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1000 YATIRIMLAR HOLDİNG A.Ş.

Quarterly Report Nov 11, 2024

10765_rns_2024-11-11_c4608b0e-19a5-491a-9c50-85c3b5e99ae4.pdf

Quarterly Report

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1000 YATIRIMLAR HOLDİNG ANONİM ŞİRKETİ

CONDENSED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 30 SEPTEMBER 2024 TOGETHER WITH AUDITOR'S REVIEW REPORT

(CONVENIENCE TRANSLATION OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

INDEX PAGE
STATEMENTS OF FINANCIAL POSITIONS 1 - 2
STATEMENTS OF PROFIT/(LOSS) AND OTHER COMPREHENSIVE INCOME 3
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY 4
STATEMENTS OF CASH FLOW 5
NOTES TO THE FINANCIAL STATEMENTS 6 - 38

Condensed Statements of Financial Position as of 30 September 2024 and 31 December 2023 (Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

Unaudited Audited
Current Previous
Period Period
30 September 31 December
Assets Note 2024 2023
Current Assets
Cash and cash equivalents 4 114,384,029 354,332,306
Other receivables 3,7 1,126,139,665 1,188,612,401
- Other receivables from related parties 3 1,123,029,382 1,188,612,401
- Other receivables from third parties 7 3,110,283 --
Prepaid expenses 9 3,705,261 336,848
Other current assets 12 17,366,810 8,434,483
Total current assets 1,261,595,765 1,551,716,038
Non - current assets
Financial investments 5 16,546,014,643 18,489,572,302
Property, plant and equipment 4,207,963 3,000,340
Intangible assets 14,321,539 --
Prepaid expenses 9 46,710,720 --
Total non - current assets 16,611,254,865 18,492,572,642
TOTAL ASSETS 17,872,850,630 20,044,288,680

Condensed Statements of Financial Position as of 30 September 2024 and 31 December 2023 (Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

Unaudited Audited
Current Previous
Period Period
30 September 31 December
Liabilities Note 2024 2023
Short - term liabilities
Short - term borrowings 8 35,804,223 --
Trade payables 3,6 8,555,333 12,594,652
- Trade payables to related parties 3,6 -- 10,236,213
- Trade payables to third parties 6 8,555,333 2,358,439
Payables related to employee benefits 11 8,649,110 1,758,533
Other payables 7 350,284,570 311,840,809
- Other payables to related parties 3,7 346,957,751 310,904,172
- Other payables to third parties 7 3,326,819 936,637
Deferred income 1,680,791 3,262,183
Profit for the period tax liability -- 5,605,118
Short - term provisions 10 873,302 415,719
- Short - term provisions for employee benefits 873,302 415,719
Other short - term liabilities 18,225 6,553
Total short - term liabilities 405,865,554 335,483,567
Long - term liabilities
Long - term provisions 11 1,251,416 672,700
- Long - term provisions for employee benefits 11 1,251,416 672,700
Deferred tax liabilities 14 3,791,497,385 4,611,403,296
Total long - term liabilities 3,792,748,801 4,612,075,996
Total Liabilities 4,198,614,355 4,947,559,563
Equity attributable to owners of the parent
company
13,674,236,275 15,096,729,117
Paid-in capital 13 47,000,000 47,000,000
Capital adjustment differences 13 39,047,977 39,047,977
Share premium 1,193,360,802 1,193,360,802
Retained earnings 13,817,320,338 8,562,699,263
Net profit for the period (1,422,492,842) 5,254,621,075
Total Equity 13,674,236,275 15,096,729,117
TOTAL LIABILITIES 17,872,850,630 20,044,288,680

Condensed Statements of Profit or Loss and Other Comprehensive Income For The Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

Unaudited Unaudited Unaudited Unaudited
Current Previous Current Previous
Period Period Period Period
1 July - 1 July -
1 January - 1 January - 30 September 30 September
Note 30 September 2024 30 September 2023 2024 2023
Profit or Loss
Revenue 15 3,186,131,624 1,223,194,480 1,670,587,125 1,081,022
Cost of sales (-) (672,652) (1,114) (46,365) --
Gross profit/(loss) 3,185,458,972 1,223,193,366 1,670,540,760 1,081,022
General administrative expenses (-) 16 (214,186,921) (90,584,497) (50,858,469) (2,679,897)
Marketing, selling and distribution expenses (-) (3,974,509) -- (1,726,154) --
Other income from operating expenses 17 624,856,744 3,829,596,434 (919,046,822) (983,891,781)
Other expenses from operating activities (-) 17 (368,149) (1,171,176) (341,167) (1,170,964)
Operating profit/(loss) 3,591,786,137 4,961,034,127 (698,568,148) (986,661,620)
Income from investment activities 18 979,458,127 3,402,592,451 -- --
Expenses from investment activities 18 (2,841,583,634) -- (2,841,583,634) --
Operating profit before financial income/(expenses) 1,729,660,630 8,363,626,578 (2,143,015,486) (986,661,620)
Financial income 19 219,933,637 17,815,457 12,592,892 13,536,700
Financial expenses (-) 19 (37,143,509) (22,145,986) (696,423) (12,983,155)
Monetary (loss)/gain (4,144,583,331) (1,042,632,263) (326,916,542) 982,408,332
Profit/(loss) before tax (2,232,132,573) 7,316,663,786 (2,458,035,559) (3,699,743)
Tax income/(expense) from continuing operations
- Current tax expenses (-) (10,266,179) -- 915,696 --
- Deferred tax income/(expense) 819,905,910 (2,912,305,868) 540,910,538 (433,213,582)
Profit/(loss) for the period from continuing operations (1,422,492,842) 4,404,357,918 (1,916,209,325) (436,913,325)
Earnings per share 20 (30.27) 93.71 (40.77) (9.30)
Earnings per share from continuing operations (30.27) 93.71 (40.77) (9.30)
TOTAL COMPREHENSIVE INCOME/(EXPENSES) (1,422,492,842) 4,404,357,918 (1,916,209,325) (436,913,325)

Condensed Statements of Changes In Equity for The Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

Paid-in Capital
adjustment
capital differences
Share
premium
Retained
earnings
Net profit
for the period
Total
equity
1 January 2023 12,500,000 22,357,322 -- -- 8,562,699,263 8,597,556,585
Transfers -- -- -- 8,562,699,263 (8,562,699,263) --
Capital increase
Total comprehensive income/(expense)
27,500,000
--
13,580,873
--
--
--
--
--
--
4,404,357,918
41,080,873
4,404,357,918
30 September 2023 40,000,000 35,938,195 -- 8,562,699,263 4,404,357,918 13,042,995,376
1 January 2024 47,000,000 39,047,977 1,193,360,802 8,562,699,263 5,254,621,075 15,096,729,117
Transfers
Total comprehensive income/(expense)
--
--
--
--
--
--
5,254,621,075
--
(5,254,621,075)
(1,422,492,842)
--
(1,422,492,842)
30 September 2024 47,000,000 39,047,977 1,193,360,802 13,817,320,338 (1,422,492,842) 13,674,236,275

Condensed Statements of Cash Flows for The Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

