ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş.

Audit Report / Information • Mar 15, 2024

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY

CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES FOR THE YEAR ENDED DECEMBER 31, 2023 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT (ORIGINALLY ISSUED IN TURKISH)

CONVENIENCE TRANSLATION INTO ENGLISH OF INDEPENDENT AUDITOR'S REPORT ORIGINALLY ISSUED IN TURKISH

INDEPENDENT AUDITOR'S REPORT

To the General Assembly of Anadolu Isuzu Otomotiv Sanayi ve Ticaret A.Ş.

A. Audit of the consolidated financial statements

1. Our opinion

We have audited the accompanying consolidated financial statements of Anadolu Isuzu Otomotiv Sanayi ve Ticaret A.Ş. (the "Company") and its subsidiaries (collectively referred to as the "Group") which comprise the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements comprising a summary of significant accounting policies.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2023, and its financial performance and its cash flows for the year then ended in accordance with Turkish Financial Reporting Standards ("TFRS").

2. Basis for opinion

Our audit was conducted in accordance with the Standards on Independent Auditing (the "SIA") that are part of Turkish Standards on Auditing issued by the Public Oversight Accounting and Auditing Standards Authority (the "POA"). Our responsibilities under these standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We hereby declare that we are independent of the Group in accordance with the Ethical Rules for Independent Auditors (including Independence Standards) (the "Ethical Rules") and the ethical requirements regarding independent audit in regulations issued by POA that are relevant to our audit of the financial statements. We have also fulfilled our other ethical responsibilities in accordance with the Ethical Rules and regulations. We believe that the audit evidence we have obtained during the independent audit provides a sufficient and appropriate basis for our opinion.

3. Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. Key audit matters were addressed in the context of our independent audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matters	How the key audit matter was addressed in
	the audit
Application of TAS 29 - Financial Reporting
in Hyperinflationary Economies
TAS 29 "Financial reporting in hyperinflationary	- We obtained an updated understanding of the
economies" is applicable for the Group as disclosed	Group's processes and accounting policies.
in Note 2.1.3.
	- We gained an understanding and evaluated the
TAS 29 requires financial statements to be restated	relevant controls designed and implemented by
into the current purchasing power at the end of the	management resulting from implementation of
reporting period. Therefore, transactions in 2023	TAS 29,
and non-monetary balances at the end of the period	- Obtaining whether the segregation of monetary
with prior year statements with comparative	and non-monetary items made by the
information were restated to reflect a price index	management is in accordance with
that is current at the balance sheet date as of 31	TAS 29,
December 2023. The implementation of TAS 29	- We obtained detailed listings of non-monetary
leads to a change in several of the Group's control	items, and tested the original cost and dates of
activities pervasively related to financial reporting.	acquisition with supporting documentation,
The impact of TAS 29 is reliant upon a number of	- Verifying the general price index rates used in
key judgements such as the relevant line items in the	the calculations with the index coefficients
inventories were restated on an average basis	obtained from the Consumer Price Index in
depending on the level of fluctuation of the	Turkey published by the Turkish Statistical
underlying transactions and rate of inflation. The	Institute,
preparation of financial statements using a current	- We evaluated the reasonableness of judgements
purchasing power approach requires a complex	used by management by comparing them with
series of procedures and reconciliations to ensure	recognized practices and applying our industry
accurate results.	knowledge and experience. We also checked if
	the judgements were used consistently in all
The application of IAS 29 was identified as a key	periods,
audit matter due to judgement applied in the	- The methodology and price index rates used
restatement, high degree of complexity in calculation	were tested to ensure that the indexation of non
and the risk of the data used in the restatement	monetary items, statements of comprehensive
being incomplete or inaccurate.	income, changes in equity and cash flow
	statements were prepared in accordance with
	TAS 29.

Key Audit Matters	How the key audit matter was addressed in the audit
Revenue recognition
In the consolidated statement of profit or loss and other comprehensive for the –year ended 31 December 2023, revenues amounting to 15.174.742.066 TRY were recognized by the Group. The Group's revenues mainly consist of the sales of vehicle and spare part. Revenue is measured by the amount remaining after deducting discounts and returns from the amount received or to be received in exchange for the goods or services provided.	During our audit, the following audit procedures were performed for the recognition of revenue: - Evaluated the understanding of the controls and processes the Group applied in recording revenue and the appropriateness of its accounting policies in terms of TFRS - Performed the revenue testing using the
Revenue is one of the most significant indicators in the performance evaluation of the Group. Revenue has been selected as a key audit matter because it is of great importance in terms of evaluating the results of the strategies implemented during the year and monitoring performance and it has significant, decisive impact on more than one financial statement item. Disclosures regarding the Group's revenue-related accounting policies and amounts are included in Notes 2 and 20 of the attached financial statements.	sampling method and supporting documents such as invoices, sales orders, contracts and dispatch notes - Evaluated performance obligations by comparing with sales contracts - Tested the revenue items belong to period
	ending and the beginning of the following period with the sampling method regarding the cut-off of the revenue, - Tested the completeness and accuracy of the sales discount using the sampling method
	- Tested the balances of trade receivables using the sampling method by sending confirmation letters - Evaluated the accuracy and adequacy of the revenue related disclosures included in footnotes 2 and 20 of the attached financial statements in terms of TFRS.

4. Responsibilities of management and those charged with governance for the consolidated financial statements

The Group management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

5. Auditor's responsibilities for the audit of the consolidated financial statements

Responsibilities of independent auditors in an independent audit are as follows:

Our aim is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an independent auditor's report that includes our opinion. Reasonable assurance expressed as a result of an independent audit conducted in accordance with SIA is a high level of assurance but does not guarantee that a material misstatement will always be detected. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an independent audit conducted in accordance with SIA, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• · Assess the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• · Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our independent auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• · Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• · Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence. We also communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

B. Other responsibilities arising from regulatory requirements

• 1. No matter has come to our attention that is significant according to subparagraph 4 of Article 402 of Turkish Commercial Code ("TCC") No. 6102 and that causes us to believe that the Company's bookkeeping activities concerning the period from 1 January to 31 December 2023 period are not in compliance with the TCC and provisions of the Company's articles of association related to financial reporting.
• 1. In accordance with subparagraph 4 of Article 402 of the TCC, the Board of Directors submitted the necessary explanations to us and provided the documents required within the context of our audit.
• 1. In accordance with subparagraph 4 of Article 398 of the TCC, the auditor's report on the early risk identification system and committee was submitted to the Company's Board of Directors on 15 March 2024.

PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

Salim Alyanak, SMMM Independent Auditor

Istanbul, 15 March 2024

INDEX PAGE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 1-2
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 3
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY4
CONSOLIDATED STATEMENT OF CASH FLOW5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS6-52

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 1 AUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

	Notes	Audited Current Period 31 December 2023	Audited Prior Period 31 December 2022
ASSETS Current Assets		11.130.397.056	8.371.412.196
Cash and Cash Equivalents	4	3.664.900.162	2.432.548.278
Financial Investments	5	-	414.687.325
Trade Receivables		2.944.760.595	1.805.832.358
Trade Receivables from Related Parties	7-28	103.323.977	189.449.510
Trade Receivables from Third Parties	7	2.841.436.618	1.616.382.848
Other Receivables		101.894.844	142.495.814
Other Receivables from Third Parties		101.894.844	142.495.814
Inventories	10	3.672.642.194	2.665.408.912
Derivative Instruments	9	86.807.663	7.975.949
Prepaid Expenses	18	600.238.892	722.625.409
Current Tax Assets		-	937.628
Other Current Assets		59.152.706	178.900.523
Non-Current Assets		7.969.104.615	6.305.137.828
Financial Investments	5	14.673.988	1.379.809
Other Receivables		3.644	8.061
Other Receivables from Third Parties		3.644	8.061
Property, Plant and Equipment	11	6.423.012.758	5.205.778.945
Right of Use Assets	13	82.690.076	32.101.513
Intangible Assets		1.447.734.594	1.060.162.513
Goodwill	14	106.248.200	-
Other Intangible Assets	12	1.341.486.394	1.060.162.513
Prepaid Expenses	18	989.555	5.706.987
TOTAL ASSETS		19.099.501.671	14.676.550.024

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 2 AUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

		Audited	Audited
		Current Period	Prior Period
	Notes	31 December 2023	31 December 2022
LIABILITIES
Current Liabilities		9.245.405.729	7.014.873.750
Current Borrowings		3.780.500.944	1.764.898.767
Current Borrowings from Third Parties	6	3.780.500.944	1.764.898.767
Bank Loans	6	3.780.500.944	1.764.898.767
Current Portions of Non-Current Borrowings		700.008.018	879.497.228
Current Portions of Non-Current Borrowings from
Third Parties	6	700.008.018	879.497.228
Bank Loans	6	653.190.478	865.396.863
Lease Liabilities	6	46.817.540	14.100.365
Trade Payables		3.727.714.393	3.623.701.184
Trade Payables to Related Parties	7-28	2.083.903.100	1.926.594.898
Trade Payables to Third Parties	7	1.643.811.293	1.697.106.286
Other Payables		40.819.033	18.859.487
Other Payables to Related Parties	28	9.109	15.007
Other Payables to Third Parties		40.809.924	18.844.480
Derivative Instruments	9	33.179.796	66.353.178
Employee Benefits Obligations		96.775.043	63.565.507
Liabilities Arising from Contracts with Customers	18	18.041.558	12.180.404
Deferred Income	18	498.488.522	345.773.766
Current Period Profit Tax Liability		264.340	-
Current Provisions		349.614.082	240.044.229
Current Provisions for Employee Benefits	17	118.413.369	8.956.246
Other Current Provisions	16	231.200.713	231.087.983
Non-Current Liabilities		1.599.969.844	1.422.154.066
Non-Current Borrowings		789.418.129	680.049.525
Non-Current Borrowings from Third Parties		789.418.129	680.049.525
Bank Loans	6	501.729.296	663.463.129
Lease Liabilities	6	287.688.833	16.586.396
Employee Benefits Obligations		25.482.401	-
Liabilities Arising from Contracts with Customers	18	193.488.305	172.049.343
Deferred Income	18	71.573.252	4.064.844
Non-Current Provisions for Employee Benefits	17	47.809.516	207.234.068
Deferred Tax Liability	26	472.198.241	358.756.286
EQUITY		8.254.126.098	6.239.522.208
Equity Attributable to Equity Holders of the Parent	19	8.254.126.098	6.239.522.208
Issued Capital		252.000.000	84.000.000
Adjustments to Share Capital		1.761.199.852	1.761.199.852
Revaluation and Remeasurement Earnings/Losses that will not be
Reclassified in Profit or Loss		1.906.080.800	1.219.644.625
Gain on Revaluation of Property, Plant and Equipment		1.964.884.654	1.290.185.946
Gain/Loss on Remeasurement of Defined Benefit Plans		(58.803.854)	(70.541.321)
Restricted Reserves Appropriated from Profits		318.248.329	274.542.226
Retained Earnings		2.402.379.743	2.115.827.522
Current Period Net Profit		1.614.217.374	784.307.983
TOTAL LIABILITIES		19.099.501.671	14.676.550.024

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 3 AUDITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODS ENDED 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

	Notes	Audited 1 January Current Period 31 December 2023	Audited 1 January Prior Period 31 December 2022
PROFIT
Revenue	20	15.174.742.066	11.686.265.335
Cost of Sales (-)	20	(12.499.506.711)	(10.345.205.482)
GROSS PROFIT		2.675.235.355	1.341.059.853
General Administrative Expenses (-)	21	(554.722.904)	(340.343.593)
Marketing Expenses (-)	21	(946.761.568)	(623.098.353)
Research and Development Expenses (-)	21	(115.988.615)	(45.337.924)
Other Income from Operating Activities	23	1.091.934.379	220.074.427
Other Expenses from Operating Activities (-)	23	(1.333.697.053)	(599.333.216)
PROFIT FROM OPERATING ACTIVITIES		815.999.594	(46.978.806)
Income from Investing Activities	24	47.288.873	33.468.115
PROFIT BEFORE FINANCE EXPENSE		863.288.467	(13.510.691)
Finance Income	25	1.247.947.390	873.166.604
Finance Expenses (-)	25	(2.052.515.048)	(1.248.071.171)
Monetary Gain/(Loss)		1.646.234.191	1.123.929.268
PROFIT FROM CONTINUING OPERATIONS BEFORE TAX		1.704.955.000	735.514.010
Tax Income From Continuing Operations		(90.737.626)	48.793.973
Current Tax Expense	26	(73.041.163)	(2.327.562)
Deferred Tax Income	26	(17.696.463)	51.121.535
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS		1.614.217.374	784.307.983
PROFIT FOR THE YEAR	27	1.614.217.374	784.307.983
		1.614.217.374	784.307.983
Profit for the Year Attributable to:
Owners of The Parent		1.614.217.374	784.307.983
Earnings Per 100 Share from Continuing Operations	27	6,4056	9,3370
OTHER COMPREHENSIVE INCOME		1.614.217.374	784.307.983
Items That Will Not Be Reclassified to Profit or Loss
Gains on on Revaluation of Property, Plant and Equipment		766.531.712	1.463.823.133
Gains (Losses) on Remeasurement of Defined Benefit Plans		15.649.955	(88.176.649)
Losses on on Revaluation of Property, Plant and Equipment,		(91.833.003)
Tax Effect			(173.637.187)
Gains (Losses) on Remeasurement of Defined Benefit Plans, Tax Effect		(3.912.489)	17.635.330
OTHER COMPREHENSIVE INCOME		686.436.175	1.219.644.627
TOTAL COMPREHENSIVE INCOME		2.300.653.549	2.003.952.610
Owners of the Parent		2.300.653.549	2.003.952.610

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 4 AUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS ENDED 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

					Gain / Loss on Revaluation and Remeasurement That Will Not Be Reclassified to Profit or Loss Retained Earnings
Prior Period	Notes	Issued Capital	Adjustments to Share Capital	Gain on Revaluation of Property, Plant and Equipment	Gain/Loss on Remeasurement of Defined Benefit Plans	Restricted Reserves Appropriated from Profits	Accumulated Profit	Current Period Net Profit	Total Equity of the Parent	Non Controlling Interest	Total Equity
Balances as of 1 January
2022	19	84.000.000	1.761.199.852	-	-	268.838.020	1.606.300.901	572.272.883	4.292.611.656	-	4.292.611.656
Total Comprehensive Income		-	-	1.290.185.945	(70.541.320)	-	-	784.307.983	2.003.952.608	-	2.003.952.608
Profit for the Period Other Comprehensive		-	-	-	-	-	-	784.307.983	784.307.983	-	784.307.983
Income/ (Loss)		-	-	1.290.185.945	(70.541.320)	-	-	-	1.219.644.625	-	1.219.644.625
Dividend		-		-	-	-	(57.042.056)	-	(57.042.056)		(57.042.056)
Transfers		-	-	-	-	5.704.206	566.568.677	(572.272.883)	-	-	-
Balances as of 31 December 2022	19	84.000.000	1.761.199.852	1.290.185.945	(70.541.320)	274.542.226	2.115.827.522	784.307.983	6.239.522.208	-	6.239.522.208
Current Period
Balances as of 1 January
2023	19	84.000.000	1.761.199.852	1.290.185.945	(70.541.320)	274.542.226	2.115.827.522	784.307.983	6.239.522.208	-	6.239.522.208
Total Comprehensive Income		-	-	674.698.709	11.737.466	-	-	1.614.217.374	2.300.653.549	-	2.300.653.549
Profit for the Period Other Comprehensive		-	-	-	-	-	-	1.614.217.374	1.614.217.374	-	1.614.217.374
Income		-	-	674.698.709	11.737.466	-	-	-	686.436.175	-	686.436.175
Dividend		-	-	-	-	-	(286.049.659)		(286.049.659)	-	(286.049.659)
Transfers		168.000.000	-	-	-	43.706.103	572.601.880	(784.307.983)	-	-	-
Balances as of 31 December 2023	19	252.000.000	1.761.199.852	1.964.884.654	(58.803.854)	318.248.329	2.402.379.743	1.614.217.374	8.254.126.098	-	8.254.126.098

