Valuation Summ

STOCK AND BOND INFORMATION

Stock Information

Bonds Information
Key Performance Indicators

FINANCIAL PERFORMANCE IMPROVED EVERY QUARTER IN 2022

Türk Telekom Group delivered an accelerated growth performance every quarter in 2022.
Consolidated revenues increased to TL 48.0 billion up by 40.2% YoY. Consolidated EBITDA was TL 19.1
billion with an EBITDA margin of 39.9%. Net income was TL 4.1 billion.

FINANCIAL INDICATORS
Revenue, EBITDA and Net Income
Consolidated revenues increased to TL
48.0 billion up by 40.2% YoY. Excluding
the IFRIC 121 accounting impact, revenue
growth was 40.1% YoY, ahead of the 2022
guidance of 37%.
Consolidated EBITDA grew by 16.6% YoY
to TL 19.1 billion, slightly ahead of the
guidance of TL 19.0 billion. EBITDA margin
was 39.9%. Excluding the IFRIC 12 impact,
EBITDA margin declined by 870 bps YoY to
42.2%.
Operating profit increased by 8.2% YoY and
reached to TL 11.0 billion.
Net income was TL 4.1 billion, with a
relatively contained contraction of 28.2%
annually despite an average 36.2% increase
in USDTRY and EURTRY rates and higher
interest rates in YoY terms. The impact of
the changes in FX and interest rates on
the bottom-line was partly offset by the
deferred tax gain recorded throughout the
year.
Breakdown of Consolidated Revenues

The share of mobile and fixed broadband business lines in consolidated revenues was 63.7% in 2022,
in lead of subscriber number and ARPU (Average Revenue Per User) growth in both businesses.

The share of fixed voice and corporate data revenues decreased from 8.0% and 6.9% in 2021 to 6.4%
and 6.1% in 2022 respectively, while the share of international sales increased from 5.8% in 2021 to
6.6% in 2022.

Revenues

In 2022, consolidated revenues increased by 40.2% YoY to TL 48.0 billion. Excluding IFRIC 12,
operating revenue growth was 40.1% YoY with respective increases of 32.3% in fixed broadband,
42.8% in mobile, 59.0% in international, 25.3% in corporate data and 103.9% in other revenues.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA)

Consolidated EBITDA increased by 16.6% YoY to TL 19.1 billion in 2022. High base, cost inflation and
composition of revenue growth were the main reasons driving EBITDA margin to 39.9%

Depreciation and Amortisation Expense Depreciation and amortisation expense increased by 30.6%
YoY to TL 8.1 billion in 2022.

Operating Profit

Operating profit grew by 8.2% YoY and reached to TL 11.0 billion in 2022. Operating profit margin
declined to 23.0% in 2022 from 29.8% in 2021.

Net Financial Income/Expense

Full year net financial expense climbed to TL 9.2 billion from TL 4.6 billion last year driven mostly by
the significant fluctuation in financial markets, 36.2% average increase in USDTRY and EURTRY rates
annually and higher interest rates.

Tax Income/Expense

The Group recorded TL 2.3 billion of tax income in 2022 compared to a mere TL 141 million of
income in the prior year. The surge in tax income stemming from the revaluation of fixed assets and
investment incentives, was largely driven by continued high inflation throughout 2022.

Net Income/Loss

2022 net income was TL 4.1 billion compared to TL 5.8 billion a year ago. A higher net financial loss
YoY was partly offset by the tax income recorded in the year.
Key Performance Indicators

Capital Expenditures (Capex)

Capex reached to TL 13.9 billion in 2022, within the guidance of TL 14.0 billion, compared to TL 8.8
billion in 2021. Fixed and mobile investments made respective 55% and 20% of total expenditures.
Capex/Sales ratio increased from 25.7% in 2021 to 29.0% in 2022.

