Daily Market Watch 19/02/2014. Market Commentary. Industry News A new participation bank on the way. Corporate News & Trading Ideas. Calendar.

Transcription

1 Baslık Daily Market Watch 12/03/2014 Market Commentary Concerns over Ukraine and Chinese economy put a pressure on EM assets and currencies as risk off mood resurfaced. TL weakness is accompanied with the rising interest rates as long term benchmark rate topped over 11%. It was a slow day again and Turkish equity market traded in a narrow range band where BIST-100 added +0.53% and closed at 63,066 level on a $934mn vol. We observed US markets lost 0.4% after BIST closing while most Asian shares are currently trading lower on the back of the global weakness. Political tension both in Turkey and Ukraine, poor global sentiment along with weaker TL hint for a negative opening today around 62,500 level while index is likely to continue further ground under the current conditions down to 62,000. Gubre Fabrikalari may display a stronger price performance today on the back of its robust 4Q13 results. Today Current Account Balance for January (Market $-5.2bn -Is Inv. $- 5.3bn) will be the event of the local agenda while US MBA Mortgage Applications will also be on watch-list. Currency trades weaker at Industry News A new participation bank on the way. Corporate News & Trading Ideas TRCAS TI: GUBRF TI: SNGYO TI: BANVT TI: RYSAS TI: KOZAA TI: IPEKE TI: MGROS TI: YAZIC TI: GLYHO TI: Calendar Weak contribution from its subsidiaries GUBRF: Better results in 4Q13 and high dividend payment SNGYO 4Q13 financials: Mixed results. Slightly Negative. BANVT: Negative set of results RYSAS: Strong results in 4Q13 KOZAA 4Q13 results - Neutral IPEKE 4Q13 results MGROS 4Q13: Met the guidance again YAZIC 4Q13 Earnings Review GLYHO 4Q13 Financial Results Local Calendar 12/03/2014 Current Account Balance - January (Market $-5.2bn -Is Inv. $- 5.3bn) Global Calendar Exp. Pri. 12/03/2014 BZ:FIPE CPI - Weekly Time:10:00 0,62% 0,58% UK:Visible Trade Balance GBP/Mn UK:Trade Balance Non EU GBP/Mn UK:Trade Balance Time:11: US:MBA Mortgage Applications US:Monthly Budget Statement Please refer to important disclaimer at the end of this report. Market Figures Close Daily 1M BIST-100, TRY 63, % -2.4% Trading Vol., TRM mn 2,296-3% -38.9% MSCI EM Free % 2.0% MSCI Turkey % -3.1% TRLIBOR, 3M% bps 60 bps Benchmark Bond bps 52 bps Eurobond bps -5 bps US$/TRY % 0.2% EUR/TRY % 0.3% BIST 2014E P/E 9.22% BIST 2015E P/E 8.29% MSCI Emerging Market Indices, in US$ terms /02/ /02/ /02/2014 MSCI EM Turkey 26/02/ /03/2014 MSCI EM MSCI Sector Indices Best/Worst Performers Best 5 Daily Worst 5 Daily Consumer Discr. 0.9% Energy -0.8% Utility 0.8% Banking -0.2% Public serv. 0.8% Pharm&Biotech -0.1% Tech Hard&Eqp 0.6% Airlines 0.1% Semiconductors 0.6% Industrial 0.1% BIST-100 Best / Worst Performers Best 5 Daily Worst 5 Daily FROTO 4% SKBNK -4% IPEKE 4% SASA -4% DOAS 4% TEKST -2% TOASO 4% DYHOL -2% GOZDE 4% ASUZU -2% BIST-100 Top 5 by Trading Volume Ticker Close Daily Vol. (TRY mn) GARAN % 292 THYAO % 241 HALKB % 209 AKBNK % 142 VAKBN % 125 1

