Investor Relations

PERFORMANCE & FINANCIAL RESULTS – FY19February 3, 2020

Investor Relations

Performance & Financial Results – FY19

1

About Us

Operational Performance

Financial Results

Investor Relations

IS Private Equity: (Share: 29.1%) (Ticker: ISGSY:TI)One of Turkey’s largest Private Equity company and listed since 2004; 26.5% IRR (Internal Rate of Return) on USD basis from 11 exits

IS Investment Trust (Share: 28.9%) (Ticker: ISYAT:TI)Turkey’s leading Investment Trust; listed since 1996, represents almost50% of the sector with its TL 276 mn portfolio size

IS Asset Management: (Share: 70.0%)Turkey’s leading portfolio management company by its TL53,5 bn AuM

Efes NPL Asset Management: (Share: 74.0%)Mainly aims to manage mainly banks’ NPLs

Maxis Investments: (Share: 100.0%)London headquartered and capital markets licensed subsidiary

Maxis Private Equity Portfolio Management: (Share: 100.0%)Already invested in 3 startups.

2About Us

Shareholder Structure Business Lines

Credit Rating (Saha Rating)

National Long-Term: AA+ Stable outlook

National Short-Term: A1+ Stable outlook

Subsidiaries

• Brokerage & Trading

• Investment Advisory

• Asset Management

• Corporate Finance

• Research

Isbank&

IsbankGroup

Companies %71,3

Free Float28,7%

Ratings

Investor Relations

Performance & Financial Results – FY19

3

About Us

Operational Performance

Financial Results

Investor Relations

4

Equity Market trading volume increased by 6.9% y/y whereas our trading volume rised 12.2% y/y

2.052 2.027

2.936

3.9874.260

'15 '16 '17 '18 '19

Trading Volume (TL Billion)

151 160

232

309

347

7,4%7,9% 7,9% 7,8%

8,1%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

0

20

40

60

80

100

120

140

160

180

'15 '16 '17 '18 '19

Trading Volume (TL Billion) Market Share

Equity Market - Borsa Istanbul IS Investment

Operational Performance Equities

Source: Borsa Istanbul, Equity Market Data Market Transactions by Members

RANKINGS INVESTMENT COMPANIES

TRADING VOLUME (TL MILLION)

MARKET SHARE (%)

2019 2019

2019 2019

1 BROKER 1 515.668 12.1

2 BROKER 2 354.200 8.3

3 IS INVESTMENT 346.859 8.1

4 BROKER 4 300.756 7,1

5 BROKER 5 290.666 6,8

MARKET TOTAL 4.260.221

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000 Trading Volume(TL Mn)

BIST-100 Closing BIST 100 Performance

Trading Volume BIST100

Investor Relations

5

1.135 1.161

1.660

2.520

2.872

'15 '16 '17 '18 '19

Trading Volume (TL Billion))

100132

245

308 311

8,8%

11,4%

14,8%

12,2%

10,8%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

0

50

100

150

200

250

300

350

'15 '16 '17 '18 '19Trading Volume (TL Billion) Market Share

We continued to operate as market maker in index options and single stock futures while ranking 2nd by 10.8% market share

Operational Performance Derivatives

Turkish Derivatives Market (VIOP) IS Investment

Source: Borsa Istanbul, Derivatives Market Data,Market Transactions by Members

RANKINGS INVESTMENT COMPANIES

TRADING VOLUME

(TL MILLION)

MARKET SHARE (%)

2019 2019

2019 2019

1 BROKER 1 440.019 15.3

2 IS INVESTMENT 310.649 10.8

3 BROKER 3 231.619 8.1

4 BROKER 4 174.669 6,1

5 BOKER 5 145.517 5,1

MARKET TOTAL 2.871.727

Investor Relations

6

Debt securities issuances - Market IS Investment

Source: Borsa Istanbul, IPO Data

Operational Performance Primary Market – Debt Securities

We intermediated the issuance of 105 debt securities with a total size of TL 21,3 bn, increasing by 8.1% when compared to 2018and ranked 3rd in the market by 10.3% share