2022 Highlights
Assessment of the Board of Directors
 Board of Directors

Investor Relations

Domestic bond issuances

Following successfully issuing eurobond in 2014 and 2019, Türk Telekom completed its first domestic
bond issuance with a nominal value of TL 150 million and a maturity of 402 days in December 2020.
In 2022, the Company issued 6 separate financial bonds at different maturities with a total nominal
value of TL 1.8 billion.

New Shareholder Structure

The transfer of 55% of Türk Telekom's shares from LYY Telekomünikasyon A.Ş. to Türkiye Wealth Fund
was completed on March 31, 2022. As a result, TWF became the majority shareholder of the
Company, owning 61.68% of Türk Telekom's shares

The share transfer transaction between the two entities, LYY Telekomünikasyon A.Ş. (LYY) which held
55% of Türk Telekom's shares, and Türkiye Wealth Fund (TWF), was completed on March 31, 2022
upon the sale of LYY's shares to the TWF. Accordingly, TWF became the majority shareholder of the
Company with a 61.68% stake in Türk Telekom (1.68% of which is publicly traded). The Company is
25% owned by the Ministry of Treasury and Finance of Republic of Türkiye, and 15% of its capital is
publicly traded under the TTKOM ticker on the Borsa İstanbul (BIST). The Company's market cap
amounted to TL 86.0 billion at the end of 2022.

Türk Telekom regularly carries out studies that analyse shareholder diversity. These studies help in
tracking the changes in the shareholder base over different periods. According to the latest study
conducted by an independent service provider in July 2022, Türk Telekom has approximately 110
institutional investors worldwide. Based on the study, value-oriented investors constitute the
majority of Türk Telekom's shareholder base. Moreover, high-share investment focuses include index,
growth and growth at a reasonable price. Türk Telekom's institutional investors are 31% located in
America, 28% in Europe, and 17% in funds based in the United Kingdom and Ireland. In addition,
several funds from different parts of the world (Japan, Singapore, etc.) are also among the investors,
along with investors in Türkiye
Consolidated Summary Balance Sheet 2022
TL millions 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 YE
Cash and Cash Equivalents 8,438 5,231 5,824 5,125 5,125
Tangible Assets (a ) 19,010 19,479 26,765 29,964 29,964
Intangible Assets 14,446 15,024 15,712 17,774 17,774
Right of Use Assets 1,602 1,856 1,818 1,801 1,801
Other Assets (b) 20,070 23,636 26,222 26,069 26,069
Total Assets 63,565 65,226 76,341 80,732 80,732
Share Capital 3,260 3,260 3,260 3,260 3,260
Reserves, Retained Earnings and Other Equity Items 7,174 8,795 16,192 16,710 16,710
Interest Bearing Liabilities (c) 36,488 39,963 42,443 41,920 41,920
Bank Borrowings and Bonds 35,062 38,300 40,798 40,401 40,401
Lease Liabilities 1,426 1,663 1,645 1,520 1,520
Other Liabilities (d) 16,643 13,207 14,446 18,841 18,841
Total Equity and Liabilities 63,565 65,226 76,341 80,732 80,732
 Consolidated Summary P&L Statement 2022
TL millions 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 YE
Revenues 9,471 10,732 12,552 15,287 48,042
EBITDA 4,115 4,404 5,035 5,594 19,148
Margin 43.5% 41.0% 40.1% 36.6% 39.9%
Operating Profit (a) 2,298 2,494 3,003 3,251 11,046
Margin 24.3% 23.2% 23.9% 21.3% 23.0%
Financial Income/(Expense), net(b) -2,008 -2,321 -2,606 -2,276 -9,210
FX & Hedging Gain/(Loss), net -1,426 -1,774 -1,895 -1,463 -6,557
Interest Income/(Expense), net -565 -739 -700 -718 -2,722
Other Financial Income/(Expense), net -17 191 -11 -94 69
Tax Expense 270 1,219 774 35 2,298
Net Income 561 1,392 1,171 1,011 4,135
Margin 5.9% 13.0% 9.3% 6.6% 8.6%

