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AKENERJİ ELEKTRİK ÜRETİM A.Ş.

Quarterly Report Nov 6, 2025

8730_rns_2025-11-06_95cf4cdb-2fd9-4204-9be5-4f3d8a0ee868.pdf

Quarterly Report

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(Convenience translation of a report and financial statements originally issued in Turkish)

Akenerji Elektrik Üretim A.Ş.

Condensed consolidated financial statements for the interim period ended 1 January - 30 September 2025

TABLE OF CONTENTS PAGE
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1-2
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS 3
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME 4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 6
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 7-37
NOTE 1 ORGANISATION OF GROUP AND NATURE OF OPERATIONS 7
NOTE 2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 8-13
NOTE 3 BORROWINGS 13-15
NOTE 4 PROPERTY, PLANT AND EQUIPMENT 16-18
NOTE 5 INTANGIBLE ASSETS 18
NOTE 6 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 19-21
NOTE 7 DERIVATIVE FINANCIAL INSTRUMENTS 22
NOTE 8 EQUITY 23-24
NOTE 9 TAX ASSETS AND LIABILITIES 24-26
NOTE 10 REVENUE AND COST OF SALES 27
NOTE 11 EXPENSES BY NATURE 28
NOTE 12 OTHER OPERATING INCOME AND EXPENSE 29
NOTE 13 OTHER INCOME AND EXPENSE FROM INVESTING ACTIVITIES 30
NOTE 14 FINANCIAL INCOME AND EXPENSE 30
NOTE 15 NET MONETARY GAIN/(LOSS) 31
NOTE 16 RELATED PARTY DISCLOSURES 32-34
NOTE 17 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 34-36
NOTE 18 FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS 37
NOTE 19 SUBSEQUENT EVENTS 37

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

Current period Prior period
Unaudited Audited
Notes 30 September 2025 31 December 2024
ASSETS
Current assets
Cash and cash equivalents 1.552.160 2.276.982
Trade receivables
- Due from related parties 16 37.563 15.516
- Due from third parties 502.130 866.799
Other receivables
- Due from third parties 169.749 163.787
Inventories 119.041 215.918
Prepaid expenses 94.961 221.437
Current income tax assets 9 27.757 21.622
Other current assets 228.799 119.023
Total current assets 2.732.160 3.901.084
Assets held for sale 60.344 60.344
Non - current assets
Other receivables
- Due from third parties 36.154 33.808
Financial investments 1.789 1.789
Inventories 97.587 125.225
Property, plant and equipment 4 36.186.152 37.552.486
Right of use assets 456.910 422.532
Intangible assets 5 763.949 761.779
Prepaid expenses 2.453 3.775
Deferred tax assets 9 190.259 269.312
Other non-current assests 428.978 461.134
Total non - current assets 38.164.231 39.631.840
TOTAL ASSETS 40.956.735 43.593.268

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

Current Period Prior Period
Unaudited Audited
Notes 30 September
2025
31 December
2024
LIABILITIES
Current liabilities
Short term borrowings 3 294.466 382.322
Short term portion of long-term borrowings
- Bank loans 3 10.037.320 1.918.767
- Lease payables 3 68.195 70.538
Trade payables
- Due to related parties 16 26.818 243.286
- Due to third parties 1.575.367 1.675.699
Employee benefit obligations 17.504 13.050
Other payables
- Other payables to third parties
Derivative instruments
7 213.233
73.920
366.402
59.642
Current income tax liabilities 9 3.316
Deferred income 437 536
Short term provisions
- Provisions for employee benefits 43.522 57.392
- Other short-term provisions 6 91.058 109.329
Total current liabilities 12.445.156 4.896.963
Non-current liabilities
Long term borrowings
- Bank loans 3 11.235.443 20.475.507
-Lease payables 3 289.529 323.889
Other payables
- Due to third parties 688.086 696.204
Long term provisions
-Provisions for employee benefits
Deferred tax liabilities
9 65.801
5.014
68.242
16.486
Total non-current liabilities 12.283.873 21.580.328
EQUITY
Share capital 8 729.164 729.164
Adjustments to share capital 8 15.615.159 15.615.159
Share premiums 1.469.583 1.469.583
Other comprehensive income/(expense) not to be reclassified to
profit/loss
Losses on revaluation and remeasurement
- Losses on re-measurement of defined benefit plans (70.525) (66.223)
Restricted reserves
- Legal reserves 8 318.051 318.051
- Other reserves
Accumulated income/(losses)
(21.184)
(928.573)
(21.184)
3.207.766
Net loss for the period (883.969) (4.136.339)
Total equity 16.227.706 17.115.977

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE INTERIM PERIODS BETWEEN 1 JANUARY – 30 SEPTEMBER 2025 AND 2024

Current period Prior period
Unaudited Unaudited
1 January - 1 January - 1 July - 1 July -
30 September 30 September 30 September 30 September
Notes 2025 2024 2025 2024
Revenue 10 15.438.888 24.130.799 5.169.265 9.564.047
Cost of sales (-) 10 (15.706.014) (23.782.088) (5.473.579) (9.197.285)
Gross profit/(loss) (267.126) 348.711 (304.314) 366.762
General administrative expenses (-) (616.157) (633.369) (164.636) (217.674)
Other operating income 12 459.865 446.418 247.839 154.670
Other operating expenses (-) 12 (386.254) (307.015) (217.027) (76.336)
Operating profit/(loss) (809.672) (145.255) (438.138) 227.422
Income from investment activities 13 2.203 4.132 2.129 (226)
Expenses from investment activities 13 (431) (27.663) (4) (27.663)
Operating profit/(loss) before
financial income/(expense) (807.900) (168.786) (436.013) 199.533
Financial income 14 479.103 434.825 122.293 73.639
Financial expense (-) 14 (5.222.485) (5.091.402) (1.512.156) (1.394.947)
Monetary gain 15 4.755.629 7.095.481 1.519.196 1.950.366
Profit/(loss) before tax (795.653) 2.270.118 (306.680) 828.591
Tax income/(expense)
Current income tax expense (-) 9 (10.608) - (679) 32
Deferred tax income/(expense) 9 (77.708) (955.177) 1.120 (455.401)
Net income/(loss) for the period (883.969) 1.314.941 (306.239) 373.222
Equity holders of the parent (883.969) 1.314.941 (306.239) 373.222

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE PERIODS BETWEEN 1 JANUARY - 30 SEPTEMBER 2025 AND 2024

Current period Prior period
Unaudited Unaudited
1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Net income/(loss) for the period (883.969) 1.314.941 (306.239) 373.222
Other comprehensive income/ (expense)
Not to be reclassified to profit or loss
Actuarial gain/ (loss) arising from defined
benefit plans (5.736) (13.181) 2.832 (464)
Deferred tax effect 1.434 3.295 (695) 130
Other comprehensive income/(expense) (4.302) (9.886) 2.137 (334)
Total comprehensive income/(expense) (888.271) 1.305.055 (304.102) 372.888

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE INTERIM PERIODS BETWEEN 1 JANUARY - 30 SEPTEMBER 2025 AND 2024

income /(expenses) Other comprehensive
not to be
Share
capital
Adjustments to
share capital
Share
premiums
reclassified to profit or loss
Increase on
revaluation of
property, plant and
equipment(*)
Losses on
re-measurement
of defined benefit
plans) Other reserves Restricted reserves
Legal
reserves
Retained
earnings/
(accumulated
losses)
Net
profit/(loss)for the
period
Total equity
1 January 2024 729.164 15.615.159 1.469.583 3.875.806 (58.649) (21.184) 318.051 (6.097.878) 9.126.866 24.956.918
Transfers
Total comprehensive
- - - - - - - 9.126.866 (9.126.866) -
income/(expense)
Other adjustments (*)
-
-
-
-
-
-
-
(134.106)
(9.886)
-
-
-
-
-
-
134.106
1.314.941
-
1.305.055
-
30 September 2024 729.164 15.615.159 1.469.583 3.741.700 (68.535) (21.184) 318.051 3.163.094 1.314.941 26.261.973
1 January 2025 729.164 15.615.159 1.469.583 - (66.223) (21.184) 318.051 3.207.766 (4.136.339) 17.115.977
Transfers
Total compherensive expense
-
-
-
-
-
-
-
-
-
(4.302)
-
-
-
-
(4.136.339)
-
4.136.339
(883.969)
-
(888.271)
30 September 2025 729.164 15.615.159 1.469.583 - (70.525) (21.184) 318.051 (928.573) (883.969) 16.227.706