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 5 AUDITED CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE PERIODS ENDED 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

	Notes	Audited Current Period 31 December 2023	Audited Prior Period 31 December 2022
Cash Flows from Operating Activities		(89.531.939)	780.182.019
Current Period Net Profit	27	1.614.217.374	784.307.983
Adjustments to Reconcile Profit for The Year		260.658.781	684.086.120
Adjustments Related to Depreciation and Amortization Expenses	11-12-13	380.613.722	310.657.396
Adjustments Related to Provision for Employee Benefits (Released)	17	39.842.046	80.931.291
Adjustments Related to Tax (Income) Expense		90.737.626	(48.793.973)
Adjustments Related to Provisions for Litigations	16	27.153.320	46.453.546
Provision for Impairment of Receivables	7	(115.133)	-
Adjustments Related to Interest Income	25	(472.137.864)	(112.644.687)
Adjustments Related to Interest Expenses	25	835.189.958	372.498.855
Adjustments Related to Unrealized Currency
Translation Differences of Financial Debts		356.723.678	190.913.343
Adjustments Related to Fair Value Losses (Gains)		(86.270.568)	303.084.027
Other Adjustments to Profit/(Loss) Reconciliation		136.886.879	58.167.284
Adjustments Related to Other Provisions (Released)	16	222.577.839	170.424.732
Adjustments Related to Loss (Gain) on Disposal of Property, Plant and
Equipment		(41.628.397)	(260.931)
Monetary Gain/(Loss) Changes in Working Capital		(1.228.914.324) (1.587.898.119)	(687.344.764) (531.003.915)
Adjustments Related to Decrease (Increase) in Trade Receivables	7	(1.169.697.840)	241.525.830
Adjustments Related to Decrease (Increase) in Inventories	10	(1.007.233.282)	(1.167.213.196)
Adjustments Related to Decrease (Increase) in Other Receivables from
Operations		283.672.931	(663.533.513)
Adjustments Related to Increase (Decrease) in Trade Payables	7	142.323.996	890.474.240
Adjustments Related to Increase (Decrease) in Other Payables from
Operations		306.006.505	340.077.154
Adjustments Related to Increase (Decrease) in Other Working Capital
from Operations		(142.970.429)	(172.334.431)
Cash Generated from Operations		286.978.036	937.390.187
Income Tax Returns (Paid) Payments Related to Other Provisions	16	(72.776.823) (176.553.830)	(3.265.190) (123.842.808)
Payments to Provision of Employee Benefits	17	(127.179.322)	(30.100.170)
Cash Flows from Investing Activities		(468.457.292)	(982.315.841)
Proceeds from Sale of Property, Plant and Equipment	11	62.605.194	687.616
Payments for Purchase of Property, Plant and Equipment	11	(321.190.738)	(244.537.891)
Payments for Purchase of İntangible Assets	12	(518.652.386)	(338.176.306)
Cash outflows for the acquisition of interests in other entities and funds		(106.248.200)	-
Proceeds from Other Activities		415.028.838	(400.289.260)
Cash Flows from Financing Activities		1.726.793.895	893.379.462
Dividend Payments		(286.049.660)	(57.042.055)
Interest Received		373.361.694	102.962.332
Interest Paid	6	(581.052.416)	(311.034.200)
Proceeds from Borrowings	6	9.618.973.730	4.340.898.855
Cash Outflows from Repayment of Borrowings	6	(6.375.806.644)	(2.510.942.509)
Cash Outflows Related to Debt Payments arising from Lease Agreements	6	(40.574.171)	(9.221.168)
Nakit ve Nakit benzerlerindeki Parasal Kayıp/Kazanç etkisi		(982.058.638)	(662.241.793)
Net Increase (Decrease) in Cash and Cash Equivalents		1.168.804.664	691.245.640
Cash and Cash Equivalents at The Beginning of The Year
Cash and Cash Equivalents at The End of The Year		2.422.795.280	1.731.549.640
	4	3.591.599.944	2.422.795.280

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

GENEL / PUBLIC

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 6 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 1 - ORGANIZATION AND OPERATIONS OF THE GROUP

Anadolu Isuzu Otomotiv Sanayi ve Ticaret Anonim Şirketi (the "Company") was established in 1980. Principal activities of the Company are comprised mainly of manufacturing, assembling, import and sales of commercial vehicles and also procure and sales of related spare parts regarding to after sales service. The Company is registered to Capital Markets Board of Turkey and the percentage of 15 of the Company's shares have been traded on Borsa Istanbul A.Ş. since 1997.

The Company carries out its operations as a partnership formed by Isuzu Motors Ltd. Itochu Corporation and Anadolu Group Companies. The Company runs its manufacturing operations in a factory which is established in Çayırova/Kocaeli. The average number of employees as of 31 December 2023 is 1083 (31 December 2022:970).

The Company has been registered in Turkey, and the address of the Company is Fatih Sultan Mehmet Mahallesi Balkan Caddesi No: 58 Buyaka E Blok Tepeüstü Ümraniye, İstanbul.

The company is controlled by AG Anadolu Grubu Holding A.Ş., the parent company. AG Anadolu Grubu Holding A.Ş. is controlled by AG Sınai Yatırım ve Yönetim A.Ş. and AG Sınai Yatırım ve Yönetim A.Ş. is a management company, which is ultimately managed by the Özilhan Family and Süleyman Kamil Yazıcı Family in accordance with equal representation and equal management principle and manages AG Anadolu Grubu Holding A.Ş.'s companies.

As of 31 December 2023 and 31 December 2022, details about the company's subsidiary, which is subject to consolidation, is below:

			31 December 2023	31 December 2022
Company Name	Principal Activity	Capital	Participation Rate	Participation Rate
			(%)	(%)
Ant Sınai ve Ticari Ürünleri Pazarlama A.Ş.	Trade of spare parts	716.000	100	100

Approval of Financial Statements

Consolidated financial statements for the period 1 January – 31 December 2023 approved by the Board of Directors on 15 March 2024 and signed by Independent Member of the Board of Director Ahmet Murat SELEK (Audit Committee Chairman) and Orhan ÖZER (Audit Committee Member), General Manager Yusuf Tuğrul ARIKAN and Finance Director Neşet Fatih VURAL.

The Company and its subsidiary will be referred as (the "Group") in the condensed consolidated financial statements and notes to the consolidated financial statements.

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of Presentation

2.1.1 Statement of Compliance TAS

The enclosed consolidated financial statements have been prepared in line with Capital Markets Board ("CMB"), Communiqué Serial: II, No. 14.1 on "Principles on Financial Reporting in Capital Market", promulgated in Official Gazette No. 28676 dated 13 June 2013. Pursuant to Article 5 of the Communiqué, Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS/TFRS") enforced by Public Oversight Accounting and Auditing Standards Authority ("POA"), and their relevant appendices and interpretations ("TAS/TFRS") have been taken as basic.

In addition, the financial statements and disclosures are presented in accordance with the publication by CMB dated 15 October 2022.

The Company (and its Subsidiary registered in Turkey) takes the Turkish Commercial Code ("TCC"), tax legislation and Uniform Chart of Accounts introduced by Turkish Ministry of Finance as basic for book keeping and preparation of the statutory financial statements. Consolidated financial statements have been prepared in Turkish Lira based on the historical costs, as well as the financial assets and liabilities presented in their fair values. Historical costs are generally based on the fair value of the amount paid for the assets. Consolidated financial statements have been arranged by applying the required adjustments and classifications to the statutory records prepared on historical cost basis in order to provide accurate presentation in line with TAS/TFRS. The most important adjustment records are the application of consolidation accounting, deferred tax calculation, calculation of employee termination benefit and other provisions.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 7 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 -BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

2.1.1 Statement of Compliance TAS (cont'd)

Currency Used

The financial statements of the Group's each entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). The results and financial position of the each entity are expressed in TRY, which is the functional currency of the Company and the currency used for presenting consolidated financial statements.

2.1.2 Consolidation principles

Subsidiaries

Subsidiaries, including structured entities, are companies in the Group's control. The Group's control is provides for exposure to variable returns from these companies, being eligible for these benefits, and the power to direct them. Subsidiaries are consolidated using the full consolidation method starting from the date when the control is transferred to the Group. They are excluded from the scope of consolidation as of the date when the control is lost.

The purchasing method is used in accounting for group business combinations. The cost of acquisition includes the fair value of the assets transferred at the acquisition date, the liabilities incurred by the former owner of the company, and costs, consisting of equity instruments issued by the Group. The acquisition cost includes the fair value of the assets and liabilities transferred as a result of the contingent acquisition agreement.

The identifiable assets, liabilities, and contingent liabilities taken over during a business combination are measured at their fair value on the acquisition date. For each purchase, non-controlling shares of the acquired company are recognised either at their fair value or according to their proportional share in the net assets of the acquired company.

The table below sets out the subsidiaries and their ownership interests as of 31 December 2023 and 31 December 2022.

Proportion of ownership interest (%)
31 December 2023 31 December 2022
100

2.1.3 Financial Reporting in Hyperinflationary Economy

With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on November 23, 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after December 31, 2023. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy.

According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of December 31, 2022, on the purchasing power basis as of December 31, 2023.

Pursuant to the decision of the Capital Markets Board (SPK) dated December 28, 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29 starting from their annual financial reports for the periods ending on December 31, 2023.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 8 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 -BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.1 Basis of presentation (cont'd)

2.1.3 Financial Reporting in Hyperinflationary Economy (cont'd)

The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute (TÜİK). As of December 31, 2023, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

		Conversion	Three-year
Year End	Index	Factor	Inflation Rate
31 December 2023	1.859.38	1.00000	268%
31 December 2022	1.128.45	1.64773	156%
31 December 2021	686.95	2.70672	74%

The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows:

• Current period consolidated financial statements prepared in TRY are expressed in terms of the purchasing power at the balance sheet date, and amounts from previous reporting periods are also adjusted and expressed in terms of the purchasing power at the end of the reporting period.

• Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed their recoverable amount or net realizable value, the provisions of IAS 36 "Impairment of Assets" and IAS 2 "Inventories" are applied, respectively.

• Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.

• All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements.

• The impact of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary gain/(loss) account in the consolidated income statement.

2.1.4 Offsetting

The financial assets and liabilities in the consolidated financial statements are shown at their net value when a legal system that allows clarification of relevant values and there is an intention to demonstrate the values clearly or the realization of the asset and the settlement of the debt are at the same time.

2.1.5 Comparatives and Adjustment of Prior Periods' Financial Statements

The Group's consolidated financial statements for the current period are prepared in comparison with the previous periods in order to be able to determine the financial position and performance trends. The comparative information is reclassified when necessary with the aim of ensuring consistency with the presentation of the current period's consolidated financial statements and significant differences are disclosed.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 9 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

2.1.6 Amendments in Standards and Interpretations

a) Standards, amendments, and interpretations applicable as of 31 December 2023

Narrow scope amendments to IAS 1, Practice Statement 2 and IAS 8; effective from annual periods beginning on or after 1 January 2023. The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.

Amendment to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction; effective from annual periods beginning on or after 1 January 2023. These amendments require companies to recognise deferred tax on transactions that, on initial recognition give rise to equal amounts of taxable and deductible temporary differences.

IFRS 17, 'Insurance Contracts'; effective from annual periods beginning on or after 1 January 2023. This standard replaces IFRS 4, which permited a wide variety of practices in accounting for insurance contracts. IFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts.

Amendment to IAS 12 - International tax reform ; The temporary exception is effective for December 2023 year ends and the disclosure requirements are effective for accounting periods beginning on or after 1 January 2023, with early application permitted. These amendments give companies temporary relief from accounting for deferred taxes arising from the Minimum Tax Implementation Handbook international tax reform. The amendments also introduce targeted disclosure requirements for affected companies.

b) Standards, amendments, and interpretations that are issued but not effective as of 31 December 2023:

Amendment to IAS 1 – Non-current liabilities with covenants; effective from annual periods beginning on or after 1 January 2024. These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions.

Amendment to IFRS 16 – Leases on sale and leaseback; effective from annual periods beginning on or after 1 January 2024. These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.

Amendments to IAS 7 and IFRS 7 on Supplier finance arrangements; effective from annual periods beginning on or after 1 January 2024. These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis.

Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.

IFRS S1, 'General requirements for disclosure of sustainability-related financial information; effective from annual periods beginning on or after 1 January 2024. This standard includes the core framework for the disclosure of material information about sustainability-related risks and opportunities across an entity's value chain.

IFRS S2, 'Climate-related disclosures'; effective from annual periods beginning on or after 1 January 2024. This is the first thematic standard issued that sets out requirements for entities to disclose information about climate-related risks and opportunities.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 10 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.2 Effect of Revised Accounting Policies

Accounting policy changes resulting from the first application of a new standard, if any, are applied retrospectively or prospectively in accordance with the transition terms. Changes without any transition requirement, optional significant changes in accounting policies or significant accounting errors are applied retrospectively and the previous period's consolidated financial statements are restated. Changes in accounting estimates are applied in the current period if the change is related to only one period, and if they are related to future periods, they are applied both in the period in which the change is made and prospectively.

2.3 Summary of Significant Accounting Policies

2.3.1 Cash and cash equivalents

Cash and cash equivalents are carried in the balance sheet at cost. Cash and cash equivalents include cash on hand, deposits at banks and highly liquid short-term investments, with maturity periods of less than three months, which has insignificant risk of change in fair value.

2.3.2 Trade receivables and provision for allowance

Trade receivables as a result of providing goods or services by the Group directly to a debtor are carried at amortised cost using original effective interest rates.

Provision for impairment of trade receivables is established if there is objective evidence that the Group will not be able to collect all amounts due. The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of all cash flows, including amounts recoverable from guarantees and collateral, discounted based on the original effective interest rate of the originated receivables at inception.

If the impairment amount decreases due to an event occurring after the write-down, the release of the provision is credited to other income in the current period.

The Group collects most of the receivables from domestic vehicles sales through the "Direct Debit System" (DDS). Within this system which is also named as Direct Collection System; the contracted banks warrant the collection of the receivables within the limits granted to the dealers. Trade receivables are transferred by the contracted banks to the Group's bank accounts at the due dates.

2.3.3 Inventories

Inventories are stated at the lower of cost or net realizable value. The inventories of the Group mainly composed of trucks, small trucks, midi buses, pickups and spare parts which belong to those vehicles. The cost of inventories is determined on the monthly weighted moving average method. Cost of the finished and work in process good include raw materials, direct labour cost, related general production expenses and exclude the cost of borrowing. Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. The allocation of fixed production overheads to the costs of conversion is based on the normal capacity of the production facilities. Idle time expenses arising from the ceases in production other than planned in the factory's annual production plan are not associated with inventories and are recognised as cost of finished goods.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 11 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.4 Property, plant and equipment and related depreciation

While property, plant and equipment are presented on financial statement according to the adjusted values based on the effects of inflation as of 31 December 2004 for the assets acquired before 1 January 2005, they are presented on the financial statements by deducting accumulated depreciation from cost values for the assets acquired after 2005. As of 31 December 2017, lands and buildings have been monitored by revaluation method. Depreciation is calculated using the straight-line method based on their economic lives. The following rates, determined in accordance with the economic lives of the fixed assets, are used in calculation of depreciation:

Type	Useful Lives
Land Improvements	5-15
Buildings	2-50
Machinery and Equipment	10-15
Motor Vehicles	4-10
Furnitures and Fixtures	5-10
Other Property, Plant and Equipment	10-20

Revaluation Method

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the consolidated statement of financial position at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period.

Any revaluation increase arising on the revaluation of such land and buildings is recognized in other comprehensive income and accumulated in equity, except to the extent that it reverses a revaluation decrease for the same asset previously recognized in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of such land and buildings is recognized in profit or loss to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss, Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Group's accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Depreciation on revalued buildings is charged to profit or loss. On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings.

