Ladies and gentlemen thank you for standing by. I am Constantino, your Chorus Call operator. Welcome and thank you for joining the Turkcell's Conference Call and live Webcast to present and discuss the Turkcell's Fourth Quarter and Full Year 2020 Financial Results Conference Call. All participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question-and-answer session. At this time, I would like to turn the conference over to Mr. Ali Serdar Yagci, Investor Relations and Corporate Finance Director. Please go ahead.

Thank you, Constantino. Hello everyone. Welcome to Turkcell's fourth quarter and full year 2020 results call. Today's speakers are our CEO, Mr. Murat Erkan; and our CFO, Mr. Osman Yilmaz. We will have a brief presentation and afterwards we will be taking your questions. Before we take off, I would like to kindly remind you to review the last page of this presentation for our Safe Harbor statement.

Thank you, Serdar. Good morning and good afternoon. Welcome to Turkcell's fourth quarter and 2020 results call. We have concluded the year marked by challenges and uncertainties resulting in permanent change in every one's life. Our results confirm that we have successfully weathered the storm. This was possible due to our diversified business model proved by our core competencies. Accordingly, we concluded the year on 15.8% revenue growth, generating TRY 19.1 billion with our 42.2% margin we exceeded our guidance level. Overall, we generated TRY 3.4 billion free cash flow in 2020 mainly through strong operational performance. All this was possible on the back of solid growth in subscriber base of 1.1 million strong -- and 1.1 million strong ARPU growth and rising contribution of our strategic focus area. It is also worth to highlight that we exceeded our targeted 1 million net subscriber addition for 2020 despite the pandemic. I am glad to see that the focus on our digital strategy is paying off, both for our results and for the benefit of our customers. Next slide. Let's take a closer look at our fourth quarter performance. With good execution of our customer centric strategy, we delivered our best quarterly revenue growth for the year 2020 at 17.8%. This corresponds to revenue of TRY 7.9 billion. EBITDA growth later was similar, resulting in 41.2% EBITDA margin. Our mobile subscriber base continued to grow in favor of postpaid with 464,000 additions. We have seen solid momentum in our fiber business with all time high net additions in a quarter with 65,000 . Our digital channels gained wider use this quarter over 14% of customer sales of Turkcell Turkey were generated through our website and digital operator application. Overall, we generated TRY 780 million of free cash during the quarter on continues full platforms. Next slide. I am glad to see that we delivered full year results that are in line with our initial guidance in February, beating our revised guidance as well. As of the case with many companies, we had to revise our guidance in April with a more cautious approach as the pandemic brought about significant uncertainties. Yet, by November, we had greater visibility for the year-end revising our guidance upwards having displayed a healthy performance. We owe this performance to our diversified business model, built on the – where the future lies . Our readiness to capture the rising demand for digital services and our ability to swiftly adapt to changing dynamics were integral to this success.

Thank you very much Murat. Now let's take a closer look into our financials. Our performance in the fourth quarter has been robust, and this growth of full year revenue and profitability levels above our initial guidance. We recorded a TRY 7.9 million top line with an increase of 17.8% year-on-year in this quarter. Full year growth was 15.8% on the back of our diversified business model, suggesting residents have flexibility in addition to the contribution for ever increasing data demand. Our EBITDA reached TRY3.2 billion on a 17.8% increase with a 41.2 margin. The bottom line rose to TRY1.3 billion due to strong operations and effective financial risk management. Excluding the one off items in relation to Lifecell Ukraine's deferred tax income of TRY690 million and provision for legal cases, organic net income was around TRY1 billion. For the year 2020, our net income reached TRY4 billion at 39% growth when one of impacts are excluded. We concluded the year with an operational CapEx to sales ratio of around 18.5% in line with our guidance. Next slide. In the fourth quarter, Group revenues rose an incremental TRY1.2 billion. Of this increase, TRY1 billion comes from Turkcell Turkey, thanks to a larger postpaid subscriber base, high growth in corporate segment and strong data demands. Higher equipment revenues backed by sales through the digital channel and corporate projects were the other catalysts of growth. Turkcell International revenues increased by 33.2% to TRY750 million, mainly with the contribution of our Ukrainian operations and the positive impact of currency movements. For the full year, Group revenues rose 15.8% year-on-year to TRY21 million. Looking at the details, Turkcell revenues increased by 17.1%, contributing TRY3.7 billion. International subsidiaries contributed TRY540 million. Consumer finance revenues contracted by TRY333 million given the decline in loan portfolio. Excluding…

