PEGASUS HAVA TAŞIMACILIĞI A.Ş.

Investor Presentation • Mar 4, 2024

2023 FINANCIAL RESULTS PRESENTATION March 2024

KEY HIGHLIGHTS

Another set of stellar results: EBITDA margin of 31.4% in 2023 marks one of the best performances in the world!

Traffic ➢ Total ASK grew 22% YoY in 2023, in line with the guidance provided. International ASK grew 26% YoY in 2023, standing 54% higher compared to 2019. ➢ Total passenger volume increased by 19% YoY in 2023. International passenger volume grew 24% YoY in 2023, standing 36% higher vs. 2019. ➢ International pax per cyle reached 169 pax in 2023 (173 pax in 4Q23), up from 161 pax in 2022 and 156 pax in 2019.	International ASK Q4: +18%, 12M: +26% YoY International Passengers Q4: +14%, 12M: +24% YoY International pax/cycle Q4: +2 pax, 12M: +8 pax YoY
Financial Performance ➢ Revenues at EUR2.7bn in 2023 (+9% YoY, +54% vs. 2019). Ancillary rev/pax reached EUR25.4 (+9 YoY, +70% vs 2019). ➢ RASK-CASK spread amounted to EURc0.89 in 2023 (nearly 2x higher than historic avg.). EBITDA* reached EUR838mn in 2023 (flat YoY, +45% vs. 2019), corresponding to an EBITDA margin of 31.4% - one of the best performances in the world! ➢ Net profit is at EUR790mn for 2023 (+83% YoY, +273% vs 2019). EUR420mn deferred tax income was recorded in 12/2023 P&L statement, stemming from the application of inflation accounting at the statutory accounts.	Revenues Q4: -10%, 12M: +9% YoY RASK-CASK spread 12M:€c0.89,+c.2x of hist. avg. EBITDA margin Q4: 21.5%%, 12M: 31.4%
Outlook ➢ 10%-12% growth planned in total ASK for 2024. ➢ Market is expected to operate on a balanced demand-capacity supply in 2024, hinting at a flattish trend for yields. On the ancillary/pax front, our budget foresees a 'mid-to-high single digit growth' compared to 2023. ➢ Cost outlook remains to be challenging, particularly due to wage inflation. Under the current circumstances, CASK non fuel is expected to increase by 'mid-to-high single digit' in 2024 over the 2023 level. ➢ We are confident that we will once again rank among the 'top EBITDA margin generators in the world' in 2024.	2024E ASK +10%-12% YoY 2024E Ancillary per pax +mid-to-high single digit YoY 2024E CASK non-fuel +mid-to-high single digit YoY
* Historic average for 2014-22. COVID period (2020 & 2021) excluded from the calculation ** EBITDA: Core EBIT+Depreciation expenses+55% of short term lease expenses (i.e. EUR14.6mn for 2023)

ROUTE NETWORK

Size of the international route network reached 99 destinations. Announced additions to the int'l route network

Genel (Public)

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in 2023 & 2024

Istanbul Sabiha Gokcen
→ Plovdiv → Amman → Birmingham
→ Kazan →Podgorica → Dortmund
→ Alexandria → Zagreb → Kutaisi
→ Cairo *
Ankara
→ Moscow → Warsaw → Krakow
→ Podgorica → Lisbon*
Antalya
→ Symkent → Astana → St.Petersburg
→ Krakow → Warsaw
Izmir
→ Podgorica → Warsaw
Dalaman
→ Baku
Bodrum
→ Tel Aviv
Trabzon
→ Tel Aviv → Dammam → Erbil
Gaziantep

→ Cologne* * Announced in 2024

OPERATING ENVIRONMENT

International passengers of Pegasus grew by 14% YoY in 4Q23, 24% YoY in 2023.

