ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş.

Management Reports • Nov 4, 2025

Report of the Board of Directors

Page No Page No

• 2 Vision - Mission
• 3 Principles of Preparation
• 3 Company Information and Organizational Structure
• 5 The Company's Shareholder Structure
• 8 Main Factors That Affect the Performance, Investment and Dividend Policy of the Company
• 9 Enterprise Risk Management

• 11 Financial Information of the Company

• 15 Changes in the Legislation Which Would Have Significant Impact on the Activities of the Company

• 16 Compliance Report on Corporate Governance Principles and Sustainability Principles Compliance Framework Report
• 16 Information Regarding the Lawsuits of the Group
• 17 Information Regarding the Transactions Made within the Reporting Period

Vision

To be a reliable, competitively preferred, environment-friendly and human conscious technology firm which preserves its sustainable growth in the global market via the values created for stakeholders, as well as serving its establishment purposes.

Mission

By focusing primarily on the needs of the Turkish Armed Forces; to provide high-value-added, innovative and reliable products and solutions to both local and foreign customers in the fields of electronic technologies and system integration; continuing activities in line with global targets as well as increasing brand awareness and contributing to the technological independence of Türkiye.

1- Principles of Preparation

he interim report of the Board of Directors is prepared on the basis of Communiqué Series II, No: 14.1 "Principles of Financial Reporting in Capital Markets" dated 13 June 2013.

The report comprises the events took place during the period 1 January - 30 September 2025. The title of the main shareholder in the report is ASELSAN Elektronik Sanayi ve Ticaret A.Ş and will be referred as "the Company" in the accompanying notes.

The Company's consolidated subsidiaries are ASELSAN Baku Ltd. Co. ("ASELSAN Baku"). Mikroelektronik Ar-Ge Tasarım ve Ticaret Ltd. Co. ("MKR-IC"), ASELSANNET Elektronik ve Haberleşme Sistemleri Sanayi Ticaret İnşaat ve Taahhüt Ltd. Co. ("ASELSANNET"), ASELSAN Konya Silah Sistemleri Anonim Şirketi ("ASELSAN Konya"), ASELSAN Malaysia Sdn. Bhd. ("ASELSAN Malaysia"), BITES Savunma Havacılık ve Uzay Teknolojileri Yazılım A.Ş. ("BITES"), ASELSAN Global Dış Ticaret ve Pazarlama A.Ş. ("ASELSAN Global"), ASELSAN Sivas Hassas Optik San. Tic. A.S. ("ASELSAN Sivas Hassas Optik"), ASELSAN UKRAINE LLC. ("ASELSAN Ukraine"), ASELSAN Latin Amerika SpA ("ASELSAN Latin Amerika") ASELSAN Technologies and Limited ("ASELSAN UAE") .

The Company has six branch offices; Aselsan Elektronik Sanavi ve Ticaret Anonim Sirketi EP Co. ("ASELSAN South Africa"), ASELSAN Balkans ("ASELSAN Balkans"), ASELSAN Kıbrıs İleri ("ASELSAN Arastırma Merkezi N.Cyprus"), ASELSAN Elektronik Sanavi ve Ticaret A.S. Katar ("ASELSAN Qatar"), ASELSAN Elektronik Sanayi ve Ticaret A.Ş. Poland ("ASELSAN Poland) and ASELSAN Elektronik Sanayi ve Ticaret A.Ş. Albania ("ASELSAN Albania) located in Republic of South Africa, Macedonia, Turkish Republic of Northern Cyprus ("TRNC"), Qatar, Poland and Albania, respectively. The branches are also included in the consolidated financial statements.

2- Company Information and Organizational Structure

he Company is a leading defense industry company developing advanced technology system solutions within land, air, naval and space platforms.

The Company, being an establishment of Turkish Armed Forces Foundation ("TSKGV"), stands in a position of a technology center within the fields of design, development, manufacturing, system integration, modernization and after sales services of military and civil communication systems, avionics systems, electronic warfare intelligence systems, radar systems, command and control systems, naval warfare systems, security systems, transportation systems, energy systems, traffic and automation systems, medical systems, electro-optic systems and products.

The Company has been organized under five divisions with regard to production engineering requirements of projects. These divisions comprise Communication and Technologies Information Vice Presidency ("HBT"), Microelectronics and Electro-Optics Vice Presidency ("MEOS"), Avionics and Guidance Systems Vice Presidency ("AGS"), Integrated Defence Systems Technologies Vice Presidency ("SST"), Radar and Electronic Warfare Vice Presidency ("REHİS"). Transportation, Security, Energy, Automation and Healthcare Systems Vice Presidency ("'UGES").

In addition to the Vice Presidencies above, the Company organization also includes five Vice Presidencies to fulfil the planning, monitoring and analyzing functions: Financial Management Vice Presidency, Corporate Management Vice Presidency, Technology and Strategy Vice Presidency, Management Business Development and Marketing Vice Presidency, Supply Chain Management Vice Presidency and Malatya Campus Directorate. In addition to these, there are also Legal Affairs and Office of the Private Secretary. The Internal Audit Department and Board of Directors Planning and Coordination Department have been established under the Board of Directors.

aselsan

The Company maintains production and engineering operations in Ankara, Macunköy, Akyurt and Gölbaşı campuses and engineering operations in Hacettepe Teknokent, Teknopark İstanbul, Aselsan Temelli Campus and Aselsan Malatya Campus. Additionally, the Company has a test production field area in Gölbek. Headquarters is located in Ankara Macunköy.

