TÜRKİYE SINAİ KALKINMA BANKASI A.Ş.

Investor Presentation • Oct 31, 2024

The Industrial Development Bank of Türkiye

Earnings Presentation

3Q-24 Bank-only Results

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Differentiating 3Q-24 Performance at a Glance

Continuous Earnings Growth, Steady NIM evolution	• Best-in-class ROE • Robust FX Loan Spread • Core NIM expansion · Diversified fee income performance
Strong FX Funding	• New DFI agreements and USD 350 mn Eurobond issue • USD 1,1 bn Unwithdrawn DFI funding • FX LCR: 369%
Solid growth performance	•9M24 fx adjusted loan growth reached 11.5%, • Sustainable development focus • USD 1.6 bn of cash loan disbursements for 9M24
Distinguished solvency supporting growth	$\cdot$ CAR: 20.2% • Tier-I: $19.0\%$ *Excluding BRSA's measures
Highly provisioned, intact asset quality	• Sustained coverage ratios for Stage-2 loans at 34.5% and Stage-3 loans at 84% • Superior total coverage ratio in the sector: 5.2%, Net CoR: -39 bps •TL100 mn free provision reversal • TL1.65 bn of free provision stock to be supportive going forward

3Q-24 Performance & YE-24 Guidance

Financial Guidance	9M24 Figures	Previous YE24 Guidance Revised YE24 Guidance
(Bank Only)	%	%	%
Growth
FX Adjusted Loan Growth	11.5	Low Teens	۰
Profitability
Net Interest Margin	6.1	$~\sim 6$	۰
Fees & Commissions Growth	44	> avg. CPI	۰
Return On Equity	37.4	~40
Efficiency
OPEX Growth	84	> avg. CPI	٠
Solvency*
Capital Adequacy Ratio	20.2	$^{\sim}18.0$	$^{\sim}20.0$ 4
Tier I Ratio	19.0	$^{\sim}$ 17.0	$^{\sim}19.0$ 1
Asset Quality
NPL Ratio	2.2	$3$	$\equiv$
Net Cost of Risk (excluding currency impact)	$-39$ bps	$\approx$ 50 bps	$<$ 50 bps $\bigoplus$

*Excluding BRSA's measures

>>>>>>>>> Distinguished and Robust Profitability

ROE

Strong coverage and free provision reserves to support profitability

• $\checkmark$ Total coverage ratio stands at 5.2%
• $\checkmark$ Stock of free provisions 1.65 bn TL

TSKB

Remarkable earnings with strong solvency and liquidity

TL mn	9M-23	9M-24	YoY	2Q-24	3Q-24	QoQ
Net Interest Income	6,518	8,500	30%	2,760	3,198	16%
Trading Income	1,893	879	$-54%$	226	195	$-14%$
Net Commissions	287	413	44%	164	119	$-28%$
Other Income (Inc. Dividend)	124	551	345%	114	376	229%
Banking Income	8,822	10,343	17%	3,265	3,888	19%
$OPEX (-)$	847	1,563	84%	505	552	9%
Net Banking Income	7,975	8,780	10%	2,759	3,336	21%
Provisions (-)	2,258	601	$-73%$	270	$-50$	N.M.
Income From Participations	1,077	1,263	17%	719	226	$-69%$
Tax Provisions (-)	1,766	2,406	36%	739	979	32%
Net Profit	5,028	7,036	40%	2,469	2,633	7%

Based on MIS data

Interest expense of long and short term swaps, valuations of hedge positions for Eurobonds issued and exchange differences arising from rediscounts are adjusted under NII ×

Provisions include Expected Credit Losses in the audited P&L excluding impairment expenses of marketable securities

exposure

✓ ✓ ✓ ✓

✓

✓

✓

Resilient Asset Composition

Real loan growth reached 11.5% in 9M24

Climate and Environment focused SDG-linked Loans account for ~60% of the portfolio.

Substantially Supported SDGs through Loan Activities

8

Evaling position on provision coverage was sustained

* Hard collateral & provisions are taken into consideration

Proactive and strategic asset liability management

Total Securities Portfolio Breakdown

Oct.-Oct. CPI assumption is 44.9 percent.

