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The model of a customer-centered banking culture, Ziraat Bank has always strived to stand by its clients during its 152-year existence. Adding value to customers' lives with its diversified product and service portfolio as well as a robust and extensive service network, the Bank keeps close watch on developments in the banking and IT industries to render customer satisfaction sustainable.

Productivity-Centered Change and Transformation Project

Ziraat Bank has recently implemented the Change and Transformation Project, which has yielded significant productivity increases in operations, customer relations, loan processing and policies. Ziraat Bank divides its customers into the corporate, entrepreneurial and retail customer segments. The transformation effort has greatly boosted the competence in customer satisfaction and on the loan assessment side as well. During the transformation process, the Bank segmented its customers and branches in order to offer the right value proposition at the right time. With its extensive geographic reach and high degree of customer access, the Bank delivers to customers an array of special services free of massive transactions.

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Ziraat Bank outperformed the competition in terms of loan growth in 2015. The Bank's total assets rose by 22% to TL 302.8 billion. Cash loans, which accounted for 62% of this total, increased 32% in 2015 while non-cash loans climbed by 47%. The Bank has bolstered its operational and financial infrastructure and used this strength to contribute to the Turkish economy. Cash loans have risen to TL 187 billion, and the total loan volume including non-cash loans has soared to TL 247 billion. Further information on the loan portfolio breakdown of Ziraat Bank is available in the Annual Report 2015, pages 33-40.

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Corporate Identity Studies Aimed at Consolidating Strong Brand Image

Ziraat Bank conducts regular studies to enhance its corporate identity in line with the Bank's quality standards to ensure that the brand image is perceived correctly by customers, corporate identity standards are integrated in all relevant areas, and faulty practices are prevented. To this end, all branches undergo a Corporate Identity Visual Image Audit on an annual basis.

Social Media-Centered Customer Relationship Management

Focusing on meeting customer needs and expectations through every available corporate communications platform, Ziraat Bank also demonstrates a strong performance across today's extensive social media channels. The Bank's social media accounts are handled by a team of professionals, and reach large numbers of followers with their engaging content. As of December 17, 2015, the Bank had a total of 756,846 fans on Facebook and its YouTube videos were watched 8,884,359 times.

Ziraat Bank and SMEs

Understanding that SMEs are the driving engine of the country's fast-paced economy, Ziraat Bank enjoys a significant competitive edge against its rivals in SME Banking. With the agreement signed between the Bank and the Directorate for Development and Support of Small and Medium Scale Enterprises (KOSGEB), the Bank has started to provide interest rate discounts of up to 20% and banking transactions discounts of up to 100% to entrepreneurs. Additionally, the Bank has entered into another agreement with the Credit Guarantee Fund to support SMEs. As a result, CGF has started to offer guarantees for the loans extended by Ziraat Bank to manufacturing SMEs, non-manufacturing SMEs, women entrepreneurs, travel agencies and ship construction firms. An agreement was reached for the securitization of the product named PGS Micro SMEs Micro Loans, offered as part of the Portfolio Guarantee System. In response to new financial needs, the Pharmacy Support Package was updated with loans and other banking products under attractive terms.

Disability-Free Support Package

The Disability-Free Support Package was launched to help disabled citizens meet their own needs and contribute more to the national economy.

The advantageous banking products within this package are offered to:

• Sole proprietorships owned by disabled individuals, or commercial firms whose 10% stake belongs to disabled individuals, who document that they have a physical impairment of at least 40% but possess legal and juridical capacity,
• Companies who employ at least one disabled person more than the minimum number of disabled employees they are obliged to employ under the Labor Law,
• Firms who employ disabled individuals although they are not legally obliged to do so.

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Ziraat Women Entrepreneur Support Package

In order to encourage female entrepreneurs to participate in business, Ziraat Bank has rolled out the Ziraat Women Entrepreneur Support Package. The attractive banking and/or loan products offered within this package are designed to support women entrepreneurs and are accessible to sole partnerships owned by women or stock corporations where women partners hold a stake of 50% or above. In addition, Ziraat Bank and the Credit Guarantee Fund have signed the Guarantee Support Agreement for Loans to Ziraat Women Entrepreneurs in order to offer loan guarantees to female entrepreneurs.

