Tüpras'ın iç ve dış cevre faktör analizleri , finansal durum değerlendirmesi .

2. 
STRATEGIC MANAGEMENT
TERM ASSIGNMENT
Ela Pazvant
110201028
Servet Halenur Karışık
130201068
Nisa Küçük
110201041

3. 
 Tüpraş’s History
 Informatıon About Tüpraş
 External Environment Scanning
 Task Environment Scanning
 Internal Environment Analysis
 Financial Information
CONTENTS

4.  The roots of Tüpraş dates back to İPRAŞ (İstanbul
Petrol Rafinerisi A.Ş.) founded by the U.S. Caltex
Company. In 1983, İPRAŞ and three other publicly
owned refineries were brought under the Tüpraş
umbrella by arrangements made for a more effective
operation of State Economic Enterprises.
 Operating four oil refineries, with a total of 28.1
million tons annual crude oil processing capacity
 Tüpraş is Turkey’s largest industrial enterprise.
 A majority stake ( 79,98 %) in shipping company
DİTAŞ and 40% share ownership of petrol retailer
Opet, creates synergies and adds value to the
operations.
ABOUT TÜPRAŞ

5.  July 10, 1990 was a turning point in the history of Tüpraş, which had served for
many years as a state economic enterprise, when it was handed over to the
Privatization Administration.
 The Initial Public Offering was carried out in 1991 within the framework of the
privatization plan whereby Class A shares corresponding to 2.5% of Tüpraş'
equity were offered to the public.
 By the end of 1999, approximately 3.58% of Tüpraş shares were traded on the
İstanbul Stock Exchange.
 In April 2000, the secondary offering of Tüpraş was completed and the ratio of
Class a shares traded on the İstanbul and London Stock Exchanges to total
equity reached 34.24%.
 Tüpraş shares totaling 14.76% were sold to international buyers on the ISE
Wholesale Market on March 4, 2005. As a result, 49% of Tüpraş shares are now
publicly traded.During 2005, events that held vital importance for the future of
Tüpraş took place. The auction on September 12, 2005 by the Privatization
Administration for the block sale of 51% of state-owned Tüpraş’s shares was
granted to the Koç-Shell Joint Venture Group at a value of US$ 4.14 billion.
Resolution No: 2005/1128 of the Supreme Board of Privatization on November
7, 2005 approved the result of the auction. Accordingly, a Share Purchase
Agreement was signed with Koç Holding on January 26, 2006, endorsing the
actual transfer of the shares.
A PROCESS ADDING VALUE TO THE
COMPANY AND THE INDUSTRY

6. 
TÜPRAŞ
MISSION
 To guide the sector
through accomplished
innovation, and to
supply the nation’s
petroleum products
need.
VISION
 To be leader in
Turkey’s petroleum
sector
 To be a company
admired for its
performance
 To be company in the
world standards of
petroleum sector

7. 
BOARD OF DIRECTORS OF
TÜPRAŞ

8. 
SHAREHOLDERS OF TÜPRAŞ

9. 
SOME PRODUCTS OF TÜPRAŞ
 LPG
 DIESEL FUEL
 HEATING OIL
 FUEL OIL
 MARINE DIESEL (DMA)
 HEAVY NEUTRAL BASE OIL
 LIGHT NEUTRAL BASE OIL
 SPINDLE EXTRACT
 SULPHUR

10. 
 The target is to Tüpraş’s maximum potential through
increasing efficiency in all areas and decreasing costs
to the minimum level while taking operational
excellence to the ultimate level.
 Tüpraş’s strategy is to provide customer satisfaction
at the ultimate level and to lead the sector with
innovative practices while meeting the need for
petroleum products in the country
 Tüpraş aims to be positively differentiated from the
sector in the process of decreasing its costs and in the
operational level of development
STRATEGIES OF TÜPRAŞ

11. 
 The primary way that politics can affect oil is in the regulatory
sense. Political risk generally increases when oil and gas companies
are working on deposits abroad.
 Oil and gas companies tend to prefer countries with stable political
systems and a history of granting and enforcing long-term leases.
However, some companies simply go where the oil and gas is, even if
a particular country doesn't quite match their preferences. Numerous
issues may arise from this, including sudden nationalization and/or
shifting political winds that change the regulatory environment.
Depending on what country the oil is being extracted from, the deal a
company starts with is not always the deal it ends up with, as the
government may change its mind after the capital is invested, in order
to take more profit for itself.

