2011 Third Quarter 1 B RIEFLY AKTIF BANK Chairman CEO Ahmet ÇALIK Dr. Önder HALİSDEMİR Year of Establishment Shareholding Structure Date of Re-structuring 1999 100% affiliate of Çalık Holding Started in 2007 Total Assets* (mio USD) Equity* (mio USD) 1.337 140 (123% increase in 2 years time) Revenue* (mio USD) 90.6 Net Profit* (mio USD) 27 ROA* 2.76% ROE* 26.6% Number of Employees* 380 Number of Branches* Number of Sales Points* Network of Correspondent Banks* Ratings* SWIFT 7 4 thousand 446 banks in 87 countries A National / BB International (JCR) CAYTTRIS Reuters Web Adress AKTS www.aktifbank.com.tr * As of September 30, 2011 2 2 F Summary Financials IGURES RAPID AND HIGH QUALITY GROWTH Aktif Bank’s Rank Among Turkish Banks Asset Size Growth 1.333.065 2007 2008 2009 2010 956,915 September 2011 26 29 33 383,905 36 95,575 165,797 41 2007 3 2008 2009 2010 2011 Q3 3 F Summary Financials IGURES RAPID AND HIGH QUALITY GROWTH WITH ONE OF THE LOWEST NPL IN THE BANKING SECTOR Loan Growth & NPL Ratio (Total) USD thousands Loan Growth & NPL Ratio (Retail) 788,925 347,022 336 2007 470,318 2008 2009 63,057 2010 2011 Q3 NPL : 0.00% NPL : 0.00% NPL : 0.00% NPL : 0.01% NPL : 0.13% Loan Growth & NPL Ratio (Corporate) USD thousands 197,545 64,866 407,261 440,749 197,209 80,101 64,866 80,101 2007 NPL : 0.00% 4 2008 NPL : 0.43% 2009 NPL : 0.57% 2010 NPL : 0.76% 2011 Q3 NPL : 0.43% 2007 2008 NPL : 0.41% 2009 2010 2011 Q3 NPL : 0.34% NPL : 0.59% NPL : 0.88% NPL : 0.67% 4 F Summary Financials IGURES Revenues Net Profit USD thousands USD thousands 27,269 22,707 90,688 69,524 2,285 1,053 2007 2008 6,182 2009 2010 2011 Q3 Shareholders’ Equity 31,246 11,473 15,037 108,502 113,361 138,474 140,235 55,293 2007 2008 2009 2010 2011 Q3 2007 5 2008 2009 2010 2011 Q3 5 F Summary Financials IGURES BECOMING A REPUTABLE GLOBAL ACTOR Number of Correspondents Funds Borrowed 446 87 Countries Million USD 287 320 220 226 169 100 65 29 2007 6 48 2008 2009 2010 2011 Q3 2007 2008 2009 2010 2011 Q3 6 F IGURES NPL Ratio AKTİF BANK : THE MOST EXTRAORDINARY BANK OF TURKEY Financial Leverage Ratio 4.0% 8.6% 9.5% 2.7% 7.4% 6.9% 1.0% 0.4% 2011 September 2010 Turkish Banking Sector 2011 September Aktif Bank Turkish Banking Sector 26.6% 13.7% 1.6% 2.8% ROA Turkish Banking Sector * As of 30 September 2011 7 2010 ROE Aktif Bank Aktif Bank NEW GENERATION BANKING MODEL DIRECT REGIONAL CITY ANKING Retail 8 Corporate Investment International 8 B DIRECT REGIONAL CITY ANKING DIRECT BANKING Instead of investing in branch network, we provide technology-based products regardless of time and location constraints with convenient and attractive prices. REGIONAL BANKING CITY BANKING To expand trade relations as a financial actor in Balkans, the CIS and the Middle East To provide customized financial & non-financial products and services for the different needs of the cities Synergies with our foreign based subsidiaries Concentration centers in Branchless banking model Growing with new subsidiaries in the region Online integration with the Post Offices To be role model for other countries “Shop in Shop” concept the cities Proper alternative distribution channels for operational and financial infrastructure of the city Corporate and investment products for the municipalities and local businesses 9 9 Aktif Bank Has The Widest Distribution Network Without Branches Physical Channels Turkish Post Offices (PTT) 4.200 points in Turkey Aktif Bank Web Page and City Portals in Turkey Merchant Channel Network 800 points in 10 cities Product Web Sites in Turkey Aktif Kiosks 42 locations in 6 cities Internet Banking in Turkey and Albania Branches 7 in 7 cities Mobile Banking and Mobile City Applications in Turkey and Albania E-POS 10.000* * Projected 101 Electronic Channels Dealer Portals in Turkey Call Center in Turkey and Albania 10 Aktif Bank’s Retail Banking Innovations 11 1 11 Aktif Online Platform Full Online Integration With Post Offices Cash Collection Loan Collection Bond Billing Collection The first and the only online-realtime Card Collection platform between bank networks and Turkish Post Office. Cash Withdrawal Loan Payment Cash Withdrawal 4.200 points, including 1.200 locations where there are no bank branches. Financial Products 121 Widest physical distribution channel via Credit Application Account Opening Application Card Application Money Transfers (UPT) Regular Transfer Instructions Other Company Products Quick product and service deployment. 