Investor Presentation - August 2021 - AKLEASE
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Investor Presentation August 2021
Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
2
Strong major local shareholder with long term vision
History and Shareholding Structure Sabancı Holding
One of the two largest multi-business enterprises in
E-Money Turkey with total assets of TL 563 bn
30% of all shares are
held by foreign investors.
6,5% of BIST capitalization with 11 public companies
and the Holding itself
Controlled by Sabancı Family, who is the majority
Asset Banking
shareholder
Management
49 % of all shares are Mainly operates in banking, financial services, energy,
held by Sabancı Holding industrials, building materials and retail.
affiliated institutions
Market leaders in most of the sectors they operate in.
Leasing Brokerage and individuals (1)
Joint-ventures with some of the most well-established
companies in the world
Including; Ageas, Aviva, Bridgestone, Carrefour, E.ON,
Established in 1988 Renamed in 2005 Owned by Akbank Heidelberg Cement, Marubeni, Skoda and Philip Morris
AKLease was established as Akbank acquired the AKLease is 99,985% Akbank is the flagship of the Sabancı Group with the
BNP-AK-Dresdner Leasing in entirety of AKLease in owned by Akbank, with highest share in revenues and profitability in the Group
November 1988, a joint 2005 and the remainder (0,015%)
venture between Akbank, subsequently owned by Sabancı
Dresdner and BNP renamed it AKLease Group affiliates
3 (1) Shareholder composition calculation is based on the «Ordinary General Assembly Shareholder List» dated 24.03.2021 (2) Sabanci Holding financial information is based on 30.06.2020 financial results.
Synergies from relationship with Akbank
Akbank at a Glance
World’s Best Best
Bank in the IR Program in World’s Best
Emerging Turkey for Digital Bank
Large Cap
1948 714 19 Markets
EUROMONEY INSTITUTIONAL
INVESTOR
EUROMONEY
(2019)
Establishment Branches Regional (2020) (2020)
Directorates
$ 3,2 bn 7.3% 6.6%
MS of TL loans Private Banking &
Market Value* MS of FX loans
Investment Services
Retail Banking Corporate and
Investment Banking
Fitch Credit
B+ B2 Moody’s
Ratings Credit Ratings
Commercial
Banking Treasury
4 (1) As of 30.06.2021
Strong presence in financial industry
/ Banking 100%
• Flagship of Akbank Group in Europe
• Total assets at EUR 4,207 mn and equity of EUR 856 mn
%16,0 • Contribution to net income stands at 7% in 2Q21
/ Leasing 100%
2020 • Net lease receivables market share of 9,8%
/ Brokerage 100%
%84,0
• Top 5 in equity market transactions as of June 2021
• One of the leading intermediary institutions in the Turkish Equity Offerings since 2010
& consortium leader in 12 offerings with a total offering size of TL 8.3 bn
%14,0
• Leader in corporate bond issuances (1) with 23.3% market share in 1H21
/ Asset Management 100%
• Total AuM with TL 68.5 bn
2019 • Leader in pension fund management with TL 33.8 bn AuM, 18.2% market share (2)
• TL 23.9 bn AuM in mutual fund management with 12.1% market share
• TL9.6bnAUMinDPM
%86,0
/ Asset Management 100%
• Tosla, first mobile application of AkÖde was launched at Sep’19
Bank-only Net Income Subsidiaries' Contribution • Tosla targets young users, provides core financial services in a way that is fun, simple,
fast & social
5 (1) Excluding issuances of banks and affiliated companies .All data are based on TSPB and BIST (2) Among private institutions
Awards over the recent years
World’s Best Best
IR Program in Best Bank
Bank in the Best Best Private
Turkey for for Trade Finance
Emerging Bank of Turkey Bank in Turkey
Large Cap in Turkey
Markets EUROMONEY GLOBAL FINANCE
INSTITUTIONAL EUROMONEY
EUROMONEY INVESTOR (2013-2020) (2020)
(2020)
(2020) (2020)
Best Payment Bank
Best Bank Best Banking World’s Best
Services in of the Year
of Turkey Group of Turkey Digital Bank
CEE in Turkey
GOLBAL FINANCE WORLD FINANCE EUROMONEY
EMEA FINANCE THE BANKER
(2014-2020) (2014-2020) (2019)
(2020) (2020)
The Most
Best Financial Best CEE & CIS
Best Bank Valuable
Institution Corporate IR Financial Inclusion
of Turkey Banking Brand
Borrower in Turkey Award
EMEA FINANCE of Turkey
EMEA FINANCE EXTEL EMEA FINANCE
(2014-2020) BRAND FINANCE
(2018) (2018) (2020)
(2011-2017)
6
ESG Strategy: Mitigate environmental footprint while increasing positive impact
