AYDEM YENİLENEBİLİR ENERJİ A.Ş.

Interim / Quarterly Report • Jun 12, 2025

Interim Consolidated Financial Statements For the Period Ended 31 March 2025 and Independent Auditor's Review Report

REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL INFORMATION

To the General Assembly of Aydem Yenilenebilir Enerji Anonim Şirketi

Introduction

We have reviewed the accompanying consolidated interim statement of financial position of Aydem Yenilenebilir Enerji Anonim Şirketi (the "Company") and its subsidiaries (collectively referred to as the "Group") as at 31 March 2025 and the consolidated interim statements of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the three-month period then ended, and notes, comprising material accounting policy information and other explanatory information. The management of the Group is responsible for the preparation and fair presentation of this consolidated interim financial information in accordance with Turkish Accounting Standard 34 ("TAS 34") "Interim Financial Reporting". Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with the Standard on Review Engagements ("SRE") 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of consolidated interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information do not give a true and fair view of the financial position of Aydem Yenilenebilir Enerji Anonim Şirketi as at 31 March 2025, and its financial performance and cash flows for the three-month period then ended in accordance with TAS 34.

Other matter

The consolidated financial statements of the Group for the year ended 31 December 2024 were audited by another firm of auditors whose report, dated 11 March 2025, expressed an unmodified opinion on those statements.

The consolidated interim financial information of the Group for the three-month period then ended 31 March 2024 was reviewed by another firm of auditors whose report, dated 12 June 2025, expressed an unmodified conclusion on that financial information.

PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

Çağlar Sürücü, SMMM Independent Auditor

Istanbul, 12 June 2025

Güney Bağımsız Denetim ve SMMM A.Ş. Maslak Mah. Eski Büyükdere Cad. Orjin Maslak İş Merkezi No: 27 Daire: 57 34485 Sarıyer İstanbul - Türkiye

Tel: +90 212 315 3000 Fax: +90 212 230 8291 ey.com Ticaret Sicil No : 479920 Mersis No: 0-4350-3032-6000017

Report on Review of Interim Consolidated Financial Information

To the Board of Directors of Aydem Yenilenebilir Enerji Anonim Şirketi

Introduction

We have reviewed the accompanying interim consolidated statement of profit or loss and other comprehensive income of Aydem Yenilenebilir Enerji Anonim Şirketi ("the Company") and its subsidiaries ("the Group") for the three-months period ended March 31, 2024 and the interim consolidated statement of changes in equity and the consolidated statement cash flows and a summary of significant accounting policies and other explanatory notes for the three-months period then ended March 31, 2024 ("consolidated interim financial information"). Group management is responsible for the preparation and fair presentation of these interim consolidated financial information in accordance with Turkish Financial Reporting Standards. Our responsibility is to express a conclusion on these interim consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with the Standard on Review Engagements ("SRE") 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review of interim financial information is substantially less in scope than an audit conducted in accordance with Independent Auditing Standards. Consequently, a review of the interim financial information does not provide assurance that the audit firm will be aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial information do not present fairly, in all material respects, the Group's consolidated financial performance and its consolidated cash flows for the three-months period then ended March 31, 2024 in accordance with Turkish Financial Reporting Standards.

Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of Ernst & Young Global Limited

12 June 2025 İstanbul, Turkey

Contents

Interim Consolidated Statement of Financial Position Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income Interim Consolidated Statement of Changes in Equity Interim Consolidated Statement of Cash Flow Notes to the Interim Consolidated Financial Statements

Interim consolidated statement of financial position as at 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

		Reviewed	Audited
	Notes	31 March 2025	31 December 2024
ASSETS
Current assets:
Cash and cash equivalents	3	671,897,526	1,920,151,159
Financial investments	27	683,445,625	1,792,571,737
Trade receivables		3,051,737,014	3,479,814,427
- Due from related parties	5	508,947,342	3,446,785,224
- Due from third parties	6	2,542,789,672	33,029,203
Other receivables		165,038,264	170,671,831
- Due from related parties	5	120,462,068	120,812,491
- Due from third parties	7	44,576,196	49,859,340
Inventories	8	23,981,419	22,459,082
Prepaid expenses	26	85,530,630	117,849,963
Other current assets	13.1	57,726	172,628
Total current assets		4,681,688,204	7,503,690,827
Non-current assets:
Other receivables		5,382,665	5,939,719
- Due from third parties	7	5,382,665	5,939,719
Property, plant and equipment	9.1	50,736,375,376	51,238,313,233
Right of use assets	9.2	351,190,305	369,239,207
Intangible assets	10	2,606,352,870	2,624,138,362
Prepaid expenses	26	318,765,214	317,228,485
Other non-current assets	13.2	13,592,622	40,584,094
Total non-current assets		54,031,659,052	54,595,443,100
Total assets		58,713,347,256	62,099,133,927

Interim consolidated statement of financial position as at 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

		Reviewed	Audited
	Notes	31 March 2025	31 December 2024
LIABILITIES
Current liabilities:
Short-term portion of long-term financial liabilities	23.1	6,454,224,729	6,975,576,606
Lease liabilities	23.2	32,958,484	35,473,449
Trade payables		121,368,767	252,539,778
- Due to related parties	5	27,472,546	46,471,221
- Due to third parties	6	93,896,221	206,068,557
Liabilities for employee benefits	12	33,499,961	13,779,926
Other payables		265,351	260,563
- Due to related third parties	7	29,642	-
-Due to third parties		235,709	260,563
Current provisions		74,389,846	113,039,386
- Provisions for employee benefits	11.1	58,424,368	95,978,959
- Other short-term provisions	11.1	15,965,478	17,060,427
Other current liabilities	13.3	154,805,984	119,274,674
Total current liabilities		6,871,513,122	7,509,944,382
Non-current liabilities:
Financial liabilities	23.1	16,513,306,138	19,765,949,060
Lease liabilities	23.2	35,018,098	46,564,665
Non-current provisions		132,097,193	97,410,465
- Provisions for employee benefits	11.4	132,097,193	97,410,465
Deferred tax liabilities	22	4,659,252,261	4,560,504,019
Total non-current liabilities		21,339,673,690	24,470,428,209
Total liabilities		28,211,186,812	31,980,372,591

Interim consolidated statement of financial position as at 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

		Reviewed	Audited
	Notes	31 March 2025	31 December 2024
EQUITY
Equity attributable to holders of the parent:
Paid-in capital	14	705,000,000	705,000,000
Adjustment to share capital	14	7,292,125,068	7,292,125,068
Share premiums	14	838,332,685	838,332,685
Treasury shares	14	(186,216,737)	(186,216,737)
Restricted reserves	14	261,897,358	261,897,358
Other comprehensive income that will not be
reclassified to profit or loss in subsequent periods		104,982,961	111,030,155
- Gains on revaluation of property, plant and
equipment		212,263,889	215,791,072
- Actuarial losses on defined benefit plans		(107,280,928)	(104,760,917)
Other comprehensive income that may be
reclassified to loss or profit it subsequent periods		(19,289,971,906)	(19,514,720,310)
- Reserve of losses on cash flow hedge		(19,289,971,906)	(19,514,720,310)
Retained earnings		40,614,840,300	53,566,007,119
Net profit/(loss) for the period		161,170,715	(12,954,694,002)
Equity attributable to equity holders of the parent		30,502,160,444	30,118,761,336
Total equity		30,502,160,444	30,118,761,336
Total equity and liabilities		58,713,347,256	62,099,133,927

Interim consolidated statement of profit or loss and other comprehensive income for the three-months period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

		Reviewed	Reviewed
		1 January –	1 January –
	Notes	31 March 2025	31 March 2024
LOSS OR PROFIT STATEMENT
Revenue	15	3,488,833,903	2,361,896,306
Cost of sales	16	(2,901,681,072)	(1,424,666,409)
Gross profit		587,152,831	937,229,897
General administrative expenses	17	(206,220,023)	(176,434,957)
Other operating income	19	191,224,876	415,342,984
Other operating expenses	19	(8,279,797)	(41,681,274)
Operating profit		563,877,887	1,134,456,650
Income from investing activities	21	50,155,142	3,121,413
Expense from investing activities	21	-	(434,471)
Profit before finance income/(expense)		614,033,029	1,137,143,592
Finance income	20	140,850,552	341,501,115
Finance expenses	20	(2,406,482,934)	(2,992,481,439)
Gains/(losses) on net monetary position	28	1,837,442,179	3,353,661,724
Gain before tax		185,842,826	1,839,824,992
Tax expense		(24,672,111)	(944,639,879)
- Deferred tax income/(expenses)	22	(24,672,111)	(944,639,879)
Net profit for the period		161,170,715	895,185,113
Gain attributable to
Equity holders of the parent		161,170,715	895,185,113
Gain earnings per share
- Gain earnings per share	25	0.23	1.28
OTHER COMPREHENSIVE INCOME/(LOSS)
STATEMENT
Other comprehensive income that will not be
reclassified to profit or loss		(2,520,011)	(18,206,660)
- Actuarial losses on defined benefit plans	11.4	(3,360,015)	(24,275,547)
- Total tax on remeasurement losses on defined benefit
plans		840,004	6,068,887
Other comprehensive income that will be
reclassified to profit or loss		224,748,404	(339,155,740)
- Reserve of gains or losses on cash flow hedge	23.1	299,664,539	(452,207,653)
- Tax related to other comprehensive income that will
be reclassified to profit or loss		(74,916,135)	113,051,913
Other comprehensive income/(loss)		222,228,393	(357,362,400)
Total comprehensive income/(loss)		383,399,108	537,822,713

Interim consolidated statement changes in equity for the three-months period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

						Other comprehensive income (loss) or profit	that will not be reclassified to	Other comprehensive income that will be reclassified to
	Paid-in	Adjustment to	Share	Treasury	Restricted	Gains on revaluation of property, plant and equipment	Actuarial (loss)/gain on defined benefit plans	(loss) or profit Reserve of (losses)/gains on	Retained	Net profit/ (loss) for the period
Balance as of 1 January 2024	capital 705,000,000	share capital 7,292,125,068	premiums 838,332,685	shares (189,883,869)	reserves 219,155,336	2,225,851,412	(92,879,883)	cash flow hedge (19,419,349,372)	earnings 55,936,313,894	(2,034,172,824)	Total equity 45,480,492,447
Transfers Net profit/(loss) for the period Other comprehensive income/(loss)	- - -	- - -	- - -	- - -	- - -	- - -	- - (18,206,660)	- - (339,155,740)	(2,034,172,824) - -	2,034,172,824 895,185,113 -	- 895,185,113 (357,362,400)
Total comprehensive income/(loss)	-	-	-	-	-	-	(18,206,660)	(339,155,740)	-	895,185,113	537,822,713
Depreciation transfers related to revaluation of property, plant and equipment	-	-	-	-	-	(32,520,845)	-	-	32,520,845	-	-
Balance as of 31 March 2024	705,000,000	7,292,125,068	838,332,685	(189,883,869)	219,155,336	2,193,330,567	(111,086,543)	(19,758,505,112)	53,934,661,915	895,185,113	46,018,315,160
Balance as of 1 January 2025	705,000,000	7,292,125,068	838,332,685	(186,216,737)	261,897,358	215,791,072	(104,760,917)	(19,514,720,310)	53,566,007,119	(12,954,694,002)	30,118,761,336
Transfers Net profit/(loss) for the period Other comprehensive income/(loss)	- - -	- - -	- - -	- - -	- - -	- - -	- - (2,520,011)	- - 224,748,404	(12,954,694,002) - -	12,954,694,002 161,170,715 -	- 161,170,715 222,228,393
Total comprehensive income/(loss)	-	-	-	-	-	-	(2,520,011)	224,748,404	-	161,170,715	383,399,108
Depreciation transfers related to revaluation of property, plant and equipment	-	-	-	-	-	(3,527,183)	-	-	3,527,183	-	-
Balance as of 31 March 2025	705,000,000	7,292,125,068	838,332,685	(186,216,737)	261,897,358	212,263,889	(107,280,928)	(19,289,971,906)	40,614,840,300	161,170,715	30,502,160,444

Interim consolidated statement of cash flows for the three-months period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

		Reviewed	Reviewed
		1 January	1 January
	Notes	31 March 2025	31 March 2024
A, CASH FLOWS FROM OPERATING ACTIVITIES		1,850,130,791	3,252,542,650
Net profit for the period		161,170,715	895,185,113
Net profit for the period adjustment to reconcile		686,887,118	631,172,211
Adjustment related to amortization and depreciation	9, 10	580,174,310	825,790,753
Adjustment related to other provisions	6	(14,306)	(27,715)
Adjustment related to provisions for employee benefits	11	12,900,265	2,437,000
Adjustment related to provisions for litigations	11	474,743	-
Adjustment related to income of interest	20, 21	(66,391,721)	(144,462,816)
Adjustment related to expense of interest	23	419,961,597	631,214,314
Adjustment related to tax income / expense	22	24,672,111	944,639,879
Adjustment related to unrealized foreign exchange loss	23.1	1,972,038,530	2,352,315,875
Adjustment related to gains of sales of tangible and intangible assets, net		-	434,471
Adjustment to related party to interest incomes / expenses from related
parties	20	(37,206,659)	(34,888,128)
Adjustments related to fair value gain		(1,210,382)	-
Monetary gains/(losses) on net monetary position		(2,218,511,370)	(3,946,281,422)
Changes in working capital		1,003,431,422	1,728,856,043
Increase/decrease in financial investments		551,490,660	628,218,801
Increase/decrease in trade receivables from third parties		(2,509,746,163)	(32,431,189)
Increase/decrease in trade receivables from related parties		2,975,044,541	606,461,091
Increase/decrease in other receivables		64,079,599	910,716,905
Increase/decrease in inventories		(1,522,337)	1,967,043
Increase/decrease in trade payables to third parties		(112,172,336)	(327,238,776)
Increase/decrease in trade payables to related parties		(18,998,675)	2,214,053
Increase/decrease in other liabilities		35,536,098	(67,491,294)
Increase/decrease in liabilities for employee benefits		19,720,035	6,439,409
Payments related to provisions for employee benefits	11.4	(1,358,464)	(2,670,717)
B, CASH FLOWS FROM INVESTING ACTIVITIES		497,059,651	121,389,948
Interest received		66,391,721	144,462,816
Inflow related to sales of tangible assets	9, 21	467,073	74,699,115
Outflow related to purchase of tangible and intangible assets		(41,044,425)	(128,565,824)
Cash inflows arising from acquisition of shares or debt instruments of other businesses
or funds		4,697,807,526	220,653,384
Cash outflows arising from acquisition of shares or debt instruments of other businesses or funds		(4,226,562,244)	(189,859,543)
C, CASH FLOWS FROM FINANCING ACTIVITIES		(3,443,707,098)	(1,140,601,888)
Cash outflow for borrowings	23.1	(2,470,114,553)	-
Cash outflow related to lease liabilities		(16,423,156)	(12,724,836)
Interest paid	23.2	(957,169,389)	(1,127,877,052)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	23.1
(A+B+C)		(1,096,516,656)	2,233,330,710
D, EFFECT OF NET MONETARY POSITION DIFFERENCES GAINS (LOSSES) ON CASH AND CASH EQUIVALENTS		(151,736,977)	(377,144,624)
E, CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD		1,920,151,159	2,214,130,738
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
(A+B+C+D+E)		671,897,526	4,070,316,824

