Petkim Petrochemical Holding Corp.

Presentation to Analysts

October 2010
 AGENDA

1 I World Economy & Petrochemical Industry

2 I A Glance at Petkim

3 I Investments

4 I Growth Plans and Strategies

5 I Key Financials

2
 World Economy & Petrochemical Industry
Economic Growth in Selected Economies (%, yoy) World Economic Growth Rate (%) Regional & World Ethylene Operating Rates (%)

2009 2010 2011

2009
Advanced Ec on. -3,2 2,6 2,4
Emerging Ec on. 2,5 6,8 6,4 2010

9,1 10 9,6 9,4 2011

8,4
7,1
5,7 6,1
3,3 2,9 4,3 4,1 4,2 3,6
2,4 1,8 2 3,4
-0,2
1 1,3

US EU Japan Russia China India Braz il Turkey C&EE

-2,4
-3,6
-4,1 -4,7
-5,2 -7,9
World North Asia South Asia India

Source: IMF, World Economic Outlook(WEO), September 2010 Source: CMAI Source: CMAI

DUE TO THE CRISIS GROWTH RATES SLIGHT RECOVERY IS OBSERVED BEGINNING

DECELERATED IN ALMOST EVERY REGION OF FROM THE SECOND HALF OF 2009. MODEST RECOVERY IS EXPECTED IN OPERATING
THE WORLD. BUT RECOVERY IS EXPECTED FOR GROWTH IS OBSERVED IN 2010. RATES AS GLOBAL DEMAND IMPROVES.
2010

ICIS Petrochemical Index (IPEX)* Crude Oil Naphtha Gasoline Price Expectations Global Basic Chemicals and EBIT Contribution
400 Dollars Per Metric Ton
1.200 200

350 1.000 150

Fiyatlar ($/MT)

800 100

Marjlar ($/MT)
300
600 50

250 %90 400 0

200 -50
200
0 -100
Oca.06 Oca.07 Oca.08 Oca.09 Oca.10 Oca.11
150
Mar.05 Oct-05 May.06 Dec-06 Jul-07 Feb-08 Sep-08 Apr-09 Nov-09 Haz.10 Nafta-Ham Petrol Ham Petrol (Brent)
Benzin (CIF NWE) Nafta (CIF NWE)
Source: CEFIC Source: CMAI Source: CMAI

OIL PRICES ARE EXPECTED TO REMAIN FUTURE EARNINGS ARE EXPECTED TO

THE ICIS PETROCHEMICAL INDEX ROSE TO 299 BETWEEN USD 75-85 RANGE IN 2010.
IN JUNE 2010, A GAIN OF %90 OVER THE STRENGHTEN WITH THE CONSOLIDATION,
NAPHTHA AND GASOLINE PRICES ARE M&A IN INDUSTRY AND SUCCESSFUL
FEBRUARY READING OF 157. EXPECTED TO FOLLOW CRUDE OIL. ECONOMIC STIMULUS

* An indicator of average change in world petchem prices for basket of 12 essential petchem products in US, WE and Northeast Asian markets

3
 AGENDA

1 I World Economy & Petrochemical Industry

2 I A Glance at Petkim

3 I Investments

4 I Growth Plans and Strategies

5 I Key Financials

4
PETKİM

5
 Petrochemicals from Naphtha
ETHYLENE
AROMATICS

LDPE
Bags, greenhouse covers, film, AROMATICS
NAPHTHA-LPG
cables, toys, pipes, bottles, hoses, ETHYLENE PROPYLENE
packaging BENZENE, TOLUENE
C4
HDPE Detergent, white goods,
Packaging film, construction and Solvents, explosives,
water pipes, bottles, soft drink pharmaceuticals,
crates, toys, jerry cans, barrels cosmetics

