INVESTOR PRESENTATION

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1 INVESTOR PRESENTATION

2 AGENDA 2 LEASING SECTOR IN TURKEY COMPANY OVERVIEW LEASING PORTFOLIO FINANCIAL RESULTS

3 LEASING SECTOR IN TURKEY COMPANY OVERVIEW LEASING PORTFOLIO FINANCIAL RESULTS

4 Leasing Sector Economy 4 Increasing protective trend in foreign trade was remarkable in Turkish economy slowed down in the second half of As growth in developed economies continued at different paces in 2018, risks with potential to impact the global economy in a negative way have increased during the last six months of the year. Overall expectation for 2019 is a relative slowdown in growth performance in Turkish economy; however a relative recovery trend in the second half of the year is being anticipated.

5 Leasing Sector Advantages of Leasing 5 FX borrowing option (for selective assets) VAT is %1 for various types of machinery. Sale-and-lease back and operating leases were added to finance leases in 2013 by a regulation change. Expertise on SMEs, consultancy and knowhow support in addition to funding Fast credit approvals (leased-asset ownership), flexible payment plans

6 Leasing Sector Number of Leasing Companies and Leasing penetration Number of Leasing Companies Leasing Penetration 12% 10% 8% 6% 4% 2% /2018 0% Penetration: Leasing volume/ Private sector fixed investments

7 Leasing Sector Leasing Volume 7 Million USD 30,4% ,3% % 28% -16,7% ,7% ,0% ,6% % 24% 18% -21,9% % Leasing Sale & Leaseback

8 Leasing Sector Leasing Receivables Million USD TL % FX % 120,00% % 26% 28% 28% 25% 25% 23% 100,00% 80,00% ,00% ,00% 20,00% ,00%

9 Leasing Sector Net Profit of Sector 9 Million TL

10 Leasing Sector Equity & Leverage 10 30,0% 8,0% 25,0% 20,0% 18,8% 18,7% 17,0% 6,0% 6,4% 6,8% 7,0% 6,0% 15,0% 10,0% 5,0% 5,0% 5,2% 5,6% 16,1% 14,8% 14,0% 5,0% 4,0% 0,0% ,0% Equity Leverage

11 Leasing Sector NPL & NPL Ratio Million TL 8,0% ,0% 6,7% 7,2% 7,0% ,3% ,0% 5,5% 6,0% ,0% ,0% ,0%

12 Leasing Sector Customer Base ,02% 10,65% 11,18% 12% ,04% 10% 8% ,19% 6% % % Sector Total Number of Customers İş Leasing Share 0%

13 LEASING SECTOR IN TURKEY COMPANY OVERVIEW LEASING PORTFOLIO FINANCIAL RESULTS

14 Company Milestones & Shareholders 1985 Leasing Law Enacted 1995 İş Bank group took over 2011 First corporate bond issuer in leasing sector Established by İş Bank, Soc Gen and IFC 2000 Listed in İstanbul Stock Exchange (ISFIN)) ISFIN Trading Volume Price Others 40,11% İş Bank 30,43% TSKB 29,46%

15 Company Organization Chart & Total Staff Gender 15 FEMALE 52,41% MALE 47,59% Education License 110 Master's Degree 16 High School 10 Associate Degree 5 Doctorate 1 Primary School 1

16 Company Branch Network & Employee 16 CONFLICT Avcılar Şişli Kozyatağı Kartal Ostim Trabzon 15 Branches Bursa Ankara Kayseri 49 Sales Staff İzmir Diyarbakır Konya Gaziantep 143 Total Staff Antalya Adana

17 LEASING SECTOR IN TURKEY COMPANY OVERVIEW LEASING PORTFOLIO FINANCIAL RESULTS

18 Lease portfolio Consolidated Financial Indicators 18 A 5.4 million TL B Leasing portfolio C D 532 million TL Transaction Volume million TL Shareholders Equity Million TL Net Profit This is a sample text million TL Total Assets

19 Lease portfolio Sales Channels İŞ BANK DIRECT MARKETING VENDORS 2018 İŞ BANK DIRECT MARKETING VENDORS 16% 13% 20% 64% İşbank: 1342 local and 22 foreign branches, largest network among private banks. 22% 65%

20 Lease portfolio Sectoral & Asset & Geographical Distribution, % 20 Sectoral Distribution ,42 24,55 17,86 16,36 12,75 10,93 10,09 10,49 7,33 7,80 4,83 4,30 2,82 5,74 3,27 2,51 7,90 7,79 6,47 3,80 3,45 4,54 CONSTRUCT METAL IND. TEXTILE TRANSPORT RETAIL CHEMICALS FINANCE ENERGY MINING HEALTHCARE OTHER Geographical Distribution Asset Distribution 34,04 29,57 29,60 33, ANKARA 16,99% GAZİANTEP 4,29% BURSA 3,14% İZMİR 5,59% 19,88 18,62 İSTANBUL 45,90% KONYA 3,16% ANTALYA 1,63% 8,13 8,79 4,03 4,68 4,32 4,91 OTHER 19,30% REAL ESTATE MACHINERY CONSTRUCTION MACH. TEXTILE TRANSPORTATION OTHER

21 Leasing - Borrowing Maturity & Currency Distribution 21 Maturity Currency TL 36% USD 32% EUR 33% TL 36% USD 24% EUR 39% TL 39% USD 23% EUR 38% USD EUR TL LEASİNG BORROWINGS average, months *TL funded by equity is included in the calculation.