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

1 Organization and nature of operations of the Group

Aydem Yenilenebilir Enerji Anonim Şirketi ("Aydem Yenilenebilir" or "the Company") was established on 6 July 1995 as Bereket Enerji Üretim Otoprodüktör Grubu Sanayi ve Ticaret Anonim Şirketi. The Company first changed its corporate name to Bereket Enerji Üretim Anonim Şirketi on 21 May 2004 and then on 27 December 2019, the Company changed again its corporate name to Aydem Yenilenebilir Enerji Anonim Şirketi. In 2019, the Company has been restructured in a way that it operates solely in renewable energy generation business. In relation to the restructuring process, Aydem Yenilenebilir has merged with all of its subsidiaries which are operating in renewable energy generation business and disposed the non-relevant operations and subsidiaries and became a pure renewable energy generation Company, The shares of the Company has started to be traded on Borsa Istanbul as of 29 April 2021.

In these consolidated financial statements, Aydem Yenilenebilir, its subsidiaries and its associate are referred to together as "the Group".

Aydem Yenilenebilir generates electricity from local renewable sources. The Group installed its first hydroelectric power plant ("HPP") on the Bereket Çayı stream and continues to generate electricity with hydro, wind ("WPP"), solar power plant ("SPP") and geothermal ("GPP") in different regions of the country.

The address of the registered office of the Company is as follows:

Adalet Mah, Hasan Gönüllü Bulvarı No:15/1 Merkezefendi, Denizli,

As of 31 March 2025 and 31 December 2024, the Group's subsidiaries ("subsidiaries") and their main business activities are as follows:

			Ownership Percentage
Subsidiaries	Location	Main Activities	31 March 2025	31 December 2024
Ey-Tur Enerji Elektrik Üretim ve Ticaret Ltd, Şti, ("Ey-tur") /HPP Kağızman/Kars		Electricity generation by hydropower	100%	100%
Başat Elektrik Üretim ve Ticaret Ltd, Şti, ("Başat") / HPP		Üzümlü/Erzincan Electricity generation by hydropower	100%	100%
Sarı Perakende Enerji Satış ve Ticaret A,Ş, ("Sarı Perakende")	İzmir	Trading of electricity	100%	100%
Akköprü Yenilenebilir Enerji A,Ş, ("Akköprü HPP")	Muğla	Electricity generation by hydropower	100%	100%

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

1 Organization and nature of operations of the Group (continued)

As of 31 March 2025, and 31 December 2024, the number of employees of the Company and its subsidiaries and its associate are as shown in the table below:

The Company and its subsidiaries	31 March 2025	31 December 2024
Aydem Yenilenebilir	550	553
Sarı Perakende	-	-
Ey-Tur	-	-
Başat	-	-
Akköprü	-	-
Total	550	553

Laws and regulations affecting the business activities

The Group is subject to the regulation and board decisions communiques issued by the Energy Market Regulatory Authority (EMRA) and obliged to carry out electricity generation and sales activities in accordance with the Electricity Market Law No. 6446 dated 14 March 2013 which entered into force with the Official Gazette No.28603 dated 30 March 2013.

List of shareholders

As of 31 March 2025, and 31 December 2024, the composition of shareholders and their respective percentage of ownership can be summarized as follows:

		31 March 2025	31 December 2024
Shareholders	TL	%	TL	%
Aydem Enerji Yatırımları A.Ş.*	574,975,680	81.56	574,975,680	81.56
Publicly traded	130,000,000	18.44	130,000,000	18.44
Others	24,320	0.00	24,320	0.00
Total paid in capital	705,000,000	100	705,000,000	100
Adjustment to share capital **	7,292,125,068		7,292,125,068
Total capital	7,997,125,068		7,997,125,068

* Aydem Enerji Yatırımları A.Ş. is controlled by Aydem Holding A.Ş.

** Adjustment to share capital represents the restatement effect of cash and cash equivalent contributions to share capital restated for the effects of inflation. Adjustment to share capital is not available for any other use except to be added to share capital.

As of 29 April 2021, the Company started to be traded on Borsa Istanbul - Star Market.

Approval of consolidated financial statements:

Consolidated financial statements prepared as of 31 March 2025 were approved for publication by the Board of Directors on 12 June 2025. The General Assembly have the right to amend the consolidated financial statements.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements

2.1 Basic principles of presentation

The accompanying consolidated financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, no: 14.1 "Basis of Financial Reporting in Capital Markets", which was published in the Official Gazette No: 28676 on 13 June 2013. The accompanying consolidated financial statements have been prepared in accordance with Turkish Financial Reporting Standards ("TFRS") and interpretations regarding these standards that have been put into effect by Public Oversight Accounting and Auditing Standards Authority of Türkiye ("POA") under Article 5 of the Communiqué. TFRS is updated through communiqués to be in line with the changes in International Financial Reporting Standards ("IFRS").

The interim consolidated financial statements have been prepared in accordance with the formats stated in "Announcement regarding to TAS Taxonomy" which was published on 4 July 2024 by POA. Group's interim consolidated financial statements for the period ended 31 March 2025 have been prepared in accordance with the TAS 34 Interim Financial Reporting ("TAS 34"). Interim financial information does not include all the information and disclosures required to be included in the annual financial statements. In addition, significant accounting policies and significant accounting estimates and assumptions used in the preparation of the interim consolidated financial statement for the three months period ended 31 March 2025 are consistent with consolidated financial statements as at 31 December 2024. Therefore, the interim consolidated financial statements should be read and evaluated together with the annual financial statements prepared by the Group as of 31 December 2024.

Financial reporting in hyperinflationary economy

In accordance with the announcement made by the Public Oversight, Accounting and Auditing Standards Authority (POA) on November 23, 2023, and the decision of the Capital Markets Board (CMB) dated December 28, 2023 and numbered 81/1820, inflation accounting has been implemented as of December 31, 2023, in line with Turkish Accounting Standard 29 (TAS 29) – Financial Reporting in Hyperinflationary Economies.

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 Group has therefore presented its consolidated financial statements as of December 31, 2024 and March 31, 2024 on the purchasing power basis as of March 31, 2025.

Pursuant to the decision of the Capital Markets Board (CMB) dated December 28, 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 December 31, 2023.

The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Türkiye published by the Turkish Statistical Institute (TÜİK). As of March 31, 2025, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.1 Basic principles of presentation (continued)

Financial reporting in hyperinflationary economy (continued)

Year-end	Index	Adjustment coefficient Three-year cumulative
			inflation rates
31 March 2025	2,954.69	1.00000	250%
31 December 2024	2,684.55	1.10063	291%
31 March 2024	2,139.47	1.38104	309%

Assets and liabilities were separated into those that were monetary and non–monetary, with non– monetary items were further divided into those measured on either a current or historical basis to perform the required restatement of financial statements under TAS 29. Monetary items (other than index -linked monetary items) and non-monetary items carried at amounts current at the end of the reporting period were not restated because they are already expressed in terms of measuring unit as of 31 March 2025. Nonmonetary items which are not expressed in terms of measuring unit as of 31 March 2025 were restated by applying the conversion factors. The restated amount of a non-monetary item was reduced, in accordance with appropriate TFRSs, in cases where it exceeds its recoverable amount or net realizable value. Components of shareholders' equity in the statement of financial position and all items in the statement of profit or loss and other comprehensive income have also been restated by applying the conversion factors.

Non-monetary items measured at historical cost that were acquired or assumed and components of shareholders' equity that were contributed or arose before the time when the Turkish lira previously ceased to be considered currency of hyperinflationary economy, i.e. before 1 January 2005, were restated by applying the change in the CPI from 1 January 2005 to 31 March 2025.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.1 Basic principles of presentation (continued)

Financial reporting in hyperinflationary economy (continued)

The application of TAS 29 results in an adjustment for the loss of purchasing power of the Turkish lira presented in Net Monetary Position Gains (Losses) item in the profit or loss section of the statement of profit or loss and comprehensive income. In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. This gain or loss on the net monetary position is derived as the difference resulting from the restatement of non-monetary items, owners' equity and items in the statement of profit or loss and other comprehensive income and the adjustment of index linked assets and liabilities.

In addition, in the first reporting period in which TAS 29 is applied, the requirements of the Standard are applied as if the economy had always been hyperinflationary. Therefore, the statement of financial position at the beginning of the earliest comparative period, i.e. as of 1 January 2022, was restated as the base of all subsequent reporting. Restated retained earnings/losses in the statement of financial position as of 1 January 2022 was derived as balancing figure in the restated statement of financial position.

As with the statement of profit or loss, all items in the statement of other comprehensive income are presented in the measurement unit current at the balance sheet date. Therefore, all amounts are restated by applying changes in the general price index from the dates when the related income and expense items were initially recognized in the financial statements. The effects of inflation accounting on cash flow hedge gains/(losses) are transferred to retained earnings at the earlier of when the inflation accounting practice is discontinued or when the hedge accounting ceases. Similarly, all items in the statement of cash flows are expressed in the current measurement unit as of the balance sheet date.

2.2 Functional and presentation currency

The Group has presented its consolidated financial statements in TL, which is the functional currency of the Company and its subsidiaries as well as its associate.

The preparation of the Group's interim consolidated financial statements, transactions in foreign currencies (currencies other than TL) are recorded based on the exchange rates on the transaction date. Monetary assets and liabilities indexed to foreign currency in the consolidated statement of financial position are translated into TL using the exchange rates valid on the date of the statement of financial position. Non-monetary items recorded in foreign currency that are monitored at fair value are translated into TL using the exchange rates on the date the fair value is determined. Non-monetary items in foreign currency measured in terms of historical cost are not subject to re-translation. Income or expense arising from the adjustments or translations of items in foreign currency are included in the statement of profit or loss and other comprehensive income.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.3 Basis of consolidation

Consolidated financial statements include the financial statements of the company and its subsidiaries as of 31 March 2025. Subsidiaries are companies over which the Group has direct or indirect control over their operations. Control is provided if the Group meets the following conditions:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)

• Exposure, or rights, to variable returns from its involvement with the investee
• The ability to use its power over the investee to affect its returns

If a situation or event occurs that could cause a change in at least one of the criteria listed above, the Group re-evaluates whether it has control over its investment.

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

• The contractual arrangement(s) with the other vote holders of the investee.
• Rights arising from other contractual arrangements.
• The Group's voting rights and potential voting rights.

• Events and conditions that may indicate whether the Group has the power to decide on management of operations (including voting at previous general assembly meetings).

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.3 Basis of Consolidation (continued)

i) Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquire. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of TFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in accordance with TFRS 9. Other contingent consideration that is not within the scope of TFRS 9 is measured at fair value at each reporting.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss.

ii) Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.3 Basis of consolidation (continued)

iii) Associates

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. Associates are accounted for equity method in the consolidated financial statements. Under equity method, investment in an associate is initially recognised at cost. After initial recognition, Group's share of the profit or loss of the investee, is recorded to the financial statements by increasing or decreasing the net book value. Group's share of the profit or loss and other comprehensive income of equity-accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.

In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate or joint venture.

When the Group's share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, including any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.

The aggregate of the Group's share of profit or loss of an associate is shown on the face of the statement of profit or loss within operating profit when the associate's main course of business is renewable energy generation and represents profit or loss after tax.

The financial statements of the associate are prepared for the same reporting period as the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognises the loss within "Share of profit of an associate" in the statement of profit or loss.

iv) Non-controlling interests

For each business combination, the Group elects to measure any non-controlling interests in the acquiree either:

• at fair value; or
• at their proportionate share of the acquiree's identifiable net assets, which are generally at fair value.

Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.3 Basis of consolidation (continued)

v) Partial share purchase and sale transactions with non-controlling interests

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners in their capacity as owners. Accordingly, in the case of additional share purchases from and sales to non-controlling interests, the difference between the acquisition cost and the carrying amount of the net assets of the subsidiary in proportion to the acquired interest is recognized in equity. No adjustments are made to goodwill and no gain or loss is recognised in profit or loss.

vi) Acquisition of companies under common control

For the accounting of business combinations under common control, assets and liabilities subject to business combination are included in the consolidated financial statements with carrying values of historical TFRS financial statements, which were prepared for the purpose of consolidation of the ultimate parents' consolidated financial statements. The financial statements of the acquired entities have been consolidated from the beginning of the financial year in which the business combination occurs. Prior period financial statements have been restated in the same manner for comparability purposes. As a result of these transactions, no goodwill or negative goodwill has been calculated. Any difference between the consideration paid and the share capital of the acquired entity are accounted under equity as "Share Premium / Discount".

vii) Eliminations

During the preparation of the consolidated financial statements, unrealized gains and losses arising from intra-group transactions between entities included in the consolidated financial statements, intra-group balances and intra-group transactions are eliminated. Gains and losses arising from the transactions between the associate and the parent company and the consolidated subsidiaries of the parent company and jointly controlled entities are offset against the parent company's interest in the associate. Unrealized losses are eliminated in the same manner as unrealized gains, unless there is evidence of impairment.

viii) Loss of control

Upon the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any noncontrolling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.4 Going concern

The Group has prepared consolidated financial statements on a going concern basis and does not expect any significant risks to this assumption.

