TURKEY

National

International

Corporate Credit Rating

Leasing ŞEKER FİNANSAL KİRALAMA A.Ş.

Long Term

Short Term

Foreign Currency

BB

B

Financial Data

Local Currency

BB

B

FC

Stable

LC

Outlook Local Rating

2011*

2010*

2009*

2008*

Total Assets (000 USD)

156,994

111,105

125,951

108,712

119,219

Stable

Total Assets (000 TRY)

279,073

209,867

193,662

161,688

181,427

Positive

Stable

Equity (000 TRY)

44,150

40,454

35,491

31,182

15,838

A- (Trk)

A–1 (Trk)

Net Profit (000 TRY)

3,546

4,956

4,301

10,344

3,004

Market Share (%)

1.38

1.13

1.23

1.10

1.06

ROAA (%)

1.81

1.84

1.19

0.48

1.31

Stable

Stable

Sponsor Support

2

-

ROAE (%)

10.48

9.79

6.37

3.53

15.98

Stand-Alone

AB

-

Equity/Assets (%)

15.82

19.28

18.33

19.29

8.73

Foreign Currency

BB

B

Gross NPL (%)

12.22

16.43

17.59

16.15

9.73

Local Currency

BB

B

Growth Rate (%)

32.98

8.37

19.78

-10.88

70.23

FC

Stable

Stable

*End of year

LC

Positive

Stable

Sovereign*

Outlook

2012*

Outlook

Company Overview

*Assigned by Japan Credit Rating Agency, JCR on June 28, 2012

Analyst: Gökhan İYİGÜN / +90 212 352 56 74 [email protected] Growth Rate (%)

Market Share (%) 1.06

1.10

1.23

1.38

1.13

2.00

70

-11

20

33

8

200 0

0.00

-200

ROAA (%) 1.84 1.31

ROAE (%) 1.81

2.00

1.19

16

0.48

4

6

10

10

0.00

20

0

NPL (%)

16.2 17.6 16.4 9.7

Equity/Assets (%) 12.2

20.00

19 9

18

19

50 16

0.00 2008 2009 2010 2011 2012

0 2008 2009 2010 2011 2012

Şeker Finansal Kiralama A.Ş. (Şeker Leasing, the Company), offering leasing services for the investment support of domestic and international assets and capital goods needed by SMEs (Small and Medium size Enterprises), was founded in 1997 and has been publicly traded since 2004 (with a 19.55% free float of its capital of TL 45mn as of FYE2010). The Company, being one of the five leasing companies in Turkey to be listed on the BIST-National Market, performs its activities via its headquarters and regional offices in Ankara, Bursa and Izmir as well as in the widespread branch network of Şekerbank T.A.Ş. (the Bank) and employs a staff force of 26 people. The Company actualized its first bond issuance in June 2012 as TRY 50mn and performed another TRY 50mn bond issuance in December 2012. Şeker Leasing had a 1.38% market share in the leasing sector worth a total of TRY 20.25bn as of FYE2012. The Company is a partially owned (50.95% stake) subsidiary of Şekerbank T.A.Ş. (the Bank), a mid-scale commercial bank in Turkey which was assigned a long-term national rating of „A+ (Trk)‟ by JCRER in 2012, and has a subsidiary named Sekar Oto Kiralama Turizm Kargo Taşımacılık Hizmeti ve Tic. Ltd.Şti., consolidated in its statements. The Company‟s long term national grade was upgraded one notch to „A- (Trk)‟ with a ‘Stable’ outlook.

Strengths

Constraints

 Ongoing upward pattern in profitability ratios approximating sector averages  Remarkably above sector average year-end growth rate and a market share curve with upward trend  Relatively higher income generation capacity of equity mainly derived from consistently above sector average interest margin  Continuance of the bond issuance contributing to profitability and liquidity management and overcoming the sector issues of short term borrowing and scarcity in alternative sources  Positively differentiated collateral level and compatible provisioning policy regarding sector, contributing to asset quality  Positive outlook of sector growth due to enhanced product diversity through recent legal regulation and relatively low sector penetration level  Being one of the few leasing companies listed on the BIST

 Ongoing above sector average pattern in the „operating expenses to total income‟ ratio resulting in below sector average profit margins  Relatively high NPL ratios, despite improvements,  Continuously below sector average equity share in total resources and total assets,  Continuing FX losses pressuring profitability, despite improvements  High level of competition in the sector

Publication Date: May 16, 2013

“Global Knowledge supported by Local Experience”

Copyright © 2011 by JCR Eurasia Rating. Nispetiye Cad.Firuze Sok. Ceylan Apt. No:1-D:8 Akatlar/İSTANBUL Telephone: +90.212.352.56.73 Fax: +90 (212) 352.56.75 Reproduction is prohibited except by permission. All rights reserved. All of the information has been obtained from sources JCR ER believes are reliable. However, JCR-ER does not guaranty the truth, accuracy, adequacy of this information. A JCR ER Rating is an objective and independent opinion as to the creditworthiness of a security and issuer, not a recommendation to buy, hold, sell any security and to issue a loan. This rating report has been composed within the frameworks of SPK (Capital Markets Board of Turkey) regulations and internationally accepted rating principles and guidelines but is not covered by the NRSRO regulations. http://www.jcrer.com.tr

LEASING 1.

Rating Rationale

other supporting factors taken into consideration in the assessment of the Company‟s rating.

The Turkish Leasing Sector has been regulated and supervised by the Banking Regulation and Supervision Agency (BRSA) since 2006. The „Financial Leasing, Factoring and Financing Companies Law‟, No. 6361, came into effect on December 13, 2012. Moreover, the Regulation regarding organization and operating principals of financial leasing, factoring and financing companies entered into force on April 24, 2013. According to the most recent BRSA statistics, the total asset size of the Turkish Leasing Sector was TRY 20.25bn and involved 31 leasing companies, five of which are listed on the Borsa Istanbul (BIST) National Market, as of FYE2012.

Moreover, points regarding the Company‟s profitability, capital adequacy and asset quality such as;    

The Company‟s consolidated independent audit report prepared in conformity with BRSA regulations, statistical data on the sector produced by BRSA and updated on March 1, 2013, JCR Eurasia Rating‟s own studies and records, information and clarifications provided by the Company and non-financial figures constitute the major basis of Şeker Leasing‟s ratings.



In addition to the Company‟s profitability figures, asset quality, equity structure, risk management practices, market shares, growth rates and expected support, the main shareholders‟ financial and non-financial positions were also taken into consideration while determining the risk assessment of the long-term international local currency and foreign currency grades as well as national grades.



  

along with issues concerning the leasing sector such as a relatively high level of price competition and country wide issues of decelerated economic growth and increased dishonoured checks volume and number are the main factors exerting pressure on the Company‟s grades.