Unaudited Unaudited
Current Period Previous Period
1 January - 1 January -
30 September 30 September
Note 2024 2023
A. Cash flows from operating activities (436,260,140) (36,578,702)
Net profit for the period (1,422,492,842) 4,404,357,918
Adjustments related to reconciliation of net profit for the period 941,699,421 (4,443,172,098)
Adjustments related to depreciation and amortization expenses 6,753,326 --
Adjustments related to provisions 10, 11 1,036,299 837,377
Adjustments related to interest income and expenses 19 (182,790,128) 4,330,530
Adjustments related to tax expenses 14 (809,639,731) 2,912,305,868
Adjustments related to unrealized foreign exchange differences 1,540,047,706 4,765,551,711
Adjustments related to gain on bargain purchase 979,458,127 3,402,592,452
Adjustments related to fair value losses/(gains) (592,847,833) (15,528,735,594)
Monetary gain/(loss) (318,345) (54,442)
Changes in working capital 46,798,045 (12,724,561)
Adjustments related to (increase)/decrease in other receivables from
operating activities 7 62,472,736 (378,924,636)
Adjustments related to increase in trade payables
Adjustments related to (increase)/decrease in other payables from
6 (4,039,319) 6,941,367
operating activities 38,443,761 362,033,930
Adjustments related to increase/(decrease) in prepaid expenses 9 (50,079,133) (2,775,222)
Cash flows from operating activities (433,995,376) (51,538,741)
Other cash inflows/(outflows) (3,293,125) (1,040,691)
Tax payments/refunds (15,871,297) --
Cash outflows arising from acquisition of shares or debt instruments of
other businesses or funds
16,899,658 16,000,730
B. Cash flows from investment activities (22,282,488) 41,080,874
Cash inflows and from by fpurchases and sales of property, plant and
equipment and intangible assets, net (22,282,488) --
Capital increase -- 41,080,874
C. Cash flows from financing activities
218,594,351 (4,330,530)
Cash inflows from borrowing 35,804,223 --
Interest paid 19 (37,143,509) (22,145,986)
Interest received 219,933,637 17,815,456
Net increase/(decrease) in cash and cash equivalent 4 (239,948,277) 171,642
D. Cash and cash equivalents at the beginning of the period 4 354,332,306 359,801
E. Cash and cash equivalents at the end of the period 4 114,384,029 531,443

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

1. ORGANIZATION AND ACTIVITIES OF THE COMPANY

1000 Yatırımlar Holding Anonim Şirketi ("the Company") was established after being registered in the Turkish Trade Registry Gazette dated 28 March 2022 and numbered 10546. The Company's field of activity is to participate in the capital management of established and/or to be established companies, to take responsibility for the financing, organization and management of their investments, to increase the security of investments against possible economic fluctuations and to contribute to the commercial, industrial and financial initiatives of the relevant companies in a healthy manner and in accordance with the requirements of the national economy.

The Company's trade name and the address where it carries out its activities are as follows:

1000 Yatırımlar Holding Anonim Şirketi Yamanevler Mah. Sanayi Cad. A Blok No:56 İç Kapı No:5 Ümraniye/İstanbul

As of 30 September 2024, the number of personnel of the Company is 29 (31 December 2023: 12). The number of employees working in the Company's financial investments is 545 (31 December 2023: 585).

The share capital of the Company is as follows:

30 31
September December
Shareholders (%) 2024 (%) 2023
Kadir Can Abdik 18 8,287,500 18 8,287,500
Mustafa Saim Birpınar 18 8,287,500 18 8,287,500
Üsame Erdoğan 18 8,287,500 18 8,287,500
Hüseyin Ardan Küçük 7 3,506,250 7 3,506,250
Haris Pojata 7 3,506,250 7 3,506,250
EC Yatırımlar Holding A.Ş. (*) -- -- 12 5,625,000
Lydia Yatırım Holding Anonim Şirketi (*) 12 5,625,000 -- --
Public offering capital 20 9,500,000 20 9,500,000
Paid-in capital 100 47,000,000 100 47,000,000
Positive inflation adjustment differences 39,047,977 39,047,977
Total Paid-in Capital 86,047,977 86,047,977

(*) EC Yatırımlar Holding A.Ş has merged with Lydia Yatırım Holding A.Ş. and transferred all of its tangible and monetary rights pursuant to the resolution of the Üsküdar 12th Notary Office dated 12.09.2024 and numbered 19811.

The issued capital of the Company is divided into 47,000,000 shares with a nominal value of TRY1.00 each. Of these, 8,000,000 are registered Class A shares and 39,000,000 are bearer Class B shares. Group A shares have the privilege to nominate candidates for the Board of Directors and to vote in the general assembly. Group B shares do not have any privileges, the privileges of privileged shares are specified in the relevant sections of the Company's Articles of Association.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of Presentation

Applied Financial Reporting Standards

The accompanying financial statements are prepared in accordance with the Communiqué Serial II, No: 14.1, "Principals of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. According to the article 5 of the Communiqué, financial statements are prepared in accordance with Turkish Accounting Standards/ Turkish Financial Reporting Standards ("TFRS") and its addendum and interpretations ("IFRIC") issued by the Public Oversight Accounting and Auditing Standards Authority ("POAASA") Turkish Accounting Standards Board.

The financial statements are presented in accordance with 'Announcement regarding with TFRS Taxonomy' which was published on 3 July 2024 by POA and the format and mandatory information recommended by CMB.

The financial statements are prepared on the historical cost basis, except for financial investments measured at fair value. The determination of historical cost is generally based on the fair value of the consideration paid for the assets.

Going Concern

The financial statements have been prepared on a going concern basis, with the assumption that the Company will benefit from their assets and fulfill their obligations in the next year and in the natural course of their activities.

Adjustment of Financial Statements in High Inflation Periods

With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after 31 December 2023. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy.

According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior-period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Company has therefore presented its financial statements as of 30 September 2023 and 31 December 2023, on the purchasing power basis as of 30 September 2024.

Pursuant to the decision of the Capital Markets Board (SPK) dated 28 December 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29 starting from their annual financial reports for the periods ending on 31 December 2023.

The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute (TÜİK). As of 30 September 2024, the indices and adjustment coefficients used in the adjustment of the financial statements are as follows:

Date Index Conversion factor Three-year compound
infliation rate
30.09.2024 2,526.16 1.00000 343%
31.12.2023 1,859.38 1.35860 268%
30.09.2023 1,351.59 1.49385 254%

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.2 Statement of Compliance with Turkish Accounting Standards ("TAS")

The Company has prepared its financial statements for the period ended 30 September 2024 in accordance with CMB's Communiquê Serial: II-14.1 and the announcements explaining this communiquê. Financial statements and notes are presented in accordance with the formats recommended by the CMB and including the mandatory information.

The Company keeps its accounting records in accordance with the Uniform Chart of Accounts, Turkish Commercial Code and Turkish Tax Laws and prepares its legal financial statements in TRY terms accordingly.

2.3 Current and Reporting Currency

The financial statements of the Company are presented in the currency of the primary economic environment in which the entity operates (its functional currency). The functional and presentation currency of the Company is Turkish Lira ("TRY").

2.4 Shares in Associates

In accordance with paragraph 18 of TAS 28, When an investment in an associate or a joint venture is held by or is held indirectly through, an entity that is a venture capital organization, or a mutual fund, unit trust, and similar entities including investment-linked insurance funds, the entity may elect to measure that investment at fair value through profit or loss in accordance with TFRS 9. The Company has elected to measure its investments at fair value through profit or loss in accordance with this standard.

2.5 Basis of Consolidation

Investment entity in accordance with TFRS 10 Consolidated Financial Statements is an entity that; (a) obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services, (b) commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both and (c) measures and evaluates the performance of substantially all of its investments on a fair value basis. In assessing whether it meets the definition described above, an entity shall consider whether it has the following typical characteristics of an investment entity;

  • (a) It has more than one investment,
  • (b) It has more than one investor,
  • (c) It has investors that are not related parties of the entity.

The Company does not consolidate its subsidiaries in accordance with TFRS 10 as it meets the above conditions and measures the fair value difference of its investments in its subsidiaries and associate at fair value through profit or loss.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.6 Disclosures on Financial Investments

Disclosures on Financial Investments material changes in accounting policies are corrected retrospectively by restating the prior period financial statements.

According to TFRS 10, the Company did not present a financial statement by measuring its investments at fair value through profit or loss and benefiting from exclusion related to financial statement presentation. Besides, the Company is an investment entity as per the definition of investment entity in TFRS 10. The aspects indicating the Company's nature as investment entity are that: the Company gets funds from one or more investors in order to provide investment management services; undertakes its investor or investors that its business purpose is to invest the funds for only acquiring capital gain or investment income or both; and measures and appraises the performance of its all investment based on the fair value principle. Furthermore, the Company has investors without related parties as it is open to multiple investments and investors and to public.

