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ALKİM ALKALİ KİMYA A.Ş.

Annual Report Mar 11, 2025

5887_rns_2025-03-11_4837257f-bbb1-47d1-82bf-922e21d21142.pdf

Annual Report

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ALKİM ALKALİ KİMYA ANONİM ŞİRKETİ ANNUAL REPORT FOR THE PERIOD 01.01.2024 / 31.12.2024

Esteemed Shareholders,

We left behind 2024 as a challenging period for the World and our Geography. Unfortunately, no positive developments were made regarding the Russia-Ukraine War and the Israeli occupation of Gaza. Donald Trump was elected President for the second time in the USA. Considering Trump's actions during his previous presidency, I predict that the world will experience an eventful 5-year period due to his practices that have almost turned into trade wars, both in terms of tariffs and quotas. I think that these developments will have economic, political and sociocultural effects on our country, especially the rupture we have been following recently in Syria, on our southern border.

As you know, last year's financial results were announced together with the financial statements prepared according to inflation accounting, including the previous periods. Inflation accounting has basically produced more meaningful results in terms of seeing the inflationary effects on assets and liabilities. Due to the impact of inflation, many publicly traded industrial companies closed the year 2024 with profits below those of previous years, while some ended the period with losses. Companies that have made investments or have ongoing investments, especially in the last 4-5 years, have been more affected by the negative effects of inflation in terms of financial results.

As Alkim Kimya, our Potassium Sulphate Production Facility, which we commissioned in the last quarter of 2021, was also exposed to the effects of inflation accounting practice in this sense. In 2024, our facility produced approximately 2.5 times more than the previous year. Of course, we have not yet reached our ultimate goals. In the 2-year period following the transition to production of the facility, we have overcome the problems we experienced in terms of potassium chloride supply. During these processes, we simultaneously expand our sales channels through one-on-one meetings with existing and potential customers, frequent visits, product promotions and participation in fair organizations, and increase our capabilities in this regard day by day. Our product is an exceptional fertilizer product worldwide with its organic structure, rich potassium content and 100% water solubility, and its use is increasing day by day both in the country and abroad. As we further increase our production capabilities in 2025, we see that potassium sulfate will make significant contributions to our Company, both financially and in terms of sustainability. Our processes in our sodium sulfate and salt operations continue as in previous years. Our Board of Directors and employees continue to work diligently to maximize the potential of these products.

Along with the issues I mentioned at the beginning of the article, I would also like to share some information about the financial results of 2024. As Alkim Kimya, we completed 2024 with a consolidated revenue of TL 4.69 Billion and a net loss of TL 164.6 Million. I believe that the fact that we do not have any financial debt and have a net cash position, and that Alkim Kağıt is in the final stages of its investment process, constitutes an advantage for our group for 2025 and beyond. I predict that 2025 and beyond will be the period when the fruits of the investments and work previously made on behalf of Alkim Kimya will begin to be reaped. Our Board of Directors and employees will continue to work with all their might to achieve this. As we aim to achieve these successes, we will continue to draw our strength from you, our valued shareholders and stakeholders.

In 2025, we will strive to achieve our goal of creating value for all our stakeholders, expanding our domestic and international operations, and becoming a global player in our industry with a quality-oriented production and service approach. Our company will also continue to make significant contributions to the country's economy with its high export performance, contribution to employment, environmental awareness and social awareness.

On behalf of our Board of Directors, I would like to express my gratitude to our valued stakeholders, our valued customers and our shareholders who have always supported us on this path we follow with determination, and wish them health and well-being.

M. Reha Kora Mechanical Engineer, MSc Chairperson of the Board of Directors

  • 1. GENERAL INFORMATION
  • 1.1. REPORT PERIOD January 1, 2024 – December 31, 2024
  • 1.2. CORPORATE NAME: ALKİM ALKALİ KİMYA ANONİM ŞİRKETİ
  • 1.3. TRADE REG. NO. 274053
  • 1.4. MERSIS NUMBER: 0-0540-0447-9000014
  • 1.5. CONTACT DETAILS:
HEAD OFFICE : İnönü Cad No13 Taksim Beyoğlu/ İSTANBUL
DAZKIRI FACILITIES : Koralkim Sodium Sulfate Plant, Acıgöl Location
Dazkırı/AFYONKARAHİSAR
CİHANBEYLİ FACILITIES : Bolluk Sodium Sulfate Plant, Bolluk Lake Location
Cihanbeyli/KONYA
ÇAYIRHAN FACILITIES
Çayırhan
: Çayırhan Sodium Sulfate Plant, Abdioğlu Deresi Location,
Nallıhan/ANKARA
1.6. WEBSITE ADDRESS :www.alkim.com

1.7. PHONE NUMBER : (212) 292 22 66

1.8. INFORMATION ON THE CAPITAL AND SHAREHOLDING STRUCTURE OF THE COMPANY AND, DISTRIBUTION OF DIVIDENDS

1.8.1.SERMAYE

The Company's Paid Registered Capital: TL 300,000,000.

The Company went public in 2000 by means of public offering by fully restricting the preferential rights of the existing shareholders. Alkim Kimya is listed at the Istanbul Stock Exchange under the code ALKIM.

Free Float Rate is 57.62%.

1.8.2.ORTAKLIK YAPISI

Additional Definition
Group
Nominal Nominal / Capital Capital ( TL )
Shares Traded in the
Stock Exchange
172,851,764 57.62 %
Closed Shares 127,148,236 42.38 % 300,000,000

Real persons holding 5% and more of the capital:

Mehmet Reha Kora 8.79 %
Ferit Kora 7.79 %
Özay Kora 7.02 %
Tülay Kora 6.05 %

Legal entities holding 5% and more of the capital:

Kora Holding A.Ş. 17 %

1.8.3.AFFILIATES AND SUBSIDIARIES

ALKİM KAĞIT SANAYİ VE TİCARET A.Ş.

Alkim Kağıt Sanayi ve Ticaret A.Ş. has been an important bond paper manufacturer in Turkey from the incorporation up until today. Producing high grade paper pulp and photocopy paper, Alkim Kağıt serves the printing and packaging industry. The paper manufactured in this manner is packaged within the converting facilities in the required sizes for the printing, press and similar consumers. High-quality photocopy papers prepared at the A3-A4 production line, one of the most important departments of the facility, are highly preferred and intensively demanded at in the local and foreign markets.

In 2024, 83,586 tons of gross production was realized, all of the products produced were sold to domestic and foreign markets, and in the income statement prepared in accordance with the provisions of TAS 29, the revenue is TL 2,726,546,111 and the pre-tax loss is TL 135,467,407, and the net period loss is TL 140,707,261.

The average number of personnel of the Company as of December 31, 2024 is 231. (Average number of personnel as of December 31, 2023 was 216) Alkim Kağıt made an investment expense of TL 567,661,866 in 2024.

In addition, expenses totaling TL 30,759,283 (TL 32,966,444 in 2023) were made for underground and aboveground improvements, buildings, machinery, equipment, vehicles and fixed assets.

January 01, December 31, 2023 January 01,
December 31, 2024
Benefits to Employees TL 36,424,223 TL 36,810,472

Our facilities established with a maximum design capacity of 55,000 tons/year, where high, grade printing, office papers are manufactured, have achieved to employ such technological advances and high level of productivity to compete with the largest paper facilities in Europe within a period of 10 years based on technology investments starting from the very beginning.

As a result of revisions in respect of productivity and capacity increases starting from 2000, the actual annual capacity reached 80,000 tons/year and, thereafter increased to an amount of 90,000 tons/years with continuous capacity improvements during 2011, 2013 and 2014.

In the paper production facilities, the annual capacity may vary depending on the type and weight in grams of the products. The major portion of our production and sales is composed of high-grade and photocopy paper in 70-80 gr/m²; however, our factory also produces paper in different weights within 60 gr/m² – 260 gr/m².

Every phase of the production in the Alkim Paper Facilities is being controlled by DCS (Distributed Control System) and QCS (Quality Control System), the production is made in the utmost quality and supplied for the services of the printing sector. The papers manufactured with these systems are of high quality as per the respective paper standards. The facility produces high grade pulp offset, photocopy printing and industrial paper from 60 gr/m2 to 260 gr/m2.

In addition, the production range includes the production of cup base cardboard, white kraft paper and ivory paper, label paper, soap packaging paper, envelope paper, blueprint paper. The papers manufactured by means of the MASK (Finished Products Storage Inventory Control System) are automatically inspected with the barcode system at each point of the production stage up until the shipment thereof to customers and, all types of measures are taken to keep the high level of customer satisfaction. Alkim Kağıt generates steam electricity power for its own requirements with two cogeneration plants with a total generation capacity of 10.7 MW. Alkim Kağıt, which has attached great importance to nature and the environment since its establishment, has ISO 9001, ISO 14001, ISO 45001, ISO 50001 certificates, ECP Label ecological product certificate, and FSC (Forest Stewardship Council) certificate. It also has an accredited laboratory within the scope of TS EN ISO 17025 standard.

Alkim Kağıt decided to purchase a second paper machine with equipment that can produce high grammage in 2022 and has an additional capacity of 125,000 tons / year. Machinery and equipment have been brought to the country and work continues during the construction phase.

ALKİM SİGORTA ARACILIK HİZMETLERİ LTD.ŞTİ.

Alkim Sigorta Aracılık Hizmetleri Ltd. Şti. was incorporated in 04.12.2002 with a total capital of TL 20,000 subscribed by Alkim Alkali Kimya A.Ş. at 50% and by Alkim Kağıt Sanayi ve Ticaret A.Ş. at 50% and, the capital was increased to TL 80,000 in 2008 upon the resolution of the board of shareholders. The said capital increase was registered on 24.10.2008 and the resolution thereon was published on the Turkish Trade Registry Journal, issue no. 7179 on 31.10.2008.

It has increased its capital to TL 100,000 upon a resolution adopted at a general meeting held in 2014 using the retained profits from 2012, the said capital increase was registered on 21.05.2014 and, published through the Turkish Trade Registry Journal, issue no. 8577 on 27.05.2014.

Alkim Alkali Kimya A.Ş. was elected by the Board of Shareholders as Company Manager in line with the resolution adopted at the ordinary general meeting held for 2023 for a term of office of 1 years to carry out the business operations of the Company and, Berna Sarı was appointed to represent the said legal entity and, Deniz Yücel Alarçin was appointed as Insurance Agency Manager.

The right to act as an agency has been withdrawn from Anadolu Anonim Türk Sigorta Şirketi and Allianz Sigorta A.Ş. as of December 2002.

Pursuant to a resolution adopted at the Ordinary General Assembly Meeting held on 15.03.2023, during which the business operations in 2022 were deliberated upon, the profit for 2022 was not distributed to the shareholders but maintained within the company.

Alkim Sigorta has been established to provide accurate and sufficient insurance coverage for all the economic assets of the group with a great potential and, is currently operating in good stand. Alkim Sigorta Aracılık Hiz Ltd. Şti continues its status as a "large corporate agency" in the insurance sector with a portfolio size of approximately TL 14.16 Million based on insurance premium production as of the first half of 2024.

On 18.29.01.2024, a Service Agreement Elementary Insurances Consultancy was entered into Nart Sigorta ve Reasürans Brokerliği A.Ş. Insurances that could not be proceeded with Anadolu Insurance or Allianz Insurance through our agency, are processed through NART Insurance as of 2024. Our premium-based production at NART Sigorta as of the end of 2024 is approximately TL 58.50 Million. The majority of our customers is group companies.

Portfolio Distribution as of the end of 2024 On the basis of Insurance Premium
ALKİM ALKALİ KİMYA AŞ 7.06 Million TL
ALKİM KAĞIT SAN.VE TİC.AŞ 4.56 Million TL
OTHER COMPANIES AND PERSONS 2.54 Million TL
TOTAL PORTFOLIO SIZE 14.16 Million TL

1.8.4. Preferred Shares

Privileges regarding the election of the Board of Directors 2024

Out of the members of the Board of Directors, three members are elected among the candidates nominated by the Group "A" shareholders, two members by the Group "B" shareholders, two members by the Group "C" members, one member by the Group "D" shareholders and, one member by the Group "E" members.

1.9. INFORMATION ON THE BOARD OF DIRECTORS, COMPANY MANAGERS AND EMPLOYEE

1.9.1. BOARD OF DIRECTORS

The members of the Board of Directors were appointed for a term of office of three years at the Ordinary General Meeting held on April 25, 2024. The names, surnames and terms of office of the members of the Board of Directors are as follows; The Board of Directors of the Company consists of nine members.

Name and Surname Profession Position Position Start Date –
End
Date
M. Reha KORA Mechanical
Engineer, MSc
Chairperson of the
Board
of
Directors
25.04.2024 –
25.04.2027
A. Haluk KORA Mechanical
Engineer, MSc
Vice Chairperson 25.04.2024 –
25.04.2027
Arkın KORA Physics Vice Chairperson 25.04.2024 –
25.04.2027
Ferit KORA Business
Administration
Vice Chairperson 25.04.2024 –
25.04.2027
Kerim Oygur Finance Member 20.01.2023 –
25.03.2024
Tülay KORA Business
Administration
Member 25.04.2024 –
25.04.2027
Azade BAŞAĞA Communication and
Sociology
Independent
Member
25.04.2024 –
25.04.2027
Aydın Orhan Lawyer Independent
Member
25.04.2024 –
25.04.2027
Özgür Mungan Finance Independent
Member
25.04.2024
25.04.2027

1.9.2. AUTHORITIES GRANTED TO THE MEMBERS OF THE BOARD OF DIRECTORS, THE MEMBERS OF THE AUDITING BOARD, AND THE SENIOR EXECUTIVES AND, THE LIMITATIONS THEREON

The chairperson and members of the Board of Directors as well as the senior executives and the auditing board members are granted the authorities to represent, manage and audit the Company in accordance with the pertinent provisions of the Turkish Commercial Code and of the Articles of Association of the Company.

1.9.3. COMMITTEES FORMED WITHIN THE BOARD OF DIRECTORS

The committees formed within the Board of Directors have been created as follows in line with the Corporate Governance Principles published by the Capital Market Authority, with the resolution adopted by the Board of Directors on March 31, 2021 pursuant to the new memberships of the Board of Directors elected at the Ordinary General Meeting held on April 25, 2024.

Audit Committee Members Özgür Mungan–
Chairman of the Audit Committee
(Independent
Member of the Board of Directors)
Aydın Orhan -
Member of the Audit Committee
(Independent Member
of the Board of Directors)
Azade Başağa -
Member of the Audit Committee
(Independent
Member of the Board of Directors)
Corporate
Governance
Committee Members
Aydın Orhan –
Chairman of the Corporate Governance Committee
(Independent Member of the Board of Directors)
A.Haluk
Kora -
Member of the Corporate Governance Committee
(Vice-Chairman of the Board of Directors)
Ferit Kora –
Member of the Corporate Governance Committee (Vice
Chairperson of the Board of Directors)
Azade Başağa –
Member of the Corporate Governance Committee
(Independent Member of the Board of Directors)
Özgür Öge-
Member of the Corporate Governance Committee
(Financial Affairs and Investor Relations Director)
Early
Detection
of
Risk
Committee Members
Aydın Orhan –
Chairman of the Early Detection of Risk Committee
(Independent Member of the Board of Directors)
Tülay Kora–
Member of the Early Detection of Risk Committee
(Member of the Board of Directors)

1.9.4. EXECUTIVES

The senior executives holding positions during the activity year of 2024:

NAME
AND
SURNAME
PROFESSION COMPANY NAME
M.Selçuk Denizligil Chemist, MSc General Manager
M.Hakan Acun Chemical Engineer, MSc Director,
Operations
and
Business
Development
Özgür Öge Business Administration-EMBA Director, Financial Affairs and Investor
Relations
Galip Çavdar
Mining Engineer, Msc
Mine Affairs Manager
Ersin Eren Business Administration Manager, Accounting & Budgeting and
Financial Reporting
Berna Sarı Business Administration Finance Manager
Mehmet Gül Electrical Engineer Business Manager, Çayırhan
Ünal Arık Mechanical Engineer Business Manager, Dazkırı–
Koralkim
Facilities
Talip Aydeniz Administrative Sciences Business Manager, Cihanbeyli
Ali Murat Özçelik Geophysical Engineer Human Resources Manager

NUMBER OF EMPLOYEES

Average number of employees in 2024:

Management and Office Personnel Production TOTAL
54 343 397

Number of employees as of 31.12.2024:

Management and Office Personnel Production TOTAL
52 337 389

1.9.6. ACTIVITIES OF THE MANAGEMENT BOARD MEMBERS WITH THE COMPANY IN ACCORDANCE WITH THE PERMIT GRANTED AT A GENERAL MEETING

In the activity period of 2024, there has been no transaction performed by or on behalf of the members of the management boards with the Company in accordance with the permit granted at a general meeting and, no such activities subject to the non-competition rules have been performed by them or on their behalf.

FINANCIAL BENEFITS PROVIDED TO THE MEMBERS OF THE BOARD OF DIRECTORS AND SENIOR EXECUTIVES

Attendance fees may be paid to the members of the board of directors in accordance with the pertinent provisions of the Turkish Commercial Code. The remunerations to be paid each year to the members of the Board of Directors are determined by means of a resolution adopted at a General Meeting upon the respective proposal of the shareholders.

Dividends up to 4% of the net profit may be distributed to the members of the board of directors based on the article 16 of the articles of association provided that this must be approved at a general meeting. However, to date this rate has never exceeded 1.5%. It is applied between 0.75% - 1%.

Executive members of the Board of Directors may be paid monthly payments not exceeding the wage of the General Manager, in accordance with the policy as set forth for the senior executives.

The remunerations paid to the senior executives are determined based on their positions, legal liabilities and seniorities. The annual determination of the said rights is based on the results and realization of the targets of the Company.

The form and amount of the remunerations to be paid are determined by the board of directors.

It was accepted at the General Assembly Meeting held on April 25, 2024 to pay a gross remuneration of TL 42,500 per month to the members of the Board of Directors.

Financial Benefits Provided to the Members of the Management Board and Senior Executives of Alkim Alkali Kimya A.Ş. Fiscal Period: 01.01.2024 / 31.12.2024

Attendance fees, remunerations, bonuses, gratuities in total: TL 42,929,979.63 Allowances, accommodation, representation and insurance expenses : TL 1,102,073.76 Total : TL 44,032,053.39

2. THE COMPANY'S RESEARCH AND DEVELOPMENT ACTIVITIES

The company's total R&D expenditure in 2024 is TL 1,176,485.

3. COMPANY ACTIVITIES AND SIGNIFICANT DEVELOPMENTS REGARDING ACTIVITIES

A- MANUFACTURING ACTIVITIES

A.1-ÇAYIRHAN MINING BUSINESS

Alkim Alkali Kimya AŞ Çayırhan Sodium Sulphate Plant is one of the most advantageous facilities in the Ankara / Nallıhan / Çayırhan Region, thanks to its largest reserve and logistics location. The reserve amount determined by the General Directorate of Mineral Research and Exploration ("MTA") in the mining area of 94.78 km 2 and an area of 9.45 km 2 by means of numerous of drillings is 192 million tons. As is known, 1/3 of glauberite is equal to pure sodium sulfate. There is tenardite ore (pure sodium sulfate), which is about 5% of the total reserve in the form of lenses not separately , calculated in the reserve calculation.

At the Çayırhan facility, the anhydrite(refined sodium sulfate) is produced by processing of the sodium sulfate solution obtained after the blasting of the side walls and the roofs of the panels formed by underground solution mining method and injecting water at certain temperature from the surface, in the crystallization and evaporation facilities.

For the patent containing our own invention in respect of solution mining, which we implement in the mine site, a use certificate was obtained from the Turkish Patent Institution in 2017.

The construction of Panel-14, Panel-15, Panel-16 and Panel-17, which are among the new underground production panels planned in the Mine Site, has been completed. Drilling work has been carried out for the new Pano-18, Pano-19 and Pano-20. Panel placements will be determined based on the drillings.

SODIUM SULFATE MANUFACTURING FACILITIES, ÇAYIRHAN

The Çayırhan Sodium Sulfate Facilities have the power plant to generate its own steam and electric energy requirement and all kinds of technical, administrative and social infrastructure installations and various by-units and all the support systems that are prerequisite for a chemical installation of this scale. The high-pressured steam generated in the powder coal fueled - viscose bedded steam boiler at our facility is passed from an opposite pressured turbine and meets 1/3 of the steam requirement necessary for the process, as well as the power requirement of the entire Facility. During the construction of this facility; all auxiliary units have been constructed at the size and capacity to meet the requirements of the additional investments in the following years.

Coal Consumption (2024) : Pulverized coal consumption in our Çayırhan facilities was 64,631

tons.

Electricity Consumption (2024 yılı) : Çayırhan Facilities total consumption: 29,376,909 kwh, Steam turbine electricity production: 10,296,221 kwh.

Sodium sulfate production in our Çayırhan Facilities (2024) was 237,700 tons, and 242,693 tons were shipped to our customers.

Fly ash shipment amount from Çayırhan Facilities (Cement Factories) (2024): 13,292 tons. Production of Çayırhan Sodium Sulphate Facilities, which came into operation in 2011, by years: 2011 – 8,080 Tons, 2012 – 75,246 Tons, 2013 – 113,572 Tons, 2014 – 130,140 Tons, 2015 – 133,850 Tons, 2016 – 136,860 Tons, 2017 – 192,285 Tons, 2018 – 235,640 Tons, 2019 – 249,110 Tons, 2020 – 268,330 Tons, 2021 – 272,850 Tons, 2022 – 259,155 Tons, 2023 – 231,460, 2024 – 237,700 Tonsdur.

Total = 2,544,278 Tons.

INVESTMENTS

  • Product variety has been increased according to customer demand, and an additional sieve system has been built to receive Powder Sulphate, Granulated Sulphate and Standard Sulphate products.
  • A contract has been signed regarding the shipment of 120,000 tons/year of gypsum from the gypsum field located in our Çayırhan licensed area to Akyüz Mining for sales in 2025.
  • Since calcite (limestone), which is used to reduce the sulfur content in coal from fluidized bed boilers, is also found in our licensed area, the new limestone field usage permit was obtained from MAPEG.
  • The automation and scada of the remote control system prepared for the new lake water intake unit has been completed and loaded onto the computer in the process unit. In addition, the submersible pumps in the underground mine site and the 4 compressors in the facility were made remotely controlled (including via mobile phone) to ensure continuous monitoring.
  • The renovation of the broken and unused 25-50 kg bagging machine in Cihanbeyli Facilities has been completed. It was put into operation in the packaging section as of 10.07.2024. It works with a sensitivity of ±150 gr.
  • The Temporary Activity Certificate for Regular Ash Storage Class 2 Lot-II (Municipal Waste and Non-Hazardous Waste Regular Storage) was obtained on 10.06.2024 by the General Directorate of EIA Permission and Inspection of the Ministry of Environment, Urbanization and Climate Change.