International Financial Institution Loans for SMEs

Ziraat Bank has continued to secure loans from international financial institutions for the financing of SMEs or larger companies in 2015. Although the loan agreements that Ziraat Bank enters into with international financial institutions contain specific provisions pertaining to environmental and social impact, general compliance with current environmental laws and regulations is a requirement of them all. Such agreements may also contain lists of businesses that are exposed to particular environmental risks and/or are not to be financed.

Environmental and Social Control of Customers

As a requirement of the lending agreements entered into with international financial institutions, SMEs that receive financing through Ziraat Bank must sign an addendum to their main loan agreement with the Bank. In this addendum, they specifically commit themselves to abide by the particular environmental and social terms and conditions stipulated by the prime lender.

During the reporting period, representatives of the international financial institutions with which Ziraat Bank collaborates conducted inspections at the Bank and at borrowers' places of business to check for compliance with such terms and conditions.

Information about the credit agreements that Ziraat Bank has entered into with international financial institutions and the borrowers these agreements apply to is summarized below.

World Bank Loans for SMEs and Larger Enterprises

Thanks to their flexible repayment terms, grace periods, and ability to serve as long-term investment financing and operating capital, World Bank credit ranks among the best value-creating financial solution and support options that Ziraat Bank offers. In 2015, the Bank continued to supply its customers with World Bank-sourced loans.

In May 2013, Ziraat Bank signed a USD 67 million credit agreement with the World Bank under which Ziraat Bank commenced to finance the energy-efficiency investments of SMEs and larger enterprises. As per this project, Ziraat Bank began working with a consultancy to provide such customers with the technical support that they need to carry out their energy efficiency efforts, and loan allocations continued in 2015.

In 2013, Ziraat Bank signed an Enhancing SME Access to Financing Project agreement with the World Bank, under which Ziraat Bank receives USD 300 million in tranches to be allocated to SMEs both through leasing companies and via banks licensed to provide leasing products and services. These resources continued to be extended to leasing companies during 2015. While encouraging SMEs to support their growth plans through leasing-financed investments, this program had the additional benefit of giving the Turkish leasing industry access to medium- and long-term funding.

EIB Loans for SMEs and Larger Enterprises

In 2015, Ziraat Bank and the European Investment Bank (EIB) signed an agreement to supply SMEs with a total of EUR 100 million, all of which was allocated in 2015. As such, the Bank supported SMEs' growth by increasing their output, productivity, and job-creation capabilities, and also provided SMEs with operating capital and investment financing needed to undertake investments in Turkey aimed at reducing interregional disparities in economic development.

Thanks to the success of this project, a consensus was reached on transferring Ziraat Bank yet another round of funding in the amount of EUR 100 million, to be allocated to SMEs and larger enterprises.

IPARD Credit

Subsequent to these successful efforts, Ziraat Bank began exploring ways to expand the scope of its collaboration with EIB into other areas as well. As a result, a 14-year Instrument for Pre-Accession Assistance in Rural Development (IPARD) agreement was signed in 2014 to provide EUR 100 million worth of credit to finance rural development projects in Turkey.

This line of credit, set to be allocated to projects fulfilling the criteria of the Turkish Agricultural and Rural Development Support Agency (TKDK), is not only the first IPARD agreement that EIB has entered into with a bank in Turkey but is also the longest-term agreement which EIB has ever entered into with a Turkish bank. In 2015, these resources started to be extended to microbusinesses, SMEs and larger enterprises to help overcome the difficulties that rural areas have when accessing financing.

Saudi Export Program (SEP)

In 2013, Ziraat Bank secured a USD 50 million line of credit from the Saudi Export Program to finance the importation of Saudi Arabian origin goods into Turkey. Disbursements, which began the same year, continued successfully in 2015. Under this program, customers who import a wide range of goods other than petroleum from Saudi Arabia are provided with low-cost financing on repayment terms of up to three years.

German Development Bank (KfW)

Under the 10-year agreement reached between Ziraat Bank and the German Development Bank (KfW) to supply EUR 150 million in financing to SMEs that are located in rural areas or are part of the agricultural value chain, credit continued to be extended in 2015 to micro-, small-, and medium-segment clients whose businesses are based in priority-development regions, or in a few other localities stipulated in the agreement. This collaboration aims to help reduce interregional disparities in economic development and to provide medium- and long-term financing support to enterprises involved in the agricultural value chain.