The driving forces behind the upgrade of the long-term national grade of the Company were;     

With respect to the above mentioned factors, JCR Eurasia Rating has assigned the long term international foreign currency and local currency ratings as ‘BB’, the same as that of the sovereign ratings of the Republic of Turkey, and upgraded the long term national local ratings one notch to ‘A- (Trk)’ in JCR Eurasia Rating‟s notation system, which denotes a high investment grade.

A rapid increase in growth rate along with a remarkably above sector average (8.87%) year-end growth rate of 32.98%, Upward trend in market share, Ongoing upward pattern in profitability ratios approximating the sector averages, Remarkable improvement in NPL ratios, Continuance of the bond issuances resulting in a remarkable improvement in liquidity position.

2.

      

Consistently above sector average operating profitability ratios, Ongoing above sector average cumulative growth rates, Above sector average interest margin over the years, Decreasing adverse affects of FX positions, Improvements in the ratio of „short-term borrowings to total assets‟ from 80.39% to 48.66%, falling below the sector average of 69.65%, Remarkably above sector average collateral level, Continuously increasing provisioning ratio along with an exceeding above sector average year-end figure, Absence of off balance sheet guarantees and commitments

Additionally, JCR Eurasia Rating has assigned ‘Positive’ and ‘Stable’ outlooks on the international long and short term local currency rating perspectives of Şeker Leasing, respectively, those of the sovereign rating‟s outlooks of the Republic of Turkey. Key dynamics that can cause a change in the current outlook status include the affects of the global economic outlook on the Turkish economy, Turkey‟s sovereign rating which is currently following an upward trend, as well as developments in the non-financial economy in need of financing. Other factors also kept under consideration are

along with low level of sector penetration and recently changed sector legislation promising further growth are the 1 Şeker Finansal Kiralama A.Ş.

Outlook

A ‘Stable’ outlook has been assigned for the Company‟s short and long term national grades, with the expectation of minimal changes in existing conditions, state of affairs and development trend due to probable positive future effects on cost of funding and liquidity management of the realized and potential bond issuances, low level of sector penetration along with recent sector legislation promising further room for future growth as well as ongoing above sector average operating expenses ratios and below sector average equity level.

Additionally, issues regarding profitability, performance, asset quality and liquidity such as; 

Continuously above sector average operating expenses, Ongoing below sector average equity share in total resources and in total assets, Ongoing above sector average (7.99%) NPL ratios despite improvements, Relatively high and above sector average (32.25%) level of impaired receivables corresponding to 61.35% of equity, Deterioration in internal equity generation capacity falling below sector averages, Above sector average ratio of provisions to total income, Below sector average trend in gross and net profit margins, Continuing adverse affects of FX positions on profitability, Relatively high share of loan and receivable‟s loss provisions in total loans and receivables

LEASING the Company related issues such as future profitability and developments that will affect the asset quality and liability profile. 3.

Şekerbank T.A.Ş, with an issued capital of TRY 1,000mn and a consolidated asset size of TRY 15.21bn as of FYE2012.

Sponsor Support and Stand Alone

Şeker Leasing was founded in 1997 with a capital of TRY 250k and has been listed on the ISE since 2004 (with a 19.55% free float of its capital of TRY 45mn as of FYE2011).

Sponsor support grades and their risk estimations reflect the financial and non-financial state and expected support of the main shareholders of Şeker Leasing, namely; Şekerbank T.A.Ş. and Şekerbank Voluntary Pension Fund. It is considered that the main shareholders have the capacity to provide financial and efficient operational support as and when required. Based on these assessments, the Sponsor Support grade of Şeker Leasing has been determined as (2).

The Company offers leasing services and investment support for domestic and international assets and capital goods needed by SMEs via the widespread branches of Şekerbank T.A.Ş., its headquarters and regional offices in Ankara, Bursa and Izmir. Share %

Şeker Finanasal Kiralama A.Ş. Shareholders Structure

The Stand-alone grade has been constituted with respect to the Company‟s asset quality, equity structure, risk management practices, market shares, growth rates and the development of existing risks in the markets and business environment. We, as JCR-ER, are of the opinion that Şeker Leasing has reached a level of adequate experience and facilities to manage the occurring risks in its balance sheet through internal means, provided that it maintains the current customer level and efficiency in the market without any assistance by its shareholders. Within this context, the Stand-Alone grade of Şeker Leasing has been determined as (AB) in JCR-ER‟s notation system. 4.

Şekerbank T.A.Ş. Şekerbank T.A.S. Personel Munzam Sosyal Güvenlik ve Yardımlaşma Vakfı Şekerbank T.A.S. Personeli Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı Seker Yatırım Menkul Değerler A.Ş. SS. Eskişehir Pancar Ekicileri Kooperatifi

2011

2010

2009

2008

2007

50.95

50.95

50.95

49.24

46.56

15.89

15.89

15.89

15.89

15.60

14.75

8.11

8.11

8.11

8.11

7.59

7.18

3.85

3.85

3.85

3.85

3.72

4.25

1.65

1.65

1.65

1.65

1.86

2.12

Public

19.55

19.55

19.55

19.55

21.99

25.14

TOTAL

100.00

100.00

100.00

100.00

100.00

100.00

40,000

35,000

Paid Capital (TRY/000)

45,000

The Company has a subsidiary, with a 99% stake, named Sekar Oto Kiralama Turizm Kargo Taşımacılık Hizmeti ve Tic. Ltd.Şti. (Sekar), with total assets of TRY 9mn as of FYE2011, which provides the Şeker Group with rent-a-car services and is consolidated fully in financial statements.

Company Profile

5.

Şeker Leasing was established in 1997 and has been publicly traded since 2004, under the code SEKFK. It was one of the five leasing company listed on the BIST-National Market and had a 19.55% free float of its capital of TRY 45mn as of FYE2012.

Sector Analysis

According to BRSA‟s 2012 year-end data updated on March 1, 2013, the total assets size of the Turkish Leasing Sector advanced to TRY 20.25bn from TRY 18.60bn with a growth rate of 8.87% as of FYE2012. On the other hand, the total net profit of the sector decreased 14.84% to TRY 434.32mn and accordingly profitability ratios of the sector detoriorated.

The company offers leasing services of investment support for domestic and international assets and capital goods needed by SMEs via the widespread branches of Şekerbank T.A.Ş., its headquarters and regional offices in Ankara, Bursa and Izmir.

