Türk Telekomünikasyon Anonim Şirketi and Its Subsidiaries

30 September 2024 Interim Condensed Consolidated Financial Statements As At and For The Nine Months Period Ended 30 September 2024

6 November 2024 This report contains 1 pages of "Independent Auditor's Report" and 47 pages of financial statements and explanatory notes.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT AS AT AND

FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

(All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 30 September 2024 unless otherwise stated.)

	Table of contents	Page
	Consolidated statement of financial position	1-3
	Consolidated statement of profit or loss	4
	Consolidated statement of other comprehensive income	5
	Consolidated statement of changes in equity	6
	Consolidated statement of cash flows
	Notes to the consolidated financial statements
Note 1	Reporting entity	9-12
Note 2	Basis of presentation of financial statements	13-20
Note 3	Seasonal changes in the operations	21
Note 4	Earnings per share	21
Note 5	Segment reporting	21 - 23
Note 6	Cash and cash equivalents	24
Note 7	Financial liabilities	25 - 28
Note 8	Due from and due to related parties	28 - 31
Note 9	Trade receivables from and payables to third parties	31 - 32
Note 10	Property, plant and equipment	32
Note 11	Provisions	33
Note 12	Commitments and contingencies	34 - 35
Note 13	Financial risk management objectives and policies	36 - 40
Note 14	Derivative financial instruments	40 - 45
Note 15	Financial investments	46
Note 16	Supplementary cash flow information	46
Note 17	Tax assets and liabilities	47
Note 18	Subsequent events	47

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

		Current period	Prior period
		Unaudited	Audited
	Notes	30 September 2024	31 December 2023
Assets
Total current assets		54.629.136	65.535.996
Cash and cash equivalents	6	8.094.315	18.464.791
Financial investments	15	9.701.004	10.635.529
Trade receivables
- Trade receivables due from related parties	8	712.035	856.602
- Trade receivables due from unrelated parties	9	19.260.123	17.269.668
Receivables from finance sector activities
- Receivables from finance sector activities due from unrelated parties		67.573	52.210
Other receivables
- Other receivables due from unrelated parties		224.207	354.680
Contract assets
- Contract assets from sale of goods and service contracts	9	7.021.629	4.839.070
Derivative financial assets
- Derivative financial assets held for trading	14	152.983	597.162
- Derivative financial assets held for hedging	14	1.485.307	5.620.234
Inventories		2.995.427	1.798.427
Prepayments
- Prepayments to unrelated parties		1.938.257	1.500.465
Current tax assets		151.844	238.075
Other current assets
- Other current assets due from unrelated parties		2.201.330	2.685.981
Subtotal		54.006.034	64.912.894
Non-current assets classified as held for sale		623.102	623.102
Total non-current assets		188.636.802	199.012.455
Financial investments
- Other financial investments	15	358.439	237.639
Trade receivables
- Trade receivables due from unrelated parties	9	59.390	330.854
Receivables from finance sector activities
- Receivables from finance sector activities due from unrelated parties		56.902	--
Other receivables
- Other receivables due from unrelated parties		78.281	106.688
Contract assets
- Contract assets from sale of goods and service contracts	9	25.881	29.649
Right of use assets		8.690.113	7.585.330
Investment property		137.556	138.889
Property, plant and equipment
- Land and premises		36.134.034	36.142.365
- Buildings		3.538.526	3.686.972
- Machinery and equipments		51.933.508	55.861.135
- Other property, plant and equipment		13.903.241	7.546.993
Intangible assets
- Goodwill		661.076	661.076
- Rights regarding concession agreements		24.167.173	30.634.943
- Concession agreements assets		3.987.009	3.721.329
- Licences		13.158.356	15.842.863
- Other intangible assets		24.112.989	24.338.242
Prepayments
- Prepayments to unrelated parties		213.865	195.457
Deferred tax asset	17	7.420.070	11.951.873
Other non-current assets
- Other non-current assets due from unrelated parties		393	158
Total assets		243.265.938	264.548.451

The accompanying notes form an integral part of these consolidated financial statements.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

		Current period	Prior period
		Unaudited	Audited
	Notes	30 September 2024	31 December 2023
Liabilities
Total current liabilities		51.580.556	76.862.976
Financial liabilities
Financial liabilities from related parties
- Bank loans	7,8	307.750	3.314.200
Financial liabilities from unrelated parties
- Bank loans	7	11.074.991	11.079.669
- Lease liabilities	7	84.895	184.473
- Issued debt instruments	7	−	3.613.793
Current portion of long term financial liabilities
Current portion of long term financial liabilities from unrelated parties
- Bank loans	7	5.326.413	7.412.475
- Lease liabilities	7	1.514.253	1.009.872
- Issued debt instruments	7	6.717.726	18.733.945
Trade payables
- Trade payables to related parties	8	288.068	283.622
- Trade payables to unrelated parties	9	12.929.423	18.871.393
Employee benefit obligations		1.854.677	2.075.344
Other payables
- Other payables to unrelated parties		4.928.337	4.392.874
Derivative financial liabilities
- Derivative financial liabilities held for trading	14	663.479	159.531
- Derivative financial liabilities held for hedging	14	232	30
Contract liabilities
- Contract liabilities from sale of goods and service contracts		2.786.599	2.869.838
Current tax liabilities	17	115.637	23.732
Current provisions
- Current provisions for employee benefits	11	1.824.401	1.722.585
- Other current provisions	11	281.192	457.508
Other current liabilities
- Other current liabilities to unrelated parties		882.483	658.092
Total non-current liabilities
		56.621.410	54.148.055
Long term financial liabilities
Long term financial liabilities from unrelated parties
- Bank loans	7	27.155.515	23.720.957
- Lease liabilities	7	2.497.269	1.362.168
- Issued debt instruments	7	16.977.624	19.072.503
Other payables
- Other payables to unrelated parties		93.125	130.320
Contract liabilities
- Contract liabilities from sale of goods and service contracts		3.164.830	4.027.828
Non-current provisions
- Non-current provisions for employee benefits	11	6.537.958	5.512.271
- Other non-current provisions		10.627	14.439
Deferred tax liabilities	17	184.462	307.569
Total liabilities		108.201.966	131.011.031

The accompanying notes form an integral part of these consolidated financial statements.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

		Current period	Prior period
		Unaudited	Audited
	Notes	30 September 20244 31 December 2023
Equity		135.063.972	133.537.420
Equity attributable to equity holders of the parent
Issued capital		3.500.000	3.500.000
Inflation adjustments on capital		68.833.639	68.833.639
Repurchased shares (-)		(19.826)	(19.826)
Other accumulated comprehensive income/ (loss) that will not be reclassified in profit
or loss
(Losses) / gains on revaluation and remeasurement
- Losses on remeasurements of defined benefit plans		(4.914.917)	(3.575.306)
- Increases on revaluation of property, plant and equipment		7.881.170	7.881.170
Losses due to change in fair value of financial liability attributable to change in credit
risk of liability		−	37.746
Other accumulated comprehensive income / (loss) that will be reclassified in profit or
loss
Gains / (losses) on hedges
- Gains on cash flow hedges		1.727.012	4.660.355
- Losses on hedges of net investment in foreign operations		(8.276.152)	(7.576.905)
Change in value of time value of options		(3.603.571)	(10.575.418)
Exchange differences on translation		3.311.117	4.379.098
Restricted reserves appropriated from profits		3.968.019	3.968.019
Retained earnings		58.736.198	39.714.472
Profit for the year		3.921.283	22.310.376
Total liabilities and equity		243.265.938	264.548.451

(Convenience translation of a report and financial statements originally issued in Turkish) TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

		Current Period	Current Period	Prior Period	Prior Period
		Unaudited	Unaudited	Unaudited	Unaudited
		1 January -	1 July -	1 January -	1 July -
	Notes	30 September 2024	30 September 2024	30 September 2023	30 September 2023

Revenue	5	109.225.706	40.353.146	100.446.265	34.827.788
Cost of sales (-)		(74.917.857)	(26.548.032)	(78.898.775)	(27.106.450)

Gross profit		34.307.849	13.805.114	21.547.490	7.721.338

General administrative expenses (-)		(13.053.491)	(4.527.933)	(12.879.342)	(4.406.669)
Marketing, sales and distribution expenses (-)		(10.883.002)	(3.348.897)	(10.333.426)	(3.082.731)
Research and development expenses (-)		(1.627.082)	(452.719)	(1.313.055)	(406.503)
Other operating income		2.358.780	776.122	2.285.653	53.116
Other operating expense (-)		(2.712.556)	(1.100.731)	(4.449.332)	(121.912)

Operating profit / (loss)		8.390.498	5.150.956	(5.142.012)	(243.361)
Impairment gains / (losses) and reversal of

impairment losses determined in accordance
with IFRS 9, net		(391.779)	(182.164)	(420.322)	(184.573)
Investment activity income		2.931.218	831.132	5.654.737	1.474.885
Investment activity expenses (-)		(24.295)	(6.860)	(11.822)	(6.520)
Profit before financing income		10.905.642	5.793.064	80.581	1.040.431

Finance income		2.965.281	216.642	15.186.432	905.031
Finance costs (-)		(23.591.274)	(6.622.097)	(35.322.566)	(6.126.471)
Monetary gain/loss		18.610.516	3.946.446	26.053.450	13.534.201

Profit from continuing operations, before tax	5	8.890.165	3.334.055	5.997.897	9.353.192
Tax (expense) / income, continuing
operations
- Current period tax expense		(388.860)	(151.192)	(363.068)	(64.591)
- Deferred tax expense		(4.580.022)	(2.038.300)	(5.076.262)	(6.246.715)

Profit for the year		3.921.283	1.144.563	558.567	3.041.886

Earnings per shares attributable to equity
holders of the parent from (in full Kuruş)	4	1,1205	0,3271	0,1596	0,8691
Earnings per diluted shares attributable to equity
holders of the parent from (in full Kuruş)	4	1,1205	0,3271	0,1596	0,8691

(Convenience translation of a report and financial statements originally issued in Turkish) TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

	Current Period	Current Period	Prior Period	Prior Period
	Unaudited	Unaudited	Unaudited	Unaudited
	1 January -	1 July -	1 January -	1 July -
	30 September 2024 Notes	30 September 2024	30 September 2023	30 September 2023

Profit for the period	3.921.283	1.144.563	558.567	3.041.886
Other comprehensive income:
Other comprehensive income that will not be
reclassified to profit or loss	(1.168.193)	(52.939)	1.662.871	2.934.192
Gain from revaluation of property, plant and
equipments, net	−	−	4.515.636	4.515.636
Losses on remeasurements of defined benefit plans	(1.786.148)	(70.585)	(2.002.263)	(371.003)
Change in fair value of financial liability attributable
to change in credit risk of liability	228.557	−	(93.067)	(135.176)
Tax effect of other comprehensive income items not
to be reclassified to profit or loss
-Taxes effect of revaluation of property, plant and
equipment	−	−	(1.281.268)	(1.281.268)
-Taxes relating to remeasurements of defined
benefit plans	446.537	17.646	500.566	174.314
-Taxes relating to change in fair value of
financial liability attributable to change in credit
risk of liability	(57.139)	−	23.267	31.689
Other comprehensive income that will be
reclassified to profit or loss	(1.226.538)	(325.548)	(317.406)	(664.675)
Exchange differences on translation	(1.067.981)	(116.483)	(246.720)	(1.140.378)
Gains / (losses) on cash flow hedges	(359.732)	(43.930)	(202.435)	(275.632)
Gains / (losses) on hedges of net investments in
foreign operations	(932.329)	(469.132)	(2.187.897)	(194.648)
Gains / (losses) on change in value of time value of
options	1.080.652	234.308	2.296.080	1.059.017
Tax effect on other comprehensive income items to
be reclassified to profit or loss
-Taxes relating to loss / (gains) cash flow hedges	89.933	10.983	50.610	65.248
-Taxes relating to gains on hedges of net
investments in foreign operations	233.082	117.283	546.975	148.324
-Taxes relating to change in value of time value
of options of other comprehensive gains	(270.163)	(58.577)	(574.019)	(326.606)
Other comprehensive income / (expense)	(2.394.731)	(378.487)	1.345.465	2.269.517

Total comprehensive income	1.526.552	766.076	1.904.032	5.311.403

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

					Other accumulated comprehensive income / (loss)		Other accumulated comprehensive income / (loss) that will be
					that will not be reclassified in profit or loss			reclassified in profit or loss				Retained earnings / (losses)
					Gains / (losses) on revaluation
					and remeasurement		Gains / (losses) on hedge
						Gains / (losses) due
						to change in fair	Gains /
				Increases on		value of financial	(losses) on
				revaluation of	Gains / (losses) on	liability	hedges of net	Gains /	Change in		Restricted
		Inflation		property,	remeasurements	attributable to	investment in	(losses) on	value of time	Exchange	reserves
	Issued	adjustments	Repurchased	plant and	of defined benefit	change in credit	foreign	cash flow	value of	differences on	appropriated	Retained	Profit for
	capital	on capital	shares (-)	equipment	plans	risk of liability	operations	hedges	options	translation	from profits	earnings	the year	Total equity

