2. 1
Performance & Financial About Us
Results – 9M12
Turkish Capital Markets
Our Performance
Financial Results
Expectations
3. About Us 2
Shareholder Structure Subsidiaries*
IS Private Equity: (Share: 29.1%) ISGSY
Turkey’s largest Private Equity company and listed since 2004; 22.87% IRR
Free Float (Internal Rate of Return) on USD basis from 9 exits
28%
IS Investment Trust (Share: 26.5%) ISYAT
Turkey’s leading Investment Trust; listed since 1996, represents more than
one third of the sector with its TL 275mn portfolio
İş Bank & İş
Bank Group IS Asset Management: (Share: 70.0%)
C ompanies Turkey’s leading portfolio management company managing mainly IS Group
72% funds, represents more than 20% of the fund market with its TL11.9bn AuM
Maxis Securities: (Share: 100.0%)
London headquartered B Group capital markets licensed subsidiary
Credit Rating
IS Investment Gulf: (Share: 100.0%)
‘AAA(tur)’ The first investment house that has a Established in Dubai to focus on corporate finance, mainly M&A activities
credit rating in Turkey Camiş Online: (Share: 99.8%)
Corporate Governance Rating Turkey’s one of the long-established brokerage houses
‘AAA (Trk)/Distinctive’ The only investment house Efes NPL Asset Management: (Share: 74.0%)
that has a corporate governance rating in Turkey Aims to manage mainly banks’ NPLs
Awards * Current structure
Euromoney
2011&2010 Best Investment Bank in Turkey Business Lines
2009 Best M&A House in Turkey
2008&2007 Best Equity House in Turkey • Brokerage & Trading
EMEA Finance • Investment Advisory
2011 Best Investment Bank / Best Broker in Turkey • Asset Management
2010 Best Investment Bank in Turkey
• Corporate Finance
FT/Mergermarket
2010 Financial Advisor of the Year in Turkey • Research
4. 3
Performance & Financial About Us
Results – 9M12
Turkish Capital Markets
Our Performance
Financial Results
Expectations
5. Turkish Capital Markets Trading Volume* 4
Equity Market (In TL Billion) Derivatives Market (In TL Billion)
1400 900
800
1200
700
1000
600
800 500
600 400
1.137 670
891 300 592
400
200
200 100
0 0
2011/9 2012/9 2011/9 2012/9
Source: ISE Source: TurkDEX
Trading volume of the equity market decreased 22% with
Derivative market was negatively affected by the poor
respect to the same period of 2011 in parallel with the
volume of the equity market
global markets’ performance
* Market transactions by members
6. Turkish Capital Markets Trading Volume* 5
Bills & Bonds Market (In TL Billion) Securities L/B Market (In TL Billion)
1000 6
800 5
4
600
3
400 793
4,6
2 (9)% 4,2
542
200
1
0 0
2011/9 2012/9 2011/9 2012/9
Source: ISE Source: Settlement Bank
Lower interest rates caused 32% decrease at fixed income market when compared to same period of 2011; deposit banks’
bond IPOs also had a negative effect as they are mostly held till the maturity
* Market transactions by members
7. Turkish Capital Markets IPOs 6
Equity IPO Debt Instruments IPO
Billion TL
Billion TL 30 28,3 90
5 28
80
25
4 70
25
3,109 20 17,8 60
24,5
3 50
23
15
22 11,6 40
2 22
21 10 30
1,303
1,229
20
1 0,5 5
1,9 10
0,1 0,0 0,2 0,0
0 17,5 0 0
2010 2011/9 2011 2012/9 2006 2007 2008 2009 2010 2011/9 2011 2012/9
Total Revenue # Firms Went Public (Right axis) Nominal Value # Debt Instruments (Right axis)
Source: ISE Source: ISE
Although the number of IPOs in 9M12 is almost same as The total IPO size of the debt instruments have already
2011 year-end number, the total size is only 37% exceeded the total size of 2011
8. Turkish Capital Markets Asset Management 7
Asset Management (In TL Billion)
50
50 Mutual Funds
Pension Funds 45
45
40
40
35 35
28,7
30 30 31,6
33,7 29,1
25 25
20 20
15 15
10 10
14,5 18,5
5 12,0 14,3
5
0
0
2010 2011
2011/9 2012/9
Source: CMB & IS Asset Management
Pension funds grew 29% when compared to 9M11 and this steady growth path is expected to continue
in the forthcoming periods with an ascending contribution of the new pension fund regulation
9. 8
Performance & Financial About Us
Results – 9M12
Turkish Capital Markets
Our Performance
Financial Results
Expectations
13. Our Performance 12
Corporate Bonds IPO - Size and Market Share
TL Billion
25%
30
IS Investment
25 Other 7,0
29%
20
15 5,1
32%
10 21,3
3,7
12,7
5 25%
7,9
0,4
0 1,5
2010 2011/9 2011 2012/9
Source: ISE
We completed 18 corporate bond IPOs with a market share of 25% in the first 9 months of the year
14. Our Performance 13
Securities Lending/Borrowing Market
TL Million TL Million
2000 8 2 1 1 1 1 45% 1600 36%
33,0%
1800 37,9% 40% 32%
1400
1600 35% 28%
1200 23,6%
1400
26,9% 30% 24%
1200 24,9% 1000
24,3%
25% 20%
1000 800
20% 1.395 16%
800 1.555
1.421 600
11,5% 1.340 15% 1.090 12%
600
10% 400
400 8%
4,1% 719
200 5% 200 4%
64 324
0 0% 0 0%
2006 2007 2008 2009 2010 2011 2011/9 2012/9
Volume Market Share (% - Right axis) Rank Volume Market Share (Right axis)
Source: ISE Settlement and Custody Bank Inc.
