BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED FINANCIAL STATEMENTS AND REVIEWED AUDITOR'S REPORT AS OF 31 DECEMBER 2023

Key Audit Matters	How the key audit matter was addressed in the audit
Revenue Recognition
The Group's main revenue comes from electricity generation services. This area has been identified as a key audit matter due to the accurate determination of revenues in order to record the revenue of the services and the examination of the periods in which the service deliveries occurred. Revenue accounting principles in the financial statements are explained in detail in Note 2.	While designing audit procedures to address this key audit matter, whether the accounting policies applied by the Group management regarding revenue recognition are in compliance with TAS and relevant legislation have been taken into consideration. In our risk assessment studies, the effectiveness of the internal control procedures designed by the Group regarding revenue were evaluated, the electricity generation services carried out by the Group at the end of the year have been tested by comparing the relevant supporting documents and delivery time slots to verify that the revenue amount related to the revenue on a transaction basis is properly accounted for, on a sample selected from the transactions carried out during the accounting period. As a result of our studies, it has been found that the recognition of revenue is reasonable.
Recognition of Property, Plant and
Equipment The Group has property, plant and equipment amounting to TL 5.618.533.552 in the consolidated statement of financial statement as of December 31, 2023. The accounting policies and details of the Group's property, plant and equipment are disclosed in Note 2 to the consolidated financial statements. In the consolidated financial statements, the Group recognizes its property, plant and equipment over the acquisition costs, Property, plant and equipment other than machinery and equipment are carried at cost less accumulated depreciation and impairment losses, if any, in accordance with TAS 16 "Property, plant and equipment" standard ("TAS 16"). Property, plant and equipment are capitalized from the moment they are brought to the required condition and place in order to operate in line with the management's objectives and begin to be depreciated with their useful lives determined in line with the Group management's projections. Since the total amount of property, plant and equipment has a significant share in the assets of the Group and the useful lives used in the depreciation calculations are based on the estimation of the Group management, the accounting of property, plant and equipment has been considered as a key audit matter. / Cy	- It has been assessed whether the accounting policies regarding the accounting of property, plant and equipment applied comply with TFRS. - The completeness and accuracy of the detailed lists of the property, plant and equipment have been checked matching with the Group's records using the sampling method. - Invoices for purchases of property, plant and equipment were tested using the sample method. - The appropriateness of the estimated useful lives of property, plant and equipment was evaluated on a sample basis, considering the expected economic benefits associated with each asset, and the current year depreciation expenses were tested with the sampling method. - Acquisition costs of property, plant and equipment have been evaluated in consideration of the recognition criteria within the scope of TAS 16. -The appropriateness and adequacy of the explanations included in the notes to the consolidated financial statements regarding property, plant and equipment according to the relevant TFRS has been evaluated. the offxed assets have been reviewed in raccordance with TAS 16; purchase dates and the price index rates used have been verified.

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2023

TABLE OF CONTENTS	Pages
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	1-3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	4-5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	6
CONSOLIDATED STATEMENT OF CASH FLOW	7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	8-69

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

		Audited	Audited
ASSETS	Note	31.12.2023	31.12.2022

CURRENT ASSETS
Cash and Cash Equivalents	4	147.183.250	45.542.874
Trade Receivables		249.313.392	554.327.314
From Non-Related Parties	7	249.313.392	554.327.314
Other Receivables		22.314.726	15.574.689
From Related Parties	5,8	15.911.287	4.992.440
From Non-Related Parties	8	6.403.439	10.582.249
Inventories	9	325.609.416	195.042.076
Prepaid Expenses	10	244.730.936	1.000.694.438
Current period tax assets	27	2.844.317	12.861.797
Other current assets	18	153.890.815	201.192.179
TOTAL CURRENT ASSETS		1.145.886.852	2.025.235.367

NON-CURRENT ASSETS
Investments Accounted for Using Equity Method	31	281.298.380	235.871.105
Investment Properties	12	33.296.023	29.313.104
Tangible Assets	13	4.624.698.182	3.951.794.724
Right of Use Assets	26	116.988.310	93.600.050
Intangible Assets		286.216.044	308.215.652
Goodwill	15	38.694.628	38.694.628
Other Intangible Assets	14	247.521.416	269.521.024
Deferred Tax Asset	27	179.819.444	--
TOTAL NON-CURRENTS ASSETS		5.522.316.383	4.618.794.635

TOTAL ASSETS		6.668.203.235	6.644.030.002

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

		Audited	Audited
LIABILITIES	Note	31.12.2023	31.12.2022

CURRENT LIABILITIES
Short Term Borrowings	6	278.656.497	--
Short Term Portion of Long Term Borrowings		639.902.515	732.995.274
Bank Loans	6	626.747.627	727.816.984
Lease Payables	26	13.154.888	5.178.290
Trade Payables		569.333.440	1.128.761.616
To Non-Related Parties	7	569.333.440	1.128.761.616
Liabilities due to Employee Benefits	17	31.445.877	23.687.193
Other Payables		64.442.252	80.791.573
To Related Parties	5,8	54.401.251	60.061.514
To Non-Related Parties	8	10.041.001	20.730.059
Deferred Income	10	4.489.074	13.383.896
Provision for Period Income Tax	27	350.698	1.671.536
Short Term Provisions		15.634.563	26.528.630
Short Term Provisions For Employee Benefits	16	7.237.423	4.073.483
Other Short Term Liabilities	16	8.397.140	22.455.147
TOTAL CURRENT LIABILITIES		1.604.254.916	2.007.819.718

NON CURRENT LIABILITIES
Long Term Borrowings		2.201.837.256	2.102.586.843
Bank Loans	6	2.152.597.037	2.046.317.393
Lease Payables	26	49.240.219	56.269.450
Long Term Provisions		10.815.493	8.891.053
Long Term Provisions For Employee Benefits	17	10.815.493	8.891.053
Deferred Tax Liabilities	27	--	49.542.414
TOTAL NON CURRENT LIABILITIES		2.212.652.749	2.161.020.310
TOTAL LIABILITIES		3.816.907.665	4.168.840.028

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

		Audited	Audited
EQUITY	Note	31.12.2023	31.12.2022
Equity attributable to equity holders of the parent company		2.839.201.361	2.465.086.578
Paid in capital	19	500.000.000	500.000.000
Inflation Adjustments on Capital	19	1.326.572.810	1.326.572.810
Repurchased Shares (-)	19	(6.333.645)	--
Share Premiums	19	105.427.593	105.427.593
Effect of business combinations under common control	3	(32.184.944)	(32.184.944)
Other comprehensive income (expense) not to be reclassified to profit or loss		(4.660.171)	(1.782.060)
Gain (Loss) on Revaluation Measurement		(4.660.171)	(1.782.060)
- Gain (Loss) on Remeasurement of Defined Benefit Plans	19	(4.660.171)	(1.782.060)
Comprehensive Income or Expenses to be Reclassified to Profit or Loss	19	(971.267.923)	(406.471.405)
-Hedging Gains (Losses)	19	(971.267.923)	(406.471.405)
Restricted Reserves	19	19.580.044	--
Retained Profits	19	953.944.540	396.765.570
Net Profit of the Period	28	948.123.057	576.759.014
Non-Controlling Interests	19	12.094.209	10.103.396
TOTAL EQUITY		2.851.295.570	2.475.189.974
TOTAL LIABILITIES AND EQUITY		6.668.203.235	6.644.030.002

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş. CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIODS 1 JANUARY – 31 DECEMBER 2023 AND 2022

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

		Audited	Audited
	Note	01.01- 31.12.2023	01.01- 31.12.2022

Revenue	20	2.233.028.757	2.337.689.221
Cost of Sales	20	(1.894.746.382)	(1.540.646.477)
GROSS PROFIT (LOSS)		338.282.375	797.042.744
General Aministrative Expenses	21	(323.331.280)	(242.680.466)
Marketing Expenses	21	(1.859.004)	(6.594.417)
Other Operating Income	23	360.531.010	196.095.263
Other Operating Expenses	23	(215.287.560)	(136.955.797)
OPERATING PROFIT (LOSS)		158.335.541	606.907.327
Income from Investmens Activities	24	9.312.086	8.892.051
Expense from Investments Activities	24	(8.413.593)	--
Share of Profit (Loss) of Investments		98.478.927	41.046.254
Valued by Equity Method OPERATING PROFIT (LOSS) BEFORE	31
FINANCIAL INCOME (EXPENSES)		257.712.961	656.845.632
Financial Income	25	176.472.489	208.887.135
Financial Expenses	25	(497.935.416)	(648.022.212)
Monetary Gain/(Loss)	32	991.847.789	467.572.253
PROFIT/ (LOSS) BEFORE TAXATION FROM CONTINUED OPERATIONS		928.097.823	685.282.808
Tax Income/(Expense) from Continued Operations		22.016.047	(108.727.726)
Tax Income/ (Expense) for the Period	27	(875.807)	(26.806.013)
Deferred Tax Income/ (Expense)	27	22.891.854	(81.921.713)
PROFIT/ (LOSS) FOR THE PERIOD		950.113.870	576.555.082
Allocation of Profit/(Loss) For the Period
Attributable to Non-Controlling Interests		1.990.813	(203.931)
Attributable to Equity Holders of the Parent Company		948.123.057	576.759.013
Earnings/Loss Per Share	28	1,90	1,15

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş. CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIODS 1 JANUARY – 31 DECEMBER 2023 AND 2022

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

		Audited	Audited
	Note	01.01- 31.12.2023	01.01- 31.12.2022
PROFIT/ (LOSS) FOR THE PERIOD		950.113.870	576.555.082
Other Comprehensive Income
Not to be Reclassified Subsequently to Profit or Loss		(2.878.111)	(1.782.060)
- Actuarial Gain (Loss) of Defined Benefit Plans	29	(3.837.481)	(2.227.575)
- Tax Effect of Actuarial Gain (Loss) of Defined Benefit Plans	29	959.370	445.515
Be Reclassified Subsequently to Profit or Loss		(564.796.518)	(236.209.942)
-Hedging Gain (Loss)	29	(770.307.151)	(295.262.428)
-Hedging Gain (Loss) deferred tax	29	205.510.633	59.052.486
TOTAL COMPREHENSIVE INCOME		(567.674.629)	(237.992.002)
Allocation of Total Comprehensive Income/(Loss)		382.439.241	338.563.080
Attributable to Non-Controlling Interests		1.990.813	(203.931)
Attributable to Equity Holders of the Parent Company		380.448.428	338.767.011

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS 1 JANUARY – 31 DECEMBER 2023 AND 2022

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

							Other comprehensive income (loss) that will not be reclassified in profit or loss	Other Accumulated Comprehensive Income or Expenses to be Reclassified to Profit or Loss
	Paid in Capital	Inflation Adjustments on Capital	Repurchased Shares (-)	Share Issue Premiums / Discounts	Effect of Mergers Including Enterprises or Businesses Under Common Control	Restricted Reserves	Defined Benefit Plans Remeasureme nt Gains (Losses)	Hedging Gains (Losses)	Profits / Losses of Previous Years	Net Profit/Loss for the Current Term	Equity Belonging to the Main Partners	Non Controlling Interests	Total Equity
Balances as of 01.01.2022	1.826.572.810	1.326.572.810	--	105.427.593	--	--	--	(170.261.463)	395.873.508	--	2.157.612.449	9.842.083	2.167.454.532
Effect of Mergers Involving Entities or Businesses Under Common Control Increase/Decrease in Subsidiaries due	--	--	--	--	(32.184.944)	--	--	--	--	--	(32.184.944)	(9.842.083)	(42.027.027)
to Changes in Proportion of Shares not Resulting in Loss of Control	--	--	--	--	--	--	--	--	892.062	--	892.062	10.307.327	11.199.389
Total Comprehensive Income/Loss	--	--	--	--	--	--	(1.782.060)	(236.209.942)	--	576.759.014	338.767.011	(203.931)	338.563.080
Balances as of 31.12.2022	1.826.572.810	1.326.572.810	--	105.427.593	(32.184.944)	--	(1.782.060)	(406.471.405)	396.765.570	576.759.014	2.465.086.578	10.103.396	2.475.189.974
Balances as of 01.01.2023	1.826.572.810	1.326.572.810	--	105.427.593	(32.184.944)	-	(1.782.060)	(406.471.405)	396.765.570	576.759.014	2.465.086.578	10.103.396	2.475.189.974
Transfers	--	--	--	--	--	19.580.044	--	--	557.178.970	(576.759.014)	--	--	--
Increase (decrease) due to share repurchase transactions	--	--	(6.333.645)	--	--	--	--	--	--	--	(6.333.645)	--	(6.333.645)
Total Comprehensive Income/Loss	--	--	--	--	--	--	(2.878.111)	(564.796.518)	--	948.123.057	380.448.428	1.990.813	382.439.241
Balances as of 31.12.2023	1.826.572.810	1.326.572.810	(6.333.645)	105.427.593	(32.184.944)	19.580.044	(4.660.171)	(971.267.923)	953.944.540	948.123.057	2.839.201.361	12.094.209	2.851.295.570

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

		Audited	Audited
	Note	01.01- 31.12.2023	01.01- 31.12.2022
CASH FLOWS FROM OPERATING ACTIVITIES		1.115.977.276	1.093.051.314
Net Profit / (Loss) for the Period	28	950.113.870	576.555.082
Reconciliation on Profit/Loss for the Period		(260.128.893)	477.551.895
Adjustments related to depreciation and amortization	22	442.597.783	297.767.513
Adjustments Regarding Provisions (Cancellation) for Employee Benefits	16,17	4.746.005	4.856.839
Corrections Regarding Litigation and/or Penalty Provisions (Cancellation)	16	4.600.822	(30.763.301)
Adjustments Regarding Interest (Income) and Expenses Adjustments on Unrealized foreign currency conversion	25 18	218.798.855 --	86.107.320 76.288.371
Adjustments for Fair Value Losses (Gains)	12	(8.621.277)	(2.168.067)
			(41.046.254)
Adjustments Related to Undistributed Earnings of Investments Accounted Through Equity Method	31	(98.478.927)
Adjustments Regarding Tax (Income) Expense	27	(22.016.047)	108.727.726
Adjustmens Regarding Hedging Gain (Loss)	19	(770.307.151)	(295.262.428)
Adjustments for Losses (Gains) on Disposal of Fixed Assets	24	(7.722.784)	(6.723.984)
Adjustments for Monetary Gain/(Loss)		(23.726.172)	279.768.160
Changes in Working Capital		428.188.944	46.128.019
Adjustments for Decrease (Increase) in Trade Receivables	7	305.013.922	(270.110.845)
Adjustments for Decrease (Increase) in Other Operating Receivables	8	(6.740.037)	46.453.530
Adjustments for Decrease (Increase) in Inventories	9	(130.567.340)	(6.490.407)
Decrease (Increase) in Prepaid Expenses	10	755.963.502	(315.157.629)
Adjustments for Increase (Decrease) in Trade Payables	7	(559.428.176)	566.921.083
Increase (Decrease) in Debts within the Scope of Employee Benefits	17	7.758.684	13.018.880
Increase (Decrease) in Other Operations-Non Related Payables	8	(16.349.321)	(51.572.023)
Increase (Decrease) in Deferred Income	10	(8.894.821)	5.745.678
Other Increase (Decrease) in Working Capital		81.432.531	57.319.752
Cash Flows From Operating Activities		1.118.173.921	1.100.234.996
Tax Payments / Refunds	27	(2.196.645)	(7.183.682)
CASH FLOWS FROM INVESTING ACTIVITIES		(976.564.372)	(1.447.809.224)
Subsidiary Acquisition or Disposal		--	(18.709.166)
Investments Valued by Equity Method	31	53.051.652	--
Cash Inflows from Sales of Tangible and Intangible Assets	13,14	16.782.175	18.038.114
Cash Outflows from the Purchase of Tangible and Intangible Assets	13,14	(1.046.398.199)	(1.447.138.172)
CASH FLOWS FROM FINANCING ACTIVITIES		(19.869.435)	229.434.483
Cash Inflows from Borrowing	6,26	205.263.065	315.541.803
Paid/Received Interest	25	(218.798.855)	(86.107.320)
Cash Outflows from Purchase of Own Shares	19	(6.333.645)	--
INFLATION EFFECT ON CASH AND CASH EQUIVALENTS		(17.903.093)	(293.348.992)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		101.640.376	(418.672.419)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	4	45.542.874	464.215.293
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	4	147.183.250	45.542.874

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 1 – GROUP'S ORGANIZATION AND NATURE OF OPERATIONS

Biotrend Çevre ve Enerji Yatırımları Anonim Şirketi ("Company" or "Biotrend") was established on May 5th, 2017 and its main activity is based on biomass resources; production of energy using fermentation, gasification, incineration technologies and operation of solid waste storage areas, mechanical separation plant in these areas, ATY (waste derived fuel) preparation plant, leachate treatment plant, biological treatment (compost, biomethanization) plant, LFG (Landfill Gas), performing the installation and operation of power generation plants, as well as providing engineering, contracting and consulting services in these areas.