Cost Method

Property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment losses.Freehold land is not depreciated. Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Except for land and investments in progress, cost or valued amounts of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Expected useful life, residual value and depreciation method are reviewed every year for the possible effects of the changes in estimates and accounted for prospectively if there is a change in the estimates.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term and their useful lives.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 12 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd) 2.3 Summary of Significant Accounting Policies (cont'd)

2.3.4 Property, plant and equipment and related depreciation (cont'd)

Cost Method (cont'd)

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

2.3.5 Intangible assets and related amortisation

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Intangible assets are comprised of software programme rights, brand and patent rights and development expenses.

Type	Useful Lives
Rights	5-15
Development Expenses	5
Other Intangible Assets	3-15

2.3.6 Impairment of assets

All assets are reviewed for impairment losses including property, plant and equipment and intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If such an indication exists, the recoverable amount of the asset is presumed. The recoverable amount is presumed in each year-end for unusable intangible assets. An impairment loss is recognised for the amount by which the carrying amount of the asset or a cashgenerating unit related to the asset exceeds its recoverable amount, which is the higher of an asset's net selling price and value in use. Impairment losses are recognised in the statement of income. Impairment losses on assets can be reversed, to the extent of previously recorded impairment losses, in cases where increases in the recoverable value of the asset can be associated with events that occur subsequent to the period when the impairment loss was recorded.

2.3.7 Bank loans and borrowing costs

Borrowings are recognised initially at the proceeds received, net of transaction costs incurred. In subsequent periods, borrowings are stated at amortised cost using the effective yield method; any difference between proceeds (net of transaction costs) and the redemption value is recognised in the statement of income as financing cost over the period of the borrowings. When it comes to the assets which take long time to get ready to usage and sales, borrowing costs related to production or construction are integrated to the cost of the asset.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 13 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.8 Taxes on income

Tax liability on current period's profit or loss includes current period tax and deferred tax. Current year tax liability consists of tax liability on the taxable income calculated according to currently enacted tax rates and to the effective tax legislation as of balance sheet date.

Deferred tax is provided, using the liability method, on the temporary differences between the carrying values of assets and liabilities and their carrying. The tax value of assets and liabilities represent the amounts that will affect the tax base in the future periods related to the assets and liabilities within the framework of tax legislation. Deferred tax is calculated over the tax rates that are expected to apply in the period when the tax asset or the liability will be realized by taking into consideration the tax rates and tax legislation in effect as of the balance sheet date.

Deferred tax liabilities are recognised for all taxable temporary differences, where deferred tax assets resulting from deductible temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilised. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred tax assets and liabilities related to income taxes levied by the same taxation authority are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities.

2.3.9 Provision for employee benefits

The Group is obliged to pay termination indemnities to employees whose employment is terminated due to retirement or due to reasons other than resignation or behavior specified in the Labor Code, in accordance with the applicable law. The retirement benefit obligation recognized in the consolidated statement of financial position represents the present value of the defined benefit obligation.

2.3.10 Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. If the provision amount decreases, in the case of an event occurring after the provision is accounted for, the related amount is classified as other income in the current period.

2.3.11 Research and development expenses

Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the design and testing of new or improved products) are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, and only if the cost can be measured reliably. Other development expenditures are recognised as expense as incurred. Subsidies received from Tübitak are accounted for as deferred income by Group and are offset with amortisation expenses in the income statements in line with the useful life of the completed projects. Development costs are directly recognised as expense. Development expenses recognised as expense in prior periods are not subject to capitalisation in subsequent periods.

2.3.12 Warranty provision expenses

Warranty expenses are recognised on an accrual basis for amounts estimated based on prior periods' realization.

2.3.13 Related parties

For the purpose of these consolidated financial statements, shareholders, key management personnel and board members, in each case together with their families and companies controlled by/or affiliated with them and associated companies are considered and referred to as related parties. The transactions with related parties for operating activities are made with prices which are convenient with market prices.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 14 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.14 Foreign currency transactions

Transactions in foreign currencies during the year have been translated at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies have been translated into TRY at the Central Bank of Turkey's exchange rates prevailing at the balance sheet dates. Foreign currency exchange gains or losses arising from the settlement of such transactions and from the translation of monetary assets and liabilities are recognised in the statement of income.

2.3.15 Earnings per share

Earnings per share disclosed in the statement of income are determined by dividing net earnings by the weighted average number of shares that have been outstanding during the related year concerned.

In Turkey, companies can increase their share capital by making a pro-rata distribution of shares ("no-per shares") to existing shareholders from retained earnings and the revaluation surplus. For the purpose of earnings per share computations, the weighted average number of shares outstanding during the year has been adjusted in respect of bonus shares issues without a corresponding change in resources, by giving them retroactive effect for the year in which they were issued and for each earlier year.

2.3.16 Revenue recognition

Commercial vehicle and spare part sales

The Group recognizes income according to the accrual basis, when the Group reasonably determines the income and economic benefit is probable. Group's revenues are comprised of sales of commercial vehicles and the spare parts of those commercial vehicles. Net sales is determined by reducing customer returns and sales discounts.

Revenue from the sale of goods is recognized when all the following conditions are gratified:

• The significant risks and the ownership of the goods are transferred to the buyer,
• The Group refrains the managerial control over the goods and the effective control over the goods sold,
• The revenue can be measured reasonably,
• It is probable that the economic benefits related to transaction will flow to the entity,
• The costs incurred or will be incurred in conjunction with the transaction can be measured reliably.

Warranties given for sales cannot be purchased separately. These warranties are assured that the products sold are in compliance with the pre-determined conditions. In this respect, the Group will continue to recognize the warranty provisions in accordance with the provisions of the existing TAS 37 Provisions, Contingent Liabilities and Conditional Assets.

Revenue from extended warranty sales

For the products it sells, the Group sells extended warranty for the periods starting from the end of the legal warranty periods. The price of the additional commitments given is considered as a different service promised within the contract, apart from the products sold. Therefore, the Group accounts for the service to be provided due to extended warranty sales as a separate performance obligation.

Service rendering

When the revenue from services can be measured reliably, the revenue is recorded in accordance with its completion level. If the revenue cannot be measured reliably, revenues are recognized as much as the recoverable amount of expenses that are associated with these revenues.

Dividend income

Dividend income from investments is recognised when the shareholders' rights to receive payment have been established.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 15 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.17 Reporting of cash flows

In the statement of cash flows, cash flows during the period are classified under operating, investing or financing activities.

The cash flows raised from operating activities indicate cash flows due to the Group's operations.

The cash flows due to investing activities indicate the Group cash flows that are used for and obtained from investments (investments in property, plant and equipment and financial investments).

The cash flows due to financing activities indicate the cash obtained from financial arrangements and used in their repayment.

Cash and cash equivalents include cash and bank deposits and the investments that are readily convertible into cash and highly liquid assets with less than three months to maturity.

2.3.18 Contingent assets and liabilities

Possible assets or obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group are not included in the consolidated financial statements and treated as contingent assets or liabilities.

2.3.19 Government Grants

Government grants are not recognized until there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received. Government grants are recognized as income over the periods necessary to match them with the related costs, which they are intended to compensate, on a systematic basis. Government grants and assistance received for R&D purposes of the Group are explained in Note 15.

2.3.20 TFRS 9 Financial Instruments

TFRS 9, Financial instruments; effective from annual periods beginning on or after 1 January 2018. This standard replaces the guidance in TAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model. Group has carried out valuation studies to determine the cumulative effect of the first transition and concluded that no changes should be made to the consolidated financial statements.

Financial assets

At initial recognition, the Group measures a financial asset at its fair value, except for trade receivables that do not contain significant financing component. The Group measures trade receivables at their transaction price (as defined in TFRS 15) if the trade receivables do not contain a significant financing component in accordance with TFRS 15 (or when the entity applies the practical expedient) at initial recognition.

In the initial measurement of financial assets except at fair value through profit or loss, transaction costs directly attributable to the acquisition or export of such assets are added to or deducted from the fair value. Financial assets that are traded in the normal course are recognized at the date of the transaction (delivery date).

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 16 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.20 TFRS 9 Financial Instruments (cont'd)

Financial assets measured at amortized cost

A financial asset is measured at amortised cost if both of the following conditions are met:

• (a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
• (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Interest revenue of financial assets measured at amortised cost is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• (a) purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the creditadjusted effective interest rate to the amortised cost of the financial asset from initial recognition.
• (b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.

When the contractual cash flows of a financial asset are renegotiated or otherwise modified and the renegotiation or modification does not result in the derecognition of that financial asset, the Group recalculates the gross carrying amount of the financial asset and recognises a modification gain or loss in profit or loss.

The Group directly reduces the gross carrying amount of a financial asset when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.

Financial assets measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A gain or loss on a financial asset measured at fair value through other comprehensive income is recognised in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognised or reclassified. When the financial asset is derecognised the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. If the financial asset is reclassified out of the fair value through other comprehensive income measurement category, the Company accounts for the cumulative gain or loss that was previously recognised in other comprehensive income in the financial statements. Interest calculated using the effective interest method is recognised in profit or loss.

At initial recognition, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading.

Financial assets measured at fair value through profit or loss

A financial asset shall be measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income.

Financial assets that are not designated as an effective hedging instrument against financial risk are also classified as financial assets at fair value through profit or loss. The related financial assets are presented with their fair values and the gains and losses arising from the valuation are recognized in profit or loss.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 17 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.20 TFRS 9 Financial Instruments (cont'd)

Impairment

The Group recognises a loss allowance for expected credit losses on financial assets that are measured at amortized cost or fair value through other comprehensive income.

The Group applies the impairment requirements for the recognition and measurement of a loss allowance for financial assets that are measured at fair value through other comprehensive income. However, the loss allowance is recognised in other comprehensive income and does not reduce the carrying amount of the financial asset in the statement of financial position.

At each reporting date, the Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.

If, at the reporting date, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses except for purchased or originated credit impaired financial assets. For purchased or originated credit-impaired financial assets, the Group only recognizes the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance at the reporting date.

The Group measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables, contract assets and lease receivables that do not contain a significant financing component, which is referred as simplified approach.

Financial liabilities

Financial liabilities are initially measured at fair value. During initial recognition of financial liabilities not designated fair value through profit or loss, all directly attributable transaction costs related to underwriting of financial liabilities, added to this fair value.

The Group classifies all financial liabilities as subsequently measured at amortised cost, except for:

(a) financial liabilities at fair value through profit or loss: Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value.

(b) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies. If a transfer does not result in derecognition because the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received. In subsequent periods, the Company recognises any income on the transferred asset and any expense incurred on the financial liability.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 18 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd) 2.3 Summary of Significant Accounting Policies (cont'd)

2.3.20 TFRS 9 Financial Instruments (cont'd)

(c) contingent consideration recognised by an acquirer in a business combination to which TFRS 3 applies. Such contingent consideration is subsequently be measured at fair value with changes recognised in profit or loss.

The Group does not reclassify any financial liability.

Recognition and derecognition of financial assets

The Group recognises a financial asset or a financial liability in the statement of financial position when the Group becomes party to the contractual provisions of the instrument. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. The Group only derecognizes the obligation if the obligation defined in the contract is lifted or canceled or if it expires on time.

2.3.21 Events after the reporting period

Subsequent events and announcements related to net profit or even declared after other selective financial information has been publicly announced, include all events that take place between the balance sheet date and the date when the balance sheet is authorised for issue.

In the case that events requiring an adjustment to the consolidated financial statements occur subsequent to the balance sheet date, the Group makes the necessary corrections on the consolidated financial statements.

2.4 Changes in Accounting Estimates and Errors

Accounting estimates are made based on reliable information and using appropriate estimation methods. However, if new or additional information becomes available or the circumstances, which the initial estimates based on, change, then the estimates are reviewed and revised, if necessary. If the change in the accounting estimates is only related to a sole period, then only that period's financial statements are adjusted. If the amendments are related to the current as well as the forthcoming periods, then both current and forthcoming periods' financial statements are adjusted.

Significant accounting errors are applied retrospectively and the consolidated financial statements of the previous period are restated. There has been no significant change in the accounting estimates of the Group in the current year.

2.5 Other Accounting Estimates

In instances where the accounting estimates affect both current and forthcoming periods, then description and monetary value of the estimate is disclosed in the notes to the financial statements except instances where the estimation of the effect related to upcoming periods are not possible.

a) Deferred Tax

There are previous year losses, research and development expenditures and investment incentive certificates that the Group can gain tax advantage in the future. Deferred tax assets can only be recognized if it is probable that sufficient taxable profit will be generated in future periods. In each reporting period, the Group management evaluates the taxable profit that may occur in the future periods, and during its evaluations, future profit projections and unused losses are taken into account within the scope of tax legislation. For the year ended December 31, 2023, the Group has recorded deferred tax assets up to the part that it finds sufficient indications of taxable profit in the foreseeable future.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 19 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 2 -BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd) 2.6 Other Accounting Estimates (cont'd)

b) Warranty Cost Provisions

The Group determined the warranty provision based on warranty costs for each vehicle model in previous years and the remaining warranty periods for each vehicle.

c) Useful lives of property, plant and equipment:

The Group reviews the estimated useful lives of property, plant and equipment at the end of each reporting period. The Company may shorten or prolong the useful lives and related depreciation of property, plant and equipment by taking into consideration the intended use of property, plant and equipment, technological progress according to their types and other factors.

d) Revaluation of land improvements and buildings:

Land improvements, evaluation of buildings and machinery have been made by taking into consideration the current market conditions. A significant increase / (decrease) in the market value of the lands and lands where the market approach (peer comparison) method is used will cause a significant increase / (decrease) in the fair value of the immovables in the relevant region and under similar conditions. As a result of the revaluation, provision for impairment of the fixed assets with fair value lower than the cost value is made.

The Group's land improvements and buildings have been revalued at 31 December 2023 by independent appraisals accredited by the Capital Markets Board. The Group's land improvements and buildings have been revalued by TSKB Gayrimenkul Değerleme A.Ş. accredited by the Capital Markets Board. The revaluation fund which is composed of the difference between the book value and the fair value is offset with deferred tax and shown under the equity as revaluation fund. Revaluation is performed periodically.

e) Provision for Employment Termination Benefits

Provision for employment termination benefits is calculated by taking into account the severance pay ceiling and actuarial informations recognized into the consolidated financial statements. Provision for employment termination benefits represents the estimated present value of the amount of retirement pay liability that the Group is liable to pay in the future.

NOTE 3 –SEGMENT REPORTING

The field of activity of the Group established in Turkey is the manufacture, assembly, import and sale of motor vehicles and spare parts. The field of activity of the Group, the nature and economic properties of products, production processes, classification according to customer risks and methods used in the distribution of products are similar. Moreover, the Group is structured on an activity basis rather than being managed under separate divisions including different activities. Thus, the operations of the Group are considered as a single activity division, and the outputs of the Group's activities, determination of the resources to be allocated to these activities, and review of the performance of these activities are evaluated accordingly.

NOTE 4 - CASH AND CASH EQUIVALENTS

Cash and equivalent values as of the end of the period are presented below:

	31 December 2023	31 December 2022
Banks-Demand Deposits	132.176.261	686.454.459
Banks-Time Deposits	3.529.419.771	1.743.299.139
Other Liquid Assets (*)	3.304.130	2.794.680
Total	3.664.900.162	2.432.548.278

(*) As of 31 December 2023 and 31 December 2022, the balance in "Other Liquid Assets" is consist of credit card receivables in bank of the group.