The first question is from the line of Cabejsek Ondrej with UBS. Please go ahead.

Hello and thank you for taking my questions and congratulations on a strong year. I have a question around CapEx mainly and probably going into fiber, but so you are guiding for an increased CapEx and sales intensity for 2021. Can you just break down for us a bit what part of that is driven by the fiber plan to pass another 0.5 million homes, what part of that would be driven by some of the ICT initiatives that you've been highlighting over the past couple of quarters? And then on fiber itself, is this an indication of you going into more, rather reaching more homes say in organically rather than through regulatory means? So is this the kind of new normal for Turkcell growing homespass over the next couple of years? Thank you.

Ondrej, thank you very much. For the CapEx side, there are multiple elements for the CapEx. Let us start with the mobile side. We will invest in capacity increase in Turkey. We continued the strong demand for our data and digital services. This is driven by the increasing number of data consumption for our house users. We will continue to provide high-speed and quality household internet services over Superbox in 2021, which is well appreciated by our customers. Please note that Superbox service will lead to additional TRY1 billion annual revenue. We will also invest into our 4.5G network in Ukraine, while expanding our network deployment in Belarus. Furthermore, fiber penetration in Turkey is too low compared to other developed markets. Majority of the broadband connection in the country are based on ADSL technology. That is copper. It is not sufficient to meet the quality connection needs of customers, especially in the pandemic area. As we believe that there is additional need for fiber investment and we will increase our fiber footprint in 2021 by 500,000 homepasses. Meanwhile, as you mentioned for the ICTA investment, we will continue to invest our data center investment in 2021, this is for the CapEx and the CapEx portfolio. Regarding fiber footprint, actually this is -- instead of calling them inorganically, we call it organic approach. So obviously, joint fiber investment is important for Turkey to be able to reach every place in Turkey. While this joint fiber company is going to establish, we would like to invest in our fiber area and this is going to be organically and obviously what you say, this is new normal for Turkcell, we want to continue adding more homepass year-over-year, especially next, maybe three, four years level.

Thank you very much. And can you maybe just elaborate a bit on the 0.5 million and what kind of homes are these? Are they untapped entirely currently or are they -- where there are some kind of networks already in place that will you be, pricing for market share in these areas, and is 0.5 million per year the kind of run rate that we should be expecting over the next four years as you say?

Yes, first of all, we would like to expect 0.5 million run rate. If we issue more than 0.5 million, it's very welcome. Regarding what kind of homepass, there are three types of homepass. One of them, the existing zone that we invest, this is expansion for the existing zones, we already deployed. There will be totally new, Greenfield areas, also possible but probably at least half of them will come from existing zones. Maybe one third of them will come from the new Greenfield area and the other will be using new technologies, which we call e-homepass. That we have fiber at the base station level, I mean mobile base station, we can expand this through this base station area with an e-homepass investment.

If I will, I would like to give you some more breakdown into our coverage, probably 35% of them will go to the fiber, 5% for the data center, 50% for the mobile and 10% other.

That's very clear. Thank you very much.

The next question is from the line of none of Mishra Nikhil with HSBC. Please go ahead.

Yes, thank you for the presentation. A couple of questions. First is on your back end device e-commerce platform Pasaj, can you give us what are your ambitions regarding that? And how big do you see it becoming let's say next three to four years? And secondly, again on asset monetization, apart from the three key areas you mentioned, like Global Towers, ADSL and Superonline, which other areas do you see in the future? Which other assets do you see yourself monetizing in the future?