Biotrend has an investment in biogas and biomass power plants for waste-to-energy activities, mechanical separation plants, wastewater and leachate treatment plants, ATY and composting plants, anaerobic fermentation units, landfills for integrated waste management, and fuel preparation and supply facilities for biomass plants throughout Turkey. Biotrend has a total of 19 facilities, including 11 integrated waste management and BES (biomass power plant), 6 BES, 1 solid fuel preparation and 1 greenhouse, with ongoing investments.

The Company and its subsidiaries will be collectively referred to as the "Group". Group companies are registered in Turkey. The main shareholders of Biotrend are Doğanlar Yatırım Holding A.Ş. and Maven Energy Electricity Generation Inc. The head office of the Group is located in Kavacık Mah. Ertürk Sk. No: 3/1 Kapı No: 1 Beykoz/İstanbul.

The Company is registered with the Capital Markets Board ("CMB") and its shares are traded on Borsa Istanbul A.Ş. ("BIST") (formerly "Istanbul Stock Exchange") under the name BIOEN since 28.04.2021. As of 31 December 2023, the Company's free float rate is 37.76% (31 December 2022: 37.76%).

As of 31 December 2023, 92 employees work in Biotrend (31 December 2022: 90) and there is a total of 792 workers in the Group. (31 December 2022: 583).

Its Subsidiaries:

The details of the Company's subsidiaries are given below:

Doğu Star Elektrik Üretim A.Ş. (Doğu Star):

Doğu Star was acquired on 17.10.2017. Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. It has 2 prodution facilities in Malatya and 1 production facility in Bursa İnegöl.

Nov Enerji Elektrik Üretim A.Ş. (Nov Enerji):

Nov Enerji was acquired on 17.10.2017. Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul, It has a production facility in Sivas.

Novtek Enerji Elektrik Üretim A.Ş. (Novtek Enerji):

Novtek Enerji was acquired on 17.10.2017. Its main field of activity is electrical energy production. İts head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. It has production facilities in Bursa İnegöl and Hatay İskenderun.

Mersin Elektrik Üretim ve Enerji Yatırımları A.Ş. (Mersin):

Mersin was acquired on 17.10.2017. Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. The production facility is under construc/tion is located in Çanakkale Ezine.

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Yılbatu Elektrik Üretim A.Ş. (Yılbatu):

Yılbatu was acquired on 17.10.2017. Its main field of activity is electrical energy production. Its head office is located in Remzi Oğuz Arık Mah. Atatürk Bulvarı No:211/22 Çankaya/Ankara. The production facility is under construction is located in İzmir Menderes.

İlda Elektrik Üretim A.Ş. (İlda):

Ilda was acquired on 16.10.2018. Its main field of activity is electrical energy production. Its head office is located in Kavacik Mah. Erturk Sk. No: 3/1 iç kapı No: 1 Beykoz/Istanbul. It does not have a production facility and owns 50% of Landfill (Balıkesir).

Ulubey Elektrik Üretim Ve Enerji Yatırımları A.Ş. (Ulubey):

Ulubey was acquired on 15.05.2018. Its main field of activity is electrical energy production. İts head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. Its production facility is located in Aydın Çine.

İzmir Novtek Enerji Elektrik Üretim A.Ş. (İzmir Novtek):

İzmir Novtek was founded on 30.05.2018. Its main field of activity is electrical energy production. İts head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. It has a production facility in İzmir- Harmandalı.

Uşak Yenilenebilir Enerji Elektrik Üretim A.Ş. (Uşak):

Uşak was founded on 06.07.2018. Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. Uşak has a production facility in Ovademirler.

Biyomek Elektrik Enerjisi Üretim San. Ve Tic. A.S. (Biyomek):

Biyomek was acquired on 16.04.2019 Its main field of activity is electrical energy production. Its head office is located in Remzi Oğuz Arık Mah. Atatürk Bulvarı No:211/22 Çankaya/Ankara. It has a production facility in Aydın Çine.

MD Biyokütle Enerji Üretim A.Ş. (MD Biyokütle):

MD Biyokütle was founded on 27.09.2019 Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. The production facility is under construction is located in Aksaray.

İzmir Doğu Star Elektrik Üretim A.Ş. (İzmir Doğu Star):

İzmir Doğu Star was founded on 18.09.2019. Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. It has a production facility in İzmir-Bergama.

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Karya Yenilenebilir Kaynaklar Elektrik Üret.San.Tic. Ltd. Şti. (Karya):

Karya was acquired on 01.07.2020. Its main field of activity is electrical energy production. İts head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. It doesn't own any production facility.

Serenti Enerji A.Ş. (Serenti):

Serenti was founded on 13.08.2020. Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. The production facility is under construction is located in Giresun.

Maven Tarım Seracılık ve Hayvancılık San. Ve Tic. A.Ş. (Maven Tarım):

Maven Tarım was acquired on 16.01.2019. Its main field of activity is vegetable seedlings, fruit seedlings, etc. for planting and upbringing. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. Although the production facility is not active yet, its location is in Sivas.

Biotrend Ayvacık Yenilenebilir Kaynaklar Elektrik Üret.San.Tic. Ltd. Şti. (Biotrend Ayvacık):

Biotrend Ayvacık was founded on 29.04.2021. Its main field of activity is electrical energy production. Its head office is located in adresi Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. The production facility is under construction is located Çanakkale.

Ulutek Elektrik Üretim ve Enerji Yatırımları A.Ş. (Ulutek):

Ulutek was founded on 19.03.2014 Its main field of activity is electrical energy production. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul. The Company shares were transferred to Biotrend Çevre ve Enerji Yatırımları A.Ş on 17.05.2022.

Biotrend Enerji Uluslararası Yatırım A.Ş. (Biotrend Uluslararası):

Biotrend Uluslararası was founded on 30.06.2022. Its main field of activity is invest to electrical power generation plant in abroad. Its head office is located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul.

Doğankent Elektrik Enerjisi Toptan Satış A.Ş. (Doğankent):

Doğankent Elektrik was bought on 16.11.2022. Its main activity is to trade electricity for users excluding brokers and agents. Its head office located in Kavacık Mah. Ertürk Sk. No: 3/1 İç Kapı No: 1 Beykoz/İstanbul.

Biotrend İleri Dönüşüm ve Yenilenebilir Enerji Teknolojileri San. A.Ş. (Biotrend İleri Dönüşüm):

Biotrend İleri Dönüşüm was founded on 09.12.2022. Its main activity is recycling plastic wastes with upcycling technologies of plastic wastes and installation of renewable power plants for domestic consumption.

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

The number of employees is given below:

	Information on employees
Firms	31 December 2023	31 December 2022	31 December 2021
Doğu Star	111	91	77
Nov Enerji	16	15	13
Novtek	18	18	19
Mersin	73	42	14
Yılbatu	2	4	2
İlda	--	--	--
Ulubey	42	42	14
İzmir Novtek	61	65	67
Uşak	66	42	36
Biyomek	45	48	39
Maven Tarım	43	1	--
MD Biyokütle	15	13	7
İzmir Doğu Star	77	64	51
Karya	--	--	--
Serenti	19	19	14
Landfill	106	27	23
Biotrend - Head Office	92	90	50
Biotrend Ayvacık	2	2	2
Ulutek	--	--	--
Biotrend Uluslararası	--	--	--
Biotrend İleri Dönüşüm	4	--	--
Doğankent	--	--	--
Total	792	583	428

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

Its subsidiaries	Main activity	Facility	License Power	Installed Power	Total Installed Power
	Electrical Energy Production	Malatya Unlicensed	-	2,464 MWm / 2,400 Mwe
	Electrical Energy Production	Malatya-1 (Licensed)	2,464 MWm / 2,400 MWe	2,464 MWm / 2,400 Mwe
Doğu Star Elektrik Üretim A.Ş.(*)	Electrical Energy Production	Malatya-2 (Licensed)	4,359 MWm / 4,242 MWe	2,906 MWm / 2,828 Mwe	16,540 MWm / 16,1 MWe
	Electrical Energy Production	İnegöl-2 Biogas	14,51 MWm / 14,14 MWe	8,706 MWm / 8,484 Mwe
Nov Enerji Elektrik Üretim A.Ş.(*)	Electrical Energy Production	Sivas Landfill Gas	2,902 MWm /2,826 MWe	2,902 MWm /2,826 MWe	2,902 MWm /2,826 MWe
	Electrical Energy Production	İskenderun Landfill Gas	4,353 MWm / 4,239 MWe	4,353 MWm / 4,239 MWe
Novtek Enerji Elektrik Üretim A.Ş.(*)	Electrical Energy Production	İnegöl Landfill Gas	2,464 MWm / 2,400 MWe	2,464 MWm / 2,400 MWe	6,817 MWm / 6,639 MWe
Mersin Elektrik Üretim ve Enerji Yatırımları A.Ş.(*)	Electrical Energy Production	Ezine Biomass	31,058 MWm / 30,00 MWe	19,213 MWm / 18,782 MWe	19,213 MWm / 18,782 Mwe
Yılbatu Elektrik Üretim A.Ş.(*)	Electrical Energy Production	Menderes Biogas	24,667 MWm/ 24,038 MWe	-	-
İlda Elektrik Üretim A.Ş.(*)	Electrical Energy Production	Landfıll % 50 Partner	-	-	-
Ulubey Elektrik Üretim Ve Enerji Yatırımları A.Ş.(*)	Electrical Energy Production	Çine Gasoline Preparation	-	-	-
İzmir Novtek Enerji Elektrik Üretim A.Ş.(*)	Electrical Energy Production	İzmir Harmandalı Landfill Gas	40,716 MWm /39,690 MWe	33,176 MWm /32,340 MWe	33,176 MWm /32,340 Mwe
Uşak Yenılenebılır Enerjı Elektrık Üretım A. Ş. (*)	Electrical Energy Production	Uşak Landfill Gas	5,655 MWm /5,498 MWe	4,200 MWm /4,084 Mwe	4,200 MWm /4,084 MWe
Biyomek Elektrik Enerjisi Üretimi San. Ve Tic. A.Ş.(*)	Electrical Energy Production	Çine Biyokütle Power Plant.	14,20 MWm / 13,60 MWe	14,20 MWm / 13,60 MWe	14,20 MWm / 13,60 MWe
Maven Tarım Seracıl ve Hayvancılık San. Ve Tic. A.Ş.(*)	Agriculture, Greenhouse and Livestock	Sivas Greenhouse Constitue Business	-	-	-
MD Biyokütle Enerji Üretim A.Ş.(*)	Electrical Energy Production	Aksaray Landfill Gas	5,804 MWm/5,656 Mwe	1,451 MWm /1,414 MWe	1,451 MWm /1,414 Mwe
İzmir Doğu Star Elektrik Üretim A.Ş.(*).	Electrical Energy Production	İzmir Bergama Lanfill Gas	10,157 MWm / 9,898 MWe	8,706 MWm /8,484 MWe	8,706 MWm /8,484 MWe
Karya Yenılenebılır Kaynaklar Elektrık Üret.San.Tıc.Ltd.Stı.(*)	Electrical Energy Production	Ankara	-	-.	-
Serenti Enerji A.Ş. (*)	Electrical Energy Production	Giresun Lanfill Gas	4,353 MWm / 4,242 MWe	2,902 MWm /2,828 MWe	2,902 MWm /2,828 MWe
Biotrend Ayvacık Yenilenebilir Enerji Elektrik Üretim A.Ş.(*)	Electrical Energy Production	Çanakkale Lanfill Gas	4,353 MWm / 4,242 MWe	-	-

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Its subsidiaries	Main activity	Date of purchase	License Power	Installed Power	Total Installed Power
Ulutek Elektrik Üretim ve Enerji Yatırımları A.Ş. (*)	Electrical Energy Production	17.05.2022	-	-	-
Biotrend Enerji Uluslararası Yatırım A.Ş. (*)	Invest to Electrical Energy power generation plant in abroad	30.06.2022	-	-	-
Doğan Kent Elektrik Enerjisi Toptan Satış A.Ş. (*)	Electricity Trade	16.11.2022	-	-	-
Biotrend İleri Dönüşüm ve Yenilenebilir Enerji Teknolojileri Sanayi A.Ş. (*)	Recycling of plastic wastes with upcycling technologies and installation of renewable energy plants for domestic consumption	09.12.2022	-	-	-

(*) There are consolidated using the full consolidation method

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Financial Investments Valued by Equity Method

Financial Investments Valued by Equity Method	Main Activity	Date of Acquisation	License Power	Installed Power	Total Installed Power	Facility
Landfıll Enerji A.Ş.	Electrical Energy Production	16.10.2018	14,51 MWm / 14,14 MWe	11,608 MWm / 11,312 MWe	11,608 MWm / 11,312 MWe	Balıkesir Landfill Gas

Landfill Enerji A.Ş. (Landfill):

The company was acquired on 16.10.2018. Its main field of activity is electrical energy production. Its head office is located in Remzi Oğuz Arık Mah. Atatürk Bulvarı No:211/22 Çankaya/Ankara. Its production facility is located in Balıkesir.

Approval of Consolidated Financial Statements

Consolidated financial statements for the accounting period 1 January - 31 December 2023 were approved the Board of Directors meeting dated 17 May 2024. Consolidated financial statements will finalized after their approval at the General Assembly.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

Basis of Presentation

The accompanying financial statements are in accordance with the provisions of the Capital Markets Board ("CMB"), Serial II, No. 14.1 "Principles of Financial Reporting in the Capital Markets" ("Communiqué") published in the Official Gazette dated June 13th, 2013 and numbered 28676. It has been prepared in accordance with the Turkish Accounting Standards/Turkish Financial Reporting Standards (TAS/TFRS), which was put into effect by the Accounting and Auditing Standards Authority ("POA"), and their annexes and comments.

Functional and Presentation Currency

The Group keeps its accounting records in TL in accordance with the commercial legislation, financial legislation and the Uniform Chart of Accounts published by the Ministry of Finance. The financial statements are based on legal records and expressed in TL, and have been prepared by subjecting to some adjustments and classification changes in order to adequately present the status of the Group in accordance with the Turkish Accounting Standards published by POA.

The functional and reporting currency of the Company and its subsidiaries is Turkish Lira ("TL"), and all financial information is presented in TL unless otherwise stated.

Financial Reporting in Hyperinflationary Econimics

In accordance with the CMB's decision dated 28 December 2023 and umbered 81/1820, issuers and capital market institutions subject to financial reporting regulations implementing Turkish Accounting/Financial Reporting Standards shall comply with the provisions of TMS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2023. It was decided to apply inflation accounting by applying.

KGK issued a statement on the scope and application of TMS 29 on November 23, 2023. The amendments require an entity that applies Turkish Financial Reporting Standards to present its financial statements for the annual reporting period ending on or after December 31, 2023, adjusted for the effects of inflation in accordance with the related accounting principles in TMS 29.

Accordingly, the consolidated financial statements as of December 31, 2023, December 31, 2022 and 2021 are restated in accordance with TMS 29.

The financial statements and related figures for previous periods have been restated for changes in the general purchasing power of the functional currency and, consequently, the financial statements and related figures for previous periods are expressed in terms of the measuring unit current at the end of the reporting period in accordance with TMS 29 Financial Reporting in Hyperinflationary Economies.

TMS 29 applies to the financial statements, including the consolidated financial statements, of every entity whose functional currency is the currency of a hyperinflationary economy. If an economy is experiencing hyperinflation, TMS 29 requires an entity whose functional currency is the currency of a hyperinflationary economy to present its financial statements in terms of the measuring unit current at the end of the reporting period.