MEG O-X - PA
Polyester fiber, polyester film, C4 PROPYLENE Pigments, plasticizers,
antifreeze synthetic chemicals,
BUTADIENE PP
polyester
VCM - PVC - EDC Rubber Knitting yarn, sacks,
Pipes, window and door frames, Automobile tire carpet thread, ropes
P-X - PTA
blinds and shutters, cables, bottles, and hawsers, table
Polyester fiber, polyester
construction materials, packaging cloths, napkins,
resin, polyester film
film, floor tiles, serum bags doormats, felt, hoses,
radiator pipes, fishing
CA-CAUSTIC SODA nets, brushes, blankets
Textile, detergent
ACN
Textile fibers, artificial
wool, ABS (Acrylonitrile
Butadiene Styrene)
resins

6
 Company Overview
• Established in 1965/Second complex commissioned in 1985
• The sole petrochemical producer in Turkey
PETKİM • 25% domestic market share and well positioned assets in
an ever growing market
• USD 1.412 mn net sales (9M 2010)
• USD 99 mn EBITDA (9M 2010)

• 15 main plants, 8 auxiliary units

FACILITIES • Located in Aliağa near Izmir
• Sits on a land of 19 mn sqm
• Harbour, water dam, power generation unit (226 MW)
• Adjacent to Tüpraş Aliağa Refinery
MAIN
FEEDSTOCK • Naphtha, LPG, C4, Condensate
PRODUCTS • Main product goups: olefins, polyolefins, vinyl
chain, aromatics and other basic chemicals

PRODUCTION • 2.399 th. tons of gross production realized in 9M 2010

• Realized capacity utilization rate of 97,7% (planned as
96% in 2010)

7
 Petkim’s Ownership Structure

Share Information (26 October 2010)

Closing Price (TRY/Share) 2,62

Market Cap (mn TRY) 2.620
Market Cap (mn $) 1.854
Ownership Profile

Free Float (%) 38,7 PA

10,3%
Source: Reuters

Stock Price Performance

220
Relative Performance
200 SOCAR Turcas Free Float
51,0% 38,7%
180

160
Strong Performance
140 Privatization process was completed in May
2008. SOCAR&Turcas Consortium acquired
120
51% stake in Petkim at an amount of USD
100 2.04 bn.
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

ISE 100 PETKIM

Source: Reuters

8
Petkim: The Strong & Tangible Symbol of Economical & Strategical Partnership
TURCAS is the first privately-owned
petroleum company in Turkey focusing
on distrubution of oil products and
energy investments through its
international strategical partnerships
PETKİM
A BRIDGE LINKING AEGEAN TO CASPIAN
SOCAR, with large-scale investments in
Azerbaijan is one of the world’s oldest
petroleum companies. SOCAR is a
shareholder and major supplier of the 50
million ton capacity BTC crude oil
pipeline and the BTE natural gas
pipeline, which transports 6,6 billion
cubic meters of natural gas to Turkey
9
 Products and Capacity
PETKIM Product Capacities
ALIAGA COMPLEX (thousand tons)
START-UP 1985
ETHYLENE 520
PLANT CAPACITIES PROPYLENE 240
C4 140
PY-GAS 390
Thermoplastics
AROMATICS 320
Capacity 713,000 ton/yr
BENZENE 134
P-X 136
O-X 50
Fiber Raw Materials
CHLORINE 100
Capacity 249,000 ton/yr
VCM 152
PVC 150

Other Products1 LDPE 323

Capacity 954,000 ton/yr HDPE 96
PP 144
1 Ethylene (520,000),
VCM (152,000), MEG 89
PA (34,000), ACN 90
TOTAL Chlorine (100,000),
Capacity 1,916,000 ton/yr Benzene (134,000), PTA 70
MB (10,000), PA 34
Plastic Products
(4,000)
Power (MW) 226

10
 Petkim: Net Sales
Net Sales (thousand tons) Net Sales (million USD)
1600 1.442
1.371 1.391
1400
1.208
1200 1.049
1000
800
600 444
364 385
400
200
0
2007 2008 2009 9M 09 9M 10 Q3 09 Q2 10 Q3 10