Balance at 1 January 2023		3.500.000 68.833.639	−	4.646.802	(1.973.498)	219.470	(5.378.080)		4.850.532 (12.938.339)	4.317.722		3.693.877 30.601.258	9.387.362	109.760.745

Transfers	−	−	−	−	−	−	−	−	−	−	−	9.387.362	(9.387.362)	−
Total comprehensive income	−	−	−	3.234.368	(1.501.697)	(69.800)	(1.640.922)	(151.825)	1.722.061	(246.720)	−	−	558.567	1.904.032
Profit for period	−	−	−	--	--	--	--	--	−	--	−	−	558.567	558.567
Other comprehensive income	−	−	−	3.234.368	(1.501.697)	(69.800)	(1.640.922)	(151.825)	1.722.061	(246.720)	−	−	−	1.345.465
Increase / (decrease) due to share repurchased
transactions	−	−	(19.826)	−	−	−	−	−	−	−	19.826	(19.826)	−	(19.826)
Balance at 30 September 2023		3.500.000 68.833.639	(19.826)	7.881.170	(3.475.195)	149.670	(7.019.002)		4.698.707 (11.216.278)	4.071.002		3.713.703 39.968.794	558.567	111.644.951

Balance at 1 January 2024		3.500.000 68.833.639	(19.826)	7.881.170	(3.575.306)	37.746	(7.576.905)		4.660.355 (10.575.418)	4.379.098		3.968.019 39.714.472	22.310.376	133.537.420

Transfers	−	−	−	−	−	−	−	−	−	−		− 22.310.376	(22.310.376)	−
Total comprehensive income	−	−	−	−	(1.339.611)	171.418	(699.247)	(269.799)	810.489	(1.067.981)	−	−	3.921.283	1.526.552
Profit for period	−	−	−	−	−	−	−	−	−	−	−	−	3.921.283	3.921.283
Other comprehensive income	−	−	−	−	(1.339.611)	171.418	(699.247)	(269.799)	810.489	(1.067.981)	−	−	−	(2.394.731)
Increase / (decrease) due to other changes (*)	−	−	−	−	−	(209.164)	−	(2.663.544)	6.161.358	−		− (3.288.650)	−	−
Balance at 30 September 2024		3.500.000 68.833.639	(19.826)	7.881.170	(4.914.917)	−	(8.276.152)	1.727.012	(3.603.571)	3.311.117		3.968.019 58.736.198	3.921.283	135.063.972

(*) Differences between the transactions reflected in the profit or loss statement based on nominal amounts and the amounts carried in the funds and valued on the basis of purchasing power are transferred to previous years' profits or losses at the end of maturity.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

		Current Period	Prior Period
		Unaudited	Unaudited
		1 January -	1 January -
	Notes	30 September 2024	30 September 2023
Net profit for the period:		3.921.283	558.567
Adjustments to reconcile profit:
Adjustments for depreciation and amortisation expense		32.764.125	35.575.882
Adjustments for impairment loss / (reversal of impairment loss)
- Adjustments for impairment loss of receivables		362.685	501.919
- Adjustments for impairment loss of inventories		(264)	(4.090)
- Adjustments for impairment loss of property, plant and equipment		(1.745)	138.351
- Other adjustments for impairment loss (reversal of impairment loss)		39.033	(80.305)
Adjustments for provisions
- Adjustments for (reversal of) provisions related with employee benefits		3.583.812	3.663.769
- Adjustments for (reversal of) lawsuit and/or penalty provisions		50.155	218.992
Adjustments for interest expenses and income
- Adjustments for interest income		(2.565.241)	(2.171.626)
- Adjustments for interest expense		7.915.042	6.963.383
- Deferred financial expenses from credit purchases		26.465	325.764
Adjustments for unrealised foreign exchange gains		14.390.605	16.731.799
Adjustments for fair value gains / (losses)
- Adjustments for fair value gains on derivative financial instruments		430.890	750.383
- Adjustments for fair value gains of issued financial instruments		342.259	185.578
- Adjustments for fair value losses of financial assets		(2.600.324)	(4.975.875)
Adjustments for tax income		4.968.882	5.439.330
Adjustments for losses on disposal of tangible assets
- Adjustments for losses arises from sale of tangible assets	10	(229.359)	(437.277)
Other adjustments for which cash effects are investing or financing cash flow		887.531	392.451
Monetary gain / loss		(20.356.715)	(31.154.424)
Other adjustments for non-cash items	16	(578.160)	(716.591)
Operating profit before working capital changes		43.350.959	31.905.980

Changes in working capital:
Adjustments for increase / (decrease) in trade receivables
- Increase / (decrease) in trade receivables from related parties		207.301	(691.992)
- (Decrease) / increase in trade receivables from unrelated parties		(3.142.336)	2.549.907
Adjustments for decrease in inventories		(1.196.736)	(411.462)
Adjustments for decrease / (increase) in trade payable
- (Decrease) / increase in trade payables to related parties		(110.819)	332.828
- (Decrease) in trade payables to unrelated parties		(6.275.094)	(7.307.879)
Adjustments for decrease in other receivables related with operations
- Increase / (decrease) in other unrelated party receivables related with operations		411.364	(1.561.394)
Adjustments for increase in other operating payables related with operations
- Decrease in other payables related with operations to unrelated parties		(1.013.864)	(792.610)
Cash flow from operations:
Interest received		452.793	310.562
Payments related with provisions for employee benefits		(2.148.224)	(2.255.225)
Payments related with other provisions		(131.959)	(139.538)
Income taxes paid		(255.494)	(418.881)
Other outflows of cash	16	(472.279)	(93.962)
Net cash generated from operating activities		29.675.612	21.426.334

The accompanying notes form an integral part of these consolidated financial statements.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

		Current Period	Prior Period
		Unaudited	Unaudited
		1 January -	1 January -
	Notes	30 September 2024	30 September 2023
Cash flows used in investing activities:
Proceeds from sale of property, plant, equipment and intangible assets
- Proceeds from sales of property, plant and equipment	10	394.752	485.957
Purchases of property, plant, equipment and intangible assets
- Purchase of property, plant and equipment		(16.225.562)	(16.586.292)
- Purchase of intangible assets		(5.966.378)	(5.498.809)
Cash outflows arising from acquisition of shares or debt instruments of other
businesses or funds		(10.513.206)	(15.457.678)
Cash inflows arising from acquisition of shares or debt instruments of other
businesses or funds		10.830.217	14.161.987
Net cash used in investing activities		(21.480.177)	(22.894.835)
Cash flows from financing activities:
Proceed from borrowings
- Proceeds from loans		29.162.183	38.928.312
- Cash inflows from issued debt instruments		17.801.546	6.045.240
Repayments of borrowings
- Loan repayments		(24.448.248)	(32.607.577)
- Payment of issued of debt instruments		(29.620.782)	(4.912.228)
Payments of lease liabilities		(3.383.459)	(2.244.390)
Cash inflows / (outflows) from derivative instruments, net		(1.235.823)	11.724.289
Interest paid		(5.507.372)	(5.456.789)
Interest received		2.112.448	1.861.064
Cash outflows from the business' own acquisition of shares		−	(19.826)
Other cash inflows	16	1.479.491	(1.349.544)
Net cash used in financing activities		(13.640.016)	11.968.551
NET DECREASE / (INCREASE) IN CASH AND CASH EQUIVALENTS BEFORE		(5.444.581)	10.500.050
CURRENCY TRANSLATION DIFFERENCES
IMPACT OF MONETARY GAIN/LOSS ON CASH AND CASH EQUIVALENTS		(3.159.870)	(5.691.219)
IMPACT OF FOREIGN CURRENCY TRANSLATION DIFFERENCES ON CASH
AND CASH EQUIVALENTS		630.953	1.232.524
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD		14.331.235	7.728.304
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	6	6.357.737	13.769.659

The accompanying notes form an integral part of these consolidated financial statements.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY

Türk Telekomünikasyon Anonim Şirketi ("Türk Telekom" or "the Company") is a joint stock company incorporated in Turkey. The Company has its history in the Posthane-i Amirane (Department of Post Office) which was originally established as a Ministry on 23 October 1840. On 4 February 1924, under the Telephone and Telegraph, the authorization to install and operate telephone networks throughout Turkey was given to the General Directorate of Post, Telegraph and Telephone ("PTT"). The Company was founded on 24 April 1995 as a result of the split of the telecommunication and postal services formerly carried out by the PTT. All of the personnel, assets and obligations of the PTT pertaining to telecommunication services were transferred to the Company, the shares of which were fully owned by the Republic of Turkey Ministry of Treasury and Finance ("the Treasury").

On 24 August 2005, Oger Telekomünikasyon A.Ş. ("OTAŞ"), entered into a Share Sale Agreement with the Turkey's Privatization Authority for the purchase of a 55% stake in the Company. A Shareholders Agreement and a Share Pledge Agreement for the block sale of the Company were signed on 14 November 2005 and then after, OTAŞ became the parent company of the Company.

Out of TL 3.500.000 nominal amount of capital, 15% of the Company's shares owned by the Treasury corresponding to a nominal amount of TL 525.000 have been issued to the public through an initial public offering with the permission of Directorate of Istanbul Stock Exchange on 15 May 2008. Since then Company shares are traded in Borsa İstanbul with the name of TTKOM.

As per the regulatory disclosure made by Türk Telekom on 15 August 2018, within the scope of the process, which is carried out in relation to takeover of OTAŞ's 55% shares in our Company, Türk Telekom, by a special purpose vehicle ("SPV"), which the creditor banks of OTAŞ will be shareholders, a notification was made to our company by some of the creditor banks.

The SPV mentioned in the said statements, LYY Telekomünikasyon A.Ş. ("LYY") has informed the Company that in accordance with Article 198 of the Turkish Commercial Code, all of the Group A shares, which constitute 55% of the Company's capital, have been transferred to LYY as of December 21, 2018. Based on this notification, LYY has been registered as a shareholder in the Company's share book pursuant to Article 499 of the Turkish Commercial Code.

In the material event statement dated 10 March 2022 made by the company, LYY Telekomünikasyon A.Ş. (LYY), 55% owned by Türk Telekomünikasyon A.Ş. (Türk Telekom) share to the Turkey Wealth Fund (TWF), a share transfer agreement was signed between the parties, after the necessary approvals were obtained and the closing conditions were fulfilled, in the material event statement dated 31 March 2022, the transfer of the shares was completed, after the transfer, on 31 March 2022. It has been reported that the Turkish Wealth Fund (TWF) is the largest shareholder of Türk Telekom with 61,68% shareholding as of date.

Following the signing of the share transfer agreement stated in the aforementioned explanations, the Company was informed that as of 31 March 2022, all of the A Group shares, which constitute 55% of the Company's capital, were transferred to TWF in accordance with Article 198 of the Turkish Commercial Code. Based on this notification, TWF was registered as a new shareholder in the Company's share book in accordance with Article 499 of the Turkish Commercial Code.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY (CONTINUED)

As at 30 September 2024, the parent company and controlling party of the Company is Turkish Wealth Fund.

A concession agreement ("the Concession Agreement") was signed by the Company and Turkish Telecommunication Authority (now named the Information and Communication Technologies Authority ("ICTA") as at 14 November 2005. The Concession Agreement covers the provision of all kinds of telecommunication services, establishment of necessary telecommunications facilities and the use of such facilities by other licensed operators and the marketing and supply of telecommunication services for 25 years starting from 28 February 2001. The Concession Agreement will terminate on 28 February 2026 and in the conditions where the Concession Agreement is expired or not renewed, the Company shall transfer all equipment that affects the operation of its systems in full working order and the real estates in its use where these equipment are deployed to the ICTA or to an institution designated by the ICTA.