As of the reporting date, entities operating in Turkey are required to apply TMS 29 "Financial Reporting in Hyperinflationary Economies" for the reporting periods ending on or after December 31, 2023, as the cumulative change in the general purchasing power of the last three years based on the Consumer Price Index ("TÜFE") is greater than 100%.

Date Index Adjustment Coefficient Three Years Compound Inflation Rate 31.12.2023 1.859,38 1,000 %268 31.12.2022 1.128,45 1,647 %156 31.12.2021 686,95 2,706 %74

The table below shows the inflation rates for the relevant years calculated based on the Consumer Price Indices published by the Turkish Statistical Institute (TUİK):

Consolidation Principles

Consolidated financial statements include the Company, its subsidiaries and associates accounted for using the equity method. Control is achieved by having control over an entity's financial and operational policies in order to derive benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement after the date of acquisition or up to the date of disposal.

If necessary, accounting policies have been adjusted in the financial statements of its subsidiaries in order to match the accounting policies followed by the Group. All intra-Group transactions, balances, income and expenses have been adjusted in the records during consolidation.

The Company accounts for its investments in its subsidiaries, in which it directly or indirectly owns more than 20% of its shares and has significant influence, according to the equity method. These investments are shown in the consolidated balance sheet by adding or subtracting the post-acquisition changes to the Company's share of the net assets of the subsidiary on top of the acquisition cost and deducting the provision for impairment, if any. The consolidated statement of comprehensive income reflects the Company's share in the results of the activities of the Company's subsidiaries. Changes in the equity of the associate by the amounts that have not yet been reflected in the profit or loss of the associate may also require an adjustment in the book value of the associate in proportion to the Company's share in the associate. The Company's share of these changes is directly accounted for in the Company's own equity.

	Group's shareholding in subsidiary (%)
Subsidiaries	31 December 2023	31 December 2022	31 December 2021	31 December 2020
Doğu Star	100%	100%	100%	100%
Nov Enerji	100%	100%	100%	100%
Novtek	100%	100%	100%	100%
Mersin	100%	100%	100%	100%
Yılbatu	100%	100%	100%	100%
İlda	100%	100%	100%	100%
Ulubey	100%	100%	100%	100%
İzmir Novtek	100%	100%	100%	100%
Uşak	100%	100%	100%	100%
Biyomek (*)	100%	100%	85%	85%
Maven Tarım (**)	50%	50%	100%	100%
MD Biyokütle	100%	100%	100%	100%
İzmir Doğu Star.	100%	100%	100%	100%
Karya	100%	100%	100%	100%
Serenti	100%	100%	100%	100%
Biotrend Ayvacık	100%	100%	100%	100%
Ulutek	100%	100%	--	--
Biotrend Uluslararası	100%	100%	--	--
Biotrend İleri Dönüşüm	100%	100%	--	--
Doğankent	100%	100%	--	--

Subsidiaries are consolidated using the full consolidation method.

(*) The Group has increased its 85% share to 100% in 2022.

(**)Group's share decreased from 100% to 50% in 2022.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Consolidation Principles (Continued)

Financial Investments Valued by Equity Method	Share Rate of the Group on Equity (%)
	31 December 2023	31 December 2022	31 December 2021	31 December 2023
Landfill	50%	50%	50%	50%

Continuity of the Business

The Group has prepared its financial statements in accordance with the going concern principle.

Comparative information and adjusting to previous period dated of financial statements.

The accompanying financial statements are prepared comparatively with the prior period in order to identify trends in the Company's financial position, performance and cash flows. When the presentation or classification of items in the financial statements is changed, prior period financial statements are reclassified accordingly to maintain comparability and disclosures are made regarding these matters.

Accounting estimates are made on the basis of reliable information and reasonable estimation methods. However, estimates are revised if there is a change in the circumstances under which the estimate was made, or if new information becomes available, or if additional developments occur. The effect of a change in an accounting estimate is recognized in the current period in which the change is made, if the change affects only one period, or prospectively in both the current and future periods, if the change affects future periods, in the financial statements in a manner that takes into account in determining the profit or loss for the period.

The nature and amount of any change in an accounting estimate that has an effect on the result of operations in the current period or is expected to have an effect on subsequent periods is disclosed in the notes to the financial statements, except where it is not possible to estimate the effect on future periods.

Reclassifications in the current period financial statements are also applied to the prior period financial statements to maintain consistency where necessary.

The Company has applied consistent accounting policies in the financial statements for the periods presented and there are no significant changes in accounting policies and estimates in the current period except for the changes below.

As of December 31, 2022, TL 22.982.573 in the other discounts account recognized in "Revenue" has been reclassified to "Cost of Sales" account.

New and revised Turkish Financial Reporting Standards ("TFRS")

The new standards, amendments and interpretations

The accounting policies adopted in preparation of the consolidated financial statements as of December 31, 2023 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, 2023 and thereafter. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

i) The new standards, amendments and interpretations which are effective as of January 1, 2023 are as follows:

Amendments to TAS 8 - Definition of Accounting Estimates

In August 2021, POA issued amendments to TAS 8, in which it introduces a new definition of "accounting estimates". The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, the amended standard clarifies that the effects on an accounting estimate of a change in an input or a change in a measurement technique are changes in accounting estimates if they do not result from the correction of prior period errors. The previous definition of a change in accounting estimate specified that changes in accounting estimates may result from new information or new developments. Therefore, such changes are not corrections of errors. This aspect of the definition was retained by the POA. The amendments apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of the effective date. The amendments did not have a significant impact on the financial position or performance of the Group.

Amendments to TAS 1 - Disclosure of Accounting Policies

In August 2021, POA issued amendments to TAS 1, in which it provides guidance and examples to help entities apply materiality judgements to accounting policy disclosures. In the absence of a definition of the term 'significant' in TFRS, the POA decided to replace it with 'material' in the context of disclosing accounting policy information. 'Material' is a defined term in TFRS and is widely understood by the users of financial statements, according to the POA. In assessing the materiality of accounting policy information, entities need to consider both the size of the transactions, other events or conditions and the nature of them. Examples of circumstances in which an entity is likely to consider accounting policy information to be material have been added. The amendments did not have a significant impact on the financial position or performance of the Group.

Amendments to TAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction

In August 2021, POA issued amendments to TAS 12, which narrow the scope of the initial recognition exception under TAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments clarify that where payments that settle a liability are deductible for tax purposes, it is a matter of judgement (having considered the applicable tax law) whether such deductions are attributable for tax purposes to the liability recognised in the financial statements (and interest expense) or to the related asset component (and interest expense). This judgement is important in determining whether any temporary differences exist on initial recognition of the asset and liability. The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability for all deductible and taxable temporary differences associated with leases and decommissioning obligations should be recognized. The amendments did not have a significant impact on the financial position or performance of the Group.

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

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. However, certain disclosure requirements are not required to be applied for any interim period ending on or before 31 December 2023.

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

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. Certain changes in the estimates of future cash flows and the risk adjustment are also recognised over the period that services are provided. Entities will have an option to present the effect of changes in discount rates either in profit and loss or in OCI. The standard includes specific guidance on measurement and presentation for insurance contracts with participation features. In accordance with amendments issued by POA in December 2021, entities have transition option for a "classification overlay" to avoid possible accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented on initial application of TFRS 17.

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

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

In January 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 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 are effective for periods beginning on or after 1 January 2024. The amendments must be applied retrospectively in accordance with TAS 8. Early application is permitted. However, an entity that applies the 2020 amendments early is also required to apply the 2023 amendments, and vice versa.

Overall, the Group expects no significant impact on its balance sheet and equity.

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

In January 2023, POA issued amendments to TFRS 16. The amendments specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. In applying requirements of TFRS 16 under "Subsequent measurement of the lease liability" heading after the commencement date in a sale and leaseback transaction, the seller lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee 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 to annual reporting periods beginning on or after 1 January 2024. Earlier application is permitted. 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 Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

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

The amendments issued by POA in September 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by TFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose. The amendments will be effective for annual reporting periods beginning on or after 1 January 2024. Early adoption is permitted but will need to be disclosed.

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

The following amendments to IAS 21 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Group will make the necessary changes to its consolidated financial statements after the amendments are issued and become effective under TFRS.

Amendments to IAS 21 - Lack of exchangeability

In August 2023, IASB issued amendments to IAS 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 Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.

Changes and Errors in Accounting Policies/Forecasts

Significant changes in accounting policies and significant accounting errors are applied retrospectively and prior period financial statements are restated. Changes in accounting estimates are applied prospectively in the current period when the change is made, if the change is related to future periods, both in the period in which the change is made and in the future period. If the rearrangement of the information causes an excessive cost, the comparative information for the previous periods is not rearranged, and the retained earnings account of the next period is rearranged with the cumulative effect of the error before the said period starts.

Summary of Significant Accounting Policies

Significant accounting policies applied during the preparation of the accompanying financial statements are as follows

Cash and cash equivalents

Cash and cash equivalents include cash on hand, bank deposits and investments with a definite amount, easily convertible into cash, short-term and highly liquid, with an insignificant risk of change in value and with a maturity of less than three months.

Trade receivables

Trade receivables are recorded with their invoiced amounts and are carried with their net value discounted using the effective interest rate method and after deducting the doubtful receivable provision, if any.

Promissory notes and post-dated checks classified under trade receivables are rediscounted using the effective interest rate method and carried with their discounted values.

Provision for doubtful receivables is recorded as expense. If there is a concrete indication that the overdue receivables cannot be collected, provision for doubtful receivables is set by taking into account the guarantees received from the customer. The Company uses the simplified approach in TFRS 9 to calculate the expected credit losses of these financial assets. This method requires the recognition of lifetime expected credit losses for all trade receivables.

Trade payables

Trade payables are recorded at a reduced cost, which represents their fair value, and are carried with. The financial income included in the debts is calculated by considering the maturity of the related debt and the interest rate for the government domestic debt securities in the stock exchanges or other organized markets, and the amounts founded are shown in financial income in the financial statements.

Inventories

Inventories are valued at the lower of cost or net realizable value. Inventory costs are determined using the "first-in, first-out cost method". Cost of inventories; It includes all acquisition costs, conversion costs, and other costs incurred to bring inventories to their current state and location. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs required to make the sale.

Inventories are stated net of finance cost due to forward purchases.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Investment properties

Instead of being used in the production or supply of goods and services or for administrative purposes or being sold in the normal course of business, land or building or building is held (by the owner or by the lessee under a finance lease) for the purpose of earning rental income or for capital appreciation or both. some or both are classified as investment properties.

An investment property is accounted for as an asset if it is probable that future economic benefits associated with the property will flow to the business and the cost of the investment property can be measured reliably.

The fair value of the Group's investment properties has been determined by Lal Gayrimenkul Değerleme ve Müşavirlik A.Ş. ("LAL"), an independent valuation company. According to the valuation reports dated 09.02.2024, 14.02.2024, 16.02.2024 and 20.02.2024, the fair value of the related real estate is calculated as 33.296.023 TL. The valuation difference arising from the revaluation of the real estate is reflected in the income statement in the consolidated financial statements from the previous period.

Tangible fixed assets

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided on restated amounts of property, plant and equipment using the straight-line method based on the estimated useful lives of the assets, except for land due to their indefinite useful life.

The cost value of the property, plant and equipment; The purchase price consists of import duties and non-refundable fixed assets and expenses incurred to prepare the property, plant and equipment for use.

Cost amounts of tangible fixed assets, excluding investments in progress and land, are depreciated over their expected useful lives using the straight-line method. The expected useful life, residual value and depreciation method are reviewed annually for the possible effects of changes in estimates, and if there is a change in estimates, they are accounted for prospectively.

Depreciation is calculated on a pro-rata basis according to the straight-line depreciation method, taking into account the economic lives of tangible fixed assets. The amortization periods are as follows:

Buildings	10-50 years
Machinery, plants and devices	10-20 years
Vehicles	4-5 years
Fixtures	3-10 years

Usual maintenance and repair expenses incurred on a tangible fixed assests are recognized as expenses. Investment expenditures that increase the capacity of the tangible fixed asset and increase the future benefit from it are added to the cost of the tangible fixed asset and depreciated over the remaining estimated useful life of the tangible fixed asset.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

The profit or loss resulting from the disposal of tangible fixed assets is determined by comparing the net balance sheet value with the collected amounts and is shown under the "income/expenses from investment activities" account in the current period.

Revaluation model

Machinery, plant and equipment are presented at fair value less accumulated depreciation. The difference between the cost value and the fair value, net of deferred tax, is followed under the "revaluation funds" account under shareholders' equity. As long as the revalued asset is used, the difference between the depreciation calculated over the revalued amount and the depreciation calculated over the initial cost value is deducted from the revaluation fund after deducting the deferred tax effect and followed by crediting the retained earnings account.

The frequency of revaluation depends on the fluctuation in the fair value of the tangible asset subject to revaluation. If the fair value of the revalued asset differs significantly from its carrying value, the asset is revalued. When tangible asset is revalued, the accumulated depreciation amount on the revaluation date is increased in proportion to the change in the gross carrying value of the asset, so that the carrying value of the asset after revaluation equals its revalued amount.

Intangible assets

Intangible assets consist of EPDK license rights and software rights. Intangible assets are recorded at their acquisition cost. EPDK licenses are amortized on a pro-rata basis using the straight-line depreciation method between 12-49 years and software rights between 3-15 years.

The carrying values of intangible assets are reviewed and the necessary provision is made in case changes in conditions and events give rise to an indication that the carrying value may decrease.

Impairment of assets

For each asset other than deferred tax assets, the Group evaluates at each balance sheet date whether there is any indication that the asset is impaired. If such an indicator exists, the recoverable amount of that asset is estimated. For intangible assets that are not suitable for use, the recoverable amount is estimated at each balance sheet date. If the carrying value of the asset or any cash generating unit of that asset is higher than the amount to be recovered through use or sale, an impairment has occurred. Impairment losses are recognized in the income statement.

An impairment loss on an asset is reversed up to a level that does not exceed the carrying amount of the asset if the subsequent increase in its recoverable amount can be attributed to an event that occurred in the periods following the recognition of the impairment.

Obtained credits and borrowing costs

Bank loans are recorded with their values after the transaction costs are deducted from the amount of loan on the date they are received. Bank loans are shown over the cost value, which is discounted using the effective interest method in the following periods. The difference between the amount remaining after deducting the transaction costs and the discounted cost value is reflected in the income statement as the financing cost during the loan period. Financing costs arising from loans, if they are associated with the acquisition or construction of qualifying assets, are included in the cost of qualifying assets. Qualified assets are assets that take a long time to be ready for use or sale as intended. Other loan costs are recorded in the income statement in the period in which they occur.

Investments held as fixed assets

Investments held as fixed assets is realized when the carrying amount is recovered in a sale transaction and the sale is likely to occur. Assets are classified as investments held as fixed assets when the carrying amount is considered to be recovered through a sale transaction rather than making use of this transaction.

Assets can be a business unit, sales group, or a separate tangible asset. The sale of investments held as fixed assets is expected to occur within 12 months after the balance sheet date. Various events or circumstances may extend the completion period by more than one year. There is insufficient evidence to support that the delay was beyond the control of the entity and the sale of the assets (or group of assets) proceeds on the plan of sale; The delay does not preclude the classification of assets (or disposal groups) as investments held a fixed assets.

Investments held as fixed assets are valued at the lower of book value and fair value. The impairment loss is recognized as an expense in the consolidated income statement for the period, on the date in which its carrying amount is less than its fair value. There is no amortization for these assets.

Financial tools

TFRS 9 regulates the provisions regarding the recognition and measurement of financial assets and financial liabilities. This standard replaces TAS 39 Financial Instruments: Recognition and Measurement.

The applications related to the recognition, classification, measurement and derecognition of financial instruments in TAS 39 are now carried over to TFRS 9. The latest version of TFRS 9 includes applications published in previous versions of TFRS 9, which were released in phases, including a new expected credit loss model for calculating impairment of financial assets, as well as updated applications for new general hedge accounting requirements. TFRS 9 is valid for annual accounting periods beginning on or after January 1st, 2018.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Classification of financial assets and liabilities

TFRS 9 largely retains the existing provisions in TAS 39 for the classification and measurement of financial liabilities. However, the previous TAS 39 classification categories have been removed for financial assets held to maturity, loans and receivables, and financial assets available for sale.