2 Sinpas REIC SNGYO 4Q13 financials: Mixed results. Slightly Negative. Sinpas REIT recorded TL3mn net loss, worse than both our TL6mn and market s TL2mn net profit estimates. Higher than expected marketing expenses and FX losses depressed better than expected gross earnings. In the fourth quarter, the company delivered mostly from Istanbul Palaces (242 units), Bursa Modern (110 units) and Bosporus (42 units) and recorded TL185mn revenues. This implies 22% QoQ and 173% YoY improvement at the top-line level. Please note that revenues can only be recorded two years later when the units are completed and delivered to the clients while the operating expenses are recorded when they are accrued. Therefore, in REICs, gross earnings represent previous years presale performance, while the operational expenses correspond to the presales performance of the same period. In the fourth quarter marketing expenses doubled meanwhile the general administration expenses increased by 30% QoQ. Remember that in the 4Q13 company presales performance declined by 22% therefore marginal impact of the marketing expenses seems negative. SNGYO TI OP 71% Upside Price Mcap, mn FF Mcap, mn P/E P/BV 0.39 EV/EBITDA Avg. Vol. Mn Relative Perf. % All in all, a decent gross earnings signal strong deliveries pertaining to its past performance while the hike in marketing expenses coupled with a weak presales in 4Q13 signal a weak current performance for the company. Gubre Fabrikalari iurganci@isyatirim.com.tr GUBRF: Better results in 4Q13 and high dividend payment Beating both consensus call of TL18mn and our bullish estimate of TL29mn, Gübre Fabrikaları recorded TL55mn net income in 4Q13 vs TL58mn in 4Q12. The deviation stemmed from better than anticipated operational performance during 4Q13. Despite lower financial expenses, lower bottom-line figure on annual basis was a result of slim operational margins due to lower fertilizer prices on YoY basis. Better than estimates (Is Inv: TL575mn, Cons:TL546mn), the company generated TL650mn revenues in 4Q13, up 24% YoY, driven by combined impact of increased sales prices and volume. Moreover, EBITDA came at TL160mn in 4Q13, much higher than both our estimate of TL80mn and cons. of TL87mn, thanks to sharp improvement at Razi operations. Following the completion of its debt on Razi back in April 2013, Gubretas decided to distribute TL66.8mn gross dividends from its 2013 net income, implying a dividend yield of 5.5% and pay-out ratio of 71%. We expect a strong reaction to the results since operational performance and bottom-line exceed estimates. High dividend payment is another supportive factor as well. We maintain our OUTPERFORM recommendation for GUBRF with a target price of 4.62TL/share, offering 27% upside potential. GUBRF TI OP 27% Upside Price Mcap, mn 1,219 1,543 FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. %

3 Turcas Weak contribution from its subsidiaries Turcas disclosed a net loss of TL16mn in 4Q13, much worse than our estimate of TL2.7mn. The main difference between the actual figure and the estimate stemmed from lower than anticipated equity income from its subsidiaries. Shell & Turcas JV (STAS), in which Turcas has a 30% stake, recorded revenues of TL3.6bn (up by 8% YoY) and net loss of TL0.5mn in 4Q13. Recall the company had posted a net loss of TL1.4mn in 4Q12. Turcas 30% subsidiary in electricity generation business RWE & Turcas South Electricity Generation announced a net loss of TL86mn in 4Q13 compared to a net income of TL12.9mn in 4Q12. Note that 775MW NGPP became operational by the end of June 13. Turcas subsidiary in refining business STAR Refinery, announced a non-cash income of TL91mn in 4Q13. Star Refinery will build a feedstock refinery with a 10 tpa capacity on Petkim s land which is expected to be operational in Turcas posted net financial expense of TL16mn compared to a net financial income of TL4mn in 4Q13 due to depreciation of TL. The company has a net debt position of TL374mn as of December but note that the company carries receivables of TL334mn from related parties. We might see a negative reaction to the results. We will go over our estimates and TP. TRCAS TI OP 84% Upside Price Mcap, mn FF Mcap, mn P/E P/BV EV/EBITDA n.a ####### Avg. Vol. Mn Relative Perf. % TL (mn) 4Q13 4Q12 YoY 3Q13 QoQ YoY Revenues % % % Gross Margin 0.2% 6.7% 5.2% 5.2% 3.4% EBIT (*) % % % EBIT Margin -23.7% -41.6% -24.3% -26.9% -52.3% Reported EBITDA % % % Reported EBITDA Margin -36.0% -35.8% 55.2% 13.9% 35.7% Adjusted EBITDA % % % Adjusted EBITDA Margin -20.9% -37.9% -19.9% -23.8% -47.2% Financial Income-net % % n.m Net Profit % % % Net Margin % 88.1% 67.4% 52.0% 303.2% 3

