performance & financial results - q110 · q109 q110 derivative transactions displayed a...

PERFORMANCE & FINANCIAL RESULTS - Q110 May 17, 2010

Performance & Financial Results – Q110

1

About Us

Overview of Turkish Capital Markets

Our Performance

Financial Results

Expectations for 2010

About Us

Activities Subsidiaries

2

Corporate Finance

• Public Offerings

• Mergers & Acquisitions

• Project Finance

• Privatization Advisory

• Strategic Planning

• Private Equity

Asset Management

• Discretionary Portfolio Management

• Mutual Funds Management

• Private Funds Management

Investment Advisory

• Individual Clients

• Corporate Clients

• Institutional Sales

Research

• Macro economy

• Sector Research

• Company Analysis

• Fixed Income Securities Analysis

• Strategy Reports and Presentations

Brokerage & Trading

• TL/FX Stocks

• TL/FX Treasury Bond/ Government Bond

• TL/FX Private Sector Bonds

• TL/FX Derivatives

Maxis Securities: (Share: 100%)London headquartered B Group capital markets licensed subsidiary

Camiş Investment: (Share: 99.79%)Turkey’s one of the long-established brokerage houses

IS Asset Management: (Share: 70%)Turkey’s leading Portfolio Management Company managing IS Group funds

IS Investment Trust (Share: 29.1%)Turkey’s leading Investment Trust

IS Private Equity: (Share: 29%)Turkey’s largest Private Equity

Shareholder Structure

T. İş Bank, 65.6%

İş Factoring, 2.4%

İş Leasing, 2.4%

T. Şişe ve Cam Fabrikaları ,

1.5%

Camiş Investment,

0.2%

Free Float, 27.9%


3

About Us


Our Performance

Financial Results


* Market Transactions by Members


Equity Market Volume (In TL Billion)* Derivatives Market Volume (In TL Billion)*

4

Q109 Q110

140

351

Source: ISE Source: TurkDEX

Trading volumes continued to increase in the first quarter of 2010 due to the growth expectations

Q109 Q110

113

191

* Market Transactions by Members


Securities Lending/Borrowing Market

(In TL Million)*

Bills & Bonds Market Volume (In TL Billion)*

5

Q109 Q110

Source:ISESource: ISE Settlement and Custody Bank Inc.

Securities L/B Market performed well in parallel to

the increasing equity market

Q109 Q110

Trading volume among brokerage houses increased by 14%

221

254

623

1,169

B&B market was not an attractive investment area

with respect to other markets


Pension fund business keeps it steady and high growth

6

2009/3 2010/3

28.7

6.8

30.5

9.7

Source: CMB & IS Asset Management

Pension Funds

Mutual Funds*Pension Funds grew 41% with respect to the same period of 2009

Asset Management ( In TL Billion)

*A Type, B Type Funds and ETFs.

Mutual Funds grew 6% with respect to the same period of 2009


7

About Us


Our Performance

Financial Results


Equity Market Volume and Market Share

(In TL Billion)

Our Performance 8

Q109 Q110 Q109 Q110

10.7

25.4

Source: ISE

7.6%

7.2%

IS Investment 7.2%

Broker 1 6.0%

Broker 2 5.6%

Broker 3 5.0%

Broker 4 3.8%

#1

Leading the market with its growing organization Sustained leadership since the establishment of TurkDEX

Derivatives Market Volume and Market Share

(In TL Billion)

13.9

23.6

Source:TurkDEX

12.3%

12.3%

IS Investment 12.3%

Broker 1 7.1%

Broker 2 5.7%

Broker 3 5.7%

Broker 4 5.7%

#1

Securities Lending/Borrowing Market

(In TL Million)

Our Performance 9

Q109 Q110

The most active investment house with its high

trading volume

Bills & Bonds Market Volume and Market Share*

(In TL Billion)

*Among Brokerage Houses

3.9

8.2

Source: ISE

10.1%

18.5%

Recaptured the leadership

Q109 Q110

Source: ISE Settlement and Custody Bank Inc.& IS Investment

136.4

260.721.9%

22.3%

Our Performance 10

Trading volume increased 59% thanks to the high

performance of equity market

ISE Equity Margin Trading Volume

(In TL Million)

