MERKEZİ KAYIT KURULUŞU: CENTRAL SECURITIES DEPOSITORY OF TURKEY

MKK - MERKEZI KAYIT KURULUSU 16.04.2017 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

DEMATERIALIZATION PROCESS SECURITY TYPE DATE DEMATERIALIZATION RATE(%) Stocks 2005-2007 %100 Mutual Funds 2005-2006 Exchange Traded Funds 2005 Private Sector Bonds 2006 Private Sector Commercial Papers and Bank Bills 2009 Warrants 2010 Asset Covered Securities / Asset Backed Securities 2011 % 100 Government Bonds & T-Bills 2012 Certificates Sukuks

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

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

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

CENTRAL SECURITIES DEPOSITORY ACCOUNT STRUCTURE MKK PARTICIPANT «A» (INTERMEDIARY INST.) Participant Portfolio Acc. Investor Acc.(1) Free Pledge Attachment PARTICIPANT «B» ( (I)CSD ) (I)CSD Portfolio Acc. (I)CSD Investor Acc. (Beneficial Owner) «Omnibus» Account PARTICIPANTS ACCOUNTS SUB-ACCOUNTS

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

NUMBER OF ACCOUNTS OPENED NUMBER OF FOREIGN INVESTORS’ (2012 vs 2013) YEAR NUMBER OF ACCOUNTS OPENED NUMBER OF FOREIGN INVESTORS’ ACCOUNTS OPENED FOREIGN OWNERSHIP (%) 2012 4,431,409 19,208 0,433% 2013 3,214,464 19,861 0,618% In 2013, 42% increase in the number of depository accounts opened by the foreign investors compared to 2012

FIGURES (February 2014) 333 BILLION USD 23,188,568 3,609,422 ASSETS UNDER CUSTODY (MARKET VALUE) 23,188,568 NUMBER OF INVESTORS 3,609,422 INVESTOR ACCOUNTS WITH A BALANCE 43,376,355 NUMBER OF ACCOUNTS 4,278,759 NUMBER OF ACCOUNTS WITH A BALANCE

CUSTODY-SECURITIES (February 2014) Foreign Ownership: % 61.23 Free Float: 84 bil. US $ Non Free Float: 136 bil. US $ 1,115,151 INVESTORS 220 BILLION US $ STOCKS 36,594 INVESTORS 81 BILLION US $ GOVERNMENT DEBT SECURITIES 2,746,347 INVESTORS 13 BILLION US $ MUTUAL FUNDS 173,735 INVESTORS 16 BILLION US $ CORPORATE BONDS 3,676 INVESTORS 93 MILLION US $ EXCHANGE TRADED FUNDS 3,216 INVESTORS 4.07 MILLION US $ STRUCTURED PRODUCTS 2,717 INVESTORS 1.594 BILLION US $ OTHER SECURITIES

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 e-DATA : Capital Markets Data Bank Mobile Services SMS Electronic Reports (e-mail) Distribution of capital markets data by econometric models RISE (Investor Risk Appetite Index) Mobile Blockage Electronic Report Posting System 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 Real time notification of investors regarding the movements in their accounts Random Notifications Electronic Notification (SMS & e-mail) e-WAREHOUSE RECEIPT : Electronic Warehouse Receipt Center Random Report Delivery Conversion of agricultural products to electronic warehouse receipts Monthly 10,000 Investors Portfolio Status Instant Notifications Account Movements Information on Corporate Actions

Communication bridge between companies and shareholders Mobile Corporate Governance Project which 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

«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 Launched Oct. 2012 Load Tests Jul-Aug 2012 Pen. Tests Sept. 2012 Finished Jul 2012

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

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

MEETING ATTENDANCE (FOREIGN INVESTORS) STATISTICS (Oct’12-2013) Total Number of General Meetings Held on e-GEM 423 Average Length of General Meetings 43 minutes Total Number of Electronic Attendees 13,464 Total Number of Physical Attendees 6,196 Number of (Investors’) Nationalities Using e-GEM 41 Maximum Number of Electronic Attendance 756 Maximum Number of Meetings Held on the Same Day 32 Average Voting Period on e-GEM 10 seconds YEAR MEETING ATTENDANCE (FOREIGN INVESTORS) 2011 4,753 2012 6,036 2013 15,115 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

GENERAL INFORMATION & STATISTICS 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). GENERAL INFORMATION & STATISTICS Platform Operational Hours 7/24 Number of Data Vendors Linked to Platform 16 Number of Sub-Vendors Linked to Platform 17 Number of Companies Covered by the Platform 550 Number of Platform Users 2500 Number of PDP Members 1,453 Number of Notifications Sent in 2013 72,100

Activates whenever a transaction on their accounts is made 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.

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

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)

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;

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 23

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

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