TSKB

TL Securities Portfolio Breakdown*

Fixed

28%

CPI

53%

Float

19%

$3Q-24$

48,4%

45,0%

$3Q-24$

1.5 years

3.9 years

1.6 years

72%

Floating

$10$

$\sum_{i=1}^{n}$

Solid and Resilient NIM

• $\checkmark$ Strong and resilient NII generation
• $\checkmark$ Solid loan volume
• $\checkmark$ Proactive investment strategy

• 16% gog surge in NII inc. swap costs $\checkmark$

• $\checkmark$ NIM evolution is in line with 2024YE expectations

• $(+)$ Maintained strong loan spread
• Investment in high yielded securities started to pay-off $(+)$
• $(+)$ QoQ 57% decrease in swap costs, with reduction in swap portfolio

Sustained and above sector solvency metrics despite strong real loan growth

Evolution of RWA and Equity-TL bn

TSKB

Sustainable Banking Developments

Stakeholder Workshop Financial, Impact - Double and Dynamic Materiality Analysis External and Internal Stakeholders Positive and Negative Impacts Risks and Opportunities

Pathways to Paris 2024 CO European Bank Transition to a low-carbon and climate-resilient future

6-month training with Turkish Fls and experts

CDP Disclosure Successfully submitted in October Dependencies, Impacts, Risks and Opportunities Climate Change Water Forest Biodiversity

Disclosing data, driving action. TYCDP DISCLOSER CORPORATE

COP29 Baku Azerbaijan

In Solidarity for a Green World

Enhance Ambition & Enable Action Expect Türkiye's long-term climate strategy to be announced We will actively participate in the COP29

TSKB Sustainable Finance Frameworl July 2024

Sustainable Finance Framework Second Party Opinion by Sustainalytics Green, Social and Sustainable

Investments Transition Finance

31.03.2023 TL mn				30.06.2024		30.09.2024
	TL	FX	TOTAL	TL	FX	TOTAL	TL	FX	TOTAL
Cash and Banks	10,236	5,554	15,789	6,203	6,599	12,802	2,179	5,977	8,156
Securities	16,208	17,707	33,915	18,343	19,056	37,399	21,092	19,137	40,230
Loans (Gross)	11,051	133,311	144,362	11,816	139,373	151,189	10,971	155,937	166,908
Provisions	$-4,178$	$-4,522$	$-8,700$	$-4,294$	$-4,599$	$-8,893$	$-3,468$	$-5,186$	$-8,654$
Subsidiaries	6,906	813	7,719	8,320	832	9,151	8,417	919	9,336
Other	3,498	2,109	5,607	3,440	2,095	5,535	3,579	1,410	4,990
Total	43,721	154,972	198,693	43,828	163,357	207,185	42,770	178,194	220,964
ST Funds	$\overline{\phantom{a}}$	5,574	5,574	$\sim$	6,146	6,146	$\overline{\phantom{a}}$	9,058	9,058
LT Funds	$\sim$	108,132	108,132	$\overline{\phantom{a}}$	104,716	104,716	$\overline{\phantom{a}}$	113,177	113,177
Securities Issued		36,296	36,296		37,464	37,464	$\overline{\phantom{0}}$	40,045	40,045
Repo & MM	2,433	4,128	6,562	7,570	6,683	14,254	4,711	6,843	11,554
Other	4,213	4,986	9,200	3,785	4,222	8,006	3,645	4,054	7,699
Subordinated Debt		9,686	9,686		10,073	10,073		10,214	10,214
Shareholders' Equity	23,199	44	23,243	26,471	55	26,526	28,959	257	29,217
Total	29,845	168,847	198,693	37,826	169,359	207,185	37,315	183,649	220,964

