Investor Presentation. February 2015

Investor Presentation February 2015

Table of contents (1) Introduction (2) The Factoring Industry (3) Lider Factoring Business Overview (4) Lider Factoring Risk Management and Asset Quality (5) Lider Faktoring Financial Overview 1

(1) Introduction 2

Key company highlights High asset quality Strong shareholder base Strong risk management controls Experienced and stable management Efficient and conservative approach to factoring Leading factoring franchise in Turkey Solid financial position Diverse client base and extensive distribution network 3

Lider Faktoring at a glance Moody's S&P Fitch National Long-Term Rating NA NA A (tur) Outlook NA NA Stable Key historic milestones Key performance indicators (TRY thou, %) FY 2012 FY 2013 FY 2014 Assets 644.859 611.461 838.567 Equity 83.882 97.707 107.140 The Company was established as Setat Factoring in 1992 Lider became a leading player in the sector with 11 branches, 100 employees, 7000 client base and relations with leading Turkish banks; Lider ranked 4th among non-bank owned companies Existing management continued to grow the business with Credit Suisse as a minority; Lider ranked 1 st among independent factoring companies on the basis of total factoring turnover Lider received the prestigious corporate governance award from TKYD. Credit Suisse extended a new TRY130.5mn loan of up to 5-years. Lider received the prestigious corporate governance award from TKYD for the third time 15% of Lider shares started trading on Borsa Istanbul ( BIST ) after the completion of its IPO in June 2014 90s 2002 2007 2008 2009 2010 2011 2012 2013 2014 Group purchased Şetat Factoring licence and changing its name to Lider Lider obtained a first of its kind funding and equity investment from a leading global investment bank; Lider ranked 2 nd among non-bank owned companies Lider successfuly completed a local currency FRN issue with a maturity of two years; kept and enhanced leading position as ranking 1 st among independent factoring companies on the basis of total factoring turnover with its unique business model and superior asset quality Lider, for the second year in a row, won the prestigious corporate governance award from TKYD. Credit Suisse loan was restated to TRY237.3mn with a 5.5-years maturity. Lider issued a total of TRY150mn FRNs with 5 different maturities. Leverage ratio (1) 7,7x 6,3x 7,8x Gross profit (2) 50.222 37.470 47.965 Operating expenses (3) 27.506 27.453 30.693 Profit before tax 15.503 8.868 9.205 Net profit 12.321 7.549 7.389 Loan Loss Provision ratio (4) 1,2% 0,2% 1,0% ROAA (%) (5) 2,2% 1,2% 1,0% ROAE (%) (6) 16,1% 8,3% 7,2% Source: Lider Faktoring, IFRS Financial Statements as at respective date Note: (1) Leverage = total assets / shareholder s equity (2) Gross profit = net interest income+ fee and commission income, net (3) Operating expenses = personnel expenses + administrative expenses + depreciation and amortisation (4) Loan Loss Provision ratio = (recoveries of / (provisions for) impaired factoring receivables) / gross factoring receivables (5) RoAA = net income / average total assets (6) RoAE = net income / average shareholder s equity 4

Shareholder structure Lider is a publicly traded company where the majority of the shares are held by the family and 9.9% of the shares are held by Credit Suisse. 15% of Lider shares are traded on Borsa Istanbul. Free float 15,00% Raşel Elenkave 5,10% Nedim Menda 34,85% Cresit Suisse Investments (Nederland) B.V. 9,90% Jak Sucaz 10,20% Yuda Elenkave 24,95% Family members hold all Class A shares and have the right to appoint a simple majority of the members of the Board Class B shareholders only have economic rights to dividends / distributions and pre-emptive rights with respect to future share issuances as well as the ordinary rights of a shareholder Credit Suisse is a Class C shareholder and has some rights (in accordance with Article 13 of the Company s AoA) over Lider s decisions including but not limited to: (a) sale, merger, consolidation, spin-off ; (b) liquidation, dissolution or winding up; and (c) the increase of the authorized capital of the Company Source: Lider Faktoring as of 31 December 2014 5