The Concession Agreement will expire at the end of its time period. However, the Company may apply to the ICTA and request for extension thereof no later than 1 year prior to the expiry of the duration of the Concession Agreement. The ICTA may decide to renew the Concession Agreement at the latest before 180 days of the date of expiration taking into account new conditions and within the scope of the legislation and the regulations of the ICTA. On 3 January 2023, the Company applied to the ICTA for the extension of the concession agreement for the execution of telecommunication services.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY (CONTINUED)

The details of the Company's subsidiaries as at 30 September 2024 and 31 December 2023 are as follows:

				Effective ownership of the
				Company (%)
	Place of incorporation		Functional	30 September	31 December
Name of Subsidiary	and operation	Principal activity	Currency	2024	2023
TTNet Anonim Şirketi ("TTNet")	Turkey	Internet service provider	Turkish Lira	100	100
TT Mobil İletişim Hizmetleri A.Ş. ("TT Mobil")	Turkey	GSM operator	Turkish Lira	100	100
Argela Yazılım ve Bilişim Teknolojileri Sanayi ve
Ticaret Anonim Şirketi ("Argela")	Turkey	Telecommunication solutions	Turkish Lira	100	100
Innova Bilişim Çözümleri Anonim Şirketi ("Innova")	Turkey	Telecommunication solutions	Turkish Lira	100	100
Assistt Rehberlik ve Müşteri Hizmetleri Anonim
Şirketi ("AssisTT")	Turkey	Call center and customer relations	Turkish Lira	100	100
Sebit Eğitim ve Bilgi Teknolojileri A.Ş. ("Sebit")	Turkey	Web Based Learning	Turkish Lira	100	100
NETSIA Inc.	USA	Telecommunications solutions	U.S. Dollar	100	100
Sebit LLC.	USA	Web based learning	U.S. Dollar	100	100
TT International Holding B.V. ("TT International") (*)	Netherlands	Holding company	Euro	100	100
Türk Telekom International Hu Kft (TTINT Hungary)		Internet/data services, infrastructure and
(*)	Hungary	wholesale voice services provider	Euro	100	100
		Internet/data services, infrastructure and
S.C. Euroweb Romania S.A. ("TTINT Romania") (*)	Romania	wholesale voice services provider	Euro	100	100
Türk Telekom International Bulgaria EODD ("TTINT		Internet/data services, infrastructure and
Bulgaria") (*)	Bulgaria	wholesale voice services provider	Euro	100	100
Türk Telekom International CZ s.r.o. ("TTINT Czech		Internet/data services, infrastructure and
Republic") (*)	Czech Republic	wholesale voice services provider	Euro	100	100
Türk Telekom International SRB d.o.o. ("TTINT		Internet/data services, infrastructure and
Serbia") (*)	Serbia	wholesale voice services provider	Euro	100	100
TTINT Telekomunikacije d.o.o. ("TTINT Slovenia")		Internet/data services, infrastructure and
(*)	Slovenia	wholesale voice services provider	Euro	100	100
Türk Telekom International SK s.r.o. ("TTINT		Internet/data services, infrastructure and
Slovakia") (*)	Slovakia	wholesale voice services provider	Euro	100	100
TT International Telekomünikasyon Sanayi ve Ticaret		Internet/data services, infrastructure and
Limited Şirketi ("TTINT Turkey") (*)	Turkey	wholesale voice services provider	Euro	100	100
Türk Telekom International UA LLC ("TTINT		Internet/data services, infrastructure and
Ukraine") (*)	Ukraine	wholesale voice services provider	Euro	100	100
Türk Telekom International Italy S.R.L. (TTINT Italy)		Internet/data services, infrastructure and
(*)	Italy	wholesale voice services provider	Euro	100	100
TTINT International MK DOOEL ("TTINT		Internet/data services, infrastructure and
Macedonia") (*)	Macedonia	wholesale voice services provider	Euro	100	100
Türk Telekom International RU LLC ("TTINT		Internet/data services, infrastructure and
Russia") (*)	Russia	wholesale voice services provider	Euro	100	100
		Internet/data services, infrastructure and
Türk Telekom International d.o.o. (*)	Croatia	wholesale voice services provider	Euro	100	100
		Internet/data services, infrastructure and
Türk Telekom International HK Limited (*)	Hong Kong	wholesale voice services provider	H.K. Dollar	100	100
Net Ekran TV ve Medya Hiz. A.Ş. ("Net Ekran")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
TTES Elektrik Tedarik Satış A.Ş. ("TTES")	Turkey	Electrical energy trading	Turkish Lira	100	100
TT Ödeme ve Elektronik Para Hizmetleri A.Ş.	Turkey	Mobile finance	Turkish Lira	100	100
Net Ekran1 TV ve Medya Hiz. A.Ş. ("Net Ekran1")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
Net Ekran2 TV ve Medya Hiz. A.Ş. ("Net Ekran2")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
Net Ekran3 TV ve Medya Hiz. A.Ş. ("Net Ekran3")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
Net Ekran4 TV ve Medya Hiz. A.Ş. ("Net Ekran4")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
Net Ekran6 TV ve Medya Hiz. A.Ş. ("Net Ekran6")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
Net Ekran10 TV ve Medya Hiz. A.Ş. ("Net Ekran10")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
Net Ekran11 TV ve Medya Hiz. A.Ş. ("Net Ekran11")	Turkey	Television and radio broadcasting	Turkish Lira	100	100
TT Satış ve Dağıtım Hizmetleri Anonim Şirketi	Turkey	Selling and distribution services	Turkish Lira	100	100
TT Ventures Proje Geliştirme A.Ş.	Turkey	Corporate venture capital	Turkish Lira	100	100
		Provider of combined facilities support
TT Destek Hizmetleri A.Ş.	Turkey	activities	Turkish Lira	100	100
		Web portal and computer programming
APPYAP Teknoloji ve Bilişim A.Ş.	Turkey	activities	Turkish Lira	100	100
TTG Finansal Teknolojiler A.Ş.	Turkey	Financial advisory services	Turkish Lira	100	100
		Retail and wholesale trade of software
TTG Ventures Marketing Inc.	USA	programs	U.S. Dollar	100	100
Assistt Holland B.V.	Netherlands	Call center activities	Euro	100	100
TT Finansman A.Ş.	Turkey	Consumer finance company activities	Turkish Lira	100	100

(*) Hereinafter, will be referred as TTINT Group.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY (CONTINUED)

The details of the Company's joint operation as at 30 September 2024 and 31 December 2023 are as follows:

				Effective ownership of the Company (%)
Name of Joint Operation	Place of incorporation and operation	Principal activity	Functional Currency	30 September 2024	31 December 2023
		Internet/data services,
TT Mobil-Vodafone Evrensel İş		infrastructure and wholesale
Ortaklığı	Turkey	voice services provider	Turkish Lira	51	51
				Effective ownership of the Company
				(%)
	Place of incorporation		Functional	30 September	31 December
Affiliate	and operation	Principal activity	Currency	2024	2023
		Internet/data services,
TT Ventures Girişim Sermayesi		infrastructure and wholesale
Yatırım Fonu	Turkey	voice services provider	Turkish Lira	100	100

The Group indirectly holds investment in its affiliates, which has a significant influence, through its contribution payments to the established Venture Capital Investment Fund. The Group has chosen to measure this investment at fair value through profit or loss in accordance with TFRS 9.

Hereinafter, Türk Telekom and its subsidiaries, affiliate and joint operations together will be referred to as "the Group".

The Group's principal activities include the provision of local, national, international and mobile telecommunication services, internet products and services, as well as call center and customer relationship management, technology and information management.

The Company's registered office address is Turgut Özal Bulvarı, 06103 Aydınlıkevler, Ankara.

The number of personnel subject to collective agreement as at 30 September 2024 is 8.785 (31 December 2023: 8.886) and the number of personnel not subject to collective agreement as at 30 September 2024 is 27.538 (31 December 2023: 28.379). The total number of personnel as at 30 September 2024 and 31 December 2023 are 36.323 and 37.265, respectively.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of presentation of the interim condensed consolidated financial statements

a) Statement of compliance with TFRS

The accompanying interim condensed consolidated financial statements are prepared in accordance with Turkish Financial Reporting Standards ("TFRS") published by Public Oversight Accounting and Auditing Standards Authority ("POA") as set out in the Communiqué numbered II-14.1 "Communiqué on Principles of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. TFRSs consist of standards and interpretations which are published as Turkish Accounting Standards ("TAS"), Turkish Financial Reporting Standards, interpretations of TAS and interpretations of TFRS.

The interim condensed consolidated financial statements are presented in accordance with the formats determined in the "Announcement on TFRS Taxonomy" published by the POA on July 3, 2024 and in the Financial Statement Samples and User Guide published by the CMB.

In accordance with the TAS, the entities are allowed to prepare a complete or condensed set of interim financial statements in accordance with TAS 34, "Interim Financial Reporting". In this respect, the Group preferred to present its interim condensed consolidated financial statements as of 30 September 2024. The Group's interim condensed consolidated financial statement does not include all disclosures and notes that should be included at year-end financial statements. Therefore, the interim condensed consolidated financial statements should be examined together with the 31 December 2023 year-end financial statements.

Approval of the financial statements:

The interim condensed consolidated financial statements are approved by the Company's Board of Directors on 6 November 2024. General Assembly has the right to change the interim condensed consolidated financial statements.

b) Correction of financial statements during the hyperinflationary periods

With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 25 December 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after 31 December 2023. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy. According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of 31 December 2023, on the purchasing power basis as of 30 September 2024.

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

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTUNIED)

2.1 Basis of presentation of the interim condensed consolidated financial statements (continued)
b) Correction of financial statements during the hyperinflationary periods (continued)

The table below shows the evolution of CPI in the last three years and as of 30 September 2024:

Year End	Index	Index (%)	Conversion Factor
2004	113,86	13,86	22,18654
2005	122,65	7,72	20,59649
2006	134,49	9,65	18,78326
2007	145,77	8,39	17,32977
2008	160,44	10,06	15,74520
2009	170,91	6,53	14,78064
2010	181,85	6,40	13,89145
2011	200,85	10,45	12,57735
2012	213,23	6,16	11,84711
2013	229,01	7,40	11,03078
2014	247,72	8,17	10,19764
2015	269,54	8,81	9,37212
2016	292,54	8,53	8,63526
2017	327,41	11,92	7,71559
2018	393,88	20,30	6,41353
2019	440,50	11,84	5,73476
2020	504,81	14,60	5,00418
2021	686,95	36,08	3,67736
2022	1128,45	64,27	2,23861
2023-September	1691,04	49,86	1,49385
2023	1859,38	64,77	1,35860
2024-September	2526,16	35,86	1,00000

Assets and liabilities were separated into those that were monetary and non–monetary, with non–monetary items were further divided into those measured on either a current or historical basis to perform the required restatement of financial statements under TAS 29. Monetary items (other than index -linked monetary items) and non-monetary items carried at amounts current at the end of the reporting period were not restated because they are already expressed in terms of measuring unit as of 30 September 2024. Nonmonetary items which are not expressed in terms of measuring unit as of 30 September 2024 were restated by applying the conversion factors. The restated amount of a non monetary item was reduced, in accordance with appropriate TFRSs, in cases where it exceeds its recoverable amount or net realizable value. Components of shareholders' equity in the statement of financial position and all items in the statement of profit or loss and other comprehensive income have also been restated by applying the conversion factors.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)

2.1 Basis of presentation of the interim condensed consolidated financial statements (continued)

c) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the property, plant and equipment other than lands and investment property acquisitions prior to 1 January 2000 for which the deemed cost method was applied in accordance with TAS 29 "Financial Reporting in Hyperinflationary Economies", lands, financial investments, derivative financial instruments, issued debt instruments which have been measured at fair value through profit or loss. Investment properties and tangible assets other than lands which are recognized with deemed cost method are valued with fair values as of 1 January 2000, lands accounted as property, plant and equipment, derivative financial instruments and issued debt instruments which have been measured at fair value through profit or loss, are valued with fair values as of balance sheet date.

d) Functional and presentation currency

Excluding the subsidiaries incorporated outside of Turkey, functional currency of all entities' included in consolidation is Turkish Lira ("TL") and they maintain their books of account in TL in accordance with Turkish Commercial Code, Tax Legislation and the Uniform Chart of Accounts issued by the Ministry of Finance.

Functional currencies of the subsidiaries and Company's joint operation are presented in Note 1.

The consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with the Turkish Accounting Standards published by the POA and are presented in TL.

Additional paragraph for convenience translation to English:

The accounting principles described in Note 2 (defined as Turkish Accounting Standards/Turkish Financial Reporting Standards) to the accompanying consolidated financial statements differ from International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") with respect to the application of inflation accounting, classification of some income statement items and also for certain disclosures requirement of the POA.

e) Significant accounting assessments, estimates and assumptions

In order to prepare financial statements in accordance with TFRS, certain assumptions affecting notes to the financial statements and critical accounting estimations related to assets, liabilities, contingent assets and contingent liabilities are required to be used. Although these estimations are made upon the best afford of the management by interpreting the cyclical circumstances, actual results may differ from the forecasts. Issues that are complex and needs further interpretation, which might have a critical impact on financial statements. Except for the change specified in Note 10, judgments and critical accounting estimates used in interim condensed consolidated financial statements as of 30 September 2024 are the same as those used prior year.

