1

Table of contents

(1) Introduction

(2) The Factoring Industry

(3) Lider Faktoring – Business Overview

(4) Lider Faktoring – Risk Management and Asset Quality

(5) Lider Faktoring – Financial Overview

2

(1) Introduction

3

Key company highlights

Solid financial

position

Leading factoring

franchise in

Turkey

Strong

shareholder base High asset quality

Diverse client base

and extensive

distribution network

Strong risk

management

controls

Efficient and

conservative

approach to

factoring

Experienced and

stable

management

4

Key performance indicators

(TRY thou, %) FY 2016 FY 2017 FY 2018

Assets 1.071.506 1.297.450 995.701

Equity 112.370 132.749 155.569

Leverage ratio(1) 9,5x 9,8x 6,4x

Gross profit(2) 58.738 41.353 41.708

Operating expenses(3) 29.382 43.260 54.054

Profit before tax 26.669 28.595 25.203

Net profit 21.368 23.098 19.811

Loan Loss Provision ratio(4) 0,4% (0,1%) 0,4%

ROAA (%)(5) 2,5% 2,0% 1,7%

ROAE (%)(6) 20,9% 18,8% 13,7%

Lider Faktoring at a glance

Moody's S&P Fitch

National Long-Term Rating NA NA BBB(tur)

Outlook NA NA Negative

2009

2008

2007

2002

90s

Key historic milestones

The Company was established in 1992

The family members purchased Lider

Lider became a leading player in the sector with 11 branches, 100

employees, 7000 client base and relations with leading Turkish banks;

Lider ranked 4th among non-bank owned companies

Lider obtained a first of its kind funding and equity investment from a leading global investment bank; Lider ranked 2nd among non-bank owned companies Existing management continued to

grow the business with Credit Suisse as a minority; Lider ranked 1st among independent factoring companies on

the basis of total factoring turnover

Source: Lider Faktoring, IFRS Financial Statements as at respective date Note: (1) Leverage = total assets / shareholder’s equity (2) Gross profit = net interest income+ fee and commission income, net (3) Operating expenses = personnel expenses + administrative expenses + depreciation and amortisation

(4) Loan Loss Provision ratio = (recoveries of / (provisions for) impaired factoring receivables) / gross factoring receivables (5) RoAA = net income / average total assets (6) RoAE = net income / average shareholder’s equity

2010 Lider successfuly completed a local currency FRN issue with a maturity of two years; kept and enhanced leading position as ranking 1st among independent factoring companies on the basis of total factoring turnover

Lider received the prestigious corporate governance award from

TKYD, Credit Suisse extended a new TRY130.5mn loan of up to 5-years,

2011

2012 Lider, for the second year in a row, won the prestigious corporate governance award from TKYD, Credit Suisse loan was restated to TRY237.3mn with a 5.5-years maturity, Lider issued a total of TRY150mn FRNs with 5 different maturities,

2013 Lider received the prestigious

corporate governance award from TKYD for the third time

2014 15% of Lider shares started trading on Borsa Istanbul (“BIST”) after the completion of its IPO in June 2014

2015

As at October 2017,100% of Destek Varlık Yönetim A.Ş. is bought

49.98% of Destek Varlık Yönetim A.Ş. (an NPL company) İs bought as at 29/12/2016

2016

2017

2018 As at 31/12/2018, Lider issued a total of TRY1.80 billion debt instruments of which TRY1.74 billion have matured

5

Shareholder structure

Lider is a publicly traded company where the majority of the shares are held by the family. 15% of Lider shares are traded on Borsa Istanbul.

Family members hold all Class A shares and have the right to appoint a simple majority of the members of the Board.

Class B shareholders only have economic rights to dividends / distributions and pre-emptive rights with respect to future share issuances as well as the ordinary rights of a shareholder.

Nedim Menda is a Class C shareholder and has some rights (in accordance with Article 13 of the Company’s AoA) over Lider’s decisions including but not limited to: (a) sale, merger, consolidation, spin-off ; (b) liquidation, dissolution or winding up; and (c) the increase of the authorized capital of the Company.

