TÜRKİYE SINAİ KALKINMA BANKASI A.Ş.

Investor Presentation • Feb 4, 2025

The Industrial Development Bank of Türkiye

Earnings Presentation

4Q-24 Bank-only Results

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Corporate Banking

Investment Banking

Advisory Services

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Financial Guidance	YE24 Figures	YE24 Guidance
(Bank Only)	%	%
Growth
FX Adjusted Loan Growth	11.6	Low Teens
Profitability
Net Interest Margin	6.3	$~\sim 6$
Fees & Commissions Growth	13	> avg. CPI
Return On Equity	38.5	~40
Efficiency
OPEX Growth	88	> avg. CPI
Solvency*
Capital Adequacy Ratio	21.8	$^{\sim}20.0$
Tier I Ratio	20.6	$^{\sim}$ 19.0
Asset Quality
NPL Ratio	2.2	$3$
Net Cost of Risk (excluding currency impact)	$-60$ bps	$50$ bps
*Excluding BRSA's measures

>> TSKB's Differentiating Performance Highlights Among the Sector

Continuous Earnings Growth given the Bank's solid and resilient core NII generation

$c.12%$ Solid loan growth performance with more than 1.8 bn USD LT cash loan disbursements

Record high FX funding surpassing 1.7 bn USD with the diversification focus

• 300 mln USD AT-1 Issuance $\blacksquare$
• 350 mln USD senior Eurobond ×
• 6 DFI Loan agreements w/2 new comers

Further improved & intact asset quality Supportive, above sector provision reserves

Distinguished and comfortable solvency buffers supporting our growth strategy

Superior QoQ and YoY Earnings Performance

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Remarkable Earnings Performance with Strong Solvency and Liquidity

TL mn	$12M-23$	12M-24	YoY	3Q-24	$4Q-24$	QoQ
Net Interest Income	9,564	11,968	25%	3,198	3,469	8%
Trading Income	2,371	1,143	$-52%$	195	264	35%
Net Commissions	453	514	13%	119	101	$-15%$
Other Income (Inc. Dividend)	249	895	259%	376	344	$-9\%$
Banking Income	12,638	14,520	15%	3,888	4,178	7%
OPEX (-)	1,189	2,238	88%	552	675	22%
Net Banking Income	11,449	12,282	7%	3,336	3,502	5%
Provisions (-)	4,043	884	$-78%$	$-50$	283	n.m.
Income From Participations	1,886	2,280	21%	226	1,017	350%
Tax Provisions (-)	2,251	3,544	57%	979	1,138	16%
Net Profit	7,041	10,135	44%	2,633	3,099	18%

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

TSKB secured record high FX funding in 2024 which surpassed USD 1.7 billion

* USD 300 million AT-I Eurobond has a call option in 2029.

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

6

Yearly Multilateral Funding Agreements - USD mn

Maturity Profile of External Debt - USD mn

TSKR

• ••••
• •

Leading position on coverage was further boosted by extra free provisions.

$\circ$ * Hard collateral & provisions are taken into consideration

Proactive and Strategic Asset Liability Management

TL Securities Portfolio Breakdown*

Total Securities Portfolio Breakdown

For 2024 Oct.-Oct. CPI assumption was 44.9% For 2025 Oct-Oct. CPI assumption is 25.2%

$\rightarrow$

TSKB

• ✓ ✓
• ✓
• ✓
• ✓

Sustained and above sector solvency metrics despite strong real loan growth

Capital Ratios Without BRSA Temporary Measures

TSKB

Reported Figures - CAR: 26.9% | Tier I: 25.7% | CET-I: 19.3%

CAR Evolution

2024 Sustainability Snapshots

$Q1-24$

January Announcement of coal phaseout plan by the end of 2035

February Establishment of Climate Change and Sustainability Management Department

March Publishment of the 2^nd Climate Report

June TSKB Development Day

May #1 for gender equality in 2024 by Equileap

April UNGC Communication on Progress (CoP)

$Q2-24$

$Q3-24$

July IDFC Steering Committee Meeting in Istanbul

August Publishment of Updated Sustainable Finance Framework

September TSKB Stakeholder Workshop

Listed in Global 100 Most Sustainable Corporations in the World by Corporate Knights

December 12^th Sustainability Workshop

November Participation to the COP29 in Bakü

October CDP Disclosure

Q4-24

YE-25 Guidance: Continuation of Real Loan Growth, Maintaining Resillient Core Margin & Strong Profitability >Performance

