Aydınevler Mahallesi No:20 Küçükyalı Ofis Park Maltepe, İstanbulTel:0850 229 78 00 Fax: 0216 376 58 53
www.globaltower.com.tr
Global Tower is the first and onlystandalone towerco in Turkey
and one of the largest standalonetowerco in Europe
GLOBAL TOWER AT A GLANCE
Established in 2006 as 100% subsidiary of Turkcell as
Pioneer of infrastructure sharing
Serves not only MNOs, but also broadcasters, ISPs, energy
& public institutions
In 2008, our subsidiary UkrTower has become Ukraine’s
sole independent towerco
In 2016, our subsidiary BelTower was established as
Belarus’s sole independent towerco
With its more than 10.000 unique portfolio of sites in
Turkey, Ukraine, Belarus and Turkish Republic of Northern
Cyprus, Global Tower became a regional player
1
2.376TURKEYManaged Sites
3.471TURKEYFully Owned
2.220TURKEYContractManagement
1.187UKRAINEFully Owned
830BELARUSRight of Use/ Sublease115
Turkish Republic ofNorthern CYPRUSRight of Use
SCOPE FOR EXPANSION BOTH IN AND OUT OF EXISTING MARKETS GLOBAL TOWER BUSINESS MODEL
2 3
1st in Turkey Tower Co
5th in Europe Tower Co
15th in Global Tower Co
With its more than 10.000 uniqueportfolio of sites in four countries
TURKEY
TURKISH REPUBLIC OF NORTHERN
CYPRUS
UKRAINE
BELARUS
Core Business
Buy&Lease Back
Built to Suite
Colocation
Contract Management
Passive & Active Maintenance
Energy Solutions
Site Search & Acquisition
Site Inspection & Monitoring
Additional Services
• Ground lease contract management services to MNOs
Services
TowerRental
Description
Build andSale
of Towers
ContractManagement
MaintenanceServices
Other
• MNOs, ISPs, Radio&TV broadcasters, administrative bodies & ISPs
• Only standalone licensed tower operator in Turkey and Ukraine
• Largest contributor to Global Tower’s revenues
• Tower infrastructure to MNOs, service integrators and technology service providers
• Site search & acquisition
• Technical & administrative services to launch new sites on a turn-key basis
• Maintenance services for MNOs, broadcasters periodically
• Tower dismantling services to MNOs for the towers in its portfolio
• Supply of active equipment for Radio&TV broadcasters
• Supply of energy infrastructure systems for the MNOs
• Tower inspection & reinforcement
En
gin
eeri
ng
Ser
vice
sWHAT WE OFFER? OUR PORTFOLIO BY PRODUCT TYPE
4 5
Tower Portfolio Consisting Purely of Greenfield Sites
Lattice Towers Monopole Towers Totem Towers Mobile Towers Wind Towers
HeightBetween 10 and
100 meters, with an average height of
52 metres
Antenna Capacity Between 5m2 and
35m2
HeightBetween 6 and 42
meters, with an average height of
28 metres
Antenna Capacity Between 3m2 and
25m2
HeightBetween 10 and 42
meters, with an average height of
20 metres
Antenna Capacity Between 3m2 and
25m2
HeightBetween 6 and 36
meters, with an average height of
25 metres
Antenna Capacity Between 2m2 and
6m2
HeightDeveloped as free standing towers,
carrying measuring instruments and meteorological
instruments
Innovative ProductsCamouflage Products
Clock Towers Flag PostTowers
Palm TreeTowers Totem Towers
Telescopic Tower Atlas Tower Composite Tower
Res Tower Water Based Tower
Atlas & Spinning Wheel Tower with Safety Catch MultiRoom Shelter
Portable Cat Walkaway
TOWER INFRASTRUCTURE ELEMENTS ATTRACTIVE MACROECONOMIC FUNDAMENTALS AND DEMOGRAPHICS
6 7
Infrastructure Components Ownership
Component
Tower
Anten Apparatus
Antenna
Generator
Concrete Area
Shelter Room
Energy Line
Feeder Cable
Global Tower Customer
1
2
3
4
5
6
GE TR GB FR IT ES RO BE GR CZ HU SE
82 79
64 6460
46
2011 11 11 10 10S
eco
nd
Lar
ges
tP
op
ula
tio
n in
Eu
rop
e
Population 2016A (m)
Turkey Romania Serbia Hungary Spain Germany France Austria ItalyCzechRepublic
UnitedKingdom
3.8% 3.7%3.4%
2.3% 2.3% 2.2%
1.4% 1.3% 1.3%
0.9%
0.4%On
e o
f th
e m
ost
Fas
test
GD
P G
row
ths
in E
uro
pe
Average Real GDP Growth 16E-19E
Pre
do
min
antl
y Y
ou
ng
<25 years 25-50 years >50 years
27%
34% 39% 38% 36%
26%
37%21%
42%
Turkey WE CEE
Un
der
pin
nin
g A
ttre
ctiv
enes
s o
fG
lob
al T
ow
er’s
Co
re M
ark
et
GDP per Capita (Thousands of US$ at PPP)
20,617,3
11,06,1
55,8
35,9 34,5
Turkey Mexico Indonesia India US Italy Spain
Sources: Euromonitor, EIU, CIA World Factbook, Geohive.
