ASELSAN ELEKTRONİK SANAYİ VE TİCARET A.Ş.

Interim / Quarterly Report • Aug 5, 2025

(Convenience Translation of Consolidated Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish)

ASELSAN ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S LIMITED REVIEW REPORT AS OF AND FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

5 August 2025

This report contains condensed consolidated interim financial information and related disclosures and footnotes comprising 45 pages.

1.	ORGANIZATION AND OPERATIONS OF THE GROUP 8
2.	BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS9
3.	CASH AND CASH EQUIVALENTS 19
4.	RELATED PARTY DISCLOSURES20
5.	TRADE RECEIVABLES AND PAYABLES24
6.	INVENTORIES 25
7.	PREPAID EXPENSES AND DEFERRED INCOME26
8.	PROPERTY, PLANT AND EQUIPMENT27
9.	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES28
10.	TAX29
11.	COMMITMENTS AND CONTINGENCIES 29
12.	EMPLOYEE BENEFITS 32
13.	SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS 33
14.	REVENUE AND COST OF SALES 35
15.	OTHER OPERATING INCOME AND EXPENSES 35
16.	FINANCIAL INCOME 35
17.	FINANCIAL EXPENSES36
18.	GAIN/(LOSS) ON NET MONETARY POSITION 36
19.	EARNINGS PER SHARE37
20.	FINANCIAL LIABILITIES 37
21.	FOREIGN EXCHANGE POSITION39
22.	EVENTS AFTER THE REPORTING PERIOD 45

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

	Note	Limited Reviewed 30 June	Audited 31 December
	References	2025	2024
ASSETS
Current Assets		121.482.901	123.813.187
Cash and Cash Equivalents	3	15.791.773	19.411.361
Trade Receivables	5	26.261.371	33.083.419
From Related Parties	4	12.997.106	14.752.564
From Third Parties		13.264.265	18.330.855
Other Receivables		2.863.248	2.899.869
From Related Parties	4	65.546	--
From Third Parties		2.797.702	2.899.869
Inventories	6	52.958.051	50.720.211
Prepaid Expenses	7	19.136.067	14.248.299
From Related Parties	4	2.700.991	2.231.128
From Third Parties		16.435.076	12.017.171
Other Current Assets		4.472.391	3.450.028
Non-Current Assets		168.789.404	159.468.382
Financial Investments		9.436.816	9.438.233
Trade Receivables	5	60.358.643	64.146.126
From Related Parties	4	39.558.197	46.833.667
From Third Parties		20.800.446	17.312.459
Other Receivables		14.835	13.882
From Third Parties		14.835	13.882
Equity Accounted Investments		1.304.504	1.554.406
Property, Plant and Equipment	8	45.717.452	43.646.625
Intangible Assets	8	29.546.259	25.471.543
Prepaid Expenses	7	4.039.994	4.362.079
From Related Parties	4	363.156	1.548.189
From Third Parties		3.676.838	2.813.890
Deferred Tax Assets	10	17.062.350	9.506.699
Other Non-Current Assets		1.308.551	1.328.789
TOTAL ASSETS		290.272.305	283.281.569

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

		Limited
		Reviewed	Audited
	Note	30 June	31 December
	References	2025	2024
LIABILITIES
Current Liabilities		90.697.997	81.393.408
Short-term Financial Liabilities	20	6.869.286	15.826.558
Short-term Portion of Long-term Financial Liabilities	20	29.809.309	10.816.622
Trade Payables	5	18.106.878	23.055.405
To Related Parties	4	1.705.594	2.868.574
To Third Parties		16.401.284	20.186.831
Employee Benefit Obligations		4.392.427	4.130.923
Other Payables		1.300.994	640.031
To Related Parties	4	1.070.000	397.108
To Third Parties		230.994	242.923
Government Grants and Incentives		66.034	77.045
Deferred Income	7	20.625.723	15.172.917
To Related Parties	4	7.586.341	7.080.115
To Third Parties		13.039.382	8.092.802
Short-term Provisions		9.438.279	11.633.121
For Employee Benefits	12	1.923.197	3.567.792
Other	9	7.515.082	8.065.329
Other Current Liabilities		89.067	40.786
Non-Current Liabilities		29.328.706	36.958.786
Long-term Financial Liabilities	20	154.463	11.348.585
Trade Payables	5	1.526	--
To Third Parties		1.526	--
Other Payables		16.532	22.519
To Third Parties		16.532	22.519
Deferred Income	7	21.703.400	13.800.786
To Related Parties	4	11.096.768	8.172.071
To Third Parties		10.606.632	5.628.715
Long-term Provisions		7.430.025	11.740.018
Long-term Provisions for Employee Benefits	12	1.121.409	1.226.663
Other	9	6.308.616	10.513.355
Other Non-Current Liabilities		22.760	46.878