There are no restricted deposits as of 31 December 2023 and 31 December 2022.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 20 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 4 - CASH AND CASH EQUIVALENTS (cont'd)

Cash and cash equivalents presented in the consolidated cash flow statements as of 31 December 2023 and 31 December 2022 are as follows:

	31 December 2023	31 December 2022
Liquid Assets	3.664.900.162	2.432.548.278
Interest Accruals (-)	(73.300.218)	(9.752.998)
Total (Excluding interest accruals)	3.591.599.944	2.422.795.280

The details of time deposits are as follows:

		31 December 2023		31 December 2022
	Amount
	(TRY	Annual Average	Amount	Annual Average
	Equivalent)	Interest Rate (%)	(TRY Equivalent)	Interest Rate (%)
TRY	3.426.198.954	38,50	1.743.299.139	16,80
EUR	103.220.817	2,70	0	0,00
Total	3.529.419.771		1.743.299.139

The Group does not have any time deposits with maturities longer than three months and the time deposits are composed of fixed interest rates.

NOTE 5 - FINANCIAL INVESTMENTS

The details of short term financial investments as follows:

	31 December 2023			31 December 2022
	Carrying	Interest	Fair Value	Carrying	Interest	Fair Value
	Amount	Accrual		Amount	Accrual
Currency Protected Deposit	-	-	-	-	17.667.503	414.687.325
Total	-	-	-	-	17.667.503	414.687.325

The details of long term financial investments as follows:

		31 December 2023			31 December 2022
	Carrying Amount	Interest Accrual	Fair Value	Carrying Amount	Interest Accrual	Fair Value
Investment Fund	-	-	14.673.988	-	-	1.379.809
Total	-	-	14.673.988	-	-	1.379.809

NOTE 6 - FINANCIAL LIABILITIES

The details of bank loans as of 31 December 2023 and 31 December 2022 are as follows:

a) Short-term Borrowings

Bank Loans

	Average Effective Interest Rate		Original Currency		Amount in TRY Including
	%					Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
TRY	16,58	17,21	3.780.500.944	1.764.898.767	3.780.500.944	1.764.898.767
Total					3.780.500.944	1.764.898.767

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 21 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 6 - FINANCIAL LIABILITIES (cont'd)

b) Short-term Portions of Long Term Borrowings

Bank Loans

	Average Effective Interest Rate %		Original Currency		Amount in TRY Including Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
EUR	4,38	4,38	4.782.233	18.489.909	155.775.986	369.258.270
USD	4,25	-	5.583.593	-	164.370.928	-
TRY	17,52	15,84	333.043.565	496.138.593	333.043.564	496.138.593
Total					653.190.478	865.396.863

Finance Lease Liabilities

Short-term Finance Lease Payables

	Average Effective Interest Rate %		Original Currency		Amount in TRY Including
					Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
TRY	34,00	-	24.031.730	-	24.031.730	-
Total					24.031.730	-

Short-term Lease Payables Arising from Operating Leases

	Average Effective Interest Rate %		Original Currency		Amount in TRY Including
					Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
EUR	3,20	3,20	215.526	81.156	7.020.534	1.617.832
TRY	28,05	28,05	15.765.277	12.482.534	15.765.276	12.482.533
Total					22.785.810	14.100.365

b) Long-term Borrowings

Bank Loans

	Average Effective Interest Rate %		Original Currency		Amount in TRY Including
					Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
EUR	5,45	5,45	7.729.431	14.246.228	251.777.721	284.508.579
TRY	15,34	12,29	249.951.575	378.954.550	249.951.575	378.954.550
Total					501.729.296	663.463.129

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 22 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 6- FINANCIAL LIABILITIES (cont'd)

As of 31 December 2023 and 31 December 2022, the payment schedule of long-term loans is as follows:

	31 December 2023	31 December 2022
1 to 2 years	289.857.106	382.901.441
2 to 3 years	61.971.648	69.557.681
3 to 4 years	52.203.017	61.552.739
4 to 5 years	71.498.095	51.465.756
More than 5 years	26.199.430	97.985.512
Total	501.729.296	663.463.129

Finance Lease Liabilities

Long Term Finance Lease Payables

	Average Effective Interest Rate %		Original Currency		Amount in TRY Including Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
TRY	35,46	-	248.726.260	-	248.726.260	-
Total					248.726.260	-

Long-term Lease Payables Arising from Operating Leases

	Average Effective Interest Rate %		Original Currency		Amount in TRY Including
					Interest
	31 December	31 December	31 December	31 December	31 December	31 December
	2023	2022	2023	2022	2023	2022
EUR	3,20	3,20	96.272	173.516	3.135.941	3.459.020
TRY	28,05	28,05	35.826.632	13.127.376	35.826.632	13.127.376
Total					38.962.573	16.586.396

Financial net debt reconciliation as of 31 December 2023 and 31 December 2022 is as follows:

	31 December 2023	31 December 2022
Opening balance	3.324.445.520	2.526.582.034
Interest expense	832.899.306	372.159.476
Cash outflows from debt payments arising from lease agreements	(40.574.171)	(9.221.168)
TFRS 16 changes in lease liabilities	326.598.565	22.121.301
Interest paid	(581.052.416)	(311.034.200)
Newly obtained credits	9.618.973.730	4.340.898.855
Loans repaid	(6.375.806.644)	(2.510.942.509)
Exchange difference	352.274.603	244.568.629
Inflation Effect	(2.187.831.402)	(1.350.686.898)
Closing balance	5.269.927.091	3.324.445.520

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 23 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 7- TRADE RECEIVABLES AND PAYABLES

Trade receivables at period ends are as follows:

a) Short-term Trade Receivables

	31 December 2023	31 December 2022
Trade Receivables from Third Parties	2.875.652.811	1.619.829.438
Trade Receivables from Related Parties	103.323.977	189.449.510
Rediscount Expenses (-)	(34.216.193)	(3.446.590)
Doubtful Receivables	189.907	790.976
Allowance for Doubtful Receivables (-)	(189.907)	(790.976)
Total	2.944.760.595	1.805.832.358

As of 31 December 2023, the average term for trade receivables is 82 days (31 December 2022: 76 days).

Movements of provision for doubtful receivables are as follows:

	31 December 2023	31 December 2022
Opening Balance	790.976	1.413.171
Provisions for Uncollectible Provisions	(115.133)	-
Collections in the Period	(175.000)	(69.299)
Inflation Effect	(310.936)	(552.896)
Closing Balance	189.907	790.976

Disclosures on the nature and level of risks in trade receivables are given in Note 29.

Trade payables at period ends are as follows:

b) Short-term Trade Payables

	31 December 2023	31 December 2022
Trade Payables to Third Parties	1.688.326.271	1.707.329.118
Trade Payables to Related Parties	2.083.903.100	1.926.594.898
Rediscount Incomes(-)	(44.514.978)	(10.222.832)
Total	3.727.714.393	3.623.701.184

As of 31 December 2023, the average term for trade payables is 113 days (31 December 2022: 115 days).

Disclosures on the nature and level of risks in trade payables are given in Note 29.

NOTE 8- OTHER RECEIVABLES AND PAYABLES

a) Other Short-term Receivables

	31 December 2023	31 December 2022
Receivables from Tax Office (*)	93.850.959	139.470.682
Due from Personnel	7.989.771	2.974.471
Deposits and Guarantees Given	54.114	50.661
Total	101.894.844	142.495.814

(*) As of 31 December 2023, the amount of Group's receivables was TRY 92.047.082 which consists of the receivables related to the VAT refund request (31 December 2022: TRY 138.593.455).

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 24 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 8- OTHER RECEIVABLES AND PAYABLES (cont'd)

b) Other Long-term Receivables

	31 December 2023	31 December 2022
Deposits and Guarantees Given	3.644	8.061
Total	3.644	8.061

Disclosures on the nature and level of risks in other receivables are given in Note 29.

c) Other Short-term Payables

	31 December 2023	31 December 2022
Payables Under Employee Benefit	96.775.043	63.565.507
Tax and Funds Payables	40.029.183	17.989.934
Other Miscellaneous Payables	780.741	854.546
Total	137.584.967	82.409.987

d) Other Long-term Payables

	31 December 2023	31 December 2022
Payables Under Employee Benefit	25.482.401	-
Total	25.482.401	-

NOTE 9- DERIVATIVE INSTRUMENTS

Derivative instruments at period ends are as follows:

Foreign Currency Forward Transactions

	31 December 2023		31 December 2022
		Fair Value			Fair Value
	Nominal Value	Asset	Liability	Nominal Value	Asset	Liability
Interest Rate Swap	-	-	-	-	-	(4.016.845)
Forward Contracts	2.234.243.801	86.807.663	(33.179.796)	1.202.378.578	7.975.949	(62.336.333)
Total	2.234.243.801	86.807.663	(33.179.796)	1.202.378.578	7.975.949	(66.353.178)

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 25 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 10- INVENTORIES

Inventory balances as of period ends are as follows:

	31 December 2023	31 December 2022
Raw Materials	2.272.971.663	1.689.286.032
Work in Process Goods	107.220.468	2.918.932
Finished Goods	378.525.955	458.809.461
Trade Goods	291.745.744	287.762.358
Other Inventory	62.534.700	20.897.489
Goods in Transit	559.643.664	205.734.640
Total Inventories	3.672.642.194	2.665.408.912

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 26 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023 (Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 11- PROPERTY, PLANT AND EQUIPMENT

31 December 2023

				Plant,			Other Tangible
		Land		Machinery and		Furniture and	Fixed	Construction in
Cost Value	Land	Improvements	Buildings	Equipment	Vehicles	Fixtures	Assets	Progress	Total
Opening Balance as at 1 January 2023	3.809.976.050	157.703.583	1.029.823.181	2.697.230.620	45.588.955	42.338.067	10.695.208	29.395.983	7.822.751.647
Additions	-	1.715.926	14.386.343	268.597.889	16.180.070	5.476.917	-	287.591.583	593.948.728
Transfers from Construction in Progress	-	495.200	111.119.267	49.656.631	-	1.891.176	-	(163.162.274)	-
Disposals	-	-	(3.716.371)	(82.921.832)	(4.202.760)	-	-	(79.000)	(90.919.963)
Revaluation Increases	665.332.832	-	88.810.696	-	-	-	-	-	754.143.528
Closing Balance as at 31 December 2023	4.475.308.882	159.914.709	1.240.423.116	2.932.563.308	57.566.265	49.706.160	10.695.208	153.746.292	9.079.923.940
Accumulated Depreciation
Opening Balance as at 1 January 2022	-	(125.714.200)	(207.858.246)	(2.203.302.439)	(34.238.667)	(35.181.200)	(10.677.950)	-	(2.616.972.702)
Charge for the year	-	(4.103.580)	(12.021.624)	(89.305.478)	(1.854.389)	(2.591.198)	(5.377)	-	(109.881.646)
Disposals	-	-	1.195.160	65.520.060	3.227.946	-	-	-	69.943.166
Closing Balance as at 31 December 2023	-	(129.817.780)	(218.684.710)	(2.227.087.857)	(32.865.110)	(37.772.398)	(10.683.327)	-	(2.656.911.182)
Net Book Value
Opening Balance as at 1 January 2023	3.809.976.050	31.989.383	821.964.935	493.928.181	11.350.288	7.156.867	17.258	29.395.983	5.205.778.945
Closing Balance as at 31 December 2023	4.475.308.882	30.096.929	1.021.738.406	705.475.451	24.701.155	11.933.762	11.881	153.746.292	6.423.012.758

TRY 85.712.163 of the depreciation expenses has been charged to cost of sales and TRY 2.330.383 to research and development expenses and TRY 5.562.566 to marketing expenses, TRY 10.463.344 to general administrative expenses and TRY 5.813.190 to development capitalization as of 31 December 2023.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 27 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023 (Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 11- PROPERTY, PLANT AND EQUIPMENT (cont'd)

31 December 2022

							Other
				Plant,			Tangible
		Land		Machinery and		Furniture and	Fixed	Construction in
Cost Value	Land	Improvements	Buildings	Equipment	Vehicles	Fixtures	Assets	Progress	Total
Opening Balance as at 1 January 2022	2.527.852.079	149.240.536	846.505.769	2.497.348.835	40.216.598	38.392.826	10.695.208	6.339.476	6.116.591.327
Additions	-	8.463.047	1.618.252	93.060.279	5.789.553	3.945.241	-	131.661.519	244.537.891
Transfers from Construction in Progress	-	-	-	108.605.012	-	-	-	(108.605.012)	-
Disposals	-	-	-	(1.783.506)	(417.196)	-	-	-	(2.200.702)
Revaluation Increases	1.282.123.971	-	181.699.160	-	-	-	-	-	1.463.823.131
Closing Balance as at 31 December 2022	3.809.976.050	157.703.583	1.029.823.181	2.697.230.620	45.588.955	42.338.067	10.695.208	29.395.983	7.822.751.647
Accumulated Depreciation
Opening Balance as at 1 January 2022	-	(122.074.995)	(190.438.588)	(2.124.714.798)	(31.926.629)	(33.377.121)	(10.672.507)	-	(2.513.204.638)
Charge for the year	-	(3.639.205)	(17.419.658)	(79.945.526)	(2.728.170)	(1.804.079)	(5.443)	-	(105.542.081)
Disposals	-	-	-	1.357.885	416.132	-	-	-	1.774.017
Closing Balance as at 31 December 2022	-	(125.714.200)	(207.858.246)	(2.203.302.439)	(34.238.667)	(35.181.200)	(10.677.950)	-	(2.616.972.702)
Net Book Value
Opening Balance as at 1 January 2022	2.527.852.079	27.165.541	656.067.181	372.634.037	8.289.969	5.015.705	22.701	6.339.476	3.603.386.689
Closing Balance as at 31 December 2022	3.809.976.050	31.989.383	821.964.935	493.928.181	11.350.288	7.156.867	17.258	29.395.983	5.205.778.945

TRY 81.795.131 of the depreciation expenses has been charged to cost of sales and TRY 1.030.033 to research and development expenses and TRY 3.738.622 to marketing expenses, TRY 10.168.615 to general administrative expenses and TRY 8.809.680 to development capitalization as of 31 December 2022.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 28 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 11- PROPERTY, PLANT AND EQUIPMENT (cont'd)

An independent valuation on the Group's land and buildings was done as at 31 December 2023. Fair values of the Group's land and buildings were estimated based on valuation techniques which take into account comparable fair market value of land and buildings that share similar characteristics to the Group's assets. The gains/(loss) on revaluation of land and buildings in the amount of TRY 766.531.712, net of taxes of TRY 674.698.709 has been included as a component of other comprehensive income. The revaluation surplus net of applicable deferred income taxes was credited to other comprehensive income. There are no restrictions on the distribution of the revaluation surplus to the equity holders of the Group.

NOTE 12 – INTANGIBLE ASSETS

31 December 2023

			Other	Construction
		Development	Intangible	in Progress and
Cost Value	Rights	Expenses	Assets	Advances (*)	Total
Opening Balance as at 1 January 2023	6.863.479	1.591.229.680	266.188.656	306.412.123	2.170.693.938
Additions	-	-	28.569.375	490.083.011	518.652.386
Transfer from Construction in Progress	178.123	74.734.791	9.694.816	(84.607.730)	-
Closing balance as at 31 December 2023	7.041.602	1.665.964.471	304.452.847	711.887.404	2.689.346.324
Accumulated Amortization
Opening Balance as at 1 January 2023	(2.951.611)	(899.331.745)	(208.248.069)	-	(1.110.531.425)
Charge for the period	(485.283)	(203.199.227)	(33.643.995)	-	(237.328.505)
Closing balance as at 31 December 2023	(3.436.894)	(1.102.530.972)	(241.892.064)	-	(1.347.859.930)
Net Book Value
Opening Balance as at 1 January 2023	3.911.868	691.897.935	57.940.587	306.412.123	1.060.162.513
Closing balance as at 31 December 2023	3.604.708	563.433.499	62.560.783	711.887.404	1.341.486.394

TRY 201.259.149 of the depreciation expenses of intangible assets has been charged to cost of sales and TRY 3.438.690 to research and development expenses and TRY 4.782.275 to marketing expenses, TRY 19.096.424 to general administrative expenses and TRY 8.751.967 to development capitalization as of 31 December 2023.