(*) As of September 30, 2025, there is no difference between the depreciation calculated based on the carrying amounts of the revalued assets and the depreciation calculated based on their acquisition costs (30 September 2024: TL 134.106 were reclassified to accumulated losses from revaluation fund of property, plant and equipment.)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIODS BETWEEN 1 JANUARY - 30 SEPTEMBER 2025 AND 2024

Current Period
Unaudited
Prior Period
Unaudited
Notes 1 January -
30 September
2025
1 January -
30 September
2024
A. Cash flows from operating activities 741.810 2.016.012
Net income/ (loss) for the period (883.969) 1.314.941
Adjustments to reconcile net income/(loss) for the period 1.537.520 338.150
Adjustments for depreciation and amortisation expenses 11 1.515.367 1.946.742
Adjustments for provisions
- Adjustments for provisions for employee benefits 21.611 70.011
- Adjustments for litigation provisions 6 2.731 (11.779)
- Adjustments for other provisions 6 (9.817) (17.009)
Adjustments for interest income (283.865) (260.995)
Adjustments for interest expense 1.478.766 1.955.986
Adjustments for financial investments - (1.476)
Adjustments for (gain)/loss on sale of property, plant and equipment and impairment (1.772) 27.592
Adjustments for unrealized foreign exchange differences 3.512.226 2.785.440
Fair value adjustments
-Adjustments for fair value of derivative financial instruments 29.304 (40.120)
Adjustments for tax expense 9 88.316 955.177
Monetary gain (4.815.347) (7.071.419)
Changes in working capital 118.936 418.887
Adjustments for (increase)/ decrease in trade receivables from related parties (27.996) 177.166
Adjustments for (increase)/ decrease in trade receivables from third parties 269.450 (190.630)
Adjustments for (increase)/ decrease in other receivables from third parties (53.579) (267.030)
Adjustments for (increase)/ decrease in inventories 60.222 49.131
Adjustments for (increase)/ decrease in prepaid expenses 98.045 178.167
Adjustments for (increase)/ decrease in other assets (216.967) (112.747)
Adjustments for increase/ (decrease) in trade payables to related parties (185.743) (210.509)
Adjustments for increase/ (decrease) in trade payables to third parties 266.039 628.695
Adjustments for increase/ (decrease) in derivative financial instruments - 40.999
Adjustments for increase/ (decrease) in deferred income (81) 162.914
Adjustments for increase/ (decrease) in employee benefit obligations 7.890 (1.494)
Adjustments for increase/ (decrease) in other payables (98.344) (35.775)
Cash flows from operating activities 772.487 2.071.978
(17.250) (48.932)
(13.427) (7.034)
Provisions related to provisions for employee benefits
Tax receipts/(payments)
B. Cash flows from investing activities (120.703)
Cash outflows due to purchase of property, plant and equipment 4 (90.404)
Cash outflows due to purchase of intangible assets 5 (35.013)
Cash inflows due to disposal of property, plant and equipment and intangible assets 4.714
Other cash inflows/(outflows) -
C. Cash flows from investing activities (906.559)
Cash inflows on borrowings received 400.060
Cash inflows/outflows due to repayment of borrowings (823.625)
Cash outflows from payments of rent agreements (90.680)
Interest paid (651.012)
İnterest received
Other cash inflows/ (outflows) (*)
283.441
(24.743)
Net increase/ (decrease) in cash and cash equivalents (285.452)
Monetary loss through cash and cash equivalents (456.258) 19.985
(212.908)
(75.344)
107.878
200.359
(796.023)
9.886.126
(6.183.625)
(103.420)
(4.590.336)
184.016
11.216
1.239.974
(546.866)
Cash and cash equivalents at the beginning of the period (*) 2.250.457 2.071.856

(*) Cash and cash equivalents at the beginning of the period and at the end of the period does not include interest accruals and restricted deposits, and the changes in restricted deposits are provided in "Other cash inflows / (outflows)".

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 1 - ORGANISATION OF GROUP AND NATURE OF OPERATIONS

Akenerji Elektrik Üretim A.Ş. ("the Company" or "Akenerji") is engaged in establishing, renting and operating facilities of electrical energy production plant, producing electricity and trading electricity to the customers. The Company was established by Akkök Sanayi Yatırım ve Geliştirme A.Ş. in 1989 (Akkök Sanayi Yatırım ve Geliştirme A.Ş. is registered as Akkök Holding A.Ş. on 13 May 2014). On 14 May 2009, the Company has become a joint venture between Akkök Holding A.Ş. and CEZ a.s.

The Company is registered in Turkey and its registered address is as follows;

Miralay Şefik Bey Sokak No: 15 Akhan Kat: 3-4 Gümüşsuyu / Istanbul - Turkey

The Company is registered to the Capital Markets Board ("CMB"), and its shares are publicly traded in Istanbul Stock Exchange ("ISE"). As of 30 September 2025, the Company's free float is 25,28% (31 December 2024: 25,28%).

As of 30 September 2025, the number of employees employed by Akenerji and its subsidiaries (Akenerji and its subsidiaries will be referred called as the "Group") is 252 (31 December 2024: 283).

The condensed consolidated financial statements for the interim period 1 January - 30 September 2025 were approved by the Board of Directors on 6 November 2025.

The nature of business and registered addresses of the entities included in the consolidation ("Subsidiaries") are provided below:

Subsidiaries Nature of
business
Registered
address
Akenerji Elektrik Enerjisi İthalat-İhracat
ve Toptan Ticaret A.Ş. ("Akenerji Toptan") Electricity trading Gümüşsuyu/İstanbul
Akel Kemah Elektrik Üretim A.Ş.
("Akel Kemah") Electricity generation and trading Gümüşsuyu/İstanbul
Akenerji Doğalgaz İthalat İhracat ve Toptan
Ticaret A.Ş. ("Akenerji Doğalgaz") Natural gas trading Gümüşsuyu/İstanbul
Akel Sungurlu Elektrik Üretim A.Ş.
("Akel Sungurlu") Electricity generation Gümüşsuyu/İstanbul
5ER Enerji Tarım Hayvancılık A.Ş.
("5ER Enerji") Electricity generation Gümüşsuyu/İstanbul
Akenerji Company For Electric Energy Import
And Export and Wholesale Trading/Contribution Branch
("Akenerji Toptan Khabat") Electricity trading Erbil/Iraq
Aken Europe B.V.
("Aken B.V.") Electricity trading Amsterdam/Netherlands

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1 Basis of presentation

Principles of Preparation of Interim Condensed Consolidated Financial Statements

The condensed consolidated financial statements of the Group have been prepared in accordance with the Turkish Financial Reporting Standards, ("TFRS") and interpretations as adopted in line with international standards by the Public Oversight Accounting and Auditing Standards Authority of Turkey ("POA") in line with the communiqué numbered II-14.1 "Communiqué on the Principles of Financial Reporting In Capital Markets" ("the Communiqué") announced by the Capital Markets Board of Turkey ("CMB") on June 13, 2013 which is published on Official Gazette numbered 28676. TFRS are updated in harmony with the changes and updates in International Financial and Accounting Standards ("IFRS") by the communiqués announced by the POA.

The condensed interim consolidated financial statements are presented in accordance with, "Announcement regarding with TAS/TFRS Taxanomy" which was published on 3 July 2024 by POA and the format and mandatory information recommended by CMB.

In accordance with the TAS 34 "Interim Financial Reporting", entities are allowed to prepare a complete or condensed set of interim financial statements. In this respect, the Group has preferred to prepare condensed consolidated financial statements in the interim periods. Accordingly, these interim condensed consolidated financial statements does not include all required explanatory notes as should be provided and should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2024.

The Group and its Turkish subsidiaries, associates and joint ventures maintain their books of accounts and prepare their statutory financial statements in accordance with the Turkish Commercial Code ("TCC"), tax legislation, the Uniform Chart of Accounts issued by the Ministry of Finance and principles issued by CMB. The consolidated financial statements are based on the statutory records, which are maintained under historical cost conventions except for the derivative financial instruments, financial investmens and revaluated property, plant and equipment presented a fair values, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with TAS/TFRS.

