AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ A.Ş.

Annual / Quarterly Financial Statement May 12, 2025

8878_rns_2025-05-12_045b7a2d-e4fa-4a76-a4b7-6e7a1b2b50bb.pdf

Annual / Quarterly Financial Statement

Open in Viewer

Opens in native device viewer

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS

CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (ORIGINALLY ISSUED IN TURKISH)

Consolidated Balance Sheet1-2
Consolidated Statements of Profit or Loss3
Consolidated Statements of Other Comprehensive Income4
Consolidated Statements of Changes in Equity5
Consolidated Statements of Cash Flow6-7
Notes to The Consolidated Financial Statements8-86
Note 1- Group's Organization And Nature Of The Operations 8-13
Note 2 - Basis Of The Consolidated Financial Statements 14-38
Note 3 - Shares In Other Companies And Business Combinations 39-42
Note 4 - Related Party Disclosures43-44
Note 5 - Cash And Cash Equivalents45
Note 6 - Financial Investments45-46
Note 7 - Financial Borrowings47-47
Note 8 - Trade Receivables And Payables47-49
Note 9 - Other Receivables And Payables49
Note 10 - Employee Benefits Obligations 50
Note 11 – Inventories…50
Note 12 - Other Current Assets51
Note 13 - Prepaid Expenses51
Note 14 - Deferred Income 52
Note 15 - Right Of Use Assets53
Note 16 - Tangible Fixed Assets54
Note 17 - Intangible Fixed Assets55
Note 18 - Investments Valued by Equity Method56-57
Note 19 - Government Incentives And Grants57-58
Note 20 - Provisions, Contingent Liabilities And Assets58-59
Note 21 - Employee Benefıts60-61
Note 22 - Derivative Instruments61
Note 23 – Capital, Reserves And Other Equity Items62-65
Note 24 - Revenue And Cost Of Sales65-66
Note 25 - General Administrative Expenses, Marketing Expenses And Research and Development Expenses67
Note 26 - Expenses By Nature67-68
Note 27 - Other Income / (Expenses) From Operating Activities 69
Note 28 - Income / (Expenses) From Investment Activities69-70
Note 29 - Finance Income / (Expenses)70
Note 30 – Monetary Gain / (Loss),net 71
Note 31 – Tax Assets and Liabilities72-75
Note 32 – Earnings / (Loss) Per Share75
Note 33 – Exposure to Financial Risks Due to Financial Instrument 76-84
Note 34 – Financial Instruments85-86
TABLE OF CONTENTS PAGE
Note 35 – Subsequent Events After The Financial Position Statement Date 86

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

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

Current Period
Unaudited
Prior Period
Audited
Footnote
Referances 31.03.2025 31.12.2024
ASSETS
CURRENT ASSETS
Cash and Cash Equivalent 5 642.485.137 710.512.353
Trade Receivables 8 255.224.796 393.890.835
- Trade receivables from related parties - 2.189.779
- Trade receivables from other parties 255.224.796 391.701.056
Other Receivables 9 13.873.249 8.916.179
- Other receivables from related parties - -
- Other receivables from other parties 13.873.249 8.916.179
Inventories 11 1.554.359.139 1.345.054.396
Prepaid Expenses 13 82.284.079 134.127.476
Current Period Tax Related Assets 31 5.408.432 5.988.012
Other Current Assets 12 30.222.958 17.273.151
TOTAL CURRENT ASSETS 2.583.857.790 2.615.762.402
NON-CURRENT ASSETS
Other Receivables 9 545.583 578.118
- Other receivables from related parties - -
- Other receivables from other parties 545.583 578.118
Financial Investments 6 9.498.845 10.113.295
Investments Valued by Equity Pick-up Method 18 13.949.546 8.491.313
Right of Use Assets 15 25.240.967 30.002.864
Tangible Fixed Assets 16 191.748.136 180.417.517
Intangible Fixed Assets 17 97.726.320 88.971.001
Prepaid Expenses 13 114.749.379 111.735.454
Deferred Tax Assets 31 128.314.754 122.439.580
TOTAL NON-CURRENT ASSETS 581.773.530 552.749.142
TOTAL ASSETS 3.165.631.320 3.168.511.544

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS CONSOLIDATED BALANCE SHEETS

AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

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

Footnote Current Period
Unaudited
Prior Period
Audited
Referances 31.03.2025 31.12.2024
LIABILITIES
CURRENT LIABILITIES
Financial Borrowings 7 159.077.532 154.620.668
Current Installment of Long Term Financial Borrowings 7 200.141.368 203.141.152
Trade Payables 8 108.964.471 100.655.779
- Trade payables to related parties 24.835.582 575.350
- Trade payables to other parties 84.128.889 100.080.429
Employee Benefit Liabilities 10 72.139.914 40.903.691
Other Payables 9 12.660.082 18.175.147
- Other payables to related parties - -
- Other payables to other parties 12.660.082 18.175.147
Deferred Income 14 511.008.108 468.009.516
Short Term Provisions 35.320.136 42.279.021
- Provisions for employee benefits 21 31.511.273 38.492.874
- Other short term provisions 20 3.808.863 3.786.147
Derivative Instruments 22 9.945.189 6.748.313
TOTAL CURRENT LIABILITIES 1.109.256.800 1.034.533.287
NON-CURRENT LIABILITIES
Financial Borrowings 7 18.736.122 12.420.727
Deferred Income 14 42.988.347 67.332.697
Long Term Provisions 25.736.419 24.444.469
- Provision for employee benefits 21 23.649.228 22.283.077
- Other Long-Term Provisions 20 2.087.191 2.161.392
TOTAL NON-CURRENT LIABILITIES 87.460.888 104.197.893
TOTAL LIABILITIES 1.196.717.688 1.138.731.180
SHAREHOLDERS' EQUITY
Parent Company's Equity 1.968.913.632 2.029.780.364
Paid In Capital 23.1 58.000.000 58.000.000
Adjustment to Share Capital 192.501.705 192.501.705
Premiums/Discounts Related to Shares 23.5 567.543.152 567.543.152
Other Comprehensive Income or Loss
Not to Be Reclassified Under Profit or Loss (387.975) 981.028
Remeasurement Gains (Loss) (387.975) 981.028
- Actuarial gains/losses on defined benefit plans 23.4 (387.975) 981.028
Restricted Reserves 23.2 31.158.461 31.158.461
Retained Earnings or Losses 23.3 1.179.596.018 1.168.677.568
Net Profit or Loss for the Period 32 (59.497.729) 10.918.450
Minority Interests - -
TOTAL SHAREHOLDERS' EQUITY 1.968.913.632 2.029.780.364
TOTAL LIABILITIES AND EQUITY 3.165.631.320 3.168.511.544

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE PERIODS ENDED AT 31 MARCH 2025 AND 2024

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

Current Period Prior Period
Unaudited Unaudited
Footnote
Referances
01.01.-
31.03.2025
01.01.-
31.03.2024
PROFIT OR LOSS
Revenue 24.1 170.654.275 342.198.397
Cost of Sales 24.2 (103.689.273) (259.871.564)
GROSS PROFIT / (LOSS) 66.965.002 82.326.833
General Administrative Expenses 26.1 (55.069.399) (54.236.731)
Marketing Expenses 26.2 (16.322.372) (14.191.460)
Research and Development Expenses 26.3 (4.245.818) (4.706.074)
Other Income from Operation Activities 27.1 56.250.805 93.175.972
Other Expense from Operation Activities 27.2 (55.486.675) (43.348.919)
PROFIT/ (LOSS) FROM OPERATING ACTIVITIES (7.908.457) 59.019.621
Income From Investment Activities 28.1 13.173.756 53.535.335
Expense From Investment Activities 28.2 - (1.004.049)
Income / (Loss) From Investments Accounted By Equity Method 18 5.460.752 2.018.284
OPERATING INCOME BEFORE FINANCIAL
INCOME/ (EXPENSE) 10.726.051 113.569.191
Financial Income 29.1 103.925.810 52.475.173
Financial Expenses 29.2 (80.511.097) (69.418.888)
Monetary Gain / (Loss) 30 (99.104.744) (247.640.467)
PROFIT/ (LOSS) BEFORE TAX FROM
CONTINUING OPERATIONS (64.963.980) (151.014.991)
Operating Activity Tax Income/ (Expense) 5.466.251 14.040.225
Current Tax (Expense) / Income 31 - (2.726.886)
Deferred Tax (Expense) / Income 31 5.466.251 16.767.111
NET PROFIT / (LOSS) FOR THE PERIOD 32 (59.497.729) (136.974.766)
Profit / (Loss) Distribution
Minortiy Interests - -
Parent Company's Share 32 (59.497.729) (136.974.766)
Earnings / (Loss) Per Share 32 (1,03) (2,36)

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE PERIODS ENDED AT 31 MARCH 2025 AND 2024

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

Footnote
Referances
Current
Period
Unaudited
01.01.-
31.03.2025
Prior Period
Unaudited
01.01.-
31.03.2024
NET PROFIT / (LOSS) FOR THE YEAR (59.497.729) (136.974.766)
OTHER COMPREHENSIVE INCOME / (LOSS)
Not To Be Reclassified Under Profit or Loss (1.369.003) (868.032)
Gains / (Losses) on Remeasurement of Defined Benefit Plans 21 (1.777.926) (1.127.315)
Taxes in Other Comprehensive Income Not to Be
Reclassified to Profit or Loss 408.923 259.283
- Current Tax Expense/Income - -
- Deferred Tax Expense/Income 31 408.923 259.283
OTHER COMPREHENSIVE INCOME / (EXPENSE) (1.369.003) (868.032)
TOTAL COMPREHENSIVE INCOME / (EXPENSE) (60.866.732) (137.842.798)
Distribution of Total Comprehensive Income /(Expense)
Minortiy Interests - -
Parent Company Shares (60.866.732) (137.842.798)

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIODS ENDED AT 31 MARCH 2025 AND 2024

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

Other
Comprehensive
Income Not to be
Reclassified Under
Profit and Loss
Retained Earnings
Gain/(Losses) on
Paid in Capital Premiums Remeasurement Retained Retained Parent Total
Footnote Share Adjustment Related to on Defined Benefit Restricted Earnings or Earnings or Company's Minority Shareholder's
References Capital Differences Shares Plans Reserves Losses Losses Equity Interests Equity
Balances at 31 December 2023 (Beginning of the period) 58.000.000 192.501.705 567.543.152 276.448 31.158.461 824.978.011 512.278.210 2.186.735.987 - 2.186.735.987
Transfer 23.3 - - - - - 512.278.210 (512.278.210) - - -
Total Comprehensive Income (Expense) - - - (868.032) - - (136.974.766) (137.842.798) - (137.842.798)
-
Profit (Loss) for the Period
32 - - - - - - (136.974.766) (136.974.766) - (136.974.766)
-
Other Comprehensive Income (Loss)
23.4 - - - (868.032) - - - (868.032) - (868.032)
Balances at 31 March
2024
(End of the period)
58.000.000 192.501.705 567.543.152 (591.584) 31.158.461 1.337.256.221 (136.974.766) 2.048.893.189 - 2.048.893.189
Balances at 31 December 2024 (Beginning of the period) 58.000.000 192.501.705 567.543.152 981.028 31.158.461 1.168.677.568 10.918.450 2.029.780.364 - 2.029.780.364
Transfer 23.3 - - - - - 10.918.450 (10.918.450) - - -
Total Comprehensive Income (Expense) - - - (1.369.003) - - (59.497.729) (60.866.732) - (60.866.732)
-
Profit (Loss) for the Period
32 - - - - - - (59.497.729) (59.497.729) - (59.497.729)
-
Other Comprehensive Income (Loss)
23.4 - - - (1.369.003) - - - (1.369.003) - (1.369.003)
Balances at 31 March
2025 (End of the period)
58.000.000 192.501.705 567.543.152 (387.975) 31.158.461 1.179.596.018 (59.497.729) 1.968.913.632 - 1.968.913.632

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED AT 31 MARCH 2025 AND 2024

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

Footnote
References
Current
Period
Unaudited
01.01.-
31.03.2025
Prior Period
Unaudited
01.01.-
31.03.2024
CASH FLOW FROM OPERATING ACTIVITIES 21.531.693 474.781.793
Net Profit (Loss) For the Period
- Operating Activity Profit (Loss) For the Period
32 (59.497.729)
(59.497.729)
(136.974.766)
(136.974.766)
Adjustments Related to Reconciliation of Profit / (Loss)
Adjustments to Depreciation and Amortization Expenses 15 - 16 - 17 13.135.942 13.952.071
Adjustments to Impairment (Cancellation) - 10.235
-Adjustments to Impairment (Cancellation) in Receivables 27.2 - 10.235
Adjustments to Provisions (463.260) (913.095)
-Adjustments to Employee Benefit Provisions (Cancellation) 21 (411.775) 3.339.620
- Corrections Regarding Warranty Provisions (Cancellation) 20 (51.485) (4.252.715)
Adjustments to Interest (Income) and Expense 29 724.717 (14.579.033)
- Adjustments to Interest Income 2.993.879 (7.070.913)
- Adjustments to Interest Expense (2.269.162) (7.508.120)
- Adjustments of discount on trade payables 27.2 9.481.707 12.861.880
- Adjustments of discount on trade receivables 27.1 (11.750.869) (20.370.000)
Adjustments to Tax (Income) and Expense 31 (5.466.251) (16.767.111)
Adjustments for Monetary Gain/(Loss) 65.877.522 292.137.583
Changes in Operating Capital
Decrease (Increase) in Financial Investments 6 614.450 266.896.242
Changes in Trade Receivables 8 150.416.908 359.254.402
- Changes in Trade Receivables From Related Parties 2.189.779 (2.547.507)
- Changes in Trade Receivables From Other Parties 148.227.129 361.801.909
Changes in Other Receivables Related to Operating Activities 9 (4.924.535) (2.151.967)
- Changes in Other Receivables From Related Parties - -
- Changes in Other Receivables From Other Parties (4.924.535) (2.151.967)
Adjustments for Decreases (Increases) in Stocks 11 (209.304.743) (81.449.632)
Changes in Prepaid Expenses 13 48.829.472 (10.699.452)
Changes in Other Assets Related Activities 12 (12.370.227) 1.461.087
Increase (Decrease) in Other Liabilities Related to Activities 20 3.122.675 1.506.511
Changes in Trade Payables 8 (1.173.015) (88.622.486)
- Changes in Trade Payables to Relates Parties 24.260.232 23.049.531
- Changes in Trade Payables to Other Parties (25.433.247) (111.672.017)
Changes in Employee Benefit Payables 10 31.236.223 12.942.715
Changes in Other Payables Related the Operating Activities
- Changes in Other Payables Related the Operating Activities to Related
Parties
9 (17.880.698)
-
(14.319.488)
-
- Changes in Other Payables Related the Operating Activities to Other
Parties (17.880.698) (14.319.488)
Changes in Deferred Income 14 18.654.242 (106.902.023)

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED AT 31 MARCH 2025 AND 2024

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

Footnote
Referances
Current
Period
Unaudited
01.01.-
31.03.2025
Prior Period
Unaudited
01.01.-
31.03.2024
CASH FLOWS FROM INVESTING ACTIVITIES (28.459.983) (17.880.717)
Cash Outflow from Purchases of Tangible and Intangible Asset (28.505.729) (18.367.902)
- Cash Outflow from Purchases of Tangible Asset 16 (15.522.400) (16.108.330)
- Cash Outflow from Purchases of Intangible Asset 17 (12.983.329) (2.259.572)
Cash Inflows from the Sale of Tangible and Intangible Assets 45.746 487.185
- Cash Inflows from the Sale of Tangible and Intangible Assets 16 45.746 487.185
CASH FLOW FROM FINANCING ACTIVITIES 3.788.500 87.966.615
Cash Inflows from Borrowing 35.181.904 85.479.919
- Cash inflows from loans 7 35.181.904 85.479.919
Cash Outflows Related to Debt Payments (28.399.525) (4.584.217)
- Cash Outflows Related to Loan Repayments 7 (28.399.525) (4.584.217)
Interest Paid 29.2 (5.687.481) (1.211.259)
Interest Received 29.1 2.693.602 8.282.172
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE EFFECT
OF EXCHANGE RATE CHANGES (3.139.790) 544.867.691
INFLATION EFFECT ON CASH (64.887.426) (285.582.709)
NET INCREASE/DECREASE OF CASH AND CASH EQUIVALENTS (68.027.216) 259.284.982
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 5 710.512.353 398.917.639

The accompanying notes are an integral part of these financial statements.

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 5 642.485.137 658.202.621

NOTE 1 – GROUP'S ORGANIZATION AND NATURE OF THE OPERATIONS

SDT Uzay ve Savunma Teknolojileri Anonim Şirketi, its subsidiaries and joint operations will be referred to as "Group" in the footnotes of the consolidated financial statements. Information regarding the activities of the Company and joint operations included in the consolidation is as follows;

SDT Uzay ve Savunma Teknolojileri Anonim Şirketi (Referred as "Company" and/or "SDT Uzay")

The company, SDT Uzay ve Savunma Teknolojileri Bilişim Üretim Danışmanlık Ticaret Anonim Şirketi was established in Ankara / Türkiye on February 11, 2005, and started to use its current title by changing its title as of July 13, 2017.

The main activity of the company is the production, import and export of all kinds of electrotechnical, electronic, electromechanical and mechatronic products related to space and defense technologies.

The shares of SDT Uzay ve Savunma Teknolojileri Anonim Şirketi are traded on Borsa Istanbul Star Market as since January 04, 2023 with the code " SDTTR " and continuous trading method.