Domestic

16.1

4Q19 4Q22 4Q23 12M19 12M22 12M23 Jan'23 Jan'24

10.9 12.0

+10%

International

International

0

70

1 0

2 0

3 0

4 0

5 0

6 0

7 0

8 0

9 0

Türkiye passenger data is taken from General Directorate of State Airports Authority, domestic passengers are divided by 2 in order to avoid double counting. Pegasus figures reflect booked passengers, international pax includes charter pax 4

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

20.0

0.9 1.1

+20%

0

1 0

2 0

3 0

4 0

5 0

6 0

Genel (Public)

PEGASUS PAX. (mn)

4.1

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

2.7 3.2

+16%

SUMMARY FIGURES – P&L

Industry-leading operating profitability maintaned with the EBITDA* margin standing at 31.4% in 2023.

	2023	2022	YoY
EURmn, ANNUAL	12M	12M	% chg.
Revenues	2,670	2,449	9%
Scheduled pax revenues	1,814	1,755	3%
Ancillary revenues	810	626	29%
Costs	2,150	1,871	15%
Fuel costs	834	832	0%
Personnel costs	303	253	20%
3 EBITDA *	838	835	0%
EBITDA Margin	31.4%	34.1%
Profit before tax	370	403	-8%
Tax income/(expense)	420	28	n.m.
Deferred tax inc./(exp.)	420	28	n.m.
Net profit	790	431	83%

EURmn, QUARTERLY	4Q23	4Q22	% chg.
Revenues	609	675	-10%
Scheduled pax revenues	400	475	-16%
Ancillary revenues	198	192	3%
Costs	564	504	12%
Fuel costs	227	219	4%
Personnel costs	73	86	-15%
EBITDA *	131	230	-43%
EBITDA Margin	21.5%	34.1%

• Given that our functional currency is EUR, inflation accounting primarily impacts our financials through adjustments to deferred tax accounts.

• Deferred tax is computed based on temporary timing differences between statutory accounts and those reported under TFRS. Inflation accounting lead to a substantial increase in the net book value of fixed assets in statutory books, while the net book value in TFRS financials remains unaffected. Consequently, we have recognized a substantial deferred tax asset and a corresponding tax benefit.

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SUMMARY FIGURES – TRAFFIC & KPIs

Outstanding cost management performance against the challenging cost environment: CASK non-fuel at EURc2.26 in 2023.

EURmn	2023 12M	2022 12M	YoY % chg.	2023 Q4	2022 Q4	YoY % chg.
Revenues	2,670	2,449	9%	609	675	-10%
Costs	2,150	1,871	15%	564	504	12%
Fuel costs	834	832	0%	227	219	4%
Total Passengers (mn)	31.9	26.9	19%	8.1	7.1	15%
International (mn)	19.9	16.0	24%	5.0	4.3	14%
Total ASK (bn)	58.2	47.6	22%	14.6	12.5	17%
International (bn)	48.2	38.3	26%	11.9	10.1	18%
Load Factor	84.8%	83.6%		85.2%	85.5%
International	83.1%	82.6%		84.1%	85.7%
RASK	4.59	5.14	-11%	4.17	5.42	-23%
CASK	3.69	3.93	-6%	3.86	4.05	-5%
CASK non-fuel	2.26	2.18	4%	2.30	2.29	0%

International includes charter

REVENUES

2023 international scheduled revenues stand 70% higher compared to 2019.

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EURmn	2019 Q4	2022 Q4	2023 Q4	chg YoY
TOTAL REVENUES	396	675	609	-10%
scheduled Domestic	78	82	77	-6%
International scheduled	190	393	322	-18%
Ancillary	116	192	198	3%
Charter and Other	12	7	11	54%
(EURc) RASK	3 62	42 5	4 17	-23%
EURmn	2019 12M	2022 12M	2023 12M	chg YoY
TOTAL REVENUES	1 739 ,	2 449 ,	2 670 ,	9%
scheduled Domestic	336	311	307	-1%
International scheduled	884	1 444 ,	1 507 ,	4%
Ancillary	459	626	810	29%
Charter and Other	61	68	46	-33%

SCHEDULED PASSENGER REVENUES

In 2023 vs 2019, while total capacity in ASK grew by 32%, the total scheduled unit revenue increased by 50%.

Passenger Yield - Sch. Domestic (TL)

Passenger Yield - Sch. Int'l (EUR)

8

ANCILLARY REVENUES

Ancillary revenue/pax reached EUR25.4 in 2033, in line with the guidance.

