Derivatives Exchange merged under the roof of Borsa Istanbul.

Turkish Capital Markets

December 2015

2

Turkey at a Glance

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile CONTENTS

3

28

56 16

38

82

TURKEY AT A GLANCE

LOCATION

4

POLITICS

• The Republic of Turkey, founded in 1923, is a parliamentary democracy.

• Latest general elections were held in November 2015.

• The composition of the Grand National Assembly is as follows, as of November 2015.

317 134

59

Justice and Development Party (Right)

Republican People's Party (Left)

Peoples' Democratic Party (Left)

Nationalist Movement

SOVEREIGN FOREIGN CURRENCY RATINGS (LONG TERM)

6

S&P Moody's Fitch

Investment-Grade Ratings

Highest Credit Quality AAA Aaa AAA

High Credit Quality AA Aa AA

Strong Payment Capacity A A A

Adequate Payment Capacity BBB Baa BBB-

Speculative-Grade Ratings

BB+ Ba1 BB+

BB Ba2 BB

BB- Ba3 BB-

B+ B1 B+

B B2 B

B- B3 B-

CCC+ Caa1 CCC+

CCC Caa2 CCC

CCC- Caa3 CCC-

CC CC

Default C, D Ca, C C, D

Speculative, Credit Risk

Developing due to Economic Changes

High Speculative, Credit Risk Present with Limited Margin Safety

High Default Risk,

Capacity Depending on Sustained Favourable Conditions

Source: UNCTAD, Treasury The credit ratings of Turkey are highlighted in red.

POPULATION

As of 2014:

• Population: 77.7 million

• Median age: 30.7

• Labour force: 28.8 million, participation rate: 51%

• Unemployment rate: 9.9%.

GROSS DOMESTIC PRODUCT (BILLION $)

8

Source:TurkStat

REAL GDP GROWTH

8.4%

6.9%

4.7%

0.7%

-4.8%

9.2% 8.8%

2.1%

4.2%

2.9%

17,41610,3554,7703,820 800

0 600 1,200 1,800 2,400 3,000

ChinaUSA Japan GermanyAustraliaCanadaMexicoFranceRussiaKoreaSpainBrazilIndiaItalyUK NetherlandsIndonesiaTurkey Saudi ArabiaSwitzerlandArgentina^ColombiaBelgiumSwedenNorwayTaiwanNigeriaAustriaPolandUAEIran Thailand Denmark South AfricaMalaysia

WORLD GDP RANKINGS (2014, BILLION $)

10

Source: IMF-WEO October 2014, TurkStat

Rank: 18th

ANNUAL INFLATION (%)

-5 0 5 10 15 20

CPIPPI

FISCAL BALANCE

12

Source:MoF

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Interest Expenditure/GDP Budget Balance/GDP

Primary Balance/GDP

PUBLIC DEBT (EU DEFINED PUBLIC DEBT/GDP)

FOREIGN TRADE

14

Source: TurkStat

CURRENT ACCOUNT BALANCE

STRUCTURE OF THE

TURKISH CAPITAL MARKETS

CAPITAL MARKETS BACKGROUND

1982: Capital Markets Board established.

1985: Istanbul Stock Exchange (ISE) established.

1992: Takasbank (Settlement & Custody Bank) established.

1995: Istanbul Gold Exchange (IGE) established.

1997: Banks are forbidden to trade equities.

2001: Association of Capital Markets Intermediary Institutions of Turkey established.

Central Registry Agency established.

Investors' Protection Fund established.

2002: Private pension system introduced.

2005: IFRS adopted for financial intermediaries and listed companies.

Turkish Derivatives Exchange (TurkDex) established.

Dematerialization of equities completed.

2006: Dematerialization of corporate bonds & mutual funds completed.

2009: Automated Disclosure Platform introduced.

Istanbul International Financial Centre strategy announced.

2011: Forex regulation passed.

2012: New Capital Markets Law passed.

ISE demutualised and merged with IGE under Borsa Istanbul.

2013: Borsa Istanbul announced strategic partnership with Nasdaq.

Borsa Istanbul and TurkDex merged.

2014: The structure of the Association has changed and the membership base was expanded to cover asset management companies and investments trusts, in addition to brokerage firms and banks. The name of the Association was revised to Turkish Capital Markets Association.

