Turkish Capital Markets. May 2018

Turkish Capital Markets May 2018

CONTENTS 3 Structure of the Turkish Financial Markets 16 Turkish Capital Markets Association 24 Turkish Capital Markets 43 Investment Institutions 67 Investor Profile 2

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 Istanbul Gold Exchange 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. 2015: Takasbank introduced the Electronic Fund Distribution Platform (TEFAS). Borsa Istanbul introduced new trading platform for equities (BISTECH). 2016: TCMA arbitration committees established. Türkiye Wealth Fund established 2017: Auto-enrollment in the private pension system introduced. 4

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS 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 -Turkish Appraisers Association -Banks -Brokerage Firms -Asset Management Firms -Investment Trusts -Central Registry Agency -Settlement and Custody Bank -Capital Markets Licensing and Training Agency -Investor Compensation Center -Insurance Association of Turkey -Insurance Companies -Private Pension Companies -Private Pension Funds 5

CAPITAL MARKET INSTITUTIONS IN TURKEY Capital Markets Board TCMA (SRO) Borsa Istanbul Banks Brokerage Firms Inv. Trusts Asset Mgmt. Co. Public Co. Listed Co. Licensing and Training Agency Rating Co. Ind. Audit Co. Settlement & Custody Bank (Takasbank) Central Registry Agency 6

CAPITAL MARKETS BOARD 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 o o Primary markets, Secondary markets, Investment services. 7

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 acquired a 10% share in 2015. 8

BORSA ISTANBUL The main markets and the traded securities on Borsa Istanbul are: o o o o Equity Market: Shares, rights coupons, ETFs, warrants, certificates. Debt Securities Market: Government bonds, corporate bonds, asset backed securities, Islamic bonds, repo-reverse repo transactions, Turkish eurobonds, money market. 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. Precious Metals and Diamond Market: Gold, silver, platinum and palladium. 9

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 nondeposit taking bank in 1995. Takasbank is: 10 o o o The clearing and settlement centre for Borsa Istanbul, The central counterparty (CCP) for Borsa Istanbul Futures & Options Market, 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 as well as the Borsa Istanbul Money Market. The Bank allocates the legal entity identifier codes. It operates the Electronic Fund Distribution Platform (TEFAS). It records leveraged transactions and handles collateral management as an authorized trade repository institution.

MERKEZI KAYIT ISTANBUL CSD OF TURKEY Merkezi Kayit Istanbul CSD of Turkey was established in 2001 as a private company. It 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. 11

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 143,604 (~$ 40,000) in 2018, in case of liquidation or bankruptcy of investment institutions. All investment institutions have to be a member of the Investor Compensation Centre. 12

ACTIVITIES OF INTERMEDIARIES Equity Trading* BROKERAGE FIRMS Leveraged FX trading Public Offering* Asset Management Investment Consultancy Fixed Income Trading BANKS Derivatives Trading (exc. equity-linked products for banks) *Authorized activities for Investment Banks 13

TYPES OF BROKERAGE FIRMS Market Makers Execution Brokers execution of orders from their own account by positioning their customers as counterparty minimum capital: TL 26 million. execution of orders of in the name of customers and/or their own account offering custody services minimum capital: TL 10 million. Introducing Brokers reception of orders and transfer them to other brokers minimum capital: TL 2 million. 14

ASSET MANAGEMENT COMPANIES Portfolio Management Companies Real Estate Portfolio Management Companies May establish stock, bond, balanced mutual funds Mn. capital required varies btw. TL 2 million and 10 million depending on AUM. May establish only real estate investment funds Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM. Venture Capital Portfolio Management Companies May establish only venture capital investment funds Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM. 15

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 has 223 members as of April 2018; 80 brokerage firms, 44 banks, 50 portfolio management companies, 9 securities investment trusts, 33 real estate investment trusts, and 7 venture capital investment trusts. 17

MEMBERS Investment Trusts Asset Management Firms Banks Brokerage Firms 226 232 231 222 223 46 47 48 48 49 40 46 52 50 50 43 44 43 44 44 97 95 88 80 80 2014 2015 2016 2017 2018/04 18