The Company's associates and subsidiarises are as follows:

Principal
organization
(%) and place of
operation
Core business
activity
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. 89 Türkiye Micromobility
Meta Mobilite Enerji Anonim Şirketi 92 Türkiye Charging Station
Algoritma Donanım ve Yazılım Anonim Şirketi 100 Türkiye Software
The
Go Sharing B.V. 100 Netherlands Micromobility
Altay Yenilenebilir Enerji Üretim ve Depolama Anonim Şirketi 100 Türkiye Energy
Cyprus Binbin Microbility Limited 5 Cyprus Micromobility
Yeşil Kalkınma Vakfı 100 Türkiye Ecological Policies
Finq Teknoloji ve İnovasyon Sanayi Ticaret Anonim Şirketi 1 Türkiye Toy
4B Mühendislik İnşaat Enerji ve Danışmanlık Anonim Şirketi 100 Türkiye Engineering
1000 Ödeme Hizmetleri ve Elektronik Para Anonim Şirketi 100 Türkiye Technology
İstanbul Dijital Taksi Uygulamaları Turizm Sanayi ve Ticaret A.Ş. 100 Türkiye Technology

Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. ("Bin Ulaşım") Founded in 2019 and operating in the micromobility sector. The Company owns 89% of Bin Ulaşım's share capital amounting to TRY100,000,000.

Meta Mobilite Enerji A.Ş. ("Meta") Founded in 2022 and operating in the electric charging station sector. The Company owns 92% of Meta's share capital amounting to TRY44,079,466.

Algoritma Donanım ve Yazılım A.Ş. ("Algoritma") Founded in 2022 and operates in the software industry. The Company owns 100% of Algoritma's share capital amounting to TRY5,000,000.

Go Sharing B.V. ("Go Sharing") Founded in 2019 in the Netherlands, it operates in the micromobility sector. The Company owns 100% of Go Sharing's share capital amounting to EUR96,000.

Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş. ("Altay") Founded in 2022, it operates in the renewable energy sector. The Company owns 100% of Altay's share capital amounting to TRY30,000,000.

Cyprus Binbin Microbility ("Cyprus") Founded in 2022, it operates in the micromobility sector. The Company owns 5% of Cyprus's share capital amounting to TRY1,000,000. The activities of the related company were suspended as of 31.12.2023.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.6 Disclosures on Financial Investments (Continued)

Finq Teknoloji ve İnovasyon Sanayi Ticaret A.Ş. ("Finq") Founded in 2023, it operates in the driving toys sector. The Company owns 1% of Finq's share capital amounting to TRY20,000,000.

4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş. ("4B") Founded in 2023, it operates in the sector of engineering and consultancy activities for other projects. The Company owns 100% of 4B's share capital amounting to TRY200,000.

1000 Ödeme Hizmetleri ve Elektronik Para A.Ş. ("1000 Finansal") Founded in 2023, the company will carry out virtual and mobile POS activities in the logic of payment systems and carry out money transfer activities through digital banking. Apart from these, work is also ongoing niche projects. The company owns 100% of 1000 Finansal's share capital amounting to TRY5,000,000.

İstanbul Dijital Taksi Uygulamaları Turizm Sanayi ve Ticaret A.Ş. ("Taksim") Founded in 2024, Taksim is a local taxi hailing app for Istanbulites. The company owns 100% of Taksim's share capital amounting to TRY5,000,000.

Yeşil Kalkınma Vakfı ("YEKAV") was established in 2024 and will operate in fields of green energy and climate change. The company owns 100% of YEKAV's share capital amounting to TRY120,000.

2.7 Changes in Accounting Policies

Accounting policy changes resulting from the first application of a new TAS are applied retrospectively or prospectively in accordance with the transitional provisions of that TAS. Significant accounting errors identified are applied retrospectively and prior period financial statements are restated. If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.

2.8 Changes and Errors in Accounting Policies

If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively. The Company has not made any significant changes in accounting estimates in the current year. Major accounting errors that have been detected are applied retrospectively and the financial statements of the previous period are restated.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 New and Revised Standards and Comments

As at 30 September 2024, the accounting policies adopted in preparation of the financial statements for the year ended 1 January 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and interpretations of TFRS effective. The effects of these standards and interpretations on the financial position and performance of the Company are disclosed in the related paragraphs

a) The new standards, amendments and interpretations which are effective as at 1 January 2024:

Amendments to TAS 1 - Classification of Liabilities as Current and Non-Current Liabilities;

In March 2020 and January 2023, POA issued amendments to TAS 1 to specify the requirements for classifying liabilities as current or non-current. According to the amendments made in January 2023 if an entity's right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period, the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period (even if it does not comply with the relevant conditions at the end of the reporting period). When a liability arising from the loan agreement is classified as non-current and the right of the entity to defer the payment depends on its compliance with the terms of the loan agreement within 12 months, the January 2023 amendments require the entities to make various disclosures. These disclosures should include information about the terms of the loan agreement and the related obligations. However, the amendments clarified that the right to defer payment for long-term classification should exist by the end of the reporting period, regardless of whether compliance with the terms of the contract is to be tested at the reporting date or at a later date.The amendments clarified that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. The amendments must be applied retrospectively in accordance with TAS 8. The amendments did not have a significant impact on the financial position or performance of the Company.

Amendments to TFRS 16 - Lease Liability in a Sale and Leaseback;

In January 2023, POA issued amendments to TFRS 16. The amendments specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. In applying requirements of TFRS 16 under "Subsequent measurement of the lease liability" heading after the commencement date in a sale and leaseback transaction, the seller lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a sellerlessee determining 'lease payments' that are different from the general definition of lease payments in TFRS 16. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with TAS 8. A seller-lessee applies the amendments retrospectively in accordance with TAS 8 to sale and leaseback transactions entered into after the date of initial application of TFRS 16. The amendments did not have a significant impact on the financial position or performance of the Company.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 New and Revised Standards and Comments (Continued)

a) The new standards, amendments and interpretations which are effective as at 1 January 2024 (Continued):

Amendments to TAS 7 and TFRS 7 - Disclosures: Supplier Finance Arrangements;

The amendments issued by POA in September 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by TFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose. The amendments did not have a significant impact on the financial position or performance of the Company.

b) Standards issued but not yet effective and not early adopted:

Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the financial statements are as follows. The Company will make the necessary changes if not indicated otherwise, which will be affecting the financial statements and disclosures, when the new standards and interpretations become effective.

Amendments to TFRS 10 and TAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture;

In December 2017, POA postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted. The Company will wait until the final amendment to assess the impacts of the change.

TFRS 17 - The new Standard for insurance contracts;

POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. The mandatory effective date of the Standard postponed to accounting periods beginning on or after 1 January 2025 with the announcement made by the POA.The standard is not applicable for the Company and will not have an impact on the financial position or performance of the Company.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 New and Revised Standards and Comments (Continued)

b) Standards issued but not yet effective and not early adopted (Continued):

Amendments to TAS 21 - Lack of exchangeability

In May 2024, POA issued amendments to TAS 21. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted but will need to be disclosed. When applying the amendments, an entity cannot restate comparative information. The amendments did not have a significant impact on the financial position or performance of the Company.

c) The amendments which are effective immediately upon issuance:

Amendments to TAS 12 - International Tax Reform - Pillar Two Model Rules;

In September 2023, POA issued amendments to TAS 12, which introduce a mandatory exception in TAS 12 from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that TAS 12 applies to income taxes arising from tax laws enacted or substantively enacted to implement the Pillar Two Model Rules published by the Organization for Economic Cooperation and Development (OECD). The amendments also introduced targeted disclosure requirements for entities affected by the tax laws. The temporary exception from recognition and disclosure of information about deferred taxes and the requirement to disclose the application of the exception apply immediately and retrospectively upon issue of the amendments.

d) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA):

The following amendments to IFRS 9 and IFRS 7 as well as IFRS 18 and IFRS 19 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Company will make the necessary changes to its financial statements after the amendments and new Standard are issued and become effective under TFRS.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 New and Revised Standards and Comments (Continued

d) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA) (Continued):

Amendments to IFRS 9 and IFRS 7 - Classification and measurement of financial instruments

In May 2024, IASB issued amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7). The amendment clarifies that a financial liability is derecognised on the 'settlement date'. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of non-recourse assets and contractually linked instruments. Additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income are added with the amendment. The amendments did not have a significant impact on the financial position or performance of the Company.