The Group's EBITDA for the periods ended 31 March 2025 and 2024 amounts to TL 1,144,052,197 and TL 1,960,247,403, respectively (Note 4.3). The Group's net profit for the same periods are TL 161,170,715 and TL 895,185,113, respectively. As of 31 March 2025, the Group's short-term liabilities exceed its current assets by TL 2,189,824,918 (31 December 2024: TL 6,253,555), primarily due to the short-term maturities of the long-term loan, amounting to TL 3,341,622,506 due August 2025 and TL 3,112,602,223 million due February 2026 (Not 23.1).

The Group is expecting to cover a large portion of bond liabilities with cash generated from operations. The Group is in the process of preparing to refinance its outstanding Eurobond debt in this year in order to provide longer term funding. The Group also plans to support growth investments with refinancing.

The fact that a portion of the Group's electricity sales are guaranteed prices in USD under the Feed in Tariff Mechanism ("YEKDEM") positively impacts gross profitability. Moreover, the exchange rate losses arising from the foreign currency loans of companies operating under the feed‐in tariff ("FIT") are largely offset by their foreign currency-indexed revenues.

On 18 April 2025, the Ministry of Energy and Natural Resources (MENR) officially approved the 6 MW portion of the Group's 36 MW capacity increase project for the Uşak region Wind Power Plant (WPP). Accordingly, as of that date, the Group's total installed capacity has increased from 1,180 MW to 1,186 MW. Approval for the remaining 30 MW is expected by the end of the year. These capacity enhancements are anticipated to have a favourable impact on the Group's cash flows.

2.5 Comparative information and restatement of prior period financial statements

The accompanying consolidated financial statements are prepared comparatively to present the tendency in the financial position, financial performance and cash flows of the Group. If necessary, in order to meet the consistency with the presentation of the financial statements in the current period, comparative information is reclassified and material differences are explained in related notes. As of 31 March 2024, due to a classification error in the application of TAS 29, the Group had recognized its tax expense in the amount of TL 2,105,549,889 to monetary gain/loss. Accordingly, such amount was reclassified in interim consolidated financial statements.

As of March 31, 2024, Foreign exchange income/expense arising from operating activities were presented on a net basis under "Other Operating Income." However, as of March 31, 2025, the Group has opted to present these amounts on a gross basis. Accordingly, due to this change in presentation, the Foreign exchange expense arising from operating activities amounting to TRY 40,821,894 which was previously presented on a net basis under "Other Operating Income" in the comparative financial statements as of March 31, 2024, has been reclassified under "Other Operating Expenses."

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.6 The new standards, amendments and interpretations

The accounting policies adopted in preparation of the consolidated financial statements as of 31 March 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2025 and thereafter. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.

i) Standards, amendments, and interpretations applicable as of 31 March 2025:

Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.

The amendments did not have a significant impact on the financial position or performance of the Group.

ii) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025:

Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments;

effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:

• clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
• make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).

The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

Annual improvements to TFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted), Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:

• TFRS 1 First-time Adoption of International Financial Reporting Standards;
• TFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing
• TFRS 9 Financial Instruments;
• TFRS 10 Consolidated Financial Statements; and
• TAS 7 Statement of Cash Flows.

The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.6 The new standards, amendments and interpretations (continued)

Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.

The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

• the structure of the statement of profit or loss;
• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and
• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries, A subsidiary is eligible if:

• it does not have public accountability; and
• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.7 Summary of significant accounting policies

Related parties

A related party is a person or entity that is related to the entity that is preparing its financial statements,

a) A person or a close member of that person's family is related to a reporting entity if that person:

• i. has control or joint control over the reporting entity,
• ii. has significant influence over the reporting entity,

iii. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

b) An entity is related to a reporting entity if any of the following conditions applies:

• i. The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
• ii.One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
• iii. Both entities are joint ventures of the same third party.
• iv. One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
• v. The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
• vi. The entity is controlled or jointly controlled by a person identified in (a).
• vii. A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.7 Summary of significant accounting policies (continued)

Property, plant and equipment

Accounting and measurement

The Group, has adopted the revaluation method in accordance with TAS 16 for its entire power plants, Power plants are measured at fair value less accumulated depreciation and impairment losses recognised after the date of revaluation. Other tangible assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Construction in progress is also stated at cost, net of accumulated impairment losses, if any. An investment in a power plant is classified as construction in progress during the physical construction process; when completed, it is transferred to the power plant class (Note 9.1) and recognized at fair value.

The frequency of revaluations depends on the changes in the fair values of property, plant and equipment subject to revaluation. The Group revalued the property, plant and equipment consisting of the power plant as of 31 December 2024 and performed a detailed impairment analysis as of 31 March 2025. The Renewable Energy Group consist of power plants below:

Çırakdamı HPP, Dereli HPP, Bereket I-II HPP, Dalaman I-V HPP, Gökyar HPP, Feslek HPP, Koyulhisar HPP, Mentaş HPP, Toros HPP, Göktaş I-II HPP, Aksu HPP, Akıncı HPP, Uşak WPP, Yalova WPP, Söke WPP and Uşak SPP.

A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss, the increase is recognised in profit and loss. A revaluation deficit is recognised in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognised in the asset revaluation surplus.

An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset's original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred to retained earnings.

Depreciation is calculated using the straight-line method over property, plant and equipment. Land is not depreciated on the basis that it has an indefinite life. Purchase costs are accounted by separating the land and building components in the purchases of buildings, including land.

The estimated useful lives of the significant property, plant and equipment as of 31 March 2025 are as follows:

Years

Power plants 20-49

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognised.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.7 Summary of significant accounting policies (continued)

Property, plant and equipment (continued)

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate. Repair and maintenance costs are recognised in profit or loss as incurred.

A class of power plant is a grouping of assets of a similar nature and used in an entity's operations and contains land, buildings, machinery and equipment, furniture and fixtures.

Expenses for the repair of property, plant and equipment are normally charged as expense. They are, however, capitalized if they result in an enlargement or substantial improvement of the respective assets.

Intangible assets

Accounting and measurement

Intangible assets acquired by the Group with a finite useful life are measured at acquisition cost less accumulated amortization and any permanent impairment losses.

Right to operate licences

The Adıgüzel HPP and Kemer HPP operating licences which has been obtained through Transfer of Operating Rights Agreement ("Agreement") with the Privatization Administration and the Electricity Generation Corporation ("EÜAŞ") are accounted as intangible assets.

Computer software

Computer software are recognized at acquisition cost and amortized on a straight-line basis over their estimated useful lives of 3-15 years. Where an indication of impairment exists, the carrying amount of any intangible assets is assessed and written down immediately to its recoverable amount.

Subsequent costs

Subsequent costs are capitalized only if they have an impact that increases the future economic benefits of the intangible assets to which they relate. All other expenditures are recognized in profit or loss when incurred.

Amortization

Intangible assets are recognized in profit or loss on a straight-line basis over their estimated useful lives starting from the date they are ready for use. The estimated useful lives for the current and comparative periods are valid until the end of the license terms.

Amortization methods, useful lives and residual values are reviewed at each reporting date and, where appropriate, adjusted.

The estimated useful lives in the current periods are as follows:

	Years
Right to operate licences	12-49
Computer software	3-15

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.7 Summary of significant accounting policies (continued)

Financial liabilities

Non-derivative financial liabilities of the Group comprised of "borrowings", "trade payables" and "other payables" in the statement of financial position.

i. Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. Borrowings are derecognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired.

ii. Borrowing costs

If financing costs arising from the loans are associated with acquisition or construction of qualifying assets, they are included in cost value of qualifying assets. Qualifying assets refer to assets which require a long time to be available for use or sales as intended. Other borrowing costs are accounted in statement of profit or loss in the period they occur.

iii. Trade and other payables

Trade and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

Financial assets

i. Financial investment

The Group's financial assets at fair value through profit or loss include short-term bonds and mutual funds held for sale. These financial investments are initially recognized at acquisition cost, which reflects their fair value at the transaction date. In subsequent periods, they are measured at fair value. Gains and losses arising from the valuation of these assets are recognized in the consolidated statement of profit or loss.

ii. Cash and cash equivalents

Cash and cash equivalents include cash on hand, time deposits held in banks with maturities of three months or less, and demand deposits. The Company reviews these cash and cash equivalents for impairment using the expected credit loss model.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.8 Cash flow hedge transactions

For a hedge of foreign currency risk, the foreign currency component of a non-derivative financial asset or liability may be designated, as a hedging instrument. The foreign currency risk component of a nonderivative financial instrument is determined in accordance with TAS 21.

Accordingly, starting from 20 March 2021, the Company hedge the spot risk of highly probable forecast sales that are denominated in USD with its financial liability in the same foreign currency.

While the Company's functional currency is TL, the company is exposed to exchange rate risks due to its finances and operations. The Company has outstanding USD debt due to power plant investments. The Company also generates significant sales revenue in USD.

The source of USD denominated revenue is sales of electricity generated via renewable power plants. Such production is incentivized in Türkiye through a feed‐in tariff mechanism (Council of Ministers Decree No. 2013/5625). The kWh sale price of generated electricity is guaranteed in USD prices, whereas the amount of future renewable generation remains uncertain and depends on climate conditions and/or operational risks. The feed‐in tariff ("FIT") revenues are calculated on a daily basis and are aggregated at monthly intervals. This enables the Company to classify expected future revenues as a monthly stream of forecasted USD cash inflows for risk management purposes.

The Company's foreign currency risk management objective is to rely on natural currency hedges due to operations. It achieves this feat by aligning its forecasted USD inflows and its USD bond payments. Moreover, the forecasted USD inflows vs scheduled USD bond repayments constitute a hedged portfolio that allows a Cash Flow Hedge Accounting relationship to reduce the Company's income statement volatility. In particular, the Company associates its forecasted future USD cash inflows due to renewable‐ generated electricity sales, with its outstanding USD bonds. The Company is implementing Hedge Accounting under TFRS 9 to reflect its economic hedges onto financial reporting:

Hedge Accounting Component	Definition
Hedged Item	Forecasted future USD cash inflows due to FIT incentive
Hedging Instrument	USD denominated financial borrowings
Hedged Risk	Foreign exchange risk of forecasted future USD cash inflows due to FIT
	incentive

As of 31 March 2025, the amount of forecasted revenue under FIT and bilateral agreements are USD 176,510,557 whereas the total notional of the outstanding USD denominated bonds is USD 606,696,300. The Group designates USD 506,696,300 of this amount as part of its rebalanced hedge accounting relationship, per TFRS 9.6.2.4 (c). Due to under‐hedged nature of the hedged‐item, the Company achieves 1:1 hedge ratio with the hedging instrument at all times by way of re‐balancing, in line with TFRS 9.6.4.1.c.iii. As a result of the sensitivity analysis performed on the forecasted revenue figures, the Group concluded that the 10% increase/decrease in the forecasts do not have a significant effect on the evaluation of the hedge effectiveness tests.

The maturity breakdown of the designated layer of the hedging instrument notional as of 31 March 2025 is provided below;

Payment Date	Principal Payment Amount
August 2025	56,299,589
February 2026	56,299,589
August 2026	56,299,589
February 2027	337,797,533
Total	506,696,300

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.8 Cash flow hedge transactions (continued)

The accounting treatment applied with respect to the cash flow hedge is as follows:

• The portion of the foreign exchange gain or loss of the hedging instrument (USD denominated bonds) that is determined to be an effective hedge is recognised in other comprehensive income ("OCI"), until the accompanying hedged item (forecasted USD cash inflows) occurs.
• Any ineffective portion of the hedge is recognized each reporting period in consolidated statement of profit or loss as "Finance Expenses / Foreign Exchange losses".
• The hedged item, revenue, is recognised in accordance with TFRS 15 and the settlement of the hedging instrument is realised through the repayments of the bond.
• Gains and losses deferred in OCI, remain in OCI until the cash flows associated with the hedged item occur. At the time when a forecast sale occurs, the respective amount of foreign exchange gain/loss is reclassified from OCI to profit or loss (within financial expense / "Finance Expenses – Foreign Exchange losses transferred from equity (cash flow hedge)") as a reclassification adjustment in the same periods during which the hedged expected forecasted sales affect profit or loss.
• If the cash flows are not expected to occur, then the corresponding 'previously effective' foreign exchange gain/loss in OCI are recycled immediately to consolidated statement of profit or loss as "Finance Expenses / Foreign Exchange losses transferred from equity (cash flow hedge)".

2.9 Significant accounting judgments, estimates and assumptions

The preparation of consolidated financial statements in conformity with TFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements:

In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements:

• Note 6 Trade receivables
• Note 9 Property, plant and equipment
• Note 11 Provisions
• Note 2.8 Cash flow hedge transactions
• Note 22 Taxation on income

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. The assumptions underlying estimates and estimates are constantly monitored. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

2 Basis of presentation of consolidated financial statements (continued)

2.9 Significant accounting judgments, estimates and assumptions (continued)

The Group has chosen revaluation method instead of historical cost model as an accounting policy among application methods mentioned under TAS 16 for its power plants. An independent valuation firm has been authorized for revaluation because using of long-term price expectation, electricity generation expectation and discount rate which are sensitive to sectoral and economic variables and also complexity of inputs and calculations. As of 31 December 2024, the fair value which is determined with valuation study by an independent valuation company which has CMB license is used for power plants. In the aforementioned valuation and impairment studies, "income reduction method - discounted cash flow analysis " was applied.