Taxes

The Company and its subsidiaries located in Turkey are subject to the tax legislation and practices in force in Turkey. In accordance with the tax legislation, corporate tax is paid for the first three quarters by calculating a provisional tax of 25% on the earnings generated quarterly, and the amounts paid in this way are offset from the tax calculated on annual earnings.

Deferred tax charge is calculated in accordance with the enacted tax laws. The accounting policies used by the Group in calculating deferred tax are the same as those used in the independently audited consolidated financial statements prepared as of 31 December 2023.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)
2.1 Basis of presentation of the interim condensed consolidated financial statements (continued)
e) Significant accounting assessments, estimates and assumptions (continued)

Determination of fair values

A number of the Group's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. 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.

i) Trade and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows discounted at the market rate of interest at the reporting date. Short-term receivables with no stated interest rate are measured at the original invoice amount if the effect of discounting is immaterial. This fair value is determined at initial recognition and at the end of each reporting period for disclosure purposes.

ii) Forward contracts and interest rate swaps

The fair value of interest rate swaps and forward exchange contracts are based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity and counterparty when appropriate.

iii) Issued debt instruments

The fair values of issued debt instruments are measured by using quoted market price at the date of valuation.

iv) Other non-derivative financial liabilities

Other non-derivative financial liabilities are measured at fair value, at initial recognition and for disclosure purposes, at each annual reporting date. Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the measurement date.

Determination of fair values (continued)

v) Lands

Lands accounted as property, plant and equipment are measured at revalued amount. Revalued amount is the value found by deducting the subsequent impairment loss from the fair value determined based on the transaction prices of lands of similar nature and location using the comparable method on the date of revaluation. The revalued amounts of the land were calculated by CMB licensed valuation experts in the third quarter of 2023 and carried into the financial statements dated 30 September 2023 by the Group management.

vi) Foreign Currency Protected TL Deposit

Foreign currency protected TL Deposits are a financial asset with cash flows that include principal and interest, but they also feature a derivative product, as these cash flows may change depending on the change in exchange rates. Therefore, Currency Foreign currency protected TL Deposits are considered as hybrid contracts and accounted as financial assets whose fair value is recognized in profit or loss in line with the directions of TFRS 9 regarding hybrid contracts. Changes in the fair value of Foreign currency protected TL Deposits are accounted in the "Income/Expense from Investing Activities" Item in the Statement of Profit or Loss and Other Comprehensive Income." The fair value of the exchange rate protected deposit is calculated based on the fair value of the derivative products it contains and the discounted cash flows using the market interest rates valid as of the balance sheet date.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)

2.2 Summary of significant accounting policies

The new standards, amendments and interpretations

The accounting policies adopted in preparation of the consolidated financial statements as of September 30, 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2024 and thereafter. The effects of these standards and interpretations on the Company / the Group's financial position and performance have been disclosed in the related paragraphs.

i) The new standards, amendments and interpretations which are effective as of 1 January 2024 are as follows:

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

In March 2020 and January 2023, POA issued amendments to TAS 1 to specify the requirements for classifying liabilities as current or non-current. According to the amendments made in January 2023 if an entity's right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period ("future covenants"), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period. In addition, January 2023 amendments require an entity to provide disclosure when a liability arising from a loan agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance with future covenants within twelve months. This disclosure must include information about the covenants and the related liabilities. The amendments clarify that the requirement for the right to exist at the end of the reporting period applies to covenants which the entity is required to comply with on or before the reporting date regardless of whether the lender tests for compliance at that date or at a later date. The amendments also clarified that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. The amendments must be applied retrospectively in accordance with TAS 8.

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

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

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

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

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

The amendments issued by POA in September 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by TFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose.

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

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)

2.2 Summary of significant accounting policies (continued)

The new standards, amendments and interpretations (continued)

ii) Standards issued but not yet effective and not early adopted

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

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

In December 2017, POA postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted.

The Group will wait until the final amendment to assess the impacts of the changes.

TFRS 17 - The new Standard for insurance contracts

POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. The mandatory effective date of the Standard postponed to accounting periods beginning on or after January 1, 2025 with the announcement made by the POA.

The standard is not applicable for the Group and will not have an impact on the financial position or performance of the Group.

Amendments to TAS 21 - Lack of exchangeability

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

The amendments are not applicable for the Group and will not have an impact on the financial position or performance of the Group.

iii) The amendments which are effective immediately upon issuance

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

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

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

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)
2.2 Summary of significant accounting policies (continued)
The new standards, amendments and interpretations (continued)

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

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

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

In May 2024, IASB issued amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7). The amendment clarifies that a financial liability is derecognised on the 'settlement date'. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of nonrecourse assets and contractually linked instruments. Additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income are added with the amendment.

The amendments are not applicable for the Group and will not have an impact on the financial position or performance of the Group.

Annual Improvements to IFRS Accounting Standards – Volume 11

In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards – Volume 11, amending the followings:

IFRS 1 First-time Adoption of International Financial Reporting Standards – Hedge Accounting by a Firsttime Adopter: These amendments are intended to address potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9.
IFRS 7 Financial Instruments: Disclosures – Gain or Loss on Derecognition: The amendments update the language on unobservable inputs in the Standard and include a cross reference to IFRS 13.
IFRS 9 Financial Instruments – Lessee Derecognition of Lease Liabilities and Transaction Price: IFRS 9 has been amended to clarify that, when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply derecognition requirement of IFRS 9 and recognise any resulting gain or loss in profit or loss. IFRS 9 has been also amended to remove the reference to 'transaction price".
IFRS 10 Consolidated Financial Statements – Determination of a 'De Facto Agent': The amendments are intended to remove the inconsistencies between IFRS 10 paragraphs.
IAS 7 Statement of Cash Flows – Cost Method: The amendments remove the term of "cost method" following the prior deletion of the definition of 'cost method'.

The amendments are not applicable for the Group and will not have an impact on the financial position or performance of the Group.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)
2.2 Summary of significant accounting policies (continued)
The new standards, amendments and interpretations (continued)
iv) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA) (continued)

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

In April 2024, IASB issued IFRS 18 which replaces IAS 1. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards, such as IAS 7, IAS 8 and IAS 34.

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

IFRS 19 – Subsidiaries without Public Accountability: Disclosures

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

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

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

3. SEASONAL CHANGES IN THE OPERATIONS

The operations of the Group are not subject to seasonal fluctuations.

4. EARNINGS PER SHARE

	1 January - 30 September 2024	1 January - 30 September 2023
Weighted average number of ordinary shares outstanding during the year	349.950.000.000	350.000.000.000
Net profit for the period attributable to equity holders of the Company Basic and earnings per share (in full kuruş)	3.921.283 1,1205	558.567 0,1596

5. SEGMENT REPORTING

The Group has two main segments; fixed line and mobile. Fixed line services are provided by Türk Telekom, TTNet, Argela, Innova, Sebit, AssisTT, TTES, TT Venture, TT Destek Hizmetleri and TTINT Group whereas mobile service is provided by TT Mobil. Group management assesses segment performance over earnings before interest, tax, depreciation and amortisation ("Adjusted EBITDA"). Adjusted EBITDA is calculated by adjusting the operating income by i) adding income/expense from investing activities, depreciation, amortization and impairment expenses and ii) deducting exchange gains/losses, interest and rediscount income/ expenses on current accounts presented in other operating income and expense. Group management uses adjusted EBITDA as it is comparable with other companies in the sector. EBITDA is not a measure of financial performance indicator defined in TFRS and may not be comparable to similar indicators defined by other companies. As Group management does not monitor Group's performance over geographical segments, geographical segment reporting is not presented. The segment results and balance sheet items are presented below:

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

5. SEGMENT REPORTING (CONTINUED)

					Intra-group eliminations and
	Fixed line		Mobile		consolidated adjustments		Consolidated
	1 January - 30 September	1 January - 30 September	1 January - 30 September	1 January - 30 September	1 January - 30 September	1 January - 30 September	1 January - 30 September	1 January - 30 September
	2024	2023	2024	2023	2024	2023	2024	2023
Revenue	67.614.790	67.066.772	45.408.865	37.895.128	(3.797.949)	(4.515.635)	109.225.706	100.446.265
International revenue	4.882.397	5.243.368	−	−	−	−	4.882.397	5.243.368
Contributive revenue (*)	63.994.588	62.730.319	45.231.118	37.715.946	−	−	109.225.706	100.446.265
EBITDA	21.285.681	19.314.819	21.234.185	14.621.867	(9.761)	(35.332)	42.510.105	33.901.354
Contributive adjusted EBITDA (**)	19.634.108	17.308.263	22.875.997	16.593.091	−	−	42.510.105	33.901.354
Capital expenditure (***)	15.596.846	15.651.340	7.244.549	6.902.032	(9.298)	(25.098)	22.832.097	22.528.274
Impairments losses, net	(192.306)	(469.172)	(207.403)	(86.703)	−	−	(399.709)	(555.875)
Depreciation and amortisation	(19.448.229)	(23.234.330)	(13.314.151)	(12.479.903)	−	−	(32.762.380)	(35.714.233)

					Intra-group eliminations and
	Fixed line			Mobile		consolidated adjustments		Consolidated
	1 July - 30 September 2024	1 July - 30 September 2023	1 July - 30 September 2024	1 July - 30 September 2023	1 July - 30 September 2024	1 July - 30 September 2023	1 July - 30 September 2024	1 July - 30 September 2023
Revenue	25.493.143	22.734.703	16.229.218	13.631.006	(1.369.215)	(1.537.921)	40.353.146	34.827.788
International revenue	1.568.169	1.435.363	−	−	−	−	1.568.169	1.435.363
Contributive revenue (*)	24.197.256	21.255.808	16.155.890	13.571.980	−	−	40.353.146	34.827.788
EBITDA	8.582.798	6.716.281	7.888.935	5.905.461	(2.996)	(30.134)	16.468.737	12.591.608
Contributive adjusted EBITDA (**)	8.023.285	6.085.142	8.445.452	6.506.466	−	−	16.468.737	12.591.608
Capital expenditure (***)	6.895.700	5.301.424	2.846.071	3.164.674	(8.211)	(17.738)	9.733.560	8.448.360
Impairments losses, net	(130.461)	329.282	(62.426)	(52.744)	−	−	(192.887)	276.538
Depreciation and amortisation	(6.402.872)	(7.718.758)	(4.416.890)	(4.191.983)	−	−	(10.819.762)	(11.910.741)

(*) "Contributive revenue" represents operating segments' revenues from companies other than those included in the consolidated financial statements. Group management still monitors financial performance of the segments based on their separate financial statements and because of this there is no change at the segment information disclosed. However, contribution of operating segments on the Group's revenue is presented to give additional information to the readers of the financial statements.

(**) "Contributive EBITDA" represents operating segments' EBITDA arose from transactions with companies other than those included in the consolidated financial statements and revised by allocation of intra-group charges for shared costs. Group management still monitors financial performance of the segments based on their separate financial statements and because of this there is no change at the segment information disclosed. However, contribution of operating segments on the Group's revenue is presented to give additional information to the readers of the financial statements.

(***) Capital expenditures do not include TL 578.160 (30 September 2023: TL 716.591) amounted profit margin which is capitalized on intangible assets that are accounted within the scope of TFRS Interpretation 12.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

5. SEGMENT REPORTING (CONTINUED)

	1 January -	1 July -	1 January -	1 July -
	30 September	30 September	30 September	30 September
	2024	2024	2023	2023

Fixed line contributive EBITDA	19.634.108	8.023.285	17.308.263	6.085.142
Mobile contributive EBITDA	22.875.997	8.445.452	16.593.091	6.506.466
EBITDA	42.510.105	16.468.737	33.901.354	12.591.608

Foreign exchange gains, interest income, discount income on current accounts presented in other operating income	826.895	344.967	649.441	(781.842)
Foreign exchange losses, interest income, discount income on current accounts presented in other operating expense (-)	(2.269.302)	(915.981)	(3.731.856)	28.122
Exchange rate protected deposit fair value gains presented in income from investment activities	2.600.324	715.103	4.975.875	1.113.284
Financial income	2.965.281	216.642	15.186.432	905.031
Financial expense (-)	(23.591.274)	(6.622.097)	(35.322.566)	(6.126.471)
Depreciation, amortisation and impairment	(32.762.380)	(10.819.762)	(35.714.233)	(11.910.741)
Monetary gain/loss	18.610.516	3.946.446	26.053.450	13.534.201
Consolidated profit before tax	8.890.165	3.334.055	5.997.897	9.353.192

30 September 2024	Fixed Line	Mobile	Eliminations	Consolidated

Total segment assets	161.279.519	95.376.268	(13.389.849)	243.265.938
Total segment liabilities	(99.817.663)	(21.774.152)	13.389.849	(108.201.966)
Goodwill	488.343	172.733	−	661.076
Assets held for sale	−	623.102	−	623.102

31 December 2023	Fixed Line	Mobile	Eliminations	Consolidated

Total segment assets	189.535.155	93.295.441	(18.282.145)	264.548.451
Total segment liabilities	(127.017.389)	(22.275.787)	18.282.145	(131.011.031)
Goodwill	488.343	172.733	−	661.076
Assets held for sale	−	623.102	−	623.102

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

6. CASH AND CASH EQUIVALENTS

	30 September 2024	31 December 2023
Cash on hand	6.909	3.652
Cash at banks - demand deposit	3.457.287	1.987.671
Cash at banks - time deposit	4.551.814	16.255.437
Liquid fund (*)	78.305	218.031
	8.094.315	18.464.791

(*) Consists of a highly liquid, short-term liquid fund with immaterial risk of change in fair value.

