MERKEZİ KAYIT KURULUŞU: CENTRAL SECURITIES DEPOSITORY OF TURKEY

1. MERKEZİ KAYIT KURULUŞU: CENTRAL SECURITIES DEPOSITORY OF TURKEY

2. MKK - MERKEZI KAYIT KURULUSU GENERAL INFORMATION • Central Securities Depository of Turkish Capital Markets for dematerialized securities • Turkish capital markets is fully dematerialized • Beneficial-owner based system with the opportunity of having «omnibus accounts» for foreign CSDs & ICSDs • Supervised & Regulated by the Capital Markets Board of Turkey (CMB) • Officially Licensed R&D Center • In-house developed depository sytem; «Central Dematerialized System» • In-house developed Inverstor Services ; «e-MKK Services» • Financial Accounts Center of Turkey • All accounts that are opened in the financial system • System integration with «Ministry of Internal Affairs» & «Ministry of Finance» • Direct Link with the Austrian CSD – OeKB

3. DEMATERIALIZATION PROCESS

4. MKK - SHAREHOLDERS & BOARD STRUCTURE SHAREHOLDERS % 5 % 64.9 % 30.1 The Association of Capital Market Intermediary Institutions of Turkey BOARD STRUCTURE 2 Members 3Members 1 Member 1 Member 1 Member 1 Member

5. MAIN DUTIES AND RESPONSIBILITIES • Central Securities Depositoryof Dematerialized Capital Market Instruments (November.2005) • Financial Accounts Centerfor all the accounts opened in Turkish Financial Sector (October.2011) • Electronic General Meeting Centerfor all Borsa Istanbul listed Companies (August.2012) • Electronic Commodity Centerfor all e-Warehouse Receipts (December.2012) • Digital Company Centerfor Companies’ «Information Society Services» (October.2013) • R&D Centerfor its Software Development Technologies (November.2013)

6. DEMATERIALIZED SYSTEM SOFTWARE • Developed by MKK R&D Center, e-signature usage • Web Based – Java Application – Remote Access • Secure messaging infrastructure MOM (Message-Oriented-Middleware) • ISO 27001 Information Security Certification • ISO 22301 Business Continuity Management System Certification • Award of merit at the 7th Technology Conference by • TUBITAK (Scientific and Technological Research Council of Turkey) • TTGV (Technology Development Foundation of Turkey) • TUSIAD (Turkish Industrialists’ and Businessmen’s Association) • TUBITAK R&D support R&D SUPPORT

7. CENTRAL SECURITIES DEPOSITORY ACCOUNT STRUCTURE PARTICIPANTS ACCOUNTS SUB-ACCOUNTS

8. ELECTRONIC ACCOUNT OPENING APPLICATION FOR ACCOUNT OPENING INTEGRATION MKK MEMBER AND ACCOUNT STRUCTURE • All accounts opened in Turkish Financial Markets • ID and contact information of every Investor in Turkey • (phone numbers, e-mail and mail addresses of investors) MINISTRY OF FINANCE ISSUER COMPANY Legal Entity ISSUER COMPANY INVESTOR ACCOUNTS TAX ID NO TAX ID NO MKK Central Dematerialized System INVESTORS T.R. ID NO INTERMEDIARY INSTITUTION/BANK INTERMEDIARY INSTITUTION/BANK INVESTOR ACCOUNTS Real Person T.R. ID NO MINISTRY OF INTERNAL AFFAIRS REGISTRY NO & PASSWORD Investors • e-Government Integration Accounts

9. ACCOUNTS OPENED (2012 vs 2013) • In 2013, 42% increase in the number of depository accounts opened by the foreign investors compared to 2012

10. FIGURES (February 2014)

11. Foreign Ownership: % 61.23 Free Float: 84 bil. US $ Non Free Float: 136 bil. US $ CUSTODY-SECURITIES(February 2014)

12. MKK - Investor Services AloMKK (444 0 655) e-GEM : Electronic General Meeting IVR System/ Call Center • Participation to General Assembly meetings by remote access &mobile applications -voting by electronic means Electronic Reports (e-mail) Mobile Services SMS e-DATA : Capital Markets Data Bank • Distribution of capitalmarkets data by econometric models • RISE (Investor Risk Appetite Index) Electronic Report Posting System Mobile Blockage e-GOVERNANCE : Corporate Governance & Investor Relations • Information • Portfolio Status • Account Movements • Reports • Investor Blockages • Periodic Notification • Portfolio Status • Account Movements • Communication bridge between companies and shareholders e-CAS : Investor Notification Random Notifications • Real time notification of investors regarding the movements intheir accounts Electronic Notification (SMS & e-mail) e-WAREHOUSE RECEIPT : Electronic Warehouse Receipt Center Random Report Delivery • Monthly 10,000 Investors • Portfolio Status • Conversion of agricultural products to electronic warehouse receipts • Instant Notifications • Account Movements • Information on Corporate Actions

13. Mobile Corporate Governance Projectwhich is a platform to enhance corporate governance and investor relations and develop transparency and information access for market participants • Communication bridge between companies and shareholders • Continuous information exchange between shareholders and companies through internet, e-mail and mobile applications • Enables companies to reach their shareholders directly • Enables shareholders to access information on companies easily and completely • Investor Information Center • TUBITAK R&D support R&D SUPPORT

14. «One of the pioneering applications in scope» Developed in-house, launched and operated by MKK (Central Securities Depository of Turkey), e-GEM is a multilingual, real-time online general meeting, e-voting and e-proxy platform. The platfrom can be easily customized based on different requirements of any financial markets. With its launch on 01 October 2012, issuers/companies started to use e-GEM for conducting online general meetings as per the requirement of the Capital Markets Board of Turkey. Turkey is the first country to make it a legal obligation for Borsa Istanbul listed companies to enable electronic means for their shareholders to attend general meetings via e-GEM. It is possible for non-listed companies to use e-GEM as well. Development Started Nov 2011 Development Finished Jul 2012 Load Tests Jul-Aug 2012 Launched Oct. 2012 Pen. Tests Sept. 2012

