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Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.

Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. December 2010. Contents. Introduction 3 Ciner Group in Brief 7 Operations 10 Planned Investments 23 Financial Structure 25 Evaluation of The Latest Financial Tables 40 Recent Developments 47

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Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.

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  1. Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. December 2010

  2. Contents • Introduction 3 • Ciner Group in Brief 7 • Operations 10 • Planned Investments 23 • Financial Structure 25 • Evaluation of The Latest Financial Tables 40 • Recent Developments 47 • Future Prospects 50 • Market Data 53 December 2010

  3. I. Introduction December 2010

  4. The Company • Established in 1994. • Initially offered to public in 1997. • Changed its commercial title in 2000. • Commenced copper operations in late 2006. • Gathered electricity production license in 2008 for establishment of a hydro electricity power plant. • Merged with ISE-listed Group company, Ceytas, in May 2009. • Currently operating a copper and an asphaltite mine and plans to establish an HPP. December 2010

  5. Ownership Structure December 2010

  6. Participations, Park Termik • Park Elektrik has a 10% participation in Park Termik Elektrik San. ve Tic. A.S., a Ciner Group company which is involved in thermal power generation in Ankara province. • Park Termik operates Cayirhan Thermal Power Plant which has a total production capacity of 630 MW in four units. • Cayirhan TPP is the first thermal power plant that was privatized by the Turkish government. Right after the privatization, the CUR in the plant was increased from 48% to 81%, while also the coal production amount of the related coal fields was increased from 500 tons to 7,000 tons level. • The plant is an integrated power generator which procures coal through its own lignite mines. December 2010

  7. II. Ciner Group in Brief December 2010

  8. Park Holding is controlled by Ciner Group, which is solely owned by Mr. Turgay Ciner. Ciner Group’s history goes back to 1978 when it was founded. Ranking among the largest Groups of Turkey, Ciner Group diversified its operations from the energy and mining sectors to tourism, media and broadcasting sectors. Ciner Group is a pioneering actor in energy and mining sector given its new and initial steps since early 1990s. In line with accelerated privatization efforts in 1990s, the Group successfully involved in mining and energy sectors which are the underlying sectors of the Group’s high-speed growth. As of 1H10, The Group has a total asset size of US$3.2 bn, shareholder’s equity of US$1.6bn, consolidated revenues of US$490 mn and consolidated EBITDA of US$133 mn with a sound EBITDA margin of 27%. Ciner Group, Introduction December 2010

  9. Ciner Group, Main Line of Businesses Ciner Group Energy & Mining Group Media Group Commerce, Industry & Services Group Major Companies Park Elektrik Park Termik Park Teknik Eti Soda Silopi Elektrik Park Enerji Ekipmanları Major Companies & Brands Ciner Yayın Holding Haberturk Newspaper Haberturk TV, Radio, Haberturk Web Site Bloomberg HT, FHM, Marie Claire, Newsweek Major Companies Park Construction Park Marine Park Aviation Lares Park Hotels Park Insurance Park Foreign Trade Denmar Logistics December 2010

  10. III. Operations December 2010

  11. Park Elektrik’s Existing & Planned Facilities Park Elektrik & Ciner GroupHeadquarters (Cu) (HPP) (As) (Nat. Gas PP) December 2010

  12. I) Madenköy Copper Zone December 2010

  13. I) Madenköy Copper Zone • License of copper mine in Madenköy zone was acquired from Eti Holding, a state-owned company, for YTL9.4 mn in January 2000. • The company sells concentrated copper that includes 20-24% copper content. • Selling price is determined based on the spot price at the day of transaction in London Metal Exchange. December 2010

  14. II) Silopi Asphaltite Zone • Park Elektrik has the operational rights of an asphaltite mine in Silopi until the end of 2033. Asphaltite is a petroleum-origin hydrocarbon with higher thermal value. Calorie of asphaltite varies between 5,500 and 5,800 kcal/kg. • The mine will be open-pit for the first years of operation. Later on, underground mining will be applied by the method of “Cut and Fill Block Caving”. • According to Turkish Coal Enterprise (TKI) reports, estimated asphaltite reserve in Silopi is around 25 mn tons. • Operations in the asphaltite zone started in June 2009. The company provides asphaltite to Silopi Elektrik Üretim A.Ş., a group company which is involved in electricity production in Silopi with fluidized bed technology and a starting capacity of 135 MW. • Annual production amount in Silopi zone is 400,000 tons and sale price of asphaltite per ton is determined as TL 40.5 for 2009 and 2010. December 2010

  15. IV. Planned Investments December 2010

  16. Diyarbakır HPP • Installed capacity will be 50.5 MW. • Production license is valid for 49 years. • Estimated investment amount is US$ 60 mn. • Estimated start-up for the investments is early 2011. • The plant is estimated to be operational by the end of 2013. December 2010