R&D WORKS

R&D efforts to get refined anhydride sodium sulfate from glauberite mine by means of solution mining have been in progress in 2024.

The capacity utilization ratio at the Çayırhan Sulfate Facilities with the world's most modern technologies in this field has reached 85%.

A.2. AFYONKARAHİSAR – DAZKIRI KORALKİM FACILITIES ACIGÖL LAKE BUSINESS

The production of refined sodium sulfate, potassium sulfate, refined salt (sodium chloride) and dried salt takes place at the Dazkırı Koralkim Facilities. 100% of the raw materials of these products are produced from our lake operation fields. Only 50% of crystalline sodium sulfate is used in the production of potassium sulfate.

Acigol water is used in raw material production. First, lake water is taken to production pools and kept in the pools. Sizes of our production pools: 13.18 km2 for crystal (Sodium Sulfate) manufacturing and, 5.53 km2 for salt (Sodium Chloride and Mixed Magnesium Salt)

During the winter months, sodium sulphate dissolved in the solutions in the pools crystallizes and settles to the bottom of the pool as glauber's salt. This glauberite salt is used as the raw material for the production of sodium sulfate. It is melted, filtered and re-crystalized, and becomes refined refine anhydrite sodium sulfate by means of graded evaporation at the facilities.

And the salty solution remaining on the top of the glauber salt in the production pool is transferred to the salt pools through the respective channels and pumps. The solutions transferred to the salt pools evaporate under the influence of air temperature in the summer months and gain bome and raw salt is obtained.

After obtaining the raw salt, the remaining upper solution, which is as free from sodium sulfate and sodium chloride as possible, is taken to another pool and increased to the required concentration, and kainite salt is obtained. Kainit is a raw material with a high possibility of being used for the production of potassium chloride and potassium sulfate.

A.3. DAZKIRI KORALKİM MANUFACTURING FACILITIES

Refined sodium sulfate, potassium sulfate, refined salt (sodium chloride) and dried salt are produced in our facilities, and raw salt and washed salt are produced in our open field facilities. At the Dazkırı Koralkim Facilities, the capacity of manufacturing sodium sulfate is 180,000 tons/years, the capacity of manufacturing potassium sulfate is 50,000 tons/year, the capacity of manufacturing dried salt is 30,000 tons/year and, the capacity of manufacturing refined salt is 30,000 tons/year.

In our facilities, we produce 99.5% pure anhydrous-refined sodium sulphate, 99.9% pure refined salt and potassium sulphate containing minimum 52% K2O without compromising on quality.

It is the only company that produces potassium sulfate fertilizer in Türkiye. In the production of potassium sulfate, potassium chloride and crystalline sodium sulfate are used together as raw materials. Alkim's advantage is that Crystal sodium sulphate is produced in its own facilities in Alkim's licensed areas. It is also a very important advantage that potassium sulphate is not produced in Türkiye and the nearby geography.

An extremely advanced technology has been preferred for the production of potassium sulfate. Alkim's potassium sulphate production is completely suitable for drip irrigation technologies in agriculture, with its high potassium oxide ratio, almost zero chlorine content and 100% solubility in water. This product, which has an organic agriculture certificate, is used as a very valuable natural fertilizer in the market.

The importance of potassium sulfate completely manufactured from natural resources will increase incrementally in the agricultural sector of our country.

Potassium Fertilizer Facility, our Production License Certificate No. 872 was received by the Republic of Turkey Ministry of Agriculture and Forestry on December 6, 2021.

With our potassium sulphate production, the needs of the domestic market are met and exported abroad. In this way, potassium sulfate that has been met by import up until today will be manufactured in our country for the first time, resulting in a great contribution to our country's economy. Our exports continue intensively.

The facilities have a steam power plant and a cogeneration system to generate its own steam and electric power. The facility produces steam and electrical energy itself. It has also all types of technical, administrative and social infrastructure facilities, various axillary units and all the supporting system that need to be within in a chemical facility of this size.

R&D WORKS

As is known, both raw sodium sulfate and raw salt are obtained at Acıgöl. In other words, salt and its derivatives are produced.

At both Cihanbeyli Tersakan Lake and, Acıgöl, there are low-density potassium and magnesium derivatives at the top solution that is left after the sodium sulfate and then raw salt has been obtained. R&D studies are carried out in order to utilize these effectively and bring them into the country's economy.

Accordingly, after obtaining the raw salt, the concentration of the upper solution, which was as free as possible from the remaining sodium sulfate and sodium chloride, was increased and the trial production of kainite, which can be used in the production of potassium sulfate from this solution, was carried out. R&D efforts are in progress.

Project studies are being carried out to produce KCl, the raw material of potassium sulfate, from kainite.

A.4. LAKE BUSINESSES, BOLLUK FACILITIES, CİHANBEYLİ, KONYA

Crystal Sodium Sulphate, Refined Sodium Sulphate, Raw Salt (Sodium Chloride), Refined Salt (Sodium Chloride), Leonite (Potassium Sulphate Containing Magnesium Salt) Fertilizer, Magnesium Chloride Solution are produced in our Cihanbeyli Bolluk and Tersakan Plants. The dimensions of the production ponds of our Bolluk Lake and Tersakan Lake Operations in the Cihanbeyli district are: 5.15 km2 for crystal (Sodium Sulfate) manufacturing and, 3.72 km2 for salt (Sodium Chloride and Mixed Magnesium Salt) The capacity of melting, evaporation, drying and packaging as process at the Cihanbeyli Manufacturing Facilities is 80,000 tons/year. However, the production takes place depending on the quantity of the raw material (natural sodium sulfate crystal derived through natural ways from the pools) obtained.

Our Cihanbeyli Business' Refined Sodium Sulphate production capacity is 80,000 tons/year, Raw Salt production capacity is 25,000 tons/year, Leonite production capacity is 5,000 tons/year and Magnesium Chloride Solution production capacity is 15,000 tons/year.

The lake water from Bolluk Lake and Tersakan Lake is first transferred to the evaporation pools and, then to the production pools for cooling during the summer months. The sodium sulfate inside the solution is crystalized due to the cold weather during the winter months and, subsided to the pool bottom. This glauberite salt is used as the raw material for the production of sodium sulfate. It is melted, filtered and re-crystalized, and becomes refined refine anhydrite sodium sulfate by means of graded evaporation at the facilities.

The salt solution left at the surface of the glauberite salt in the production pool is transferred to the salt pools by means of channels and pumps. When the temperature gets risen in the summer months, it reaches certain concentrations resulting in raw salt in the salt pools.

At the Tersakan Lake, Konya, the solution left at the surface of the raw salt is transferred to the magnesium

pools for the production of magnesium derivatives and, then the raw material obtained from the mixed magnesium pool is shipped to the factory for the production of leonite fertilizer.

And the magnesium chloride solution is evaporated as a raw material or partially, processed accordingly and, sent to the locations where it is to be used.

In addition, in order to utilize this pure Magnesium Chloride resource more efficiently, we can start producing Mg.oxide, which is a very high added value product.

Mg.oxide (MgO) is a versatile compound used in a variety of industrial and medical applications.

CİHANBEYLİ PRODUCTION FACILITIES

At the Konya Cihanbeyli Bolluk Facilities, the crystal (glauber salt) obtained from the open site operations located in Tersakan and Bolluk Lakes is processed through the progressive evaporation process and anhydride - refined sodium sulfate product is obtained. These facilities have a power plant generating its own steam and electric power and also employ all technical, administrative and social infrastructure facilities as well as various auxiliary units and all supporting systems, which should be employed in a chemical facility of that size. Alkim Alkali Kimya's entire facility is operating under computer control. The high pressured steam generated at the power plant of our facility is initially passed from an opposite pressured turbine and both the steam requirement necessary for the process is met, and also the power necessary to partially meet the power requirement of the entire facility is generated. Sodium sulfate of high quality produced is shipped to the market in bulk or in Big Bags of 1 – 1.5 tons and other normal bags.

Leonite fertilizer (magnesium-potassium sulfate) is manufactured with the help of a special process applied by Alkim by means of making use of excess of the steam energy from the Bolluk Facilities.

Magnesium chloride solution used by the general directorate of highways and municipalities to prevent icing on roads is manufactured with the necessary concentration and content at the magnesium chloride evaporators integrated within the Bolluk Facilities and, transferred to the consumption points by tankers.

The increase in quality and production efficiency in magnesium chloride solution production over the years has led to an increase in demand. Another known fact is that it is nature-friendly. It is possible to produce Magnesium Chloride solution for 12 months if desired, apart from stocking in production, and there is no raw material problem regarding production.

Magnesium sulfate and crystal magnesium chloride as well as magnesium oxide have been manufactured in the Bolluk Facilities as a pilot plant. Organic Domestic Goods Production Certificate and TSE-EN 14016-1 product conformity certificate are available for magnesium chloride solution.

Lithium (950 ppm) reached its highest concentration in this last pool. R&D studies continued for the Lithium element, which was detected in the analyzes made from the bottom mud of Tersakan Lake in previous periods.

Raw salt, Leonite and Magnesium derivatives production continued in our Cihanbeyli facilities in 2024.

4. PRODUCTS AND THEIR CHARACTERISTICS

Our sodium sulfate business are located, Çayırhan, Ankara; Dazkırı, Afyonkarahisar and, Cihanbeyli, Konya. Sodium sulfate is manufactured at the business located in Çayırhan, Ankara, sodium sulfate and salt at the business located in Dazkırı, Afyonkarahisar, sodium sulfate as well as salt, magnesium chloride, magnesium sulfate and leonite fertilizer at the business located in Cihanbeyli, Konya.

Sodium sulfate, sodium chloride and magnesium components considered to be the main business operations of Alkim are manufactured in lake and underground mines licensed for a long period.

Total area of the manufacturing and preliminary evaporation ponds and storage & transfer ponds and channels in the lake plants of the Company (saltpans) is about 28 km2. In our mining facilities, we have all types of heavy construction machines, 16 jumbo drillers, road headers, excavation machines, loader, dozer, heavy tractors, normal and swamp type excavators, trucks, light trucks and pick-ups, freight train, etc. general and special service type vehicles and machines belonging to our company.

All precious equipment, tools, devices, facilities, storages, bunkers, various service workshops, administrative buildings, lodging buildings etc. are completely owned by the Company.

The world's sodium sulfate production is 24 million tons per year. Asia represents 61% of this production with the capacity of 13.7 million tons per year. Chine is the world leader in respect of the production of sodium sulfate, and it is followed by Spain with a capacity of 1.8 million tons per year. Turkey is the second largest manufacturer in Europe after Spain and, the largest manufacturer in the Middle East.

4.1. SODIUM SULFATE

Sodium sulfate (Na2SO4) represents the main production of Alkim. Sodium sulfate is one of the raw materials used to manufacture natıral potassium sulfate and at the sectors of detergent, paper, glass, textile, chemical and animal feed . It is used during the process to obtain pulp at the paper industry; as a main filling agent and auxiliary product for bleaching at the detergent industry; as homogenizer and air bubble preventer at the glass production industry. Besides, it is a basic raw material for the animal feed industry and for the production of various chemicals. And for the textile industry, which is an important area of usage, it is used to ensure that dark colored dyes are homogenous and permanently attached to the fabric at the dyeing plants.

The operations that started when H. Vedat Kora, the founder of the company, obtained licenses for Acıgöl, Afyon in 1952, have continued at Bolluk Lake in Cihanbeyli, Konya in 1956 and, at Tersakan Lake in Cihanbeyli, Konya in 1960 These licenses obtained for the business operations are one of the first mining licenses obtained in the republic period.

As a result of the acquisition of the site found by MTA in the district of Çayırhan, Ankara in 1992 as a result of a tender, sodium sulfate started to be obtained from the underground reserves of glauberite.

Production is realized through the collection of the raw-material (glaubersalt) formed by transferring the waters (solutions) of the Tersakan and Bolluk in Konya-Cihanbeyli and of the Acıgöl in Afyonkarahisar-Dazkırı Lake establishments, containing alkaline salts into the large production ponds (Saltpan Method) and subjecting to evaporation here, thus increasing the concentration and in cold weather conditions by special methods and transportation to our Sodium Sulfate Facilities in order to be processed. At the Sodium Sulfate Facility in Çayırhan, sodium sulfate solvent are obtained by means of melting the glauberite cores that are partly brought to surface through underground solvent mining at the mechanical melting facility and, the processing thereof is realized at the crystallization and evaporation units.

The total manufacturing capacity of sodium sulfate at all the facilities when measured by the machine - equipment capacities is 470,000 tons/year. However, the Business Units in Cihanbeyli and Dazkırı works with the crystal sulfate raw material naturally derived from the bitter lakes therein, the actual production amounts are in proportion to the raw material amounts derived during the current season. Since the raw material is derived at the discretion of our company from the definite reserve underground at the business unit in Çayırhan, which is the largest one within the organization of our company, these facilities located therein operate at full design capacities.

In the Acıgöl facilities, the total area of sodium sulfate manufacturing ponds is 5,400,000 m2 while the pre-evaporation bonds are located in an area of 7,780,000 m2. The total area of salt manufacturing ponds is 4,208,000 m2 while the salt pre-evaporation bonds are located in an area of about 1,324,000 m2. Normal lake operation activities are continued on an area of 18,712,000,m2 (18.7 km2) in total. The operations in the Lake Tersakan and the Lake Bolluk facilities are carried out in twelve manufacturing ponds located in a total area of 8,875,000,m2.

The method of underground solution mining is applied for the production in the Sodium Sulfate Mining Site, Çayırhan.

4.2. MANUFACTURING OF SODIUM CHLORIDE (SALT)

Sodium chloride (salt) is manufactured in natural lake environment at our Acıgöl Facility located in Afyonkarahisar – Dazkırı, Tersakan Lake Facility and Bolluk Lake Facility located in Konya – Cihanbeyli.

Raw salt is used in the textile and chemical industries, dried salt is in the pickled products and animal feed additives and, refined salt is used as industrial salt and food salt.

There is a production capacity of about 25,000 tons of raw salt in total per year on the salt production site at the Lake Business Units in Cihanbeyli, Konya (3.72 km2) depending on the amount of the top solution of the crystal sulfate derived in the previous season.

Since there are major similarities between the production process of sodium sulfate and the production process of refined table salt at this factory, it is possible to process the raw salt manufactured at the Lake Tersakan in order to get refined table salt at the same facility.

The size of the pre-evaporation ponds used for raw materials in the Acıgöl facilities located in Dazkırı, Afyonkarahisar is 1.32,km2 while the size of the total manufacturing ponds is 4.20 km2 and, the size of the ponds in total is now about 5.53 km2. Our production capacity of raw salt per year herein is about 200,000 tons depending on the amount of the top solution of the crystal sulfate derived in the previous season. At the Salt Manufacturing Facility, which has been integrated into the main production process of our Dazkırı Sodium Sulfate Facilities, daily 115 tons and annually 35,000 tons of refined salt as well as daily 90 tons and annually 30,000 tons of dried salt can be manufactured.

Alkim has a food certificate for the salt manufacturing.

Alkim has completed the salt investments and the construction of the planes salt production pools, which it had started in 2002 when the Monopoly Law was amended, in 2004 at the business in Cihanbeyli, Konya and, then in 2005 – 2006 at the business in Acıgöl, Afyon. Raw material is released to the market partially on as is basis and partially processed in the various forms of finished salts such as washed salt, dried salt, refined salt. The salt manufactured in these methods conform the requirements of the TSE and the Turkish Food Codex in respect of quality.

4.3. MANUFACTURING OF MAGNESIUM CHLORIDE SOLUTION

Liquid magnesium chloride (MgCl2) is manufactured in the lake facilities, in addition to normal sulfate and raw salt operations performed therein. This product is used especially for the manufacturing of fire-resistant sheets. Magnesium chloride solution that has been for many years in developed countries for anti-icing on roads has started to be used in our country for the last a few years; the demanded quantities increase year by year.

4.4. MANUFACTURING OF LEONITE (POTASSIUM – MAGNESIUM SULFATE) FERTILIZER

Alkin manufactures Leonite (Potassium Sulfate Fertilizer Containing Magnesium), which has not been manufactured in Turkey up until today and, which plays an important role for the growth of chloride-sensitive plants such as citrus fruits, tobacco, cotton, corn, banana and tea, and possesses a certificate for "Suitable for Organic Agriculture". The manufacturing capacity of leonite is 5,000 tons/ year.

4.5. POTASSIUM SULFATE FERTILIZER

Potassium sulfate is a very valuable potassium source for the soil. The root and structural health of plants and their durability against diseases or harsh seasonal conditions are directly depending on the amount of potassium they could reach. Potassium has a strong impact to get vivid and physically voluminous vegetables and fruits with beautiful colors and also better taste. As a matter of fact, "chlorine-free potassium sulfate" should be used for the protection of certain vegetables and fruits. Potassium also supports the productivity of the soil. With the natural potassium sulfate we started to manufacture by means of using natural raw materials, we have brought this valued nutrition for the soil which is the need of our country to the farmers.

Potassium sulfate completely soluble in water is the right choice for the drip irrigation systems.

Potassium sulfate from Alkim is natural, has a very high rate of K2O and purity, has almost zero chloride, contains no heavy metal, no acid, is pH neutral, soluble 100% in water, EKOTAR certified and suitable for organic agriculture.

5. INFORMATION ON THE SALES AND MARKETING FACILITIES

5.1. MAJOR CUSTOMERS OF THE PRODUCTS

Sodium sulfate is a very important raw material used in particular in the powder detergent and glass industries as well as the paper, textile dyeing and animal feed industries. It is an essential content for the manufacturing of powder detergents and, found in the formulations of laundry detergents as a filling material. In addition, it ensures that all the raw materials of the powder detergent are in the package in a certain balance. And it acts like a catalyst when the detergent contacts the water. For the paper industry, sodium sulfate is the most important raw material used for the production of pulp, which is the raw material of paper and, for cooking the fibers. It has also a critical function in the production of frits for the glass industry. Use of sodium sulfate in the textile industry ensures that the dye passes through the fabric in a homogenous manner.

The permanent customers of Alkim Alkali Kimya A.Ş. are: All of the detergent producers in our country. (Türk Henkel, Procter & Gamble, Hayat Kimya, ABC, etc.) In the export market on the other hand, the glass and detergent factories in Ukraine, Romania, Bulgaria, Greece, Lebanon, West and South Africa, Ivory Coast, Angola, some countries in Central Africa, Morocco, Algeria and Egypt are the directly permanent customers. About 23% of the production has been exported depending on the domestic consumption in 2024.

It is the basic and primary policy of Alkim to meet the requirements and demands for sodium sulfate in Turkey. Since this matter is always in the first priority in the sales planning, our amount of export and the share of export in our sales can vary according to the domestic demand in the related period.

We are in the leading position in the large production market (high quality and natural sulfate) in

Turkey and nearby geography .

The powder detergent industry is the largest area of use for sodium sulfate. Consumption of detergent varies depending on the population and use of washing machines in the countries.

A considerable amount of powder detergent formulations manufactured in our country is composed of natural sodium sulfate from Alkim. The Middle East is an important market considering the fast population increase and increasing number of washing machines used therein.

According to surveys carried out by detergent manufacturers, the annual consumption of detergent per person is estimated to be 7 kg and, an about 25 kg of detergent be consumed in each house in our country that is expected to have a population of 100 million people by 2050. All the detergent manufacturers in our country are the permanent customers of Alkim.

As the use of sodium sulfate in detergent increases in our country and in the middle east in parallel with quickly increasing population therein, it is notable that sodium chloride started to be used as filler in some certain brands for the last two years. In the laboratories of our company, detailed analyzes of all powder detergent brands on the market are carried out, and the rate of sodium sulfate and sodium chloride changes in their formulations is monitored in what direction and at what speed.

In addition to sodium sulfate, we also manufacture considerable amount of raw salts, washed salt, dried salt (industry type salt) and refined common salt. Salt (NaCl) is a very important product in the textile, chemical, health and animal feed industries and also used as defroster.

This product of perfect quality manufactured at our potassium sulfate facility commissioned as of November 2022 is in progress. Potassium sulfate is a very valuable fertilizer for the soil. In addition to being extremely suitable for organic agriculture with its high potassium oxide content and almost zero chlorine, potassium sulfate manufactured by Alkim is completely suitable for drip irrigation technologies in agriculture with its 100% water solubility feature. Our potassium sulphate, which has a much higher added value than sodium sulphate, has attracted great interest in both domestic and international markets from the very first moment it was produced, and the demand from the market is increasingly continuing.

We continue to produce Magnesium chloride (MgCl2), which is used in the production of anti-icing and fire/burn-resistant wall panels on highways.

5.2. SALES AND MARKETING ACTIVITIES

On the sodium sulphate side, Alkim continues its shipments both in packaged form and in bulk with silobuses. We also ship our products on "continuous – 7/24 and on demand basis" request through the warehouse – Sulfate Transfer Line in Muallimköy- Gebze. Considerable amount of the sales is affected under annual contracts.

Our potassium sulphate sales are prepared in 25 kg sacks or big bags and delivered to our customers.

Alkim performs all its domestic and foreign sales by itself and there is no separate sales-marketing company.

5.3. AVERAGE SALES PRICES FOR SODIUM SULFATE AND SALT ON YEARLY BASIS

The prices of sodium sulfate, potassium sulfate and leonite are determined as per the leonite global market conditions, while the prices of salt are determined as per the domestic free market conditions.

5.4. PRODUCTION - SALES QUANTITIES

5.4.1. PRODUCTION FIGURES

ALL FACILITIES 2023 Tons 2024 Tons
Standard+Granular
Type Sodium Sulfate
354,959 279,706
Potassium Sulfate 9,453 20,851
Powdered Sulfate 551 403
Raw Salt 167,028 202,198
Washed Raw Salt 151,870 144,395
Dried Raw Salt 28,490 22,412
Anhydride Sodium Chloride 5,215 11,066
Raw Potassium Salt 56 -
Magnesium Chloride Solution - 48

5.4.2.SALES FIGURES

ALL FACILITIES 2023 Tons 2024 Tons
Standard+Granular Type Sodium Sulfate 349,459 279,632
Total Sales of Sodium Sulfate
Commercial Refined Salt 363 29
Commercial Raw Salt 513 -
Trade Goods Sales
Potassium Sulfate 8,156 20,618
Powdered Sulfate 457 415
Raw Salt 5,775 4,225
Washed Raw Salt 119,227 119,071
Dried Raw Salt 29,032 22,572
Refined Salt 625 -
Anhydride Sodium Chloride 5,144 10,582
Magnesium Chloride Solution 1,692 966
Leonite (K2SO4 containing Mg. Salt) 469 -
Raw Potassium Salt 52 -

In 2024 72,424 tons of sodium sulfate and 7,144 tons of potassium sulfate have been exported abroad. Our exports amounted to USD 8.7 Million and EUR 2.6 Million.

