TÜRKİYE SINAİ KALKINMA BANKASI A.Ş.

Investor Presentation • Aug 1, 2024

The Industrial Development Bank of Türkiye

Earnings Presentation

2Q-24 Bank-only Results

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Corporate Banking

Investment Banking

Advisory Services

Superior 2Q-24 Performance at a Glance

Outstanding Profitability 28% QoQ 39% YoY earnings growth	• Best-in-class ROE • FX Loan Spread • Core NIM expansion · Diversified fee income performance
Strong FX Funding	• New DFI agreements and syndication loan with %156 roll-over ratio • USD 1,1 bn Unwithdrawn DFI funding • FX LCR: 378% •~80% ESG-linked funding profile
Solid growth performance	• 1H24 fx adjusted loan growth reached 6.7%, • Sustainable development focus • Loan disbursements for 1H24 surpassed USD 1.1 bn
Outstanding solvency supporting growth	$\cdot$ CAR: 20.3% • Tier-I: 19.2% *Excluding BRSA's measures
Highly provisioned, intact asset quality	• Maintained coverage ratios: Stage-1 0.9%, Stage-2 33.6%, Stage-3 83.1% • Superior total coverage ratio in the sector: 5.9% • No free provision reversal

1H-24 Performance & YE-24 Guidance

Financial Guidance	1H-24 Figures	Previous YE24 Guidance Revised YE24 Guidance
(Bank Only)	%	%	%
Growth
FX Adjusted Loan Growth	6.7	High Single Digit	Low Teens 1
Profitability
Net Interest Margin	5.9	$~\sim 6$	٠
Fees & Commissions Growth	115	> avg. CPI	۰
Return On Equity	37.1	~40	$\equiv$
Efficiency
OPEX Growth	88	> avg. CPI	٠
Solvency*
Capital Adequacy Ratio	20.3	$^{\sim}18.0$	۰
Tier I Ratio	19.2	$^{\sim}$ 17.0	۰
Asset Quality
NPL Ratio	2.7	$3$	٠
Net Cost of Risk (excluding currency impact)	27 bps	$~100$ bps	$^{\sim}$ 50 bps $\downarrow$

*Excluding BRSA's measures

>>>>>>>>> Differentiating Continuous Profitability

ROE

• stands at 5.9%
• $\checkmark$ Stock of free provisions 1.75 bn TL

TSKB

>>> Income Statement Highlights

TL mn	$1H-23$	$1H-24$	YoY	$1Q-24$	2Q-24	QoQ	Continuous
Net Interest Income	3,932	5,302	35%	2,541	2,760	9%	Earnings Growth
Trading Income	1,638	685	$-58%$	459	226	$-51%$	(+39% yoy, $+28%$ qoq)
Net Fees & Commissions	137	294	115%	130	164	26%
Other Income (Inc. Dividend)	121	175	45%	60	114	90%
Banking Income	5,827	6,455	11%	3,190	3,265	2%
OPEX (-)	536	1,010	88%	505	505	0%	Strong and well- $\overline{ }$ diversified
Net Banking Income	5,291	5,445	3%	2,686	2.759	3%	commission Income
Provisions (-)	1,882	651	$-65%$	381	270	$-29%$
Income From Participations	730	1,037	42%	317	719	127%
Tax Provisions (-)	968	1,427	47%	688	739	7%
Net Profit	3,172	4,403	39%	1,934	2,469	28%

Based on MIS data

5

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 au

Supported by new engagements, funds secured in 2024 reach USD 1.1 billion

Funding / Total Liabilities (exc. Equity & Oth.)

Yearly Multilateral Funding Agreements - USD mn

Wholesale Funding in 2024

√AT-1 Eurobond | USD 300 million √Syndication | USD 190 million √PP & Other | USD 123 million VIBRD | USD 345 million √AFD & CDP | EUR 100 million

Resilient Asset Composition

2Q-24 Loans by Currency

SDG-Linked loans account for 91% of the portfolio

Substantially Supported SDGs through Loan Activities

8

Example 2 Leading position on provision coverage among industry

• ••

>>>> Sustainable and Resilient NIM

• $\checkmark$ Strong and resilient NII generation

• $\checkmark$ 9% qoq surge in NII inc. swap costs

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

• Maintained strong loan spread $(+)$
• $(+)$ QoQ 19% decrease in swap costs

>> Further strengthened solvency metrics support our real loan growth targets

Evolution of RWA and Equity - TL bn

Sustainable Banking Developments $\sum_{i=1}^{n}$

International

Sidfc Development
Finance Club IDFC Steering Group meeting hosted by TSKB in Istanbul

20 years in Türkiye Awards Women and Men Equality Promoter

First place in Emerging Markets Gender Equality Index

Reporting
Integrated Annual Report $(10-24)$
Climate Report $(1Q-24)$
UN Global Compact CoP $(2O-24)$
CDP Environmental
Disclosure
$(3O-24)$