EXTERNAL
ENVIRONMENT
Political Environment

12. 
 Supply and Demand Conditions
 Political Factors
 Financial Instruments and Speculation
 Crisis
 U.S. Dollars Value against Other Currencies
 Economic Growth
 R&D, Costs of Refinery and Investments Sectoral
 Efficiency of Energy
Economic Environment

13. 
Technological developments can ensure these in energy
sector
 Safety and the environment
 Exploiting changing markets and demand
 Competitive forces
 Increasing the efficiency of energy use and energy
products.
Technological advances affect all sectors of the
energy market and all other regions in the world.
Technological Factors

14. 
 Environment practices is determined and controlled
the risks in advance. For this purpose, the risks are
defined in the refineries, ensuring that result-
oriented and permanent preventive measures are
taken.
 Environmental risk such as emissions, noise, wastes,
soil and water pollution, solid wastes, and sea
pollution within the context of national and
international standards to mitigate the effects of
these risks on human-being and environment which
is important.
ENVIRONMENTAL FORCES

15.  Danger safety:Technical safety is at all times given
particular importance at Tüpraş, in order to minimize the
effects of danger risks such as fire, power/water cuts,
occupational accidents, earthquake, flood, terrorism and
sabotage
 Financial:Efforts are made to ensure that the effects of
financial risks that may arise out of the variations and
uncertainties in financial markets are minimized. These
include currency, liquidity and interest risks.
 Commercial:The most important commercial risk in the
oil industry in which the crude oil prices and thus the
prices of products are set in the international market is the
rapid change in prices. Tüpraş’s prices are based on the
price levels and foreign exchange rates
TÜPRAŞ’S PRIMARY RISKS

16. 
 Operational Risk: Occupational Safety and Health/
Environment, Supply/Transportation, Product
Feature, Information Technology.
 Strategic Risks:Most strategic risks, which Tüpraş
may be exposed to, are composed of international
trends influencing political, legal and customer
preferences.

17. 
Petkim
Socar
Star Rafinery
Technicas Reunidas
Turcas Petrolium C.O.
COMPETITORS IN TURKEY

18. 
 PETKIM: Petkim Petrokimya Holding A.Ş. was
established on April 3, 1965 under the leadership of
TPAO, following the studies and evaluations
performed. Petkim produces high quality
petrochemical products in its integrated and high
technology premises and it imports high quality
petrochemical products, compatible with
international standards. Petkim sells its products in
domestic market and in international opportunity
markets with a strong customer focus.
COMPETITORS IN TURKEY

19. 
 Technicas Reunidas:TR's origins date back to 1960, when
Lummus Española, S.A. was formed as a result of the
association of various Spanish businessmen and the North
American engineering company The Lummus Company……
 Turcas Petrol: Türkpetrol and Lubricants Limited, founded in
1931 as Turkey’s first privately owned fuel distribution
company, became a joint stock company in 1936, and teamed
up with British Burmah Castrol in 1988 to establish Turcas
Petroleum. The name “Turcas” came about by combining the
first three letters of Türkpetrol and Castrol. Turcas is one of the
rare integrated energy companies in Turkey that operates in the
fields of oil and energy, power investments, renewable energy
(with a focus on geothermal and wind), fuel retail and
lubricants distribution, natural gas projects, power generation
& trading.
COMPETITORS IN TURKEY

20. 
 SOCAR:SOCAR Turkey Enerji A.Ş. is the most important
representative of the ever-reinforcing economic collaboration
between Azerbaijan and Turkey. Being one of the most
powerful global oil companies, State Oil Company of
Azerbaijan – SOCAR has been carrying out its activities in
Turkey under the name of SOCAR Turkey Enerji A.S. since
December 12th, 2011.
 STAR REFINERY: Star Refinery is established on October 25th,
2011. Billions of dollars of foreign currency saving in goods
provided by import.High Nelson complexity rate.Flexible to
process different crude oil from Ural, Azerbaijan and Kirkuk.
COMPETITORS IN TURKEY

21. 
THE WORLD FIVE BIGGEST
OIL COMPANY

22. 
 1.Saudi Aramco: 12.5 million barrels per day Saudi
Aramco is by far the biggest energy company in the
world, generating more than $1 billion a day in revenues
 2.Gazprom: 9.7 million barrels per day Russia's Gazprom
is the world's largest producer of natural gas
 3.National Iranian Oil: 6.4 million barrels per day Iran has
been forced to curtail oil production due to international
sanctions, but remains a huge oil and gas producer
 4.ExxonMobil: 5.3 million barrels per day Exxon's $40
billion in annual profits don't seem like a lot when you
consider their $400 billion in sales
 5.PetroChina: 4.4 million barrels per day The largest of
China's three state-controlled oil giants.

23.  Competence-Based Hiring and Placing: In keeping with the
TÜPRAŞ vision and mission, besides the common values we
expect every employee to adopt, certain competencies that are
determined in terms of our corporate culture and in view of our
vacant positions are evaluated during the hiring process.
 Salary Administration : TÜPRAŞ implements an evaluation
system based on content-based job assessment that is
independent of title and function
 Performance Management: The aim of the performance
management system used in the Group as a whole is to
acknowledge excellent performance, evaluating and guiding
this performance objectively in the light of common principles
 Training: Our Company places great importance on personnel
training, providing the necessary professional knowledge and
skills and the means to develop personal talents
Human Resources Policy

24. 
 Tüpraş focuses on projects in education, culture, arts
and environment to create long-lasting values and
transfers its social awareness to coming generations.
Tüpraş also contributes to the similar activities of
other institutions and agencies via donations and
sponsorships.
SOCIAL RESPONSIBILITIES