79,690,1

129,4

179,0

206,1

621

760

1.211

1.383 1.330

-

200

400

600

800

1.000

1.200

1.400

1.600

-

50

100

150

200

250

2015 2016 2017 2018 2019

Billion

TL Issuance Size Number of Issuances

19,5

18,7

20,7

19,7

21,3

136

116 112 108 105

-

20

40

60

80

100

120

140

160

17

18

18

19

19

20

20

21

21

22

2015 2016 2017 2018 2019

Billion TL

Issuance Size Number of Issuances

TL 206,1 bn

Breakdown of Debt Sec. Issuances – 2019

RANKINGS INVESTMENT COMPANIES TRADING VOLUME

(TL MİLLION) MARKET SHARE (%)

2019 2019

2019 2019 1 BROKER 1 24.200 11,8

2 BROKER 2 21.700 10,5

3 IS INVESTMENT 21.300 10,3 4 BROKER 4 18.000 8,7

5 BROKER 5 13.600 6,6 MARKET TOTAL 206.100

Non-Financial

5%

Financial

95%

Investor Relations

Operational Performance Equity Margin trading – M&A Transactions 7

Equity Margin Trading - IS Investment M&A Transactions - IS Investment

We closed 4 M&A transactions in 2019Our equity margin trading size grew by132,1% y/y in 2019

Source: IS Investment

442

324 301

112

260

0

50

100

150

200

250

300

350

400

450

500

'15 '16 '17 '18 '19

Loan Size (mn TL)

Target firm Seller Buyer Our role as

an advisor

Şafak Elektrik A.Ş. Groupe

Sicame

Sell-side

Siak İnş.Malz. San.

ve Tic. A.Ş., Akkurt

Plastik San. Tic.

Ltd. Sti.

SIAMP

Buy-side

Phaselis Resort

Hotel

Türkiye İş

Bankası A.Ş.

NG Kütahya

Seramik

Porselen

Turizm A.Ş.

Sell-side

Üçgen Seferihisar

Rüzgar Enerjisi

Elektrik Üretim A.Ş.

Akdeniz

İnşaat ve

Eğitim

Hizmetleri

A.Ş.

Üstyapı

İnşaat ve

Madencilik

A.Ş.

Sell-side

Investor Relations

Operational Performance Assets under Management 8

AuM - The market AuM - IS Investment

Source: IS Asset Management

Our TL 53,5 bn size of consolidated AuM soared up 62% when comparedto the last year while pension funds and mutual funds grew 41.4% and106.3% respectively

The total pension fund size in the market grew 44.3% y/y and reachedTL 127,6 bn while total mutual fund size remarkably grew 143.8%reaching TL 113,4 bn

48,0 60,676,8 88,4

127,637,7

48,5

55,7 46,5

113,4

'15 '16 '17 '18 '19

Mutual Funds (TL bn)

Pension Funds (TL bn) 17.1%

17.4%

Market Shares

3,2 5,1 7,0 7,911,9

8,711,2

14,615,7

22,2

8,7

11,3

11,7 9,4

19,4

'15 '16 '17 '18 '19

Mutual Funds (TL bn)

Pension Funds (TL bn)

Other Funds* (TL bn)

* Other funds include portfolios of private asset management, alternative investment products management (including PE and real estate), Turkishfund (SICAV) and portfolio of IS Investment Trust

Investor Relations

Performance & Financial Results – FY19

9

About Us

Operational Performance

Financial Results

Investor Relations

Net Profit (TL mn) 2018 2019 y/y (%)

IS Investment Only 226,4 379,4 67.6

Maxis Investments (1,6) 0,6 n.m.

IS Investment Trust 8,8 18,1 105.7

IS Private Equity (7,1) (5,5) (22.5)

IS Asset Management 18,4 25,1 36.4

Efes NPL Asset Management 0,4 (9,3) n.m.

Maxis Private Equity PM (1,7) (0,9) n.m.