Adjustment of consolidated financial statements in hyperinflation periods

Pursuant to the decision of the Capital Markets Board of Türkiye (CMB) dated December 28, 2023 and numbered 81/1820, it has been resolved that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards (TFRS) shall implement inflation accounting by applying the provisions of TAS 29 "Financial Reporting in Hyperinflationary Economies", starting from their annual financial statements for the periods ending on or after December 31, 2023.

The Group has prepared its consolidated financial statements for the period ended 30 September 2025 by applying TAS 29, based on the relevant Capital Markets Board (CMB) decision, the announcement made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023, and the published 'Implementation Guide on Financial Reporting in Hyperinflationary Economies.

According to the standard, financial statements prepared in the currency of a hyperinflationary economy must be expressed in terms of the purchasing power of that currency as of the balance sheet date. Prior period financial statements are also restated in the same current measurement unit as of the end of the reporting period for comparative purposes. Accordingly, the Group has restated and presented its consolidated financial statements dated 30 September, 2024 and 31 December, 2024 in purchasing power terms as of 30 September, 2025.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

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

The adjustments made in accordance with TAS 29 were performed using the adjustment coefficient calculated based on the Consumer Price Index ("CPI") published by the Turkish Statistical Institute ("TÜİK"). As of September 30, 2025, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

Adjustment 3 year cumulative
Date Index correlation inflation ratios
30 September 2025 3.367,22 1,00000 222%
31 December 2024 2.684,55 1,25430 291%
30 September 2024 2.526,16 1,33294 343%

The main components of the Group's adjustments for financial reporting in hyperinflationary economies are as follows:

  • a) The consolidated financial statements for the current period, prepared in Turkish Lira (TL), are expressed in terms of purchasing power at the balance sheet date. Amounts from prior reporting periods have also been adjusted to reflect the purchasing power at the end of the current reporting period.
  • b) Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power on the balance sheet date. If the inflation-adjusted values of nonmonetary items exceed their recoverable amount or net realizable value, the provisions of TAS 36 "Impairment of Assets" and TAS 2 "Inventories" are applied, respectively.
  • c) Non-monetary assets and liabilities, as well as equity items that are not expressed in terms of the current purchasing power at the balance sheet date, have been adjusted using the relevant correction coefficients.
  • d) All income statement accounts, excluding income statement accounts that are counterparty to nonmonetary accounts of balance sheet, are restated based on the price correlations of the date they entered financial statements.
  • e) The effect of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary gain/(losses) account in the consolidated profit or loss statement. (Note15)

2.2 Basis of consolidation

  • a) The consolidated financial statements include the accounts of the parent company, Akenerji, and its Subsidiaries on the basis set out in sections (b) to (c) below. The financial statements of the companies included in the scope of consolidation have been prepared at the date of the consolidated financial statements and have been prepared in accordance with TAS/TFRS by applying uniform accounting policies and presentation. The results of operations of Subsidiaries are included or excluded from their effective dates of acquisition or disposal respectively.
  • b) Subsidiaries are companies in which Akenerji has the power to control the financial and operating policies for the benefit of itself, either through the power to exercise more than 50% of voting rights related to shares in the companies as a result of shares owned directly and/or indirectly by itself.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

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

The table below shows the effective ownership percentages of subsidiaries and associates as of 30 September 2025 and 31 December 2024, along with the voting rights percentages held directly or indirectly by the Group.

Effective shareholding (%) Ownership interest (%)
Subsidiaries 30 September
2025
31 December
2024
30 September
2025
31 December
2024
Akenerji Toptan 100,00 100,00 100,00 100,00
Ak-el Kemah 100,00 100,00 100,00 100,00
Akenerji Doğalgaz 100,00 100,00 100,00 100,00
Akel Sungurlu (*) - - 100,00 100,00
5ER Enerji (*) - - 100,00 100,00
Akenerji Toptan Khabat (**) - - 100,00 100,00
Aken B.V. 100,00 100,00 100,00 100,00

(*) Within the scope of the capacity rental agreements and usufruct right agreements signed by Akenerji Toptan, since Akenerji Toptan has a free purchase option for the shares of Akel Sungurlu and 5ER Enerji at any time and holds control over these companies, Akel Sungurlu and 5ER Enerji have been consolidated in the financial statements using the full consolidation method. As the Sungurlu Biomass Power Plant ("Sungurlu BPP"), operating under Akel Sungurlu, is actively planned to be sold and is highly likely to be disposed of within the short-term, it has been classified under "non-current assets held for sale", and has been presented in the financial statements at the lower of its net realizable value and book value.

Subsidiaries are consolidated from the date on which the control is transferred to the Group and are deconsolidated from the date that the control ceases. Where necessary, accounting policies for subsidiaries have been changed to ensure consistency with the policies adopted by the Group.

Carrying values of the Subsidiaries' shares held by the Company are eliminated against the related equity of subsidiaries. Intercompany transactions and balances between Akenerji and its subsidiaries are eliminated on consolidation. Dividends arising from shares held by the Company in its subsidiaries are eliminated from income for the period and equity, respectively.

2.3 The new standards, amendments and interpretations

The accounting policies adopted in preparation of the consolidated financial statements as of 30 September 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and Turkey Financial Reporting Interpretations Committee's ("TFRIC") interpretations effective as of 1 January 2025.

i) The new standards, amendments and interpretations which are effective as of 30 September 2025 are as follows:

- Amendments to IAS 21 - Lack of Exchangeability;

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

(**) Branch of the Subsidiary, which operate in a different country, are separately presented.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

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

i) Standards, amendments and interpretations that are issued but not effective as at 30 September 2025

Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the interim condensed 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.

  • - Amendment to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments;
  • - Annual improvements to IFRS Volume 11;
  • - Amendment to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity;
  • - IFRS 18 Presentation and Disclosure in Financial Statements;
  • - IFRS 19 Subsidiaries without Public Accountability: Disclosures;
  • - IFRS 17 The new standard for insurance contracts;

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

2.4 Restatement and errors in the accounting policies and estimates

Any change in the accounting policies resulted from the first time adoption of a new standard is made either retrospectively or prospectively in accordance with the transition requirements. Changes without any transition requirement, material changes in accounting policies or material errors are corrected, retrospectively by restating the prior period consolidated financial statements. If changes in accounting estimates are related to only one period, they are recognised in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.

2.5 Comparatives and restatement of prior year financial statements

The Group prepares comparative consolidated financial statements, to enable readers to determine financial position and performance trends. For the purposes of effective comparison, comparative financial statements can be reclassified when deemed necessary by the Group, where descriptions on significant differences are disclosed.

2.6 Critical accounting estimates and judgments

The preparation of interim condensed consolidated financial statements requires the use of estimates and assumptions that could affect the reported amounts of assets and liabilities as of the balance sheet date, as well as the disclosure of contingent assets and liabilities and the amounts of reported income and expenses for the period. Although these estimates and assumptions are based on the best information available to the Group's management regarding current events and transactions, actual results may differ from these assumptions.

The estimates and assumptions that are material to the carrying values of assets and liabilities as well as the results of operations are outlined below:

Deferred tax assets for the carry forward tax losses:

Deferred tax assets are accounted for only where it is likely that related temporary differences and accumulated losses will be recovered through expected future profits or will be offsetted from the deferred tax liabilities incurred on the temporary differences will be recovered at the same date.

As of 30 September 2025, as a result of the studies performed, the Group recognized no deferred tax assets on carry forward tax losses (31 December 2024: None).

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

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

Carry forward tax losses amounting to TL 10.626.506 (31 December 2024: TL 5.190.134) (Note 9). As of 30 September 2025, the deferred tax asset has not been calculated by the Group considering its expected future profits and the related deferred tax liabilities for the relevant periods.

Explanations for revaluation method and fair value measurement

The Group has chosen revaluation method instead of historical cost model as an accounting policy among application methods mentioned under TAS 16 for lands, land improvements, buildings, machinery and equipment belong to its power plants commencing from 30 September 2015.

An independent valuation firm has been authorized for revaluation because using of long-term price expectation, electricity generation expectation, discount rate, profit margin between electricity and natural gas prices ("spark spread"), and capacity utilization rate forecasts which are sensitive to sectoral and economic variables and also complexity of inputs and calculations. As of 31 December 2024, the fair value which is determined with valuation study by an independent valuation company which has CMB license, is used for lands, land improvements, buildings, machinery and equipment. In the aforementioned valuation and impairment studies, "income reduction method - discounted cash flow analysis " was applied.