AIMS 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. 19

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. 20

ORGANISATION Discipline Committee Chairman (Board of Directors) Board of Auditors Secretary General Assistant Secretary General Assistant Secretary General Assistant Secretary General Research & Statistics Corporate Communications Training Legal Affairs Compliance & Surveillance Human Resources, Administrative & Financial Affairs Information Technologies Membership Affairs 21

INTERNATIONAL MEMBERSHIPS Asia Securities Forum (ASF) member since 2009. OECD International Network on Financial Education (INFE) affiliate member since 2015. International Council of Securities Associations (ICSA) member since 2006. International Forum for Investor Education (IFIE) member since 2009. International Forum for Investor Education/Asia Chapter founding member since 2010. International Organization of Securities Commissions (IOSCO) affiliate member since 2003. 22

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 23

TURKISH CAPITAL MARKETS

01-13 04-13 08-13 12-13 04-14 08-14 12-14 04-15 07-15 11-15 03-16 07-16 11-16 03-17 06-17 10-17 02-18 BIST-100 INDEX & TRADING VOLUME Point 120,000 Mn. TL 12,000 Trading Volume BIST-100 (TL) 100,000 10,000 80,000 8,000 60,000 6,000 40,000 4,000 20,000 2,000 0 0 Source: Borsa Istanbul 25

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL) 627 555 614 880 921 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul 26

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION 100% 90% 80% 70% 60% 50% Technology Financials Services Industrials 40% 30% 20% 10% 0% 2013 2014 2015 2016 2017 Source: Borsa Istanbul 27

CONCENTRATION IN THE EQUITY MARKET (MCAP) No. of Equities 100% 1-10 11-25 26-50 51-100 100+ 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2013 2014 2015 2016 2017 Source: Borsa Istanbul 28

DOMESTIC MARKET CAPITALIZATION (2017, BILLION $) Irish Wiener Warsaw Borsa Istanbul Tel Aviv Oslo Bors Philippines Santiago Mexico Saudi Arabia Malaysia Indonesia Thailand Moscow Singapore Spain Brazil Taiwan JSE Australia OMX Nordic Swiss South Korea Deutsche BSE India NSE India TMX Shenzhen Hong Kong Euronext London Group Shanghai Tokyo Nasdaq OMX NYSE Source: WFE 228 Rank: 32 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,090 6,223 10,039 22,081 WFE definition excludes investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 29

MARKET CAPITALIZATION/GDP (2017) Borsa Istanbul Dubai Kazakhstan Muscat Shenzhen Abu Dhabi Amman Mexico Wiener Warsaw Colombia Moscow Shanghai Malta Irish Brazil New Zealand Lima Indonesia Nasdaq OMX HoChiMinh Casablanca Deutsche Bahrain Tel Aviv Saudi Arabia Spain Oslo Bors Qatar Mauritius Philippines BSE India NSE India London Group Euronext Luxembourg Australia Santiago NYSE South Korea OMX Nordic Thailand Tokyo TMX Malaysia Taiwan Swiss Singapore JSE Hong Kong 27% 0% 40% 80% 120% 160% 200% Source: WFE, IMF Rank: 50 248% 257% 358% 1,302% 30

NUMBER OF SECURITIES IN THE EQUITY MARKET Real Estate/Venture Capital Investment Trusts/Funds ETF+Inv. Trusts Other Equities Equities 437 430 414 411 416 24 22 18 18 18 65 68 69 63 62 311 301 289 289 293 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul Equities: BIST Main+BIST Star Other Equities: BIST Emerging Companies, Watchlist, Pre-market Trading Platform 31

NUMBER OF LISTED COMPANIES (2017) Colombo Tehran Brazil HoChiMinh JSE Borsa Istanbul Tel Aviv Deutsche Wiener Indonesia Thailand Taipei Singapore Malaysia Taiwan OMX Nordic Euronext Shanghai NSE India Shenzhen Hong Kong South Korea Australia NYSE London Group Nasdaq OMX Spain TMX Tokyo BSE India 375 Rank: 25 0 500 1,000 1,500 2,000 2,500 3,000 3,136 3,328 3,604 3,878 Source: WFE Excluding ETFs and investment trusts 32

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL) 873 1,023 1,014 1,468 505 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul 33

EQUITY TRADING VOLUME (2017, BILLION $) Taipei Moscow Thailand Borsa Istanbul JSE Brazil Spain Taiwan OMX Nordic Australia NSE India Swiss TMX Deutsche South Korea Hong Kong Euronext London Group Tokyo BATS Chi-x Shanghai Shenzhen BATS US NYSE Nasdaq OMX 395 Rank: 22 12,302 16,140 33,407 0 2,000 4,000 6,000 8,000 10,000 34 Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, holding companies with a mere business of holding shares on the exchange. Negotiated deals are included.