(%, 2016A)
1
2
3
4
5
6
9
SIZABLE AND ATTRACTIVE TELECOM MARKET: EXPANDING SUBSCRIBER BASE INCREASING USAGESIZABLE AND ATTRACTIVE TELECOM MARKET:
8
Turkey Average WE Average CEE(2) (3)
74
34
24
Larg
e S
ub
scri
ber
Bas
e(1
)
Turkey Average WE Average CEE(2) (3)
5.0
2.8
1.2
Exp
ecte
d t
o G
row
at
a fa
st P
ace
As
Mo
bil
e M
ark
et is
Su
bst
anti
ally
Un
der
pen
etra
ted
78%86%
94%109%
125%134% 138%
131% 136%
India Mexico Spain USA Indonesia Italy Total WE Total CEETurkey
Low penetrationwith no competing
TowerCo
(2) (3)
Mobile Penetration (as % Population, FY16A)
Mobile Subscribers (2016A, m) Total Subscribers Net Adds (2016A-2019E,m)
Pro
life
rati
on
of
Ad
van
ced
Mo
bil
e D
evic
es...
Average Data Usage per Device (2016A, MB/Month Data Consumption)
311.500
2.700
5.800
x50
x90
x190
FeaturePhone
SmartPhone Tablet LapTop
...to
Bo
ost
Mo
bil
e D
ata
Tra
�c.
..
(GB/Month per Sub)
2013A 2016A 2020E
0,5 x2,4
X5,51,3
7,1
7,27,7
1,9
(%0,1)
%1,0
16E-19E CAGR
%3,7
...ar
e E
xpec
ted
to
Tra
nsl
ate
into
Su
stai
nab
le M
ob
ile
Rev
enu
e G
row
th (GB/Month per Sub)
Turkey WE CEE(2) (3)
330399
560
... w
hic
h C
ou
ple
d w
ith
Incr
easi
ng
Mo
bil
e V
oic
e T
ra�
c...