31 December 2022

		Development	Other Intangible	Construction in Progress and
Cost Value	Rights	Expenses	Assets	Advances (*)	Total
Opening Balance as at 1 January 2022	6.100.075	1.267.736.993	227.096.298	331.584.266	1.832.517.632
Additions	-	-	33.242.940	304.933.366	338.176.306
Transfer from Construction in Progress	763.404	323.492.687	5.849.418	(330.105.509)	-
Closing balance as at 31 December 2022	6.863.479	1.591.229.680	266.188.656	306.412.123	2.170.693.938
Accumulated Amortization
	(2.512.638)	(741.987.483)	(180.120.070)	-	(924.620.191)
Opening Balance as at 1 January 2022	(438.973)	(157.344.262)	(28.127.999)	-	(185.911.234)
Charge for the period	(2.951.611)	(899.331.745)	(208.248.069)	-	(1.110.531.425)
Closing balance as at 31 December 2022
Net Book Value
Opening Balance as at 1 January 2022	3.587.437	525.749.510	46.976.228	331.584.266	907.897.441
Closing balance as at 31 December 2022	3.911.868	691.897.935	57.940.587	306.412.123	1.060.162.513

TRY 155.716.117 of the depreciation expenses of intangible assets has been charged to cost of sales and TRY 166.523 to research and development expenses and TRY 3.919.266 to marketing expenses, TRY 16.537.762 to general administrative expenses and TRY 9.571.566 to development capitalization as of 31 December 2022.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 29 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 13 – RIGHT OF USE ASSETS

As of 31 December 2023 and 31 December 2022, the right of use assets' balances of depreciation assets and depreciation expenses in the relevant period are as follows:

Cost Value Total

Opening Balance as at 1 January 2023	53.164.915
Additions	83.992.135
Disposals	(3.715.439)
Closing balance as at 31 December 2023	133.441.611

Accumulated Amortization

Opening Balance as at 1 January 2023	(21.063.402)
Charge for the Period	(33.403.571)
Disposals	3.715.438
Closing balance as at 31 December 2023	(50.751.535)

Net Book Value

Opening Balance as at 1 January 2023	32.101.513

Closing balance as at 31 December 2023 82.690.076

TRY 17.133.202 of depreciation expenses has been charged to cost of sales, and TRY 16.270.370 to general administration expenses as of 31 December 2023.

Cost Value	Total
Opening Balance as at 1 January 2022	55.133.819
Additions	28.549.256
Disposals	(30.518.160)
Closing balance as at 31 December 2022	53.164.915

Accumulated Amortization

Opening Balance as at 1 January 2022	(32.377.481)
Charge for the Period	(19.204.081)
Disposals	30.518.160
Closing balance as at 31 December 2022	(21.063.402)

Net Book Value

Opening Balance as at 1 January 2022	22.756.338
Closing balance as at 31 December 2022	32.101.513

TRY 4.863.934 of depreciation expenses has been charged to cost of sales, and TRY 14.340.147 to general administration expenses as of 31 December 2022.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 30 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 14 - GOODWILL

A transfer agreement was signed between the Group and FZK Mühendislik ve Sınai Yatırımlar A.Ş. (FZK) on 03.02.2023 regarding the acquisition of FZK's automotive operations by the Group through partial transfer. The total transfer price to be paid to FZK is USD 6.500.000 + VAT and the payments are planned to be completed in 2024.

As of 31 December 2023, there is goodwill amounting to TL 106.248.200 related to the acquisition of FZK (31 December 2022: None). The Group has calculated the recoverable amount of goodwill and there is no impairment in the amount of goodwill. In this calculation, a discount rate of 34% per annum (2022: none) has been used with 5-year cash flows prepared based on budgets approved by the management.

NOTE 15- GOVERNMENT GRANTS AND INCENTIVES

As of December 31, 2023, the Group does not have any R&D deduction amount that can be used in tax calculation due to the expenditures related to R&D activities (December 31, 2022: TL 484.005.500). In accordance with the amendment made in Article 35 of the Law No. 5746 on Supporting R&D Activities, which entered into force on April 1, 2008, the R&D discount rate to be used for R&D expenditures has been increased from 40% to 100%.

In order to benefit from the incentives and exemptions provided in line with the Law No. 5746, the Group applied to the Ministry of Industry and Commerce to become an R&D centre. On 3 June 2009, the Group was entitled to become an R&D centre.

The Group realizes fixed asset investments with incentives within the scope of the "Council of Ministers Decisions on State Aids in Investments" numbered 2009/15199 and 2012/3305, which regulates the investment legislation.

The investment projects in which the Group has completed the investment process and continue to benefit from the deserved investment contribution amounts are as follows;

Within the scope of the incentive certificate numbered 5487, total TRY 51.670.512 was spent.(31 December 2022: TRY 51.670.512) The contribution rate to the investment is 20%.

The investment projects that the Group continues to invest in and continue to benefit from the investment contribution amounts are as follows;

Within the scope of the incentive certificate numbered 129788, total TRY 87.538.897 was spent. (31 December 2022: TRY 87.538.897) The contribution rate to the investment is 45%.

Within the scope of the incentive certificate numbered 535509, total TRY 56.662.570 was spent. (31 December 2022: 56.662.570) The contribution rate to the investment is 30%.

Within the scope of the incentive certificate numbered 541650, incentive certificate's amount is total TRY 284.144.979 and no expenditure was spent. (31 December 2022: None) The contribution rate to the investment is 55%.

Within the scope of the incentive certificate numbered 55760, incentive certificate's amount is total TRY 19.160.475 and no expenditure was spent. (31 December 2022: None) The contribution rate to the investment is 30%.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 31 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 16 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Other Short-term Provisions

	31 December 2023	31 December 2022
Warranty Provisions	91.948.704	74.114.450
Provision for Lawsuits	63.889.061	60.530.583
Provision for Premium and Commission	75.362.948	96.442.950
Total	231.200.713	231.087.983

Movements of provisions during the period are as follows:

			Provision for
	Warranty	Provision for	Premium and
	Provisions	Lawsuits	Commission	Total
Opening Balance as at
1 January 2023	74.114.450	60.530.583	96.442.950	231.087.983
Additions During The Period	131.998.637	27.153.320	90.579.202	249.731.159
Paid During The Period (-)	(104.151.552)	-	(72.402.278)	(176.553.830)
Inflation Effect	(10.012.831)	(23.794.842)	(39.256.926)	(73.064.599)
Closing Balance as at 31 December 2023	91.948.704	63.889.061	75.362.948	231.200.713
			Provision for
	Warranty	Provision for	Premium and
	Provisions	Lawsuits	Commission	Total
Opening Balance as at
1 January 2022	57.973.424	23.124.292	94.011.081	175.108.797
Additions During The Period	90.361.605	46.453.546	80.063.127	216.878.278
Paid During The Period (-)	(68.944.537)	-	(54.898.271)	(123.842.808)

Closing Balance as at 31 December 2022 74.114.450 60.530.583 96.442.950 231.087.983

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 32 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 16 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd) Mortgages and guarantees on assets:

There are not any mortgages and guarantees on assets.

Contingent liabilities which are not shown in liabilities listed are as follows:

	31 December 2023
	Total TRY Provisions	Original Currency TRY	Original Currency EUR	Original Currency USD
A. CPMs given in the name of its own legal personality	2.264.269.549	1.830.675.020	11.485.100	1.994.007
i. Letter of Guarantee	2.264.269.549	1.830.675.020	11.485.100	1.994.007
B. CPMs given on behalf of fully consolidated companies
total amount of given CPMs	-	-	-	-
C. CPMs given in the normal course of business activities
on behalf of third parties	-	-	-	-
D. Total amount of other CPMs	-	-	-	-
Total	2.264.269.549	1.830.675.020	11.485.100	1.994.007

	31 December 2022
	Total TRY Provisions	Original Currency TRY	Original Currency EUR	Original Currency USD
A. CPMs given in the name of its own legal personality	1.070.326.451	633.038.394	12.237.804	1.146.028
i. Letter of Guarantee	1.070.326.451	633.038.394	12.237.804	1.146.028
B. CPMs given on behalf of fully consolidated companies
total amount of given CPMs	-	-	-	-
C. CPMs given in the normal course of business activities
on behalf of third parties	-	-	-	-
D. Total amount of other CPMs	-	-	-	-
Total	1.070.326.451	633.038.394	12.237.804	1.146.028

The ratio of other CPM is given by the Group to the Group's equity is 0% as of 31 December 2023 (0% as of 31 December 2022).

The Group is exposed to foreign currency risk since its foreign currency denominated assets and liabilities are formed of different currencies. In order to hedge its foreign currency position due to the fluctuations in the foreign exchange parities, the Group enters into forward contracts.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 33 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 17 – EMPLOYEE BENEFITS

a) Short-Term Provisions for Employee Benefits

	31 December 2023	31 December 2022
Provision for Employee Rights and Salaries	107.173.800	455.180
Provision for Unused Vacation	11.239.569	8.501.066
Total	118.413.369	8.956.246

Short-term provisions for employee benefits consist of provisions that were calculated and unpaid as of the end of period.

Movements of the provision for unused vacation during the period are as follows:

	31 December 2023	31 December 2022
Opening Balance	8.501.066	9.015.850
Recognized provision during the period	26.219.615	21.274.992
Paid During The Period	(21.074.551)	(17.104.306)
Inflation Effect	(2.406.561)	(4.685.470)
Total	11.239.569	8.501.066

b) Long-Term Provisions for Employee Benefits

	31 December 2023	31 December 2022
Provision for Severance Payments to Employees	47.809.516	207.234.068
Total	47.809.516	207.234.068

Within the framework of current laws in Turkey, it is obligatory to make the severance pay of each employee who has completed one year service period, has been paid off regardless of any related reason, has been called-up for military service along with men who have completed 25-year service period, women who have completed 20-year service period or those who have completed age of retirement (58 for women, 60 for men). Because there is not any funding obligation for the severance pay provision in Turkey, any special fund is not allocated in the financial statements.

The severance payments are calculated over 30-days gross salary for each service year. Primary assumption is that ceiling liability set for each service year increases in proportion to inflation. In parallel with this, real discount rate which is cleared of the potential inflation impacts is considered at the implementation stage. The severance pay cap is revised in every six months, the ceiling amount of TRY 35.058,58 (1 January 2023: TRY 19.982,83) applicable as of 1 January 2024 has been regarded for the calculation of the Group's provision of severance pay.

Moreover, the severance payments are not made for those who leave the job with his/her wish; estimated rate related to these severance pay amounts that will remain in the Group's account is considered.

Considering the Liability of Severance Pay are related to the next periods as per TAS 19, current values of the severance payments which will be made as of the balance sheet date are calculated to determine an approximate inflation expectation whose net difference refers a real discount rate and find an appropriate discount rate.

The actuarial assumptions considered in the calculation of the provision for employment termination benefits are as follows:

	31 December 2023	31 December 2022
Annual Net Discount Rate (%)	1,72	0,44
Turnover Rate to Estimate the Probability of Retirement (%)	11,92	8,99

The provision calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of the employees is recognised to the consolidated financial statements.

Movements of the provision for employee termination benefit during the period are as follows:

	31 December 2023	31 December 2022
Opening Balance	207.234.068	127.852.006
Interest Cost	2.290.652	817.401
Gain/(Loss) on Remeasurement of Defined Benefit Plans	(15.649.955)	88.176.650
Paid Within the Period	(106.104.771)	(12.995.864)
Service Cost	11.331.779	58.838.898
Inflation Effect	(51.292.257)	(55.455.023)
Closing Balance	47.809.516	207.234.068

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 18- OTHER ASSETS AND LIABILITIES

a) Prepaid Expenses
	31 December 2023	31 December 2022
Advances Given For Inventory Purchase	593.428.815	695.725.009
Prepaid Extended Warranty Expenses	72.915	6.524.367
Prepaid Insurance Expenses	945.229	490.020
Prepaid Subscription Expenses	583.723	624.253
Prepaid Maintenance Expenses	1.889.496	384.755
Prepaid Other Expenses	3.318.714	18.877.005
Total	600.238.892	722.625.409

b) Other Current Assets

	31 December 2023	31 December 2022
Deferred VAT	25.484.238	164.252.105
Other Current Assets	33.668.468	14.648.418
Total	59.152.706	178.900.523

c) Prepaid Expenses (Long-Term)

	31 December 2023	31 December 2022
Prepaid Extended Warranty Expenses	-	3.243.401
Prepaid Expenses	989.555	2.463.586
Total	989.555	5.706.987

d) Deferred Income (Short-Term)

	31 December 2023	31 December 2022
Order Advances Received	462.698.580	322.379.422
Deferred Income (*)	35.789.942	23.394.344
Total	498.488.522	345.773.766

(*) The amount of cash incentives received for the company's R&D activities and which should be transferred to the income statement for upcoming months as of 31 December 2023 is TRY 2.106.585 (31 December 2022: TRY 1.190.973).

e) Liabilities Arising from Contracts with Customers (Short-Term)

	31 December 2023	31 December 2022
Deferred Maintenance and Repair Income	18.041.558	12.180.404
Total	18.041.558	12.180.404
f) Deferred Income (Long-Term)	31 December 2023	31 December 2022
Order Advances Received	-	-
Deferred Income (*)	71.573.252	4.064.844
Total	71.573.252	4.064.844

(*) The amount of cash incentives received for the company's R&D activities and which should be transferred to the income statement for upcoming months as of 31 December 2023 is TRY 4.572.380 (31 December 2022: TRY 2.466.936).

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 35 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 18- OTHER ASSETS AND LIABILITIES (cont'd)

f) Liabilities Arising from Customer Contracts (Long-Term)

	31 December 2023	31 December 2022
Deferred Maintenance and Repair Income	193.488.305	172.049.343
Total	193.488.305	172.049.343

NOTE 19- SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS

a) Capital / Elimination Adjustments

As of 31 December 2023, the share capital of the Company is TRY 252.000.000 (31 December 2022: TRY 84.000.000). This share capital is divided into 25.200.000.000 in total, including 13.545.943.533 A Group registered shares, 7.494.613.119 B Group registered shares, 4.159.443.348 C Group bearer's shares, each with nominal value of 1 (one) Kr. The distribution of this share capital on the basis of share group is as follows:

31 December 2023

				Total Share
Shareholders			Group A Group B Group C	Amount	Share (%)
AG Anadolu Grubu Holding A.Ş.	134.534.317		- 5.071.886	139.606.203	55,40
Isuzu Motors Ltd.	-	42.826.526		- 42.826.526	16,99
Itochu Corporation Tokyo	-	23.844.967		- 23.844.967	9,46
Itochu Corporation İstanbul	-	8.274.638		- 8.274.638	3,28
Other	925.118		- 36.522.548	37.447.666	14,87
Total	135.459.435	74.946.131	41.594.434	252.000.000	100
31 December 2022
Shareholders				Group A Group B Group C Total Share Amount	Share (%)
AG Anadolu Grubu Holding A.Ş.	44.844.772	-	1.690.629	46.535.401	55,40
Isuzu Motors Ltd.	-	14.275.510	-	14.275.509	16,99
Itochu Corporation Tokyo	-	7.948.322	-	7.948.322	9,46
Itochu Corporation İstanbul	-	2.758.212	-	2.758.212	3,28
Other	308.373	-	12.174.182	12.482.556	14,87
Total	45.153.145	24.982.044	13.864.811	84.000.000	100,00

a) Privileges Granted to the Share Groups

The Company is directed by the 15 members of the Board of Directors elected among shareholders by General Assembly in accordance with the regulations of Turkish Commercial Code.

2 members of the Board of Directors are elected from the candidates nominated by the shareholders of Group B, the eight members of the Board of Directors are elected from the candidates nominated by the shareholders of Group A and 5 members are elected by the General Assembly from among the candidates to be nominated as independent board members.

