Review Meeting FITCH

1
Performance Financial Results 2007 March
2008
2
ABOUT US
OVERVIEW OF CAPITAL MARKETS
OUR PERFORMANCE
FINANCIAL RESULTS
HINTS FOR 2008
3
ABOUT US

• Is Investment - the investment arm of Is Bank and
  the leading investment banking institution in
  Turkey - stands out as the only listed brokerage
  house in the country offering variety of
  services, such as
• Brokerage (Trading securities including domestic
  and international equities, fixed income
• and derivatives)
• Investment Advisory
• Asset Management
• Corporate Finance (Public offerings, MAs and
  strategic consultancy)
• Research
• Is Investment was established by Is Bank in 1996,
  with a paid in capital of YTL 500.000. The
  company has started with 42 staff and reached 289
  employees as of 2007 and shareholders equity
  increased to YTL 246.2 mn. at the same time
  (Please note that it was YTL 235.9 mn. as of
  2007/Q3).

4
CREDIT RATING - AAA(tur)
AAA(tur)
Fitch Ratings has assigned Is Investments
national long-term rating of 'AAA(tur)' with
stable outlook and the national rating of Is
Investment reflects the support and close
integration with our parent, Is Bank
5
ABOUT US
OVERVIEW OF CAPITAL MARKETS
OUR PERFORMANCE
FINANCIAL RESULTS
HINTS FOR 2008
6
TRADING VOLUME
Equity Market (YTL Billion)
Bills Bonds Market (YTL Billion)
574.5
575.5
579.3
775.4
748.5
3,5
19,3
513.9
722.9
649.9
2006
2007
2006
2007
Source ISE - www.imkb.gov.tr
Source ISE - www.imkb.gov.tr
Decrease in the public borrowing requirement and
CBRTs interest rate policy, caused a weaker
concern for the Bills Bonds market
Equity market displayed a better perfomance with
respect to the year 2006, whereby the higher
amount of public offerings
7
TRADING VOLUME
Derivative Market (YTL Billion)
Eurobonds (YTL Billion)
144.1
29.268
551
233.5
64.2
25.010
20.271
3.677
21.4
2.048
913
35.7
2006
2007
2007
Source ISE - www.imkb.gov.tr
Source TurkDEX - www.vob.org.tr
Derivative markets remarkable performance went
beyond even our year-end estimates and the total
trading volume reached more than six-folds of
2006
ISE has announced the trading volume of Turkish
Eurobonds in 2007 for the first time as YTL 64.2
bn
8
ISE - EQUITY MARKET FIGURES
Number of Public Companies Traded on the ISE
Average Free Float Rate ()
327
31,6
322
31,6
30,9
306
2005
2006
2007
2005
2006
2007
Listed companies and ETFs
Market Capitalisation ( Billion)
Is Investments expectation was YTL 285 bn.
288.7
163.7
162.8
2006
2007
2005
Source www.tspakb.org.tr
9
FOREIGN INVESTORS
Share in Total Equity Portfolio ()
Trading Volume / Total Equity Trading Volume ()
72
29
68
67
19
18
59
51
12
9
2004
2005
2006
2007
2003
2004
2005
2006
2007
2003
Source www.tspakb.org.tr www.imkb.gov.tr
Foreign investors trade 29 of the ISE trading
volume, while they hold the 72 of the free
float market capitalisation with a stable approach
10
ASSET MANAGEMENT
Funds (USD Million)
144.1
29.268
3.813
86
25.010
29.574
20.271
2.048
3.677
20.271
21.4
2.048
913
Pension Funds
45
Total
2007
2006
Source www.tspakb.org.tr
Portfolio size of pension funds confirms our
claims to be the locomotive of fund business in
near future, increasing 86 while total mutual
funds performing 46 with respect to 2006

• Including Exchange Traded Funds, Investment
  Trusts, Real Estate Investment Trusts and Venture
  Capital Companies
• .

11
ABOUT US
OVERVIEW OF CAPITAL MARKETS
OUR PERFORMANCE
FINANCIAL RESULTS
HINTS FOR 2008
12
EQUITY MARKETS
Equity Markets - Is Investment (YTL Billion)
6,32
6,43
49.1
17,4
Our performance is increasing in parallel with
the equity market.
41.8
2006
2007
Sourcewww.imkb.gov.tr
Despite the ascending total trading volume and
the new comers to the market we maintain our
leadership position
13
BILLS BONDS MARKETS
Bills Bonds Markets - Is Investment (YTL
Billion)
13,1
16.9
11,8
19.8
11.3
14.2
2006
2007
Source www.imkb.gov.tr
We hold the third place among the brokerage
houses with 11,8 market share and YTL 14.2 bn
trading volume and it is expected to see a
recovery in the market with the issuance of
private sector bonds in 2008
14
DERIVATIVE MARKETS
Derivative Markets Is Investment (YTL Billion)
17,18
!
343
39.9
25.2
Almost three-folds of our year-end trading volume
target figure
25,29
6.1
9.0
2006
2007
Source www.vob.org.tr

