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new generation banking Bank Presentation November 2009 1 Çalık Holding Çalık Financial Services Aktif Bank 2 Çalık Holding - History Earliest Textile Activities of Çalık Family 1930 1987 GAP Güneydoğu Textile 1996 GAP Construction BKT ÇalıkBank Çalık Holding (Aktif Bank) 1997 1998 1999 Çalık Energy Banka Kombetare Tregtare 2004 Bursagaz Alb Telecom Eagle Mobile 2006 2007 Kayserigaz E- Kent TAPCO and DAPRAŞ 2008 ATV Sabah 2009 Çukurdere Mining 3 Çalık Holding - Overview The leading investor in Turkey, Balkans and CIS One of Turkey’s most up and coming Groups with more than 19,000 employees in 12 countries 2007 Assets of USD 3.3 billion and Revenues of USD 1.3 billion 2008 Assets of USD 4.4 billion and Revenues of USD 1.7 billion On a national scale rated BBB by Fitch and JCR, on an international scale rated B- by Fitch and B+ JCR 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 CONSTRUCTION 4 Energy 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 Power Systems Hold 11 licenses to construct hydroelectric, wind and thermal power plants with a total capacity of 900 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 MG Completion date of 2013 5 Energy Utilities Çalık Energy was rewarded the tender for 100 % privatisation of Yeşilırmak Electricity Distribution Company on 6th November ’09 1.5 million subscribers in the cities of Samsun, Amasya, Çorum, Ordu and Sinop Acquisition price has been USD 441.5 million Participates as an investor in Bursagaz and Kayserigaz with 10% stake in each company Bursagaz and Kayserigaz services 850,000 households In October 2008, Çalık Holding sold 39.9% of Bursagaz and Kayserigaz to EWE for a total price of USD 438 million (34x 2008E EBITDA) 6 Energy - Oil & Gas Awarded the license to build and operate strategically important Trans-Anatolian Pipeline (TAP) Novorossik Romania Russia Black Sea TAPCO Partnership with ENI Group of Italy Kazakhstan Georgia Bulgaria Samsun Azerbaijan Baku Ankara Izmir Annual capacity of 50-70 million tons of oil Caspian Sea Turkey Ceyhan Syria Mediterranean Completion date of 2013 Kirkuk Mosul Lebanon Iran Iraq Ashkalon Israel Jordan Egypt Eilat Baghdad Existing pipelines Samsun-Ceyhanpipeline Future extension plan ofSamsun--Ceyhanpipeline Explores and drills oil and gas in Turkmenistan Exploration and Drilling Partnership with Parker Drilling of USA Holds oil and exploration licenses in Eastern Turkey and Thrace region Awarded the license to build a refinery and petrochemical complex in Ceyhan Refinery Annual capacity of processing 10-15 million tons of crude oil and 2 million tons of petrochemicals Budget of USD 6 billion 7 Telecommunications ALBtelecom Owns 76% stake in Albania's Albtelecom Turkish Telecom is a strategic partner with 20% share Leading fixed line operator in Albania 290,000 subscribers with a potential of 1 million 30% penetration Third GSM operator after AMC and Vodafone 500,000 subscribers 15% market share 8 Turkey’s Second Largest Media Group 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 20% market share in TV & newspaper advertising Sabah reaches 2.7m readers daily across Turkey and it is the #3 in terms of circulation 25 magazines Forbes and Para are the leading Business & Finance magazines in Turkey TV and Radio Broadcasting 4 newspaper brands Magazines Newspaper Lusail International Media Co., media affiliate of Qatar Investment Authority, is 25% shareholder of Turkuvaz 4 TV and 2 Radio channels ATV is one of the leading all day and prime time broadcaster in Turkey 9 GAP İnşaat GAP İnşaat ranked 163rd in the “Top International Contractors” list of ENR magazine in 2008 Active in the construction of turnkey industrial plants, infrastructure and environmental projects, hospitals, hotels, schools and roads Cover Middle East, CIS and North Africa Construction Value of completed projects amounts to approximately USD 2 billion Value of housing projects in the pipeline with a start date of late 2009 in İstanbul 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 10 GAP Güneydoğu Tekstil 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 of BBB+ from Fitch Active in the production of yarn, fabric, garment and home textiles 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, Lee-Wrangler, Levi’s, Benetton, H&M, Calvin Klein, Tommy Hilfiger, Zara G-Star, Miss Sixty, M&S, Next, Esprit, Escada 11 Çalık Maden 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 Mining 175,000 ounces annual production to start in 2010 Cukurdere owns a gold mine in Erzincan with 6m ounces reserves The alliance will allow for joint exploration and development of other mineral properties in Turkey on a 50/50 basis 12 Çalık Holding Çalık Financial Services Aktif Bank 13 Established in 2003 as financial services arm of Çalık Holding (fully owned by Çalık Holding) • Active in Turkey, Albania and Kosovo with 72 branches through • “Aktif Bank” brand in Turkey • “BKT” brand in Albania and Kosovo Çalık Financial Services • Consolidated Financial Figures as of 30.09.2009 • Asset size USD 1.5 bn • Equity of USD 210 million • Engaged in retail and corporate banking with a niche concept of direct banking in Turkey Further expansion plans into Balkans and Syria 14 Çalık Financial Services: BKT is the only bank operating as an Albanian brand in Albania Active in Corporate and Retail Banking with market share of 14.5 % in deposits 8.8 % in loans Owned 100% by Çalık Financial Services Banka Kombetare Tregtare Third largest bank amongst 15 banks as of September 2009 Total Assets USD 1.3 billion Deposits USD 1. 