As of 31 March 2025, the ongoing research, development and production phase projects are as follows:

Project Name Project Description
ACMI DL Datalink Prototype Development Project for Air Combat Maneuvering Instrumentation
Pod
AGAMA GOREVSAYAR 12P (AGS12) Manufacturing of a Mission Computer System for Land Vehicle
Production of Control Unit for the Fire Control Unit of the Medium-Range Anti-Tank
AKÜ KB SERİ ÜRETİM Weapon System
ANKA_S GVKS ANKA UAV Data Recording System
ARTUK Product on Detection, Reporting, Scanning and Application Catalogue Development
ASELSAN FASON ÜRETİM Contracted Production: Fibre Optic, LCD, Card, and Mission Computer
Entire Supply of Guidance Electronics for ASELSAN Precision Guidance Kit Type-3
ASELSAN HGK-3 (HGK-3)
ASFAT HGK Entire Supply of Guidance Electronics for ASFAT- Precision Guidance Kit Type-3
(HGK-3)
ATAK -VKS ATAK Helicopter Data Recording System Project
ATLAS Elektronik Kart Üretimi Atlas Kart (Inertial Measurement Unit) Manufacturing
AVCI Integrated Mini/Micro UAV Detection and Interception System Project
Aselpod VKS Aselpod Data Recorder
CBUGS Cloud Based User Ground Segment Project
Çanta Tipi Sinyal Karıştırıcı Sistem Handbag Type RF Jammer
Çekirge Ground Station Integration
EMI/EMC EMI/EMC Test Services
ETR Electronic Scanning Radar (ESR) Development Project
F16_MEP
FESİM
Serial Production of ACMI System
Missile Training Simulator Project
Flutter Excitation System (FES) Flutter Excitation System Project for Aerial Platform
Modüler Bilgisayar GPS, LCD, Konsol, Servo Arayüz Birimi, GörevSayar, Fiber Optik
GlGS_U Güçlendirici, Fason Üretimleri
GÖKÇE KART National Precision Guidance Kit Production
GKB Image Coding Unit
GKT-1 Bakım Göktürk-1 Satellite System Maintenance and Operation Service Contract
Görgüç Ürünleştirme Image Evaluation and Target Detection (Görgüç) Product

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

Project Name (in continuation) Project Description (in continuation)
Competition for Detection and Identification of Naval Targets on Synthetic Aperture
GÖRÜ Radar Imagery Project
GVKS Mission Data Recording System Production
GK-Y Göktürk-Y Ground System Development Project
Görevsayar Mission Computer Production
HAKBD Anka UAV Ground Control Computer Hardware Product
HBB Air Unit Computer Product
HETS Helicopter Obstacle Detection System Project
HÜRKUŞ-B DVKS HÜRKUŞ-B Digital Data Recording System
HGK-84 Production of Precision Guidance Kit Electronics
ILK Infrared Launcher Kit Production
KAŞİF-FASON Production of Precision Guidance Kit (HGK-82)
Kaşif Kartları Electronic Card Production for Kaşif Project
Kaşif Hibrit Production of Global Positioning Devices
KI2S Production of Bone-Conduction Headsets
KLAVYE Production of Ruggedized Keyboards
KONSOL Production of Consoles
KÖ-ATESİM Small Scale Infantry Shooting Training Simulator Development
LAB Kartları Production of Electronic Cards for Laser Seeker
Lançer Yönetim Bilgisayarı-Lyb Launcher Management Computer Project
Lcd/Fo/Görevsayar/Konsol (Lfgk) Production of LCDs, Fibre Optics, Anti-Mission Systems, and Consoles
LSS Life Support System Project for KAAN Aircraft
LTO-7 Upgrade of Göktürk Ground Station Offline Storage Unit
LNA Kartı Production of Antenna Cards
MCT ARAYUZ BIRIMI_KONSOL Production of Consoles
MHYS - SAKARYA Geospatial Map Management System Project
MİLLİ HGK Entire Supply of National Precision Guidance Kit (Type-1) Guidance Electronics
miniCOMINT MiniCOMINT System Development Project
MMU: IBCF & SAR/ISAR GIF KAAN Aircraft's SAR/ISAR Image Based Classification Function Set Project
MSTTS UKB Production of Remote Command Units for Identification Friend or Foe Systems
MUHAREBESİM Naval Combat Training Simulator Project
Nijerya Sırt Tipi Jammer Temini Production of ManpackType RF Jammers for Nigerian Armed Forces
Gunner Interface Unit for KAPLAN-10, New Generation Armoured Combat
NİŞANCI ARAYÜZÜ BİRİMİ Fighting Vehicle (STA) Project
OMTAS GÖREV BİRİMİ Medium Range Anti-Tank System Task Mission System Project
ÖZGÜR VKS Production of ÖZGÜR(F-16) Data Recording Systems
PAF_ACMI Air Combat Maneuvering System for Pakistan Air Force (PAF) Project
PSFE Payload Stream Frontend Development
RF Jammer and Detection (RFJD) RF Jammer and Detection (RFJD) Production
SGS Faz-2 Synthetic Aperture Radar (SAR) Ground Station Imaging System Project
SİGMA Seismic Processing Visualization Module Infrastructure Development Project
Sırt Tipi Mobil Jammer Projesi Production of Manpack Jammer

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

Project Name (in continuation) Project Description (in continuation)
SSS Ruggedized servo production
TKY InSAR Interferometric SAR Development Project
TÜFEK TİPİ JAMMER Rifle type RF Jammer
UAEK Remote sensing licence distribution
UDS Aircraft arresting systems
UKGA Remote command transmit/receive
YTDA New type submarine subsystem
32 ADET LCD (TUŞSUZ) LCD Production
Yedek Parça ve Aksesuar Satışı Spare Parts and Accessories Sales
Hava Telsiz - UKB Air Radio – VHF (Very High Frequency)
Gözde GEB Guidance Electronics System Integration Project
GÇU V2 TASARIMI VE ÜRETİMİ Image Conversion Unit
IPS Millileştirme Image Processing Software (IPS) Nationalisation
Naval and Cruise Missile Fog. Engagement Models Tactical Environment Simulation
DESEF TAÇ-3 Environment
LEB Ek Sipariş 4 Launcher Electronic Unit
GCB EK SİPARİŞ – 4 Image Conversion Unit
METE (LGMF) Laser Guided Mini Missile
MASTER CONTROLLER Train, locomotive power system
SIDESTICK Tasarımı ve Üretimi SIDESTICK Design and Production
MGS Vmware Lisansları Vmware Licences
MMUGS İdame & İşletme Maintenance and Operation of MMUGS Software
MGS Virtualization Virtualisation of the Hardware in the MGS System
SMART Satış SMART Sales
ASTT – WGS Action Speed Tactical Simulator - War Game Simulator

The average personnel number of the Company for the period ended at 31 March 2025 is 267 (31 December 2024: 266).

The capital structure of the Company as of 31 March 2025 and 31 December 2024 is presented in Note 23.1.

The company's headquarters and branch addresses are as follows:

Centre: Üniversiteler Mahallesi İhsan Doğramacı Bulvarı No:37/1 Çankaya / Ankara / Türkiye Met 2 Şubesi: Mustafa Kemal Mahallesi 2082 Caddesi No: 54 A Çankaya / Ankara / Türkiye SDT - ASO Teknopark Şubesi: Ahi Evran OSB Mahallesi Erkunt Caddesi No:3/16 Sincan / Ankara / Türkiye

The Company's contact offices are as follows:

Kualalumpur / Malaysia İslamabad / Pakistan

Tamgör – SDT Business Partnerships ("Joint operations")

Tamgör Elektronik Sanayi ve Ticaret Limited Şirketi with SDT Uzay ve Savunma Teknolojileri Anonim Şirketi, established business partnerships for the production of vehicle and backpack type frequency mixers.

A new business partnership has been established for each project and/or tender, and there are a total of 9 business partnerships as of March 31, 2025 (31 December 2024: 11 pieces).

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

As of 31 March 2025 and 31 December 2024, summary information of joint operations is as follows;

Year of Capital Partnership
Title Establishment Project Name Amount Rate
TAMGÖR - SDT İş Ortaklığı (ST 02)
(a) 2018 2.Generation Manpack RF jammer Project 5.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 05) 2018 TSS-3A Projesi Manpack RF Jammer Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 06) 2018 528 Unit Manpack RF Jammer For Turkish Army Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 07) 2019 148 Unit Vehicle Type RF Jammer project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 08)
(b) 2019 91 Unit Vehicle Type RF Jammer Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 09) 2019 Vehicle Type RF Jammer for Mini / Micro UAVs Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 11)
(c) 2020 Wheeled armoured vehicle RF jammer Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 12) 2020 Jemus Integration Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 13)
(d)
TAMGÖR - SDT İş Ortaklığı (ST 14)
2020 Jammer JBO283AT Project 400.000 50%
(e) 2021 TTA-2 KKS 2021 12 Unit Vehicle Type RF Jammer project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 15) 2022 Maintenance contract for Turkish Land Forces jammer systems 400.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 16) 2023 Gendarmariere maintenance project 300.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 17) 2024 Turkish Armed Forces Jammer Supply (III.Package) Project 2.000 50%
TAMGÖR - SDT İş Ortaklığı (ST 18) 2025 Turkish Armed Forces Jammer Supply Maintenance Repair Project 400.000 50%

(a) The relevant business partnership was closed on 31 January 2024.

(b) The relevant business partnership was closed on 15 May 2024.

(c) The relevant business partnership was closed on 23 December 2024.

(d) The relevant business partnership was closed on 11 November 2024.

(e) The relevant business partnership was closed on 11 October 2024.

As of 31 March 2025 and 31 December 2024, the number of personnel of the joint operations are as follows:

Title 31 March 2025 31 December 2024
TAMGÖR - SDT İş Ortaklığı (ST 02) - -
TAMGÖR - SDT İş Ortaklığı (ST 05) - -
TAMGÖR - SDT İş Ortaklığı (ST 06) - -
TAMGÖR - SDT İş Ortaklığı (ST 07) - -
TAMGÖR - SDT İş Ortaklığı (ST 08) - -
TAMGÖR - SDT İş Ortaklığı (ST 09) - -
TAMGÖR - SDT İş Ortaklığı (ST 11) - -
TAMGÖR - SDT İş Ortaklığı (ST 12) 1 1
TAMGÖR - SDT İş Ortaklığı (ST 13) - -
TAMGÖR - SDT İş Ortaklığı (ST 14) - -
TAMGÖR - SDT İş Ortaklığı (ST 15) 2 2
TAMGÖR - SDT İş Ortaklığı (ST 16) 4 5
TAMGÖR - SDT İş Ortaklığı (ST 17) 9 9
TAMGÖR - SDT İş Ortaklığı (ST 18) - -
Total 16 17

Thales – SDT Business Partnership ("Joint operations")

Thales Italy SpA with SDT Uzay ve Savunma Teknolojileri Anonim Şirketi, A business partnership agreement was signed on 14 December 2016 for the purpose of performing and completing the "8 ILS/DME System Supply and Installation" work, which was put out to tender by the General Directorate of State Airports Authority.

Year of Capital Partnership
Title Establishment Project Name Amount Rate
Thales – SDT İş Ortaklığı 2016 Procurement and Installation of 8 ILS/DME Systems 5.000 19%

As of 31 March 2025 and 31 December 2024, the joint operation has no personnel.

SDT Azerbaycan MMC ("Subsidiary" and/or "SDT Azerbaycan)

SDT Azerbaijan LLC was established on January 11, 2023, in Baku, Azerbaijan. The main activity of the company is to engage in new business activities in the region where it was established, in line with the activities of its main shareholder, SDT Uzay ve Savunma Teknolojileri Anonim Şirketi. As of December 31, 2024 and 2023, SDT Azerbaijan does not have any personnel. As of March 31, 2025 and 2024, the main shareholder of SDT Azerbaijan is SDT Uzay ve Savunma Teknolojileri Anonim Şirketi.

Cey Savunma ve Simülasyon Sistemleri Sanayi ve Ticaret Anonim Şirketi ("Subsidiary" and/or "Cey Savunma)

Cey Savunma ve Simülasyon Sistemleri Sanayi ve Ticaret Anonim Şirketi ("Company"), was established on January 26, 2016 in Ankara / Türkiye.

Cey Savunma's main field of activity is; To establish and operate the electronic, electromechanical and mechanical manufacturing industry for military and civilian needs, and to design and manufacture related to its subject. In addition, it includes software design and manufacturing and trading in all these subjects.

As of 31 March 2025 and 31 December 2024, Cey Savunma has no personnel.

The shareholding structure of Cey Savunma ve Simülasyon Sistemleri Sanayi ve Ticaret Anonim Şirketi as of 31 March 2025 and 31 December 2024 is as follows;

31 March 2025 31 December 2024
Share Share
Share Ratio Amount Share Ratio Amount
100,00% 11.670.000 100,00% 11.670.000
100,00% 11.670.000 100,00% 11.670.000

Cey Savunma's headquarters address is as follows:

Kızılırmak Mahallesi 1443 Cad. Dış Kapı No: 25/A No: 92 Çankaya/Ankara

The information regarding the activities of the Company included in the consolidation under the equity method is as follows;

Sirius Tasarım Laboratuvarı Mühendislik Anonim Şirketi ("Affiliates" and/or "Sirius)

Sirius Tasarım Laboratuvarı Mühendislik Anonim Şirketi ("Company"), was established on September 14, 2023 with the title of " Sirius Tasarım Laboratuvarı Mühendislik Anonim Şirketi".

The company's scope of activity includes the production and commercial activities of all kinds of electronic, electromechanical, and mechanical equipment, as well as their spare parts, related to aviation, defense, and space technologies. Additionally, it engages in trading activities related to all types of systems, hardware, algorithms, modeling, technical support, and software development within its scope of activity.

During the accounting period ending on March 31, 2025, Sirius's average number of personnel is 10. (31 December 2024: 8).

The shareholding structure of Sirius Tasarım Laboratuvarı Mühendislik Anonim Şirketi as at 31 March 2025 and 31 December 2024 is as follows;

31 March 2025 31 December 2024
Share Share
Shareholders Share Ratio Amount Share Ratio Amount
SDT Uzay ve Savunma Teknolojileri Anonim Şirketi 40,00% 500.000 40,00% 500.000
Mehmet Dora 20,00% 250.000 20,00% 250.000
Osman Başoğlu 10,00% 125.000 10,00% 125.000
Önder Yazlık 9,00% 106.500 9,00% 106.500
Görkem Kandemir 9,00% 106.500 9,00% 106.500
Furkan Koltuk 6,00% 81.000 6,00% 81.000
Kenan Bozdaş 6,00% 81.000 6,00% 81.000
Total 100,00% 1.250.000 100,00% 1.250.000

The head office address of the Company is as follows:

İvedik OSB Mahallesi 2224 Caddesi No:1 İç Kapı No:116 Yenimahalle/Ankara

NOTE 2 – BASIS OF THE CONSOLIDATED FINANCIAL STATEMENT

2.a Basis of Presentation

Compatibility Statement

The Parent Company prepares its statutory financial statements in accordance with the principles of CMB, Turkish Commercial Code and Tax Legislation and the Uniform Chart of Accounts issued by the Ministry of Finance and presents in Turkish Liras ("TRY"). A subsidiary operating abroad prepares its accounting records and legal books in accordance with the laws and regulations of the country in which it operates.

The financial statements of Group have been prepared in accordance with the communiqué numbered II-14, 1 "Communiqué on the Principles of Financial Reporting In Capital Markets" (the Communiqué") announced by the Capital Markets Board ("CMB") (here in after will be referred to as "the CMB Reporting Standards") on 13 June 2013 which is published on Official Gazette numbered 28676 and required adjustments and reclassifications are reflected. In addition, it is presented in accordance with the formats determined in the "Announcement on TMS Taxonomy" published by the POA on 04 October 2022 and the Financial Statement Samples and User Guide published by the CMB.

The attached consolidated financial statements of the Group have been prepared in accordance with the CMB's "Announcement on Financial Statement and Footnote Formats" dated 07 June 2013 and its decision numbered 14/382 dated 07 March 2024. In addition, the attached consolidated financial statements are presented in accordance with the 2016 TAS Taxonomy, which was developed by the POA based on paragraph (b) of Article 9 of the Decree Law No. 660 ("Decree Law") and approved by the Board decision No. 30 dated 02 June 2016..

Based on the announcement made and published by the KGK on 23 November 2023 with the decision of the CMB dated 28 December 2023 and numbered 81/1820 and the "Implementation Guide on Financial Reporting in High Inflation Economies", issuers and capital companies subject to financial reporting regulations applying TAS / UFRS It has been decided that market institutions will apply inflation accounting by applying the provisions of TMS 29, starting from their annual financial reports for the accounting periods ending as of December 31, 2023.

The consolidated financial statements are based on the group's legal records and expressed in TRY and have been prepared by subjecting the Company to a number of corrections and classification changes in order to properly present the company's situation according to the Turkish Accounting Standards published by the POA.

Translation of Financial Statements of Subsidiary Who Operate in Foreign Country

The financial statements of subsidiary who operates in foreign country are prepared by the regulations of residing country and organized by reflection of required adjustments and reclassifications in order to be convenient to the accounting policy of consolidated financial statements of the Group. The assets and liabilities of foreign subsidiary are converted to Turkish Lira with the balance sheet date foreign exchange rate. The incomes and expenses of foreign subsidiary are converted to Turkish Lira with average foreign exchange rate. The foreign exchange differences occurred after the re-conversion of beginning net asset and using average foreign exchange rate; pursued under foreign currency conversion account.

Consolidated Financial Statements Correction in High Inflation Period

Businesses applying TAS / TFRS began implementing inflation accounting as of the financial statements for the annual reporting period ending on or after 31 December 2023. This transition was initiated in accordance with "TAS 29 Financial Reporting Standard in Economies with High Inflation," as per the decision of the Capital Markets Board (SPK) dated 28 December 2023, with reference number 81/1820, and the announcement made by the Public Oversight Accounting and Auditing Standards Authority (KGK) on 23 November 2023. TAS 29 is applicable to entities whose functional currency is that of a high-inflation economy, encompassing their financial statements, including consolidated financial statements.

The attached consolidated financial statements are prepared on a historical cost basis. All comparative amounts for previous periods in these consolidated financial statements have been adjusted in accordance with TAS 29 to reflect changes in the general purchasing power of the Turkish Lira and ultimately expressed in terms of the purchasing power of the Turkish Lira as of 31 March 2025.

In applying TAS 29, the Group utilized adjustment coefficients obtained from the Consumer Price Index (CPI) published by the Turkish Statistical Institute, as directed by the Public Oversight Accounting and Auditing Standards Authority (KGK). Since the discontinuation of the definition of the Turkish Lira as the currency of a high-inflation economy as of 1 January 2005, the adjustment coefficients corresponding to the current and past periods based on the CPI are as follows:

Year-End Index Index% Correction Factor
31.12.2005 122,65 7,72 21,88789
31.12.2006 134,49 9,65 19,96096
31.12.2007 145,77 8,39 18,41634
31.12.2008 160,44 10,06 16,73242
31.12.2009 170,91 6,53 15,70739
31.12.2010 181,85 6,40 14,76244
31.12.2011 200,85 10,45 13,36594
31.12.2012 213,23 6,16 12,58993
31.12.2013 229,01 7,40 11,72241
31.12.2014 247,72 8,17 10,83703
31.12.2015 269,54 8,81 9,95975
31.12.2016 292,54 8,53 9,17669
31.12.2017 327,41 11,92 8,19935
31.12.2018 393,88 20,30 6,81565
31.12.2019 440,50 11,84 6,09432
31.12.2020 504,81 14,60 5,31794
31.12.2021 686,95 36,08 3,90793
31.12.2022 1.128,4 64,27 2,37897
31.12.2023 1.859,38
50
64,77 1,44379
31.12.2024 2.684,55 44,38 1,10063
31.03.2025 2.954,69 10,06 1,00000

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

In accordance with TAS 29, assets and liabilities were initially segregated into monetary and non-monetary categories to facilitate necessary adjustments in the consolidated financial statements. Non-monetary assets and liabilities were further segregated into those measured at current value and those measured at cost value. Monetary items (excluding those linked to an index) along with non-monetary items measured at their current values at the end of the reporting period were not subjected to inflation adjustment as they were already expressed in terms of the current measurement unit as of 31 March 2025. However, non-monetary items not expressed in terms of the measurement unit as of 31 March 2025 were subjected to inflation adjustment using the respective coefficients. Where the recoverable amount or net realizable value of non-monetary items adjusted for inflation exceeded, the relevant TAS/IFRS was applied, resulting in a reduction in book value. Additionally, inflation adjustments were made to all items in the equity statement, income statement, and other comprehensive income statement. All items in the income statement and other comprehensive income statement except for cost of sales, depreciation and amortization, gain or loss on asset sales, and fair value adjustments were adjusted using the respective correction factors. Cost of sales, depreciation and amortization, gain or loss on asset sales, and fair value adjustments were recalculated based on adjusted consolidated financial position statement items using the respective correction factors. All items in the cash flow statement are expressed in the measurement unit prevailing at the end of the reporting period.

Non-monetary items acquired or assumed before January 1, 2005, when the Turkish Lira ceased to be defined as the currency of a high-inflation economy, as well as equity items put into operation or formed before this date, have been adjusted based on the changes in the Consumer Price Index (CPI) from January 1, 2005, to March 31, 2025.

The implementation of TAS 29 necessitated adjustments, presented in the income statement's gain or loss section, due to the decrease in purchasing power of the Turkish Lira. Unless the value of monetary assets or liabilities is dependent on changes in an index, during inflationary periods, businesses holding a higher amount of monetary assets experience a decrease in purchasing power, while those holding a higher amount of monetary liabilities experience an increase in purchasing power. Net monetary position gains or losses were derived from differences in adjustments of non-monetary items, equity items, items in the income statement, and other comprehensive income statements, and indexed monetary assets and liabilities.