Sustainable Finance Ecosystems Management
‣ Responsible Products & Services ‣ Digitalization
‣ Impact Investing ‣ Financial Inclusion
To be the
leading bank
that drives
Turkey into the
future
People & Community Climate Change
‣ Future of Work ‣ Operational Emissions
‣ Diversity & Inclusion ‣ Portfolio Impact
‣ Community Investment ‣ Portfolio Exposure
Integrated Governance Financial Performance
7
Actionable targets for positive impact
SUSTAINABLE TL 200 bn TL 15 bn AuM ECOSYSTEMS Extend digital & innovative
Sustainable loan Sustainable products & services
FINANCE financing until investment funds MANAGEMENT
Supporting a more 2030 2030 Enhancing businesses &
sustainable economy financial health
Increase sustainable financing
secured by the bank until 2030 Increase number of financially
empowered people
PEOPLE & Improve the Increase Social CLIMATE Become a carbon- Decrease impact
effectiveness of Return on neutral bank through of loan portfolio
COMMUNITY investment on our Investments for CHANGE eliminating operational on climate
Empowering our people people community Mitigating operational emissions until change until
and communities investments emission & portfolio 2025 2030
impact
Enhance the effectiveness of Akbank Mitigate climate-related risks &
volunteerism in community investments impact on portfolio
8
Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
9
Our core values
01 02
To be trusted Focus on
brand of customer
financial satisfaction
services
03 04 05
Provide Simple and Supporting
innovative smart digital sustainable
financial processes businesses and
solutions healthy
environment
10BOD and Management Chart
Chairman Member Member Member
Mehmet Hakan Tugal Çetin Düz Türker Tunalı Gamze Şebnem
Muratoğlu
EVP, Commercial AKLease CEO CFO, Akbank
Banking, Akbank EVP, Treasury, Akbank
Deputy Chairman Member Member Member
Yunus Emre Özben Emre Kahraman Savaş Külcü Ege Gültekin
EVP, Credit Chief Risk Officer, Head of Internal Audit, EVP, Credit Monitoring
Underwriting, Akbank Akbank Akbank and Collections, Akbank
11Strong presence in leasing industry
Aklease at a Glance Key Strengths
Strong Shareholder with
33 Years 99.99% Longterm vision
Experience Owned by Akbank
Diversified Outstanding
Funding Base Talents
Top 3 10 Strong Prudent Risk
Ranks by Asset Size* Branches Financials Management
Strong Position Resilient
9,8% Rating
in Growing Business Model
Market with Low with Diversified
Market Share LTFC IDR B+ Penetration Asset Portfolio
Rated by Fitch
Flexibility
12 * In the same peer groupAwards over the recent years
Best Company of Best
Employers the year Employers
GREAT PLACE TO Bronze Stevie Winner KINCENTRIC
WORK
(2021) (2021) (2020)
132021 Vision: Looking Forward
01 Running AKLease
Risk & return focused sustainable growth and market share
Maintain high asset quality
Strong capital and robust liquidity
Synergy with Akbank and Sabanci Group
02 Building Future
Leverage digitalization + Robust infrastructure = Transforming business
processes
Diversify funding base
Create high customer experience with tailor made solutions
To be the leading leasing company investing in our future through
commitment on sustainability
14Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
15People & Culture: Investing in our people
39
Average High employee
Age
engagement score
Female
Experienced &
%36 employees Dynamic Team
End to end talent
PhD & Masters management
%23 Degree:
16People & Culture: Organization chart
BOARD OF DIRECTORS Internal Control & Compliance
CHIEF EXECUTIVE OFFICER
SALES AND TREASURY & LEGAL PEOPLE
CREDITS EVP
MARKETING EVP FI SVP AFFAIRS &CULTURE SVP
CREDIT MONITORING AND FINANCIAL OPERATIONS
ASSET MANAGEMENT SVP MANAGEMENT SVP
EUROPE
SALES
PEOPLE &
CULTURE
CREDIT ACCOUNTING
ANATOLIA TREASURY CREDIT PURCHASING
ALLOCATION AND FINANCIAL
SALES MONITORING
AFFAIRS
DIGITAL
PROJECT FINANCIAL TRANSFORMATION CONTRACT
ASSET
FINANCE INSTITUTIONS BUDGET MANAGEMENT
MANAGEMENT
MANAGEMENT
& EXECUTIVE CUSTOMER
CORPORATE REPORTING RELATIONSHIP
COMMUNICATIONS AND INSURANCE
RISK INFORMATION
MANAGEMENT TECHNOLOGY
17Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
18Sustainable finance for a sustainable economy
AKLease's environmental policies set forth are a part of its corporate
lending guidelines as of April 2011 and updated in May 2021 .
