TABLE OF CONTENTS Presentation Compliance Opinion on the Annual Report .....................................................................................................................................................................................................2 Agenda of the Ordinary General Assembly Meeting ..................................................................................................................................................................................3 Our Mission-Our Vision-Our Strategy ....................................................................................................................................................................................................................6 Summary Financial Results ....................................................................................................................................................................................................................................... 7 Corporate Profile ..................................................................................................................................................................................................................................................................8 Capital and Shareholding Structure .....................................................................................................................................................................................................................9 Message From the Minister of Environment And Urbanization .......................................................................................................................................................11 Message From the Chairman ...................................................................................................................................................................................................................................13 Message From the General Manager .................................................................................................................................................................................................................15 Iller Bank Activities in Year 2014 .............................................................................................................................................................................................................................16 2014 Investment and Financing Program................................................................................................................................................................................................16 Works Executed with Financing from the Grants-in-aid from the General Budget and the Grants-in-aid out of the Profits of the Bank .............................................................................................................................................................................................................................................18 Project to Support the Infrastructure of Municipalities (BELDES) .......................................................................................................................................18 Water and Sewer Systems Infrastructure Project (SUKAP) .....................................................................................................................................................18 Works Being Conducted With Appropriations Made From the Bank’s Profits ............................................................................................................19 Medium and Long Term Loans Provided out of the Equity of Iller Bank ............................................................................................................................20 Works Carried Out By Municipalities and Special Provincial Authorities Under The Local Government Investments Program .......20 Cash Support Loans ............................................................................................................................................................................................................................................20 Loans for Materials, Equipment, Vehicles and Other Requisites .........................................................................................................................................20 Resource Development Activities .................................................................................................................................................................................................................... 21 Short Term Loans Provided out of the Equity of Iller Bank ...........................................................................................................................................................22 Relations with International Financial Institutions ............................................................................................................................................................................23 Categorical Breakdown of Works Completed in 2014 .....................................................................................................................................................................27 2015 Investment, Budget and Financing Program ...........................................................................................................................................................................27 Allotments Made to Municipalities .................................................................................................................................................................................................................29 Subsidiaries .....................................................................................................................................................................................................................................................................32 F Niğbaş Niğde Beton Sanayii ve Ticaret AŞ (NİĞBAŞ) ......................................................................................................................................................................32 Emlak Konut Gayrimenkul Yatırım Ortaklığı AŞ (Emlak Konut GYO) .................................................................................................................................32 Other Services Provided by Iller Bank ..........................................................................................................................................................................................................33 Research-Development Activities for New Services and Operations ...................................................................................................................................35 Management and Corporate Governance Practices Board of Directors ..............................................................................................................................................................................................................................................................38 Audit Committee .................................................................................................................................................................................................................................................................40 Audit Board ...............................................................................................................................................................................................................................................................................41 Headquarters .........................................................................................................................................................................................................................................................................42 Internal Systems Unit Directors ..............................................................................................................................................................................................................................46 Organizational Chart of Iller Bank ..........................................................................................................................................................................................................................48 Summary Board of Directors Report ....................................................................................................................................................................................................................49 Human Resources Practices ......................................................................................................................................................................................................................................51 Transactions the Bank Enters into With Members of its Own Risk Group .................................................................................................................................51 Activities for Which Support Services are Outsourced ............................................................................................................................................................................51