Income Approach, discounted cash flow analysis (Level 3) is used by the valuation company for valuation reports of 31 December 2024 aims to determine fair value of lands, land improvements, buildings, machineries and equipment of Uluabat Hydroelectric Power Plant (HPP), Ayyıldız Wind Farm Power Plant (WFPP), Burç HPP, Feke I HPP, Feke II HPP, Bulam HPP, Gökkaya HPP, Himmetli HPP Konya Biomass Power Plant (BPP), Konya Solar Power Plant (SPP) and Erzin Natural Gas Combined Cycle Power Plant (NGCCPP) which are belong to Akenerji assets. For the valuation of the Sungurlu BPP facility, the "Cost Approach Method" has been applied.

Since long term electricity prices and spark spreads are the most important inputs of "Income Approach discounted cash flow analysis", an independent consultancy and technology firm, which operates in energy market, has been hired. The most important inputs of model determine long term electricity prices are; long term electricity demand, entrance of new plants, exit of old plant, renewable total capacity, evolution of capacity factor, carbon market expectations, natural gas and coal prices, evolution of electricity import export, and development in the efficiency of thermal plants.

Changes in the spark spread are used in the model impact generation at the Erzin natural gas combined cycle power plant. For hydroelectric power plants (HPPs), as well as the Konya and Ayyıldız facilities, generation forecasts have been prepared using historical generation data and feasibility reports. In valuation models prepared in USD terms, the discount rate has been determined as 9,29% in real terms, considering the prevailing macroeconomic market conditions. An increase in the discount rate negatively affects the fair value of the power plants. The portion of the relevant valuation results related to the decrease in value that is associated with "Gains/(losses) on revaluation of property, plant and equipment" has been recognized in the consolidated statement of other comprehensive income statement, while the remaining amount has been accounted for in the consolidated statement of profit or loss statement. The valuation report is prepared by an independent valuation firm holding the relevant Capital Markets Board (CMB) license and possessing the necessary professional expertise.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

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

2.7 Going concern

The Group considers it appropriate to prepare its consolidated financial statements on a going concern basis for the foreseeable future.

As of 30 September 2025, the Group's current liabilities exceeded its current assets by TL 9.712.996. This situation mainly arises from the reclassification of a bank loan amounting to TL 8.036.675 with a maturity date of 27 March 2026, to short-term bank borrowings. Taking into consideration its current financial position, ongoing negotiations with banks, cash flow projections, and expected EBITDA performance, the Group has assessed that there is no significant risk regarding its ability to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis.

The Group is continuing its negotiations with Yapı ve Kredi Bankası A.Ş. regarding the extension of the maturity of the loan with a nominal value of USD 180 million, which was utilized in 2024 and is due on 27 March 2026. The Group anticipates that, through its financing strategies and liquidity management practices, all short-term obligations can be met on time.

2.8 Seasonality of Group's operations

Due to the nature of the industry in which the Group operates, its business volume exhibits seasonal fluctuations. Business volume tends to be higher in the second quarter for hydroelectric power plants and in the first quarter for wind power plants. Demand, on the other hand is generally higher in the third quarter. Seasonality does not have a significant impact on the business volume of the Group's remaining segments.

NOTE 3 - BORROWINGS

The details of borrowings of the Group as of 30 September 2025 and 31 December 2024 are as follows:

30 September 2025 31 December 2024
Short term borrowings
- Bank loans 294.466 382.322
Total short term borrowings 294.466 382.322
Short-term portion of long term borrowings
- Bank loans 10.037.320 1.918.767
- Lease liabilities 68.195 70.538
Total short-term portion of long term borrowings 10.105.515 1.989.305
Long term borrowings
- Bank loans 11.235.443 20.475.507
- Lease liabilities 289.529 323.889
Total long term borrowings 11.524.972 20.799.396
Total short term and long term borrowings 21.924.953 23.171.023

Letters of guarantee given, pledges and mortgages related to financial liabilities are disclosed in Note 6.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 3 - BORROWINGS (Continued)

As of 30 September 2025 and 31 December 2024, the original currencies and weighted average interest rates for short and long-term financial liabilities are as follows:

30 September 2025
Currency Effective
Interest
rate %
Original
Amount
Amount in TL
Short term borrowings TL 23,33 294.466 294.466
Total short term borrowings 294.466
Short term portion of long-term bank loans USD 8,08 241.824 10.037.320
Short term portion of long-term lease liabilities
Interest cost of short-term portion of long-term
EUR 5,50 1.449 70.643
lease liabilities (-) EUR 5,50 (213) (10.403)
Short term portion of long-term lease liabilities TL 19,08 7.955 7.955
Total short term portion of long term borrowings 10.105.515
Long term bank loans USD 8,08 270.689 11.235.443
Long term lease liabilities EUR 5,50 3.525 171.832
Interest cost of long term lease liabilities (-) EUR 5,50 (935) (45.573)
Long term lease liabilities TL 19,08 163.270 163.270
Total long term borrowings 11.524.972
31 December 2024
Effective
Interest Original
Currency rate % Amount Amount in TL
Short term borrowings TL 26,93 382.322 382.322
Total short term borrowings 382.322
Short term portion of long-term bank loans USD 8,08 43.360 1.918.767
Short term portion of long-term lease liabilities EUR 5,97 1.580 72.814
Interest cost of short-term portion of long-term
lease liabilities (-) EUR 5,97 (291) (13.397)
Short term portion of long-term lease liabilities TL 19,26 11.121 11.121
Total short term portion of long term borrowings 1.989.305
Long term bank loans USD 8,08 462.703 20.475.507
Long term lease liabilities EUR 5,97 5.071 233.649
Interest cost of long term lease liabilities (-) EUR 5,97 (1.292) (59.553)
Long term lease liabilities TL 19,26 149.793 149.793
Total long term borrowings 20.799.396

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 3 - BORROWINGS (Continued)

As of 30 September 2025, all of the Euro finance lease liabilities of the Group are subject to floating interest rate of Euribor + 3,4% (31 December 2024: All of the Euro finance lease liabilities of the Group are subject to floating interest rate of Euribor + 3,4%).

The details of redemption schedule of the long term bank borrowings as of 30 September 2025 and 31 December 2024 are as follows:

30 September 2025 31 December 2024
Up to 1 - 2 years 2.131.028 10.217.055
Up to 2 - 3 years 2.038.730 2.182.758
Up to 3 - 4 years 1.785.893 1.907.788
Up to 4 - 5 years 1.678.958 1.685.637
More than 5 years 3.600.834 4.482.269
11.235.443 20.475.507

The principal repayment schedule of the Group's long-term finance lease obligations as of 30 September 2025 and 31 December 2024 is as follows:

30 September 2025 31 December 2024
Up to 1-2 years 64.877 62.475
Up to 2-3 years 64.756 59.516
Up to 3-4 years 1.424 58.981
Up to 4-5 years 410 3.957
Up to 5-6 years 483 362
Up to 6-7 years 571 428
Up to 7-8 years 677 505
Up to 8-9 years 808 601
Up to 9-10 years 972 717
More than 10 years 154.551 136.347
289.529 323.889

As of 30 September 2025 and 2024, the movements of borrowings are as follows:

2025 2024
1 January 23.171.023 28.589.349
Foreign exchange differences 3.512.226 2.785.440
Change in interest accruals 1.430.700 1.900.810
Changes in lease liabilities 58.042 85.102
Cash flow impact (1.165.257) (991.255)
Monetary gain (5.081.781) (8.026.632)
30 September 21.924.953 24.342.814

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

1 January
2025
Additions Transfers Disposals 30 September
2025
Cost
Lands 1.892 - - - 1.892
Land improvements
(*)
23.786.606 - - - 23.786.606
Buildings 5.752.074 - - - 5.752.074
Machinery and equipment
(**)
23.408.812 9.986 325.531 - 23.744.329
Motor
vehicles
40.838 2.574 - (2.980) 40.432
Furnitures and fixtures 283.821 8.759 - (50.614) 241.966
Special costs 129.827 581 - (26) 130.382
Construction in progress 415.936 68.504 (325.531) (2.325) 156.584
53.819.806 90.404 - (55.945) 53.854.265
Accumulated depreciation
Land improvements (6.241.493) (541.419) - - (6.782.912)
Buildings (1.179.882) (118.698) - - (1.298.580)
Machinery and equipment (8.564.983) (773.990) - - (9.338.973)
Motor
vehicles
(31.296) (4.247) - 2.980 (32.563)
Furnitures and fixtures (217.316) (11.557) - 50.011 (178.862)
Special costs (32.350) (3.899) - 26 (36.223)
(16.267.320) (1.453.810) - 53.017 (17.668.113)
Net book value 37.552.486 36.186.152

(*) Within the capacity increase project of Ayyıldız wind power plant, the cost of land improvement acquired through finance lease on 27 January 2017 is amounting to TL 5.566. As of 30 September 2025, the total amount of accumulated depreciation of related land improvement is TL 1.282.