Breakdown of Sales Volume 9M 2010 Breakdown of Sales Revenues 9M 2010

11
 Petkim: Exports
Breakdown of Exports Revenues by Product Type 9M 2010 Exports Revenues by Years (million USD)

Breakdown of Exports by Region 9M 2010

• Petkim products are exported to nearly 60 different

countries
• Benzene, C4, LDPE, Py-Gas and P-X are the main
exports products.
• The second exporter in chemical industry in Turkey in
2009.
• Share of export in total sales 9M 2010 is 26%

12
 Petkim: Product Prices & Cost Breakdown
Petkim Thermoplastics and Naphtha Price Changes Petkim EBITDA Performance (million USD)
Index (2007 January=100)
115
99 99
250 95 89

200 75
150 55
39
34 31
100 35
50 15
Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 -4
-5
Thermoplastics Naphtha 2008 2009 9M 09 9M 10 Q3 09 Q2 10 Q3 10

Raw Material and Product Prices (USD/ton)* Raw Material and Product Prices (USD/ton)

Cost Breakdown* 2000

1.750 Naphtha Cost Product Prices
1.500
Energy Others 1500
1.250
9,3% 6,8%
1.000 Labour
750 5,2% 1000

500
250 500
Raw
0 Material
LDPE HDPE PP MEG PVC 78,7% 0
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10
* As of September 2010
Naphtha Unit Price

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Petkim: A Remarkable Turnaround Driven by Operational Efficiencies
W. Europe Ethylene Capacity Utilitization Rates
• Feedstock flexibility (switching from Naphtha
to LPG/C4)
• Fuel flexibility in power generation
• Maximization of capacity utilitization (95%)
• Restructuring and rejuvenation of labor force
• Initiatives for energy efficiency
improvement
• Process optimization
(APC, DCS implementation)
• Increasing trading opportunities

Efficiencies on Marketable Production Per Capita Petkim Ethylene Capacity Utilitization Rates (%)
Person
110
105
100
95
90
85
80
75
70 Low capacity
65 due to incidental outage
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 2009 2010

14
 AGENDA

1 I World Economy & Petrochemical Industry

2 I A Glance at Petkim

3 I Investments

4 I Growth Plans and Strategies

5 I Key Financials

15
 Capital Expenditures and Planned Capacity Increases
Capital Expenditures of Petkim (million USD) • Moderate gearing of capital investments instead of fully
financing with equity as it has been in the past
160 154
• Increasing capacities of existing plants with minor capex-
140 smart debottlenecking investments
120 • Maximizing production of LDPE, where Petkim has a
100 competitive advantage
78 74
80 72
66 • Optimizing processes in the plants ( implementation of
56 54
60 50 46 Advanced Process Control and Distributed Control
Systems)
40
• Investments to enhance egergy savings and operational
20
efficiencies on existing plants (such as rehabilitation work
0 for the furnaces of the aromatics plant)
02

03

04

05

06

07

08

09

P
10
20

20

20

20

20

20

20

20

20

Planned Capacity Increases (th ton)

Plants Current Additional After Date

Capacity Cap Increase Cap Increase

Ethylene 520 67 587 2012

LDPE-T 133 27 160 2011
PA 34 15 49 2012
PTA 70 35 105 2012

16
 Investment Highlights
PETKIM 1998-2009 CAGR
Dominant producer Thermoplastics demand 6,5%
25% market share GDP growth 3,0%

Growth Potential in the Domestic Market Petrochemicals Domestic Demand (thousand ton)
Therm oplastics Dom estic Grow th (%) GDP Grow th (%) 4000
30
3500
25 Thermoplastics
3000
20 2500 Fiber Raw
15 2000
10 1500
5 1000