4 TL GUBRF (mn) 4Q13 4Q12 YoY 3Q13 QoQ YoY Revenues % % 2,265 2,227 2% Gross Margin 30.7% 52.8% 23.7% 25.7% 29.1% EBIT % % % EBIT Margin 21.0% 53.2% 9.7% 14.6% 21.6% Reported EBITDA (*) % % % Reported EBITDA Margin 21.2% 34.7% 22.4% 20.4% 30.1% Adjusted EBITDA (**) % % % Adjusted EBITDA Margin 24.6% 52.0% 12.3% 17.4% 24.0% Financial Income-net n.m. -37 n.m % Net Profit % % % Net Margin 8.5% 11.0% -1.4% 4.2% 8.5% Banvit BANVT: Negative set of results In-line with both our consensus net loss estimate of TL44mn, Banvit posted TL46mn net loss in 4Q13 compared to TL27mn net loss figure in 4Q12. Increased net loss figure can be attributable to lower operational profitability and higher f-x losses. Despite much lower than estimated EBITDA figure, net income came in-line with forecasts on the back of TL12mn deferred tax income. Banvit generated TL379mn turnover in 4Q13, up 28% YoY, thanks to higher sales volume with increased market share. However, gross margin deteriorated to 3.9% in 4Q13 from 5,8% in 4Q12 on the back of decreased poultry prices with poor demand and higher cost base with increased feed prices. Therefore, EBITDA figure stood at negative TL18mn in 4Q13 vs negative TL7mn in 4Q12. Although bottom-line stood in-line, we may see negative reaction today since operational performance was much weaker than estimates. BANVT TI OP 34% Upside Price Mcap, mn FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % TL BANVT (mn) 4Q13 4Q12 YoY 3Q13 QoQ YoY Revenues % % 1, % Gross Margin 3.9% 5.8% 13.7% 12.0% 13.9% EBIT % % % EBIT Margin -9.7% -7.8% 4.7% 1.2% 1.9% Reported EBITDA (*) % % % Reported EBITDA Margin -4.5% -2.0% 7.9% 5.1% 6.9% Adjusted EBITDA (**) % % % Adjusted EBITDA Margin -4.7% -2.3% 8.3% 5.2% 6.5% Financial Income-net n.m % n.m. Net Profit n.m. -7 n.m n.m. Net Margin -12.1% -9.0% -1.6% -3.4% 0.8% 4

5 Reysas RYSAS: Strong results in 4Q13 Beating our TL8mn net income estimate, Reysas Logistics recorded TL12mn net income in 4Q13, significantly higher than TL3.9mn in 4Q12. Bottom-line almost tripled on annual basis driven by top-line growth along with superior improvement at operational performance. Higher rent income from warehousing segment was the major driver of the operational enhancement. Revenues surged 16% YoY to TL105mn while EBITDA climbed up to TL28mn in 4Q13. This implied a record EBITDA margin of 27% in 4Q13. We expect a positive reaction today to the results. RYSAS TI OP 26% Upside Price Mcap, mn FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % TL RYSAS (mn) 4Q13 4Q12 YoY 3Q13 QoQ YoY Revenues % % % Gross Margin 25.6% 22.0% 31.7% 25.1% 15.8% EBIT % % % EBIT Margin 22.2% 11.1% 25.3% 19.0% 6.7% Reported EBITDA (*) % % % Reported EBITDA Margin 23.6% 12.9% 20.6% 22.8% 15.9% Adjusted EBITDA (**) % % % Adjusted EBITDA Margin 26.6% 17.0% 30.6% 24.5% 12.3% Financial Income-net % % % Net Profit % % n.m. Net Margin 11.5% 4.3% 6.0% 8.2% -0.1% Koza Anadolu Metal iurganci@isyatirim.com.tr KOZAA 4Q13 results - Neutral Koza Anadolu recorded TL136mn net profit in 4Q13 vs TL186mn in 4Q12. Since Koza Gold has disclosed its 4Q13 results, there