IS INVESTMENT - PowerPoint PPT Presentation

Loading...

PPT – IS INVESTMENT PowerPoint presentation | free to download - id: 734a41-NDdjN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

IS INVESTMENT

Description:

INVESTMENT Investment is the investment arm of Bank and the leading investment banking institution in Turkey. Investment stands out as the ... – PowerPoint PPT presentation

Number of Views:29
Avg rating:3.0/5.0
Slides: 25
Provided by: BILGI6
Learn more at: http://www.isinvestment.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: IS INVESTMENT


1
IS INVESTMENT Financial Results Performance for
the First Half of 2007
2
IS INVESTMENT
  • Is Investment is the investment arm of
    Is Bank and the leading investment banking
    institution in Turkey. Is Investment stands out
    as the only listed brokerage house in the country
    offering variety of services, such as
  • Brokerage (Trading securities including domestic
    and international equities, fixed income and
    derivatives)
  • Investment Advisory
  • Asset Management
  • Corporate Finance (Public offerings, MAs and
    strategic consultancy)
  • Research

3
Best Equity House in Turkey
.
Is Investment rewarded as the Best Equity House
in Turkey within the frame of Euromoney 2007
Awards for Excellence
4

Overview of Turkish Capital Markets - 1
EQUITY MARKET (TRY)

TURKISH DERIVATIVE EXCHANGE (TRY)
380,5 bn
344,5 bn
70,2 bn
12,2 bn
2006/1H
2007/1H
2006/1H
2007/1H
  • Falling short of expectations, equity market
    remained relatively weaker in 2007/1H compared to
    its
  • performance attained in the first half of
    2006. The evolving derivative market also
    cannibalized
  • some part of trading volume from the equity
    market.
  • In the process, the derivative market displayed
    an outstanding performance, beating almost all
  • estimates with 475 annual surge in 2007/IH.
    The actual trading volumes reached in this market
    in
  • the first half of 2007 has surpassed our
    year-end target.





5
Overview of Turkish Capital Markets - 2
BILLS BONDS MARKET (TRY)
  • High volatility and uncertainties in the markets
  • lead to a visible drop in the trading volume
    in the
  • Bills and Bonds Market


420 bn
401 bn
2006/1H
2007/1H
PENSION FUNDS PORTFOLIO SIZE (USD)
  • Pension funds will become the main driving
  • force of the fund management business. The
  • portfolio size of pension funds reached USD
  • 2.900 mn as of IH/07 from USD 2.048 mn at the
  • end of 2006 in the market, growing 41 with
  • respect to 2006. Note that the AUM from the
  • pension fund business was merely US38 mn
  • back in 2003.

2.900 mn
2.048 mn
913 mn
2005
08/10/2007
2006
6
Market Share in Equity Market
EQUITY MARKET IS INVESTMENT (TRY)
Improving and solidifying our leadership position
6,37
6,27
21,9 bn
23,8 bn
2006/1H
2007/1H
  • We strengthened our leadership position in the
    first half of 2007, increasing our market share
    to 6,37 from 6,27 compared to the same period
    of 2006 while our trading volume decreased to TRY
    21.9 bn from TRY 23.8 bn parallel to the
    contraction in overall market.
  • The results we achieved in the first half is in
    line with our targets.

7
Market Share in Bills Bonds Market
BILLS BONDS MARKET IS INVESTMENT (TRY)
Holding one of the first two seats for more
than 16 consecutive quarters.
13,8
12,8
13,1 bn
8,1 bn
2006/1H
2007/1H
  • Our market share declined to 12,8 from 13,8
    while our trading volume decreased to TRY 8,1 bn
  • from TRY 13,1 bn thanks to the sheer
    contraction in overall market.
  • Meanwhile, we have been maintaining our leading
    positions among the brokerage houses in the
  • market for more than 4 years.

8
Market Share in Derivative Market
New derivative instruments are in the
pipeline
DERIVATIVE MARKET IS INVESTMENT
17
TRY 12 bn
29
TRY 3,6 bn
2007/1H
2006/1H
  • Our derivative trading volume surged to TRY 12
    bn with over 252 rise over the same period of
    2006.
  • Our market share retreated to 17 as many
    players joined to the market . Still, our
    leadership is
  • uncontested.
  • Our first half trading volume in the derivatives
    market is quite close to the target figure (TRY
    14 bn.)
  • we had set for the full year.
  • Our trading volume will continue to elevate as
    more new instruments will start trading in the
    market
  • is Investment, as pioneer of the new
    products, will bolster its leadership via those
    products.
  • Our client base in derivative products is
    getting wider in each quarter (foreign
    domestic).

