Investor Relations

PERFORMANCE & FINANCIAL RESULTS – 1Q19April 30, 2019

Investor Relations

Performance & Financial Results – 1Q19

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 234,7 mn portfolio size

IS Asset Management: (Share: 70.0%)Turkey’s leading portfolio management company by its TL38bn 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%)Started to raise new funds

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 %72

Free Float28%

Ratings

Investor Relations

Performance & Financial Results – 1Q19

3

About Us

Operational Performance

Financial Results

Investor Relations

Operational Performance Equities – Borsa Istanbul 4

Equity Market - Borsa Istanbul IS Investment

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

Broker 1 13.0%

Broker 2 8.5%

Broker 3 8.3%

IS Investment 7.4%

Broker 4 6.5%

#4

Our trading volume decreased 2.9% y/y in 1Q19

by having 7.4% market share

Trading volume of the equity market increased 4% y/y

while BIST 100 closed the quarter at 93.784 (2018:91.270)

79,9 77,6

7,9% 7,4%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

0

10

20

30

40

50

60

70

80

90

'18/3 '19/3

Billions

Trading Volume (TL bn) Market Share

1.0111.052

0

200

400

600

800

1.000

1.200

'18/3 '19/3

Billions

Trading Volume (TL bn)

Investor Relations

Operational Performance Derivatives – Borsa Istanbul 5

Turkish Derivatives Market (VIOP) IS Investment

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

Broker 1 14.9%

IS Investment 11.8%

Broker 2 8.2%

Broker 3 6.4%

Broker 4 6.3%

#2

We increased our derivatives market trading volume 12% y/y

and had 11% market share

Trading volume of the derivatives market rose 18%

with respect to 1Q18

560

663

'18/3 '19/3

Trading Volume (TL bn)

70,078,4

12,5%11,8%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

10

20

30

40

50

60

70

80

90

'18/3 '19/3

Billions

Trading Volume (TL bn) Market Share

Investor Relations

Operational Performance Primary Market & Equity Margin Trading 6

Debt securities issuances - IS Investment Equity Margin Trading - IS Investment

Source: Borsa Istanbul, IPO Data

Our equity margin trading loan size increased 14% when

compared to the end of 2018

We intermediated the issuance of 35 debt securities with a

size of TL 7.0 bn increasing 42,9% y/y and led the market

by 14.1% market share

2,7

2,22,2

4,8

26

35

8

13

18

23

28

33

38

0

1

2

3

4

5

6

'18/3 '19/3

IPOs (TL bn) Private Placements (TL bn)

# Total Offerings

112

128

0

20

40

60

80

100

120

140

'18 '19/3

Millions

TL

Loan size (TL mn)

Investor Relations

Operational Performance Assets under Management 7

AuM - Market AuM - IS Asset Management

Source: CMB & IS Asset Management

AuM size reached TL 38,6 billion surging by 14.5% y/y

while pension funds grew by 28,9% y/y

The total pension fund size in the market grew 13.1% y/y

and reached TL 91.2 bn while total mutual fund size grew

7.6% -after contracting in 2018- reached TL 66,3 bn

80,6 91,2

61,666,3

'18/3 '19/3

Mutual Funds (TL bn)

Pension Funds

6,6 9,2

14,2

18,3

12,9

11,1

'18/3 '19/3

Mutual Funds (TL bn)

Pension Funds (TL bn)

Other Funds* (TL bn)

* Other funds includes portfolios of private asset management, alternative investment products management, Turkishfund (SICAV) and portfolio of IS Investment Trust

16,8%

20,1%

Market Shares

Investor Relations

Performance & Financial Results – 1Q19

8

About Us

Operational Performance

Financial Results

Investor Relations

Net Profit (TL mn) 1Q18 1Q19 y/y (%)

IS Investment Only 76.1 110.2 44,8

Maxis Investments (1.1) - n.a.

IS Investment Trust 1.5 6.5 333,3

IS Private Equity (0.8) (0.8) -

IS Asset Management 4.9 5,7 16,3

Efes NPL Asset Management 1.7 (5.3) n.a.