is nothing new on mining front. While mining segment posted TL150mn net profit in 3Q13, other segments (media, logistics and food) recorded TL15mn net loss in 4Q13. Solo net cash position decreased to TL159mn as of 2013YE from TL191mn as of 2012YE. KOZAA TI OP 31% Upside Price Mcap, mn 928 1,211 FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % TL KOZAA (mn) 4Q13 4Q12 YoY 3Q13 QoQ YoY Revenues % 298 1% % Gross Margin 37.0% 46.9% 57.4% 52.1% 64.5% EBIT % % % EBIT Margin 20.1% 30.3% 42.1% 35.9% 50.8% Reported EBITDA (*) % % % Reported EBITDA Margin 29.1% 39.8% 56.6% 47.7% 58.1% Adjusted EBITDA (**) % % % Adjusted EBITDA Margin 36.1% 38.4% 58.7% 51.1% 59.5% Financial Income-net % % % Net Profit % % % Net Margin 45.1% 61.3% 17.4% 24.8% 28.8% 5

6 Yazicilar Holding YAZIC 4Q13 Earnings Review Yazicilar Holding posted TL35mn net loss in its 4Q13 consolidated financial statements compared to TL7mn net profit in the same period last year. No consensus is available for comparison. The main culprit behind the YoY deterioration can be cited as TL82mn lower contribution from the equity accounted subsidiaries, despite the TL32mn positive contribution of financial income mainly due to FX gains. The Holding posted TL427mn of net revenues in 4Q13 (up by 23% YoY and 5% QoQ). The automotive segment s YoY growth was 30% in 4Q13, reaching to TL272mn thanks to strong contribution of Celik Motor, while retail segment grew by 5% YoY to TL141mn in 4Q13. In retail segment, Anadolu Restaurant reported TL100mn (+17% YoY) net revenues in 4Q13, while number of stores edged up to 231 as of Dec-end 2013 from 219 as of Sep-end, The consolidated EBITDA of the Holding came in as TL9mn in 4Q13 compared to negative TL1mn EBITDA in the same period last year. The automotive segment reported TL26mn of EBITDA (+79% YoY), while the retail segment posted negative TL1mn, better than last year s negative EBITDA of TL4mn. The EBITDA margin of the automotive segment stands at 10%, 2.6pp up from 7% recorded in 4Q12. The solo net cash position of the Holding is unchanged at TL81.8mn as of end of The impact of the results on the share price is expected to be neutral due to the mix operating and bottom-line performances and no major surprise since its listed assets capturing a significant 92% share in the NAV have already disclosed their results. YAZIC TI OP 40% Upside Price Mcap, mn 2,840 3,984 FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % Yazıcılar Holding will propose gross dividends of TL20mn (TL0.125/ share), negative Yazicilar Holding BoD decided to propose TL407mn of cash dividends (TL0.125 per share), half of our expectation of TL0.25/share. The planned dividend corresponds to 12.5% of paid-in-capital (1.7% of the FY13 distributable income) and to a dividend yield of 0.7% as of yesterday s closing. The dividends will be paid in May 30,

7 İpek Enerji IPEKE 4Q13 results Ipek Enerji posted TL9mn net income in 4Q13 vs TL3mn in 4Q12. Media, logistics and food segments continue to post losses while mining was the sole profit driver. Solo net cash position decreased to TL159mn as of 2013YE vs TL201mn as of 2012YE. IPEKE TI OP 36% Upside Price Mcap, mn FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % TL IPEKE (mn) 4Q13 4Q12 YoY 3Q13 QoQ YoY Revenues % 298 1% % Gross Margin 36.90% % 57.40% 52.00% 64.50% EBIT % % % EBIT Margin 18.20% 24.30% 39.90% 33.70% 48.40% Reported EBITDA (*) % % % Reported EBITDA Margin 27.30% % 54.30% 45.50% 55.70% Adjusted EBITDA (**) % % % Adjusted EBITDA Margin 34.40% 32.40% 56.40% 49.00% 57.10% Financial Income-net % 21 24% % Net Profit % 22-60% % Net Margin 2.90% 1.00% 7.30% 6.00% 6.60% 7