As of 30 September 2024, time deposits are all short-term, maturing within one month and denominated in both foreign currencies and TL. The interest rates are between 5,5% and 51,5% for TL deposits, between 1% and 5,70% for USD deposits and between 0,75% and 3,4%for EUR deposits (31 December 2023: for 5,50% and 45% for TL deposits, between 1% and 6,09% for USD deposits and between 1% and 5% for EUR deposits).

Reconciliation of cash and cash equivalents to the statement of cash flows is as follows:

	30 September 2024	30 September 2023
Cash and cash equivalents	8.094.315	17.879.534
Less: restricted amounts - Collection protocols and ATM collection - Other	(1.673.401) (63.177)	(1.019.869) (3.090.006)
Unrestricted cash	6.357.737	13.769.659

The Group classifies blocked cash amounts under cash and cash equivalents as they are easily convertible into cash and highly liquid assets that are not exposed to impairment loss.

As of 30 September 2024, demand deposits amounting to TL 1.673.401 is restricted due to collection protocols signed with banks for receipts from the subscribers, under which proceeds are made available to the Group a certain number of days after the cash is collected. As of 30 September 2024, Other restricted amounts consist of blocked deposits related to Group's derivative financial instruments.

As of 30 September 2024, the Group maintains available credit line amounting to USD 62.710 until 1 June 2026 and EUR 124.010 until 19 August 2027, EUR 52.250 until 15 May 2027, EUR 3.920 until 29 May 2026, which in total amounted to EUR 180.180 .

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

7. FINANCIAL LIABILITIES

Bank loans

		30 September 2024 31 December 2023
	Weighted			Weighted
	average			average
	nominal			nominal
	interest	Original	TL	interest	Original	TL
	rate (%)	amount	equivalent	rate (%)	amount	equivalent

Short-term bank loans:
Unsecured TL bank loans with fixed interest rates	46,44	7.519.475	7.519.475	22,24	11.337.579	11.337.579
EUR bank loans with fixed interest rates EUR bank loans with variable interest rates	7,25 −	50.000 −	1.908.570 −	− 8,60	− 48.000	− 2.124.240

Interest accruals:
Unsecured TL bank loans with fixed interest rates		1.931.634	1.931.634		902.216	902.216
Unsecured EUR bank loans with fixed interest rates		664	23.062		−	−
Unsecured EUR bank loans with variable interest rates		−	−		674	29.834
Short-term bank loans			11.382.741			14.393.869

Short-term portion of long-term bank loans:
Unsecured USD bank loans with variable interest rates (*)	5,93	70.827	2.416.682	6,90	107.170	4.286.259
Unsecured EUR bank loans with variable interest rates (**)	4,65	67.631	2.581.566	4,50	65.990	2.920.367
Interest accruals of long-term bank loans:
Unsecured USD bank loans with variable interest rates (*)		1.797	61.314		2.815	112.572
Unsecured EUR bank loans with variable interest rates (**)		6.991	266.851		2.108	93.277

Current portion of long-term bank loans			5.326.413			7.412.475

Total short-term bank loans			16.709.154			21.806.344

Long-term bank loans:
Unsecured USD bank loans with variable interest rates (*)	6,36	232.665	7.938.745	7,00	232.509	9.299.156
Unsecured EUR bank loans with variable interest rates (**)	4,73	503.434	19.216.770	4,95	325.879	14.421.801
Total long-term bank loans			27.155.515			23.720.957
Total bank loans			43.864.669			45.527.301

(*) As at 30 September 2024, interest rate varies between SOFR + 0,54% and 2,73% (31 December 2023: SOFR + 0,54% and 2,85%).

(**) As at 30 September 2024, interest rate varies between Euribor + 0,25% and 2,00% (31 December 2023: Euribor + 0,25% and 4,65%).

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

7. FINANCIAL LIABILITIES (CONTINUED)

Bank loans (continued)

The details of the TL equivalents of bank loans according to their remaining maturities are as follows:

30 September 2024						31 December 2023
	Up to 3 months	3 months to 1 year	1 year to 2 years	2 years to 5 years	More than 5 years	Total	Up to 3 months	3 months to 1 year	1 year to 2 years	2 years to 5 years	More than 5 years	Total
Unsecured TL bank loans with fixed interest rates Unsecured USD bank loans with variable interest rates Unsecured EUR bank loans with fixed interest rates Unsecured EUR bank loans with variable interest rates	1.014.802 816.133 23.062 1.204.177	8.436.307 1.661.863 1.908.570 1.644.240	− 4.517.918 − 5.162.330	− 2.593.221 − 13.189.364	− 827.606 − 865.076	9.451.109 10.416.741 1.931.632 22.065.187	10.639.912 680.104 − 480.055	1.599.882 3.718.726 − 4.687.665	− 2.061.346 − 4.276.921	− 6.592.575 − 8.600.858	− 645.235 − 1.544.022	12.239.794 13.697.986 − 19.589.521
	3.058.174	13.650.980	9.680.248	15.782.585	1.692.682	43.864.669	11.800.071	10.006.273	6.338.267	15.193.433	2.189.257	45.527.301

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

7. FINANCIAL LIABILITIES (CONTINUED)

Issued debt instruments

		30 September 2024		31 December 2023
	Weighted average nominal			Weighted average nominal
	interest rate (%)	Original amount	TL equivalent	interest rate (%)	Original amount	TL equivalent


Short-term issued debt instruments:
TL bills, bonds and notes issued	−	−	−	32,74	2.853.067	2.853.067
Interest accruals:
TL bills, bonds and notes issued		−	−		760.726	760.726
The short-term portion of long-term issued debt
instruments:
USD issued debt instruments with fixed interest rates	6,88	178.098	6.076.867	4,88	452.373	18.092.603
Interest accruals of short-term portion of long
term issued debt instruments:
USD issued debt instruments with fixed interest rates		18.782	640.859		16.036	641.342

Short-term issued debt instruments			6.717.726			22.347.738

Long-term issued debt instruments:
USD issued debt instruments with fixed interest rates	7,38	497.571	16.977.624	6,88	476.874	19.072.503
Long-term issued debt instruments			16.977.624			19.072.503

Total issued debt instruments			23.695.350			41.420.241

The sales process of the bond issuances amounted to USD 500.000 with 6 years of maturity, and 6,875% coupon rate based on 7% reoffer yield was completed on 28 February 2019. The bonds are now quoted at Irish Stock Exchange. The part of the bond amounting to USD 17.500 was repurchased in 2022, the related amount was accounted for by deducting the amortized cost using the effective interest rate and the total bond amount.

On 22 May 2024, USD 300.000 of the bond in question was redeemed. Loss of 24.243 TL resulting from redemption was reflected in the profit and loss statement.

The sales process of the bond issuances amounted to USD 500.000 with 10 years of maturity, and 4,875% coupon rate based on 4,982% reoffer yield was completed on 19 June 2014. The bonds are now quoted at Irish Stock Exchange. The part of the bond amounting to USD 20.000 was repurchased in 2019, a portion of USD 5.000 was repurchased in 2022 and a portion of USD 17.500 was repurchased in 2023, the relevant amounts are accounted for by deducting the appropriate values and total bond managers.

On 31 April 2023, TL 1.808.500 was issued with a maturity of 380 days and priced at 32,5% annual simple interest incoming. Ak Yatırım Menkul Kıymetler A.Ş. mediated.

On 31 January 2023, TL 291.500 was issued with a maturity of 177 days and priced at 32% annual simple interest incoming. Ziraat Yatırım Menkul Değerler A.Ş. mediated.

On 20 May 2024, a bond of USD 500.000 with a maturity of 5 years and a coupon rate of %7,375 was issued and priced at a resale yield of %7,5. The bond in question is listed on the Irish Stock Exchange.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

7. FINANCIAL LIABILITIES (CONTINUED)

Issued debt instruments (continued)

The contractual maturities of issued long term bills, bonds and notes in equivalent of TL are as follows:

	30 September 2024				31 December 2023
	Up to 3 months	3 months to 1 year	4 year to 5 years	Total	Up to 3 months	3 months to 1 year	1 year to 2 years	Total
TL issued debt instruments with fixed interest rates	−	−	−		− 3.613.793	−	−	3.613.793
USD issued debt instruments with fixed interest rates	459.974	6.257.752	16.977.624	23.695.350	518.573	18.215.372	19.072.503	37.806.448
	459.974	6.257.752	16.977.624	23.695.350 4.132.366		18.215.372	19.072.503	41.420.241

Lease liabilities

As at 30 September 2024, obligation under leases detail are as follows:

			30 September 2024		31 December 2023
	Currency	Interest rate type	Nominal interest rate	Carrying amount	Nominal interest rate	Carrying amount
Lease liabilities	TL	Fixed	9% - 51,5%	3.783.304	9% - 41%	2.161.511
Lease liabilities	EUR	Fixed	2,5% - 4,5%	204.265	2,5% - 4,5%	329.953
Lease liabilities	USD	Fixed	8,2%	97.353	8,2%	61.414
Lease liabilities	Other	Fixed	3,3%	11.495	3,3%	3.635
				4.096.417		2.556.513

8. DUE FROM AND DUE TO RELATED PARTIES

All intra-group transactions and balances including intra-group unrealized profits and losses are eliminated for consolidation purposes and are not disclosed in this note.

Institutions under state control are defined as related parties due to 25% ownership and the golden share of the Treasury and 61,68% ownership of Turkey Wealth Fund ("TWF"). State controlled entities are defined as related parties but in accordance with the exemption provided by the TAS 24 disclosure requirements, state controlled entities are excluded from general reporting requirements.

The Group carries out transactions with many of these institutions in line with its peers. Banking transactions such as loans and deposits with banks under the control of the Turkey Wealth Fund or in which it has significant influence are also carried out in accordance with their peers. Other transactions consist of corporate tax, value added tax, special communication tax, treasury share and regulatory fees such as fees.

Details of balances and transactions between the Group and other related parties as at 30 September 2024 and 31 December 2023 are disclosed below:

	30 September 2024	31 December 2023
Short-term due from related parties (Trade receivables)
Other	712.035	856.602
	712.035	856.602

	30 September 2024	31 December 2023
Short-Term due to from related parties (Trade payables)
Other	288.068	283.622
	288.068	283.622

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

Deposits held by related parties	30 September 2024	31 December 2023
Time Deposit
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	920.738	1.777.135
T.C. Ziraat Bankası A.Ş.	723.723	3.521.606
Ziraat Katılım Bankası A.Ş.	713.645	83.863
Türkiye Halk Bankası A.Ş.	40.038	141.865
Demand Deposit
T.C. Ziraat Bankası A.Ş.	83.474	36.915
Türkiye Halk Bankası A.Ş.	81.085	118.501
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	27.596	47.516
Other	785	9.548
	2.591.084	5.736.949

Bank loans from related parties	30 September 2024	31 December 2023
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	258.000	2.515.757
T.C. Ziraat Bankası A.Ş.	49.750	66.572
Ziraat Katılım Bankası A.Ş.	−	731.871
	307.750	3.314.200

Currency Protected Time Deposit
from related parties	30 September 2024	31 December 2023
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	1.048.294	928.001
Ziraat Katılım Bankası A.Ş.	428.948	691.378
	1.477.242	1.619.379

8. DUE FROM AND DUE TO RELATED PARTIES (CONTINUED)

The amount of the guarantee given to the related companies for the financing of the device purchases by the distributor companies and sold to the Group customers within the scope of the committed campaigns is disclosed in Note 12.

