Park Elektrik retim Madencilik Sanayi ve Ticaret A

Park Elektrik Üretim Madencilik Sanayi ve Ticaret A. Ş. June 2015

Contents I. III. IV. V. Company & Operations Ownership Structure & Participation Ciner Group 21 Financial Structure Evaluation of The Latest Financial Tables Park Elektrik Madencilik June 2015 3 18 24 32 2

I. Company & Operations Park Elektrik Madencilik June 2015 3

Introduction § Park Elektrik is the sole copper mining company on the ISE. The company operates Madenköy copper mine in Siirt, in the southeast of Turkey, since late 2006. § Total resources of Madenköy copper mine was determined as 41. 5 mn tons of ore with an average grade of 2, 02% according to a JORC based report conducted by Micromine Consulting Services in February 2014. So far, Park Elektrik extracted approximately 8 mn tons of ore out of total resources of 41. 5 mn tons in the zone. The company has a concentration facility and it produces and sells concentrated copper, which is the final product of the company. Park Elektrik sells all of its concentrated copper, that includes copper content of around 20%, to an international commodity broker, namely Traxys. As of YE 2014, total number of employees is 479. 387 employees of total work force are blue collar employees working in the copper mine. § § Park Elektrik Madencilik June 2015 4

Location of Copper Mine Siirt Park Elektrik Madencilik June 2015 5

I) Madenköy Copper Zone § Park Elektrik acquired operation license of Madenkoy copper mine in 2004 from Eti Holding, a state-owned entity engaged in mining businesses, for TL 9. 4 mn. § Copper mine operations started in late 2006 in Madenköy copper zone. So far, 8 mn tons of ore have been extracted in the copper zone, while the remaining resources is 33. 5 mn tons of ore as of YE 14. § According to initial reports, proven reserves in the zone was determined as 13 mn tons of ore when Park Elektrik commenced its operations in 2006. However, according to latest reserve report issued by Micromine Consulting Services in February 2014, total resources in the zone was determined as 41. 5 mn tons of ore, 36. 3 mn tons of which was measured. § Park Elektrik exports all of its concentrated copper production to an international commodity broker namely Traxys, while the end customer is China. Park Elektrik Madencilik June 2015 6

Micromine Reserve Report Based On JORC § § According to a JORC (Joint Ore Resources Code) compliant reserve report issued by Micromine Consulting Services in February 2014, total resources of the project was determined as 41. 5 million tonnes of ore. According to the same report, average grade in Madenköy copper mine is 2. 02% for the whole zone and average grade of the measured resources is 1. 95%. Micromine October 2011 Resource Report Micromine February 2014 Resource Report Tonnes Grade (%) Measured 31. 182. 000 2, 26 36. 264. 000 1, 95 Indicated 6. 439. 000 2, 79 5. 002. 000 2, 45 Inferred 2. 206. 000 3, 38 225. 000 3, 52 39. 821. 000 2, 40 41. 500. 000 2, 02 Total Resources Park Elektrik Madencilik June 2015 7

Production Volumes & Targets 2011 2012* 2013** 2014 2015 E - 3, 500, 292 10, 151, 224 14, 291, 281 9, 000 1, 024, 871 1, 138, 232 1, 540, 031 1, 723, 653 1, 652, 000 949, 731 1, 081, 320 1, 463, 029 1, 637, 470 1, 569, 400 Grade of Ore (%) 1, 73 1, 77 1, 47 1, 18 1, 35 Recovery Rate 87% 86% 82% 87% Con. Copper Production (wmt) 77, 510 89, 253 96, 038 91, 185 98, 225 Con. Copper (dmt) (~92% of wmt) 71, 309 82, 113 88, 354 83, 890 90, 367 (~20% of dmt con. copper) 14, 262 16, 423 17, 670 16, 778 18, 073 Stripping (m 3) Ore Production (tons, wet) Ore Used In Con. Center Copper (mt) (tons, dry) * Pre-stripping started in 2012. ** Production through open-pit started in mid of 2013. Park Elektrik Madencilik June 2015 8

Long Term Planning in Open Pit § § § Having being operated by underground mining since the beginning of operations in the Madenköy copper zone, Park Elektrik shifted its copper mining operations from underground to open-pit mining by the mid of 2013. Pre-stripping in the zone started in 2012 and it continued until mid of 2013. Based on projections, the company plans to continue open pit mining between 2013 -2031. Throughout open pit mining for 18 years, the company plans to produce 26. 4 mn tons of ore with 246 mn m 3 stripping with an average strip ratio of 9. 3 by the end of 2031. 2014 was the first full year of open pit mining therefore Park Elektrik had to work with very low grade with a high volume of stripping. Period Estimated Total Stripping (m 3) Estimated Total Ore Production (ton) Estimated Strip Ratio Estimated Total Con. Copper Production (wmt) 2013 -2031 246, 000 26, 400, 000 9, 31 2, 107, 702 Park Elektrik Madencilik June 2015 9