The implementation of TFRS 9 did not have a significant impact on the Company's accounting policies regarding its financial liabilities and derivative financial instruments. The impact of TFRS 9 on the classification and measurement of financial assets is given below.

According to TFRS 9, when a financial asset is recognized for the first time; measured at amortized cost; fair value ("GUD") measured at fair value through other comprehensive income – debt instruments; FPV difference measured through other comprehensive income – equity instruments or the FPV difference measured through profit or loss is classified as. Classification of financial assets within the scope of TFRS 9 is generally based on the business model the entity uses to manage financial assets and the characteristics of the financial asset's contractual cash flows. Within the scope of the standard, the obligation to separate the embedded derivatives from the financial asset has been eliminated, and it should be evaluated how a hybrid contract will be classified as a whole.

A financial asset is measured if both of the following conditions are met and the fair value difference is measured in profit or loss :

Holding the financial asset under a business model aimed at collecting contractual cash flows; and
The contractual terms of the financial asset arise to cash flows on certain dates that include only payments of principal and interest on the principal balance.

A debt instrument is measured at fair value through other comprehensive income if both of the following conditions are met and it is not classified as at fair value through profit or loss:

Holding the financial asset under a business model aimed at collecting contractual cash flows and selling financial assets, and
The contractual terms of the financial asset give rise to cash flows on certain dates that include only payments of principal and interest on the principal balance.

In the initial recognition of investments in equity instruments that are not held for trading, an irrevocable choice may present subsequent changes in fair value in other comprehensive income. The choice of this preference can be made on the basis of each investment. All financial assets that are not measured at amortized cost or at fair value through other comprehensive income are measured at fair value through profit or loss. These include all derivative financial assets. At initial recognition of financial assets, a financial asset is irrevocably recognized at fair value through profit or loss, provided that it eliminates or significantly reduces an accounting mismatch that would result from different measurement of financial assets and related gains or losses. can be defined as measured by reflection.

In the initial measurement of financial assets other than those at fair value through profit or loss (except for trade receivables, which are measured at transaction price at initial recognition and do not have a significant financing component), the transaction costs directly attributable to their acquisition or issuance are added to the fair value.

Impairment of financial assets

With the implementation of TFRS 9, the "Expected Credit Loss" (EXP) model has replaced the "Actual Loss" model in TAS 39. The new impairment model applies to financial assets measured at amortized cost, contract assets and debt instruments measured at fair value through other comprehensive income, but not for investments in equity instruments. In accordance with TFRS 9, credit losses are recognized earlier than TAS 39. Financial assets measured at amortized cost consist of trade receivables, cash and cash equivalents and private sector debt instruments.

Under TFRS 9, loss allowances are measured on any of the following bases:

12 month ECLs: the portion that represents expected credit losses arising from possible default events on the financial instrument within 12 months of the reporting date; and
Lifetime ECLs: expected credit losses arising from all possible default events over the expected life of the financial instrument.

In determining whether the credit risk of a financial asset has increased significantly since initial recognition and in estimating its ECAs, the Company considers reasonable and supportable information available without undue cost or effort regarding the estimation of expected credit losses, including the effects of expected prepayments. This information includes quantitative and qualitative information and analyzes based on the Company's past credit loss experiences and forward-looking information.

Financial liabilities

A financial liability is measured at fair value at initial recognition. During the initial recognition of financial liabilities whose fair value difference is not recognized in profit or loss, the transaction costs directly attributable to the underwriting of the related financial liability are added to the said fair value. Financial liabilities are accounted for at amortized cost using the effective interest method, together with the interest expense calculated over the effective interest rate in the following periods.

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

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are recognized at fair value and revalued at their fair value at the reporting date in each reporting period. The change in their fair value is recognized in the income statement. The net gain or loss recognized in the profit or loss statement also includes the interest paid on the financial liability.

Other financial liabilities

Other financial liabilities, including financial liabilities, are initially recognized at fair value net of transaction costs.They are subsequently accounted for at amortized cost using the effective interest method, together with the interest expense calculated over the effective interest rate.

The effective interest method is the method of calculating the amortized costs of the financial liability and allocating the related interest expense to the related period. Effective interest rate is the rate that exactly discounts estimated future cash payments over the expected value of the financial instrument or a shorter period of time, to the net present value of the financial liability.

Recording Revenues

When the Group fulfills a performance obligation by transferring a promised good or service to its customer, it records the revenue in its financial statements. An asset is transferred when the control of an asset is transferred to the customer.

Grup aşağıda yer alan temel prensipler doğrultusunda hasılatı finansal tablolarına kaydetmektedir:

(a) Determining contracts with customers
(b) Determining performance obligations in the contract
(c) Determining the transaction price in the contract
(d) Allocating the transaction price to the performance obligations in the contract
(e) Recognition of revenue when each performance obligation is satisfied

Sales revenues are recognized on an accrual basis over the fair value of the consideration received or when the product is delivered or the service is rendered, the significant risks and rewards associated with the product have been transferred to the buyer, the amount of revenue can be measured reliably and it is highly probable that the Group will derive economic benefits associated with the transaction. Net sales represent the invoiced value of the product sold or completed service, excluding sales tax, less any discounts and discounts.

Interest income from other incomes obtained by the Group is calculated over the effective interest income method and income is recorded on an accrual basis.

Currency transactions

Transactions in foreign currencies during the period are converted at the exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are converted using the exchange rates prevailing at the balance sheet date. Exchange rate difference income and expenses arising from the convertion of monetary assets and liabilities based on foreign currency are reflected in the income statement.

As of 31 December 2023 and 31 December 2022, the buying rates determined by the Central Bank of the Republic of Turkey are as follows:

EUR/TL	USD/ TL	GBP / TL	CHF / TL


			34,9666
19,9349	18,6983	22,4892	20,2019

			35,1911
19,9708	18,7320	22,6065	20,3316
	32,5739 32,6326	29,4382 29,4913	37,4417 37,6369

Earning per share

Earnings per share stated in the consolidated income statement is determined by dividing the consolidated net profit of the main company by the weighted average number of shares available during the relevant period.

Companies in Turkey can increase their capital by distributing shares to existing shareholders from retained earnings and equity inflation adjustment differences in proportion to their shares ("bonus shares"). When calculating earnings per share, this bonus issue is counted as issued shares. Therefore, the weighted average number of shares used in the calculation of earnings per share is obtained by applying the issue of bonus shares retrospectively from the beginning of the previous reporting period.

Events that occured after the balance sheet date

In the event of an adjustment after the balance sheet date, the Group adjusts the amounts included in the consolidated financial statements in accordance with this new situation. If non-adjusting matters after the balance sheet date affect the economic decisions of users of the financial statements, they are disclosed in the notes to the consolidated financial statements.

Provisions, contingent liabilities and assets

Provisions are recognized when the Group has a legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle this obligation, and the amount to be paid can be reliably estimated. It is determined as a contingent liability if there is a possibility of disposal of resources that provide economic benefits. For contingent liabilities where it is probable that sources of economic interest will be disposed of, contingent liabilities are recognized in the period when the probability changes, unless a reliable estimate can be made.

For contingent liabilities where sources of economic interest are probable, where a reliable estimate cannot be made, the Group discloses this in the footnotes

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

The amount recognized as a provision is the best estimate of the provision that should settle the present obligation as of the balance sheet date, taking into account the risks and uncertainties of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is reflected at the discounted value of those cash flows at the balance sheet date.

Where all the economic benefits required to settle a provision are expected to be received from a third party, the receivable is accounted for as an asset if it is observably certain that the refund will be received and the amount of the receivable can be measured reliably.

Dividends

Dividend payables are recognized as a liability in the separate financial statements in the period in which they are declared as part of the profit distribution.

Rental transactions

Financial leases that transfer all the risks and benefits of ownership of the leased asset to the Group are reflected at the commencement date of the lease based on the lower of the fair value of the leased asset and the present value of the lease payments. Financial lease payments are allocated as principal and finance expense throughout the lease term, generating a fixed periodic interest rate for the remaining debt balance for each period. Financial expenses are reflected directly to the income statement as of periods. Capitalized leased assets are depreciated over the estimated life of the asset.

Variable lease payments

Lease payments arising from some of the Group's lease agreements consist of variable lease payments. These variable lease payments, which are not within the scope of TFRS 16 standard, are recorded as rental expense in the income statement in the relevant period.

Facilitating applications

Short-term lease contracts with a lease term of 12 months or less and contracts for information technology equipment leases determined by the Group as low value have been evaluated within the scope of the exception granted by TFRS 16, "Leases" standard, and payments for these contracts continue to be accounted for as expense in the period in which they are incurred. A single discount rate is applied to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar asset class in a similar economic environment).

Operational Leases

The Group has reflected a right-of-use asset and a lease liability in its financial statements at the commencement date of the lease. The right-of-use asset is calculated initially at cost and subsequently less accumulated depreciation and impairment losses and adjusted for remeasurements of the finance lease liability. At the commencement date of the lease, the lease liability is measured at the present value of the lease payments not paid at that date. Lease payments are discounted using the Group's alternative borrowing rate, if the implied interest rate in the lease can be easily determined, if not easily determined.

Reporting of Cash flow statement

Cash and cash equivalents in the consolidated statement of cash flows include cash on hand and in banks, highly liquid investments with original maturities of 3 months or less, and non-collateral deposits.

In the cash flow statement, cash flows for the period are classified and reported based on operating, investing and financing activities.

Cash flows from operating activities represent the cash flows from the Group's main activities.

Cash flows from investing activities represent the cash flows that the Group uses and receives from its investing activities (asset investments and financial investments).

Cash flows from financing activities show the resources used by the Group in financing activities and the repayments of these resources.

Related parties

A party is considered related to the Group if one of the following criteria is met:

(a) That party, directly or indirectly, through one or more of its intermediaries:
- (i) Controls or is controlled by, or is under common control with the Group (including main partners, subsidiaries and subsidiaries in the same line of business);
- (ii) It has an interest that gives it significant influence over the Group; or ıt has joint control over the Group
(b) The party is an affiliate of the Group,
(c) The party is a joint venture in which the Group is a venturer;
(d) The party is a member of the key management personnel of the Group or its main partner
(e) The party is a close family member of any individual mentioned in (a) or (d);
(f) The Party; is an entity that is controlled, jointly controlled, or under significant influence or in which any individual referred to in (d) or (e) has a significant voting right, directly or indirectly; or
(g) The party must have post-employment benefit plans for employees of the entity or an entity that is a related party.

A transaction with a related party is a transfer of resources, services or obligations between related parties, regardless of whether they are paid for.

Taxes calculated based on corporate income

Corporate tax

Corporate tax is calculated over the taxable portion of the profit for the period. Taxable profit differs from profit reported in the income statement because it excludes items that are taxable or deductible in other years and items that are not taxable or deductible. The Group's corporate tax liability consists of the sum of the tax provisions of the companies included in the consolidation, calculated using the tax rate enacted as of the balance sheet date.

Deffered tax

Deferred tax liability or assets are determined by calculating the tax effects of temporary differences between the amounts of assets and liabilities shown in the financial statements and the amounts taken into account in the calculation of the legal tax base, according to the balance sheet method, taking into account the enacted tax rates. While deferred tax liabilities are calculated for all taxable temporary differences, deferred tax assets consisting of deductible temporary differences are calculated provided that it is highly probable to benefit from these differences by generating taxable profit in the future. The mentioned assets and liabilities are not recognized if they arise from the initial recognition of goodwill or other assets and liabilities (other than business combinations) related to the temporary difference related to the transaction that does not affect the commercial or financial profit/loss.

Deferred tax liabilities are calculated for all taxable temporary differences associated with investments in subsidiaries and associates and interests in joint ventures, unless the Group is able to control the disappearance of temporary differences and it is unlikely that the difference will disappear in the near future. Deferred tax assets arising from taxable temporary differences associated with such investments and interests are calculated on the condition that it is highly probable that the said differences will be benefited from by earning sufficient taxable profit in the near future and it is probable that the related differences will disappear in the future.

The book value of the deferred tax asset is reviewed at each balance sheet date. The carrying amount of the deferred tax asset is reduced to the extent that it is not likely to generate a financial profit sufficient to allow some or all of the benefits to be obtained.

Deferred tax assets and liabilities are calculated over tax rates (tax regulations) that are expected to be valid in the period when the assets will be realized or the liabilities will be fulfilled and that have been enacted or substantially enacted as of the balance sheet date. During the calculation of deferred tax assets and liabilities, the tax results of the methods estimated by the Group to recover the book value of its assets or fulfill its liabilities as of the balance sheet date are taken into account.

Deferred tax assets and liabilities are deducted if there is a legal right to set off current tax assets and current tax liabilities, or if such assets and liabilities are associated with income tax collected by the same tax authority, or if the Group intends to settle current tax assets and liabilities on a net basis.

Corporate tax and deferred tax for the period are recognized as expense or income in the income statement, excluding those associated with items credited or debited directly in equity (in which case deferred tax is also recognized directly in equity) or arising from the initial recognition of business combinations. In business combinations, the tax effect is taken into account when calculating goodwill or determining the portion of the purchaser's share in the fair value of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary exceeding the acquisition cost.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Employee benefits

Defined benefit plan:

In accordance with the current labor law in Turkey, the Group is obliged to pay a certain amount of severance pay to the personnel who quit their job due to retirement after serving at least one year or who are dismissed for reasons other than resignation and misbehavior.

The group uses the "projection" in the attached place according to the table, and the goals of benefiting from the government agencies and calculated from the past, from the references that have passed the evaluation of the personal service uses and evaluations of the people who use it.

Defined contribution plan

The Group pays compulsory social security premiums to the Social Security Institution in Turkey. The Group has no other obligations as long as it pays these premiums. These premiums are reflected in personnel expenses in the period they are accrued.

Unused leave liability

The Turkish Labor Law requires companies to pay their employees who have completed one year of service, and to meet their unused leave rights in case the employees' relationship with the company is terminated. The unused leave entitlement liability includes an estimated maximum wage applied to employees' unused leave.

Business combinations

Business combinations are accounted for using the purchase method within the scope of TFRS 3.The acquirer (acquirer/acquirer) accounts for the identifiable assets, liabilities and contingent liabilities of the acquiree (acquired/acquired) at their fair values at the date of acquisition (merger). Goodwill arising from business combinations is not amortized, but is instead tested for impairment annually or more frequently when impairment is detected.

In a business combination realized in stages, the Group's previously held equity interest in the acquired business is remeasured to its fair value at the acquisition date ( the date the Group takes control) and the resulting gain/loss, if any, is included in the profit/loss statement. Amounts arising from the share of the acquired business recognized in other comprehensive income before the acquisition date are transferred to profit/loss under the assumption that the said interests are disposed of.

Acquisitions from business interests under common control

Business combinations resulting from the transfer of shares of companies controlled by the stakeholder controlling the Group are accounted for as if they had occurred at the beginning of the earliest comparative period presented, if later, on the date of joint control. The acquired assets and liabilities are recorded at the book value previously recorded in the consolidated financial statements of the stakeholders under the control of the Group. Equity items of the acquired companies are added to the same items in the Group's equity, except for the capital, and the resulting profit or loss is recognized in equity.

Significant accounting estimates and assumptions

In the preparation of the consolidated financial statements, the Group management is required to make assessments, assumptions and estimations that will affect the reported amounts of assets and liabilities, determine the possible liabilities and commitments as of the balance sheet date and the amounts of income and expense as of the reporting period. Actual results may differ from estimates. Estimates are reviewed regularly, necessary adjustments are made and reflected in the consolidated income statement in the period they are realized.

The main assumptions made by considering the main sources of the existing or future estimates that may have a material impact on the amounts reflected in the consolidated financial statements are as follows:

Predictions:

Deffered tax

The Group recognizes deferred tax assets and liabilities for temporary timing differences arising from the differences between the tax base legal financial statements and the financial statements prepared in accordance with TFRS. These differences are generally due to the tax base amounts of some income and expense items and the different periods in the financial statements prepared in accordance with TFRS. The Group has deferred tax assets consisting of unused tax losses and other deductible temporary differences that can be deducted from future profits. The partially or wholly recoverable amount of deferred tax assets has been estimated under current conditions. During the evaluation, future profit projections, losses in current periods, expiry dates of unused losses and other tax assets, and tax planning strategies that can be used when necessary are taken into consideration. As a result of the studies, the Group has recognized the deferred tax assets of its subsidiaries due to the belief that the deferred tax can be recovered.