Additionally, in the reporting period when TAS 29 was initially applied, the standard provisions were applied assuming persistent high inflation in the relevant economy. Therefore, for subsequent reporting periods, the consolidated financial position statement dated 1 January 2022, was adjusted for inflation to serve as the basis for comparison with the earliest comparative period. The inflation-adjusted amount of profits/losses from previous years in the consolidated financial position statement dated 1 January 2022, was derived from the balance sheet's equity after adjusting other items in the statement for inflation.

Amounts relating to the previous reporting period were reclassified by applying the general price index to ensure presentation in the measurement unit prevailing at the end of the reporting period. Information disclosed for prior periods is also presented in terms of the measurement unit prevailing at the end of the reporting period.

"Equity-accounted investees not reporting in currencies of high-inflation economies are subject to TAS 21 provisions. In this context, TAS 29 was applied only to equity-accounted investees resident in Türkiye, while other equity-accounted investees were assessed and accounted for under TAS 21.

Rounding Degree of Amounts Offered in Currency and Financial Statements

The functional and reporting currency of the Parent Company, subsidiary (located in Turkey) and joint operations is TRY for comparative periods. The functional currency of the subsidiary (located in Azerbaijani) is Azerbaijani New Manat ("AZN") and its reporting currency is also TRY.

Financial information presented in TRY has been rounded to the nearest full TRY value.

Approval of Consolidated Financial Statements

Consolidated financial statements of the Group are approved by the Board of Directors at 12 May 2025. Consolidated financial statements will be finalized upon approval at the General Assembly of the Parent Company. The Board of Directors and some regulative agencies have the right to change the financial statements that were prepared according to legal regulations after they have been published.

Basis of Consolidation

The companies are subject to "Complete Consolidation Method" if direct TRY or indirect TRY 50% or more than 50% of their shares or over 50% of their voting rights or the controlling rights regarding to companies' operations are belonging to the Parent Company. Parent Company has controlling rights if it is able to govern the financial and operating policies of an enterprise so as to benefit from its activities. The companies which have continuous relationship on management and power to govern Parent Company's policies and/or which have direct or indirect capital and management relationship or which have voting share of Parent Company between the rates 20-50% are accounted by using equity pick-up method.

Principles of Complete Consolidation

The principles of consolidation followed in the preparation of the accompanying financial statements are as follows:

  • The financial statements of the consolidated subsidiaries have been equipped according to the accounting principles of the Parent Company.
  • The share of the Parent Company in the shareholders equity of subsidiaries is eliminated from the financial of subsidiaries these are adjusted according to the accounting principles of financials of the Parent Company.
  • All significant intercompany transactions and balances between the Parent Company and the subsidiaries have been comparatively eliminated.
  • The minority part of shareholders' equity including paid capital of the companies subject to consolidation is classified as "Non-controlling Interests" in accompanying financial statement.
  • Shares of the Parent Company owned by the subsidiaries within the scope of consolidation, if any, have been mutually eliminated with the capital of the Parent Company.
  • The income statements of the Parent Company and the subsidiaries are consolidated a line by line basis and the transaction between companies are eliminated mutually. Consolidation of income statements of subsidiaries held in an audit period are based on the investment date and the items after the holding date are included.
  • The portion of the third parties other than consolidated companies in the net income or losses of the subsidiaries are classified as "Non-controlling Interests" in the income statements..

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

As of 31 March 2025 and 31 December 2024, the Parent Company has applied the "full consolidation method" to the following companies in which it directly or indirectly owns 50% or more of the shares, holds more than 50% of the voting rights, or has control over their operations;

Ownership of the Parent
through the Equity Affiliates
(Direct+
Subsidiaries (Direct) Indirect) Ratio
SDT Azerbaycan (a)
Cey Savunma (b)
%100,00
%100,00
%100,00
%100,00
-
-

(a) The Parent Company acquired 100% shares of the Company titled SDT Azerbaijan MMC, which was established in Azerbaijan on January 11, 2023, as a founding partner on January 11, 2023.

(b) On July 4, 2023, SDT Uzay ve Savunma Teknolojileri Anonim Şirketi acquired all shares of Cey Savunma ve Simülasyon Sistemleri Sanayi ve Ticaret Anonim Şirketi (equivalent to 7.986.512 TRY based on the purchasing power as of March 31, 2025) from unrelated party for a total of 4.000.000 TRY.

Detailed information about the Group's subsidiaries is presented in Note 1 and Note 3.

Equity Method

The acquisition cost of the Parent Company's shares in the capital of the subsidiary subject to the equity method is brought to the value represented in the equity capital of the financial position statement of these subsidiaries adapted to the Parent Company's accounting policies, and the difference in the previous years is called "Prior Years Loss or Past Years" The difference in "Profits" in the current period is shown in the "Shares of Profits and Losses of Investments Valued by Equity Method" account.

If the Parent Company's share of the subsidiary's losses is equal to or greater than the balance sheet value of the subsidiary, it continues to be accounted in the records with the subsidiary trace price.

As of 31 March 2025 and 31 December 2024, the Parent Company maintains a continuous connection in terms of participating in management and determination of business policies, or has a direct or indirect capital and management relationship, with companies where it holds twenty percent or more but less than fifty percent of their capital or has the right to participate in management at this percentage. These companies are as follows;

Ownership of the Parent
through the Equity Affiliates
(Direct+
Investment (Direct) Indirect) Ratio
Sirius %40 %40 %60

Detailed information about the Group's subsidiaries is presented in Note 1 and Note 3.

Partnership Within the Scope of Joint Operations

Partnerships within the scope of joint operations refer to partnerships formed within the scope of a contract to undertake an economic activity, to be jointly managed by the Group and one or more entrepreneurial partners. A joint operation is a joint arrangement in which the parties having joint control of the arrangement have rights to the assets and obligations regarding the debts related to the arrangement. The Group provides these joint operations by benefiting from the shares and/or contracts it owns directly or indirectly. The accounting policies applied by joint operations are aligned with the accounting policies of the Group. The financial statements of partnerships within the scope of joint operations are included in the financial statements of the Group, taking into account the share ratios of the Group. Assets, liabilities, equity, income and expenses included in the financial statements of partnerships within the scope of joint operations are processed with the effective partnership rates owned by the Group. Liabilities and expenses arising from jointly controlled assets are accounted for on an accrual basis. The Group's share of the income obtained from the use of assets of jointly controlled partnerships or the sale of such assets is recorded if it is probable that the relevant economic benefits will flow to the Group and their amounts can be measured reliably. Balances and unrealized profits and losses arising from transactions between the Group and its jointly controlled enterprises are eliminated in proportion to the Group's share in the jointly controlled enterprise.

Group's Share Ratio in
Joint Operation
Non-Owned
Share Ratio
(Direct+
Joint Operation (Direct) Indirect) Ratio
TAMGÖR -
SDT İş Ortaklığı (ST
02)
(a)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
05)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
06)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
07)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
08)
(b)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
09)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
11)
(e)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
12)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
13)
(d)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
14)
(c)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
15)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
16)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
17)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
18)
%50,00 %50,00 %50,00
Thales -
SDT İş Ortaklığı
%19,00 %19,00 %81,00

As of March 31, 2025, the Group's joint operations are as follows;

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

As of December 31, 2024, the Group's joint operations are as follows;

Group's Share Ratio in
Joint Operation
Non-Owned
Share Ratio
(Direct+
Joint Operation (Direct) Indirect) Ratio
TAMGÖR -
SDT İş Ortaklığı (ST
02)
(a)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
05)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
06)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
07)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
08)
(b)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
09)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
11)
(e)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
12)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
13)
(d)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
14)
(c)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
15)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
16)
%50,00 %50,00 %50,00
TAMGÖR -
SDT İş Ortaklığı (ST
17)
%50,00 %50,00 %50,00
Thales -
SDT İş Ortaklığı
%19,00 %19,00 %81,00

(a) The relevant business partnership was closed on, 31 January 2024.

(b) The relevant business partnership was closed on, 15 May 2024.

(c) The relevant business partnership was closed on, 11 October 2024.

(d) The relevant business partnership was closed on, 11 October 2024.

(e) The relevant business partnership was closed on, 23 December 2024.

Details of the Group's joint operations are disclosed in Note 1 and Note 3.

Standard Accounting Policy

Consolidated financial statements are prepared by adopting consistent accounting policies for similar transactions and other events under similar conditions. If the financial statements of any entity included in the consolidated financial statements are prepared using different accounting policies for similar transactions and other events under similar conditions, necessary adjustments are made to the financial statements of that entity during the preparation of the consolidated financial statements.

The investor's financial statements are prepared using consistent accounting policies for similar transactions and other events under similar conditions. If an investee uses accounting policies different from those of the investor for similar transactions and other events under similar conditions, necessary adjustments are made to align the investee's accounting policies with those of the investor for applying the equity method in the investor's financial statements.

Assumption of Continuity of Business

The consolidated financial statements presented herein have been prepared on the assumption of the continuity of business, under which it is assumed that the Group will derive benefits from its assets and fulfill its obligations in the natural course of its activities in the coming year.

Offsetting

Financial assets and liabilities are presented on a net basis when there is a legal right to offset, an intention to settle the asset and liability on a net basis, or when the asset is realized and the liability is settled simultaneously.

Comparative Information and Correction of Previous Period Financial Statements

The consolidated financial statements of the Group are prepared comparatively with the previous periods in order to enable the determination of the consolidated financial position and performance. The Group has prepared the consolidated statement of financial position as of 31 March 2025 comparatively with the consolidated statement of financial position as of 31 December 2024 and the consolidated statement of profit or loss, consolidated statement of other comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the period between 1 January - 31 March 2025 comparatively with the period between 1 January - 31 March 2024. In order to maintain consistency with the presentation of the current period consolidated financial statements, comparative information is reclassified and significant differences are explained if necessary.

The Group has not made any adjustments to its consolidated financial statements as at 31 December 2024 and 31 March 2024, except for the adjustments made due to the application of TAS 29 standard explained in the "Adjustment of Consolidated Financial Statements in Hyperinflationary Periods" section.

2.b Changes in Accounting Policies

A company can only change its accounting policies under the following circumstances:

• If required by a standard or interpretation, or

• If the effects of transactions and events on the company's financial position, performance, or cash flows need to be presented in the financial statements in a more appropriate and reliable manner.

Users of consolidated financial statements should have the ability to compare the company's financial position, performance, and cash flows over time. Therefore, unless a change in accounting policy meets one of the conditions stated above, the same accounting policies should be applied consistently in each interim period and fiscal year.

Changes and Errors in Accounting Estimates

The preparation of the consolidated financial statements in compliance with TAS/IFRS requires certain estimates to be made by Management regarding the carrying values of certain assets and liabilities, potential liabilities disclosed, and the amounts of income and expenses reported. Actual amounts may differ from these estimates. These estimates are reviewed periodically and any differences are reported in the income statement as of the periods known.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

The assumptions and assessments made, taking into account significant interpretations that could significantly impact the amounts reflected in the consolidated financial statements, as well as important assumptions and evaluations based on the main sources of estimates existing at the date of the financial position statement or that may occur in the future, are as follows:

Provisions for doubtful receivables

However, it reflects the amounts it believes to cover future losses from receivables at risk of non-collection under the current economic conditions. While evaluating whether the receivables are impaired or not, the past performances of borrowers other than the related institution and permanent customers, their credibility in the market and the performance of the consolidated financial statements until the approval date of the consolidated financial statements are also taken into consideration. As of the statement of financial position, the provisions for doubtful receivables are reflected in Note 8.

Provision for stock impairment

Regarding stock impairment, the physical and past history of stocks are examined, their usability is determined in line with the opinions of technical personnel, and provisions are made for items that are estimated to be unusable (Note 11).

Deferred finance income/expense

In calculating the effective interest rate for the amortized cost of trade receivables and payables, expected collection and payment dates based on current information related to receivables and payables are taken into account.

Useful lives of tangible and intangible fixed assets

The Group depreciates its tangible and intangible fixed assets based on the useful lives and residual values stated in Note 2.c. Explanations regarding the useful lives are provided in Note 2.c.

Development costs

Research findings or other information applied to a plan prepared to produce new, unique, and significantly improved products, processes, systems, or services are defined as development, and the costs incurred for these activities are capitalized by the Group. In capitalizing the salaries of personnel directly involved in creating the asset, the Group management considers the amount of time each person spends on research and development activities. Personnel costs related to research activities are recognized as an expense when incurred.

Provision for litigation

While reserving provisions for litigation, the probability of losing related lawsuits and the results to be incurred in case of loss are evaluated in line with the opinions of the Group's legal counsel. Explanations regarding the provisions that the Group Management deems necessary in accordance with the best estimations made by using the available data are included in Note 20.

Warranty Expenses Provision

Warranty provisions generally include expenses related to labor, spare parts, and similar costs incurred without charging the customer for products and services sold. For sales recorded as revenue in the current period, the Group accounts for future service costs that may arise in subsequent years based on estimates derived from management's experience, distinguishing between short-term and long-term provisions for warranty expenses in the relevant period (Note 20).

Retirement pay provision

The severance pay liability is determined by actuarial calculations based on a number of assumptions, including discount rates, future salary increases and employee turnover rates. As these plans are long term, these assumptions contain significant uncertainties. Details on provisions for employee benefits are included in Note 21.

Deferred tax

The Group accounts for deferred tax assets and liabilities for temporary timing differences arising from differences between tax-based legal financial statements and financial statements prepared in accordance with TAS/IFRS. These differences arise from the fact that some income and expense items are included in different periods in the financial statements prepared in accordance with TAS/IFRS and financial statements. The Group has deferred tax assets consisting of deductible temporary differences that may occur in the future. Partially or fully recoverable amount of deferred tax assets are estimated under current conditions. During the evaluation, future profit projections, losses in current periods, unused losses and other tax assets can be used. As a result of the evaluations, as of 31 March 2025 and 31 December 2024, temporary differences arising from tax deductions can be foreseen and deferred tax assets will be deemed to be deemed to be deemed to be available within the framework of tax laws within the period that the tax reduction right can continue. Details on deferred tax calculations as of the relevant statement of financial position are provided in Note 31.

The New International Financial Reporting Standards, Amendments

As at 31 March 2025, the accounting policies adopted in preparation of the financial statements for the year ended 31 March 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TAS / TFRS and TAS / TFRS interpretations effective as at 1 January 2025, which are summarised below.

As at 31 March 2025, new standards, amendments and interpretations to existing standards effective as at 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..

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

TFRS 17 Insurance Contracts;

IFRS 17 requires insurance liabilities to be measured at a current settlement value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2026.

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).

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, managementdefined performance measures); and,
  • Enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

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 amendments do not have a significant impact on the consolidated financial position and performance of the Group..

2.c Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which their maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject to an insignificant change in value. The carrying amount of these assets approximates their fair value.

Financial Instruments

According to TFRS 9, when a financial asset is initially recognized in the financial statements, it is classified as follows: debt instruments measured at amortized cost, equity instruments or debt instruments measured at fair value through other comprehensive income (OCI), or debt instruments measured at fair value through profit or loss (FVL). The classification of financial assets under TFRS 9 is generally based on the business model used by the entity for managing financial assets and the characteristics of the contractual cash flows of the financial asset. The requirement to separate embedded derivatives from the financial asset has been removed under the standard, and the classification of a hybrid contract as a whole should be evaluated.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

  • It is held within a business model whose objective is to hold assets to collect contractual cash flows and,

  • Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

  • It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and,

  • Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-byinvestment basis. All financial assets not classified as measured at amortized for the FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized for the at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition..

Impairment of financial assets

IFRS 9 replaces the 'incurred loss' model in TAS 39 with an 'expected credit loss' ("ECL") model. The new impairment model applies to financial assets measured at amortized cost and contract assets, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlier than under IAS 39. The financial assets at amortized cost consist of trade receivables, cash and cash equivalents, and corporate debt securities.

Under IFRS 9, loss allowances will be measured on either the following bases:

  • 12 months ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date and,

  • Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.

The Group has elected to measure loss allowances for trade receivables and contract assets at an amount equal to lifetime ECLs. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information.

Financial liabilities

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement entered into and the definitions of a financial liability and an equity instrument. An equity instrument is ant contract that evidences a residual interest in the asset of the Group after deducting all of its liabilities.

Financial liabilities at fair value reflected as profit or loss classified as financial liabilities or other financial liabilities.

Financial liabilities at fair value through other comprehensive income

The effective interest method calculates the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate discounts the estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Financial assets carried at fair value through profit or loss include "derivative instruments" items in the statement of financial position. Derivative instruments are recognized as assets when their fair value is positive, and as liabilities when it is negative. Although the Group uses derivative instruments during the relevant reporting periods, there are no derivative instruments held by the Group at the end of the periods.

Other financial liabilities

Other financial liabilities, including financial liabilities, are initially recognized at fair value, net of transaction costs.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method plus the interest expense recognized on an effective yield basis.

The effective interest method calculates the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate discounts the estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Trade Receivables

Trade receivables arising from the provision of products or services to the buyer are recognized from the amortized value of the receivables recorded from the original invoice value in the subsequent periods with the effective interest method. Short-term receivables with no determined interest rates are shown in the invoice amount if the effect of the original effective interest rate is not very large.

The "simplified approach" is applied within the scope of impairment calculations of trade receivables that are recognized at amortized cost in the financial statements and do not contain a significant financing component (with a maturity of less than 1 year). With this approach, in cases where trade receivables are not impaired for certain reasons (except for the impairment losses incurred), the provisions for losses related to trade receivables are measured at an amount equal to "lifelong expected credit losses".

In the event that all or some of the amount of the receivable that is impaired is collected following the provision for impairment, the amount collected is deducted from the provision for impairment and recorded in other income from the main activities.

Maturity difference income / expenses related to commercial transactions and exchange rate profit / loss are recognized in the statement of "Other Income / Expense from Main Operations" in the profit or loss statement.

Financial Liabilities

Financial liabilities are measured at fair value at initial recognition. Transaction costs directly attributable to the burden of the related financial liability are also added to the fair value.

The effective interest method calculates the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate discounts the estimated future cash payments through the expected life of the financial liability or where appropriate, a shorter period.

Trade payables

Trade payables are the payments to be made in relation to the goods and services provided from the suppliers within the ordinary activities. Trade payables are initially measured at fair value and subsequently measured at amortized cost using the effective interest method. Income/expenses related to term differences in commercial transactions and foreign exchange gains/losses are accounted for within the "Other Income/Expenses from Core Operations" account in the income statement.

Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories includes all costs of purchase, costs of conversion (direct labour and production overhead) and other costs incurred in bringing the inventories to their present location and condition. Cost is calculated by weighted average cost formula for trade goods. The cost of software programs made to order is calculated according to the real lot cost method. In cases where the revenue related to the service provided (order software projects) is not reflected as income in the financial statements, the related expenses are reflected to the inventory account. The cost of inventories of project-style software programs mainly includes the labor and other costs of personnel directly involved in the delivery of the service, including the personnel performing the control operations, and the overheads that may be associated with them. Labor fees and other related expenses of sales and general management personnel are not included in the cost of the service, that is, in the inventory. These expenses are recognized as expense in the period in which they are incurred..

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory impairment provision amounts that reduce inventories to their net realizable value and losses related to inventories are recognized as expense in the period in which the reduction and losses occur. The amount of the inventory impairment loss canceled due to the increase in the net realizable value is accounted for in a way that reduces the accrued selling cost of the period in which the cancellation occurred. Net realizable value is reviewed for each financial statement period. In cases where the conditions that previously caused the inventories to be reduced to net realizable value no longer apply or an increase in net realizable value is proven due to changing economic conditions, the reserve for impairment is reversed (the amount canceled is limited to the amount of impairment previously allocated).