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

18

Banking Capital Markets Insurance

Banking Regulation and

Supervision Agency (BRSA) Capital Markets Board (CMB) Undersecretariat of Treasury -Banks’ Association of Turkey

-Participation Banks’ Association of Turkey

-Association of Financial Institutions -Banks

-Participation Banks

-Savings Deposit Insurance Fund -Leasing Companies

-Factoring Companies

-Consumer Finance Companies -NPL Management Companies

-Turkish Capital Markets Association -Borsa Istanbul

-Banks

-Brokerage Firms

-Asset Management Firms -Investment Trusts

-Central Registry Agency

-Settlement and Custody Bank -Capital Markets Licensing and Training Agency

-Investor Compensation Center -Public and Listed Companies -Rating, Appraisal, Audit Firms

-Insurance Association of Turkey -Insurance Companies

-Private Pension Companies -Private Pension Funds

CAPITAL MARKET INSTITUTIONS IN TURKEY

Rating Co.

Ind. Audit Co.

Settlement &

Custody Bank (Takasbank)

Capital Markets Board

Banks Brokerage Firms

Inv. Trusts Asset Mgmt. ^Co.

(SRO) TCMA Borsa

Istanbul

Central Registry

Agency Public Co.

Listed Co.

Licensing and Training

Agency

CAPITAL MARKETS BOARD

20

• Capital Markets Board (CMB) is the main regulatory and

supervisory authority for the securities markets and institutions in Turkey.

• The Board is responsible for the protection of rights and interests of investors.

• The CMB’s jurisdiction areas:

o Primary markets, o Secondary markets, o Investment services.

BORSA ISTANBUL

• Borsa Istanbul, formerly named as Istanbul Stock Exchange, was established in 1985.

• The exchange was demutualised in 2013.

• The exchanges operating in Turkey, namely Istanbul Stock Exchange, Istanbul Gold Exchange and the Turkish

Derivatives Exchange merged under the roof of Borsa Istanbul.

• Borsa Istanbul and NASDAQ OMX signed a partnership agreement in 2013. Technological infrastructure is

provided by NASDAQ OMX.

• European Investment Bank acquires a 10% share in 2015.

BORSA ISTANBUL

22

• The main markets and the traded securities on Borsa Istanbul are

:

o Equity Market: Shares, rights coupons, ETFs, warrants, certificates.

o Debt Securities Market: Government bonds, corporate bonds, asset backed securities, Islamic bonds, repo-reverse repo transactions, Turkish eurobonds.

o Derivatives Market: Single stock, equity index, gold, currency,

commodity, overnight repo, metal, ETF and power futures. Single stock, currency, equity index and mini index options.

o Precious Metals and Diamond Market: Gold, silver, platinum and palladium.

TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)

• Takasbank was established in 1988 as a department of Borsa Istanbul.

It was incorporated as a separate company in 1992 and became a non- deposit taking bank in 1995.

• Takasbank is:

o The clearing and settlement centre for Borsa Istanbul,

o The central counterparty (CCP) for Borsa Istanbul Futures & Options Market,

o The national numbering agency of Turkey.

• It operates a money market.

• Takasbank operates the Securities Lending & Borrowing Market and acts as the CCP for this market.

• The Bank allocates the legal entity identifier codes.

CENTRAL REGISTRY AGENCY

24

• Central Registry Agency (CRA) was established in 2001 as a private company.

• CRA is the only central depository for all dematerialized capital market instruments.

• The dematerialization process is completed for equities, mutual funds, corporate bonds, warrants, certificates, asset backed

securities and investors’ (excluding investment institutions) government debt holdings.

INVESTOR COMPENSATION CENTRE

• Investors’ Protection Fund, which covered equity settlement obligations, was established in 2001.

• Investor Compensation Centre replaced the Investors’

Protection Fund in 2013 with the renewed Capital Market Law.

• It covers settlement obligations of all capital market

instruments, up to TL 100,000 (~$ 34,000) in 2015, in case of liquidation or bankruptcy of investment institutions.

• All investment institutions have to be a member of the Investor Compensation Centre.