12 Aktif Online Platform We Are The First And The Only Bank Offering End To End Banking Products And Services Through PTT Loan: Personal Loan for PTT for Payroll Customers Personal Loan for PTT Employees Bond: Aktif Bond Money Transfers: TL/USD/EURO UPT (Universal Payment Transfers) Insurance: Loan Related Life Insurance Payments: Bill Payments Dealer Payments Financial World Innovation Awards 2011 Finalist 131 13 Loan Products - “PTT Credit” Loans through PTT Branches Aktif Bank collaborates with Turkish Post Office (PTT) and offers consumer loans to the PTT payroll customers and PTT employees. Given sufficient funding, accessing these 2.500.000 payroll customers and 37.000 PTT employees with secured, collateralized retail loans offers has a sales potential of USD 2 billion Figures 2011 Q3 Number of PTT Credit 21.284 92.745 Number of Customers 20.520 80.704 USD 53 m USD 348 m Transaction volume 141 End of 2010 14 Loan Products - “Dealer Credit” Loans through Dealers and ADCs Aktif Bank has become the market leader in consumer finance for furniture, heating and energy systems sectors in 18 months. Many national and global brands such as Doğtaş, Kelebek, İstikbal have become credit sales points for Aktif Credit. Aktif Bank’s Dealer Credit System - Kreaktif is used at more than 1.000 dealers around Turkey. Figures 2011 Q3 Number of Credit 3.583 16.721 Number of Customers 3.527 16.514 USD 8 m USD 28 m Transaction volume 151 End of 2010 15 K 2 P REAKTIF LOAN FACTORY INSTANT CREDIT DECISION Our dynamic and measurable loan factory includes flexible workflows and has high integration capability with different channels such as dealer, web, SMS and branch banking. Business Rule Management System integrated to loan factory produces loan decision in seconds. Other components of factory are: Verification Module Fraud Module User-friendly screens Smart Application Fields Dynamic Matrix Online Web Services Collateral, Document Management Reporting and Monitoring System 16 16 ‘Universal Payment Transfer Platform’ PRODUCTS Domestic Transfers International Transfers Internet Transfers and Payments 17 17 Universal Payment Transfer Platform We Are Completing Step By Step The World's Most Flexible And Widest Platform By Bringing Together Physical And Virtual Channels Universal Payment Transfer Platform; Upt is an integrated online payments and transfers platform with physical cash acceptance and payment points. Starting from domestic transactions in Turkey, UPT is enlarging into international transfers and Internet payments area. 181 18 UPT Domestic Transfers ‘UPT” is the Cheapest and Most Common Money Transfer Program in Turkey UPT is unique Only program in Turkey for transfers between post offices and the banks. UPT Is Competitive And Profitable Without any branch overhead, it is possible to price the product well below the market UPT Is Easy Anyone can use UPT even when they are not a bank customer UPT Is Widespread 4.200 Turkish Post Offices, over 8.800 bank branches, telephone and internet banking as well as withdrawing cash from all 22.800 ATMs in Turkey Figures Number of UPT Transactions Number of Customers Transaction volume 191 End of 2010 2011 Q3 152.528 204.861 86.644 104.501 USD 71 m USD 75 m 19 UPT International Transfers ‘UPT” Combines Best Of World’s Successful Money Transfer Programs Foreign Currency Transfers Universal Payment Transfer Program offers the customers to send and receive local or foreign currency to all banks and to all member partners all around the world. Money transfers currently are available in two different methods; Aktif Bank is creating member partnerships and global bank to bank money transfer networks starting from European Union and Middle East countries. Member locations and banks provide online transfers to customers. Aktif Bank is also the member of global Swift network which covers rest of the banks with secure transfers. We are the candidate to be one of the leading money transfer programs in the near future. 