Good day and welcome to the Third Quarter 2016 Results Conference Call. For your information today's conference is being recorded. At this time, I would like to turn the call over to Mr. Nihat Narin, Director of Investor Relations and Business Developments. Please go ahead, sir.

Thank you, Kale. Good morning and good afternoon. I would like to say welcome to our call on behalf of the management team here. We will start today with the presentation by our CEO, Kaan Terzioglu, then will followed by CFO, Bülent Aksu. And our last session will be the Q&A session. Before we start the presentation, I would like to remind you of the brief legal notice. In this presentation we will make statements that are forward-looking about our future targets and expectations. These are based on our current views and assumptions which may change in the future and our actual results may be different. Mr. Terzioglu, please go ahead sir.

Thank you, Nihat. Good afternoon, good evening everyone. Welcome to Turkcell's third quarter 2016 results call. Before I start I want to thank Nihat for his role as the Investments Relations Director for so many years as he takes on the new challenge as the CEO of Global Tower our new regional tower company and I want to welcome [indiscernible] as our new leader or Investor Relations. I am joined by our full executive team and I would like to basically start by telling you, how happy I am that the first results of the Q3 and first nine months we have closed this quarter and the first nine months on record high revenue and EBITDA both at Turkcell Turkey and group levels despite the fact that Turkey has overcame a major challenge to its democracy by successfully working a coup attempt and during these worrying times we have fulfilled as telecom's industry our duty of enabling the general public, the accurate and timely information platform. We have also provided free emergency communication packages to our customers during this time and I will elaborate on its financial implications as well shortly. Looking to our numbers. Our group revenues rose 8.8% to TRY3.7 billion and our EBITDA by 4.9% year-on-year to TRY1.2 billion. While the EBITDA margin was at 33.3% in the third quarter both of these figures are all-time high third quarter figures for the group. Excluding the impact of the aforementioned emergency packages of this quarter, group revenues would have risen by 10.4% and the EBITDA margin would have been 34.4%. Group net income as per IFRS was TRY163 million mainly due to several one off items which Bülent, our CFO will expand on later. Excluding these impacts our pro forma net income rose 4.2% year-on-year to TRY705 million.…

[Operator Instructions] Our first question is coming from Roman Aberazoff from UBS. Please go ahead.

Thank you so much. It’s Roman Aberazoff from UBS. My first question is on Fintur, I was wondering if you could please give us maybe a little bit more color where exactly you disagreed with Telia. And was it price or was it something else. So something here would be very helpful. And also on the Fintur as well you’ve mentioned the possibility of selling it as being one of the options. So could you perhaps comment on whether you see any actual interest from third parties already today, and whether that is what maybe prompted some change in your thinking. That’s on Fintur. I was also wondering on the operational side, is there a chance that you will start overachieving on your guidance of high single-digit revenue and perhaps tap into the double-digit territory given how strong the underlying performance was once you allow for the one-off, there was roaming, there was free usage in the quarter and going forward hopefully 4G will start to have more impact as well as the competitive environment improves et cetera. So what do you think. Do you we can sustain a double-digit top line growth trajectory from now that will be very helpful. Thank you.

Thank you very much. First of all let me start by answering your first question about Fintur, Roman. Actually what I can tell you is exactly what [Joan] [ph] has said in his conference last week we have agreed actually that the talks were inconclusive, we could not find a middle ground in terms of making an agreement on buying the shares and we will be jointly looking for different options including selling our stake with regard to Fintur, that's what I can tell you and therefore selling yes is one option. I will keep it there not to make anymore further speculations. With regard to the operational side we’re very comfortable with our growth rate. As you know at the beginning of the year we have set 8% to 10% in terms of growth both in Turkey and group level and we are on the higher end of that where we see looking to the performance of the last month actually I see that the penetration rate of smartphones 4.5G customers spending basically more time on TV on their mobiles, spending more time on browsing the Internet gives me confidence that the double-digit growth will be actually sustainable and we will make our targets of 8% to 10% guidance of the year probably towards the higher end of it.

Thank you very much.

Our next question is coming from Hervé Drouet from HSBC. Please go ahead. Hervé Drouet: Yes, good afternoon. Two questions as well on my side. The first one coming back on Fintur when you are talking about different options, does it automatically look at option of selling to potentially strategic investors or can it be potentially listing that you may contemplate as well as one stage in a similar way that you're planning to do potentially yield on next year CFO, Bülent. And the second question is on the operations. During the summer and during the event that happened in Turkey, I understand you had those free emergency package being put in place but I was wondering as well [indiscernible] if you have seen a change of traffic due to the event and you compared on the consumption of as a usage for instance compared with other years it has been as well due to the event on the usage, which was obviously partially offset from the monetization from the free emergency package?