Okay, first of all, regarding our e-commerce platform, we would like to establish marketplace for electronic and technology markets specifically, because this is where we have expertise, where our customer has strong trust on us. So, we would like to be number one player in this technology and IoT area of marketplace. This is how big obviously, during the pandemic, we see strong demand and increase. We were planning to have 12%, total face of consumer will come from digital side, but what we see that it has already reached 14% end of 2020. So, we're going to revisit our targets. So, we want to go as much as we can. And in this aspect, I think sky is the limit. We'll push more on the e-commerce platform on the marketplace side. For the asset monetization, obviously Superonline, we already declared that couple of years ago, what we can do, but there are other potential. So, as I said before, we have diversified business model comparing operation, driving growth and strong cash generation. We believe that the growth business in our portfolio has the potential to finance their operation. In this context, we may consider strategic option including capital market action, as well as private equity. For now, we see our fiber business, our payments services business Fintech and power business as likely candidates for such a strength strategic action. In your question, the payment services is probably the next one for this candidate. We will keep the market informed and the development in this regard in a timely manner. We also see that the established companies from digital services. So these companies are also potential for the further possibilities like BiP, Lifebox, fizy, TV+. These are more long run things.

Okay, thank you. And any timeline for these -- particular these three assets – not these three assets monetization is Superonline, is there any timeline for this?

I mean, the timeline is not definite yet, because we are discussing with our Board and our shareholder, the best timing for this. So as soon as we finalize the timeline with the Management with the Board of Directors we will come at the right time. Obviously, market condition is strongly depend on this timing. So we'll see, but we want to see something in this year.

Okay, thank you.

We - going to get ready anyway, so but, it depends on market conditions as well.

Sure. Thank you.

Next question is from the line of Jonathan with J.P Morgan. Please go ahead.

Good afternoon. Three questions from me, if I may. Could you comment on potential impacts of continued upsell opportunities on Turkish ARPU growth? Obviously very strong ARPU growth last year, just trying to understand if as economy is opening up, we could see expect ARPU growth ahead of inflation again. And then, second of all, could you comment on how much CapEx is required to support Superonline as it stands at the moment? And then finally, perhaps if you could comment on some of the developments in the prepaid pricing markets and how that is developing from a competitive perspective?

Okay, thank you, everyone for the first question. As, inflationary pricing is a key pillar of our strategy and business model, our price actions are reflected in pricing with a lack due to the contracted nature of our business. We expect our ARPU growth to be in reasonable range around inflation level. And as everybody knows, inflation is the trend of decreasing mode. So while the inflation is in decreasing mode is really difficult to increase. Increase the pricing level, but we would like to be in line with plus or minus a couple of percentage around as the upcoming quarter. So we don't want to be above the inflation too much above the inflation or too much below the inflation. So we're going to stick inflation and pricing as a strategy. And our upsell performance was remarkable so far, and we had the right action on raising the price with customized offer using our analytical capabilities. This resulted in a solid ARPU growth in prepaid segments in the fourth quarter as well. It is also worth noting that this collection of inactive scripted lines had a positive impact on prepaid ARPU growth. So, there are demands, especially when the economy gets better. It creates opportunity to increase upsell and other things as well. So, regarding Superonline, how much CapEx is required, is 35% of the total CapEx in 2021 will be made to support our Superonline fiber business in total CapEx. So, I believe, I already response regarding prepaid pricing market and shipping comprehensive in a first question level. So, for the market size, everybody, all the companies that are focusing on postpaid market, and clearly shows that we are the winner of postpaid markets so far and we would like to keep this going.

Thank you.

Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Turkcell management for any closing comments. Thank you.

Thank you. Thank you, everyone. This is the end of our call. Thank you all for taking the time to participate in our call. Thank you very much.

Thank you very much. Bye-bye.

Ladies and gentlemen, the conference has now concluded and you may disconnect your telephones. Thank you for calling and have a pleasant evening.