9
Trading Volume in International Capital Markets
TRADING VOLUME IN INTERNATIONAL CAPITAL MARKETS
(USD Million)
3.088
893
2007/1H
2006/1H
  • Our trading volume in international capital
    markets reached USD 3 bn , surging by 246 with
  • respect to the same period of 2006.
  • The share of international derivatives is getting
    larger portion of the overall volume.
  • The new instruments will likely give breadth and
    depth to our increasing volumes in this market.

10
Asset Management
ASSET UNDER MANAGEMENT - PORTFOLIO SIZE
  • We experienced a notable recovery in mutual
  • fund business in IH/2007 following the major
  • shake out in 2006, which had resulted in
  • major redemptions from the mutual funds.
  • Pension funds surged by 32 on YTD basis in
  • IH/07.

(TRY Million)
6.484
7.043
5.734
5.247
  • 50 of Is Asset Management shares were
  • purchased from Is Bank at the pre-determined
    price
  • (TRY 30,5 mn). Now, Is Investment has 70
    direct
  • stake in Is Asset Management.
  • Is Asset Management -as 70 affiliate- will be
  • consolidated to Is Investments results
    starting
  • from Q3/2007. Is Investments IH/07 results
  • includes merely 20 consolidation of Is Asset
  • Management.

2007/1H
2005
2006/1H
2006
PENSION FUND PORTFOLIO SIZE
(TRY Million)
682

516
306
173
2005
2006/1H
2006
2007/1H
11
ISDJE Exchange Traded Fund (ETF)
www.isbyf.com
  • Is Yatirim Dow Jones Turkey Equal Weighted 15
    A Type Exchange Traded Fund - founded
  • by Is Investment- was listed at Istanbul
    Stock Exchange on 25th May, 2007 with code of
  • ISDJE.

12
Corporate Finance (Public Offerings MAs)
The largest privatization offering in the ISE
HALKBANK
PUBLIC OFFERING SIZE
(USD Million)
640
  • We performed the largest privatization
  • offering in the Turkish capital markets with
  • Halkbank.
  • We became the only listed brokerage house
  • at the ISE.
  • We executed USD 90,4 mn amounted 2
  • MAs while it was USD 34,9 mn in the
  • same period of 2006.
  • Our corporate finance revenues
  • quadruppled to TRY 3.671 mn in QII, jumping
  • 473,6 compared to 1Q/2007 figure.

1.911

708
2006/1H
2007/1H
MAs (USD Million)
90,4
34,9
2006/1H
2007/1H
13
Subsidiaries
Title of Corporation Share in Capital () Q1/2007 Share in Capital () Q2/2007
Maxis Securities 100 100
Camis Securities 99,79 99,79
Is Investment Trust 23,60 23,60
Is Private Equity 20,08 20,08
Is Asset Management 20 70
Turkish Derivatives Exchange 6 6
Growing Enterprise Market Automatic Quotation (GEMAQ) 5 5
Is REIT 1,37 1,37
Yatirim Finansman Securities 0,55 0,55

14
Income Statement
Is Investment
2006/1H 2007/1H
YoY ? TRY (000)
Operating Income Interest and trading income
1.812 35.567
1,862
Commission
revenues 21.353
22.744
6 Income from corporate finance 6.120
3.672
-40 Other
income 5.402
2.820
-47 Total Operating Revenues 34.687
64.803
86
Operating Expense -19.028
- 26.900
41 Net Operating Profit
15.659
37.903