Elimination Adjustments (21,9) (24,6) 12.03

Consolidated Net Profit 221,7 382,8 72.7

Financial Results Consolidation Effect 10

- Profit attributable to equity holders of the company may differ from the disclosed financial statements dueto indirect shares

- Dividend and revenue elimination with subsidiaries, which is also reallocated and may differ from the disclosed financial statements

Consolidated Net Profit = [IS Investment Non-consolidated Net Profit + Contributions from Subsidiaries] – Elimination Adjustments

Contributions from Subsidiaries

Elimination Adjustments

IS Investment

Non-consolidated Net Profit

Consolidated Net Profit

Our non-consolidated net profit increased by 67.6% y/y reaching TL 379,4 mn whereas

our consolidated net profit disclosed as TL 382.8 mn rising by 72.7% y/y

Investor Relations

Financial Results Main Consolidated Financial Figures 11

IS Investment - Consolidated(TL000)

2018 2019 y/y (%)

Total Assets 6,370,682 6,717,106 5,4

Shareholders' Equity 805,285 1,106,992 37.4

Net Profit 221,701 382,874 72.7

The consolidated ROAE realized as 40% while non-consolidated ROAE realized as 43%

5.783

6.518

7.673

6.371 6.717

559 573 682 8051.107

40,5 53,9157,0 221,7 382,9

7,3%

9,5%

25,2% 29,8%

40,0%

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

40%

44%

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2015 2016 2017 2018 2019

Mn TL

Total Assets Shareholders' Equity

Net Profit (Last 4 quarters) ROAE (Right Axis)

Investor Relations

Interest and Trading Income

64

Commission Income36%

Interest and Trading Income71%

Commission Income29%

Financial Results Breakdown of Operating Revenues 12

Breakdown of Revenues (TL 000)

2018 2019 y/y (%)

Interest and Trading* 469,015 737,342 57.2

Commission 258,202 300,487 16.3

Total Operating Revenues 727,217 1,037,829 42.7

Operating Revenues – 2018 Operating Revenues – 2019

TL 727,2 mn TL 1,037.8mn

Despite the weak performance of the first nine months of the year, our commission income rised by 16.3% y/y while total operating revenues

increased by 42.7% y/y mainly thanks to the interest & trading revenues -that include private equity, investment trust, npl management and

leveraged fx revenues- increased by 57.2% when compared to 2018

* Include private equity, investment trust, npl management and leveraged fx revenues

Investor Relations

Brokerage 65%

Corporate Finance

7%

Asset Management

26%

Other Commissions

2%

Financial Results Breakdown of Commissions 13

Commission Income(TL 000)

2018 2019 y/y (%)

Brokerage 166,920 195,410 17,1

Corporate Finance 32,821 20,475 (37,6)

Asset Management 54,595 78,113 43,1

Other 3,866 6,489 67,8

Total Commission Income 258,202 300,487 16,4

TL 300,4.mn

Commission Revenues – 2018 Commission Revenues – 2019

Brokerage revenues continued to take the largest share from total commissions by 65%, while asset management commissions which rised

43.1% y/y had the second largest share by 26%

Brokerage 65%

Corporate Finance

13%

Asset Management

21%

Other Commissions

1%

TL 258,2mn

Investor Relations

Other Exp.0%

Marketing Exp.27%

Adm. Exp.73%

Financial Results Breakdown of Operating Expenses 14

Operating Expenses(TL 000)

2018 2019 y/y (%)

Marketing, Sales and Distribution (102,517) (114,052) 11,2

General Administrative (262,777) (306,457) 16,6

Other (7,165) (1,933) (73,0)

Total Operating Expenses (372,459) (422,442) 14,1

TL 422.4 mn

Operating Expenses – 2018 Operating Expenses – 2019

Operating expenses increased by 14.1 when compared to 2018 whereas cost/income ratio improved to 40.7% from 51.2 in 2018

Other Exp.1

Marketing Exp.28%

Adm. Exp.71%

TL 372,4 mn

Investor Relations

Financial Results Dividend 15

47,036,0

45,0

110,0

90,0

77,5%

94,5% 90,7%

74,0%

42,7%

0,0%

8,0%

16,0%

24,0%

32,0%

40,0%

48,0%

56,0%

64,0%

72,0%

80,0%

88,0%

96,0%

0

20

40

60

80

100

120

March 15 March 16 March 17 March 18 March 19

Mn TL

Cash Dividend Dividend Ratio (to the distributable profit)