15. What Kind of Operations are Carried Out on e-GEM; • Issuers make convocations on e-GEM and upload proxy materials to the system. • All parties are notified when convocation is made on e-GEM. • Access to proxy materials including meeting documents. • Proxy assignment and delivery of voting instructions without any PoA documents. • Pre-registration of the vote preferences. • Live stream of general meetings. • Issuers can easily prepare list of attendees on e-GEM. • Participants can ask questions, express opinions and vote online during the meeting. • Physical and electronic votes are aggregated on e-GEM and calculated by the system to give the exact result for each agenda item. • Access to voting results as soon as the meeting finishes.

16. What e-GEMBrings to Custodians; What e-GEMBrings to Investors; • Minimum Operational and Out of Pocket Costs • Vote Recording • Paperless Proxy • Attendance to Concurrent Meetings • Instant Reporting • No Record Date • No More Blocking of Shares • Integration with SWIFT • e-Attendance • Minimum Costs (operations & time) • General Meeting Process from A to Z • Vote Recording • Attendance to Concurrent Meetings • Access to Proxy Materials • Instant Notifications • No Record Date • Partial & Split Voting (through intermediary) • No Shares Blockage • Paperless Proxy • Vote Instructions • Live Stream of Meeting

17. STATISTICS (Oct’12-2013) • 13,464 investors attended electronically, 6,196 investors attended physically (19,660). • In its first year attendance ratio increased by 124%. • Among 13,464 investors electronically attended, 13,265 are foreign investors • Among 6,196 investors physically attended, 1,850 are foreign investors • Average number of physical attendees per GM is 13. • Average number of electronic attendees is 34 per GM

18. Public Disclosure Platform (PDP):PDP is the primary official source of information for Borsa Istanbul (listed) companies, who are required to publicly disclose; their financial statements, any material events (events that give rise to Insider Information and Continuous Information), other events (Monthly notifications, Net asset value statements, Articles of Association, Fund Charter, Prospectus, circular, Notifications regarding the mergers, acquisitions and divestures, General information form of the company, Tender offer information form).

19. Notification of Investors via SMS & e-mail on the movements that take place from out of their accounts • Activates whenever a transaction on their accounts is made • Real time notification of investors on the movements that take place possible errors and fraudulent attempts that take place on their accounts. • Decreases possible individual or systemic risks • Notification Phase: Notification is made after the transaction is completed. • Blocking Phase: Transaction is not completed unless the investor subscribes to e-CAS Service.

20. Adapting the dematerialized system to agricultural industry of Turkey and Turkic Republics • Integration of agricultural sector with capital markets • Conversion of agricultural products stored in licensed warehouses to electronic warehouse receipts • Safekeeping of electronic warehouse receipts in MKK’s electronic book-keeping system • Trading of products at the Commodity Exchange • Farmers Notification System

21. Central data bank of the capital markets • Co-operation with Ozyegin University & Markit Partners • Distribution of all data produced in the Turkish capital markets by econometric models in a secure, consistent and reliable manner • Statistics on capital markets in international standards • Academic articles and research reports • Investor Confidence Index, Investor Risk Appetite Index,Attachment Index and Financial Indicators • Electronic securities database • Contributing to academic research and decision-making processes of policy makers • Providing reliable & consistent data to ratings institutions MKK is awarded with the “Best Big Data Project in Financial Sector” award by the International Data Corporation (IDC)

22. A weekly indicator, analyzing 850,000 investor data • Calculated by taking weekly portfolio changes of the investors who own at least 5,000 TL stock portfolio value at any period beginning from 28 November 2005. • Changes of the investors’ stock and A-type mutual funds total portfolio values on every Friday adjusted for the changes in BIST-100 are used • RISE index covers all investor types, such as “Domestic &/ or Foreign Investors” and etc. • Using a matrix of variations, investors are given scores between “0” and “1” • If the calculated index is above (50), it implies that the investors are holding a rather risky portfolio; • If the calculated index is below (50), then it implies that the investors are holding a rather risk-free portfolio compared to previous period of 2 weeks;

23. MKK – 2014 TARGETS • Central Depository System Upgrade v2.0 (CDS v2.0) • Establishing new Collaboration and Cooperation Models with Foreign CSDs and ICSDs • Upgrading and Updating of MKK’s Information Technologies Infrastructure • e-GEM SWIFT Integration for both ISO 15022/20022 • Taking Over Borsa Istanbul’s «Public Disclosure Platform – PDP» and Upgrading it to v4.0 (MKK has taken over the platform as of March 17th) • Providing Support and Maintenance of Systems for Borsa Istanbul – Nasdaq OMX Partnership • Dematerialising new Agricultural Products under the Scope of e-WAREHOUSE RECEIPT Services Provided by MKK • 23

24. MKK - FUTURE OUTLOOK • Maximizing Ancillery Service & Value Added Service Revenues (50%) • Data/Information Vendoring • Financial Information Services • Investor Services • Commodity & Capital Market Integration • Innovative IT Services & Software Development • New Value Added Services to utilize information capacity • Implementation of international industry standards (Full STP in Corporate Actions Operations, ISO20022, LEI, etc.) • Integration,Cooperation and Partnerships with Europe, Middle East, North Africa and Turkic Republics counterparties to complete the post-trading chain from West to East

25. For further assistance please contact with INTERNATIONALRELATIONS@mkk.com.tr or visit www.mkk.com.tr