Tangible Fixed Assets

Tangible fixed assets are shown by deducting accumulated depreciation from the acquisition cost, if any, after deducting the scrap value. Assets subject to depreciation are subject to pro-rata depreciation based on their estimated economic lives over their cost amounts, using the straight-line method of depreciation, taking into account the date they are active. The economic life and depreciation method are regularly reviewed, and accordingly, it is checked whether the method and the depreciation period are in line with the economic benefits to be obtained from the relevant asset, and adjustments are made when necessary. The land is not subject to depreciation as its useful life is considered indefinite.

The cost value of the property, plant and equipment; The purchase price, import duties and non-refundable taxes consist of expenses incurred to prepare the property, plant and equipment for use. Expenses such as repair and maintenance that occur after the use of tangible fixed assets are recognized in the profit or loss statement in the period in which they are incurred. If the expenditures provide an economic value increase in the future use of the related property, plant and equipment, these expenditures are added to the cost of the asset.

Leasehold improvements include the expenses incurred for the leased property and are depreciated over the useful life of the leased property where the useful life is longer than the lease term, and over the useful life if it is short.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

The depreciation rates for property, plant and equipment, which approximate the useful economic lives of these assets, are as follows:

Useful Life
Machinery, plant and equipment 3-10
years
Vehicles 4-10 years
Fixtures 3-10 years
Special costs Less than the lease term or useful life

Maintenance and repair expenses are recorded in the income statement in the period in which they are incurred. Costs related to the primary renewals are added to this cost of assets in the expected condition that providing economical profit with the better performance than the situation before renewals. Expenses which were made after the activation added to the cost of assets are put to amortization pursuant to economical lifetime of related assets. Group, value of the part that was changed in the range of expenses which was made after activation removes from income statement regardless to put the amortization independently to the other part.

Right of Use Assets

The Group accounts for its use right assets on the date of the financial lease contract (for example, as of the date when the related asset is suitable for use). The right of use assets are calculated by deducting the accumulated depreciation and impairment losses from the cost value.

The cost of the right of use asset includes:

(a) the first measurement of the lease obligation,

(b) the amount obtained from all lease payments made before or before the lease actually started, by deducting all lease incentives received, and

(c) All initial costs incurred by the Group..

Unless the transfer of the ownership of the underlying asset to the Group is reasonably finalized at the end of the lease term, the Group is subject to depreciation of the right to use until the end of the useful life of the underlying asset. Right of use assets are subject to impairment assessment.

The depreciation rates for right of use assets, which approximate the useful economic lives of these assets, are as follows:

Buildings 3-5 years Motor Vehicles 1-3 years

Useful Life

Lease Obligations

The Group measures the lease obligation based on the present value of the lease payments that were not paid on the date the lease actually began.

The lease payments included in the measurement of the lease obligation at the date of the lease actually consist of the following payments to be made for the right of use of the underlying asset during the lease period and not paid at the date when the lease actually started:

(a) Fixed payments,

(b) Variable lease payments based on an index or rate, made using an index or rate at the date when the first measurement was actually started,

(c) Amounts expected to be paid by the Group within the scope of residual value commitments

(d) the price of use of this option if the Group is reasonably sure that it will use the purchase option; and

(e) if the rental period indicates that the Group will use an option to terminate the lease, penalties for termination of the lease.

Variable lease payments that do not depend on an index or rate are recorded as expenses in the period when the event or condition that triggered the payment occurred. If the Group can easily determine the revised discount rate for the remainder of the lease term and the implied interest rate on the lease; In case it cannot be determined easily, it determines the alternative borrowing interest rate on the date of the Group's reevaluation.

The Group measures the lease obligation after the lease actually starts as follows:

  • (a) Increases the carrying amount to reflect the interest on the lease obligation, and
  • (b) Reduces the carrying value to reflect the rent payments made

In addition, in the event of a change in lease duration, a change in substance of fixed lease payments, or a change in the assessment of the option to purchase an underlying asset, the value of financial lease liabilities is re-measured.

Extension and early termination options

A lease obligation is determined by considering the extension of the contracts and early termination options. Most of the extension and early termination options included in the contracts consist of options that are jointly applicable by the Group and the lessor. However, if such extension and early termination options are at the Group's discretion in accordance with the contract and the use of the options is reasonably certain, the lease term shall be determined by taking this issue into account. If there is a significant change in the conditions, the evaluation is reviewed by the Group.

Facilitating Practices

The Group applies the short-term lease registration exemption to short-term machinery and equipment and low-value real estate lease agreements (i.e., assets with a rental period of 12 months or less starting from the start date and which do not have a purchase option). At the same time, it applies the exemption for the recognition of lower-value assets to the fixed assets, which are considered to be of low value. Short-term lease agreements and leases of lower-value assets are accounted for as expense on a straight- line basis over the term of the lease.

A single discount rate is applied to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar asset class in a similar economic environment).

Intangible Assets

Intangible Assets Acquired

Intangible assets acquired include acquired usage rights, information systems and other identifiable rights. Intangible assets with finite lives are presented at cost less their residual value, if any, less accumulated amortization and accumulated impairment losses. These assets are amortized using the straight-line method over their expected useful lives (useful lives not exceeding 10 years). The expected useful life and depreciation method are reviewed annually to determine the possible effects of changes in estimates and changes in estimates are accounted for prospectively.

Computer Software

Purchased computer software is capitalized over the costs incurred during its purchase and during the period from purchase until it is ready for use.

Research and Development Costs

Planned activities to obtain new technological information or findings are defined as research and research expenses incurred at this stage are recorded as expense when incurred.

The application of research findings or other information to a plan prepared to produce new or significantly improved products, processes, systems or services is defined as development and is recognized as intangible assets resulting from development if all of the following conditions are met.

Internally generated intangible assets resulting from development activities (or the development phase of an internal project) are recognized only when all the following conditions are met:

  • The technical feasibility of completing the intangible asset so that it will be available for use or sale,
  • Its intention to complete the intangible asset and use or sell it,

  • Its ability to use or sell the intangible asset. How the intangible asset will generate probable future economic benefits,

  • The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset and

  • Its ability to reliably measure the expenditure attributable to the intangible asset during its development.

The amount of intangible assets created internally is the total amount of expenses incurred since the intangible asset meets the above-mentioned recognition conditions. When internally generated intangible assets cannot be recognized, development expenditures are recorded as expense in the period in which they are incurred. After initial recognition, internally generated intangible assets, like separately purchased intangible assets, are carried at cost less accumulated depreciation and accumulated impairment losses. The useful lives of development costs are evaluated on a case-by-case basis and range from 2 to 12 years.

Sale of Intangible Assets

An intangible asset is derecognised when it is disposed of or when future economic benefits are not expected from its use or sale. The profit or loss resulting from the derecognition of an intangible asset is calculated as the difference between the net proceeds from the disposal of the assets and their carrying amount, if any. This difference is recognized in profit or loss when the related asset is taken out of the balance sheet.

Impairment of Assets

At each reporting date, Group assesses whether there is an impairment indication for the assets, except for the deferred income tax asset that are stated at revalued amounts as of reporting date. When an indication of impairment exists, Group estimates the recoverable amounts of such assets. An impairment loss is recognized for the amount by which the carrying amount of the asset or any cash generating unit of that asset exceeds its recoverable amount which is the higher of an asset's net selling price and value in use. All impairment losses are accounted for in the statement of comprehensive income.

The criteria that the Group uses to determine that there is objective evidence of an impairment loss include:

  • Significant financial difficulty of the issuer or obligor,

  • A breach of contract, such as a default or delinquency in interest or principal payments,

  • For economic or legal reasons relating to the borrower's financial difficulty, granting to the borrower a concession that the lender would not otherwise consider,

  • It becomes probable that the borrower will enter bankruptcy or other financial reorganization,

  • Observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets.

Mergers and Goodwill

Business merger and acquisition is combining of two separate legal entities or organizations into an entity that makes reporting. Business merger is accounted based on acquisition method within the context of IFRS 3.

Acquisition cost contains the fair value of assets given in purchase date; issued capital instruments, assumed and realized payables due to change, the costs that can be associated with additional acquisition. If the business merger agreement includes articles that foresees that cost can be adjusted according to the future actions, this adjustment is probable, and this adjustment is include into merger cost that formed on the day of acquisition when the value is detected. Purchase-related costs are expensed in the period in which they are incurred. Goodwill arising from the acquisition of subsidiaries, acquisitions of associates and establishment of joint ventures is the portion of the consideration paid in excess of the fair value of the Group's net identifiable assets, liabilities and contingent liabilities in the acquiree and its non-controlling interest in the acquiree.

The difference between the acquisition cost coming from purchase of an organization and fair value of identifiable asset, liability and conditioned liabilities is accounted as goodwill in consolidated financial statements. If real value of acquired assets, liability and contingency liabilities exceeds the business merger cost, then the difference is accounted in the consolidated income statements as goodwill.

For impairment testing, goodwill is allocated to cash-generating units. Distribution is made to cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arises. Each unit or group of units to which the goodwill is distributed is the smallest asset group of the entity in which the goodwill is monitored for internal managerial purposes. Goodwill is monitored on the basis of operating segments. Impairment reviews of goodwill are performed annually or more frequently when events or changes in circumstances indicate the possibility of impairment. The higher of the carrying amount of the goodwill, its value in use and its fair value less costs to sell, is compared with its recoverable value. In case of any impairment, the loss is recognized immediately and is not reversed in the following period.

Legal mergers between entities controlled by the Group are not considered within the scope of TFRS 3. Therefore, goodwill is not calculated in such mergers. In addition, transactions between parties in legal mergers are subject to adjustments during the preparation of the consolidated financial statements.

Partial share purchase and sale transactions with minority interests

The Group considers the purchase and sale transactions of the shares of minority interests and the partnerships that it currently controls as transactions between the equity holders of the Group. Accordingly, in the purchase of additional shares from minority interests, the difference between the acquisition cost and the book value of the company's net assets in proportion to the purchased shares is accounted for under equity. In the sale of shares to minority interests, losses or gains resulting from the difference between the sales price and the book value of the company's net assets in proportion to the sold share are also accounted for under equity.

Fair Value Measurement

Determination of fair values, fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. Fair value, according to valuation techniques used is classified into the following levels:

Level 1: For identical assets or liabilities in active markets (unadjusted) prices;

Level 2: Other than quoted prices in level 1 and asset or liability, either directly (as prices) or indirectly (i.e. derived from prices) observable data;

Level 3: Asset or liability is not based on observable market data in relation to the data (no observable data).

Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All of the other borrowing costs are recorded in the income statement in the period in which they are incurred. There are no capitalized borrowing costs for the periods ended at 31 March 2025 and 31 December 2024.

Taxation

Taxes on income for the period comprise current tax and the change in the deferred taxes.

Current tax provision

The charge for current tax is based on the results for the period as adjusted for items which are non-assessable or disallowed. Taxable profit differs from profit as reported in the income statement because it excludes terms of income or expense that taxable or deductible in other years and it further excludes items that are never taxable or deductible.

Deferred Tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases use in the computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for all deductable temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary differences arisen from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit not the accounting profit.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

Deferred tax liabilities are recognized for taxable temporary differences. It associates with investments in subsidiaries and associates and interests in joint ventures, except where the company is able to control the reversal of the temporary differences. It is probable that the temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amounts of deferred tax assets is reviewed at each balance sheet date and reduce to extent that is no longer probable that sufficient taxable profits will be available to allow all part of the assets to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and the tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items credited or debited directly to equity, in which case the tax is also recognized directly in equity, or where they arise from the initial accounting for a business combination. In the case of a business combination, the tax affect is taken into account in calculating goodwill or determining the excess of the acquirer's interest in the net fair value of the acquirer's identifiable assets liabilities and contingent liabilities over cost.

Provisions, Contingent Liabilities and Assets

Provisions

Provisions are recognized when an enterprise has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

Contingent Liabilities and Assets

Transactions that may give rise to contingencies and commitments are those where the outcome and the performance of which will be ultimately confirmed only on the occurrence or non occurrence of certain future events, unless the expected performance is not very likely. Accordingly, contingent losses are recognized in the financial statements of Group if a reasonable estimate of the amount of the resulting loss can be made. Contingent gains are reflected only if it is probable that the gain will be realized.

Related Parties

In the presence of one of the following criteria, parties are considered as related to Group:

(a) Directly, or indirectly through one or more intermediaries, the party,

(i) Controls, is controlled by, or is under common control with, Group (this includes parents, subsidiaries and fellow subsidiaries);

(ii) Has an interest in Group that gives it significant influence over the Company; or

(iii) Has joint control over Group.

(b) The party is an associate of Group,

(c) The party is a joint venture, in which Group is a venture,

(d) The party is member of the key management personnel of Group or its parent,

(e) The party is a close member of the family of any individual referred to in (a) or (d),

(f) The party is an entity that is controlled, jointly controlled or significantly influenced by, or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (d) or (e) (g) The party has a defined benefit plan for the employees of the Group or a related party of the Group.

Transactions with related parties are transfer of resources or obligations between related parties, regardless of whether a price is charged. Group interacts with its related parties within the frame of ordinary business activities (Note 4).

Foreign Currency Assets and Liabilities

Foreign currency transactions are entered in the accounts with current rates in transaction date. Foreign currency assets and liabilities in the balance sheet are converted to the TRY as the rates in the balance sheet date. Foreign exchange profit and loss are reflected to the income statements. The Group carried out the measurements in accordance with the announcement of the Public Oversight, Accounting and Auditing Standards Authority, dated 15 March 2021, "About the Next Measurement of Foreign Currency Monetary Items According to Turkish Accounting Standards".

The exchange rates used for the amounts classified in the assets section of the financial position statement at the end of the periods are as follows:

31.03.2025 31.12.2024
USD 37,7656 35,2803
EURO 40,7019 36,7362
GBP 48,7963 44,2073

The exchange rates used for the amounts classified in the liabilities section of the financial position statement at the end of the periods are as follows:

31.03.2025 31.12.2024
USD 37,8337 35,3438
EURO 40,7753 36,8024
GBP 49,0507 44,4378

Reporting Consolidated Financial Information by Segment

A business segment is distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. A geographical segment is a distinguishable component of an enterprise that is engaged in providing products or services within a particular economic environment and that is subject to risks and returns that are different from those of components operating in other economic environments.

A reportable segment is business segment or a geographical segment identified based on the foregoing definitions for which segment information is required to be disclosed. A business segment or geographical segment should be identified as a reportable segment if a majority of its revenue is earned from sales to external customers and its revenue from sales to external customers and from transactions with other segments is 10% or more of the total revenue, external and internal, of all segments; or its segment result, whether profit or loss, is 10% or more of the result of all segments in profit or the result of all segments in loss, whichever is the greater in absolute amount; or its assets are 10% or more of the total assets of all segments.

The Group operates its activities in the same geographical region and industry sector. Therefore, reporting by segments has not been performed.

Employee Benefits / Severance Pay Provision

Severance Pay

In accordance with existing labour law, the Group is required to make lump-sum termination indemnities to each employee who has completed one year of service with the Group and whose employment is terminated due to retirement or for reasons other than resignation or misconduct. This liability is calculated on the basis of 30 days' gross salary and other benefits for each year of service at 31 March 2025, maximum TRY 46.655 (31 December 2024: TRY 41.828).

Group calculates provisions for severance pay in the attached consolidated financial statements in consideration of previous year's experiences on deserving severance pay and also, discount rate generated from effective interest rate and inflation on balance sheet period was included in calculations. All of profits and losses except calculated actuarial profit / (loss) were shown in statements of income, actuarial profit / (loss) was shown in statements of changes in equity.

The rates of basic assumptions used at balance sheet date are as follows:

31.03.2025 31.12.2024
Real discount rate 3,04% 3,05%

Social Insurance Premium

Group pays social security contribution to social security organization compulsorily. As long as group pays these premiums, it has no liability. These premiums are reflected as personnel expenses in the period in which they are paid.

Dividends

Dividends receivables are recognized as income in the period when they are declared and dividends payables are recognized as an appropriation of profit in the period in which they are declared.

Paid in Capital

Common stocks are classified to equity. Costs related to new shares and option issued, are shown in equity by deducting the collected amounts whose tax effect was deducted.

Government Incentive and Grants

It is a procedure to assist the companies that are unable to achieve certain businesses. It is to stimulate the businesses with the incentives. Government incentives, including those followed at their fair values will be included in the financial statements only if there is reasonable assurance that the Company will fulfill all required conditions and acquire the incentive.

Government incentives, including non-monetary grants at fair value, are included in the financial statements only if there is reasonable assurance that the Company will fulfill all required conditions and acquire the incentive.

Events After Reporting Period

Although post balance sheet events arise after the explanation of the financial information to the public or any announcement related to profitability, it encloses all the events with balance sheet date and authorization date for the diffusion of the balance sheet.

Group adjusts the amounts in the combined financial statements if there exist any events necessitates adjustment. Subsequent events are stated in the combined notes to financial statements, if they do not need adjustments.

Earnings / (Loss) Per Share

Earnings / (loss) per share in the combined income statements are calculated by dividing the net profit for the year by the weighted average number of ordinary shares outstanding during the year. In Türkiye, companies can increase their share capital by making distribution of "bonus shares" to existing shareholders from inflation adjustment difference in shareholder's equity. For the purpose of the earnings / (loss) per share computations, the weighted average number of shares outstanding during the year has been adjusted in respect of "bonus shares" issued without corresponding change in resources by giving them retroactive effect for the period in which they were issued and each earlier period.

Revenue

The Company has started to use the following five-step model in accounting for revenue in line with TFRS 15 "Revenue from Customer Contracts Standard", which entered into force as of 01 January 2018.

  • Identification of contracts with customers
  • Identification of performance obligations in contracts
  • Determination of transaction value in contracts
  • Distribution of transaction costs to performance obligations
  • Accounting of revenue

According to this model, firstly, the committed goods or services are evaluated in each contract with customers and each commitment made to transfer the said goods or services is determined as a separate performance obligation. Afterwards, it is determined whether performance obligations will be fulfilled over time or at a certain time. If the Group transfers control of a good or service over time and therefore fulfills its performance obligations related to the sales, it takes the revenue to the financial statements over time by measuring the progress towards the fulfillment of the performance obligations in question.

The Group generates revenue as a result of sales of defense electronics and software products and services. Revenue related to performance obligations in the nature of a commitment to transfer goods or services; It is recognized when control of goods or services comes to customers.

When evaluating the transfer of control of the goods or services sold to the customer,

a) the Company has the right to collect goods related to the goods or services,

b) the ownership of the legal property of the goods or services,

c) the transfer of the possession of the goods or services,

d) the ownership of the customer's goods or services. ownership of significant risks and returns arising from ownership,

e) takes into account the conditions for the customer to accept the goods or services.

The Company does not make any adjustments to the effect of a significant financing component in the promised price at the beginning of the contract, if the period between the transfer date of the goods or service it promises to the customer and the date when the customer pays the price of this goods or service will be one year or less. On the other hand, if there is an important financing element in the revenue, the revenue value is determined by reducing the future collections with the interest rate included in the financing element. The difference is recorded in the relevant periods as other income from the main activities on an accrual basis.

Interest Income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

Interest income and foreign exchange income from commercial transactions are recognized as other income from operating activities.

Dividend income from stock investments is reflected in the financial statements when shareholders have the right to receive dividends. Dividend debts are reflected in the financial statements as a liability after the approval of the general assembly as an element of profit distribution.

Cash Flow Statement

The Group prepares statement of cash flows to inform users of financial statements about changes in net assets and ability to direct financial structure, amounts and timing of cash flows according to changing situations. In the statement of cash flows, current period cash flows are grouped according to operating, financing, and investing activities. Operating cash flows resulting from activities in scope of Group's main operating scope. Cash flows related to investing activities are cash flows resulting from investing activities (fixed investments and financial investments) of the group. Cash flows related to financing activities comprise of funds used in financing activities of the Group and their repayments. Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which their maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject to an insignificant change in value.

