MKK - MERKEZI KAYIT KURULUSU

� 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

� 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

GENERAL INFORMATION

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1 Member

2 Members

1 Member

% 64.9

SHAREHOLDERS

BOARD STRUCTURE

MKK - SHAREHOLDERS & BOARD STRUCTURE

% 5% 30.1

3 Members

1 Member 1 Member

The Association of CapitalMarket IntermediaryInstitutions of Turkey

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� In-house developed product, e-signature usage� Web Based – Java Application – Remote Access� Secure messaging infrastructure MOM (Message-Oriented-Middleware)� ISO 27001 Information Security Certification

� Award of merit at the 7th Technology Conference by Turkey’s most respectedinstitutions;

� TUBITAK (Scientific and Technological Research Council of Turkey)� TTGV (Technology Development Foundation of Turkey)� TUSIAD (Turkish Industrialists’ and Businessmen’s Association)

DEMATERIALIZED SYSTEM SOFTWARE

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CENTRAL SECURITIES DEPOSITORYACCOUNT STRUCTURE

PARTICIPANT 1(INTERMEDIARY INST.)

Participant 1 Portfolio Investor 1

Free

Pledge

Attachment

....

(I)CSD Portfolio Acc.

(I)CSD Investor Acc.(Beneficial Owner)

Free

Pledge

Attachment

«Omnibus» Account

SUB-ACCOUNTS

ACCOUNTS

PARTICIPANTS

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MKK - Statistics «January 2014»

ForeignOwnership:

% 62.39

Free Float:90 bil. US $

Non Free Float:145 bil. US $

Market Valueof Securities

underSafekeeping

Number ofInvestors

------------------------Number of

Investors with aBalance

Number ofAccounts

---------------------------Number ofAccounts

with a Balance

e-CAS :Investor Notification

MKK - Investor Services

Random Report Delivery

IVR System/ Call Center

Mobile Blockage Electronic Report Posting System

� Instant Notifications� Account Movements� Information on

Corporate Actions

� Periodic Notification� Portfolio Status

� Account Movements

� Monthly 10,000 Investors� Portfolio Status

� Information� Portfolio Status� Account

Movements� Reports

� Investor Blockages

AloMKK(444 0 655)

MobileServices SMS

Electronic Reports(e-mail)

Electronic Notification(SMS & e-mail)

RandomNotifications

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e-GOVERNANCE :Corporate Governance & Investor Relations

e-GEM :Electronic General Meeting

e-DATA :Capital Markets Data Bank

Participation to General Assembly meetings by remote access &mobile applications - voting by electronic means

Distribution of capital markets data by econometric modelsRISE (Investor Risk Appetite Index)

Communication bridge between companies and shareholders

Real time notification of investors regarding the movements intheir accounts

� Real time notification of investors through SMS & e-mail on account movements againstpossible errors and fraudulent attempts on their securities.

� Activates whenever a transaction (i.e. sale, transfer, pledge, attachment) on their accountsis made.

� Reduces possible individual or systemic risks

� Notification Phase: Participation is optional. Notification is made after a transaction is completed.

� Blocking Phase: Participation is mandatory. Transaction is not completed unless the investorsubscribes to the e-CAS Service.

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e-CASInvestor Notification and Alert System

� e-GOVERNANCE was developed to enhance corporate governance and investor relationsin Turkish markets and develop transparency and information access for marketparticipants

� Issuers, investors and viewing members

� Continuous information exchange between shareholders and companies through internet,e-mail and mobile applications

� Enables companies to reach their shareholders directly (i.e. statistical info & shareholderbenefit schemes)

� Enables shareholders to access information (i.e. corporate documents, corporate actionsinfo) on companies easily and completely

� e-GOVERNANCE Portal serves to almost 30,000 investors and 5000 visitors with 350member issuers.

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e-GOVERNANCE:Corporate Governance and Investor Relations Portal

DevelopmentStartedNov 2011

LaunchedOct. 2012

Load TestsJul-Aug 2012

Pen. TestsSept. 2012

DevelopmentFinishedJul 2012

� «One of the pioneering applications in scope»

� Developed in-house, launched and operated by MKK (Central Securities Depository ofTurkey), e-GEM is a multilingual, real-time online general meeting, e-voting and e-proxyplatform.� 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 conductingonline 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 toenable 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.

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What Kind of Operations are Carried Out on e-GEM;

� Issuers make convocations on e-GEM andupload proxy materials to the system.

� All parties are notified when convocation ismade on e-GEM.

� Access to proxy materials includingmeeting documents.

� Proxy assignment and delivery of votinginstructions without any PoA documents.

� Pre-registration of the vote preferences.

� Live stream of general meetings.

� Issuers can easily prepare list of attendeeson e-GEM.

� Participants can ask questions, expressopinions and vote online during themeeting.

� Physical and electronic votes areaggregated on e-GEM and calculated bythe system to give the exact result for eachagenda item.

� Access to voting results as soon as themeeting finishes.