Current period depreciation expense amounting to TL 1.449.559 has been included in cost of sales and TL 4.251 has been included in general administrative expenses.

(**) Within the capacity increase project of Ayyıldız wind power plant, the cost of machinery and equipment acquired through finance lease on 27 January 2017 is amounting to TL 552.926. As of 30 September 2025, the total amount of accumulated depreciation of the related machinery and equipment is TL 483.810.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT (Continued)

1 January
2024
Additions Transfers Disposals 30 September
2024
Cost
Lands 3.547 - - - 3.547
Land improvements
(*)
30.440.525 35.175 - - 30.475.700
Buildings 6.924.109 1.771 - - 6.925.880
Machinery and equipment
(**)
26.546.757 19.784 238.953 - 26.805.494
Motor
vehicles
38.306 2.504 - - 40.810
Furnitures and fixtures 281.389 8.020 - (5.937) 283.472
Special costs 184.669 2.619 - (58.445) 128.843
Construction in progress 558.323 143.035 (239.504) (40.563) 421.291
64.977.625 212.908 (551) (104.945) 65.085.037
Accumulated depreciation
Land improvements (5.262.879) (739.806) - - (6.002.685)
Buildings (984.016) (149.519) - - (1.133.535)
Machinery and equipment (7.323.271) (961.038) - - (8.284.309)
Motor
vehicles
(25.387) (4.427) - - (29.814)
Furnitures and fixtures (208.237) (5.393) - 209 (213.421)
Special costs (28.468) (3.879) - 1.343 (31.004)
(13.832.258) (1.864.062) - 1.552 (15.694.768)
Net book value 51.145.367 49.390.269

(*) Within the capacity increase project of Ayyıldız wind power plant, the cost of land improvement acquired through finance lease on 27 January 2017 is amounting to TL 5.566. As of 30 September 2024, the total amount of accumulated depreciation of related land improvement is TL 1.135.

Current period depreciation expense amounting to TL 1.859.582 has been included in cost of sales and TL 4.480 has been included in general administrative expenses.

(**) Within the capacity increase project of Ayyıldız wind power plant, the cost of machinery and equipment acquired through finance lease on 27 January 2017 is amounting to TL 552.926. As of 30 September 2024, the total amount of accumulated depreciation of the related machinery and equipment is TL 428.518.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT (Continued)

There are no borrowing costs capitalized in the cost of construction in progress for the period ended 30 September 2025 (30 September 2024: None).

Details of the guarantees, pledges and mortgages on property, plant and equipment as of 30 September 2025 and 31 December 2024 are disclosed in Note 6.

NOTE 5 - INTANGIBLE ASSETS

1 January 2025 Additions Transfers Disposals 30 September 2025
Costs
Rights 135.741 2.103 - (24.801) 113.043
Licenses 1.272.638 32.910 - (793) 1.304.755
1.408.379 35.013 - (25.594) 1.417.798
Accumulated amortization
Rights (90.220) (7.117) - 24.787 (72.550)
Licenses (556.380) (25.712) - 793 (581.299)
(646.600) (32.829) - 25.580 (653.849)
Net book value 761.779 763.949
1 January 2024 Additions Transfers Disposals 30 September 2024
Costs
Rights 10.425 75.344 46.204 (47) 131.926
Licenses 1.353.818 - (45.653) (52.494) 1.255.671
1.364.243 75.344 551 (52.541) 1.387.597
Accumulated amortization
Rights (9.972) (4.730) (93.931) 14.715 (93.918)
Licenses (606.779) (35.519) 93.931 5.749 (542.618)
(616.751) (40.249) - 20.464 (636.536)
Net book value 747.492 751.061

Current period amortisation expense amounting to TL 17.924 (30 September 2024: TL 25.025) has been included in cost of sales and remaining TL 14.905 (30 September 2024: TL 15.224) has been included in general administrative expenses.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 6 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES

a) Other short - term provisions

As of 30 September 2025, there are various lawsuits against or in favor of the Group.These lawsuits are mainly action of debt and business cases.The Group management estimates the outcomes of these lawsuits and the financial effects thereof, and the required provisions are accounted for based on these estimates. The amount of provisions for the lawsuits as of 30 September 2025 is TL 45.319 (31 December 2024: TL 53.773).

30 September 2025 31 December 2024
Litigation provision 45.319 53.773
Periodical maintenance provisions 45.739 55.556
91.058 109.329

The movements of litigation provision are as follows:

2025 2024
1 January 53.773 89.548
Interest charges of litigation provision 3.461 -
Released provisions (Note 12) (730) (11.779)
Monetary gain (11.185) (19.537)
30 September 45.319 58.232

b) Contingent liabilities

- Guarantees given

The commitments and contingent liabilities of the Group that are not expected to be resulted in a significant loss or liability to the Group are summarized below:

30 September 2025 31 December 2024
Original
currency
Original
Amount
TL
equivalent
Original
Amount
TL
Equivalent
Letters of guarantees given TL 631.314 631.314 773.805 773.805
USD 829 34.401 1.560 69.024
EUR 660 32.167 1.181 54.436
697.882 897.265

The guarantees provided generally consist of letters of guarantee issued to various institutions and organizations related to the Group's operations (such as the Energy Market Regulatory Authority (EMRA), suppliers, state institutions responsible for electricity transmission and distribution, tax offices,other financials institution), and various judicial authorities for ongoing legal cases.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 6 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES (Continued)

Guarantees, pledges, mortgages ("GPM") given by the Group as of 30 September 2025 and 31 December 2024 are as follows:

30 September 2025 31 December 2024
Original TL Original TL
Currency currency equivalent currency equivalent
GPMs given by the Group
A. GPMs given
for companies' own legal entity TL 7.049.775 7.049.775 8.824.454 8.824.454
USD 918.344 38.117.537 919.075 40.670.865
EUR 660 32.167 1.181 54.437
B.Total amount of GPM given for
the subsidiaries and associates
in
the scope of consolidation - - - -
C.Total amount of GPM given for
the
purpose
of
maintaining
operating activities
D.Total other GPMs given
i)
Total amount of CPMB's
given
on
behalf
of
the
-
-
-
-
-
-
-
-
majority shareholder
ii)
Total amount of CPMB's
given to on behalf of other
- - - -
which are not in scope of B
and C.
- - - -
iii) Total amount of CPMB's
given on behalf of third
parties which are not in
scope of C. - - - -
45.199.479 49.549.756

Details of the guarantees given by Akenerji for its own legal entity as of 30 September 2025 are as follows:

As of 11 November, 2019, within the scope of financial restructuring, a refinancing loan agreement amounting to a total of USD 859 million with a 13-year maturity, including a 1,5 year principal grace period, was executed between Yapı ve Kredi Bankası A.Ş. and our company, Akenerji ("Borrower"), to refinance all existing debts of our company and extend their maturity. The aforementioned Loan Agreement was amended on 20 September, 2024, whereby the principal repayment of USD 40 million under Tranche 1 and TL 2.271.037 under Tranche 2, both due in 2024, were made, and a new Tranche 5 Loan amounting to USD 180 million was utilized. As a result, as of 30 September 2025, the validity of the Assignment of Receivables, EPİAŞ Receivables Assignment, Mortgage Agreements related to Real Estate and Surface Rights, Commercial Enterprise Pledge, Account Pledge, Insurance Receivables Assignment, Shareholder Receivables Assignment, Movable Pledge, and Share Pledge Agreements initially signed in 2019 and subsequently amended from time to time continues in order to secure the outstanding principal debt of USD 493 million along with the accrued interest and other associated liabilities. Pursuant to the Movable Pledge Agreements signed between Akenerji and the Bank, a first-degree movable pledge amounting to TL 6.418.461 and a second-degree movable pledge amounting to USD 917.515.600 have been established as an upper limit for Akenerji. Additionally, Yapı ve Kredi Bankası A.Ş. has been designated as the pledgee as the beneficiary under the power plants' insurance policies.