Since long term electricity prices and generations are the most important inputs of "Income Approach discounted cash flow analysis". Long term electricity prices and generation estimations are considered long term electricity demand, entrance of new plants, renewable total capacity and evolution of capacity factor.

Generation forecasts have been prepared using historical generation data and feasibility reports. In valuation models prepared in USD terms, discount rate has been determined as 10.7%, 10.3%, 10.0% HPP, WPP, SPP respectively. In real terms, considering the prevailing macroeconomic market conditions. An increase in the discount rate negatively affects the fair value of the power plants. The portion of the relevant valuation results related to the decrease in value that is associated with "Gains/(losses) on revaluation of property, plant and equipment" has been recognized in the consolidated statement of other comprehensive income statement, while the remaining amount has been accounted for in the consolidated statement of profit or loss statement. The valuation report is prepared by an independent valuation firm holding the relevant Capital Markets Board (CMB) license and possessing the necessary professional expertise.

2.10 Revenue

The operations of the Group entities are regulated under Electricity Market Law No. 6446, the Regulation on Electricity Market License of EMRA, the Electricity Market Balancing and Settlement Regulation ("BSR") and other related legislative provisions.

Electricity sales is recognised as revenue at the time of electricity delivery, on an accrual basis. In the case of revenue from feed-in-tariff ("FIT"), sale of electricity is recorded based upon output delivered at rates specified under FIT. In the case of revenue from other than FIT, sale of electricity is again recorded based upon output delivered but at market rates.

The Company sells electricity to related parties Gediz Elektrik Perakende A.Ş. ("Gediz EPSAŞ"), Aydem Elektrik Perakende A.Ş. ("Aydem EPSAŞ") and other third parties within the scope of bilateral agreements. Bilateral agreements are commercial agreements made between real or legal persons, subject to the provisions of private law, regarding the purchase and sale of electrical energy or capacity and not subject to the approval of the Energy Market Regulatory Board. In bilateral agreements, conditions related to the supply of electrical energy such as unit price, price commitment, security fee conditions, contract duration are determined and signed.

2.11 Seasonal changes in operations

The Group's activities are not subject to seasonal fluctuations.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

3 Cash and Cash Equivalents

As of March 31, 2025 and December 31, 2024 cash and cash equivalents are as follows:

	31 March 2025	31 December 2024
Cash at banks	671,848,988	1,919,772,924
- Time deposits	669,816,043	1,916,344,999
- Demand deposits	2,032,945	3,427,925
Cash	48,538	-
Other cash and cash equivalents	-	378,235
	671,897,526	1,920,151,159

As of 31 March 2025, the interest rate of the Group's term TL denominated time deposits amounting is between 5% to 47%, average maturity 5 days. (31 December 2024: between 40% and 48.5%, average maturity 3 days). US Dollars denominated time deposits amounting interest rate is between 0.01% to 2,50%, average maturity 9 days. (31 December 2024: between 0.01% and 2.25%, average maturity 4 days). There is no EUR time deposits. (31 December 2024: 1%, average maturity 3 days).

As of March 31, 2025, the Group's restricted deposits amount to USD 210,469 (December 31, 2024: TL 10,042,000 and USD 2,843,000).

4 Segment reporting

4.1 Statement of financial position

Financial information is provided on a power plant-by-power plant basis to board of directors, which collectively comprise the chief operating decision maker. The information provided to the members of the executive management includes results or operation, valuation gains and losses on power plants, assets and liabilities of each power plant. The individual properties are also monitored based on type of power plants such as Hydro, Wind, Geothermal and Solar. The Group management considers that it is appropriate to report the segments based on this aggregation, to monitor the financial performance.

Group management assesses segment performance over earnings before interest, tax, depreciation and amortization ("EBITDA"). EBITDA is calculated by adjusting the operating income by depreciation and amortization expenses.

The Company management preferred to use EBITDA in the evaluation of department performances in terms of comparability with companies in the same sector. EBITDA is not a measure of financial performance defined in TFRS. It may not be comparable to similar indicators defined by other companies.

The accounting policies adopted by each of the reportable segments are consistent with TFRS used in preparation of consolidated financial statements of the Group. The detailed information regarding the reporting segments of Group is presented below:

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

4 Segment reporting (continued)

4.1 Statement of financial position (continued)

31 March 2025	Hydro Power Plants	Wind Power Plants	Solar Power Plant	Other	Unallocated *	Consolidated
Segment assets	40,742,002,492	10,145,895,239	2,234,084,402	220,746,113	5,370,619,010	58,713,347,256
Segment liabilities	17,424,272,155	2,041,082,388	1,604,441,875	-	7,141,390,394	28,211,186,812
31 December 2024	Hydro Power Plants	Wind Power Plants	Solar Power Plant	Other	Unallocated *	Consolidated
Segment assets	40,997,852,421	10,439,835,504	2,206,616,614	218,147,056	8,236,682,332	62,099,133,927
Segment liabilities	18,258,665,302	2,251,891,596	1,868,081,677	-	9,601,734,016	31,980,372,591

* Includes assets and liabilities which are not attributable to a reportable segment such as cash, trade receivables, other assets, trade payables, other liabilities, tax assets and liabilities, etc.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

4 Segment reporting (continued)

4.2 Statement of profit or loss

1 January 31 March 2025	Hydro Power Plants	Wind Power Plants	Solar Power Plant	Total Renewable Energy		Unallocated * Consolidated
Revenues - Revenues from Feed in Tariff (FIT) - Other than FIT	843,175,573 391,497,423 451,678,150	443,170,450 250,909,065 192,261,385	51,250,513 - 51,250,513	1,337,596,536 642,406,488 695,190,048	2,151,237,367 - 2,151,237,367	3,488,833,903 642,406,488 2,846,427,415
Cost of Sales Operational Expenses/Income (incl, Other Expense and Income)	(653,051,179) -	(342,585,544) -	(32,203,628) -	(1,027,840,351) -	(1,873,840,721) (23,274,944)	(2,901,681,072) (23,274,944)
Earnings before interest and taxes (EBIT)	190,124,394	100,584,906	19,046,885	309,756,185	254,121,702	563,877,887
Add-back, Depreciation & Amortization Expenses	348,065,667	183,095,177	23,907,878	555,068,722	25,105,588	580,174,310
Earnings before interest, taxes, depreciation and amortization (EBITDA) **	538,190,061	283,680,083	42,954,763	864,824,907	279,227,290	1,144,052,197

* Within the unallocated portion, TL 2,120,923,122 of the revenue is attributable to wholesale commercial sales, specifically derived from electricity trading activities. In the cost of sales, TL 1,798,904,805 corresponds to the cost incurred from electricity trading activities. Also, includes head office costs and expenses which is not attributable to a reportable segment. Operational expenses mainly consist of personnel expenses. Operational income is mainly composed of foreign exchange income and interest income from commercial transactions related to trading activities.

** EBITDA is calculated by adjusting the operating income by depreciation and amortization expenses.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker function is carried out by the Board of Directors.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

4 Segment reporting (continued)

4.2 Statement of profit or loss (continued)

1 January 31 March 2024	Hydro Power Plants	Wind Power Plants	Solar Power Plant	Total Renewable Energy	Unallocated *	Consolidated
Revenues - Revenues from Feed in Tariff (FIT) - Other than FIT	1,689,198,892 151,001,301 1,538,197,591	571,201,210 571,201,210 -	79,355,992 79,355,992 -	2,339,756,094 801,558,503 1,538,197,591	22,140,212 - 22,140,212	2,361,896,306 801,558,503 1,560,337,803
Cost of Sales Operational Expenses/Income (incl, Other Expense and Income)	(851,825,794) -	(411,535,019) -	(52,540,229) -	(1,315,901,042) -	(108,765,367) 197,226,753	(1,424,666,409) 197,226,753
Earnings Before Interest and Taxes (EBIT)	837,373,098	159,666,191	26,815,763	1,023,855,052	110,601,598	1,134,456,650
Add-back, Depreciation & Amortization Expenses	468,317,471	217,382,226	35,561,413	721,261,110	104,529,643	825,790,753
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) **	1,305,690,569	377,048,417	62,377,176	1,745,116,162	215,131,241	1,960,247,403

* Includes head office costs and expenses which is not attributable to a reportable segment. Operational expenses mainly consist of personnel expenses. Most of operational income is composed of foreign exchange income and interest income from commercial transactions related to trading activities.

** EBITDA is calculated by adjusting the operating income by depreciation and amortization expenses.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker function is carried out by the Board of Directors.

Aydem Yenilenebilir Enerji Anonim Şirketi and Its Subsidiaries Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

4 Segment reporting (continued)

4.3 Reconciliations on EBITDA

	31 March 2025	31 March 2024
Profit for the period	161,170,715	895,185,113
Add/(Less):
Income tax expense	24,672,111	944,639,879
Income from investing activities	(50,155,142)	(3,121,413)
Expense from investing activities	-	434,471
Finance income	(140,850,552)	(341,501,115)
Finance expense	2,406,482,934	2,992,481,439
Depreciation and amortization	580,174,310	825,790,753
Monetary gain	(1,837,442,179)	(3,353,661,724)
Consolidated EBITDA	1,144,052,197	1,960,247,403

5 Related party disclosures

Aydem Holding A.Ş. ("Aydem Holding") is the ultimate parent company and controlling party of the Group. The Group controlled by Ceyhan Saldanlı.

Transactions with related parties are classified according to the following groups and include all related party disclosures in this note.

• 1. Ultimate parent and its subsidiaries
• 1. Other companies controlled by the shareholders of Aydem Holding and other key persons.

Since the transactions between the Group and its subsidiaries, which are related parties of the Group, are eliminated during consolidation, they are not disclosed in this note.

The shareholders, key management personnel and members of the Board of Directors, their families and partners and entities controlled by the ultimate shareholders are considered and referred to as related parties in the consolidated financial statements. The Group companies have carried out various transactions with related parties during their operations.

Trade receivables from related parties generally arise from sale of electricity. Trade payables to related parties generally arise from the service purchases. The Company, related parties Gediz Elektrik Perakende A.Ş. ("Gediz EPSAŞ") and Aydem Elektrik Perakende A.Ş. ("Aydem EPSAŞ") sells electricity to companies within the scope of bilateral agreements. Bilateral agreements are commercial agreements made between real or legal persons, subject to the provisions of private law, regarding the purchase and sale of electrical energy or capacity and not subject to the approval of the Energy Market Regulatory Board. In bilateral agreements, conditions related to the supply of electrical energy such as unit price, price commitment, security fee conditions, contract duration are determined and signed.

Other receivables from related parties arise from sale of subsidiary shares and amounts arisen from operational activities. At the end of each quarter period for other receivables and payables interest is accrued using market interest rates, which are determined using the Group external cost of borrowing.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

5 Related party disclosures (continued)

5.1 Related party balances

As of 31 March 2025, and 31 December 2024, short-term trade receivables due from related parties are as follows:

	31 March 2025	31 December 2024
(1) Gediz EPSAŞ (1) Aydem EPSAŞ Other	508,944,942 - 2,400	781,555,534 2,665,229,690 -
	508,947,342	3,446,785,224

As of 31 March 2025, and 31 December 2024, short-term other receivables due from related parties are as follows:

	31 March 2025	31 December 2024
Aydem Holding A.Ş. ("Aydem Holding") (1) *	120,462,068	120,812,491
	120,462,068	120,812,491

* Mainly consists of receivables related to the sale of 50% shares belonging to Yalova Karacabey. Group sold the 50% shares of Yalova on 30 June 2020 to Aydem Holding A.Ş. The interest rate applied by the Group on USD-denominated intercompany balances is 7.95% (31 December 2024: 9.01%)

As of 31 March 2025, and 31 December 2024, short-term trade payables due to related parties are as follows:

	31 March 2025	31 December 2024
Aydem Holding (1)	14,884,071	35,747,537
GDZ Enerji Yatırımları A.Ş. ("GDZ Enerji") (1) Aydem EPSAŞ	8,024,930 2,264,209	7,268,294 -
ADM Elektrik Dağıtım A.Ş. ("ADM EDAŞ") (1) Other	1,964,428 334,908	2,642,242 813,148
	27,472,546	46,471,221

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

5 Related party disclosures (continued)

5.2 Related party transactions

For the period ended 31 March 2025 and 2024, income and expense transactions with related parties are as follows:

	1 January	1 January
Electricity sales and other sales	31 March 2025	31 March 2024
(1) Gediz EPSAŞ	1,069,240,237	1,501,724,780
(1) Aydem EPSAŞ	46,087,926	167,270,229
Other	14,254	595,892
	1,115,342,417	1,669,590,901
	1 January	1 January
Purchase of electricity and services	31 March 2025	31 March 2024
(1) Aydem EPSAŞ	53,805,847	67,251,064
Aydem Holding (1)	47,996,605	29,392,596
GDZ Enerji (1)	23,854,422	16,284,557
(1) ADM EDAŞ	7,430,598	11,642,716
(1) Gediz EPSAŞ	940,272	8,883,199
Other	199,954	339,951
	134,227,698	133,794,083
	1 January	1 January
Other income	31 March 2025	31 March 2024
(1) * Aydem EPSAŞ	383,123,558	269,458,172
(1) * Gediz EPSAŞ	38,169,526	54,369,277
Aydem Holding (1)	2,147,231	12,018,106
	423,440,315	335,845,555

* Consists of net foreign exchange income and late interest income regarding trade receivables.