IFRS 18 - The new Standard for Presentation and Disclosure in Financial Statements

In July 2024, IASB issued IFRS 18 which replaces IAS 1. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards, such as IAS 7, IAS 8 and IAS 34. The amendments did not have a significant impact on the financial position or performance of the Company.

IFRS 19 - Subsidiaries without Public Accountability: Disclosures

In May 2024, IASB issued IFRS 19, which allows eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. Unless otherwise specified, eligible entities that elect to apply IFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards. An entity that is a subsidiary, does not have public accountability and has a parent (either ultimate or intermediate) which prepares consolidated financial statements, available for public use, which comply with IFRS accounting standards may elect to apply IFRS 19. The amendments did not have a significant impact on the financial position or performance of the Company.

2.10 Summary of Significant Accounting Policies

The interim condensed financial statements for the period ended 30 September 2024 have been prepared in accordance with TAS 34. The accounting policies used in the preparation of these interim condensed financial statements for the period ended 30 September 2024 are consistent with those used in the preparation of annual financial statements for the year ended 31 December 2023. Accordingly, these interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2023.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

3. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

Balances to related parties usually arise from operational mobile rental transactions and their approximate maturity is 30 - 45 days for receivables.

The details of the transactions between the Company and other related parties:

i. Balances with related parties

a) Other receivables from related parties

30 September
2024
31 December
2023
Go Sharing B.V. (*) 471,403,998 43,017,282
Meta Mobilite Enerji A.Ş. (**) 380,239,832 294,310,391
Algoritma Donanım ve Yazılım A.Ş. 146,395,644 63,905,851
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. 80,127,137 787,342,265
Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş. 14,232,781 --
1000 Ödeme Hizmetleri ve Elektronik Para A.Ş. 14,225,746 --
İstanbul Dijital Taksi Uygulamaları Turizm San. ve Tic. A.Ş. 12,243,416 --
Go Sharing Mobilite Hizmetleri ve Ticaret A.Ş. 3,960,829 36,613
4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş. 200,000 --

1,123,029,382 1,188,612,402

(*) The related balance consists of the balances sent for the continuation of the Company's operations in the Netherlands.

(**) The related balance consists of the balances sent for the investment commitment advance loan process used by Meta Mobilite Enerji A.Ş..

b) Other payables due to related parties

30 September
2024
31 December
2023
4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş. (**) 259,957,751 301,393,947
EC Yatırımlar Holding A.Ş. (*) 87,000,000 9,510,224

346,957,751 310,904,172

(*) The related balance consists of the debt item taken for the establishment of Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş.

(**) The related amount is the debt amount sent to 4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş..

c) Trade payables to related parties

30 September
2024
31 December
2023
Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş. -- 10,236,213
-- 10,236,213

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

3. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)

ii. Transactions with related parties

a) Product and service purchases from related parties

1 January - 30 September 2024
Rent Interest Other Total
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. 302,926 -- 809,355,710 809,658,636
Go Sharing B.V. -- -- 89,755,878 89,755,878
4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş. -- 40,703,342 4,487,794 45,191,136
Algoritma Donanım ve Yazılım A.Ş. -- -- 3,164,225 3,164,225
Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş. -- -- 2,917,066 2,917,066
Meta Mobilite Enerji A.Ş. -- -- 2,711,749 2,711,749
1 January - 30 September 2023
Rent Interest Other Total
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. 457,517 25,377,869 9,036 25,844,422
4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş. -- 1,836,090 -- 1,836,090
Algoritma Donanım ve Yazılım A.Ş. -- 491,965 71,334 563,299
457,517 27,705,924 80,370 28,243,811

302,926 40,703,342 912,392,422 953,398,690

b) Product and service sales to related parties

1 January - 30 September 2024
Rent Interest Other Total
Go Sharing B.V. 82,735,913 -- 478,024,250 560,760,163
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. -- 76,740,048 173,986,125 250,726,173
Meta Mobilite Enerji A.Ş. -- 46,690,595 150,433,146 197,123,741
Algoritma Donanım ve Yazılım A.Ş. -- 11,740,137 102,898,355 114,638,493
Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş. -- 2,167,699 25,170,984 27,338,682
1000 Ödeme Hizmetleri ve Elektronik Para A.Ş.
İstanbul Dijital Taksi Uygulamaları Turizm Sanayi
-- 6,651 15,953,903 15,960,554
ve Ticaret A.Ş. -- 65,873 13,687,059 13,752,932
4B Mühendislik İnşaat Enerji ve Danışmanlık A.Ş. -- -- 2,650,503 2,650,503
82,735,913 137,411,004 962,804,325 1,182,951,241

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

3. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)

ii. Transactions with related parties (Continued)

b) Product and service sales to related parties (Continued)

1 January - 30 September 2023
Consultancy Interest Other Total
Go Sharing B.V. -- 17,509,343 -- 17,509,343
Meta Mobilite Enerji A.Ş. -- 6,192,268 299,832 6,492,100
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. 2,541,760 -- 299,832 2,841,592
Algoritma Donanım ve Yazılım A.Ş. -- 42,264 299,832 342,096
Altay Yenilenebilir Enerji Üretim ve Depolama A.Ş. -- -- 299,832 299,832
Go Sharing Mobilite Hizmetleri ve Ticaret A.Ş. -- 14,163 -- 14,163

Total remuneration and benefits of key management personnel

As of 30 September 2024, remuneration and similar benefits provided to key management personnel such as general manager and assistant general managers in the current period is TRY7,535,902 (31 December 2023: TRY10,359,421)

2,541,760 23,758,038 1,199,328 27,499,126

4. CASH AND CASH EQUIVALENTS

30 September
2024
31 December
2023
Cash in hand 354 480
Banks 114,383,676 354,331,825
- Demand deposits 45,939,099 1,094,940
- Time deposits (*) 68,444,577 353,236,885
114,384,029 354,332,306

(*) The maturity of time deposits is less than 3 months and the average effective interest rate is 44.68% for TRY (31 December 2023: 36%).

5. FINANCIAL INVESTMENTS

The details of the Company's long-term financial investments as at 30 September 2024 and 31 December 2023 are as follows:

30 September
2024
31 December
2023
16,546,014,643 18,489,572,302
16,546,014,643 18,489,572,302
30 September 31 December
2024 2023

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

5. FINANCIAL INVESTMENTS (Continued)

Financial investments at fair value through profit or loss

As at 30 September 2024 and 31 December 2023, the fair value details of subsidiaries and associates are as follows:

Share Share
Ratio 30 September Ratio 31 December
(%) 2024 (%) 2023
Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. and
subsidiaries (*) 89 12,923,129,841 89 10,846,468,033
Meta Mobilite Enerji A.Ş. (*) 92 1,258,928,549 95 2,148,940,160
Algoritma Donanım ve Yazılım A.Ş. (*) 100 675,023,153 100 710,353,091
Go Sharing B.V. () (****) 100 771,358,779 100 4,766,084,349
Altay Yenilenebilir Enerji Üretim ve Depolama
A.Ş. (**) 100 13,118,017 100 10,620,309
Cyprus Binbin Microbility 5 101,709 5 120,651
Yeşil Kalkınma Vakfı (***) 100 212,007 100 238,739
Finq Teknoloji ve İnovasyon Sanayi Ticaret A.Ş.
(***) 1 348,225 1 388,461
4B Mühendislik İnşaat Enerji ve Danışmanlık
A.Ş. (***) 100 275,923 100 298,770
1000 Ödeme Hizmetleri ve Elektronik Para A.Ş.
(**) 100 -- 100 6,059,738
İstanbul Dijital Taksi Uygulamaları Turizm San.
ve Tic. A.Ş. (****) 100 903,518,438 -- --
16,546,014,643 18,489,572,301

The fair value of the companies has been determined by an independent valuation company with an independent valuation report dated 30 June 2024. The valuation company is authorized by the CMB and provides valuation services in accordance with capital markets legislation. The fair value of the financial investments held are calculated according to the Discounted Cash Flow Method ("DCF") and Net Asset Value method.

