Months Consolidated Results. 25 April 2016

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2 Months Consolidated Results 25 April

3 DISCLAMIER Ereğli Demir Çelik Fabrikaları T.A.Ş. (Erdemir) may, when necessary, make written or verbal announcements about forward-looking information, expectations, estimates, targets, assessments and opinions. Erdemir has made the necessary arrangements about the amounts and results of such information through its Disclosure Policy and has shared such policy with the public through the Erdemir website, in accordance with the Capital Markets Board regulations. As stated in related policy, information contained in forward-looking statements, whether verbal or written, should not include unrealistic assumptions or forecasts. It should be noted that, actual results could materially differ from estimates taking into account the fact that they are not based on historical facts but are driven from expectations, beliefs, plans, targets and other factors which are beyond the control of our Company. As a result, forward-looking statements should not be fully trusted or taken as granted. Forward-looking statements should be considered valid only considering the conditions prevailing at the time of the announcement. In cases where it is understood that forward-looking statements are no longer achievable, such matter will be announced to the public and the statements will be revised. However, the decision to make a revision is a result of a subjective evaluation. Therefore, it should be noted that, when a party is coming to a judgement based on estimates and forward-looking statements, our Company may not have made a revision at that particular time. Our Company makes no commitment to make regular revisions which would fully cover changes in every parameter. New factors may arise in the future which may not be possible to foresee at this moment in time

4 2016 Market Overview M Results 2016 Guidance

5 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 In CIS, HRC price was 425 USD/ton as of April % 10% 5% 0% -5% -10% EU28 CRUDE STEEL PRODUCTION ( YoY % )* 15% 10% 5% 0% -5% -10% -15% -20% -25% USA CRUDE STEEL PRODUCTION ( YoY % )* 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% CIS CRUDE STEEL PRODUCTION ( YoY % ) * HRC PRICES ( USD/TON )** EU NORTH AMERICA CIS BLACK SEA/BALTIC EXPORT Source : * Worldsteel ** Bloomberg

6 Iron ore price was 61 USD/ton as of April 2016 USD/TON COKING COAL PRICES (HCC PEAK DOWNS REGION FOB AUSTRALIA) USD/TON IRON ORE PRICES (IODEX 62% FE CFR NORTH CHINA MID) USD/TON 430 SCRAP PRICES (HMS CFR TURKEY MID) Source: Platts / IODEX

7 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 HRC prices are increasing HRC PRICES ( USD/Ton ) CIS EXPORT HRC BLACKSEA/BALTIC EU HRC CHINA EXPORT HRC USA IMPORT HR As of April 2016, EU HRC price was 409 USD, China HRC export price was 385 USD, CIS export HRC price was 425 USD. The prices were 436 USD, 336 USD, 368 USD respectively by the end of April Source: Bloomberg

8 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Billet sales prices are significantly increasing BILLET PRICES ( USD/Ton ) BILLET CHINA EXPORT BILLET LATIN AMERICAN EXPORT BILLET IMPORT TURKEY As of April 2016, Turkey export price was 370 USD while it was 383 USD in April Source: Bloomberg

9 The imbalance between increase rates of Turkish production and consumption is continuing PRODUCTION ( 000 TONS ) M M Long Flat Total CONSUMPTION ( 000 TONS ) M M Long Flat Total Source: TISPA

10 Turkish iron and steel product imports increased by 22% in M YoY IRON AND STEEL PRODUCT EXPORTS ( 000 TONS ) , , Long Steel Semi-finished (Long) Flat Steel Slab IRON AND STEEL PRODUCT IMPORTS ( 000 TONS ) Long Steel Semi-finished (Long) Flat Steel Slab Total Total M M M M Source: TISPA