Consolidated Summary Cash Flow Statement 2022

TL millions 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 YE
Cash Flow from Operating Activities 714 3,679 4,525 8,473 17,391
Cash Flow from Investing Activities -1,170 -2,192 -2,305 -6,611 -12,279
CAPEX -1,405 -2,477 -3,089 -7,034 -14,006
Other Investing Activities 235 285 784 423 1,727
Currency Protected Time Deposit -3,094 -294 -728 254 -3,862
Cash Flow from Financing Activities (a) 4,613 -4,802 -452 -3,500 -4,142
Net Change in Cash Position (b) 1,063 -3,610 1,040 -1,386 -2,893

Ratios 2022
2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 YE
Net Debt/EBITDA (a ) 1.24 1.54 1.54 1.47 1.47
Net Debt/ Total Assets (a ) 0.33 0.41 0.36 0.35 0.35
Total Liabilities/ Equity 5.09 4.41 2.92 3.04 3.04
Debt/ Equity 3.50 3.31 2.18 2.10 2.10
Current Ratio 1.03 1.05 1.15 0.99 0.99
 Fiscal
Consolidated Summary P&L Period: Dec
Statement 2020 2021 2022 2023 2024 2025 ember 2020 2021 2022 2023 2024 2025
TL millions Total Debt 32,686 44,088 60,762 45,248 76,601 99,972
Leverage
(Debt /
Revenues 28,289 34,273 48,042 74,495 97,271 123,653 EBITDA) 1,22x 1,34x 1,89x 1,60x 1,10x 0,99x
Net Operating Expenses
Excluding Depreciation and Free Cash
Amortisation -15,052 -17,858 -28,894 -51058 -61,590 -77,486 Flow1 5,651 7,598 2,843 1,377 9,896 14,584
ROE (Net
Profit /
EBITDA 13,237 16,415 19,148 23,437 35,681 46,167 Equities) 26,4% 40,42% 20,7% 21,7% 39,9% 53,1%
Shareholder
Margin 46.8% 47.9% 39.9% 31,46% 36,68% 37,33% s' equity1 12,037 14,250 19,970 28,777 30,327 37,964
ROA (Net
Profit /
Depreciation and Amortisation -5,375 -6,202 -8,101 -9,927 -14,130 -15,695 Asset) 7,1% 9,87% 5,12% 8,44% 11,3% 14,6%
Operating Profit (a) (EBIT) 7,862 10,213 11,046 13,510 21,551 30,472 Assets 1 44,723 58,338 80,732 74,025 106,928 137,936
Book Value
Margin 27.8% 29.8% 23.0% 0 0.0% 0.0% Per Share 2 3,44 4,07 5,71 6,94 9,53 13,0
Pre-Tax Profit (EBT) 3,802 5,621 1,836 8,160 12,425 23,753 Capex1 6,962 8,676 14,006 20,145 25,472 27,999

Financial Income/(Expense), net(b) -4,060 -4,592 -9,210 -5,350 -9,126 -6,719 Net Debt 16,227 22,107 36,221 37,600 39,511 45,943
FX & Hedging Gain/(Loss), net -1,765 -2,557 -6,557
Interest Income/(Expense), net -2,049 -1,858 -2,722
Other Financial Current share price 13,88
Income/(Expense), net -246 -177 69 Cost of Equity 1,77/13,88 +90% 24% WE 0,24
Tax Expense -624 141 2,298 1,915 313 3,584 Cost of Debt 9210 * (1-40%) 9,09% WD 0,75
Tax rate 40%
Net Income 3,178 5,761 4,135 6,245 12,112 20,169
Margin 11.2% 16.8% 8.6% 8,38% 12,5% 16,3%
EPS2 0,91 1,65 1,18 1,84 3,46 5,76
Free Cash Flow1 5,651 7,598 2,843 1,377 9,896 14,584
FCF margin 19,97% 22,16% 5,91% 1,84% 10,17% 11,79%
Dividend per Share 0,17 1,42 1,77 1,17 2,17 4,21
Dividend growth rate 90%
WACC 7,54%
DCF 1280.45 9202.15 13.561,46

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