Financial leasing transactions began in Turkey in 1983 under the regulation and inspection of the Undersecretariat of the Treasury. The first factoring company was established in 1986. Subsequent to the Banking Law enacted towards the end of 2005, leasing transactions fell under the supervision and regulation of the Banking Regulation and Supervision Agency (BRSA). Recently, The „Leasing, Factoring and Financing Companies‟ draft law passed into law with the acceptance of the Turkish Parliament General Assembly dated November 21, 2012 and entered into force on the date of publication, December 13, 2012. Moreover, the Regulation regarding organization and operating principals of financial leasing, factoring and financing companies entered into force on April 24, 2013. The key provisions of the stated law and regulation related to the Turkish Leasing Sector are as follows;

Şeker Leasing‟s Board has 7 members, including one executive and two independent members. The actual labor force of the headquarters and regional offices involved 26 people as of FYE2012. Of the existing staff, 65.38% graduated from universities, 15.38% from high school, 11.54% with associate degree and 7.69 % with post graduate degrees. The organizational chart of the Company consists of eight departments, five of which (credit, IT, operating and insurance, accounting and financing, support personnel) report to the financial and administrative affairs directorate, two (marketing, legal consultancy) report to the general manager and one (internal audit) directly reports to the Board. Moreover, three representative office supervisors and a financial crimes specialist report directly to the general manager.

 

The following table provides the Company‟s 2012 year-end shareholder structure and realized changes over time. There was no change in the Company‟s capital structure since 2009. The majority shareholder of Şeker Leasing is 2 Şeker Finansal Kiralama A.Ş.

2012 50.95

The capital base of the companies advanced to TRY 20mn from TRY 7.5mn along with a 3-year adaptation period, Companies are required to reserve to meet realized or potential losses derived from leasing receivables within the framework of the principles and procedures set by the BRSA,

LEASING 



   

The associations of three sectors (leasing, factoring and financing companies) will unite under one roof within six months from the date of entry into force of the law. The companies will be a member of the established association within one month, The related companies are subject to permission to set up domestic and international branches. Moreover, an organizational structure that covers only the branches is permitted. Leasing companies will be able to offer new products other than financial leasing such as operating leasing and sale & lease back, All goods regardless of their complementary and addon natures and software may be subject to leasing, The lessors (leasing companies) are not responsible for the defective goods provided from a third party at the request and selection of the lessee, Companies are required to meet and sustain the minimum standard ratio (equity to total assets) of 3% along with an adaptation period until the end of 2013.

2008

2009

2010

2011

2012

50

47

35

31

31

Branches

18

18

16

17

18

Representation

80

76

68

72

75

Employees

1,427

1,280

1,286

1,217

1,258

Customers

73,577

60,010

50,428

43,294

45,089

Contracts

121,627

98,596

82,615

76,258

72,920

2012 (*)

0.97

0.92

16.68

12.36

10.47

11.10

13.75

CUMULATIVE

Turkish Leasing Sector Asset Growth Rates % 47.84 35.80 25.15 25.15

60 50

40 30

14.96

18.13 8.87

6.87

20 10 0

7.57 -14.61

-10 -20

2008

2009

2010

2011

2012

Leasing receivables constitute the largest portion (84.50%) of sector assets, and „borrowings and others‟ the largest portion (72.75%) of resources. The most significant portion (68.67%) of total resources is met through short-term bank loans. On the other hand, some companies have been able to provide funds through bond issuances since 2011. Funding through bond and commercial bill issuance gained acceleration in 2012 and reached TRY 826.31mn as of FYE2012, with a share of 4.08% of total resources. Accordingly, 8 debt instrument issuance applications were made by 7 leasing companies and 7 realized in 2012, partially overcoming the sector problem of inability to create a diversity of resources. The sector‟s non-performing receivables to total receivables ratio (NPL) improved to 7.99% FYE2012 from 8.57% FYE2011, which was remarkably over that of the banking sector (2.86% FYE2012). Moreover, the share of nonperforming receivables in equity decreased slightly to 32.25% from 33.90% in 2012, which represents the high level of leasing sector‟s risk perception and weakens asset quality.

S o urc e : B R S A

Additionally, as of FYE2012, the financial leasing sector‟s profitability ratios of ROAA and ROAE decreased from 3.40% to 2.87% and from 14.54% to 12.71%, respectively while the same ratios of the banking sector stood at 2.33% and 18.49%, respectively. Taking the ratio of equity to total assets into account, the sector possessed a higher equity. The financial leasing sector‟s „Equity/Total Asset‟ ratio was 22.76% for 2012 and that of the banking sector was 13.27%.

Among the 31 financial leasing companies, only the shares of Vakıf Leasing, Is Leasing, Finans Leasing, Seker Leasing, Yapı Kredi Leasing and Fon Leasing (in the second national market) are publicly traded. Of the 31 companies operating in the sector, 18 are owned by banks and approximately 90% of the sector is controlled by these leasing companies. The Turkish factoring sector held a small 0.76% share of the general financial system as of September 30, 2012. Excluding banks, the Central Bank of Turkey (CBT) and Istanbul Stock Exchange (ISE), the factoring sector comprised an 11.32% share in the same period.

The total leasing receivables amount of the sector during 2012 was TRY 3,388mn in which construction sector ranked first with a 19.44% share, metal industry and processed 3

Şeker Finansal Kiralama A.Ş.

2011

0.89

ANNUAL

Some Operational Indicators

Companies

2010

1.03

The combined asset size of the leasing companies stood at TRY 20.25bn with an equity size of TRY 4.61bn at the end of 2012. The leasing sector has expanded significantly over its 26 year history and followed a clear upward trend through 2008. Although the industry shrank by 14.61% in 2009 due to tax changes, it continued to develop following 2009. Between 2008 and 2012, the cumulative growth was 47.84%.

As of FYE2012, there were 31 leasing companies operating in the sector through 18 branches, 75 representative offices and 1.249 employees. According to BRSA‟s September 2012 statistics, the number of customers stood at 45k.

Number of…

2009

1.51

In the Non-Bank and Non-ISE Financial System

Moreover, the Credit Bureau of Turkey (KKB) made the „Check Report‟ available for the use of factoring and leasing companies in August 2012, partially due to a significant increase in the number of dishonored checks in 2012. It is expected that the use of the „Check Report‟ will provide more effective credit risk management through information sharing and more robust decision making through accurate measurement of customers‟ commercial risks.

Leasing Sector

2008

In the Financial System

Source: BDDK, (*): September 2012

Although the act does not involve provisions about certain points desired by the sector, such as recognizing provisions as an expense, not being liable to the Banking Insurance Transaction Tax (BITT) and to benefit from „address information sharing‟ system, it is expected that it will contribute to more effective execution of sector activities, ensuring positive prospects regarding sector growth.

Turkish Financial

Market Share of Leasing Sector (%)

LEASING item production sector second with 16.87% and textile and textile products third with 9.59%. Additionally, medical equipments, properties and office equipment were also treated in the financial leasing transactions. 6.

Company profitability ratios ROAA and ROAE continuously remained below the sector averages since 2008. Both the ROAA and ROAE ratios of the Company followed an improvement trend following 2009. While both sector profitability ratios deteriorated in 2012, the ROAE of the Company improved and the ROAA decreased slightly, diminishing the spread between sector average ratios. Funding of the Company‟s above sector average growth with mostly external sources led to a decrease in equity level and accordingly an increase in ROAE.