The Company's international, nation-wide and sectoral rankings are summarized in the table below:

Institution	Research / Study	Related	Ran	king
Institution	Research / Study	Period	Current	Prior
DefenseNews	Defense News Top 100	2025	43	42
	ICI 500 Top Industrial Entreprises	2024	17	19
FORTUNE	Top 500 Companies	2024	26	31
BORSA	Sustainability 25 Index Corporate Governance Index BIST Top 30 Index	2025	No Ra	inking inking inking
	BIST Top 100 Market Value Ranking		1	1

Institution	Institution Research / Study		Ran	king
IIIstitution			Current	Prior
Turkishtime Dudhood vs is schende poetsu	Research and Development Expenditures Türkiye Top 100	2024	2	2
EN GÖZDE ŞİRKETLER	Top 50 Firms (Universities)	2025	5	5
universum	Ideal Employers (Engineering and IT) 100 Companies	2025	1	1
Deloitte.	Technology Fast 50 Big Star Category	2024	No Ra	ınking

Commercial title and trade registration number of the company and contact information pertaining to its headquarters, branches, offices and its website addresses are shown below:

Company	Туре	Country / City	Address	Telephone / Fax	Web Site
ASELSAN Elektronik Sanayi ve	Headquarters	Türkive	Mehmet Akif Ersoy Mahallesi İstiklal Marşı Caddesi No:16	Tel: +90 (312) 592 1000	www.aselsan.com
Ficaret A.Ş.		Turkiye	06200 Yenimahalle/Ankara Trade Registery: 31177	Fax: +90 (312) 354 1302	www.aseisaii.com
ASELSAN South Africa Branch	Branch	Rep. Of South Africa	Summit Place Office Park Building 2, First Floor 221
ASEESAN SOUCH AIT ICU DI UIICII	branen	Pretoria	Garsfontein Road Menlyn, Pretoria, 0181
ASELSAN Balkans Branch	Branch	N. Mac e donia	St. Makism Gorki No.13, Building No: 1, Enterance :1, Floor: 5,
ASESAN BUNGIS DI UNCI	Dranen	Skopje	No:9, Skopje, 1000, North Macedonia
ASELSAN Cyprus Advanced	Branch	TRNC	Middle East Technical University North Cyprus Campus ODTÜ	Tel: +90 (312) 592 1000/80880	www.aselsan.com
Tech. Research Center	Dianen	Güzelyurt	KALTEV AR-GE Building No: E-19 99738 Kalkanlı/Güzelyurt	Tet 170 (312) 372 10007 00000	www.aseisaii.com
		Oatar	Qatar Science & Technology Park Free Zone, Street No: 2322,
ASELSAN Qatar Branch	Branch	Doha	Zone No: 51, Unit No: 107, Building No:153, Building Name: Tech1
ASELSAN Poland Branch	Branch	Poland Warsaw	Skylight Building, 5 th Floor, Złota 59, 00-120 Warsaw
ASELSAN Albania Branch	Branch	Tirana	Villa Street, Mamica Square, no.3 1034 Tiran Arnavutluk
		Republic of Albania
ASELSAN Saudi Arabia Office	Office	Saudi Arabia	Riyadh Business Gate, Building: Zone D-3, GF, Unit 1
ASEESAN Saddi Ai abia Office	Office	Riyadh	Riyaan basiness date, baltaing. 2016 0-3, Gi , Oilit 1
ASELSAN Pakistan Office	Office	Pakistan	Serena Business Complex 3 rd Level, Office No:3 Sector G-5/1
ASELSAN PARISTAN OTTICE	Office	İslamabad	Ramna Suhrwardy Islamabad
ASELSAN Nigeria Office	Office	Nigeria	World Trade Center, Central Business District, Abuja, FCT.
ASEESAN NIGETIA OTTICE	Office	Abuja
ASELSAN Indonesia Office	Office	Indonesia	Menara Astra 32 nd Floor J1 .Jenderal Sudirman No.Kav5-6
ASELSAN IIIdollesia Office	Office	Cakarta	Jakarta-Pusat
ACEL CAN Alexania Office	044:	Algeria	49 Boulevard Souidani Boudjemaa, El Mouradia, Algiers,
ASELSAN Algeria Office	Office	Algiers	Algeria
		Uzbekistan	Kamarniso Street, No. 8/1 Olmazor District, Tashkent,
ASELSAN Uzbekistan	Incubator	Tashkent	Uzbekistan

3- The Company's Shareholder Structure

Registered capital ceiling of the Company is TL 10.000.000.000 (TL ten billion). The nominal capital of the Company is TL 4.560.000.000 (TL four billion five hundred sixty million) and is divided into 4.560.000.000 (TL four billion five hundred sixty million) shares, each having a nominal value of 1 TL.

2.421.818.182 (two billion four hundred twenty one million eight hundred eighteen thousand one hundred eighty two) of the shares are Group A shares and 2.138.181.818 (two billion one hundred thirty eight million one hundred eighty one thousand eight hundred eighteen) of the shares are Group B Shares. All shares are in the name of the holder.

Group A shares are nominative preferred shares and 6 of the Members of the Board of Directors are elected among the Group A preferred shareholders or among the candidates presented by them.