• Our derivative market trading volume
  is almost three-folds of our year-end target
  figure (YTL 14 bn) we had set
• for the full year, reaching YTL
  39.9 bn
• We maintain our uncontested leadership
  as of 2007 with 17,18 market share despite the
  rise in the market players
• Our client base in derivative products
  continue to get wider in each quarter as stated
  before (foreign domestic)

15
INTERNATIONAL CAPITAL MARKETS
International Capital Markets Is Investment
(USD Billion)
38.1
3.4
2006
2007
Source Is Investment
Our trading volume reached USD 38.1 bn from USD
3.4 bn surging by more than ten-folds with
respect to 2006 and our trading volume will
likely increase with the anticipated new
instruments in international capital markets
16
ISE EUROBOND MARKET
Eurobond Market - Is Investment (YTL Million)
We hold the first rank among the banks
brokerage houses
13.4
1.2
2006
2007
Source www.imkb.gov.tr - Is Investment
Our trading volume displayed a fundamental
performance and reached YTL 13.4 bn. surging by
eleven folds with respect to 2006 year end volume
17
ASSET UNDER MANAGEMENT
AuM Pension Funds Portfolio Size Is Asset
Management (Million NTL)
AuM Pension Funds portfolio size represent 20
and 19 of the funds market respectively
173
777
682
173
860
410
777
173
682
7.043
516
6.620
7.043
6.484
7.043
516

6.003
6.820
5.247
6.620
6.484

5.247
2005
2006
2007/H1
2007/Q3
2007
Source Is Investment
The size of AuM, which is about to catch 2005s
mutual funds values after major redemptions in
2006, reached to YTL 6.8 bn due to the rise in
portfolios and growing pension fund business
18
CORPORATE FINANCE (Public Offering - MA)
Public Offering Size (USD Million) - Is Investment
MAs Size (USD Million) - Is Investment
1.911
341
2.401
239
500
708
707.9
34.9
38.9
38.9
2006
2007
2006
2007
Source www.imkb.gov.tr
Source Is Investment
2007 was a golden year for Corporate Finance
business
After the largest privatization offering
-Halkbank- and Is Investment which was 15,4 times
over subscribed, Tekfen Holding IPO generated the
highest domestic demand among the private sector
IPOs in Turkish capital markets
We experienced the highest performance for MAs
business in 2007, implementing USD 500 mn.
amounted MAs projects while it was USD 38,9 mn.
in 2006
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ABOUT US
OVERVIEW OF CAPITAL MARKETS
OUR PERFORMANCE
FINANCIAL RESULTS
HINTS FOR 2008
20
BALANCE SHEET
Is Investment
2006
2007
YoY ?
YTL (000)
Total Assets
542.143
1.237.785
128
Shareholders Equity
152.622
246.179
61
Our shareholderss equity reached to YTL 246.1 mn
surging by 61 with respect to 2006 and while
having more than 30 of the total assets of the
brokerage houses in the sector
21
INCOME STATEMENT
Is Investment
2006
2007
YoY ?

YTL (000)
Interest and Trading Income
84.269
28.948
191
50
Commission Revenues
51.814
34.475
Income from Corporate Finance
127
17.079
7.492
Other Income
8.931
-42
5.151
Total Operating Revenues
158.313
79.846
98
49
Operating Expense
-63.357
-42.347
153
Net Operating Profit
94.956
37.499
11
Other Expenses
-7.921
-7.094
Financial Expenses
-13.780
239
-4.059
Minority Expense
-31.224
n.m.
-8.384
EBT
42.031
233
17.962
Tax
-8.305
272
-2.228
33.726
114
15.734
Net Profit
22
OPERATING REVENUES
84.269
(YTL 000)
2006
2007
51.814
34.475
28.948
17.079
8.931
7.492
5.151
Interest and Trading
Commissions
Corporate Finance
Other

• Is Investments total revenues amounted to YTL
  158.3 mn as of 2007, up by 98 on YoY basis.
• Interest and trading revenues performed a
  fundamental growth, increasing to YTL 84.2 mn.
  from YTL 28.9 mn.
• Commission revenues reached YTL 51.8 mn,
  surging by 50 while the commissions had totaled
  YTL 34.4 mn. as of 2006.
• Other revenues amounted to YTL 5.1 mn down from
  YTL 8.9 mn due to the mainly decline in marked to
  market value of Is
• Private Equity.