  17. Ceyhan Natural Gas CCPP • Installed capacity will be 423 MW. • Production license will be valid for 49 years. • Estimated investment amount is around 250 mn Euros. • Decision was taken to make application to Energy Market Regulatory Authority. December 2010

  18. V. Financial Structure December 2010

  19. Quarterly Copper Sales Since The Beginning (dmt) December 2010

  20. Annual Copper Sales (dmt) December 2010

  21. Total Sales Revenues* (TL) * Ignores other sales & discounts. December 2010

  22. Main Determinant; LME Price December 2010

  23. Average Product Price December 2010

  24. COGS, as of YE09 December 2010

  25. Per Unit Cash Costs For Con. Copper (TL/dmt) December 2010

  26. Net Earnings (TL mn) December 2010

  27. Margins December 2010

  28. Sales, EBITDA (TL mn) & EBITDA Margin December 2010

  29. Margins December 2010

  30. Sources of Financing (TL mn) December 2010

  31. Working Capital (TL) December 2010

  32. VI. Evaluation of 3Q10 Financial Results December 2010

  33. Evaluation of 3Q10 Results • Despite no copper concentrate sales due to strike in copper zone in the third quarter, the company’s sales and margins did not deteriorate thanks to higher copper prices throughout the year 2010, compared to same period of last year. • Due to the strike in the copper concentrate facility, the Company suffered operational loss in 3Q. • Although no copper concentrate sales was made in 3Q10, total sales revenues reflected only 17% decrease, y-o-y, in 3Q10 thanks to the higher copper prices and increased asphaltite sales. • Asphaltite sales also reflected a record rise due to base term effect. Recall that the company had initiated its asphaltite sales in June 2009. • Benefiting from higher copper prices, the company’s margins also increased despite lower copper sales. • The company also benefited from financial income on its interest bearing huge cash lent to parent Park Holding A.S. • The company recorded TL18.6mn of net income in9M10, with a strong 67% increase, y-o-y. December 2010

  34. 9M09 9M10 % Concentrated Copper (dmt) 46,358 16,980 -63% Asphaltite (ton) 136,856 347,822 154% 1H09 1H10 % Concentrated Copper (dmt) 31,600 16,980 -46% Asphaltite (ton) 46,245 217,593 371% Sales Amount December 2010

  35. Sales Breakdown (TL) & Gross Margin by Products December 2010

  36. Income Statement (TL) December 2010

  37. Margins December 2010

  38. Summary Balance Sheets (TL) December 2010

  39. VII. Recent Developments December 2010

  40. Recent Developments, Corporate Governance Rating • Park Elektrik was rated with 8.65 as a result of the Corporate Governance study done by SAHA Kurumsal Rating Agency. According to report done by SAHA, the rating means that the company performs very good in terms of Capital Markets Board’s corporate governance principles. It has, to varying degrees, identified and actively managed all significant corporate governance risks through comprehensive internal controls and management systems. The company’s performance is considered to represent best practice, and it had no deficiencies in any of the areas rated. December 2010

  41. Recent Developments, Strike • On May 15, Park Elektrik’s copper production was halted temporarily following the dispute between the Workers’ Union in Siirt Copper Mine and the company over salary increase issues. • The production started again on September 15th, following the agreement with the Workers Union and the company. • However, the company’s 3Q10 financial results have not reflected tremendous revenue decrease thanks to higher product prices and also due to higher asphaltite revenues. December 2010

  42. VIII. Future Prospects December 2010

  43. Future Prospects • In the very near future, Park Elektrik is going to start construction of itsHPP. The company will call for a tender for the construction of the HPP in the coming months. It is estimated that HPP will become operational by the end of 2013 or in 2014, at the latest. • Being cash rich, Park Elektrik looks for new investment opportunities. Electricity production tenders which are expected to be opened in 2011, are among the target areas of the company. • The company continues its exploratory drilling in this copper rich area, targeting to increase its proven copper reserves above its initial level of 13.6 mn tons up until the probable reserves of 23 mn tons level. These studies are estimated to increase Park Elektrik’s life period considerably. The company also aims to increase its tenor rate through these drillings. • As Silopi Elektrik’s capacity will be tripled by 2014, at the latest, Park Elektrik’s asphaltite sales will be also tripled after 2014 which means our production volume will increase to 1.2-1.3 mn tons. December 2010

  44. IX.Market Data December 2010

  45. Market Data December 2010

  46. T H A N K Y O U. Please e-mail us at investor.relations@cinergroup.com.trfor any additional questions you might have. You can also visit our company’s web site www.parkelektrik.com.tr and Ciner Group’s web site www.cinergroup.com.tr . December 2010

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