Share distribution table of the Shareholders is presented below:

Partners	TL Thousand
Turkish Armed Forces Foundation (TSKGV)	3.383.302
Quoted on BIST (Free Float)	1.176.698
Paid-in Capital	4.560.000
Inlation Adjusted Capital	36 072 593

a) Members of the Board of Directors and Senior Executives

Within the framework of the provisions of the Company's Articles of Association, the Board of Directors consists of total 9 members comprising of 6 members to be elected from preferred shareholders or candidates nominated by group A and 3 independent members to be elected under Capital Markets Board (CMB) regulations. Information regarding the Members of the Board of Directors and Senior Executives as of publishing date of the report are as follows:

	Name and			Date of First
List No	Surname	Position	Positions In Other Company's	Assignment
1 .	Ercümend ARVAS	Chairman of the Board	Member Of The Board Of Directors o f Kardemir Sanayi Ve Ticaret A.Ş., Member o f The Board o f Science, Technology and Innovation Policies of Presidency of The Republic of Türkiye	22 September 2023
2 .	Mustafa Murat ŞEKER	Vice Chairman / Managing Member	Vice President At Presidency o f Defence Industries, Vice Chairman o f Ankara Aerospace Industry Zone, Vice Chairman of The Board of Directors of SSTEK A.Ş.	29 June 2021
3 .	İsmail ARI	Member	Ozyegin University Faculty Member, Member o f The Board o f Directors o f Tübitak Sage, Member o f The Executive Council of University-Industry Collaboration Centers Platform of Türkiye	22 September 2023
4 .	Bekir BAYRAKDAR	Member	Commissioner of Revenue Administration	22 September 2023
5 .	Yavuz ÇELİK	Member / Managing Member		19 June 2020
6 .	Alpaslan KAVAKLIOĞLU	Member	Deputy Minister o f Ministry o f Defense, Chairman o f The Board o f Directors o f MKE, Member o f The Board o f Directors of Turkish Parliamentarians Union	26 April 2019
7 .	Göksel SEVİNDİK	Member		14 June 2024
8 .	Ebru TÜMER	Member	Professor in Gebze Technical University	22 September 2023
9 .	Ahmet YOZGATLIGİL	Member	Rector o f The Middle East Technical University, Member o f The Board o f Directors o f MKE, Member o f The Board o f Directors o f Tubitak, Member o f The Board o f Directors o f Bilişim Vadisi, Member o f The Board o f Directors o f Saha Istanbul, Member of The Board of Directors of Izmir Biomedicine And Genome Center	22 September 2023
10.	Ahmet AKYOL	President and CEO	Member o f The Board o f Directors o f TÜBİTAK Sage, Member o f NATO Science And Technology Board (STB), Vice Chairman of The Board of Directors of Saha Istanbul, Chairman of TOBB (The Union of Chambers And Commodity Exchanges o f Türkiye) Defense Industry Council, Member o f The Board o f Directors o f Istanbul Finans Ve Teknoloji Üssü A.Ş., Vice Chairman of The Board of Directors of Ulak A.Ş.	1 July 2022
11.	Yusuf Bora KARTAL	Vice President and President Business Sector (HBT Sector President)	Member of The Board of Directors of HTR, Chairman of The Board of Directors of Aselsan Bakü	3 January 2025
12.	İsmail ÖZSARAÇ	Vice President and President Business Sector (MEOS Sector President)	Chairman of The Board of Directors of Sivas Hassas Optik A.Ş.	3 January 2025
13.	Murat KARATAŞ	Vice President and President Business Sector (AGS Sector President)	Member o f The Board o f Directors o f Aselsan Middle East, Chairman o f The Board o f Aselsan Bilkent Mikronano A.Ş.	22 January 2024
14.	Mustafa YAMAN	Vice President and President Business Sector (REHIS Sector President)	Chairman o f The Board o f Managers o f Aselsannet, Member o f The Board o f Directors o f Tüyar, Chairman o f The Board of Managers of Mikroelektronik	1 July 2022
15.	Zekeriyya ŞAHİN	Vice President and President Business Sector (SST Sector President)	Vice Chairman f The Board o f Directors o f IGG-Aselsan Integrated Systems LLC., Chairman o f The Board o f Directors o f Bites Savunma Havacılık Ve Uzay Teknolojileri Yazılım Elektronik A.Ş., Member o f The Board o f Directors of Kazakhstan Aselsan Engineering, Chairman of The Board of Directors of Aselsan Ukraine LLC.	22 January 2024
16.	Alaattin DÖKMEN	Vice President and President Business Sector (UGES Sector President)	Member of The Board of Managers of Aselsannet	21 May 2025
17.	Özgür Taylan SARI	Vice President (Business Development and Marketing)	Chairman o f The Board o f The Directors o f Aselsan Qatar, Member o f The Board Of Turkısh Defence And Aerospace Industry Exporters' Database, Member of The Board of BARQ QSTP LCC	17 August 2023
18.	Mehmet ARTAR	Vice President (Corporate Management)		18 July 2023
19.	Nurettin TÜYSÜZ	Vice President (Financial Management)		2 Aprıl 2025
20.	Taha YÜCEL	Vice President (Technology & Strategy Management)	Member of The Board of Information Security Association	1 July 2022
21.	Murat ASLAN	Vice President (Supply Chain Management)	Chairman of The Board of Directors of Aselsan Konya, Members of The Board of Directors of SASAD	30 July 2024
22.	Mürsel Ali KAPLAN	President of Internal Audit		6 March 2023

The Members of the Board of Directors are entitled with the authorizations stipulated in the Turkish Code of Commerce ("TCC") and in article 13 of the Articles of Association of the Company.

Entitled shareholders, members of the board of directors, senior executives and to their spouses as well as relatives up to second degree are not authorized to perform transactions, which may cause conflict of interest or competition with the Company and/or subsidiaries. There are no transactions conducted by board members, either on their own behalf or on behalf others, that violate the Company's transaction ban. There is no operation regarding the non-compete obligation by the members of the board.

The controls are carried out by the Internal Audit Presidency ("IAP") and Audit Committee within the parent company in order to minimize the substantial error risk on the financial statements of the Group. IAP and Audit Committee carry out their duties independent from each other but within the guidance of common objectives and targets, with the aim of observing an internal control system, which provides required controls in matters such as the reliability of the financial reporting system, the efficiency of the activities in order to eliminate the operational risks and compliance with the law. Furthermore, the efficiency and sufficiency of the internal control are supported with the directives in effect.