Financial Analysis 6.1. Profitability & Performance

The Turkish Leasing Sector‟s growth trend following 2009 decelerated in 2012 and an 8.87% total assets growth rate was actualized as of FYE2012. On the other hand, the Company‟s asset growth rates exhibited a fluctuating pattern in the same period and a remarkably above sector average growth rate of 32.98% was achieved as of FYE2012.

ROAA ŞEKER FİNANSAL KİRALAMA A.Ş. ROAA TURKISH LEASING SECTOR ROAE ŞEKER FİNANSAL KİRALAMA A.Ş. ROAE TURKISH LEASING SECTOR

32.98

7.57

2010

2011

8.87

25.15 -10.88 -14.61

2008

2009

3.82

2008

TURKISH LEASING SECTOR ŞEKER FİNANSAL KİRALAMA A.Ş. 161.85

81.71

25.15 6.87

2008

2009

35.80

47.84

14.96

2010

2011

180 160 140 120 100 80 60 40 20 0

1.38 1.13

15

18.20

5 0

2008

2009

2010

2011

2012

The interest margin of the Şeker Leasing progressively stood over the sector averages over the last five years and contributed to Company‟s profitability ratios. Interest Rate for Costly Liabilities (avg.) % Interest Rate for Earning Assets (avg.) % Margin % Sector Margin %

Interest Margin %

1.40

16.98

1.20

14.05 10.39

6.59 4.80

0.40 0.20

2008

0.00 2012

4 Şeker Finansal Kiralama A.Ş.

25

10

0.60

2011

28.03

9.86

0.80

2010

0

20 19.25

1.00

2009

5

2012

2012

1.06

2008

1.81

1.84

2011

27.27

1.60 1.10

2.87

30

trend line

1.23

2010

3.40

35

Accordingly, the mostly above sector average growth rates culminated in a continuously increasing trend in the Company‟s market share. The market share of the Company increased by 30.19% since 2008 and reached a ratio of 1.38% as of FYE2012. Market Share (%)

2009

3.45 1.19

10

Pre-Tax Profit/Total Income

96.91

51.71

0.48

15

The Company‟s „Pre-Tax Profit to Total Income‟ ratio has exhibited an upward trend since 2009 and realized a value of 28.03% FYE2012. Although the Company‟s pretax profit increased 19.20% from TRY 3.72mn to TRY 4.43mn in 2012, the net profit decreased from TRY 4.96mn to TRY 3.55mn due to income and expense effects of deferred taxes in 2011 and 2012, respectively. Continuing income effect of deferred taxes since 2008 turned into expense effect in 2012.

Mostly above sector average growth rates during the last five years, except 2011, resulted in an uninterrupted above sector average pattern in the Company‟s cumulative growth with a 2012 year-end value of 161.85%.

70.23

3.53 1.92

1.31

12.71

10.48

6.37

80 70 60 50 40 30 20 10 0 -10 -20

2012

Cumulative Asset Growth Rates %

14.54 9.79

9.40

70.23

8.37

20 14.26

Annual Asset Growth Rates %

18.13

25

15.98

TURKISH LEASING SECTOR ŞEKER FİNANSAL KİRALAMA A.Ş.

19.78

ROAA & ROAE Comparison

21.44

9.45 4.60 4.43

2009

12.72

12.29

12.13

6.63

6.78

6.68

6.09 4.47

5.50

2010

3.42

2011

5.45 3.04

2012

18 16 14 12 10 8 6 4 2 0

LEASING The foreign exchange losses applied downward pressure on the Company‟s pre-tax profit over the last four years. On the other hand, the adverse effect of FX losses decreased over time and stood at 8.46% of the pre-tax profit as of FYE2012 with a year-end FX loss value of TRY 375k.

TURKISH FACTORING SECTOR ŞEKER FİNANSAL KİRALAMA A.Ş.

FX Gain (Loss), net / Profit Before Tax

-8.46% -19.74% -35.44%

-69.68%

2008

2009

2010

2011

22.38

20% 10% 0% -10% -20% -30% -40% -50% -60% -70% -80%

7.93

21.09

40.00

32.39

31.35

14.22%

50.00

Equity / Total Resources (%)

23.89

28.96

29.47

23.88

22.44

18.79

9.56

10.00

2008

2009

2010

2011

2012

6.3. Liquidity The Company‟s continuously above sector average ratio of „short term borrowings to total assets‟ decreased remarkably to a below sector average (69.65%) value of 48.66% as of FYE2012 due to the aforementioned bond issuances amounting to TRY 100mn and short term loan repayments amounting to TRY 36mn.

2012

TURKISH LEASING SECTOR ŞEKER FİNANSAL KİRALAMA A.Ş. Short Term Borrowings / Total Assets (%) 91.10

ŞEKER FİNANSAL KİRALAMA A.Ş.

80.53

73.63

49.96

48.28

44.70

39.21

37.46 30.09

31.00

26.52

40

2010

2011

2008

20

2012

2007

10.00 8.00

2008

20

10

2012

The Company realized two bond issuances with a nominal value of TRY 50mn each in 2012. Accordingly, total liabilities of the Company increased 84.18% as of FYE2012. On the other hand, the Company‟s equity performed a 15.82% increase. A remarkably higher increase in total resources led to a decrease in the ratio of „equity to total resources‟ with a below sector average (29.47%) year-end value of 18.79%.

6.00

2009

2010

2.00

2.05

2011

0.00 2012

30.00 26.83

19.60

25.00 20.00 15.00

10.10 1.35

15.24 5.23 0.59

10.00

11.94 2.54

9.96

2011

2012

5.00

0.00 2008

5 Şeker Finansal Kiralama A.Ş.

4.38

TURKISH LEASING SECTOR ŞEKER FİNANSAL KİRALAMA A.Ş. Liquid Assets + Marketable Securities / Total Liabilities (%)

0 2011

5.03

Accordingly, the Company‟s liquid assets levels compared to its assets and total liabilities stood at 16.50% and 19.60% as of FYE2012, respectively, remarkably ascending above the respective sector averages of 7.69% and 9.96%.

15

16.28

0.48

1.23

5

2010

5.21

4.00

12.82

2009

4.59 4.22

5.73

2008

14.00 12.00

15.82

4.35

2012

16.00

4.73

19.28

8.73

2011

16.50

25

15.33

2010

18.00

Standard Ratio (Equity / Total Assets) % Free Equity / Total Assets Ratio % Realized Equity / Total Assets Ratio %

16.29

2009

Liquid Assets + Marketable Securities / Total Assets (%) Net Interest and Commission / Total Assets (%)

The recent regulation of BRSA mandates that the equity ratio (standard ratio) of the company‟s equity to total assets should be at least 3%. The Company materialized a below sector average (22.76%) standard ratio of 15.82% as of FYE2012.