201 20 Card Platform - Prepaid/Debit/Credit Card Management System And Chip Technology Aktif Card System (AKS) is a multilingual, multi currency, multi-institution loyalty card platform We are the first Bank in Turkey to develop “a- AKS processes huge volume of transactions with purse” (Aktif Purse) which is a dual interface high speed in a secure chip card application with transportation functionality. “a-purse” is a product of pure AKS is capable of setting payment standards LOCAL engineering and it is fully compatable between Turkey and the neighbouring countries with GLOBAL standards 1 PrePaid card programs and offline transaction/balance management 2 Mifare, PayPass (MC) and PayWave (VISA) contactless card application, NFC Fraud Module 3 Standard credit card, debit card programs, Loyalty and point applications User-friendly screens 4 Campus cards, fan cards, transportation cards,gift cards, Skipass, food cards, access control systems Automatic Decision System Office Verification Module Smart Application Fields Dynamic Matrix Online Outsource Interrogation 211 21 Aktif 38, Best Of The Prepaid World In Every Aspect Of Life Supporting transport and payment systems together on one single card. Supermarket Cinemas Medical expenses Aktif 38 is a prepaid and transportation card that is unique to Kayseri. It can be used on transport systems and at contracted outlets (shops, restaurants, cinemas, etc...) and also Transportation Shopping offers assistance and insurance services as well as discounts and gift points. Parks Gas station Aktif 00 Prepaid Purchase Bookshops Transportation Loyalty Points 221 22 Aktif Bank’s Innovations Awarded Internationally 2009/10 League of American Communications Professionals (LACP) Annual Report Competition 2009 Best Annual Report Narrative Platinum Award Design Management Platinum Award Among Top 50 Annual Report 2nd Ranking 2010 Vision Awards by LACP Aktif Bank Design Management Gold Award MerComm - Galaxy Awards – «Banking» Silver Winner MerComm – The Academy of Annual Reports Silver Winner 2011 Cards and Payments International Awards - Aktif38 Best Third Party Prepaid Product Retailer Award Best Non-US Based Prepaid Program VRL Financial Awards - Aktif38 Best Prepaid Card Product Business Initiative Directions (BID) International Quality Award Financial World Innovation Award- Aktif Online Innovation in the Distribution of Financial Products 231 Aktif Bank’s Corporate Banking Innovations 24 24 Aktif Bank Bond We initiated the formation of a commercial paper market in Turkey Under this program, we issued the first bank bond in Turkey All of our issuances have been fully subscribed 1st tranche: TL 35 million (USD 23mn) (September2009) 2nd tranche: TL 65 million (USD 43mn) (September 2009) 3rd tranche: TL 100 million (USD 64mn) (February 2010) 4th tranche: TL 400 million (USD 270mn) (April 2010) 5th tranche: TL 700 million (USD 482mn) (September 2010) 6th tranche: TL 1 billion (USD 627 mn) (May 2011) Net amount subscribed: TL 761 mn (USD 411 mn) TL 90 million (USD 48 mn) is quoted in Istanbul Stock Exchange. With a maturity profile of 30 days to 360 days Tax advantage over time deposits Aktif Bond is quoted on Reuters and Bloomberg 25 25 Aktif Bank Structured The First Asset Backed Securitization Of Turkey STRUCTURE SUMMARY • Issuer : Aktif Bank Varlık Finansman Fonu • Investment Bank & Originator : Aktif Bank Lowest possible risk profile under Turkish sovereign risk rating. Installments deductible from state pensioner payments deposited by Republic of Turkey . Suitable for repo and reverse-repo agreements. Life insurance is obligatory for all borrowers. ABSs are over collateralized with the guarantee of Aktif Bank. Traded through both organized and OTC markets. Tax advantage compared to term deposit products. Brand new opportunity for investors enjoying the high yield of consumer loans with a repayment stream secured by Turkish Treasury. 