ACTIVITIES OF INTERMEDIARIES

26

• Equity Trading

• Leveraged FX trading

• Public Offering

• Asset Management

• Investment Consultancy

• Fixed Income Trading

• Derivatives Trading (exc. equity-linked products for banks)

BANKS

BROKERAGE FIRMS

TYPES OF BROKERAGE FIRMS

Market Makers

Execution Brokers

Introducing Brokers

• execution of orders from their own account by positioning their customers as counterparty

• minimum capital: TL 25 million (~$ 8.4 million).

• execution of orders of in the name of customers and/or their own

account

• offering custody services

• minimum capital: TL 10 million (~$ 3.4 million).

• reception of orders and

transfer them to other brokers

• minimum capital: TL 2 million (~$ 690,000).

TURKISH CAPITAL MARKETS ASSOCIATION

TCMA

• Founded in April 2001.

• It is a self-regulatory professional organization in the Turkish capital markets.

• The structure of the Association was changed and its name was revised to Turkish Capital Market Association in 2014, in line

with the new Capital Markets Law.

• TCMA is under CMB supervision.

• Association currently has 232 members; 95 brokerage firms, 44 banks, 46 portfolio management companies, 9 securities investment trusts, 31 real estate investment trusts and 7

AIMS

30

• Contribute to the development of the capital market

• Meet the collective needs of members and facilitate solidarity among its members,

• Prevent unfair competition between its members,

• Enhance know-how in the sector.

FUNCTIONS

• Establish code of ethics for the profession,

• Establish professional rules and regulations,

• Conduct research,

• Offer educational programs,

• Assist in the resolution of disputes,

• Cooperate with related foreign institutions,

• Engage in financial literacy activities.

ORGANISATION

32

DEPARTMENTS

• Monitors and inspects the activities of the members.

• Monitors related regulations, makes proposals for changes in the existing or draft

regulations.

• Provides legal advisory services.

• Conducts necessary legal investigations about the

applications and complaints made to the Association.

• Keeps record of disciplinary action of the members.

• Assists in the resolution of disputes.

Compliance and Surveillance Legal Affairs

DEPARTMENTS

• Gathers statistical data on members and produces

periodic reports.

• Publishes research to

enhance the development of the capital markets.

• Represents the Association at international institutions.

• Prepares training programs towards professional

development of industry professionals.

34

Research and Statistics Training

Membership Affairs

• Examines applications for

membership, keeps detailed records of members and

provides advice on members to the Association.

DEPARTMENTS

• Manages media

correspondence and public relations.

• Promotes investor education activities of the Association.

• Manages the administrative, accounting and personnel

operations of the Association.

Corporate Communications HR, Administrative and Financial Affairs

Information Technology

• In charge of the IT backbone of the Association.

INTERNATIONAL MEMBERSHIPS

36

• Asia Securities Forum (ASF) member since 2009.

• Asia Forum for Investor Education (AFIE) founding member since 2010.

• Federation of Euro-Asian Stock Exchanges (FEAS) affiliate member since 2009.

• International Council of Securities Associations (ICSA) member since 2006.

• International Forum for Investor Education (IFIE) member since 2009.

• International Organization of Securities Commissions (IOSCO) affiliate member since 2003.

PARTICIPATIONS

CENTRAL REGISTRY AGENCY

• 5% stake

• one seat at the board of directors, out of 8 members BORSA ISTANBUL

• 1.3% stake

• one seat at the board of directors, out of 10 members CAPITAL MARKETS LICENSING & TRAINING AGENCY

• 49% stake

• 2 seats at the board of directors, out of 7 members

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000

2010/01 2010/03 2010/05 2010/08 2010/10 2011/01 2011/03 2011/05 2011/08 2011/10 2012/01 2012/03 2012/05 2012/08 2012/10 2013/01 2013/03 2013/05 2013/08 2013/10 2014/01 2014/03 2014/06 2014/08 2014/10 2015/01 2015/03 2015/06 2015/08

Trading Volume BIST-100 (TL)

Point Mn. $

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION $)

40

Source: Borsa Istanbul 202

311

238 270

192

2011 2012 2013 2014 2015/09

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Technology

Financials Services Industrials

DOMESTIC MARKET CAPITALIZATION (2015/06, BILLION $)

42

Source: WFE

WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange.