Economic life

Tangible fixed and intangible assets are subject to depreciation and amortization over their estimated economic lives.

Provision for severance pay

Provision for severance pay, has been discounted to its value at the balance sheet date considering the personnel turnover rate, previous years' experiences and expectations.

Lawsuits

While provisions are made for lawsuits, the probability of loss of the relevant lawsuits and the consequences to be incurred in case of loss are evaluated in line with the opinions of the Group's legal advisors, and the Group Management makes provision using the data in its possession.

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 3 – MERGERS OF BUSINESS

2023:

None.

2022:

Ulutek and Biotrend Uluslararası included in consolidation in 2022.
Ulutek and Doğankent has been included in the consolidation in 2022 within the scope of the merger of enterprises or enterprises under common control. It was established by Biotrend Uluslararası subsidiary in 2022 and included in the consolidation.
Biotrend purchased the remaining 15% shares of its subsidiary Biyomek in 2022.

Effect of Mergers Including Enterprises or Business Under Common Control	31 December 2023	31 December 2022
Opening Balance	(32.184.944)	--
Biyomek	--	(30.258.620)
Doğankent	--	(1.926.324)
	(32.184.944)	(32.184.944)

NOTE 4 – CASH AND CASH EQUIVALENTS

	31 December 2023	31 December 2022

Cash on Hand	2.387	7.229
Cash at Banks	147.167.138	45.503.346
- Demand deposits (*)	10.197.815	38.681.683
- Term deposits (**)	136.969.323	6.821.663
Other Liquid Assets	13.725	32.299

	147.183.250	45.542.874

(*) As of 31 December 2023, there is a blockade in the amount of TL 187.639 in current deposits in exchange for loans received. (31 December 2022: There is a blockade of TL 7.314.646).

(**) Term deposit balance consists of overnight deposits with interest rates of 31,00%-32,00%. (December 31, 2022: Interest rates are 12,00% - 17,30% and the average maturity is 8 days).

Explanations on the nature and level of risks in cash and cash equivalents are explained in Note 30.

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 5 – RELATED PARTY EXPLANATIONS

a) Receivables/payables from related parties:

Other Receivables from Related Parties	31 December 2023	31 December 2022

Doğ-Yap İnşaat Tur. Enerji Üretim San. ve Tic. A.Ş.	11.061	42.579
Doğanlar Yatırım Holding A.Ş.	15.499.917	2.388.309
Doğanlar Mobilya Grubu İmalat ve San. Tic. A.Ş.	50.299	447
Landfill Enerji Sanayi Ticaret A.Ş.	150.004	596.196
Doğu Star Elektrik Üretim A.Ş. -
Mimsan Endüstri Kazanları A.Ş. Adi Ortaklığı	--	134.779
Taş Maden Grup Yapı A.Ş.	--	1.071.025
Other	200.006	759.105

Total	15.911.287	4.992.440


Other Payables to Related Parties	31 December 2023	31 December 2022

Landfill Enerji Sanayi Ticaret A.Ş.	19.820.388	44.515.609
Doğanlar Yatırım Holding A.Ş.	19.650.621	8.286.844
Dha Grup İnşaat Tarım Hayvancılık İth. İhr. San. ve Tic.A.Ş.	11.441.902	1.747.630
Doğanlar Mobilya Grubu İmalat ve San. Tic. A.Ş.	2.472.428	4.149.808
Doğ-Yap İnşaat Tur. Enerji Üretim San. ve Tic. A.Ş.	472.001	--
Other	543.911	1.361.623

Total	54.401.251	60.061.514

b) Goods and Services Purchases/Sales:

Purchases from Related Parties	1 January –	1 January –
	31 December 2023	31 December 2022

Doğanlar Yatırım Holding A.Ş.	50.705.922	31.553.627
Landfill Enerji Sanayi Ticaret A.Ş.	2.880.736	7.806.783
Doğanlar Mobilya Grubu İmalat ve San. Tic. A.Ş.	3.749.334	4.109.120
Doğ-Yap İnşaat Tur. Enerji Üretim San. ve Tic. A.Ş.	500.867	3.314.804
Other	--	2.009

Total	57.836.859	46.786.343

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 5 – RELATED PARTY EXPLANATIONS (Continued)

b) Goods and Services Purchases/Sales (Continued):

Sales to Related Parties	1 January – 31 December 2023	1 January – 31 December 2022

Landfill Enerji Sanayi Ticaret A.Ş.	3.612.850	1.481.302
Doğanlar Yatırım Holding A.Ş.	1.863.441	2.807.619
Doğanlar Mobilya Grubu İmalat ve San. Tic. A.Ş.	309.959	738.290
Other	28.763	98.707

	5.815.013	5.125.917

c) The details of remuneration and similar benefits paid to the top management are as follows:

	1 January – 31 December 2023	1 January – 31 December 2022
Remuneration and similar benefits paid to senior management	22.551.036	24.077.496
	22.551.036	24.077.496

Collateral, pledge, mortgage and guarantees are explained in Note 16.

NOTE 6 – FINANCIAL BORROWINGS

	31 December 2023	31 December 2022

Short term borrowings
TL Loans	271.967.775	--
USD Loans	6.308.186	--
Other Short-Term Financial Liabilities	380.536	--

	278.656.497	--

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 6 – FINANCIAL BORROWINGS (Continued)	31 December 2023	31 December 2022

Short Term Portions of Long Term Borrowings
TL bank borrowings	235.657.882	72.364.809
USD bank borrowings	219.680.280	427.331.814
EUR bank borrowings	139.146.827	198.377.073
TL financial leasing	11.762.759	9.073.487
EUR financial leasing	20.499.879	20.669.801
	626.747.627	727.816.984
	31 December 2023	31 December 2022

Long term borrowings
TL bank borrowings	483.647.313	119.309.569
USD bank borrowings	1.139.984.767	1.279.090.563
EUR bank borrowings	516.560.668	623.798.698
TL financial leasing	8.890.856	5.682.945
EUR financial leasing	3.513.433	18.435.618
	2.152.597.037	2.046.317.393
Information on interest rates	31 December 2023	31 December 2022

TL bank borrowings	3,75 - 49,00	7,5 – 28,00
USD bank borrowings	7,00 - 13,30	8,36 – 14,41
EUR bank borrowings	5,00 - 6,50	3,50 – 6,50
The repayment schedule of bank loans are as follows:
	31 December 2023	31 December 2022
0-3 months	169.527.708	179.519.549
3-12 months	703.613.778	518.554.147
1-5 years	1.766.214.609	1.620.328.024
More than 5 years	373.978.139	401.870.806

	3.013.334.234	2.720.272.526
The repayment schedule of financial leasings are as follows:

	31 December 2023	31 December 2022
0-3 months	7.761.750	7.816.370
3-12 months	24.500.889	21.926.918
1-5 years	12.404.289	24.118.563

	44.666.928	53.861.851

CPMs given for financial liabilities are disclosed in Note 16. NOTE 7 – TRADE RECEIVABLES AND PAYABLES

	31 December 2023	31 December 2022
Short term trade receivables
Trade Receivables	258.860.270	554.935.862
Provision for Doubtful Trade Receivables (-)	(9.546.878)	(608.548)
Total	249.313.392	554.327.314

The trade receivables of the Group consist of receivables of the facilities that fall under the Electricity Market Renewable Energy Sources Support Mechanism (YEKDEM) after the agreements made with the municipalities, and the terms of these receivables vary between 7 and 30 days (2022: 7 and 30).

The risks to which the Group's receivables are exposed and the level of risks are explained in Note 30.

The movement of provision for doubtful receivables during the year is as follows:

	31 December 2023	31 December 2022

Balance at the beginning of the period	608.548	--
Increase in provision during the period	9.182.283	--
Effect of subsidiary included in consolidation (Note 3)	--	369.325
Monetary loss/gain	(243.953)	239.223

Total	9.546.878	608.548

Foreign currency balances of trade receivables and payables are disclosed in Note 30 currency risk.

Aging of Trade Receivables	31 December 2023	31 December 2022

Receivable Undue	239.766.514	553.718.766
Receivable Overdue	9.546.878	608.548

	249.313.392	554.327.314

	31 December 2023	31 December 2022
Short term trade payables
Suppliers' current accounts	487.002.762	1.125.814.590
Notes payables	82.330.678	2.947.026

Total	569.333.440	1.128.761.616

A large part of the Group's commercial debts consist of the rents arising from the contracts made with the municipalities, and the average maturity of the commercial debts is 60 days (2022: 60).

NOTE 8 – OTHER RECEIVABLES AND PAYABLES

Other receivables	31 December 2023	31 December 2022

Other receivables from related parties (Note: 5)	15.911.287	4.992.440
Deposits and guarantees given	1.194.604	4.228.406
Other	5.208.835	6.353.843
	22.314.726	15.574.689

Other short term payables	31 December 2023	31 December 2022

Other payables to related parties (Note: 5)	54.401.251	60.061.514
Taxes, duties and fees payable	2.981.834	6.308.394
Restructured tax obligations	4.482.789	13.644.453
Other payables	2.576.378	777.212
	64.442.252	80.791.573

NOTE 9 – INVENTORIES

	31 December 2023	31 December 2022

Raw material and supplies (*)	134.241.623	102.341.660
Other inventories (**)	191.367.793	92.700.416

	325.609.416	195.042.076

(*) Raw materials and supplies will be used for production in the plant is belong to Mersin, Ulubey, Biyomek, Maven, Nov Enerji and İzmir Novtek.

(**) Other inventories are replacement parts to be used for maintenance and repair in the entire plants.

NOTE 10 – PREPAID EXPENSES AND DEFERRED INCOME

Prepaid expenses	31 December 2023	31 December 2022

Advances given (*)	230.722.052	984.660.303
Prepaid expenses	14.008.884	16.034.135

	244.730.936	1.000.694.438

(*) Most of the related amount consists of advances given for electricity generation facilities.

NOTE 10 – PREPAID EXPENSES AND DEFERRED INCOME (Continued)

Short-term deferred income	31 December 2023	31 December 2022

Advances received	1.008.366	13.383.896
Salary promotions	3.480.708	--

	4.489.074	13.383.896

NOTE 11 – FIXED ASSETS/LIABILITIES AVAILABLE FOR SALE

None (31 December 2022: None).

NOTE 12 – INVESTMENT PROPERTIES

	1 January 2023	Consolidation Effect	Disposals	Valuation (*)	31 December 2023
Çanakkale lands	17.548.316	--	(4.638.335)	1.356.042	14.266.023
Sivas lands	11.764.788	--	--	7.265.212	19.030.000

Net book value	29.313.104	--	(4.638.335)	8.621.254	33.296.023

	1 January 2022	Consolidation Effect	Disposals	Valuation (*)	31 December 2022
Çanakkale lands	10.109.639	2.091.541	--	5.347.136	17.548.316
Sivas lands	14.943.857	--	--	(3.179.069)	11.764.788
			--

The fair value of the Group's investment properties has been determined by Lal Gayrimenkul Değerleme ve Müşavirlik A.Ş. ("LAL"), an independent valuation company. 09.02.2024, 14.02.2024, 16.02.2024, 20.02.2024 and 20.02.2024 dated valuation reports, the fair value of the related real estate was calculated.

Collateral, pledge, mortgage and guarantees are explained in Note 16.

NOTE 13 – TANGIBLE FIXED ASSETS
	1 January 2023	Additions	Disposals	Transfers	31 December 2023

Costs
Lands	156.691	5.352.810	--	--	5.509.501
Underground and Overland Plants	119.332.511	101.367.106	--	60.612.087	281.311.704
Buildings	206.743.599	29.470.863	--	341.071.906	577.286.368
Machinery, plant and devices	2.877.555.452	147.007.463	(747.677)	1.249.723.235	4.273.538.473
Vehicles	129.822.181	42.082.590	(5.679.906)	2.438.158	168.663.023
Fixtures	79.313.088	11.198.683	(5.653.302)	5.779.648	90.638.117
Construction in progress	1.042.005.959	713.333.121	(10.862.421)	(1.659.625.034)	84.851.625

	4.454.929.481	1.049.812.636	(22.943.306)	--	5.481.798.811
Accumulated Depreciation
Underground and Overland Plants	2.699.530	9.624.893	--	--	12.324.423
Buildings	13.082.037	13.762.425	--	--	26.844.462
Machinery, plant and devices	427.587.472	296.862.252	(130.843)	--	724.318.881
Vehicles	38.405.261	27.352.667	(4.158.477)	--	61.599.451
Fixtures	21.360.457	12.524.814	(1.871.859)	--	32.013.412

	503.134.757	360.127.051	(6.161.179)	--	857.100.629
Net book value	3.951.794.724				4.624.698.182

The investments currently underway include 33.000.000 TL to MD Biyokütle, 10.000.000 TL to Biotrend İleri Dönüşüm and 29.000.000 TL to Ayvacık. The remaining amount is designated for İzmir Novtek, İzmir Doğustar, and Maven, with completion planned for the year 2024.

NOTE 13 – TANGIBLE ASSETS (Continued)

					Consolidation
	1 January 2022	Additions	Disposals	Transfers	Effect (*)	31 December 2022
Costs
Lands	156.691	--	--	--	--	156.691
Underground and Overland Plants	47.152.318	72.180.193	--	--	--	119.332.511
Buildings	200.074.724	6.668.875	--	--	--	206.743.599
Machinery, plant and devices	2.410.298.337	466.013.906	--	1.243.209	--	2.877.555.452
Vehicles	67.305.950	64.715.583	(2.199.352)	--	--	129.822.181
Fixtures	48.268.898	30.820.542	--	--	223.648	79.313.088
Construction in progress	237.784.338	805.464.829	--	(1.243.209)	--	1.042.005.959
						--
	3.011.041.256	1.445.863.928	(2.199.352)	--	223.648	4.454.929.481
Accumulated depreciation
Underground and Overland Plants	182.513	2.517.017	--	--	--	2.699.530
Buildings	4.127.876	8.954.161	--	--	--	13.082.037
Machinery, plant and devices	225.357.832	202.229.640	--	--	--	427.587.472
Vehicles	13.896.253	24.875.567	(366.559)	--	--	38.405.261
Fixtures	9.988.354	11.148.455	--	--	223.648	21.360.457
	253.552.828	249.724.840	(366.559)	--	223.648	503.134.757
Net kayıtlı değer	2.757.488.428					3.951.794.724

(*) Doğankent has been included in the consolidation in 2022.

Collateral, pledge, mortgage and guarantees are explained in Note 16.

NOTE 14 – INTANGIBLE ASSETS

	1 January 2023	Additions	Disposals	31 December 2023

Costs
Rights	11.862.783	2.867.504	(523.317)	14.206.970
Licenses	415.754.268	1.440.842	--	417.195.110

	427.617.051	4.308.346	(523.317)	431.402.080
Accumulated Depreciation
Rights	5.120.780	1.607.105	(523.269)	6.204.616
Licenses	152.975.247	24.700.801	--	177.676.048

	158.096.027	26.307.906	(523.269)	183.880.664

Net book value	269.521.024			247.521.416

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 14 – INTANGIBLE ASSETS (Continued)

	1 January 2022	Additions	Disposals	Consolidation Effect (*)	31 December 2022

Costs
Rights	10.697.689	2.311	--	1.162.783	11.862.783
Licenses	423.863.593	--	(11.011.473)	2.902.148	415.754.268

	434.561.282	2.311	(11.011.473)	4.064.931	427.617.051
Accumulated Depreciation
Rights	2.952.235	1.042.961	--	1.125.584	5.120.780
Licenses	123.102.537	29.735.434	(1.530.136)	1.667.412	152.975.247

	126.054.772	30.778.395	(1.530.136)	2.792.996	158.096.027
Net book value	308.506.510				269.521.024

(*) Doğankent has been included in the consolidation in 2022.

NOTE 15 – GOODWILL

	31 December 2023	31 December 2022
Goodwill	38.694.628	38.694.628
	38.694.628	38.694.628

Boğazköy Enerji Elektrik Üretim Ticaret Ltd. Şti, Doğu Star Elektrik Üretim A.Ş., Novtek Enerji Elektrik Üretim A.Ş. , Nov Enerji Elektrik Üretim A.Ş. ("Purchased"), Biotrend Çevre ve Enerji Yatırımları A.Ş. ("The Purchaser") as of October 17, 2017, a valuation report has been prepared by an independent institution in order to determine the value of the intangible assets ("These Assets"), whose ownership has been indirectly transferred to the Purchaser. Prior to this acquisition, all of the shares of the acquiree were held by Maven Enerji ("Seller").