TRY (million) Business growth Since January 2008, Lider has substantially raised its factoring volumes, enhanced by additional long-term capital increases Lider expanded its balance sheet by 26% CAGR between 2008-2014 with the help of Credit Suisse s financing packages, debt instrument issuances and local / international banking relationships and credit lines In April 2008, Credit Suisse extended a TRY40mn loan of up to 3-years to Lider Faktoring (fully repaid) and, in October 2008, Credit Suisse became a minority shareholder through a 9.9% direct shareholding Lider has further expanded its balance sheet by 4.0x between 2008YE and 2014YE In August 2011, Credit Suisse extended a new TRY130.5mn loan of up to 5-years to Lider Faktoring. The loan was amended & restated in March 2012 to TRY237.3mn with a final maturity of 5.5-years. Lider s monthly factoring volume since January 2008 300 250 200 150 100 50 0 01.2008 07.2008 01.2009 07.2009 01.2010 07.2010 01.2011 07.2011 01.2012 07.2012 01.2013 07.2013 01.2014 07.2014 Source: Lider Faktoring as of 31 December 2014 6

Lider Superior asset quality Receivables collection breakdown Change in Doubtful Receivables (% of gross factoring receivables) 100% 75% 0,6% 0,1% 0,4% 0,8% 0,6% 0,6% 5,4% 2,6% 2,1% 3,1% 2,5% 2,7% 5% 4% 3% 50% 25% 0% 94,0% 97,3% 97,5% 96,1% 96,8% 96,7% 2009 2010 2011 2012 2013 2014 2% 1% 0% (1%) 1,2% 0,4% 0,2% (0,2%) (0,4%) (0,2%) 2009 2010 2011 2012 2013 2014 Loans in legal follow up Recourse / admin Clearing system Write-offs (% of gross factoring receivables) Cheque tenor (% of total factoring receivables) 1,20% 1,00% 0,80% 0,60% 1,17% 50% 40% 30% 20% 22,9% 38,9% 37,3% 0,40% 0,20% 0,00% 0,00% 0,07% 0,04% 0,01% 0,01% 0,02% 2002-2008 2009 2010 2011 2012 2013 2014 * 10% 0% 0,9% Up to 1 month 1-3 months 3-12 months Over 1 year Cheque seasoning * A portfolio of non-performing factoring receivables of Lider were sold to Final Varlık Yönetimi A.Ş. Source: Lider Faktoring as of 31 December 2014 7

(2) The Factoring Industry 8

What is factoring? Factoring is the assignment of receivables with a discount and a commission Factoring companies aim to provide financing against the assignment of receivables, which are evidenced by the relevant invoice to ensure there is an underlying commercial transaction, and the payment for such receivables is usually in the form of the post-dated cheques There are two options in factoring, (i) full-recourse, where the company has full recourse to the relevant customer in line with the factoring agreement (as well as to the originator and any endorsee of the relevant cheque pursuant to Turkish law), or (ii) non-recourse, where the company would only have recourse to the originator and any endorsee if there is an underlying cheque for the payment of such receivables Factoring companies with good operational systems and track records are able to raise financing against these receivables mainly from local banks via secured lending Supervision and governance of the factoring firms is undertaken by the Banking Regulation and Supervision Agency ( BRSA ) since 2006 Various cash needs, tax payments, working capital needs and etc Factoring Company Factoring Customer Cheques & Invoices Company A Goods & Invoice Customer Cheques Company B Secured Financing Customer Cheques & Invoices Banks & Other Lenders Funding cycle revolves continuously 9

Turkish factoring sector The Turkish factoring industry is comprised of 76 factoring companies, including Lider, where all are members of the Financial Institutions Association (www.fkb.org.tr) as at 31 December 2014 Invoices and receivables are supported mostly in the form of post dated cheques: (i) post-dated cheques are used often in Turkey to make deferred payments, (ii) cheques in Turkey are recourse to each originator / endorses, (iii) the nominal amount is collected via the clearance system, and (iv) each cheque must come attached with an invoice Turkey s loan penetration ratio is relatively low by international standards and, with most commercial banking loans targeting the corporate and consumer sectors, the Turkish factoring sector has been growing as an alternative financing method for SMEs Turkish factoring sector profitability ratios Banking sector profitability ratios 30% 24% 18% 18,8% 14,1% 15,2% 15,8% 17,1% 13,1% 30% 24% 18% 18,7% 22,9% 20,1% 15,5% 15,7% 13,1% 12% 6% 5,3% 3,8% 3,2% 3,3% 3,7% 2,6% 12% 6% 2,1% 2,6% 2,5% 1,7% 1,8% 1,6% 0% 2008 2009 2010 2011 2012 2013 0% 2008 2009 2010 2011 2012 2013 ROA ROE ROA ROE Turkish factoring sector share within non-bank financial sector Distribution of bank loans by type 50% 45% 40% 35,2% 39,9% 36,2% 36,3% 100% 80% 60% 23,0% 21,2% 23,9% 23,8% 25,1% 25,9% 21,5% 23,0% 24,1% 24,5% 24,3% 23,7% 35% 30% 25% 32,9% 25,8% 2008 2009 2010 2011 2012 2013 40% 20% 0% 55,5% 55,8% 52,0% 51,7% 50,6% 50,4% 2008 2009 2010 2011 2012 2013 Other Consumer SME Source: BRSA, December 2014 10