French Development Agency (AFD)

In December 2014, Ziraat Bank signed a 12-year agreement with the French Development Agency (AFD) to supply a total of EUR 100 million in financing to agricultural SMEs that process animal-source foods.

Under the terms of the agreement, which aims to ensure end-consumers access to safe and wholesome food, loans are being provided to SMEs engaged in the non-primary (i.e., other than animal husbandry) aspects of animal-source food production. The objective is to finance modernization projects that will bring them into compliance with EU hygiene and environment standards and with the requirements of Turkish law governing veterinary services, plant health, food, and feed (Law No. 5996).

Council of Europe Development Bank (CEB)

In 2014, a 7-year agreement was signed with the Council of Europe Development Bank (CEB) to provide a total of EUR 100 million in credit, EUR 50 million of which will be allocated through Ziraat Finansal Kiralama A.Ş. This funding initiative aims to help micro-, small-, and medium-sized enterprises create new jobs and protect existing ones. Other goals of the effort include creating a positive social impact and supporting the leasing industry. Under this project during 2015, EUR 50 million in funding was transferred to the Bank - of which EUR 25 million was allocated to Ziraat Finansal Kiralama A.Ş. - and the financing of appropriate projects began.

In 2016, Ziraat Bank plans to allocate operating capital and investment financing to SMEs and larger-sized enterprises upon the signing of the European Investment Bank SMEs and Larger Enterprises Loan II-B Tranche Project agreement.

Disbursement status of lines of credit provided by international financial agencies
(As of December 31, 2015)

Agency	No. of SMEs Involved
World Bank	584
EIB	577
EIB-IPARD Project	538
KfW	5,404

The loan projects conducted jointly by Ziraat Bank and international financial institutions do not include provisions on human rights. Loan agreements executed with the World Bank stipulate that the sub-projects formulated for loan allocation should not lead to the forced migration of any individuals. In other words, the loan project should not result in the expropriation of any tracts of land owned by such individuals.

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AGRICULTURAL SECTOR

Customer-Friendly Solutions in Agricultural Banking

As Turkey's oldest agricultural bank, Ziraat Bank allocates operating and investment loans to support agricultural production and other financing requirements of its customers active in this key sector.

Financing Facilities for Each Area of Production

In order to best support the agricultural sector, Ziraat Bank provides specific financing facilities with customized terms for each area of production. All financial instruments are designed according to the concerned production area's features, investment process, operation cycle and sector-specific dynamics, with convenient maturity and repayment terms. The Bank now allocates specific funds in close to 265 different areas of production which are separated from each other in technical terms. Furthermore, the projects by those investors willing to enter into brand new production areas are also analyzed by technical teams and provided financing based on the results of the analysis.

Ziraat Bank aims to provide liquidity to those clients who continue to engage in agricultural production yet experience or are expected to experience delay or difficulty in loan repayment due to the disruption of their cash flow by natural disasters, increased costs and reduced revenue. To do so, the Bank not only restructures their loan debt over a longer period, but also allocates them with additional operating capital to ensure that they can continue agricultural production.

Agricultural Financing Loan of TL 35.8 billion

Through collateral, equity capital and pricing advantages, Ziraat Bank makes it easier for farmers who market their produce through farmers' unions and cooperatives to secure loans. As such, the Bank encourages farmer clients to join an agricultural organization and thus improve market pricing and access better storage facilities. As of year-end 2015, Ziraat Bank's loans for financing agriculture totaled TL 35.8 billion, with more than 634 thousand loan customers.

Low Interest Rates for Agricultural Loans

In line with its mission of supporting agriculture and in accordance with applicable regulations, Ziraat Bank has extended loans to its agricultural customers at interest rates varying between an annual 0% and 8.25% under subsidies for different production areas. In 2015, Ziraat Bank allocated a total of TL 16.4 billion in loans at low interest rates to 301,917 agricultural producers and enterprises.

Başakkart Facilitates Loan Allocation

With the aim of supporting its customers, Ziraat Bank has enabled them to obtain agricultural loans with their Başakkart. During 2015, 239,000 customers charged TL 4.9 billion out of their aggregate TL 6.4 billion agricultural credit limit using Başakkart. In addition:

• Ziraat Bank intermediated in state support payments worth TL 9,148 million to a total of 4,135,899 producers and their unions,
• The Turkish Grain Board (TMO)'s product purchase payments worth TL 3,053 million,
• In the Turkish Sugar Factories' advance or purchase payments for sugar beets worth TL 749 million.