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2017) New Zealand JSE Egypt Hungary Warsaw Irish HoChiMinh NSE India Oslo Bors Moscow Hong Kong Saudi Arabia TMX Thailand Swiss Australia Euronext Deutsche Brazil NYSE OMX Nordic Spain Tokyo London Group South Korea Shanghai Borsa Istanbul Taipei Shenzhen Nasdaq OMX 174% Rank: 4 227% 253% 333% Source: WFE 0% 40% 80% 120% 160% 200% 35

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL) 12,970 6,296 7,423 5,565 4,003 2014 2015 2016 2017 2018/03 Source: Takasbank 36

SHORT SELLING IN BORSA ISTANBUL 196 25% 192 188 184 180 176 172 168 Short Selling Volume (bn. TL) Share in Total Volume 164 160 156 20% 152 148 144 140 136 132 128 124 120 116 16% 17% 17% 15% 112 108 104 100 96 92 88 13% 84 80 76 72 11% 10% 68 64 60 56 52 48 44 40 5% 36 32 28 24 20 16 12 8 4 138 178 170 184 56 0 0% 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul 37

MARGIN TRADING Outstanding Loan Size (mn. TL) No. of Contracts 10,670 10,417 9,914 9,585 9,390 1,160 1,148 1,507 1,465 2,122 2013 2014 2015 2016 2017 Source: TCMA 38

FUTURES TRADING VOLUME OF BORSA ISTANBUL Futures Trading Volume (bn. TL) No. of Contracts (million) 139 100 88 59 45 435 567 580 829 280 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul, TurkDex 39

TRADING VOLUME IN FUTURES MARKETS (2017, BILLION $) Borsa Istanbul Malasysia DE BSE India JSE Spain MCX-India Moscow Nasdaq OMX Taiwan Futures Euronext Zhengzhou CE NSE-India CFFEX- China Hong Kong Dalian CE-China ICE (US) Korea Osaka LME-London Montreal ASX SFE Derivatives Deustche Boerse BM&FBOVESPA ICE (Europe) Chicago Mercantile 225 Rank: 25 64,120 74,612 413,143 1,103,634 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Source: WFE 40

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL 662 736 436 464 519 2014 2015 2016 2017 2018/03 Source: WFE 41

NUMBER OF LISTED CORPORATE BONDS (2017) Kazakhstan Brazil Lima Warsaw Shenzhen Colombia Borsa Istanbul Tel Aviv Swiss Hong Kong Taipei Moscow Buenos Aires JSE Oslo Bors Wiener Spain Shanghai NSE India Euronext OMX Nordic Irish London Group BSE India South Korea 662 Rank: 19 5,026 5,321 5,690 6,469 6,702 7,696 Source: WFE 0 1,000 2,000 3,000 4,000 5,000 42

INITIAL PUBLIC OFFERINGS 13 IPO Volume (mn. TL) No. of IPOs 6 6 3 2 3,040 714 119 343 1,254 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul 43

EQUITY FINANCING 6,000 Rights Issue SPO + Wholesale 5,000 IPO 5,063 4,000 3,000 3,556 3,331 3,809 3,589 549 2,000 2,660 1,966 2,148 1,000 0 3,040 1,645 183 1,245 1,254 714 159 119 343 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul Only capital increases at the wholesale market are taken into account. 44

CORPORATE DEBT SECURITIES ISSUANCE Size of Corporate Bonds Issued (bn. TL) 1,217 No. of Corporate Bonds Issued 760 621 517 399 66 80 90 130 46 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul 45

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL) 1,257 117 1,059 1,308 184 1,223 196 Brokerage Firms Banks 117 1,635 1,141 942 1,125 1,027 345 57 288 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul Excluding Central Bank and Takasbank. 47

REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Brokerage Firms Banks 16,315 14,626 1,614 14,877 1,397 1,331 13,229 14,700 13,546 7,354 1,177 6,177 954 284 671 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul Excluding Central Bank and Takasbank. 48

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Banks Brokerage Firms 2,936 163 1,746 2,045 2,027 2,773 1,011 96 915 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul 49

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Banks Brokerage Firms 1,658 31 1,135 1,160 4 6 869 5 1,628 865 1,131 1,154 560 14 545 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul, TurkDex 50

FOREX TRADING VOLUME (BILLION TL) Liquidity Provider 21,850 Client 17,005 9,604 7,459 7,693 8,578 3,340 9,546 12,245 3,912 4,353 4,667 1,650 743 907 2014 2015 2016 2017 2018/03 Source: TCMA 51

CONCENTRATION IN TRADING VOLUMES (2018/03) No. of Intermediaries 51+ 21-50 11-20 1-10 17% 25% 7% 20% 12% 11% 21% 22% 61% 66% 70% 74% Equity Fixed Income Futures Forex Source: Borsa Istanbul, TCMA 52

TOP 10 MEMBERS IN THE MARKETS (2018/03) Equity Market Futures Market 1 MERRILL LYNCH YATIRIM BANK A.Ş. 9% 1 IS YATIRIM MENKUL DEGERLER A.S. 13% 2 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 8% 2 GARANTI YATIRIM MENKUL DEGERLER A.S. 12% 3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 3 TEB YATIRIM MENKUL DEGERLER A.S. 11% 4 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 4 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 8% 5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 AK YATIRIM MENKUL DEGERLER A.S. 7% 6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 6% 6 DENIZ YATIRIM MENKUL KIYMETLER A.S. 5% 7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 FINANS YATIRIM MENKUL DEGERLER A.S. 5% 8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 8 A1 CAPITAL MENKUL DEGERLER A.S. 4% 9 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 GEDIK YATIRIM MENKUL DEGERLER A.S. 4% 10 MARBAŞ MENKUL DEĞERLER A.Ş. 4% 10 TACIRLER YATIRIM MENKUL DEGERLER A.S. 3% Total (bn. TL) 1,011 Total (bn. TL) 560 Fixed Income Market Forex Market 1 AKBANK T.A.Ş. 14% 1 AK YATIRIM MENKUL DEĞERLER A.Ş. 15% 2 TÜRKİYE GARANTİ BANKASI A.Ş. 10% 2 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 11% 3 HSBC BANK A.Ş. 7% 3 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 10% 4 YAPI VE KREDİ BANKASI A.Ş. 6% 4 GCM MENKUL KIYMETLER A.Ş. 9% 5 TÜRKİYE İŞ BANKASI A.Ş. 6% 5 ŞEKER YATIRIM MENKUL DEĞERLER A.Ş. 7% 6 TÜRK EKONOMİ BANKASI A.Ş. 5% 6 IŞIK MENKUL DEĞERLER A.Ş. 6% 7 AK YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 6% 8 DEUTSCHE BANK A.Ş. 5% 8 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5% 9 JPMORGAN CHASE BANK NATIONAL ASSOCIATION M 4% 9 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 5% 10 FİNANSBANK A.Ş. 4% 10 İNFO YATIRIM MENKUL DEĞERLER A.Ş. 2% Total (bn. TL) 345 Total (bn. TL) 1,650 Source: Borsa Istanbul, TCMA 53

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY) Other Financing Privatization M&A IPO&SPO-Equities Corporate Actions 883 1,222 15 80 97 Other Consultancy Bond Issuance 409 21 21 34 43 644 14 14 83 63 465 746 6 11 87 34 608 2 15 72 90 702 1,020 284 2013 2014 2015 2016 2017 Source: TCMA 54

INSTITUTIONAL INVESTMENTS (BILLION TL) Venture Capital Inv. Trusts Investment Trusts Mutual Funds 108 94 1.3 1.5 21 22 0.3 0.3 48 38 33 37 REITs Pension Funds 128 1.1 24 0.3 58 44 176 169 2.1 2.6 25 27 0.3 0.4 80 83 59 64 2014 2015 2016 2017 2018/03 Source: Borsa Istanbul, TCMA 55