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� Minimum Costs(operations & time)

� General MeetingProcess from A to Z

� Vote Recording

� Attendance toConcurrent Meetings

� Access to ProxyMaterials

� Instant Notifications

� No Record Date

� Partial & Split Voting(through intermediary)

� No Shares Blockage

� Paperless Proxy

� Vote Instructions

� Live Stream of Meeting

What e-GEM Brings toInvestors;

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� MinimumOperational andOut of Pocket Costs

� Vote Recording

� Paperless Proxy

� Attendance toConcurrentMeetings

� Instant Reporting

� No Record Date

� No More Blockingof Shares

� Integration withSWIFT

� E-Attendance

What e-GEM Brings toCustodians;

� EU Shareholder Rights Directive,

� European Market Standards On General Meetings,

� Principles of Council of Institutional Investors for an Effective Proxy

Voting System,

In Compliance with International Rules and Regulations;

e-GEM:Electronic General Meeting

CompanyInformation

Corporate ActionsAnnouncements

PUBLICDISCLOSUREPLATFORM

MKKCOMPANY/ISSUER

CustodianA

CustodianA

ForeignCSD

ForeignCSD

ICSDICSD

Meeting Notice

Meeting Notice

ISO15022/20022

ISO15022/20022

ENDINVESTOR

ENDINVESTOR

Entitlement Date/RecordDate

Public Disclosure Platform (PDP): PDP is the primary official source ofinformation for Borsa Istanbul (listed) companies, who are required to publiclydisclose; their financial statements, any material events (events that give rise toInsider Information and Continuous Information), other events (Monthlynotifications, Net asset value statements, Articles of Association, Fund Charter,Prospectus, circular, Notifications regarding the mergers, acquisitions anddivestures, General information form of the company, Tender offer informationform).

MEETING NOTICE

Issuer e-GEM

Electronic Declaration of Attendance/ Proxy Assignment

GM Announcement

BEFORE GENERAL MEETING

GM Announcement Delivery

e-GEM:Electronic General Meeting

DURING GENERAL MEETING

General Meeting

Vote/Opinion

Audio andVisual

CommunicationList of

Attendants- Minutes

WrittenDocuments

e-Signature

Vote/Opinion

Vote

/Opi

nion

e-GEM:Electronic General Meeting

e-GEM:Electronic General Meeting

e-GEM MAIN SCREEN

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e-GEM:Electronic General Meeting

Number of general meetings held (since Oct’12) 385

Number of general meetings held (March 25) 92

Number of investors attended the general meetings 13.376

Agenda items were voted in 9 seconds

e-Attendance to single meeting over e-GEM 756

Concurrent Meetings Conducted on a Single Day (March 25) 32

Total hours of Live Broadcast 822 hrs

Investors Attend a Meeting From 41 different countries

e-GEM:Electronic General Meeting

«e-GEM» on International Media;

� 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 asecure, consistent and reliable manner

� Statistics on capital markets in international standards

� Academic articles and research reports

� Electronic securities database

� Contributing to academic research and decision-making processes of policy makers

� Providing reliable & consistent data to ratings institutions

� Investor Confidence Index, Investor Risk Appetite Index (RISE), Attachment Index and FinancialIndicators

e-DATA:Capital Markets Data Bank

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e-DATA:RISE-Investor Risk Appetite Index

� A weekly indicator, analyzing 840,000 investor data

� Calculated by taking weekly portfolio changes of the investors who own at least 5,000 TL stockportfolio value at any period beginning from 28 November 2005.

� Changes of the investors’ stock and A-type mutual funds total portfolio values on every Fridayadjusted for the changes in BIST-100 are used

� RISE index covers all investor types, indices are calculated for “Domestic Investors”, “ForeignInvestors”, “Domestic Individuals”, “Domestic Corporations”, “Domestic Funds”, and “QualifiedInvestors”

� Using a matrix of variations, investors are given scores between “0” and “1”

� If the calculated index is above (50), then it is forecasted that the investors are holding arather risky portfolio compared to previous period of 2 weeks;

� If the calculated index is below (50), then it is forecasted that the investors are holding arather risk-free portfolio compared to previous period of 2 weeks;

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� 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 warehousereceipts

� Safekeeping of electronic warehouse receipts in MKK’s electronic book-keeping system

� Trading of products at the Commodity Exchange

� Farmers Notification System

e-COMMODITY:Electronic Warehouse Receipt Center

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� The Turkish Commercial Code Article No. 1524 obliges joint stock companies, which areaudited entities, open a website and reserve a part of their website for publishing theannouncements obligatory by law.

� e-COMPANY: Companies Information Portal enables companies to;

� publish information and documents initially on the portal

� integrate those information and documents with company web sites

� provide required security levels, enable access from a single source and consistency

� establish data transmission to the Central Registry Number System (MERSIS)infrastructure

� All documents that companies are required to publish on their web sites are gathered in asingle center and presentation of data and information on all companies in Turkey onspecific criteria are provided in a safe manner.

� The deadline for companies started in October 2013 and the portal went live on that date.

e-COMPANY:Companies Informational Portal

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MKK’s Future Outlook

� Minimizing Core Business Revenues (Maximizing Industry Benefits)

� Maximizing Ancillary 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 Republicscounterparties to complete the post-trading chain from West to East

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