Always Standing by the Farmer

Aside from its Fixed-Rate Tractor Financing Loan, the Bank carried out various efforts to support enterprises to invest in machinery and respond to customer demand. As a result, the Bank provided clients with loans to purchase used combine harvesters, silage cutters, cotton harvesters and beet harvesters. In 2016, in line with national agricultural policies and strategies, Ziraat Bank will provide financing to establish and modernize enterprises enjoying economies of scale and employing cutting-edge technologies, and to support enterprises which produce high-value-added products that will turn Turkey into a net exporter.

In this respect, the Bank plans to focus on:

• Investment projects that will create added agricultural value and respond to the country's urgent demands;
• Projects to boost agricultural enterprises' capacity to store, process, package and market their produce;
• Modern pressurized irrigation investments which will allow for more efficient use of water resources;
• Enterprises' access to machinery;
• Contract farming projects which contribute to agroindustry-producer integration;
• Financing products such as safflower, high oil yield sunflower, colza, canola, cotton seed, soya, sesame, high oil yield olive, and the like so that Turkey can keep abreast of agricultural change and development, translate its ecological advantages into economic gain, and increase the share of high-value-added products.

Efforts to Raise Financial Awareness

In 2015, Ziraat Bank continued to participate in agricultural events to expand financial awareness. The Bank took part in 11 fairs and sponsored 10 events organized by various farmers' unions and cooperatives. The Bank also organized various events for the farmers' unions active in the agriculture sector, with the attendance of about 2,000 participants. At these events, presentations were made to improve the financial literacy of attendees.

Change in Agricultural Insurance Premiums and Policies in Turkey

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Agricultural Insurance

The number of agricultural insurance policies issued through TARSİM increased 27% to 1,375,390 in 2015, while total premium production went up 41% year-on-year to TL 965,772,197. As per the Council of Ministers resolution covering these years, individuals who obtain Ziraat Bank's subsidized loans for real persons engaged in agriculture must have agricultural insurance policies for the products in question. Ziraat Sigorta, Ziraat Bank's subsidiary established to protect the agriculture sector against risk, maintained its leading position in agricultural insurance in 2015. A 62% rise in Ziraat Sigorta's crop insurance premium production made the most important contribution to the sector's performance in 2015. Ziraat Sigorta accounted for 46% of TARSİM's total premium production.

Project Finance

In keeping with its customer-centered business model, Ziraat Bank offers customers appropriate and value-creating financial solutions. The Bank conducts its project finance operations to create added value for Turkey and to help its customers gain a sustainable financial competitive advantage, in light of environmental and social matters. Infrastructure projects - such as airports, highways and bridges - that bolster the national economy and create jobs, as well as renewable energy projects are all assessed by the Bank through this approach.

Environmental and Social Risk Assessment of Credit Agreements

As part of its project finance activities, Ziraat Bank conducts environmental and social impact assessments and draws up specifically-termed lending agreements as particular circumstances may require.

When considering a project finance application, Ziraat Bank requires an approved environmental impact assessment (EIA) report, if the project is subject to an EIA, or else an official ruling that such a report is not necessary. The Bank also requires that all of the licenses and permissions required by a project be obtained from the authorities concerned and be submitted to the Bank for its own inspection. In situations where this documentation is not forthcoming, the absence is noted in the Bank's reports; it is emphasized that this deficiency must be taken into account when making any decision to lend.

As of year-end 2015, Environmental Consultants are employed for 10 active projects. Whenever Ziraat Bank is involved in the financing of a project being undertaken by a consortium of which the International Finance Corporation (IFC) or European Bank for Reconstruction and Development (EBRD) are members, the project documentation includes investors' pledges to abide by IFC performance standards and the Equator Principles as may be applicable. In such cases, compliance with these additional criteria is monitored and reported on by Technical and/or Environmental Consultant Reports. During 2015, there were no reported instances of any contraventions of such criteria.