Our export sales are made by means of cash against documents, cash against goods, confirmed

letter of credit or cash in advance before the loading according to the condition of the respective country and customers.

5.5. INVESTMENTS

The investment expenses made in all the businesses of Alkim Kimya in 2024 are TL 84,040,055 in total.

5.6. INTERNAL CONTROL SYSTEM AND AUDITING ACTIVITIES

The internal control mechanism of our company is being conducted by committee responsible for the auditing and comprising of the members eligible to be independent members amongst the members of the existing board of directors. The said committee has charged the auditing group in the matter of supervision of the setting up of the internal auditing mechanism and control of its effectiveness. The auditing group audits the internal control mechanism in determined periods as per the annual auditing plans that it has obtained the approval for and notifies the upper management of its opinions on the matters that it observes. The audit committee, in turn, investigates the said matters and makes suggestions for the board of directors. The committee in charge for the audit considers such opinions and provides information with respect to the required precautions to the general manager.

5.7. DIRECT OR INDIRECT SUBSIDIARIES OF THE COMPANY AND, ITS SHARE PERCENTAGES THEREIN

Subsidiaries are the enterprises where Alkim Alkali Kimya A.Ş. holds 50% or more than 50% of the shares, has the voting right for or represents or has the right to appoint the majority of the management, within the framework of the capital and management relationships, whether directly or through its other subsidiaries. The names of the subsidiaries included into the consolidated financial statements and, the shares of the parent company and of other subsidiaries in their capitals are as follows:

Subsidiaries
held
by the parent
Shares directly held
by the parent (%)
Shares indirectly held
by the parent (%)
Shares not held by the parent
(%)
Alkim Kağıt 79.93 - 20.07
Alkim Sigorta 50.00 39.96 10.04
Activities Country Subject of Activities
Alkim Kağıt Sanayi ve Ticaret A.Ş. Türkiye Manufacturing and sales of paper
products
Alkim Sigorta Aracılık Ltd Şti. Türkiye Insurance intermediary services

5.7.1. PAPER INDUSTRY

Alkim Kağıt Sanayi ve Ticaret Anonim Şirketi was established in 1997 at the Organized Industrial Zone, Kemalpaşa, İzmir as a business unit of Alkim Alkali Kimya A.Ş. On June 30, 1999, after a demerger by means of capital in kind completely owned by Alkim Alkali Kimya A.Ş. it started to operate under the name Alkim Kağıt Sanayi ve Ticaret A.Ş. and, then was offered to public in November 2000 by means of a capital increase.

79.33% of the shares in the capital of Alkim Kağıt is held by Alkim Kimya and, the free float rate is 20.07%. Alkim Kağıt is listed at the Istanbul Stock Exchange under the code ALKA.

It is considered one of the important manufacturers in Turkey in the field of printing house, writingprinting and office paper. The manufacturing facilities are capable of manufacturing equipment pool featured products (such as light-weight coated paper, coated paper, ivory, glass paper, wet strength label paper, soap paper, special paper for religious books). Akredite Laboratory is the quality control laboratory.

The amount of paper produced varies depending on the type and weight of the paper, but the annual production is about 75,000 tons to 90,000 tons. One may consider that it has been operating at full capacity during the recent years.

83,586 tons of paper has been manufactured in 2024, and all the products manufactured have been sold to domestic and foreign markets.

Furthermore, Alkim Kimya, has authorized its Board of Directors for sale of a part of or whole of its shares in its affiliation Alkim Kağıt Sanayi Ticaret A.Ş. that is traded in Istanbul Stock Exchange (BİST) as per the resolution passed by the Ordinary General Meeting held on 24.04.2024, however, to date the sale of the said shares did not materialize.

5.7.2. INSURANCE SERVICES

Alkim Sigorta Aracılık Hiz. Ltd. Şti. examines all the technical details and assesses with great care with respect to the insurance coverage for all the factory buildings, machinery and equipment, manufacturing and storage locations, management buildings, facilities, fixed or mobile construction equipment, fixtures, inventories of raw materials and semi-finished products, transportation vehicles within the entire Group as well as the foreign and domestic transportations and shipments and, other activities and procedures relating thereto and, makes great efforts to minimize all risks in connection therewith.

Alkim Sigorta has been established to provide accurate and sufficient insurance coverage for all the economic assets of the group with a great potential and, is currently operating in good stand.

5.8. INFORMATION ABOUT THE COMPANY'S OWN SHARES ACQUIRED

The Company did not realize any acquisitions for its own shares during the activity period of 2024 and in the previous periods and there is no acquisition.

5.9. INDEPENDENT- PUBLIC AUDITS WITHIN THE FISCAL PERIOD

During the activity period of 2024, the sworn public accountant audits have been conducted within the frame of independent external audit and finance terms of the CMB.

5.10. LEGAL ACTIONS AGAINST THE COMPANY THAT MAY AFFECT THE FINANCIAL POSITION AND OPERATIONS AND POSSIBLE CONSEQUENCES THEREOF

There is no legal action against the Company that may affect the financial position and operations of the parent company.

Legal proceedings and judicial process are in progress for the receivables of Alkim Kağıt Sanayi ve Ticaret AŞ' an affiliate of the Company, from a main dealer. All respective developments are transparently and publicly shared by the Company with the investors through the Public Disclosure Platform. Provisions were set aside in 2015 and 2015 for this receivable.

5.11. ADMINISTRATIVE AND JUDICIAL SANCTIONS ON THE MEMBERS OF THE MANAGEMENT BODIES DUE TO CONTRARY ACTIONS TO THE PERTINENT LEGISLATION

There is no action within the Company contrary to the pertinent legislation. The management board and the members thereof strictly comply with the pertinent provisions of the applicable legislations and there have been no administrative and judicial sanctions on the management boards and the members thereof.

5.12. INFORMATION ON THE ACHIEVEMENT OF THE TARGETS SET IN THE PREVIOUS PERIODS AND ENFORCEMENT OF THE RESOLUTIONS ADOPTED IN GENERAL MEETINGS

The targets set in the previous periods have been achieved and the resolutions adopted in the general meetings (dividend distributions, managerial policies) have been enforced in specified periods.

5.13. INFORMATION ON ORDINARY GENERAL MEETING HELD WITHIN THE ACTIVITY PERIOD

The Ordinary General Meeting of Alkim Alkali Kimya A.Ş' for 2023 has been held on the date of 25.04.2024 at 14:00 hours at The Marmara Taksim İstanbul. The invitation for the meeting has been announced at least 21 days prior as provided by the law and the main articles of association and as to contain the agenda and the modification text, in the Turkish Trade Registry Gazette's issue dated 01 April 2024 and number 11055; in a national newspaper dated 29 March 2024 and in the corporate Internet address of http://www.alkim.com; furthermore by notifying the meeting date, venue, agenda and modification text by registered mail to the shareholders that are registered in the share book.

The Ordinary General Meeting has been realized with the participation of the shareholders representing the 74,772,350.87 TL portion of the 150,000,000 TL shares and within the electronic general assembly applications and the results of the General Assembly Meeting has been disclosed to the public at the address of http://www.kap.gov.tr on the date of 25.04.2024.

5.14. INFORMATION ON EXTRAORDINARY GENERAL MEETING HELD WITHIN THE ACTIVITY PERIOD

The General Assembly Meeting was held on 10.09.2024 at 14.00 at The Marmara Taksim Istanbul. The invitation for the meeting has been announced at least 21 days prior as provided by the law and the main articles of association and as to contain the agenda and the modification text, in the Turkish Trade Registry Gazette's issue dated 14 August 2024 and number 11143; in a national newspaper dated 12 August 2024 and in the corporate Internet address of http://www.alkim.com; furthermore by notifying the meeting date, venue, agenda and modification text by registered mail to the shareholders that are registered in the share book.

The Ordinary General Meeting has been realized with the participation of the shareholders representing the 80,397,556.80 TL portion of the 150,000,000 TL shares and within the electronic general assembly applications and the results of the General Assembly Meeting has been disclosed to the public at the address of http://www.kap.gov.tr on the date of 10.09.2024.

5.15. DONATIONS AND AIDS FROM THE COMPANY WITHIN THE PERIODS

In the activity period of 2024, the donation and grant of TL 250,000 have been made.

6. FINANCIAL POSITION

6.1. ANALYSIS AND ASSESSMENT BY THE MANAGEMENT BODY OF THE FINANCIAL POSITION AND OPERATING RESULTS, ACHIEVEMENT OF PLANNED ACTIVITIES AND COMPANY'S POSITION ACCORDING TO THE DETERMINED STRATEGIC TARGETS

In the 2024 activity period of our company; the sales and production targets planned in line with the requirements of our customers have been fulfilled and in the consolidated financial statements, the loss before tax is TL 50,783,931 and, the net loss of the period is TL 164,608,446.

6.2. COMPANY'S SALES, EFFICIENCY, INCOME GENERATION CAPACITY, PROFITABILITY AND DEBT/ EQUITY RATIO COMPARED TO PREVIOUS PERIODS, AND INFORMATION ON OPERATING RESULTS AND FORWARD-LOOKING EXPECTATIONS

All the ratio calculations for the financial structure of the Company are detailed in the section 6.6 hereof.

As of the activity period of 2024, the consolidated turnover is TL 4,688,321,828 and, the gross profit from commercial activities is TL 664,539,277.

6.3. DETERMINATION AND ASSESSMENT OF THE MANAGEMENT BODY WITH RESPECT TO WHETHER THE CAPITAL IS UNRETURNED OR WHETHER THE COMPANY IS DEEPLY IN DEBT

As of today, the capital is not unreturned and, the consolidated equity is TL 3,796,451,522 (the portion thereof representing the main partnership is TL 3,563,062,026). The financial debts/ equity ratio is 3.39%.

6.4. PRECAUTIONS FOR THE IMPROVEMENT OF THE FINANCIAL STRUCTURE

Due to the strong financial structure of the company, there is no need for additional improvement. The liquidity ratio is 1.20%. The registered capital of the parent company is TL 300,000,000.

6.5. INFORMATION ON THE POLICY FOR DIVIDEND DISTRIBUTION AND IF THERE WILL BE NO DISTRIBUTION, THE REASON AND A PROPOSAL WITH RESPECT TO HOW THE UNDISTRIBUTED PROFIT WILL BE USED

The "Profit Distribution Policy" of our Company is determined according to the Law of Capital Market, relevant communiqués, Turkish Trade Law and corporate governance practices.

There is no privilege with respect to the dividends among the share types and, each shareholder is entitled to dividends in proportion to the shares held by him/her in the capital.

Considering the benefits of the shareholders and of the Company in accordance with the approvals of the board of directors and the general meeting of shareholders as well as the applicable legislations, the determination of the proportions of the payments of the dividends in cash is based on the financial structure, liquidity status and investment requirements of the Company and, it is principle to make distributions as much as possible. The Profit Distribution Policy can be found at our corporate internet site.

6.6. FUNDAMENTAL RATIOS AS PER THE DATA CONTAINED IN THE CONSOLIDATED FINANCIAL STATEMENTS

The capital adequacy of the company has been evaluated as per the Turkish Commercial Code No. 6102, article 376 and the respective regulations, which has resulted in the fact that the capital is not uncovered and it is sufficient. Some financial ratios and basic indications calculated based on the information contained in the financial statements independently audited are as follows:

2023 2024
LIQUIDITY RATIOS
Current Ratio 2.64 2.52
Liquidity Ratio 1.49 1.20
Cash Ratio 0.95 0.54
FINANCIAL STRUCTURE RATIOS
Total Liabilities / Equity 0.29 0.28
Total Financial Debts / Equity 0.03 0.03
Short Term Liabilities / Total Assets 0.21 0.19
Long Term Liabilities / Total Assets 0.01 0.03
Tangible Fixed Assets / Equity 0.47 0.61
PARENT PROFITABILITY RATIOS
Assets / Profitability Ratio 0.08 -0.03
Equity / Profitability Ratio 0.11 -0.04
Gross Profit Margin 0.20 0.14

7. RISKS AND ASSESSMENT BY THE MANAGEMENT BOARD THEREOF

7.1. INFORMATION ON THE RISK MANAGEMENT POLICY TO BE APPLIED BY THE COMPANY FOR PERCEIVED RISKS

The management policy for the financial risks is set by the financial department under the control of the senior management in accordance with the policies and strategies approved by the board of directors. The Board of Directors prepares the principles and policies with a general coverage in order to manage, in principal, the exchange, interest and capital risks and, follow the financial and operational risks.

7.2. INFORMATION ON EFFORTS AND REPORTS OF THE EARLY DETECTION AND MANAGEMENT OF RISKS COMMITTEE

It holds regular meetings and reports to the Board of Directors for the purpose of the early detection of the risks that would jeopardize the existence of the company, its development and continuation in accordance with the regulations related to the corporate management of the Turkish Commercial Code and The Capital Market Board, the required precautions related to the determined risks and the implementation of the remedies and the management of the risk. In addition, it advises the opinions to the Board of Directors with the purpose of determining the risk limits, defining, assessing and managing the risks and, carries out the required investigations on the subject of compliance with the limits.

8. OTHER CONSIDERATIONS

8.1. FUTURE PREDICTIONS

Since the production and sales - supply and demand balance in the sodium sulfate sector, which is the main field of activity of our company, is settled on a global basis, there are no rapid fluctuations in prices as in some other commodities.

It is anticipated that sodium sulphate, which will be released from the processes carried out to solve the recycling problem of batteries that may arise with the increasing use of electric vehicles, especially in Europe, will pose a threat to the market, even though it is synthetic compared to natural resources.

On the other hand, it is noteworthy that sodium chloride has started to be used as a filler substance in some brands in the last two years. In our company's laboratories, detailed analyses of all powder detergent brands on the market are carried out and changes in the sodium sulfate and sodium chloride ratios in their formulations are monitored.

In order to continue the development and growth of our company and to go beyond the production of sodium sulfate, which it is now specialized in, by using this main product as a raw material, it had made R&D conflicts for a long time and decided to produce potassium sulfate with the thought of what we can do with a much higher added value and which cannot be obtained in our country and in our nearby geography. Our SOP (Potassium Sulphate) Facility, which we completed on time with great success under pandemic conditions, was commissioned in November 2021.

Our product, which was obtained in excellent quality in this new facility, has begun to be put on the market. We work with leading distributors and fertilizer manufacturers for potassium fertilizers. Our potassium sulfate, which has a much higher added value than sodium sulfate, has attracted great attention in both domestic and international markets. Potassium sulfate is a very valuable fertilizer for the soil. In addition to being extremely suitable for organic agriculture with its high potassium oxide content and almost zero chlorine, it is completely suitable for drip irrigation technologies in agriculture with its 100% water solubility feature.

It is expected that our potassium sulfate production and sales will contribute significantly to our company's turnover and profitability.

8.2. FUTURE RISKS WITH RESPECT TO SALES, PRODUCTIVITY, INCOME GENERATION CAPACITY, PROFITABILITY, DEBT/ EQUITY RATIOS AND SO ON

All the ratios are detailed in the section 6.6 hereof. In addition, the section 4.3 hereof indicates the production and sales figures in comparison with the figures achieved in the previous year.

8.3. INDUSTRY IN WHICH THE COMPANY OPERATES AND ITS POSITION THEREIN (SALES-MARKETING)

The main activity of our company is the production of the sodium sulfate, sodium chloride (salt), potassium sulfate and magnesium containing components in the lakes and underground mines for which we received long-term privilege licenses within the frame of the Mining Law.

Alkim is the largest manufacturer in Turkey for sodium sulfate, which is an indispensable raw material for many industries and, also one of the largest sodium sulfate manufacturers in the world. Alkim is the second largest manufacturer in Europe. In addition, it is a member of the European Chemical Industry Council (CEFIC) and of the Sodium Sulfate Producers Association (SSPA).

All companies organized in a well-established corporate structure require some certain functions and abilities from suppliers. Among the qualifications sought for is a Quality Management System in the facilities, where the production takes place. Therefore, our company that maintains a successful corporate structure is the world's first corporation to possess the "TS ISO EN 9001:2008 Quality Management System' that is the basis of the management systems in the sodium sulfate manufacturing sector. Our company started this journey of quality with TSE in 1996 and, documented it with the TS EN ISO 140012004 Environmental Management System in , 2011 proving the importance it attaches to the environment at national and international levels. Further, it also obtained the TS 18001:2008 (OHSAS) Occupational Health and Safety Management System Certification proving the value it gives to the concept of Occupational Health and Safety.

Alkim is being evaluated in the trustworthy suppliers category due to the fact that whole of the properties sought for the suppliers especially by our international customers are being applied in our company.

In addition to the ISO and EIE certificates the company activities have been approved by Sedex and Achilles. These certificates are requested by some international customers.

Alkim's products are fully derived from natural sources and thus not chemically classified and exempted from the applications of REACH (Registration, Evaluation, Authorization and Restriction of Chemicals).

69% of sodium sulfate produced in Europe is consumed by the detergent manufacturers. Further, 9% of sodium sulfate is consumed by the chemical industry, 8% by the glass industry, 4% by the textile industry and 3% by the paper industry. 7% of the total production is consumed by other industries.

The area where sodium sulfate is consumed the most is the production of powdered laundry detergent. The ratio of the consumption of detergents varies depending on the population of the respective country and the mechanization ratio therein. The detergent consumption has already reached a certain level in developed countries, while it is gradually improving in the Middle East and Africa, where Turkey takes the most strategic point in terms of location.

It is expected that the detergent industry will grow and, thus the consumption of sodium sulfate will increase and, it is foreseen that the consumption amount will significantly increase as the number of washing machines used in houses rises. This indicates that the Middle East and Africa are a large and significant market for the consumption of sodium sulfate.

Alkim has always pursued such a policy balancing the production capacity of sodium sulfate and the demand amount.

Our potassium sulfate facility commissioned as of the end of 2021 is a factory equipped with high technology and, it is superior in terms of productivity compared to the equivalents in the world. As a result of the embargo imposed in 2022 due to the Ukraine-Russia war, our facility could not operate for most of the year as raw material supply could not be ensured. With the alternative supplier relationships established in 2024, the Potassium Sulphate facility started to operate actively and took its place among the preferred products in domestic and international markets.

9. OTHER CONSIDERATIONS

9.1. SIGNIFICANT ISSUES AFTER THE END OF THE FISCAL PERIOD None.

9.2. COMMERCIAL – FINANCIAL RELATIONS OF THE SUBSIDIARIES WITH ALKİM ALKALİ KİMYA

A.Ş.

There is no commercial or financial relation with Alkim Kağıt Sanayi ve Ticaret A.Ş. There is a commercial relation with Alkim Sigorta Aracılık Hizmetleri Ltd. Şti. due to the insurance services; however, there is no financial relation therewith.

9.3. AMENDMENTS TO THE ARTICLES OF ASSOCIATION DURING THE PERIOD

An amendment was made to the Articles of Association on 9 December 2024 for the 2024 operating period. With the amendments made in Article 6 and Article 7, the Paid-in Capital of the Company has been increased to TL 300,000,000 , as announced in the Turkish Trade Registry Gazette No. 11224.

INFORMATION ON CORPORATE GOVERNANCE PART I - CORPORATE GOVERNANCE PRINCIPLES

II.17.1. Clarifications as per the Article 8 "Corporate Governance Compliance Reports" of the Corporate Governance Communique

a) Alkim has established its understanding on management on the principles of equality, transparency, accountability and responsibility. Our Company attaches great importance to the compliance with the respective regulations of the Capital Markets Boards (CMB) in its corporate governance applications. The corporate governance applications implemented within the framework of the Capital Market Board's Legislation, has great importance for the sustaining of the Alkim Alkali Kimya A.Ş. activities in an efficient and transparent manner and to provide the highest added value for its shareholders. The corporate governance compliance reports issued using the templates of the Corporate Governance Report (UFR) and of the Corporate Governance Information Form (CGIF) available on the Public Disclosure Form (PDP) as per the resolution no. 2/49 adopted by the Capital Market Board on 10.01.2019 have been published on the PDP. The Corporate Governance Compliance report (URF) and the Corporate Management Information Form (CMIF) are made available through www.kap.gov.tr.

Under the scope of the Corporate Governance Communique Serial No. II-17.1 that entered into force in 2022, all the mandatory principles have been fully complied with, while most of the nonmandatory principles have been complied with. Although it is intended to be fully in compliance with the non-mandatory Corporate Governance Principles, this full compliance has not been achieved yet due to various reasons such as difficulties experienced in the application of some principles, ongoing discussions continued in our country at both the national and international platforms in respect of compliance with some certain principles and, since some certain principles do not match with the current structure of the Company. Studies are in progress on the principles not fully put into practice yet, which will be assessed to decide if they need to be put into practice as a result of the evaluation carried out administratively, legally and technically in a way as to contribute to the efficient management of our Company.

  • b) Our clarifications concerning the said non-mandatory principles not applied by the Company yet are as follows:
  • 5.4.2. Principle no. 1.5.2: Minority rights has also been granted to those holding less than twentieth of the capital as per the articles of association and, extended the scope of the minority rights under the articles of association.

Remarks: Because of assurance concerning minority rights pursuant to the Turkish Commercial Code, the Capital Market Law and other applicable regulations, our Articles of Association has no provision intended to grant minority rights to those holding less than twentieth of the capital and, extended the scope of the minority rights thereunder.

5.4.3. Principle no. 2.1.4: The information contained on the corporate website of the company is also prepared in foreign languages selected according to the needs with the same content as the Turkish version.

Remarks: Although most of the Turkish content is translated into English, some documents are submitted in Turkish on the website. It is planned to pay attention to ensuring that the information on the corporate website is also shared in English thereon with the same content of the Turkish text thereof.

- Principle no. 3.2.1: The participation of the employees in the management is regulated under the articles of association or by means of internal directives.