Fair value calculations for Tangible Fixed Assets (land-lands, buildings and other tangible fixed assets) are based on Eva Gayrimenkul Değerleme Danışmanlık A.Ş. ("Eva").

Purpose of the Purchase Price Distribution Study, Biotrend Çevre ve Enerji Yatırımları A.Ş. to assist the Board of Directors in allocating the purchase price to the purchased assets, taking into account their fair value, for the purposes of TCC reporting.

Calculations have been made according to the following TFRS guidelines and communiqués: Turkish Financial Reporting Standard No.3 and 3R, Mergers Turkish Accounting Standards No. 36, Impairment of Assets Turkish Accounting Standards No.38, Intangible Assets

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 15 – GOODWILL (Continued)

For the purposes of TFRS reporting standards, Fair Value of an asset or liability is the value at which that asset or liability can be exchanged between two willing parties and for which it can be settled in full under reasonable market conditions.

Some of the calculations are as follows:

• The valuation transaction (PPA) was made on the balance sheet dated 30 September 2017 provided by the Company Management.

• All studies in this calculation (due to data quality and accessibility) were made on 30 September 2017. Although the transaction date is 17 October 2017, 30 September 2017 has been determined as the technical valuation date. It has been concluded that between 17 October 2017 and 30 September 2017, there were no significant events that would affect the value of the Companies.

• The goodwill amount arising from the acquisition is calculated as the difference between the fair values of the assets subject to the valuation reports, the total payment amount foreseen for the sale and the total equity of the acquired company as of 30 September 2017.

Biotrend Çevre ve Enerji Yatırımları A.Ş and its subsidiaries received services from independent valuation firms to determine the fair values of tangible and intangible assets. Assets, liabilities and contingent liabilities determined in accordance with TFRS 3 are recorded at fair value on the day of purchase.

The Group will perform impairment tests annually or more frequently when there is any evidence of impairment. The recoverable value is founded by the usable value calculation. Primary estimations such as discount rate, growth rate, selling prices and direct selling expenses for the calculation period are taken into account in the usable value calculations. The discount rate indicates the prevailing market conditions that affect the time value of money and the specific risks associated with the asset. The Group uses the Weighted Average Cost of Capital as the discount rate. The growth rate is calculated by considering the growth rate of the sector. Sales prices and direct costs are determined by past experience and future projections.

NOTE 16 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

Short-term debt provisions

Other Short Term Provisions	31 December 2023	31 December 2022
Provisions for lawsuit risks	8.397.140	22.455.147
	8.397.140	22.455.147

Short-Term Provisions for Employee Benefits	31 December 2023	31 December 2022
Provision for unused vacation	7.237.423	4.073.483
	7.237.423	4.073.483

NOTE 16 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

Movement of provision for lawsuits:

	31 December 2023	31 December 2022

Balance at the beginning of the period	22.455.147	25.634.989
Increase in provision during the period (Note 23)	1.798.365	4.157.062
Provision for pending litigation	(7.316.830)	--
Monetary loss/gain	(8.539.542)	(7.336.904)

Total	8.397.140	22.455.147

Controversy and litigation

Lawsuits and enforcement proceedings filed by the Group

The total amount of lawsuits filed by the Group is 7.661.470 TL (31 December 2022: 10.481.942 TL).

Lawsuits filed and continuing against by the Group

The amount of lawsuit filed against the Group is 66.337.764 TL (31 December 2022: 41.098.644 TL).

Guarantees and warranties given/received:

The Group's collateral/mortgage/pledge (CPM) position is as follows:

Given CPMs by the Group	31 December 2023	31 December 2022
A. GPM's given for companies own legal personality	9.079.265.570	4.474.917.933
B. GPM's given on behalf of fully consolidated companies	--	--
C. GPM's given for continuation of its economic activities on behalf of third parties	--	--
D. Total amount of other GPM's	254.250.000	418.935.148
i. Total amount of GPM's given on behalf of the majority shareholder	254.250.000	418.935.148
ii. Total amount of GPM's given to on behalf of other group companies which are not companies which are not in scope of B and C iii. Total amount of GPM's given on behalf of third parties	-- --	-- --
which are not in scope of C
Total	9.333.515.570	4.893.853.081

The ratio of other CPMs given by the Group to the Group's equity is 13% as of 31 December 2023 (31 December 2022: 17%).

NOTE 16 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

Pledge of Shares Pleadings of Mercantile Business Assignment of Claims Letter of Guarantee




Letter of Guarantee
Pledge

Total

Type
Guarantees

Maven Tarım has obtained loans with guarantees from Doğanlar Yatırım Holding A.Ş., Biotrend, and Dha Grup İnşaat Tarım Hayvancılık Lojistik İth. Hr. San. and Tic. A.Ş.

There are bank blockage, business pledge, share pledge, assignment of receivables on real estates for the loans taken. In addition, Doğan family, sole proprietorships, Doğanlar Yatırım Holding A.Ş. and all subsidiaries have sureties.

The parent company of the Group, Doğanlar Yatırım Holding A.Ş., has a receivable assignment of 254.250.000 TL on EPİAŞ receivables of Novtek Enerji Elektrik Üretim A.Ş., which is a subsidiary for the loans used from Halkbank in 2021.

As of December 31, 2023, there are operating pledges and mortgages given on the property, plant and equipment of the Group (December 31, 2022: Operating pledges and mortgages).

All of the shares of Nov Energy, Novtek Energy, Doğustar, İzmir Doğustar, MD Biomass and Mersin Elektrik, which are among the companies of the Group, to TSKB ,the shares of the Biomek company to Halkbank., All shares of Uşak and İzmir Novtek companies are pledged to Denizbank. 37.555.925,85 TL of the shares of Biotrend company were pledged to TSKB and 30.089.842,17 TL to the European Bank for Reconstruction and Development.

The collateral and mortgage information received is as follows;

Type	31 December 2023	31 December 2022

Letter of guarantee	405.539.991	346.841.202
Promissory notes	9.405.382	6.155.356
Promissory checks	149.000.939	177.865.308

Total	563.946.312	530.861.866

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 17 – EMPLOYEE BENEFITS

Short Term	31 December 2023	31 December 2022

Wages payables to staff	14.767.692	12.001.257
Social security premiums payable	12.878.872	8.238.644
Tax payables	3.799.313	3.447.292

	31.445.877	23.687.193

Uzun vadeli çalışanlara sağlanan faydalar (Kıdem tazminatı karşılığı)

Pursuant to provisions of the Labor Law in force, employees whose employment contracts are terminated to qualify for severance pay are obliged to pay the legal severance pay they are entitled to. In addition, in accordance with the provision of Article 60 of the Social Insurance Law No. 506, which is still in effect, as amended by the Laws No. 2422 of March 6, 1981 and Law No. 4447 of August 25, 1999, those who receive the severance pay and have the right to leave the job are obliged to pay the statutory severance pay.

The severance pay to be paid as of 31 December 2023 has been calculated from the ceiling of 35.058,58 TL (31 December 2022: 19.982,83 TL). Severance pay liability is not legally subject to any funding.

Severance pay liability is calculated by estimating the present value of the Group's possible future obligation arising from the retirement of employees. In accordance with TAS 19, "Employee Benefits", the company's obligations are to be developed using actuarial valuation methods within the scope of defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of total liabilities are as follows:

	31 December 2023	31 December 2022
Annual discount rate (%)	3,25%	2,92%
Probability of retirement (%)	100,00%	100,00%

Transactions concerning the provision for severance pay during the year are as follows:

Severance Pay	31 December 2023	31 December 2022

Balance at the beginning of the period	8.891.053	4.717.677
Payments	(4.220.607)	(9.964)
Interest cost	157.562	83.639
Current service cost	5.645.111	3.717.892
Actuarial (gain) /loss	3.837.481	2.227.575
Monetary (gain) /loss	(3.495.107)	(1.845.767)

	10.815.493	8.891.053

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 18 – OTHER ASSETS AND LIABILITIES

Other Assets	31 December 2023	31 December 2022

Deferred VAT	126.557.919	200.327.816
Work advances	577.409	487.505
Revenue accrual (*)	24.901.159	--
Other	1.854.328	376.858

	153.890.815	201.192.179

(*) The related amount arises within the scope of providing connection services to the distribution system of the facilities within the scope of the contracts.

NOTE 19 - CAPITAL, RESERVES AND OTHER EQUITY ITEMS

The Group's share capital is TL 500.000.000, divided into 500.000.000 registered shares with a nominal value of TL 1 each and one voting right (December 31, 2022: 500.000.000 shares). The application to increase the paid-in capital of the Group from TL 150.000.000.000 to TL 500.000.000.000 has been approved by the Capital Markets Board's decision dated 11.11.2021 and numbered 59/1641 and became effective after being published in the Turkish Trade Registry Gazette dated 24.11.2021 and numbered 10458.

The Group started to be traded in Borsa Istanbul on 28.04.2021. As of 31.12.2023, the free float rate of the company was 37,76% (31.12.2022: %37,76).

	31 December 2023		31 December 2022
	Rate	Amount	Rate	Amount

Doğanlar Yatırım Holding A.Ş.	54,50%	272.490.421	54,49%	272.440.421
European Bank For Reconsrtruction And Development	5,91%	29.574.693	5,91%	29.574.693
Other	39,59%	197.934.886	39,60%	197.984.886
	100%	500.000.000	100%	500.000.000

50 BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 19 - CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Continued)

Statutory reserves and special reserves, etc., classified under "Legal Reserves" and "Other Reserves", including "Capital Adjustment Differences", "Premiums (Discounts) on Shares" (Emission Premium) in the financial statements prepared in accordance with the CMB legislation, Starting from the TFRS balance sheets for the reporting period ending in 2023, it has been shown over the CPI, and in the TPC financial statements over the PPI.

	PPI Indexed Statutory Records	CPI Indexed Amounts	Difference Recorded Under Retained Earnings
Inflation Adjustments on Capital	1.490.735.947	1.326.572.810	(164.163.137)
Share Premiums/Discounts	194.075.976	105.427.593	(88.648.383)
Restricted Reserves	19.319.793	19.580.044	260.251
Total	1.704.131.716	1.451.580.447	(252.551.269)

Profit Distribution

Partnerships distribute their profits within the framework of the profit distribution policies to be determined by their general assembly and in accordance with the provisions of the relevant legislation, with the decision of the general assembly.

The Group did not pay dividends in 2023 (2022: None).

Profit/Loss On Previous Years

The Group has retained earnings of 953.944.540 TL (31 December 2022: TL 396.765.570).

Defined Benefit Plans Remeasurement Gains (Losses)

The Group has remeasurement losses of defined benefit plans amounting to 4.660.171 TL (31 December 2022: 1.782.060 TL).

Hedging Gains/Losses

The Group has hedging losses of 971.267.923 TL (31 December 2022: 406.471.405 TL).

Restricted Reserves

The Group has restricted reserves amounting to 19.580.044 TL (31 December 2022: None).

Hedging Gains/Losses

As of December 31, 2023 and 2022, Other Comprehensive Income and (Expenses) to be Reclassified to Profit or Loss are as follows:

	31 December 2023	31 December 2022
Gain / Loss on Cash Flow Hedges	(971.267.923)	(406.471.405)
Total	(971.267.923)	(406.471.405)

51 BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 19 - CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Continued)

Hedging Gains/Losses (Continued)

The Group hedges its foreign currency risk on the balance sheet by borrowing in the same currency against the foreign currency risks arising from the highly probable foreign currency sales amounts to be realized in the future within the scope of the agreements and corporate budget.

In this context, the repayments of foreign currency borrowings, which are subject to hedge accounting and designated as hedging instruments, are made with foreign currency sales cash flows that will be realized on close dates and designated as hedged items within the scope of hedge accounting.

Within the scope of the Group's foreign currency risk management strategy, the Group applies hedge accounting to hedge the foreign currency risk component of the highly probable forecast transaction cash flow risk and aims to present a healthier income statement presentation by withdrawing the foreign currency fluctuations that have occurred on the hedging instrument, whose effectiveness has been mathematically proven in accordance with TFRS 9 and have not yet been realized, from the income statement and recognized in the statement of comprehensive income.

The Company strives to maintain a hedge ratio of around 100% and hedge effectiveness between 70% and 130% within the scope of hedge accounting, and as of December 31, 2023, the hedge ratio is calculated as 110% (December 31, 2022 - 112%) and hedge effectiveness is calculated as 90% (December 31, 2022 - 91%).

	31 December	31 December
TL	2023	2022
Cumulative foreign exchange differences on the hedged item
(current portion)	221.833.661	149.307.721
Cumulative foreign exchange differences on the hedged item (non
current portion)	986.229.291	474.428.369
Cumulative foreign exchange differences on hedging instruments
(current portion)	(255.889.150)	(171.161.731)
Cumulative foreign exchange differences on hedging instruments
(non-current portion)	(827.447.653)	(413.567.448)
Hedge effectiveness ratio	90%	%94
Non-activity amount within the activity band recorded in the
balance sheet	--	(2.519.380)
Non-effectiveness amount within the activity band left in the
income statement	1.315.391	--

	31 December	31 December
TL	2023	2022
Total amount of future cash flows of the hedged item
	2.629.130.401	2.337.929.059
Total amount of future cash flows of the instrument used for
hedging	2.388.327.575	2.080.606.819
Hedging Ratio	110%	112%

52 BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 19 - CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Continued)

With the change in TAS-19 "Employee Benefits" standard, actuarial loss and gains, which are taken into account in the calculation of the provision for severance pay, do not allow to be recognized in the income statement. Losses and gains resulting from changes in actuarial assumptions are accounted for under equity.

Severance pay provision actuarial loss/gain fund is not reclassified to profit or loss.

Premiums on Shares (Discounts)

	31 December 2023	31 December 2022

Premiums on shares / (discounts)	149.214.172	149.214.245
Expenses of public offering transactions	(43.786.579)	(43.786.600)
	105.427.593	105.427.645
Non-controlling interests

	31 December 2023	31 December 2022

Beginning of the term ı	10.103.396	9.842.082
Minority cancellation (*)	--	(9.842.082)
Affiliate impact (**)	--	10.307.327
Net profit/loss for the period	1.990.813	(203.931)

(*) The remaining 15% shares of Biyomek were purchased in 2022.

(**) Maven Tarım shareholding rate has decreased to 50%.

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 20 – REVENUE AND COST OF SALES

Sales	01.01- 31.12.2023	01.01- 31.12.2022

Electricity generation and wholesale revenue	2.207.573.213	2.501.573.325
Carbon emission certification right sales revenue (*)	67.725.976	156.574.502
Decomposition revenues	29.688.409	53.794.846
Waste disposal revenues	11.805.464	11.411.795
Other	72.551.357	52.950.112
Discounts and discounts from sales	(156.315.662)	(438.615.359)

Total	2.233.028.757	2.337.689.221

(*) Organic waste and biomass plants generate electricity from renewable energy sources; so, they are able to issue emission reduction certificates because they do not emit CO2 into the atmosphere. The corresponding revenues come from the sales of these acquired certificate rights.

Cost of sales	01.01- 31.12.2023	01.01- 31.12.2025
Cost of sales	(1.894.746.382)	(1.540.646.477)
	(1.894.746.382)	(1.540.646.477)
	01.01- 31.12.2023	01.01- 31.12.2022
Rental expenses (*)	572.081.628	670.546.535
Costs of incinerated product	292.749.402	166.438.556
Personnel expenses	280.503.597	160.480.419
Depreciation and amortization expenses	294.395.733	190.674.048
Fuel expenses	105.219.354	110.241.200
Costs of Transport	71.052.538	49.378.416
Maintenance and repair expenses	48.137.603	50.973.819
System usage fee	79.685.825	34.442.855
Electricity expenses	39.052.419	37.044.939
Security service expenses	24.475.780	17.584.363
Consulting expenses	17.454.387	13.688.623
Material expenses	15.449.917	17.202.097
Insurance expenses	12.125.289	5.791.514
Other	42.362.910	16.159.093

1.894.746.382 1.540.646.477

(*) Lease expenses consist of excluded lease payments due to variable lease liabilities within the scope of TFRS 16 "Leases" standard.