Total Amount of the Financial Benefits Given to Senior Executives:

The total amount of the remuneration and similar benefits paid to the top level executives by the Company as for the period that ended on 30 September 2025 is approximately TL 395.509 Thousand (Majority of the amount paid consist of salary payments and benefits provided).

b) Information on Business Partnerships, Associates, Subsidiaries, Joint Ventures and Branches

The Company's consolidated subsidiaries and branches are as follows:

Both our subsidiaries and joint ventures subject to consolidation fulfill their obligations regarding the tax legislation of the countries in which they operate and submit their audited financial statements and declarations regarding their tax assets/liabilities to the relevant authorities.

There is no cross-ownership relation between the companies subject to full consolidation (ASELSANNET, ASELSAN Bakü, ASELSAN Sivas Hassas Optik, ASELSAN Global, MKR-IC, ASELSAN Malaysia, ASELSAN Konya, BİTES, ASELSAN Ukraine, ASELSAN Latin America and ASELSAN UAE) and equity pick-up consolidation method (ASELSAN Bilkent Mikro Nano, IGG ASELSAN Integrated Systems, ASELSAN Kazakhstan Engineering, ASELSAN Middle East, TÜYAR Mikroelektronik Sanayi, BARQ QSTP LLC, TEKNOHAB Teknoloji Geliştirme Bölgesi, EHSİM, TR Eğitim ve Teknoloji, İstanbul Finans ve Teknoloji Üssü, ULAK, Adıyaman Kablo ve Konnektör) and the Company. Roketsan and Aspilsan are considered financial assets held for sale.

4- Main Factors That Affect the Performance, Investment and Dividend Policy of the Company

he Company carries on its business operations mainly in defense industry as well as in non-defense industry. According to the latest data, world defense expenditures has increased by 9,4% (the highest ratio increase in the last 15 years) reaching USD 2,7 Trillion and the ratio of total expenditures to total GDPs has realized as 2,5%. T

The summary table on the right side gives information about the top five countries, which accounted for 61% of the total defense expenditure in 2024 and Türkiye.

Rank	Country	Expenditure (m USD)	2024-2023 %∆	Expend./GDP %	Share in the World %
	World	2.718	9,0	2,5	100,0
	1 USA	997	6,0	3,4	37,6
	2 China	314	7,0	1,7	11,8
	3 Russia	149	38,0	7,1	5,5
	4 Germany	89	28,0	1,9	3,3
	5 India	86	2,0	2,3	3,2
	17 Türkiye	25	12,0	1,9	0,9

As of 2024, Türkiye's annual defense expenditures increased by 12% to USD 25 Billion and the ranking improved from 22nd to 17th in the world. The ratio of defense spending to GDP is 1,9%.

Due to the industry's nature, defense projects spread over years, furthermore a system project lasts approximately 4 to 5 years from its start to its delivery.

As of 30 September 2025, The Group's long-term plans which have been accordingly signed as contracts spread over years amounts to USD 18 Billion.

The determination of target regions/countries and focusing on these markets for marketing and direct sales as well as engaging in joint productions, transfer of technology to/from international platform producers and strategic initiatives for sales to third countries are concurrent to our sustainable growth objectives.

The Company's profit distribution policy is posted on www.aselsan.com website under Investor Relations/ Corporate Governance/Policies. According to the policy, at least 10% of the net profit is targeted to be distributed.

As a result of the 50th Ordinary General Assembly Meeting of the Company held on 29 May 2025; of the net profit for the period obtained from its activities in 2024;

• In accordance with Article 519/(1) of the Turkish Commercial Code, General Legal Reserves amounting to TL 456.000.000,- is going to be allocated,
• Out of net distributable profit to the shareholders for the period, calculated in the framework of the dividend distribution regulations and decisions of the Capital Markets Board, gross, TL 1.070.000.000,- (Kuruş 23,464912 per share of TL 1 and 23,464912% on the basis of the capital) (net TL 909.500.000,- Kuruş 19,945175 per share of TL 1 and 19,945175% on the basis of the capital) shall be distributed in the form of cash,
• In accordance with Article 519/2 of the Turkish Commercial Code, General Legal Reserves amounting to TL 84.200.000,- is going to be allocated,
• The remaining profit is going to be allocated as Extraordinary Legal Reserves,

and distribution of the cash dividends to the shareholders is decided to be distributed as of November 25, 2025

5- Enterprise Risk Management

SELSAN's Enterprise Risk Managements Policy aims; to take proper actions against uncertainties that threaten the existence of the Company and to protect corporate identity and stakeholders' interest at all conditions. Risk management is an integrated element of corporate governance. The information gathered within the scope of risk management activities in ASELSAN is integrated into decision making mechanisms. A

The "top-down" and "bottom-up" approach is being applied into Enterprise Risk Management activities together. Risks, which are significant enough to affect ASELSAN's achievement of its targets, are identified, evaluated, monitored and reported along with the risk responses and precautions to be taken. At ASELSAN; The Enterprise Risk Management process is regularly reviewed and improved. ASELSAN's employees and business processes are at the center of the Enterprise Risk Management System. In the developing and rapidly changing world, every risk that arises or increases in impact and probability is proactively followed, and the possible effects on the Company and the opportunities created by these risks are evaluated.

At ASELSAN, risks are followed under four main categories:

a) Main Risk Categories

Strategic Risks: Risks that may prevent ASELSAN from reaching its targets in short, medium or long terms are classified under this heading. Risks under this heading include factors such as; growth and continuity, changing customer expectations, technological changes and market share.