Source: Lider Faktoring as of 31 December 2018

Nedim Menda 33,56%

Jak Sucaz 21,39%

Raşel Elenkave 11,34%

Others 18,71%

Free float 15,00%

6

Business growth

Since January 2008, Lider has substantially raised its factoring volumes, enhanced by additional long-term capital increases – Lider expanded its balance sheet by 17% CAGR between 2008 - 2018 with the help of Credit Suisse’s financing packages, debt instrument issuances and local / international banking relationships and credit lines.

− In April 2008, Credit Suisse extended a TRY40mn loan of up to 3-years to Lider Faktoring (fully repaid) and, in October 2008, Credit Suisse became a minority shareholder through a 9.9% direct shareholding. Credit Suisse sold its shares to Nedim Menda in 2018.

− Lider has further expanded its balance sheet by 4.8x between 2008YE and 2018YE.

Source: Lider Faktoring as of 31 December 2018

Lider’s quarterly factoring volume since 2008

0

100

200

300

400

500

600

700

800

900

1.000

2Q2008 4Q2008 2Q2009 4Q2009 2Q2010 4Q2010 2Q2011 4Q2011 2Q2012 4Q2012 2Q2013 4Q2013 2Q2014 4Q2014 2Q2015 4Q2015 2Q2016 4Q2016 2Q2017 4Q2017 2Q2018 4Q2018

TR

Y (m

illio

n)

7

Lider – Superior asset quality

Receivables collection breakdown

Change in Doubtful Receivables (% of gross factoring receivables)

Cheque tenor (% of total factoring receivables)

Source: Lider Faktoring as of 31 December 2018

(0,2%)

0,4%

1,2%

0,2%

(0,2%)

1,6%

0,4%

(0,1%)

0,4%

(1%)

0%

1%

2%

3%

4%

5%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Write-offs (% of gross factoring receivables)

97,3% 97,5% 96,1% 96,8% 96,7% 96,0% 95,9% 97,7% 96,0%

2,6% 2,1% 3,1% 2,5% 2,7% 2,8% 3,3% 2,3% 4,0%0,1% 0,4% 0,8% 0,6% 0,6% 1,2% 0,8%

0%

25%

50%

75%

100%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Loans in legal follow up Recourse / admin Clearing system

* A portfolio of non-performing factoring receivables of Lider were sold to Sümer Varlık Yönetim A,Ş,

0,04% 0,01% 0,01% 0,02%

1,17%

0,00% 0,02% 0,00%

1,07%

0,00%

0,20%

0,40%

0,60%

0,80%

1,00%

1,20%

2010 2011 2012 2013 2014 2015 2016 2017 2018 *

27,6%

41,8%

29,5%

1,0%

0%

10%

20%

30%

40%

50%

Up to 1 month 1 - 3 months 3 - 12 months Over 1 year

Cheque seasoning

8

(2) The Factoring Industry

9

What is factoring?

Factoring is the assignment of receivables with a discount and a commission

Factoring companies aim to provide financing against the assignment of receivables, which are evidenced by the relevant invoice to ensure there is an underlying commercial transaction, and the payment for such receivables is usually in the form of the post-dated cheques.

There are two options in factoring, (i) full-recourse, where the company has full recourse to the relevant customer in line with the factoring agreement (as well as to the originator and any endorsee of the relevant cheque pursuant to Turkish law), or (ii) non-recourse, where the company would only have recourse to the originator and any endorsee if there is an underlying cheque for the payment of such receivables.

Factoring companies with good operational systems and track records are able to raise financing against these receivables mainly from local banks via secured lending.

Supervision and governance of the factoring firms is undertaken by the Banking Regulation and Supervision Agency (“BRSA”) since 2006.