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

		Limited
		Reviewed	Audited
	Note	30 June	31 December
	References	2025	2024
EQUITY		170.245.602	164.929.375
Equity Attributable to Equity Holders of the Parent		169.002.749	163.692.387
Share Capital	13	4.560.000	4.560.000
Inflation Adjustments on Share Capital Differences	13	28.994.442	28.994.442
Share Premiums		24.507.098	24.507.098
Other Comprehensive Income / (Expense) that will not be
Reclassified to Profit or (Loss)		3.851.815	3.870.059
Gain on Revaluation of Property, Plant and Equipment		5.360.663	5.360.663
Gain/ Loss on Remeasurement of Defined Benefit Plans		(1.508.848)	(1.490.604)
Other Cumulative Comprehensive Income / (Expense) will be
Reclassified to Profit/Loss		(714.000)	(707.862)
Gain (Loss) on Financial Assets That Fair Value Difference
Reflect in Other Comprehensive income		(571.582)	(571.582)
Cumulative Translation Adjustments		(142.418)	(136.280)
Restricted Reserves	13	6.465.357	5.925.157
Retained Earnings		94.933.293	78.693.837
Net Profit for the Year		6.404.744	17.849.656
Non-Controlling Interests		1.242.853	1.236.988
TOTAL LIABILITIES AND EQUITY		290.272.305	283.281.569

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS and OTHER COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

	Notes	Limited Reviewed 1 January- 30 June	Not Reviewed 1 April- 30 June	Limited Reviewed 1 January- 30 June	Not Reviewed 1 April 30 June
	References	2025	2025	2024	2024
PROFIT OR LOSS
Revenue Cost of Sales (-)	14 14	53.710.197 (36.522.229)	29.550.382 (19.593.547)	48.237.741 (32.829.000)	26.074.239 (17.078.747)
GROSS PROFIT		17.187.968	9.956.835	15.408.741	8.995.492
General Administrative Expenses (-)		(2.706.050)	(1.203.905)	(2.976.468)	(1.461.447)
Marketing Expenses (-)		(1.366.714)	(741.001)	(1.203.537)	(708.126)
Research and Development Expenses (-)		(1.894.009)	(1.000.548)	(1.394.576)	(956.509)
Other Operating Income	15	17.963.220	7.119.909	11.502.035	3.028.929
Other Operating Expenses (-)	15	(11.726.329)	(4.524.590)	(8.757.887)	(2.882.204)
OPERATING PROFIT		17.458.086	9.606.700	12.578.308	6.016.135
Income From Investing Activities		203.299	166.946	86.454	64.452
Shares of profit/(losses) of Equity Accounted
Investees		(207.584)	(100.732)	(27.700)	12.068
OPERATING PROFIT BEFORE FINANCIAL
EXPENSE		17.453.801	9.672.914	12.637.062	6.092.655
Financial Income	16	1.911.851	1.016.354	612.700	218.494
Financial Expense (-)	17	(7.765.129)	(4.272.848)	(4.330.479)	(1.660.603)
Monetary Gain/(Loss)	18	(13.985.853)	(6.537.937)	(10.229.591)	(5.180.134)
PROFIT BEFORE TAX FROM CONTINUING
OPERATIONS		(2.385.330)	(121.517)	(1.310.308)	(529.588)
Tax Income from Continuing Operations	10	8.795.939	4.270.477	6.234.173	3.639.682
- Current Corporate Tax Expense(-)		(112.242)	(19.274)	(17.752)	(10.635)
- Deferred Tax Income		8.908.181	4.289.751	6.251.925	3.650.317
PROFIT FOR THE PERIOD FROM CONTINUING
OPERATIONS		6.410.609	4.148.960	4.923.865	3.110.094
Profit for the Period Attributable to		6.410.609	4.148.960	4.923.865	3.110.094
Non-Controlling Interest		5.865	155.680	(206.487)	34.845
Owners of the Company	19	6.404.744	3.993.280	5.130.352	3.075.249
		6.410.609	4.148.960	4.923.865	3.110.094
Earnings for per 100 Shares (in full kuruş)	19	140,45	87,57	112,51	67,44

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS and OTHER COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

	Note References	Limited Reviewed 1 January- 30 June 2025	Not Reviewed 1 April- 30 June 2025	Limited Reviewed 1 January- 30 June 2024	Not Reviewed 1 April 30 June 2024
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS
Items that will not to be reclassified
subsequently in Profit or Loss		(18.244)	(18.244)	(12.970)	(12.970)
Loss on Remeasurement of Defined Benefit
Plans Deferred Tax Income / (Expense)	12	(24.325) 6.081	(24.325) 6.081	(17.293) 4.323	(17.293) 4.323
Items that may be reclassified subsequently to
profit or loss		(6.138)	(11.082)	(143.122)	(78.045)
Foreign Currency Exchange Differences		(6.138)	(11.082)	(143.122)	(78.045)
OTHER COMPREHENSIVE INCOME		(24.382)	(29.326)	(156.092)	(91.015)
TOTAL COMPREHENSIVE INCOME		6.386.227	4.119.634	4.767.773	3.019.079
Total Comprehensive Income Attributable to Non-Controlling Interest		5.865	155.680	(206.487)	34.845
Owners of the Company		6.380.362	3.963.954	4.974.260	2.984.234
		6.386.227	4.119.634	4.767.773	3.019.079