ASSET MANAGEMENT BY BROKERAGE FIRMS Assets Under Management (mn. TL) No. of Investors 4,102 3,696 2,753 2,923 2,649 4,366 5,375 1,267 1,341 1,904 2013 2014 2015 2016 2017 Source: TCMA 56

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES 4,000 Assets Under Management (mn. TL) No. of Investors 3,500 3,000 2,688 3,082 3,344 2,500 2,000 2,168 2,277 1,500 1,000 500 0 64,828 81,848 100,995 121,666 158,127 2013 2014 2015 2016 2017 Source: CMB, TCMA 57

BROKERAGE FIRMS BRANCH NETWORK Bank Branches Branches Rep. Offices 7,174 7,288 71 67 153 150 6,162 76 323 8,666 8,723 59 41 310 291 6,950 7,071 5,763 8,297 8,392 2013 2014 2015 2016 2017 Source: TCMA 58

BROKERAGE FIRMS EMPLOYEES 5,480 5,657 6,632 6,478 4,751 2013 2014 2015 2016 2017 Source: TCMA 59

ASSET MANAGEMENT COMPANIES EMPLOYEES 698 720 735 615 2014 2015 2016 2017 Source: TCMA 60

BANKS EMPLOYEES 214,226 216,912 217,504 210,886 208,280 2013 2014 2015 2016 2017 Source: BRSA 61

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL) Current Assets Total Assets Shareholders' Equity 20.1 21.2 21.9 23.1 13.0 14.0 15.1 15.3 14.1 14.2 3.3 3.7 4.0 4.3 4.7 2013 2014 2015 2016 2017 Source: TCMA 62

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL) Total Revenues Operating Profit Net Profit 2,510 2,001 2,175 1,394 1,587 774 799 226 529 372 433 483 281 301 332 2013 2014 2015 2016 2017 Source: TCMA 63

BREAKDOWN OF BROKERAGE FIRMS REVENUES (MILLION TL) Brokerage Commissions Proprietary Trading Profits Corporate Finance Asset Management Others 2,510 1,394 257 133 52 895 1,587 308 136 78 1,017 2,001 360 170 89 1,332 2,175 485 358 240 164 106 302 1,511 1,435 2013 2014 2015 2016 2017 Source: TCMA 64

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL) Current Assets Total Assets Shareholders' Equity 698 740 664 373 410 365 472 507 456 571 609 552 2014 2015 2016 2017 Source: TCMA 65

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL) Total Revenues Operating Profit Net Profit 439 296 347 230 165 165 65 70 88 91 105 111 2014 2015 2016 2017 Source: TCMA 66

BREAKDOWN OF ASSET MANAGEMENT COMPANIES REVENUES (MILLION TL) 500 450 400 350 300 250 200 Discretionary Asset Mgmt. Financial Advisory Pension Fund Mgmt. 229 25 1 Fund Sales Investment Trust Mgmt. Mutual Fund Mgmt. 294 22 4 91 337 20 4 99 434 24 4 121 150 100 50 69 134 177 211 282 0 Source: TCMA 2014 2015 2016 2017 Eksen Başlığı 67

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL) 2,800 2,901 355 Equities 2,327 247 Fixed Income 1,856 195 2,045 249 555 226 574 627 734 Deposits 500 1,053 1,245 1,453 1,711 1,777 2014 2015 2016 2017 2018/03 Source: BRSA, CRA, TCMA estimates 69

SAVINGS OF DOMESTIC INVESTORS 6% 5% 5% 5% 6% Equities 28% 28% 27% 26% 26% Fixed Income Deposits 66% 67% 69% 68% 68% 2014 2015 2016 2017 2018/03 Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of 2018/03: TL 2.4 trillion 70

SAVINGS OF FOREIGN INVESTORS Equities 46% 44% 45% 48% 47% Fixed Income Deposits 36% 30% 28% 25% 24% 18% 26% 27% 27% 29% 2014 2015 2016 2017 2018/03 Source: BRSA, CRA, TCMA estimates Total Foreign Investors Savings as of 2018/03: TL 503 bn 71