NOTE 3 – SHARES IN OTHER COMPANIES AND BUSINESS COMBINATIONS

Shares in Other Companies

As of 31 March 2025 and 31 December 2024, the summary information regarding the equity interests of the Parent Company in other entities and the relevant Company to which the interests are held is as follows;

Subsidiaries

Ownership of the Parent
through the Equity Affiliates
(Direct+
(Direct) Indirect) Ratio
SDT Azerbaycan MMC %100,00 %100,00 -
Cey Savunma %100,00 %100,00 -

As of 31 March 2025, the summarized financial information of the Parent Company's subsidiaries is as follows;

Profit /
Subject of Loss for the
Activity Assets Equity Revenue period
Defense industry 20 20 - -
Defense industry 10.345.523 4.313.151 - (943.721)

As of 31 December 2024, the summarized financial information of the Parent Company's subsidiaries is as follows;

Subject of Profit /
Loss for the
Activity Assets Equity Revenue period
SDT Azerbaycan MMC (a)
Cey Savunma (b)
Defense industry
Defense industry
20
22.722.969
20
10.396.447
-
12.736.664
-
(5.449.049)

(a) Currency of relevant amounts is AZN.

(b) Currency of relevant amounts is TRY. The net amount of profit / (loss) for the period consists of the amounts for the period after the acquisition date of Cey Savunma.

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

Affiliates

Ownership of the Parent
through the Equity Affiliates
(Direct+
Affiliates (Direct) Indirect) Ratio
Sirius %40 %40 %60

As of 31 March 2025, the summarized financial information of the Parent Company's affiliates is as follows;

Profit /
Subject of Loss for the
Activity Assets Equity Revenue period
Sirius Defense industry 46.257.984 34.873.865 17.934.549 13.651.880

As of 31 December 2024, the summarized financial information of the Parent Company's affiliates is as follows;

Subject of Profit /
Loss for the
Activity Assets Equity Revenue period
Sirius Defense industry 40.485.870 21.228.281 18.257.066 13.552.960

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

Joint operations

As of 31 March 2025, the Parent Company's shares in its joint operations and summary information about the relevant joint operations in which it has shares are as follows;

Title Year of
Establishment
Project Name Partnership
Rate
TAMGÖR - SDT İş Ortaklığı (ST 02) (a) 2018 2.Generation Manpack RF jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 05) 2018 TSS-3A Projesi Manpack RF Jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 06) 2018 528 Unit Manpack RF Jammer For Turkish Army Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 07) 2019 148 Unit Vehicle Type RF Jammer project 50%
TAMGÖR - SDT İş Ortaklığı (ST 08) (b) 2019 91 Unit Vehicle Type RF Jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 09) 2019 Vehicle Type RF Jammer for Mini / Micro UAVs Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 11) (e) 2020 Wheeled armoured vehicle RF jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 12) 2020 Jemus Integration Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 13) (c) 2020 Jammer JBO283AT Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 14) (d) 2021 TTA-2 KKS 2021 12 Unit Vehicle Type RF Jammer project 50%
TAMGÖR - SDT İş Ortaklığı (ST 15) 2022 Maintenance contract for Turkish Land Forces jammer systems 50%
TAMGÖR - SDT İş Ortaklığı (ST 16) 2023 Gendarmariere maintenance project 50%
TAMGÖR - SDT İş Ortaklığı (ST 17) 2024 Procurement and Installation of 8 ILS/DME Systems 50%
TAMGÖR - SDT İş Ortaklığı (ST 18) 2025 Turkish Armed Forces Jammer Supply Maintenance Repair Project 50%
Thales – SDT İş Ortaklığı (Thales – SDT) 2016 8 Unit ILS/DME Project 19%

(a) The relevant business partnership was closed, 31 January 2024.

(b) The relevant business partnership was closed, 15 May 2024.

(c) The relevant business partnership was closed, 11 October 2024.

(d) The relevant business partnership was closed, 11 October 2024.

(e) The relevant business partnership was closed, 23 December 2024.

As of 31 December 2024, the Parent Company's shares in its joint operations and summary information about the relevant joint operations in which it has shares are as follows;

Year of
Establishmen
Partnership
Title t Project Name Rate
TAMGÖR - SDT İş Ortaklığı (ST 02) (a) 2018 2.Generation Manpack RF jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 05) 2018 TSS-3A Projesi Manpack RF Jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 06) 2018 528 Unit Manpack RF Jammer For Turkish Army Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 07) 2019 148 Unit Vehicle Type RF Jammer project 50%
TAMGÖR - SDT İş Ortaklığı (ST 08) (b) 2019 91 Unit Vehicle Type RF Jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 09) 2019 Vehicle Type RF Jammer for Mini / Micro UAVs Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 11) (e) 2020 Wheeled armoured vehicle RF jammer Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 12) 2020 Jemus Integration Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 13) (c) 2020 Jammer JBO283AT Project 50%
TAMGÖR - SDT İş Ortaklığı (ST 14) (d) 2021 TTA-2 KKS 2021 12 Unit Vehicle Type RF Jammer project 50%
TAMGÖR - SDT İş Ortaklığı (ST 15) 2022 Maintenance contract for Turkish Land Forces jammer systems 50%
TAMGÖR - SDT İş Ortaklığı (ST 16) 2023 Gendarmariere maintenance project 50%
TAMGÖR - SDT İş Ortaklığı (ST 17) 2024 Procurement and Installation of 8 ILS/DME Systems 50%
Thales – SDT İş Ortaklığı (Thales – SDT) 2016 8 Unit ILS/DME Project 19%

(a) The relevant business partnership was closed, 31 January 2024.

(b) The relevant business partnership was closed, 15 May 2024.

(c) The relevant business partnership was closed, 11 October 2024.

  • (d) The relevant business partnership was closed, 11 October 2024.
  • (e) The relevant business partnership was closed, 23 December 2024.

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

Summary solo financial information of the Group's joint operations, as of 31 March 2025, is as follows:

Profit / Loss
Joint operations Activity area Assets Equity Revenue for the period
ST 05 Frequency mixer system production 89.574 (73.251) - (4.888)
ST 06 Frequency mixer system production 3.904.758 (382.118) 49 168.981
ST 07 Frequency mixer system production 6.128.399 981.506 1.360.837 1.110.507
ST 09 Frequency mixer system production 2.063.987 (872.003) 1.394 147.573
ST 12 Frequency mixer system production 3.938.054 (1.964.340) 18.153 (396.361)
ST 15 Frequency mixer system production 11.296.570 (888.103) 73.821 (1.525.893)
ST 16 Frequency mixer system production 13.104.873 1.090.088 2.115.276 (328.800)
ST 17 Frequency mixer system production 203.822.603 11.072.080 11.485 3.700.607
ST 18 Frequency mixer system production 5.648 (32.040) - (32.039)
Thales - SDT ILS/DME System 110.104 (158.859) - (8.599)

Summary solo financial information of the Group's joint operations, as of 31 December 2024, is as follows:

Profit / Loss
Joint operations Activity area Assets Equity Revenue for the period
ST 05 Frequency mixer system production 101.475 (92.641) - 17.064
ST 06 Frequency mixer system production 4.089.799 324.810 1.016.314 1.117.062
ST 07 Frequency mixer system production 5.267.615 129.921 831.334 (749.608)
ST 08 Frequency mixer system production 130.711 131.129 621.476 192.075
ST 09 Frequency mixer system production 2.216.794 (875.010) 613.812 471.022
ST 11 Frequency mixer system production 1.040.087 1.038.810 2.069.391 874.651
ST 12 Frequency mixer system production 5.008.263 (2.916.620) 1.369.510 (1.730.352)
ST 13 Frequency mixer system production 579.976 578.643 1.132.270 (465.247)
ST 14 Frequency mixer system production 9.987 (39.529) 893.746 (397.561)
ST 15 Frequency mixer system production 13.499.685 2.086.944 5.130.563 (614.069)
ST 16 Frequency mixer system production 14.578.951 7.919.866 15.566.057 4.322.509
ST 17 Frequency mixer system production 125.855.598 14.104.053 32.916 14.089.149
Thales - SDT ILS/DME System 135.493 (150.259) - (77.932)

The above-mentioned solo financial statements of the partnerships within the scope of joint operations are included in the attached financial statements of the Parent Company, taking into account the share ratios of the Parent Company. Other information regarding joint operations is presented in Footnote 1.

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

NOTE 4 - RELATED PARTY DISCLOSURES

i) Receivables and payables from related parties:

a) The details of receivables from related parties classified under other short-term receivables are as follows (Note 8):

31.03.2025 31.12.2024
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. - 2.032.927
Dormak İth. İhr. Müm. ve Dan. Tic. A.Ş. - 156.852
Dorsan Uzay ve Hav.Sav. San.Taah.ve Tic. Ltd.Şti. - -
- 2.189.779
b) The details of advances given to related parties classified under the prepaid expenses account item are as
follows (Note 13):
31.03.2025 31.12.2024
Dormak İth. İhr. Müm. ve Dan. Tic. A.Ş. - 26.386.134
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. 865.936 -

865.936 26.386.134

c) The details of payables to related parties classified under the short-term trade payables account item are as follows (Note 8):

31.03.2025 31.12.2024
Dormak İth. İhr. Müm. ve Dan. Tic. A.Ş. 11.559.404 -
Tamgör Elektronik Sanayi ve Ticaret Limited Şirketi 13.234.054 551.941
Gate-Tamgör Elektronik Sanayi Ticaret Limited Şirketi 42.124 23.409
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. -
24.835.582 575.350

ii) Sales, purchases and transactions to related parties:

a) The details of sales to related parties classified in the revenue are as follows:

01.01- 01.01-
31.03.2025 31.03.2024
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. 26.874 1.471.605
Tamgör Elektronik Sanayi ve Ticaret Limited Şirketi - 677.500
Dorsan Uzay ve Hav.Sav. San.Taah.ve Tic. Ltd.Şti. - 9.029.848
26.874 11.178.953

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

b) The details of purchases from related parties classified within the cost of sales account are as follows:

01.01- 01.01-
31.03.2025 31.03.2024
Tamgör Elektronik Sanayi ve Ticaret Limited Şirketi 35.012.461 1.246.498
Dormak İth. İhr. Müm. ve Dan. Tic. A.Ş. 42.433.548 -
Gate-Tamgör Elektronik Sanayi Ticaret Limited Şirketi 95.782 303.726
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. 17.455.627 -
94.997.418 1.550.224

c) The details of other income obtained from related parties classified under the other income from main activities account item are as follows:

01.01-
31.03.2025
01.01-
31.03.2024
Dormak İth. İhr. Müm. ve Dan. Tic. A.Ş. 29.485 -
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. 9.828 -
39.313 -

d) The details of other expenses from related parties classified in expenses from investing activities are as follows:

01.01-
31.03.2025
01.01-
31.03.2024
Sirius Tasarım Laboratuvarı Mühendislik A.Ş. - 504.560
- 504.560

e) The details of remuneration and similar benefits provided to senior manager are as follows:

01.01-
31.03.2025
01.01-
31.03.2024
Remuneration and similar benefits provided to senior manager 6.371.000 7.454.324
6.371.000 7.454.324

The Group has determined the members of the board of directors, the General Manager and assistant general managers as senior managers.

NOTE 5 – CASH AND CASH EQUIVALENTS

As of 31 March 2025 and 31 December 2024, the details of cash and cash equivalents are listed below:

31.03.2025 31.12.2024
Cash 75.657 49.273
Banks
Time deposits 17.822.918 105.257.803
Demand deposits 38.728.230 14.731.614
Liquid funds 585.858.332 590.473.663
642.485.137 710.512.353

As at 31 March 2025 and 31 December 2024, the Group's bank deposits consist of time and demand deposits. As at 31 March 2025 and 31 December 2024, there is no blockage on the related deposits. Liquid funds consist of cash equivalents that can be converted into cash at their carrying values.

As of 31 March 2025, the details of the time deposits are presented below;

Foreign Currency
Currency Type Amount Interest Rate Due Date TRY Amount
TRY 16.555.613 %39,00 -
%43,00
3 -
92 days
16.555.613
USD 33.541 %0,5 -
%3,50
3 days 1.266.694
EURO 15 %0,001 -
%0,001
3 days 611
17.822.918

As of 31 December 2024, the details of the time deposits are presented below:

Currency Type Foreign Currency
Amount
Interest Rate Due Date TRY Amount
TRY 92.416.819 %0,01 -
%50,00
3 -
35 days
92.416.819
USD 330.475 %0,5 -
%3,50
7 -
35 days
12.832.493
EURO 210 %0,001 35 days 8.491
105.257.803

NOTE 6 – FINANCIAL INVESTMENTS

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

Short term financial investments

None (31 December 2024: None).

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

Long term financial investments

31.03.2025 31.12.2024
Financial investments to fair value through profit or loss
Other Financial Investments (a)
-
9.498.845
-
10.113.295
9.498.845 10.113.295

(a) Other financial investments arise from long-term fund purchases acquired by the Group within the scope of the "Regulation on Amendments to the Implementation and Audit Regulation on Support of Research, Development and Design Activities No. 5746".

NOTE 7 – FINANCIAL BORROWINGS

As of 31 March 2025 and 31 December 2024 the details of financial borrowings are as follows:

31.03.2025 31.12.2024
Short-term bank loans 159.034.703 154.446.950
Other financial liabilities (credit cards) 42.829 173.718
Liabilities from leases
(*)
15.044.292 16.558.164
Short-term portion of long-term loans 185.097.076 186.582.988
Total short term financial liabilities 359.218.900 357.761.820
Long term bank loans 10.984.579 -
Liabilities from leases
(*)
7.751.543 12.420.727
Total long term financial liabilities 18.736.122 12.420.727
Total financial liabilities 377.955.022 370.182.547

(*) As at 31 March 2025 and 31 December 2024, the related financial liabilities consist of payables within the scope of "TFRS 16 Leases" standard.

As at 31 March 2025 and 31 December 2024, the shareholders of the Parent Company have personal guarantees in favour of financial institutions as collateral for all of the Group's bank borrowings. In addition, as at 31 March 2025, the Group has made an export commitment amounting to TL 338.048.230 (31 December 2024: TL 341.029.939) (Note 20).

As at 31 March 2025, the average effective interest rate of USD denominated bank borrowings is 7,99% (31 December 2024: USD: 8,02%).

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

The foreign exchange position of financial debts as of 31 March 2025 is presented below:

Currency Type Foreign
Exchange
Amount
Exchange
rate
TRY
Amount
TRY
USD
22.838.682
9.386.244
1,0000
37,8337
22.838.682
355.116.340
Total 377.955.022

The foreign exchange position of financial debts as of 31 December 2024 is presented below:

Currency Type Foreign
Exchange
Amount
Exchange
rate
TRY
Amount
TRY 29.152.626 1,0000 29.152.626
USD 8.766.754 35,3438 341.029.921
Total 370.182.547

As at 31 March 2025 and 31 December 2024, the maturity analysis of financial liabilities is as follows:

31.03.2025 31.12.2024
Due in 0 -
1 year
359.218.900 357.761.820
Due in 1 -
2 years
13.431.871 12.420.727
Due in 2 –
3 years
5.304.251 -
377.955.022 370.182.547

NOTE 8 – TRADE RECEIVABLES AND PAYABLES

As of 31 March 2025 and 31 December 2024 the details of trade receivables are as below:

Short term trade receivables

31.03.2025 31.12.2024
Trade receivables 260.105.627 396.187.971
Notes receivables - 2.217.460
Unearned interest on receivables (-) (4.880.831) (6.704.375)
Trade receivables from related parties (Note 4) - 2.189.779
Doubtful trade receivables 2.921.793 4.071.171
Provision for doubtful trade receivables (-) (2.921.793) (4.071.171)
255.224.796 393.890.835

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

The movement schedule of provision for doubtful receivables is as below:

01.01. - 01.01. -
31.03.2025 31.12.2024
Opening balance 4.071.171 8.033.522
Reversal of unnecessary provision (777.161) (1.840.518)
Monetary gain / (loss), net (372.217) (2.139.135)
Provisions for the period - 17.302
Closing balance 2.921.793 4.071.171

As at 31 March 2025, the Group has given letters of guarantee amounting to TRY 771.068.950 to customers, tender issuing institutions and other institutions (31 December 2024: TRY 855.675.967). In addition, as at 31 March 2025, the Group has given guarantee notes amounting to TRY 266.407.831 (31 December 2024: TRY 257.849.481) (Note 20).

As at 31 March 2025, there are no guarantees received from customers for trade receivables (31 December 2024: None).

The maturity of the Group's trade receivables varies on a customer-by-customer basis, with an average of 60 - 90 days.

Long term trade receivables

None (31 December 2024: None).

The credit risk table of trade receivables is presented in Note 33.

As at 31 March 2025 and 31 December 2024, details of trade payables are as follows;

Short term trade payables

31.03.2025 31.12.2024
Trade payables 88.890.604 104.234.865
Trade payables to related parties (Note 4) 24.835.582 575.350
Expense accruals 625.000 667.254
Discount on payables (-) (5.386.715) (4.821.690)
108.964.471 100.655.779

Details of the Group's contingent assets arising from its trade payables are as follows;

As at 31 March 2025, the Group has received letters of guarantee amounting to TRY 18.703.335 from its suppliers (31 December 2024: TRY 18.001.792). As at 31 March 2025, the Group has received promissory notes amounting to TRY 7.907.905 (31 December 2024: TRY 12.779.388) from its suppliers (Note 20).

Details of the Group's contingent liabilities arising from its trade payables are as follows;

As at 31 March 2025, the Group has given promissory notes amounting to TRY 3.150.228 to its suppliers (31 December 2024: TRY 3.467.228) (Note 20).

The maturity of the Group's commercial payables varies for each supplier, with an average of 30 - 60 days.

Long term trade payables

None (31 December 2024: None).

NOTE 9 – OTHER RECEIVABLES AND PAYABLES

As at 31 March 2025 and 31 December 2024, details of other receivables are as follows:

Other short-term receivables

31.03.2025 31.12.2024
VAT receivables from the tax office 13.810.641 8.909.949
Other receivables 62.608 6.230
13.873.249 8.916.179
Other long-term receivables
31.03.2025 31.12.2024
Deposits and guarantees given 545.583 578.118
545.583 578.118

As at 31 March 2025 and 31 December 2024, details of other payables are as follows:

Other short-term payables

31.03.2025 31.12.2024
Taxes and funds payable 12.147.420 17.610.896
Deposits and guarantees received 512.662 564.251
12.660.082 18.175.147

Other long-term payables

None (31 December 2024: None).

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

NOTE 10 – EMPLOYEE BENEFITS OBLIGATIONS

As of 31 March 2025 and 31 December 2024, the details of employee benefits liabilities are as follows:

31.03.2025 31.12.2024
Payables to employees 46.519.264 29.416.225
Social security premiums payable 25.620.650 11.487.466
72.139.914 40.903.691

NOTE 11 – INVENTORIES

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

31.03.2025 31.12.2024
Raw materials 799.723.051 617.703.450
Semi-finished goods 642.779.698 610.681.960
Finished goods 153.604.777 158.417.373
Provision for inventories
impairment (-) (a)
(41.748.387) (41.748.387)
1.554.359.139 1.345.054.396

(a) The Group calculates impairment provisions within the scope of the precautionary principle for stocks that have not been active for a long time and that are not certain to be used in current and/or future production projects.

The movement schedule of inventory impairment provision is as follows:

31.03.2025 31.12.2024
Balance at the beginning of the period 41.748.387 41.701.269
Monetary gain /(loss), net - 14.482
Provision allocated during the period - 32.636
41.748.387 41.748.387
The details of the inventories impairment provision on a inventory basis are as follows:
31.03.2025 31.12.2024
Raw materials 8.136.285 8.857.114
Semi-finished goods 33.612.102 32.891.273
41.748.387 41.748.387

As at 31 March 2025, there is insurance coverage of TRY 777.663.688 on the stocks.