Total Installed
Renewable Energy Contributing to sustainable development in Turkey and supporting
Power: 310 MWe projects that encourage positive environmental impact.
Priority is given to loans regarding investments in renewable
energy, eco-friendly technological projects, investments in waste
Annual Primary Energy
recycling, carbon emission reduction projects, and productivity-
Savings: 960.000 enhancing investments
MWh / Clean Energy
Generation for 210.000 Customers are required to follow all principles of the UN Global
Household Units Compact
AKLease is
committed in Annual CO2 Emission
AKLease ensures compliance with environmental and social
issues, occupational safety and health regulations, and safety and
financing a wide Reduction: 295.000 security regulations within the scope of all national laws and
range of Tonnes CO2 emissions regulations.
prevented by renewable
environmentally projects financed /
We have the utmost respect and give unconditional support to
protecting human rights. All national standards regarding child
conscious and Reflect of 13,5 mn trees abuse of forced labor are in compliance unequivocally and to the
sustainable projects. CO2 absorption highest degree.
19Sustainability Highlights
14% Energy Portfolio consist of only renewable energy projects
Decreasing the credit evolution threshold to USD 5 Million
from USD 10 Million.
The Production or trade in alcoholic beverages (excluding
beer and wine) is added in Exclusion List.
Production or trade in tobacco is added in Exclusion List
Financing Coal Mining and Coal Thermal Power Plants
is added in Exclusion List.
Launching the first and only sustainability linked
product in Turkish Leasing Market; EcoLease
EUR 25 mn, 3 years loan from The European Bank for Reconstruction and
Development (EBRD) for green finance investments in June 2021
20Tailor-made financial solutions for renewable energy, energy & resource efficiency
projects
ECOLease
New financing opportunity for Our aim is to have the
companies that would like to invest percentage of EcoLease in
not just in their business but also on the overall lending portfolio
their future. Aklease supports upto to be 60% by 2025 and to
100 percent of your sustainability increase it to a 100% by
related investments. 2030.
21Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
22Snapshot of results
Income Statement mn TL 2019 2020 2021/6
Net interest income
Key Performance Indicators(%)
149 210 111
Net commission income 14 14 16
Other operating income 40 69 40 2019 2020 2021/6
Gross operating income 204 292 167
Provision expense 43 46 12 RoE 12,3 15,2 16,5
Other operating expense 43 47 32
Profit before tax 117 199 123
RoA 1,6 2,5 2,8
Net profit 95 155 94
Balance Sheet mn TL NIM* 2,8 4,6 4,4
Lease receivable 4.821 5.490 6.219
NPL 573 568 470
NPL 10,6 9,4 7,0
Provision (-) 402 395 326
Net Lease Receivable 4.993 5.663 6.363
Cost of Credit 0,6 0,6 0,2
Assets held for sale 30 77 77
Other assets 812 935 1.449
Cost to Income 20,4 13,9 13,3
Total Assets 5.834 6.676 7.889
Borrowings
Cost to Assets 0,6 0,6 0,5
4.590 4.992 6.298
Other Liabilities 296 581 393 Equity to Gross Debt 20,6 22,1 19,0
Equity 948 1.103 1.198
Total Liabilities 5.834 6.676 7.889
23 *Swap adjustedWell positioned in the market
Aklease Net Lease Receivables (mn TL) AKLease - Sector CoC
1,3
1,2
0,9
6.328
0,6 0,6
5.647
5.195
0,2
2019 2020 2021/06 2019 2020 2021/06
NLR (mln TL) AKLease Sector**
NLR Market Share *
%20,3
%18,4 %18,4
Ranking* 2019 2020 2021/06
%14,4
%13,1
Return on Equity 1 1 2
%9,9 %10,2 %10,7
%9,6 %9,8 %9,5
%8,7
NPL 3 3 3
Aklease Peer1 Peer2 Peer3
2019 2020 2021/06
Lease Receivables 3 3 3
24 * In the same peer group ** Peer group average CoC ratioStrong operating performance
Cost to Income Ratio AKLease
Peer Group
Return on Assets AKLease
Turkish Leasing Sector
%27,7 %2,8 %2,7
%2,5
%2,2
%20,4 %14,3 %1,6 %1,7
%14,0
%13,9 %13,3
2019 2020 2021/06
2019 2020 2021/06
NIM AKLease
Net Interest Margin NIM (Swap Adj.) Return on Equity Turkish Leasing Sector
%4,6 %16,5
%4,4 %15,2 %15,3
%12,3 %12,6
%2,8 %3,9 %4,0 %10,8
%2,5
2019 2020 2021/06
2019 2020 2021/06
25Strong resilience to financial risks
High liquidity buffer support
loss-absorption capacity
Liquidity
Minimal exposure to FX volatility as
permitted internal limit is for FX
Strong capital position by
position is maximum -+6 mn USD internal capital generation
Capital remains a source of strength
FX risk
Fairly matched repricing
maturities for FX funding vs Capital Adequacy Ratio
investments. (Repricing gap
%17,9
below 4 months in FX side) %17,7
Interest Rate Risk
%16,7
Internal Limit
%15
2019 2020 2021/06
26Well established wholesale funding profile
Successful Wholesale Borrowings
Profile of Wholesale Funding
%35
EUR 25 mn, 3 years
loan from The
European Bank for %24
Reconstruction and %20
Development (EBRD)
for green finance
%9
investments in June %7
2021 %4
Foreign Banks Multilateral Syndication ECA Covered Akbank Domestic Banks
* Funding by Source FC (%)
* ECA Covered refers to loans obtained under coverage of export credit agencies.