11 Deceleration in the automotive sector s growth rate is expected CHANGES IN SECTOR DEVELOPMENT INDEX (% YoY) 30% 25% 22,1% 20% 16,0% 16,0% 15% 11,3% 10% 5% 0% 11,2% 5,5% 2,7% 0,6% 7,4% 7,1% 5,5% 3,9% 6,0% 6,8% 1,0% 1,4% 2,8% 1,0% 1,0% 7,0% 5,0% 3,0% 3,0% -5% -10% -5,5% (e) Construction White Goods Mechanical Machinery Automotive Source: TISPA and ERDEMİR Group Analyses

12 2016 Market Overview M Results 2016 Guidance

13 ERDEMİR GROUP KEY FIGURES M M Liquid Steel Production (000 Tons) Slab Production (1) (000 Tons) Flat Steel Production (2) (000 Tons) Long Steel Production (000 Tons) Flat Steel Shipments (000 Tons) Long Steel Shipments (000 Tons) Net Sales Revenue (M. USD) EBITDA (M. USD) Net Profit For The Year (M. USD) All figures are on IFRS consolidated basis unless stated otherwise. (1) Total slab production of Ereğli and İskenderun Plants. (2) Total flat steel production of Ereğli and İskenderun Plants

14 Liquid steel production increased by 13% in M YoY LIQUID STEEL PRODUCTION ( 000 TONS ) Quarter 1. Quarter

15 Crude steel capacity utilization ratio of ERDEMİR Group is higher than world average CRUDE STEEL CAPACITY UTILIZATION RATIO 105% 100% 95% 93% 96% 100% 100% 90% 88% 85% 80% 84% 80% 78% 78% 76% 75% 70% 70% 67% 65% M Erdemir Group World Source: Worldsteel

16 Production increased by 7% in M YoY PRODUCTION VOLUMES ( 000 TONS ) Quarter 1. Quarter Hot Cold Long Total

17 Sales volumes increased by 15% in M YoY SALES VOLUMES ( 000 TONS ) Quarter 1. Quarter Hot Cold Long Total

18 Net sales revenue was 0,9 billion USD in M NET SALES REVENUE ( MILLION USD ) Quarter 1. Quarter Domestic Export Total

19 Sales to pipe&profile producers and re-rollers increased in M YoY M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) M FLAT STEEL DOMESTIC SALES BREAKDOWN (%) 183Kt; 11% 60Kt; 3% 106Kt; 6% 149Kt; 9% 103Kt; 6% 1.700Kton; 90% 798Kt; 47% 170Kt; 10% 61Kt; 4% 160Kt; 10% 84Kt; 5% 144Kt; 9% 1.645Kton; 94% 711Kt; 43% 301Kt; 18% 317Kt; 19% M LONG STEEL DOMESTIC SALES BREAKDOWN (%) M LONG STEEL DOMESTIC SALES BREAKDOWN (%) 15Kt; 4% 4Kt; 1% 36Kt; 10% 8Kt; 4% 9Kt; 4% 45Kt; 21% 75Kt; 21% 356Kton; 89% 173Kt; 49% 41Kt; 19% 214Kton; 88% 43Kt; 20% 53Kt; 15% 69Kt; 32%

20 Flat steel sales to EU countries was 67% of our flat export in M M FLAT STEEL EXPORTS BREAKDOWN (%) M FLAT STEEL EXPORTS BREAKDOWN (%) 7Kt; 4% 4Kt; 2% 10Kt; 5% 8Kt; 8% 9Kt; 8% 2Kt; 2% 32Kt; 31% 43Kt; 22% 191Kton; 10% 18Kt; 18% 103Kton; 6% 127Kt; 67% 34Kt; 33% 20163M LONG STEEL EXPORTS BREAKDOWN (%) M LONG STEEL EXPORTS BREAKDOWN (%) 4Kt; 9% 42Kton; 11% 11Kt; 41% 28Kton; 12% 39Kt; 91% 17Kt; 59%

21 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 In M, Erdemir Group average flat and long steel prices were 389 USD/ton and 325 USD/ton respectively USD/TON Erdemir Group Flat Sales Price Erdemir Group Flat Cost of Sales USD/TON Erdemir Group Long Sales Price Erdemir Group Long Cost of Sales