Open Pit Site View Park Elektrik Madencilik June 2015 10

Current View From Mine Park Elektrik Madencilik June 2015 11

Views From The Pit Park Elektrik Madencilik June 2015 12

Open Pit Topographic View – I Topography Main Ore Body Park Elektrik Madencilik June 2015 13

Open Pit Topographic View - II Main Ore Body Park Elektrik Madencilik June 2015 14

Open Pit Site Cross Section Park Elektrik Madencilik June 2015 15

Power Plant Projects § Park Elektrik withdrew natural gas power plant applications for Edirne and Ceyhan regions due to the complexities of the investment stages and uncertainities. § The company obtained environmental impact assessment report for Hydroelectricity power plant (HPP) of 50 MW in Diyarbakır/Tarihler. Transmission aggreement with TEIAS was achieved. Tender offer for construction of the facility will be made soon. Park Elektrik Madencilik June 2015 16

II. Ownership Structure & Participation Park Elektrik Madencilik June 2015 17

Ownership Structure Park Elektrik Madencilik June 2015 18

Participation, Park Termik § Park Elektrik has 10% stake in Park Termik Elektrik San. ve Tic. A. S. , a Ciner Group company which is involved in thermal power generation in Çayırhan, Ankara. § Park Termik has operating rights of Çayırhan Thermal Power Plant which has a total production capacity of 620 MW, in four units. § The plant is an integrated power generator which procures coal through its own lignite mines. § In 2014, Park Elektrik gained TL 7 mn dividend income from Park Termik. Park Elektrik Madencilik June 2015 19

III. Ciner Group Park Elektrik Madencilik June 2015 20

Ciner Group, Main Line of Businesses Ciner Group Park Holding Energy & Mining Group Major Companies Park Elektrik, Park Termik, Silopi Elektrik, Park Teknik, Park Toptan, Eti Soda, Rio Tur Soda, Park Cam Park Elektrik Madencilik Ciner Yayın Holding Commerce, Industry & Services Group Major Companies Ciner Marine, Ciner Aviation, Lares Park Hotels, Park Insurance, Denmar Logistics, June 2015 Media Group Major Companies & Brands Haberturk Newspaper Haberturk TV, Radio, Haberturk Web Site Bloomberg HT, Aks TV (Show TV) 21

Ciner Group § Park Holding, the main shareholder of Park Elektrik with 61% share, is solely owned by Mr. Turgay Ciner. § Ranking among the largest Groups of Turkey, Ciner Group’s history goes back to 1978 when it was founded. The Group has a diversified business portfolio. However, the Group’s main line of businesses are mining and energy in which it has a wide expertise. § Ciner Group is a pioneering actor in energy and mining sector given its new and initial steps since early 1990 s. In line with accelerated privatization efforts in 1990 s, the Group successfully involved in mining and energy sectors which are the underlying sectors of the Group’s fast growth in recent years. Park Elektrik Madencilik June 2015 22

IV. Financial Structure Park Elektrik Madencilik June 2015 23

Annual Concentrated Copper Production (wmt) 96 038 91 185 89 253 77 510 64 371 52 554 63 138 37 426 13 771 2006 2007 2008 2009 2010 * 2011 2012 2013 2014 * Annual production declined due to production halt of four-month in 2010. Park Elektrik Madencilik June 2015 24

Annual Con. Copper (dmt) & Cathode (ton) Sales 93 049 85 038 73 367 60 931 59 163 55 054 47 417 32 239 9 271 1 210 2006 2007 2008 2009 2010 2011 2 521 2012 2013 2014 * In 2010, there was a production halt of four months. ** 6, 613 dmt of concentrated copper were used to produce 1, 210 mt copper cathode. This pushes 2011 total sales up to 61, 667 dmt. *** 14, 296 dmt of concentrated copper were used to produce 2, 521 mt copper cathode, that is increasing 2012 total sales volume up to 87, 663 dmt. Park Elektrik Madencilik June 2015 25

Total Sales Revenues (TL) copper asphaltite 30 816 836 33 704 018 11 587 475 2008 Park Elektrik Madencilik 2009 June 2015 2012 2013 209 927 689 2011 64 191 660 69 857 081 110 713 833 80 040 645 2007 226 524 686 2010 8 211 605 229 264 821 19 314 397 151 135 664 19 709 514 2014 26