RASK-CASK spread amounted to EURc0.89 in 2023, nearly 2x higher than the historic average spread.

Cost Items (EURmn)	2019 Q4	2022 Q4	2023 Q4	YoY % chg	2019 12M	2022 12M	2023 12M	YoY % chg
Jet fuel expenses	122	219	227	4%	497	832	834	0%			RASK	CASK -	spread		(EURc)
Personnel expenses	56	86	73	-15%	222	253	303	20%
Maintenance	28	16	23	44%	61	78	72	-8%
Depreciation	64	59	83	40%	244	257	304	18%								0 89
Handling	29	36	44	20%	113	137	181	32%									Avg
Navigation	23	28	35	25%	92	110	150	36%									2014-22* 0 45
Landing	12	15	22	48%	50	56	89	60%
Pax service & catering	4	4	7	65%	15	14	25	77%
ST lease expenses	0	0	5	n.m.	0	0	27	n.m.	4 1	5 1	6 1	7 1	8 1	9 1	2 2	3 2
Other expenses	29	41	44	8%	108	133	192	24%	0 2	0 2	0 2	0 2	0 2	0 2	0 2	0 2
TOTAL COSTS	367	504	564	12%	1,403	1,871	2,150	15%
CASK (€ cent)	3.36	4.05	3.86	-5%	3.19	3.93	3.69	-6%
CASK non fuel (€ cent)	2.24	2.29	2.30	0%	2.06	2.18	2.26	4%

* COVID period (2020 & 2021) excluded from the calculation of the average

CURRENCY BREAKDOWN – OPERATIONAL PERSPECTIVE

Revenues and costs are mainly based on hard currencies.

* Costs excluding depreciation expenses

LIQUIDITY

Net debt stands at EUR2.4bn as of the end of 2023.

EURmn	Dec 31, 2021	Dec 31, 2022	Dec 31, 2023
Cash & Equivalents	662	858	1,114
Other Assets	106	216	194
Pre-delivery payment	295	313	274
Fixed Assets	2,539	3,419	4,617
Total Assets	3,602	4,806	6,200
Liabilities	642	841	852
Bank Loans & Debt Instruments	596	485	602
Leasing Liabilities	1,901	2,575	3,067
Shareholders' Equity	462	905	1,678
Total Liab. & Sh. Equity	3,602	4,806	6,200
Net Debt, EURmn	1,688	2,046	2,418

Net Debt: Cash & equivalents + PDP/2 – Bank loans – Leasing liabilities Cash & equivalents include short and long-term financial assets

Breakdown of currencies and financial debt maturity

CASH RESERVES

Positive cash reserves are at EUR512mn as of the end of 2023.

Cash reserves vs. Loans

Cash reserves

Positive cash after deducting bank loans

Bank loans and debt instruments (total)

➢ Total cash reserves stood at EUR1,114mn at the end of 2023, compared to EUR858mn at 2022-end.
➢ Positive cash reserve after deducting total short and long term bank loans and issued debt instruments is at EUR512mn as of the end of 2023.

• Cash reserves include short and long term financial assets.

FLEET DEVELOPMENT

Fleet size was 110 aircraft at the end of 2023.

	Owned	Financial Lease	Operational Lease	Total
Boeing 737-800	6	3	7	16
Airbus A320ceo	-	-	7*	7
Airbus A320neo	-	40	6	46
Airbus A321neo	-	40	1	41
Total	6	83	21	110

* 3 A320ceo on damp lease

FLEET INFORMATION

• → Youngest fleet in Türkiye and one of the youngest among LCCs globally: 4.6 years.
• → 42 A320neo (all delivered) and 108 A321neo (40 delivered) on order.
• → Fleet size is planned to be 118 aircraft at the end of 2024.
  • ✓ 16 A321neo delivery for 2024, while 7 737-800 and 1 A320ceo damp-lease will exit
• → Since 2021-end, all deliveries in the order book are of A321neo type.
  • ✓ Average seat count of the fleet will reach 223 at the end of 2029, from 191 at the end of 2021

FLEET (as of December 31, 2023) A320NEO-A321NEO ORDER BOOK

FLEET DEVELOPMENT

0

2 0

4 0

6 0

8 0

100

120

Increasing share of Neo seats in total is making significant contribution to efficiency gains.