18.33

50.00

Moreover, the year-end bank deposits amounting to TRY 46mn derived from cash inflow generated by TRY 50mn bond issuance on December 21, 2012 lead to a steep improvement in the Company‟s liquid assets level.

6.2. Capital Adequacy

19.29

60.00

40.00

30

0

2009

70.00 69.65

48.66

10

3.00

73.30

50

44.10

7.35

72.26

60

66.50

90.00

80.39

80.40

70

2008

81.39

100.00

80.00

80

Total Operating Expenses/Total Income %

20.00

0.00 2007

The share of the operating expenses in the Company‟s total income exhibited an ongoing above sector average pattern since 2008. The spread, reaching its lowest level in 2011, rose in 2012 due to a 26.92% increase in total operating expenses against a 15.93% increase in total income. TURKISH LEASING SECTOR

30.00

2009

2010

LEASING 6.4. Asset Quality

Additionally, the Company‟s below sector average provisioning ratio rose to the above sector average value of 55.62% as of FYE2012, contributing to asset quality.

The Company had a total assets size of TRY 279.07mn (TRY 209.87mn FYE2011), of which a 90.50% (88.77% FYE2011) share was composed of total earning assets, as of FYE2012. The share of total earning assets, with a 2012 year-end dispersion of 74.01% loans and receivables and 16.50% bank and other earning assets, has remained steadily between 88.73% and 93.45% since 2008. The earning assets weighted dispersion contributes to the Company‟s asset quality. Other Assets Securities Loans and Receivables

TURKISH LEASING SECTOR ŞEKER FİNANSAL KİRALAMA A.Ş. Loss Reserves / Impaired Receivables % 48.76

45.58 39.49

38.80

41.97

50.45

70 60

55.62

50.13

44.24

38.11

40

Associates and Equity Share Banks and Other Earnings Assets

30 20

10

Asset Distribution 6.55%

1.23%

92.22%

2008

0.48%

4.22%

87.91%

84.51%

2009

2.05%

2010

16.50%

86.72%

2011

0

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

9.50%

11.23%

11.61%

11.27%

74.01%

2008

2012

12.25

16

12.20

12.22

9.73

8.57

12 7.99

6.58

8

The Company‟s leasing receivables followed a sector dispersion of 21.68% in the mining, metal and chemical industry, 19.66% in construction and 11.95% in finance, amounting to a total of 53.29% as of FYE 2012, all of which are accepted within the international reference values.

4

0 2008

2009

2010

2011

2012

On the other hand, the Company took steps to improve impaired loans portfolio via its strong collateral structure with the „collateral to receivables‟ 2011 year end ratio of 227.89%, contributing to asset quality.

The Company‟s top 10 customers composed 43.02% (39% FYE2011) of the total receivables portfolio as of FYE2012, 57.58% (50.56% FYE2011) the top 20 and 71.86% (67.05% FYE2011) the top 50. All ratios increased compared to previous year‟s concentration rates, pressuring asset quality.

TURKISH LEASING SECTOR

ŞEKER FİNANSAL KİRALAMA A.Ş. Collaterals / Total Receivables %

340.00

240.00

253.35

227.89

223.59

202.54 114.07

86.66

Moreover, the Company‟s „collateral-to-total receivables‟ ratio was 227.89% as of FYE2012 with an almost straight trend over the last years, fairly above the sector average of approximately 62%. Additionally, the matter of collateral level has been lessened via customer portfolio mostly matched with Şekerbank‟s.

290.00

299.39

86.01

190.00 140.00

70.73

61.48

2011

2012

90.00 40.00

2008

2009

2010

Borrowings at both fixed and variable interest rates prompt the Company‟s exposure to interest rate risk. The Company controls stated risk through an appropriate 6

Şeker Finansal Kiralama A.Ş.

2012

The Company manages its credit risk by limiting transactions regarding some specific sectors as well as the continuous control and reevaluation of debtor credibility. Additionally, the Company also tries to take into account the sector and regional concentration in managing its credit risk. Moreover, the Company obtains additional security for its receivables if possible.

20 16.43

2011

In addition, the Company has an internal scoring analysis process. According to the results of this process, the Company‟s risk levels of leasing receivables concentrated in the “A” (very well) scoring categories as of FYE2012. Moreover, the concentration in the “A+” (excellent) category improved to 15.13% from 10.12%. In all, 76.99% of the leasing receivables were in „B+‟ or higher score categories.

ŞEKER FİNANSAL KİRALAMA A.Ş.

17.59

2010

The Credit department, credit committee and Board of Directors of Şeker Leasing are responsible for the follow up of lease receivables. All lending decisions are approved within the credit committee or the Board.

NPL % 16.15

2009

6.5. Risk Management

NPL ratios of Şeker Leasing, exhibited an increasing and fairly above sector average pattern between 2008 and 2010. The improvements of the NPL starting in 2011 accelerated in 2012. Despite the above sector average improvement, the Company‟s NPL ratio exercised a one and a half times sector average year end value of 12.22% with a decreasing adverse effect on asset quality. TURKISH LEASING SECTOR

50

LEASING distribution of fixed and variable rate obligations. While all the Company‟s financial assets were fixed rated, 30.78% of the company financial liabilities were floating rated as of FYE2012. Moreover, the Company‟s financial statement had a variance range of (+/-) TRY 6,365 in the case of 1% increase or decrease in interest rates as of FYE2012.

growth rate of 195.56% from 2008 to FYE2013, and is compatible with the balance of current financial statements. Cumulative Equity Growth Rate % Cumulative Asset Growth Rate % Cumulative Liability Growth Rate % 600 500

Şeker Leasing is exposed to currency risk due to its transactions in Euro and USD. The Company‟s financial statement had a variance range of (+/-) TRY 2.163 in the case of an increase or decrease of 10% in exchange rates with the assumption that all other variables remain constant as of FYE2012.

200 100

-100

7.

2013

Cash & Cash Equiv alents

45,981

3,931

Leasing Receiv ables (net)

194,440

272,419

Ov er Due Loans

27,087

28,500

Allowance for Loan and Receiv ables Losses

-15,067

-16,850

Other Assets Total Assets

20,250 272,691

27,000

Bank Loans

123,013

160,501

98,402

100,000

Other Liabilities

9,571

8,142

Equity

41,705

46,357

Total Liability

272,691 Profit & Loss

3,597

315,000 4,652

Annual Asset Growth %

32.98

15.52

Equity/Total Asset %

15.29

14.72

ROAA %

1.81

1.89

ROAE %

10.48

12.64

Integrating the above stated projected growth with the last five years‟ growth series results in a cumulative assets 7 Şeker Finansal Kiralama A.Ş.

