Investor Presentation - February 2021 - AKLEASE
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Investor Presentation February 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 US$ 68 bn
33% of all shares are
held by foreign investors. 6% of BIST capitalization with 11 public companies
and the Holding itself
Controlled by Sabancı Family, who is the majority
Asset Banking shareholder
Management
48,8 % of all shares are Mainly operates in banking, financial services, energy,
held by Sabancı Holding building materials, retail and industrial businesses
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 23.03.2020
Synergies from relationship with Akbank
Akbank at a Glance
Private Banking &
Investment Services
1948 716 19
Establishment Branches Regional Corporate and
Retail Banking
Directorates Investment Banking
$ 4,9 bn 7.3% 6.5%
Market Value* MS of TL loans MS of FX loans
Fitch Credit
B+ B2 Moody’s
Ratings Credit Ratings Commercial
Banking Treasury
4 (1) As of 31.12.2020
Strong presence in financial industry
/ Banking 100%
• Flagship of Akbank Group in Europe
• Total assets at US$ 4,644 mn. and equity of US$ 1,014 mn.
%15,0 • Contribution to net income stands at 6.5% in 2020
/ Leasing 100%
2020 • Net lease receivables market share of 9,5%
/ Brokerage 100%
%85,0 • Top 5 in equity market transactions in 2020
• Leader in equity public offerings with TL 7.8 bn transaction size since 2010
%12,0 • Leader in corporate bond issuances (1) with 34% market share in 2020
/ Asset Management 100%
• Total AUM with TL 59.8 bn
2019 • Leader in pension fund management with TL 31,8 bn AuM, c. 19.1% market share (2)
• TL 18.1 bn AuM in mutual fund management with c. 13% market share
• Leader in DPM with TL 8.8 bn AUM (2)
%88,0
/ 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
Best
IR Program in Best Bank
World's Best The Best Best Private
Turkey for for Trade Finance
Digital Bank Bank of Turkey Bank in Turkey
Large Cap in Turkey
EUROMONEY EUROMONEY GLOBAL FINANCE
INSTITUTIONAL EUROMONEY
(2020) INVESTOR (2013-2020) (2020)
(2020)
(2020)
Best Payment Bank
Best Bank Best Bank World’s Best
Services in of the Year
of Turkey of Turkey Digital Bank
CEE in Turkey
GOLBAL FINANCE WORLD FINANCE EUROMONEY
EMEA FINANCE THE BANKER
(2014-2020) (2014-2020) (2020)
(2020) (2020)
The Most Best
Best Financial Best
Best Bank Valuable Private Banking
Institution Corporate IR
of Turkey Banking Brand Services Overall
Borrower in Turkey
EMEA FINANCE of Turkey in Turkey
EMEA FINANCE EXTEL
(2014-2019) BRAND FINANCE EUROMONEY
(2018) (2018)
(2011-2017) (2010-2017)
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 in
9,6% Rating
Growing Market with
Resilient Business
Model with Diversified
Market Share LTFC IDR B+ Low Penetration Asset Portfolio
Rated by Fitch Flexibility
12 * In the same peer group2021 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
13Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
14People & Culture: Investing in our people
39
Average High employee
Age
engagement score
Female
Experienced &
%34 employees Dynamic Team
End to end talent
PhD & Masters management
%21 Degree:
15People & Culture: Organization chart
BOARD OF DIRECTORS Internal Control & Compliance
CHIEF EXECUTIVE OFFICER
SALES AND CREDITS EVP
MARKETING EVP
TREASURY & CREDIT MONITORING AND OPERATIONS FINANCIAL MANAGEMENT
FI SVP ASSET MANAGEMENT SVP SVP
EUROPE
SALES
CREDIT ACCOUNTING AND
ANATOLIA CREDIT PURCHASING
ALLOCATION FINANCIAL AFFAIRS
SALES MONITORING LEGAL PEOPLE &
AFFAIRS CULTURE
PROJECT CONTRACT
ASSET BUDGET MANAGEMENT
FINANCE MANAGEMENT
MANAGEMENT & EXECUTIVE REPORTING
CUSTOMER
RELATIONSHIP RISK MANAGEMENT
AND INSURANCE
INFORMATION
TECHNOLOGY
16Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
17Sustainable finance for a more sustainable economy
AKLease's environmental policies set forth are a part of its corporate
Total Installed Renewable lending guidelines as of April 2011 and updated in May 2019 .
Energy Power: 270 MWe
Contributing to sustainable development in Turkey and supporting
projects that encourage positive environmental impact.
Annual Primary Energy
Savings: 870.000 MWh /
Clean Energy Generation for Priority is given to loans regarding investments in renewable
200.000 Household Units energy, eco-friendly technological projects, investments in waste
recycling, carbon emission reduction projects, and productivity-
enhancing investments
Annual CO2 Emission
Reduction: 260.000 Tonnes Customers are required to follow all principles of the UN Global
CO2 emissions prevented by Compact
AKLease is renewable projects financed
/ Reflect of 12 mn trees CO2
committed in absorption
AKLease ensures compliance with environmental and social
issues, occupational safety and health regulations, and safety and
financing a wide security regulations within the scope of all national laws and
range of Obtained USD 25 mn from
regulations.
environmentally Dutch entrepreneurial
development bank FMO with
We have the utmost respect and give unconditional support to
protecting human rights. All national standards regarding child
conscious and 5 years maturity for
abuse of forced labor are in compliance unequivocally and to the
renewable energy and
sustainable projects. energy efficiency financing
highest degree.