Share in the loan portfolio

Financing

Targets

91% 60% SDG-linked loans Climate & Environment focused SDG-linked loans

$\sim$ 40% of the 10 billion USD target by 2030 since 2021

$\sim$ 10% of the 4 billion USD target by 2030 since 2024

Balance Sheet

TL mn		31.12.2023			31.03.2024			30.06.2024
	TL	FX	TOTAL	TL	FX	TOTAL	TL	FX	TOTAL
Cash and Banks	7,427	7,699	15,126	10,236	5,554	15,789	6,203	6,599	12,802
Securities	12,177	15,663	27,839	16,208	17,707	33,915	18,343	19,056	37,399
Loans (Gross)	11,299	118,839	130,137	11,051	133,311	144,362	11,816	139,373	151,189
Provisions	$-3,920$	$-4,308$	$-8,228$	$-4,178$	$-4,522$	$-8,700$	$-4,294$	$-4,599$	$-8,893$
Subsidiaries	6,616	753	7,370	6,906	813	7,719	8,320	832	9,151
Other	3,041	1,599	4,640	3,498	2,109	5,607	3,440	2,095	5,535
Total	36,640	140,244	176,884	43,721	154,972	198,693	43,828	163,357	207,185
ST Funds	$-$	5,913	5,913	$\overline{\phantom{a}}$	5,574	5,574	$\overline{\phantom{a}}$	6,146	6,146
LT Funds	$\sim$	100,763	100,763	$\overline{\phantom{a}}$	108,132	108,132	$\overline{\phantom{a}}$	104,716	104,716
Securities Issued	$\overline{\phantom{a}}$	32,227	32,227	-	36,296	36,296		37,464	37,464
Repo & MM	432	2,225	2,656	2,433	4,128	6,562	7,570	6,683	14,254
Other	3,485	4,385	7,870	4,213	4,986	9,200	3,785	4,222	8,006
Subordinated Debt Shareholders'	$\sim$	6,043	6,043	$\overline{\phantom{a}}$	9,686	9,686	$\overline{\phantom{a}}$	10,073	10,073
Equity	21,357	54	21,412	23,199	44	23,243	26,471	55	26,526
Total	25,274	151,610	176,884	29,845	168,847	198,693	37,826	169,359	207,185

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

TL mn	$1H-23$	$1H-24$	YoY	$1Q-24$	$2Q-24$	QoQ
Net Interest Income inc, Swap Cost	3,932	5,302	35%	2,541	2,760	9%
Net Interest Income	3,830	7,512	96%	3,764	3,747	0%
CPI Linkers	1,388	1,712	23%	837	874	4%
Swap Costs	102	$-2,210$	$-2267%$	$-1,223$	$-987$	$-19%$
Net Commissions	137	294	115%	130	164	26%
Other Income	121	175	45%	60	114	90%
Dividends	10	$\overline{2}$	$-84%$	$\Omega$	2	n.m.
Other	111	173	56%	60	113	87%
Trading & FX gains/losses	1,638	685	$-58%$	459	226	$-51%$
FX gains/losses	1,513	540	$-64%$	394	145	$-63%$
Trading & MtM gain/loss	125	145	16%	65	81	25%
Banking Income	5,827	6,455	11%	3,190	3,265	2%
OPEX (-)	536	1,010	88%	505	505	0%
Net Banking Income	5,291	5,445	3%	2,686	2,759	3%
$ECL$ $(-)$	1,882	651	$-65%$	381	270	$-29%$
Stage I	370	41	$-89%$	$-21$	62	$-393%$
Stage II	736	314	$-57%$	271	43	$-84%$
Stage III	$-8$	296	-3829%	131	165	26%
Other Provisions	785	$\overline{0}$	$-100%$	$\overline{0}$	$\overline{0}$	n.m.
Income From Subsidiaries	730	1,037	42%	317	719	127%
Pre-Tax Income	4,139	5,831	41%	2,622	3,208	22%
Tax $(-)$	968	1,427	47%	688	739	7%
Net Income	3,171	4,403	39%	1,934	2,469	28%

"n.m." is used for not meaningful,

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	45	41
Electricity/Gas Distribution	19	41
Electricity Generation	15	14
Non-residential Real Estate	8	29
Metal and Machinery	6	31
Telecom/Logistics	4	10 °
Automotive Supply Industry	3	20
	TOTAL 100	34

96% of Electricity Generation loans are Renewable

• Hard collateral & provisions are taken into consideration

• Renewable and non renewable percentages in electricity generation loans are as 96% and 4% respectively

Appendix: IEA Evolution

Interest Earning Assets

Growth strategy $\bullet$

Appendix: Net Cost of Risk Calculation

Provisions (TL mn)	2Q24
Stage 1*	41
Stage $2**$	314
Stage 3	296
Reversals*** (TL mn)	$-58$
Net CoR	84 bps
Currency Impact	57 bps
Net CoR excl. Currency Impact	27 bps

*Stage 1 provision costs are adjusted with TL 45.7 mn provisions set aside for securities. **Stage 1&2 provisions are shown netted off by Stage 1&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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