Factoring

Company Company B Company A

Goods & Invoice

Customer Cheques

Factoring

Customer Cheques

& Invoices

Banks & Other

Lenders

Secured Financing

Various cash needs, tax payments,

working capital needs and etc

Funding cycle

revolves

continuously Customer Cheques

& Invoices

10

The Turkish factoring industry is comprised of 59 factoring companies, including Lider, where all are members of the Financial Institutions Association (www.fkb.org.tr) as at 31 December 2018.

Invoices and receivables are supported mostly in the form of post dated cheques: (i) post-dated cheques are used often in Turkey to make deferred payments, (ii) cheques in Turkey are recourse to each originator / endorses, (iii) the nominal amount is collected via the clearance system, and (iv) each cheque must come attached with an invoice.

Turkey’s loan penetration ratio is relatively low by international standards and, with most commercial banking loans targeting the corporate and consumer sectors, the Turkish factoring sector has been growing as an alternative financing method for SMEs.

Turkish factoring sector

Turkish factoring sector profitability ratios

Banking sector profitability ratios

Distribution of bank loans by type Turkish factoring sector share within non-bank financial sector

Source: BRSA, December 2018

2,1% 2,6% 2,5% 1,7% 1,8%1,6% 1,7% 1,5%

1,9%2,0%

1,8%

18,7%

22,9%20,1%

15,5% 15,7% 13,1%12,2%

11,3%

14,3%16,0%

14,7%

0%

6%

12%

18%

24%

30%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ROA ROE

5,3%3,8% 3,2% 3,3% 3,7%

2,6% 2,6%1,5%

2,2% 2,4%3,3%

18,8%

14,1% 15,2% 15,8% 17,1%13,1%

14,6%

8,6%

13,7%

17,1%20,4%

0%

6%

12%

18%

24%

30%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ROA ROE

25,8%

35,2%

39,9%

36,2% 36,3%

32,9% 33,4%

28,2%28,9%

31,0%

24,2%

20%

25%

30%

35%

40%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

45% 46% 43% 52% 42% 42% 44% 48% 51% 52% 53%

32% 33% 33% 25%34% 32% 29% 26% 24% 23% 21%

23% 21% 24% 24% 25% 26% 27% 26% 24% 25% 26%

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Corporate/Commercial Consumer SME

11

(3) Lider Faktoring – Business Overview

12

Business model overview

Lider is mainly active in “with-recourse factoring”, providing the Company with recourse to both the underlying debtor and the customer. Lider also does non-recourse factoring by the supplier financing method.

Lider generally manages a diversified portfolio with the majority of its factoring volumes in small sized transactions, sourced from a broad range of companies across many industries, mainly in the manufacturing sector.

In addition, Lider has good corporate governance controls with three board committees in place to oversee the business – the committees are (i) the Audit Committee, (ii) the Risk Detection Committee, and (iii) the Corporate Governance Committee.

Selection methodology

Trade registry scanning and review of foundation documents

A new client is never added to the system without pre-visiting them, Existing clients are regularly visited

With recourse factoring

All loans are recourse to the Client where core collateral is the quality of the receivable and endorsements

No sector preference but tendency is with manufacturing related sectors

Target clients

Sourced from SME client base, currently in excess of 29,000 clients / customers

All clients need to be approved by the underwriting department

Granular risk

Average transaction size is TRY 262,579

Average cheque size is TRY 29,678

Diversified Portfolio

13

Factoring

Company Client A

Cheque(1)

Assignment of the

Receivable of Client A

from its Customer

Invoice of Client A

for goods /

services to its

Customer

Various cash needs, tax payments,

working capital needs and etc,

Endorsee

Cheque(1) Cheque(1)

Originator-1

Endorsee

Cheque(2) Cheque(2)

Originator-2

Cheques

(1,2,…n)

Endorsee

Cheque(n) Cheque(n)

Banks

Secured Financing

Customer Cheques & Invoices

Funding cycle

revolves

continuously

Originator-n

Customer

(of the

Client)*

Endorsee

Endorsee

Endorsee

Cheque(2)

Cheque(n)

Goods /

Services

Payment

Customer

Cheques

(1,2,…n)