-89.52

2009

81.71

96.91 137.91

60.18

71.57

2010

2011

2012

195.56 172.06

2013

Corporate Governance

On the other hand, some of the Company shares have privileges written into the articles of association, such as the right to nominate the majority of the board. Additionally, the Company‟s remuneration policy regarding board members and executive managers is not disclosed. Moreover, the dividend policy and board members‟ and executive managers‟ CVs are not published on the Company web site. These constraints are factors pressuring the Company‟s compliance level to corporate governance principles. Within the context of social responsibility, a TRY 36k aid and donations amount was realized by the Company in 2012.

315,000

Issued Bonds

161.85 51.71

491.67

The Board of Şeker Leasing consists of 7 members, five of which are non-executive. Audit and Corporate Governance committees have been established under the authority of the Board, and a board member is responsible for credit. The Company shares are traded on the BIST and there is no limitation for the share transfer. The Company‟s web site provides sufficient information and disclosed documentation in terms of transparency; such as, the shareholder structure, audit reports, annual reports, articles of association, general assembly meeting documents, disclosure policy and code of ethics. Moreover, a Shareholder Relations Unit has been established within the scope of compliance to corporate governance principles and two independent board members are appointed in accordance with the recent CMB regulations.

In the event that favourable market conditions are met, the Company plans to meet a part of its external financing needs from the growth of its leasing services volume through bond issuances. The estimated budget projection submitted by the Company is shown in the table below. The budget projection covers bond issuance related issues and is based on the financial statements figures of provisional tax return. Şeker Leasing projected a 2013 year-end asset size of TRY 315mn through a 15.52% annual growth rate. Budgeted

67.70

-200 2008

6.6. Budget and Bond Issue

2012

70.23

463.51

352.99

102.15

0

The „borrowings and funding loans‟ of the Company had a dispersion of 56.50% short term borrowings and 43.50% bond issuances as of FYE2012. As of FYE2011, credit lines worth TRY 322mn were extended to Şeker Leasing by 15 different banking institutions and only 36.82% of this total line was drawn upon, with a free line amounting to TRY 203mn.

Actual

297.99

300

The funding unit of the Company reports expected cash flows daily and is managed in coordination with asset and liability committee (ALCO) through monthly meetings. The Company makes an effort to diversify its funding sources and reduce mismatches of assets and liabilities to avoid liquidity risk. Within this scope, funding through bond issuances continues.

Budget TRY (000)

416.33

400

LEASING ŞEKER FİNANSAL KİRALAMA A.Ş. BALANCE SHEET - ASSET

(Year end) 2012 USD

(Year end) 2012 TRY

(Year end) 2012 TRY

(Year end) 2011 TRY

(Year end) 2011 TRY

(Year end) 2010 TRY

TRY (000)

(Converted)

(Original)

(Average)

(Original)

(Average)

(Original)

A-TOTAL EARNING ASSETS (I+II+III) I- LOANS AND RECEIVABLES (net) a) Factoring Receivables b) Financing Loans c) Lease Receivables d) Over Due Loans e) Others f) Receivable from Customer due to Brokerage Activities g) Allowance for Loan and Receivables Losses (-) II-BANKS AND OTHER EARNING ASSETS a) Banks b) Other

142,084.83 116,185.31 0.00 0.00 109,423.38 15,237.96 0.00

252,570.00 206,531.00 0.00 0.00 194,511.00 27,087.00 0.00

219,433.50 194,262.00 0.00 0.00 179,263.00 29,663.00 0.00

186,297.00 181,993.00 0.00 0.00 164,015.00 32,239.00 0.00

178,739.00 176,123.50 0.00 0.00 157,200.00 32,170.50 0.00

171,181.00 170,254.00 0.00 0.00 150,385.00 32,102.00 0.00

(Year end) 2010 TRY

(Year end) 2009 TRY

As % of 2012 Assets

As % of 2011 Assets

As % of 2010 Assets

2012 Growth

2011 Growth

2010 Growth

(Average)

(Original)

(Original)

(Original)

(Original)

Rate

Rate

Rate

157,321.50 153,447.00 0.00 0.00 136,307.50 27,823.50 0.00

143,462.00 136,640.00 0.00 0.00 122,230.00 23,545.00 0.00

90.50 74.01 n.a n.a 69.70 9.71 n.a

88.77 86.72 n.a n.a 78.15 15.36 n.a

88.39 87.91 n.a n.a 77.65 16.58 n.a

35.57 13.48 n.a n.a 18.59 -15.98 n.a

8.83 6.89 n.a n.a 9.06 0.43 n.a

19.32 24.60 n.a n.a 23.03 36.34 n.a

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

n.a

n.a

n.a

n.a

n.a

n.a

-8,476.04 25,899.53 25,899.53 0.00

-15,067.00 46,039.00 46,039.00 0.00

-14,664.00 25,171.50 25,171.50 0.00

-14,261.00 4,304.00 4,304.00 0.00

-13,247.00 2,615.50 2,615.50 0.00

-12,233.00 927.00 927.00 0.00

-10,684.00 3,874.50 3,874.50 0.00

-9,135.00 6,822.00 6,822.00 0.00

-5.40 16.50 16.50 n.a

-6.80 2.05 2.05 n.a

-6.32 0.48 0.48 n.a

5.65 969.68 969.68 n.a

16.58 364.29 364.29 n.a

33.91 -86.41 -86.41 n.a

c) Balance With Banks-Current Accounts

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

n.a

n.a

n.a

n.a

n.a

n.a

III-SECURITIES AT FAIR VALUE THROUGH P/L a) Treasury Bills and Government Bonds b) Other Investment c) Repurchase Agreement B- INVESTMENTS IN ASSOCIATES (net)+EQUITY SHARE a) Investments in Associates (net) b) Equity Share C-NON-EARNING ASSETS a) Cash and Cash Equivalents b) Financial Assets at Fair Value through P/L c) Asset Held For Sale And Discontinued Operations (net) d) Other - Intangible Assets - Property and Equipment - Deferred Tax - Other