While ASELSAN manages its strategic risks effectively; it aims to increase its backlog, increase exports and to take part in sustainable works. In order to increase ASELSAN's market share and offer new products / services, ASELSAN seizes company merger / acquisition opportunities both at home and abroad. ASELSAN

also conducts business development activities successfully.

ASELSAN increases its research and development activities in order to meet changing customer expectations and changes in technology, and realizes the necessary infrastructure and technological investments. ASELSAN diversifies the geographical regions in sales, customer portfolio and the sectors in order to maintain its growth and continuity in the medium and long term.

Operational Risks: It is defined as the risks arising from errors and negligence that may occur while performing the operational activities of the company. Risks under this section include factors such as; production, supply chain, human resources, information technologies, natural disaster and terrorist attacks.

In order to ensure the continuity of the processes, in-house directives and functors have been prepared and necessary updates are being made when needed. Within the scope of the Internal Audit plan and work schedule prepared in ASELSAN, business processes are being audited and process improvements are made in line with the audit outputs.

Quality in production processes involving internal operations and suppliers is uncompromisable; where subcontractor and supplier development activities are carried without slowing down. In terms of managing Human Resources and increasing employee motivation; activities were made with the participation of employees from every level and process improvements were made. Security policies are sustained at the highest level in Information Technology applications. In this area, internal and external audits are carried out periodically and precautions are taken against probable cyberattacks and in the field of Information Technologies, business continuity in-house is provided.

Our all processes are administered by directives, quality plans, standards, audits and test instructions. Our processes have been certified by internationally accepted standards such as AS9100, ISO 9001, AQAP and CMMI so that our products and services are secured to protect quality standards. These certificates are renewed every year with the audits performed. Changes and improvements of international standards are being followed and our processes are developed accordingly.

Regarding risks, such as natural disasters, terrorist attacks, necessary precautions are taken, primarily insurances have been made, and drills are carried out.

Financial Risks: It refers to the risks arising from the financial structure and financial preferences of the company. Exchange rate, liquidity and interest rate risks are some risks under this heading.

The exchange rate risk, which is any kind of change that may occur in assets and / or liabilities as a result of exchange rate fluctuations in the future, ASELSAN aims to minimize the effect of exchange rate fluctuations by keeping the long and short foreign exchange position at a minimum level. The balance sheet methods have been used in managing the exchange rate risk. Implementations such as; making use of foreign exchange denominated loans in line with the company's export volume, matching the contract currency with the currency of the costs of the project, and signing the subcontractor contracts in line with the main contract currency are used.

ASELSAN eliminates the liquidity risk, which is known as the risk arising from default and inability to fund the assets, it monitors forecasted and actual cash flows regularly and ensures the continuity of adequate funds and credit lines by matching the maturity of financial assets and liabilities. In order to manage the interest rate risk arising from changes in assets and / or liabilities as a result of fluctuations in interest rates in the future, it conducts transactions with fixed interest rates and uses financial derivative instruments when necessary.

Compliance Risks: It refers to the risks associated with the Company's financial losses and / or loss of reputation as a result of the company's activities or the attitudes and behaviors of the company employees that are not in compliance with the legislation, regulations and standards. While conducting its activities, ASELSAN closely follows national and international standards with the best practices in the sector, and compliance with legislation and regulations is ensured at the highest level. In addition, by Internal Audit Precidency; the effectiveness of controls, compliance with legislation and ASELSAN regulations, compliance with ethical principles and controls to eliminate risks are being evaluated.

b) Early Detection and Management of Risk Committee Works

The Early Detection and Management of Risk Committee, which consists of the members of the Board of Directors, has been operating at ASELSAN since 2012 in order to ensure early detection of risks that may endanger the existence, development and continuity of the Company, to take necessary measures related to the identified risks and to manage the risks. The Chairman of the Committee is an Independent Board Member.

Committee; carries out its own activities in full compliance with the regulations of the Capital Markets Board and all the related legislation, especially article 378 of the Turkish Commercial Code No. 6102. In addition, the Early Detection of Risk System and Committee, established by ASELSAN, is subjected to independent audits annually and the Auditor Report stating that the activities performed is sufficient, is submitted to the Board of Directors. Committee conducted 5 meetings by the end of third quarter of 2025 in order to follow the works on early detection and management of risks and to make evaluations about this issue. The reports containing the works of the Committee were being submitted to the Board of Directors periodically.

c) Training

At ASELSAN, spreading risk management to the Company culture and creating risk awareness in each employee are among the basic elements that ensure the success of the Corporate Risk Management System. In this context, "Corporate Risk Awareness Training" and "Climate Change Risk and Opportunity Studies at ASELSAN" have been added to the vocational and on-the-job training programs of all ASELSAN personnel. It has become compulsory to take these trainings.

CLIMATE CHANGE

ASELSAN has been continuously working within the scope of Carbon Disclosure Project (CDP) Climate Change and Nature Reporting since 2010, achieving scores above the global and national averages. In the CDP reporting, it scores above the global and national averages in climate change, while it maintains its leadership position with the score it receives in water management.

According to the "Global Risks Report 2024" published by the World Economic Forum, as in previous years, the most important risks evaluated according to probability and impact level for the next decade are climate change risks. ASELSAN continues to take the necessary actions for the management of climate change risks and a sustainable world, especially CDP Climate Change and Nature Reporting, and maintains its place among the world's important defense industry leaders in this regard. In this context, it has made climate change and environmental risks, which are among the most important risks of our age, a part of the corporate risk system.