(Minutes of Use/Month))
2013A 2016A 202E
+20%
+40%
20.0
20.0
35.0
40.0
24.8
20.0
20.0
70.0
30.0
35.0
20.0
24.8
59.6
70.0
60.0
11
TURKEY: LTE SPECTRUM AUCTION COMPLETED IN 2015 TURKEY’S TELECOM NETWORK DESIGN REQUIRES HIGHER DENSIFICATION
10
Limited bandwidth in a key frequency providing capacity (1800MHz) results in high demand for tower
space to meet the expected surge in data tra�c2600 MHz 4.5G capacity boost layer for hot spots
Main layer for 4.5G Terminal support,capacity and coverage layer
2G/3G coverage and voice layer
4.5G main coverage layer
Mobile broadband layer for 3G 4.5G usage for mid/long-term
2100 MHz
1800 MHz
900 MHz
800 MHz
Cap
acit
yC
apac
ity
Co
vera
ge
Co
vera
ge
Traditional Network Design(Voice + Some Data)
• Traditional network topology designed to ensure high quality voice services
• Unable to adequally handle exponential growth in the demand for tra�c
Densified Network Design(High Data Tra�c)
• Higher network density required, especially in urban areas
- Smartphone penetration leading to growth of data hungry applications
- Anticipated VoLTE (Voice over LTE) adoption
Network densification on the back of limited availability of
spectrum
Regulatory framework enforcing passive
infrastructure sharing
Expected to boost increase in colocation
13
COVERAGE OBLIGATIONS TO RESULT IN A HIGHER DEMAND PER TOWER SPACE PREMIER ESTABLISHED TELECOM INFRASTRUCTURE OPERATOR
12
Licensing Date
>50% ofCountry
Population
>90% ofCountry
Population2G
Implication
3G
LTE
1998 2001
3 Years 2 Years
2003
3 Years 3 Years 2 Years 2 Years
Licensing Date
MetropolitanMunicipalities
(~77% ofPopulation)
AllProvince/
DistrictMunicipalities
(~93% ofPopulation)
2009 2012 2015
Rural Areaswith >5k
Population
2017
Rural Areaswith >1k
Population
2019
• No residual obligation
• Coverage not a competitive advantage
• Opportunity for POP consolidation
• Rural/low density coverage remain as part of obligation
• Opportunity for tower business
• Rollout starting from higher density zones
• Small cell/DAS opportunities for indoor coverage
• Infrastructure coverage requirement necessitating POP deployment
3 Years 3 Years 2 Years 2 Years
Licensing Date
99% ofHighways,Tunnels,
High SpeedRailroads
95% ofAll Double
Roads
2016 2019 2022
90% of AllConven-tional
Railroads
2024
95% of Country Population,>90% of All Province/Districts95% of Country Population,
>90% of All Province/Districts
Areas Coveredwith LTE areRegarded asCovered with
3G
15th Largest Standalone Global TowerCo(No. of towers)
5th Largest Standalone Tower Operator in Europe(No. of towers)
Largest and Only Standalone Tower Operator in Turkey(No. of towers)
144.000
40.000
29.432
25.670
23.493
16.776
16.450
15.135
14.737
12.874
12.138
11.519
11.154
10.550
10.140
8.400
7.770
7.070
6.966
6.556
15th Largest TowerCo Globally
DiF
15.135
13.893
11.519
10.550
10.140
6.966
2.618
15th Largest TowerCo Globally
Owned Towers Managed with right to sub-lease
Managed without the right to sub-lease
6.000
7.994
5.500
1.300
3.393 2.388 2.213
15
FINANCIAL OUTLOOK: FINANCIAL OUTLOOK:
14
(1)KEY INDICATORS CASH FLOW CONVERSION
Cash Flow Conversion 2016(EBITDA - CAPEX )/ EBITDA
91.7%
61.3%
79.7% 80.5%
96.6% 97.0%
23.1%
37.2%
55.4%
62.9%
81.1%
Developed Markets Emerging Markets
REVENUEGROWTH 32%
41% 52%
18% 22%
Zero debt & unleveraged balance sheet
Global Tower has dividend distribution policy with 75% payout ratio
11%
ADJ. EBITDAMARGIN(*)
NET INCOMEMARGIN
BALANCESHEET
2015 2016
Rev
enu
es T
L/m
n
Rental Non-Rental
2015 2016
251
50
331
201
56
275
Rev
enu
es T
L/m
n
Turkey Ukraine
92%
8%
17
GLOBAL TOWER’S STRATEGY TO FOCUS ON VALUE MAXIMISATION GLOBAL TOWER OFFERS COMPELLING BENEFITS TO ITS CUSTOMERS
16
Global Tower Provides a Fully Outsourced Infrastructure Solution for Wireless Operators
1 Tenant
% of Approximate Site Capex
ActiveEquipment
PassiveEquipment
Multiple Tenants
Compelling TowerCo Model Benefits Global Tower’s Customer
Reduced Capex
Focused on ImprovingProfitability and
Cash Flow Conversion
Increasing Tenancy & Land ownership M&ANetwork Expansion and
managed-to-owned conversion
Continued OrganicExpansion of theTower Portfolio
Selective and DisciplinedInorganic Growth