142 Other Expenses
-5.454 -2.464
-54
Financial Expenses
-6.291 -
3.126
- 50 Minority Expense
8.360 - 18.157

n.m. EBT 12.274
14.156
15,3 Tax
-1.899 - 2.659
40
Net Profit
10.375 11.497
11

15
Operating Revenues
TRY (000)
2.819
35.567
5.402
2007/1H
22.744
2006/1H
3.671
21.353
6.120
23.112
21.353
6.120
5.402
3.672
2.820
1.812
33.493
Interest and Trading
Commissions
Corporate Finance
Other
  • Is Investments total revenues amounted to TRY
    64.803 mn in 2007/1H, up by 86 on YoY basis.
  • Interest and trading revenues displayed a sharp
    growth, increasing to TRY 35.567 mn from TRY
  • 1.812 mn. The dismal 2006/IH results could be
    attributed to the low credit volumes and the
  • negative impact of the turmoil.
  • Commission revenues reached TRY 22.744 mn,
    surging by 173 over QI/07 figure, the
  • commissions had totaled TRY 21.353 in the
    first half of 2006.
  • Other revenues amounted to TRY 2.819 mn down
    from TRY 5.402 mn due to the mainly decline in
  • marked to market value of Is Private Equity.

16
Brokerage Trading Commissions (YoY)
(TRY Million)
2007/1H
2006/1H
17,2
15,1
1
4,8
3,2
2,9
0,7
Brokerage
Other
Asset Management
5.064
2.910
3.291
  • Brokerage commissions jumped to TRY 17.2 mn,
    recording roughly 1.5 x rise in QII over its QI
  • performance. YoY increase is 14.
  • Commissions on derivatives rocketed by
    five-folds on YoY basis in 2007/1H, reaching TRY
    3.153
  • mn vs TRY 619K in 2006/1H.
  • Fees on asset management rose to TRY 4.8 mn due
    to the effect of Is Asset Management
  • consolidation.This account will likely post
    better results as 70 of Is Asset Management will
    be
  • consolidated

1.014
17
Brokerage Trading Commissions (QoQ)
(TRY Million)
(TRY Million)
BROKERAGE
ASSET MANAGEMENT
17.2
4,8
7.5
0,57
2007/1Q
2007/2Q
2007/2Q
2007/1Q
(TRY Million)
OTHER
0.7
0.25
2007/1Q
2007/2Q
18
Margin Trading
INTEREST ON LOANS EXTENDED TO CLIENTS (TRY 000)
OUTSTANDING LOANS (TRY Million)
YoY Growth 149
69.8
6.454
54.7
49.3
35.2
31.5
2.586
21
2.586
2006/1H
2007/1H
3Q/06
2006
1Q/07
1Q/06
2Q/06
2Q/07
  • Interest income on margin accounts recorded 149
    YoY growth, reaching TRY 6.5 mn in the first
  • half of the year, surging by TRY 3.9 mn with
    respect to the same period of 2006.
  • Loans to clients reached TRY 69,8 mn as of
    2007/1H, surging by 231 with respect to the same
  • period of 2006.

19
Operating Expenses
TRY (000)
2006/1H 2007/1H
YoY ?
Employee Costs 8.998 12.782
42 Severance 96
133 39 Depreciation 617 609
-1,3 Goodwill
-163 -728
347 Consultancy 778 337
-57 Operating
Costs 3.744 7.040
88
Sundry Taxes 330 277
-16 Advertisement 698
298 -57 Marketing
and Dist. 615 2.193
257 Other 3.315 3.959
19 Total
19.028
26.900 41
  • Operating costs recorded 41 rise on YoY basis.
  • The cost structure includes several one-off
    expenses such as IPO expenditures.
  • Foreign marketable security transaction shares
    and other marketing, selling and distribution
  • expenses also emerged as important cost
    components of operating expenses in the first
    half.
  • A rise in employee expenses was observed in
    2007/1H as indicated in 1Q/2007.

20
Private Equity
Developing Private Equity Business
Is Private Equity H1/2007 Results
  • Private equity activities have increased
    considerably over the last two years in Turkey.
  • Completed exits of Is Private Equity are
    Cinemars, 30.25 annual yield in USD terms and
    Tuyap, 45.75 annual yield in USD terms.
  • Is Private Equitys most recent investment in
    July was in Ode Insulation, a building materials
    company. The equity investment was 5 mn for a
    17.24 stake.
  • New projects are in the pipeline to be finalized
    in the second half of the year.
  • Is Private Equity announced a net income of 0.7
    mn in H1/2007.
  • Revenues of 12.6 mn in H1/2007 include mostly
    the sales proceeds from the Tuyap exit in
    February 2007 (at a price of 10.8 mn). The
    remaining revenue comes from Nevotek (a leading
    IP telephony application software developer), the
    only company Is Private Equity currently fully
    consolidates.