(*) The value of Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş. includes the valuations of its subsidiaries and the fair value of the related financial investments is determined according to the Discounted Cash Flow Method.

(**) The fair value of the related financial investment is determined according to the Net Asset Value method.

(***) Related financial investments are recognized at cost.

(****) The related financial investment is recognized at fair value in the valuation report dated 31 March 2024.

(*****) The related financial investment is recognized at fair value in the valuation report dated 30 September 2024.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

6. TRADE PAYABLES

a) Trade payables

The details of the Company's trade payables are as follows:

30 September
2024
31 December
2023
Trade payables to related parties (Note 3)
Trade payables to third parties
--
8,555,333
10,236,213
2,358,439
8,555,333 12,594,652

The aging analysis of the Company's short-term trade payables is as follows:

30 September
2024
31 December
2023
0 - 3 months 8,555,333 12,594,652
8,555,333 12,594,652

7. OTHER RECEIVABLES AND PAYABLES

a) Short - term other receivables

30 September
2024
31 December
2023
Other receivables due from related parties (Note 3)
Receivables from public administrations
1,123,029,382
3,110,283
1,188,612,401
--
1,126,139,665 1,188,612,401

b) Short - term other payables

30 September
2024
31 December
2023
Other payables due to related parties (Note 3) 346,957,751 310,904,172
Other miscellaneous payables (*) 3,326,819 936,637
350,284,570 311,840,809

(*) The related amount consists of taxes payable.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

8. FINANCIAL LIABILITIES

a) Short - term borrowings

30 September 31 December
2024 2023
Bank borrowings 35,757,464 --
Other financial liabilities (*) 46,759 --
35,804,223 --

(*) Other financial liabilities consist of Company credit cards.

Effective weighted 30 September 2024 31 December 2023
Currency average interest rate % Short -
term
Long -
term
Short -
term
Long -
term
TRY 4.41 35,757,464 -- -- --
35,757,464 -- -- --

9. PREPAID EXPENSES

The details of short - term prepaid expenses are as follows:

30 September
2024
31 December
2023
2,426,282 127,782
209,066
3,705,261 336,848
1,278,979

The details of long - term prepaid expenses are as follows:

30 September
2024
31 December
2023
Advances given (*) 46,710,720 --
46,710,720 --

(*) The related amount consists of the advance given for the purchase of the shares of Ufuk Yatırım Yönetim ve Gayrimenkul Anonim Şirketi, which the Company disclosed to the public in the Company's disclosure dated 14.06.2024. The related amount will be reclassified to financial investments if the conditions and closing conditions stipulated in the Share Purchase and Sale Agreement are fulfilled.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

10. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Short - term provisions

30 September
2024
31 December
2023
Provisions for unused vacation 873,302 415,719
873,302 415,719
Movements of the short - term provisions the years are as follows:
1 January - 30 September 2024 Provision for
unused vacation
Total
Beginning of the period 415,719 415,719
Additions 567,312 567,312
Monetary loss/gain (109,729) (109,729)
End of the period 873,302 873,302
Provision for
1 January - 30 September 2023 unused vacation Total
Beginning of the period 44,922 44,922
Additions 412,482 412,482
Monetary loss/gain (14,945) (14,945)
End of the period 442,459 442,459

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

10. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

b) Guarantees given

30 September
2024
31 December
2023
Pledge 239,112,788 --
Sureties given 124,956,017 1,059,051,738
Guarantee 102,968,198 --

467,037,004 1,059,051,738

30 September
2024
31 December
2023
Original
Currency
TRY
Amount
Original
Currency
TRY
Amount
CPM given by group:
A. Total amount of collaterals/pledges/mortgages
given for its own legal entity
TRY -- TRY --
B. Total amount of collaterals/pledges/mortgages
given for participations included in entire consolidation
TRY -- TRY --
C. Total amount of colleterals/pledges/mortgages
given to assure
debts of third parties, for the purpose of conducting
the business activities
TRY -- TRY --
D. Total amount of other collaterals/pledges/mortgages given
i. Total amount of collaterals/pledges/mortgages given
ii. Total amount of collaterals/pledges/mortgages given
or other related companies that do not fall into B
TRY
TRY
467,037,004
--
TRY
TRY
1,059,051,738
--
and C sections TRY 467,037,004 TRY 1,059,051,738
iii. Total amount of collaterals/pledges/mortgages
given for third parties that do not fall into C section
TRY -- TRY --
TOTAL 467,037,004 1,059,051,738

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

11. EMPLOYEE BENEFITS

a) Payables due to employee benefits

The payables of the Company's the of employee benefits as of end of the periods are explained below:

30 September
2024
31 December
2023
Social security premium payables
Payables to personnel (*)
947,368
7,701,742
532,705
1,225,827
8,649,110 1,758,532

(*) TRY3,088,363 of the related amount consists of wage accruals for September. The related amount was paid in October.

b) Provisions for employment termination benefits

The Company assumes that all of its personnel will retire when they complete their service for 25 years for men and 20 years for women. The principal assumption is that the maximum liability for each year of service will increase in line with the inflation. Thus, when he retires, he finds the portion of the severance pay he will receive in accordance with his seniority on the balance sheet date. This amount is discounted at the rates stated below, in accordance with the remaining period of retirement. As of 30 September 2024 the provision was calculated with discount ratio as approximately 0.00% on the assumption of annual 22.00% inflation rate and 22.00% interest rate

Actuarial gains and losses arising in the following year due to the differences in the discount rate and the rate of employee resignations are not considered significant, so they are not reported in the Equity in the balance sheet over the other Comprehensive Profit and Loss Statement. It is assumed that those who continue to work while they are able to retire and those who continue to work after retirement will leave on the balance sheet date.

The amount of severance pay is subject to an upper limit that is redefined every year. During these calculations, the upper limit of the salary based on severance pay has been taken into the account. This upper limit is TRY41,828.42 effective from 30 September 2024 (31 December 2023: TRY35,058.58).

30 September
2024
31 December
2023
Provisions for employment termination benefits 1,251,416 672,700
1,251,416 672,700

Movements of the provisions for employment termination benefits during the year are as follows

2024 2023
1 January 672,700 118,720
Service cost 662,435 467,862
Interest cost 283,901 11,476
Compensation paid (159,004) --
Monetary (gain)/loss (208,616) (39,497)
30 September 1,251,416 558,561

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

12. OTHER ASSETS AND LIABILITIES

a) Other current assets

he details of the Company's other current assets as of end of the periods are as follows:

30 September
2024
31 December
2023
Deferred VAT
Personnel advances
17,310,308
56,502
8,430,540
3,943
17,366,810 8,434,483

13. EQUITY

a) Capital

The Company's issued share capital is TRY47,000,000 and has been fully paid in free of collusion. This capital is divided into 47,000,000 shares with a nominal value of TRY1.00 each of these, 8,000,000 are registered Class A shares and 39,000,000 are bearer Class B shares. Group A shares have the privilege to nominate candidates for the Board of Directors and to vote at the General Assembly. Group B shares do not have any privileges, and the privileged shares are specified in the relevant sections of the Company's Articles Association.

The paid-in capital structure of the Company as of 30 September 2024 and 31 December 2023 is as follows:

30 September 31 December
Shareholders (%) 2024 (%) 2023
Kadir Can Abdik 18 8,287,500 18 8,287,500
Mustafa Saim Birpınar 18 8,287,500 18 8,287,500
Üsame Erdoğan 18 8,287,500 18 8,287,500
Hüseyin Ardan Küçük 7 3,506,250 7 3,506,250
Haris Pojata 7 3,506,250 7 3,506,250
EC Yatırımlar Holding A.Ş. (*) -- -- 12 5,625,000
Lydia Yatırım Holding Anonim Şirketi (*) 12 5,625,000 -- --
Public offering capital 20 9,500,000 20 9,500,000
Paid - in capital 100 47,000,000 100 47,000,000
Positive Inflation Adjustment Differences 39,047,977 39,047,977
Total paid-in capital 86,047,977 86,047,977

(*) EC Yatırımlar Holding A.Ş has merged with Lydia Yatırım Holding A.Ş. and transferred all of its tangible and monetary rights pursuant to the resolution of the Üsküdar 12th Notary Office dated 12.09.2024 and numbered 19811.