& IS Investment
We continue to be the most active institution in the market
15. Our Performance 14
Equity Margin Trading
TL Million
TL Million
900
IS Investment 826
160
800 Total Market 736
140
700
120
600
492 100
500 468
80 164,1
400
140,0
300 254 60
200 139 40
100 45 64 60 20
34
0 0
2007 2008 2009 2010 2011 2011/9 2012/9
Source: IS Investment, TSPAKB
Our equity margin trading size, which decreased just because of the lower trading volume of equity market,
still represents 17% of the market
16. Our Performance 15
International Capital Markets
USD Millioın Thousands USD Million Thousands
30000 1400 900 1.200
26.773
1.179 800
25000 1200 961 1.000
700
1.025 1000
20000 18.145 600 800
800 500
15000 707 593 600
600 400 769
10000 300 629 644 400
400
391
200
5000 2.640 2.904 2.733 2.782 200 291 200
2.060 100
71 885 1.015
259 517 882 780 605 779
220
0 0 0 0
2004 2005 2006 2007 2008 2009 2010 2011 2011/9 2012/9
Fixed Income Equity # Der. Contracts (Right Axis) Fixed Income Equity # Der. Contracts (Right Axis)
Source: IS Investment
Leveraged FX trading lead the international capital market transactions with an average market share
of 25-30%
17. Our Performance 16
Assets Under Management
Billion TL
Mutual Funds* 14
Pension Funds
12
Other Funds**
Repres ents
10 23.7% of the
6,8 market
6,9 6,8
8 7,9
6 Repres ents 20%
of the total
pens ion funds
4 3,7
2,8 2,8
2,4
2
1,6 1,9 2,2 2,3
0
2010 2011 2011/9 2012/9
Source: IS Investment & IS Asset Management
AuM size reached TL 12.8 billion surging by 9% on annual basis, while pension funds which takes
larger portion of our portfolio management commissions, grew by 32% y-o-y
* Mutual funds includes A and B type funds, ETFs.
** Other funds includes portfolios of private asset management, alternative investment products management, Turkishfund (SICAV) and portfolio of IS Investment Trust
18. 17
Performance & Financial About Us
Results – 9M12
Turkish Capital Markets
Our Performance
Financial Results
Expectations
19. Financial Results Consolidated 18
IS Investment - Consolidated
9M11 9M12 YoY (%)
TL (000)
Total Assets 3,647,176 3,643,744 -
Shareholders' Equity 391,887 440,790 12
Net Profit 42,671 52,802 24
TL Million ROAE
4.000 22,5% 24%
3.644
3.500 19,4%
17,9% 18,2% 3.063 20%
3.000 2.686
2.539 15,0%
16%
2.500 13,5%
2.000 12%
1.569
1.500 1.241
8%
1.000
375 400 441 4%
500 244 268 329
67,5 64,2 52,4 62,5*
38,4 45,9
0 0%
2007 2008 2009 2010 2011 2012/9
Total Assets Shareholders' Equity Net Profit ROAE
* Income trailing (last 4 quarters’ net income)
Despite the poor trading volumes in the market especially in the 3rd quarter of 2012, we managed to increase our 9M12
net profit 24% with respect to the same period of 2011
20. Financial Results Consolidated Net Profit 19
TL Million
70
9M
60 Full Year
50
40
67,5 ?
64,2
30
55,4 52,4 52,8
45,9 46,0
20 42,7
38,4 36,8
24,5
10
0
2007 2008 2009 2010 2011 2012
In the first 9 months of the year, we achieved to reach 2011 full-year net profit
21. Financial Results Consolidation Effect 20
Consolidated Net Profit = [IS Investment Solo Net Profit + Contributions from Subsidiaries] – Elimination Adjustments
Net Profit in TL 9M11 9M12 YoY (%)
IS Investment Solo Net Profit IS Investment Only 36,837,252 44,041,171 20
IS Investment Trust (548,955) 9,540,834 NA
Contributions from Subsidiaries IS Private Equity 10,809,180 9,365,437 (13)
Other Subsidiaries
3,694,729 3,649,016 (1)
(Mainly IS Asset Management)
Elimination Adjustments Elimination Adjustments* (8,121,012) (13,794,692) 70
Consolidated Net Profit Consolidated Net Profit 42,671,194 52,801,766 24
* Dividend and revenue elimination with subsidiaries
22. Financial Results Breakdown of Operating Revenues 21
Breakdown of Revenues
9M11 9M12 YoY (%)
(TL 000)
Interest and Trading Income* 84,000 121,541 45
Commission Revenues** 83,229 94,746 14
Total Operating Revenues 167,229 216,287 29
Operating Revenues – 9M11 Operating Revenues – 9M12
Interest and
Trading
C ommission Interest and Income
C ommission
Income Trading TL 216.3mn 56%
TL 167.2mn Income
50% Income
44%
50%
* Considerable contribution from our subsidiaries to the interest & trading income
** Client based leveraged FX trading revenues, which is added to the commission revenues, can be seen under interest & derivative income at footnote 27.