Rank: 30th

MARKET CAPITALIZATION/GDP (2014)

Rank: 45th

NUMBER OF LISTED EQUITIES

44

Source: Borsa Istanbul

Equities: National Market, REITs, Venture Capital Investment Trusts Other Equities: Second National, Watchlist Companies, Emerging Companies Markets, Free Trade Platform

263 271 263 254 257

74 117 145 159 151

38 34 30 24 22

175

281 233

640 731

2011 2012 2013 2014 2015/09

Certificates Warrants

ETF+Inv. Trusts Other Equities Equities

NUMBER OF LISTED COMPANIES (2015/06)

Rank: 35th

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION $)

46

Source: Borsa Istanbul 424

349

431 399

288

2011 2012 2013 2014 2015/09

EQUITY TRADING VOLUME (2015/06, BILLION $)

12,583 10,1078,453 6,869 6,194 213

Shanghai Shenzhen^{BATS US}NYSE Nasdaq OMXTokyo BATS Chi-x Europe^{H. Kong} EuronextS. Korea Deutsche^TMX Spain Swiss Australia OMX NordicNSE IndiaTaiwan^Brazil S. Arabia Borsa Istanbul^ThailandJSE Singapore^{Oslo Børs}MoscowTaipei Mexico Malaysia BSE India IndonesiaTel AvivDubai PhilippinesWiener

Rank: 21th

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2014)

48

Source: WFE

Rank: 4th

CONCENTRATION IN THE EQUITY MARKET OF BORSA ISTANBUL

Market Capitalization Trading Volume

Source: Borsa Istanbul

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION $)

50

Source: Borsa Istanbul

1,610

1,639 1,613

2,878

1,624

2011 2012 2013 2014 2015/09

SHORT SELLING IN BORSA ISTANBUL

22 19 51 63 49

6% 5%

12%

16%

17%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68

Short Selling Volume (Bn. $) Share in Total Volume

FUTURES TRADING VOLUME OF BORSA ISTANBUL (BILLION $)

52

Source: Borsa Istanbul, TurkDex Security expiry transactions are included.

.

265 226 220 199 156

74

62

53

59 63

2011 2012 2013 2014 2015/09

Trading Volume (Billion. $) No. of Contracts (Million)

TRADING VOLUME IN FUTURES MARKETS (2014, BILLION $)

177

BM&FBOVESPAICE (Europe) Deutsche Börse ASX SFE DerivativesDalian CE-ChinaZhengzhou CEBorsa IstanbulCFFEX- ChinaICE (Canada)Wiener BörseMalasysia DEShanghai FELME-LondonOMX NordicMexican DEHong KongASX GroupNSE-IndiaColombiaBSE IndiaTokyo SEEuronextMontrealICE (US)MoscowWarsawTAIFEXAthensOsakaKoreaSpainLiffeOsloJSE

267275 88 Rank: 28th

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

54

Source: WFE

42

192

299

436 457

2011 2012 2013 2014 2015/09

NUMBER OF LISTED CORPORATE BONDS (2015/06)

Rank: 16th

INVESTMENT INSTITUTIONS

INVESTMENT INSTITUTIONS

102 101 100 97 96

40 41 41 43 43

Banks Brokerage Firms 142 142

141 140 139

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION $)

58

Source: Borsa Istanbul

941 932 888

521

243

76 54 75

53

2011 2012 2013 2014 2015/09

Brokerage Firms Banks 1,017 986

963

574

276

REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION $)

3,897

6,658

6,009 6,044

4,185 675

758

660 638

473 Brokerage Firms

Banks 7,416

6,669 6,682

4,572

1,6354,658

EQUITY TRADING VOLUME OF INTERMEDIARIES (BN. $)

60

Source: Borsa Istanbul 848

697

863

798

576

2011 2012 2013 2014 2015/09

FUTURES TRADING VOLUME OF INVESTMENT INSTITUTIONS (BILLION $)

453

399 395 395

322 78

53 45

Banks Brokerage Firms

9 88 65 9 88

65 529

451 440

397

324

FOREX TRADING VOLUME (BILLION $)

62

Source: TCMA

110

795

1,546

1,991

2,617

73

524

1,027

1,526

2,068

2011 2012 2013 2014 2015/09

Liquidity Provider Client

1,320

183 183

2,753

3,516

4,686

CONCENTRATION IN TRADING VOLUMES (2014)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