Out of a total of 47,000,000 shares representing the issued capital of the Company amounting to TRY47,000,000, 8,000,000 shares are designated as Group (A) shares and 39,000,000 shares are designated as Group (B) shares.

Group (A) shares have the privilege to nominate candidates not exceeding half of the number of board members and voting privileges at the general assembly. Each Group A share entitles its holder to 5 (five) votes. Each Group B share entitles its holder to 1 (one) vote.

Group (A) shareholders have the privilege to nominate candidates for the Board of Directors and to vote at the General Assembly.

Group (B) shares do not have any privileges.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

14. TAX ASSETS AND LIABILITIES

Current tax expense and deferred tax

The Company is subject to corporate tax in Turkey. Provision is made in the accompanying financial statements for the estimated charge based on the Company's results for the current period.

The corporate tax rate to be accrued on taxable corporate income is calculated over the remaining tax base after adding the non-deductible expenses from the tax base in the determination of the commercial profit and deducting the tax-exempt earnings, non-taxable incomes and other deductions (previous year losses, if any, and investment discounts used if preferred).

In 2024, the effective tax rate is 23% (2023: 25%).

Corporation tax

Company activities are subject to Turkish Tax Legislation and practices.

The corporate tax rate is applied to the net corporate income to be found as a result of adding the expenses that are not accepted as deductible in accordance with the tax laws to the commercial income of the corporations and deducting the exemptions and discounts in the tax laws. Companies file their tax returns within the 30th of the fourth month following the close of the financial year to which they relate and are paid by the end of the respective month.

According to the Corporate Tax Law, financial losses shown on the declaration can be deducted from the corporate tax base of the period, provided that they do not exceed 5 years. Declarations and related accounting records can be examined by the tax office within five years.

Dividend payments made to resident companies in Turkey, to those who are not liable and exempt from corporate tax and income tax, and to real persons and non-resident legal entities in Turkey, are subject to income tax.

Dividend payments made from companies' resident in Turkey to joint stock companies residing in Turkey are not subject to income tax. In addition, income tax is not calculated if the profit is not distributed or added to the capital.

The effective tax rate in 2024 is 23% (31 December 2023: 25%).

The movement of deferred income tax assets and liabilities is as follows:

2024 2023
1 January
Recognized in statement of profit or loss
(4,611,403,294)
819,905,910
(2,561,614,464)
(2,912,305,868)
30 September (3,791,497,384) (5,473,920,332)

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

14. TAX ASSETS AND LIABILITIES (Continued)

Deferred Tax:

The Company recognizes deferred tax assets and liabilities for temporary timing differences arising from the differences between the tax base legal financial statements and financial statements prepared in accordance with TFRS. These differences are generally due to the fact that some income and expense items are included in different periods in the tax base financial statements and financial statements prepared in accordance with TFRS, and the said differences are stated below.

30 September 2024 31 December 2023
Deferred Tax Assets/(Liabilities) Accumulated
temporary differences
Deferred
tax
Accumulated temporary
differences
Deferred
tax
Fair value difference of associates
Adjustments related to deffered
16,503,207,981 (3,795,737,836) 16,939,076,106 (4,612,490,945)
income
Provisions for employment
(1,680,791) 386,582 (2,995,040) 815,546
termination benefits (1,251,416) 287,826 (381,675) 103,930
Provisions for unused vacations
Adjustments related to property,
plant and equipment and intangible
(873,302) 200,859 (617,612) 168,175
assets (16,066,243) 3,695,236 -- --
Interest accrual 1,435,006 (330,051) -- --
Deferred tax assets/(liabilities) -
net 16,484,771,235 (3,791,497,384) 16,935,081,779 (4,611,403,294)

15. REVENUE AND COST OF SALES

1 January -
30 September
2024
1 January -
30 September
2023
1 July -
30 September
2024
1 July -
30 September
2023
Value increase in financial
investments 3,111,903,183 1,222,113,458 1,647,425,284 --
Other 74,228,441 1,081,022 23,161,840 1,081,022
3,186,131,624 1,223,194,481 1,670,587,124 1,081,022

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

16. GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES

Details of general administrative expenses:

1 January - 1 January - 1 July - 1 July -
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Consulting expenses 78,241,208 26,110,690 14,310,462 342,765
Personnel expenses 75,112,675 59,392,024 19,279,758 975,363
Vehicle expenses 11,102,893 2,601 921,776 2,601
Depreciation expenses 6,753,326 -- 5,904,235 --
Representation and
hospitality expenses 3,265,195 2,169 255,352 241
Taxes and other legal dues 2,760,376 1,941,223 1,079,161 355,211
Rent expenses 1,108,096 877,153 14,652 596,798
Travel expenses 522,628 763,485 57,108 123,173
Communication expenses 1,248 -- 1,248 --
Chamber and dues expenses -- 34,852 -- 34,852
Other expenses 35,319,275 1,460,300 9,034,717 248,892
214,186,921 90,584,497 50,858,469 2,679,896

17. OTHER OPERATING INCOME AND EXPENSES

Details of other operating income:

1 January - 1 January - 1 July - 1 July -
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Foreign exchange gain 624,572,604 3,829,170,400 (919,234,063) (984,317,814)
Other income 284,139 426,034 187,240 426,034
624,856,744 3,829,596,434 (919,046,823) (983,891,781)

Details of other operating expenses:

1 January -
30 September
2024
1 January -
30 September
2023
1 July -
30 September
2024
1 July -
30 September
2023
Foreign exchange loss -- 847,623 -- 847,623
Other expenses 368,149 323,553 341,167 323,341
368,149 1,171,176 341,167 1,170,964

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

18. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES

Details of income from investment activities:

1 January -
30 September
2024
1 January -
30 September
2023
1 July -
30 September
2024
1 July -
30 September
2023
Bargain purchase profit (*) (Note 21) 979,458,127 3,402,592,452 -- --
979,458,127 3,402,592,452 -- --

(*) The related amount consists of the bargain purchase profit of İstanbul Dijital Taksi Uygulamaları Turizm San. ve Tic. A.Ş. consists of bargain purchase profit.

Details of expenses from investment activities:

1 January -
30 September
2024
1 January -
30 September
2023
1 July -
30 September
2024
1 July -
30
September
2023
Impairment of financial investments (*) 2,841,583,634 -- 2,841,583,634 --
2,841,583,634 -- 2,841,583,634 --

(*) The related amount consist of the decreasing value balance of the Company's subsidiary, Go Sharing B.V., in line with its changing strategies.

19. FINANCIAL INCOME/(EXPENSES)

Details of financial income:

1 January - 1 January - 1 July - 1 July -
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Interest income 219,933,637 17,815,457 12,592,892 13,536,700
219,933,637 17,815,457 12,592,892 13,536,700
Details of financial expenses:
1 January - 1 January - 1 July - 1 July -
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Interest expenses 37,143,509 22,145,986 696,423 12,983,155
37,143,509 22,145,986 696,423 12,983,155

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

20. EARNINGS/(LOSS) PER SHARE

Basic (loss)/earnings per share is calculated by dividing net profit attributable to equity holders of the parent by the weighted average number of ordinary shares in issue during the period concerned. The Companies can increase their share capital by making a pro-rata distribution of shares ("bonus shares") to existing shareholders from retained earnings. In earnings per share calculation, this bonus share issuance is accepted as shares issued. Hence, weighted average stock share, which is used in the calculation of (loss)/earnings per share, is acquired by retrospective application of bonus share issue.