Payment for

Discounted

Receivables

* Customer of the Client can make the payment to the Client with the

cheques originated directly by itself or with the cheques that were

received through trade relationship with its own customers as shown in

the chart above through endorsing these customer cheques to the

Client; therefore the Customer of the Client is either the last endorsee or

the originator of the cheques assigned to the Factoring Company

Lider’s factoring process overview

14

Geographic distribution

Breakdown of client factoring receivables by location (31 Dec 2018)

Total factoring receivables – TRY834mn

Source: Lider Faktoring as of 31 December 2018

Lider’s branch network

Lider is headquartered in Istanbul with 24 branches across the remainder of Turkey

Lider has gradually expanded its branch network from none in 2002 to 24 branches covering clients in 60 cities

Lider’s geographic expansion strategy primarily focuses on areas where there is existing factoring demand, which are in close proximity to an industrial center and with low factoring penetration

Istanbul 45%

Bursa 8%Izmir 5%

Denizli 4%

Aydın 3%

Sakarya 2%

Kocaeli 2%

Manisa 2%

Others 29%

Kayseri

Adana

Çorum

Antalya

Denizli

Ankara

Konya

Bursa

İstanbulÇorlu

Eskişehir

Available branches

Bodrum

Gaziantep

İzmit

Kartal

Merter

Beylikdüzü

Bağcılar

Mersin

Ostim

Dudullu

Ege

TuzlaKadıköy

Manisa

15

(4) Lider Faktoring – Risk Management and Asset Quality

16

Strategy and risk management

Strategy

Lider intends to expand its lending platform and its factoring operations outside of Istanbul through the use of the additional capacity available in its existing branches.

Risk management

Lider factors receivables mainly in Turkish Lira and receives the majority of its funding in Turkish Lira Currency risk

Lider maintains a policy of carefully managing liquidity through limiting the amount of bank loans based on the amount of receivables maturing that day

Lider’s factoring transactions are shorter-term in nature than its liabilities – the average maturity of Lider’s receivables are c70-100 days vs, over 120 days for its financial liabilities

Liquidity risk

With minimal foreign currency exposure, Lider’s interest rate risk stems from maturity mismatches – Lider maintains a healthy combination of fixed and floating rate assets and liabilities

Interest rate risk

Counterparty

credit risk

Lider does not target any particular sector of the manufacturing industry and, as a result, has diversified exposure across the various sectors

In addition to having set limits per sector, Lider has set internal thresholds for exposure to any given geographic region, client or originator

Lider has a minimum equity / total assets ratio of 10% as a guiding principle Leverage ratio

17

Lider – Factoring portfolio

Overview

Loan portfolio is diversified by industries, geographically, by customers and originators which is in line with the credit risk management approach

I. Lider has set a threshold of 20% of factoring receivables to any given industry at any given point in time

II. Customer limits are set such that receivables from a single customer cannot exceed 10% of equity

III. Originator limits are set such that receivables from a single originator cannot exceed 4% of equity

IV. A single location can not exceed 12.50% of total receivables and the top three locations cannot exceed 30% of total receivables at any time, with Istanbul being an exception where this ratio is 50%

Factoring portfolio breakdown by industrial sectors (31 Dec 2018)

Top 10 customers

Top 10 originators

(TRY in millions) (TRY in millions)

Source: Lider Faktoring as of 30 June 2018

Construction13%

Trading13%

Textile12%

Iron and steel12%

Food9%

Automotive7%

Machinery6%

Paper & printing6%

Plastics5%

Wood4%

Others13%

364,7486,0

642,6 606,3

823,6

644,0

945,6

1165,8

833,9

4,9%

3,9%

4,6% 4,9% 4,8% 4,9% 4,7% 4,5%5,6%

0%

2%

4%

6%

8%

10%

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total factorig receivables Top 10 originator concentration

364,7486,0

642,6 606,3

823,6

644,0

945,6

1165,8

833,913,1%12,6%

12,0%

13,6%

10,9%

11,4%

10,2%

10,6%

12,8%

8%

9%

10%

11%

12%

13%

14%

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total factoring receivables Top 10 customer concentration

18

A special emphasis is given to corporate governance where Lider aims to establish a sustainable and preferred corporate structure.

