patent applications

Patent Portfolio

Intellectual Property

• 1st rank in telecommunications industry since 2007

• 3rd rank in Turkey across all sectors (2012 – 2013)

• Total 277 national, 43 international and territorial patent applications

Big Data

Cloud Computing

Internet of Things

Location Intelligence

Wearable Technologies

Augmented Reality

3D Printing

Technology Trends in Focus

Our ITEA Projects

Project Call Countries Partners

Partners

(TR) Status

uService ITEA2/Call 3 3 18 4 Completed

DiYSE ITEA2/Call 3 5 39 3 Completed

CarCoDe ITEA2/Call 6 4 21 3 Runnning

DEMWatch ITEA2/Call 7 2 8 4 Runnning

CAP ITEA2/Call 7 6 26 4 Runnning

M2M Grids ITEA2/Call 8 10 61 6 Labelled

CLIMWELL ITEA2/Call 8 5 22 4 Labelled

Shorten lag between project idea and kick-off

o ITEA3/Call1: From 2+ years downto <1 year

Project duration

o Fast exploitation

o Usable intermediate deliverables

o Alignment with internal roadmaps

Essential partners

o Manageable partner count

o Balanced partner mix

Eureka Project Challenges

Our Business: Technology

Türkiye’nin İnsanları

Takımımız

Müşterilerimiz

Our Business: PEOPLE

Our Team

Happiness for All

Happiness: Investing in People with CSR

Looking forward to ITEA3

«At Turkcell Teknoloji we strive to lead software innovation and turn

societal challenges into exciting business opportunities.

We believe ambitious software projects that have large impact on

European and global prosperity call for industry wide pre-competitive

research.

Born out of this community spirit, ITEA programs have a proven record

on collaborative research and economic impact.

With the ITEA3 program, we are looking forward to smart infrastructure

projects for accelerated time to market and resource efficiency, and to

smart services projects for superior user experience and market

adoption.»

Thank You

Technology Awards

• Turkcell My Dream Partner, Social & Economic Development, Best Mobile Product, Service or Application for Accessibility or Ease of Use, Global Mobile Awards, 2014

• Turkcell Wallet, Best Technological Innovation in Payment Systems – Best NFC Solution, Emerging Payment Awards, 2013

• Fraud Management System with Enhanced Holistic Approach, Global Telecom Business Innovation Award, 2013

• Single Rating Engine, Global Telecom Business Innovation Award, 2013

• Rule Based Marketing, Gartner CRM Excellence Award, 2012

• ClickToCall, GSMA Best Network Product or Solution for Serving Customers Award, 2012

• Financial Risk Innovation, Global Telecoms Business, 2011

• İSO Innovation Award, 2011

• Best Mobile Transaction (NFC) Award, SIMagine, 2011

• ADinAction, Best Development Team Award, Stevie Awards, 2010