51+ 21-50 11-20 1-10

No. of Intermediaries No. of Intermediaries

TOP 10 MEMBERS IN THE MARKETS (2014)

64

Source: Borsa Istanbul, TCMA

Equity Market Futures Market

1 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 1 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 11%

2 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 2 TEB YATIRIM MENKUL DEĞERLER A.Ş. 11%

3 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7% 3 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7%

4 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5% 4 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 5%

5 AK YATIRIM MENKUL DEĞERLER A.Ş. 4% 5 SANKO MENKUL DEĞERLER A.Ş. 4%

6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 4% 6 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4%

7 TEB YATIRIM MENKUL DEĞERLER A.Ş. 4% 7 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 4%

8 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 4% 8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4%

9 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 DEUTSCHE SECURITIES MENKUL DEĞERLER A.Ş. 4%

10 BURGAN YATIRIM MENKUL DEĞERLER A.Ş. 3% 10 AK YATIRIM MENKUL DEĞERLER A.Ş. 3%

Total (bn. $) 798 Total (bn. $) 397

Fixed Income Market Forex Market

1 AKBANK T.A.Ş. 29% 1 GCM MENKUL KIYMETLER A.Ş. 10%

2 GARANTİ BANKASI A.Ş. 7% 2 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 9%

3 YAPI VE KREDİ BANKASI A.Ş. 7% 3 ANADOLU YATIRIM MENKUL KIYMETLER A.Ş. 9%

4 J.P. MORGAN CHASE BANK İSTANBUL 6% 4 IŞIK MENKUL DEĞERLER A.Ş. 8%

5 HSBC BANK A.Ş. 6% 5 DESTEK MENKUL DEĞERLER A.Ş. 7%

6 DENİZBANK A.Ş. 6% 6 İNTEGRAL MENKUL DEĞERLER A.Ş. 7%

7 CITIBANK A.Ş. 4% 7 ALB MENKUL DEĞERLER A.Ş. 6%

8 TÜRKİYE İŞ BANKASI A.Ş. 3% 8 BURGAN YATIRIM MENKUL DEĞERLER A.Ş. 6%

9 DEUTSCHE BANK A.Ş. 3% 9 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5%

10 TÜRK EKONOMİ BANKASI A.Ş. 3% 10 IKON MENKUL DEĞERLER A.Ş. 4%

Total (bn. $) 574 Total (bn. $) 3,516

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

49

175

284

465 433

54

47

43

63

30

95

114

34

83

72

28

32 21

14

24

16 21

14

11 Privatization

M&A

IPO&SPO-Equities Corporate Actions Other Consultancy Bond Issuance

393 409

255

644

551

INITIAL PUBLIC OFFERINGS

66

Source: Borsa Istanbul

842 362 758 320 27

27

30

19

13

5

2011 2012 2013 2014 2015/09

IPO Volume (Mn. $) No. of IPOs

PRIVATE DEBT SECURITIES ISSUES

11 23 29 30 21

58

235

330

508

444 Size of Private Debt Securities Issued (bn. $)

No. of Private Debt Securities Issued

INSTITUTIONAL INVESTMENTS (BILLION $)

68

Source: Borsa Istanbul, CMB

1 1 1 1 1

15 16

13 14 12

6

9

9 9

8 8

11

12

16

16

2011 2012 2013 2014 2015/06

Venture Capital Inv. Trusts Pension Funds Investment Trusts

REITs Fixed Income Funds Equity Funds

30

38 41

37 36

ASSET MANAGEMENT BY BROKERAGE FIRMS

1,872 2,101 2,049 2,310 1,483

1,873

2,511

2,753

2,923 2,587

Assets Under Management (Mn. $) No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

70

Source: CMB, TCMA

25,333 31,710 30,330 38,396 45,705

1,745

2,118

2,283

2,422

2,676

0 500 1,000 1,500 2,000 2,500 3,000

2011 2012 2013 2014 2015/09

Assets Under Management (Mn. $) No. of Investors

MARGIN TRADING

437 598 759 493 409

10,964

11,462

10,417

9,914

9,539 Outstanding Loan Size (Mn. $)