Remarks: Through the open door policy applying in the company and the information meetings held with the participation of the employees, the employees are indirectly participating in the management, but this is not regulated under the articles of association and internal directives.

5.4.4. Principle no. 4.3.9: A target for the percentage of the female board members has been set as 25% at minimum and, a policy has been crated to attain this target.

Remarks: A percentage of 25% at minimum for the female board members has been considered. The percentage of the female board members in the company is 33.33%. However, there is no policy concerning the target of 25% at minimum for the female board members in the company.

  • Principle no. 4.4.7: There is a restriction on the board members precluding them to take offices outside the company. Remarks: There is no restriction on the board members precluding them to take offices outside the company considering that it would be beneficial to the company. No change is provided in the upcoming period to the existing application which is considered to have caused no negative situation in respect of corporate governance.

- Principle no. 4.5.5: Each board member takes place in only one committee.

Remarks: Due to the reason that the number of members of the Board of Directors being limited, the members of the Board of Directors may take office in more than one committee. A member who takes place in more than one committee ensures communication between the respective committees and, enhances the opportunity for cooperation. It has been observed that it has not caused any setback, discrepancy and conflict of interest during the activities of the committees.

- Principle no. 4.6.1: The board of directors carries out self-criticism and performance assessment in respect of both the board members and those with administrative responsibilities.

Remarks: No performance assessment has taken place on the Board of Directors.

- Principle no. 4.6.5; Remunerations given to each board member and executive with administrative responsibilities have been explained on the annual report.

Remarks: The sum of the benefits made available to the Board of Directors and the senior executive is collectively reported in the financial report. The Remuneration Policy submitted to the General Assembly for information is made available on the corporate website. It is not planned to disclose the remunerations given to each executive with administrative responsibilities pursuant to the Personal Data Protection Law No. 6698.

There has been no information received that a conflict of interest has occurred among the

stakeholders as of today due to the principles attached to the Corporate Governance Communique but not complied with yet during the activity period ending as of December 31, 2024 and the Corporate Governance Committee has found that there has been no such conflict of interest. In addition, the compliance with the non-mandatory principles is being assessed for each principle separately and, it may be possible to make attempts to comply with some certain principles considering the requirements of our shareholders.

SECTION II: SHAREHOLDERS

2.1. Investor Relations Department

For the purpose of executing the relation between the company and the investors in accordance with the applicable legislation and facilitating the use of investor rights, the Investor Relations Unit has been established and plays an effective role in the protection and use of the shareholding rights, particularly the right to demand and review information.

Save for the information considered to be confidential and trade secrets not disclosed to the public about the company, the requests of the shareholders verbally and in writing for information about the company are fulfilled and, the records in connection with the answers thereto are regularly maintained by the Investor Relations Unit.

All information and disclosures that may affect the exercise by a shareholder of their rights are update and made available to the shareholders through the corporate internet site of the Company.

The information pertaining to the person taking part in the department is indicated hereinbelow:

Özgür Öge , Financial Affairs and Investor Relations Director, Tel: 212 292 22 66 E-mail: [email protected] Licenses: CMB Level 3 (916086), CMB Derivative Instruments License (919390), CMB Corporate Management Gradation Expertise License (919373)

Investor Relations Department continues its activities reporting to General Manager M.Selçuk Denizligil.

The Investor Relations Unit has carried out the operations for the purpose of ensuring communication between the company and the investors focusing on the duties as indicated in the Communique, Article 11, Paragraph 5.

The Investor Relations Unit plays an effective role in the protection and use of the shareholding rights, particularly the right to demand and review information, and fulfills the following duties: The main activities carried out under the responsibility of the Investor Relations Unit are summarized below; accordingly it will ensure that:

  • a. Communication between the shareholders and the company is enhanced.
  • b. The shareholders are informed accurately, consistently and in due time.
  • c. Communication and exchange of information take place between the Board of Directors on one hand and the capital market regulators and participants on the other hand; the rights of being a shareholder are in compliance with the applicable regulations, and the articles of association.
  • d. The fulfillment of the obligations resulting from the Capital Market Legislation are observed and the information management activities are carried out, including all issues related to the corporate governance and public disclosure.
  • e. Information management operations concerning capital markets and investor relations are carried out.
  • f. The communications between the investor and the company, as well as the logs of the other information and documents are kept in a healthy, safe and updated manner, and the written information requests of the company's shareholders regarding the company are being replied as per the respective laws and regulations.
  • g. The General Meetings are performed in accordance with the applicable legislation, articles of association and the other regulations of the company, and at any General Meeting, the documents that the shareholders can make use of are being prepared.
  • h. Meetings with investors and analysts are held accordingly, presentations are made, and the questions from investors and analysts are answered according to the company's strategies
  • ı. Communication with the Istanbul Stock Exchange (BIST), the Capital Markets Board (CMB) and the Central Registry Agency (CRA) is managed on behalf of the company.
  • i. The section "Investor Relations" on the company's corporate web sites are properly managed.

  • j. Questions from inside and outside the company within the scope of investor relations are responded accordingly.

  • k. A investors relations report is prepared on an annual basis.

The Unit has periodically submitted to the Board of Directors its report containing the activities carried out within the period and the opinions and recommendations of the investors considered significant as well as the comments and assessments of the brokerage houses about the company. The report on the activities carried out in 2024 was submitted to the members of the Board of Directors on February 19, 2025.

Taking into consideration the provisions of, Communiqué on Material Events of CMB, Material Events Disclosures have been disclosed to public through Public Disclosure Platform (KAP-Kamuyu Aydınlatma Platformu). Ten special situation explanations have been made at Public Disclosure Platform (PDP) within the activity period of 2024. Our special situation explanations are being kept in an updated manner under the Investors tab of our corporate Internet site http://www.alkim.com.

The communications with the investors and the abstracts of the telephone calls made during the activity period are recorded and archived electronically. During the year of 2024, 140 phone calls have been realized with our investors.

The questions delivered to our company by the partners via e-mail have been answered in accordance with the provisions of the Capital Market Legislation, the CMB regulations and the articles of association. Our partners have requested seventy-nine written information by electronic mail during the year and the written feed-back to them had been made by electronic mail.

2.2. Exercise by the Shareholders of the Right to Information

No distinction is made among the shareholders in the use of the right to demand and review information by the shareholders. Each shareholder has the right to demand and review information. There is no such arrangement in the articles of association that may restrict the right to information.

In exercising the shareholding rights, legislation, Articles of Association and other in-company regulations are complied with and measures to ensure that such rights are exercised are taken and all shareholders are treated equally. The primary objective of the Company is to allow for shareholders to exercise the right to information and give the information objectively and fully within the framework of the laws.

Every kind of subject related to the Public disclosure obligation is being presented in compliance with the legislation and the main articles of association and within this scope the special situation explanations of importance pertaining to the investors are disclosed to the public timely and in compliance with the legislation in the Public Disclosure Platform (PDP).

The verbal and written information demands of the investors and shareholders have been answered in accordance with the Capital Market Legislation, CMB regulation and the decisions within 2024, excluding the confidential information and trade secrets, the related information and documents have been delivered to the shareholders with the equality principle.

For the purpose of expanding the rights to information of shareholders and enabling them to exercise their rights healthily within the framework of the legislation in force, the Corporate Website http://www.alkim.com of the Company is used effectively. Within this scope, the Corporate Governance Principles and information and documents prescribed by regulatory authorities are presented to use of shareholders in Turkish and English languages on Corporate Website of the

Company.

2.3. General Meetings

An announcement for a General Meeting is made in such a manner to ensure that it is received by the shareholders as many as possible through the Public Disclosure Platform (KAP) and the Electronic General Meeting System (EGKS) as well as the corporate internet site of the Company and the Turkish Trade Registry Gazette at least three weeks beforehand.

In addition, an information document is prepared and disclosed to the public in relation with the agenda items before the respective general meeting. All announcements and notifications are in compliance with the Turkish Commercial Code (TCC), the Capital Market Board Legislation, the regulations and resolutions of the Capital Market Board and, the Articles of Association.

A notification clearly indicates the meeting date and time, the meeting location in such a manner that does not cause any hesitation, the agenda items, the respective authority of the state and, where the annual report and financial statements as well as other general meeting documents may be examined. Accordingly, the respective annual report, financial reports, other documents on which the agenda items are based, and the proposal for profit distribution are made available in such places where the shareholders may easily access including the registered office and electronical environment as from the date of the respective announcement.

Furthermore, a detailed explanation is made available for each agenda item in the "General Meetings" under the section "Investors" of the corporate internet site of the Company: http://www.alkim.com, and other information described under the principles about the general meetings is made available to the investors.

During the preparation of the agenda for a General Meeting, each proposal is indicated under a separate heading and, the headings of the agenda items are described in such a manner not to cause any different interpretation. The words "other", "miscellaneous" etc. are avoided in the agenda items.

It is important that a general meeting is held in such a manner that does not cause any inequality among the shareholders and that the shareholders may attend occurring cost as least as possible.

As per the article 25 of the Articles of Association of the Company; the holders of the right to participate in a General Meeting may participate in these meetings through the electronic medium in accordance with the article 1527 of the Turkish Commercial Code. In all the General Meetings to be held, as per this term of the Articles of Association, the holders of the right and their representatives are provided to use their rights through established system as per the requirement of the relevant legislation. Therefore, the required infrastructure for the investors desiring to participate into the General Meeting in the electronic medium and to vote through the Electronic General Meeting System (EKGS) has been prepared, the announcement with regards to this aspect has been made and participation into meeting in the electronic medium has been provided.

The Members of the Board of Directors relating to subjects of specific nature on the agenda, other related persons, officials being responsible in preparation of financial tables and auditors are present in the General Meeting in order to be able to make the necessary information and reply the questions asked.

In case a shareholder controlling the management, the members of the board of directors, the executives in charge of administration and, their spouses and relatives by blood and marriage has made a significant transaction that may cause a conflict of interest with the company or its affiliates and/ or they has made a commercial business within the scope of the activities of the company or its affiliates on their own behalf or on behalf of others or participated in another company operating in the same type of activities as the company in the capacity of a general partner, this will be included in a separate agenda item and recorded in the minutes of the respective general meeting by means of providing detailed information thereon to the shareholders.

Any transaction performed by the members of the Board of Directors under the scope of articles 395 and 396 of the Turkish Commercial Code is submitted to the general meeting for information.

Information on related party transactions, guarantees, liens and mortgages given to third parties is submitted to the respective General Meeting under a separate agenda item.

Minutes of the General Meetings may be found at: http://www.alkim.com, the Public Disclosure Platform (KAP) and the Turkish Trade Registry Gazette.

Any announcement and notification for a General Meeting will indicate:

  • a. General Meeting agenda items, meeting location, date and time, the form of a proxy for those who will appoint a proxy at the General Meeting and, the principles about the preparation of proxies;
  • b. That the General Meeting will be held in a physical and electronic environment and, in case of a general meeting held in electronic environment, the Electronic General Meeting System (EKGS) provided by the Central Registry Agency (MKK) will be used to ensure that the shareholders may appoint a proxy, provide a proposal, express opinion and cast votes and, the right holders who prefers to attend a general meeting under electronic environment in person or by means of a proxy will act in accordance with the respective principles of the EKGS;
  • c. That a shareholder who prefers to attend a General Meeting in a physical environment is required to present their identities or powers of attorney if they wish to exercise their rights in relation with their shares recorded under the List of Shareholders' in person or through their proxies;
  • d. That the financial statements including annual reports, Independent External Audit Company Reports, the proposal of profit distribution by the Board of Directors, the previous and current form of the draft in case of an amendment to the Articles of Association will be made available at the Registered Office and the corporate internet site of the Company at least three weeks before the meeting date for review by the shareholders.

The financial statements of the 2024 activity year, the annual report of the Board of Directors, the auditing reports and the Board of Directors profit distribution proposal together with the other information and documents to be disclosed as per the legislation, have been made ready for the shareholders perusal at the company headquarters at the address of İnönü Cad No13 Taksim Beyoğlu/Istanbul and, the corporate internet site.

It was ensured that the meetings had been held in an easily accessible central location within the city so that as many shareholders as possible could meet and cast vote in the General Meeting of our Company. The conditions required for the shareholders in order to participate in the General Meeting and the samples of the proxy to be utilized by the persons participating in the meeting by representing the shareholders have been notified by announcement.

The Ordinary General Meeting for 2023 within the previous activity period has been held on the date of 25.04.20234at 14:00 hours at The Marmara Taksim İstanbul. The invitation for the meeting has been announced at least 21 days prior as provided by the law and the main articles of association and as to contain the agenda and the modification text, in the Turkish Trade Registry Gazette's issue dated 01 April 2024 and number 11055; in a national newspaper dated 29 March 2024 and in the corporate Internet address of http://www.alkim.com; furthermore by notifying the meeting date, venue, agenda and modification text by registered mail to the shareholders that are registered in the share book.

The Ordinary General Meeting has been realized with the participation of the shareholders representing the 74,772,350.86 TL portion of the 150,000,000 TL shares and within the electronic general assembly applications and the results of the General Assembly Meeting has been disclosed to the public at the address of http://www.kap.gov.tr on the date of 25.04.2024. During the General Meeting the shareholders have utilized their rights to ask questions both orally and in the written form and the questions asked by the shareholders have been answered by the company's management and have been recorded in the minutes. In the matters not related to the agenda, the shareholders have been provided with possibility of explaining their opinions and asking questions under the equal conditions, after all the items in the agenda have been discussed. During the General Assembly Meeting, the chairperson of the meeting provided direct answers for all questions that were asked by the shareholders at the General Assembly Meeting and that were not considered as trade secret, as well not caused inequality of opportunity pursuant to the legislation because of being disclosed to public. No proposal was submitted by the shareholders concerning an agenda item during the General Meeting.

In addition, an Extraordinary General Assembly Meeting was held on 10.09.2024 at 14.00 at The Marmara Taksim Istanbul. The invitation for the meeting has been announced at least 21 days prior as provided by the law and the main articles of association and as to contain the agenda and the modification text, in the Turkish Trade Registry Gazette's issue dated 14 August 2024 and number 11143; in a national newspaper dated 12 August 2024 and in the corporate Internet address of http://www.alkim.com; furthermore by notifying the meeting date, venue, agenda and modification text by registered mail to the shareholders that are registered in the share book.

The Ordinary General Meeting has been realized with the participation of the shareholders representing the 80,397,556.80 TL portion of the 150,000,000 TL shares and within the electronic general assembly applications and the results of the General Assembly Meeting has been disclosed to the public at the address of http://www.kap.gov.tr on the date of 10.09.2024.

The Company's Grants and Donations Policy" has not changed within the period. Shareholders have been informed with a separate agenda item in the general assembly meeting of the amount and beneficiaries of all donations and aids made within the period and the policy changes in line with the policy approved by the General Assembly.

2.4. Voting Rights and Minority Rights

The shareholders are previously informed of the procedure how to vote in general meetings. The Company avoids any application that makes difficult to exercise the voting rights and, provides each shareholder with the opportunity to exercise their respective voting rights in the easiest and most appropriate manner whether in person or through electronic means.

There is no provision in the articles of association that prevents a shareholder from voting by means of a proxy not a shareholder.

Utmost care is taken in the Company for the exercise of minority rights. There has been complaint or criticism to the Company in this respect during 2024.

2.5. Entitlement to Dividends

The distribution of dividends of our company; is realized within the framework of the Turkish Commercial Code and The Capital Markets Board Law and the terms of the company's main articles of association within the time periods determined by the General Meeting. Each shareholder is entitled to dividend in proportion to his/her shares. There is no privilege granted with respect to the profit distribution. The profit to be distributed is determined at the General Meeting considering the liquidity position of the Company and the investments to be made. "The "Dividend Distribution Policy" has been established and announced at the http://www.alkim.com corporate Internet address and the shareholders are informed in the General Assembly meeting. Dividend policy is provided in the annual report.

At the Ordinary General Assembly held on April 25, 2024, it was decided not to distribute dividends based on the operating results for 2024.

ALKİM ALKALİ KİMYA AŞ DIVIDEND POLICY

Our Company's dividend policy is determined in line with the Capital Market Board, the pertinent communiqués of the Capital Market Board, the pertinent provisions of the Turkish Commercial Code and of the articles of association, as well as the corporate governance principles.

There is no privilege with respect to the dividends among the share types and, each shareholder is entitled to dividends in proportion to the shares held by him/her in the capital.

Considering the benefits of the shareholders and of the Company in accordance with the approvals of the board of directors and the general meeting of shareholders as well as the applicable legislations, the determination of the proportions of the payments of the dividends in cash is based on the financial structure, liquidity status and investment requirements of the Company and, it is principle to make distributions as much as possible, provided that it shall not be less than the amount and percentage as identified by the Capital Market Board.

In every year, the Board of Directors takes decision on the profit distribution and presents this to the approval of the General Assembly and this profit distribution recommendation is announced to public in accordance with the law and legislation and published in http://www.alkim.com address. The proposal may be accepted or refused at the General Meeting.

In case the board of directors proposes not to distribute any dividend, it shall explain the reasons to the shareholders at the respective general meeting, which shall be included in the respective annual report and, published through the internet site.

The dividends to be distributed may be in the form of cash, bonus shares or the combination of these options in line with the respective resolution adopted at the respective General Meeting.

The date on which the dividends are to be distributed shall be determined at the respective general meeting in line with the pertinent provisions of the Capital Market Law and of the Turkish Commercial Code, provided that it shall be within the legal periods. The dividends may be paid in installments with the equal or different amounts in accordance with the pertinent communiqués of the Capital Market Board, provided that a resolution shall be adopted at the general meeting with respect thereto. This policy shall be submitted to the first general meeting for the approval of the shareholders. This policy shall be submitted to the first general meeting for the approval of the shareholders.

In case of any amendment to the dividend policy, the resolution of the board of directors pertaining thereto and, the reason thereof shall be disclosed to the public in accordance with the principles for the special disclosures to the public.

The distribution of dividend advances shall take place by means of granting respective authorities to the board of directors limited to the fiscal period pertaining to the resolution adopted at the respective general meeting, in accordance with the Capital Market Board, the pertinent communiqués of the Capital Market Board, the pertinent provisions of the Turkish Commercial Code and of the articles of association, as well as the corporate governance principles.

2.6. Share Transfers

.

Article 20 of the Articles of Association contains the shares and sales as well as legal transfers of registered shares. Transfer of the registered shares is subject to the pertinent provisions of the Turkish Commercial Code and the Capital Market Law.

SECTION III: PUBLIC DISCLOSURES AND TRANSPARENCY

3.1. Corporate Web Site and Contents

Corporate Web Site is actively used to maintain the relations with the shareholders in a more efficient and fast manner and, keep in touch with the shareholders in accordance with the Corporate Governance Principles issued by the Capital Market Board. The information placed on the site are continuously updated under the responsibility of the Investor Relations Section. Information contained in the Corporate Web Site is in consistence with the disclosures pursuant to the respective legislations and, there is no conflicting or missing information.

Required arrangements have been made to the web site in accordance with the pertinent requirements of the corporate governance principles and the information and required conditions as set forth in article 1.11.5, section II, the Corporate Governance Principles issued by the Capital Market Board have been fulfilled. In addition to the disclosures pursuant to the respective legislations, the Corporate Internet Site of the Company at http://www.alkim.com in Turkish and English includes:

Corporate Identity Corporate Governance Financial Statements and Periodic Financial Statements Special Event Disclosures Stock and Investor Information Press Releases and Presentations Information Society

3.2. Annual Report

The Annual Report of the Board of Directors is prepared with such details as to enable the public to access full and accurate information on the activities of the Company and in accordance with the "Regulations on the Determination of Minimum Content of Companies' Annual Reports" published in the Official Gazette no. 28395 of 28 August 2012, and the Communique Serial No. II-14.1 "Terms Related to Financial Reporting in Capital Market" published in the Official Gazette no. 28676 of 13.06.2013 and, the Capital Market Board's Corporate Governance Communique Serial No. II.17.1 published on the Official Gazette no. 28871 of 03.01.2014. The company's annual report is being prepared in compliance with the relevant legislation and the Principles that are mandatory to implement.

The annual report reflects the flow of the actions and transactions concerning the respective accountancy period of the company, the financial condition in all aspects in a correct, complete, truthful and honest manner considering the rights and benefits of the company.

The annual report does not contain any misleading, exaggerated and misguiding statements and misrepresentations by means of paying attention to details so that the shareholders could reach any type of information in a complete and accurate manner.

In case a member of the board of directors does not agree on information contained in the respective annual report, such issues contested by that member and the reasons thereof are indicated therein. No objection has been made in this regard during the activity period of the year 2024. The Corporate Governance Principles Compliance Form and the Corporate Governance Information Form are also reported in the respective annual report.

SECTION IV: STAKEHOLDERS

4.1. Informing the Stakeholders

A stakeholder in relation with the Company is a third person in direct relation with the Company. The stakeholders are invited to a meeting or informed by telecommunication means whenever it is necessary. Considering the fact that a cooperation with the stakeholders is for the benefit of the Company in the long term, the Company respects and safeguards the rights of the stakeholders arising from the respective legislations, mutual contracts and agreements. The Company provides all stakeholders including the managers, employees and representatives with an opportunity to communicate to the management in respect of their concerns about possible illegal or unethical transactions. It is among the duties of the Audit Committee to examine such complaints submitted to the Company.

4.2. Participation of the Stakeholders in the Management

There is no special arrangement formed in the articles of association of the Company for the participation of the stakeholders in management. Further, there is no internal directives issued by the management in this respect. Our Company encourages the employees to attend the meetings that they need and that are approved by the Company so that they could receive professional and personal training.

4.3. Human Resources Policy

Our Human Resources Policy is to bring the productivity of our personnel to the highest level through using the performance evaluation, training and similar human resources instruments in accordance with the target and strategies of our Company. A high motivated and successful team has been formed as a result of the combination of the knowledge of our company of more than fifty years, its skilled and experienced management with the personnel consider their future as important in such a company and working appropriate for work discipline, human relations and a respectful working atmosphere.

We have a Human Resources Department continuing its activities for this purpose and Mr. Ali Murat Özçelik is the Manager of our Human Resources Department.

Our Company encourages the employees to attend the meetings that they need and that are approved by the Company so that they could receive professional and personal training. It keeps such information and documents to that end and, follow up the contribution thereof to the performance of the respective business operations.

Alkim Alkali Kimya A.Ş. provides the employees with family and children allowances on a monthly basis and, such personnel satisfying the necessary conditions are also provided with fuel allowance once a year and, also holiday allowances during religious holidays and, social payments are made in Ramadan in the form of supplies.