HEDGING & RISK MANAGEMENT

46% of the estimated jet fuel consumption for 2024 is hedged.

HEDGE VOLUME AND PRICE HEDGE STRATEGY

46%	21%
749-929	758-946
68-84	69-86

Price ranges are calculated by using market data of December 31, 2023 * Jet Fuel Price/11

• ➢ Non-discretionary portion is limited with 50% at any annual budgeting period, which is executed regardless of the price levels utilizing layered-hedging strategy.
• ➢ Discretionary portion is up to 20% of any annual budgeting period pursuant to the approval of Hedge Committee.
• ➢ Hedging tenor for non-discretionary portion is 24 months.
• ➢ Instruments: Vanilla Call Options, Zero Cost Collars and Swaps

RISK MANAGEMENT POLICY

• ➢ Currency Risk Hedge Program to weather exchange rate fluctuations.
• ➢ 100% international ticket revenues which are filed in US\$ but collected in TRY, EUR and GBP as well as up to 25% of domestic ticket revenues collected in TRY (if required) are converted to US\$ in daily spot market.

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16

SUSTAINABILITY (ESG) UPDATE

communication.

We published our Climate Transition Roadmap on our Sustainability Hub, setting out our course to our 2050 Net Zero Emissions Target. The Roadmap is supported by a discussion on key assumptions, opportunities and risks involved. We closed 2023 with continued reduction in our carbon intensity performance, achieving unit carbon emissions of 61.1 grCO2/RPK.

We completed a new phase of electrification of our ground equipment we use in our main base at the Istanbul Sabiha Gökçen International Airport (SAW). We carry-out our own ground handling at SAW. With the introduction of our new passenger stairs re-generating electricity through photovoltaic panels, electric ground power units and new electric tractors, 25% of our motorized mobile equipment at SAW now run on electricity, reducing emissions, noise and maintenance complexity.

Following a series of on-board catering content revisions to reduce waste and increase circularity, we initiated waste management on board our aircraft. In collaboration with Pendik Municipality, the waste management authority for our home base at SAW, we are now separately collecting renewable package waste on board to improve recycling efficiency.

Our new Diversity, Equality & Inclusion initiative «Harmony» is underway, with volunteers from different business units

identifying specific initiatives and targets and implementing them, with specific focus on design, engagement and

We improve our independent assessment on sustainability performance. For a third year following 2020 and 2022, we attained Leadership Level Score (A-) for our CDP Climate Change Reporting. In 2023, we also published our first Water Security Report as part of CDP, qualifying for Awareness Level Score (C). Our LSEG ESG score is 79% (formerly Refinitiv), giving us the 3rd highest ranking among 124 passenger transport service companies. We were also awarded the EMEA 2023 Environmental Sustainability Airline of the Year Award by CAPA.

We published our Sustainability Compliance Framework. Through new collaborations we aim to initiate under this framework, we aim to multiply the positive impact of the value we create, acting together with our value chain.