8 Migros MGROS 4Q13: Met the guidance again Migros announced TL157mn of net loss in 4Q13, in line with with the consensus net loss estimate of TL159mn and better than our expectation of TL206mn net loss. The deviation from our estimate stems from lower than expected financial expenses, although the EBITDA figure is perfrectly in line with the announced numbers (IS Investment estimate TL124mn vs TL121mn announced). 4Q13 EBITDA came in better than consensus estimate of TL110mn. Migros generated TL1.8bn of revenues in 4Q13, up by 10% YoY but 9% below 3Q13 due to seasonality. FY13 revenues also increased by 10% to TL7.1bn with 122 net store openings. According to the Nielsen data, the company managed to expand its market share in modern FMCG market to 14.2% from 13.6% a year ago. 4Q13 EBITDA is announced at TL121mn, up by 22% YoY reaching a margin expansion of 0.6ppt to 6.6%. FY13 EBITDA came in at TL435mn, 8% above FY12 with a margin of 6.1%, slightly below 6.2% posted a year ago. The strong operational performance has not been reflected to the bottomline due to heavy FX losses, ending up with a TL463mn of net loss in FY13. Migros carries TL1.9bn of net debt as of YE13 up from TL1.4bn a year ago mainly due to the depreciation of TL against Euro as the company holds 876mn of short Euro position at YE13. The operational figures are parallel to company s full year guidance of double digit revenue growth, gross margin of % and EBITDA margin of 6-6.5%. As for 2014 guidance, the Company targets to achieve double digit revenue growth in 2014 and 6-6.5% EBITDA margin. The results seem to be within expactations. We will go over our estimates following the teleconference to be held today at 13:00 Istanbul time but maintain our UNDERPERFORM recommendation. The market reaction on the results is expected to be neutral. MGROS TI UP 12% Upside Price Mcap, mn 2,679 2,990 FF Mcap, mn P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % TL (mn) 4Q13 4Q12 YoY 3Q13 QoQ FY13 FY12 YoY Revenues 1, , % 2, % 7, , % Gross Margin 27.2% 26.6% 26.1% 26.6% 26.3% EBIT % % % EBIT Margin 4.6% 3.9% 4.7% 4.1% 4.2% Reported EBITDA % % % Reported EBITDA Margin 5.7% 5.3% 5.6% 5.3% 5.1% Adjusted EBITDA (*) % % % Adjusted EBITDA Margin 6.6% 6.0% 6.5% 6.1% 6.2% Financial Income-net (**) (206.7) (71.3) 190% (245.4) -16% (659.5) (119.0) 454% Net Profit (156.6) (29.0) 440% (180.6) -13% (463.2) 88.1 n.m. Net Margin -8.6% -1.8% -9.0% -6.5% 1.4% (*) Adjusted EBITDA= EBIT+ Depreciation+Amortization (**) Financial income reported+ financial expenses reported+ FX gains (losses) booked under other income 8

9 Global Investment Holding GLYHO 4Q13 Financial Results Global Investment Holding reported TL45mn net profit in 4Q13 comparing favorably with the TL23mn net loss in the same period of the previous year. No consensus estimate is available for comparison. The YoY improvement at the bottom line stemmed from negative goodwill gain from port of Bar and TL24mn lower financial expenses as last years financial expenses includes provision expenses due to the letter of guarantee related to the Baskentgaz tender. The revenues came in at TL65mn (+52% YoY, -15% QoQ) in 4Q13 on the back of growth in the revenues of Port Akdeniz and strong growth in CNG business Naturelgaz. Consolidated port revenues reached TL143.5mn for the full year 2013, representing 17% increase over 2012 thanks to the to the robust operational performance of Port of Antalya.Total containers handled in the Port of Antalya reached 217K TEU in 2013 versus 186K for 2012, implying a significant 17% growth. In addition