Finance income	1 January 31 March 2025	1 January 31 March 2024
(1) Aydem EPSAŞ (1) Gediz EPSAŞ Aydem Holding (1)	28,040,627 2,707,638 2,416,938	30,579,883 - 4,308,245
	33,165,203	34,888,128

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

5 Related party disclosures (continued)

5.2 Related party transactions (continued)

The executive management of the Group is comprised of general manager and directors. For the period ended 31 March 2025 and 2024, the sum of short-term benefits, such as remuneration and attendance fees, provided to key management executives personnel is as follows:

	1 January 31 March 2025	1 January 31 March 2024
Benefits to key management personnel	18,063,135	19,012,185
	18,063,135	19,012,185

6 Trade receivables and payables

Short term trade receivables

As of 31 March 2025, and 31 December 2024, the Group's short-term trade receivables are as follows:

	31 March 2025	31 December 2024
Trade receivables due from related parties (Note 5)	508,947,342	3,446,785,224
Trade receivables due from third parties	2,549,872,793	40,839,881
	3,058,820,135	3,487,625,105
Less: Allowances for doubtful trade receivables	(7,083,121)	(7,810,678)
	3,051,737,014	3,479,814,427

As of 31 March 2025, and 31 December 2024, short-term receivables consist of the following items:

	31 March 2025	31 December 2024
Trade receivables related to electricity sales *	3,049,873,685	3,479,429,279
Income accruals related to electricity sales **	1,863,329	385,148
Doubtful trade receivables	7,083,121	7,810,678
Allowances for doubtful trade receivables	(7,083,121)	(7,810,678)
	3,051,737,014	3,479,814,427

* Consists of electricity sales and ancillary income within the bilateral agreements.

** Consists of the Group's unbilled receivables arising from the electricity sales.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

6 Trade receivables and payables (continued)

Short term trade receivables (continued)

As of 31 March 2025, and 31 December 2024, The Group has overdue trade receivables and that receivables have not been impaired. The aging of trade receivables is as follows:

	31 March 2025	31 December 2024
Not overdue	3,033,041,300	1,067,747,169
1-30 days past due	3,146,336	473,333,950
1-3 months past due	5,215,618	945,574,585
3-12 months past due	10,333,760	993,158,723
	3,051,737,014	3,479,814,427

The liquidity and exchange rate risk that the Group is exposed in relation with trade receivables are explained under Footnote 24.

The movement of provisions for doubtful receivables for the period ended 31 March 2025 and 2024 are as follows:

	2025	2024
Opening balance (1 January)	7,810,678	11,221,594
Provisions no longer required	(14,306)	(27,715)
Inflation effect	(713,251)	(1,467,670)
Closing balance (31 March)	7,083,121	9,726,209

Short term trade payables

As of 31 March 2025, and 31 December 2024, the Group's short-term trade payables are as follows:

	31 March 2025	31 December 2024
Trade payables due to third parties	93,896,221	206,068,557
Trade payables due to related parties (Note 5)	27,472,546	46,471,221
	121,368,767	252,539,778

As of 31 March 2025, and 31 December 2024, short-term trade payables from third parties consist of the following items:

	31 March 2025	31 December 2024
Trade payables	79,246,294	149,777,040
Expense accruals	14,580,831	56,291,517
Other trade payables	69,096	-
	93,896,221	206,068,557

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

7 Other receivables and payables

Other short term receivables

As of 31 March 2025, and 31 December 2024, the Group's short-term other receivables are as follows:

	31 March 2025	31 December 2024
Other receivables due from related parties (Note 5) Other receivables due from third parties	120,462,068 44,576,196	120,812,491 49,859,340
	165,038,264	170,671,831

As of 31 March 2025, and 31 December 2024, short-term other receivables from third parties consist of the following items:

	31 March 2025	31 December 2024
Receivables from tax administration	44,346,585	49,663,343
Deposits and guarantees given	229,611	195,997
	44,576,196	49,859,340

Other long term receivables

As of 31 March 2025, and 31 December 2024, other long-term receivables from third parties consist of the following items:

	31 March 2025	31 December 2024
Other receivables due from third parties	5,382,665	5,939,719
	5,382,665	5,939,719

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

7 Other receivables and payables (continued)

Other short term payables

As of 31 March 2025, and 31 December 2024, the Group's short-term other payables are as follows:

	31 March 2025	31 December 2024
Other payables due to related parties Other payables due to third parties	29,642 235,709	- 260,563
	265,351	260,563

As of 31 March 2025, and 31 December 2024, other short-term payables to third parties consist of the following items:

	31 March 2025	31 December 2024
Deposits and guarantees taken Other payables	235,709 -	259,428 1,135
	235,709	260,563

8 Inventories

As of 31 March 2025, and 31 December 2024, inventories are as follows:

	31 March 2025	31 December 2024
Spare parts *	23,981,419	22,459,082
	23,981,419	22,459,082

* Inventories consist of spare parts used in the maintenance of power plants and consumable materials.

As of 31 March 2025, there is no insurance coverage on the Group's inventories (31 December 2024: None).

As of 31 March 2025, there are no inventories presented as collateral for liabilities (31 December 2024: None).

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

9 Property, plant and equipment and right of use assets

9.1 Property, plant and equipment

The ending 31 March 2025 and 2024, movements of property, plant and equipment are as follows:

			Construction
	Land	Power plants	in progress *	Other	Total
Cost or valuation as of 1 January 2025	55,799,937	73,162,226,061	2,006,380,648	340,355,998	75,564,762,644
Additions	-	3,882,140	35,947,312	826,419	40,655,871
Disposals	-	(668,968)	-	(3,504)	(672,472)
Cost or valuation as of 31 March 2025	55,799,937	73,165,439,233	2,042,327,960	341,178,913	75,604,746,043
Accumulated depreciation as of 1 January 2025	-	(24,069,566,856)	-	(256,882,555)	(24,326,449,411)
Additions	-	(536,889,063)	-	(5,237,592)	(542,126,655)
Disposals	-	202,555	-	2,844	205,399
Accumulated depreciation as of 31 March 2025	-	(24,606,253,364)	-	(262,117,303)	(24,868,370,667)
Net book value as of 31 March 2025	55,799,937	48,559,185,869	2,042,327,960	79,061,610	50,736,375,376

	Land	Power plants	Construction in progress *	Other	Total
Cost or valuation as of 1 January 2024	55,799,937	107,687,633,888	1,978,981,725	318,557,717	110,040,973,267
Additions	-	59,151,711	68,411,493	367,550	127,930,754
Disposals	-	(241,469)	(74,887,253)	(61,002)	(75,189,724)
Cost or valuation as of 31 March 2024	55,799,937	107,746,544,130	1,972,505,965	318,864,265	110,093,714,297
Accumulated depreciation as of 1 January 2024	-	(32,564,867,984)	-	(233,048,856)	(32,797,916,840)
Additions	-	(777,421,063)	-	(5,743,097)	(783,164,160)
Disposals	-	51,359	-	4,779	56,138
Accumulated depreciation as of 31 March 2024	-	(33,342,237,688)	-	(238,787,174)	(33,581,024,862)
Net book value as of 31 March 2024	55,799,937	74,404,306,442	1,972,505,965	80,077,091	76,512,689,435

* Mainly consists of investments regarding hybrid solar and capacity increase.

As of 31 March 2025, there are pledges and mortgages on property, plant and equipment of the Group amounting to USD 1,248,750,000 in original currencies (31 March 2024: USD 1,248,750,000 in original currencies) in favour of lenders.

Total depreciation expense of property, plant and equipment amounting to TL 536,889,063 (31 March 2024: TL 777,421,063) has been reflected to cost of sales and amounting to TL 5,237,592 (31 March 2024: TL 5,743,097) has been reflected to general administration expense.

The Group determined that the power plants constitute a separate class of property, plant and equipment, based on the nature, characteristics and risks of the property and as also mentioned in Note 2, elected to use revaluation method for such assets.

Power plant assets were measured at fair value as of 31 December 2024 and adjusted in accordance with TAS 29 to reflect the purchasing power as of 31 March 2025.

The Company applied the "Income Reduction Method- DCF Analysis" in its valuation and impairment studies. Given that long-term electricity market prices are the most important factor in the "DCF Analysis," the Company collaborated with an independent consultant providing services to companies operating in the energy market. When determining long-term electricity prices, the most important inputs in the model were the forecasted trends in demand, capacity, capacity factor development, electricity export & import trends, and coal prices. The most important assumptions in the income reduction method are, respectively, electricity prices, projected production volume, weighted average cost of capital, discount rate, and exchange rates. The Company does not expect significant changes in the forecasts and assumptions used in the valuation reports. In the income reduction method, the Company discounted its estimated revenues based on the useful life of the power plants.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

9 Property, plant and equipment and right of use assets (continued)

9.2 Right of use assets

The Group has lease contracts for various items of plant, machinery, vehicles, land right of use and other equipment used in its operations.

For the period then ended as of 31 March 2025, movements of right of uses is as follows:

Cost as of 1 January 2025	713,045,551
Additions	1,824,707
Cost as of 31 March 2025	714,870,258
Accumulated depreciation as of 1 January 2025	(343,806,344)
Additions	(19,873,609)
Accumulated depreciation as of 31 March 2025	(363,679,953)
Net book value as of 31 March 2025	351,190,305

For the period then ended as of 31 March 2024, movements of right of uses is as follows:

Cost as of 1 January 2024	657,529,630
Additions	10,640,254
Cost as of 31 March 2024	668,169,884
Accumulated depreciation as of 1 January 2024	(253,713,068)
Additions	(23,560,924)
Accumulated depreciation as of 31 March 2024	(277,273,992)
Net book value as of 31 March 2024	390,895,892

Total depreciation expense of right of uses amounting to TL 14,507,735 (31 March 2024: 17,199,475) has been reflected to cost of sales and amounting to TL 5,365,874 (31 March 2024: TL 6,361,449) has been reflected to general administration expense.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

10 Intangible assets

As of 5 May 2017, the Company has signed a Transfer of Operating Rights Agreement ("Agreement") with the Privatization Administration and the Electricity Generation Corporation ("EÜAŞ") for Adıgüzel and Kemer Hydroelectric Plants. According to the agreement, the Company obtained the operating rights of the plants for 49 years and is responsible for the transfer of EÜAŞ at the end of the period in a complete and a functional state. During the contract period, the Company is required to carry out all the maintenance, repairs and improvements which are necessary to ensure the convenience and efficiency of the plants for the generation activity, at their own expense. The Company is responsible for any damages and losses that may occur in the generation facilities in general referred as "Power Plants". During the contract period; the Company is required to perform all kinds of additional facilities, the investment for rehabilitation and development in accordance with the legislation, and will obtain the approval of EÜAŞ during the works and procedures to be carried out within this framework. In addition, the company must obtain approval from EÜAŞ in case it wants to make investments and transactions for capacity changes.

As of the transfer date, it is EÜAŞ's responsibility to monitor and solve the administrative, legal disputes regarding the ownership of the immovable on which plants are located and the immovable in use, that are available now or will arise after the transfer date and all responsibilities and obligations arising from this matter.

Intangible assets related to agreements are amortized until the end of the related contract period.

Although the Company has the right to obtain substantially all of the economic benefits from use of the asset, it does not have the right to manage the use of power plants according to Article 7 of the contract signed with the EÜAŞ. Therefore, the contract has not been considered as a lease contract under TFRS 16. On the other hand, the Agreement is not accounted within the scope of TFRIC 12 Service Concession Agreements because although the residual interest of the power plants belongs to EÜAŞ, EÜAŞ does not control at what price electricity will be sold.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

10 Intangible assets (continued)

As of 31 March 2025, and 2024, movements of intangible assets are as follows:

	Licences	Operating rights	Softwares	Total
Cost as of 1 January 2025	63,101,758	3,083,014,162	42,707,500	3,188,823,420
Additions	388,554	-	-	388,554
Cost as of 31 March 2025	63,490,312	3,083,014,162	42,707,500	3,189,211,974
Accumulated depreciation as of 1 January 2025	(48,627,705)	(482,376,367)	(33,680,986)	(564,685,058)
Additions	(2,040,327)	(15,729,663)	(404,056)	(18,174,046)
Accumulated depreciation as of 31 March 2025	(50,668,032)	(498,106,030)	(34,085,042)	(582,859,104)
Net book value as of 31 March 2025	12,822,280	2,584,908,132	8,622,458	2,606,352,870
	Licences	Operating rights	Softwares	Total
Cost as of 1 January 2024	59,245,043	3,083,014,163	42,707,500	3,184,966,706
Additions	635,070	-	-	635,070
Cost as of 31 March 2024	59,880,113	3,083,014,163	42,707,500	3,185,601,776
Accumulated depreciation as of 1 January 2024	(37,758,121)	(419,457,710)	(32,057,655)	(489,273,486)
Additions	(2,924,858)	(15,729,663)	(411,148)	(19,065,669)
Accumulated depreciation as of 31 March 2024	(40,682,979)	(435,187,373)	(32,468,803)	(508,339,155)
Net book value as of 31 March 2024	19,197,134	2,647,826,790	10,238,697	2,677,262,621

Amortization expense of intangible assets amounting to TL 15,729,663 (31 March 2024: TL 15,729,663) has been reflected to cost of sales and amounting to TL 2,444,383 (31 March 2024: TL 3,336,006) has been reflected to general administrative expenses.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

11 Provisions, contingent assets and liabilities

11.1 Short-term provisions

As of 31 March 2025, and 31 December 2024, the breakdown of short-term provisions are as follows:

	31 March 2025	31 December 2024
Short-term provisions for employee benefits	58,424,368	95,978,959
Provision for litigations	15,965,478	17,060,427
	74,389,846	113,039,386

Short-term provisions for employee benefits consist of unused vacation days provisions and premium provisions.

The movement table of unused vacation days provisions is as follows:

	2025	2024
Opening balance (1 January) Net change in provision within the period Inflation effect	28,147,344 12,454,359 (3,165,110)	24,304,007 12,767,951 (4,058,383)
Closing balance (31 March)	37,436,593	33,013,575

The movement table of premium provisions is as follows:

	2025	2024
Opening balance (1 January)	67,831,615	45,936,405
Net change in provision within the period	(42,669,250)	(23,847,670)
Inflation effect	(4,174,590)	(4,376,484)
Closing balance (31 March)	20,987,775	17,712,251

Other short-term provisions consist of provisions for ongoing litigations of the Group.