22 1.200 EBITDA decreased by 50% in M YoY EBITDA ( MILLION USD ) ,1% 21,6% 17,6% ,2% ,7% Quarter 1. Quarter 19,2% 40,0% 32,0% 24,0% 16,0% 8,0% 0,0% EBITDA EBITDA Margin NET PROFIT ( MILLION USD ) ,4% 6,4% ,7% 414 9,4% ,9% Quarter 1. Quarter 484 9,4% 18,0% 12,0% 6,0% 0,0% Net Profit Net Profit Margin

23 EBITDA was 124 million USD in Q Consolidated EBITDA => Consolidated Net Profit (Million USD)

24 Due to the cash, which is provided from working capital, high dividend payment didn t have a negative effect on liquidity Consolidated EBITDA => Consolidated Net Cash (Million USD)

25 EBITDA per ton for flat product was 43 USD/ton in Q EBITDA PER TON (USD/TON) * Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Flat Long * One-off income/expense items are excluded.

26 Net assets were 4,0 billion USD at the end of Q CONSOLIDATED NET ASSETS (MILLION USD) WORKING CAPITAL (MILLION USD)

27 Despite the high dividend payments, net debt has been decreasing BORROWINGS (MILLION USD) Q Long-Term Debt Short-Term Debt Net Debt

28 Net debt was positive at the end of Q NET DEBT (MILLION USD)

29 Erdemir Group has million USD cash and cash equivalents at the end of Q BORROWINGS MATURITY PROFILE (MILLION USD) Dividend Payable Mar.16 1 Cash Apr.-Dec Principal Revolving Trade Financing Loans Interest

30 Raw materials made up 66% of the cost of sales COST OF SALES BREAKDOWN* - % 6% 5% 0,3% 5% 4% 7% 5% 5% 1% 5% 1% 8% 7% 7% 7% 13% 12% 12% 11% 66% 70% 71% 73% M Raw Materials Personnel Expenses Purchased Energy Expenses Depreciation and Amortization Exp. Non-operating Expenses Other RAW MATERIALS BREAKDOWN - % 14% 14% 11% 14% 2% 4% 8% 5% 6% 5% 7% 12% 15% 12% 13% 28% 27% 25% 28% 36% 33% 40% 41% M Iron Ore&Pellet Coal Scrap Alloyed and Plated Material Purchased Slab Other * Excluding inventory writedowns and provision released.

31 Flat conversion cost per ton excluding depreciation was realised as 124 USD/ton in Q FLAT PRODUCTS ( USD/TON )* Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Fixed Cost Per Ton Variable Cost Per Ton Flat Production (000 tons) LONG PRODUCTS ( USD/TON )* Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Fixed Cost Per Ton Variable Cost Per Ton Long Production (000 tons) * Depreciation was excluded from fixed and variable cost.

32 Capital expenditures of 461 million USD is planned for 2016* ( M USD ) M Fixed Assets Acquisition and Maintenance Capital Expenditures (B) * The capital expenditures in M and before state the cash outflows however the capital expenditures for 2016 Budget state the signed and planned investments. The amounts shown in 2016 Budget do not represent cash outflows.

33 Number of employees was as of March 2016 NUMBER OF EMPLOYEES March

34 2016 Market Overview M Results 2016 Guidance

35 2016 Guidance Production (Million Tons) 9,0 9,0 Sales (Million Tons) 8,8 9,0 7,4 7,2 7,2 7,2 1,6 1, Actual 2016 Budget Long Flat 1,6 1, Actual 2016 Budget Long Flat

36 2016 Guidance EBITDA and Net Profit Margins In 2015; EBITDA and Net Profit Margins were 17.6% and 9.4% respectively. In 2016; EBITDA and Net Profit Margins are expected to be 15-17% and 6-8% respectively

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