ASELSAN ranks first in the BIST Sustainability 25 Index, managed by Borsa Istanbul (BIST) and comprising companies that best fulfill sustainability criteria by receiving an A+ rating in all main assessment categories, with its ESG (Enviromental- Social- Governance) score.

6- Financial Information of the Company

he forecasts under the normal conditions regarding the Group's consolidated financial results for the 2025 year are presented below: T

	Inflation Adjusted
Financial Targets of 2025	Amount Ratio
Revenue Growth	>10%
EBITDA Margin (Adjusted without
Foreign Exchange Rate Differences)	>23%
Capital Expenditures	>20.000 Million TL

The Company, which has been in the most prestigious Defense Industry list since 2008, "Defense News Top 100", published by "Defense News" magazine, aims to increase its ranking in the list in following years. The Company ranked 43rd in the 2024 listing.

In order to achieve the sustainable growth:

• The quality and technological perspectives of the cooperation formed with the universities have been increased.
• ASELSAN employees are provided with the opportunity to study in the work environment with the initiation of ASELSAN Academy Postgraduate Training Program. The program serves the purpose of having the necessary technologies and developing existing technologies.
• In cooperation with the Ministry of National Education's Directorate of Vocational and Technical Education of the Republic and ASELSAN, aimed at contributing to the development of a qualified workforce needed by the defence industry, the first vocational and technical Anatolian high school in the field was established in 2019 in Ankara.
• The eco-system with the sub-industry companies and SME's is formed.
• Company is continuing its operations in non-defense electronic areas which requires high technology.
• Inorganic growth will also be evaluated as well as organic growth.

a) Financial Resources of the Company

The most substantial financial resources of the Company comprise the advance and interim payments taken within the scope of the contracts signed and profits generated by the main activities.

During the period between 1 January – 30 September 2025, the cash requirements were met with the available cash, cash inflows from operations and loans. As of 30 September 2025, there is a loan balance amounting to USD 921 Million.

Planned Measures to Improve the Financial Structure of the Company

As for the annual budgets and implementations for the period 2024-2025, the Group have adopted the principles as the basis to take care of savings in all kinds of expenditures, to follow up the advances and receivables closely, to pay attention to the proportion of the term and currency in purchasing and sales agreements and the risk status of the domestic/foreign suppliers and sub-contractors.

b) Research and Development Activities

The Group, as a leading defense industry establishment, develops advanced technology system solutions on land, air, naval and aerospace platforms, places great importance to Research and Development activities and technological gains since it was founded.

By following up on all kinds of technological developments pertaining to land, air, naval and aerospace platform product/system technologies, the Company not only applies technology but also designs, develops and produces product/system technologies in order to share or sell with/to national and international collaborations.

Projects are striving at maximum level in order to benefit from the technological opportunities existing in the country aiming to increase the national contribution share. For this purpose, cooperation is made with universities and various R&D organizations and importance is given to the use of local suppliers and subcontractors.

As for the projects carried out within the Group, Research and Development center application pursuant to the Law regarding the support of Research and Development activities numbered 5746 is being implemented. As for non-public R&D projects, the approval of TEYDEB (Technology and Innovation Support Programs Directorate) and ARDEB (Research Support Programs Presidency) are received and supported by the institutions. Within the Company, there are 11 Research and Development centers within the scope of Communication and Information Technologies (HBT), Microelectronics and Electro-Optics (MEOS), Avionics and Guidance Systems (AGS), Integrated Defense System Technologies (SST-1 and SST-2), Radar Electronic Warfare and Intelligence Systems (REHİS), Transportation, Security, Energy, Automation and Healthcare Systems (UGES-1 and UGES-2), Information Management Director (BYD) as well as Middle East Technical University (Teknokent and Titanyum). Currently, 9.216 staff are employed at the Group's Research and Development centers. The Company also carries on its activities at Hacettepe Teknokent, and Teknopark İstanbul within the scope of the Law numbered 4691 on Technology Development Regions. 59 staff at Teknopark İstanbul and 5 staff at Teknokent Hacettepe are employed.

c) Progress in Investments and Degree of Incentive Utilization

I. Investments

Directing the Company's resources to profitable, high value-added fields, where advanced technology is used, is anticipated in the first place by considering the global tendencies, technological developments and the actual and prospective requirements of all customers, particularly Turkish Armed Forces. The investments within the Company are carried out after detailed consideration of the technological plans, strategic plans and project requirements.

During the current period, the investments, which will meet the needs of infrastructure and equipment in order to be used in research and development projects have been sustained in compliance with the investment scheme in accordance with the policy of efficient use of resource. ASELSAN has incorporated a newly allocated area for investment purposes of 6,500 acre in Ankara Oğulbey with the aim of further strengthening its global position in defence technologies. Currently operating on an open area of 5,000 acres, with this expansion our Company has more than doubled its existing footprint. The foundations of a new investment worth USD 1.5 billion have been laid in this new campus at the ceremony attended by our President of the Republic of Türkiye. This investment, one of the largest industrial investments in Türkiye in recent years, also marks the single largest defence investment in the history of our Republic. Through this major initiative, higher-volume serial production of many critical technologies particularly Air Defence Systems that will form the STEEL DOME will be undertaken, while additional capabilities and infrastructure for design, testing, and production will be established.