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 21 - OPERATING EXPENSES

General administrative expenses	01.01- 31.12.2023	01.01- 31.12.2022

Depreciation expenses	148.202.050	107.093.465
Personnel expenses	110.806.790	71.987.670
Consulting expenses	14.068.088	8.846.605
Travel expenses	9.553.055	8.183.323
Non-recognized expenses	9.073.931	9.765.202
Legal and consultancy expenses	3.715.781	3.997.086
Vehicle expenses	10.774.412	15.792.357
Chamber and subscription expenses	2.090.096	814.500
Communication expenses	2.015.524	2.498.694
Representation and hospitality expenses	1.289.478	884.632
Rent expenses	5.637.982	3.705.139
Other	6.104.093	9.111.793
	323.331.280	242.680.466
Marketing expenses	01.01- 31.12.2023	01.01- 31.12.2022

Advertising and marketing expenses	1.712.909	5.473.671
Consulting expenses	121.317	813.894
Other	24.778	306.852
	1.859.004	6.594.417

NOTE 22 – EXPENSES ACCORDING TO THEIR QUALITIES

Personnel expenses	01.01- 31.12.2023	01.01- 31.12.2022

Cost of sales	280.503.597	160.480.419
General administrative expenses	110.806.790	71.987.671
	391.310.387	232.468.090

Depreciation expenses	01.01- 31.12.2023	01.01- 31.12.2022

Cost of sales	294.395.733	190.674.048
General administrative expenses	148.202.050	107.093.465
	442.597.783	297.767.513

55 BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 22 – EXPENSES ACCORDING TO THEIR QUALITIES (Continued)

Fees for Services Obtained from Independent Auditor/Independent Audit Firm:

The description of the Group's fees for services rendered by independent audit firms, prepared in accordance with the resolution of the Board of Directors of POA published in the Official Gazette of March 30, 2021 and in accordance with the preparation principles based on the letter of POA dated August 19, 2021, is as follows:

	01.01.- 31.12.2023	01.01.- 31.12.2022
Independent audit fee for the reporting period	1.460.000	617.898
Total	1.460.000	617.898

NOTE 23 - OTHER OPERATING INCOME/EXPENSES

Income from operating operations	01.01- 31.12.2023	01.01- 31.12.2022

Foreign exchange gains	317.707.394	179.164.710
Provisions no longer required in lawsuits	7.316.830	--
Salary promotion income	1.787.379	--
Other	33.719.407	16.930.553

	360.531.010	196.095.263

	01.01-	01.01-
Expenses from operating operations	31.12.2023	31.12.2022

Foreign exchange losses	(198.938.654)	(116.443.864)
Provision for doubtful receivable	(9.182.283)	--

Provisions for litigation	(1.798.365)	(6.845.867)
Other	(5.368.258)	(13.666.066)

NOTE 24 – INCOME / EXPENSES FROM INVESTMENT ACTIVITIES

Income from investment activities	01.01- 31.12.2023	01.01- 31.12.2022
Increase in value of investment property (Not 12)	8.621.277	2.168.067
Profit on sale of fixed asset	690.809	6.723.984
	9.312.086	8.892.051

NOTE 24 – INCOME / EXPENSES FROM INVESTMENT ACTIVITIES (Continued)

Expenses from investment activities	01.01- 31.12.2023	01.01- 31.12.2022
Loss on sale of fixed asset	8.413.593	--
	8.413.593	--

NOTE 25 - FINANCIAL INCOME AND EXPENSES

Financial income	01.01- 31.12.2023	01.01- 31.12.2022

Foreign exchange gains	100.274.084	201.883.187
Interest income	76.198.405	7.003.948

	176.472.489	208.887.135
	01.01-	01.01-
Financial expenses	31.12.2023	31.12.2022

Interest expenses	(294.997.260)	(93.111.269)
Foreign exchange losses	(142.918.078)	(536.625.635)
Interest number expenses	(44.430.537)	(5.713.827)
Interest expenses on lease payables	(10.765.748)	(8.033.141)
Bank and letter of guarantee commissions	(4.823.793)	(4.538.340)
	(497.935.416)	(648.022.211)

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 26 – RENTAL TRANSACTIONS

Right of Use Assets

	1.01.2023	Additions	Disposals	31.12.2023
Electricity Generation Facility	93.193.833	21.613.702	--	114.807.535
Vehicles	26.353.333	39.424.789	(6.256.848)	59.521.274
Buildings	--	19.051.093	--	19.051.093

	119.547.166	80.089.584	(6.256.848)	193.379.902
Minus: Accumulated depreciation
	1.01.2023	Additions	Disposals	31.12.2023
Electricity Generation Facility	(12.228.534)	(8.087.893)	--	(20.316.427)
Vehicles	(13.718.582)	(44.264.714)	5.718.350	(52.264.946)
Buildings	--	(3.810.219)		(3.810.219)

	(25.947.116)	(56.162.826)	5.718.350	(76.391.592)

Net book value	93.600.050	23.926.758	(538.498)	116.988.310
Right of Use Assets
	1.01.2022	Additions	Disposals	31.12.2022
Electricity Generation Facility	155.570.536	30.980.908	(93.357.611)	93.193.833
Vehicles	21.397.616	5.239.003	(283.286)	26.353.333

	176.968.152	36.219.911	(93.640.897)	119.547.166

Minus: Accumulated depreciation

	1.01.2022	Additions	Disposals	31.12.2022
Electricity Generation Facility	(8.885.004)	(9.685.452)	6.341.921	(12.228.535)
Vehicles	(6.242.053)	(7.578.826)	102.298	(13.718.582)
	(15.127.057)	(17.264.278)	6.444.219	(25.947.116)

Net book value	161.841.096	18.955.633	(87.196.679)	93.600.050


Liabilities Arising from Leasing Transactions		31 December 2023		31 December 2022

Short Term Lease Obligation		13.154.888		5.178.290
Long Term Lease Obligation			49.240.219	56.269.450

62.395.107 61.447.740

58 BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 27 – INCOME TAXES (TAX ASSETS AND LIABILITIES)

Corporation tax

Necessary provisions have been made in the accompanying consolidated financial statements for the estimated tax liabilities of the Group regarding the current period operating results.

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

Provisional tax is calculated and accrued on a quarterly basis in Turkey. For the taxation of corporate profits in 2023, the provisional tax rate to be applied on corporate profits is 25% per quarter (2022: 23%). Losses can be carried forward for up to 5 years to be deducted from taxable profits in future years. However, losses cannot be deducted from profits generated in previous years retrospectively.

There is no practice of agreeing with the tax authority on the taxes to be paid in Turkey. Corporate tax returns are required to be filed until the evening of the last day of the fourth month following the close of the accounting period. However, the tax authorities may examine the accounting records within five years and the amount of tax payable may change if incorrect transactions are detected.

In addition to corporate tax, income tax withholding must be calculated separately on dividends, excluding those distributed to full-fledged corporations and foreign companies' branches in Turkey, which receive dividends in case of distribution and declare these dividends by including them in corporate income. Income tax withholding is applied as 10%.

Corporate tax liabilities reflected in the balance sheet are as follows:

Current tax liability	31 December 2023	31 December 2022

Corporation tax	875.807	26.806.013
Prepaid tax and fund amount	(525.109)	(25.134.477)

Corporate tax payable	350.698	1.671.536

Gru The tax income/(expenses) reflected in the income statement of the Group are as follows;

Tax expenses/(income)	01.01- 31.12.2023	01.01- 31.12.2022

Current corporate tax	(875.807)	(26.806.013)
Deferred tax (income) / expenses	22.891.854	(81.921.713)
	22.016.047	(108.727.726)

Assets related to current period tax consist of prepaid taxes and funds. The balance on 31 December 2023 was about 2.844.317 TL (31 December 2022: 12.861.797 TL).

59 BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.) NOTE 27 – INCOME TAXES (TAX ASSETS AND LIABILITIES) (Continued)

Deferred taxes

The Group calculates the planned tax for the timing basis that can be taken into account in relation to taxable local currency tables and tables prepared in accordance with TAS/TFRS. The income and expense items related to themain table are different from the basis of financial statements and the relative table in TFRS.

The tax rate used in the calculation of deferred tax assets and liabilities is about 25% (2022: 20%).

The transactions of the Group's deferred tax assets/liabilities are as follows;

	31 December 2023	31 December 2022

Usable financial loss	261.094.833	74.516.447
Adjustments to litigation provision	2.099.285	4.491.029
Adjustments to financial borrowings	4.298.501	3.476.801
Severance pay	2.703.873	1.778.211
Unused leave allowances	1.809.356	814.697
Valuation of investment property	(7.060.638)	(2.516.867)
Adjustments to leasing transactions	(13.648.300)	(6.680.209)
Adjustments to prepaid expenses	(6.135.768)	(19.630.858)
Tangible / intangible asset adjustments	(60.863.034)	(106.589.386)
Adjustments to accounts receivable	2.225.167	37.362
Adjustments forward income accrual	(6.225.290)	--
Other	(478.541)	760.359

	179.819.444	(49.542.414)

Transaction table:	31 December 2023	31 December 2022

As of January 1	(49.542.414)	(27.118.702)
Deferred tax expense / (income) recognized in the statement of profit or loss	22.891.854	(81.921.713)
Reflected in equity	206.470.004	59.646.506
	179.819.444	(49.542.414)

The Law on the Amendment of the Tax Procedure Law No. 7338 dated October 14, 2021 and Some Laws; Within the scope of the provisional Article 32 added to the Law No. 213 with its Article 52 and the paragraph (Ç) added to the duplicate Article 298 of the Law No. 213 by the Law No. 7338, it was possible for them to subject the immovables (within the scope of Temporary 32) and other economic assets subject to depreciation (under the Temporary 32 and 298 ç) registered in their balance sheets to revaluation as of the end of the previous accounting period. The included assets will be subject to depreciation over the amount they are revalued, and a tax of 2% will be paid on the value increase amount within the scope of Temporary 32. Within the scope of the aforementioned law amendment, deferred tax asset has been created in the statement of financial position based on the revaluation records for fixed assets in the legal book.

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 28 – EARNINGS/ (LOSS) PER SHARE
	01.01-	01.01-
	31.12.2023	31.12.2022
Average number (full value) of shares available during the period Net profit / (loss) for the parent company Shareholders	500.000.000 948.123.057	500.000.000 576.759.014
Earning per share/(loss)	1,90	1,15

NOTE 29 – ANALYSIS OF OTHER COMPREHENSIVE INCOME ELEMENTS

	01.01-	01.01-
Other Comprehensive Income	31.12.2023	31.12.2022
Not to be reclassified in profit or loss	(2.878.111)	(1.782.060)
-Increase/decrease in value of tangible and intangible assets	--	--
-Increase/decrease in value of tangible and intangible assets	--	--
deferred tax
-Gain/Loss on Remeasurement of Defined Benefit Plans	(3.837.481)	(2.227.575)
-Gain/Loss on Remeasurement of Defined Benefit Plans	959.370	445.515
Deferred Tax Expense/Income
To be reclassified in profit or loss	(564.796.518)	(236.209.942)
-Hedging gains/losses	(770.307.151)	(295.262.428)
-Hedging gains/losses deferred tax	205.510.633	59.052.486

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS

Financial risk management

The Group is exposed to various financial risks, including the effects of changes in debt and equity market prices, exchange rates and interest rates. The Group's wholesale risk management program focuses on the unpredictability of financial markets and aims to minimize potential adverse effects on the Group's financial performance.

Credit risk

Credit risk consists of cash and cash equivalents, deposits held with banks and customers exposed to credit risk including uncollectible receivables.

Holding financial instruments also carries the risk that the other party will not be able to fulfill the requirements of the agreement. The Group management covers these risks by limiting the average risk for the counterparty in each agreement and by taking collateral if necessary.

Credit risk consists of customers exposed to credit risk, including uncollectible receivables. Holding financial instruments also carries the risk that the other party will not be able to fulfill the requirements of the agreement. The Group management monitors the credibility of its customers by taking into account their financial positions (maturity risk, check risk). The Group has policies adopted for the sale of goods and services to its customers with certain credit limits. The Group constantly monitors the status of its financial assets in order to determine the losses arising from the collection problem.

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

Credit risk (Continued)

The financial instruments that the Group is exposed to credit risk and their amounts are as follows;

	Trade Receivables Other Receivables		Bank
31 December 2023	Other	Related	Other	Related	Deposits	Other
Maximum net credit risk as of 31 December 2023 (A+B+C+D) (1)	249.313.392	--	6.403.439	15.911.287	147.167.138	230.722.052
The part of maximum risk under guarantee with collateral	--	--	--	--	--	--
A. Net book value of financial assets that are either past due or not impaired (2)	249.313.392	--	6.403.439	15.911.287	147.167.138	230.722.052
B. Book value of restructured otherwise accepted as past due and impaired financial assets(3)	--	--	--	--	--	--
- Secured portion by guarantees	--	--	--	--	--	--
C. Net book value of financial assets that are past due and not impaired	--	--	--	--	--	--
- Overdue (gross book value)	9.143.878	--	--	--	--	--
- Impairment (-)	(9.143.878)	--	--	--	--	--
D. Elements involving off-balance sheet credit risk	--	--	--	--	--	--

(1) In determining the amounts, factors that increase credit reliability, such as guarantees received, are not taken into account.

(2) Trade receivables that are not overdue and not impaired consist of customer balances with which the Group currently has commercial relations and does not have any collection problems.

(3) It consists of the balances of customers with whom commercial relations are currently in progress, who do not have any collection problems, but who make their payments at regular intervals.

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

Credit risk (Continued)

	Trade Receivables		Other Receivables		Bank
31 December 2022	Other	Related	Other	Related	Deposits	Other
Maximum net credit risk as of 31 December 2022 (A+B+C+D) (1)	554.327.314	--	10.582.249	4.992.440	45.503.346	983.097.150
The part of maximum risk under guarantee with collateral	--	--	--	--	--	--
A. Net book value of financial assets that are either past due or not impaired (2)	554.327.314	--	10.582.249	4.992.440	45.503.346	983.097.150
B. Book value of restructured otherwise accepted as past due and impaired financial assets(3)	--	--	--	--	--	--
- Secured portion by guarantees	--	--	--	--	--	--
C. Net book value of financial assets that are past due and not impaired	--	--	--	--	--	--
- Overdue (gross book value)	608.548	--	--	--	--	--
- Impairment (-)	(608.548)	--	--	--	--	--
D. Elements involving off-balance sheet credit risk	--	--	--	--	--	--

(1) In determining the amounts, factors that increase credit reliability, such as guarantees received, are not taken into account.

(2) Trade receivables that are not overdue and not impaired consist of customer balances with which the Group currently has commercial relations and does not have any collection problems.

(3) It consists of the balances of customers with whom commercial relations are currently in progress, who do not have any collection problems, but who make their payments at regular intervals.

Liquidity risk

Prudent liquidity risk management consists of providing sufficient cash and securities, enabling funding through adequate credit facilities, and the ability to close short positions. Due to the dynamic nature of the business environment, the Group aimed for flexibility in funding by keeping credit lines ready. The Group's bank loans are provided by various financially strong financial institutions.

The distribution of the Group's financial liabilities according to their maturities is as follows:

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

Liquidity risk (Continued)

31 December 2023

Terms in accordance with the contract	Book value	Cash in accordance with the contract sum of outputs (=I+II+III+IV)	Less than 3 months (I)	Between 3- 12 months (II)	Between 1-5 years (III)	More than 5 years (IV)
Non-Derrivative
Financial Obligations	3.754.171.961	3.754.171.961	818.789.455	733.545.250	1.795.461.466	406.375.790
Financial liabilities	3.058.001.161	3.058.001.161	177.289.457	728.114.667	1.778.618.898	373.978.139
Lease payables	62.395.107	62.395.107	7.724.305	5.430.583	16.842.568	32.397.651
Trade payables	569.762.629	569.762.629	569.762.629	--	--	--
Other payables	64.442.252	64.442.252	64.442.252	--	--	--
31 December 2022		Cash in
Terms in accordance with the contract	Book value	accordance with the contract sum of outputs (=I+II+III+IV)	Less than 3 months (I)	Between 3- 12 months (II)	Between 1-5 years (III)	More than 5 years (IV)
Non-Derrivative
Financial Obligations	4.045.144.396	4.045.144.396	1.397.792.577	544.763.951	1.674.034.436	428.553.432
Financial liabilities	2.774.135.730	2.774.135.730	187.336.273	540.481.065	1.644.446.587	401.871.805
Lease payables	61.447.740	61.447.740	895.408	4.282.882	29.586.824	26.682.626
Trade payables Other payables	1.128.762.167	1.128.762.167	1.128.762.167	--	--	--

Market Risk

Market risk is the changes that will occur in interest rates, exchange rates and the value of other financial contracts and affect the Group negatively. Fluctuations in the related instruments cause changes in the income statement and shareholders' equity of the Group.