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

NOTE 12 – OTHER CURRENT ASSETS

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

31.03.2025 31.12.2024
VAT carried forward 30.222.958 17.273.151
30.222.958 17.273.151

NOTE 13 – PREPAID EXPENSES

As of 31 March 2025 and 31 December 2024, the details of prepaid expenses are as follows:

Short-term prepaid expenses

31.03.2025 31.12.2024
Order advances given 59.094.627 69.730.319
Order advances given to related parties - 26.386.134
Prepaid expenses 18.734.927 19.822.966
Advances given 4.365.994 18.152.410
Advances given to personnel 88.531 35.647
82.284.079 134.127.476
Long term prepaid expenses
31.03.2025 31.12.2024
Advances given for purchases of tangible fixed assets (*) 110.253.307 110.495.444
Prepaid expenses 4.496.072 1.240.010
114.749.379 111.735.454

(*) As at 31 March 2025, TRY 67.562.451 of the related amount consists of the advance given within the scope of "Land Allocation Agreement" with Ankara Space and Aviation Specialised Organised Industrial Zone Directorate (31 December 2024: TRY 67.562.451).

NOTE 14 – DEFERRED INCOME

As of 31 March 2025 and 31 December 2024, the details of deferred income are as follows;

Short-term deferred income

31.03.2025 31.12.2024
Advances received
(*)
433.981.680 389.865.191
Deferred income 77.026.428 78.144.325
511.008.108 468.009.516

(*) As of 31 March 2025, TRY 52.702.344 of order advances received consists of cash advances received from foreign customers (31 December 2024: TRY 54.188.207).

Long-term Deferred income

31.03.2025 31.12.2024
Advances received (**)
Deferred income
40.822.713
2.165.634
65.063.339
2.269.358
42.988.347 67.332.697

(**) As of 31 March 2025 and 31 December 2024, all of the order advances received consist of cash advances received from domestic customers.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

NOTE 15 – RIGHT OF USE ASSETS

As of 31 March 2025 and 31 December 2024, the details and movement tables of right of use assets are as follows;

31 December 31 March
31 December 2023 Addition Transfer 2024 Addition Disposal Transfer 2025
72.688.326 25.185.332 - 97.873.658 - - - 97.873.658
11.518.714 5.617.662 - 17.136.376 - - - 17.136.376
115.010.034
76.885.884
12.883.183
- 89.769.067
25.240.967
84.207.040
59.284.058
8.058.254
67.342.312
16.864.728
30.802.994
14.453.658
3.211.200
17.664.858
-
-
115.010.034
73.737.716
11.269.454
85.007.170
30.002.864
-
3.148.168
1.613.729
4.761.897
-
-
-
-
-
-
-
-

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

NOTE 16 – TANGIBLE FIXED ASSETS

As of 31 March 2025 and 31 December 2024, the details and movement tables of property, plant and equipment are as follows:

31 December 31 December 31 March
Cost 2023 Addition Disposal 2024 Addition Disposal 2025
Machinery, plant
and
equipment
85.099.954 8.815.660 (194.775) 93.720.839 2.407.140 (176.967) 95.951.012
Vehicles 7.201.762 - - 7.201.762 - - 7.201.762
Furnitures and fittings 61.182.321 7.077.088 (618.649) 67.640.760 4.114.281 (117.384) 71.637.657
Leasehold improvements 37.552.484 - - 37.552.484 35.861 - 37.588.345
Construction in progress 8.894.245 124.437.963 - 133.332.208 8.965.118 - 142.297.326
Total 199.930.766 140.330.711 (813.424) 339.448.053 15.522.400 (294.351) 354.676.102
Accumulated Depreciation
(-)
Machinery, plant and equipment 58.746.210 10.379.139 (149.328) 68.976.021 2.432.139 (135.673) 71.272.487
Vehicles 720.695 720.176 - 1.440.871 180.044 - 1.620.915
Furnitures and fittings 46.005.786 5.218.830 (131.464) 51.093.152 1.524.159 (112.932) 52.504.379
Leasehold improvements 37.377.599 142.893 - 37.520.492 9.693 - 37.530.185
Total 142.850.290 16.461.038 (280.792) 159.030.536 4.146.035 (248.605) 162.927.966
Net Book Value 57.080.476 180.417.517 191.748.136

As of 31 March 2025 and 31 December 2024, property, plant and equipment are carried at cost less accumulated depreciation (cost method), which is calculated by deducting the residual value, if any, from the acquisition cost in the accompanying financial statements. The Group has no property, plant and equipment acquired under finance leases.

As of 31 March 2025 and 31 December 2024, there is no encumbrance on property, plant and equipment. As at 31 March 2025, the total amount of insurance on property, plant and equipment is TRY 219.668.745.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

NOTE 17 – INTANGIBLE FIXED ASSETS

As of 31 March 2025 and 31 December 2024, the details and movement tables of intangible assets are as follows;

31 December 31 December 31 March
Cost 2023 Addition 2024 Addition Disposal 2025
Rights 40.468.410 469.185 40.937.595 2.692.482 - 43.630.077
Development costs (a) 194.710.845 27.755.458 222.466.303 10.290.847 - 232.757.150
Total 235.179.255 28.224.643 263.403.898 12.983.329 - 276.387.227
Accumulated Amortization
(-)
Rights 35.694.711 2.529.588 38.224.299 775.501 - 38.999.800
Development costs (a) 115.922.952 20.285.646 136.208.598 3.452.509 - 139.661.107
Total 151.617.663 22.815.234 174.432.897 4.228.010 - 178.660.907
Net Book Value 83.561.592 88.971.001 97.726.320

(a) Capitalised development costs consist of the costs of software projects that the Group does not carry out on an order basis. The related costs mainly consist of personnel costs for the related project.

As of 31 March 2025, the net book value of capitalized development costs is TRY 93.096.043 (31 December 2024: TRY 86.257.705).

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

NOTE 18 – INVESTMENTS VALUED BY EQUITY METHOD

As of 31 March 2025 and 31 December 2024, the details of investments accounted through equity method are as follows;

31.03.2025 31.12.2024
Sirius –
Cost Amount
5.601.482 5.601.482
Sirius –
Adjustment according to equity method
8.348.064 2.889.831
13.949.546 8.491.313

As of 31 March 2025 and 2024, the share of profit / (loss) of investments accounted for using the equity method is as follows;

01.01. -
31.03.2025
01.01. -
31.03.2024
Share of Profit / (Loss) of Investments Valued by
Equity Method
5.460.752 2.018.284
5.460.752 2.018.284

As of 31 March 2025 and 31 December 2024, summary financial information of investments accounted through equity method is as follows;

Sirius Tasarım Laboratuvarı Mühendislik Anonim Şirketi ("Sirius" or "Company")

Summary Statement of Financial Position

31.03.2025 31.12.2024
Current Assets 3.921.643 5.733.700
Non –
Current Assets
42.336.341 34.752.170
Total Assets 46.257.984 40.485.870
Short –
Term Liabilities
10.773.929 19.016.380
Long –
Term Liabilities
610.190 241.209
Equity 34.873.865 21.228.281
Total
Liabilities
46.257.984 40.485.870

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

Summary Profit or Loss Statement

01.01. - 01.01. -
31.03.2025 31.03.2024
Revenue 17.934.549 5.144.716
Gross
profit
/ (loss)
17.934.549 5.144.716
Operating expenses
Other
income
/ (expense), net
(333.392)
(3.949.277)
(524.640)
425.637
Period
profit
/ (loss), net
13.651.880 5.045.713

NOTE 19 – GOVERNMENT INCENTIVES AND GRANTS

The details of the incentives obtained by the Group are as follows;

a) The Group's software projects are approved by the relevant governmental organisations and the Group receives certain tax incentives upon approval. The rights of the Group due to these incentives are as follows:

  • Incentives within the scope of the Technology Development Zones Law (100% corporate tax exemption),

  • Incentives within the scope of research and development law (Social Security Institution incentives etc.)

The Group's income from research and development activities is exempt from corporate tax pursuant to the provisional second article of the Technology Development Zones Law No. 4691, which states that "The earnings of the management companies within the scope of this law and the earnings of the income and corporate taxpayers operating in the zone exclusively from software and R&D activities in this zone are exempt from income and corporate tax until 31 December 2028".

In this context, the Group's income exempt from corporate tax for the period ended 31 December 2024 is TRY 214.402.790 (01 January - 31 March 2025: None).

In addition, within the scope of the same law; the Group's personnel SSI premium, income and stamp tax incentive amount for the period ending 31 March 2025 is TRY 3.666.986 (01 January - 31 December 2024: TRY 12.795.548).

b) The Group benefits from incentives in accordance with the "Social Insurance and General Health Insurance Law No. 5510" of the Social Security Institution of the Republic of Turkey ("SGK"). In this context, the Group has incentive amounting to TRY 5.668.472 for the period ended 31 March 2025 (01 January - 31 December 2024: TRY 23.554.377).

c) The Group has incentive income amounting to TRY 567.876 for the period ended 31 March 2025 (01 January - 31 December 2024: TRY 205.963) within the scope of "Decision No. 2017/4 on Supporting Participation in Exhibitions Held Abroad".

d) Since the Parent Company's shares are offered to the public at a rate of at least 20% to be traded for the first time in the Borsa Istanbul Stock Market, corporate tax is applied with a 2 percentage point discount on corporate income for 5 accounting periods starting from the accounting period in which the Parent Company's shares are offered to the public for the first time.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

e) The Parent Company benefits from discounted corporate tax exemption within the framework of Article 32/A of Law No. 5520. As of 31 December 2024, the amount of investment allowance carried forward to the next period is TRY 27.982.144. The Parent Company management plans to use the related tax deduction until the end of 2025.

f) The Group passed an audit covering software development processes and general organisational processes and was awarded the CMMI (Capability Maturity Model Integration) certificate. In this context, the incentive amount obtained by the Group for the period ending 31 December 2024 is TRY 1.387.197 (01 January - 31 March 2025: TRY 1.526.787).

NOTE 20 – PROVISIONS, CONTINGENT LIABILITIES AND ASSETS

As of 31 March 2025 and 31 December 2024, provisions, contingent assets and liabilities are as follows;

Short-term liabilities provisions

31.03.2025 31.12.2024
Warranty service expense
provision
Provision for lawsuits
3.808.863
-
3.786.147
-
3.808.863 3.786.147
Long-term liabilities provisions
31.03.2025 31.12.2024
Warranty service expense
provision
2.087.191 2.161.392
2.087.191 2.161.392

Commitments

As of 31 March 2025, the Group has made an export commitment to the financial institution amounting to TRY 338.048.230 (31 December 2024: TRY 341.029.939). As at 31 March 2025, the Group has purchase commitments from banks amounting to USD 10.005.521 (31 December 2024: USD 11.005.521) (Note 22).

Contingent Assets

The details of Group's contingent assets are as follows;

Letters of guarantee - As of 31 March 2025, the Group has received letters of guarantee amounting to TRY 18.703.335 (USD 259.264 - EURO 157.580 - TRY 2.469.038) from its suppliers (31 December 2024: TRY 18.001.792 (USD 157.580 - EURO 1.124.957)).

Guarantee Bonds - As of 31 March 2025, the Group has received promissory notes amounting to TRY 7.907.905 (USD 68.640 - TRY 5.311.000) from its suppliers (31 December 2024: TRY 12.779.388 (TRY 12.779.388)).

Contingent Liabilities

As of 31 March 2025 and 31 December 2024, the Group's guarantee / security / mortgage ("GSM") position is as follows;

Given
GSM (Guarantee-Security-Mortgage)
by the Group
31.03.2025 31.12.2024
A. Total amount of GSMs given on Behalf of its own Legal Entity 1.043.322.330 1.119.959.221
B. Total Amount of Gsm Given for Partnerships Which are Included in
(a) 1.000.000 1.100.628
C.
Total Amount of Gsm Given for the Purpose of Guaranteeing Third
Party Loans to Carry The Regular Trade Activities - -
D. Total Amount of Other Gsm Given - -
i. Total Amount of Gsm Given or the Parent Company - -
ii. Total Amount of Gsm Given for Other Group Companies Not
Included in B And C Clauses - -
iii. Total Amount of Gsm Given for Third Parties Not Included in C
Clause - -
Total 1.044.322.330 1.121.059.849

(a) As of 31 March 2025, the Parent Company has a guarantee amounting to TRY 1.000.000 in favour of financial institutions for Cey Savunma, a subsidiary of the Parent Company (31 December 2024: TRY 1.100.628).

The details of the Group's contingent liabilities are as follows:

Letters of Guarantees - As of 31 December 2024, the Group has letters of guarantee amounting to TRY 771.068.950 (TRY 19.164.160 - USD 19.572.671 - EURO 279.537) (31 December 2024: TRY 855.675.967 (TRY 51.167.797 - USD 21.138.835 - EURO 279.537)).

Guarantee Bonds - As of 31 March 2025, the Group has given promissory notes amounting to TRY 266.407.831 (TRY 52.625.130 - USD 5.650.589) to its customers and suppliers (31 December 2024: TRY 257.849.481 (TRY 57.673.304 - USD 5.145.869)).

Venture capital fund – The Group has a fund purchase obligation amounting to TRY 5.845.549 until 31 December 2025 (31 December 2024: TRY 6.433.773) within the scope of the "Regulation Amending the Implementation and Audit Regulation on Supporting Research, Development and Design Activities numbered 5746".

Lawsuits - From time to time, lawsuits may be filed against the Group in connection with its business activities. The Group management and legal advisors analyse the realisability of the related risks. As a result of the analyses made, there is no matter that requires a provision to be allocated by the Group management.

NOTE 21 – EMPLOYEE BENEFITS

As of 31 March 2025 and 31 December 2024, provisions for short-term and long-term employee benefits are as follows;

Short-term provisions for employee benefits

31.03.2025 31.12.2024
Provisions
for unused annual leave
26.578.343 21.787.279
Provisions for
personnel wage premium
4.932.930 16.705.595
31.511.273 38.492.874
Long-term provisions for employee benefits
31.03.2025 31.12.2024
Severance pay provisions 23.649.228 22.283.077
23.649.228 22.283.077

The Group's severance pay provision has been calculated as explained in Note 2. As of 31 March 2025, the maximum amount of TRY 46.655 for each year of service is calculated on the basis of 30 days' pay, using the rates prevailing at the date of retirement or departure (31 December 2024: TRY 41.828).

In the consolidated financial statements as at 31 March 2025 and 31 December 2024, the Group has reflected a liability calculated by discounting the expected inflation rate and real discount rate to the balance sheet date based on the principles stated above.

The ratios of the basic assumptions used on the statement of financial position day are as follows:

31.03.2025 31.12.2024
Interest rate 44,25% 53,55%
Inflation rate 40,00% 49,00%
Real discount rate 3,04% 3,05%
Rate that is used for the probability of retirement 90,85% 89,19%

The Group does not provide any benefits other than severance pay to its employees.

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

As of 31 March 2025 and 31 December 2024, movement of provision for employment termination benefits is as follows;

01.01. - 01.01. -
31.03.2025 31.12.2024
Balance at the beginning of the period 22.283.077 17.197.487
Service cost 2.537.210 11.853.610
Monetary gain / (loss), net (2.043.199) (5.806.179)
Interest cost 151.615 262.865
Payments in the period (1.057.401) (309.667)
Actuarial gain / (losses) 1.777.926 (915.039)
Closing balance 23.649.228 22.283.077

NOTE 22 – DERIVATIVE INSTRUMENTS

As of 31 March 2025, the details of forward foreign currency purchase/sale contracts are as follows;

The amount TRY
equivalent of
of foreign The TRY
equivalent
the foreign
currency to of foreign currency to currency to be
be received be received from the received from the Fair Value
from the bank as of the balance bank according to Difference
bank
(USD)
sheet date the contract (TRY)
USD -
TRY Exchange Rate
1 to 12 months 10.005.521 378.545.873 368.600.684 9.945.189

As of 31 December 2024, the details of forward foreign currency purchase/sale contracts are as follows;

The amount TRY
equivalent of
of foreign The TRY
equivalent
the foreign
currency to of foreign currency to currency to be
be received be received from the received from the Fair Value
from the bank as of the balance bank according to Difference
bank
(USD)
sheet date the contract (TRY)
USD -
TRY Exchange Rate
1 to 12 months
11.005.521 428.118.767 421.370.455 6.748.313

NOTE 23 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS

23.1 Paid in Capital

As of 31 March 2025, the Parent Company's share capital consists of 58.000.000 shares with a par value of TRY 1 each.

The capital structure of the Parent Company as of 31 March 2025 and 31 December 2024 is as follows;

31 March 2025 31 December 2024
Share Share Amount Share Share Amount
Shareholders Ratio (TRY) Ratio (TRY)
Mehmet Dora 63,11% 36.602.500 63,11% 36.602.500
Mustafa Fatih Ünal 2,32% 1.347.500 2,32% 1.347.500
Public Held 27,57% 15.990.000 27,57% 15.990.000
Others (a) 7% 4.060.000 7% 4.060.000
Total 100,00% 58.000.000 100,00% 58.000.000
Capital adjustment differences 192.501.705 192.501.705
Paid in Capital 250.501.705 250.501.705

(a) On 05 September 2023, Mehmet Dora and Mustafa Fatih Ünal, shareholders of the Parent Company, transferred their 1,060,000 and 940,000 unlisted B group shares, respectively, to the investment funds established by Hedef Portföy Yönetimi Anonim Şirketi within the scope of the Procedure on Wholesale Transactions. Mehmet Dora, one of the shareholders of the Parent Company, transferred 5.800.000 shares of unlisted Group B shares to the investment funds established by Hedef Portföy Yönetimi Anonim Şirketi on 28 June 2024 within the scope of the Procedure Regarding Wholesale Purchase and Sale Transactions. As a result of the share purchase and sale transactions of the related portfolio investment company during the period, as of 31 March 2025, the number of shares of the related investment company in the capital of the Parent Company is 4.060.000.

The share capital of the Parent Company was increased from TRY 10.000.000 to TRY 50.000.000 on 08 March 2022 and the entire amount was transferred from retained earnings.

SDT Uzay ve Savunma Teknolojileri Anonim Şirketi's issued capital of TRY 50,000,000 within the registered capital ceiling of TRY 750,000,000 was increased to TRY 58,000,000 by completely restricting the pre-emptive rights of the existing shareholders in accordance with the approvals of the Capital Markets Board of Turkey and Borsa Istanbul Anonim Şirketi. TRY 8.000.000 nominal capital amount and shares with a nominal value of TRY 4,250,000 within the scope of shareholder sales, in total TRY 12,250,000 nominal value shares were offered to the public on 28 - 29 December 2022 at a price of TRY 32, and the Parent Company shares started to be traded on Borsa Istanbul Stars Market on 04 January 2023 with the code "SDTTR" and continuous trading method.

According to the articles of association of the Parent Company registered on 14 September 2022; the Parent Company shares are divided into Group A and Group B shares. Out of the total 58.000.000 shares of the Parent Company, 7.500.000 shares are Group A shares and all of these shares belong to Mehmet Dora.

Capital Adjustment Differences

As of 31 March 2025, capital adjustment differences amount to TRY 192.501.705 (31 December 2024: TRY 192.501.705). Adjustment to share capital represents the difference between the inflation adjusted amounts of cash and cash equivalent contributions to share capital and the amounts before inflation adjustment.

Effective from 14 September 2022, the privileges granted to Group A shares are as follows:

Election of the board members

According to Article 9 of the Articles of Association titled "Board of Directors and its Term"; it is stated that the Board of Directors may consist of at least 5 members, half of the members of the Board of Directors may be elected among the candidates to be nominated by the Group A shareholders, and if half of the number of the members of the Board of Directors is a fractional number, the fraction should be rounded down to the following whole number.

Voting Right

According to Article 12 of the Articles of Association titled "General Assembly", each Group A share has 5 voting rights and each Group B share has 1 voting right in ordinary and extraordinary general assembly meetings.