25. During the year, Tüpraş purchased 18 different types of crude oil from 11
countries, with gravities ranging between 19-46 API. The Company’s total import
costs reached US$ 14.4 billion, with US$ 12.1 billion spent on 17.9 million tons of
crude oil and the remaining US$ 2.3 billion on finished and semi-finished
products. Tüpraş assumed a flexible approach by importing 1.23 million tons of
semi-finished goods to be processed in order to cover domestic production gaps
and meet seasonal demand peaks. Tüpraş imported 882 thousand tons of high-
sulphur diesel, 532 thousand tons of diesel, 274 thousand tons of jet fuel, 692
thousand tons of low-sulphur fuel oil, 253 thousand tons of HVGO, 80 thousand
tons of MTBE, 183 thousand tons of LCGO, and 24 thousand tons of naphtha.
Tüpraş utilizes the excess capacity in its units, lowers the sulphur content of
imported high-sulphur diesel down to EU standards, and produces higher quality
10 ppm diesel with lessened environmental impact. Because of decreasing import
margin due to the global capacity increase, Tüpraş lowered the amount imported
semi-finished product. The Company imported 882 thousand tons of high-
sulphur diesels in 2014 while the refineries reduced the sulphur content to 10
ppm and generated additional EBITDA.
SALES (EXPORTS AND IMPORTS)

26. 
 to provide employees that work in the name of
company a healthy and safe workplace, work safety,
 to monitor technological developments and supplier’s
performances closely,
 to keep customer satisfaction at utmost level.
 to prevent environmental pollution
 to abide by the local and international regulations and
measures as published for environment, occupational
health and safety; to minimize the hazards and risks
exposed by the individuals working in the name of
company, visitors and neighbours due to the
operations in Tüpraş,
QUALITY

27. 
 Tüpraş is aware of the fact that being able to keep up with
the rising global competition will only be possible by
rapidly adapting to changing market conditions. Within
this scope, the primary target is to improve product
efficiency and to increase competition power by ensuring
a permanent enhancement in the cost structure..
 Being aware of the fact that the global competition
conditions will rise even more particularly in the Middle
East and Asia, Tüpraş will ensure the sustainability of its
customer oriented sales strategy by improving its
customer oriented sales strategy even more in 2013 and
by improving its cost structure through operational
excellence
MARKETING STRATEGY

28. 
 Structuring its production by taking the domestic
market’s demand structure into account at the
highest level,
 Tüpraş aims to increase its competitive power in the
domestic market through its existing infrastructure
and customer relations while it aims to increase its
market share in the imported products besides
production. Furthermore, with the aim of using
export as a cost decreasing component in periods
when the price dynamics in the international
markets make it possible,.
PRODUCTION

29. 
TÜPRAŞ’S REFINERIES
İZMİT
REFINERY
İZMİR
REFINERY
KIRIKKALE
REFINERY
BATMAN
REFINERY
Processing
Capacity
11,0 Mn
Ton/year
Processing
Capacity
11,0 Mn
Ton/year
Processing
Capacity
5,0 Mn
Ton/year
Processing
Capacity
1,1 Mn
Ton/year
Nelson Compl
exity
7,78
Nelson Compl
exity
7,66
Nelson Compl
exity
6,32
Nelson Compl
exity
1,83
Storage
Capacity
2,91 mn m3
Storage
Capacity
2,42 mn m3
Storage
Capacity
1,38 mn m3
Storage
Capacity
253 bin m3

30. 
 Tüpraş purposes to improve its production and product quality
to the best available technologies level while undertaking
activities in the global competitive environment in order to
make difference against its competitors. In this context, Tüpraş
plans and operates R&D activities and protects the outputs of
these activities by its intellectual and industrial property rights
policies in order to create and adapt the future technologies. For
this purpose, R & D Center was established within the
framework of Law No. 5746 on August 2, 2010.
 Tüpraş aims at contributing to our country and the energy
sector in each project which is conducted in the areas specified
in the Tüpraş Technology Roadmap. The projects are produced
according to the technology roadmap objectives while
considering the benefits for the IT structure and its personnel.
R&D TECHNOLOGY
INNOVATIONS

31. 
FINANCIAL BRIEF

32. 
 CURRENT RATIO: is calculated by dividing current
assets by current liabilities
FINANCIAL INFORMATION
2014 2013 2012 2011 2010
0.82 0.94 1.13 1.08 1.05

33. 
 QUICK RATIO:A liquidity ratio calculated as (cash plus
short-term marketable investments plus receivables)
divided by current liabilities.
FINANCIAL INFORMATION
2014 2013 2012 2011 2010
0.54 0.60 0.74 0.064 0.82

34. 
NET WORKING CAPITAL: formula is calculated by
subtracting the current liabilities from the current
assets.(NWC= Current Assets - Current Liabilities)
FINANCIAL INFORMATION
2014 2013 2012 2011 2010
-1.57 -0.63 1.17 0.68 0.44

35. 
 CASH RATIO:A liquidity ratio calculated as (cash and
cash equivalent divided by current liabilities.
FINANCIAL INFORMATION
2014 2013 2012 2011 2010
0.45 0.35 0.39 0.15 0.67