Okay. As I mentioned, I don’t want to speculate on the Fintur case. I can tell you that I have been agreed in an conclusive way in terms of for us to buy the stake of Telia and we will look into other options. This could be sales or any other thing and we will be in touch with Telia in terms of the options as well. With regard to the questions, telecommunications infrastructure in Turkey has been lived through the entire stage and naturally there has been an increase in the traffic during that week particularly and we have provided for above the month, three emergency communication packages both 3G, 4.5G and Wi-Fi options to the public. I don’t think it has had a major impact in terms of a traffic surge for the entire quarter, but of course during the period of the event there has been an increase in the utilization and the industry has been very successful in keeping up with that. Hervé Drouet: Okay, all right. Thank you.

[Operator Instructions] Our next question is coming from Mamet Aguse from Yappi Credit. Please go ahead.

Hi, thanks for the presentation. My question is about the regulatory change in middle that the removal of the - on that price gap. And also I’ve seen the presentation, the significant increase in data, mobile data revenues up around almost doubling year-over-year. Whether in this quarter you make any requalification on the revenue front? And actually I want to ask about profitability implications in terms of savings on the cost front. As well as my second leg of my question is about, the strategic implications of the change in the regulation, whether the saving from this would be used to stay of competition maybe to be constitute to gain some market share/ If you can give color on that that will be great.

Sure, Mamet. Thank you very much for good question. As you have rightly stated, mid of August, saw a very important change in the regulatory front for our Company and retail price controls were basically removed. Well if you look at where we invest and where our costs are and where our customers actually consume our services. We invest 96% of the time for data, 91% of our costs are related to data, and our customers also consume 91% almost all of our data services. And I think the change gives us a new level ground that you reflect in our pricing, the services that we really provide in addition to that, as you know we are significantly shifting from selling road to process data they are indeed in the form of digital services, TV, music, magazines and all sorts of things our customers actually are really looking for. So all these things are reflected in our new value propositions to the customers and they have an impact on the growth of our digital services revenue potential, as well as the revenue growth from data services. Currently if you look I think our last quarter 52% was the range of data revenues. Now we move to 60% and I would say basically see in the market that this trend would continue in terms of more percentage of revenues will come from data services and digital services as only raw data, but really digital services. Clearly this move has given us more competitive edge, as well as more chances to provide profitable services and we will - you know we have seen a portion of this a little portion of that coming from in Q3 and we will see this continuing in the next quarters as well.

Okay, thank you. Maybe just to clarify on the cost front, this reallocation of the mix, I understand that you’re allocating more to data given where the business is growing. But I was wondering whether this shift by stuff just because of the taxes on data versus voice by [indiscernible] around 200, 250 EBITDA margin impact. Whether you have recognized this on the course from this quarter because, is there any other - in the other parts of the business, I understand there are some one-offs but any cost escalation offsetting this, how should we think about going forward in the next couple of quarter maybe?

Now of course this quarter only a portion of our new value propositions are reflected. Naturally there will be a change, due to the different taxation regimes here. We have just in the process of basically booking the value propositions and the right prices of the value propositions for the customers and the new regulatory environment basically is giving us this chance. Now looking to the impact, the changes are not only about the relocation of the revenues of data, but sustain and continued growth of data consumption. As we have indicated in the note, our average 4.5G customers are spending 4.6 gigabytes compared to 2.3 of regular customers and the days of 4.5G customers are continuously increasing. So we would see the impact of more smartphones, more consumption of data and more consumption of value-added services and digital services such as TV and music which actually are all accretive to our ARPU and also accretive to the churn rates. So we will see impact of all these and that’s actually reflected in the guidance that I have provided for not only this year, but also for the three years. I would like to mention that we will reiterate the guidance for the midterm which we have provided a year-ago giving the indication that it will be sustainably growing the business at 10% to 15% and it will be increasing our EBITDA margins towards 34, 35 percentage points.

That’s very helpful. Thank you.

[Operator Instructions] Our next question is coming from Ivan Kim from VTB Capital. Please go ahead.

Good afternoon, it's questions from my side, please. Firstly, if you look at the mobile revenue excluding the emergency package tariffs and probably also excluding the net negative impact from roaming, there was an acceleration and growth in this third quarter, what would you - that acceleration more to - is it an inflation pass through or you would say it's more driven by the higher consumption. That's my first question and the second question is related to your services and solutions kind of revenue, in music, person cloud and all other process data as you call it. Where do you stand against your competition. Does the competition emerge at all in those segments, is it more of the global players, are there any local players competing with you and what's your targets within all of those verticals. Do you want to probably be eventually Turkishmen, hopefully within those. How do you, how do you see yourself within those verticals on a three, five year may be. Thank you?