The movement table is as follows:

	2025	2024
Opening balance (1 January)	17,060,427	21,818,729
Net change in provision within the period (Note 19)	474,743	-
Inflation effect	(1,569,692)	(6,919,426)
Closing balance (31 March)	15,965,478	14,899,303

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

11 Provisions, contingent assets and liabilities (continued)

11.2 Contingent liabilities

As of 31 March 2025, and 31 December 2024, the Group's collateral/pledge/mortgage ("CPM") balances are as follows:

		31 March 2025	31 December 2024
	Currency	TL Amount	TL Amount
A, Guarantees given in the name of its own legal	TL	-	-
personality*	US Dollars	47,159,793,000	48,489,554,701
B, Guarantees given on behalf of the fully consolidated companies	TL	-	-
C, Total amount of CPM's given to other 3rd parties for the purpose of carrying out their ordinary commercial activities	TL	-	-
D, Other guarantees	TL	-	-
i, Guarantees given on behalf of the majority shareholder		-	-
ii, Guarantees given to on behalf of other group companies which are not in scope of B and C	TL	-	-
iii, Guarantees given on behalf of third parties which are not in scope of C		-	-
Total		47,159,793,000	48,489,554,701

* On 2 December 2021, within the scope of the Eurobond, movable pledge was established on the Company's movable assets to form the guarantee of the bond issuance. The outstanding amount of Eurobond has a nominal value of TL 22,953,565,805.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

11 Provisions, contingent assets and liabilities (continued)

11.3 Letters of guarantees received and guarantees given

		31 March 2025	31 December 2024
	Currency	TL equivalent	TL equivalent
Guarantees given *	TL	455,950,680	444,631,406
Total		455,950,680	444,631,406

* Guarantees given, in general, are comprised of the letters of guarantees given to the several institutions and organizations within the operations of the Group (to Energy Market Regulatory Authority ("EMRA"), Turkish Electricity Transmission Company ("TEİAŞ"), privatization administration and to the judicial authorities for some of the on-going lawsuits.

		31 March 2025	31 December 2024
	Currency	TL equivalent	TL equivalent
Guarantees received *	TL	2,507,743,452	33,659,503
Guarantees received *	EURO	9,819,333	7,999,645
Guarantees received *	US Dollars	4,400,024,823	4,525,975,323
		6,917,587,608	4,567,634,471

* Guarantees received from Aydem EPSAŞ, Gediz EPSAŞ and third parties.

11.4 Long term provisions

As of 31 March 2025, and 31 December 2024, the long-term provisions are as follows:

	31 March 2025	31 December 2024
Provisions for retirement pay liability	132,097,193	97,410,465
	132,097,193	97,410,465

As of 31 March 2025, and 2024, movements of provisions for retirement pay liability are as follows:

	2025	2024
Opening balance (1 January)	97,410,465	108,948,719
Service cost	34,095,400	7,237,386
Interest cost	9,019,756	6,279,333
Retirement payments paid	(1,358,464)	(2,670,717)
Actuarial loss/(gain)	3,360,015	24,275,547
Inflation effect	(10,429,979)	(18,058,474)
Closing balance (31 March)	132,097,193	126,011,794

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

11 Provisions, contingent assets and liabilities (continued)

11.4 Long term provisions (continued)

TFRS require actuarial valuation methods to be developed to estimate the enterprise's obligation under defined benefit plans. Accordingly, the following actuarial assumptions have been used in the calculation of the total liability. Related rates have been presented by considering the weighted average of actuarial assumptions of the subsidiaries within the scope of consolidation.

The main actuarial assumptions used as of 31 March 2025 and 31 December 2024 are as follows:

	31 March 2025	31 December 2024
Expected interest in the coming years %	27.15	27.15
Expected inflation in the coming years %	21.95	21.95
Expected probability of leaving without compensation in	4.26	4.26
the coming years %

12 Liabilities for employee benefits

As of 31 March 2025, and 31 December 2024, short-term payables related to employee benefits are as follows:

	31 March 2025	31 December 2024
Social security withholdings payable Payables to personnel	33,220,661 279,300	12,571,164 1,208,762
	33,499,961	13,779,926

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

13 Other current, non-current assets and other liabilities

13.1 Other current assets

As of 31 March 2025, and 31 December 2024, other current assets are as follows:

	31 March 2025	31 December 2024
Advances to personnel	32,212	150,500
Short-term deferred value added tax (''VAT'')	25,514	22,128
	57,726	172,628

13.2 Other non-current assets

As of 31 March 2025, and 31 December 2024, other non-current assets are as follows:

	31 March 2025	31 December 2024
Long-term deferred VAT	13,592,622	40,584,094
	13,592,622	40,584,094

13.3 Other short-term liabilities

As of 31 March 2025, and 31 December 2024, other liabilities are as follows:

	31 March 2025	31 December 2024
Taxes and funds payable	154,317,383	119,137,980
Other	488,601	136,694
	154,805,984	119,274,674

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

14 Share capital

Paid-in capital

The Company adopter the registered share capital system available to companies registered to the CMB and set a limit on its registered share capital representing registered type shares with a nominal value of kurus1, Registered and issued share capital of the Company is a follows:

	31 March 2025	31 December 2024
Limit on registered share capital	2,000,000,000	2,000,000,000
Issued share capital in nominal value	705,000,000	705,000,000
Adjustment to share capital	7,292,125,068	7,292,125,068

Companies in Türkiye may exceed the limit on registered share capital in the event of the issuance of bonus shares to existing shareholders.

As of 31 March 2025, the Group's paid-in capital is divided into 705,000,000 shares (31 December 2024: 705,000,000 shares), each with a nominal value of TL 1. The ultimate shareholder of the Group is Aydem Holding Anonim Şirketi, whose controlling individual shareholder is Ceyhan Saldanlı. Shareholding structure is given in Note 1.

Legal reserves

According to the Turkish Commercial Code ("TCC"), legal reserves are comprised of first and second legal reserves. The first legal reserves are generated by annual appropriations amounting to 5 percent of income disclosed in the Company's statutory accounts until it reaches 20 percent of paid-in share capital. If the dividend distribution is made in accordance with Dividend Distribution Communiqué II-19.1. a further 1/10 of dividend distributions, in excess of 5 percent of paid-in capital is to be appropriated to increase second legal reserves. If the dividend distribution is made in accordance with statutory records, a further 1/11 of dividend distributions, in excess of 5 percent of paid-in capitals are to be appropriated to increase second legal reserves. Under the TCC, the legal reserves can be used only to offset losses and are not available for any other usage unless they exceed 50 percent of paid-in capital. At 31 March 2025, legal reserves of the Group amounted to TL 261,897,358 (31 December 2024: TL 261,897,358).

Dividend distribution

Companies distribute their profits in accordance with their dividend policy determined by the General Assembly and with General Assembly resolution in accordance with provisions of the relevant legislation. According to the Turkish Commercial Code, legal reserves can only be distributed as dividends after they reach 50% of the Company's paid in capital or issued share capital. Accordingly the Group determined its dividend distribution policy in line with the communique. Companies pay dividends according to their articles of association or dividend distribution policy. In addition, dividends may be paid in equal or different amount of installments, and cash dividend advances may be distributed over profit for the year period presented in financial statements.

Aydem Yenilenebilir Enerji Anonim Şirketi and Its Subsidiaries Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

14 Share capital (continued)

Share premium

Excess amount of selling price and nominal value for each share was recorded as share premium in equity.

As of December 31, 2022, the Company has gained TL 94,753,311 from the block sale of 5,733,502 shares purchased within the scope of the share buyback program with a price of TL 24.76 per share on December 23, 2022 at Borsa Istanbul. The inflation adjusted value of the related amount is TL 248,098,419.

5,000,000 shares of the Company with a nominal value of 1 TL were offered to the public on 29 April 2021 and were sold at TL 9,9 per share. The amount of TL 5,000,000 was used in the capital increase and the remaining TL 40,098,520 was recorded in the "Share Premium/(Discounts)" account. Expenses amounting to TL 4,401,480 incurred within the scope of initial public offering was deducted from "Share Premium/(Discount)" within the scope of TAS 32. The inflation adjusted value of the related amount is TL 222,570,439.

On April 16, 2019, in accordance with EMRA permission dated April 16, 2019, a total of 1,200 Düzce Aksu shares of Aydem Elektrik Perakende A.Ş. with a total value of TL 120,000,000 were taken over and the amount of TL 49,474,498 resulting from the transaction was recorded in the "Share Premium/(Discount)" account. The inflation adjusted value of the related amount is TL 356,863,034.

On December 31, 2020, the Company signed a share sale agreement to sell its 50% shares in Yalova RES Elektrik Üretim A.Ş. to Aydem Holding A.Ş. for TL 38,316,320. The Company has recognized the difference amounting to TL 1,845,320 between the value of the subsidiary disposed of and the fair value determined by independent valuation experts in equity. The inflation adjusted value of the related amount is TL 10,800,793.

Treasury Shares

As of December 31, 2023, within the scope of the share buyback program, shares were repurchased at an average price of TL 13.66 TL. 83,423,193 related to the transaction was recorded under "Treasury Shares" account. The inflation adjusted value of the related amount is TL 186,216,737.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

14 Share capital (continued)

Treasury Shares (continued)

As at the end of March 31, 2025 and December 31, 2024, the comparative amounts of equity items prepared in accordance with Tax Procedural Law and TAS/TFRS are as follows:

		Inflation
Historical value	Indexed value	adjustment effect
705,000,000	7,997,125,068	7,292,125,068
186,171,649	838,332,685	652,161,036
(80,091,338)	(186,216,737)	(106,125,399)
123,781,283	261,897,358	138,116,075
934,861,594	8,911,138,374	7,976,276,780
		Inflation
Historical value	Indexed value	adjustment effect
705,000,000	7,997,125,068	7,292,125,068
186,171,649	838,332,685	652,161,036
(80,091,338)	(186,216,737)	(106,125,399)
123,781,283	261,897,358	138,116,075
		7,976,276,780
	934,861,594	8,911,138,374

15 Revenue

Details of revenue for the periods ended 31 March 2025 and 2024 are as follows:

	1 January	1 January
	31 March 2025	31 March 2024
Revenues from electricity sales	3,488,833,903	2,361,896,306
- Revenues from feed in tariff (FIT)	642,406,488	801,558,503
- Other than FIT*	2,846,427,415	1,560,337,803
	3,488,833,903	2,361,896,306

Management monitor revenues into two categories due to its risk group: FIT and Other than FIT.

* Amount of TL 2,120,923,122 of the income is attributable to commercial operations, specifically derived from electricity trading activities.

16 Cost of sales

Details of the cost of sales for the periods ended 31 March 2025 and 2024 are as follows:

	1 January	1 January
	31 March 2025	31 March 2024
Cost of energy sales and generation	(2,901,681,072)	(1,424,666,409)
- Depreciation and amortization expenses	(568,285,107)	(809,972,822)
- Cost of energy sales and generation *	(2,333,395,965)	(614,693,587)
	(2,901,681,072)	(1,424,666,409)

* Cost of energy generation mainly includes costs of energy sales and generation, system usage and transmission costs, maintenance and repair expenses and personnel expenses. In the cost of energy sales and generation, TL 1,798,904,805 corresponds to the cost incurred from electricity trading activities.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

17 General and administrative expenses

The details of general administrative expenses for the periods ended 31 March 2025 and 2024 are as follows:

	1 January	1 January
	31 March 2025	31 March 2024
Personnel expenses	(104,881,553)	(99,431,531)
Administrative expenses *	(48,190,666)	(28,411,514)
Consultancy expenses	(31,112,038)	(12,121,571)
Depreciation and amortization expenses	(11,889,203)	(15,817,931)
Tax, duties and fees expenses	(1,867,439)	(5,328,082)
Maintenance and repair expenses	(1,785,500)	(779,104)
License and dues expenses	(1,336,445)	(1,800,896)
Insurance charges	(379,489)	(477,548)
Other	(4,777,690)	(12,266,780)
	(206,220,023)	(176,434,957)

* Consists of expenses related to shared services received from Aydem Holding.

18 Expenses by nature

The details of expenses incurred for the periods ended 31 March 2025 and 2024 are as follows:

	1 January	1 January
	31 March 2025	31 March 2024
Costs of energy sales and generation *	(2,099,799,791)	(441,857,672)
Depreciation and amortization expenses	(580,174,310)	(825,790,753)
Personnel expenses	(298,379,299)	(234,152,090)
Administrative expenses	(48,190,666)	(28,411,514)
Consulting expenses	(36,270,272)	(17,415,095)
License and dues expenses	(4,466,131)	(4,031,629)
Other	(40,620,626)	(49,442,613)
	(3,107,901,095)	(1,601,101,366)

* In the cost of energy sales and generation, TL 1,799,106,696 corresponds to the cost incurred from electricity trading activities.

