AFI AR2016

(Convenience translation of a report and financial statements originally issued in Turkish)

To the Board of Directors of Finansal Kiralama, Faktoring ve Finansman Şirketleri Birliği:

Independent auditors’ report on the consolidated financial statements

We have audited the accompanying consolidated balance sheet of Finansal Kiralama, Faktoring ve Finansman Şirketleri Birliği (“the

Association”) and its consolidated subsidiaries (together the “Group”) as at December 31, 2016 and the consolidated statement of

comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then

ended and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility for the financial statements

The Group’s management is responsible for the preparation and fair presentation of financial statements in accordance with the

Turkish Accounting Standards and for such internal controls as management determines as necessary to enable the preparation and

fair presentation of consolidated financial statements that are free from material misstatement, whether due to error and/or fraud.

Independent auditors’ responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. Our audit was conducted

in accordance with standards on auditing issued by the standards on auditing issued by Public Oversight Accounting and Auditing

Standards Authority (“POA”). Those standards require that ethical requirements are complied with and that the independent audit

is planned and performed to obtain reasonable assurance whether the consolidated financial statements are free from material

misstatement.

Independent audit involves performing independent audit procedures to obtain independent audit evidence about the amounts

and disclosures in the consolidated financial statements. The independent audit procedures selected depend on our professional

judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to

error and/or fraud. In making those risk assessments, the Group’s internal control system is taken into consideration. Our purpose,

however, is not to express an opinion on the effectiveness of internal control system, but to design independent audit procedures

that are appropriate for the circumstances in order to identify the relation between the consolidated financial statements prepared

by the Association and its internal control system. Our independent audit includes also evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by the Group’s management, as well as evaluating the overall

presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained during our independent audit is sufficient and appropriate to provide a basis for

our audit opinion.

INDEPENDENT AUDITOR’S REPORT

Güney Bağımsız Denetim ve

SMMM A.Ş.

Eski Büyükdere Cad. Orjin Maslak

No.27 Maslak, Sarıyer 34398

İstanbul-Turkey

Tel: +90 212 315 3000

Fax: +90 212 230 8291

Ticaret Sicil No: 479920

Mersis No: 0-4350-3032-6000017

The Association of Financial Institutions

Annual Report 2016