Our Value Generation Model

We Strive to Generate Value

We provide continuous energy to our country while maintaining strong momentum in our operational and financial results, and we strive to generate sustainable value for our stakeholders and our economy.

We acknowledge our responsibility regarding our economic, social, and environmental impact areas. We use resources efficiently in all processes. We invest in the energy of the future and develop environmentally friendly production methods in line with our sustainability approach, making use of the resources we create in boosting the competitiveness and profitability of our current assets.

Tüpraş Value Generation Model

2024 Integrated Annual Report

Creating Value With the Business Model

FINANCIAL CAPITAL

HUMAN CAPITAL

MANUFACTURED CAPITAL

INTELLECTUAL CAPITAL

SOCIAL AND RELATIONAL CAPITAL

NATURAL CAPITAL

MATERIAL ISSUES

Operational
Excellence
Corporate
Governance
Stakeholder
Management
Fighting Climate
Change
Energy Transition

INPUTS

Total equity of TL 286,247 million
Total assets of TL 454,127 million
54,546 million TL net debt
USD 376 million in consolidated CapEx
EUR 29.2 million for Entek Romania Solar Power Plant acquisition
USD 17.7 million in consolidated CapEx for zerocarbon electricity
Integrated risk management approach

OUTPUTS

TL 810.4 billion net sales
TL 51.3 billion EBITDA
TL 18.3 billion net profit (equity holders of the parent)
6.5% return on equity
TL 316 billion in tax and similar liability payments
TL 144 billion export revenue
TL 43 billion dividend
9.72 Corporate Governance Rating
Türkiye Green Taxonomy and EU Taxonomy Reporting
Europe’s 7th largest and the world’s 36th largest refinery company

VALUE CREATED

Sustainable economic growth
Increased confidence among shareholders and investors
Direct and indirect contribution to the country’s economy

ASSOCIATED RISKS

Financial Risk
Strategic Risk
Commercial Risk
Climate-Related Risks

ASSOCIATED SDG

Direct

Endirect

VALUE FOR STAKEHOLDERS

Business partners
Suppliers
Customers
Employees
Financial Institutions
Subsidiaries and Associates
Public institutions and agencies
Shareholders and Investors
Labor Unions

MATERIAL ISSUES

Healthy and Safe Workplace
Process Safety
Talent Management
Diversity, Equity and Inclusion

INPUTS

Diverse, equal, inclusive, safe workplace culture and supportive policies
Skilled workforce of 6,062 ✅ employees
7.6 years of average work experience
812 ✅ newly-hired employees
TL 113.4 million ✅ in training expenditures
TL 17.3 billion - Payments made to employees
Fair and performance-based reward systems

OUTPUTS

356,854 hours of total training
Average 59 hours ✅ of training per employee
12% female employee rate
26% ✅ ratio of middle-level female managers
16% ✅ employee turnover rate
84% ✅ employee engagement survey participation rate and 51% ✅ employee engagement rate
1,874 number of employees subjected to regular performance and career development evaluations
122 open positions filled with internal candidates
495,489 person*hours ✅ of total OHS training
119 ✅ Number of notifications to Ethic Line, 87% resolved
0.16 LTI ✅ frequency, 5.06 LTI ✅ intensity (Unconsolidated Tüpraş)

VALUE CREATED

Happy employees with a healthy and safe working environment
Career and talent development
Employee retention and high employee loyalty
Mental and physical health of employees
Inclusive and equitable work environment

ASSOCIATED RISKS

Operational Risk
Technical Safety and Environmental Risk
Strategic Risk
Reputation Risk
Compliance and Legal Risk

ASSOCIATED SDG

Direct

Endirect

VALUE FOR STAKEHOLDERS

Employees
Business partners
Subsidiaries and Associates

MATERIAL ISSUES

Operational Excellence
Fighting Climate Change
Energy Transition

INPUTS

4 refineries (30 million tonnes of crude oil processing capacity)
15 million m2 refining production facility
8 hydro-electric power plants, 2 wind power plants and 3 Solar Power Plants
416.6 MW ✅ (Zero Carbon Electricity) Installed Power Capacity
Advanced logistics and distribution network
16 tankers (661,787 DWT), 12 tugs, 6 mooring vessels, 1 service craft vessels, 2 agency vessels, 1 pilot vessel, 1 solid waste vessel
14 locomotives (9 hybrids), 551 fuel oil and platform wagons
5 storage terminals (1.1 million m3)
1,882 stations

OUTPUTS

Production of 26.7 million tonnes ✅ of petroleum products
Sales of 30.4 million tonnes ✅ of petroleum products
Production of 1,295 GWh ✅ zero carbon electricity
51% total share in the Turkish fuel products market
70% of Türkiye’s refining capacity
10.5 million tons of crude oil and 6.9 million tons of oil products (by sea transportation)
2.2 million tons of fuel products and intermediate products, 20 thousand tons of iron ore (by rail transportation)
4.7 million tons of product trade, 6.6 million tons of spot crude oil trade and 1.4 million tons of third party transactions.
95.1 availability rate

VALUE CREATED

Industry leadership and strong market share
Efficiency in production
Getting ready for the future with opportunities created in new business areas
Pioneering position in the transition to a low carbon economy and increased sustainable brand perception

ASSOCIATED RISKS

Strategic Risk
Commercial Risk
Operational Risk
Technology Risk
Climate-Related Risks