average container revenues were up by 9.5% to USD161/TEU in In 2013FY, Naturelgaz revenues were realized at TL54.4mn, up from TL38.3mn in the same period of 2012, representing 41% growth. Sales volume stood at 37.7mn m3 compared to 27.8mn m3 in 2012 implying 27% increase. Consolidated EBITDA came in at TL14mn (+57% YoY, -48% QoQ) in the quarter, carrying the full year EBITDA to TL61mn (+38% YoY). The port division s EBITDA was TL93.9mn in 2013 excluding TL55.1mn negative goodwill gain from the Port of Bar acquisition in 2013 compared to an EBITDA of TL80.2mn in 2012, an improvement of 17%. The solo net debt position of the Holding increased to TL309mn as of 2013YE compared to TL289mn as of end-3q13. The consolidated net debt increased to TL697mn from TL599mn on the back of recent port acquisitions of Port of Bar and Barcelona Cruise Port. GLYHO TI NR Price 1.18 Mcap, mn 266 FF Mcap, mn 119 P/E P/BV EV/EBITDA Avg. Vol. Mn Relative Perf. % Industry News A new participation bank on the way. Turkbank, which was intervened by the SDIF back in 1997 and whose banking licence was cancelled during 2001 crisis, will be reborn from its ashes as a participation bank as the main shareholder SDIF and previous owner Turkbank Pension Fund have reached an agreement, and the bank s liquidation has been finalised. A SDIF representative said they will be applying to the BRSA possibly for a participation banking license as early as this month. (Neutral at this stage). New ly Announced Capital Increases/Decrease and dividend payments (%) Cash Dividend Ticker Rights Issue Bonus Issue Stock Dividend Gross Dividends in Cash Ex-Date Base Price Per Share Dividend Yield CCOLA 33.41% 28/05/ TL 0.72% GUBRF 20.00% 30/05/ TL 5.48% HLGYO 0.46% TL 0.41% YAZIC 12.50% 30/05/ TL 0.70% 9

10 Currency Most emerging market currencies continued to loose ground against the greenback on the back of weak global sentiment. Loss of momentum in Wall Street bourses also fueled the negative mood in EM markets. By falling 1.25% against the greenback, Turkish lira was worst performer currency on Tuesday on a second consecutive day. Rising risk reversal levels suggest loss of positive momentum in TL. As of this morning USDTRY trades flat around and EURTRY is at January current account balance will be today s main local update (Market -$5.3bn Is Inv: -$5.3bn). Investors will follow industrial production from Eurozone; mortgage applications inventories from the US. Local Bills and Bond Rate market was sold-off for a fourth day in a row on weak Turkish lira and tight monetary policy. The Central Bank has been pushing marginal funding rate towards 11.5% by providing a liquidity amount (given at 10%) short of banks need. Yields on the belly went up by 3-5bps, while the long-end shifted up by some 10bps. Today the market will watch January current account deficit, which we expect to decline from December s $8.3bn to $5.3bn). The 2yr benchmark (TRT240216T10) ended the day 4bps up at 11.45% comp. Eurobonds On the second day of the week, in the absence of any significant data releases in the US, European data announcements were followed. German trade balance came in line with expectations at EUR15bn, imports were up 4.1% versus 1.4% in expectations. UK industrial production came below expectations at 0.1%, while Italian 4Q GDP came in line with expectations up 0.1% QoQ. US 10-yr notes traded mostly flat yesterday and are slightly down around 2.76% levels. Turkish eurobonds yield curve shifted up by 1-3bps. Turkey 5 year CDS spread ended yesterday 2bps wider at 233 bps. Recommendations Local Rates: We downgraded our BUY call