0
500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0
-5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2015
-10 E
-15
Plastics Consumption per Capita
• One of the fastest growing markets Kg/capita 2007 2008 2009
• An attractive market, the second biggest importer of
U.S.A 90 75 76
petrochemicals after China
W.Europe 78 69 70
• More than 6000 small and medium sized companies Turkey 45 43 45
are active mainly in packaging, construction and Republic of China 30 28 30
automotive fields World 25 24 24
Brazil 23 25 27
• Petrochemical market size 6-7 billion USD India 6 5 6

17
 AGENDA

1 I World Economy & Petrochemical Industry

2 I A Glance at Petkim

3 I Investments

4 I Growth Plans and Strategies

5 I Key Financials

18
 Growth Plan and Strategy

DOWNSTREAM
• ADVANTAGES OF WIDE PRODUCT
RANGE
• HIGH VALUE ADDED SPECIALTY
CHEMICALS
• STRATEGIC PARTNERSHIPS WITH
CUSTOMERS OR OTHER
INVESTORS (CLUSTER MODEL)

UPSTREAM 4 PILLARS OF GROWTH PLAN

SYNERGY WITH ENERGY
SOCAR&TURCAS PRODUCTION
REFINERY

LOGISTICS & TRADING

19
 Short Term Growth Plans
Feedstock Flexibility
• Increasing LPG utilization in feed
slate of cracker
• Utilization of Fluid Catalytic
Cracking (FCC) and C4 stream
• Setting up an advanced “steam
cracker” model for the utilization of
different feedstocks and the factory
optimization
Trading
Sales&Marketing
• Meeting total needs of customers
• Product trading that will be conducted
from Aliaga and also from new logistic
centers
• New financial instruments to promote
sales
Energy
• Energy saving program
• Opportunity for importing NG from
Azerbaijan
• Power generation from wind
Business
Transformation
• Reviewing the current performance
• Assessing potential improvement
areas in organization, maintenance,
energy, HSE and operations
• Improving IT infrastructure with ERP
and integrated Manufacturing Execution
System (MES)
Logistics
• New distribution centers
• Increased transportation by rail
• Potential strategic partnership
opportunities in port business
• Capability for storage facilities leasing
Capacity Increase
Capacity increase by:
• Ethylene and thermoplastics revamping
• Debottlenecking and modernization
• Maximizing asset utllitization
20
Mid to Long Term Growth Plans
TO REACH 40% MARKET SHARE WITH
“DOWNSTREAM” INVESTMENTS –VALUE SITE

• Available infrastructure for potential investments

• Double digit demand growth in the Turkish chemical sector
• Increasing competitive advantage with sinergies created
• New investment opportunities with local and foreign companies
• Cluster Model

SECURING FEEDSTOCK WITH THE REFINERY

INTEGRATION
SOCAR&TURCAS AEGEAN REFINERY
• Allocation of 130 ha area for the refinery investment
• 10 million tons /year crude oil capacity
• Product slate: naphtha, LPG, diesel, kerosene, jet fuel (no gasoline)
• 30% investment cost reduction due to existing infrastructure
• Creation of synergy with the vertical integration
• Feedstock security for Petkim
• Additional revenue from services to the refinery

21
 Growth Plan and Strategy

GROWING WITH LOGISTICS INVESTMENTS

LOGISTICS ADVANTAGES
¾ To become one of the key logistics ¾ Increasing harbour capacity and
main terminals in the region utilization rate
¾ High capacity potential of container ¾ Storage of various solid, liquid, and
handling gas chemicals
¾ High capacity potential of liquid ¾ Paving the way for potential
and dry cargo handling investments on transportation
¾ High capacity of logistics support ¾ Import and export opportunities for
units chemicals
¾ Direct access to national railway
hubs and national transit ways and
highways
¾ Tank Farm
Exclusivity agreements have been signed with one of the industry-leading companies, APM Terminals BV, for the
development of Petkim port, and negotiations are currently continuing.