1 January -
30 September
2024
1 January -
30 September
2023
1 July -
30 September
2024
1 July -
30 September
2023
Net (loss)/profit for the period
attributable to equity holders of the
parent
Weighted average number of
ordinary shares with a nominal
(1,422,492,842) 4,404,357,918 (1,916,209,325) (436,913,325)
value of TRY1.00 47,000,000 47,000,000 47,000,000 47,000,000
(30.27) 93.71 (40.77) (9.30)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS

Credit risk

The Company's principal financial instruments are cash and cash equivalents and other receivables. The main purpose of these financial instruments is to raise finance for the Company's operations. The Company has various other financial instruments such as trade debtors and other debtors, which arise directly from its operations. The main risks arising from the Company's financial instruments are interest rate risk, liquidity risk, foreign currency risk and credit risk. The Company management analyses each of the risks summarised below and develops the following policies.

Credit risks exposed by types of financial instruments:

Receivables
Trade Receivables Other Receivables Bank
30 September 2024 Related parties Third parties Related parties Third parties Deposits
Maximum amount of credit risk
exposed as of reporting date
(A+B+C+D) -- -- 1,123,029,382 3,110,283 114,383,676
- The part of maximum credit
risk covered with guarantees -- -- -- -- --
A. Net book value of financial
assets not due or not impaired -- -- 1,123,029,382 3,110,283 114,383,676
B. Net Book value of financial
assets of which conditions are
negotiated, otherwise considered
as impaired or overdue -- -- -- -- --
C. Net book value of assets past
due but not impaired -- -- -- -- --
- The part secured with collateral
etc. -- -- -- -- --
D. Net book value of assets
impaired -- -- -- -- --
- Past due amount (gross book
value) -- -- -- -- --
- Impairment amount (-) -- -- -- -- --
- The part of net value under
guarantee with collaterals, etc. -- -- -- -- --

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Credit risk (Continued)

Receivables
Trade Receivables Other Receivables Bank
31 December 2023 Related parties Third parties Related parties Third parties Deposits
Maximum amount of credit risk
exposed as of reporting date
(A+B+C+D) -- -- 1,188,612,401 -- 354,331,825
- The part of maximum credit
risk covered with guarantees -- -- -- -- --
A. Net book value of financial
assets not due or not impaired -- -- 1,188,612,401 -- 354,331,825
B. Net Book value of financial
assets of which conditions are
negotiated, otherwise considered
as impaired or overdue -- -- -- -- --
C. Net book value of assets past
due but not impaired -- -- -- -- --
- The part secured with collateral
etc. -- -- -- -- --
D. Net book value of assets
impaired -- -- -- -- --
- Past due amount (gross book
value) -- -- -- -- --
- Impairment amount (-) -- -- -- -- --
- The part of net value under
guarantee with collaterals, etc. -- -- -- -- --

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Liquidity risk

Liquidity risk is the possibility that the Company will not meet its net toning obligations. The occurrence of events that result in a decrease in fund resources, such as deterioration in the markets or a decrease in the credit score, causes the liquidity risk to occur. The Company management manages the liquidity risk by allocating funds and keeping sufficient cash and similar resources to fulfill the position its current and potential liabilities. The Company's liquidity risk as of 30 September 2024 and 31 December 2023 are as follows:

30 September 2024
Maturity Terms Book
value
Total cash
outflows
(I+II+III+IV)
Less than
3 months (I)
3 - 12
months
(II)
1 - 5
years
(III)
More
than
5 years
(IV)
Non-derivative financial liabilities
Financial borrowings 35,804,223 35,804,223 35,804,223 -- -- --
Trade payables 8,555,333 8,555,333 8,555,333 -- -- --
Other payables 350,284,570 350,284,570 350,284,570 -- -- --
Total 394,644,126 394,644,126 394,644,126 -- -- --
31 December 2023
Maturity Terms Book
value
Total cash
outflows
(I+II+III+IV)
Less than
3 months (I)
3 - 12
months
(II)
1 - 5
years
(III)
More
than
5 years
(IV)
Non-derivative financial liabilities
Trade payables 12,594,652 12,594,652 12,594,652 -- -- --
Other payables 311,840,809 311,840,809 311,840,809 -- -- --
Total 324,435,461 324,435,461 324,435,461 -- -- --

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Currency risk management

The Company is exposed to foreign currency risk arising from exchange rate changes, since the amounts in foreign currency borrowed or creditor are converted into Turkish lira. The said foreign currency risk is followed by analysing the foreign currency position.

The foreign currency position table of the Company, expressed in Turkish Lira, is as follows.

30 September 2024
TRY
Equivalent
USD EUR
1. Trade receivables -- -- --
2a. Monetary financial assets (Cash, bank accounts included) 88,196 10 2,311
2b. Non-monetary financial assets -- -- --
3. Other 263,822,025 -- 6,939,398
4. Current assets (1+2+3) 263,910,221 10 6,941,709
5. Trade receivables -- -- --
6a. Monetary financial assets -- -- --
6b. Non-monetary financial assets -- -- --
7. Other -- -- --
8. Non-current assets (5+6+7) -- -- --
9. Total assets (4+8) 263,910,221 10 6,941,709
10. Trade payables -- -- --
11. Financial liabilities -- -- --
12a. Monetary other liabilities 4,162,361 121,709 350
12b. Non-monetary other liabilities
13. Short - term liabilities (10+11+12)
--
4,162,361
--
121,709
--
350
14. Trade payables -- -- --
15. Financial liabilities -- -- --
16a. Monetary other liabilities -- -- --
16b. Non-monetary other liabilities -- -- --
17. Long - term liabilities (14+15+16) -- -- --
18. Total liabilities (13+17) 4,162,361 121,709 350
19. Net assets/(liabilities) position of balance sheet
derivative instruments (19a-19b) -- -- --
19a. Amount of hedged assets -- -- --
19b. Amount of hedged liabilities -- -- --
20. Net foreign currency assets/(liabilities) position
(9-18+19) 259,747,860 (121,699) 6,941,359
21. Net foreign currency assets/(liabilities) position of
monetary items
(=1+2a+5+6a-10-11-12a-14-15-16a) (4,074,166) (121,699) 1,961
22. Total fair value of financial instruments used for foreign
currency hedging -- -- --
23. Amount of foreign currency denominated assets
hedged -- -- --
24. Amount of foreign currency denominated liabilities
hedged -- -- --
25. Export -- -- --
26. Import -- -- --

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Currency risk management (Continued)

31 December 2023
TRY
Equivalent
USD EUR
1. Trade receivables -- -- --
2a. Monetary financial assets (Cash, bank accounts included) 34,435 30 751
2b. Non-monetary financial assets -- -- --
3. Other 330,597,504 3,158 7,467,430
4. Current assets (1+2+3) 330,631,939 3,188 7,468,181
5. Trade receivables -- -- --
6a. Monetary financial assets -- -- --
6b. Non-monetary financial assets -- -- --
7. Other -- -- --
8. Non-current assets (5+6+7) -- -- --
9. Total assets (4+8) 330,631,939 3,188 7,468,181
10. Trade payables -- -- --
11. Financial liabilities -- -- --
12a. Monetary other liabilities 15,932 -- 360
12b. Non-monetary other liabilities -- -- --
13. Short - term liabilities (10+11+12) 15,932 -- 360
14. Trade payables -- -- --
15. Financial liabilities -- -- --
16a. Monetary other liabilities -- -- --
16b. Non-monetary other liabilities -- -- --
17. Long - term liabilities (14+15+16) -- -- --
18. Total liabilities (13+17) 15,932 -- 360
19. Net assets/(liabilities) position of balance sheet
derivative instruments (19a-19b)
-- -- --
19a. Amount of hedged assets -- -- --
19b. Amount of hedged liabilities -- -- --
20. Net foreign currency assets/(liabilities) position
(9-18+19)
21. Net foreign currency assets/(liabilities) position of
330,616,008 3,188 7,467,821
monetary items
(=1+2a+5+6a-10-11-12a-14-15-16a) 18,504 30 391
22. Total fair value of financial instruments used for foreign
currency hedging
-- -- --
23. Amount of foreign currency denominated assets
hedged
-- -- --
24. Amount of foreign currency denominated liabilities
hedged -- -- --
25. Export -- -- --
26. Import -- -- --

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Sensitivity to currency risk

The analysis is made with the assumption that the TRY depreciates or appreciates by 10% against the exchange rates and all variables such as interest rates are constant.