(3) Lider Factoring Business Overview 11

Business model overview Lider is active in with-recourse factoring, providing the Company with recourse to both the underlying debtor and the customer Lider generally manages a diversified portfolio with the majority of its factoring volumes in small sized transactions, sourced from a broad range of companies across many industries, mainly in the manufacturing sector In addition, Lider has good corporate governance controls with three board committees in place to oversee the business the committees are (i) the Audit Committee, (ii) the Risk Detection Committee, and (iii) the Corporate Governance Committee With recourse factoring All loans are recourse to the Client where core collateral is the quality of the receivable and endorsements No sector preference but tendency is with manufacturing related sectors Target clients Sourced from SME client base, currently in excess of 24,000 clients / customers All clients need to be approved by the underwriting department Diversified Portfolio Selection methodology Trade registry scanning and review of foundation documents A new client is never added to the system without previsiting them. Existing clients are regularly visited Granular risk Average transaction size is TRY 75,384 Average cheque size is TRY 23,087 12

Lider s factoring process overview Various cash needs, tax payments, working capital needs and etc. Assignment of the Receivable of Client A from its Customer Endorsee Endorsee Originator-1 Payment for Discounted Receivables Goods / Services Cheque(1) Endorsee Cheque(1) Endorsee Cheque(1) Originator-2 Factoring Company Invoice of Client A for goods / services to its Customer Client A Payment Customer Cheques (1,2, n) Customer (of the Client)* Cheque(2) Cheque(2) Cheque(2) Endorsee Endorsee Originator-n Cheques (1,2, n) Cheque(n) Cheque(n) Cheque(n) Secured Financing Customer Cheques & Invoices Banks Funding cycle revolves continuously * Customer of the Client can make the payment to the Client with the cheques originated directly by itself or with the cheques that were received through trade relationship with its own customers as shown in the chart above through endorsing these customer cheques to the Client; therefore the Customer of the Client is either the last endorsee or the originator of the cheques assigned to the Factoring Company 13

Geographic distribution Merter Bayrampaşa Bağcılar İstanbul Dudullu Çorlu Pendik Beylikdüzü Gebze Körfez Bursa Eskişehir Ankara Ostim İzmir Ege Kayseri Konya Denizli Bodrum Antalya Marmaris Alanya Mersin Adana Gaziantep Available branches Lider s branch network Breakdown of client factoring receivables by location (31 Dec 2014) Lider is headquartered in Istanbul with 26 branches across the remainder of Turkey Lider has gradually expanded its branch network from none in 2002 to 26 branches covering clients in 60 cities. Lider plans to continue its expansion and open up more new branches in the coming years. Lider s geographic expansion strategy primarily focuses on areas where there is existing factoring demand, which are in close proximity to an industrial center and with low factoring penetration Total factoring receivables TRY824mn Balıkesir 2% Konya 2% Bursa 3% Kocaeli 3% Tekirdağ 3% Adana 3% Denizli 3% Others 16% İstanbul 49% Ankara 8% İzmir 8% Source: Lider Faktoring as of 31 December 2014 14