Transactions with shareholders:

TT Mobil is required under the terms of the TT Mobil Concession Agreement, to pay 15% share to the Treasury (the Treasury Share) of its monthly gross revenue. Besides, the Company and its other subsidiaries that are operating in the telecommunications sector are required to pay universal service fund at 1% of their net revenues of each year and ICTA share at 0,35% of revenues to the Ministry of Transport, Maritime Affairs and Communications under the law Global Service Act numbered 5369. Also, according to Law numbered 7061 "Legislation on Amendment of Certain Tax Legislation and Other Certain Legislation, TT Mobil is required to pay 5% share (radio fee) of its monthly net revenue to ICTA.

As of 30 September 2024, unpaid portion of Treasury Share, universal service fund and ICTA share are recorded under other short term payables and these expenses are accounted in cost of sales account.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

8. DUE FROM AND DUE TO RELATED PARTIES (CONTINUED)

Transactions with related parties:

	1 January -	1 January -
Interest income from related parties	30 September 2024	30 September 2023
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	669.115	256.358
T.C. Ziraat Bankası A.Ş.	319.553	340.092
Ziraat Katılım Bankası A.Ş.	163.519	43.196
Türkiye Halk Bankası A.Ş.	76.116	24.885
	1.228.303	664.531
Interest expense from related parties
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	746.963	391.563
Ziraat Katılım Bankası A.Ş.	166.803	111.808
T.C. Ziraat Bankası A.Ş.	58.797	349.672
Türkiye Halk Bankası A.Ş.	6.346	4.103
	978.909	857.146

	1 January -	1 January -
Income from related parties	30 September 2024	30 September 2023
Superonline İletişim Hizmetleri A.Ş.	1.583.977	1.418.232
Turkcell İletişim Hizmetleri A.Ş.	822.932	1.197.514
Türksat Uydu Haberleşme Kablo TV ve İşletme A.Ş.	715.081	918.866
THY A.O.	679.334	436.292
Enerji Piyasaları İşletme A.Ş.	223.707	435.334
Türkiye Vakıflar Bankası Türk Anonim Ortaklığı	191.104	126.577
Türkiye Halk Bankası A.Ş.	132.233	153.906
T.C. Ziraat Bankası A.Ş.	110.072	82.360
Botaş Boru Hatları İle Petrol Taşıma A.Ş.	19.845	−
Other	312.656	604.040
	4.790.941	5.373.121

	1 January -	1 January -
Expenses from related parties	30 September 2024	30 September 2023
Turkcell İletişim Hizmetleri A.Ş.	863.991	1.316.235
PTT A.Ş.	814.009	478.115
Enerji Piyasaları İşletme A.Ş.	594.652	1.056.049
Kule Hizmet ve İşletmecilik A.Ş.	95.390	87.168
Türksat Uydu Haberleşme Kablo TV ve İşletme A.Ş.	81.454	199.896
THY A.O.	75.842	132.002
Other	59.609	193.447
	2.584.947	3.462.912

The Group generates revenues from related parties by providing fixed voice, corporate data, mobile and internet services. The Group's related party expenses consist of energy, call termination, billing and content, satellite frequency-base services.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

8. DUE FROM AND DUE TO RELATED PARTIES (CONTINUED)

Compensation of key management personnel

The remuneration of board of directors and other members of key management were as follows:

	1 January - 30 September 2024	1 January - 30 September 2023
Short-term benefits	370.785	339.131
Long-term benefits	11.729	10.360
	382.514	349.491

Key management personnel comprise the Group's members of Board of Directors and top managers.

9. TRADE RECEIVABLES FROM AND PAYABLES TO UNRELATED PARTIES

Trade receivables

	30 September 2024	31 December 2023
Short-term
Receivables from subscribers	21.661.399	20.616.554
Other trade receivables (*)	1.059.642	837.642
Allowance for doubtful receivables (-)	(3.460.918)	(4.184.528)
Total short-term trade receivables	19.260.123	17.269.668
Long-term
Receivables from subscribers	59.390	330.854
Total long-term trade receivables	59.390	330.854

(*) Other trade receivables mainly consist of corporate project receivables.

Trade receivables generally have a maturity term of 60 days on average (31 December 2023: 60 days).

The movement of the allowance for doubtful receivables is as follows:

	1 January -	1 January -
	30 September 2024	30 September 2023
At January 1	(4.184.528)	(9.228.144)
Provision for the year, net	(361.085)	(372.591)
Receivables written off	5.372	2.095.141
Change in currency translation differences	(6.773)	(31.593)
Inflation effect	1.086.096	3.041.833
At 30 September	(3.460.918)	(4.495.354)

The Group waits up to 90 days before initiating legal action for overdue receivables. Based on its previous collection performance from overdue receivables, the Company expects to make significant collections from its overdue receivables.

Receivables guaranteed of the Group are amounted to TL 893.527 (31 December 2023: TL 1.033.980).

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

9. TRADE RECEIVABLES FROM AND PAYABLES TO UNRELATED PARTIES (CONTINIUED)

Contract assets from unrelated parties

	30 September 2024	31 December 2023

Short-term
Contract assets from sale of goods and service contracts	7.021.629	4.839.070

	7.021.629	4.839.070
Long-term
Contract assets from sale of goods and service contracts	25.881	29.649

	25.881	29.649

The contract assets represent contract assets from subscribers. Due to the high volume of subscribers, different billing period are available, an accrual is made at the end of each reporting period to accrue revenue for services rendered but not billed. In addition, income an accrual is made for the not billed of the contributions services.

As of the reporting period, the portion of the accrued income to be invoiced one year later is presented in the long term contract assets.

Trade payables from unrelated parties

	30 September 2024	31 December 2023

Short-term
Trade payables	8.978.399	17.041.368
Expense accruals	3.951.024	1.830.025

Total short-term trade payables	12.929.423	18.871.393

The average maturity term of trade payables is between 30 and 150 days (31 December 2023: 30 and 150 days).

As of 30 September 2024, short term trade payables consist of payables within scope of supplier finance that amounting TL 152.093 (31 December 2023: TL 1.041.182).

10. TANGIBLE AND INTANGIBLE ASSETS

The amount of tangible and intangible assets purchased during the nine months period ended 30 September 2024 is TL 22.832.097 (30 September 2023: TL 22.528.274).

Net book value of tangible and intangible assets sold during the nine months period ended 30 September 2024 amounted to TL 165.393 (30 September 2023: TL 48.680).

The Group has made changes to the remaining useful lives of tangible fixed assets as of 1 January 2024, due to concrete progress in the negotiations with ICTA regarding the extension of the fixed line concession agreement and strong expectations for the extension of the period. Accordingly, the remaining lives of tangible fixed assets are 26,4 years at most.

The Group has also reviewed the useful lives of property, plant and equipment as of 1 April 2024 and revised the useful lives of some assets considering the future benefits to be obtained. These changes have caused an approximately 20 percent decrease in group depreciation expenses.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

11. PROVISIONS

Other current provisions

Provisions for short-term debt for the years 30 September 2024 and 31 December 2023 are as follows:

	30 September 2024	31 December 2023

Litigation, ICTA penalty and customer return provisions (*)	225.602	382.398
Provision for expected credit losses on loan commitments (**)	55.590	75.110

	281.192	457.508

(*) TT Mobil tax inspection consists of the Ministry of Commerce fine, ICTA fines, refunds and other litigation provisions required by ICTA decisions. Detailed explanations are given in Footnote 12.
(**) Consists of expected credit losses are recognized for the guarantees given for borrowings of distributors which are utilized in financing of equipment purchases that will be sold to Group's customers as part of commitment sales.

Current provisions for employee benefits

	30 September 2024	31 December 2023

Short term provisions for employee benefits
Personnel bonus provision	1.824.401	1.722.585
	1.824.401	1.722.585
Non-current provisions for employee benefits	30 September 2024	31 December 2023

Long term provisions for employee benefits
Defined benefit obligation	5.512.633	4.556.905
Unused vacation provisions	1.025.325	955.366
	6.537.958	5.512.271

In accordance with existing social legislation in Turkey, companies are required to make lump-sum payments to employees whose employment has ended due to retirement or for reasons other than resignation or misconduct. The liability is not funded and accordingly there are no plan assets for the defined benefits as there is no funding requirement.

The retirement pay liability as at 30 September 2024 is subject to a ceiling of full TL 41.828,42 (31 December 2023: full TL 23.489,83) per monthly salary for each service year.

The Group also has some other long-term taxes such as employment, duty, compensation and anniversary gifts.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

12. COMMITMENTS AND CONTINGENCIES

Guarantees received and given by the Group are summarized below:

		30 September 2024		31 December 2023
		Original		Original
		currency	TL	currency	TL

Guarantees received	USD	118.129	4.030.680	115.019	4.600.147
	TL	3.247.316	3.247.316	3.011.211	3.011.211
	EUR	31.971	1.220.386	27.476	1.215.950
	Sterlin	11	518	3	152

			8.498.900		8.827.460

Guarantees given (*)	USD	188.878	6.444.692	197.824	7.911.929
	TL	1.950.451	1.950.451	2.273.028	2.272.651
	EUR	72.603	2.771.349	72.585	3.212.260
			11.166.492		13.396.840

(*) Guarantees given amounting to USD 151.500 (31 December 2023: USD 151.500) is related to the guarantee provided to the ICTA by TT Mobil with respect to the TT Mobil Concession Agreement, guarantees given amounting to EUR 12.840 (31 December 2023: EUR 12.840) is related with the guarantee provided for 3G license and guarantees given amounting to EUR 57.281 (31 December 2023: EUR 57.281) is related with the guarantee provided for 4.5G license.

The Company's guarantee, pledge and mortgage (GPM) position as at 30 September 2024 and 31 December 2023 is as follows:

	30 September 2024	31 December 2023
A. GPMs given on behalf of the Company's legal personality	11.166.492	13.396.840
B. GPMs given in favour of subsidiaries included in full consolidation	3.731.181	2.702.285
C. GPMS given by the Company for the liabilities of 3rd parties in order to run ordinary course of business	694.842	984.392
Total	15.592.515	17.083.517

Based on law 128/1 of Turkish Code of Obligations, the Group has given guarantee to distributors amounting to TL 694.842 for the financial obligation that would arise during the purchase of devices that will be sold as commitment sales by the Group (31 December 2023: TL 984.392). The guarantees have given to the banks TL 280.923 Vakıf Faktoring A.Ş.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

12. COMMITMENTS AND CONTINGENCIES (CONTINIUED)

Other commitments

The Group has purchase commitments for sponsorships, advertising and insurance services at the equivalent to TL 564.308 (31 December 2023: TL 863.914) as at 30 September 2024. Payments for these commitments are going to be made in a 2-year period.

The Group has purchase commitments for fixed assets amounting to USD 103.085, EUR 43.702, and TL 1.341.067 equivalent to TL 6.526.594 (31 December 2023: TL 1.900.602) as at 30 September 2024.

Legal proceedings of Türk Telekom Disputes between the Group and the ICTA

The Company has filed various lawsuits against ICTA. These lawsuits are related with the sector-specific and tariff legislations and legislations with respect to the other operators in the market. The sector-specific disputes generally stem from the objections with respect to the provisions of interconnection legislation, legislation with respect to telecommunication services and infrastructure.

According to the Article 99 of the Law numbered 7061 "Legislation on Amendment of Certain Tax Legislation and Other Certain Legislation" which was published on the Official Gazette numbered 30261 on 5 December 2017 and according to the sub-article 9 added to the Article 60 of the Law numbered 5809; customer returns that are not repaid to the customers within the 2-year period, shall be transferred to the Ministry of Transport and Infrastructure of the Republic of Turkey as revenue under the name of "Revenues for Universal Service". As of 30 September 2024, TL 101.849 provision provided for ICTA penalties and amounts to be repaid to customers or to the Ministry of Transport and Infrastructure of the Republic of Turkey due to ICTA resolutions (31 December 2023: TL 181.377).