for long-term CPI linker notes to OW. We downgraded our BUY call for medium term CPI linkers to HOLD. We upgraded our HOLD call for long term fixed coupon notes to OW. Deposits versus short notes: We recommend deposits against shortterm notes as the decline in short-term yields was not followed by deposit rates. F/X Data Change (%) As of 11/03/2014 Close Daily YTD US Dollar Euro Euro/US Dollar Equal Weighted Basket Source: Bloomberg 0.2% 0.0% -0.2% -0.4% -0.6% -0.8% -1.0% -1.2% TRY Daily Performance Against US Dollar(%) % CZK HUF KZT PLNRON RUB UAH TL Yield Curve ZAR CNY INR ARP BRL Currencies: Turkey: TRY, Çzech Rep.: CZK, Hungary:HUF, Kazakhstan:KZT, Poland:PLN, Romania:RON, Russia:RUB, Ukraine:UAH, S.Africa :ZAR, China:CNY, India:INR, Argentina:ARP, Brazil:BRL Bill Coupon Zero Month 10

11 Most Traded Local Bonds & Bills Instrument Maturity Zero Coupon Bonds Term Amt Outstd. (M il TL) Daily Volume (M il TL) Weekly Volume (M il TL) Last Traded Price TRT090414T19 09/04/14 1 m 2, TRT110614T13 11/06/14 3 m 3, TRT060814T34 06/08/14 5 m 2, Simp. Yield Comp Yld Chg 1D (bp) Wk (bp) Low (%) 3 mo Range High (%) Avg (%) Dur. Cnvx PVBP * 100 Coupon Bearing Bonds TRT270923T11 27/09/ y 9, , TRT240216T10 24/02/16 2 y 1, TRT150120T16 15/01/ y 11, Rating Disclosure: Is Investment s ratings for the listed stocks are Outperform, Market Perform and Underperform, which are all benchmarked with the expected return of the Istanbul Stock Exchange (BIST 100). All these ratings are independently assigned by Is Investment equity analysts based on company s estimates which pertain to future earnings, cash flow and balance sheet of the company. Additionally, analysts may put the stocks Under Review on a temporary basis if conditions do not allow or restrict to make a proper assesment of the company. Investment Ratings for each individual company are assigned in accordance with the following criteria, i-) Outperform is assigned when the company s total expected return exceeds the target index return by 5% points ii-) Underperform is assigned when the company s total expected return remains 5% points under the target index return, iii-) Market perform is assigned when the company s total expected return remains higher than the target index return -5% points, yet below than the target index return +5% points. This report has been prepared by İş Yatırım Menkul Değerler A.Ş. (İş Investment) solely for the information of clients of İş Investment. Opinions and estimates 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 recommendations 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. Investors must make their decisions based on their specific investment objectives and financial positions and with the assistance of independent advisors, as they believe necessary. The information presented in this report has been obtained from public institutions, such as Borsa Istanbul (BIST), Capital Market Board of Turkey (CMB), Republic of Turkey, Prime Ministry State Institute of Statistics (SIS), Central Bank of the Republic of Turkey (CBT); various media institutions, and other sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed. All information in these pages remains the property of İş Investment and as such may not be disseminated, copied, altered or changed in any way, nor may this information be printed for distribution purposes or forwarded as electronic attachments without the prior written permission of İş Investment. ( This research report can also be accessed by subscribers of Capital IQ, a division of Standard & Poor's. For more information, please visit Capital IQ's web site at 11