ASSOCIATED SDG

Direct

Endirect

VALUE FOR STAKEHOLDERS

Suppliers
Customers
Employees
Subsidiaries and Associates

MATERIAL ISSUES

R&D and Innovation
Digitalization
Data Security and Cyber Security
Fighting Climate Change
Energy Transition

INPUTS

72 R&D employees
TL 229.3 million ✅ in R&D expenditure
Participating in integration studies, acceleration programs and consortiums with the entrepreneurship ecosystem in the world and in our country
Inowhatif 360 Program coordinated by the Innovation and Venture Capital Directorate
Establishment of Tupras Ventures
Tupras Ventures becoming an investor in 2 venture capital funds investing in new technologies in the US and Europe
5 new intrapreneurship projects for a total of 49 projects
Data Analytics Offices at METU and ITU
69 digital transformation projects
USD 11 million for digital transformation projects expenses

OUTPUTS

103 patent applications, 50 registered trademarks, 43 scientific publications (cumulative)
8 ongoing, 14 successfully completed and 3 newly accepted international R&D projects
Tupras Ventures' direct and indirect investments in 39 startups, 5 technology startups including 3 in green hydrogen, 1 in robotics and 1 in thermal energy storage
Collaboration with more than 60 stakeholders and 16 different departments within Tüpraş
Collaboration with start-ups from more than 12 countries
Demo and PoC studies with more than 40 start-ups
4 Horizon2020, 4 Horizon Europe projects

VALUE CREATED

Intellectual property
Innovative products and services
Innovative projects with R&D and innovation in the transition to a low carbon economy

ASSOCIATED RISKS

Operational Risk
Strategic Risk
Commercial Risk
Financial Risk

ASSOCIATED SDG

Direct

Endirect

VALUE FOR STAKEHOLDERS

Employees
Suppliers
Business partners
Customers
Civil Society Institutions
Subsidiaries and Associates
Educational Institutions, Universities and Research Organizations

MATERIAL ISSUES

Sustainable Supply Chain
Customer Experience
Human Rights
Stakeholder Management

INPUTS

5,000 suppliers
4,000 customers
TL 579 million ✅ payments made for public benefit

OUTPUTS

422,000 students reached through Our Energy to Students Science Experiments Project program
118,736 students ✅ reached through Our Energy to the Future; I Code, I Model, I Produce Project
88% ✅ customer satisfaction
85% ✅ supplier satisfaction
88% ✅ contractor satisfaction
TL 35.3 billion business volume with indirect suppliers
TL 574 billion business volume with direct suppliers
Successful results, recognition and awards in sustainability indices
7,234 hours of Ethical Principles and Code of Conduct, AntiBribery and Corruption and Human Rights Trainings

VALUE CREATED

Strong brand reputation
Business continuity provided by a sustainable supply network
High customer loyalty with unique customer experience
Gaining recognition and trust in society through social investment activities
Transparent and effective interaction with all stakeholders
Strong stakeholder relationships in the Tüpraş ecosystem
Strong supply network, supplier communication channels and sustainable supply chain practices
Ongoing “Our Energy to the Future: I Code, I Model, I Produce” program in earthquake zones in cooperation with the Ministry of Education

ASSOCIATED RISKS

Strategic Risk
Operational Risk
Reputation Risk
Market Risk
Competition Risk
Climate-Related Risks

ASSOCIATED SDG

Direct

Endirect

VALUE FOR STAKEHOLDERS

Business partners
Media
Educational Institutions, Universities and Research Organizations
Suppliers
Financial Institutions
Customers
National and International Initiatives
Civil Society Institutions

MATERIAL ISSUES

Fighting Climate Change
Energy Management
Air Quality
Water Management
Circular Economy
Biodiversity
Energy Transition

INPUTS

24 types of crude oil amounting to a total of 25.5 million tonnes from 13 countries, including Türkiye, which have a specific gravity varying between 16 and 47 API.
18,3 million m³ ✅ in raw water withdrawal
Use of 6.9 million m3 of recycled grid wastewater
Total energy consumption of 91,079 TJ ✅
TL 3,848 million emission reduction-related expenses
TL 2,508 million spent on water-related operational improvements
80 ✅ energy efficiency projects
TL 6,493 million environmental investments and expenditures

OUTPUTS

23,777 tonnes of CO2 e ✅ emission reduction in Scope 1 and Scope 2 emissions through renewable electricity generation
18% reduction in Scope 1 and Scope 2 emissions (base year: 2017)
Annual reduction of 141.581 tonnes of CO2 e ✅ through energy efficiency projects
73.25% ✅ recycled water to total water withdrawal ratio
97% ✅ waste recovery ratio
TL 115 million ✅ economic gain through waste recovery and industrial symbiosis
Recycling of 36,937 tons of waste within the scope of circular economy activities

VALUE CREATED

Responsible sourcing and responsible production
Strong steps in the combat against climate change
Biodiversity guide created within the framework of the UN biological diversity convention

ASSOCIATED RISKS

Climate Related Risks
Technical Safety and Environmental Risks
Reputation Risk
Operational Risk
Strategic Risk
Compliance and Legal Risks

ASSOCIATED SDG

Direct

Endirect

VALUE FOR STAKEHOLDERS

Business partners
Public institutions and agencies
Suppliers
Subsidiaries and Associates
Customers
Civil Society Institutions