Lider’s current (August 2018) corporate governance rating by SAHA is 9.10. Lider, for three years (2010, 2011 & 2013), has been awarded the prestigious corporate governance award from Corporate Governance Association of Turkey (“TKYD”) in the “non-public companies” category.

Lider has been receiving credit ratings from Fitch Ratings since 2009. In August 2018, Fitch Ratings announced Lider’s national long-term rating at BBB(tur). The rating has a Negative Outlook.

Corporate Governance & Ratings

National Long-Term Rating

Corporate Governance and Credit Rating Services, Inc,

Corporate Governance Rating

9.10

Ratings

National Long-Term Rating BBB(tur)

Sovereign Risk Foreign-Currency Long-Term IDR BB+

Local-Currency Long-Term IDR BBB-

Outlooks

National Long-Term Rating Negative

Sovereign Long-Term Foreign-

Currency IDR

Negative

Sovereign Long-Term Local-

Currency IDR

Negative

Financial Data

Lider Faktoring A,S, 16 August 2018

19

(5) Lider Faktoring – Financial Overview

20

Financial overview

Assets

Outstanding risk-return profile

− Strong equity growth (CAGR 15% between 2008-2018)

− Net recoveries of –1.0%, -1.6%, -0.4%, 0.1%, & -0.4% in 2014, 2015, 2016, 2017; & 2018, respectively

− Strong asset growth (CAGR 17% between 2008-2018)

Liquid assets with factoring receivables having an average life of 70-100 days

Scalable platform with low CAPEX requirements

Net Assets

Liabilities and Shareholder’s equity

Well diversified funding base

− No bank represents more than 20% of the short-term loans and borrowings

Lider does not use derivatives or any other off-balance sheet instruments

Lider has a leverage of 6.4x(1) as of 31 December 2018

Liabilities and Shareholder’s Equity

Source: Lider Faktoring, IFRS Financial Statements as at respective date Note: (1) Leverage = total assets / shareholder’s equity (2) Other liabilities = total liabilities – financial liabilities

(TRY in millions)

(TRY in millions)

182 293 356 466622 584

793

614

9001108

775

152 0

181 1

0

1

8

9

23

1212

1317

22 26

4550

163

181

198

0

200

400

600

800

1000

1200

1400

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Factoring receivables Cash & cash equivalents Fixed, tangible & other assets

Total assets

38 52 56 69 84 98 107 92 112 133 156169 252 310427

555 510726

565

9501154

830

33

35

6 4

68

9

11

10

0

200

400

600

800

1000

1200

1400

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Other liabilities Financial liabilities Shareholders' equity

Total liabilities & shareholders' equity

(2)

368 501 645 611 839 665 1072 1297 307 209 996

368 501 645 611 839 665 1072 1297 307 209 996

Sustainable development in balance sheet & enhancement in asset quality

Increase customer variety in specific regions

Focus on controlling the operating costs

Diversify funding structure with new long-term products (bond issue, securitisation, etc)

21

Lider 2018 Results

In 2018, Lider achieved a sustainable development in its balance sheet to enhance asset quality and also increased the customer variety in its receivables portfolio,

Prudent Risk & Transaction

Policy

After controlling doubtful receivables (without sacrificing the provision policy) and enhancing asset quality, Lider achieved a sustainable development its balance sheet

Increased the variety in customer groups in 2018

Targets Actions & Results

Optimize Operating

Costs

Total operating costs increased 14.3% in 2018 compared to 2017 (on a solo basis) by improving the personnel and administrative expenses

Diversify Funding Base

A total of TRY460mn debt instruments issued in 2018 (30 issues in total)

As at 31/12/2018, Lider issued a total of TRY1.80bn debt instruments of which TRY1.74bn have matured

Bank limits are at TRY1.4bn level

Negotiations have been made with international banks regarding different funding structures