23
BROKERAGE TRADING FEES
40.060
(YTL 000)
2006
27.405
2007
10.419
5.053
2.017
1.335
Brokerage
Asset Management
Other

• Brokerage commissions reached YTL 40.1 mn.
  recording 46,1 rise over its 2006 year-end
  performance.
• Commissions on derivatives rocketed by almost
  five-folds on YoY basis as of 2007, reaching YTL
  8.5 mn. vs YTL
• 1.9 mn in 2006 year end.
• Fees on asset management rose to YTL 10.4 mn.
  due to the effect of 70 consolidation of Is
  Asset Management
• started in 2007/Q3.

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MARGIN TRADING
Outstanding Loans (YTL Million)
Interest Income on Loans Extended to Clients (YTL
Million)
69.8

67.1
54.7
108
49.3
12.9
44.8
6.2
2006
2006
07/Q1
07/Q2
07/Q3
2007
2006
2007
Interest income on margin accounts recorded 108
YoY growth with respect to end of 2006, reaching
YTL 12.9 mn while loans to clients declined to
YTL.44.8 mn
25
OPERATING EXPENSES
YTL (000)
2006 2007
YoY ?
Employee Costs 20.566 31.013 50
Depreciation 1.148
1.230
7 Goodwill -344 -470
36 Consultancy
1.852 2.806
51 Operating Costs 8.322 12.860
54
Sundry Taxes 5.999
6.754
13 Advertisement 1.638 1.643
n.m. Marketing and
Dist. 3.166 7.521
137 Total

42.347 63.357
49
Operating costs recorded 49 rise on YoY basis
while the total revenues displayed a 98 rise
with respect to 2006
The number of our employees has reached to 289,
surging by 17,4 with respect to the end of 2006.
26
RETURN on AVERAGE EQUITY
R
31 December 2007 31 December 2006 31 December 2005 31 December 2004
16,9 10,8 21,6 5,1
We are targeting Is Investments ROAE as 20 in
five years time
27
DIVIDEND DISTRIBUTION POLICY

• Is Investments principles of dividend
  distribution policy are set by article 16 of the
  Articles of Association.

The net profit of the company is the amount found
after the deduction of every kind of expenses to
be paid by the company and miscellenaous
depreciations and reserves from the total
revenues obtained by the Company within a balance
sheet period and the profit after deduction of
any previous year loss, if any...

• Dividend distribution decision will be taken by
  the General Shareholders Meeting which is
  expected to be performed
• towards the end of April

We have shared our success by going to public in
May 2007 and now we want to share our profit
considering the expectations of our shareholders
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ABOUT US
OVERVIEW OF CAPITAL MARKETS
OUR PERFORMANCE
FINANCIAL RESULTS
HINTS FOR 2008
29
HIGHLIGHTS - From 2007 to 2008

• Geographic Expansion Akaretler and Yesilkoy
  branches were opened.
• ETFs iBoxx Fixed Income ETF will come to
  market as the second ETF after ISDJE.
• Hedge Fund We are about to bring the first
  hedge fund to the market.
• Prime Brokerage We have developed a special
  software and started to test with clients.
• Corporate Bonds Closed two corporate bond deal.
  Creditwest Factoring is the first publicly traded
  corporate FRN.
• Derivatives Single stock futures and options
  will be initiated in the coming months
• Euromoney Award Is Investment rewarded as the
  Best Equity House in Turkey by Euromoney.
• We Are in ISE-100 Is Investment was selected
  for the ISE National-100 Index in a four-month
  period after going public.

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TRADEMASTER Electronic Trading Platform
5 of our total client equity transactions are
performed by TM user investors and this percent
is expected to getting higher day by day for not
only the equity market but also the derivative
market
31
TRADEMASTER INTERNATIONAL Direct Access to Int.
Markets
The continous demand for this platform and the
constant increase in the daily transaction
volume will give additional boost to the income
statement in 2008
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The information in this report is prepared by IS
YATIRIM MENKUL DEGERLER A.S. (Is Investment) and
it is not to be construed as an offer or
solicitation for the purchase or sale of any
financial instrument or the provision of an offer
to provide investment services. Information,
opinions and comments 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 comments 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. Therefore,
making decisions with respect to the information
in this report cause inappropriate results. All
prices, data and other information are not
warranted as to completeness or accuracy and are
subject to change without notice. Any form of
reproduction, dissemination, copying, disclosure,
modification, distribution and/or publication of
this report is strictly prohibited. The
information presented in this report has been
obtained from sources believed to be reliable. Is
Investment cannot be held responsible for any
errors or omissions or for results obtained from
the use of such information.
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IS INVESTMENT