Equity	31 December 2023	31 December 2022
Paid-in Capital	252.000.000	84.000.000
Capital Inflation Adjustment Difference	1.761.199.852	1.761.199.852
Restricted Reserves Appropriated from profit	318.248.329	274.542.226
Previous Year Profits	2.402.379.743	2.115.827.522
Gain / (Loss) on Revaluation and Measurement	1.964.884.654	1.290.185.946
(Losses) on Remeasurement of Defined Benefit Plans	(58.803.854)	(70.541.321)
Net Profit / (Loss) for The Period	1.614.217.374	784.307.983
Shareholders' Equity Attributable to Equity Holders of the Group	8.254.126.098	6.239.522.208
Total Shareholders' Equity	8.254.126.098	6.239.522.208

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 36 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 19- SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS(cont'd)

c) Restricted Reserves Appropriated from Profit

Restricted reserves appropriated from profit are comprised of legal reserves and other reserves. Restricted Reserves Appropriated from Profit 31 December 2023 31 December 2022 Legal Reserves 318.248.329 274.542.226 Total 318.248.329 274.542.226

According to the provisions of the Turkish Commercial Code, legal reserves consist of primary and secondary legal reserves. The first legal reserves are allocated at the rate of 5% of the legal period profit until it reaches 20% of the historical or registered Company capital. Secondary legal reserves are allocated at the rate of 10% of all dividend distributions exceeding 5% of the Company's capital. According to the Turkish Commercial Code, first and second legal reserves cannot be distributed unless they exceed 50% of the total capital. They can only be used to compensate the losses in case the voluntary reserves are exhausted.

Legal Reserves appropriated in accordance with the relevant article of the Turkish Commercial Code are carried at their statutory amounts. In this context, differences arising from inflation adjustments in the valuations made within the framework of TAS 29 and TFRS principles and not subject to profit distribution or capital increase as of the report date are associated with retained earnings / losses.

As of December 31, 2023, the fund items included in equity in the Group's financial statements prepared in accordance with the Tax Procedure Law are as follows:

	PPI Indexed Legal	CPI Indexed	Difference Recognized Profit/
	Records	Amounts	Loss in Retained Earnings
Inflation Adjustment to Share Capital	748.932.484	1.761.199.852	(1.012.267.368)
Restricted Reserves	465.813.665	318.248.329	147.565.336

d) Retained Earnings/Losses

The Group's prior years' income details as of period ends are as follows:

Retained Earnings/Losses	31 December 2023	31 December 2022
Extraordinary Reserves	129.274.233	198.679.317
Legal Reserves Inflation Difference	67.182.099	67.182.099
Retained Earnings / (Losses)	2.205.923.411	1.849.966.106
Total	2.402.379.743	2.115.827.522

As of December 31, 2022, the Group's retained earnings / losses before and after inflation accounting are as follows:

			31 December 2022 Amount Before Inflation
	1 January 2022	1 January 2022	Accounting (Excluding	31 December
	Amount Before Inflation	Amount After Inflation	2022 Net Profit/Loss for	2022 Amount After Inflation
	Accounting	Accounting	the Period)	Accounting
Prior Year Profit / Loss	244.459.551	2.178.573.785	211.459.551	2.900.135.506

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 37 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 19- SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS(cont'd)

Quoted companies make profit distributions as follows:

If the amount of profit distributions calculated in accordance with the net distributable profit requirements of the CMB does not exceed the statutory net distributable profit, the total amount of distributable profit should be distributed. However, no profit distribution would be made if any financial statements prepared in accordance with the CMB or any statutory accounts carrying net loss for the period. In accordance with the CMB's decision dated 27 January 2010, it is decided not to bring any obligation for any minimum profit distribution about dividend distribution which will be made for publicly owned companies.

Inflation adjustment on Equity; the carrying amount of extraordinary reserves could have been utilised in issuing bonus shares, cash dividend distribution and offsetting accumulated losses. However, equity inflation adjustment differences will be liable to corporate tax if it is used in cash profit distribution.

Group's retained earnings is TRY 2.402.379.743 based on the financial statements prepared in according with TAS/TFRS Financial Reporting Standard for the period ended 31 December 2023 (31 December 2022: TRY 2.115.827.522).

In accordance with the Communiqué No:XI-29 and related announcements of TAS/TFRS, effective from 1 January 2008, "Share Capital", "Restricted Reserves" and "Share Premiums" shall be carried at their statutory amount. The valuation differences (such as differences from inflation adjustment) shall be classified as follows:

• "the difference arising from the "Paid-in Capital" and not been transferred to capital yet, shall be classified under the "Capital Adjustment to Share Capital";

• the difference due to the inflation adjustment of "Restricted Reserves" and "Share Premium" and the amount has not been utilised in dividend distribution or capital increase yet, shall be classified under "Retained Earnings". Other equity items shall be carried at the amounts calculated based on CMB Financial Reporting Standards.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 38 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 20- REVENUE AND COST OF SALES

	1 January	1 January
	31 December 2023	31 December 2022
Domestic Sales	11.471.916.914	8.046.545.669
Foreign Sales	4.813.379.158	4.134.640.640
Other Income	47.796.019	56.190.096
Sales Total (Gross)	16.333.092.091	12.237.376.405
Sales Discounts (-)	(1.158.350.025)	(551.111.070)
Sales (Net)	15.174.742.066	11.686.265.335
Cost of Sales	(12.499.506.711)	(10.345.205.482)
Gross Operating Profit	2.675.235.355	1.341.059.853

Cost of sales are summarised as follows;

Cost of Sales	1 January	1 January
	31 December 2023	31 December 2022
Raw Materials and Supplies Expenses	(9.128.932.261)	(7.867.646.420)
Direct Labor Expenses	(621.319.289)	(371.832.670)
Depreciation and Amortization Expenses	(304.104.514)	(242.375.182)
Other Production Costs	(172.374.780)	(165.105.471)
Total Cost of Production	(10.226.730.844)	(8.646.959.743)
Change in Goods Inventory	24.018.030	82.639.977
Cost of Trade Goods Sold	(2.289.538.492)	(1.765.633.821)
Cost of Other Sales	(7.255.405)	(15.251.895)
Cost of Sales	(12.499.506.711)	(10.345.205.482)

NOTE 21- ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH AND DEVELOPMENT EXPENSES

a ) Research and Development Expenses

	1 January 31 December 2023	1 January 31 December 2022
Personnel Expenses	(89.064.868)	(34.878.743)
Outsourced Benefits and Services	(8.254.198)	(3.463.349)
Depreciation Expenses	(5.769.073)	(1.196.556)
Other	(12.900.476)	(5.799.276)
Total Research and Development Expenses	(115.988.615)	(45.337.924)

b)Marketing Expenses

	1 January 31 December 2023	1 January 31 December 2022
Personnel Expenses	(209.039.203)	(138.083.262)
Export Expense	(177.413.773)	(30.910.019)
Royalty Expenses	(173.595.842)	(97.537.616)
Transportation, Freight Expenses	(114.254.032)	(97.293.113)
Business and Service Expenses	(70.273.293)	(32.567.612)
Warranty Expense Provision	(46.968.974)	(38.822.817)
Travel Expenses	(25.528.521)	(35.556.909)
Insurance Expenses	(20.973.605)	(7.982.278)
Domestic Sales Expense	(12.769.582)	(70.380.128)
Advertisement Expenses	(12.687.562)	(13.945.360)
Depreciation Expenses	(10.344.841)	(7.657.888)
Maintenance and Repair Expenses	(8.304.176)	(2.183.506)
Representation-Hospitality Expenses	(3.837.219)	(4.525.230)
Consulting, Audit Expenses	(953.798)	(2.664.851)
Tax, Duties and Fee Expenses	(844.465)	(634.603)
Other	(58.972.682)	(42.353.161)
Total Marketing Expenses	(946.761.568)	(623.098.353)

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 39 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 21- ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH AND DEVELOPMENT EXPENSES (cont'd)

c) General Administrative Expenses	1 January 31 December 2023	1 January 31 December 2022
Personnel Expenses	(265.934.488)	(125.840.711)
Business and Service Expenses	(92.773.505)	(63.268.624)
Consulting, Audit Expenses	(55.603.563)	(42.666.349)
Depreciation Expenses	(45.830.138)	(41.046.524)
Insurance Expenses	(23.036.769)	(13.931.369)
Tax, Duties and Fee Expenses	(20.172.553)	(11.928.832)
Representation-Hospitality Expenses	(3.848.889)	(2.125.415)
Travel Expenses	(3.263.167)	(2.427.653)
Maintenance and Repair Expenses	(1.916.575)	(2.185.340)
Rent Expenses	-	(3.897.404)
Other	(42.343.257)	(31.025.372)
Total General Administrative Expenses	(554.722.904)	(340.343.593)

NOTE 22- EXPENSES BY NATURE

	1 January	1 January
	31 December 2023	31 December 2022
Direct Raw Material and Supplies Costs	(9.128.932.261)	(7.867.646.420)
Cost of Trade Goods Sold	(2.289.538.492)	(1.765.633.821)
Personnel Expenses	(1.185.357.848)	(670.635.386)
Depreciation And Amortisation Expenses	(366.048.566)	(292.276.150)
Change in Finished Goods and Semi-Finished Goods	24.018.030	82.639.977
Other	(1.171.120.661)	(840.433.552)
Total Expenses	(14.116.979.798)	(11.353.985.352)

Expenses by nature include cost of goods sold, marketing, selling and distribution expenses, general administration expenses and research and development expenses.

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

The Group's explanation regarding the fees for the services rendered by the independent audit firms, which is based on the KGK's letter dated August 19, 2021, the preparation principles of which are based on the Board Decision published in the Official Gazette on March 30, 2021, are as follows:

	2023	2022
Independent audit fee for the reporting period	1.236.637	257.556
Fee for other assurance services	852.318	207.005
Total	2.088.955	464.562

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 40 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 23- OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES

Other Income from Operating Activities:	1 January 31 December 2023	1 January 31 December 2022
Foreign Exchange Income on Trade Receivables and Payables	999.788.523	150.142.128
Discount Income on Trade Payables	6.186.322	6.764.485
Export D.F.I.F Support	6.147.020	3.553.485
Tubitak R&D Incentive	6.075.408	2.385.003
Sale Support Income	5.629.670	17.078.636
Service Income	4.171.758	6.098.549
Incentive Income	2.251.603	2.244.548
Delay Interest Income	753.767	597.880
Rent Income	735.989	1.307.172
Other Income	60.194.319	29.902.541
Total	1.091.934.379	220.074.427

Other Expense from Operating Activities:	1 January	1 January
	31 December 2023	31 December 2022
Foreign Exchange Expense on Trade Receivables and Payables	(1.254.698.164)	(527.244.692)
Donations and Contributions	(38.941.210)	(18.850.985)
Lawsuit Provisions	(27.505.754)	(46.453.546)
Other Expenses	(12.551.925)	(6.783.993)
Total	(1.333.697.053)	(599.333.216)

NOTE 24- INCOME AND EXPENSES FROM INVESTING ACTIVITIES

Income From Investing Activities	1 January 31 December 2023	1 January 31 December 2022
Gain on Sale of Machinery and Equipment	41.628.397	260.931
Currency Protected Deposit Fair Value Changes	5.660.476	33.207.184
Total	47.288.873	33.468.115

NOTE 25- FINANCE INCOME AND EXPENSES

Finance Income:	1 January 31 December 2023	1 January 31 December 2022
Foreign Exchange Gain	807.958.296	761.119.797
Interest Income	439.989.094	112.046.807
Total	1.247.947.390	873.166.604
Finance Expenses:	1 January 31 December 2023	1 January 31 December 2022
Foreign Exchange Losses	(1.016.922.890)	(716.352.106)
Interest Expense	(835.189.958)	(372.498.855)
Forward Purchase Expense	(24.589.774)	(10.730.278)
Letter of Guarantee Expenses	(7.824.676)	(8.874.971)
Expense from Derivative Transactions	(5.936.096)	(23.825.052)
Other Finance Expenses	(162.051.654)	(115.789.909)
Total	(2.052.515.048)	(1.248.071.171)

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 41 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 26- TAXATION ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)

The Group's tax expense (or income) is comprised of current period corporate tax expense and deferred tax expense (or income).

Account	1 January	1 January
	31 December 2023	31 December 2022
Current Income Tax Provision (-)	(73.041.163)	(2.327.562)
Deferred Tax Income / (Expense) (Income Statement)	(17.696.463)	51.121.535
Tax Income / (Expense) - Income Statement	(90.737.626)	48.793.973
Tax Income / (Expense) (Comprehensive Income Statement)	(95.745.492)	(156.001.857)
Total Tax Income / (Expense)	(186.483.118)	(107.207.884)
	31 December 2023	31 December 2022
Current Corporate Tax Provision	73.041.163	2.327.562
Less: Prepaid Taxes	(72.776.823)	(3.265.190)
Tax Payable	264.340	(937.628)

As of 31 December 2023, There is no amount of prepaid corporate tax exceeding the amount of corporate tax payable. (31 December 2022: TRY 937.628).

i) Provision for Current Period Tax

The Group is subjected to Corporate Tax in Turkey. Necessary provisions in supplementary financial statements have been made for estimated tax liabilities regarding Group's operations in the current period.

The corporate tax to be accrued over the taxable profit is calculated by adding non-deductible expenses to the accounting profit; deducting investment and research and development allowances, income that is not subjected to taxation and the dividends received, from companies located in Turkey, from the accounting profit.

Consolidation principle is not utilized to prepare financial statements related to tax that is effective in Turkey.

The effective tax rate in 2023 is 25% (2022: 23%).

Tax losses can be carried forward to offset against future taxable income for up to five years. However, tax losses cannot be carried back to offset profits from previous periods.

According to Corporate Tax Law's 24th article, the corporate tax is imposed by the taxpayer's tax returns. There is not an exact mutual agreement procedure with Tax Authorities in Turkey. Annual corporate tax returns are submitted to the relating tax offices until the 25th of April in the following year. Tax authorities have the right to audit tax declarations and accounting records for 5 years and may issue re-assessment based on their findings.

Income Withholding Tax:

In addition to corporate tax, companies should also calculate income withholding tax on any dividends and income distributed. The rate of income tax withholding is 15%.

ii) Deferred Tax

The deferred tax asset and tax liability are based on the temporary differences, which arise between the financial statements prepared according to TAS/TFRS's accounting standards and statutory tax financial statements. These differences are usually due to the recognition of revenue and expenses in different reporting periods for the TAS/TFRS standards and tax purposes.

Timing differences are result of recognizing certain income and expense items differently for accounting and tax purposes. Timing differences are calculated off of the tangible fixed assets (except land and buildings), intangible fixed assets, stocks, the revaluation of prepaid expenses, discount of receivables, provision for termination indemnities, and previous years' loss. Every accounting year, the Group reviews the deferred tax asset and liabilities, where the deferred tax assets cannot be used against the future taxable income, the Group writes-off the recorded deferred tax asset.

The Group applied for an R&D center in order to benefit from the incentives and exemptions provided within the framework of Law No. 5746 and as a result of the examination made by the Ministry of Industry and Trade, the Group was granted an R&D center certificate effective from June 3, 2009.

The Group realizes its fixed asset investments with incentives within the scope of "Decrees of the Council of Ministers on State Aids in Investments" numbered 2009/15199 and 2012/3305 which regulate the investment legislation.