4.4. Codes of Conduct and Social Responsibility

Codes of Conduct applied by the Company and all employees must comply with have been determined within a period of efforts more than 50 years. These Codes of Conducts are in integration with the professional policies of Alkim, the applicable legislations, international practices and the general principles of honesty and integrity. Other than this general perspective, it is the responsibility of all the people in Alkim for protecting the country's benefits, being aware of the fact that we operate on the country's natural sources and acting accordingly, safeguarding the nature and environment and always putting the quality first and operating in teamwork. Codes of conduct are monitored by the superiors of the employees in a hierarchical structure. In case of any behavior contrary to these codes, the required actions are taken by the immediate superior, unit chief, line manager, assistant general manager and general manager respectively in accordance with the Company's regulations on human resources and personnel. Code of conducts is available at http://www.alkim.com.

SECTION V - BOARD OF DIRECTORS

5.1. Structure and Formation of the Board of Directors

By means of strategic resolutions, the board of directors maintains the balance of the risks, growth and returns of the Company at the best possible level, supervises the long term benefits of the Company by means of rationalist and prudent understanding of management and, manages and represents the Company according to these principles.

Turkish Commercial Code, Capital Market Legislation, Capital Market Board Communiqué and Decisions are fulfilled in the formation and election of the Board of Directors. Principles in this subject are also mentioned in the Articles of Association. The Company is managed and represented by a Board of Directors composed of nine members elected by the shareholders in a general meeting among the shareholders. There are two independent members in the Board of Directors of the Company.

The board of directors has defined the strategic targets of the Company, identified the labor and financial resources it may need and, audits the performance of the management of the Company. It observes the compliance of the Company's operations with the articles of association, the internal regulations and policies.

By means of strategic resolutions, the board of directors maintains the balance of the risks, growth and returns of the Company at the best possible level, supervises the long term benefits of the Company by means of rationalist and prudent understanding of management and, manages and represents the Company according to these principles.

The board of directors are identified in a way as to ensure that the members could work productively and creatively, take fast and rational decision, that the respective committees are formed and, could organize their respective operations in an efficient manner.

The number of the members of the Board of Directors has been determined as nine during the Ordinary General Meeting held on 25 April 2024 and the following names are elected as the Board Members. The members of the Board of Directors have been elected to serve for a duration of three years as per the article 9 of our main articles of association. The members of the Board of Directors were announced on the Trade Registry Gazette, issue no. 11084 on 17.05.2024. Current information about our Board of Directors members is included in the table below.

Name
&
Surname
and Profession
Position Duties
Undertaken
Outside
of
the
Partnership
Whether
Executive/Indep
endent Member
of the Board of
Directors
Term of
Office
M. Reha KORA
Mechanical Engineer,
Chairperson
of
the
Board
of
Executive Member 25.04.2024
MSc Directors - -
25.04.2027
A. Haluk KORA Vice Vice-Chairperson Non-Executive
Mechanical
Engineer, MSc
Chairperson
of
the
Board
of
of
the
Board
of
Directors
in
the
Member 25.04.2024
-
Directors companies
within
the Group
25.04.2027
Arkın KORA Vice Member
of
the
Non-Executive 25.04.2024
Physics Chairperson
of
Board of Directors Member -
the
Board
of
Directors
in the companies
within the Group
25.04.2027
Ferit KORA Vice Chairperson of the Non-Executive
Business
Administration
Chairperson
of
the
Board
of
Board of Directors
in the companies
Member 25.04.2024
-
Directors within the Group 25.04.2027
Tülay KORA Member
of
the
Business Member of the Board of Directors 25.04.2024
Administration Board
of
in the companies Non-Executive -
Directors within the Group Member 25.04.2027
Özay KORA
Economist
Member of the
Board
Directors
of Member
of
the
Board of Directors
in the companies
within the Group
Non-Executive
Member
25.04.2024
-
25.04.2027
Aydın ORHAN
Lawyer
Azade BAŞAĞA
Member of the
Board
Directors
Member of the
of -
Greenactive Ltd Şti
Green
Active
PR
Independent
Member
Independent
25.04.2024
-
25.04.2027
25.04.2024
-
Consultant Board
Directors
of Co-Founder
and
President
Member 25.04.2027
Özgür MUNGAN
Finance
Member of the
Board
Directors
of - Independent
Member
25.04.2024
-
25.04.2027

M.SELÇUK DENİZLİGİL - General Manager

Born in Gölcük in 1963, M. Selçuk Denizligil graduated from Ege University, Department of Chemistry in 1985. He completed his master's degree at Istanbul Technical University in 1988 and his doctorate in 1991. He received the title of Associate Professor at the same university in 1997. Between 1992 and 1994, he worked as a Researcher at the Hahn Meitner Institute Project for Exxon Europe Corp. Between 1996 and 1997, he conducted research at Johannes Gutenberg University in Mainz, Germany, with an Alexander von Humboldt Foundation Scholarship. He worked as a manager at Henkel in 1997, Cognis Germany in 2001, and Cognis Turkey between 2003-2010. Between 2010 and 2019, he worked as Factories Director and Business Development Director at BASF Türk. Denizligil, who worked as the General Manager of Polisan Kimya between 2019 and 2022, started working as the General Manager of Alkim Alkali Kimya company in February 2023 and still continues the same position.

5.2. The Board of Directors' Principles of Operation

The Board of Directors meets and adopts resolutions pursuant to the pertinent provisions of the Turkish Commercial Code and of the respective legislations. The meeting agenda of the Board of Directors are set forth by means of negotiations with the Chairperson, Members and General Manager. All information and documents about the agenda of the meeting of the Board of Directors are made available to the members of the Board of Directors by means of an equal information flow 10 calendar days before the meeting so that the members may ask for inclusion of an item to the agenda. An electronic mail is sent to the members of the Board of Directors containing an invitation letter, in which the meeting date, time, location and agenda items are indicated. The resolutions of the Board of Directors are based on the meeting and resolution quorums as set forth under the Turkish Commercial Code, the Capital Market Board and the respective regulations.

The meetings of the Board of Directors are held at the registered office, significant resolutions of the Board of Directors are disclosed by means of the Public Disclosure Platform (KAP) and, special disclosures are also published through the corporate internet site of the Company.

The chairperson of the Board of Directors and the General Manager of our company are different persons.

In the activity period of 2024, there has been no transaction performed by or on behalf of the members of the management boards with the Company in accordance with the permit granted at a general meeting and, no such activities subject to the non-competition rules have been performed by them or on their behalf.

5.3. Structure of the Board of Directors

There are nine members of the Board of Directors. Majority of the members of the Board of Directors are non-executive. There are three independent board members.

For the Corporate Management Committee that carries out the duties of the Nomination Committee within the framework of the relevant legislation, two independent nominees have been nominated and the report regarding whether the nominees possess the criteria to be independent or not has been presented to the Board of Directors on the date of 25.04.2024. During the activity year of 2024 no situation has arisen to eliminate the independency of the independent members. The declarations of the independent members on this matter are presented.

All the members of the Audit Committee have been elected among the members of the Board of Directors. The members of the committees have sufficient knowledge and experience in the field of accounting and financing.

There is one female board member of our Company in line with the Corporate Governance Principles. Our member is Azade Başağa.

During the activity period, no situation has arisen to eliminate the independency of the independent members.

5.4. Form of the Board Meetings

The Board of Directors actively fulfils its duties. The chairman of the board of directors talks to other members and the general manager to identify the agenda items to be deliberated during the meetings of the board of directors. It submits such information and documents in connection with the agenda items to the board members before the meeting granting a sufficient period of time.

Each board member has one vote in the board of directors.

Eleven meetings of the Board of Directors have been held during 2024 and, the majority of the members attended each meeting. There has been no agenda item opposed and recorded in the minutes during the meetings of the Board of Directors in 2024. There has been no agenda items opposed by the independent members and, no issue occurred to disclose to the public. The members of the Board of Directors are not entitled to weighted vote or veto right.

5.5. Board of Directors Committees

In order to fulfill the duties and the responsibilities of the Board of Directors in a healthy manner, the Committee Responsible for the Auditing, the Committee for Corporate Management, and the Committee for Early Detection of the Risk have been formed within body of the Board of Directors. The areas of duty of the committees, the working principles thereof and which members are to attend thereto have been identified by the Board of Directors, and disclosed to public on the corporate website and the Public Disclosure Platform. The chairpersons and members of all of the three committees have been elected based on the board resolution of April 25, 2024.

Since the partnership structure of our Company and the number of Board Members are limited, some of the Board Members undertake duty in more than one committees.

The frequency of the meetings of the committees is sufficient and, all the efforts are put down on paper and, recorded. The information about their operations and, the reports on the results of the meetings are submitted to the Board of Directors.

The chairpersons of the committees are appointed among the independent members of the board of directors. The Corporate Governance Committee consists of five members, the Early Detection of Risk Committee consists of three members and, the Audit Committee consists of two members. All the members of the Audit Committee are independent board members.

The chairperson of the Board of Directors and the General Manager do not take place in the committees.

The Board of Directors' committees have not received any consultancy services concerning the committees' activities during the period.

The frequency of the meetings of the committees is sufficient and, all the efforts are put down on paper and, recorded.

All the members of the Audit Committee have been elected among the members of the Board of Directors.

The chair persons of the Corporate Governance Committee and the Early Detection of Risk Committee are independent members of the Board of Directors. The Corporate Governance Committee consists of five members, the Early Detection of Risk Committee consists of three members and, the Audit Committee consists of two members.

There are three Independent Members of the Board of Directors of our Company. Our Independent Board Members Aydın Orhan, Azade BAŞAĞA and Özgür MUNGAN serve in three committees established within the Board of Directors.

Audit Committee

It carries out the supervision of the accounting system of the company, disclosure of the financial information to the public, independent auditing and internal control and the operation and efficiency of the internal auditing system, determines the methods and the criteria to be implemented in the matters of investigation of complaints coming to the company regarding the company's accounting and internal control system, their resolution, evaluation of the company employees, company's accounting and independent auditing aspects notifications within the framework of confidentiality, notifies its determinations and the evaluations and the proposals on its area of duty and responsibility to the Board of Directors in writing and its evaluations regarding the compliance of the annual and interim financial tables to be disclosed to the public with the reality and accuracy of the accounting principles that the company pursues, by obtaining the opinions of the responsible managers and independent auditors of the company together with its own evaluations and notifies to the Board of Directors in writing.

The Audit Committee has convened five times during activity period of the year 2024 and the decisions taken have been presented to the Board of Directors.

At the meeting of the Board of Directors of Alkim Alkali Kimya AŞ dated 25.04.2024; In accordance with the Corporate Governance Principles annexed to the Corporate Governance Communiqué numbered (II-17.1) of the Capital Markets Board and other relevant legislation; it was decided to establish the Audit Committee with the participation of Board Members Özgür Mungan and Aydın Orhan and to appoint Özgür Mungan as the Chairman of the Audit Committee.

Audit Committee Members:

Özgür Mungan- Chairman of the Audit Committee -(Independent Member of the Board of Directors)

Azade Başağa - Member of the Audit Committee -(Independent Member of the Board of Directors)

Aydın Orhan - Member of the Audit Committee -(Independent Member of the Board of Directors)

Corporate Governance Committee

The corporate governance committee identifies whether the respective corporate governance principles are applied, the reasons if not applied and, any possible conflict of interest that may arise to the failure to comply with these principles, provides suggestions to the board of directors to improve the applications of the corporate governance principles. It also supervises the operations of the "Investor Relations Department'

At the Board of Directors Meeting of Alkim Alkali Kimya AŞ dated 25.04.2024; In accordance with the Corporate Governance Principles annex to the Corporate Governance Communiqué numbered (II-17.1) of the Capital Markets Board and other relevant legislation; it was decided to establish the Corporate Governance Committee with the participation of Board members Aydın Orhan, A. Haluk Kora, Ferit Kora, Azade Başağa and Financial Affairs and Investor Relations Director Özgür Öge, and to appoint Aydın Orhan as the Chairman of the Corporate Governance Committee.

Corporate Governance Committee Members:

Aydın Orhan- Member of the Corporate Governance Committee –(Independent Chairperson of the Board of Directors)

A. Haluk Kora - Member of the Corporate Governance Committee (Vice-Chairperson of the Board of Directors)

Ferit Kora - Member of the Corporate Governance Committee (Member of the Board of Directors)

Azade Başağa - Member of the Corporate Governance Committee - (Independent Member of the Board of Directors) Özgür Öge - Member of the Corporate Governance Committee - (Financial Affairs and Investor Relations Director)

The Corporate Governance Committee also carries out the duties of the Committee for the Nominations and the Salary Committee. The tasks and responsibilities of the Corporate Governance Committee in respect of the committees for the nominations and remunerations as per the corporate governance are detailed in the working principles.

The Corporate Governance Committee informs the Board of Directors in writing of its findings and recommendations concerning the scope of its tasks and responsibilities. Accordingly, the Corporate Governance Committee has sent two notifications to the Board of Directors in 2024.

Early Detection of Risk Committee

It conducts the works with the purpose of defining the risks that would jeopardize the existence of the company, its development and continuation; forming the models to avoid crises and, the management systems; early detecting the risks thereof; enforcing all the measures related thereto and, managing the risks accordingly. The chairperson of the Early Detection of Risk Committee is elected among the independent board members as per the Corporate Governance Principles.

At the Board of Directors meeting of Alkim Alkali Kimya A.Ş. dated 25.04.2024; In accordance with the Corporate Governance Principles annex to the Corporate Governance Communiqué numbered (II-17.1) of the Capital Markets Board and other relevant legislation; it was decided to establish the Early Detection of Risk Committee with the participation of Board members Aydın Orhan and Tülay Kora and to appoint Aydın Orhan as the Chairman of the Early Detection of Risk Committee.

Early Detection of Risk Committee Members:

Aydın Orhan- Chairman of the Early Detection of Risk Committee (Independent Member of the Board of Directors)

Tülay Kora - Member of the Early Detection of Risk Committee (Member of the Board of Directors)

The committee immediately provides the board of directors its findings in respect of the area of its own tasks and responsibilities as well as its respective assessments and suggestions in writing. The Early Detection of Risk Committee has convened six times during activity period of the year 2024 and the decisions taken have been presented to the Board of Directors.

5.6. Financial Rights Granted to the Board Members and Executives with Administrative Responsibilities

The rights, benefits and salaries provided for the members of the Board of Directors and for the upper level managers and the criteria for the determination of these and the basis of the salary allotments are mentioned in the Salary Policy, and the information on the said policy has been given to the shareholders in the Ordinary General Assembly Meeting and the Salary policy has been disclosed to the public on the PDP and corporate Internet site.

During the Ordinary General Meeting held on April 25, 2024, the remuneration policy to be applied within the year has been deliberated, and it has been resolved to pay each member of the Board of Directors a gross amount of TL 42,500 per month. The members of the Board of Directors of our Company receives fixed remunerations per month. It has been included into the General Meeting's agenda as a separate item and presented for the information of our partners.

Dividends up to 4% of the net profit may be distributed to the members of the board of directors based on the article 16 of the articles of association provided that this must be approved at a general meeting. This amount to be distributed to the members of the Board of Directors may not exceed 10% of the paid capital.

The company does not provide any debt to any board member or top level manager, not make credits available, not supply credit under private credit title by means of third parties or does not establish guarantees like surety on its behalf.

5.7. Curriculum Vitae and Declarations of Independence of the Independent Board MembersAYDIN ORHAN

Born in Senykent in 1957, Aydın Orhan graduated from Istanbul University Faculty of Law in 1981. In 1982, he completed his postgraduate education at Istanbul University, Faculty of Law, Maritime Trade and Insurance Law Department. His areas of expertise include Commercial and Contracts Law, Mergers/Acquisitions, Transportation Law, Trademark and Copyrights and Intellectual Property Law.

DECLARATION OF INDEPENDENCE

I hereby state that I intend to serve as an "Independent Member" of the Board of Directors of Alkim Alkali Kimya A.Ş. (Company) based on criteria laid down in the Corporate Governance Principles of the Capital Markets Board specified in the Communique on Corporate Governance (11-17.1), which was issued by the Capital Markets Board and promulgated in the 28871st issue of the Official Gazette on January 3, 2014 and the applicable legislation and the articles of incorporation.

a) a) There was no employment relationship with the Company and partnerships in which the company has management control as defined in Turkey Financial Reporting Standards 10 or has significant influence under Turkey Accounting Standards 28 and shareholders who control the company's management or have significant influence over the company and legal entities where such shareholders hold management control and myself, my spouse, and relatives by blood or marriage up to the second degree which involves employment at managerial position and that I did not own more than 5% of the capital or voting rights or privileged shares or had a material business relationship in the past five years,

  • b) I did not assume key positions and responsibilities as an executive or acquired an interest (5% or more) and/or served as a member of the board of directors within any company from which the company purchased a significant amount of services or products, including the company's audit (including tax audit, statutory audit, and internal audit), rating, and consultancy under agreements concluded in the past five years,
  • c) I have professional education, knowledge and experience to dully perform the duties I shall assume for the position of an independent board member
  • ç) I have not worked / will not work for any public agency or institution on full time basis currently /after my election as a member except for working as a lecturer in a university provided that it is consistent with the applicable legislation,
  • d) d) I am a resident of Turkey pursuant to the Income Tax Law numbered 193 and 31. 12.1960,
  • e) I have strong ethical standards, professional reputation, and experience for making positive contributions to the Company's operations and maintaining my impartiality regarding any conflict of interest between the company and shareholders and freely making decisions by taking account of the rights of stakeholders,
  • f) I will spare time for performing representational functions on behalf of the company, which the Board of Directors may assign to me, as well as the company's affairs so that I will be able to monitor the company's operations and fully discharge the tasks that I have undertaken,
  • g) I have not served as a member of the company's Board of Directors for more than six years in the past ten years,
  • ğ) I have not served as an independent board member in more than three companies controlled by the company or its controlling shareholders or more than five companies listed in the stock,
  • h) I was not registered and announced on behalf of a legal entity elected as a board member.

I hereby inform the Board of Directors, shareholders, and all stakeholders accordingly. Date : 17.01.2024 Name and Surname : AYDIN ORHAN

ÖZGÜR MUNGAN

Completing his higher education at Ankara University, Faculty of Political Sciences, Department of Business Administration, Özgür Mungan started his career as Assistant Inspector at T. Emlak Bankası AŞ in 1989. He worked as the Deputy Chairman of the Inspection Board in the same institution between 1994 and 1995, and as the Branch Manager and Head of the Purchasing Department between 1995 and 2001. Özgür Mungan, who continued his duties as Branch Manager at T.C. Ziraat Bankası AŞ between 2001-2004, worked as a Bank Manager at TMSF between 2004-2006. He worked as the Deputy Head of the Department Responsible for Collection and Receivables Sales in the II. Collection Department. During the same period, Mungan served as the Deputy Chairman of the Board of Directors at Pamuk Yatırım Menkul Değerler AŞ, and as a Member of the Board of Directors at Zeytinoğlu Holding AŞ, Kümaş - Kütahya Magnezit İşletmeleri AŞ, Emzet Akaryakıt Dağıtım ve Otomotiv AŞ and Entil Endüstri Yatırımları Tic. AŞ.

Özgür Mungan, who worked as a Senior Advisor at Deutschebank A.Ş. between 2006-2009, served as Deputy General Coordinator at Zeytinoğlu Holding AŞ between 2010-2011. He served as General Manager at Eston Yapı A.Ş. and Eston İnşaat A.Ş. between 2011-2012, CEO at Eksen Group between 2015-2016, and CEO at Neptun Turizm İşletmeleri A.Ş. between 2017-2019.

Mungan most recently served as an Independent Board Member at Yapı Kredi Koray GYO, Kartal Renewable Energy and Hun Renewable Energy companies, which are traded on the ISE.

DECLARATION OF INDEPENDENCE

I hereby state that I intend to serve as an "Independent Member" of the Board of Directors of Alkim Alkali Kimya A.Ş. (Company) based on criteria laid down in the Corporate Governance Principles of the Capital Markets Board specified in the Communique on Corporate Governance (11-17.1), which was issued by the Capital Markets Board and promulgated in the 28871st issue of the Official Gazette on January 3, 2014 and the applicable legislation and the articles of incorporation.

  • a) There was no employment relationship with the Company and partnerships in which the company has management control as defined in Turkey Financial Reporting Standards 10 or has significant influence under Turkey Accounting Standards 28 and shareholders who control the company's management or have significant influence over the company and legal entities where such shareholders hold management control and myself, my spouse, and relatives by blood or marriage up to the second degree which involves employment at managerial position and that I did not own more than 5% of the capital or voting rights or privileged shares or had a material business relationship in the past five years,
  • a) I did not assume key positions and responsibilities as an executive or acquired an interest (5% or more) and/or served as a member of the board of directors within any company from which the company purchased a significant amount of services or products, including the company's audit (including tax audit, statutory audit, and internal audit), rating, and consultancy under agreements concluded in the past five years,
  • b) I have professional education, knowledge and experience to dully perform the duties I shall assume for the position of an independent board member
  • c) I have not worked / will not work for any public agency or institution on full time basis currently /after my election as a member except for working as a lecturer in a university provided that it is consistent with the applicable legislation,
  • d) I am a resident of Turkey pursuant to the Income Tax Law numbered 193 and 31.12.1960,
  • e) I have strong ethical standards, professional reputation, and experience for making positive contributions to the Company's operations and maintaining my impartiality regarding any conflict of interest between the company and shareholders and freely making decisions by taking account of the rights of stakeholders,
  • f) I will spare time for performing representational functions on behalf of the company, which the Board of Directors may assign to me, as well as the company's affairs so that I will be able to monitor the company's operations and fully discharge the tasks that I have undertaken,
  • g) I have not served as a member of the company's Board of Directors for more than six years in the past ten years,
  • ğ) I have not served as an independent board member in more than three companies controlled by the company or its controlling shareholders or more than five companies listed in the stock,

h) I was not registered and announced on behalf of a legal entity elected as a board member.. I hereby inform the Board of Directors, shareholders, and all stakeholders accordingly. Date : 17.01.2024 Name and Surname : ÖZGÜR MUNGAN

AZADE BAŞAĞA

Born in Istanbul in 1948, Azade Başağa completed her secondary education at TED Ankara College and her undergraduate education at Hacettepe University French Philology department.

She is Co-Founder and President at Greenactive Ltd Şti Green Active PR. She carried out environmental, social responsibility, product market share increase and corporate reputation development projects, designs and applications for the institutions she served. She has Green Active PR has 14 International and 5 National awards.