19 Other operating income and other operating expenses

Details of other operating income for the periods ended 31 March 2025 and 2024 are as follows:

	1 January 31 March 2025	1 January 31 March 2024
Foreign exchange income arising from operating activities	4,873,150	300,551,891
Interest income from commercial trasactions	165,218,256	78,674,115
Provision for lawsuits no longer applicable	-	4,281,018
Provision for trade receivables no longer applicable	14,306	27,715
Discount income from reversal of trade receivables	11,064,322	8,292,073
Other	10,054,842	23,516,172
	191,224,876	415,342,984

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

19 Other operating income and other operating expenses (continued)

Details of other operating expenses for the periods ended 31 March 2025 and 2024 are as follows:

	1 January 31 March 2025	1 January 31 March 2024
Donations	(600,777)	(969,296)
Litigation expenses	(474,743)	-
Foreign exchange expense arising from operating activities	(7,075,163)	(40,821,894)
Other	(129,114)	109,916
	(8,279,797)	(41,681,274)

20 Financial income and expense

The details of finance income for the periods ended 31 March 2025 and 2024 is as follows:

	1 January 31 March 2025	1 January 31 March 2024
Foreign exchange income arising from financing activities Interest income Interest income from related parties Other	37,252,172 66,365,909 37,206,659 25,812	163,251,808 143,307,766 34,888,128 53,413
	140,850,552	341,501,115

The details of financial expenses for the periods ended 31 March 2025 and 2024 is as follows:

	1 January 31 March 2025	1 January 31 March 2024
Foreign exchange losses arising from financing activities	(1,239,619,483)	(1,870,038,016)
Foreign exchange loses recycled from hedge fund	(732,419,047)	(482,277,859)
Bond interest expenses	(412,224,557)	(627,098,314)
Bank commission and other expenses	(14,482,807)	(8,951,250)
Right of use obligations interest expenses (Note 23)	(7,737,040)	(4,116,000)
	(2,406,482,934)	(2,992,481,439)

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

21 Income and expense from investing activities

The details of gains from investing activities for the periods ended 31 March 2025 and 2024 are as follows:

	1 January 31 March 2025	1 January 31 March 2024
Securities sales income	48,846,108	17,490
Gains on financial investments presented at fair value	1,210,382	-
Gains from investing rent	98,652	102,931
Currency protected deposit income	-	1,101,637
Gains on scrap sales	-	1,899,355
	50,155,142	3,121,413

The details of losses from investing activities for the year periods 31 March 2025 and 2024 are as follows:

	1 January 31 March 2025	1 January 31 March 2024
Loss on sale of property, plant and equipment	-	(434,471)
	-	(434,471)

22 Taxation on income

Corporation tax

The Group is subject to corporation tax applicable in Türkiye. The corporate tax rate is 25%. Corporate tax rate to be accrued on the taxable corporate income is determined by adding the expenses that cannot be deducted from the tax base in the determination of the commercial income and deducting gains from the tax, non-taxable income and other discounts (previous year losses, if any, and investment discounts used, if preferred).

In Türkiye, provisional tax is calculated and accrued on a quarterly basis. The provisional tax rate that should be calculated on corporate earnings during the taxation phase of 2025 corporate earnings as of temporary tax periods is 25% (31 December 2024: 25%).

Losses can be carried forward for a maximum of 5 years to be deducted from future taxable profits. However, losses cannot be deducted retrospectively from the profits of previous years.

There is no clear and definitive agreement on tax assessment procedures in Türkiye. Companies file their tax returns between 1-25 April following the close of the accounting year to which they relate. These declarations and the accounting records that are the basis of these declarations can be examined and changed by the Tax Office within 5 years.

Deferred taxes

The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between its financial statements as reported for TFRS purposes and its statutory tax financial statements. These differences usually result in the recognition of revenue and expenses in different reporting periods for TFRS and tax purposes.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

22 Taxation on income (continued)

Income withholding tax

There is a withholding tax liability on dividend distributions and this withholding tax liability is accrued in the period in which the dividend payment is made. Dividend payments other than those made to nonresident corporations which have a place of business or permanent representative in Türkiye and resident corporations are subject to withholding tax at the rate of 15%. In the application of withholding tax rates for dividend payments to non-resident corporations and real persons, the withholding tax rates in the related Double Tax Treaty Agreements are also taken into consideration. Allocation of retained earnings to capital is not considered as profit distribution and therefore not subject to withholding tax.

Transfer pricing arrangements

In Türkiye, the transfer pricing provisions of the Corporate Tax Law "disguised profit distribution via transfer pricing" is stated in Article 13 entitled. The communiqué of 18 November 2007 on disguised profit distribution through transfer pricing regulates the details of the application.

If the taxpayer purchases or sells goods or services at a price or price that they determine in contradiction with the principle of conformity with peers, the gain is deemed to be completely or partially distributed implicitly through transfer pricing. Disguised profit distribution through such transfer pricing is considered an unacceptable expense for corporate tax.

Transfer pricing regulations

Transfer pricing is disclosed in the 13th clause of the Corporate Tax Law under the heading "veiled shifting of profit" via transfer pricing. The application details are stated in the "general communiqué regarding veiled shifting of profits via transfer pricing" published on 18 November 2007. Veiled shifting of profits via transfer pricing will not be deducted from tax assessment for the purposes of corporate tax.

Disguised capital

The provisions on disguised capital are regulated under Article 12 of the Corporate Tax Law and accordingly, the portion of all kinds of debts obtained directly or indirectly from shareholders or persons related to shareholders and used in the enterprise exceeding three times the beginning-of-period equity capital of the corporation at any time during the accounting period is considered as disguised capital for the relevant accounting period.

In order for the debts used in the enterprise to be considered as implicit capital;

• Obtained directly or indirectly from a shareholder or a person related to a shareholder,
• Use in business,
• It must exceed three times the institution's equity at any time during the accounting period.

Tax expense

The expense tax for the periods ended 31 March 2025 and 2024 are as follows:

	1 January 31 March 2025	1 January 31 March 2024
Deferred tax expense	(24,672,111)	(944,639,879)
	(24,672,111)	(944,639,879)

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

22 Taxation on income (continued)

Reconciliation of effective tax rate

As of 31 March 2025 and 2024, the reported tax provision is different from the amount calculated using the statutory tax rate on profit before tax. The reconciliation of tax expense / income is as follows:

	1 January	1 January
	31 March 2025	31 March 2024
Period profit / (loss)	161,170,715	895,185,113
Tax income/(expenses)	(24,672,111)	(944,639,879)
Profit/(loss) before taxation	185,842,826	1,839,824,992
Tax calculated with the company's legal tax rate	(46,460,707)	(459,956,248)
Non-deductible expenses	(23,785,720)	(31,921,586)
Tax exemption	62,728,626	60,593,798
The effect of tax losses which no deferred tax recognized	(299,166,053)	(311,265,240)
Non-temporary element of monetary gain/loss	285,431,766	(222,427,166)
Other	(3,420,023)	20,336,563
Tax income/(expense)	(24,672,111)	(944,639,879)

Deferred tax liabilities

As of 31 March 2025 and 2024, the movement of deferred tax liability is as follows:

	2025	2024
Opening balance (1 January)	4,560,504,019	9,755,104,637
Recognized in other comprehensive income	74,076,131	(119,120,800)
Recognised in profit or loss	24,672,111	944,639,879
Closing balance (31 March)	4,659,252,261	10,580,623,716

As of 31 March 2025, and 31 December 2024, the breakdown of deferred tax liabilities is as follows:

	31 March 2025	31 December 2024
Increase / decrease in value of tangible assets measured by fair value	(6,067,042,175)	(6,036,736,502)
Tangible and intangible assets	(19,816,059)	(5,956,851)
Amortized cost adjustment for financial borrowings	(41,269,044)	(46,755,126)
Rediscount on payables	26,995,694	32,573,568
Provision for litigation	3,991,371	4,265,108
Provisions for retirement pay and unused vacation liabilities	40,734,197	29,574,243
Expensing of foreign exchange differences related to prepaid expenses	54,177,963	52,559,921
Expensing capitalized borrowing costs	1,385,863,417	1,444,079,924
Other	(42,887,625)	(34,108,304)
Deferred tax liabilities	(4,659,252,261)	(4,560,504,019)

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

22 Taxation on income (continued)

Deferred tax liabilities (continued)

The breakdown of the unused tax loss carry forwards of the Group are as follows:

		31 March 2025		31 December 2024
		Deferred tax		Deferred tax
	Recognized	Not recognized	Recognized	Not recognized
Expire in 2025	-	-	-	59,159,030
Expire in 2026	-	2,406,815,885	-	2,406,815,885
Expire in 2027	-	156,512,065	-	156,512,065
Expire in 2028	-	2,488,404,904	-	2,488,404,904
Expire in 2029	-	1,283,540,958	-	1,283,540,958
Expire in 2030	-	1,196,664,213	-	-

- 7,531,938,025 - 6,394,432,842 The Group has not recognized deferred tax asset over the unused tax loss carry forwards as of 31 March 2025 due to the significant uncertainties in the projection of the taxable profits in under the Tax Provision Law.

23 Financial liabilities

23.1 Issued bond liabilities

As of 31 March 2025, and 31 December 2024, terms and conditions of financial liabilities are as follows:

					31 March 2025
Currency	Effective interest rate	Maturity for the latest payment	Original currency amount	Short-term	Long-term
USD	8.63%	2027	607,065,417	6,454,224,729	16,513,306,138
				6,454,224,729	16,513,306,138
					31 December 2024
Currency	Effective interest rate	Maturity for the latest payment	Original currency amount	Short-term	Long-term
USD	8.63%	2027	687,436,385	6,975,576,606	19,765,949,060

The Group on the Irish Stock Exchange issued USD 750,000,000 with a maturity of 5.5 years, coupon payments every 6 months, principal and coupon payments at maturity, annual fixed interest rate of 7.75%, on 2 August 2021. With the amount obtained through the bond issuance, the entire loan debt of the Company to the banks has been repaid, and the remaining amount is going to be used for the investments in line with the Company's growth strategy.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

23 Financial liabilities (continued)

23.1 Issued bond liabilities (continued)

The repayments of the bond and debt instruments agreements according to their original maturities as of 31 March 2025 and 31 December 2024 are as follows:

	31 March 2025	31 December 2024
To be paid within 3 months	-	3,610,109,934
To be paid within 3-12 months	6,454,224,729	3,365,466,672
To be paid in 1-2 year	16,513,306,138	6,052,223,093
To be paid in 2-3 year	-	13,713,725,967
	22,967,530,867	26,741,525,666

As of March 31, 2025, the fair value of the issued bonds, which are classified as fixed-interest debt instruments and have a carrying amount of TL 22,967,530,867 (December 31, 2024: TL 26,741,525,666) on the balance sheet, has been determined as TL 22,656,401,573 (December 31, 2024: TL 26,441,253,824) based on calculations using market interest rates, and this value is considered to be close to the carrying amount.

The movement of issued financial liabilities for the period ended 31 March 2025 and 2024 is as follows:

	2025	2024
Opening balance (1 January)	26,741,525,666	31,938,201,888
Principal payments in the period	(2,470,114,553)	-
Interest accrued in the period	412,224,557	627,098,314
Interest paid	(957,169,389)	(1,127,877,052)
Exchange rate differences accrued in the period	1,972,038,530	2,352,315,875
Exchange rate differences subjected to cash flow hedge,
accounted in OCI	(299,664,539)	452,207,653
Inflation effect	(2,431,309,405)	(4,337,044,575)
Closing balance (31 March)	22,967,530,867	29,904,902,103

Financial covenants on bank borrowings

The Issuer shall, not later than the first Interest Payment Date (being 2 February 2022) and at all times thereafter for so long as any Note remains outstanding, maintain one or more cash accounts denominated in U.S. Dollars with one or more Approved Banks (the "Interest Reserve Accounts") and the Issuer shall, commencing from (and including) the first Interest Payment Date and at all times thereafter for so long as any Note remains outstanding, maintain an aggregate amount of cash deposited in its Interest Reserve Accounts in an amount at least equal to:

The Company shall, so long as any Note remains outstanding, fund the interest reserve account on a monthly basis and maintain the required balance given the amount of upcoming interest payment, the amount standing in the account will gradually increase and finally be equal to debt service amount on the date of debt service.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

23 Financial liabilities (continued)

23.2 Lease liabilities

The repayments of the lease liabilities according to their original maturities as of 31 March 2025 and 31 December 2024 are as follows:

	31 March 2025	31 December 2024
To be paid within a year	32,958,484	35,473,449
To be paid in 1-5 years	11,358,216	16,625,462
To be paid over 5 years	23,659,882	29,939,203
	67,976,582	82,038,114

For the period then ended as of 31 March 2025 and 2024, movements of lease liabilities are as follows:

	2025	2024
Opening balance (1 January)	82,038,114	86,594,090
Additions	1,824,707	10,640,254
Accretion of interest	7,737,040	4,116,000
Payments	(16,423,156)	(12,724,836)
Inflation effect	(7,200,123)	(11,170,268)
Closing balance (31 March)	67,976,582	77,455,240

24 Nature and level of risks arising from financial instruments

Financial instruments and financial risk management

The Group may be exposed to the following risks depending on the use of financial instruments:

• Credit risk
• Liquidity risk
• Market risk
• Operational risk

This note provides information on the Group's exposure to the risks outlined above, the Group's objectives, policies and processes for measuring and managing risk, and the Group's management of capital.

Credit risk

Credit risk is the risk that a customer or a counterparty will fail to fulfil its obligations under the contract and is mainly attributable to customer receivables. The carrying values of financial assets represent the maximum exposure to credit risk.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Credit risk (continued)

The maximum credit risk the Group is exposed to as of 31 March 2025 and 31 December 2024 are as follows:

	Receivables
31 March 2025	Trade receivables		Other receivables		Cash and cash equivalents
	Related parties	Other parties	Related parties	Other parties
Maximum exposure to credit risk as of reporting date (A+B+C+D)	508,947,342	2,542,789,672	120,462,068	49,958,861	671,897,526
- Secured part of the maximum credit risk exposures via collateral etc.	508,947,342	2,475,989,752	-	-	-
A. Net book value of financial assets those are neither overdue nor impaired	508,947,342	2,524,093,958	120,462,068	49,958,861	671,897,526
B. Net book value of assets that are overdue but not impaired	-	18,695,714	-	-	-
C. Net book value of impaired	-	-	-	-	-
financial assets
- Overdue (gross carrying amount) - Impairment amount (-)	- -	7,083,121 (7,083,121)	- -	- -	- -
- Secured portion covered with guarantees, etc	-	-	-	-	-
- Overdue (gross carrying amount)	-	-	-	-	-
- Impairment amount (-)	-	-	-	-	-
- Secured portion covered with guarantees, etc	-	-	-	-	-
D. Off-balance sheet items including risk	-	-	-	-	-

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Credit risk (continued)

31 December 2024	Trade receivables		Other receivables	Cash and cash
	Related	Other	Related	Other	equivalents
	parties	parties	parties	parties
Maximum exposure to	3,446,785,224	33,029,203	120,812,491	55,799,059	1,920,151,159
credit risk as of reporting
date (A+B+C+D)
- Secured part of the	3,446,785,224	-	-	-	-
maximum credit risk
exposures via collateral etc,
A. Net book value of	1,034,717,966	33,029,203	120,812,491	55,799,059	1,920,151,159
financial assets those are
neither overdue nor
impaired
B. Net book value of assets	2,412,067,258	-	-	-	-
that are overdue but not
impaired
C. Net book value of	-	-	-	-	-
impaired financial assets
- Overdue (gross carrying	-	7,810,678	-	-	-
amount)
- Impairment amount (-)	-	(7,810,678)	-	-	-
- Secured portion covered	-	-	-	-	-
with guarantees, etc
- Overdue (gross carrying	-	-	-	-	-
amount)
- Impairment amount (-)	-	-	-	-	-
- Secured portion covered	-	-	-	-	-
with guarantees, etc
D. Off-balance sheet items	-	-	-	-	-
including risk

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial liabilities in the future. The Group's liquidity risk is managed by providing sufficient financing facilities from various financial institutions in a way that does not harm or damage the Group's reputation in order to fund the current and future debt requirements under normal conditions or in crisis situations.