The investment projects that the Group continues to benefit from the investment contribution amounts are explained in Note 13.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 42 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 26- TAXATION ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont'd)

ii) Deferred Tax (cont'd)

	31 December 2023		31 December 2022
	Cumulative Temporary Differences	Deferred Tax Assetes/(Liabilities)	Cumulative Temporary Differences	Deferred Tax Assetes/(Liabilities)
Inventories	(256.941.618)	(64.235.405)	(230.833.832)	(53.115.435)
Fixed Assets (Net)	(5.587.341.101)	(725.733.061)	(5.504.276.603)	(739.160.182)
Provision for Employment Termination Benefits	64.791.917	16.197.979	207.234.068	41.446.814
Guarantee Provisions	91.948.704	22.987.176	74.114.451	14.822.890
R&D Discount and Investment Incentive	499.177.434	293.468.657	1.122.517.018	347.933.242
Derivative Instruments	(53.627.867)	(13.406.967)	58.377.228	13.426.763
Rediscount Expenses/Income (Net)	(10.298.785)	(2.574.696)	(6.776.232)	(1.558.533)
TFRS 15 Revenue from Contracts with Customers	(218.632.018)	(54.658.004)	(118.180.011)	(27.181.402)
Employee Benefits	46.239.548	11.559.887	8.956.246	2.059.936
Extended Warranty Income	94.315.879	23.578.970	103.681.514	20.736.303
Dealer Premium Provisions	45.757.575	11.439.394	96.562.093	22.209.281
Lawsuit Provisions	63.889.061	15.972.265	60.530.583	12.106.116
Adjustments Related to Borrowings	(260.591.308)	(65.147.827)	(58.280.377)	(13.404.486)
Adjustments Related to Leases	136.486.624	34.121.656	3.322.677	664.536
Other (Net)	96.926.939	24.231.735	1.121.179	257.871
Total		(472.198.241)		(358.756.286)

	1 January	1 January
Movement of Deferred Tax Assets / (Liabilities):	31 December 2023	31 December 2022
Opening Balance	(358.756.286)	(253.875.964)
Deferred Tax (Expense) / Income Charged to Profit or Loss	(17.696.463)	51.121.535
Deferred Tax Income Charged to Comprehensive Income	(95.745.492)	(156.001.857)
Closing Balance	(472.198.241)	(358.756.286)

The reconciliation of the current tax expense with the period profit/loss is as follows:

	1 January	1 January 31 December 2022
Reconciliation of Tax Provision:	31 December 2023
Income / (Loss) from Continuing Operations	1.704.954.999	735.514.010
Corporate Tax Rate %25	(426.238.750)	(169.168.223)
Tax Effects of:
Impact of change in tax rate on deferred tax amount	-	32.355.698
-R&D Incentive	195.270.990	230.718.931
-R&D Support Income	1.248.663	111.978
-Incentive Support	179.110.622	163.703.561
-Non-deductible expenses	(91.445.571)	(24.519.323)
-Income Not Subject to Tax	29.057.421	13.022.722
-Earthquake Tax	(70.518.815)	-
-Donations and Aids	(8.784.968)	(1.923.123)
-Other	(30.636.281)	204.284
-Monetary Gain (Loss	132.199.063	(195.712.532)
Income/(Expense) on Tax Provision Recognised in Profit or Loss	(90.737.626)	48.793.973

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 43 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 27 - EARNINGS / (LOSS) PER SHARE

	1 January 31 December 2023	1 January 31 December 2022
Net Profit / (Loss) for The Period	1.614.217.374	784.307.983
Weighted Average Number of Shares with Nominal Value of 1 Piaster	25.200.000.000	8.400.000.000
Income Per 100 Share with Nominal Value of TRY 1 Each	6,4056	9,3370

NOTE 28- RELATED PARTY DISCLOSURES

a) Related Party Payable and Receivable Balances:

Group's receivables from related parties are mainly due to trade goods, service sales and rent income. Group's payables to related parties are mainly due to raw material, service purchases and rent expenses.

The Group does not charge interest on its trade receivables from related parties.

31 December 2023	Receivables		Payables
Balances with Related Parties	Trade	Non-Trade	Trade	Non-Trade
Itochu Corporation Tokyo (2)	-	-	2.007.122.680	-
Isuzu Motors Ltd. Tokyo (2)	6.948	-	63.078.932	-
Çelik Motor Ticaret A.Ş. (1)	10.302.837	-	-	-
Anadolu Motor Üretim ve Paz. A.Ş. (1)	8.800.929	-	-	-
Isuzu Motors Europe NV (1)	168.284	-	-	-
AEH Sigorta Acenteliği A.Ş. (1)	-	-	763.001	-
Oyex-Handels Gmbh (1)	83.231.787	-	-	-
AG Anadolu Grubu Holding A.Ş. (2)	-	-	12.514.526	-
Adel Kalemcilik Tic. ve San. A.Ş. (1)	-	-	402.044	-
Ortaklara Borçlar (*)	-	-	-	9.109
Isuzu Motors International Operation Thailand (1)	813.192	-	-	-
Anadolu Efes Biracılık ve Malt Sanayi A.Ş (1)	-	-	21.672	-
Garenta Ulaşım Çözümleri A.Ş (1)	-	-	245	-
Total	103.323.977	-	2.083.903.100	9.109

31 December 2022	Receivables		Payables
Balances with Related Parties	Trade	Non-Trade	Trade	Non-Trade
Itochu Corporation Tokyo (2)	67.936	-	1.864.969.088	-
Isuzu Motors Ltd. Tokyo (2)	19.789.241	-	55.200.168	-
Çelik Motor Ticaret A.Ş.(1)	3.945.384	-	-	-
Anadolu Motor Üretim ve Paz. A.Ş. (1)	3.623.867	-	-	-
Isuzu Motors Europe NV (1)	126.074	-	-	-
AEH Sigorta Acenteliği A.Ş.(1)	-	-	429.293	-
Oyex-Handels Gmbh (1)	161.487.656	-	-	-
AG Anadolu Grubu Holding A.Ş. (2)	-	-	1.027.995	-
Migros Ticaret A.Ş. (1)	-	-	4.829.093	-
Adel Kalemcilik Tic. ve San. A.Ş. (1)	-	-	139.261	-
Payables to Shareholders (*)	-	-	-	15.007
Isuzu Motors International Operation Thailand (1)	409.352	-	-	-
Total	189.449.510	-	1.926.594.898	15.007

(*) Non-Trade Payables to Shareholders balance is classified under other payables in balance sheet.

(1) Related Parties of Shareholders

(2) Shareholders

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 44 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 28- RELATED PARTY DISCLOSURES (cont'd)

b) Related Party Transactions:

1 January-31 December 2023

	Goods and	Fixed	Other	Total Income /
Sales to Related Parties	Services Sales	Assets Sales	Income	Sales
Isuzu Motors Ltd. Tokyo (2)	128.884.622	-	-	128.884.622
Çelik Motor Ticaret A.Ş. (1)	17.619.009	-	-	17.619.009
Anadolu Motor Üretim ve Paz. A.Ş. (1)	16.120.564	-	-	16.120.564
Isuzu Motors International Operation Thailand (1)	9.060.023	-	-	9.060.023
AEH Sigorta Acenteliği A.Ş. (1)	732.184			732.184
Isuzu Motors Europe NV (1)	3.149.165	-	-	3.149.165
AG Anadolu Grubu Holding A.Ş.(2)	32.174	-	-	32.174
Oyex-Handels Gmbh (1)	54.104.910	-	-	54.104.910
Garenta Ulaşım Çözümleri A.Ş (1)	1.472.693	-	-	1.472.693
Türkiye'nin Otomobil Girişimi Grubu (1)	279.890	-	-	279.890
Anadolu Efes Spor Kulübü (1)	370.798	-	-	370.798
Total	231.826.032	-	-	231.826.032

1 January-31 December 2022

	Goods and	Fixed	Other	Total Income/
Sales to Related Parties	Services Sales	Assets Sales	Income	Sales
Isuzu Motors Ltd. Tokyo (2)	174.892.074	-	-	174.892.074
Itochu Corporation Tokyo (2)	36.685.316	-	-	36.685.316
Çelik Motor Ticaret A.Ş. (1)	10.731.013	-	-	10.731.013
Anadolu Motor Üretim ve Paz. A.Ş. (1)	9.171.023	-	-	9.171.023
Isuzu Motors International Operation Thailand (1)	5.067.959	-	-	5.067.959
Türkiye'nin Otomobil Girişimi Grubu (1)	1.309.224	-	-	1.309.224
Isuzu Motors Europe NV (1)	1.245.761	-	-	1.245.761
Oyex-Handels Gmbh (1)	239.358.277	-	-	239.358.277
Total	478.460.647	-	-	478.460.647

1 January-31 December 2023

	Goods and	Fixed	Other	Total Income /
Purchases from Related Parties	Services Sales	Assets Sales	Income	Sales
Itochu Corporation Tokyo (2)	2.811.712.636	-	-	2.811.712.636
Isuzu Motors International Operation Thailand (1) 1.437.859.923		-	-	1.437.859.923
AG Anadolu Grubu Holding A.Ş. (2)	57.062.796	-	-	57.062.796
Isuzu Motors Ltd. Tokyo (2)	209.175.360	-	-	209.175.360
Isuzu Motors Europe NV (1)	207.656			207.656
Çelik Motor Ticaret A.Ş. (1)	1.300.182	-	-	1.300.182
Garenta Ulaşım Çözümleri A.Ş (1)	834.352			834.352
Adel Kalemcilik Tic. ve San. A.Ş. (1)	694.098	-	-	694.098
Anadolu Bilişim Hizmetleri A.Ş. (1)	77.234	-	-	77.234
Migros Ticaret A.Ş. (1)	3.521.307	-	-	3.521.307
Anadolu Efes Spor Kulübü (1)	59.119.949			59.119.949
Oyex-Handels Gmbh (1)	35.628.726	-	-	35.628.726
Anadolu Motor Üretim ve Paz. A.Ş. (1)	89.786	-	-	89.786
Anadolu Eğitim Sosyal Yardım Vakfı (1)	31.732.952	-	-	31.732.952
Anadolu Efes Biracılık ve Malt Sanayi A.Ş. (1)	67.051			67.051
Total	4.649.084.008	-	-	4.649.084.008

(1) Related Parties of Shareholders

(2) Shareholders

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 45 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 28- RELATED PARTY DISCLOSURES (cont'd)

b) Related Party Transactions: (cont'd)

1 January-31 December 2022

	Goods and	Fixed
	Services	Assets	Other	Total Expense/
Purchases from Related Parties	Purchases	Purchases	Expenses	Purchases
Itochu Corporation Tokyo (2)	2.537.865.058	-	-	2.537.865.058
Isuzu Motors International Operation Thailand (1) 1.257.877.252		-	-	1.257.877.252
AG Anadolu Grubu Holding A.Ş. (2)	34.557.640	-	-	34.557.640
Isuzu Motors Ltd. Tokyo (2)	114.214	-	119.321.592	119.435.806
Anadolu Efes Spor Kulübü (1)	18.323.001	-	-	18.323.001
Çelik Motor Ticaret A.Ş. (1)	847.227	-	-	847.227
Anadolu Efes Biracılık ve Malt Sanayi A.Ş. (1)	75.842	-	-	75.842
Adel Kalemcilik Tic. ve San. A.Ş. (1)	225.551	-	-	225.551
Anadolu Bilişim Hizmetleri A.Ş. (1)	81.231	-	-	81.231
Migros Ticaret A.Ş. (1)	4.413.010	-	-	4.413.010
Oyex-Handels Gmbh (1)	20.849.217	-	-	20.849.217
Anadolu Motor Üretim ve Paz. A.Ş. (1)	43.802	-	-	43.802
Anadolu Eğitim Sosyal Yardım Vakfı (1)	18.830.426	-	-	18.830.426
Total	3.894.103.471	-	119.321.592	4.013.425.063

(1) Related Parties of Shareholders

(2) Shareholders

c) Donations to Anadolu Eğitim ve Sosyal Yardım Vakfı:

As per the Main Articles of Association of the Group, at least 2% - 5% of the Group's profit before tax following the distribution of 1st dividend shall be donated to Anadolu Eğitim ve Sosyal Yardım Vakfı as long as it is subject to tax exemption. 31.732.952 TRY of donation made to Anadolu Eğitim ve Sosyal Yardım Vakfı by the Group in 2023 (31.12.2022: TRY 18.830.426).

d) Dividend Expense

1 January-31 Dividend Expense December 2023		1 January-31 December 2022
AG Anadolu Grubu Holding A.Ş. (1)	152.712.283	18.481.689
Isuzu Motors Ltd. Tokyo (1)	43.751.829	5.294.975
Itochu Corporation Tokyo (1)	24.360.161	2.948.138
Itochu Corporation İstanbul (1)	9.392.688	1.136.731
Total	230.216.961	27.861.533

(1) Shareholders

e) Benefits to Top Management:

	1 January	1 January
	31 December 2023	31 December 2022
Salaries and Other Short-Term Liabilities	146.660.883	50.394.282
Total	146.660.883	50.394.282

The benefits provided to top management (General managers and Directors) include salaries, bonuses, premiums, and the employer's share of social security. As of 31 December 2023, the Group has not provided any post-employment benefits to top management due to leaving the job. (December 31, 2022: Not available.)

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 46 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS

(a) Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing its profit and market value through the optimization of the debt and equity balance.

The Group's equity comprised of cash and cash equivalents in Note 4 and equity items in Note 19.

Risks, associated with each capital class, and the capital cost are evaluated by the top management. It is aimed that the capital structure will be set in balance by means of new borrowings or repaying the existing debts as well as dividend payments and new share issuances based on the top management evaluations.

The Group monitors capital by using debt to total capital ratio. This ratio is calculated by dividing the net debt by total capital. The net debt is calculated by excluding the cash and cash equivalent amounts from the total debt amount (including credits, leasing and commercial debts as indicated in the balance sheet).

31 December 2023	31 December 2022
5.332.741.322	4.100.911.101
8.254.126.098	6.239.522.208
0,65	0,66

General strategy of the Group based on shareholders' equity is not different from previous periods.

The Group conducts hedging contracts (including derivative financial instruments) for the purpose of diversifying foreign currency fluctuation risks.

(b) Price risk

The Group has no financial assets that will expose it to price risk.

(c) Market risk

The Group is subject to the financial risks related to the changes in the exchange rate (Please see (d) below) and interest rate (Please see (e) below) due to its operations and other (Please see (f) below). Also due to having financial instruments, the Group also bears the risk of other parties not meeting the requirements of agreements (Please see (g) below).

Market risks seen at the level of the Group are measured in accordance with sensitivity analyses.

The market risk of the Group incurred during the current year or the method of handling the encountered risks or the method of measuring those risks are not different from the previous year.

(d) Foreign exchange risk management

Foreign currency transactions may result in foreign currency risk.