DECLARATION OF INDEPENDENCE

I hereby state that I intend to serve as an "Independent Member" of the Board of Directors of Alkim Alkali Kimya A.Ş. (Company) based on criteria laid down in the Corporate Governance Principles of the Capital Markets Board specified in the Communique on Corporate Governance (11-17.1), which was issued by the Capital Markets Board and promulgated in the 28871st issue of the Official Gazette on January 3, 2014 and the applicable legislation and the articles of incorporation.

  • a) There was no employment relationship with the Company and partnerships in which the company has management control as defined in Turkey Financial Reporting Standards 10 or has significant influence under Turkey Accounting Standards 28 and shareholders who control the company's management or have significant influence over the company and legal entities where such shareholders hold management control and myself, my spouse, and relatives by blood or marriage up to the second degree which involves employment at managerial position and that I did not own more than 5% of the capital or voting rights or privileged shares or had a material business relationship in the past five years,
  • b) I did not assume key positions and responsibilities as an executive or acquired an interest (5% or more) and/or served as a member of the board of directors within any company from which the company purchased a significant amount of services or products, including the company's audit (including tax audit, statutory audit, and internal audit), rating, and consultancy under agreements concluded in the past five years,
  • c) I have professional education, knowledge and experience to dully perform the duties I shall assume for the position of an independent board member
  • ç) I have not worked / will not work for any public agency or institution on full time basis currently /after my election as a member except for working as a lecturer in a university provided that it is consistent with the applicable legislation,
  • d) I am a resident of Turkey pursuant to the Income Tax Law numbered 193 and 31.12.1960,

  • e) I have strong ethical standards, professional reputation, and experience for making positive contributions to the Company's operations and maintaining my impartiality regarding any conflict of interest between the company and shareholders and freely making decisions by taking account of the rights of stakeholders,

  • f) I will spare time for performing representational functions on behalf of the company, which the Board of Directors may assign to me, as well as the company's affairs so that I will be able to monitor the company's operations and fully discharge the tasks that I have undertaken,
  • g) I have not served as a member of the company's Board of Directors for more than six years in the past ten years
  • ğ) I have not served as an independent board member in more than three companies controlled by the company or its controlling shareholders or more than five companies listed in the stock,
  • h) I was not registered and announced on behalf of a legal entity elected as a board member.. I hereby inform the Board of Directors, shareholders, and all stakeholders accordingly. Date : 17.01.2024 Name and Surname : AZADE BAŞAĞA

5.8. Risk Management and Internal Control Mechanism

The Early Detection of Risk Committee is responsible for carrying out works in order to early detect the risks that may jeopardize the existence, improvement and continuity of the Company, take necessary measures in connection with such risks detected and, manage these risks in an efficient manner, and reviews the risk management systems.

The company implements the risk management by considering the decisions of the Early Detection of Risk Committee. The Early Detection of Risk Committee has convened regularly and made the reporting to the Board of Directors within the terms of the Turkish Commercial Code and the Capital Market Board Legislation.

The partnerships, the shares of which are traded at stock exchange, must form an audit committee consisting of at least two members as per the respective Corporate Governance Principles. The independent audit corporation, from which the company receives the respective services, and the services to be received therefrom are identified by the audit committee and, submitted to the board of directors for approval at the respective general meeting. The Board of Directors identifies the audit committee to be appointed as per the respective Corporate Governance Principles as the committee in charge of the financial reporting. However, this does not relieve the board of directors from its responsibilities for the preparation, presentation and accuracy of the financial statements.

The audit committee supervises the accounting system, the disclosure of the financial information to the public, the independent audits and, the functioning and efficiency of the internal control and internal audit systems of the company.

We can state that one of the non-assignable and inalienable tasks of the board of directors of a stock corporation is the internal audit as per the pertinent provisions of articles 366 and 375 of the Turkish Commercial Code. Further, the Turkish Commercial Code, article 366, paragraph 2 provides that the board of directors may form committees and commissions, where the members of the board of directors may participate in order to follow up the progress of the works, to prepare report on the subjects to be presented to it, to have its resolutions to be implemented or for the purpose of internal auditing.

5.9. Company's Strategic Targets

The basic target of our company is to realize the production at the maximum efficiency in the sodium sulfate, potassium sulfate and sodium chloride (salt) mines being operated and to market this particularly in our country, as well as the close neighbors and to the World. Our Company is the world's sixth largest sodium sulfate manufacturer and committed itself to maintaining this position and makes great efforts for even going further.

Since the reserve of our mining licenses within Çayırhan is significantly high, it is the general policy of Alkim to increase our power in the sodium sulfate industry by means of increasing the capacity from time to time considering the demand for sodium sulfate that increases in our country and the region, without harming the supply and demand equilibrium.

This product of perfect quality manufactured at our potassium sulfate facility commissioned as of November 2022 started to be offered to the market. We work with leading distributors on potassium fertilizers. Our potassium sulphate, which has a much higher added value than sodium sulphate, has attracted great interest in both domestic and international markets from the very first moment it was produced. Potassium sulfate is a very valuable fertilizer for the soil. In addition to being extremely suitable for organic agriculture with its high potassium oxide content and almost zero chlorine, it is completely suitable for drip irrigation technologies in agriculture with its 100% water solubility feature.

The Board of Directors and the Management continuously supervise the conditions of the Company in line with the strategic goals. During the meetings of the board of directors held frequently and periodically, the conditions of the Company are reviewed and, new targets and strategies are developed depending on changing conditions.

Monthly reports with respect to the achievement of the said targets are submitted to the Board of Directors, which then assesses such reports.

SECTION VI. SUSTAINABILITY INFORMATION

The "Communique (II-17.1.a)" on Amendment to the Corporate Governance Communique (II-17.1)", through which necessary additions have been made to the articles 1 and 8 of the Corporate Governance Communique so that the basic principles that the publicly traded companies are expected to disclose while carrying out their Environmental, Social and Corporate Governance works as per the Corporate Governance Communique, serial no. II-17.1 (Framework of Compliance with Sustainability Principles) are shared with the stakeholders, was published on the Official Journal on October 2, 2020.

The corporations are expected to provide a clarification on the annual reports concerning whether the sustainability principles are applied, if not, a reasoned description for the reason of, and the impacts of the environmental and social risk management due to the failure to these principles.

The basic provisions concerning the content and publication of the Sustainability Principles are determined and announced by the Capital Market Board.

The application of the Sustainability Principles are voluntarily and, the shareholders have been informed of the Framework of Compliance with Sustainability Principles concerning the sustainability principles.

SUSTAINABILITY PRINCIPLES COMPLIANCE STATEMENT

The Corporate Governance Communique, serial no. II-17.1 was published on the Official Journal, no. 28871, on January 3, 2014. Our Corporate Governance Committee has analyzed the "Communique (II-17.1.a)" on Amendment to the Corporate Governance Communique (II-17.1)", published on the Official Journal on October 2, and the Framework of Compliance with Sustainability Principles.

The "Framework of Compliance with Sustainability Principles" sets forth the basic principles that the publicly traded companies are expected to disclose while carrying out the Environmental, Social Corporate Governance Management (ESM). Although the implementation of these principles are voluntarily, the corporations are required to report on whether they are complied with on the principle of "Comply or Disclose".

Accordingly, our Company has adopted the concepts of "equality", "transparency", "accountability" and "responsibility", which are the foundation of the corporate governance, and pays utmost attention to complying with the secondary regulations and decisions of the Capital Market Law ("CML") and the Capital Market Board ("CMB).

Our company attaches great importance to the application of the Corporate Governance Principles that are not mandatory. It has been decided to issue necessary regulations to comply with the framework at the maximum extent. There are already such regulations similar to those principles within the company. The company will make efforts to get over legal and restriction based obstacles. There has been no conflict of interest among the stakeholders up until today with respect to those principles not fully complied with.

In case of any conflict of interest that may arise in the future due to the failure to comply with these Principles that are not currently complied with, necessary investigations shall be made under the leadership of the Corporate Governance Committee, which is a management organ of our Company, the results thereof shall be shared with the Board of Directors, and necessary arrangements shall be made and, our organization is suitable for and award of these issues.

Efforts will continue to be made in order to ensure that the respective mechanisms within the framework of the said principles during the performance of the corporate governance practices and improve our corporate governance practices.

Based on the decision no. 34/977 adopted by the Capital Market Board on 23.06.2022 in accordance with the Corporate Governance Communique, serial no. II-17.1, the disclosures that are required to be made by corporations with shares exchanged on Primary Market, Star Market and Sub-Market on the Exchange Market for the compliance with the sustainability principles are to be made by means of using the following template of Sustainability Report through the Public Disclosure Platform (KAP) starting from the reports for 2022.

GENERAL PRINCIPLES

With the awareness of its social and environmental responsibilities, Alkim Alkali Kimya aims to be sensitive to the environment, to prevent environmental pollution and to continuously improve its environmental performance in all its activities and continues all its activities in this direction. With the awareness of environmental responsibility, it primarily determines the risks in each of its activities, and eliminates or minimizes these effects by making improvement studies. In this context, our Company, which focuses on creating value for today and the future, makes regulations in order to comply with the Sustainability Principles to the maximum extent.

At Alkim Kimya, sustainability, environmental management issues are evaluated and carried out through regular meetings with the environmental team, established within the scope of our environmental management system. In these meetings, the steps to be taken to reach our environmental targets set every year and to reach the targets are evaluated and studies are carried out in line with our environmental policy.

The Company does not have any lawsuits filed against it regarding environmental, social and corporate governance issues.

Attaching great importance to nature, the environment and quality since its establishment, Alkim Alkali Kimya has the first ISO 9001 Quality Management System in the world. In addition, it has a laboratory with ISO 14001 Environmental Management System, which proves the value it attaches to the environment, ISO 45001 Occupational Health and Safety Management System, which shows that its employees work in healthy environments and the value they attach to occupational health in their activities and the Accreditation Certificate, which is the TS EN ISO 17025 standard document, which proves the accuracy of the analyzes of the products it produces.

ENVIRONMENTAL PRINCIPLES

Due to the negative effects of climate change, natural resources are decreasing and ecosystems are being damaged. With the awareness that it is an important responsibility to minimize the effects of climate change and to protect natural resources that future generations will need, our company works to be a company that respects nature, as stated in its Environmental Policy.

Since the day it was founded, it continues its productions by aiming to carry out improvement works and to have a minimum impact on the environment, as in every other subject. The Company, which complies with the requirements of the TS EN ISO 14001 Environmental Management System document that it has owned since 2011, has achieved a significant reduction in the amount of waste with its waste management plans. In 2021, the Company received a "Basic Level Zero Waste Certificate" for five years.

Alkim Kimya carries out studies with the awareness of its responsibility within the scope of reducing natural resource consumption.

Our company has made significant improvements in recent times when energy costs have increased, and continues to do so. In this context, it aims to work more efficiently by starting to work on obtaining the ISO 50001 Energy Management System certificate in the upcoming period.

Efforts to replace the low efficiency electric motors working on the production line of the factory with more efficient electric motors (IE4) continue. In addition, research on the use of solar energy from renewable energy sources continues.

Our company aims to achieve a decrease in the amount of energy consumption in the coming years.

Alkim Kimya, within the framework of the global warming problem, carries out its activities with the awareness of its responsibility in reducing greenhouse gas (CO2) emissions.

Within the scope of the verification studies carried out by accredited institutions every year, when the last five years of the Company are taken as reference, it has been noted that although an increase is observed in the total production amount, an improvement has been achieved in the emission amounts per unit production.

Studies show that Alkim Alkali Kimya A.Ş. fulfills its part in the issue of global warming, which is emerging in the world. The company, without forgetting its responsibility towards the world, continues its efforts to implement projects that will reduce greenhouse gas emissions.

Water is one of our most important natural resources. Despite the decreasing rainfall due to the effect of climate change, water resources need to be managed effectively due to the increase in production and consumption. Alkim Kimya continues its activities aiming to ensure minimum water consumption.

Since 2011, our company, which complies with the requirements of the TS EN ISO 14001 Environmental Management System certificate it owns, monitors and evaluates the amount of water consumption.

Alkim Kimya aims to decrease the consumption of other natural resources, especially water consumption, in the coming years.

HUMAN RESOURCES

Alkim Kimya is a well-established company that creates added value to our country's economy with its knowledge, technology and products it produces. With the awareness that the most important value that carries us to this success is human resources, our employees are a part of our business and are our business partners with whom we share our successes.

Our company continues on its way by creating an effective and productive working environment for its employees who adopt the values of honesty, transparency, efficiency, respect for people and the environment. Alkim Kimya, based on laws, corporate values and ethical rules in human resources practices, is built on equal opportunity.

Human Resources follows an objective, systematic and development-oriented approach in all processes, from recruitment to career management, from training and development to performance management. Implements competitive compensation and benefits strategies that are compatible with market conditions.

Alkim Kimya does not discriminate on the basis of race, color, age, nationality, gender or belief while conducting all kinds of relations with its employees. As with all recruitment processes, equal opportunity is also provided to our employees. Employees' performance is managed and career and development plans are created with the right planning, succession and career management to bring good talents to our institution.

Our company has integrated its management and employees, which is fully committed to ethical values, has seen all its employees as family for generations, and thus has an employee structure with a high job loyalty.

Transferring Insider Information

Our employees shall never share non-public information with third parties for any reason, either for their own benefit or for the benefit of someone outside the Company. It is forbidden for those who can access inside information to gain benefits for themselves and/or third parties by using this information. Those who have access to inside information are the chairperson and members of the board of directors of the publicly traded company, senior managers, auditors, as well as those who may have information during the performance of their profession and duties, and the persons whose names have been determined, who may have direct or indirect information due to their contacts.

Anti-Bribery and Anti-Corruption

Alkim Kimya aims to present its approach to bribery and corruption clearly and to protect the image of the company. In this direction, as a part of the sensitivity it shows in business ethics, "Anti-Bribery and Anti-Corruption Policy has been implemented and it is announced on the corporate website of our company under the heading Investors Corporate Governance.

Due to the fact that it is a legally punishable act besides business ethics Employees are expected to show sensitivity in this regard and to be seen as a part of their personal duties and responsibilities independent of working life.

Sustainability Compliance Status

Our company aims at maximum compliance with the "Sustainability Principles Compliance Framework", which was prepared in line with the amendment dated 02.10.2020 made in the Corporate Governance Communiqué of the Capital Markets Board, and taking into account the interests of all stakeholders, especially the shareholders, it aims to continue its efforts to improve the compliance with the aforementioned principles.