43.5

69.4

Q109 Q110

Derivative transactions displayed a significant rise

1,329

501

93,285

197,796

0

50.000

100.000

150.000

200.000

250.000

0

200

400

600

800

1.000

1.200

1.400

Q109 Q110

Mil

lion

s

Fixed Income&Equity # Der. Contracts (Right Axis)

International Capital Markets

(In $ Million)

Our Performance

AuM size reached TL 10.2 billion surging by 23% on annual basis, while pension funds and mutual funds registered 46% and 17%

growth rates respectively

11

2009/3 2010/3

5.9

1.3

6.9

1.9

Source: IS Investment & IS Asset Management

Pension Funds

Mutual Funds**

Pension Funds portfolio size

represents 19.5% of the total pension

funds

AuM – IS Asset Management & IS Investment (In TL Billion)*

* Other Funds: Portfolio size of TL 1,092 mn and TL 1,483 mn for other funds for 2009/3 and 2010/3 respectively.

Mutual Funds portfolio size

represents 22.6% of the market

**A Type, B Type Funds and ETFs.


12

About Us


Our Performance

Financial Results


Strong financial structure and enhanced profitability with 24.2% ROAE

Financial Results Sound Performance 13

*Consolidated

IS Investment* TL (000) 2009/3 2010/3 YoY

Total Assets 1,698,145 2,581,080 52%

Shareholders' Equity 284,206 352,803 24%

Net Profit 10,028 18,564 85%

146198

258303 319

10.8%

19.4%17.3%

22.6%24.2%

0%

5%

10%

15%

20%

25%

30%

0

100

200

300

400

500

600

2006 2007 2008 2009 2010/3

TL M

illi

on

sROAE

Average Shareholders' Equity ROAE

45%

47%

8%Interest and Trading Income

Commission Income

Income from Corporate Finance

Total Operating Revenues

66%

15%

18%1%

Commission Income on Trading of Equity Shares

Portfolio Management Fees

Commission Income on Trading of Derivative Transactions

Commission Income on Trading of Fixed Income Securities

Financial Results Breakdown of Operating Revenues 14

Source: IS Investment

Diversified & Sustainable RevenuesTL 28 mn

21,548

12,649

293

34,490

23,003 23,969

4,088

51,060

Interest and Trading

Income

Commission Income Income from Corporate

Finance

Total Operating

Revenues

Q109 Q110

Commission Income – Q110

Breakdown of Operating Revenues (TL 000) Operating Revenues – Q110

Financial Results Asset Management 15

We raised our management fees 24% on annual basis - Continue to see positive effect of our prime brokerage service

Asset Management Commissions

(In TL Million)

3.3

3.8

4.2

5.2

Q109 Q110

IS Asset Management

Consolidated

382

82

353404

2.82*

0.60

2.82

3.22

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

0

50

100

150

200

250

300

350

400

450

39220 39772 40178 40267

TL M

illi

on

s

Mcap ISMEN Closing Price (TL)

18.05.2007 20.11.2008 31.12.2009 31.03.2010

Financial Results Price Performance 16

ISMEN Closing Price TL

31.03.2009 31.12.2009 31.03.2010

P/E 2.59 5.59 5.90

P/BV 0.42 1.10 1.20

Significant performance; share price has increased 16% in 2010, beating the ISE 100 Index by 6 %

Market Capitalisation

20.000

25.000

30.000

35.000

40.000

45.000

50.000

55.000

60.000

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

ISMEN Closing Price (TL)

ISE 100 (Right Axis)

* Public Offering Price

Financial Results Dividend Policy 17

Research Domestic Capital Markets

We distributed TL 42.3 mn to our shareholders as cash dividend after going public in May 2007, which is the

42% of our IPO proceeds

General Profitability

Generous & Sustainable Dividend Policy

30% of Distributable Profit

Shareholders’ Expectations

Growth Policy

Distributable Profit (TL) Cash Dividend (TL)

2009 66.4 mn 19.9 mn

2008 43.1 mn 12.9 mn

2007 31.6 mn 9.5 mn


18

About Us


Our Performance

Financial Results


Expectations for 2010 19

Corporate finance business has begun to up and run.

Gold; we performed Koza Gold’s IPO in January with TL 662.4 mn size by selling about 40% of domestic allocation which is

beyond the expectations.