Outsourcing of Non-core Operations
Short Time to Market
Increased E�ciency
Highly experienced management team with strong industry know how,
Regional leader in the tower infrastructure sector with vision to become a global company
Strong cash flow generation capacity to support targeted growth and shareholder value maximization
Colocation provides significant reductions in capital costs to MNOs
Allows MNOs to focus on their main activities
Flexibility for MNOs to expand / increase capacity in a short time frame
Dedicated operator able to maintain sites
1/3
2/3Outsourced to TowerCo
1 2 3
19
INCREASE IN COLOCATION: OUR COMPETITIVE ADVANTAGE
18
TANGIBLE ECONOMIC BENEFITS
Growing Industry
Strong Financials
Visibility
Growing & profitable sector
Sizeable and attractive telecom market
Further growth in mobile data and coverage obligations
Increasing coverage, particularly for LTE, as well as usage of higher frequencies, which drive the requirement of additional POPs, are expected to create an additional POP demand of around 3k by 2025
Higher network density required, not only in urban areas but also in less populated zones
Gradual decrease of POP reutilisation expected to lead to higher POP requirement
Formation of standalone Tower Co. to accelerate the proportion of passive infrastructure sharing
Global Tower to benefit from increasing demand for tower space given size and premium location of tower assets
Solid cash flow generation; cash flow conversion close to 1
High operating leverage; EBITDA margin above 50%
Attractive dividend policy; 75% dividend payout ratio
Unleveraged balance sheet with zero debt
High revenue visibility &long-term contractual relations
Strong & credible customers with secured revenue growth
Significant Expected Demand for Tower Space… … Mainly Satisfied by Collocation on Existing TowersComparison of Collocation vs. Build-to-Suit
2G
UpfrontInvestment TRY 77 - TRY 119K
TRY 19K c. TRY 12K
2 Weeks 2-3 Months
In Place
All EquipmentOperational
Immediately at SLA
Equipment Needs to bePurchased
Ramp-up Period toReach SLA
To be Obtained
(1)-
AnnualOpex
Time toLive Status
Permits
PowerManagement
Qualityof Services
Collocation Build-to-Suit
Sources: Arthur D. Little Turkish Tower Report and Market Model, Company information. Notes: (1) Range for material and installation costs of Global Tower assets (including lattice, monopole, totem and mobile towers; excluding ecotowers).
EXPERIENCED TOP MANAGEMENT TEAM
20
CEO of Global Tower since 2016
MBA from Middlesex University
Commenced work at Ata Invest as a telecom analyst in 1996
Joined Turkcell in 2000 as a Senior Specialist at the Investor Relations division until 2004
Investor Relations and M&A Director from 2009-2016
CFO of Global Tower since 2016
Joined Turkcell in 2013 as the Financial Advisor to the chairman and the board of directors
Started working at Pricewaterhouse Coopers’s assurance department in 2006., incl. 1 year in the US
Certified public accountant and licensed independent auditor in Turkey
Chief Strategy and Investor Relations O�cer of Global Tower since 2016
Served as Vice President at the UK and Northern Ireland Representative of the Turkish Prime Ministry‘s Investment Support and Promotion Agency.
Served as the Board Member of Ari Teknokent at Istanbul Technical University between 2012 and 2015
Telco Services Sales Director of Global Tower as of August 2016
Joined Global Tower in 2013 as Telco Services Sales Manager
Radio Network and Site Acquisition Manager of Turkcell between 2008-2013
Joined Turkcell’s Radio Network and Site Acquisition unit in 2006
Non-Telco Services Sales and Business Development Director of Global Tower since 2016
Non-Telco Services Sales Manager from 2012 to 2016
Joined Global Tower in 2007 and served as Turkey Site Acquisition and Business Development Manager as well as UkrTower Manager till 2012
Held several managerial positions at Turkcell between 2000-2007
Nihat NARİNCEO
Hıfzullah ÖZKAYACFO
Dr. Hüseyin AslanChief Strategy &
Investor Relations O�cer
Barış ENGİNTelco Services Director
Murat KURANNon Telco Services &
Business Development Director