II. Incentives

Income tax withholding incentive, insurance premium support, stamp tax exemption and Research and Development incentives are utilized within the scope of the Law numbered 5746. In accordance to the Law regarding the Incentive of Research and Development Activities numbered 6676 published on Legal Gazette numbered 29636 on 26 February 2016 and The Law Regarding the Amendments on Delegated Legislation, the content of the law and incentives has been broadened and additional exceptions has been given. Income tax withholding incentive, insurance premium support and stamp tax exemption are utilized by being calculated over the salaries of the Research and Development personnel and not being paid to the relevant institution and the Research and Development discount is utilized by means of applying a discount on the corporate tax return. Aforesaid law is valid until the date of 31 December 2028. Within the scope of the Teknokent Law numbered 4691, incentive on withholding income tax, insurance premium support and stamp tax exemption are applied. These are utilized by making calculations on Research and Development and software personnel wages and not being paid to the related institution. The gain obtained with reference to the execution of Technology Development Zones Law numbered 4691 is exempted from the corporate tax of 31 December 2028. Between the period 1 January – 30 September 2025 because of having Research and Development centers, TL 5.279.577 Thousand within the scope of income tax withholding incentive, promotion of insurance premium, stamp duty exception; as a result of being active at Hacettepe and İstanbul Technology Development Area Technopark TL 328.715 Thousand incentives have been used. Within the scope of the Research and Development Law No 5746 and Teknokent Law No 4691, TL 5.525 Thousand Corporate Tax advantage has been gained as of 1 January – 30 September 2025 period. At the periods when Group's Research and Development expenses, which is subject of Research and Development discount, is higher than the principal amount of Research and Development discount which is indicated at corporate tax return, Corporate Tax ratio is 25% of

distinction amount is evaluated as deferred tax income at financial tables.

Subject to the Tübitak Academic Support Programs; there are one ongoing project in the 1004-Center of Excellence Support Program. Subject to the Tübitak, one project in the 1511- Research Technology Development and Innovation Projects in Priority Areas (Technology Focused Industrial Movement Program), one project in the 1515-Frontier R&D Laboratory Support Programme.

The 1007 Public Institutions Research and Development Project Support Program has been formed in order to meet the requirements of the Public Institutions with Research and Development or to support the projects aimed at solving their problems. In scope of this support five Research and Development projects and one Horizon Europe Programme are still ongoing.

The incentives for the related programs are used periodically. In addition, there are seven projects carried out in the Tübitak 1707 Order-Based R&D Projects Program. There is one ongoing project within the scope of Tübitak 2247-A National Outstanding Researchers Program.

Incentives were received from Turquality due to the introduction, fair, and rental activities (TL 228.706 Thousand). Supports are received within the scope of TUBITAK projects. (TL 817 Thousand).

Within the context of "Taxes and Funds Exemption Certificate" received from Republic of Türkiye Ministry of Trade in order to increase exports and gain competitiveness in international markets, stamp duty and fee exemptions are used in export sales and deliveries and foreign exchange gain activities. (TL 312.674 Thousand)

Within the Decision Regarding the Governmental Grant in Investments, there are fourteen Investment Incentive Certificates taken from the Turkish Republic Ministry of Industry and Technology General Directorate of Incentives and Implementation. With such incentive certificates, VAT exemption and customs tax exclusion are utilized (TL 539.182 Thousand). VAT exemption is applied to our purchases, which are used for our deliveries subject to VAT 13/f Article and our exports (TL 5.469.631 Thousand).

Within the scope of "2030 Industrial and Technology Strategy and Large-Scale Investments", our company has been granted investment incentives for the Photon Detector and Nanotechnology Facility Investment, Radar System Integration and Production Facility Investment and Air Defense Systems Production and Test Facility, Smart Munition Production Facility Investment. Within the scope of these three investments, valued at 616 million USD, a total of 2.244 new employment, including 1.672 qualified personnel, are planned. These investments will contribute to a substantial increase in capacity for the large-scale serial production of critical technologies and will lead to the establishment of new research and development infrastructures. These infrastructures will be responsible for the production of key components of ÇELİKKUBBE, which is one of the most critical areas for our national security including radars, sensors, smart munition electronics, and air defense technologies.

d) Production, Capacity and Revenue

The Company can conduct complicated projects through its own integrated system architecture by means of knowledge, highly developed R&D infrastructure, well-equipped production lines and facilities.

According to the relevant sales agreement terms and conditions, the Company's revenue from projects contains order-based production, mass production product sales, services, commodities and progress billing sales. Sales terms and conditions are subject to change as for the respective agreements. Substantial part of production has been realized based on orders. All related processes are being managed efficiently since product requirements, quantities and prices are different. Works in order to perform distinctive business development and marketing activities in global markets to increase efficiency in international markets and exports have been continued. As of September 2025, net sales increased by 12% to TL 90,9 Billion and export to net sales ratio is 9,4%.

e) Financial Ratios

As of 30 September 2025, the Group's financial statements prepared in accordance with the Communiqué Series II, No: 14.1 "Communiqué on Capital Market Financial Reporting Standards" issued by Capital Markets Board. Based on this, financial ratios are presented as below.

Financial Ratios	Sep 25	Dec 24
Current Ratio	1,42	1,52
Liquidity Ratio	0,75	0,90
Short Term Financial Liabilities / Total Financial Liabilities	96,8%	70,1%
Total Financial Liabilities / Total Assets	11,8%	13,4%
Gross Profit Margin	30,9%	31,7%
Operating Profit Margin (EBIT)	20,8%	22,4%
Adjusted EBITDA Margin (*)	24,9%	25,2%
Net Profit Margin	12,8%	12,7%
Return On Equity (ROE)	12,7%	11,3%
Net Working Capital / Net Sales	25,6%	30,2%
Return on Assets (ROA)	7,4%	6,6%

* General administrative expenses, marketing expenses and research and development expenses are substracted from and current period's depreciation and amortization expenses are added to the gross profit in calculation of Adjusted EBITDA value. Other operating income and other operating expenses are not included in the calculation.