Renewable Energy Projects for Sustainable Development

Turkey's existing energy resources are insufficient to meet demand and this significantly increases the country's dependence on energy imports. In addition, the present intensive use of fossil fuels results in environmentally harmful emissions, besides being expensive and subject to rapid resource depletion. For these and other reasons, increasingly greater attention is being given to renewable energy resources and to the technologies needed to exploit them. In line with such considerations, Ziraat Bank provides financing support to renewable energy projects and develops financing packages under convenient terms for small-scale enterprises to reduce dependency on imported energy and to support sustainable economic growth through the use of locally-available resources.

Environmental and Social Commitment Obligation for Customers

Conducting all its operations in light of environmental sustainability principles, Ziraat Bank finances active energy projects which yielded the following environmental, social and economic benefits in 2015:

• The reduction of foreign dependence in energy and creation of local job opportunities through energy projects.
• As clean and sustainable energy sources, renewable energy projects reduce fossil fuel consumption and greenhouse effect.

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In Ziraat Bank agreements, customers commit to complying with environmental and social obligations as prescribed by applicable laws, rules and regulations. The agreements are deemed void in case of a failure to fulfill these commitments. Customers' commitments are monitored on a regular basis by means of periodic reports issued by environmental consultants or investors.

As of year-end 2015, three projects include commitments to plant trees. One of these projects features a commitment for the forestation of a 5,000-hectare area (a minimum of 10 million trees) as part of the Environmental and Social Action Plan. During the loan maturity period of another initiative, 5 million trees will be planted in the first five years, and a total of 10 million trees by the end of 10 years, within the area to be affected by the facility. According to the commitment in another project, a 2,940-hectare tract of land will be covered with 3,381,000 trees.

Efficient Financing Facilities for Energy Projects

As of December 31, 2015, the loans allocated to the energy industry totaled TL 11 billion. According to BRSA data, Ziraat Bank accounts for 7.2% of total loans disbursed to the energy industry as of the referenced date. Of this total, TL 7.5 billion is cash and TL 3.5 billion is non-cash loans. Financing support is delivered with success, in light of the different energy investment types and projects. In addition, the Bank also intermediates in the payment of the World Bank's Energy Efficiency Loans and international financial institution loans.

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Environmental and Social Risk Assessment

Ziraat Bank applies the following criteria to evaluate environmental and social risks in the enterprise assessment process:

Ziraat Bank checks for the presence of "best agricultural practices" and "organic agriculture" in agricultural models; their presence has a positive effect on the customers' risk rating.

As for manufacturing firms, the criterion dubbed "The Plant's Appropriateness for Area of Production" stipulates that "Firms which operate without treatment units, filtered chimney systems or similar environmental measures despite the legal requirement to do so, will be given a negative score in this criterion."

As for the agricultural and manufacturing sectors, the Bank evaluates the environmental impact of the production/manufacturing processes, whether these processes have been designed for sustainability, and the appropriate of the project location. Necessary action is taken with regard to the projects that do not comply with the stated criteria, based upon the investment monitoring reports issued before and after financing.

Value Created for Public Agencies

Having positioned itself as the main distribution channel for the state's social policy programs, Ziraat Bank intermediates in large-scale payments by different public agencies and institutions in every accounting period.

Agricultural Support Payments

Ziraat Bank performed 4,137,228 agricultural support payments totaling TL 9,170 million in 2015.

Home Ownership Assistance Payments

In 2015, Ziraat Bank handled TL 1.2 million worth of Home Ownership Assistance Payments for 8,561 beneficiaries.

Employee Savings Incentive Payments

Ziraat Bank intermediates Employee Savings Incentive Program payments on behalf of the Treasury in accordance with principles and procedures set forth in applicable laws, rules and regulations. In 2015, the Bank paid a total of TL 179.7 thousand to 260 beneficiaries in this area.

Social Security Benefits

Ziraat Bank also collaborates with public agencies and institutions for the payment of salaries and other monthly transfers. In 2015, the Bank processed 56,476,412 social security transfer payments worth a total of TL 67.5 billion; 790,258 salary/monthly transfers worth a total of EUR 323.5 million; and 4,873,261 other transfers worth a total of TL 12 billion. Additionally, the Bank effectuated 16,226,496 payments worth TL 5.2 billion to students for the Scholarship and Dormitory Agency (KYK) and 179,802 additional payments worth TL 789.5 million.