in 2020
18Content
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
19Snapshot of results
Income Statement mn TL 2018 2019 2020
Net interest income
Key Performance Indicators(%)
138 149 210
Net commission income 14 14 14
Other operating income -4 40 69 2018 2019 2020
Gross operating income 147 204 292
Provision expense 171 43 46 RoE -9,9 12,3 15,2
Other operating expense 49 43 47
Profit before tax -72 117 199
RoA -1,1 1,6 2,5
Net profit -55 95 155
Balance Sheet mn TL NIM* 2,7 2,8 4,6
Lease receivable 5.806 4.821 5.490
NPL 600 573 568
NPL 9,4 10,6 9,4
Provision (-) 489 402 395
Net Lease Receivable 5.917 4.993 5.663
Cost of Credit 3,7 0,6 0,6
Assets held for sale 162 30 77
Other assets 578 812 935
Cost to Income 24,9 20,4 13,9
Total Assets 6.657 5.834 6.676
Borrowings
Cost to Assets 0,5 0,6 0,6
5.512 4.590 4.992
Other Liabilities 418 296 581 Equity to Gross Debt 13,2 20,6 22,1
Equity 727 948 1.103
Total Liabilities 6.657 5.834 6.676
20 *Swap adjustedWell positioned in the market
Aklease Net Lease Receivables (mn TL) AKLease - Sector CoC
%3,7
5.930
5.490
4.821
%1,3 %1,2
%0,7 %0,6 %0,6
2018 2019 2020 2018 2019 2020
NLR (mln TL) AKLease Sector**
NLR Market Share *
%21,8
%20,3
%18,4
Ranking* 2018 2019 2020
%13,1
%10,3 %9,9 %10,7
%9,6 %9,5 %9,3
Return on Equity 4 1 1
%9,0 %8,7
Aklease Peer1 Peer2 Peer3 Net Lease Receivables 2 3 3
2018 2019 2020
21 * 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
%24,7
%2,5
%24,9 %2,2
%20,4 %14,0 %1,6 %1,7
%1,4
%13,9
2018 2019 2020 2018 2019 2020
-%1,1
NIM AKLease
Net Interest Margin NIM (Swap Adj.) Return on Equity Turkish Leasing Sector
%4,6 %15,2
%12,3 %12,6
%10,8
%9,7
%2,7 %2,8 %3,9
%2,3 %2,5
2018 2019 2020
2018 2019 2020
-%9,9
22Strong 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
below 4 months in FX side)
%17,7 %17,9
Interest Rate Risk %12,2
%14,0 %14,0 %15,0
Internal Limit
2018 2019 2020
23Well established wholesale funding profile
Successful Wholesale Borrowings Profile of Wholesale Funding
EUR 40 mn, 3 years loan from The European %38
Bank for Reconstruction and Development
(EBRD) for helping robust recovery of Turkish
economy during Covid-19. The first and only
%21
loan given by EBRD to Turkish leasing sector
within the year of 2020.
%13
%11
%10
USD 25 mn, 5 years loan from Dutch %7
entrepreneurial development bank FMO for
renewable energy and energy efficiency Foreign Banks Multilateral Syndication ECA Covered Akbank Domestic Banks
financing. The first and only loan given by
FMO to Turkish leasing sector within the year
of 2020. * 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.
24Maturity & currency breakdown
Portfolio Maturity (2020) Funding Maturity Breakdown (2020)
2021
2021
2022
2022 %10 2023
2023
%23 2024+
2024+
%35 %22 %43
%16
%25
%27
Portfolio Currency Composition (2020) Funding Currency Breakdown (2020)
EUR
Avg. Maturity: EUR USD
TL
1,5 yrs USD %16
TL
%20
%13 %27 %57
Avg. Maturity:
2,0 yrs
%67 Avg. Maturity:
2,1 yrs
25 Note: Avg. Maturity means the remaining average maturityAsset quality, strong coverages
Staging Breakdown Staging Breakdown & Coverages (2020)
Coverages %1,0
%83,5
%9,3 %10,6 %9,4
%11,8 %51,9
%7,9 %9 %7,1
%82,8 %83,5
%80,4 %7,1 %9,4
Stage 1 Stage 2 Stage 3
Coverage Ratio*
%8,9
%6,5
%5,1
%4,2
2018 2019 2020
Stage 1 Stage 2 Stage 3
AKLease Peer 1 Peer 2 Peer 3
26 *In the same peer groupBalanced loan portfolio
Sector Breakdown (2020) Asset Breakdown (2020)
Textile
Food and Tourism Machinery Aircraft
Energy and
beverage
Natural Sources
%12 %6 Commercial
%3 %3 Real Estate
Textile %11
%15
%12 Construction - Other
Contractor %12
%10
Construction
Construction - %6 Machinery
%4 Investment
Steel %16
processing Metal Processing %14
%8
Production Machinery
%2
%2
%6
Healthcare %34
%23
Medical
Transportation
Equipment
Manufacturing Machinery
Other and Equipment
27Lease portfolio structure by segments
Segment Breakdown
Customer Segment Turnover
Corporate
Commercial
SME
Micro
Corporate >500 mn TL %2
%10
40 mn TL
%31 %57
1,25 mn TL
MicroContent
01 Akbank Overview
02 AKLease Overview
03 People & Culture
04 Sustainability
05 AKLease Financials
06 Operating Environment
29Turkish 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.
30Investor 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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