7- Changes in the Legislation Which Would Have Significant Impact on the Activities of the Company

Inflation Accounting

ith the decision taken on 17 March 2005, the CMB has announced that, effective from 1 January 2005, the application of inflation accounting is no longer required for companies operating in Türkiye and preparing their financial statements in accordance with CMB Accounting Standards and therefore the preparation and presentation of financial statements in accordance with International Accounting Standard 29 "Financial Reporting in Hyperinflationary Economies" is no longer required. W

On 23 November 2023, Public Oversight Accounting and Auditing Standards Authority ("POA") announced the application of inflation accounting in Türkiye and according to the announcement, financial statements of entities applying TFRS for the annual reporting period ending on or after 31 December 2025 should be presented as adjusted for the effects of inflation in accordance with the related accounting principles in TAS 29. As of the date of these financial statements, inflation adjustment has been made in accordance with TAS 29 while preparing the financial statements dated 30 September 2025.

TAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and that corresponding figures for previous periods be restated in the same terms using the general price index. One of the conditions that require the application of TAS 29 is a three-year cumulative inflation rate of approximately 100% or more. In Türkiye, based on the consumer price index ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"), the cumulative rate was 222% for the three-year period ended 30 September 2025 (31 December 2024: %291).

Adjustments for inflation have been calculated based on the coefficients calculated using the Consumer Price Index in Türkiye published by the Turkish Statistical Institute. As of 30 September 2025, the indices and coefficients used in the restatement of the accompanying financial statements are as follows:

Period	Index	Correction Coefficient
30 September 2025	3.367,22	1
31 December 2024	2.684,55	1,25430
30 September 2024	2.526,16	1,33294
31 December 2023	1.859,38	1,81094

The main lines of TAS 29 indexation transactions are as follows:

As of the balance sheet date, all items other than those stated in terms of current purchasing power are restated by using the relevant consumer price index coefficients. Prior year amounts are restated in the same way.

Financial statements of previous reporting periods have been restated to reflect the current purchasing power of money at the latest balance sheet date. The current period restatement factor has been applied to the prior period financial statements.

Monetary assets and liabilities are not restated because they are expressed in terms of the purchasing power of money at the balance sheet date. Monetary items are cash and items to be received or paid in cash. Non-monetary assets and liabilities are restated by reflecting the changes in the general price index from the date of acquisition or initial recognition to the balance sheet date in their acquisition costs and accumulated amortization amounts. Accordingly, property, plant and equipment, intangible assets, rightof-use assets and similar assets are restated to their acquisition values, which do not exceed their market values. Depreciation has been restated in a similar manner. Amounts included in shareholders' equity have been restated by applying the consumer price indices for the periods in which such amounts were contributed to or arose within the Company.

All items in the income statement, except for the effects of non-monetary items in the balance sheet on the income statement, have been restated by applying the multiples calculated over the periods when the income and expense accounts were initially recognized in the financial statements.

The gain or loss arising on the net monetary position as a result of general inflation is the difference between the restatement adjustments to non-monetary assets, equity items and income statement accounts. This gain or loss on the net monetary position is included in net profit.

All items presented in the statement of cash flows are restated for the effects of inflation in the measuring unit current at the end of the reporting period. The effect of inflation on cash flows from operating, investing and financial activities is attributed to the related item and the monetary gain or loss on cash and cash equivalents is presented separately.

8- Compliance Report on Corporate Governance Principles and Sustainability Principles Compliance Framework Report

"Corporate Governance Compliance Report" and "Sustainability Principles Compliance Framework Report" will be announced in the year-end report of the Board of Directors.

9- Information Regarding the Lawsuits of the Group

The lawsuits and execution proceedings filed by or against the Group as of 30 September 2025 are summarized in the table:

Statement	September 25 (TL Thousand)
Ongoing lawsuits filed by the Group	31.938
Execution proceedings carried on by the Group	982.839
Lawsuits proceedings carried against the Group	91.653
Execution proceedings carried against the Group	29.469
Lawsuits finalized in favor the Group within the period	5.253
Lawsuits finalized in against of the Group within the period	30.925

There has not been any final judicial decision against the Group due to the responsibility related with work accidents within the period.

10- Information Regarding the Transactions Made within the Reporting Period

a) Changes in the Articles of Association

There are no changes in the Articles of Association within the reporting period.

b) Collective Agreement Implementations, Rights and Benefits Provided to the Personnel and Workers

The Group recruited a total number of 2.128 people as the personnel including fixed-term contracted personnel, disabled and terror-stricken personnel during the period 1 January – 30 September 2025 and the number of people quit for the same period is 484.

The rights and benefits provided to the personnel by the Company are bonus payments, meal allowances, marriage benefits, maternity benefits, life insurance, transportation, private health insurance, and childcare and kindergarten benefits. The average number of personnel employed by the Group as of 30 September 2025 is 13.879.

c) If it is an affiliate company, the legal transactions carried out in favor of the parent company or its affiliate with the parent company, with an affiliate company connected to the parent company with the direction of the parent company and all other measures taken or avoided to be taken in favor of the parent company or its affiliate in the previous activity year

There has not been such an event within the reporting period.

d) If it is an affiliate company, whether any counter performance was realized for each legal transaction according to the known status and conditions at the time the legal transaction mentioned in article c was realized or at the time the measures were taken or avoided to be taken and whether the company incurred losses due to the taken or avoided measure and if the company incurred losses to observe whether this was equalized or not

There has not been any material event that affects the Company's financial statements within the period.

e) Information Regarding the Donations and Social Responsibility

Within the period of 1 January – 30 September 2025, the donation amount made by the Group is TL 753 Thousand.

f) Events After the Reporting Period

After the reporting period, the Group has signed contracts amounting to USD 719 Million.