BRİSA BRİDGESTONE SABANCI LASTİK SANAYİ VE TİCARET A.Ş.

Earnings Release • Apr 30, 2025

Brisa 2025 First Quarter Financial Results Earnings Release

April 30, 2025

Reinforced its strength with innovative products designed for the needs of the market

In the first quarter of 2025, Brisa maintained its strong market position and financial resilience through operational efficiency, premium product focus and strategic mobility investments.

In the first quarter of the year, the Company delivered a strong cash generation performance while attaining a gross margin of 19.9%.

Brisa, the leading company in the Turkish tire industry investing in end-to-end mobility, announced its first quarter financial results for 2025. In this period, the Company strengthened its strategic focus with its investments in mobility solutions and innovative products. Brisa increased its sales in the premium and high rim diameter product group developed with innovative technologies. The decline in demand in the domestic market, especially in the commercial segment, flat prices and the limited appreciation of foreign currency in exports caused sales revenue to grow at a rate below inflation compared to the same period of the previous year. The Company's first quarter sales revenue amounted to TL 8.2 billion. Despite the below-inflation growth in sales revenue, a gross profit margin of 19.9% was achieved in the first quarter of the year thanks to the efficiency gains in production and controlled outlook in costs. The Company's operating profit was realized as 447 million TL in this period.

Dividend Distribution and Strong Cash Generation

In this period, Brisa distributed fifty percent of its net distributable profit for the year 2024 as cash dividend to shareholders as an indicator of its commitment to create sustainable value for its stakeholders. Of the 2024 net distributable profit, TL 650 million was distributed to shareholders at a gross rate of 212.96% and TL 107 million to holders of usufruct certificates, amounting to a total of TL 757 million in cash dividends.

Strategic Investments in Innovative Products and Mobility Solutions

In the first quarter, Brisa reinforced its vision of positioning itself not only as a tire manufacturer, but also as a mobility solutions company offering holistic services to vehicle owners throughout their entire journey.

Commenting on the results, Brisa CEO Haluk Kürkçü said: "The first quarter of 2025 was a period of continued challenges in global and local markets. Despite the market contraction and pricing pressures, we managed to keep our gross profit margin at strong levels thanks to our operational efficiency and tight cost management. Most importantly, we maintained our financial resilience in this

period with our strong cash generation performance.

We continued to invest in our service networks such as Otopratik and to focus on innovative products such as Lassa Revola in line with our goal to go beyond tires and become a playmaker in mobility. We continue to expand our Otopratik fast-fit maintenance service chains with a strong franchise model and new segmentation steps. We strengthened the market position of our premium products, which include Enliten and Nextgen technology designed for electric and hybrid vehicles and compatible with the mobility of the future, and we increased their share in our sales. In international markets, we continue to grow with our Lassa brand via new collaborations in different regions. In the first quarter of the year, we displayed strong performance in Central, Western and Eastern European markets and increased our market share.

As Brisa, we aim to maintain our leading position and create value for our stakeholders in 2025 with our mobility-oriented strategy, ability to adapt to changing market conditions, financial discipline and innovative products."

Summary Financial Results:

Summary Income Statement (MTL)	Unaudited
	Jan.1- Mar.31, 2025	Jan.1- Mar.31, 2024	Change, %
Net Sales	8,160	10,315	-21%
Gross Profit	1,626	2,899	-44%
Operating Profit	447	1,036	-57%
EBITDA	858	2,069	-59%
Net Profit	-516	809	-164%
Profitability Ratios:
Gross Profit Margin	19.9%	28.1%	-8%
Operating Margin	5.5%	10.0%	-5%
EBITDA Margin	10.5%	20.1%	-10%
Net Profit Margin	-6.3%	7.8%	-14%

*EBITDA: Earnings before interest, tax, depreciation & amortization and interest, foreign exchange and derivative financial instruments gain/loss within other operating income and expenses

DISCLAIMER

This document on 2025 Q1 financial results contains unaudited financial information of Brisa Bridgestone Sabancı Lastik Sanayi ve Ticaret A.Ş. (the "Company"), which has been prepared according to Turkish Accounting/Financial Reporting Standards and has been subject to inflation accounting within the framework of the "Financial Reporting in Hyperinflationary Economies Standard" (IAS 29), in accordance with the Capital Markets Board of Türkiye's decision dated December 28, 2023 and numbered 81/1820.

The information and opinions contained in this document have been compiled by the Company from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document may contain forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Company management's current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Company's current judgment and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.

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