22 Borrowing Leverage 22 Leverage(solo) Million TL TRY Receivables Equity TL Debt TL Portfolio 3,9 4,3 5,0 4,6 4, , Increased leverage by gaining market share

23 Borrowing Finansman Politikası 23 Yurt içi ve uluslararası bankalarla güçlü ilişkiler. o o 2018 yılında 80 milyon US$ tutarında sendikayon kredisi Tamamı teminatsız banka kredileri Sektörün ilk TL tahvil ihracını gerçekleştirdi. Dolaşımdaki ihraç tutarı 1.7 milyar TL Uluslararası Finansman Kuruluşları(IFI) ve İhracat Kredi Kuruluşlarından(ECA) doğrudan borçlanmalar o IFC yenilenebilir enerji ve enerji verimliliği, Dünya Bankası EFIL- KOBİ kredileri, AKKB KOBİ Kredileri, BSTDB KOBİ kredileri, ECO-Trade Bank KOBİ kredisi, o Eximbank Kredileri ile ihracatçı firmalara destek İslami Borçlanma Piyasaları o Uluslararası bankalar ile gerçekleştirilen iki adet Murabaha sendikasyonu Stratejimiz kreditör ve borçlanma araçlarında çeşitliliği sağlamak ve yönetilebilir seviyelerde aktif - pasif dengesi yaratmak.

24 LEASING SECTOR IN TURKEY COMPANY OVERVIEW LEASING PORTFOLIO FINANCIAL RESULTS

25 Financial Perfomance Financial Highlights 25 TL Million, consolidated Δ Leasing Receivables, Net ,6% Factoring Receivables, Net ,2% Non Performing Receivables ,6% Provisions ,2% Total Assets ,5% Financial Liabilities ,7% Equity ,0% Net Interest Income ,5% Provisions Expenses ,3% Consolidated net Profit ,9% RATIOS NPL / Receivables 3,4% 3,2% 2,9% 3,6% Provision Ratio 76,3% 65,1% 67,7% 66,8% Cost / Income 37,0% 37,7% 66,3% 40,9% ROE 12,2% 13,2% 12,5% 18,6% ROA 1,8% 2,1% 1,3% 2,2%

26 Financial Perfomance Solo Key Figures 26 (Million TL) Δ Δ Financial Highlights İş Sector Leasing Receivables % % Total Assets % % Equity % % Net Profit % % NPL Ratio 4,3% 4,7% 4,6% 4,8% 6,0% 6,3% 5,5% 7,2% Debt/Equity 4,0 4,7 5,0 5,6 4,5 4,8 5,8 6,1 ROE * 10,3% 11,7% 10,0% 10,1% 13,1% 13,0% 11,5% 9,6% ROA 2,4% 2,0% 1,5% 1,9% 2,1% 2,1% 1,8% 1,5% *: Bonus shares from İş Factoring (19 million TL) in 2015 have been off-set

27 Financial Perfomance IFRS9 Impact Analysis 27 Financial Assets Book Value Before TFRS Reclassifications Remeasurements Book Value After TFRS Tax Effect Equity Effect Leasing Receivables Pre-classification balance Valuation effect Book Value After Classification Leasing Receivables Pre-classification balance Valuation effect Book Value After Classification Expected Loss and Specific Provisions ( ) (59.965) ( ) (40.085)

28 Financial Perfomance NPL 28 8,55% 7,57% 7,99% 7,02% 6,95% Sector NPL% 6,71% 6,03% İş Leasing NPL% 6,26% 7,63% 7,20% 4,80% 4,63% 4,31% 4,65% 4,63% 4,76% Consolidated Gross NPL /Total Receivables Net NPL / Net Receivables 3,40% 3,23% 2,93% 3,56% 0,83% 1,15% 0,97% 1,21%

29 Financial Perfomance Collaterals 29 Leased assets are legally possessed by the lessor so they are the collateral of the leasing loan. Depending on the lessee s credit ratings and second hand value of the leased asset, additional collaterals might be demanded. Cash + LG + Pledge + Buyba ck 5,18% Mortga ge 5,13% Prom. Note+ Personal Guarantee 89,69% Prom. Note+ Personal Guarantee Cash + LG + Pledge + Buyback Mortgage *Group leasing transactions excluded

30 Financial Perfomance Rating 30 Corporate Governance Rating (Saha-2016) : 9.17

31 Disclaimer 31 The information in this document has been obtained by İş Finansal Kiralama A.Ş. ( İş Leasing ) from sources believed to be reliable, however, İş Leasing can not guarantee the accuracy, completeness, or correctness of such information. This document has been issued for information purposes only. The financial reports and statements announced by İş Leasing to the public and the relevant corporations are accepted to be the sole material. İş Leasing does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents due to the misleading information in this document. All estimations, if any, contained in this document are the opinions of İş Leasing and can be subject to change without notice. This document can not be interpreted as an advice to the investors and İş Leasing can not be held responsible for the results of the investment decisions made on the account of this document.