RETAIL SERVICES THAT MAKE A DIFFERENCE

In order to respond to the needs of different customer groups with optimal products and services via optimal channels, Ziraat Bank makes use of a comprehensive distribution network that includes branches, ATMs, Internet banking and mobile banking, as well as call center services.

Steady Increase in Mobile Banking Customers

Ziraat Bank's Internet Banking customer numbers went up 64% over the prior year to 6.3 million. The Bank's mobile banking customer base expanded by 154% - up from 404 thousand to 1.03 million - as of year-end 2015.

"Get an Appointment" App

In line with its unconditional customer satisfaction principle, the Bank regularly introduces innovative practices, one of which is the "Get an Appointment" app that rolled out in 2015. The app allows Ziraat Bank customers to schedule an appointment from the branch of their choice at the most convenient time for them, via their mobile devices, without having to visit the branch in advance.

Special Solutions for Salary-Payment Customers

Within the retail banking business, efforts targeting the needs and expectations of various retail banking segments, customer-centered activities, process improvements and legal compliance initiatives continued with success in 2015. In consideration of the different product experiences of customers whose pension and salary payments are intermediated by Ziraat Bank, the Bank created the BİZ (US) Product Package, Pensioners BİZ (US) Product Package, Employees BİZ (US) Product Package to foster customer loyalty via the ownership and active use of products.

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Special Card for Student Loans

To customers who receive scholarships or student loans from the Scholarship and Dormitory Agency (KYK), Ziraat Bank offers the Young Bankcard with Credit Card Features, which blends the features of debit and credit cards. As such, the Bank not only presents an eco-friendly product that combines two functions in a single card, but also allows students registered with KYK to withdraw up to TL 350 without interest or fee expense when the account balance is insufficient, under the scheme Advance Allowance.

Ziraat Mobile Branch and Mobile ATMs Expand Out

Doing its utmost to stand by customers whenever they have an urgent need, Ziraat Bank delivers additional services via five Mobile Branches and one Mobile ATM to specific regions during peak seasons, as of year-end 2015.

Special Projects for Retail Customers

Ziraat Bank continued to design customized projects for the diversified needs of retail customers in 2015. Some of these projects include:

• Signing of 28 new projects as part of Housing Development Projects;
• Launch of www.evinziraatten.com which specializes in mortgage finance;
• Addition of Urban Transformation Purchase/Construction/Reinforcement Loans in the product portfolio;
• Various discount campaigns for those customers who receive their pension from Ziraat Bank as part of the "Retirement Plus at Ziraat" customer loyalty program in collaboration with various companies from different industries.

Measures to Boost Disabled Customers' Financial Access

In line with its sustainability approach, Ziraat Bank expends systematic efforts to help its disabled customers access products and services with ease. Under the Disabled Access tender, the following measures were taken at 375 branch locations and successfully integrated within the Ziraat Bank concept:

• Installation of tactile pavement indoors and outdoors for visually impaired customers;
• Help button at branch entrance for disabled citizens;
• Bulletin boards with Braille Alphabet on branch doors.

As part of branch modernization projects conducted by contractor firms, disabled-friendly toilets, elevators and ramps were installed in branches.

At strategic locations such as Ankara and Istanbul, 15 specially designed ATMs were installed for individuals with physical impairments. Ziraat Bank plans to redesign its web site and Internet Banking business to facilitate the access of visually impaired customers.

The Bank aims to expand across the service network such efforts to offer disabled customers easy access to branch, ATM and Internet Banking services, and ensure that individuals with visual as well as physical impairments can access ATM services. Significant progress was made in the initiative to set up at least one disabled-friendly ATM in each province in the country. A special chat channel will be established in 2016 to allow customers with hearing impairment to access the call center.

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FINANCIAL LITERACY

With the belief that all social groups must broaden their financial literacy to contribute to sustainable development, Ziraat Bank not only develops customer-centered products and services but also conducts special financial literacy activities for its customers. Ziraat Bank places a special emphasis on enhancing SME financial literacy, and thus employs numerous corporate communication channels to share its expertise and know-how in this area with SMEs. Sales units in charge of the branches conduct periodic visits to branches and client sites to provide financial literacy training to branch personnel as well as customers.