Thank you very much, Ivan. So with regard to the first question, in Q3 when we launched the 4.5G services, we have a feel of the launch with certain campaigns including double lifting the quarters as well as some special campaigns for roaming, as well as quarter surpluses. As we retire those campaigns and as the consumption levels are 4.5G increases, as well as the number of 4.5G customers, we actually see a healthy growth rate kicking in. So it is in line with our inflationary pricing policy, but also proven by the levels of consumption increases. With regard to the services and solutions revenues and strategy, actually Turkcell is an OTT company, who happens to have telecom licenses. So we are very aggressively entering into TV, music and all sorts of instant messaging platform businesses and leveraging our position as local content and local Telco licensed player. So we see our competition as the global players in this arena and of course we are ready to protect our national and domestic market in the best way utilizing our IMS infrastructure and capability to integrate these applications to our Telco services. With regard to our strategy again all these services including TV, music, digital media and instant messaging are all access applications. They are not only accessible through the competition in our domestic market, but they are also accessible through anywhere globally. And we see ourselves as a strong player in these fields already today and also this position will improve in the next two to five years.

Interesting. Thank you.

Our next question is coming from Roman Aberazoff from UBS. Please go ahead.

Thank you very much. Just a quick follow-up on infrastructure sharing, so I was wondering both expect from the end of the fiber holiday that’s one and also if you could give us an update on your Vodafone joint venture that will be very helpful?

Thank you, Roman. As you would remember, we have announced together with Turksat, the Cable TV operator in Turkey, Vodafone, TELKODER the association of small ISPs of Turkey and ourselves to get together and open up our network for sharing and also create a JV that would do the further deployment of fiber infrastructure of the country. This project is actually on target and we are discussing about the sharing of the networks as the first race and immediately followed up by the new company that will be responsible for building that fiber infrastructure. That mean of course positive progress towards our asset life strategy in terms of the deploying infrastructure that are shareable domestically with the competition. That is also reflected in our strategy of Global Tower, which actually opens up its powers for sharing with other operators in the country.

Okay. Thanks.

As there are no further questions over the phone, I would like to turn the call back to our host for any additional or closing remarks.

While we are waiting the next question, there is some online. I would like to actually ask our CFO if I can repeat question from [indiscernible] from Global Index. Bülent, could you just give us more details about increasing impact of other cost items to direct cost of revenues and decreasing impact of the depreciation and amortization of fixed rate compared to the last as same quarters? Bülent Aksu: Regarding the first question, other costs items are related to the cost devices sold via our retail sales channels and regarding to your second question, our depreciation to revenue rate decreased in Q3 due to the increased in our revenues in Q3.

Thank you. And the second question again from [Barrick] [ph] companies hedged now with denominated cash and cash equivalence position increased to $1 billion as of Q3, 2016 from $0.6 billion as of Q2, 2016 is that any specifically reason for those? Bülent Aksu: As I mentioned in my presentation due to our hedging purposes and hedging policy Turkcell has converted all available cash into the foreign currency and this is the company policy and we continue to see – Q3.

Thank you. And the last question, again from Barrick to our CEO, what was your new game plan after performance of the Global Towers IPO, considering your monetization effect such as divestment introspects?

Thank you Barrick for the question. I mean I think I have numerous banks stated that we would like to progress through an asset like strategy on our balance sheet that means looking into the assets that we have on our balance sheet like towers or fibers these are exactly the areas where we believe we can create value for the shareholders. So we believe our tower assets are impeccable in terms of value and we would like to pursue our objective of going through an IPO in 2017 for these assets. Unfortunately doing the times that we were accepting all the offers which actually showed a very strong demand we had the events in U.S. basically impacting the internet access and that also caused us to focus on this issue in the Turkish market as well. That’s why we have postponed but our expectations from the monetization of that assets continues in a very strong way. With regards to the Fintur, we believe that these markets are markets of value and we are seeking to create the maximum shareholder value by looking all options we have together with our majority shareholder there at Fintur with Telia Company.

Thank you, Kaan. I guess that brings us to the end of the session, if there is no any questions that I noticed if there is not, I would like to ask again my CEO, is there any remark if you would like – and terminate the call.

Well, first of all, thank you very much for joining us at this call and looking forward to our end year conference call. Thank you.

Thank you for all participation and please be aware that it will be a video – audio available for the next off period. If there is any further questions please get in touch with Investor Relations. Thank you. Have a good night and have a good day. Bye-bye.

Ladies and gentlemen, that will conclude today’s conference call. Thank you very much for your participation. You may now disconnect.