1. January 2015 GLOBAL COMPETITIVENESS FORUM At the Crossroads How Saudi Arabia can Leverage its Unique Position and Become a Leader in Global Transport Dr. Temel Kotil, CEO of Turkish Airlines

2. Air Passenger Numbers 1994 1.2 billion 2034 7.3 billion x2.2 2014 3.3 billion Source: IATA, GACA, domestic arrival/departures dived into two to find passengers *2014 and 2034 forecasts are based on ACI values x2.7 18.8 million 47 million* 115 million* WORLD SAUDI ARABIA X2.5

3. Passenger Flow Development Total Scheduled Revenue Passenger-Kilometers To/From and Intra Regions (Trillions) North America Africa Middle East 2013 2033 Europe Asia Pacific Latin America Source: Boeing Current Market Outlook 2013-2033 2013 2033

4. Passenger Flow Development Total Scheduled Revenue Passenger-Kilometers To/From and Intra Regions (Trillions) North America Africa Middle East 2013 2033 Europe Asia Pacific Latin America Source: Boeing Current Market Outlook 2013-2033 2013 2033

5. World Outlook For 2015 Load Factor Passenger Numbers Revenue Passenger km (RPK) 3.3 billions Source: IATA Fact Sheet December 2014 3.5 billions %79.9 2014F 2015F +0.2 points -0.3 points %79.6 %5.5 %6.8 2014F 2015F 6.1 trillions 6.5 trillions %5.7 %7 2014F 2015F

6. Driving The Center Of Gravity Of Traffic To The South And East Geographic center of gravity of departing/arriving/connecting passengers per city 1971 1981 1991 2001 2011 2021 2031 Source: Airbus Global Market Forecast 2012

7. Development of Passenger Market Share by Airline Domicile Source: IATA, Airbus 2014 GMF. Market share of European carriers has been going steady Market share can be lost to Asian & Middle Eastern carriers. Market Share in Revenue Passenger km (RPK)

8. International Passenger Growth Source: ACI 2012-2031 Traffic Forecast Regional International Passenger Growth (2011 - 2031) *The diameter of spheres show extra passenger number in 2031 compared to 2011 Europe will still be the driver of international traffic Asia & Pasific & Middle East will be expected to grow faster

9. 58 million jobs 2.4 trillion USD GDP Economic Benefits Of Aviaiton Today 3.4% of World GDP 105 million jobs 6 trillion USD GDP In 20 Years 4.1% of World GDP X1.8 X2.5 Source: ATAG, *Total (direct, indirect, induced) effect, Today values are 2012 values.

10. Impact Of Connectivity Connectivity can boost the productivity and growth of economies Connectivity & Network development Source: IATA economic performance 2014 Today, we are more connected Widens markets Improves efficiency & productivity Encouragesinvestment Labor Productivity vs Connectivity Connectivity per $ Billion of GDP Labour Productivity – GDP/Hour Developed Asia Developing Asia and Africa North America and Western Europe Emerging Europe Transitioning Asia and South America

11. Network Today & Tomorrow Source: Airbus 2014 GMF > 50,000 daily long-haul passengers > 20,000 daily long-haul passengers > 10,000 daily long-haul passengers 42 Mega Cities 2013

12. Network Today & Tomorrow Source: Airbus 2014 GMF > 50,000 daily long-haul passengers > 20,000 daily long-haul passengers > 10,000 daily long-haul passengers 2033 91 Mega Cities JEDDAH RIYADH

13. Knowing the Customer Low price sensitiviy Time sensitive High service levels Price sensitive Low time sensitivity Medium service levels Long-Haul Personal Travel %70 %50-60 Of Revenue Price sensitive Extremely time sensitive Some cross-over to LCC Highly price sensitive Time sensitive Minimal service levels Business Travel %30 %40-50 Of Revenue Source: Boeing Travel Distance Short-Haul %35 long-haul %65 short-haul Travel Purpose