Maxis Private Equity PM - (0.7)

Elimination Adjustments (23.4) (25.3)

Consolidated Net Profit 58.9 90,3 53,3

Financial Results Consolidation Effect 9

- Profit attributable to equity holders of the company may differ from the disclosed financial statements due to 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 consolidated net profit realized as TL 90.3 mn increasing by 53,3 y/y, while our non-consolidated

net profit soared up to TL110,2 mn rising by 44,8% with respect to 1Q18

Investor Relations

Financial Results Main Consolidated Financial Figures 10

IS Investment - Consolidated(TL000)

1Q18 1Q19 y/y (%)

Total Assets 7,689,514 8,419,111 9.5

Shareholders' Equity 643,004 809,011 25.8

Net Profit 58,913 90,353 53.3

Consolidated ROAE increased to 34.9% while non-consolidated ROAE reached 38.9%

2.539 2.6863.063

4.1664.935

5.3555.783

6.518

7.673

6.371

8.419

329 375 400 460 518 557 559 573 682 805 809

67,5 64,2 52,4 68,7 70,8 62,9 40,5 53,9 157,0 221,7 253,1

22,5%

18,2%

13,5%15,9%

14,5%11,7%

7,3%9,5%

25,2%

29,8%

34,9%

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

40%

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019/3

Mn TL

Total Assets Shareholders' Equity

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

Investor Relations

Interest and Trading Income66%

Commission Income34%

Interest and

Trading Income72%

Commission

Income28%

Financial Results Breakdown of Operating Revenues 11

Breakdown of Revenues (TL 000)

1Q18 1Q19 y/y (%)

Interest and Trading Income 114,476 166,184 45.2

Commission Revenues 60,236 66,100 9.7

Total Operating Revenues 174,712 232,284 32.9

Operating Revenues – 1Q18 Operating Revenues – 1Q19

TL 174,7 mn TL 232.3mn

Operating revenues increased by 32.9% with respect to the same period of 2018

Investor Relations

Brokerage 65%

Corporate Finance

9%

Asset Management

25%

Other Commissions

1

Brokerage 64%

Corporate Finance

7%

Asset Management

26%

Other Commissions

3%

Financial Results Breakdown of Commissions 12

Commission Revenues(TL 000)

1Q18 1Q19 y/y (%)

Brokerage 39.310 42.536 8.2

Corporate Finance 5,258 4,590 (12,7)

Asset Management 15,010 17,263 15,0

Other Commissions 658 1.711 160

Total 60,236 66,100 9,7

TL 60.2mn TL 66.1mn

Commission Revenues – 1Q18 Commission Revenues – 1Q19

Brokerage revenues continued to take the largest share from total commissions by 64%, while asset management

commissions, which soared up 15% y/y, took second largest share by 26%

Investor Relations

Other Exp.1%

Marketing Exp.27%

Adm. Exp.72%

Other Exp.1%

Marketing Exp.23%

Adm. Exp.76%

Financial Results Breakdown of Operating Expenses 13

Operating Expenses(TL 000)

1Q18 1Q19 y/y (%)

Marketing, Sales and Distribution Expenses 25,073 24,079 (3,9)

General Administrative Expenses 67,548 80,131 18,6

Other Operating Expenses 1.568 1.856 18,4

Total 94,189 106,066 12.6

TL 94,2 mn TL 106,1mn

Operating Expenses – 1Q18 Operating Expenses – 1Q19

OPEX increased 12.6 y/y which is below the inflation rate while decreasing our cost/income ratio to 46% (FY18: 51%)

Investor Relations

Financial Results Dividend 14

20,0 24,5

47,036,0

45,0

110,0

90,0

30,1%36,0%

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

May.13 March 14 March 15 March 16 March 17 March 18 March 19

Milyon TL

Cash Dividend Dividend Ratio (to the distributable profit)

4,1%

6,3%

10,6%

9,6% 9,5%

12,9%

10,3%

0%

2%

4%

6%

8%

10%

12%

14%

May-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

ISMEN

Cash Dividend & Payout Ratio - ISMEN Dividend Yield - ISMEN

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

Investor Relations

Investor Relations 15

Ms. Çağlan Mursaloğlu

Deputy CEO

Phone : +90 0212 350 23 48

Fax : +90 0212 350 20 01

E-mail : cmursaloglu@isinvestment.com

Mr. 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 trade secrets

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.

16

Investor Relations

PERFORMANCE & FINANCIAL RESULTS – 1Q19April 30, 2019