Effective from 14 September 2022, there is no privilege granted to Group B shares.

The Group's explanation regarding the adjusted equity accounts in accordance with TAS 29 prepared in accordance with the Capital Markets Board Bulletin published on 07 March 2024 is as follows;

Financial
statements Financial statements Differences to be
according to according to TAS / Followed in Previous
TPL(VUK) UFRS Years' Profits / (Loss)
Capital Adjustment Differences 176.186.039 192.501.705 16.315.666
Legal
Reserves
63.974.712 31.158.461 (32.816.251)

The Group's statement on prior year profits adjusted in accordance with TAS 29, based on the Capital Markets Board Bulletin published on March 7, 2024, is as follows;

Previous Year Profit / (Loss) Amount Before TAS 29 Amount After TAS 29
01 January
2022
219.408.683 668.089.426

23.2 Legal Reserves

The legal reserve is appropriated out of the statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Company's paid-in share capital. Other legal reserves are appropriated at the rate of 10% of the total amount to be distributed to shareholders after payment of a 5% dividend to shareholders. According to the Turkish Commercial Code, unless the legal reserve does not exceed half of the share capital or issued capital, it can only be used to cover losses, to continue the business when business is not going well, or to take measures to prevent unemployment and mitigate its consequences.

As of 31 March 2025 and 31 December 2024, legal reserves account is as follows;

31.03.2025 31.12.2024
Legal reserves appropriated from profits 31.158.461 31.158.461
31.158.461 31.158.461

23.3 Retained Earnings / (Accumulated Losses)

As of 31 March 2025 and 31 December 2024, retained earnings / (accumulated losses) are as follows;

31.03.2025 31.12.2024
Retained earnings / (accumulated losses) 1.179.596.018 1.168.677.568
1.179.596.018 1.168.677.568

In the general assembly meeting of the Parent Company held on 30 May 2024, it has been decided to pay dividend amounting to gross TRY 130.192.124 (TRY 168.578.652 based on the purchasing power as of 31 March 2025). According to the related general assembly resolution, the related amount will be paid in three instalments and the first instalment was paid on 13 August 2024, the second instalment was paid on 25 November 2024 and the last instalment was paid on 23 December 2024.

As of 31 March 2025 and 2024, the movement of retained earnings / (losses) is presented in the accompanying statement of changes in equity.

23.4 Remeasurement Gains / (Losses) on Defined Benefit Plans

For the years ended 31 March 2025 and 31 December 2024, the Group has reflected a liability calculated by discounting the retirement pay liability to the statement of financial position date using the expected inflation rate and real discount rate based on the principles explained in Note 2. All gains and losses other than actuarial gains / (losses) are recognised in the statement of profit or loss and actuarial gains / (losses) are recognised in the statement of changes in equity.

31.03.2025 31.12.2024
Remeasurement of gains / (losses) on defined benefit plans (387.975) 981.028
(387.975) 981.028

23.5 Share Premiums

Share premiums consist of the cash inflows obtained from the sale of the Parent Company's shares at market prices in the Borsa Istanbul Yıldız Market and the costs related to the public offering process. Share premiums are recognised under equity.

With the sale of 8.000.000 shares of the Parent Company, each of which is TRY 1, at Borsa Istanbul A.Ş. with a unit share price of TRY 32 on the relevant date, a total fund amounting to TRY 256.000.000 has been generated. TRY 8.000.000 of the related amount is reported in the share capital account and the remaining TRY 248.000.000 (TRY 608.870.212 based on the purchasing power as of 31 March 2025) is reported in the share premium account. Total public offering cost of the Parent Company amounting to TRY 16.832.997 (TRY 41.327.060 based on the purchasing power as of 31 March 2025) is reported by deducting from the share premium amount.

As of 31 March 2025 and 31 December 2024, the details of share premium account are as follows;

31.03.2025 31.12.2024
Premiums from the sale of shares on Borsa Istanbul A.Ş.
Costs associated with the public offering process
608.870.212
(41.327.060)
608.870.212
(41.327.060)
567.543.152 567.543.152

NOT 24 – REVENUE AND COST OF SALES

24.1 Revenue

For the periods ended at 31 March 2025 and 2024, the details of revenue are as follows;

01.01. -
31.03.2025
01.01. -
31.03.2024
Domestic Sales
Exports
159.400.544
14.841.109
299.980.932
42.418.758
174.241.653 342.399.690
Sales returns (3.587.378) (201.293)
Sales Revenues (net) 170.654.275 342.198.397

For the periods ended at 31 March 2025 and 2024, concentration risk analysis is presented in Note 33.

24.2 Cost of Sales

For the periods ended at 31 March 2025 and 2024, the details of cost of sales are as follows;

01.01. - 01.01. -
31.03.2025 31.03.2024
General Production Expenses 104.287.310 298.742.071
Depreciation and amortization 9.556.492 7.733.266
Change in work-in-progress inventory
1. Work-in-progress at the beginning of the period
(+)
610.681.960 334.094.991
2. Work-in-progress at the end of the period
(-)
(642.779.698) (392.200.702)
Cost of goods produced 81.746.064 248.369.626
Change in finished goods inventory
1. Finished goods at the beginning of the period (+) 158.417.373 23.510.945
2. Finished goods at the end of the period (-) (153.604.777) (39.356.264)
Cost of finished goods sold 86.558.660 232.524.307
Cost
of merchandise
1. Purchases during
the period
(+)
2.230.383 -
Cost of goods
sold
2.230.383 -
Cost of services rendered 14.811.213 27.287.140
Depreciation and amortization 89.017 60.117
Cost of sales, net 103.689.273 259.871.564

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

NOTE 25 – GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES AND RESEARCH AND DEVELOPMENT EXPENSES

For the periods ended at 31 March 2025 and 2024, general administrative expenses, marketing expenses and research and development expenses are mentioned below:

01.01. -
31.03.2025
01.01. -
31.03.2024
General administrative expenses 55.069.399 54.236.731
Marketing expenses 16.322.372 14.191.460
Research and development expenses 4.245.818 4.706.074
75.637.589 73.134.265

NOTE 26 – EXPENSES BY NATURE

26.1 General Administrative Expenses

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

01.01. - 01.01. -
31.03.2025 31.03.2024
Personnel expenses 33.680.784 32.038.264
Consulting
and licensing
expenses
8.711.691 7.463.719
Office overheads 4.035.568 3.247.378
Depreciation and amortisation 1.477.777 4.020.911
Representation and hospitality expenses 1.477.691 2.108.477
Travel and accommodation expenses 579.113 460.183
Stationery and printing expenses 278.074 277.542
Other expenses 4.828.701 4.620.257
55.069.399 54.236.731

26.2 Marketing expenses

For the periods ended at 31 March 2025 and 2024, the details of marketing expenses are as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Personnel expenses 9.352.513 9.092.059
Education, seminar, and fair expenses 2.923.546 1.073.212
Advertising and announcement expenses 1.773.169 719.493
Travel and accommodation expenses 976.891 1.854.877
Depreciation and amortization 118.568 460.727
Other expenses 1.177.685 991.092
16.322.372 14.191.460

26.3 Research and development expenses

For the periods ended at 31 March 2025 and 2024, the details of research and development expenses are as follows:

01.01. -
31.03.2025
01.01. -
31.03.2024
Personnel expenses 2.351.730 3.029.024
Depreciation and amortization 1.894.088 1.677.050
4.245.818 4.706.074

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

NOTE 27 - OTHER INCOME / (EXPENSES) FROM OPERATING ACTIVITIES

27.1 Other income from operating activities

The details of other income from operating activities for the periods ended at 31 March 2025 and 2024 are as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Foreign exchange gains from commercial activities 42.034.223 68.273.419
Rediscount income 11.750.869 20.370.000
Reversal of unnecessary provisions 777.161 2.454.559
Other income 1.688.552 2.077.994
56.250.805 93.175.972

27.2 Other expenses from main activities

The details of other expenses from operating activities for the periods ended at 31 March 2025 and 2024 are as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Foreign exchange losses from trading activities 44.082.495 28.877.279
Rediscount expense 9.481.707 12.861.880
Provision for doubtful receivables - 10.235
Other expenses 1.922.473 1.599.525
55.486.675 43.348.919

NOTE 28 - INCOME / (EXPENSES) FROM INVESTMENT ACTIVITIES

28.1 Income from investment activities

The details of income from investment activities for the periods ended at 31 March 2025 and 2024 are as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Gains from the sale and valuation of financial investments 13.167.582 6.899.849
Profit on sale of fixed assets 6.174 5.175
Bargain purchase gain - 46.630.311
13.173.756 53.535.335

28.2 Expense from investment activities

Expenses from investment activities for the periods ended at 31 March 2025 and 2024 are as follows:

01.01. -
31.03.2025
01.01. -
31.03.2024
Loss on sales of financial investments - 487.675
Loss on sale of fixed assets - 516.374
- 1.004.049

NOTE 29 – FINANCIAL INCOME / (EXPENSES)

29.1 Financial incomes

The details of financial income for the periods ended on 31 March 2025 and 2024 are as following:

01.01. -
31.03.2025
01.01. -
31.03.2024
Foreign exchange gains 101.232.208 44.193.001
Interest income 2.693.602 8.282.172
103.925.810 52.475.173

29.2 Financial expenses

The details of financial expenses for the periods ended on 31 March 2025 and 2024 are as following:

01.01. -
31.03.2025
01.01. -
31.03.2024
72.216.969 65.729.167
5.687.481 1.211.259
2.606.647 2.478.462
80.511.097 69.418.888

NOTE 30 – MONETARY GAIN / (LOSS), NET

The details of the net amount of monetary gain / (loss) for the period ended at 31 March 2025 and 2024, before the consolidation and elimination transactions of the Parent Company, subsidiaries and joint operations, are as follows;

01.01. - 01.01. -
31.03.2025 31.03.2024
Statement of Financial Position Items
Inventories 48.706.180 49.470.898
Prepaid Expenses 13.787.489 17.375.606
Subsidiaries 1.412.991 2.023.271
Right of Use Assets 2.743.086 2.207.856
Tangible Assets 16.838.482 7.386.905
Intangible Assets 8.505.007 11.008.943
Deferred Tax Assets / (Liabilities) 11.194.348 10.363.064
Deferred Income (7.836.278) (12.264.242)
Paid in Capital (26.308.768) (37.826.843)
Share Premiums / Discounts (51.889.067) (74.300.252)
Other Comprehensive Income or Expenses
Will Not Be Reclassified to Profit or Loss
-
Defined Benefit Plan Remeasurement Gains (Losses)
(89.692) (36.190)
Restricted Reserves (2.848.741) (4.079.129)
Retained Earnings / (Losses) from Previous Years (113.571.033) (216.570.064)
Statement of Profit or Loss Items
Revenue (3.981.943) (11.959.531)
Cost of Sales 2.806.756 9.369.255
General Administrative Expenses 1.239.892 1.729.605
Marketing Expenses 374.364 474.956
Research and Development Expenses 54.649 256.539
Other Income / (Expenses) from Operatig Activities,net 74.701 (1.648.686)
Income / (Expenses) from Investment Activities,net (77.734) (1.327.124)
Finance Income / (Cost), net (239.433) 610.788
Tax (Expense) / Income for the Period - 93.908
Monetary Gain / (Loss), net (99.104.744) (247.640.467)

NOTE 31 – TAX ASSETS AND LIABILITIES

Deferred Tax

The Group's deferred tax assets and liabilities are derived from temporary differences between the financial statements prepared under TAS / TFRS and the Group's statutory books. These differences arise due to income and expenses being recognized in different reporting periods under TAS / TFRS and for tax purposes.

According to the regulations existing as of the report date, corporate tax rate will be applied as 25% in 2025 (2024: 25%). As at 31 March 2025 and 31 December 2024, deferred tax assets and liabilities are calculated using tax rates (and tax laws) that are expected to apply in the periods in which assets are realised or liabilities are settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the assets are realised or the liabilities are settled, in accordance with the "TAS 12 Income Taxes" standard under the measurement heading, 25% rate is taken into consideration (for the Parent Company: 23%).

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

As of the consolidated statement of financial position dates, the breakdown of accumulated temporary differences and deferred tax assets and liabilities using the applicable tax rates is as follows:

31 March 2025 31 December 2024
Deferred tax Deferred tax
Total temporary assets / Total temporary assets /
differences (liabilities) differences (liabilities)
Deferred tax Assets:
Deductible Tax Losses 55.284.727 12.715.487 32.764.865 7.535.918
Investment Allowance 121.661.496 27.982.144 133.904.008 30.797.922
Prepaid Expenses Adjustment 7.300.204 1.679.160 3.781.877 872.936
Derivative Instruments 9.945.189 2.287.393 6.748.313 1.552.112
Severance pay provision 23.649.228 5.439.322 22.283.077 5.125.108
Receivables discount 4.880.831 1.122.619 6.704.374 1.542.006
Provision for doubtful receivables 2.921.793 672.012 4.071.171 936.369
Accrued loan interest 14.127.288 3.249.276 10.187.839 2.343.203
Unused vacation provision 26.578.343 6.113.019 21.787.279 5.011.074
Provision for inventory impairment
Indexation and depreciation differences in tangible
41.748.387 9.602.129 41.748.387 9.602.129
and intangible fixed assets 303.786.312 70.152.567 277.780.315 64.246.625
Expense accrual 5.557.930 1.278.324 17.372.851 3.995.756
Provision for warranty service expenses 5.896.054 1.356.092 5.947.539 1.367.934
Deferred revenue classification 958.962 220.561 - -
Currency difference expenses 1.901.668 437.396 494.184 113.766
Deferred Tax Assets 144.307.501 135.042.858
Deferred tax liabilities:
Adjustments related to inventories
Indexation and depreciation differences in tangible
(57.385.873) (13.198.751) (41.740.045) (9.600.211)
and intangible fixed assets (460.553) (98.834) (350.584) (73.542)
Rediscount on payables (5.386.715) (1.238.972) (4.821.690) (1.108.991)
Foreign exchange income (47.280) (10.874) (1.026.245) (236.036)
Deferred revenue classification (2.576.925) (592.693) (6.877.896) (1.583.652)
Prepaid expenses adjustment (3.707.040) (852.623) (11.218) (846)
Deferred Tax Liabilities (15.992.747) (12.603.278)
Deferred tax assets / (liabilities), net 128.314.754 122.439.580

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

For the periods ended at 31 March 2025 and 2024 tax income / (expense) on income statement are as follows:

01.01. -
31.03.2025
01.01. -
31.03.2024
Corporate Tax Income / (Expense) - (2.726.886)
Deferred Tax Income / (Expense) 5.466.251 16.767.111
Tax income / (expense), net 5.466.251 14.040.225

For the periods ended at 31 March 2025 and 2024, the movement schedule of corporate tax expense are as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Unaudited profit / (loss) before tax 5.554.652 110.978.528
Total additions / deductions to the tax base (5.554.652) (99.530.799)
Unaudited taxable profit / (loss) - 11.447.729
Effective tax rate 23% 23%
Calculated tax - 2.632.978
Monetary gain / (loss), net - 93.908
Corporate tax provision in the profit or loss statement - 2.726.886

The movement schedule for deferred tax income / (expense) during the periods ended at 31 March, 2025 and 2024, is as follow:

01.01. - 01.01. -
31.03.2025 31.03.2024
Opening balance at the beginning of the period (122.439.580) (79.173.331)
Deferred tax recognized in equity (408.923) (259.283)
Net deferred tax assets / (liabilities), net 128.314.754 96.199.725
Deferred tax income / (expense), net 5.466.251 16.767.111

As of 31 March 2025 and 31 December 2024, the current period income tax liability is as follows:

31.03.2025 31.12.2024
Current period income tax liability 5.408.432 5.988.012
5.408.432 5.988.012

Corporation Tax

The Group is subject to taxation in accordance with the tax procedures and the legislation effective in Türkiye. Necessary provisions have been made in the accompanying consolidated financial statements for the estimated tax liabilities of the Group regarding the current period operating results.

The corporate tax rate to be accrued on taxable corporate income, the addition of non-deductible expenses from the tax base in the determination of business income, and the deduction of tax-exempt gains, nontaxable incomes and other deductions (past year losses, if any, and investment allowances used if preferred). calculated on. In 2025, the effective tax rate is 25% (2024: 23%).

In Türkiye, provisional tax is calculated and accrued quarterly. The provisional tax rate that must be changed on corporate earnings during the taxation of 2025 corporate earnings as of the provisional tax periods is 25% (2024: 25%). With the regulation in the Corporate Tax Law, corporations whose shares are offered to the public at a rate of at least 20% for the first time in the Borsa Istanbul Equity Market will be subject to a corporate tax of 2 points on their corporate earnings for 5 accounting periods, starting from the accounting period in which their shares are offered to the public for the first time. discount is applied.

There is no absolute and certain confirmation procedure related to tax evaluation in Türkiye. Companies prepare their tax return between 1-25 April coming after the related year's balancing period (for the companies having special account period, between 1st and 25th of fourth month following the closing of period). These tax returns and related accounting records may be inspected and changed by tax department in five years.

Income Tax Withholding

In addition to Corporation tax, it is required to calculate withholding tax from the dividends distributed by full pledge taxpayer enterprise and include in its income tax base and except dividends distributed by foreign companies to its subsidiary in Türkiye. Dividend withholding tax rate was reduced from 15% to 10%. Dividends that are not distributed but added to the capital are not subject to income tax withholding.

NOTE 32 – EARNINGS / (LOSS) PER SHARE

For the periods ended at 31 March 2025 and 2024 profit / (loss) per share whose nominal value is TRY 1 as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Net profit / (loss) for the period (59.497.729) (136.974.766)
Net profit / (loss) attributable to non-controlling interests - -
Net profit / (loss) attributable to the parent company (59.497.729) (136.974.766)
Total weighted average number of shares (*) 58.000.000 58.000.000
Basic and diluted earnings / (loss) per share (TRY) (1,03) (2,36)

(*) The number of shares has been calculated using the weighted average method, taking into account capital increase dates.

NOTE 33 – EXPOSURE TO FINANCIAL RISKS DUE TO FINANCIAL INSTRUMENT

Financial Instruments

Credit Risk

The risk that a financial loss will occur to the Group due to the failure of one of the parties to the financial instrument to fulfill its contractual obligations, refer to credit risk. The Group is subject to credit risk arising from trade receivables related to credit sales and deposits at banks. These risks are managed by limiting the aggregate risk from any individual counterparty and obtaining sufficient collateral where necessary and making only cash-based sales to customer considered as having a higher risk. Collect ability of trade receivables are evaluated by management depending on their past experiences and current economic condition and presented in the financial statements net of adequate doubtful provision.