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

Currency Risk

The financial instruments of the Group in foreign currency are exposed to exchange rate risk due to exchange rate changes.

		Currency position table
		TL equivalent
	31 December 2023	(functional
		currency unit)	USD	EURO	GBP	CHF
1.	Trade receivables	97.722	--	3.000
2a.	Monetary financial assets (including cash, bank accounts)	922.104	15.325	13.513	823	--
2b.	Non monteray financial assets	127.208.017	329.265	3.607.644	--	--
3.	Other	172.606	5.310	500	--	--
4.	Current assets (1+2+3)	128.400.449	349.900	3.624.657	823	--
5.	Trade receivables	--	--	--	--	--
6a.	Monetary financial assets	--	--	--	--	--
6b.	Non monteray financial assets	--	--	--	--	--
7.	Other	--	--	--	--	--
8.	Fixed assets (5+6+7)	--	--	--	--	--
9.	Total assets (4+8)	128.400.449	349.900	3.624.657	823	--
10.	Trade payables	(67.664.558)	(571.386)	(1.531.704)	(1.973)	(21.480)
11.	Financial liabilities	(385.635.199)	(7.663.272)	(4.891.898)	--	--
12.a	Other monetary obligations	(1.763.266)	--	(54.034)	--	--
12b.	Other non-monetary obligations	--	--	--	--	--
13.	Short-term liabilities (10+11+12)	(455.063.023)	(8.234.658)	(6.477.636)	(1.973)	(21.480)
14.	Trade payables	--	--	--	--	--
15.	Financial liabilities	(1.660.058.868)	(38.654.951)	(15.937.256)	--	--
16a.	Other monetary obligations	--	--	--	--	--
16b.	Other non-monetary obligations	--	--	--	--	--
17.	Long-term liabilities (14+15+16)	(1.660.058.868)	(38.654.951)	(15.937.256)	--	--
18.	Total liabilities (13+17)	(2.115.121.891)	(46.889.609)	(22.414.892)	(1.973)	(21.480)
19.	Net asset / (liability) position of off-balance sheet foreign currency derivatives (19a-19b)	--	--	--
19a.	Amount of active character off-balance sheet foreign currency derivatives	--	--	--
19b.	Amount of passive character off-balance sheet foreign currency derivatives	--	--	--
20.	Net foreign currency asset/(liability) position(9+18+19)	(1.986.721.442)	(46.539.709)	(18.790.234)	(1.150)	(21.480)
21.	Monetary items net foreign currency asset / (liability) position (=1+2a+5+6a-10-11-12a-14-15-16a)	(2.114.102.065)	(46.874.284)	(22.398.379)	(1.150)	(21.480)
22.	Total fair value of financial instruments used for foreign currency hedging	--	--	--
23.	Amount of the hedged portion of foreign currency assets	--	--	--
24.	Amount of the hedged portion of foreign currency liabilities	--	--	--
25.	Exports	--	--	--
26.	Imports	--	--	--

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

Currency Risk

				Currency position table
		TL equivalent
	31 December 2022	(functional
		currency unit)	USD	EURO
1.	Trade receivables	162.917.529	5.000.000	270.000
2a.	Monetary financial assets (including cash, bank accounts)	414.679	7.401	5.683
2b.	Non monteray financial assets	590.725.273	1.922.609	16.180.618
3.	Other	--	--	--
4.	Current assets (1+2+3)	754.057.481	6.930.010	16.456.301
5.	Trade receivables	--
6a.	Monetary financial assets	--	--	--
6b.	Non monteray financial assets	--	--	--
7.	Other	--	--	--
8.	Fixed assets (5+6+7)	--	--	--
9.	Total assets (4+8)	754.057.481	6.930.010	16.456.301
10.	Trade payables	(524.560.379)	(2.223.646)	(13.855.230)
11.	Financial liabilities	(646.378.687)	(13.845.067)	(6.656.647)
12.a	Other monetary obligations	--	--	--
12b.	Other non-monetary obligations	--	--	--
13.	Short-term liabilities (10+11+12)	(1.170.939.066)	(16.068.712)	(20.511.877)
14.	Trade payables	--	--	--
15.	Financial liabilities	(1.921.324.879)	(41.441.083)	(19.516.952)
16a.	Other monetary obligations	--	--	--
16b.	Other non-monetary obligations	--	--	--
17.	Long-term liabilities (14+15+16)	(1.921.324.879)	(41.441.083)	(19.516.952)
18.	Total liabilities (13+17)	(3.092.263.945)	(57.509.795)	(40.028.829)
19.	Net asset / (liability) position of off-balance sheet foreign currency derivatives (19a-19b)	--	--	--
19a.	Amount of active character off-balance sheet foreign currency derivatives	--	--	--
19b.	Amount of passive character off-balance sheet foreign currency derivatives	--	--	--
20.	Net foreign currency asset/(liability) position(9+18+19)	(2.338.206.464)	(50.579.785)	(23.572.528)
21.	Monetary items net foreign currency asset / (liability) position (=1+2a+5+6a-10-11-12a-14-15-16a)	(2.928.931.737)	(52.502.394)	(39.753.146)
22.	Total fair value of financial instruments used for foreign currency hedging	--	--	--
23.	Amount of the hedged portion of foreign currency assets	--	--	--
24.	Amount of the hedged portion of foreign currency liabilities	--	--	--
25.	Exports	--	--	--
26.	Imports	--	--	--

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

		Exchange rate sensitivity analysis table
		31 December 2023
		Profit/Loss before tax			Equities
		Increase in foreign currency	Decrease in foreign currency	Increase in foreign currency	Decrease in Foreign Currency
		rate	rate	rate	Rate
	If the USD exchange rate changes by 10%:
1-	USD net asset / liability	(137.251.652)	137.251.652	(109.801.322)	109.801.322
2-	USD Dollar hedged portion (-)	--	--	--	--
3-	USD net effect (1+2)	(137.251.652)	137.251.652	(109.801.322)	109.801.322
	If the EURO exchange rate changes by 10%:
4-	EUR net asset / liability	(61.317.420)	61.317.420	(49.053.936)	49.053.936
5-	EUR hedged portion (-)	--	--	--	--
6-	EURO net effect (4+5)	(61.317.420)	61.317.420	(49.053.936)	49.053.936
	Total (3+6)	(198.569.072)	198.569.072	(158.855.258)	158.855.258

		Exchange rate sensitivity analysis table
		31 December 2022
		Profit/Loss before tax			Profit/Loss before tax
		Increase in foreign currency	Decrease in foreign currency	Increase in foreign currency	Decrease in Foreign Currency
		rate	rate	rate	Rate
1- 2-	If the USD exchange rate changes by 10%: USD net asset / liability USD Dollar hedged portion (-)	(158.432.786) --	158.432.786 --	(126.746.229) --	126.746.229 --
3-	USD net effect (1+2)	(158.432.786)	158.432.786	(126.746.229)	126.746.229
	If the EURO exchange rate changes by 10%:
4-	EUR net asset / liability	(77.568.907)	77.568.907	(62.055.126)	62.055.126
5-	EUR hedged portion (-)	--	--	--	--
6-	EURO net effect (4+5)	(77.568.907)	77.568.907	(62.055.126)	62.055.126
	Total (3+6)	(236.001.693)	236.001.693	(188.801.355)	188.801.355

66

NOTE 30 - NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (Continued)

Interest Rate Risk

The Group is affected by the changes in the interest rate due to the variable interest rate bank loans and is exposed to interest rate risk. While there is no risk in fixed-rate bank loans and time deposits, they are affected by future interest rates for future loans and deposits for the continuation of their operations.

The interest position table is as follows;

	31 December 2023	31 December 2022
Fixed rate financial instruments
Financial assets	136.969.323	6.821.663
Financial liabilities	(713.743.295)	(919.264.458)
Variable rate financial instruments
Financial liabilities	(2.344.257.866)	(1.854.869.919)

Capital Risk Management

The Group's objectives when managing capital are to maintain the Group's ability to continue as a business in order to maintain an optimal capital structure to provide returns for shareholders, benefits for other shareholders, and to reduce the cost of capital.

In order to maintain or reorganize its capital structure, the Group determines the amount of dividend payable to shareholders, can issue new shares and sell assets to reduce borrowing.

The Group monitors capital using the debt-to-equity ratio. This ratio is founded by dividing net debt by total capital. Net debt amount is calculated by deducting cash and cash equivalents from total liabilities (consisting of bank loans, financial leasing liabilities, trade payables and other payables that can be seen in the financial statements). Total equity is founded by adding net debt to equity shown on the balance sheet.

	31 December 2023	31 December 2022

Total liabilities	3.058.001.161	2.774.134.377
Cash and cash equivalents	(147.183.250)	(45.542.874)

Net debt (A)	2.910.817.911	2.728.591.503
Equities	2.851.295.570	2.475.189.974

Equities + net debt (B)	5.762.113.481	5.203.781.477

Net debt / (Equities + net debt) ratio (A / B)	51%	52%

NOTE 31 – INVESTMENTS ACCOUNTED BY THE EQUITY METHOD

	31 December 2023		31 December 2022
	Total	Ratio	Total Ratio
Landfill	281.298.380	50%	235.871.105 50%
	281.298.380		235.871.105
		31 December 2023	31 December 2022
As of January 1st		235.871.105	194.824.851
Profits / losses of shares Paid to shareholders		98.478.927 (53.051.652)	41.046.254 --
		281.298.380	235.871.105
		31 December 2023	31 December 2022
Total assets		665.726.694	317.060.833
Total liabilities		(210.265.496)	(102.945.891)
Net asset		455.461.198	214.114.942
		31 December 2023	31 December 2022
Total sales revenues Profit/ (loss) for the period (net)		225.677.398 196.957.853	114.484.258 49.820.535

NOT 32 – MONETARY GAIN/LOSS

As of 31.12.2023 and 2022, the details of monetary loss / gain are as follows:

	1 January – 31 December 2023	1 January – 31 December 2022

Inventory	6.039.028	(4.457.799)
Financial Investments	67.810.766	76.225.052
Tangible and intangible assets	1.458.087.329	1.096.618.591
Prepaid expenses	(29.892.331)	86.697.709
Deferred income	2.069.333	1.433.278
Right of Use Assets	44.533.784	26.929.682
Paid in capital	(385.988.806)	(404.967.550)
Retained earnings	(509.500.706)	(418.247.044)
Income statement indexation effect	742.883.011	225.920.124
Deferred tax	(420.638.040)	(230.829.010)
Investment property	16.444.421	12.249.220
Total	991.847.789	467.572.253

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

(Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 33 - OTHER MATTERS THAT MAINLY AFFECT THE FINANCIAL STATEMENTS OR REQUIRED FOR THE FINANCIAL STATEMENTS TO BE CLEAR, INTERPRETABLE AND UNDERSTANDABLE

None.

NOTE 34 – EVENTS AFTER THE BALANCE SHEET DATE

In line with the profitability targets and sustainable growth strategies of the Company, a Share Transfer Agreement was signed with Mana Enerji Sanayi Ticaret A.Ş for the transfer of all shares of MD Biyokütle Enerji Üretim A.Ş, a 100% subsidiary of the Company, which operates the waste management and electricity generation facility ("Aksaray Facility") including Aksaray Çöp Gaz Elektrik Üretim A.Ş, located in Aksaray province, at a sales price of USD 10,000,000 and the share transfer was completed as of 5 April 2024.

In line with the Company's profitability targets and sustainable growth strategies, a Share Transfer Agreement was signed with Mana Enerji Sanayi Ticaret A.Ş. for the transfer of all shares of Serenti Enerji A.Ş., an indirect 100% subsidiary of the Company, which operates a waste management and electricity generation facility including Giresun Çöp Gaz Elektrik Üretim Tesisi ("Giresun Facility") located in Giresun province, at a sales price of USD 4,000,000 and the share transfer was completed as of 5 April 2024.

AI Terminal

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş.

5897_rns_2024-05-17_bb6a4c1d-178b-43e7-a243-f33a7c53b2d5.pdf

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2023

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş. CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIODS 1 JANUARY – 31 DECEMBER 2023 AND 2022

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş. CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIODS 1 JANUARY – 31 DECEMBER 2023 AND 2022

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI A.Ş. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS 1 JANUARY – 31 DECEMBER 2023 AND 2022

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 1 – GROUP'S ORGANIZATION AND NATURE OF OPERATIONS

Its Subsidiaries:

Doğu Star Elektrik Üretim A.Ş. (Doğu Star):

Nov Enerji Elektrik Üretim A.Ş. (Nov Enerji):

Novtek Enerji Elektrik Üretim A.Ş. (Novtek Enerji):

Mersin Elektrik Üretim ve Enerji Yatırımları A.Ş. (Mersin):

BİOTREND ÇEVRE VE ENERJİ YATIRIMLARI ANONİM ŞİRKETİ CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 (Amounts are expressed in Turkish Lira ("TL") unless otherwise stated.)

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Yılbatu Elektrik Üretim A.Ş. (Yılbatu):

İlda Elektrik Üretim A.Ş. (İlda):

Ulubey Elektrik Üretim Ve Enerji Yatırımları A.Ş. (Ulubey):

İzmir Novtek Enerji Elektrik Üretim A.Ş. (İzmir Novtek):

Uşak Yenilenebilir Enerji Elektrik Üretim A.Ş. (Uşak):

Biyomek Elektrik Enerjisi Üretim San. Ve Tic. A.S. (Biyomek):

MD Biyokütle Enerji Üretim A.Ş. (MD Biyokütle):

İzmir Doğu Star Elektrik Üretim A.Ş. (İzmir Doğu Star):

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Karya Yenilenebilir Kaynaklar Elektrik Üret.San.Tic. Ltd. Şti. (Karya):

Serenti Enerji A.Ş. (Serenti):

Maven Tarım Seracılık ve Hayvancılık San. Ve Tic. A.Ş. (Maven Tarım):

Biotrend Ayvacık Yenilenebilir Kaynaklar Elektrik Üret.San.Tic. Ltd. Şti. (Biotrend Ayvacık):

Ulutek Elektrik Üretim ve Enerji Yatırımları A.Ş. (Ulutek):

Biotrend Enerji Uluslararası Yatırım A.Ş. (Biotrend Uluslararası):

Doğankent Elektrik Enerjisi Toptan Satış A.Ş. (Doğankent):

Biotrend İleri Dönüşüm ve Yenilenebilir Enerji Teknolojileri San. A.Ş. (Biotrend İleri Dönüşüm):

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

The number of employees is given below:

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

NOTE 1 – GROUP'S ORGANIZATION AND SUBJECT OF ACTIVITY (Continued)

Financial Investments Valued by Equity Method

Landfill Enerji A.Ş. (Landfill):

Approval of Consolidated Financial Statements

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

Basis of Presentation

Functional and Presentation Currency

Financial Reporting in Hyperinflationary Econimics

Consolidation Principles

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Consolidation Principles (Continued)

Continuity of the Business

Comparative information and adjusting to previous period dated of financial statements.

New and revised Turkish Financial Reporting Standards ("TFRS")

The new standards, amendments and interpretations

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

i) The new standards, amendments and interpretations which are effective as of January 1, 2023 are as follows:

Amendments to TAS 8 - Definition of Accounting Estimates

Amendments to TAS 1 - Disclosure of Accounting Policies

Amendments to TAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

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

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

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

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

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

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

New and revised Turkish Financial Reporting Standards ("TFRS") (Continued)

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

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

Amendments to IAS 21 - Lack of exchangeability

Changes and Errors in Accounting Policies/Forecasts

Summary of Significant Accounting Policies

Cash and cash equivalents

Trade receivables

Trade payables

Inventories

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Investment properties

Tangible fixed assets

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

Revaluation model