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 Cluster Model
CHEMICAL INDUSTRY PARKS

• Providing the highest level of vertical integration

between petrochemicals and refinery,
• Co-existing small to medium enterprises,
supporting industries, R&D, and technology
development centers,
• Opportunity to source the feedstock directly
from nearby plant and supply output ‘over-the-
fence’ to end users.
• Sharing infrastructure, facilities, repair and
maintenance, utilities and other services,
optimising land use,
• Cost savings on raw materials, transportation,
storage etc. by sharing existing infrastructure
• Achieving competitiveness by sharing logistics,
energy and human resources.

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 Chemical Park Cluster Models
MARL Chemical Park (Germany) Antwerp (Belgium)

Cluster Models Wilton International Teesside (England)

ƒ MARL Chemical Park (Germany)
ƒ Wilton International Teesside
(England)
ƒ Shangay Chemical Park (China)
ƒ Jurong Island (Singapore)
ƒ North-Pas de Calais (France)
ƒ Point Lisas Industrial Estate (Trinidad)
ƒ Zeitz Industrial Park (Germany)
ƒ Dow Value Park (Germany)
ƒ Antwerp (Belgium)
ƒ Chemical Alliance Zone (USD)

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 JURONG-Singapore
Year 1960 Today

JURONG ISLAND’S KEY FIGURES

Total Sales (billion USD) ~75
Land (hectare) 3.200
# of Operated Plants (unit) 95
# of Labour 30.000
Refinery Capacity (million barrel/day) ~1,3
# of Crackers (unit) 5
Electricity Generation Capacity (mw) 4.650

25
 PETKİM & Jurong International

• The world's most successful petrochemical

park, Jurong Island, is a man-made landmass
created from seven islands, in which a number
of chemical companies co-exist.

• Petkim signed a consultancy contract with

JURONG International Pte Ltd. (JURONG)
which has established the cluster model of
Jurong Island Chemical Park in Singapore and
planned chemical park fields in more than 40
countries.

• A Master Plan study is being conducted by

JURONG in order to ensure the most efficient
use of the existing land and infrastructure and to
establish a chemical park that will integrate the
value chain of upstream, downstream, energy
and logistics.

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27
 AGENDA

1 I World Economy & Petrochemical Industry

2 I A Glance at Petkim

3 I Investments

4 I Growth Plans and Strategies

5 I Key Financials

28
 Financials
Balance Sheet (Million USD) (IFRS)
Cash&Bank Debt (Million USD)
31/12/2008 31/12/2009 30/09/2010
Cash&Cash Equivalents 19 116 167
Trade Receivables 149 224 223
Inventories 115 208 206
Other Current Assets 11 19 14
Current Assets 293 567 610
Non-Current Assets 830 836 873
Receivables, Inventories and Payables (Million USD)
TOTAL ASSETS 1.123 1.403 1.483
Financial Liabilities 19 58 58
Trade Payables 89 265 235
Other Payables 58 52 56
Short-Term Liabilities 166 376 348
Long-Term Liabilities 60 51 57
Shareholders’ Equity 897 975 1.078

TOTAL LIABILITIES 1. 123 1.403 1.483

30
 Financials
Income Statement (Million USD) (IFRS )
2007 2008 2009 Sep09 Sep10 3Q 09 2Q 10 3Q 10
Net Sales 1.671 1.795 1.342 937 1.412 377 470 491
Cost of Goods Sold (-) (1.514) (1.822) 1.269 (872) (1.305) (358) (421) (465)
Gross Profit (Loss) 157 (27) 73 65 106 19 49 26
Gross Profit (Loss) Margin 9,4% -1,5% 5,4% 6,9% 7,5% 5,1% 10,4% 5,3%
Operating Expenses (-) (74) (72) (44) (29) (42) (9) (15) (13)
Other Operating
(20) (3) (3) 2 (4) 1 (3) (0)
Income/(Expenses),net
Operating Profit/(Loss) 63 (102) 26 38 61 11 31 13
Financial Income/(Expenses) (11) (20) 16 6 7 5 (6) 12
Profit/(Loss) Before Taxation 52 (122) 41 44 67 16 25 24
Deferred Tax (1) 5 34 (2) (5) 1 4 (5)
Net Profit/(Loss) for the Period 51 (117) 75 42 62 16 29 19
EBITDA 128 (4) 99 89 99 34 39 31
EBITDA Margin 7,7% -0,2% 7,4% 9,5% 7,0% 9,0% 8,4% 6,3%