As of 30 September 2025, GPMs given by the Group to equity ratio is 279% (31 December 2024: 289%).

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 6 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES (Continued)

- Sales and purchase commitments

Electricity sales and purchase commitments:

Within the scope of electricity energy sales agreements made with energy companies, the Group has committed to sell 533.217 MWh of energy physically in 2025, and within the scope of the related commitment, 533.217 MWh of energy has been sold as of 30 September 2025.

The Group has commited to purchase 144.004 MWh of physical electricity energy within the scope of electricity energy purchase agreements with energy companies in 2025 and as of 30 September 2025, 130.756 MWh of the electricity enerji was committed to be purchased is completed.

As of 30 September 2025, the Group does not have any physical purchase or sales electricity protocols that it has committed to perform in 2026 and beyond.

Natural gas puchase commitments:

As of 30 September 2025, the Group has fulfilled 96% of its 2025 take-or-pay commitment.The Group expects to complete the remaining take-or-pay obligation by October 2025.

c) Contingent assets

Guarantees received

30 September 2025 31 December 2024
Currency Original
Currency
TL
Equivalent
Original
currency
TL
Equivalent
Letters of guarantees received TL 44.374 44.374 64.886 64.886
EURO 24 1.159 24 1.106
USD 64 2.656 484 21.418
Notes of guarantees received TL 1.752 1.752 2.198 2.198
USD 746 30.957 746 33.004
EURO 34 1.648 34 1.558
GBP 6 316 6 316
Cheques of guarantees received TL 106 106 133 133
USD 17 691 17 736
Mortgages received TL 3.242 3.242 4.066 4.066
86.901 129.421

Letters of guarantees received, in general, comprised of the letters of guarantees received from the customers in relation to the Group's electricity sales operations.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 7 - DERIVATIVE FINANCIAL INSTRUMENTS

30 September 2025 31 December 2024
Contract
amount
Fair
value
Contract
amount
Fair
value
Forward contracts
-
Short - term
1.162.190 73.920 593.874 59.642
Derivative financial liabilities 1.162.190 73.920 593.874 59.642

Movement of derivative instruments during the period is as follows:

2025 2024
1 January (59.642) (62.471)
To be reclassified to profit or loss
- Financial (income)/expense
- Monetary gain
(15.867)
1.589
4.964
15.858
30 September (73.920) (41.649)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 8 - EQUITY

Share capital

Akenerji adopted the registered capital system applicable to the companies registered on the CMB and defined a limit to its registered capital for shares. Akenerji's registered capital ceiling and paid-in capital as of 30 September 2025 and 31 December 2024 are shown below:

30 September 2025 31 December 2024
Limit on registered share capital (historical) 1.500.000 1.500.000
Issued capital 729.164 729.164

The Company's shareholders and shareholding structure as of 30 September 2025 and 31 December 2024 are as follows:

30 September 2025 31 December 2024
Share (%) Amount Share (%) Amount
CEZ a.s. 37,36 272.426 37,36 272.426
Akkök Holding A.Ş. 20,43 148.989 20,43 148.989
Akarsu Enerji Yatırımları San. ve Ticaret A.Ş.
("Akarsu") 16,93 123.437 16,93 123.437
Publicly held 25,28 184.312 25,28 184.312
729.164 729.164
Adjustment to share capital(*) 15.615.159 15.615.159
Total paid-in capital 16.344.323 16.344.323

(*) Adjustment to share capital represents the restatement effect of cash and cash equivalent contributions to share capital measured in accordance with the TAS/TFRS promulgated by the POA. "Adjustment to share capital" has no use other than being transferred to paid-in share capital.

The share capital of the Company consists of 72.916.400.000 shares with a nominal value of 1 (one) Kr for each where no privilege rights are provided for any kind of shares.

As of 30 September 2025, hyperinflation adjustments made on equity according to TAS 29, published by CMB on 7 March 2024, are presented below:

Equity PPE indexed
accounting
entries
CPE indexed
accounting
entries
Differences classified in
retained earnings
Share capital 18.893.711 16.344.323 (2.549.388)
Share premiums 1.988.971 1.469.583 (519.388)
Restricted reserves 436.107 318.051 (118.056)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 8 – EQUITY (Continued)

Share premium

Share premiums presented in the consolidated financial statements represent the proceeds from the excess of the amount of shares compared to their nominal values.

Regal reserves

Turkish Commercial Code stipulates that the legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group's paid - in share capital. Other legal reserve is appropriated out of 10% of the distributable income after 5% dividend is paid to shareholders. Under the TCC, legal reserves can only be used for compensating losses, continuing operations in severe conditions or preventing unemployment and taking actions for relieving its effects in case general legal reserves does not exceed half of paid - in capital or issued capital.

NOTE 9 - TAX ASSETS AND LIABILITIES

30 September 2025 31 December 2024
Current income tax expenses 10.608 25
Prepaid taxes (35.049) (21.647)
Current income tax liabilities/
(Current income tax assets), net
(24.441) (21.622)

Corporation tax

The Group is subject to corporate tax in Turkey. Necessary provisions have been made in the financial statements for the estimated tax liabilities of the Group related to the current period activity results.

The corporate tax rate in Turkey is 25% (31 December 2024: 25%). The corporate tax rate is applied to the net corporate income to be found as a result of adding the non-deductible expenses to the commercial earnings of the companies, and deducting the exemptions and deductions stated in the tax laws. Losses can be carried forward to offset against future taxable income for up to 5 years. However, the resulting losses cannot be deducted retrospectively from the profits of previous years.

In Turkey, there is no practice to reconcile with the tax authority on taxes payable. The corporate tax return is submitted until the evening of the 30th day of the fourth month following the end of the accounting period and is paid until the end of the month.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 9 - TAX ASSETS AND LIABILITIES (Continued)

Companies in Turkey calculate temporary tax at the rate of 25% over their quarterly financial profits (31 December 2024: 25%) and declared until the 17th day of the second month following that period and pay it by the evening of the seventeenth day. The temporary tax paid during the year belongs to that year and is deducted from the corporate tax to be calculated over the corporate tax return to be submitted in the following year. Despite the deduction, if there is an amount of advance tax paid, this amount can be refunded or deducted in cash.

Income tax withholding

Limited tax payers, who earn income through a permanent establishment or representative and pay it to companies (dividends) resident in Turkey, not subject to withholding tax. Dividend payments made to persons other than these are subject to 10% withholding tax. The profit included to the capital is not a profit distribution.

The details of tax income / expense for the period ended 30 September 2025 and 2024 are as follows:

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Current income tax expense (-) (10.608) - (679) 32
Deferred tax income/(expense) (77.708) (955.177) 1.120 (455.401)
(88.316) (955.177) 441 (455.369)

Deferred taxes

30 September 2025 31 December 2024
Deferred tax assets 190.259 269.312
Deferred tax liabilities (5.014) (16.486)
Deferred tax assets/(liabilities), net 185.245 252.826

The Group recognizes deferred tax assets and liabilities based upon temporary differences arising from its financial statements prepared in compliance with TAS and its statutory tax financial statements. The temporary differences usually result from the recognition of revenue and expenses in different reporting periods according to TAS and Tax Laws.

The tax rate used in the calculation of deferred tax assets and liabilities is 25% (31 December 2024: 25%)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 9 - TAX ASSETS AND LIABILITIES (Continued)

The breakdown of cumulative temporary differences and the resulting deferred tax assets/liabilities provided using principal tax rates is as follows:

Total temporary
differences
Deferred tax
assets/(liabilities)
30 31 30 31
September
2025
December
2024
September
2025
December
2024
Investment incentives (*) (1.155.093) (1.171.637) 288.773 292.909
Adjustments to borrowings 104.034 91.666 (26.008) (22.916)
Adjustments to property, plant and equipment 509 17.783 (127) (4.446)
Other 309.572 50.881 (77.393) (12.721)
Deffered tax assets/(liabilities), net 185.245 252.826

(*) Within the scope of former Article 19 of Income Taxation Law, the related amount of investment incentive is mainly due to investment expenditures of Uluabat HEPP.