(4) Lider Factoring Risk Management and Asset Quality 15

Strategy and risk management Strategy Lider intends to expand its lending platform and its factoring operations outside of Istanbul both through the use of the additional capacity available in its existing branches and by establishing additional branches Risk management Counterparty credit risk Lider does not target any particular sector of the manufacturing industry and, as a result, has diversified exposure across the various sectors In addition to having set limits per sector, Lider has set internal thresholds for exposure to any given geographic region, client or originator Leverage ratio Lider has a minimum equity / total assets ratio of 12% as a guiding principle Liquidity risk Lider maintains a policy of carefully managing liquidity through limiting the amount of bank loans based on the amount of receivables maturing that day Lider s factoring transactions are shorter-term in nature than its liabilities the average maturity of Lider s receivables are c70-100 days vs. over 120 days for its financial liabilities Currency risk Lider factors receivables mainly in Turkish Lira and receives the majority of its funding in Turkish Lira Interest rate risk With minimal foreign currency exposure, Lider s interest rate risk stems from maturity mismatches Lider maintains a healthy combination of fixed and floating rate assets and liabilities 16

Lider Factoring portfolio Overview Loan portfolio is diversified by industries, geographically, by customers and originators which is in line with the credit risk management approach I. Lider has set a threshold of 20% of factoring receivables to any given industry at any given point in time II. III. IV. Customer limits are set such that receivables from a single customer cannot exceed 10% of equity Originator limits are set such that receivables from a single originator cannot exceed 4% of equity A single location can not exceed 12.50% of total receivables and the top three locations cannot exceed 30% of total receivables at any time, with Istanbul being an exception where this ratio is 50% Factoring portfolio breakdown by industrial sectors (31 Dec 2014) Agriculture 4% Electric 4% Food 5% Others 21% Textile 13% Machinery Automotive 6% 8% Trading Paper and printing 6% 8% Construction 13% Iron and steel 11% Top 10 customers (TRY in millions) 800 600 400 200 0 823,6 17% 642,6 16% 606,3 15% 15,3% 486,0 14% 364,7 300,5 13% 13,1% 13,6% 12,6% 12% 12,0% 11% 10,9% 10% 2009 2010 2011 2012 2013 2014 Top 10 originators (TRY in millions) 823,6 800 642,6 606,3 600 486,0 5,7% 364,7 400 300,5 4,9% 4,6% 4,9% 4,8% 200 3,9% 0 2009 2010 2011 2012 2013 2014 10% 8% 6% 4% 2% 0% Total factoring receivables Top 10 customer concentration Total factorig receivables Top 10 originator concentration Source: Lider Faktoring as of 31 December 2014 17

Corporate Governance & Ratings A special emphasis is given to corporate governance where Lider aims to establish a sustainable and preferred corporate structure. Lider s current (August 2014) corporate governance rating by SAHA is 8.70. Lider, for three years (2010, 2011 & 2013), has been awarded the prestigious corporate governance award from Corporate Governance Association of Turkey ( TKYD ) in the non-public companies category. Lider received its first credit rating in 2009 from Fitch Ratings. The Company s national long-term rating was determined as BBB+ (tur). On 31 May 31st, 2013, Fitch Ratings upgraded the Company s rating by two notches to A(tur). In April 2014, Fitch Ratings affirmed Lider s national long-term rating at A(tur). The rating has a Stable Outlook. National Long-Term Rating Corporate Governance Rating Ratings National Long-Term Rating Sovereign Risk Foreign-Currency Long-Term IDR Local-Currency Long-Term IDR Outlooks National Long-Term Rating Sovereign Foreign-Currency Long-Term IDR Sovereign Local-Currency Long-Term IDR Financial Data Lider Faktoring A.S. 21 July 2014 A(tur) BBB- BBB Stable Stable Stable Corporate Governance and Credit Rating Services, Inc. 8.70 18