1 billion 56 branches throughout Albania 12 branches in Kosovo Captures 80% of trade activity between Turkey and Albania Selected the “Best Bank of the Year” and “Best Medium Size Bank in CEE” in 2008 by Finance Central Europe Magazine Rated AAA by Japanese Credit Rating Agency (JCR) 15 Çalık Financial Services: • Growing asset base (yoy growth of 130%) • TL 353 million (3Q2009) Sound and Progressive Balance Sheet • Strong equity capital • 91% paid in cash International Recognition • National Rating of A- by JCR (Upgraded to “Positive Outlook” in June 2009) • • Low leverage ratio 48.8% • Ample capital adequacy 25.4 % • Continuous support by Çalık Holding Committed Shareholder • Cash equity injection of USD 60 million • Capital commitment plan until 2012 • Reputable Subsidiaries • Diverse correspondent bank network • 212 correspondents in 76 countries Prudent Lending Policy and Disciplined Approach to Risk Management • Well managed loan portfolio • Loan/equity ratio of 115.5% • Good asset quality • Remarkable NPL ratio of Banka Kombetare Tregtare (rated AAA), third largest bank in Albania with asset size of USD 1.3 billion and 67 branches E-Kent, Turkey’s leading automatic fare collection company with 2 million contactless cards Dynamic Workforce • Average age of 32 • 230 employees 0.53% • Reputable award winning management coming from 9 leading banks in Turkey 16 Çalık Holding Çalık Financial Services Aktif Bank 17 Financial Highlights Total Assets (TRY millions) (TRY millions) %130 %40 Interest Income Funds Borrowed (TRY millions) (TRY millions) % 117 Note: IFRS consoilidated audited results FYE 2006, FYE 2007 and FYE 2008 BRSA solo audited results as of 30th September 2009. USD/TRY 2006 2007 2008 September 2009 1.4133 1.1685 1.5180 1.4820 18 Three Pillar Strategy On Strong Banking Base... Regional Banking Direct Banking Corporate Banking Retail Banking Investment Banking City Banking Treasury 19 New Generation Banking Direct Banking First Direct Bank of Turkey with state of the art IT system Branchless banking model instead of expensive and old-fashioned branch dominated network Electronic and physical alternative delivery channels e.g. Web, Call Centre, Dealers, Post Offices, Aktif Points Online integration with the Post Offices to be launched in October 2009 City Banking Three Pillar Strategy Automatic fare collection in public transportation in cities of Bursa, Kayseri, Gaziantep, Sakarya, Kütahya, Tokat and Düzce serving 7 million customers Opening branches in cities where we operate in public transportation Regional Banking BKT with 67 branches in Albania and Kosovo Further expansion into the Region Corporate Banking • • • • • • Corporate & Commercial Loans Trade Finance Specialized products and services Cash/Receivables Management Liaison Office Services Insurance Services 20 Retail Banking - Credit Factory Delivery DeliveryChannels Channels Products Consumer Loans Cross Check Customer Database Car Loans Credit Desicion System Credit Desicion System Pre Validation Central Bank Credit Bureau Validation Final Analysis Mortgages City Card Credit Bureau Ticket Machines Merchants Top up Points Ticket Boots 21 Collection Offices 21 Corporate Banking Strategies Cash Management Services Receivables management Card collection systems Subscriber collection systems Salary payments Tailor made solutions to Group companies and other trade clients Trade Finance Project and Corporate Finance ACT Office Services Focus on facilitating trade between Turkey, Albania and Kosovo Advisory on energy efficiency, M&A, strategic partnerships, restructuring, regional development and industrial strategies Project feasibility, business plan and investment evaluation Logistics support, sector and company information/analysis, business model and risk assessment, collateral valuation, loan monitoring 22 : Your Local Partner Why ACT Office ? Establish a strong foothold in Turkey and in the region Focus on decision making, not on the process of day-to-day business Easy access to local expertise with extensive experience Flash News Hotline On-site business and corporate intelligence Benefit is yours, the rest belongs to us (local “Scapegoat”) ACT Office Services Marketing • Promote and publicize your products • Search for clients, markets and sectors Research • Filtered information to develop new insights to industries and sectors Credit & Legal Advisory • Credit assessment • Collateralization • Monitoring Why Aktif Bank ? The only