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

n.a n.a n.a n.a

n.a n.a n.a n.a

n.a n.a n.a n.a

n.a n.a n.a n.a

n.a n.a n.a n.a

n.a n.a n.a n.a

TOTAL ASSETS

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

n.a

n.a

n.a

n.a

n.a

n.a

0.00 0.00 14,909.43 0.00 0.00

0.00 0.00 26,503.00 0.00 0.00

0.00 0.00 25,036.50 0.00 0.00

0.00 0.00 23,570.00 0.00 0.00

0.00 0.00 23,025.50 0.00 0.00

0.00 0.00 22,481.00 0.00 0.00

0.00 0.00 20,353.50 0.00 0.00

0.00 0.00 18,226.00 0.00 0.00

n.a n.a 9.50 n.a n.a

n.a n.a 11.23 n.a n.a

n.a n.a 11.61 n.a n.a

n.a n.a 12.44 n.a n.a

n.a n.a 4.84 n.a n.a

n.a n.a 23.35 n.a n.a

123.76

220.00

144.50

69.00

105.00

141.00

247.50

354.00

0.08

0.03

0.07

218.84

-51.06

-60.17

14,785.67 7.31 4,686.66 7,566.94 2,524.75

26,283.00 13.00 8,331.00 13,451.00 4,488.00

24,892.00 27.00 7,195.00 13,946.00 3,724.00

23,501.00 41.00 6,059.00 14,441.00 2,960.00

22,920.50 50.50 5,693.50 13,754.50 3,422.00

22,340.00 60.00 5,328.00 13,068.00 3,884.00

20,106.00 72.50 4,404.00 11,870.00 3,759.50

17,872.00 85.00 3,480.00 10,672.00 3,635.00

9.42 0.00 2.99 4.82 1.61

11.20 0.02 2.89 6.88 1.41

11.54 0.03 2.75 6.75 2.01

11.84 -68.29 37.50 -6.86 51.62

5.20 -31.67 13.72 10.51 -23.79

25.00 -29.41 53.10 22.45 6.85

156,994.26

279,073.00

244,470.00

209,867.00

201,764.50

193,662.00

177,675.00

161,688.00

100.00

100.00

100.00

32.98

8.37

19.78

8 Şeker Finansal Kiralama A.Ş.

LEASING

ŞEKER FİNANSAL KİRALAMA A.Ş. BALANCE SHEET-LIABILITIES+EQUITY TRY (000) C- COST BEARING RESOURCES (I+II) I-PAYABLES a) Factoring Payables b) Lease Payables c) Other II-BORROWING FUNDING LOANS & OTHER a) Fund Borrowed-Short Term b) Fund Borrowed-Long Term c ) Marketable Securities For Issued (net) d) Securities Sold Under Repurchase Agreements e) Subordinated Loans D- NON COST BEARING RESOURCES a) Provisions b) Current & Deferred Tax Liabilities c) Trading Liabilities (Derivatives) d) Other Liabilities E- TOTAL LIABILITIES F- MINORITY INTEREST F- EQUITY a) Prior Year's Equity b) Equity (Internal & external resources added during the year) c) Minority Interest d) Profit & Loss TOTAL LIABILITY+EQUITY USD 1 = TRY

(Year end) 2012 USD (Converted)

(Year end) 2012 TRY (Original)

(Year end) 2012 TRY (Average)

(Year end) 2011 TRY (Original)

(Year end) 2011 TRY (Average)

(Year end) 2010 TRY (Original)

(Year end) 2010 TRY (Average)

(Year end) 2009 TRY (Original)

As % of 2012 Assets (Original)

As % of 2011 Assets (Original)

As % of 2010 Assets (Original)

131,754.61 4,495.39 0.00 0.00 4,495.39 127,259.23 71,902.57 0.00 55,356.66 0.00 0.00 402.79 162.58 216.02 24.19 0.00 132,157.40 0.00 24,836.86 22,757.65 65.82 18.56 1,994.82

234,207.00 7,991.00 0.00 0.00 7,991.00 226,216.00 127,814.00 0.00 98,402.00 0.00 0.00 716.00 289.00 384.00 43.00 0.00 234,923.00

168,711.00 4,781.00 0.00 0.00 4,781.00 163,930.00 163,930.00 0.00 0.00 0.00 0.00 702.00 192.00 510.00 0.00 0.00 169,413.00

35,491.00 31,182.00 -19.00 27.00 4,301.00

143,911.50 6,535.50 0.00 0.00 6,535.50 137,376.00 137,376.00 0.00 0.00 0.00 0.00 427.00 110.50 316.50 0.00 0.00 144,338.50 0.00 33,336.50 23,510.00 2,490.50 13.50 7,322.50

130,201.00 4,198.00 0.00 0.00 4,198.00 126,003.00 126,003.00 0.00 0.00 0.00 0.00 305.00 97.00 208.00 0.00 0.00 130,506.00

40,454.00 35,491.00 -27.00 34.00 4,956.00

163,166.50 6,827.00 0.00 0.00 6,827.00 156,339.50 156,339.50 0.00 0.00 0.00 0.00 625.50 158.00 467.50 0.00 0.00 163,792.00 0.00 37,972.50 33,336.50 -23.00 30.50 4,628.50

157,622.00 8,873.00 0.00 0.00 8,873.00 148,749.00 148,749.00 0.00 0.00 0.00 0.00 549.00 124.00 425.00 0.00 0.00 158,171.00

44,150.00 40,454.00 117.00 33.00 3,546.00

201,459.00 6,386.00 0.00 0.00 6,386.00 195,073.00 145,872.00 0.00 49,201.00 0.00 0.00 709.00 240.50 447.00 21.50 0.00 202,168.00 0.00 42,302.00 37,972.50 45.00 33.50 4,251.00

31,182.00 15,838.00 5,000.00 0.00 10,344.00

83.92 2.86 n.a n.a 2.86 81.06 45.80 n.a 35.26 n.a n.a 0.26 0.10 0.14 0.02 n.a 84.18 n.a 15.82 14.50 0.04 0.01 1.27

80.39 2.28 n.a n.a 2.28 78.11 78.11 n.a n.a n.a n.a 0.33 0.09 0.24 n.a n.a 80.72 n.a 19.28 16.91 -0.01 0.02 2.36

81.39 4.58 n.a n.a 4.58 76.81 76.81 n.a n.a n.a n.a 0.28 0.06 0.22 n.a n.a 81.67 n.a 18.33 16.10 -0.01 0.01 2.22

38.82 67.14 n.a n.a 67.14 38.00 -22.03 n.a n.a n.a n.a 1.99 50.52 -24.71 n.a n.a 38.67 n.a 9.14 13.98 -533.33 -2.94 -28.45

7.04 -46.12 n.a n.a -46.12 10.21 10.21 n.a n.a n.a n.a 27.87 54.84 20.00 n.a n.a 7.11 n.a 13.98 13.82 42.11 25.93 15.23

21.06 111.36 n.a n.a 111.36 18.05 18.05 n.a n.a n.a n.a 80.00 27.84 104.33 n.a n.a 21.20 n.a 13.82 96.88 -100.38 n.a -58.42

156,994.26

279,073.00

244,470.00

209,867.00

201,764.50

193,662.00

177,675.00

161,688.00

100.00

100.00

100.00

32.98

8.37

19.78

1.7776

1.8889

9 Şeker Finansal Kiralama A.Ş.