As at 31 March 2025 and 31 December 2024, the maturity of financial liabilities including estimated interest payments according to the payment schedule is as follows:

31 March 2025	Book value	Contractual cash outflow	0-3 months	3-12 months	1-5 years	> 5 years
Non-derivative financial liabilities
Financial liabilities	22,967,530,867	25,918,401,398	-	6,780,865,913	19,137,535,485	-
Financial lease liabilities (TFRS 16)	67,976,582	187,970,484	10,465,336	42,558,197	43,770,414	91,176,537
Trade payables to related parties	27,472,546	27,472,546	27,472,546	-	-	-
Trade payables to third parties	93,896,221	93,896,221	93,130,986	765,235	-	-
Total	23,156,876,216	26,227,740,649	131,068,868	6,824,189,345	19,181,305,899	91,176,537
		Contractual
31 December 2024	Book Value	cash outflow	0-3 months	3-12 months	1-5 years	> 5 years
Non-derivative financial liabilities
Financial liabilities	26,741,525,666	30,287,573,936	3,638,442,314	3,536,828,184	23,112,303,438	-
Financial lease liabilities (TFRS 16)	82,038,114	221,814,555	11,215,502	52,785,860	56,345,670	101,467,523
Trade payables to related parties	46,471,221	46,471,221	46,471,221	-	-	-
Trade payables to third parties	206,068,557	206,068,557	155,578,523	50,490,034	-	-
Total	27,076,103,558	30,761,928,269	3,851,707,560	3,640,104,078	23,168,649,108	101,467,523

Market risk

Market risk; The risk of changes in the money market, such as exchange rates, interest rates or the prices of instruments traded in the securities markets, may change the Group's income or the value of its financial assets. Market risk management aims to optimize return while controlling market risk exposure within acceptable limits.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Currency risk

While the Group's functional currency is Turkish Lira, the Group is exposed to foreign exchange risks. The Group has outstanding US Dollar debt instruments due to power plant investments. The Group also realizes significant USD indexed sales within the scope of the Feed-in Tariff.

As of 31 March 2025, and 31 December 2024, the foreign currency position of the Group arises from foreign currency assets and liabilities stated in the table below.

			31 March 2025
			Original Amounts
	TL Equivalent	US Dollars	EUR
Assets
Cash and cash equivalents	502,640,856	13,306,641	2,643
Other receivables from related parties	120,462,067	3,189,730	-
Trade receivables due from related parties	19,073,636	440,220	60,156
Trade receivables due from third parties	97,888	-	2,405
Total Assets	642,274,447	16,936,591	65,204
Liabilities
Short-term and long-term financial liabilities	(22,967,530,867)	(607,065,417)	-
Short-term trade payables due to third parties	(14,910,277)	(320,434)	(68,352)
Short-term trade payables due to related parties	(2,013,131)	(53,210)	-
Total liabilities	(22,984,454,275)	(607,439,061)	(68,352)
Foreign currency liability position	(22,342,179,828)	(590,502,470)	(3,148)
Amounts subject to cash flow hedge accounting *	6,347,466,438	168,075,350	-
Net foreign currency position after cash flow hedge	(15,994,713,390)	(422,427,120)	(3,148)

				31 December 2024
				Original Amounts
	TL Equivalent
	(indexed values)	TL Equivalent	US Dollars	EUR
Assets
Cash and cash equivalents	376,764,710	342,318,044	9,694,057	8,406
Financial investments	867,052,260	787,779,816	22,329,170	-
Other receivables due from related parties	120,812,517	109,766,927	3,111,281	-
Trade receivables due from related parties	1,427,723,303	1,297,190,092	36,761,983	5,888
Total assets	2,792,352,790	2,537,054,879	71,896,491	14,294
Liabilities
Short-term and long-term financial liabilities	(26,741,525,666)	(24,296,614,104)	(687,436,385)	-
Short-term trade payables due to third parties	(25,820,556)	(23,459,846)	(460,541)	(195,166)
Total liabilities	(26,767,346,222)	(24,320,073,950)	(687,896,926)	(195,166)
Foreign currency liability position	(23,974,993,432)	(21,783,019,071)	(616,000,435)	(180,872)
Amounts subject to cash flow hedge accounting *	7,507,901,976	6,821,473,065	193,350,767	-
Net foreign currency position after cash flow hedge	(16,467,091,456)	(14,961,546,006)	(422,649,668)	(180,872)

* Please refer to Note 2.8

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Currency risk (continued)

Sensitivity analysis

The Group is mainly exposed to foreign currency risk in USD Dollars. The following table details the Group's sensitivity to a 10% increase and decrease in US Dollars and Euro, 10% is the rate used to report the exchange rate risk within the Group to the executives and this rate indicates the possible change in the exchange rates expected by the management. The sensitivity analysis covers only foreign currency denominated monetary items at the end of the year and shows the effects of the 10% increase in foreign exchange rates of these items at the end of the year excluding tax effects. A positive value indicates an increase in profit or loss and other equity items.

Exchange rate sensitivity analysis table
31 March 2025
	Increase in value of foreign currency	Decrease in value of foreign currency
If US dollar gains/losses 10% against TL
1- TL net assets / liabilities	(1,598,198,093)	1,598,198,093
2- TL hedged portion (-)	634,746,644	(634,746,644)
3- TL net effect (1 + 2)	(963,451,449)	963,451,449
If Euro gains/losses 10% against TL
4- TL net assets / liabilities	(12,836)	12,836
5- TL hedged portion (-)	-	-
6- Net effect of TL (4 + 5)	(12,836)	12,836
Total (3 + 6)	(963,464,285)	963,464,285

Exchange rate sensitivity analysis table 31 December 2024
If US dollar gains/losses 10% against TL
1- TL net assets / liabilities	(1,493,804,534)	1,493,804,534
2- TL hedged portion (-)	682,147,307	(682,147,307)
3- TL net effect (1 + 2)	(811,657,227)	811,657,227
If Euro gains/losses 10% against TL
4- TL net assets / liabilities	(665,652)	665,652
5- TL hedged portion (-)	-	-
6- Net effect of TL (4 + 5)	(665,652)	665,652
Total (3 + 6)	(812,322,879)	812,322,879

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Capital risk managements

In managing capital, the Group's objectives are to maintain the Group's ability to continue to operate in order to maintain an optimal capital structure to provide returns to shareholders, benefits to other shareholders, and to reduce capital costs.

In order to maintain or adjust the capital structure, the Group determines the amount of dividend payable to shareholders.

The Group monitors capital on the basis of the net financial debt / equity ratio. Net financial debt is calculated by deducting cash and cash equivalents from total financial debt.

As of 31 March 2025, and 31 December 2024, net financial liabilities/equity ratios are as follows:

	31 March 2025	31 December 2024
Total financial liabilities *	22,967,530,867	26,741,525,666
Cash and cash equivalents	(1,355,343,151)	(3,712,722,896)
Net financial liabilities	21,612,187,716	23,028,802,770
Equity	30,502,160,444	30,118,761,336
	70,85%	76,46%

* Includes issued bond liabilities (Note 23.1).

Fair value of financial instruments

When measuring the fair value of an asset or liability, the Company uses market observable inputs. Fair value measurements are categorised into different levels of the fair value hierarchy based on the information used in the valuation techniques described below.

• Level 1: Quoted prices (unadjusted) in markets for identical assets or liabilities;
• Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
• Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the information used to measure the fair value of an asset or liability can be categorised into a different level of the fair value hierarchy, that fair value is categorised into the same level of the fair value hierarchy that includes the least significant information for the overall measurement.

The Company recognises transfers between levels in the fair value hierarchy at the end of the reporting period in which the change occurs.

Fair value is the amount that would be realised in a sale transaction between two parties willing to exchange a financial asset, other than in a forced sale or liquidation, and is most readily measurable at fair value.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

24 Nature and level of risks arising from financial instruments (continued)

Fair value of financial instruments (continued)

The Company has generally assumed that the carrying amounts of financial instruments with short remaining maturities or financial instruments that are initially recognised close to the reporting date approximate their fair values. It is also assumed that the fair value of foreign currency assets and liabilities within financial instruments, which are translated into Turkish Lira at the year-end exchange rate, approximates their carrying value.

However, since it is necessary to use judgement to determine the estimated fair value, fair value measurements may not reflect the values that may occur in current market conditions. Therefore, apart from the aforementioned assumptions, inputs that are not based on observable market data for financial assets or liabilities (unobservable inputs), which are used by the Company management in the use of judgement in fair value analysis, have been assessed within the scope of the classification defined as level 3 of the valuation method for the comparative fair value analysis of long-term financial liabilities.

Financial assets

The carrying values of financial assets including cash and cash equivalents and financial investments which are accounted with their costs are estimated to be their fair values since they are short term.

The carrying values of trade receivables along with the related allowances for uncollectability are estimated to be their fair values.

Financial liabilities

The carrying values of trade payables are estimated to be their fair values since they are short term and leasing liabilities are estimated to be their fair values assuming that there is no significant change in the market prices of similar leases with the same maturity. The fair value of the Eurobond liability has been calculated and disclosed in Note 23.1.

Derivative instruments

The Company uses derivative financial instruments (mainly foreign currency forward contracts) to hedge its foreign currency risk. Derivative financial instruments are measured at fair value at the contracts date and remeasured at fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are recognised in the statement of profit or loss in the period in which they arise.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

25 Earnings per share

The calculation of basic and diluted Earnings per share for the periods ended 31 March 2025 and 2024 were based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares as follows:

	31 March 2025	31 March 2024
Numerator:
Income / (loss) for the period attributable to owners of the company	161,170,715	895,185,113
Denominator:
Weighted average number of shares	698,894,974	698,894,974
Basic and diluted profit /(loss) per share	0.23	1.28
31 March 2025	Number of shares	Time weighting (days)
Outstanding ordinary shares as of 1 January 2025 (Par Value: TL 1)	698,894,974	90
Weighted average for the period	698,894,974	90 / 90
31 March 2024	Number of shares	Time weighting (days)
Outstanding ordinary shares as of 1 January 2024 (Par Value: TL 1)	698,894,974	90
Weighted average for the period	698,894,974	90 / 90

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

26 Prepaid expenses

As of 31 March 2025 and 31 December 2024, short term prepaid expenses as follows:

	31 March 2025	31 December 2024
Advances given for purchase orders	75,487,372	82,828,210
Prepaid expense for the following months	9,701,838	34,817,782
Job advances	341,420	203,971
	85,530,630	117,849,963

As of 31 March 2025 and 31 December 2024, long term prepaid expenses as follows:

	31 March 2025	31 December 2024
Advances given *	318,765,214	317,228,485
	318,765,214	317,228,485

* This amount comprises advances paid to Parla Solar Hücre ve Panel Üretim A.Ş. for the procurement of solar panels.

27 Financial investments

As of 31 March 2025 and 31 December 2024, financial investments are as follows:

	31 March 2025	31 December 2024
Restricted accounts	296,177,802	847,668,462
- Interest reserve account related to Eurobond *	296,177,802	847,668,462
Other financial investments **	387,267,823	944,903,275
	683,445,625	1,792,571,737

* The Company shall, so long as any Note remains outstanding, fund the interest reserve account on a monthly basis and maintain the required balance given the amount of upcoming interest payment, the amount standing in the account will gradually increase and finally be equal to debt service amount on the date of debt service.

** Comprised of short-term funds and bonds with maturities of less than one year.

Notes to the interim consolidated financial statements for the three-month period ended 31 March 2025

(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of March 31, 2025, unless otherwise indicated.)

28 Monetary gain

	1 January
	31 March
	2025
Balance sheet items	1,789,432,928
Tangible and intangible fixed assets	4,911,168,552
Right of use assets	33,459,380
Inventories	3,522,863
Prepaid expenses	18,577,899
Paid-in capital	(731,157,369)
Restricted reserves	(23,944,628)
Premiums/discounts on shares	(76,646,684)
Treasury shares	17,025,336
Deferred tax liabilities	(416,955,603)
Accumulated other comprehensive income and expenses not to be reclassified to profit or loss	(9,844,015)
Accumulated other comprehensive income and expenses to be reclassified to profit or loss	1,777,219,126
Retained earnings	(3,712,991,929)
Profit or loss statement items	48,009,251
Revenue	(94,746,951)
Cost of sales	76,960,449
General administrative expenses	9,460,537
Other income/expenses from operating activities	(11,325,951)
Income/expenses from investing activities	(2,666,463)
Financing income/expenses	70,327,630
	1,837,442,179

29 Events after the reporting period

Uşak WPP capacity increase project has been completed as of 18 April 2025 with the approval of the Ministry of Energy and Natural Resources (MENR) for the displacement of 5 * 1.5 MW = 7.5 MW turbines and commissioning of 6 MW new turbines in order to increase efficiency. The capacity increase of 6 MWm, the total installed capacity of Uşak WPP has increased from 209.65 MWm to 215.65 MWm. Total installed capacity, which was 1.180 MWm as of 18 April 2025, increased by 0.5% to 1,186 MWm.