(5) Lider Faktoring Financial Overview 19

Financial overview Assets Outstanding risk-return profile Strong equity growth (CAGR 19% between 2008-2014) Net recoveries of 0.2%, -0.4%, -1.2%, -0.2% and -1.0% in 2010, 2011, 2012, 2013, & 2014, respectively Strong asset growth (CAGR 26% between 2008-2014) Liquid assets with factoring receivables having an average life of 70-100 days Scalable platform with low CAPEX requirements Net Assets (TRY in millions) 209 307 368 501 645 611 839 45 800 0 22 26 600 1 17 1 13 18 400 12 793 12 0 2 622 584 200 15 466 293 356 182 0 2008 2009 2010 2011 2012 2013 2014 Factoring receivables Cash & cash equivalents Fixed, intangible & other assets Total assets Liabilities and Shareholder s equity Well diversified funding base No bank represents more than 20% of the short-term loans and borrowings Lider does not use derivatives or any other off-balance sheet instruments Lider has a leverage of 7.8x (1) as of 31 December 2014 Liabilities and Shareholder s Equity (TRY in millions) 209 307 368 501 645 611 839 800 600 400 200 0 6 4 5 3 726 3 555 510 3 427 252 310 169 38 52 56 69 84 98 107 2008 2009 2010 2011 2012 2013 2014 (2) Other liabilities Financial liabilities Shareholders' equity Total liabilities and shareholders' equity 6 Source: Lider Faktoring, IFRS Financial Statements as at respective date Note: (1) Leverage = total assets / shareholder s equity (2) Other liabilities = total liabilities financial liabilities 20

Financial overview Balance sheet Audited Audited Audited Selected Items (TRY) 31.12.2014 31.12.2013 31.12.2012 Cash on Hand 18.854 17.184 11.232 Cash at Banks 182.280 912.970 942.586 Factoring Receivables 792.594.667 584.146.754 621.502.320 Other Receivables 17.032.213 761.766 2.621.005 Doubtful Receivables, net 35 35 - Property and Equipment 24.760.201 22.630.548 16.415.316 Intangible Assets 102.555 130.094 177.279 Prepaid Expenses 158.660 186.202 134.625 Deferred Tax Assets 3.717.870 2.408.498 2.313.814 Other Assets - 266.586 740.359 Total Assets 838.567.335 611.460.637 644.858.536 Loans and Borrowings 559.169.745 399.389.563 405.458.533 Factoring Payables 782.248 580.145 1.002.509 Financial Lease Payables 21.112.544 18.983.251 Debt Securities 144.551.346 91.003.692 149.069.326 Other Liabilities 2.046.035 1.889.673 1.596.411 Employee Benefits 2.119.648 1.672.020 1.798.679 Current Tax Liabilities 1.645.416 234.870 2.050.683 Equity 107.140.353 97.707.423 83.882.395 Total Liabilities and Equity 838.567.335 611.460.637 644.858.536 (%) 31.12.2014 31.12.2013 31.12.2012 Factoring Receivables / Total Assets 94,5 95,5 96,4 Loans & Borrowings / Total Assets 66,7 65,3 62,9 Debt Securities / Total Assets 17,2 14,9 23,1 Equity / Total Assets 12,8 16,0 13,0 21

Financial overview Income statement Audited Audited Audited Income Statement, IFRS (TRY) 31.12.2014 31.Dec.13 31.Dec.12 Interest Income 109.087.178 81.736.719 93.795.073 Interest Expense -74.358.654-57.595.690-61.652.033 Net Interest Income 34.728.524 24.141.029 32.143.040 Fee & Commision Income, net 13.236.623 13.328.777 18.407.309 Gross Profit 47.965.147 37.469.806 50.550.349 Foreign exchange gains/(losses), net -278.491 186.880 311.611 Other operating income 460.441 168.163 151.325 Operating Income 48.147.097 37.824.849 51.013.285 Impairment loss on factoring receivables -8.249.298-1.504.017-8.003.724 Personnel expenses -23.186.296-21.346.286-19.912.597 Administrative expenses -7.194.460-5.834.775-7.103.889 Depreciation and amortization -311.883-271.465-489.710 Profit before Income Tax 9.205.160 8.868.306 15.503.365 Income tax expense -1.815.823-1.318.974-3.182.166 Net Profit 7.389.337 7.549.332 12.321.199 Profitability Ratios 31.12.2014 31.12.2013 31.12.2012 RoAE 7,2% 8,3% 16,1% RoAA 1,0% 1,2% 2,2% 22

Disclaimer The information in this presentation has been obtained by Lider Faktoring from sources believed to be reliable, however, Lider Faktoring cannot guarantee the accuracy, completeness, or correctness of such information. This presentation has been issued for information purposes only. This presentation does contain forward-looking statements that reflect Lider Faktoring management s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. These forward-looking statements speak only as at the date of this presentation, and Lider Faktoring undertakes no obligation to update the forward-looking statements in this presentation. Neither Lider Faktoring nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation. 23