1. Selcuk Saldirak Chief Executive Officer CHALLENGES FOR THE FUTURE

2. 2 TRANSITION PRIVATIZATION RESTRUCTURING PORTFOLIO CLEAN-UP FOREIGN BANKS/COMPANIES ENTRY M&A INCREASE

3. 3 POSITIONING IN THE MARKET NEW MARKET DEVELOPMENT NEW PRODUCT DEVELOPMENT COMPETITION & EFFICIENCY CORPORATE DEVELOPMENT IN MARKET ECONOMY

4. 4 DEVELOP & CONTROL THE “QUALITY” BETTER “RISK CONTROL” - FINANCIAL RISKS - OPERATIONAL RISKS EFFICIENT “COST CONTROL” GROWING COMPETITION

5. 5 DOMESTIC & CROSS - BORDER M&A CORPORATE REORGANIZATION NEW SOURCES OF FINANCING DYNAMIC HEDGING OF THE FINANCIAL RISKS NEW EQUITY NEW INVESTORS NEW NEEDS

6. 6 EU/EMU CONVERGENCE BASEL II NEXT STEPS

7. 7 NEW “LOAN PROVISIONING” SYSTEM -FINANCIAL CRITERIA + DEBT SERVICE NOW VS ONLY DEBT SERVICE BEFORE “BASEL II” WILL BRING EVEN TIGHTER RULES… -BANKS WILL MAKE LOAN PROVISIONS… -100% FOR NON-RATED COMPANIES -150% FOR THE COMPANIES RATED LESS THAN “B-” RATING CEILING IS THE “COUNTRY RATING”. CHANGES IN BANKING SYSTEM

8. 8 HIGH PROVISION MEANS HIGH COST FOR THE BANKS THE BANKS IN THEIR RELATIONS WITH THE “WEAKLY RATED COMPANIES” WILL EITHER : - AVOID LENDING, OR - LEND AT MUCH HIGHER PRICES & COMPANIES ; - MAY NOT REACH TO THE NECESSARY FUNDS, OR - REACH ONLY TO VERY EXPENSIVE FUNDS AND DAMAGE: - THEIR COST STRUCTURE AND - COMPETITIVENESS POSSIBLE EFFECTS TO CORPORATES