10,6%

9,6% 9,5%

12,9%

10,3%

0%

2%

4%

6%

8%

10%

12%

14%

Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

ISMEN Dividend Yield

Cash Dividend & Payout Ratio - ISMEN Dividend Yield - ISMEN

The dividend yield of ISMEN was 10,3% in 2019We paid TL 90 mn cash dividend in March 2019

Investor Relations

Financial Results Price Performance & Daily Trading Volume 16

Price Performance - ISMEN Daily Trading Volume - ISMEN

ISMEN price gained 143% in 2019 beating BIST 100 by 109%

600

800

1.000

1.200

1.400

1.600

1.800

90

100

110

120

130

140

150

160

170

180

190

200

210

02

.01.1

9

16

.01.1

9

30

.01.1

9

13

.02.1

9

27

.02.1

9

13

.03.1

9

27

.03.1

9

10

.04.1

9

24

.04.1

9

08

.05.1

9

22

.05.1

9

05

.06.1

9

19

.06.1

9

03

.07.1

9

17

.07.1

9

31

.07.1

9

14

.08.1

9

28

.08.1

9

11

.09.1

9

25

.09.1

9

09

.10.1

9

23

.10.1

9

06

.11.1

9

20

.11.1

9

04

.12.1

9

18

.12.1

9

Relative toBIST-100

Market Cap.(mnTL)

ISMEN - BIST 100 Relative Perf.

100 Base

Market Cap. (mn TL)

0,00

2.000.000,00

4.000.000,00

6.000.000,00

8.000.000,00

10.000.000,00

12.000.000,00

14.000.000,00

16.000.000,00

18.000.000,00

Investor Relations

11% 12%

18%25%

22%

11%

19%

30%

34%

45%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2015 2016 2017 2018 2019/9*

Sektör İş Yatırım

Financial Results– ISMEN vs Brokerage Sector 17

ROAE (ISMEN vs Brokerage Sector) Cost/Income Ratio (ISMEN vs Brokerage Sector)

77% 77%

65%

57%54%

75%

67%

49%

42%

32%

25%

35%

45%

55%

65%

75%

2015 2016 2017 2018 2019/9*

Sektör İş Yatırım

Source: www.tspb.org.tr

* The latest announced brokerage sector data

Investor Relations

Investor Relations 18

Kenan Ayvacı

Deputy CEO

Phone : +90 0212 350 25 00

Fax : +90 0212 350 20 01

E-mail : kayvaci@isinvestment.com

Ozan Altan

Manager, Head of IR

Phone : +90 0212 350 28 72

Fax : +90 0212 350 20 01

E-mail : oaltan@isinvestment.com

The Investor Relations Department is responsible for the

timely communication of necessary, accurate, complete,

comprehensible and easily accessible information and

explanations, which are not considered to be insider

information to its shareholders and stakeholders.

http://www.isinvestment.com/wwa_ir_new.aspx

Investor Relations

Disclaimer

The information in this report is prepared by “IS YATIRIM MENKUL DEGERLER A.S.” (IS Investment) and it is not to be construed as

an offer or solicitation for the purchase or sale of any financial instrument or the provision of an offer to provide investment services.

Information, opinions and comments contained in this material are not under the scope of investment advisory services. Investment

advisory services are given according to the investment advisory contract, signed between the intermediary institutions, portfolio

management companies, investment banks and the clients. Opinions and comments contained in this report reflect the personal views of

the analysts who supplied them. The investments discussed or recommended in this report may involve significant risk, may be illiquid

and may not be suitable for all investors. Therefore, making decisions with respect to the information in this report cause inappropriate

results.

All prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any

form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this report is strictly prohibited.

The information presented in this report has been obtained from sources believed to be reliable. IS Investment cannot be held responsible

for any errors or omissions or for results obtained from the use of such information.

19

Investor Relations

PERFORMANCE & FINANCIAL RESULTS – FY19February 3, 2020