1

IATA Traffic Flows Between Regions

Percentage of Total Scheduled Revenue Passenger-Kilometres

Total Revenue (2013F)

671 Billion USD

Schd. Passenger (2013F)

3.1 Billion

2

Source: IATA Watts (published in 2012), IATA Financial Forecast March 2013

3

Industry Aircraft Delivery and Financing Outlook

Source: Boeing, Goldman Sachs

Capital Providers

Export Credit Agencies

Commercial Banks

Lessors

Public Debt /Capital Markets

Private Equity / Hedge Funds

Tax Equity

Airframe and Engine Manufacturers

Fleet Development

4

6784 83

97 100 100116

14115215

18 17

1820

29

35

36

41

89

24

22

18

17

1

1 2

44

5

6

9

9

83

103 102

127133

158

179

204

219

2005 2006 2007 2008 2009 2010 2011 2012 2013

DAR GÖVDE GENİŞ GÖVDE AJET KARGO

%24 %1 %25 %5 %19 %13 %7%14

6784 83

97 100 100116

14115215

18 17

1820

29

35

36

41

89

24

22

18

17

1

1 2

44

5

6

9

9

83

103 102

127133

158

179

204

219

2005 2006 2007 2008 2009 2010 2011 2012 2013

DAR GÖVDE GENİŞ GÖVDE AJET KARGO

%24 %1 %25 %5 %19 %13 %7%14

Narrow Body Wide Body Cargo

6784 83

97 100 100116

14115215

18 17

1820

29

35

36

41

89

24

22

18

17

1

1 2

44

5

6

9

9

83

103 102

127133

158

179

204

219

2005 2006 2007 2008 2009 2010 2011 2012 2013

DAR GÖVDE GENİŞ GÖVDE AJET KARGO

%24 %1 %25 %5 %19 %13 %7%14

67 84 83 105 109 124 138 159

155

334

17 18 17

18 20 29

35 36

45

74

1 1 2

4 4

5 6

7

9

7

85 103 102

127 133 158

179 202

235

415

2005 2006 2007 2008 2009 2010 2011 2012 2013 2020

%24 %1 %25 %5 %19 %13

%76 %14 %17

Seat Capacity

2000 2005 2010 2015 2020 CAGR

12k 15k 28k 51k 80k 10 %

Fleet Group A/C New Orders

Wide Body A330 20

B777 20

Narrow Body A320 CEO/NEO 117

B737 NG/MAX 95

Total 252

Total of 8.4 Billion USD financing has been done.

** 2013F :Forecasted

Financial Development / Revenue & Operating Profit

5

Europe 33%

Far East 22%

Domestic 14%

Middle East 13%

America 10%

Africa 8%

Pax Revenue Split by Geography

15.9

22.3 20.2

22.9

16.5 14.1

17.5

0

10

20

30

2006 2007 2008 2009 2010 2011 2012

AVG (2006-2012):19%

Ebitdar Margin %

(Million USD)

1539 1362 1961 1898 1964 2318 2834

3737 4719 4552

5448

7072

8318

9749

-216 -151

255 247

100

70 60

389

571

494

299

215

585

-4200

-2200

-200

1800

3800

5800

7800

9800

11800

-300

-200

-100

0

100

200

300

400

500

600

700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Revenue Operating Profit

(Million USD)

Turkey and Turkish Airlines’ Growth

6

RPK Growth %

-4%

2%

-2%

14%

6% 6%

4%

2%

-1%

9%

6% 5%

3%

6%

-3%

15% 15%

19% 19%

13% 17%

19%

23%

27% 30%

-5%

0%

5%

10%

15%

20%

25%

30%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3M

World RPK Growth THY RPK Growth

Linear (World RPK Growth) Linear (THY RPK Growth)

27p

79%

227%

275%

world tr tk

2002 – 2012 Passenger Growth Rates

Next 20 years, World passenger traffic (RPK) growth

rate %4.7 Population growth rate %0.9

Source : IATA Financial Forecast, ICAO 2011, Airbus GMF 2012

Global Rankings

TK is flying to more countries than

any other airline in the world.

TK is the 4 th largest airline in terms

of network size

1 4

Source: OAG (2013 May)

7

Airline Domestic International Total

UNITED AIRLINES 229 152 381

DELTA AIRLINES 218 102 320

AMERICAN AIRLINES 169 100 269

TURKISH AIRLINES 39 190 229

3rd Airport in

ISTANBUL

76.5 million km2

Area

500 Aircraft Park Positions (Pahse 2)

150 million PASSENGERS CAPACITY (Phase2)

A candidate for

3rd Biggest (After Phase 1)

& Biggest (After Phase 2)

in the World

8

2002 THY Network 103 Destinations (26 Dom, 77 Int)

Planned Destinations (32 Destinations)

2013 - Current 125 New Destinations (Dom 13, Int 113)

Network Development

9

Financing Alternatives and Outlook

ECA

(2nd Category) JOLCO Operational Unsecured Bond

EETC (2-Tranches

Blended) Sukuk

Tenor 12 years 9.5 years 10 years 5 – 10 years 9 – 11 years 5 – 7 years

Cost %3.6 - %4.3 %3.3 - %3.8 %7.5 - %8 %4.5 - %5.5 %4 - %5 %4.5 - %5.5

Transition: ECA Commercial, New ASU increased ECA premiums, Limited ECA credit lines

Heading Towards : More diversified sources of financing Paralel to the industry transition, less dependent on conventional financing methods (ECA,

EXIM), more towards commercial financing sources and capital markets (EETC, unsecured bond)

Focus on longer term financing (up to 14 years) Focus on managing maturity risk, debt service in line with operational cash generation