The Group maintains foreign currency time deposit accounts in banks as the Group has receivables and payables in foreign currencies. As a consequence, the Group is exposed to foreign currency exchange risk due to the changes in exchange rates used for converting assets and liabilities into TRY. Foreign exchange risk arises from future trade operations and the differences between assets and liabilities.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 47 NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

(d) Foreign exchange risk management (cont'd)

Foreign Currency Position Sensitivity Analysis

31 December 2023

	Profit / Loss
	Appreciation of	Depreciation of
	Foreign	Foreign
	Currency	Currency
In case of US Dollar increases / decreases in 10% against TRY;
1 - USD denominated net asset / (liability)	(17.465.934)	17.465.934
2- USD denominated hedging instruments (-)	-	-
3- Net Effect of US Dollar (1 +2)	(17.465.934)	17.465.934
In case of Euro increases / decreases in 10% against TRY;
4- EURO denominated net asset / (liability)	57.175.682	(57.175.682)
5- EURO denominated hedging instruments (-)	-	-
6- Net Effect of Euro (4+5)	57.175.682	(57.175.682)
Increase / decrease in other foreign currencies by 10%:
7- Other foreign currency denominated net asset / (liability	(3.904.426)	3.904.426
8- Other foreign currency hedging instruments (-)	-	-
9- Net Effect of Other Exchange Rates (4+5)	(3.904.426)	3.904.426
TOTAL (3+6+9)	35.805.322	(35.805.322)

Statement of Foreign Exchange Rate Sensitivity Analysis

31 December 2022

	Profit / Loss
	Appreciation of	Depreciation
	Foreign	of Foreign
	Currency	Currency
In case of US Dollar increases / decreases in 10% against TRY;
1 - USD denominated net asset / (liability)	(126.913)	126.913
2- USD denominated hedging instruments (-)	-	-
3- Net Effect of US Dollar (1 +2)	(126.913)	126.913
In case of Euro increases / decreases in 10% against TRY;
4- EURO denominated net asset / (liability)	19.693.080	(19.693.080)
5- EURO denominated hedging instruments (-)	-	-
6- Net Effect of Euro (4+5)	19.693.080	(19.693.080)
Increase / decrease in other foreign currencies by 10%:
7- Other foreign currency denominated net asset / (liability	(21.243.931)	21.243.931
8- Other foreign currency hedging instruments (-)	-	-
9- Net Effect of Other Exchange Rates (4+5)	(21.243.931)	21.243.931
TOTAL (3+6+9)	(1.677.764)	1.677.764

(Amounts expressed in Turkish Lira unless otherwise indicated.)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

(d) Foreign exchange risk management (cont'd)

	Statement of Foreign Currency Position
	31 December 2023				31 December 2022
	TRY Amount	US Dollar	Euro	Yen	Other	TRY Amount	US Dollar	Euro	Yen	Other
1. Trade Receivables	1.696.856.992	39.137	51.938.616	-	593.059	485.378.844	344.461	23.328.107	81.093.010	608.059
2a. Monetary Financial Assets	252.301.695	104.120	7.548.557	9.833.799	35.000	143.543.759	2.019.682	3.581.552	242.626.628	4.352
2b. Non-monetary Financial Assets	-	-	-	-	-	-	-	-	-	-
3. Other	-	-	-	-	-	-	-	-	-	-
4. Current Assets (1+2+3)	1.949.158.687	143.257	59.487.173	9.833.799	628.059	628.922.603	2.364.143	26.909.659	323.719.638	612.411
5. Trade Receivables	-	-	-	-	-	-	-	-	-	-
6a. Monetary Financial Assets	-	-	-	-	-	-	-	-	-	-
6b. Non-monetary Financial Assets	-	-	-	-	-	-	-	-	-	-
7. Other	-	-	-	-	-	-	-	-	-	-
8. Non-current Assets (5+6+7)	-	-	-	-	-	-	-	-	-	-
9. Total Assets (4+8)	1.949.158.687	143.257	59.487.173	9.833.799	628.059	628.922.603	2.364.143	26.909.659	323.719.638	612.411
10. Trade Payables	2.071.254.285	492.749	61.046.589	309.391.144	-	1.466.507.524	4.932.017	55.803.103	1.825.504.968	1.505
11. Financial Liabilities	320.724.113	5.583.593	4.782.233	-	-	224.101.194	-	11.221.443	-	-
12a. Monetary Other Liabilities	708.039.769	-	21.697.314	-	-	12.800.041	-	11.586	88.364.203	-
12b. Non-Monetary Other Liabilities	498.267.169	-	15.269.000	-	-	58.708.640	-	2.939.724	-	-
13. Current Liabilities (10+11+12)	3.598.285.336	6.076.342	102.795.136	309.391.144	-	1.762.117.399	4.932.017	69.975.856	1.913.869.171	1.505
14. Trade Payable	-	-	-	-	-	-	-	-	-	-
15. Financial Liabilities	252.231.439	-	7.729.431	-	-	172.666.998	-	8.645.973	-	-
16a. Monetary Other Liabilities	-	-	-	-	-	-	-	-	-	-
16b. Non-Monetary Other Liabilities	-	-	-	-	-	-	-	-	-	-
17. Non-current Liabilities (14+15+16)	252.231.439	-	7.729.431	-	-	172.666.998	-	8.645.973	-	-
18. Total Liabilities (13+17)	3.850.516.775	6.076.342	110.524.567	309.391.144	-	1.934.784.397	4.932.017	78.621.829	1.913.869.171	1.505
19. Off-balance Sheet Derivative Instruments Net Asset /
(Liability) Position (19a-19b)	2.238.270.034	-	68.590.000	-	-	1.276.386.072	2.500.000	61.590.865	-	-
19.a. Total Amount of Hedged Assets	-	-	-	-	-	256.978.112	-	12.890.865	-	-
19.b. Total Amount of Hedged Liabilities	(2.238.270.034)	-	(68.590.000)	-	-	(1.019.407.960)	(2.500.000)	(48.700.000)	-	-
20.Net Foreign Currency Assets/(Liabilities) Position (9-18+19)	336.911.946	(5.933.085)	17.552.606	(299.557.345)	628.059	(29.475.722)	(67.874)	9.878.695	(1.590.149.533)	610.906
21.Monetary Items Net Foreign Currency Assets / (Liabilities)
(1+2a+5+6a-10-11-12a-14-15-16a)	(1.403.090.919)	(5.933.085)	(35.768.394)	(299.557.345)	628.059	(1.247.153.154)	(2.567.874)	(48.772.446)	(1.590.149.533)	610.906
22. Fair Value of Financial Instruments Used for Currency Hedge	53.627.866	-	1.646.345	-	-	(35.428.880)	-	(1.777.229)	-	-
23. Hedged Foreign Currency Assets	(2.238.270.034)	-	(68.590.000)	-	-	(1.276.386.072)	(2.500.000)	(61.590.865)	-	-
24. Hedged Foreign Currency Liabilities	-	-	-	-	-	-	-	-	-	-
25. Export	4.813.379.158	-	-	-	-	4.134.640.640	-	-	-	-
26. Import	5.660.142.911	-	-	-	-	4.741.403.178	-	-	-	-

Derivative contracts that explained in Note 9 .

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 49 NOTES TO THE AUDITED CONSOLIDATED STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

(e) Interest rate risk management

The Group is exposed to interest rate risk through floating and fixed interest rate financial instruments. The Group's fixed and floating interest rate financial liabilities are disclosed in Note 6 and fixed and floating interest rate assets (deposits etc.) are disclosed in Note 4.

	31 December 2023	31 December 2022
Financial Assets with Fixed Rates
Financial Assets	3.529.419.771	1.743.299.139
Financial Liabilities	(4.308.665.665)	(1.997.182.829)
Financial Liabilities With Variable Rates
Financial Liabilities	(626.755.053)	(1.296.575.930)

As of 31 December 2023, if the market interest rate had increased/decreased by 100 basis point with all other variables held constant, period income before tax and consolidated equity of participations of the Group would have been higher/lower by TRY 6.267.551 (31 December 2022: higher/lower by TRY 12.965.759).

(f) Funding risk

The ability to fund the existing and prospective debt requirements is managed as necessary by obtaining adequate committed funding lines from high quality lenders.

(g) Credit risk management

Holding financial instruments also carries the risk of the other party's not meeting the requirements of the agreement. The Group's collection risk is mainly derived from trade receivables. Trade receivables are evaluated by the management of the Group depending on their past experiences and current economic conditions and are presented in financial statements when necessary allowances for doubtful receivables are provided.

Most of trade receivables are comprised of receivables from costumers who has given an adequate amount of guarantees. An effective control system was established to collect the receivables. Credit risk arising from transactions is followed and these risks are taken into account when assessing each debtor. Because there are so many costumers. The Group's credit risk is dispersed and there is no important credit risk concentration. Receivables from foreign customers as of 31 December 2023 are TRY 1.549.820.637 and there is no geographical concentration (31 December 2022: TRY 860.792.798).

	Receivables
	Trade Receivables		Other Receivables
	Related		Related	Other
CURRENT PERIOD	Parties	Other Parties	Parties	Parties	Note	Deposit	Note
Maximum credit risk exposed as of balance sheet
date (A+B+C+D+E)	103.323.977	2.841.436.618	-	101.898.488	7-8	3.661.596.032	4
- Secured portion of the maximum credit risk by guarantees etc.	-	2.809.334.626	-	-		-
A. Net book value of financial assets which are undue or which
is not impaired	103.323.977	2.785.892.833	-	101.898.488	7-8	3.661.596.032	4
B. Book value of financial assets which conditions are
renegotiated, and which otherwise would be counted as
overdue or impaired	-	-	-	-		-
C. Net book value of assets, overdue but not impaired	-	55.543.785	-	-		-
- Secured by Guarantee, etc.	-	32.101.992	-	-		-
D. Net book value of assets decrease in value	-	-	-	-		-
- Overdue (gross book value)	-	(189.907)	-	-	7-8	-
- Impairment (-)	-	189.907	-	-	7-8	-
E. Elements containing credit risk off the balance sheet	-	-	-	-		-

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 50 NOTES TO THE AUDITED CONSOLIDATED STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

(g) Credit risk management (cont'd)

	Receivables
	Trade Receivables		Other Receivables
	Related		Related	Other
PRIOR PERIOD	Parties	Other Parties	Parties	Parties	Note	Deposit	Note
Maximum credit risk exposed as of balance sheet
date (A+B+C+D+E)	189.449.510	1.616.382.848	-	142.503.875	7-8	2.429.753.598
- Secured portion of the maximum credit risk by guarantees
etc.	-	1.602.348.953	-	-		-
A. Net book value of financial assets which are undue or
which is not impaired	189.449.510	1.602.348.953	-	142.503.875	7-8	2.429.753.598	4
B. Book value of financial assets which conditions are
renegotiated, and which otherwise would be counted as
overdue or impaired
C. Net book value of assets, overdue but not impaired	-	14.033.895	-	-	7-8	-
- Secured by Guarantee, etc.	-	14.033.895	-	-	7-8	-
D. Net book value of assets decrease in value	-	-	-	-		-
- Overdue (gross book value)	-	(790.976)	-	-	7-8	-
- Impairment (-)	-	790.976	-	-	7-8	-
- The part of net value secured by guarantee etc.	-	-	-	-		-
- Undue (gross book value)	-	-	-	-		-
- Impairment (-)	-	-	-	-		-
- The part of net value secured by guarantee etc.	-	-	-	-		-
E. Elements containing credit risk off the balance sheet	-	-	-	-		-

The aging of trade receivables, overdue but not impaired, is as follows:

Receivables
	Trade	Other	Deposits
31 December 2023	Receivables	Receivables	at Banks	Derivatives	Other
Past due up to 30 days	31.612.419	-	-	-	-
Past due 1 - 3 months	500	-	-	-	-
Past due 3 - 12 months	489.073	-	-	-	-
Past due 1 - 5 year	-	-	-	-	-
Past due over 5 years	-	-	-	-	-

Assets covered portion with guarantee letter etc. 32.101.992

	Receivables
	Trade	Other	Deposits
31 December 2022	Receivables	Receivables	at Banks	Derivatives	Other
Past due up to 30 days	13.364.835	-	-	-	-
Past due 1 - 3 months	669.060	-	-	-	-
Past due 3 - 12 months	-	-	-	-	-
Past due 1 - 5 year	-	-	-	-	-
Past due over 5 years	-	-	-	-	-
Assets covered portion with guarantee letter etc.	14.033.895

Liquidity risk tables

Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and having the availability and flexibility of funding through an adequate amount of (committed) credit facilities.

The risk of meeting existing and probable future liabilities is managed only by means of having access to sufficient number of trustable creditors.

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 51 NOTES TO THE AUDITED CONSOLIDATED STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

Liquidity risk tables (cont'd)

The table below indicates derivative and non-derivative financial liabilities of the Group in terms of TRY and maturity term.

Non-Derivative Financial Liabilities

31 December 2023

		Total
	Carrying	Contracted	Less than 3	3 to 12
Contract Terms	Value	Cash Outflows	Months	Months	1 to 5 Years	5 Years +
Bank Loans	4.935.420.718	5.636.014.510	2.464.472.435	2.536.176.984	606.665.131	28.699.960
Other Financial Liabilities	334.506.373	453.985.001	9.815.328	33.885.012	405.610.504	4.674.157
Trade Payables	3.727.714.393	3.772.229.371	3.287.252.417	484.976.954	-	-
Other Payables	40.809.924	40.809.924	40.809.924	-	-	-
Total	9.038.451.408	9.903.038.806	5.802.350.104	3.055.038.950	1.012.275.635	33.374.117

31 December 2022

		Total
	Carrying	Contracted	Less than 3	3 to 12
Contract Terms	Value	Cash Outflows	Months	Months	1 to 5 Years	5 Years +
Bank Loans	3.293.758.759	4.066.276.867	1.663.715.645	1.694.783.919	600.189.689	107.587.614
Other Financial Liabilities	30.686.761	34.789.512	3.361.946	9.643.422	21.784.144	-
Trade Payables	3.623.701.184	3.633.635.466	3.078.388.430	555.247.036	-	-
Other Payables	18.844.480	18.844.480	18.844.480	-	-	-
Total	6.966.991.184	7.753.546.325	4.764.310.501	2.259.674.377	621.973.833	107.587.614

Derivative Financial Liabilities

31 December 2023

		Total
	Carrying	Contracted	Less than 3	3 to 12
Contract Terms	Value	Cash Outflows	Months	Months	1 to 5 Years	5 Years +
Derivative Cash Inflows	86.807.663	86.807.663	86.807.663	-	-	-
Derivative Cash Outflow	33.179.796	33.179.796	33.179.796	-	-	-
Total	119.987.459	119.987.459	119.987.459	-	-	-

31 December 2022

		Total
	Carrying	Contracted	Less than 3	3 to 12
Contract Terms	Value	Cash Outflows	Months	Months	1 to 5 Years	5 Years +
Derivative Cash Inflows	7.975.949	7.975.950	5.951.384	2.024.566	-	-
Derivative Cash Outflow	66.353.178	66.353.178	10.288.729	56.064.449	-	-
Total	74.329.127	74.329.128	16.240.113	58.089.015	-	-

ANADOLU ISUZU OTOMOTİV SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARY Page No: 52 NOTES TO THE AUDITED CONSOLIDATED STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023

(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of December 31,2023, unless otherwise stated)

NOTE 29- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

Liquidity risk tables (cont'd)

Fair Value and Hedging Disclosures

Determination of the fair value of financial assets and liabilities are explained below:

Level 1: Valuation of the financial assets and liabilities over the stock exchange prices of similar assets and liabilities resulting from the transactions in active markets.

Level 2: Valuation of the financial assets and liabilities over the price calculated on the basis of the data that is directly or indirectly observable in the market other than the stock exchange price of the relevant asset or liability determined on the first level.

Level 3: Valuation of the financial assets and liabilities carried out in the absence of observable data in the market for determining the fair value of the relevant asset or liability.

Derivative Financial Instruments

In order to hedge these risks, the Group enters into forward foreign currency transaction agreements as a financial instrument where necessary.

As of 31 December 2023, the Group's foreign currency transaction agreement, which is a derivative financial instrument, is as follows:

31 December 2023

Financial assets carried at fair value	Level 1	Level 2	Level 3	Total
Derivative assets (Note 9)	-	86.807.663	-	86.807.663
Buildings (Note 11)	-	1.240.423.116	-	1.240.423.116
Land (Note 11)	-	4.475.308.882	-	4.475.308.882
Total	-	5.802.539.661	-	5.802.539.661

Financial liabilities carried at fair value	Level 1	Level 2	Level 3	Total
Derivative liabilities (Note 9)	-	33.179.796	-	33.179.796
Total	-	33.179.796	-	33.179.796

As of 31 December 2022, the Group's foreign currency transaction agreement, which is a derivative financial instrument, is as follows:

31 December 2022

Financial assets carried at fair value	Level 1	Level 2	Level 3	Total
Derivative assets (Note 9)	-	7.975.949	-	7.975.949
Buildings (Note 11)	-	1.029.823.181	-	1.029.823.181
Land (Note 11)	-	3.809.976.050	-	3.809.976.050
Total	-	4.847.775.180	-	4.847.775.180
Financial liabilities carried at fair value	Level 1	Level 2	Level 3	Total
Derivative liabilities (Note 9)	-	66.353.178	-	66.353.178
Total	-	66.353.178	-	66.353.178

NOTE 30- EVENTS AFTER REPORTING PERIOD

None.