NUMBER OF EQUITY INVESTORS Number of Equity Investors (thou.) 2014 2015 2016 2017 2018/03 Domestic Investors 1,065.5 1,049.2 1,031.3 1,081.3 1,103.7 Dom. Individuals 1,059.6 1,043.5 1,025.9 1,076.1 1,098.3 Dom. Corporations 5.2 5.0 4.7 4.6 4.7 Dom. Institutionals 0.7 0.7 0.7 0.7 0.8 Foreign Investors 9.9 9.8 9.5 9.6 9.6 For. Individuals 6.2 6.2 6.2 6.2 6.3 For. Corporations 1.4 1.5 1.4 1.5 1.5 For. Institutionals 2.3 2.1 1.9 1.9 1.9 Total 1,075.4 1,059.0 1,040.8 1,090.9 1,113.3 Source: CRA 72

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL) Privately Held Foreigners' Portfolio Domestics' Portfolio 921 880 627 555 614 553 525 378 329 368 232 121 159 141 157 73 90 85 89 123 2014 2015 2016 2017 2018/03 Source: CRA, Borsa Istanbul 73

SHARE OF FOREIGN INVESTORS MCap Vol. 80% Share in Free Float Mcap (left) Share in Trading Volume (right) 32% 70% 28% 60% 24% 50% 20% 40% 16% 30% 12% 20% 8% 10% 4% 0% 2014 2015 2016 2017 2018/03 0% Source: CRA, Borsa Istanbul 74

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% 50% 40% For. Other For. Corporation For. Individual Dom. Other Dom. Corporation Dom. Individual 30% 20% 10% 0% 2014 2015 2016 2017 2018/03 Source: CRA Total equity portfolio as of 2018/03: TL 368 bn 75

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES * 100% 90% 80% 70% 60% For. Institutional For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Institutional Dom. Corporation Dom. Individual 0% 2013 2014 2015 2016 2017 Source: TCMA *Brokerage firms only 76

NUMBER OF CORPORATE BOND INVESTORS Number of Corporate Bond Investors 2014 2015 2016 2017 2018/03 Domestic Investors 136,441 135,690 96,771 81,865 75,233 Dom. Individuals Dom. Corporations 132,132 131,798 93,217 78,954 73,107 3,601 3,197 2,886 2,292 1,513 708 695 668 619 613 Dom. Institutionals Foreign Investors 1,384 1,066 705 622 634 For. Individuals For. Corporations For. Institutionals 1,330 1,034 677 594 608 36 24 25 24 22 18 8 3 4 4 Total 137,825 136,756 97,476 82,487 75,867 Source: CRA 77

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% For. Other For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Other Dom. Corporation Dom. Individual 0% 2014 2015 2016 2017 2018/03 Source: CRA Total corporate bond portfolio as of 2018/03: TL 74.9 bn. 78

MUTUAL FUND INVESTORS 70.0 60.0 Portfolio Size (bn. TL) Number of Investors (mn.) 3.0 3.0 3.1 3.0 50.0 2.9 2.9 2.9 40.0 30.0 2.8 2.8 20.0 2.7 10.0 2.6-36.2 38.9 45.1 56.4 61.5 2014 2015 2016 2017 2018/03 2.5 Source: CRA 79

PENSION FUND INVESTORS 90.0 80.0 70.0 Total Portfolio Size (bn. TL) Portfolio Size (bn. TL) Number of Investors (mn.) 10.3 3.5 PP 7.0 AE 3.8 3.5 12.0 10.0 60.0 50.0 40.0 5.1 6.0 6.6 77.8 80.7 8.0 6.0 30.0 60.8 4.0 20.0 10.0 37.6 48.0 2.0-2014 2015 2016 2017 2018/03 - Source: PMC PP: Private pension schemes AE: Auto-enrolment Portfolio size includes government contributions. 80

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES* 100% 90% 80% 70% 60% 50% 40% 30% For. Institutional For. Corporation For. Individual Dom. Institutional Dom. Corporation 20% 10% Dom. Individual 0% 2013 2014 2015 2016 2017 Source: TCMA *Brokerage firms only 81

FOREX TRADING VOLUME OF BROKERAGE FIRMS 100% For. Institutional 80% For. Corporation 60% For. Individual 40% Dom. Institutional Dom. Corporation 20% Dom. Individual 0% Source: TCMA 2013 2014 2015 2016 2017 82

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