Other issues

Provision has been provided in the consolidated financial statements for the probable court cases against the Group based on the lawyers' assessments. The provision for such court cases is amounting to TL 123.753 as at 30 September 2024 (31 December 2023: TL 201.021). For the rest of the cases, Group lawyers commented that basis of those cases are not realistic and should be appealed. Therefore, no provision has been provided for these cases.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

13. FINANCIAL RISK MANAGEMENT AND POLICIES

Market risk

Foreign currency risk

	30 September 2024			31 December 2023
	Total TL				Total TL
	Equivalent	USD	EUR	Other	Equivalent	USD	EUR	Other

1. Trade receivables	2.325.597	50.720	13.978	61.438	2.277.435	56.928	15.762	88.147
2a. Monetary financial assets (Cash and banks accounts included)	3.431.555	56.467	37.492	73.723	6.425.516	66.986	134.670	66.842
2b. Financial Investments (*)	9.701.054	−	−	−	10.635.529	−	−	−
2c. Non-monetary financial assets	−	−	−	−	−	−	−	−
3. Other	−	−	−	−	−	−	−	−
4. Current assets (1+2+3)	15.458.206	107.187	51.470	135.161	19.338.480	123.914	150.432	154.989
5. Trade receivables	−	−	−	−	−	−	−	−
6a. Monetary financial assets	−	−	−	−	−	−	−	−
6b. Non-monetary financial assets	−	−	−	−	−	−	−	−
7. Other	4.173	15	96	−	4.845	20	130	22
8. Non-current assets (5+6+7)	4.173	15	96	−	4.845	20	130	22
9. Total assets (4+8)	15.462.379	107.202	51.566	135.161	19.343.325	123.934	150.562	155.011
10. Trade payables	7.202.654	157.509	46.547	51.520	11.467.880	244.306	128.567	88.023
11. Financial liabilities	14.155.360	272.356	126.593	30.056	28.437.569	787.893	160.432	17.521
12a. Monetary other liabilities	−	−	−	−	−	−	−	−
12b. Non-monetary other liabilities	212	−	6	−	889.695	30.214	8	(11)
13. Short-term liabilities (10+11+12)	21.358.226	429.865	173.146	81.576	40.795.144	1.062.413	289.007	105.533
14. Trade payables	550	−	−	550	613	-	-	613
15. Financial liabilities	44.257.520	730.236	506.000	26.414	42.947.433	963.768	446.365	35.989
16a. Monetary other liabilities	−	−	−	−	−	−	−	−
16b. Non-monetary other liabilities	−	−	−	−	−	−	−	−
17. Long-term liabilities (14+15+16)	44.258.070	730.236	506.000	26.964	42.948.046	963.768	446.365	36.602
18. Total liabilities (13+17)	65.616.296	1.160.101	679.146	108.540	83.743.190	2.026.181	735.372	142.135
19. Net asset / (liability) position of off balance sheet derivative instruments
(19a-19b)	46.012.242	806.333	484.639	−	80.969.188	2.282.924	422.549	(54)
19a. Total asset amount hedged	-	-	-	−	−	−	−	−
19b. Total liability amount hedged	(46.012.242)	(806.333)	(484.639)	−	(80.969.188)	(2.282.924)	(422.549)	54
20. Loans defined as hedging instruments (**)	5.725.710	−	150.000	−	6.638.235	−	203.790	−
21. Net foreign currency asset / (liability) position (9-18+19+20)	1.584.035	(246.566)	7.059	26.621	23.207.558	380.677	41.529	12.822
22. Net asset / (liability) position of foreign currency monetary items
(IFRS 7.B23) (=1+2a+2b+5+6a-10-11-12a-14-15-16a)	(50.157.878)	(1.052.914)	(627.670)	26.621	(63.515.015)	(1.872.053)	(584.932)	12.843

(*) Financial Investments include currency protected time deposits with 180 and 360 days maturity by Group's USD 235.215 and EUR 20.000 of foreign currency deposits.

(**) The Company utilized a loan amounting to EUR 150.000 in order to hedge its net investment in a foreign operation with a EUR functional currency. Foreign exchange gain and/or loss resulting from the subsidiary's net investment portion of this loan is reclassified to reserve for hedge of net investment in a foreign operation under equity.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

13. FINANCIAL RISK MANAGEMENT AND POLICIES (CONTINUED)

Market risk (continued)

Foreign currency risk (continued)

The Group has transactional currency exposures mainly with respect to the financial liabilities and trade payables. Foreign currency denominated borrowings are stated in Note 7.

The following table demonstrates the sensitivity to a reasonably possible change in the USD and EUR exchange rate, with all other variables held constant, of the Group's profit before tax for the year (due to changes in the fair value of monetary assets and liabilities):

			Other comprehensive income
			Depreciation of
			foreign currency

			−
			25.582
(387.902)	723.092	(397.063)	25.582

			−
			(22.050)
(215.123)	215.005	26.799	(22.050)

10.483	(10.483)	−	−
			−
			−
(592.542)	927.614	(370.264)	3.532
8- Hedged portion of other foreign currency (-)	Appreciation of foreign currency (3.592.597) 3.204.695 (2.395.562) 2.180.439 − 10.483	Profit/Loss Depreciation of foreign currency 3.592.597 (2.869.505) 2.395.562 (2.180.557) − (10.483)	Appreciation of foreign currency − (397.063) − 26.799 − −

31 December 2023	Profit/Loss		Other comprehensive income
	Appreciation of	Depreciation of	Appreciation of	Depreciation of
	foreign currency	foreign currency	foreign currency	foreign currency
Appreciation of USD against TL by 10%:
1- USD net asset/liability	(5.599.882)	5.599.882	−	−
2- Hedged portion of USD risk (-)	4.881.075	(4.910.043)	90.586	(93.439)
3- USD net effect (1+2)	(718.807)	689.839	90.586	(93.439)
Appreciation of EUR against TL by 10%:
4- EUR net asset/liability	(1.904.958)	1.904.958	−	−
5- Hedged portion of EUR risk (-)	1.553.836	(1.550.963)	46.384	(18.823)
6- EUR net effect (4+5)	(351.122)	353.995	46.384	(18.823)
Appreciation of other foreign currencies against TL by 10%:
7- Other foreign currency net asset/liability	1.283	(1.283)	−	−
8- Hedged portion of other foreign currency (-)	−	−	−	−
9- Other foreign currency net effect (7+8)	1.283	(1.283)	−	−
Total (3+6+9)	(1.068.646)	1.042.551	136.970	(112.262)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

13. FINANCIAL RISK MANAGEMENT AND POLICIES (CONTINUED)

Explanation on the presentation of financial assets and liabilities at their fair values

The below table summarizes the carrying amounts and fair values of financial asset and liabilities in the Group's consolidated financial statements.

Due to their short-term nature, the fair value of trade and other receivables represents their book value. The fair value of borrowings with fixed interests is obtained by calculating their discounted cash flows using the market interest rate effective at the reporting date. The fair value of foreign currency denominated borrowings with variable interests is obtained by discounting the projected cash flows using estimated market interest rates.

	Carrying amount		Fair value
	30 September 2024	31 December 2023	30 September 2024	31 December 2023
Financial assets
Cash and cash equivalents	8.094.315	18.464.791	8.094.315	18.464.791
Trade and other receivables	27.438.448	23.787.211	27.438.448	23.787.211
(including related parties)
Financial investments (*)	10.059.443	10.873.168	10.059.443(*)	10.873.168 (*)
Derivative financial assets	1.638.290	6.217.396	1.638.290	6.217.396
Financial liabilities
Bank borrowings	43.864.669	45.527.301	44.085.694	46.234.119
Issued debt instruments	23.695.350	41.420.241	24.134.740	41.277.940
Trade payables and other liabilities
(including related parties) (**)	18.832.185	24.186.818	18.832.185	24.186.818
Derivative financial liabilities	663.711	159.561	663.711	159.561

(*) Fair value information of the Group's financial investments other than currency protected deposits are not available. Group's share in financial investments is carried at cost, except venture capital investment funds.

(**) Trade payables and other liabilities item includes trade and other payables, employee benefit obligations and other liabilities contained within other current liabilities. Taxes and other payables contained within employee benefit obligations and advances contained within other current liabilities are excluded.

Fair value hierarchy table

The group classifies the fair value measurement of each class of financial instruments according to the source, using the three-level hierarchy, as follows:

Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)

Level 2: Other valuation techniques includes direct or indirect observable inputs

Level 3: Valuation techniques does not contain observable market inputs

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

13. FINANCIAL RISK MANAGEMENT AND POLICIES (CONTINUED)

Fair value hierarchy table (continued)

Fair value hierarchy table as at 30 September 2024 is as follows:

				Fair Value Measurement
			Quoted Prices in Active Markets	Significant Observable	Significant Unobservable
	Date of Valuation	Total	(Level 1)	Inputs (Level 2)	Inputs (Level 3)
Financial assets measured at fair value:
Derivative Financial Assets:
Cross currency swaps (*)	30 September 2024	1.637.058	−	1.637.058	−
Currency protected time deposit	30 September 2024	9.701.004	−	9.701.004	−
Liquid fund	30 September 2024	78.305	78.305	−	−
Commodity derivative (Copper)	30 September 2024	1.232	−	1.232	−
Financial liabilities measured at fair value:
Derivative Financial Liabilities:
Cross currency swaps (*)	30 September 2024	636.397	−	636.397	−
Futures	30 September 2024	27.082	−	27.082	−
Commodity derivative (Copper)	30 September 2024	232	−	232	−
Other financial liabilities not measured at fair value:
Bank loans	30 September 2024	44.085.694	−	44.085.694	−
Issued debt instruments	30 September 2024	24.134.740	24.134.740	−	−

(*) Cross currency swaps consist of forwards and foreign currency swaps.

The Group specifies the fair value measurement of futures according to the forward exchange rates at the balance sheet date, whereas fair values of cross currency swaps are measured according to the net present value of the estimated future cash flows based on observable yield curves, measurement methods of fair value for derivative financial instruments and issued debt instruments are explained in Note 2.1.

Fair value hierarchy table as at 31 December 2023 is as follows:

				Fair Value Measurement
			Quoted Prices in Active Markets	Significant Observable	Significant Unobservable
	Date of Valuation	Total	(Level 1)	Inputs (Level 2)	Inputs (Level 3)
Financial assets measured at fair value:
Derivative Financial Assets:
Cross currency swaps (*)	31 December 2023	6.156.092	−	6.156.092	−
Futures	31 December 2023	61.304	−	61.304	−
Currency protected time deposit	31 December 2023	10.635.529	−	10.635.529	−
Liquid fund	31 December 2023	218.031	218.031	−	−
Financial liabilities measured at fair value:
Issued debt instruments	31 December 2023	18.116.375	18.116.375	−	−
Derivative Financial Liabilities:
Cross currency swaps (*)	31 December 2023	131.964	−	131.964	−
Futures	31 December 2023	27.569	−	27.569	−
Commodity derivative (Copper)	31 December 2023	29	−	29	−
Other financial liabilities not measured at
fair value:
Bank loans	31 December 2023	46.234.119	−	46.234.119	−
Issued debt instruments	31 December 2023	23.161.565	23.161.565	−	−

(*) Cross currency swaps consist of forwards and foreign currency swaps.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

13. FINANCIAL RISK MANAGEMENT AND POLICIES (CONTINUED)

Capital management policies

The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions.

To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders or return capital to shareholders. No changes were made in the objectives, policies or processes during the years 2024 and 2023.

14. DERIVATIVE FINANCIAL INSTRUMENTS

Cash flow hedges and derivative financial instruments

In the periods in which the cash flows related to the hedged item affect profit or loss, accumulated gain/loss of related hedged instruments in equity are reclassified in profit or loss. As of the three months period ended 30 September 2024, TL 813.484 are reclassified to financial expenses in the statement of profit or loss from gain on cash flow hedges in equity.

Cross currency swap transaction

As of 30 September 2024, fair value of participating cross currency swap transactions amounting to TL 1.484.074 has been recognized under short term derivative financial assets. (31 December 2023: TL 5.620.234 short term derivative financial assets).