14. Who We Are Passenger / Our Boss Network Human Capital Aircraft Aviation

15. Customer Satisfaction in Aviation Sector Assuarance Responsiveness Flight Patterns EmployeesFacilities Reliability CUSTOMER SATISFACTION Regulatory Environment Technology Passenger Expectations Airline and Industry Strategies CUSTOMIZATION Kaynak: Boeing

16. Drivers For The Development Of Aviation Drivers Social & Economical developments Infrastructure investments Regional Future Air Passenger Demand Growth Forecast Domestic Market Growth Airport Passenger growths Local Demand Potential Regulations & Liberalization

17. Yearly Airport Passenger Growth Since 2012 Regional Airport Passenger Growth Source: General Directorate of State Airports Authority (DHMI) Middle East is the fastest growing region in airport passenger numbers. World average

18. International Demand Growth Potential Source: Boeing Current Market Outlook %5.4 %7.4 %7.3 %6.3 2013-2033 annual revenue passenger km growth Diversed traffic to all other regions Flow to all regions will be expected to grow fast

19. 2003-2013 Annual Passenger Growth Airport Passenger Traffic Growth Source: General Directorate of State Airports Authority (DHMI) Saudi Arabian hubs have been growing much faster than the world’s biggest European and American hubs 9-10% growth rates Fast Growth Rate -1 to 5% growth rates

20. Saudi Arabian Airports Source: General Directorate of State Airports Authority (DHMI) 2013: 68 million airport passengers 1 million ton cargo & posa Connectivity with scheduled traffic has been increasing fast and constantly Connects to about 90 unique international destinations. 90 Int. Dest. 56 İnternational link 78 İnternational link 2nd largest country (after U.A.E.) in terms of total passengers in the region.

21. Domestic Passenger Potential Source: General Directorate of State Airports Authority (DHMI) 2013: 30 million domestic passengers at ariports Strong domestic market

22. Demand For Air Travel Source: ATAG 2014) Propensity to fly is close to 1 Propensity To Fly

23. Local Passenger Potential Source: Pew Research Center 23% of the world’s population, Islam is the second-largest religion.

24. Local Passenger Potential Source: Arabnews, Ministry of Hajj About 3 million Hajj visitors About 6 million Umrah visitors 10-20% growth potential

25. Social & Economic Advantages Source: IMF, CIA Fact sheet, Young & growing population Largest exporter of petroleum in the world 2014E GDP: 778 billion USD Urban Population: 90% Strong economic performance GDP per capita 2014E: 25,400 USD Population: About 30 million GDP annual avg. Growth (2014-2019): %4.4 Etnic traffic - 10% of population is etnic.

26. About Turkish Aviation Market & Turkish Airlines

27. Total Passenger Numbers (millions) Turkish Aviation Market Growth Source: General Directorate of State Airports Authority (DHMI) 29 (million) 36 44 50 54 63 65 79 89 98 111 123 2004 - 2014 CAGR = 13% 138

28. Network Coverage Aviation in Turkey 2003:25.3 M 216% Increase International Passenger Revenue: 627% Increase 2003:$2.2 billion 2003:26 # of Airports: 100% Increase 2003:162 172% Increase # of Aircraft: 2003 2014 2014:441 2014:80 M 2013:$16 billion 2014:52

29. 2004 - 2014 CAGR = 17% Turkish Airlines’ Passenger Numbers (in millions) Turkish Airlines’ Passenger Volume Development Grew more than 3 times faster than the world

30. Turkish Airlines’ # of Landings, Destinations & Passengers Achieving Multi-Dimensional Growth The diameter of the sphere illustrates total annual passenger number 2003 2004 10m 2005 14m 2006 17m 2007 20m 2008 23m 2009 25m 2010 29m 2011 33m 2012 39m 2013 48m 2014 55 m 2015B 63 milion pax Number of Landings Number of Destinations Number of Passengers

31. THANK YOU