Meetings in Organized Industrial Zones

In order to ensure that the energy efficiency financing allocated to Ziraat Bank by the World Bank will be used in the correct manner, a consultancy provided one full day of training to employees working in the "Entrepreneurial" and "Entrepreneurial-Dynamic" branches of Ziraat Bank. After the training, the staff members were asked to pay a visit and provide information to the customers who may be interested in the program. To raise the energy efficiency awareness of companies operating in the Organized Industrial Zones, meetings were organized at both the Sincan and Adana organized industrial zones, with the participation of 200 clients. In addition, an agreement was reached with KOSGEB in 2015 pertaining to the effort entitled "Transformation of the Inefficient Electric Engines Used in the Kayseri Organized Industrial Zone."

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Special Announcements for Shopkeepers and Artisans

Ziraat Bank participated in the Shopkeepers and Artisans Council – Credit and Finance Commission meetings held by the General Directorate of Shopkeepers and Artisans, as a member of the Banks Association of Turkey. The Bank provided detailed information on the Banks Association of Turkey's training programs for SMEs and on web sites featuring information on Ziraat Bank products. The Bank web site has been redesigned to make it easier for SMEs to access the information they need. The Entrepreneur section in the web site now features comprehensive information on the products and services that SMEs need, including loans, investments, deposits, foreign trade and cash management.

Sponsorship Support for the Popularization of Financial Literacy

Ziraat Bank participates in publications for raising citizens' financial awareness and also sponsors events organized to this end. Ads are placed in various business magazines and publications to promote the Bank's products; in addition, the Bank sponsors a number of TV programs on business themes. Ziraat Bank's Senior Management participated in numerous activities as speaker or panelist in 2015, while key messages were given to wider audiences via newspaper or magazine interviews related to the importance of financial literacy.

E-Training of Children and Youth

The issue of savings gains in importance day by day across the world, and is emphasized by Ziraat Bank as a critical topic as well. The Bank plans training programs to raise children's awareness on the importance of savings and helps them learn more about this issue while having lots of fun.

The Bank's web site features e-training schemes such as Money-Bank Island, Savings Island, Credit and Credit Card Island and Budget Island. These serve to inform young individuals on the relationship between money and banks, the functioning of banks, Internet and telephone banking, credit and credit cards, as well as the prudent use of resources such as money, electricity and water.

E-Training Schemes for Farmers and Other Customers

In line with its founding mission, Ziraat Bank conducts financial literacy campaigns - aimed at the agricultural sector-long one of its strategic priorities. Farmers participate in training schemes that focus on a wide range of issues, from proper irrigation techniques to agriculture insurance. Meanwhile, the Bank has designed the e-training program "How Does the Credit Card System Work?" This is an informational, instructive program designed for all Ziraat Bank customers that focuses on the importance both of credit cards as an essential part of everyday life today and using them wisely.

Marketing Communication in Line with Ethical Principles

In today's world, marketing communication tools, including social media, have become the main communications channels between service provider and customer. For service providers, marketing communication allows an increase in productivity and the delivery of a maximum amount of benefits to society.

Having adopted marketing communication with due respect for the competition as a core principle, Ziraat Bank focuses on delivering customers accurate, up-to-date and objective information in all its marketing communication and promotional activities.

Ziraat Bank's Marketing Communication Principles

• Ensures that the advertising it publishes is both legal and compatible with the rules of fair competition;
• Remains mindful that its marketing communication approach and conduct is responsible, principled, and honest;
• Takes pains to ensure that its marketing communication embodies nothing that is contrary to its country's and its culture's generally-accepted rules, customs, and practices;
• Gives attention to designing its marketing communications in such a way as neither to abuse its customers' trust nor to take any advantage of their lack of experience or knowledge;
• Takes care about timing and conveying messages that might influence customers' product and service purchasing decisions in ways that are proper, not misleading, and understandable.

In line with these principles, Ziraat Bank ensures that all aspects of the preparation and production - including photography, campaign slogans, visual design, and imagery - of all advertising materials that are needed and will be used to promote the Bank itself, or its subsidiaries within Ziraat Finance Group, or each and every one of their products or services is properly coordinated with the advertising agency.

Marketing Communication with a Sponsorship Focus

As part of its marketing communication efforts, Ziraat Bank sponsors events which uphold the benefit of the society. During the reporting period, there were no instances of any Ziraat Bank advertisement, publicity or sponsorship activity being in contravention either of mandatory marketing communication regulations or of its own voluntarily-adhered to rules.