COMPLIANCE STATUS
YES NO PARTIALLY N/A DESCRIP
TION
REPORT DETAILS ON INFORMATION
DISCLOSED TO THE PUBLIC
LINK DETAILS
A. General Principles
A1. Strategy, Policy and Targets
A1.
1
The board of directors identifies the
subjects, risks and opportunities
concerning
the
primary
environmental,
social
and
corporate governance (ESG).
x The
ESG
working
group
founded as a group reporting to
the General Manager upon the
suggestion of the Corporate
Governance
Committee
of
Alkim Alkali Kimya A.Ş. is
continuing
to
make
efforts
intended to identify the risks and
opportunities,
efficiently
manage
them,
and
create
values
and
awareness
in
respect of sustainability.
The ESG policies are created and
disclosed to the public by the board
of directors (e.g. Environmental
Policy, Energy Policy, Human
Rights and Employees Policy etc.).
x A resolution has been adopted
by the board of directors for the
Information
Policy,
Remuneration
Policy,
Profit
Distribution Policy and Donation
& Aid Policy out of the ESG
Policies prepared in line with the
Capital Market Legislation, and
all of these policies are made
available
on
the
Public
Disclosure Platform and at the
corporate
website
of
our
company:
www.alkim.com.
Other ESG policies are being
prepared.
https://www.alkim.com.tr/alki
m
bilgilendirme-politikasi
https://www.alkim.com.tr/Kar
-Dagitim
Politikasi https://www.alkim.com.tr/Bag is
Ve-
Yardim
Politikası
https://www.alkim.com.tr/rus
vet-ve
yolsuzlukla-
mucadele-politikasi
https://www.alkim.com.tr/Etik-Kurallar
https://www.alkim.com.tr/ucr etlendirme
politikasi
A1.2 The short and long term targets as
identified within the scope of the
ESG policies are disclosed to the
public.
x There are targets that had been
identified, but these targets
have not been disclosed to the
public. The efforts concerning
these targets are in progress.
A2. Application/Monitoring
A2.
1
The committees and/or units in
charge of carrying out the ESG
policies as well as the senior
officers
concerning
the
ESG
matters and, their tasks within the
organization are identified and
disclosed to the public.
x The
Corporate
Governance
Committee, Early Detection of
Risk and Audit Committees
have been established and
disclosed to the public. An ESG
Working
Group
has
been
formed at the general manager
office level upon the suggestion
of the Corporate Governance
Committee, but not disclosed to
the public.
The respective committee and/or
unit submits a report to the board
of directors about the operations
carried out within the scope of
these policies for at least once in a
year.
x The ESG Working Group provides
a report on such efforts under the
surveillance of the Corporate
Governance Committee.
A2.2 Application and action plans are
created and disclosed to the public
in line with the ESG Targets.
x TS
EN
ISO
140012015
Environmental
Management
System Certification is available
for the Dazkırı Koralkim Sodium
Sulfate Facilities of our company.
Action plans in line with the targets
have been created as part of this
management
system
but
not
disclosed to
the public.
Necessary
studies
are
in
progress for the integration of
our other facilities.
A2.3 The ESG Key Performance
Indicators (KPI) and the level to
fulfill these indicators by years
are disclosed to the public.
x The
Key
Performance
Indicators (KPI) have been
identified. Monitored by years.
However, not disclosed to the
public.
A2.4 The innovation activities that
improve
the
sustainability
performance
for
business
processes
or
products
and
services are disclosed to the
public.
A3. Reporting
x Innovation
activities
concerning
the
business
processes are carried out.
However, these studies have
not been disclosed to the public
yet.
Details about the sustainability x
A3.1 performance,
targets
and
actions of the organization are
provided on the annual reports
in a comprehensible, accurate
and sufficient manner.
Information is disclosed to the x The ESG Working Group is
A3.2 public by the organization to continuing
studies
in
this
indicate to which principles of respect.
the United Nation (UN) 2030
Sustainable
Development
Targets
its
operations
are
related.
Legal actions brought and/or x The company has not been a
finalized against the company party to a lawsuit in this scope.
A3.3 in respect of the ESG matters,
and those legal actions that are
significant to the ESG policies
and/or that may significantly
affect
the
operations
are
disclosed to the public.
A4. Verification
The ESG Key Performance x There has been no verification
A4.1 measurements
of
the
by an independent third party
organization are verified by an for the operations in 2024.
independent third party and
disclosed to the public.
B. Environmental Principles
TS
EN
ISO
140012015
The organization announces x Environmental
Management
B1 the
policies
and
practices,
System
Certification
is
action
plans,
environmental
available
for
the
Dazkırı
management systems (known Koralkim
Sodium
Sulfate
as ISO 14001 standard) and Facilities
of
our
company.
programs
in
the
field
of
Action plans in line with the
environmental management. targets have been created as
part
of
this
management
system but not disclosed to
the
public. Necessary studies are
in progress for the integration
of our other facilities.
The organization discloses to Our organization outsources
the public the report's extent, the x the
environmental
B2 report period, the report date, management from a company
restrictions
concerning
the
environmental reports prepared
inspection reports are prepared
and
shared
with
the
for
the
submission
of
Management
on
a
regular
environmental
management
basis. However, this reporting
related information. is not disclosed to the public.
B3 Provided on A2.1.
B4 The environmental targets that x
are included into the rewarding
criteria within the scope of
performance incentive systems
for the stakeholders (such as
board members, executives and
employees) are disclosed to the
public.
Details on how to integrate the The
primary
environmental
B5 primary environmental problems x problems have been integrated
with the respective business with the respective business
targets
and
strategies
are
targets and strategies, and
disclosed to the public. monitored
pursuant
to
the
applicable
legal
procedures
and, the practices concerning
thereto are followed. However,
this process has not been
disclosed to the public.
B6 Provided on A2.4.
Details
on
how
the
x
B7 environmental
matters
are
managed, and integrated with
the respective nosiness targets
and strategies in a way that
covers
the
suppliers
and
customers across the value
chain
of
the
organization
including
the
operational
process are disclosed to the
public.
Our organization is involved
into and supports the process
Details
on
whether
the
of the respective authorities
organization is involved into the x and
nongovernmental
B8 process
of
the
respective
organizations
to
create
authorities
and
environmental related policies.
nongovernmental organizations Contracts
have
been
to create environmental related concluded in 2022 for the
policies, and the collaborations purpose of ensuring recovery
with them are disclosed to the targets
with
the
recycling
public. companies that have been
established to contribute in the
establishment of a sustainable
recovery system through the
contribution and participations
of
the
industry,
local
governance and consumers for
the
economic
and
regular
recovery of packaging wastes
in Turkey. The collaborations
with
such
authorities
and
nongovernmental
organizations have not been
disclosed to the public.
The Scope 1 Greenhouse Gas
Emissions are calculated and
verified
by
the
verifying
Reports on the environmental organization
on
an
annual
impacts are disclosed to the basis, and the approved report
public in a comparative manner x is resented to the Ministry of
B9 under
the
light
of
the
Environment
and
Urban
environmental
indicators
Planning every year. The stack
(Greenhouse
gas
emissions
emissions are online monitored
(Scope
-1
(Directly),
Scope
-2
by
the Ministry of Environment
(Energy
indirectly),
Scope
-3
under
the
scope
of
the
(Other indirectly) 1), air quality, Continuous
Emission
energy management, water and Measurement
Systems
waste
water
management,
Communique
(SEÖS).
In
waste management, biodiversity addition
to
the
online
impacts). monitoring,
our
flue
gas
emissions are measured and
monitored
periodically
by
organizations
that
are
appointed by the and Ministry
of Environment and Urban
Planning. The following data
are
monitored:
energy
consumptions
and
water
consumptions
as
well
as
wastewater
and
hazardous/non
-hazardous
waste
discharged
together
therewith.
All
these
consumptions are periodically
reported in comparative tables.
B10 The
standards,
protocols,
x
methodologies and base year
details that are used to collect
and calculate the data are
disclosed to the public.
Details on the status of the Our
organization
monitors
B11 environmental indicators for the x increases or decreases in the
reporting year, increases or environmental indicators for
decreases, in comparison with the reporting year in a way that
previous years, are disclosed to is compared to the previous
the public. years within the scope of our
Environmental
Management
System, carry out necessary
improvements
and
take
necessary actions, but these
details are not
disclosed to the
public.
Short and long term targets have x TS
EN
ISO
140012015
B12 been identified to reduce the Environmental
Management
environmental
impacts,
and
System
Certification
is
these targets and the details on available
for
the
Dazkırı
the progress compared to the Koralkim
Sodium
Sulfate
targets set in the previous years Facilities
of
our
company.
are disclosed to the public. Targets have been set as part
of this management system but
not disclosed to the public yet.
Necessary
studies
are
in
progress for the integration of
our other facilities.
B13 A strategy to fight the climate
crisis is created and, the actions
planned are disclosed to the
public.
x
B14 Programs or procedures are
created in order prevent or
minimize
the
potential
environmental impacts of the
products and/or services, and
these programs or procedures
are disclosed to the public.
x Life cycles have been created
within
the
scope
of
the
Environmental
Management
Programs
to
prevent
or
minimize
the
potential
environmental impacts of the
products we manufacture, but
these life cycles have not been
disclosed to the public.
Actions are taken to reduce the
greenhouse emissions of the
respective third parties (e.g.
suppliers,
sub
-contractors,
dealers etc.) and these actions
are disclosed to the public.
x
B15 Details on the environmental
benefits/earnings
and
cost
savings from such attempts and
projects intended to minimize
the environmental impacts are
disclosed to the public.
x
B16 Data on energy consumption
(natural gas, diesel, gasoline,
LPG, coal, electric, heating,
cooling etc.) are disclosed to
the public as Scope
-1 and
Scope
-2.
x Data on energy consumption
(natural gas, diesel, gasoline,
LPG, coal, electric, heating,
cooling etc.) are shared with
third parties as Scope
-1 and
Scope
-2 within the scope of the
applicable legal procedures.
B17 Details
on
electricity,
heat,
steam and cooling generated
and
consumed
within
the
reporting year are disclosed to
the public.
x Total generated and consumed
electricity, heat, steam, etc.
data are recorded and reported
to the senior management on a
daily basis.
B18 Studies
are
performed
on
increasing the use of renewable
energy, transition to zero or low
carbon electricity and these
studies are disclosed to the
public.
x Efforts are made in respect of
the transition to the use of
renewable
energy
in
both
Dazkırı
Sodium
Sulfate
Facilities and Çayırhan Sodium
Sulfate Facilities, and it is
planned that it will put into
practice within 2025.
B19 Data on the renewable energy
production
and
usage
are
disclosed to the public.
x
B20 Energy efficiency projects are
prepared, and the details on the
reduces achieved in the energy
consumption
and
emission
because
of
the
energy
efficiency projects are disclosed
to the public.
x It is planned that the studies on
the TS EN ISO 50001 Energy
Management
System
and
Energy
Efficiency
that
are
legally compulsory are to be
completed within 2024. This
will make it possible to prepare
projects intended to reduce the
energy
consumptions
and
emissions.
B21 Details
on
the
water
consumption, and the quantities
and sources of water drawn
from
underground
or
aboveground,
recycled
and
discharged, and the respective
procedures are disclosed to the
public.
x Water consumption, and the
quantities and sources of water
drawn from underground or
aboveground,
recycled
and
discharged are monitored.
B22 Details
on
whether
the
operations
or
activities
are
included in any carbon pricing
system
(Emission
Trading
x
System, Cap & Trade or Carbon
Tax) are disclosed to the public.
B23 Details on the carbon credit
information that is accumulated
or
purchased
during
the
reporting period are disclosed
to the public.
x
B24 Details on if carbon pricing is
applied within the partnership or
not are disclosed to the public.
x
B25 Details on the platforms on
which
the
environmental
information of the organization
is provided are disclosed to the
public.
x
C. Social Principles
C1.
Human
Rights
and
Employee's Rights
C1.1 A Corporate Human Rights
and Employees' Rights Policy
is created in accordance with
the Universal Declaration of
Human
Rights,
the
ILO
Conventions
approved
by
Turkey, and other applicable
regulations,
those
responsible
for
the
implementation of this policy
are identified, and the details
thereon are disclosed to the
public.
x Our company has announced its
Ethical Principles and Commitments
at workplaces through the employee
booklets
and
boards,
and
has
distributed these booklets to each
employee. Moreover, our company
fulfils its essential working principles
and legal compliance commitments
including Human Rights, publishes
this
including
its
website,
and
informs
its
customers
and
employees
separately
through
audits
and
acknowledgements;
however this has not been disclosed
to the public.
C1.2 The employees' rights policy
contains the matters such as
fair labor, improvement of
working conditions, women
employment
and
engagement considering the
impacts of the supply and
value
chains
(no
discrimination in respect of
gender,
race,
religion,
language,
civil
status,
ethnicity, sexual orientation,
gender
identity,
family
responsibilities, trade union
activities,
political
opinion,
disability, social and cultural
differences etc.).
x These issues have been passed
from audit for social compliance
issues that have been audited in the
audit reports of the SEDEX audit
company, and this issue is included
into
our
Company's
Ethical
Principles and our commitments. All
the stakeholders need to comply
with the business ethics rules or
have a code of conduct that is of
equal importance.
C1.3 Details on the measures that
are taken along the value chain
for the protection of groups
sensitive to certain economic,
environmental, social factors
(low
-income groups, women,
etc.) or minority rights / equal
opportunities are diclosed to the
public.
x Our company is audited by SEDEX,
which has BSCI Corporate Social
Compliance audit certificate, and our
practices
in
this
regard
are
considered at an advanced level so
far. However, not disclosed to the
public.
C1.4 Details
on
developments
related to the preventive and
corrective actions concerning
discrimination,
inequality,
violations
of
human
rights,
forced
labor
and
child
employment are disclosed to
the public.
x We
follow
-up
the
principles
announced in AFR 01
-06 in our
Social Compliance Policies, and our
company
has
not
made
any
reporting since no such case has
been
recognized
in
its
history.
However, not disclosed to the public.
C1.5 The employees' rights policy
contain the matters such as
investment
in
employees
(training,
development
policies),
compensation,
granted
benefits,
right
to
unionization, work / life balance
solutions,
and
talent
management.
x Implemented and audited within the
scope of BSCI Corporate Social
Compliance. No deficiency has been
found in this matter that is one of the
articles of SEDEX audits.
Mechanisms are created in
connection with the resolution
of
complaints
and
disagreements of employees to
identify
the
processes
to
resolve such disputes.
Details on the activities carried
out within the reporting period in
order to maintain customer
satisfaction are disclosed to the
public.
x
x
Within
the
direct
and
vertical
hierarchy of our employees; if there
is any problem or disagreement that
is required to be resolved, all of our
employees are aware of our "Open
Door Policy" as we have declared.
There are evaluations submitted to
our employees on the subject.
Occupational health and safety
policies
are
created
and
disclosed to the public.
x Our company has an Occupational
https://www.alkim.com.tr/is
-
Health and Safety Policy and made
sagligi
-ve
-
guvenlik
available the same on the website to
all the stakeholders and the public.
C1.
6
Details on the measures that
have been taken to prevent
work accidents and to protect
health,
and
the
accident
statistics are disclosed to the
public.
x This
is
currently
performed
by
means of electronic signs at the
company's production locations.
Furthermore, the notifications arising
from the laws are made on time and
to public entities, and their statistics
are kept at public entities. In addition
https://www.kap.org.tr/tr/Bildiri
to
this,
there
is
no
separate
m/902114
disclosure open to entire public.
The
health
and
safety
of
our
employees are of top importance for
Alkim. As a result of the efforts
carried out in line with this purpose,
all the factories are entitled to TSE
Covid
-19
Safe
Production
Certification.
C1.7 Personal data protection and
data
security
policies
are
created and disclosed to the
public.
x In the KVKK (Protection of Personal
Data) Legal process; occupational
safety
requirements
have
been
fulfilled
with
the
information,
assignment and commitments that
are made through VERBIS system,
as well as the notifications made on
our WEB site and the employees and
data owners whose explicit consent
have been received by us. However,
not disclosed to the public.
C1.8 A code of conducts is created
and disclosed to the public.
x With our Document AFR 01-07, our
Company's Business Ethics Policy
and Rules have been disclosed to all
public and 3rd parties through our
Internet site.
https://www.alkim.com.tr/Etik
Kurallar
C1.9
C1.
1
Acknowledgement
meetings
and
training
programs
are
organized for employees on
ESG policies and practices.
x Decided to engage the Corporate
Governance Committee to ensure
that
the
necessary
efforts
concerning
the
Sustainability
Principles Compliance Frame are
carried out in line with the business
0 operations
of
our
company.
A
Sustainability Working Group has
been formed within the organization
of our company. The authorized
persons within the group have been
informed accordingly. An evaluation
is being made in this respect.
C2.
Stakeholders,
International Standards and
Initiatives
C2.
1
A customer satisfaction policy is
issued about the management
and
resolution
of
customer
complaints and, and disclosed
to the public.
x Our
company
attaches
great
importance to customer satisfaction
within the framework of our TS ISO
9001:2018
Quality
Management
System and, this is discussed on the
ALKİM Quality Policy.
https://www.alkim.com.tr/kali te
-
yonetimi
Levels of customer satisfaction are
measured
every
year
and,
necessary actions are taken in case
of dissatisfaction as a result of
feedbacks. However, not disclosed
to the public.
C2.2 Details on the communication
with the stakeholders (which
stakeholders,
subject
and
frequency) are disclosed to the
public.
x Issues that concern Stakeholders in
the field of sustainability are shared
on various platforms, in the annual
report and on the corporate website.
C2.3 Details on the international
reporting standards adopted on
the reports are disclosed.
x Studies are in progress in respect of
international reporting standards.
C2.4 Details
on
the
principles
adopted
with
respect
to
sustainability as well as the
international
institutions,
committees
and
procedures
applying to the organization are
disclosed to the public.
x Studies within this scope are in
progress .
C2.5 Improvements and are carried
out and efforts are made to be
included in the sustainability
indexes of the Istanbul Stock
Exchange and/or international
index providers.
D.
Corporate
Governance
Principles
x Matches with the targets, efforts and
actions of sustainability.
D1 Opinions of stakeholders in
determining the measures and
strategies
in
the
field
of
sustainability are received.
x
D2 Efforts are made on raising
awareness on the issue of
sustainability
and
its
importance
through
social
responsibility
projects,
awareness
activities
and
trainings.
x

CORPORATE GOVERNANCE COMPLIANCE REPORT and INFORMATION FORM

The Corporate Governance Compliance Report (CRF) and the Corporate Governance Information Form (CGIF) are disclosed to the public at the Public Disclosure Platform ("PDP") at least three weeks before the general assembly meeting date. The CRF is used to report the status of compliance with voluntary principles, and the CGIF is used to provide information on the existing corporate governance practices.

The Corporate Governance Compliance Report has been prepared as follows in line with the formats as set forth under the Capital Market Board's ("CMB") Decision No. 2/49 of 10 January 2019 and the Corporate Governance Communique No. II-17.1. The section marked with (X) represents the compliance status of the Company and necessary explanations are made for the practices for which a "yes" answer is not given.

Corporate Governance Compliance Report

Compliance Status
Yes Partially No Exempted N/A Disclosure
Corporate
Compliance
Report
Governance
1.1. FACILITATION OF USE OF
THE
RIGHTS
OF
SHAREHOLDERS
THE
1.1.2
-
All
information
disclosures that may affect the
exercise by a shareholder of their
rights
are
update
available to the investors through
the corporate internet site of the
company.
and
and
made
X
1.2. RIGHT TO DEMAND AND
REVIEW INFORMATION
1.2.1-
The
management has avoided any
action that may make difficult the
performance of special audits.
company's X There is no provision in
the
articles
of
association concerning
the
appointment
of
special
audits.
There
has been no special
audit request within the
period.
1.3. GENERAL MEETING
1.3.2 - The company has ensured
that the agenda items of the
general
meeting
are
disclosed and, each proposal is
submitted
under
a
heading.
clearly
separate
X
1.3.7
-
Those
who
privilege access to the company's
information have informed the
board of directors about their
actions carried out concerning
the subject of activity of the
company on their own behalf,
which is to be notified during the
general meeting.
1.3.8 -
The respective board
have
a
X No
transaction
disclosure
has
been
made within the scope
of the Principle 1.3.7.
members and other persons
relating
to
the
material
subjects in the agenda, those
in charge of the preparation of
X
the financial statements and,
the auditors have attended the
general meeting.
1.3.10
-
A separate section has
been
formed
under
the
agenda items of the general
meeting the amounts of all the
donations and aids and, those
who have made use thereof.
X The amounts of all the
donations
and
aids
and, those who have
made
use
thereof
have been stated on
the agenda items of
the general meeting.
1.3.11
-
The general meeting
was held open to the public
including the stakeholders and
media members with no right
X
to take the floor.
Compliance Status
Yes Partially No Exempted N/A Disclosure
1.4. VOTING RIGHT
1.4.1
-
There
is
no
restriction
or
application
that may make difficult for
the
shareholders
to
exercise their voting rights.
X
1.4.2-
There is no share in
the company to which a
privilege
voting
right
is
attached.
X Whereas, the shares of
the Groups A, B, C and
D were entitled to 100
votes per share as per
the
Articles
of
Association
during
the
incorporation
of
the
Company,
and
the
Turkish
Commercial
Code
No.
6102,
the
article 479(2) "Privileges
regarding
the
Voting
Right" provides that each
share may be entitled to
fifteen votes at maximum
and,
this
restriction
would not be applied if it
was provided that there
was a justified reason or
due to such reasons that
require
institutionalization.
Accordingly,
a
legal
action
initiated
before
the Commercial Court of
First
Instance
located
where
the
registered
office
is
situated
for
establishing
a
provisional injunction to
be
excluded
from the
said restriction has been
refused
and,
the
decision
thereof
has
been
approved
before
the Court of Cassation.
Therefore,
the
respective provisions of
the article 479 (2) of the
Turkish
Commercial
Code have applied to the
Group "A", "B", "C" and
"D" shares. 1 vote cast
for 1 share in any type of
the shares during the
General
Assembly
Meetings
of
the
Company.
1.4.3
-
The company has
not exercised the voting
right at general meeting of
any partnership, in which
the company has a mutual
participation
relationship
causing
a
controlling
relationship.
1.5. MINORITY RIGHTS
X Our
company
has
exercised voting right at
the general meeting of
Alkim Kağıt Sanayi ve
Ticaret A.Ş. where our
company holds 79.93%
of the shares.
1.5.1
-
The company has
taken utmost care about
the use of the minority
rights.
X
1.5.2
-
Minority rights has
also been granted to those
holding less than twentieth
of the capital as per the
articles of association and,
extended the scope of the
minority rights under the
articles of association.
X The pertinent provisions
of
the
Turkish
Commercial
Code
No.
6102
and
the
Capital
Market Law No. 6362 are
applied although it is not
regulated
under
the
articles of association.
1.6.
ENTITLEMENT
TO
DIVIDENDS
1.6.1
-
The dividend policy
approved by the general
meeting
has
been
disclosed
to
the
public
through
the
corporate
website of the company.
X
1.6.2
-
The dividend policy
contains
minimum
information that is sufficient
to
ensure
that
the
shareholders
could
forecast the principles on
how to distribute the profits
in the subsequent periods.
X
1.6.3
-
Reasons of non
-
distribution
of
dividends
and, how the undistributed
profits are to be used are
indicated in the respective
agenda item.
X
1.6.4
-
The
board
of
directors have reviewed if
there has been balance
between the benefits of the
shareholders
and
the
benefits of the company in
the dividend policy.
X
1.7. SHARE TRANSFERS
Compliance Status
Yes Partially No Exempted N/A Disclosure
1.7.1
-
There
is
no
restriction
that
make
difficult share transfers.
X There is no restriction
on the shares of our
company traded at the
exchange
market.
However, a right of first
refusal is attached to
the
founder
shares
concerning
the
transfers of the founder
shares.
2.1.
CORPORATE
WEBSITE
2.1.1
-
The
corporate
website of the company
contains all the factors as
required
as
per
the
corporate
governance
principle no. 2.1.1.
X Since the Company does
not have a policy on the
acquisition
of
own
shares,
there
is
no
information
on
the
website in this respect.
2.1.2-
The
shareholding
structure
(names,
privileges,
number
of
shares and privileges of
the real persons holding
5% of the issued capital) is
updated on the corporate
website
once
every
6
months.
X
2.1.4
-
The
information
contained on the corporate
website of the company is
also prepared in foreign
languages
selected
according
to
the
needs
with the same content as
the Turkish version.
X Information
considered
significant
has
been
translated
into
English
and,
efforts
are
being
made to translate all the
information.
2.2. ANNUAL REPORT
2.2.1
-
The
board
of
directors ensures that the
annual reports reflect the
company
activities
in
a
complete
and
accurate
manner.
X
2.2.2 -
The annual report
contains all the factors as
required by the principle
no. 2.2.2.
X
3.1. COMPANY POLICY
CONCERNING
STAKEHOLDERS
3.1.1
-
The
regulations
concerning the rights of the
stakeholders are protected
under
the
respective
agreements and bona
-fide
rules.
X
3.1.3
-
The policies and
procedures concerning the
rights of the stakeholders
are made available on the
corporate website of the
company.
X There is no policy and
procedure concerning the
rights of the stakeholders.
3.1.4
-
Mechanisms
through
which
the
stakeholders are able to
notify
about
actions
contrary to the pertinent
legislations
and
considered
not
ethically
have been created.
X
3.1.5
-
The Company deals
with the conflicts of interest
between the stakeholders
in a balanced manner.
X
3.2. SUPPORTING THE
PARTICIPATION OF THE
STAKEHOLDERS IN THE
COMPANY
MANAGEMENT
3.2.1
-
The participation of
the
employees
in
the
management is regulated
under
the
articles
of
association or by means of
internal directives.
X The participation of the
employees
in
the
management by means
of
internal
applications,
although there is no such
provision
under
the
articles of association.
3.2.2
-
Methods such as
surveys
/
consultations
have
been
applied
to
obtain the opinions of the
stakeholders in respect of
significant decisions that
may have consequences
about the stakeholders.
X Requests,
recommendations
and
complaints submitted by
the customers, suppliers
and
shareholders
are
dealt with and assessed
accordingly.
Compliance Status
Yes Partially No Exempted N/
A
Disclosure
3.3. COMPANY'S HUMAN
RESOURCES POLICY
3.3.1
-
An
employment
policy that provides equal
opportunities
and
a
succession planning for all
the key executives have
been
adopted
by
the
company.
X Although there is an
employment
policy
that
provides
equal
opportunities, studies
are in progress about
the
succession
planning.
3.3.2 -
Criteria with respect
to personnel hiring have
been set forth in writing.
X
3.3.3
-
The
company
possesses
a
Human
Resources
Improvement
Policy
and,
carries
out
training activities for the
employees accordingly.
X
3.3.4
-
Meetings
have
been held to inform the
employees
of
the
company's
financial
conditions,
remuneration,
career planning, training
and health.
X There
has
been
periodic
information,
but
no
information
meeting
has
been
held since efforts are
in progress in respect
of
some
certain
subjects.
3.3.5 -
Decisions that may
affect the employees have
been
informed
to
the
employees
and
their
representatives.
The
opinion of the respective
union has been obtained in
these respects.
x Our employees are
directly informed but
there is no union.
3.3.6
-
All
the
job
definitions
and
performance criteria have
been prepared in detailed
for
the
employees
and
announced to them and,
used
for
the
decisions
about remuneration.
X