As of 31 March 2025, the credit risk of Group in terms of financial instruments is as follows:

Trade Receivables Other Receivables Bank
Related
Party
Other
Party
Related
Party
Other
Party
Deposits Other
Maximum credit risk exposure as of the reporting date
(A+B+C+D+E) (*)
- 255.224.796 - 14.418.832 56.551.148 585.858.332
Portion of the maximum risk secured with collateral, etc. - 26.611.240 - - - -
A. Net book value of financial assets that are neither past due nor
impaired
- 255.224.796 - 14.418.832 56.551.148 585.858.332
B.Book value of renegotiated financial assets, which would
otherwise be considered past due or impaired
C. Net book value of financial assets that are past due but not
impaired
-
-
-
-
-
-
-
-
-
-
-
-
- Portion secured with collateral, etc. - - - - - -
D. Net book value of impaired assets - - - - - -
- Past due (gross book value) - 2.921.793 - - - -
- Impairment (-) - (2.921.793) - - - -
Portion of the net value secured with collateral, etc - - - - - -
-Not past due (gross book value) - - - - - -
Impairment (-) - - - - - -
- Portion of the net value secured with collateral, etc - - - - - -
E. Off-balance sheet items with credit risk exposure - - - - - -

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

As of 31 December 2024, the credit risk of Group in terms of financial instruments is as follows:

Trade Receivables Other Receivables Bank
Related
Party
Other
Party
Related
Party
Other
Party
Deposits Other
Maximum credit risk exposure as of the reporting date
(A+B+C+D+E) (*)
2.189.779 391.701.056 - 9.494.297 119.989.417 590.473.663
Portion of the maximum risk secured with collateral, etc. - - - - - -
A. Net book value of financial assets that are neither past due nor
impaired
2.189.779 391.701.056 - 9.494.297 119.989.417 590.473.663
B.Book value of renegotiated financial assets, which would
otherwise be considered past due or impaired
C. Net book value of financial assets that are past due but not
impaired
-
-
-
-
-
-
-
-
-
-
-
-
- Portion secured with collateral, etc. - - - - - -
D. Net book value of impaired assets - - - - - -
- Past due (gross book value) - 4.071.171 - - - -
- Impairment (-) - (4.071.171) - - - -
Portion of the net value secured with collateral, etc - - - - - -
-Not past due (gross book value) - - - - - -
Impairment (-) - - - - - -
- Portion of the net value secured with collateral, etc - - - - - -
E. Off-balance sheet items with credit risk exposure - - - - - -

(*) This line represents the total of the rows A, B, C, D and E. Factors mitigating credit risk such as guarantees received have not been taken into consideration..

Interest Rate Risk

Fluctuations may occur due to changes in market prices. These fluctuations may stem from price changes in securities, factors peculiar to security issuing firms or factors that affect all the market.

Although interest rates of financial borrowings with interest may change, financial assets with interest have fixed interest rate and cash flows in future do not change with the extent of these assets. Risk exposure to changing market interest rate of Group, is mostly based on the borrowing liabilities with variable interest rate of Group. The policy of Group is managing interest cost by using borrowings with fixed and variable interest. As of 31 March 2025, and 31 December 2024, the Group does not have any floating rate financial liabilities.

Liquidity Risk

Liquidity risk is the possibility of the Group meeting its net funding obligations. The occurrence of events that result in fund outflow, such as disruptions in the markets or lowering of the credit score, still provide the reason for the deterioration of liquidity risk. The Group management manages liquidity risk by distributing the funds and by keeping sufficient cash and cash equivalents resources to cover the current and possible liabilities.

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

As of 31 March 2025, liquidity risk table of the Group is as follows:

Cash outflow
Contractual maturities in according to
agreement
Less than Between 3-
12 months
Between 1-
5 years
accordance with the agreement Book Value (=I+II+III) 3 months (I) (II) (III)
Non-derivative financial liabilities
Financial Payables 377.955.022 400.841.667 205.652.867 195.188.800 -
377.955.022 400.841.667 205.652.867 195.188.800 -
Cash outflow
according to Between 3- Between
agreement Less than 12 months 1- 5 years
Expected maturities Book Value (=I+II+III) 3 months (I) (II) (III)
Non-Derivative Financial Liabilities
Trade payables 108.964.471 114.351.186 114.351.186 - -
Other payables 84.799.996 84.799.996 84.287.334 512.662 -
193.764.467 199.151.182 198.638.520 512.662 -
Cash outflow
according to Between 3- Between
agreement Less than 12 months 1- 5 years
Book Value (=I+II+III) 3 months (I) (II) (III)
Derivative Instruments
Derivative cash inflows - 378.545.873 378.545.873 - -
Derivative cash outflows 9.945.189 (368.600.684) (368.600.684) - -
9.945.189 9.945.189 9.945.189 - -

As of 31 December 2024, liquidity risk table of the Group is as follows:

Contractual maturities in accordance
with the agreement
Book Value Cash outflow
according to
agreement
(=I+II+III)
Less than
3 months
(I)
Between 3-
12 months
(II)
Between 1-
5 years
(III)
Non-derivative financial liabilities
Financial Payables 370.182.547 386.287.353 4.290.794 381.996.560 -
370.182.547 386.287.353 4.290.794 381.996.560 -

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

Cash outflow
according to
Less than Between
3-12
Between 1-
Expected maturities Book Value agreement
(=I+II+III)
3 months
(I)
months
(II)
5 years
(III)
Non-Derivative Financial Liabilities
Trade payables 100.655.779 87.981.081 87.981.081 - -
Other payables 59.078.838 59.078.838 58.514.589 564.249 -
159.734.617 147.059.919 146.495.670 564.249 -
Book Value Cash outflow
according to
agreement
(=I+II+III)
Less than
3 months (I)
Between 3-
12 months
(II)
Between
1- 5 years
(III)
Derivative Instruments
Derivative cash inflows - 428.118.768 428.118.768 - -
Derivative cash outflows 6.748.313 (421.370.455) (421.370.455) - -
6.748.313 6.748.313 6.748.313 - -

Currency risk

The effects occurring from exchange rate fluctuation, in case of having foreign currency assets, liabilities, off-balance sheet liabilities, are foreign currency risk. Transactions in foreign currencies during the year have been translated at the exchange rate prevailing at dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at the balance sheet dates. Foreign exchange gains or losses arising from the settlement of such transactions and from the translation of monetary assets and liabilities are recognized in the statement of profit/loss.

As of 31 March 2025, amounts of assets and liabilities of the Group in foreign currency are as follows:

TRY
equivalent USD EURO CHF GBP XAU
functional
currency
1. Trade Receivables 206.370.060 5.115.837 323.509 - - -
2a. Monetary Financial Assets (including cash, banks) 706.769.528 16.134.791 2.015.233 360.000 305 5
2b. Non-monetary financial assets - - - - - -
3. Other - - - - - -
4. Current Assets (1+2+3) 913.139.588 21.250.628 2.338.742 360.000 305 5
5. Trade Receivables - - - - - -
6a. Monetary Financial Assets 24.692.093 - 606.657 - - -
6b. Non-monetary financial assets - - - - - -
7. Other - - - - - -
8. Non-Current Assets (5+6+7) 24.692.093 - 606.657 - - -
9. Total Assets (4+8) 937.831.681 21.250.628 2.945.399 360.000 305 5
10. Trade Payables 81.545.406 1.649.856 464.051 270 3.910 -
11. Financial Liabilities 344.131.778 9.095.906 - - - -
12a. Other monetary liabilities 383.293.696 10.131.013 - - - -
12b. Other non-monetary liabilities - - - - - -
13. Current Liabilities (10+11+12) 808.970.880 20.876.775 464.051 270 3.910 -
14. Trade Payables - - - - - -
15. Financial Liabilities - - - - - -
16a. Other monetary liabilities - - - - - -
16b. Other non-monetary liabilities - - - - - -
17. Non-Current Liabilities (14+15+16) - - - - - -
18. Total Liabilities 808.970.880 20.876.775 464.051 270 3.910 -
19. Net asset / liability position of off- balance sheet
derivative instruments (19a-19b) 377.864.497 10.005.521 - - - -
19a. Total Hedged Asset Amount 377.864.497 10.005.521 - - - -
19b. Total Hedged Liabilities Amount - - - - -
20. Net Foreign Currency Asset / (Liability) Position (9-
18+19)
21. Net foreign currency asset / liability position of
506.725.298 10.379.374 2.481.348 359.730 (3.605) 5
monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a-14-
15-16a) 128.860.801 373.853 2.481.348 359.730 (3.605) 5
22. Total Fair Value of Financial Instruments Used for
Foreign Currency Hedging - - - - - -
23. Export 14.496.233 1.856 367.014 - - -
24. Import 70.104.613 1.851.071 43.238 5.675 8.398 -

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

As of 31 December 2024, amounts of assets and liabilities of the Group in foreign currency are as follows:

TL karşılığı
fonksiyonel
USD EURO CHF GBP XAU
para birimi
1. Trade Receivables 357.891.779 7.251.819 1.887.083 - - -
2a. Monetary Financial Assets (including cash, banks) 642.817.927 16.055.923 477.667 675 - 5
2b. Non-monetary financial assets - - - - - -
3. Other - - - - - -
4. Current Assets (1+2+3) 1.000.709.708 23.307.742 2.364.750 675 - 5
5. Trade Receivables - - - - - -
6a. Monetary Financial Assets - - - - - -
6b. Non-monetary financial assets - - - - - -
7. Other - - - - - -
8. Non-Current Assets (5+6+7) - - - - - -
9. Total Assets (4+8) 1.000.709.707 23.307.742 2.364.750 675 - 5
10. Trade Payables 84.364.339 1.971.199 181.565 - 8.258 -
11. Financial Liabilities 341.029.922 8.766.754 - - - -
12a. Other monetary liabilities 469.411.973 12.065.122 - - - -
12b. Other non-monetary liabilities - - - - - -
13. Current Liabilities (10+11+12) 894.806.234 22.803.075 181.565 - 8.258 -
14. Trade Payables - - - - - -
15. Financial Liabilities - - - - - -
16a. Other monetary liabilities - - - - - -
16b. Other non-monetary liabilities - - - - - -
17. Non-Current Liabilities (14+15+16) - - - - - -
18. Total Liabilities 894.806.234 22.803.075 181.565 - 8.258 -
19. Net asset / liability position of off- balance sheet
derivative instruments (19a-19b) 427.349.600 11.005.521 - - - -
19a. Total Hedged Asset Amount 427.349.600 11.005.521 - - - -
19b. Total Hedged Liabilities Amount - - - - - -
20. Net Foreign Currency Asset / (Liability) Position (9-
18+19)
533.253.073 11.510.188 2.183.185 675 (8.258) 5
21. Net foreign currency asset / liability position of
monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a-14-
15-16a) 105.903.473 504.667 2.183.185 675 (8.258) 5
22. Total Fair Value of Financial Instruments Used for
Foreign Currency Hedging - - - - - -
23. Export 375.751.092 8.512.713 1.825.815 - - -
24. Import 747.934.292 19.028.304 916.994 19.681 24.684 -

Currency Risk Sensitivity Analysis

As at 31 March 2025, according to the foreign currency position in the statement of financial position as at 31 March 2025, if the Turkish Lira had appreciated/depreciated by 10% against foreign currencies with all other variables held constant, net loss would have been higher/lower by TRY 50.672.530 as a result of foreign exchange gains/losses on assets and liabilities denominated in foreign currencies for the year then ended.

Profit / (Loss) Shareholders' Equity
Appreciation of Depreciation of Appreciation of Depreciation of
foreign currency foreign currency foreign currency foreign currency
In case of appreciation / depreciation of USD against TRY by 10%
1-USD net asset / liability 1.269.708 (1.269.708) 1.269.708 (1.269.708)
2- Amount hedged for USD risk (-) 37.786.450 (37.786.450) 37.786.450 (37.786.450)
3-USD net effect (1+2) 39.056.158 (39.056.158) 39.056.158 (39.056.158)
In case of appreciation / depreciation of EUR against TRY by 10%
4- EUR net asset / liability 10.096.152 (10.096.152) 10.096.152 (10.096.152)
5- Amount hedged for EUR risk (-) - - - -
6- EUR net effect (4+5) 10.096.152 (10.096.152) 10.096.152 (10.096.152)
In case of appreciation / depreciation of GBP against TRY by 10%
7-GBP net asset / liability (17.691) 17.691 (17.691) 17.691
8- Amount hedged for GBP risk (-) - - - -
9- GBP net effect (7+8) (17.691) 17.691 (17.691) 17.691
In case of appreciation / depreciation of CHF against TRY by 10%
10-CHF net asset / liability 1.536.005 (1.536.005) 1.536.005 (1.536.005)
11- Amount hedged for CHF risk (-) - - - -
12- CHF net effect (10+11) 1.536.005 (1.536.005) 1.536.005 (1.536.005)
In case of appreciation / depreciation of XAU against TRY by 10%
13- XAU net asset / liability 1.906 (1.906) 1.906 (1.906)
14- Amount hedged for XAU risk (-) - - - -
15- XAU net effect (13+14) 1.906 (1.906) 1.906 (1.906)
TOTAL (3+6+9+12+15) 50.672.530 (50.672.530) 50.672.530 (50.672.530)

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

As at 31 December 2024, according to the statement of financial position foreign currency position, if the Turkish Lira had appreciated/depreciated by 10% against foreign currencies with all other variables held constant, net loss would have been TL 53.325.307 higher/lower as a result of foreign exchange gains/losses on assets and liabilities denominated in foreign currencies for the year then ended

Profit / (Loss) Shareholders' equity
Appreciation of Depreciation of Appreciation of Depreciation of
foreign currency foreign currency foreign currency foreign currency
In case of appreciation / depreciation of USD against TRY by 10%
1-USD net asset / liability 1.800.275 (1.800.275) 1.800.275 (1.800.275)
2- Amount hedged for USD risk (-) 42.734.960 (42.734.960) 42.734.960 (42.734.960)
3-USD net effect (1+2) 44.535.235 (44.535.235) 44.535.235 (44.535.235)
In case of appreciation / depreciation of EUR against TRY by 10%
4- EUR net asset / liability 8.825.927 (8.825.927) 8.825.927 (8.825.927)
5- Amount hedged for EUR risk (-) - - - -
6- EUR net effect (4+5) 8.825.927 (8.825.927) 8.825.927 (8.825.927)
In case of appreciation / depreciation of GBP against TRY by 10%
7-GBP net asset / liability (40.390) 40.390 (40.390) 40.390
8- Amount hedged for GBP risk (-) - - - -
9- GBP net effect (7+8) (40.390) 40.390 (40.390) 40.390
In case of appreciation / depreciation of CHF against TRY by 10%
10-CHF net asset / liability 2.894 (2.894) 2.894 (2.894)
11- Amount hedged for CHF risk (-) - - - -
12- CHF net effect (10+11) 2.894 (2.894) 2.894 (2.894)
In case of appreciation / depreciation of XAU against TRY by 10%
13- XAU net asset / liability 1.641 (1.641) 1.641 (1.641)
14- Amount hedged for XAU risk (-) - - - -
15- XAU net effect (13+14) 1.641 (1.641) 1.641 (1.641)
TOTAL (3+6+9+12+15) 53.325.307 (53.325.307) 53.325.307 (53.325.307)

Concentration risk related to sales

For the accounting periods ended at 31 March 2025 and 2024, the concentration risk of the Group's sales consists of sales, which is one of its main activities.

Considering the Group's sales and customers for the accounting periods ended at 31 March 2025 and 2024, it is seen that there is a concentration risk due to the high share of some customers in sales. According to TFRS 8 Operating Segments standard; If revenue from transactions with a single external customer is 10 percent or more of the business's revenue, the entity shall disclose that, the total amount of revenue from each such customer, and which segment or segments are reporting revenues. The entity need not disclose the identity of its major customers or the amount of revenue each segment reports from that customer.

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

For the accounting periods ending on 31 March 2025 and 2024, customers and their rates that constitute 10% or more of the Group's revenue are as follows:

01.01. - 01.01. -
31.03.2025 31.03.2024
Company A 16% 27%
Company B 4% 17%
Company C 4% 16%
Company D 0% 11%
Company E 19% 10%
Company F 39% 8%

Capital risk management

In capital management, the Group's aims at enhancing profitability while keeping a reasonable leverage, on the other hand rendering sustainability in its operations.

The Group follows capital by using debt to equity ratio. This rate is found by dividing net debt to total equity. Net debt is calculated by deducting cash and cash equivalents from total payable amount (as shown in balance sheet total liabilities). Total capital, as shown in balance sheet, is calculated by adding up equity and net debt.

As of 31 March 2025 and 2024, net debt / total equity ratio is as follow:

31.03.2025 31.12.2024
Total debts 1.196.717.688 1.138.731.180
Less: Liquid assets 642.485.137 710.512.353
Net debt 554.232.551 428.218.827
Total shareholders' equity 1.968.913.632 2.029.780.364
Total capital 2.523.146.183 2.457.999.191
Net Debt/ (Receivable), net / Total Capital ratio 22% 17%

SDT UZAY VE SAVUNMA TEKNOLOJİLERİ ANONİM ŞİRKETİ SUBSIDIARIES AND JOINT OPERATIONS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2025 (Amounts expressed in Turkish Lira ("TRY") in terms of the purchasing power of the TRY at 31 March 2025, unless otherwise indicated.)

NOTE 34 – FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND DISCLOSURES UNDER FINANCIAL RISK HEDGING ACCOUNTING)

Fair value represents the price at which a financial instrument can be exchanged in a current transaction between willing parties, excluding situations such as forced sales or liquidations. If available, the quoted market price is the best indicator of a financial instrument's fair value. The Group has estimated the fair values of financial instruments to the extent that relevant and reliable information can be obtained from financial markets in Türkiye. The estimates presented here may not reflect the amounts the Group could obtain in a market transaction. The following methods and assumptions were used in estimating the fair values of the Group's financial instruments.

The following methods and assumptions were used to estimate the fair values of financial instruments for which practical estimation of fair value is possible:

Financial Assets

Monetary assets for which fair value approximates carrying value:

-Balances denominated in foreign currencies are converted at period exchange rates.

-The fair value of certain financial assets carried at cost, including cash and cash equivalents are considered to approximate their respective carrying amounts in the financial statements.

-The carrying value of trade receivables, net of allowances for possible non-recovery of uncollectible are considered to approximate their fair values.

Financial Liabilities

Monetary liabilities for which fair value approximates carrying value:

-The fair value of short-term bank loans and other monetary liabilities are considered to approximate their respective due to their short-term nature.

-The fair values of long-term bank borrowings, which are denominated in foreign currencies and converted at period exchange rates, are considered to approximate their carrying values.

-The carrying amount of accounts payable and accrued expenses reported in the financial statements for estimated third party payer settlements approximates its fair values..

Fair Value Measurement Hierarchy Table

The Group classifies fair value measurements for financial instruments presented in the financial statements using a three-level hierarchy based on the source of inputs for each class of financial instruments, as follows:

Level 1: Financial assets and liabilities are valued using quoted prices in active markets for identical assets and liabilities.

Level 2: Financial assets and liabilities are valued using inputs other than the quoted price for identical assets or liabilities in active markets, as indicated in first level. These inputs can include direct or indirect marketobservable data used to determine the fair value of the relevant asset or liability.

Level 3: Financial assets and liabilities are valued using inputs that are not based on observable market data..

During the accounting periods ending on 31 March 2025, and 2024, the Group did not make any transfers between first level and second level, or to and from third level.

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

As of 31 Match 2025, classifications and fair values of financial assets as are follows:

Financial asset / Financial assets as at
liabilities at fair value through
amortized cost profit or loss Book Value Note
Financial assets
Cash and cash equivalents 642.485.137 - 642.485.137 5
Trade receivables 255.224.796 - 255.224.796 8
Financial Investments - 9.498.845 9.498.845 6
Financial liabilities
Financial payables 377.955.022 - 377.955.022 7
Trade payables 108.964.471 - 108.964.471 8
Derivative Instruments - 9.945.189 9.945.189 22

As of 31 December 2024, classifications and fair values of financial assets as are follows:

Financial asset /
liabilities at
amortized cost
Financial assets as at
fair value through
profit or loss
Book Value Note
Financial assets
Cash and cash equivalents 710.512.353 - 710.512.353 5
Trade receivables 393.890.835 - 393.890.835 8
Financial Investments - 10.113.295 10.113.295 6
Financial liabilities
Financial payables 370.182.547 - 370.182.547 7
Trade payables 100.655.779 - 100.655.779 8

NOTE 35 – SUBSEQUENT EVENTS AFTER THE FINANCIAL POSITION STATEMENT DATE

The Investment Incentive Certificate obtained by the Parent Company on 04 July 2022 within the scope of HAB Facility investments has been revised and the fixed investment incentive amount has been increased from TRY 96.459.044 to TRY 249.757.677.

Talk to a Data Expert

Have a question? We'll get back to you promptly.