Is Finansal Kiralama A.s. · BIST:ISFIN
Is Finansal Kiralama A.s — Investor Presentation (December 2008)
32 slides from Is Finansal Kiralama A.s's investor presentation, Dec 31, 2008
Slide 1: Investor Presentation
Investor Presentation December 31 31, 2008
Slide 2: Leasing Sector in Turkey
ee ee ee euceueae eacrcamianctie ee Be ooh Be ae es Seen aie — Be oe Be oe euceueae Ses ence UMUE GSU C ER EURCbEN erie cece canoreniana ae Suobuicgninsanousi
Slide 3: Advantages of Leasing
ADVANTAGES OF LEASING • Expertise on SMEs, consultancy and know- how support as well ll as funding. f d • g option FX borrowing p ((less costlyy than bank FX loans) • Fast credit approvals, flexible payment plans. 3
Slide 4: Yearly Volumes
YEARLY VOLUMES %56 Leasing Penetration (Leasing /Private sector investments) 8203 is still at low levels compared Million USD to EU average of 15% and %24 -%35 North America average of 30%. %47 5271 5301 %34 4263 2001 3,4 % %63 2002 4,8% %83 2900 2003 5 1% 5,1% 2165 2004 4,2% 1327 2005 4,9% 727 2006
Slide 5: 2008 Market Shares
2008 MARKET SHARES L Leasing i R Receivables i bl Source: Fider 5
Slide 6: Company Overview
ee — ae Ce es Seas ee PSS Se eee es Ss ee PSS Se eee PSS Se eee es ees Ce ee ee es a ae
Slide 7: Milestones
MILESTONES • Financial leasing law enacted in 1985. • İşş Leasing established in 1988 by İşş Bank, IFC and Societe Generale. • IFC and SocGen transferred leasing know-how know how and expertise, İş Bank branches provided access to the market. k t • İş Group took over in 1995. • 29,4% public offering
Slide 8: Shareholders
SHAREHOLDERS İş Bank group controls 57,8 % of the shares. 8
Slide 9: Organization Chart
isLeasing ORGANIZATION CHART INTERNAL AUDIT BOARD OF DIRECTORS GENERAL MANAGER FINANCE ACCOUNTING | HUMAN RESOURCES MARKETING OPERATIONS i
Slide 10: Lease Portfolio
LEASE PORTFOLIO
Slide 11: Turnover million USD
TURNOVER million USD 448 Non-Group 445 İş Bank group 349 Total Volume 359 305 183 395 38 384 359 136 314 253 67 171 110 61 52 53 38 29 12 35 26 2001 2002 2003 2004 2005 2006 2007 11
Slide 12: Sales Channels
SALES CHANNELS İşbank has 1030 branches in Turkey 12
Slide 13: Customers
CUSTOMERS Total number of customers in CRM database: 42.375 33% of new leasing volume l is i generated t d by recurring customers. 13
Slide 14: Sectoral Distribution
isLeasing’ | SECTORAL DISTRIBUTION TEXTILE OTHERS 10% 23% FINANCE 8% PAPER IND. MINING METAL IND. ———__ | 6% —___] 2% FOOD TOURISM 4% 3% CONSTRUCT. TRANSPORT. 13% H 12% EMICALS 8% 5% 14
Slide 15: Equipment Distribution
i rrr isLeasing? | EQUIPMENT DISTRIBUTION TOURISM OTHER PRINTING 3% 4 4% MACHINERY MEDICAL 23% 7% CONSTRUCT. 16% TEXTILE 6% OFFICE EAL ESTATE 6% ELECTRONIC & OPTICAL TRANSPORT. 6% 11% 15
Slide 16: Portfolio Development
PORTFOLIO DEVELOPMENT 1100 1000 MIO USD 900 800 700 600 500 400 300 REMAINING 200 100 TOP 30 CUSTOMERS 0 2002 2003 2004 2005 2006 2007 2008 12000 10000 8000 Number of outstanding Contracts 6000 4000 2000 0 16
Slide 17: Geographic Distribution
GEOGRAPHIC G OG C DISTRIBUTION S U ON # OFFICES SALES STAFF Head Office 3 Ankara Rep. office 6 Istanbul Europe 5 Istanbul Asia 4 Antep “ 4 Bursa “ 2 İzmir ” 4 Antalya “ 3 TOTAL 31 17
Slide 18: Currency Distribution
i rrr isLeasing? CURRENCY DISTRIBUTION YTL 28.76% 2006 YTL 27.48% 2007 YTL 22.04% 2008 18
Slide 19: Maturity Distribution
MATURITY DISTRIBUTION average, months 2007 2008 22 LEASE 23 19 BORROWINGS 20 16 14 13 12 10 * 9 8 0 USD EUR TL USD EUR TL * Swaps; 20 % of total TRY portfolio. 19
Slide 20: Collaterals
isLeasine) 4 COLLATERALS Mortgage 19% Cash + LG + Pledge + Buyback 7% Prom. Note+ Personal Guarantee 74% 20
Slide 21: Financial Performance
Bees Focicreiicermnneciere i ee Pau e ee BS e ee BS e ee BS e ee BS e ee ] a i : Ferrets: ee He pe Bee oe scesiciacianacse gs tata
Slide 22: Highlights
HIGHLIGHTS Million YTL 2006 2007 2008 ∆ (annual) Leasing Porfolio 745 799 963 21% Assets 914 1052 1236 17% Borrowings 712 801 928 16% E it Equity 157 215 285 32% Net Profit 27 47 76 63% ROA ((Avg) g) 3% 5% 7% ROE (Avg) 19% 25% 30% 22
Slide 23: Balance Sheet (cons.)