26 • Underlying Asset : Payroll Deductible Loans Through PTT • Market : IMKB (Istanbul Stock Exchange) • Guarantor : Aktif Bank (5%) • Rating : AAA • Issue date : 20/10/2011 • Issue Size : 187 million TRL Asset Backed Bond Maturity Nominal (TRL) VDMK_69 Days 28.12.2011 21,858,306 VDMK_160 Days 28.03.2012 35,777,026 VDMK_251 Days 27.06.2012 32,350,819 VDMK_342 Days 26.09.2012 28,071,847 VDMK_524 Days 27.03.2013 46,300,509 VDMK_615 Days 26.06.2013 14,720,239 VDMK_802 Days 30.12.2013 7,922,793 Total 187,001,539 ACT Office Foreign investors have demonstrated more interest in Turkey, which has attracted greater attention from the global business with its consistent and rapid growth performance in recent years. Seeing this potential, Aktif Bank desingned the “Act Office” service concept in 2009 to provide the following services required by international financial institutions in Turkey and other countries in the region ACT Services Marketing and sale of products and services Research activities Loan supply, collateralization and legal consultancy Credit evaluation Operation and monitoring Management and logistics 27 27 Local and regional agent of ITFC and ICIEC Aktif Bank became the only agent in Turkey and in the region to offer foreign trade, structured finance, export loan and advertisement insurance products and services which are only provided by ITFC and ICIEC to their member countries 28 28 291 First direct bank of Turkey Only bank to have online realtime integration with Turkish Post Offices (PTT) Founder of Money Transfer Programme which is commonly used in Turkey One of the few banks in Turkey with an instant decision making credit system “Credit Factory” The first bank to issue a commercial paper program The first bank that structured an asset backed securitization for the Consumer Loans in Turkey The first bank to introduce “Liaison Office” concept in Turkey (“ACT Office”) One of the few banks with dealer credit system Market leader in contactless cards in Turkey The first bank to develop “a-purse” which is a dual interface chip card application with transportation functionality The first to develop a transportation kiosk 29 30 APPENDIX 311 31 Ç ALIK HOLDING The leading investor in Turkey, Balkans and CIS We are an Affiliate of a Reputable Global Conglomerate 32 One of Turkey’s most up and coming Groups with more than 20,000 employees in 14 countries 30/06/ 2011 Assets of USD 6.3 billion and Revenues of USD 2.2 billion 5th Turkish corporate issuing a Eurobond Reputable partnerships and cooperation with global brands ENI, EWE, Mitsubishi, General Electric, Turkish Telecom Qatar Investment Authority, Anatolia Minerals, Initec Energia 32 33 33 TAPCO POWER SYSTEMS Completed turnkey delivery of 5 power stations with a total capacity of 883 MW in Turkmenistan 254 MW 6th power plant under construction Long-term supply and maintenance contract with Turkmen state Hold 10 licenses to construct hydroelectric, wind and thermal power plants with a total capacity of 1500 MW in Turkey Joint construction of a gas power plant in Uzbekistan with Initec Energia of Spain Project amount of USD 470 million Generation capacity of 472 MW Completion date of 2013 UTILITIES Awarded the license to build and operate strategically important Trans-Anatolian Pipeline (TAP) Partnership with ENI Group of Italy Annual capacity of 50-70 million tons of oil Completion date of 2013 EXPLORATION AND DRILLING Explores and drills oil and gas in Turkmenistan Partnership with Parker Drilling of USA Holds oil and exploration licenses in Eastern Turkey and Thrace region REFINERY Awarded the license to build a refinery and petrochemical complex in Ceyhan Annual capacity of processing 10 million tons of crude oil and 2 million tons of petrochemicals , Budget of USD 6 billion Yeşilırmak Electricity Distribution Company 1.5 million subscribers in the cities of Samsun, Amasya, Çorum, Ordu and Sinop Bursagaz and Kayserigaz services 850,000 households Owns 76% stake in Albania's Albtelecom Turkish Telecom is a strategic partner with 20% share Participates as an investor in Bursagaz and Kayserigaz. 