>>>>>>>>>> Detailed Income Statement

TL mn	9M-23	9M-24	Yoy	$2Q-24$	3Q-24	QoQ
Net Interest Income inc. Swap Cost	6,518	8,500	30%	2,760	3,198	16%
Net Interest Income	6,482	11,135	72%	3,747	3,623	$-3%$
CPI Linkers	2,515	2,882	15%	874	1,171	34%
Swap Costs	36	$-2,635$	n.m.	$-987$	$-425$	$-57%$
Net Fees & Commissions	287	413	44%	164	119	$-28%$
Other Income	124	551	345%	114	377	229%
Dividends	10	7	$-34%$	$\overline{2}$	5	231%
Other	114	544	379%	113	371	229%
Trading & FX gains/losses	1,893	879	$-54%$	226	195	$-14%$
FX gains/losses	1,677	668	$-60%$	145	129	$-11%$
Trading & MtM gain/loss	216	211	$-2%$	81	66	$-18%$
Banking Income	8,822	10,343	17%	3,265	3,888	19%
OPEX (-)	847	1,563	84%	506	553	9%
Net Banking Income	7,975	8,780	10%	2,759	3,335	21%
$ECL$ $(-)$	2,258	601	$-73%$	270	$-50$	$-118%$
Stage I	282	$-268$	$-195%$	62	$-309$	$-597%$
Stage II	987	598	$-39%$	43	284	555%
Stage III	$-2$	271	n.m.	165	$-25$	$-115%$
Other Provisions	992		n.m.			n.m.
Income From Subsidiaries	1,077	1,263	17%	719	226	$-69%$
Pre-Tax Income	6,794	9,442	39%	3,208	3,612	13%
Tax $(-)$	1,766	2,406	36%	739	979	32%
Net Income	5,028	7,036	40%	2,469	2,633	7%

16

Appendix: ESG Ratings

SUSTAINALYTICS

Sustainalytics ESG Risk Rating

$0 - 40 +$

6.9

Range

Score

Negligible risk category

First place in Türkiye

9^th place among global development banks

HCDP

CDP Climate Change Score $A/D A -$ Leadership

Moody's

Moody's ESG Credit Impact Score $1 - 5$ $\overline{2}$ Neutral-to-low

FitchRatings Fitch ESG Credit Relevance Score $1 - 5$ $\overline{\mathbf{3}}$

Neutral-to-minimal

Sustainable Fitch ESG Entity Score $1-5(0-100)$

$3(61/100)$

Above global average

$\begin{array}{|l|} \hline \textbf{Sustainable}\ \hline \textbf{Fitch} \end{array}$

$A+/D-$

BIST Sustainability Index BIST Sustainability 25 Index

LSEG

ESG Score

$\mathbf{A}$

Appendix: Stage 2 Loans Breakdown

Stage 2 Loans
Sector	%	Coverage (%)
Tourism	49	41
Electricity/Gas Distribution	18	42
Electricity Generation	12	13
Non-residential Real Estate	8	29
Metal and Machinery	6	32
Telecom/Logistics	4	9
Automotive Supply Industry	3	20
TOTAL	100	34

• Hard collateral & provisions are taken into consideration

• Renewable and non renewable percentages in electricity generation loans are as 94% and 6% respectively

Appendix: IEA Evolution

• √ Interest Earning Assets were up by 7% QoQ and 32% YoY, which was driven by • High FX denomination
• Growth strategy $\bullet$

Appendix: Net Cost of Risk Calculation

Provisions (TL mn)	9M24
Stage 1*	$-268$
Stage 2**	598
Stage 3	271
Reversals*** (TL mn)	$-280$
Net CoR	29 bps
Currency Impact	67 bps
Net CoR excl. Currency Impact	$-39$ bps

*Stage 1 provision costs are adjusted with TL 42.7 mn provisions set aside for securities.
**Stage 1&2 provisions are shown netted off by Stage1&2 reversals. ***Reversals depicted in the table are attributable to Stage 3 Loans.

This presentation document is prepared for informational purposes only and contains certain forward-looking comments, opinions, and forecasts. These reflect the views of Türkiye Sınai Kalkınma Bankası A.Ş. ("TSKB") as of the date of this presentation and contain certain assumptions. Although the information and data used in this presentation have been obtained from sources believed to be reliable, TSKB does not guarantee their accuracy, completeness, or truthfulness and does not make any representation or warranties in this respect. The realization of the comments, opinions, and estimates in the presentation may differ according to any changes that may occur in the data, variables, or assumptions that constitute them. Therefore, TSKB may change its opinions and estimates without prior notice. However, under no circumstances can this be considered as a commitment by TSKB to update its comments, opinions, and forecasts under any circumstances. The comments, opinions, and forecasts contained herein should not be interpreted as a recommendation to buy or sell of any capital market instrument or as a promise of return. TSKB expressly declares that it does not assume any responsibility for the results of investment decisions taken on the basis of this document and for any direct or indirect losses that may arise. The presentation document may not be copied or distributed by third parties other than those to whom a copy has been delivered by TSKB.

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