*Excluding BRSA's measures

Balance Sheet

TL mn		31.12.2023				30.09.2024		31.12.2024
	TL	FX	TOTAL	TL	FX	TOTAL	TL	FX	TOTAL
Cash and Banks	7,427	7,699	15,126	2,179	5,977	8,156	1,928	10,553	12,480
Securities	12,177	15,663	27,839	21,092	19,137	40,230	22,207	19,275	41,483
Loans (Gross)	11,299	118,839	130,137	10,971	155,937	166,908	13,888	152,529	166,418
Provisions	$-3,920$	4,308 $\sim$ $-$	8,228 $\sim$	$-3,468$	$-5,186$	$-8,654$	$-3,534$	$-4,513$	$-8,047$
Subsidiaries	6,616	753	7,370	8,417	919	9,336	9,619	892	10,511
Other	3,041	1,599	4,640	3,579	1,410	4,990	5,933	2,484	8,417
Total	36,640	140,244	176,884	42,770	178,194	220,964	50,041	181,219	231,260
ST Funds	$\overline{\phantom{a}}$	5,913	5,913	$\sim$	9,058	9,058		9,040	9,040
LT Funds	$\overline{\phantom{a}}$	100,763	100,763	$\sim$	113,177	113,177	$\overline{\phantom{a}}$	114,224	114,224
Securities Issued	$\overline{\phantom{a}}$	32,227	32,227		40,045	40,045		51,562	51,562
Repo & MM	432	2,225	2,656	4,711	6,843	11,554	1,980	2,037	4,017
Other	3,485	4,385	7,870	3,645	4,054	7,699	3,667	5,470	9,138
Subordinated Debt	$\sim$	6,043	6,043	$\sim$	10,214	10,214		10,801	10,801
Shareholders' Equity	21,357	54	21,412	28,959	257	29,217	32,282	197	32,479
Total	25,274	151,610	176,884	37,315	183,649	220,964	37,929	193,331	231,260

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

TL mn	12M-23	12M-24	Yoy	3Q-24	4Q-24	QoQ
Net Interest Income inc. Swap Cost	9,564	11,968	25%	3,198	3,469	8%
Net Interest Income	10,239	15,136	48%	3,623	4,002	10%
CPI Linkers	3,457	4,248	23%	1,171	1,365	17%
Swap Costs	$-675$	$-3,168$	369%	$-425$	$-533$	26%
Net Fees & Commissions	453	514	13%	119	101	$-15%$
Other Income	249	895	259%	377	344	$-9%$
Dividends	13		$-47%$	5	$\overline{0}$	$-100%$
Other	236	888	276%	371	344	$-7%$
Trading & FX gains/losses	2,371	1,143	$-52%$	195	264	36%
FX gains/losses	2,139	808	$-62%$	129	140	9%
Trading & MtM gain/loss	232	335	44%	66	124	89%
Banking Income	12,638	14,520	15%	3,888	4,178	7%
OPEX (-)	1,189	2,238	88%	553	675	22%
Net Banking Income	11,449	12,282	7%	3,335	3,502	5%
$ECL$ $(-)$	4,043	884	$-78%$	$-50$	283	n.m.
Stage I	478	$-174$	$-136%$	$-309$	94	$-130%$
Stage II	1,323	357	$-73%$	284	$-241$	$-185%$
Stage III	1,144	370	$-68%$	$-25$	99	$-493%$
Other Provisions	1,097	330	$-70%$	$\mathcal{O}$	330	n.m.
Income From Subsidiaries	1,886	2,280	21%	226	1,017	350%
Pre-Tax Income	9,292	13,679	47%	3,612	4,237	17%
Tax $(-)$	2,251	3,544	57%	979	1,138	16%
Net Income	7,042	10,135	44%	2,633	3,099	18%

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Appendix: ESG Ratings

Sustainalytics ESG Risk Rating

$0 - 40 +$

$7.4$

Range

Score

Negligible risk category

First place in Türkiye

13^th place among global development banks

N-CDP

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 $1 - 5$ $\overline{\mathbf{3}}$

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

Neutral-to-minimal

$1-5(0-100)$ $3(62/100)$

Above global average

LSEG

ESG Score

$A+/D-$

$\mathbf{A}$

LSEG DATA &

BIST Sustainability Index

Appendix: Stage 2 Loans Breakdown

Stage 2 Loans
Sector	%	Coverage (%)
Tourism	27	20
Electricity/Gas Distribution	17	49
Electricity Generation	15	34
Non-residential Real Estate	9	30
Metal and Machinery	7	32
Telecom/Logistics	$\overline{4}$	9
Automotive Supply Industry	3	30
Health		50
Other	17	50
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 3% QoQ and 29% YoY, which was driven by • High FX denomination Growth strategy $\bullet$

Appendix: Net Cost of Risk Calculation

Provisions (TL mn)	12M24
Stage 1*	$-174$
Stage 2**	357
Stage 3	370
Reversals*** (TL mn)	$-308$
Net CoR	17 bps
Currency Impact	77 bps
Net CoR excl. Currency Impact	$-60$ bps

*Stage 1 provision costs are adjusted with TL 7.5 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.

TSKB Financial Institutions & Investor Relations

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