HIGHLIGHTS and FINANCIAL STATEMENTS

OPERATIONAL & FINANCIAL HIGHLIGHTS

OPERATIONAL & FINANCIAL HIGHLIGHTS
	2019 Q1	2019 Q2	2019 Q3	2019 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	Q4 YoY chg	2019 12M	2022 12M	2023 12M	12M YoY chg
TOTAL REVENUE (€mn)	290	407	647	396	270	504	1,000	675	442	657	962	609	-10%	1,739	2,449	2,670	9 %
ANCILLARY REVENUE (€mn)	9 3	107	143	116	9 3	127	214	192	156	206	251	198	3 %	459	626	810	29%
EBITDA (€mn) *	4 2	131	314	9 3	3 3	104	469	230	6 9	221	418	131	-43%	580	835	838	0 %
EBITDA Margin	14.5%	32.1%	48.6%	23.5%	12.1%	20.6%	46.9%	34.1%	15.5%	33.6%	43.4%	21.5%	-12.6pp	33.3%	34.1%	31.4%	-2.7pp
Net profit/loss (€mn)	-42	5 9	183	1 2	-60	-40	278	254	-22	9 1	253	n.m.**	n.m**	212	431	790	83%
PAX (mn)	6.90	7.41	8.80	7.64	4.85	6.51	8.48	7.09	6.27	7.85	9.67	8.13	15%	30.8	26.9	31.9	19%
LOAD FACTOR	86.9%	87.3%	91.3%	88.4%	80.8%	78.7%	88.0%	85.5%	84.4%	81.3%	87.7%	85.2%	-0.3pp	88.6%	83.6%	84.8%	1.1pp
ASK (bn)	9.5	10.8	12.7	10.9	8.4	11.9	14.8	12.5	11.0	15.2	17.5	14.6	17%	43.9	47.6	58.2	22%
AVG. STAGE LENGTH (km)	1,192	1,275	1,320	1,264	1,399	1,443	1,540	1,501	1,473	1,574	1,583	1,531	2 %	1,266	1,479	1,546	5 %
RASK, (€c)	3.07	3.76	5.08	3.62	3.21	4.22	6.74	5.42	4.04	4.32	5.51	4.17	-23%	3.96	5.14	4.59	-11%
CASK, (€c)	3.24	3.10	3.10	3.36	3.57	3.94	4.02	4.05	4.10	3.36	3.60	3.86	-5%	3.19	3.93	3.69	-6%
Non-fuel CASK, (€c)	2.14	1.96	1.95	2.24	2.38	2.07	2.06	2.29	2.61	2.13	2.13	2.30	0 %	2.06	2.18	2.26	4 %
ANCILLARY PER PAX (€)	13.4	14.4	16.3	15.2	19.2	19.5	25.2	27.1	24.9	26.2	25.9	24.3	-10%	14.9	23.3	25.4	9 %
EUR/US\$ rate (avg.)	1.14	1.12	1.11	1.11	1.12	1.07	1.01	1.02	1.07	1.09	1.09	1.08	5 %	1.12	1.05	1.08	3 %
EUR/TRY rate (avg.)	6.09	6.59	6.30	6.40	15.60	16.77	18.04	18.97	20.21	22.64	29.12	30.63	62%	6.35	17.34	25.65	48%
	* EBITDA: Core EBIT+Depreciation expenses+55% of wet lease expenses (i.e. EUR14.6mn for 2023)								** Quarterly net proift is not provided due to the existence of 19 high deferred tax income calculated for annual PL.

P&L STATEMENT

P&L STATEMENT EURmn ,	2023 12M	2022 12M
Sales	2 670 ,	2 449 ,
of sales Cost	-2 028 ,	-1 762 ,
profit Gross	642	688
General administrative ( ) expenses -	-72	-57
( ) Marketing expenses -	-50	-52
Other operating income	1	11
Other ( ) operating expenses -	-32	-7
profit Operating	489	582
Income/expense from investing activities	44	25
(equity method) Share of investments income	1	1
profit before financial Operating expense	534	608
Financial income	66	16
Financial ( ) expense -	-230	-221
/ Profit (loss) before tax	370	403
Current tax expense	0	0
/ Deferred (expense) income tax	420	28
/ Profit (loss) for the period	790	431