34 Yeşilırmak License was acquired in December 2010 and the acquisition price has been USD 441.5 million ALBTELECOM Incumbent fixed line operator in Albania 290,000 subscribers with a potential of 1 million, 30% penetration Third GSM operator after AMC and Vodafone (15% market share) 34 GAP İNŞAAT MEDIA One of only two nationwide print distribution network in Turkey 5 regional offices (2 representative offices) 5 printing facilities 25,794 sales outlets (810 chain stores) 221 distributors GAP İnşaat ranked 176th in the “Top International Contractors” list of ENR magazine in 2010 Active in the construction of turnkey industrial plants, infrastructure and environmental projects, hospitals, hotels, schools, roads and museums Cover Middle East, CIS and North Africa 20% market share in TV & newspaper advertising Value of completed projects amounts to approximately USD 2.5 billion Lusail International Media Co., media affiliate of Qatar Investment Value of housing projects in the pipeline with a start date of late 2009 in Authority, is 25% shareholder of Turkuvaz GAP GÜNEYDOĞU TEKSTİL GAP Güneydoğu is one of the world’s top ten suppliers of denim The only rated textile company in Turkey with a local currency rating Istanbul is around USD 750 million Undertaking Turkey’s first urban transformation and renovation projects with private involvement in the heart of Istanbul Tarlabaşı, Fener Balat ÇALIK MADEN of BBB+ from Fitch Active in the production of yarn, fabric, garment and home textiles Manufacturing operations in Turkey, Turkmenistan and in Egypt Majority of sales exported to North America, Europe, North Africa and East Asia Top 3 export destinations are the USA, Italy and Spain Customers include global names such as Diesel, Replay, LeeWrangler, Levi’s, Benetton, H&M, Calvin Klein, Tommy Hilfiger, Zara G-Star, Miss Sixty, M&S, Next, Esprit, Escada 35 An extensive partnership with Anatolia Minerals in Turkish mining industry Anatolia Minerals is based in the US and holds more than 100 licenses in Turkey Çalık Maden buys into Çukurdere, a subsidiary of Anatolia Minerals 175,000 ounces annual production started in 2010 Cukurdere owns a gold mine in Erzincan with 6m ounces reserves 35 E-KENT ‘Builds Urban Technologies’ Established in 2002 and since early 2008 E-Kent is a affiliate of Aktif Bank. it is Turkey's largest electronic fare collection operating company, and currently operates services in 11 residential area of Turkey Provides modern and high-technology solutions for city life E-KENT IS A PROVIDER OF HIGH-TECHNOLOGY SOLUTIONS AND SERVICES FOR MODERN URBAN MANAGEMENT Operates contactless card payment systems in public transportation Services citizens, municipalities and private bus companies with advanced technology solutions and E-Kent in figures; consulting 9 Million Population 3 million pre-paid cards 2,250 buses 650 tollgates 36 Expert in widespread field operations Acquisition of E-Kent by Aktif Bank 1000 top-up points and ticket boots Access to micro-payments market in transportation More than 1 billion transactions per year Legitimization of cash receivables 2010 Revenues of USD 9.250.000 Introduction of “city card” solutions 36 THE FIRST BANK WITH TURKISH CAPITAL TO HAVE INVESTED IN KOSOVO BEFORE THE INDEPENDENCE OF KOSOVO WAS DECLARED. Owned 100% by Çalık Financial Services Active in Corporate and Retail Banking with market share of 17% in deposits 12% in loans Second largest bank amongst 16 banks in terms of asset size as of September 30, 2011 Total Assets USD 1.8 billion Deposits USD 1.56 billion 57 branches throughout Albania 22 branches in Kosovo Captures 80% of trade activity between Turkey and Albania In 2009, it was selected as the “Best Bank of the Year” and “Best Medium Sized Bank in CEE” by Finance Central Europe Magazine. In 2010, it was selected as the “Best Bank of the Year” by The Banker Magazine and awarded the “Quality Management Certificate” by Certiquality. Rated AAA Stable by Japanese Credit Rating Agency (JCR) 37 37