In accordance with the Group's assessments as of 30 September 2025, details of tax losses on which deferred taxes are not recognized, along with the year it is incurred and the maximum year it can be utilized, are provided below:

Year incurred Year can be used 30 September 2025 31 December 2024
2020 2025 262.766 262.766
2021 2026 1.181.822 1.181.822
2022 2027 220.742 220.742
2023 2028 1.504.823 1.846.248
2024 2029 1.637.249 1.678.556
2025 2030 5.819.104 -
10.626.506 5.190.134

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 10 - REVENUE AND COST OF SALES

a) Revenue

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Electricity sales revenue 8.574.414 10.781.153 3.006.894 5.022.238
Revenue on sharing of imbalance 5.126.548 10.815.097 1.802.170 3.629.683
Revenue on seconder frequency control 612.942 1.023.095 228.203 343.833
Revenue on capacity mechanism 539.689 450.360 113.827 270.956
Revenue on loading orders 18.831 294.228 8.380 49.588
Other revenues 566.464 766.866 9.791 247.749
15.438.888 24.130.799 5.169.265 9.564.047

b) Cost of sales

1 January - 1 January - 1 July - 1 July -
30 September
2025
30 September
2024
30 September
2025
30 September
2024
Direct raw materials consumed and cost of
electricity purchased (*) 12.989.217 20.310.136 4.706.640 8.035.201
Depreciation and amortization expenses 1.478.567 1.893.840 496.679 616.354
Personnel expenses 509.654 604.215 100.365 193.054
Maintenance and repair expenses 349.700 405.712 90.419 148.087
Other materials and spare parts consumed 148.764 188.592 6.880 66.303
Insurance expenses 128.051 158.199 40.262 48.384
Other expenses 102.061 221.394 32.334 89.902
15.706.014 23.782.088 5.473.579 9.197.285

(*) Direct raw materials consumed comprised of cost of natural gas purchased, cost of energy purchased, imbalance sharing costs, system usage costs, and etc.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 11- EXPENSES BY NATURE

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Direct raw materials consumed and
cost of electricity purchased 12.989.217 20.310.136 4.706.640 8.035.201
Depreciation
and
amortization
expenses (*) 1.515.367 1.946.742 507.673 629.413
Personnel expenses (**) 845.977 922.612 189.892 300.626
Maintenance and repair expenses 349.700 405.712 90.419 148.087
Other materials and spare parts
consumed 148.764 188.592 6.880 66.303
Insurance expenses (***) 130.841 161.798 41.293 49.521
IT expenses 63.724 40.696 17.441 15.580
Consultancy expenses 37.140 48.871 12.504 14.398
Rent expenses 29.354 21.908 8.931 8.153
Office expenses 18.899 21.539 4.204 7.016
Taxes and duties 17.671 25.305 3.520 4.598
Vehicle expenses 16.052 21.680 2.999 7.413
Travel expenses 13.818 12.043 2.939 3.957
Advertising and sponsorship expenses 5.052 2.771 968 1.006
Other expenses 140.595 285.052 41.912 123.687
16.322.171 24.415.457 5.638.215 9.414.959

(*) Depreciation and amortization expenses amounting to TL 1.478.567 (30 September 2024: TL 1.893.840) is classified in cost of sales, TL 36.800 (30 September 2024: TL 52.902) of amortization and depreciation expenses is classified in general administrative expenses.

(**) Personnel expenses amounting to 509.654 (30 September 2024: TL 604.215) is classified in cost of sales, TL 336.323 (30 September 2024: TL 318.397 is classified in general and administrative expenses.

(***) Insurance expenses amounting to TL 128.051 (30 September 2024: TL 158.199) is classified in cost of sales, TL 2.790 (30 September 2024: TL 3.599) is classified in general and administrative expenses.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 12 - OTHER OPERATING INCOME AND EXPENSE

a) Other operating income

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Foreign exchange gains from
trading activities 243.352 63.812 175.858 35.934
Gains of futures and options market 147.637 196.614 70.045 96.321
Provisions no longer required (*) 44.293 25.117 - (1.097)
Delay interests received 424 76.979 27 1.551
Revenues
from
risk
sharing
agreements - 49.873 - 14.042
Other income 24.159 34.023 1.909 7.919
459.865 446.418 247.839 154.670

(*) As of 30 September 2025, TL 730 (30 September 2024: TL 11.779) of the provisions no longer required from litigation provisions, TL 42.091 from premium provisions (30 September 2024: TL 5.937) and TL 1.472 from other no longer required provisions (30 September 2024: TL 7.401)

b) Other operating expense

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Foreign exchange losses from
trading activities 205.892 43.946 163.506 7.807
Losses on futures and options market 152.072 154.080 40.019 50.252
Other expenses 28.290 108.989 13.502 18.277
386.254 307.015 217.027 76.336

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 13 - INCOME AND EXPENSES FROM INVESTING ACTIVITIES

a) Income from investing activities

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Profit on sale of property, plant and
equipment
2.203 71 2.129 (259)
Dividend income - 97 - 97
Fair value difference gain on exchange
rate protected deposit accounts - 3.160 - (66)
Other income - 804 - 2
2.203 4.132 2.129 (226)

b) Expenses from investing activities

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Loss on sale of property, plant and equipment 431 27.663 4 27.663
431 27.663 4 27.663

NOTE 14 - FINANCIAL INCOME AND EXPENSES

a) Financial income

1 January -
30 September
2025
1 January -30
September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Interest income 283.441 184.016 79.067 71.646
Foreign exchange gain
Gain on derivative financial
181.909 214.390 43.226 1.993
instruments 13.753 36.419 - -
479.103 434.825 122.293 73.639

b) Financial expenses

1 January -
30 September
2025
1 January -
30 September
2025
1 July -
30 September
2025
1 July -
30 September
2024
Foreign exchange losses
Interest and commission expenses
Losses on derivative financial
3.555.480
1.478.766
2.872.067
1.955.986
938.900
491.591
699.243
639.953
instruments 170.390 245.585 74.861 50.271
Other financial expenses 17.849 17.764 6.804 5.480
5.222.485 5.091.402 1.512.156 1.394.947

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 15 - NET MONETARY GAIN/(LOSS)

1 January -
30 September 2025
Statement of financial position items
Inventories (16.059)
Prepaid expenses 7.258
Financial investments 112
Property, plant, and equipment 7.670.414
Intangible assets 4.341
Right of use assets 27.533
Deferred tax assets 54.600
Deferred income (13)
Other payables (DSI payables indexation) (142.641)
Deferred tax liabilities (3.342)
Share capital (3.351.240)
Other reserves 4.295
Share premiums (297.943)
Gains/(losses) on re-measurement of defined benefit plans 14.298
Legal reserves (64.482)
Accumulated profit/(loss) 188.259
Profit or Loss Statement Items
Revenue (1.366.721)
Cost of sales (-) 1.505.114
General administrative expenses (-) 61.355
Other operating income (33.555)
Other operating expense (-) 24.899
Expenses from investment activities (116)
Income from investment activities 46
Financial income (51.616)
Financial expense (-) 519.984
Current income tax expense 849
Net monetary position gains 4.755.629

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 16 - RELATED PARTY DISCLOSURES

a) Transaction with related parties

  • Purchases from related parties
1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Sakarya Elektrik Perakende Satış A.Ş. ("Sepaş") (1) (**) 351.904 300.573 236.800 (12.963)
Aktek Bilgi İlet. Tekn. San. ve Tic. A.Ş. ("Aktek") (2) (**) 67.725 50.642 17.637 11.280
Ak-Han Bak.Yön.Serv.Hiz.Güv.Mal. A.Ş. ("Ak-Han") (3) (**) 35.443 28.908 11.839 8.651
Aksa Akrilik Kimya Sanayi A.Ş. ("Aksa) (4) (**) 30.962 41.796 13.214 18.071
Cez a.s. (5) (*) 25.408 15.093 11.924 4.057
Dinkal Sigorta Acenteliği A.Ş. ("Dinkal") (6) (**) 24.015 29.834 14.480 19.487
Other 10.617 3.334 336 459
546.074 470.180 306.230 49.042
  • (1) Comprised of purchase of electricity and sharing of instability savings.
  • (2) Comprised of IT services and equipment purchases.
  • (3) Comprised of building maintenance and other services received.
  • (4) Comprised of sharing of instability savings.
  • (5) Comprised of purchase of electricity and risk-sharing.
  • (6) Comprised of insurances purchased from insurance companies by the intermediary of Dinkal.