22

2017 & 2018 Quarterly Indicators

Quarterly Factoring Receivables

Quarterly Impairment Loss on Factoring Receivables

Quarterly Net Profit

Source: Lider Faktoring, IFRS Financial Statements as at respective date

Quarterly Profit Before Tax

(TRY in millions) (TRY in millions)

(TRY in millions) (TRY in millions)

950 961 1.136 1.108 1.259 1.3721.055

775

0200400600800

1000120014001600

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q20180,3 0,1

0,7 0,41,0

0,10,6

3,6

0

1

2

3

4

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018

8,35,6 5,9

8,811,4 11,5

1,6 0,80

5

10

15

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018

6,84,5 4,7

7,18,9 8,9

1,3 0,80

2

4

6

8

10

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018

23

Financial overview – Balance sheet

Audited Audited Audited

31.Dec.2018 31.Dec.2017 31.Dec.2016

Cash & Cash Equivalents 23.084 8.618 8.434

Factoring Receivables 774.521 1.107.961 900.234

Credit Impaired Assets 120.243 121.807 107.442

Property and Equipment 68.667 38.426 33.026

Intangible Assets 772 558 162

Deferred Tax Assets 5.308 6.398 6.118

Assets Held for Sale 818 347 372

Current Tax Assets 427 - -

Other Assets & Prepaid Expenses 1.861 13.335 15.718

Total Assets 995.701 1.297.450 1.071.506

Borrowings 735.274 868.226 773.760

Debt Securities Issued 92.382 284.270 174.534

Factoring Payables 2.726 1.686 1.473

Income Taxes Payable 23 1.800 1.982

Deferred Tax Liabilities - 540 582

Other Liabilities 3.485 3.478 2.799

Provision for Employee Benefits 6242 4701 4006

Equity 155.569 132.749 112.370

Total Liabilities & Equity 995.701 1.297.450 1.071.506

(%) 31.12.2018 31.12.2017 31.12.2016

Factoring Receivables / Total Assets 77,8 85,4 84,0

Borrowings / Total Assets 73,8 66,9 72,2

Debt Securities / Total Assets 9,3 21,9 16,3

Equity / Total Assets 15,6 10,2 10,5

Selected Items (TRY in thousands)

24

Financial overview – Income statement

Audited Audited Audited

31.Dec.2018 31.Dec.2017 31.Dec.2016

Interest Income 292.040 184.161 143.534

Interest Expense -255.275 -148.841 -91.745

Net Interest Income 36.765 35.320 51.789

Fee & Commission Income, net 4.943 6.033 6.949

Gross Profit 41.708 41.353 58.738

Income from Credit Impaired Receivables 45.871 28.688 0

Provision for Impairment of Factoring Rec. -5.406 -1.551 -4.969

Recoveries from Impaired Factoring Rec. 1.229 2.232 848

Personnel Expenses -34.479 -30.036 -23.612

Operating Expenses -19.575 -13.224 -5.770

Other Operating Income / (Expenses) -4.145 953 1.434

Profit Before Income Tax 25.203 28.595 26.669

Income Tax Expense -5.392 -5.497 -5.301

Net Profit 19.811 23.098 21.368

Profitability Ratios 31.12.2018 31.12.2017 31.12.2016

ROE 13,7% 18,8% 20,9%

ROA 1,7% 2,0% 2,5%

Income Statement (TRY in thousands)

25

The information in this presentation has been obtained by Lider Faktoring from sources believed to be reliable, however, Lider Faktoring

cannot guarantee the accuracy, completeness, or correctness of such information, This presentation has been issued for information

purposes only,

This presentation does contain forward-looking statements that reflect Lider Faktoring management’s current views with respect to certain

future events based on the base-case assumptions, Although it is believed that the expectations reflected in these statements are

reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ

materially, These forward-looking statements speak only as at the date of this presentation, and Lider Faktoring undertakes no obligation to

update the forward-looking statements in this presentation,

Neither Lider Faktoring nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any

loss arising from the use of this presentation,

Disclaimer