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 Petkim’s Today

FITCH RATINGS
FOREIGN

CURRENCY LOCAL CURRENCY

DATE LONG TERM LONG TERM NATIONAL

June, 2010 BB- (negative) BB- (negative) A (tur) (negative)

May, 2009 BB- (negative) BB- (negative) AA- (tur) (negative)

September, 2008 BB- (stable) BB- (stable) AA- (tur) (stable)
January, 2008 BB (stable) BB (stable) AA (tur) (stable)

June, 2007 BB (stable) BB (stable) AA (tur) (stable)

April, 2007 BB (stable) BB (stable) AA- (tur) (stable)

February, 2006 BB- (stable) BB (stable) AA- (tur) (stable)

While many petrochemical companies’ credit ratings

were downgraded all around the world,
Fitchratings affirmed Petkim’s rating with BB-/negative outlook.

31
 Corporate Governance Rating

• Upgraded to an overall Corporate Governance rating of 8,19 from previous one of 7,71

• A clear sign of a good compliance to CMB Corporate Governance Principles

• An indication of imposing necessary policies and measures and confirmation of the

management activities that are carried out at a high level of quality

• Listed on the Istanbul Stock Exchange's prestigious Corporate Governance Index

• Committed to improve its performance on Corporate Governance Principles compliance

Sub Categories Weight Grade

Shareholders 25 % 8,00
Public Disclosure and Transparency 35% 9,04
Stakeholders 15% 9,26
Board of Directors 25% 6,53

OVERALL 8,19

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 Disclaimer

This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for,
underwrite or otherwise acquire, any securities of Petkim Petrokimya Holdings A.Ş. (the “Company”) or any member of its group nor should it or
any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any
member of its group nor shall it or any part of it form the basis of or be relied on in connection with any contract, investment decision or
commitment whatsoever. This presentation has been made to you solely for your information and background and is subject to amendment.
This presentation (or any part of it) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or indirectly,
to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior
written consent of the Company.
This presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts,
statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of
operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-
looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the
future. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results of
operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those
made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations,
financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking
statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The
Company does not undertake any obligation to review or confirm analyst expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.
This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any
locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which
would require any registration or licensing within such jurisdiction.
The contents of this presentation have not been verified by any authority. No representation or warranty, express or implied, is made as to the
fairness, accuracy or completeness of the information contained herein and no reliance should be placed on it. None of the Company, their
advisers, connected persons or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentation
or its contents.

33
 Investor Relations
We welcome your questions, comments and suggestions. Our corporate headquarters office address is:

Petkim Petrochemical Holding Corp. PO. Box.12

Aliağa, 35801 İzmir/ TURKEY
To contact us with respect to shareholding relations for individual and corporate investors, please call directly or send
an e-mail to
Ms. Füsun UGAN
Finance Manager
Tel :+90 232 616 1240 (Ext:4575)
Direct :+90 232 616 6127
E-mail :fugan@petkim.com.tr

Mr. Şafak AYIŞIĞI

Assistant General Manager (Finance)
Tel :+90 232 616 1240 (Ext: 2150)
Fax :+90 232 616 2297
E-mail :sayisigi@petkim.com.tr

Mr. Hayati ÖZTÜRK

General Manager
Tel :+90 232 616 1240 (Ext:2040)
Direct :+90 232 616 2297
Fax :+90 232 616 8519
E-mail :hozturk@petkim.com.tr

Also, please visit our web site at www.petkim.com.tr for further information and queries.

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