3.3.7 - Measures have been taken in order to discrimination among the employees and protect the employees from physical, mental and emotional abuses within the company through mechanisms such as procedures, training, awareness raising, targets, monitoring, complaints etc. X 3.3.8 - The company supports the right to form associations and use of collective agreements in an efficient manner. X 3.3.9 - A secure working environment is provided for the employees. X 3.4. RELATIONSHIPS WITH THE CUSTOMERS AND SUPPLIERS 3.4.1-The company has measured the level of customer satisfaction and, acted in line with the principle of unconditional customer satisfaction. X 3.4.2 - In case there is any delay in the processing of the requests of the customers concerning the goods and services purchased, the customers are accordingly informed. X 3.4.3 - The company act in line with the respective quality standards concerning its goods and services. X 3.4.4 - The company possesses all controls intended to protect the confidentiality of the sensitive information of the customers and suppliers considered trade secrets. X 3.5. CODES OF CONDUCT AND SOCIAL RESPONSIBILITY 3.5.1 - The board of directors has set forth the Codes of Conduct and make it available on the X

corporate website of the
company.
Compliance Status
Yes Partially No Exempted N/
A
Disclosure
3.5.2-
The
company
is
sensitive
about
the
concept
of
social
responsibility. It has taken
measures
to
prevent
corruption and bribery.
X
4.1. FUNCTION OF THE
BOARD OF DIRECTORS
4.1.1-
The
board
of
directors ensures that the
strategies and risks do not
pose any threat to the
long-term benefits of the
Company and, an efficient
risk
management
takes
place accordingly.
X
4.1.2-
The agenda items
and
minutes
of
the
meetings evidence that the
board
of
directors
discusses on approve the
strategic
targets
of
the
company,
identifies
the
resources
need
and,
audits the management2s
performance.
X The board of directors
carries
out
the
agenda
items
and
minutes in line with
the
company's
targets
and
the
resources
needed,
but
there
is
no
performance audit on
the board of directors.
4.2.
THE
BOARD
OF
DIRECTORS'
PRINCIPLES
OF
OPERATION
4.2.1-
The
board
of
directors
have
documented its activities
and,
informed
the
shareholders accordingly.
X
4.2.2-
The
board
members'
duties
and
authorities
have
been
indicated on the annual
report.
X The
annual
reports
indicates
the
pertinent
provisions
of
the
Turkish
Commercial
Code
concerning the duties
and authorities of the
board members but,
does
not
contain
detailed information.
4.2.3
-
The
board
of
directors has formed an
internal
control
system
suitable for the size and
complexity of the activities
of the company.
X The company's sales,
procurement,
invoicing,
goods
acceptance and the
energy consumptions
of all the business
units are subject to
cross check by the
accounting
and
financial
affairs
departments.
This
data
from
the
accounting
department
is
reviewed in a detailed
manner during a part
of
each
board
meeting,
for
which
sufficient
period
of
time is allocated and,
each board member
is able to query and
audit all the sales,
procurements
and
productions.
4.2.4
-
The annual report
contains
the
information
about the functions and
efficiency of the internal
control system.
X
4.2.5
-
The duties of the
chairman
and
CEO
(general
manager)
have
been separated from one
another
and
defined
accordingly.
X
4.2.7
-
The
board
of
directors ensures that the
investor
relations
department
and
the
corporate
governance
committee
efficiently
operate
and,
has
functioned
in
a
close
relationship
with
the
investor
relations
department
and
the
corporate
governance
committee in respect of the
settlement of the disputes
between the company and
the
shareholders
and,
connection
with
the
shareholders.
X
4.2.8
-
A
management
responsibility
insurance
has
been
taken
in
an
There is no executive
liability insurance.
amount that exceeds 25% X
of the company capital in
respect of the faults during
the performance of their
duties
and,
the
losses
caused
thereby
to
the
company.
Compliance Status
Yes Partially No Exempted N/A Disclosure
4.3.
STRUCTURE
OF
THE
BOARD
OF
DIRECTORS
4.3.9-
A
target
for
the
percentage of the female
board members has been
set as 25% at minimum
and, a policy has been
crated to attain this target.
The
board
of
directors'
structure is reviewed on an
annual
basis
and,
the
process
of
nominations
takes place in accordance
with this policy.
x A percentage of 25% at
minimum for the female
board
members
has
been
considered.
The
percentage of the female
board members in the
company
is
33%.
However,
there
is
no
policy
concerning
the
target of 25% at minimum
for
the
female
board
members
in
the
company.
4.3.10 -
At least one of the
committee
members
in
charge
of
audit
has
experience of 5 years in
the
field
of
audit/accounting
and
financing.
X
4.4.
FORM
OF
THE
BOARD MEETINGS
4.4.1
-
All
the
board
members have physically
or electronically attended
most
of
the
board
meetings.
X
4.4.2
-
The
board
of
directors
has
defined
a
minimum period of time in
which all the information
and
documents
concerning
the
agenda
items need to be sent to all
the
shareholders
before
the meeting.
X
4.4.3 -
The opinions of the
board
members
not
attending the meeting but
informing
the
board
of
directors of their opinions
have been submitted to the
other board members.
X
4.4.4
-
Each
board
member has one vote in
the board of directors.
X
4.4.5
-
Internal regulations
have
been
created
concerning how the board
meetings are to be held.
X
4.4.6
-The minutes of the
board
meetings
indicate
that all the agenda items
have been discussed and,
are prepared in a way to
include
the
opposite
opinions.
X
4.4.7
-
There
is
a
restriction on the board
members precluding them
to take offices outside the
company. The information
on the offices taken by the
board
members
outside
the
company
has
been
submitted
to
the
shareholders
during
the
general meeting.
X There is no restriction on
the
board
members
precluding them to take
offices
outside
the
company
considering
that it would be beneficial
to the company. There is
no restriction.
The
shareholders
have
been informed during the
general meeting through
the annual report.
Compliance Status
Yes Partially No Exempted N/A Disclosure
4.5.
COMMITTEES
FORMED
WITHIN
THE
BOARD OF DIRECTORS
4.5.5
-
Each
board
member
takes
place
in
only one committee.
x Considering the number
of existing members in
line
with
the
pertinent
provisions
of
the
applicable regulations on
the form of committees,
there is a necessity that a
member of the Board of
Directors needs to be in
more than one committee
and, it has been observed
that this does not cause
any
setback,
non
compliance
and/or
conflict
of
interest
concerning
the
operations
of
the
committees.
The
committee
memberships
are
reviewed
every
year
depending on the number
of the board members
and the structure of the
board.
4.5.6-
The
committees
have invited such persons
to their meetings to obtain
their
opinions
and,
obtained
their
opinions
accordingly.
X
4.5.7 -
The annual report
contains
the
information
on the dependence of the
persons/corporations from
which
the
committee
receives
consultancy
services.
X The committees have not
received any consultancy
service.
4.5.8 -
A report has been
issued
concerning
the
consequences
of
the
committee meetings and
submitted
to
the
board
members.
X

4.6. FINANCIAL RIGHTS GRANTED TO THE BOARD MEMBERS AND EXECUTIVES WITH ADMINISTRATIVE RESPONSIBILITIES

4.6.1
-
The board of directors has
carried
out
a
performance
assessment
on
the
board
in
order
to
evaluate
if
it
has
efficiently
fulfilled
its
responsibilities.
X No
performance
assessment
takes
place on the board of
directors.
4.6.4
-
The company has not
made available any loan or lent
to
a
board
member
or
an
executive
with
administrative
responsibilities, not extended the
period for the repayment of a
debt, not improved the respective
terms, not made available any
loan
as
an
individual
loan
through
third
persons
or
not
given any security in their favor.
X
4.6.5
-
Remunerations given to
each
board
member
and
executive
with
administrative
responsibilities
have
been
explained on the annual report.
X The
sum
of
the
benefits
made
available to the Board
of Directors and the
senior
executive
is
collectively
reported
in the financial report.
The
Remuneration
Policy
submitted
to
the
General
Assembly
for
information is made
available
on
the
corporate website. It
is
not
planned
to
disclose
the
remunerations given
to
each
executive
with
administrative
responsibilities
pursuant
to
the
Personal
Data
Protection
Law
No.
6698.

Corporate Governance Information Form

1. SHAREHOLDERS
1.1. Facilitation of Use of the Rights of the
Shareholders
Number of the investor conferences and meetings
organized by the meeting during the year
0
1.2. Right to Demand and Review Information
Number of special requests from auditors 0
Number of special requests from auditors that have
been accepted at the general meeting
0
1.3. General Meeting
Link of the PDP announcement, through which the
information requested under the scope of the
Principle No. 1.3.1 (a-d) is disclosed
https://www.kap.org.tr/tr/Bildirim/1004419
Whether the documents concerning the general
meeting are presented in English concurrently with
the Turkish version.
Documents concerning the general assembly
meeting have not been presented in English.
Links of the PDP announcements concerning the
businesses, for which there has been no majority of
the independent directors or no unanimity voting of
the attending directors, under the scope of the
Principle No. 1.3.9
No transaction has been carried out within the
scope of the Principle 1.3.9.
Links of the PDP announcements concerning the
related party businesses carried out under the
scope of the article 9 of the Corporate Governance
Communique (II-17.1)
There has been no such business under the
scope of the article 9.
Links of the PDP announcements concerning the
common and continuous businesses carried out
under the scope of the article 10 of the Corporate
Governance Communique (II-17.1)
There has been no such business under the
scope of the article 10.
Name of the section of the corporate website of the
company, where the policy concerning donations
and aids is made available
On
the
corporate
website
of
the
company
www.alkim.com:
Investors
/
Corporate
Governance / Donation and Aid Policy
Link of the PDP announcement, where the minutes
of the general meeting, during which the policy
concerning donations and aids had been approved,
are available
https://www.kap.org.tr/tr/Bildirim/1013495
Number of the article of the articles of association
that regulates the attendance of the stakeholders to
the general meeting
Not applicable.
Information on the stakeholders attending the
general meeting
The company's employees and representatives
are allowed to attend the General Assembly
Meeting.
1.4. Voting Rights
Whether there is any privilege concerning the voting
right
No
In case there is any privilege concerning the voting
right, then the privileged shareholders and, the
percentage of the shares they hold
Whereas, the shares of the Groups A, B, C and D
were entitled to 100 votes per share as per the
Articles of Association during the incorporation of
the Company, and the Turkish Commercial Code
No. 6102, the article 479(2) "Privileges regarding
the Voting Right" provides that each share may be
entitled to fifteen votes at maximum and, this
restriction would not be applied if it was provided
that there was a justified reason or due to such
reasons that require institutionalization.
Accordingly, a legal action initiated before the
Commercial Court of First Instance located where
the registered office is situated for establishing a
provisional injunction to be excluded from the said
restriction has been refused and, the decision
thereof has been approved before the Court of
Cassation. Therefore, the respective provisions of
the article 479 (2) of the Turkish Commercial Code
have applied to the Group "A", "B", "C" and "D"
shares. 1 vote cast for 1 share in any type of the
shares during the General Assembly Meetings of
the Company.
Percentage of the shareholding held by the majority
shareholder
17.00%
1.5. Minority Rights
Whether the minority rights have been expanded (in
terms of content or extent) in the articles of
association of the company
No
In case the minority rights have been expanded in
terms of the content and extent, please indicate the
number of the respective article of the articles of
association.
Not applicable.
1.6. Entitlement to Dividends
Name of the section of the corporate website, where
the dividend policy is made available
On
the
corporate
website
of
the
company
www.alkim.com:
Investors
/
Corporate
Governance / Dividend Policy
In case there is a proposal submitted by the board
of directors to the general meeting for the non
distribution of dividend, then please provide the text
of the minutes pertaining to the general meeting
agenda indicating the reasons thereof and how the
profit
not distributed is to be used
There has been no proposal submitted by the
board of directors for non-distribution of dividend.

In case of a proposal submitted by the board of directors to the general meeting for non-distribution of dividend, then please indicate the link of the PDP announcement, through which the respective minutes of the general meeting are disclosed Not applicable.

General Meetings

General Number of Percentage of Percentage Percentage Name of the Name of the Number
of
Number
of
Link
of
the
Meeting Date the the of the shares of the shares section of the section of the the persons who general
requests shareholders represented represented corporate corporate respective make notice meeting notice
for
additional
attendance to
the
general
in person by proxy website of the
company,
website,
where all the
article
or
paragraph of
to the board
of
directors
published
on
the PDP
disclosure meeting where
the
questions the
general
and
who
submitted minutes of the asked during meeting have
a
to
the
general the
general
minutes privileged
company meeting
also
meeting
and
concerning access to the
concernin indicating the the
answers
related shareholding
g
the
positive
and
thereto
are
parties information
general negative votes made (list
of
meeting
agendas
for
each
agenda
item
available insiders)
are
made
available
Investors
/
Investors
/
Corporate Corporate https://www.
Identity
/
Identity
/
kap.org.tr/tr/
25.04.2024 0 49.84% 31.97% 17.87% General General None 33 Bildirim/127
Meetings
/
Meetings
/
7118
General General
Meeting Meeting
Minutes Minutes

2. PUBLIC DISCLOSURES AND TRANSPARENCY

2.1. Corporate Website

Names of the sections of the corporate website,
where the information as requested by the
corporate governance principle no. 2.1.1 is made
available
On
the
corporate
website
of
the
company
www.alkim.com;
Investors
/
Corporate
Identity,
Corporate
Governance,
Financial
Reports
and
Periodic
Financial
Statements,
Material
Event
Disclosures, Share Certificates and Investor Info,
Press
Releases
and
Presentations,
Information
Society Services
Section of the corporate website, where the list of
the real persons who directly or indirectly hold
more than 5% of the shares is made available
On
the
corporate
website
of
the
company
www.alkim.com: Investors / Corporate Identity /
Shareholding Structure
Languages in which the corporate website is
prepared
Turkish -
English
2.2. Annual Report
Number of the pages or the names of the
sections of the annual report, where the
information
as
mentioned
corporate
governance
principle
no.
2.2.2
is
made
available
a) Number of the pages or the names of the
sections, where the information on the duties
carried out by the board members and executives
outside the company and the declarations of
independence of the board members are made
available
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors
b) Number of the pages or the names of the
sections,
where
the
information
on
the
committees formed within the board of directors
is made available
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors / Section
5.5 Committees Formed within the Board of Directors
c) Number of the pages or the names of the
sections, where the information on the number of
the meetings held within the year and, the
attendance
of
the
board
members
to
the
meetings is made available
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors / Section
5.4. Forms of the Meetings of the Board of Directors
ç) Number of the pages or the names of the
sections, where the information on legislation
changes that may significantly affect the business
operations of the company is made available
Annual Report / Section 9 Other Issues
d) Number of the pages or the names of the
sections, where the information on significant
legal cases initiated against the company and
possible consequences thereof is made available
Annual Report / Section 9 Other Issues

e) Number of the pages or the names of the sections, where the information on conflict of interests between the company and corporations, from which it receives services such as investment consultancy and rating, and the measures taken to avoid such conflicts, is made available Annual Report / Section 9 Other Issues

f) Number of the pages or the names of the sections,
where the information on the affiliates, in which the
direct
participation
rate
exceeds
5%,
is
made
available
Not applicable.
Number of the pages or the names of the sections,
where the information on the employees' social rights,
professional training and other company activities
with a consequence on the society and environment,
is made available
Annual
Report
/
Information
on
Corporate
Governance / Section 4 Stakeholders
3. STAKEHOLDERS
3.1. Company Policy Concerning Stakeholders
Name of the section of the corporate website,
where the compensation policy is made available
On
the
corporate
website
of
the
company
www.alkim.com: Investors / Corporate Governance
/ Code of Conducts
/ Compensation Policy
Number of the finalized court decisions against the
company due to breach of the employees' rights
0
Title
of
the
authorized
person
concerning
whistleblowing mechanism
Ali Murat Özçelik
Contact Information concerning how to access the
whistleblowing mechanism
[email protected]
3.2.
Supporting
the
Participation
of
the
Stakeholders
in
the
Management
of
the
Company
Name of the section of the corporate website,
where the internal regulations concerning the
participation of the employees to the management
are made available
Not applicable.
Managing
bodies,
where
the
employees
are
represented
Occupational Health and Safety Board
3.3. Company's Human Resources Policy
Role of the board of directors in the development
of a succession plan for the key management
positions
Decision making and planning
Name of the section of the corporate website,
where the human resources policy containing the
criteria on the equal opportunities and personnel
hiring or the summary of the respective articles of
the policy
On
the
corporate
website
of
the
company
www.alkim.com: Investors / Corporate Governance
/ Code of Conducts
Whether there is an employee stock ownership
program
There isn't an employee stock ownership program.
Name of the section of the corporate website,
where the human resources policy containing the
measures taken to prevent discrimination and
maltreatment or the summary of the respective
articles of the policy
On
the
corporate
website
of
the
company
www.alkim.com: Investors / Corporate Governance
/
Code
of
Conducts
/
Human
Resources
Development Policy
Number of the finalized court decisions against the
company due to the responsibility for occupational
accidents
0
3.5.
Codes
of
Conduct
and
Social
Responsibility
Name of the section of the corporate website,
where the code of conducts is made available
On
the
corporate
website
of
the
company
www.alkim.com: Investors / Corporate Governance
/ Code of Conducts
Name of the section of the corporate website,
where the corporate social responsibility report is
made available. In case there is no corporate social
responsibility report, then please indicate the
measures taken in environmental, social and
corporate management aspects
On
the
corporate
website
of
the
company
www.alkim.com;
Responsibilities/
Social
Responsibility -
Environmental Responsibility -
Occupational
Health
and
Safety
-
Ethical
Responsibility
Measures taken to fight all types of corruptions
including extortion and bribery
Attentive to public decency rules. All the employees
carry out their duties in a transparent, accountable
and responsible manner. Relationships between the
employees are based on the concept of mutual
respect, trust and cooperation. All the employees
assume their respective responsibilities in order to
protect and improve the respectful image of the
company and the name "ALKİM". The employees
may
not
use
the
confidential
and
non-public
information about the company for their own benefit
or the benefit of others On the corporate website of
the company www.alkim.com: Investors / Corporate
Governance / The Anti-Bribe and Anti-Corruption
Policy
4. BOARD OF DIRECTORS-I
4.2. The Board of Directors' Principles of
Operation
When the most recent performance assessment of
the board of directors was made
Not applicable.
Whether independent specialists are made use of
during the performance assessment of the board of
directors
No
Whether all the members of the board of directors
are released
Yes
Name of the board members, to whom authority is
transferred during the duty distribution and, the
content of such authorities
There has been no authority transfer.
Number of the reports submitted by the internal
control department to the audit board or other
respective committees
0
Number of the page or the name of the section of
the
annual
report,
where
an
assessment
concerning the efficiency of the internal control
system is made available
Annual Report / Section 5 Information on Sales and
Marketing Activities
Name of the chairman of the board of directors Mehmet Reha Kora
Name of the CEO/ General Manager Selçuk Denizligil
Link of the PDP announcement that indicates the
reason why the chairman of the board of directors
and CEO/General Manager is the same person
The chairman of the Board of Directors and the
General Manager are different persons.
Link of the PDP announcement indicating that the
losses that may be caused in the company by the
faults
of
the
board
members
during
the
performance of their duties are insured for an
amount that exceeds 25% of the company's capital
None.
Name of the section of the corporate website,
where the information on the diversity policy
intended to increase the percentage of the female
board members is made available
None.
Number and percentage of the female board
members
There are 3 female board members corresponding
to 33%.

Structure of the Board of Directors

Name/Surname
of
the
Board
Member
Executive
or
Non-Executive
Independent Director or
Nor
Date of
Appointment
to the Board
for the First
Time
Link of the PDP
Announcement
Indicating
Declaration
of
Independence
Whether the
Independent
Director Has
been
Assessed by
the
Nomination
Committee
Whether
There Are Any
Member Who
Lost Their
Independence
Whether
They Have
an
Experience
of at least 5
Years in
Auditing,
Accounting
and/or
Financing
Mehmet
Reha
Kora
Executive Not
an
Independent
Member
14.05.1991 Not assessed No Yes
Adem
Haluk
Kora
Non-executive Not
an
Independent
Member
14.05.1991 Not assessed No Yes
Arkın Kora Non-executive Not
an
Independent
Member
14.05.1991 Not assessed No Yes
Ferit Kora Non-executive Not
an
Independent
Member
14.05.1991 Not assessed No Yes
Tülay Kora Non-executive Not
an
Independent
Member
7.04.2006 Not assessed No Yes
Özay Kora Non-executive Not
an
Independent
Member
8.04.2015 Not assessed No Yes
Azade Başağa Non-executive Not
an
Independent
Member
31.01.2023 https://www.kap.org.
tr/tr/Bildirim/1263497
Assessed No Yes
Aydın Orhan Non-executive Independent Member 20.10.2023 https://www.kap.or
g.tr/tr/Bildirim/1263
497
Assessed No Yes
Özgür Mungan Non-executive Independent Member 25.04.2024 https://www.kap.or
g.tr/tr/Bildirim/1263
497
Assessed No Yes
4. BOARD OF DIRECTORS-II
4.4. Form of the Board Meetings
Number of the board meetings held physically
during the report period
16
Average ratio of the attendance to the board
meetings
80%
Whether there is an electronic platform to facilitate
the operations of the board of directors
No
As per the operation principles of the board of
directors, how many days before the meeting are
necessary
information
and
documents
are
submitted to the board members
All information and documents relating to the
agenda items to be discussed during the board
meeting are submitted to the board members for
review at least 10 calendar days before the meeting
by means of establishing an equal information flow.
Name of the section of the corporate website,
where the information on the internal regulations
identifying how the board meetings are to be held
is made available
There are internal regulations, through which how
the board meetings are to be held is identified,
which are made available on the corporate website.
There is no section within the Articles of Association
concerning this issue.
The upper limit as set forth under the policy that
restricts the freedom of the board members to take
offices outside the company
There is no restriction on taking office outside the
company due to the business experience of the
board members greatly contributing to the board of
directors.
4.5. Committees Formed within the Board of
Directors
Number of the page or the name of the section of
the annual report, where the information on the
board of directors committees is made available
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors / 5.5
Committees Formed within the Board of Directors
Link of the PDP announcement, through which the
committee operation principles are disclosed
https://www.kap.org.tr/tr/Bildirim/431899

Board of Directors Committees-I

Names of the Board of Directors
Committees
Name of the
Committee
Indicated as
"Other" in the
First Column
Name-Surname
of
the
Committee Members
Whether He/
She is the
Committee
Chairman
Whether He/ She is a Board Member
Corporate Governance Committee Aydın Orhan Yes Member of the Board of Directors
Corporate Governance Committee Adem Haluk Kora No Member of the Board of Directors
Corporate Governance Committee Ferit Kora No Member of the Board of Directors
Corporate Governance Committee Azade BAŞAĞA No Member of the Board of Directors
Corporate Governance Committee Özgür Öge No Non-Board Member
Audit Committee Özgür Mungan Yes Member of the Board of Directors
Audit Committee Aydın Orhan No Member of the Board of Directors
Audit Committee M. C. Nazım Barbarosoğlu No Member of the Board of Directors
Early Detection of Risk Committee Aydın Orhan Yes Member of the Board of Directors
Early Detection of Risk Committee Tülay Kora No Member of the Board of Directors
4. BOARD OF DIRECTORS-III
4.5. Committees Formed within the Board of
Directors-II
Please indicate the section of the annual report or
the corporate website, where the information on the
activities of the audit committee is made available
(page number or name of the section)
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors / 5.5
Committees Formed within the Board of Directors
Please indicate the section of the annual report or
the corporate website where the information on the
activities of the corporate governance committee is
made available (page number or name of the
section)
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors / 5.5
Committees Formed within the Board of Directors
Please indicate the section of the annual report or
the corporate website where the information on the
activities of the nomination committee is made
available (page number or name of the section)
Not applicable.
Please indicate the section of the annual report or
the corporate website where the information on the
activities of the committee of early detection of risk
is made available (page number or name of the
section)
Annual
Report
/
Information
on
Corporate
Governance / Section 5 Board of Directors / 5.5
Committees Formed within the Board of Directors
Please indicate the section of the annual report or
the corporate website where the information on the
activities of the remuneration committee is made
available (page number or name of the section)
Not applicable.
4.6. Financial Rights Granted to the Board
Members and Executives with Administrative
Responsibilities
Number of the page or the name of the section of
the annual report, where the information on the
operational and financial performance targets and
whether
these
targets
are
attained
is
made
available
Annual Report / Section 6 Financial Position
Name of the section of the corporate website,
where
the
remuneration
policy
concerning
executive and non-executive directors is made
available
On
the
corporate
website
of
the
company
www.alkim.com: Investors / Corporate Governance
/ Remuneration Policy
Number of the page or the name of the section of
the annual report, where the remunerations and
other
benefits
to
the
board
members
and
executives with administrative responsibilities are
indicated
Annual Report / Section 2 Financial Benefits
Provided to the Members of the Board of Directors
and Senior Executives

Board of Directors Committees-II

Names of the Board of
Directors Committees
Name of the
Committee Indicated
as "Other" in the
First Column
Percentage of Non
Executive Directors
Percentage of the
Independent
Committee
Members
Number of Physical
Meetings Held by
the Committee
Number of the
Reports Submitted
to the Board of
Directors about the
Committee Activities
Audit Committee 100% 100% 5 5
Corporate
Governance
Committee
83.33% 50% 3 3
Early Detection of Risk
Committee
100% 50% 6 6

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