BALANCE SHEET (cons.) 000 YTL 2006 2007 2008 2006 2007 2008 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents 118,589 164,008 165,411 Short-term borrowings 356,412 540,745 786,580 Trading Securities (net) 750 25 1,904 Trade payables 16,311 14,298 9,628 Leasing Receivables (net) 359,560 36
Slide 24: Income Statement (cons.)
INCOME STATEMENT (cons.) 000 YTL 2006 % 2007 % 2008 % Interest income 100,915 15.2 107,571 14.5 103,948 11.8 Interest Expense (41,885) (6.5) (47,206) (6.2) (63,131) (7.2) Foreign currency gains/(losses) (11,832) (2,371) 4,077 47 198 47,198 71 7.1 57 994 57,994 78 7.8 44 894 44,894 51 5.1 Factoring I
Slide 25: Currency Position
CURRENCY POSITION TRY 000 2007 2008 Cash & cash equivalents 65,525 122,628 Finance Lease Receivables 541,755 726,494 Financial Liabilities ((672,987) , ) ((872,287) , ) Forward Transactions 41,834 2,147 Others 16 078 16,078 18 698 18,698 Net short position (7 795) (7,795) (2 320) (2,320) Net short p
Slide 26: Participations
PARTICIPATIONS T t l Sh Total Share Equity Participations Capital (YTL) İş Leasing Share % İş Yatırım Menkul Değerler A.Ş. A Ş 119 387 000 119,387,000 2 904 000 2,904,000 2 43 2.43 Camiş Menkul Değerler A.Ş. 1,900,000 1,000 0.05 Subsidaires İş Factoring Finansman Hiz. A.Ş. 16,000,000 12,517,000 78.2
Slide 27: Loss Reserve, 2007
LOSS RESERVE,, 2007 000 YTL GENERAL SPECIFIC TOTAL Opening 2007 3 854 3,854 23 387 23,387 27 241 27,241 Reversals (3,854) (21,459) (25,313) Increase in existing prov. 12,614 12,614 New provisions 20,613 20,613 Write-off ((1,503) , ) ((1,503) , ) Closing 2007 - 33,652 33,652 27
Slide 28: Loss Reserve, 2008
LOSS RESERVE, 2008 000 YTL GENERAL SPECIFIC TOTAL O Opening i g 2008 - 33 652 33,652 33 652 33,652 Reversals - (12,840) (12,840) Fx gain/loss - - - Increase in existing prov. - 4,479 4,479 New provisions - 5,891 5,891 Write-off - (3,497) (3,497) Closing 2008 - 27,685 27,685 28
Slide 29: Other Issues
oe a ee eee cca: nee oe oe . a _ — es 2 — ce 2s . . — a rrrr——————sEC
Slide 30: Strategy
STRATEGY • Further quality improvement in sales team and branch network. • Increasing business flow from İşbank branches. • Strategic partnerships / vendor agreements especially important for operating leasing when available. • Maintaning a diversified creditor portfolio and cheap funding in all cur
Slide 31: Technology
TECHNOLOGY • New N l i leasing software ft i t integrating ti all ll workflows kfl implemented by November 2006 and modular improvements are being made upto date. date • User friendly and result oriented system increased efficiency. efficiency • Branches can access to the network online real- time.
Slide 32: Relative Share Performance
Relative Share Performance ISFIN vs. IMKB 100 1,200 IMKB 100 ISFIN 1,000 , 0,800 0,600 0,400 0,200 - 31-Dec-07 2-Mar-08 2-May-08 2-Jul-08 2-Sep-08 2-Nov-08 32
Is Finansal Kiralama A.S. — Investor Presentation (December 2008) on 6ix