- Sales to related parties

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Sepaş (1) (**) 799.103 889.535 433.427 556.031
Cez a.s (2) (*) 343.985 332.899 106.328 129.028
Aksa (3) (**) 35.329 32.387 10.069 9.870
Other 6.703 7.293 2.692 3.589
1.185.120 1.262.114 552.516 698.518
  • (1) Comprised of electricity sales and sharing of instability.
  • (2) Comprised of sales of electricity and risk-sharing
  • (3) Comprised of sharing of instability.
  • (*) Shareholder.
  • (**) Akkök Holding group company.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 16 - RELATED PARTY DISCLOSURES (Continued)

b) Balances with related parties

  • Short-term trade receivables from related parties
30 September 2025 31 December 2024
Sepaş (1) (**) 21.115 -
CEZ a.s. (2) (*) 12.864 12.838
Aksa (3) (**) 2.661 2.447
Other 923 231
37.563 15.516
  • (1) Comprised of receivables from sharing of instability.
  • (2) Comprised of receivables from sales of electricity.
  • (3) Comprised of receivables from sharing of instability.

The average maturity days of trade receivables from related parties is 20 days.

  • Short-term trade payables to related parties
30 September 2025
31 December 2024
Aktek (1) (**) 10.726 19.689
Ak-Han (2) (**) 6.097 6.374
Dinkal (3) (**) 6.026 201.549
Aksa (4) (**) 3.436 5.031
CEZ a.s (5)(*) 249 1.688
Other 284 8.955
26.818 243.286
  • (1) Comprised of the payables related to IT services and equipment purchased.
  • (2) Comprised of the payables related to office maintenance and management services received.
  • (3) Comprised of payables to Dinkal for the insurances purchased from insurance companies by the intermediary of Dinkal.
  • (4) Comprised of the payables related to sharing of instability.
  • (5) Comprised of the payables related to electricity purchases.
  • (*) Shareholder.
  • (**) Akkök Holding group company.

The average maturity days of trade payables from related parties is 30 days.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 16 - RELATED PARTY DISCLOSURES (Continued)

c) Key management compensation

For the purpose of these consolidated financial statements, key management compensation consists of the payments made to Group shareholders and top management (General Manager and Vice General Managers and directors).

1 January -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2025
1 July -
30 September
2024
Salaries and benefits 43.939 39.105 12.364 13.531
Attendance fee 7.078 4.787 3.002 1.882
Bonus payment - 12.396 - (544)
51.017 56.288 15.366 14.869

NOTE 17 - FINANCIAL RISK MANAGEMENT

- Foreign exchange risk

The Group is exposed to foreign exchange risk through the impact of rate changes in the translation of foreign currency denominated assets and liabilities to local currency. Foreign exchange risk arises from future obligations as well as foreign currency denominated assets and liabilities. These risks are monitored and limited by the monitoring of the foreign currency position. In order to manage this risk, foreign exchange purchases are made from spot markets and derivative instruments are used. The management limits the foreign currency position of the Group through analyzing it. The Group has reduced its exposure to currency risk by converting a significant portion of its USD denominated loans into TL with the refinancing it has made within the scope of Financial Restructuring on 11 November 2019.

The details of the foreign currency assets and liabilities as of 30 September 2025 and 31 December 2024 are as follows:

30 September 2025 31 December 2024
Assets 1.150.022 1.221.345
Liabilities (21.681.476) (23.046.815)
Net financial position (20.531.454) (21.825.470)
Net position of derivative instruments (1.162.190) (744.894)
Foreign currency assets/(liabilities) position (net) (21.693.644) (22.570.364)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 17 - FINANCIAL RISK MANAGEMENT (Continued)

As of 30 September 2025 and 31 December 2024, assets and liabilities denominated in foreign currency and their TL equivalent held by the Group are as follows:

30 September 2025 31 December 2024
TL
Equivalent USD Euro Other TL Equivalent USD Euro Other
Trade receivables 32.083 383 332 - 148.879 3.053 299
Monetary financial assets 1.082.107 22.325 3.189 - 1.039.059 20.262 3.091
-
Current assets 1.114.190 22.708 3.521 - 1.187.938 23.315 3.390
Monetary financial assets 35.832 - 735 - 33.407 - 725
Non-current assets 35.832 - 735 - 33.407 - 725
Total assets 1.150.022 22.708 4.256 - 1.221.345 23.315 4.115 -
Trade payables
Financial liabilities
102.373
10.097.560
2.277
241.824
151
1.236
9
-
294.455
1.978.159
6.300
43.360
340
1.289
Other monetary liabilities 28.194 415 225 - 33.411 755 -
Short-term liabilities 10.228.127 244.516 1.612 9 2.306.025 50.415 1.629
Financial liabilities 11.361.702 270.689 2.590 - 20.649.586 462.703 3.778
Other monetary liabilities 91.647 2.208 - - 91.204 2.061 -
Long-term liabilities 11.453.349 272.897 2.590 - 20.740.790 464.764 3.778
Total liabilities 21.681.476 517.413 4.202 9 23.046.815 515.179 5.407
Net Asset(Liability) Position of Statement of Financial Position Derivative
Instruments (1.162.190) (28.000) - - (744.894) (16.000) (800) -
Off-Statement of financial position derivative liabilities
Net foreign currency asset(liability) position 1.162.190
(21.693.644)
28.000
(522.705)
-
54
-
(9)
744.894
(22.570.364)
16.000
(507.864)
800
(2.092)
Net foreign currency asset/(liability) position of monetary items (20.531.454) (494.705) 54 (9) (21.825.470) (491.864) (1.292)
Total fair value of financial instruments used for foreign currency
hedging 73.920 1.781 - - 59.642 1.228 115
Export 784.982 12.496 7.467 - 1.234.952 20.103 8.955
Import 723.395 16.532 2.137 74 1.006.806 22.856 1.382

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 17 - FINANCIAL RISK MANAGEMENT (Continued)

The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD and EURO. As of 30 September 2025 and 31 December 2024, the following table details of Group's sensitivity to a 10% increase and decrease in the TL against relevant foreign currencies, all other variables held constant. The sensitivity analysis includes only monetary items in open foreign currency at the end of the year.

Appreciation
of
foreign
currency
(2.053.362)
(2.053.362)
Profit /Loss
Depreciation
of
foreign
currency
2.053.362
2.053.362
Appreciation
of
foreign
currency
-
-
Equity
Depreciation
of
foreign
currency
-
-
-
263 (263) - -
-
-
(2.053.149) 2.053.149 - -
31 December 2024
Equity
Depreciation of
foreign foreign foreign foreign
currency currency currency currency
-
(2.176.593) 2.176.593 - -
-
(5.953) 5.953 - -
-
- - - -
-
263
+/- 10% fluctuation of other currencies rate against to TL
(50)
(50)
Appreciation of
(2.176.593)
(5.953)
+/- 10% fluctuation of other currencies rate against to TL
-
(2.182.546)
(263)
50
50
Profit /Loss
Depreciation
of
2.176.593
5.953
-
2.182.546
-
-
-
Appreciation of
-
-
-
-

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD BETWEEN 1 JANUARY - 30 SEPTEMBER 2025

(Amounts expressed in thousands Turkish Lira ("TL") based on the purchasing power of TL as of 30 September 2025 unless otherwise indicated.)

NOTE 18- FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS

Fair value of financial instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The estimated fair values of financial instruments have been determined by the Group, using available market information and appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Group could realize in a current market exchange.

The following methods and assumptions have been used in estimating the fair value of financial instruments:

Financial assets

It is anticipated that the carrying values of financial assets, including cash and cash equivalents, measured at cost, are equal to their fair values due to their short-term nature.

The carrying values of trade receivables along with the related allowances for uncollectability are estimated to be their fair values.

Financial liabilities

The fair values of short-term bank borrowings and other monetary liabilities are considered to approximate to their respective carrying values. The carrying values of the long-term bank loans of the Group reflect their fair values due to the repricing of the loans within the scope of the Financial Restructuring made on 11 November 2019.

Fair value hierarchy table

NOTE 19 - SUBSEQUENT EVENTS

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

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

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

Level 3: Valuation techniques do not contain observable market inputs

As of 30 September 2025, the Group has short-term liabilities of TL 73.920 (31 December 2024: TL 59.642) related to derivative financial instruments classified as level 2.

Fair value of the lands, land improvements, buildings, machinery and equipment of the Group's power plants were measured by a professional independent valuation company on 31 December 2024 through other valuation techniques involving direct and indirect observable inputs (Level 3) (Note 2.6).

None. ……………………………..

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