bank established liaison office concept in Turkey Member of a dominant regional player in energy, construction, media, telecom, textile, mining and financial services Fastest growing bank of Turkey Well educated, experienced, dynamic and innovative team Administrative & Logistic Low cost base 23 E-kent Turkey’s largest Automatic Fare Collections (AFC) Company in transportation Operates contactless card payment systems Installs AFC hardware and provides maintance support Access to micro-payments market in transportation Acquisition of E-kent by Aktif Bank Legitimization of cash receivables Introduction of “city card” solutions E-kent’s AFC Business Model 3 Million Population 7 cities 2008 Revenues of TRY 500 million 2 million pre-paid cards 1,860 buses 1,330 tollgates 587 top-up points and ticket boots 24 Memberships Interbank Card Center International Chamber of Commerce Credit Bureau of Turkey Foreign Economic Relations Board Institute of International Finance Association of National Development Finance Institutions in Member Countries of The Islamic Development Bank Banking Association for Central and Eastern Europe International Association for Public Transport 25 Network 26 Organizational Chart Board Audit Committee Credit Committee Group Department Unit Internal Audit CEO Economist Legal Corporate Communicati ons Information Technology Financial Institutions Treasury Human Resources DC Software Development & R&D Financial Institutions Marketing Treasury Recruitment & Planning Business Development Banking Software Development Structured Finance Treasury Marketing Payroll & Compensation Project Management Office Liquidity Management Training Security Operation & Technical Support Card Systems Organization & Process Management Support Services Internal Control Risk Management Corporate &Project Finance Subsidiary Management Business Development Corporate & Commercial Credits Corporate & Commercial Marketing Financial Affairs Operation Corporate & Comm.Credits Credit Allocation Corporate & Commercial Marketing Financial Reporting ADC Operations Cash Management Accounting Foreign Trade Insurance Financial Control Treasury Operations Financial Analysis & Investigation Retail Retail Credits Monitoring Call Center Internet Banking Back Office Decision Support ATM&Kiosk Operations Corporate & Comm.Credits Follow up & Monitoring Card Payment Systems Operation System Development Process & Project Management SME Banking Card Operations ADC Field Operations Management Merchant Operations Data Management Retail Credits Allocation Retail Credits Sales Retail Marketing Retail Credit Operations Domestic Payments Factoring Collections Payments Corporate Credit Operations Payment Card Systems Product Development & Project Management Card & Merchant Marketing Product Management Product Development & CRM Payment Card Systems Project Management System & Product Development Card Marketing Merchant Marketing 27 Why Aktif Bank, Which Areas Can We Cooperate In? 100% owned by Çalık Holding, a global conglomerate operating in 4 different continents A rising star of the Turkish banking system with its revolutionary banking services Why Aktif Bank Dynamic financial services organization with need-based solutions Rapidly moving, practical and creative corporate business partner Dominant player in the Region Strategic investment opportunities in Turkey and the Region Municipality financing in Turkey Areas of Cooperation Local representation in Turkey Banking services in contracting projects such as bid bond, performance bond and advance payment guarantees Trade finance operations Debt finance instruments i.e. Aktif Bank bond, P/N discounts, syndications 28 Financial Institutions Team Özlem Özün Head of Financial Institutions Group + 90 212 340 8320 [email protected] Muzaffer Suat Utku Senior Vice President + 90 212 340 8321 [email protected] Gonca Yılmaz Çetin Assistant Manager + 90 212 340 8322 [email protected] Sedat Yalçınkaya Specialist + 90 212 340 8323 sedat.yalcı[email protected] 29 Disclaimer: The contents of this document are provided here for informational purposes only and may not be up to date or fully state all the relevant facts, therefore no warranty, express or implied, is given as to the accuracy thereof and neither Aktif Bank nor any of its affiliates, administrators, directors, or employees shall be liable for any consequences which arise as a result of the use of, or reliance on, the contents and any associated material by you or any third party to whom you supply, copy, send or distribute the contents and any associated material including but not limited to loss of profit, loss of data and information, business, revenue, contracts, reputation or goodwill or any other expenses, costs and damages whether direct or indirect and whether reasonably foreseeable or not. This document is confidential and no portion of the contents herein may be copied, distributed, or reproduced in any form or by means without prior written consent of the Financial Institutions of Aktif Bank. 30