* Multilateral refers to loans provided by the multilateral financial institutions.
27Maturity & currency breakdown
Portfolio Maturity (2021/06) Funding Maturity Breakdown (2021/06)
2021
2021
2022
2022
%13 2023
%20 2023 %24 2024+
%30 2024+
%24
%30
%20 %39
Portfolio Currency Composition (2021/06) Funding Currency Breakdown (2021/06)
EUR
Avg. Maturity: EUR USD
1,5 yrs USD TL
TL
%22
%22
%51
Avg. Maturity: %12
2,0 yrs %66 Avg. Maturity: %27
2,0 yrs
28 Note: Avg. Maturity means the remaining average maturityAsset quality, strong coverages
Staging Breakdown Staging Breakdown & Coverages (2021/06)
%0,8
Coverages
%88,3
%10,6 %9,4 %7
%4,6 %20,2 %46,1
%9 %7,1 %88,3
%83,5
%80,4 %7,0
%4,6
Stage 1 Stage 2 Stage 3
Coverage Ratio*
%8,7
%4,9 %4,7 %4,4
2019 2020 2021/06
Stage 1 Stage 2 Stage 3
AKLease Peer 1 Peer 2 Peer 3
29 *In the same peer groupBalanced loan portfolio
Sector Breakdown (2021/06) Asset Breakdown (2021/06)
Textile
Food and Tourism Machinery Aircraft
Energy and
beverage
Natural Sources
%4 Commercial
%12
%4 %3 %13 Real Estate
Textile %11
Construction - Other
%13
Contractor
%11 %14
%8 Construction
Construction - Machinery
%4 Investment
Steel
processing %15
Metal Processing
%7 %12
Production Machinery
%2
%6 %2
Healthcare %34
%23
Medical
Transportation
Equipment
Manufacturing Machinery
Other and Equipment
30Lease portfolio structure by segments
Segment Breakdown (2021/06)
Customer Segment Turnover
Corporate
Commercial
SME
Micro
Corporate >500 mn TL %2
%10
40 mn TL
%33 %55
1,25 mn TL
MicroContent
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
32Turkish financial leasing sector: Regulatory framework and key features
01 AKLease is a highly regulated
entity; the Banking Regulation 04 Secondary legislation –
Regulations and Communiqués 06 Law No. 6361 of 2012 introduced the
following additional features to
Supervision Agency (BRSA) is issued by BRSA mainly relate to: financial leasing in Turkey:
the main regulator of financial
leasing sector in Turkey Establishment and working sale-leaseback, software leasing
principles of financial leasing and leasing of complementary
companies parts (e.g. aircraft's engine), are
now allowed in Turkey;
Financial leasing
agreements financial leasing companies are
02 Establishment and operation
of financial leasing companies Accounting principles and
allowed to provide operating
leases;
subject to separate financial statements
authorisation from BRSA there is no requirement for a
minimum lease term, after which
the legal ownership could be
transferred to the lessee; and
03 Main legislation - Financial
Leasing, Factoring and 05 Key legal advantages of
financial leasing: Ability to financial leasing companies are
Financing Companies Law No. reclaim the asset on default allowed to lend cash loans to
6361 of 2012 (abolished the (bankruptcy or otherwise), as customers at an amount not
Financial Leasing Law No. 3226 legal and beneficial title is exceeding 1% of the total paid-in
of 1985) retained capital.
33Investor Relations and Sustainability Team Contacts Derşan Babacan Senior Vice President dersan.babacan@aklease.com Avni Bayazit Vice President avni.bayazit@aklease.com
Disclaimer Statement
The information and opinions contained in this document have been compiled or arrived at by AKLease from sources believed to be
reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or
correctness. All opinions and estimates contained in this document constitute the Company’s judgement as of the date of this
document and are subject to change without notice. The information contained in this document is published for the assistance of
recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The
Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its
contents. This document is strictly confidential and may not be reproduced, distributed or published for any purpose.
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