1.5376

1.4873

2012 Growth Rate

2011 Growth Rate

2010 Growth Rate

LEASING

ŞEKER FİNANSAL KİRALAMA A.Ş. INCOME STATEMENT TRY (000)

2012

2011

2010

2009

2008

Net Interest Income A) Interest income a) Factoring Interest Income b) Financing Loans Interest Income c) Lease Income d) Banks B) Fınancial Expense Net Fee and Commission Income a) Fee and Commission Income b) Fee and Commission Expense Total Operating Income Interest Income from Other Operating Field Foreign Exchange Gain or Loss (net) (+/-) Gross Profit from Retail Business Gains or Loss on Derivative Instruments (+/-) Income on Sale of Equity Participations and Consolidated Affiliates Gains from Investment Securities (net) Other Operating Income Taxes other than Income Tax Dividend Provisions Provision for Impairment of Loan and Trade Receivables Other Provision Total Operating Expense Salaries and Employee Benefits Depreciation and Amortization Other Expenses Profit from Operating Activities before Income Tax Income Tax – Current Income Tax – Deferred Net Profit for the Period

13,165.00 26,625.00 0.00 0.00 26,310.00 315.00 13,460.00 -940.00 0.00 940.00 3,213.00 0.00 -375.00 0.00 -214.00 0.00 0.00 3,802.00 0.00 0.00 3,371.00 3,371.00 0.00 7,634.00 3,308.00 0.00 4,326.00 4,433.00 23.00 864.00 3,546.00

10,895.00 21,960.00 0.00 0.00 21,950.00 10.00 11,065.00 -331.00 0.00 331.00 2,342.00 0.00 -734.00 0.00 0.00 0.00 0.00 3,076.00 0.00 0.00 3,172.00 3,172.00 0.00 6,015.00 2,932.00 0.00 3,083.00 3,719.00 51.00 -1,288.00 4,956.00

10,469.00 20,011.00 0.00 0.00 20,008.00 3.00 9,542.00 -375.00 0.00 375.00 815.00 0.00 -752.00 134.00 0.00 0.00 0.00 1,433.00 0.00 0.00 3,574.00 3,574.00 0.00 5,213.00 2,958.00 0.00 2,255.00 2,122.00 0.00 -2,179.00 4,301.00

8,034.00 21,996.00 0.00 0.00 21,976.00 20.00 13,962.00 -607.00 0.00 607.00 426.00 0.00 -579.00 0.00 84.00 0.00 0.00 921.00 0.00 0.00 1,415.00 1,415.00 0.00 5,607.00 2,717.00 0.00 2,890.00 831.00 12.00 -9,525.00 10,344.00

9,008.00 22,716.00 0.00 0.00 22,498.00 218.00 13,708.00 -418.00 0.00 418.00 1,241.00 0.00 269.00 0.00 0.00 0.00 0.00 972.00 0.00 0.00 3,027.00 3,027.00 0.00 4,912.00 2,454.00 0.00 2,458.00 1,892.00 0.00 -1,112.00 3,004.00

Total Income Total Expense Provision Pretax Profit

15,813.00 8,009.00 3,371.00 4,433.00

13,640.00 6,749.00 3,172.00 3,719.00

11,661.00 5,965.00 3,574.00 2,122.00

8,432.00 6,186.00 1,415.00 831.00

9,831.00 4,912.00 3,027.00 1,892.00

10 Şeker Finansal Kiralama A.Ş.

LEASING

ŞEKER FİNANSAL KİRALAMA A.Ş. FINANCIAL RATIO %

2012

2011

2010

I. PROFITABILITY & PERFORMANCE 1. ROA - Pretax Profit / Total Assets (avg.) 2. ROE - Pretax Profit / Equity (avg.) 3. Total Income / Equity (avg.) 4. Total income / Total Assets (avg.) 5. Provisions / Total Income 6. Total Expense / Total Resources (avg.) 7. Net Profit for the Period / Total Assets (avg.) 8. Total Income / Total Expenses 9. Non Cost Bearing Liabilities + Equity- Non Earning Assets / Assets 10. Non Cost Bearing Liabilities - Non Earning Assets / Assets 11. Total Operating Expenses / Total Income 12. Interest Margin 13. Operating ROAA = Operating Net Incomes / Assets (avg.) 14. Operating ROAE = Operating Net Incomes / Equity Capital (avg.) 15. Interest Coverage – EBIT / Interest Expenses 16. Net Profit Margin 17. Gross Profit Margin 18. Market Share 19. Growth Rate

1.81 10.48 37.38 6.47 21.32 3.96 1.45 197.44 6.58 -9.24 48.28 6.00 7.32 42.30 132.93 22.42 28.03 1.38 32.98

1.84 9.79 35.92 6.76 23.26 4.12 2.46 202.10 8.38 -10.90 44.10 6.10 7.33 38.93 133.61 36.33 27.27 1.13 8.37

1.19 6.37 34.98 6.56 30.65 4.13 2.42 195.49 7.00 -11.32 44.70 6.65 6.56 34.99 122.24 36.88 18.20 1.23 19.78

II. CAPITAL ADEQUACY (year end) 1. Equity Generation / Prior Year‟s Equity 2. Internal Equity Generation / Previous Year‟s Equity 3. Equity / Total Assets 4. Equity / Total Liabilities 5. Free Equity / Total Receivables Ratio 6. Tangible Assets / Total Assets 7. Intangible Assets / Total Assets 8. Equity / Total Guarantees and Commitments + Equity

0.29 8.77 15.82 18.79 17.34 2.99 0.00 0.16

-0.08 13.96 19.28 23.88 18.88 2.89 0.02 0.19

-0.06 13.79 18.33 22.44 17.68 2.75 0.03 0.12

III. LIQUIDITY (year end) 1. Liquid Assets + Marketable Securities / Total Assets 2. Liquid Assets + Marketable Securities / Total Liabilities 3. Short Term Borrowings / Total Assets 4. Net Interest and Commission / Total Assets 5. Liquid Assets + Marketable Securities / Equity

16.50 19.60 48.66 4.38 104.28

2.05 2.54 80.39 5.03 10.64

0.48 0.59 81.39 5.21 2.61

IV. ASSET QUALITY 1. Loan and Receivable‟s Loss Provisions / Total Loans and Receivables 2. Total Provisions / Profit Before Provision and Tax 3. Impaired Receivables / Gross Receivables 4. Impaired Receivables / Equity 5. Loss Reserves for Receivables / Impaired Receivables 6. Collaterals / Total Receivables 7. Total FX Position / Total Assets 8. Total FX Position / Equity 9. Assets / Total Guarantees and Commitments + Assets

6.80 43.20 12.22 61.35 55.62 227.89 155.97 985.87 1.00

7.27 46.03 16.43 79.69 44.24 253.35 194.73 1,010.21 0.96

6.70 62.75 17.59 90.45 38.11 223.59 155.38 847.84 0.64

11 Şeker Finansal Kiralama A.Ş.