BALANCE SHEET

ASSETS EURmn ,	2023 12M	2022 12M	LIABILITIES EURmn ,	2023 12M	2022 12M
Current assets	1 474 ,	1 039 ,	liabilities Current	1 142 ,	1 041 ,
Cash and cash equivalents	494	530	Short financial liabilities term	572	496
Financial assets	569	113	payables Trade	200	197
Trade receivables	5 1	5 9	flight liabilities Passenger	258	216
Other receivables	6	9	financial Derivative instruments	3	0
financial Derivative instruments	0	1 3	Short provisions term	6 3	6 1
Inventories	3 3	2 5	Other liabilities current	4 4	7 0
Prepaid expenses	313	282	liabilities Non-Current	3 380 ,	2 859 ,
Other current assets	8	8	financial liabilities Long term	3 097 ,	2 564 ,
Non-Current assets	726 4 ,	3 767 ,	financial Derivative instruments	2	0
Financial assets	5 1	215	Deferred income	108	6 2
Other receivables	5 5	3 4	Long provisions term	173	197
financial Derivative instruments	0	4	Deferred liabilities tax	0	3 6
(equity method) Investments	1 8	1 8	SHAREHOLDERS' EQUITY	678 1 ,	905
and Property equipment	319	176	Paid share capital -in	6 1	6 1
Intangible assets	2 0	1 4	Share capital stock premiums on	194	194
Right of assets use	3 485 ,	2 947 ,	Other	7	2 4
Prepaid expenses	390	357	profit/loss Retained earnings and net	1 417 ,	627
Deferred tax assets	388	0
TOTAL ASSETS	6 200 ,	4 806 ,	TOTAL LIABILITIES AND EQUITY	6 200 ,	4 806 ,

CASH FLOW STATEMENT

CASH FLOW STATEMENT EURmn ,	2023 12M	2022 12M
A CASH FLOWS FROM OPERATING ACTIVITIES	781	906
cash generated from Net operating activities	825	791
Changes working capital in	-44	115
B CASH FLOWS FROM INVESTING ACTIVITIES	-353	-332
Cash debt of other acquire instruments entities payments to	-41	-123
Proceeds from sale of and intangible , equipment property assets	6	3 0
received from financial Interest investment	4 0	1 0
Changes in cash advances and payables	-97	-242
Other cash changes	-261	-7
C CASH FLOWS FROM FINANCING ACTIVITIES	-423	-524
in borrowings Increase	315	134
of borrowings Repayment	-225	-261
of principal in lease liabilities Repayment	-345	-273
and commission paid Interest	-195	-138
received Interest	2 6	1 5
TRANSLATION DIFFERENCES EFFECT ON CASH CASH EQUIVALENTS D AND	-41	4
(A+B+C+D) INCREASE CASH CASH EQUIVALENTS NET IN AND	-36	5 4
CASH CASH EQUIVALENTS BEGINNING OF PERIOD E AND AT THE THE	530	475
(A+B+C+D+E) CASH CASH EQUIVALENTS OF PERIOD AND AT THE END THE	494	530

DISCLAIMER

This document is prepared by Pegasus Hava Taşımacılığı Anonim Şirketi ("Pegasus") in accordance with the Pegasus Information Policy. The information covered in this document may be based on Pegasus corporate records, its own internal research and estimates based on the knowledge and experience of the markets in which it operates, or industry, market and similar data procured from third parties as indicated in the document. While Pegasus believes that third party data has been obtained from reputable sources it does not independently verify such data or commit to any undertakings regarding the completeness or accurateness of such data or such data not being misleading.

The data contained in this document aims to inform intended recipients of the operational results, targets and expectations of Pegasus in a correct and transparent manner and on equal terms and does not intend any investment advice or any offer or solicitation in connection with securities issued by Pegasus. Investors must make their investment decisions based on all other information, events and circumstances available through different channels and that may affect their investment decisions.

Investor communication prepared by Pegasus may contain forward-looking statements, including targets or expectations. These forward-looking statements may be disclosed as targets or expectations or through expressions such as "anticipate", "believe", "estimate" or "expect" or using the future tense. Forward-looking statements may relate to the operational and financial performance of Pegasus, its growth and strategies or future plans and targets of Pegasus Management. Forward-looking statements relate to matters that have not yet realized. While forward-looking statements are based on reasonable assumptions and estimates, such statements are prone to uncertainty and risks and such statements reflect the targets and expectations valid as of the date of announcement. Many factors could cause the actual results to be materially different from targets and expectations expressed by such forward-looking statements.

In the absence of any legal obligations arising from the applicable capital markets law, Pegasus does not undertake to update, keep up-to-date or to periodically review the information contained herein, including any forward-looking statements. By using this document for any purpose, you are deemed to have read, understood and accepted the warnings stated in this disclaimer.