Currency risk sensitivity analysis table
30 September 2024
Profit/(Loss)
Equity
Appreciation
of foreign
currency
Depreciation of
foreign
currency
Appreciation
of foreign
currency
Depreciation of
foreign
currency
Change of USD by 10% against TRY
Asset/(liability) denominated in USD - net
The part hedged for USD risk (-)
(414,871)
--
414,871
--
(414,871)
--
414,871
--
USD Effect - net (414,871) 414,871 (414,871) 414,871
Change of EUR by 10% against TRY
Asset/(liability) denominated in EUR - net
The part hedged for EUR risk (-)
26,389,657
--
(26,389,657)
--
26,389,657
--
(26,389,657)
--
EUR Effect - net 26,389,657 (26,389,657) 26,389,657 (26,389,657)
Total 25,974,786 (25,974,786) 25,974,786 (25,974,786)
Currency risk sensitivity analysis table
31 December 2023
Profit/(Loss) Equity
Appreciation
of foreign
currency
Depreciation of
foreign
currency
Appreciation
of foreign
currency
Depreciatio
n of foreign
currency
Change of USD by 10% against TRY
Asset/(liability) denominated in USD - net
The part hedged for USD risk (-)
12,750
--
(12,750)
--
12,750
--
(12,750)
--
USD Effect - net 12,750 (12,750) 12,750 (12,750)
Change of EUR by 10% against TRY
Asset/(liability) denominated in EUR - net
The part hedged for EUR risk (-)
33,048,850 (33,048,850)
--
--
33,048,850
--
(33,048,850)
--
EUR Effect - net 33,048,850 (33,048,850) 33,048,850 (33,048,850)
Total 33,061,601 (33,061,601) 33,061,601 (33,061,601)

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued))

Capital risk management

The Company's objectives when managing capital are to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital using the debt/equity ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated by deducting cash and cash equivalents from total debt (which includes financial liabilities, trade payables and trade payables to related parties as shown in the balance sheet). Total capital is calculated by adding shareholders' equity and net debt, as shown in the balance sheet.

The Company's debt/equity ratios are as follows:

30 September 2024 31 December 2023
Total monetary liabilities 394,644,126 324,435,461
Less: Cash and cash equivalents (Note 4) (114,384,029) (354,332,306)
Net debt 280,260,097 --
Total equity 13,674,236,275 15,096,729,117
Net debt/equity ratio 0.02 0.00

Fair value of financial instruments

Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by quoted market price, if one exists.

The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies.

However, judgement is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange.

The following methods and assumptions were used to estimate the fair value of the financial instruments:

Monetary assets

Foreign currency balances are converted in Turkish Lira at the end of the period using the current foreign exchange buying rates. These balances are estimated to be close to the book value.

Given financial assets, including cash and cash equivalents, are movables with their cost values and it is estimated that their carrying values are approximately equal to their fair values due to their short term nature.

It is expected that the book values of trade receivables, together with the related doubtful receivables provisions, project the fair value.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Fair value of financial instruments (Continued)

Monetary liabilities

It is assumed that the book values of bank loans and other monetary liabilities are close to their fair values due to their short-term nature.

Fair values of long - term foreign currency loans are close to their book values. The fair values of longterm bank loans determined to be disclosed in the related notes are the value of the cash flows stipulated capital by the contract, discounted with the current market interest rate.

Fair value estimation

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data.

Level 3 Financial assets measured at fair

value through profit or loss (*) 2024
2023
1 January 18,489,572,301 11,177,615,885
Value increase (Note 15, 18) 150,391,855 4,624,651,450
Monetary (loss)/gain (3,650,896,878) (2,061,613,190)
Foreign exchange translation differences 1,540,047,706 4,765,551,711
Additions 5,408,647 10,282,454
capital increase 11,491,011 5,718,276
30 September 16,546,014,643 18,522,206,585

(*) Based on financial assets at fair value through profit or loss.

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Fair value of financial instruments (Continued)

Sensitivity analysis of financial investments valued with Level 3 method is as follows:

30 September 2024
Currency Discount
Rate (%)
Terminal
Growth
Rate (%)
Discount
Rate
Increases by
1%
Discount
Rate
Decreases by
1%
Terminal
Growth
Discount
Rate
Increases
by 1%
Terminal
Growth
Discount
Rate
Decreases
by 1%
Bin Ulaşım USD 11.80 2 318,231,477 416,712,778 404,936,571 327,322,112
Meta Mobilite USD 11.80 2 26,563,365 46,298,150 35,210,701 35,210,701
Algoritma USD 11.80 2 16,411,509 21,955,988 18,879,577 18,879,577
Go Sharing B.V. USD 11.80 2 73,137,020 106,745,403 87,879,535 87,879,535
Altay Yenilenebilir Enerji USD -- -- 366,895 366,895 366,895 366,895
1000 Pay USD -- -- -- -- -- --
İstanbul
Dijital
Taksi
Uygulamaları TRY 23.80 5 825,464,132 982,268,435 953,606,376 850,392,430
TOTAL 1,260,174,398 1,574,347,649 1,500,879,655 1,320,051,250
31 December 2023
------------------ --
Terminal Terminal
Growth Growth
Discount Discount Discount Discount
Terminal Rate Rate Rate Rate
Discount Growth Increases by Decreases by Increases Decreases
Currency Rate (%) Rate (%) 1% 1% by 1% by 1%
Bin Ulaşım USD 11.80 2 300,532,872 384,837,872 372,878,171 310,098,650
Meta Mobilite USD 11.80 2 51,693,666 85,984,185 81,320,654 55,375,382
Algoritma USD 11.80 2 19,547,035 25,365,633 24,468,258 20,269,907
Go Sharing B.V. USD 11.80 2 127,687,820 174,547,885 168,087,036 132,809,319
Altay Yenilenebilir Enerji USD -- -- 331,223 331,223 331,223 331,223
1000 Pay USD -- -- 188,990 188,990 188,990 188,990
TOTAL 499,981,606 671,255,788 647,274,332 519,073,471

Interest Rate Risk

30 September 2024 31 December 2023
Fixed interest rate financial instruments
Financial liabilities 394,644,126 324,435,461
394,644,126 324,435,461

Notes to the Condensed Financial Statements for the Interim Period Ended 30 September 2024 and 2023

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of the TRY at 30 September 2024 unless otherwise indicated.)

21. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (Continued)

Fair value of financial instruments (Continued)

30 September 2024 Financial
assets
presented at
amortized cost
Financial
liabilities
presented at
amortized cost
Financial assets
at fair value
through profit or
loss
Book value Note
Financial
Assets
Cash and cash
equivalents
Financial
114,384,029 -- -- 114,384,029 4
investments -- -- 16,546,014,643 16,546,014,643 5
Financial
Liabilities
Trade payables -- 8,555,333 -- 8,555,333 6
Other payables -- 350,284,570 -- 350,284,570 7
31 December 2023 Financial
assets
presented at
amortized cost
Financial
liabilities
presented at
amortized cost
Financial assets
at fair value
through profit or
loss
Book value Note
Financial
Assets
Cash and cash
equivalents
Financial
354,332,306 -- -- 354,332,306 4
investments
-- -- 18,489,572,302 18,489,572,302 5
Financial
Liabilities
Trade payables
Other payables
--
--
12,594,652
311,840,809
--
--
12,594,652
311,840,809
6
7

22. SUBSEQUENT EVENTS

Bin Ulaşım ve Akıllı Şehir Teknolojileri A.Ş., a subsidiary of the Company with 89% shares, was offered to the public on 9 October 2024 with the ticker symbol BINBN and the Company's share in the Company decreased to 75.22%.

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