Dear Shareholders,

We have left behind the year 2013 dominated by a lot of uncertainties for both developing and developed markets and full of many conjuncture mobility and fluctuations.

A look at the first half of the year indicates a modest recovery in the global economy. In this period, while USA has grown under its potential, a limited growth has been observed in Euro Zone following a recession of a long time. In the developing countries, growth has slowed down, and financial fragilities have increased in line with the fluctuation in capital movements. The long-lasting recession in Euro Zone and the weak internal demand observed in the basic developing countries have led a great many of international organizations to revise their growth forecasts downwards. Unemployment rates have not yet lowered to their pre-crisis levels and have maintained their high levels in many developed countries.

The continuing financial problems of, and abandonment of the expansionary money policy at, developed countries, and the slowdown in developing countries are the factors increasing the fragility of global economy. Furthermore, the volatility observed in capital movements in the recent times further increases the risk exposures of developing economies.

After a growth of 2.2% under the expectations in 2012, the Turkish economy has grown by 4.4% with the contributions of domestic demand in the third quarter of 2013. During this period, due to the exports recording a horizontal plateau in line with the weak global demand, while the contribution of external demand to growth reduced, the contribution of internal demand started to rise. Abandonment of expansionary money policy by FED, and geopolitical tensions rising in the region have increased the financial risk perception, and triggered the volatility in capital movements and the upturn in interest and exchange rates, thereby making a negative effect on growth.

In the last quarter of 2013, as a result of global economic conditions, political tension and regional political factors, the year-end growth rate of the Turkish economy has been revised and lowered to 3.6% in the Mid-Term Plan.

It is foreseen that external financing potentialities, and investor and consumer confidences, and politics will play a determinant role on economic growth, and that structural reforms should be focused for the sake of catching a distinct momentum. High upward risks in interest rate levels also constitute a risk for growth potential. Included among other risk factors are the approaching elections, political tensions, civic turmoil in neighboring countries, and probable global crisis.

In financial leasing sector which has entered into a growth trend since the last two years and has a growth potential, the performance of the sector is closely dependent upon economic stability and growth. In addition, the expansion of scope of financial leasing as a result of new legislative acts is another important factor for growth of the sector. With the Law on Financial Leasing, Factoring and Financial Companies that entered into effect in December 2012, and with the operating leasing, software leasing, sell and re-lease products and integral parts and appurtenances also being included in the coverage of financial leasing, the product diversification has increased, which in turn has made a positive contribution to 2013 growth momentum of the sector.

VAT and Corporate Tax exceptions enacted with the intention of equalizing the tax burden of sell and re-lease products with that of bank loans in August 2013 have increased the demand for such products, which in turn paved the way for a substantial increase in the total volume of transactions.

Furthermore, the expansion of the list of equipment groups the leasing VAT of which is reduced from 18 percent to 1 percent by a Decree of the Cabinet of Ministers put into force in December 2013 has been welcomed with joy in the sector, and this incentive is expected to make a positive effect on transaction volume of the coming period.

Also with the effects of new products brought by the new Law as of the end of 2012, the sector transaction volume has recorded a serious increase in 2013, and the sector has completed the year 2013 with a transaction volume of 7 billion USD.

Under the competitive conditions of 2013, our Company has, by making best use of the momentum of growth in the sector, increased its transaction volume to 490 million USD representing a rise of 66% over the past year. Giving priority to focusing on profitable and sustainable projects and to service quality, our Company has come to the forefront with its effectiveness in portfolio and risk management and its performance in management of non-performing debts.

Since the date of its foundation, İş Leasing has at all times been a consistent, strong and reputable corporation standing beside the investors as their strong business partner. Giving strength to investments with its deep-rooted existence and creating a difference with its top quality service approach, İş Leasing has strengthened its market position as a pioneer firm of the sector in 2013 as well.

We are hereby presenting to your approval our 2013 activity report, financial statements and net profit distribution proposal prepared in strict compliance with the Capital Markets Law and other applicable laws.

I, acting for myself and for the Board of Directors, wish to present my gratitude to all of our business partners and customers supporting our activities and operations, and to our employees enabling our Company to create a difference with its services, its service quality and the performance of investments supported by it.



SUAT İNCE
Chairman