Holding; the IPO of Akfen Holding A.Ş. was performed with the negative effect of volatility in international markets due to the

high debt problems of southern EU countries.

REIT; we expect to perform an IPO of one of the largest ones in 2010

Aviation; the first private IPO of the sector is planned to be realized by IS Investment.

Corporate bonds; we launched the first corporate bond issuance of the year (Akfen Holding A.Ş.) in the first quarter, and the

issuance of the corporate bonds of Creditwest Factoring is in the pipeline.

A new subsidiary in Dubai, IS Investment Gulf Ltd.; with a focus of being more active in international capital markets and in the

corporate finance. It is planned to up in the 2010.

Two more branches were opened in Istanbul and Bursa in line with the growth policy.

Warrant issuance; the first application in Turkey waiting for the approval of CMB.

Uncontested leadership continues in the market.

Being more active on prime brokerage service; continue to establish new funds.

Foreign exchange trading -after the CMB regulation- will have good contribution to our revenues.

Investor Relations 20

Mr. Mert Erdoğmuş

Assistant General Manager

Phone : +90 0212 350 24 12

Fax : +90 0212 350 20 01

E-mail : [email protected]

Mr. Ozan Altan

Vice President

Phone : +90 0212 350 28 72

Fax : +90 0212 350 20 01

E-mail : [email protected]

The Investor Relations Department is responsible for the timely

communication of necessary, accurate, complete,

comprehensible and easily accessible information and

explanations, which are not considered to be trade secrets to its

shareholders and stakeholders.

http://www.isinvestment.com/wwa_ir.aspx

Disclaimer

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.

21

IS Investment 22

İş Kuleleri Kule-2 Kat:12

HEAD OFFICE34330 4. Levent İSTANBUL TURKEY

Tel: +90212 350 20 00

Fax: +90212 350 20 01

Süleyman Seba Cd. No:44 B1 Blok D:10 Büyükdere Cd.

AKARETLER 34357 Akaretler İSTANBUL TURKEY MASLAK Nurol Plaza No:71/16

BRANCH Tel: +90212 326 87 00 BRANCH 34398 Maslak İSTANBUL

Fax: +90212 326 87 01 Tel: +90212 367 85 00

Fax: +90212 367 85 01

Tahran Cd. No:3/8 Köybaşı Caddesi İskele Çıkmazı No: 6

ANKARA 06700 Kavaklıdere ANKARA TURKEY YENİKÖY 34464 Yeniköy İSTANBUL TURKEY

BRANCH Tel: +90312 455 26 50 BRANCH Tel: +90212 363 01 00

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BRANCH 16160 Osmangazi, BURSA TURKEY BRANCH 34149 Yeşilköy İSTANBUL TURKEY

Tel: +90224 294 80 00 Tel: +90212 463 20 00

Fax: +90224 294 80 01 Fax: +90212 463 20 01

Akdeniz Cd. No:14 Birsel İş Merkezi D:501 Bağdat Cd. Kılıçoğlu Ap. No:451 K:1 D:4

İZMİR 35210 Alsancak İZMİR TURKEY SUADİYE 34740 Suadiye İSTANBUL

BRANCH Tel: +90232 488 90 00 REP. OFFICE Tel: +90216 380 03 53

Fax: +90232 488 90 01 Fax: +90216 416 91 71

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KALAMIŞ Tibaş-Belvü Sitesi A2 Blok D:3 ALMA ATA 97 Block A2 Floor:2

BRANCH 34726 Fenerbahçe İSTANBUL TURKEY REP. OFFICE 050051 ALMAATA KAZAKHSTAN

Tel: +90216 542 72 00 Tel: +77012 234803

Fax: +90216 542 72 01 Fax: +77273 340509

İş Kuleleri Kule 2 Kat:4 MAXIS SECURITIES LTD

LEVENT 34330 4. Levent İSTANBUL TURKEY 8 Princes Street

BRANCH Tel: +90212 350 29 00 SUBSIDIARY London EC2R 8HL UNITED KINGDOM

Fax: +90212 350 29 01 Tel: +44207 397 1431

Fax: +44207 726 2566

PERFORMANCE & FINANCIAL RESULTS - Q110 May 17, 2010

performance & financial results - q110 · q109 q110 derivative transactions displayed a...

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