Despite the volatile environment, our operating revenues kept increasing thanks to our
diversified revenue structure
23. Financial Results Breakdown of Commissions 22
Commission Revenues
9M11 9M12 YoY (%)
(TL 000)
Brokerage* 59,720 70,579 18
Corporate Finance 5,250 5,669 8
Asset Management 17,419 17,492 -
Other Commissions 840 1,007 20
Total 83,229 94,746 14
Commission Income – 9M11 Commission Income – 9M12
Other Other
C ommissions C ommissions
1% 1%
Asset
Asset
Management
Management
18%
21%
Brokerage
C orporate TL 83.2mn C orporate TL 94.7mn 75%
Finance Brokerage Finance
6% 72% 6%
* Leveraged FX trading revenues are added to the brokerage income
Despite the unfavourable market conditions, brokerage revenues performed well owing to be active in
both domestic and international markets
24. Financial Results Breakdown of Operating Expenses 23
Operating Expenses
9M11 9M12 YoY (%)
(TL 000)
Marketing, Sales and Distribution Expenses 16,588 22,552 36
General Administrative Expenses 88,487 108,936 23
Other Operating Expenses 1,764 2,255 28
Total 106,839 133,744 25
Operating Expenses – 9M11 Operating Expenses – 9M12
Other
Other Exp.
Exp.
2%
2%
Marketing Marketing
Exp. Exp.
15% 17%
TL 106.8mn TL 133.7mn
Adm.
Exp. Adm. Exp.
83% 81%
25. Financial Results Price Performance 24
ISMEN Mcap ISMEN Price Performance
TL Millions 700
600 ISMEN
522 600
486 ISE 100
500
500
400 353 361
325 400
300
300
200
100 200
100
100
0
0
ISMEN was selected to
ISMEN increased 497% since the beginning of 2009
• ISE Dividend Index (XTMTU)
beating ISE 100 by 120%, while increased 40% year to
• ISE Dividend 25 Index (XTM25)
date
• ISE Corporate Governance Index (XKURY)
26. 25
Performance & Financial About Us
Results – 9M12
Turkish Capital Markets
Our Performance
Financial Results
Expectations
27. Expectations 26
Corporate finance
Equity:
– We have mandates still watching a recovery in the stock markets both in domestic and global.
Corporate Bonds:
– After a significant performance in 2011, we have a number of mandates from various sectors with different size in 2012.
– IS Bank (TL 7.8bn), ING Bank (TL 450mn), IS Leasing (TL 100mn), IS Investment (TL 200mn), Alternatifbank (TL 150mn),
Creditwest (TL 50mn), Koç Fiat (TL 50mn), Boyner Holding (TL 100mn).
– We have new mandates.
Actively intermediating leveraged FX trading with a remarkable market share of 26-30%.
TradeMaster has been upgraded – investors are able to make leveraged FX trading via TM FX 24-hour/ 5 business day.
Prime brokerage service is still going up; new funds are in the pipeline.
New products: Single stock futures and options are going to be traded on the ISE.
New capital market law is expected to be approved by the Parliament till the end of the year.
IS Asset Management is estimated to benefit from new pension fund regulation which will be in force as of 2013.
Positive contribution from subsidiaries is expected to continue in the last quarter.
28. Investor Relations 27
Mr. Mert Erdoğmuş
Deputy CEO
Phone : +90 0212 350 24 12
Fax : +90 0212 350 20 01
E-mail : merdogmus@isinvest ment.com
The Investor Relations Department is responsible for the timely
Mr. Ozan Altan communication of necessary, accurate, complete,
Head of IR comprehensible and easily accessible information and
explanations, which are not considered to be trade secrets to its
Phone : +90 0212 350 28 72
shareholders and stakeholders.
Fax : +90 0212 350 20 01
E-mail : oaltan@isinvestment.com http://www.isinvestment.com/wwa_ir_new.aspx
Mr. Alper Alkan
Associate
Phone : +90 0212 350 25 22
Fax : +90 0212 350 20 01
E-mail : aalkan@isinvestment.com
29. Disclaimer 28
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.
30. IS Investment 29
İ ş Kuleleri Kule-2 Kat:12
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MA XIS SECURITIES LTD IS INVESTMENT GULF LIMITED
8 P rinc es Street D ubai I nternational Financial Centre
SUBSIDIA RY L ondon E C 2R 8 H L U NITED KI NGDOM SUBSIDIA RY The Gate Village, Building 04, Lev el 1, Units 7 & 8
T : +4 4 2 0 7 3 97 1 431 PO Box 482079 Dubai, UAE
T: (+971) 555777726