Net Earnings (TL mn) 107, 3 100, 9 74, 8 69, 3 37, 2 19, 8 2007 20, 5 19, 4 2008 Park Elektrik Madencilik 2009 2010 2011 June 2015 2012 2013 2014 27

Breakdown of Cost of Production, as of YE 14, (copper only) Materials Fuel 2% 4% Energy 4% Labour 12% Park Elektrik Madencilik Others 12% Depreciatio n 65% June 2015 28

Annual Margin Comparison (TL mn) 2008 2009 2010 2011 2012 2013 2014 Sales 111 Gross Profit 73 Gross Margin 66% EBITDA 62 EBITDA Margin 56% Net Earnings 75 Net Margin 68% 79 32 41% 24 30% 19 25% 84 44 52% 42 50% 37 44% 173 107 62% 112 65% 101 58% 265 134 51% 165 62% 107 40% 261 72 28% 147 57% 70 27% 223 24 11% 121 54% 20 9% Park Elektrik Madencilik June 2015 29

Sources of Financing (TL mn) Shareholders' Equity Total Debt 64 30 8 53 88 14 100 130 143 2004 2005 2006 2007 223 2008 53 443 450 2011 2012 33 60 66 41 55 302 343 2009 2010 520 499 2013 2014 * Park Elektrik has no financial debt. Park Elektrik Madencilik June 2015 30

V. Evaluation of 1 Q 15 Financial Results Park Elektrik Madencilik June 2015 31

Evaluation of 1 Q 2015 Financial Results § In 1 Q 15, copper concentrate production was realized as 23, 358 wmt indicating a slight increase as compared to 1 Q 14. On the other hand, copper concentrate sales during the same period posted a 18% increase during the same period and realized as 19, 919 dmt over 16, 894 dmt in 1 Q 14. However, due to declining copper prices by 15% in the related period, company’s sales revenues declined by 16% in 1 Q 15, yoy. Moreover, please note that last year’s 1 Q revenues was including TL 11. 6 mn of asphaltite revenues as the company sold its asphaltite assets in the end of 1 Q 14. § In the first quarter, Park Elektrik’s operating profit increased from TL 831 k to TL 4, 3 mn thanks to interest and fx gains. Park Elektrik Madencilik June 2015 32

Production & Sales Amount Production Concentrated Copper (wmt) Sales Concentrated Copper (dmt) Park Elektrik Madencilik 1 Q 14 1 Q 15 % 23, 042 23, 358 1% 1 Q 14 1 Q 15 % 16, 894 19, 919 18% June 2015 33

Income Statement (TL) Sales COGS Gross Profit Gross Margin General Adm. Expenses Marketing&Distribution Exp. Other Operating Income Other Operating Expenses Operating Income Operating Margin Income From Investments Expense From Investments Income Before Financial Expenses Financial Income Financial Expenses (-) Profit Before Tax Income/Expense Net Profit Net Margin Park Elektrik Madencilik 1 Q 15 47. 778. 712 -38. 517. 308 9. 261. 404 19% -4. 358. 619 -3. 290. 722 8. 772. 468 -6. 115. 796 4. 268. 735 9% 1. 948. 795 -1. 362. 051 4. 855. 479 10. 080 -59. 431 4. 806. 128 -1. 567. 104 3. 239. 024 7% June 2015 1 Q 14 56. 764. 373 -46. 290. 259 10. 474. 114 18% -6. 314. 051 -3. 156. 557 8. 134. 264 -8. 306. 893 830. 877 1% 14. 101. 137 -276. 769 14. 655. 245 -268. 556 14. 386. 689 2. 400. 688 16. 787. 377 30% Chg. -16% -17% -12% -31% 4% 8% -26% 414% -86% 392% -67% -78% -67% -165% -81% 34

Summary Balance Sheets (TL) YE 14 1 Q 15 Current Assets 297, 365, 121 306, 925, 114 Fixed Assets 255, 897, 086 252, 175, 667 TOTAL ASSETS 553, 262, 207 559, 100, 781 Short Term Liabilities 38, 151, 674 41, 281, 769 Long Term Liabilities 16, 434, 153 15, 903, 608 Shareholders Equity 498, 676, 380 501, 915, 404 TOTAL LIABILITIES 553, 262, 207 559, 100, 781 Park Elektrik Madencilik June 2015 35

T H A N K Y O U. CONTACTS Yesim Bilginturan Selim Erdogan IR Manager Phone: +90 216 531 25 33 +90 216 531 25 35 y. bilginturan@cinergroup. com. tr s. erdogan@cinergroup. com. tr www. parkelektrik. com. tr www. cinergroup. com. tr Park Elektrik Madencilik June 2015 36