No. of Investors

BROKERAGE FIRMS’ BRANCH NETWORK

72

Source: TCMA

6,466

6,684

6,950 7,071

6,817 159

161

153

150

282

61

66

71

67

76

2011 2012 2013 2014 2015/09

Bank Branches Branches Rep. Offices

6,686

7,288 7,174

6,911

7,175

BROKERAGE FIRMS’ EMPLOYEES

5,093 5,258

5,480 5,657

6,139

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

74

Source: TCMA

574

610

662

2013 2014 2015/09

BANKS’ EMPLOYEES

195,271 214,226 201,453 216,912 218,006

BALANCE SHEET OF BROKERAGE FIRMS (MILLION $)

76

Source: TCMA

3,868

5,847 6,085 6,076

4,544 4,261

6,416 6,566 6,503

4,898

1,466 1,711 1,566 1,572

1,298

2011 2012 2013 2014 2015/09

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION $)

694

626

733

809

510 529

182

70

119

212

97 96

248

162

278

170

106 115

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES

78

Source: TCMA

62% 61% 64%

57% 63% 59%

3% 12% 4% 15% 7% 15%

8%

8% 10% 8% 7% 8%

21% 15% 18% 17% 19% 16%

21% 15% 18% 17% 19% 16%

2011 2012 2013 2014 2014/09 2015/09

Others Asset Management Corporate Finance Proprietary Trading Profits Brokerage Commissions

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION $)

150

160

141 149

162

176

153 163

145

156

145 138

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION $)

80

Source: TCMA

108 105

74 78

34 32

19 23

31 32

21 24

2013 2014 2014/09 2015/09

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES

59% 58% 58% 62%

25% 30% 30% 29%

13% 11% 12% 8%

Fund Sales Financial Advisory Discretionary Asset Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION $)

368 434 444 452

435 205

267 220 222

191 74

120

92 107

93

Equities

Fixed Income

Deposits

756 781

821

647

719

SAVINGS OF DOMESTIC INVESTORS

84

Source: BRSA, CRA, TCMA estimates

64% 63% 68% 67% 69%

31% 31% 27% 27% ^26%

5% 6% ^{6% 6% 6%}

2011 2012 2013 2014 2015/06

Equities

Fixed Income

Deposits

Total Domestic Inv. Savings as of June 2015: US$ 130 bn

15% 12% 19% 18% 23%

36% 39%

39% 36% 31%

48% 49% 42% 46% 46%

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

NUMBER OF EQUITY INVESTORS (THOUSAND)

86

Source: CRA, Takasbank

2012 2013 2014 2015/06 Domestic Investors 1,080.3 1,100.9 1,065.5 1,042.8 1,075.4 1,095.2 1,059.6 1,037.2

4.3 5.1 5.2 5.0

0.6 0.6 0.7 0.7

Foreign Investors 8.3 9.6 9.9 9.7

For. Individuals 4.8 6.0 6.2 6.1

For. Corporations 1.3 1.3 1.4 1.5

For. Institutionals 2.2 2.3 2.3 2.2

Total 1,088.6 1,110.4 1,075.4 1,052.5

Dom. Individuals Dom. Corporations Dom. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION $)

28 41 34 39 33

46

79

57 68

60 128

191

145

163

135 Privately Held Foreigners' Portfolio Domestics' Portfolio

202

237

270 311

227

SHARE OF FOREIGN INVESTORS

88

Source: CRA, Borsa Istanbul

0%

4%

8%

12%

16%

20%

24%

28%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2011 2012 2013 2014 2015/06

Share in Free Float Mcap Share in Trading Volume MCap Vol.

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES

90

Source: TCMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015/09

For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

WARRANT OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For. Institutional

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

92

Source: CRA Total corporate bond portfolio as of June 2015: US$ 16.2 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

15.9 17.2 14.5 15.6 14.5

3.0

2.8

2.8 2.8

2.8

2.7 2.7 2.8 2.8 2.9 2.9 3.0 3.0

13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5

Portfolio Size (bn. $)

Number of Investors (mn.)

PENSION FUND INVESTORS

94

Source: CRA

7.6 11.4 12.2 16.2 15.8

2.6

3.1

4.1

5.1

5.6

- 1.0 2.0 3.0 4.0 5.0 6.0

- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

2011 2012 2013 2014 2015/06

Portfolio Size (bn. $)

Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

96

Source: TCMA 0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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