	Notional Amount				Fair Value Amount as at 30 September
Company	(USD)	Trade Date	Amendment Date	Terms	2024 (TL)
Türk Telekom	15.490	25 October 2018 - 18 July 2019	11 June 2021	Pay TL and receive USD between April 2019 - April 2025	82.794
Türk Telekom	50.000	17 December 2020		Pay TL and receive USD at February 2025	336.018
Türk Telekom	13.662	27 September 2019 - 6 September 2021		Pay TL and receive USD between March 2020 - September 2025	61.233
Türk Telekom	9.847	13 November 2018 - 19 November 2019	14 June 2021	Pay TL and receive USD between September 2019 - September 2025	50.038
Türk Telekom	50.000	3 June 2024	28 February 2025	Pay TL and receive USD between June 2024 - February 2025	121.307
Türk Telekom	55.000	21 August 2024	28 February 2025	Pay TL and receive USD between August 2024 - February 2025	108.152
Türk Telekom	45.000	13-16 May 2024		Pay TL and receive USD between August 2024 - February 2025	109.617
Türk Telekom	27.273 (*)	27 - 28 March 2018	12 November - 2 December 2020	Pay TL and receive EUR between December 2020 - December 2025	370.221
Türk Telekom	21.325 (*)	18 August 2021		Pay TL and receive EUR between October 2021 - December 2025	150.874
Türk Telekom	14.505(*)	13 August 2021		Pay TL and receive EUR between October 2021 - December 2025	93.820
					1.484.074

(*) Nominal amount of indicated operations are Euro.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

14. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

Cash flow hedges and derivative financial instruments (continued)

Cross currency swap transaction (continued)

Company	Notional Amount (USD)	Trade Date	Amendment Date	Terms	Fair Value Amount as at 31 December 2023 (TL)

Türk Telekom	500.000	30 June 2016 - 3 August 2018	21 October 2020 - 18 February 2022	Pay TL and receive USD at June 2024	3.427.068
Türk Telekom	37.500	14 November 2018	11 - 21 June 2021	Pay TL and receive USD between October 2019 - April 2024	304.864
Türk Telekom	23.230	25 October 2018 - 18 July 2019	11 June 2021	Pay TL and receive USD between April 2019 - April 2025	164.430
Türk Telekom	50.000	17 December 2020		Pay TL and receive USD at February 2025	416.764
Türk Telekom	27.324	27 September 2019 - 6 September 2021		Pay TL and receive USD between March 2020 - September 2025	179.745
Türk Telekom	19.695	13 November 2018 - 19 July 2019	14 June 2021	Pay TL and receive USD between September 2019 - September 2025	131.844
Türk Telekom	36.364 (*)	27 - 28 March 2018	12 November - 2 December 2020	Pay TL and receive EUR between December 2020 - December 2025	587.839
Türk Telekom	26.660 (*)	18 August 2021		Pay TL and receive EUR between October 2021 - December 2025	229.399
Türk Telekom	19.340 (*)	13 August 2021		Pay TL and receive EUR between October 2021 - December 2025	149.510
Türk Telekom	4.873 (*)	27 - 28 June 2019	10 November 2021	Pay TL and receive EUR between September 2019 - September 2024	28.771
					5.620.234

(*) Nominal amount of indicated operations are Euro.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

14. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

Copper hedge transactions

As of 30 September 2024 fair value of participating cross currency swap transactions amounting to TL 1.233 has been recognized under short term derivative financial assets, TL 232 has been recognized under short term derivative financial liabilities (31 December 2023: TL 30 recognized under short term derivative financial asset).

Company	Notional Amount (Tonnes)	Trade Date	Terms	Fair Value Amount as at 30 September 2024 (TL)
Türk Telekom	212	14 April 2024	Pay floating price and receive fixed price at December 2024	(232)
				(232)
Company	Notional Amount (Tonnes)	Trade Date	Terms	Fair Value Amount as at 30 September 2024 (TL)
Türk Telekom	212	4 April 2024	Pay floating price and receive fixed price at October 2024	1.233
				1.233
Company	Notional Amount (Tonnes)	Trade Date	Terms	Fair Value Amount as at 31 December 2023 (TL)
Türk Telekom	72	23 August 2023	Pay floating price and receive fixed price between August - December 2023	(30)
				(30)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

14. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

Cash flow hedges and derivative financial instruments (continued)

USD/EUR Cross Currency Swaps Instruments

Cross Currency swaps instruments which are not designated as hedge

As of 30 September 2024, fair value of derivative transactions amounting to TL 152.983 is recognized under short term derivative financial assets and TL 663.479 is recognized under short term financial liabilities (31 December 2023: TL 597.162 is recognized under short term derivative financial assets and TL 159.531 is recognized under short term financial liabilities).

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 30 September 2024 (TL)
Türk Telekom TTINT Türkiye	20.287 (*) 13.333	16 August 2021 16 June 2016	Pay TL and receive EUR between September 2021 - March 2026 Pay EUR and receive USD between December 2016 and June 2026	128.825 23.606
				152.431

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 31 December 2023 (TL)
Türk Telekom Türk Telekom TTINT Türkiye	29.281 () 27.500 () 13.333	16 August 2021 3 October 2023 16 June 2016	Pay TL and receive EUR between September 2021 - March 2026 Pay USD and receive EUR at January 2024 Pay EUR and receive USD between December 2016 and June 2026	220.864 57.890 45.121
				323.875

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 31 December 2023 (TL)
Türk Telekom	10.000	7 December 2023	Pay EUR and receive USD at January 2024	(9.690)
				(9.690)

(*) Nominal amount of indicated operations are Euro.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

14. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

Cross Currency swaps instruments which are not designated as hedge (continued)

Futures

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 30 September 2024 (TL)
Türk Telekom	55.000	16 September - 18 September 2024	Net TL settlement between October - November 2024 based on the difference between contract price and contract closing price	(25.949)
				(25.949)

	Notional Amount			Fair Value Amount as at 31 December
Company	(USD)	Trade Date	Terms	2023 (TL)
Türk Telekom	196.202	13 November - 19 December 2023	Net TL settlement at January 2024 based on the difference contract price and contract closing price	30.012
TT Mobil	252.692	16 November - 27 December 2023	Net TL settlement between January - February 2024 based on the difference between contract price and contract closing price	31.292

61.304

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 31 December 2023 (TL)
Türk Telekom	90.000	15 November - 28 November 2023	Net TL settlement at January 2024 based on the difference between contract price and contract closing price	(27.569)
				(27.569)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

14. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)

Cross Currency swaps instruments which are not designated as hedge (continued)

Forwards

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 30 September 2024 (TL)

Türk Telekom	15.000	30 September 2024	Pay TL and receive USD October 2024	158
Türk Telekom	15.000(*)	30 September 2024	Pay TL and receive EUR October 2024	394
				552

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 30 September 2024 (TL)

Türk Telekom	397.500(*)	28 June 2024- 30 September 2024	Pay TL and receive EUR between October - December 2024	(219.103)
Türk Telekom	478.000	28 June 2024- 30 September 2024	Pay TL and receive USD between October - December 2024	(389.348)

	Notional Amount			(637.530) Fair Value Amount as at 31 December
Company	(USD)	Trade Date	Terms	2023 (TL)
Türk Telekom	137.500	25 September - 26 December 2023	Pay TL and receive USD between April - March 2024	31.282
Türk Telekom	184.500 (*)	3 October - 22 December 2023	Pay TL and receive EUR between April - March 2024	180.687
Innova	200 (*)	5 December 2023	Pay TL and receive EUR at April 2024	14

12 January ²⁰²⁴ Pay TL and receive USD between October - November 2024 (29.079)

211.983

Company	Notional Amount (USD)	Trade Date	Terms	Fair Value Amount as at 31 December 2023 (TL)
Türk Telekom	314.957	22 September - 27 December 2023	Pay TL and receive USD between April - March 2024	(122.021)
Innova	1.250	5 December 2023	Pay TL and receive USD at April 2024	(251)
				(122.272)

(*) Nominal amount of indicated operations are Euro.

Innova 6.000 ¹¹ January -

Hedge of net investment in a foreign operation

The Company utilized a loan amounting to EUR 150.000 in order to hedge its net investment in a foreign operation with a Euro functional currency. Foreign exchange gain and/or loss resulting from the subsidiary's net investment portion of this loan is reclassified to reserve for hedge of net investment in a foreign operation under equity.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

15. FINANCIAL INVESTMENTS

	30 September 2024	31 December 2023

Short term financial assets
Currency protected time deposit (*)	9.701.004	10.635.529
Long term financial assets
Investment funds (**)	197.239	97.496
Other (***)	161.200	140.143

	10.059.443	10.873.168

(*) Currency protected time deposit accounts are classified as financial assets at fair value through profit or loss.

The Group has converted its foreign currency deposit accounts amounting to USD 215.214 and EUR 20.000 (31 December 2023: USD 244.137 and EUR 20.000) into "Currency Protected TL Time Deposit Accounts". Maturity of currency protected time deposit accounts is between 90-360 days (31 December 2023: 90-360 Days).

(**) It consists of TT Ventures Venture Capital Investment Fund investments of group companies. The fund aims to invest in innovative technology start-ups with global growth potential and to provide financial returns to its investors.

The Group indirectly holds its investment in its subsidiary, which has a significant influence, through its contribution payments to the established Venture Capital Investment Fund. The Group measure this investment at fair value through profit or loss in accordance with TFRS 9.

(***) The amounting to TL 44.937 in other consists of growth equity private equity fund investment.

16. SUPPLEMENTARY CASH FLOW INFORMATION

Other explanations

"Other inflows of cash" in net cash used in operating activities amounting to TL 472.279 (30 September 2023: TL 93.962) represents change in restricted cash (Note 6). "Other outflows of cash, net" in net cash used in financial activities amounting to TL 1.479.491 (30 September 2023: TL 1.349.544) represents change in other financial payment. "Other adjustment for non-cash items" in adjustments to reconcile net profit to cash provided by operating activities amounting to TL 578.160 (30 September 2023: TL 716.591) represents change in TFRS Interpretation 12 of intangible assets.

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

17. TAX ASSETS AND LIABILITIES

	30 September 2024	31 December 2023

Corporate tax payable:
Current corporate tax provision	347.399	370.794
Prepaid taxes and funds (-)	(231.762)	(347.062)

Tax payable	115.637	23.732

Deferred tax assets	7.420.070	11.951.873
Deferred tax liabilities	(184.462)	(307.569)

Deferred tax assets, net	7.235.608	11.644.304

Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, tax liabilities, as reflected in these consolidated financial statements, have been calculated on a separateentity basis.

In Turkey, the corporate tax rate is 25% as of 30 September 2024. As of the three months period ended 30 September 2024, corporate tax provisions have been calculated and accrued at 25% (30 September 2023: %25).

Earnings of the Group that are derived from investments linked to an investment incentive certificate are subject to corporate tax at discounted rates for a certain period, which starts when the investment starts to partly or fully operate, and ends when the maximum investment contribution amount is reached. Within this scope, the Group has accounted for TL 4.993.322 (31 December 2023: TL 3.645.745) of tax advantages as deferred tax assets which are expected to be recovered in the foreseeable future in the consolidated financial statements as of 30 September 2024. TL 40.201 (December - September difference current period effect) of deferred tax income is recognized in the consolidated profit or loss statement for the period between 1 January-30 September 2024 from accounting of such deferred tax assets.

Deferred tax assets are recognized for deductible temporary differences, carry forward tax losses and indefinitelife investment incentives which allows payment of corporate tax at discounted rates, as long as it is probable that sufficient taxable income will be generated in the future. In this context, the Group recognizes deferred tax assets from investment incentives based on long-term plans, including taxable profit projections derived from business models, which are re-evaluated at each balance sheet date to assess recoverability of such deferred tax assets.

The Group expects to recover such deferred tax assets within 2 years from the balance sheet date. In the sensitivity analysis performed as of 30 September 2024, when the inputs of the key macroeconomic and sectoral assumptions that form the business plans are increased/decreased by 10%, there is no change in the projected 2-year recovery periods of deferred tax assets related to investment incentives.

18. SUBSEQUENT EVENTS

None.

AI Terminal

TÜRK TELEKOMÜNİKASYON A.Ş.

5965_rns_2024-11-06_307894eb-0f0e-45e9-a7a9-1ca86dd81277.pdf

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT AS AT AND

FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

(Convenience translation of a report and financial statements originally issued in Turkish) TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

(Convenience translation of a report and financial statements originally issued in Turkish) TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY (CONTINUED)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY (CONTINUED)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

1. REPORTING ENTITY (CONTINUED)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of presentation of the interim condensed consolidated financial statements

a) Statement of compliance with TFRS

Approval of the financial statements:

b) Correction of financial statements during the hyperinflationary periods

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTUNIED)

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)

2.1 Basis of presentation of the interim condensed consolidated financial statements (continued)

c) Basis of measurement

d) Functional and presentation currency

Additional paragraph for convenience translation to English:

e) Significant accounting assessments, estimates and assumptions

Taxes

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

Determination of fair values

i) Trade and other receivables

ii) Forward contracts and interest rate swaps

iii) Issued debt instruments

iv) Other non-derivative financial liabilities

Determination of fair values (continued)

v) Lands

vi) Foreign Currency Protected TL Deposit

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)

2.2 Summary of significant accounting policies

The new standards, amendments and interpretations

i) The new standards, amendments and interpretations which are effective as of 1 January 2024 are as follows:

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

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

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

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (CONTINUED)

2.2 Summary of significant accounting policies (continued)

ii) Standards issued but not yet effective and not early adopted

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

TFRS 17 - The new Standard for insurance contracts

Amendments to TAS 21 - Lack of exchangeability

iii) The amendments which are effective immediately upon issuance

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

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

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

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

Annual Improvements to IFRS Accounting Standards – Volume 11

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

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

IFRS 19 – Subsidiaries without Public Accountability: Disclosures

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

3. SEASONAL CHANGES IN THE OPERATIONS

4. EARNINGS PER SHARE

5. SEGMENT REPORTING

TÜRK TELEKOMÜNİKASYON ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2024

5. SEGMENT REPORTING (CONTINUED)