Is Private Capital Track Record
Exits
Investments
Firm
Exit Price
Firm
Investment
IRR(1)
Is Private Equity is the leader with profitable
investments in the fast growing private equity
market
20
21
Maxis Securities
  • Maxis Securities was established in one of the
    world financial centers
  • London, UK with in the target of expanding
    its business lines to
  • international capital markets.
  • We expect the company to be fully in operation
    in QIII/07 as all the legal
  • procedures have recently been completed.
  • Maxis started to open new client accounts, which
    will likely expedite in
  • the periods to come

22
Comments on Profit
  • The first half profit confirms our year-end
    profit estimate.
  • Full consolidation of Is Asset Management that
    started in QII/07 (merely
  • 20 was consolidated) led the portfolio
    commissions to jump to TRY 4.8
  • mn in IH/07. The effect of 70 consolidation
    will be seen in next quarter.
  • Is REIT shares amounted to nominal TRY 6.63 mn
    (TRY 13.3 mn in market
  • value), which are held in our accounts, form
    a potential profit for Is
  • Investment.
  • There are numerous corporate finance related
    projects in the pipeline
  • that might significantly elevate our
    corporate finance revenues in the
  • second half.
  • We have been waiting for the legal approval for
    our new mutual funds.


23
IS INVESTMENT
HEAD OFFICE Is Kuleleri Kule-2 Kat 12 4. Levent 34330 Istanbul Ph (0212) 350 20 00 Fax (0212) 325 12 26 325 12 48
IZMIR BRANCH Talatpasa Bulvari No27 Alsancak 35220 Izmir Ph (0232) 488 90 00 Fax (0232) 464 69 43 464 68 98
KALAMIS BRANCH Fenerbahce, Fener Kalamis Cad. Tibas-Belvu Sitesi A2 Blok Daire 3 Kadikoy 81030 Istanbul Ph (0216) 542 72 00 Fax (0216) 542 72 01
ALMA ATA LIAISON OFFICE 181 Zheltoksan St. The Regent Almaty Oda 108 Almaata 480013 Kazakhstan Ph (73272) 505000 Fax (73272) 582805

ANKARA BRANCH Tahran Cad. No3/8 06700 Kavaklidere - Ankara Ph (0312) 455 26 50 Fax (0312) 466 26 62
YENIKOY BRANCH Koybasi Caddesi Iskele Cikmazi No 277 34464 Yenikoy ISTANBUL Ph (0212) 363 01 00 Fax (0212) 363 01 01
LEVENT LIAISON OFFICE Yapi Kredi Plaza C Blok Kat 9 Bolum 25/B 34330 Besiktas, Istanbul Ph (0212) 282 00 18 Fax (0212) 282 00 19
SUBSIDIARY MAXIS SECURITIES LTD 8 Princes Street London EC2R 8HL UK Ph (44207) 397 1431 Fax (44207) 726 2566

www.isyatirim.com.tr www.isinvestment.com
23
24
The information in this report is prepared by IS
YATIRIM MENKUL DEGERLER A.S. (Is Investment) and
it is not to be construed as an offer or
solicitation for the purchase or sale of any
financial instrument or the provision of an offer
to provide investment services. Information,
opinions and comments contained in this material
are not under the scope of investment advisory
services. Investment advisory services are given
according to the investment advisory contract,
signed between the intermediary institutions,
portfolio management companies, investment banks
and the clients. Opinions and comments contained
in this report reflect the personal views of the
analysts who supplied them. The investments
discussed or recommended in this report may
involve significant risk, may be illiquid and may
not be suitable for all investors. Therefore,
making decisions with respect to the information
in this report cause inappropriate results. All
prices, data and other information are not
warranted as to completeness or accuracy and are
subject to change without notice. Any form of
reproduction, dissemination, copying, disclosure,
modification, distribution and/or publication of
this report is strictly prohibited. The
information presented in this report has been
obtained from sources believed to be reliable. Is
Investment cannot be held responsible for any
errors or omissions or for results obtained from
the use of such information.
About PowerShow.com