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

				Other Comprehensive Income / Expense that will not to be Reclassified Subsequently to Profit or Loss		Other Comprehensive Income / Expense that may not to be Reclassified Subsequently to Profit or Loss				Retained Earnings
		Inflation Adjustments	Share Issuance		Remeasurement	Gain (Loss) on Financial Assets That Fair Value Difference Reflect in Other				Net	Equity Attributable to	Non
	Share	on Share	Premiums/	Revaluation	of Defined	Comprehensi	Translation	Restricted	Retained	Profit/(Loss)	Owners of the	Controlling
	Capital	Capital	(Discounts)	Reserves	Benefit Plans	ve income	Reserves	Reserves	Earnings	for the Year	Company	Interests	Equity
Balance as of 1 January 2024	4.560.000	28.994.442	24.507.098	4.894.119	(1.186.850)	--	94.774	5.865.664	67.067.523	12.281.010	147.077.780	1.801.343	148.879.123
Transfers	--	--	--	--	--	--	--	68.875	11.523.385	(11.592.260)	--	--	--
Total Comprehensive Income	--	--	--	--	(12.970)	--	(143.122)	--	--	5.130.352	4.974.260	(206.487)	4.767.773
Dividends	--	--	--	--	--	--	--	--	--	(688.750)	(688.750)	--	(688.750)
Balance as of 30 June 2024 (Closing Balance)	4.560.000	28.994.442	24.507.098	4.894.119	(1.199.820)	--	(48.348)	5.934.539	78.590.908	5.130.352	151.363.290	1.594.856	152.958.146
Balance as of 1 January 2025	4.560.000	28.994.442	24.507.098	5.360.663	(1.490.604)	(571.582)	(136.280)	5.925.157	78.693.837	17.849.656	163.692.387	1.236.988	164.929.375
Transfers	--	--	--	--	--	--	--	540.200	16.239.456	(16.779.656)	--	--	--
Total Comprehensive Income	--	--	--	--	(18.244)	--	(6.138)	--	--	6.404.744	6.380.362	5.865	6.386.227
Dividends	--	--	--	--	--	--	--	--	--	(1.070.000)	(1.070.000)	--	(1.070.000)
Balance as of 30 June 2025
(Closing Balance)	4.560.000	28.994.442	24.507.098	5.360.663	(1.508.848)	(571.582)	(142.418)	6.465.357	94.933.293	6.404.744	169.002.749	1.242.853	170.245.602

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

		Limited Reviewed	Limited Reviewed
		1 January	1 January
	Note	30 June	30 June
	References	2025	2024
A.Cash Flows from Operating Activities		13.635.205	(2.564.611)
Profit for the Period		6.410.609	4.923.865
Adjustments to Reconcile Profit for the Period		2.321.452	2.892.834
- Adjustments for Depreciation and Amortization Expense	8	2.245.875	1.908.231
- Adjustments for Impairment Loss (Reversal of Impairment Loss)		132.964	(102.078)
Adjustments for Impairment Loss (Reversal of Impairment Loss) of Receivables	5	(1.347)	(12.553)
Adjustments for Impairment Loss (Reversal of Impairment Loss) of Inventories	6	134.311	(89.525)
- Adjustments for Provisions		(993.869)	1.565.769
Adjustments for (Reversal of) Provisions Related with Employee Benefits	12	(877.776)	(613.128)
Adjustments for (Reversal of) Lawsuit and/or Penalty Provisions		(1.859.871)	826.698
Adjustments for (Reversal of) Warranty Provisions		2.089.585	1.348.553
Adjustments for (Reversal of) Other Provisions		(345.807)	3.646
- Adjustments for Interest (Income) Expenses		(631.837)	(368.644)
Adjustments for Interest Income		(1.307.974)	(1.200.002)
Adjustments for Interest Expense		676.137	831.358
- Adjustments for Retained Profit of Equity Accounted Investees		207.584	27.700
- Adjustments for Tax (Income)/Expenses		(8.795.939)	(6.234.173)
- Other Adjustments for which Cash Effects are Investing or Financing Cash Flow		6.131.389	1.675.657
- Other Adjustments to Reconcile Profit (Loss)		4.025.285	4.420.372
Changes in Working Capital		7.210.400	(8.404.856)
- Decrease (Increase) in Trade Receivables		13.269.741	1.171.696
- Decrease (Increase) in Other Receivables Related with Operations		35.669	402.609
- Decrease (Increase) in Inventories	6	(2.098.393)	3.507.689
- Decrease (Increase) in Prepaid Expenses	7	(4.598.502)	(2.359.976)
- Increase (Decrease) in Trade Payables	5	(3.896.843)	(2.156.064)
- Increase (Decrease) in Employee Benefit Obligations	12	261.504	823.908
- Adjustments for Stage of Completion of Construction or Service Contracts in
Progress		890.195	(9.436.800)
- Increase (Decrease) in Other Operating Payables		(415.023)	(351.593)
- Increase (Decrease) in Government Grants and Subsidies		(11.011)	293
- Increase (Decrease) in Deferred Income		9.130.225	(3.532.300)
- Adjustments Related to Monetary Gain/ Losses		(4.637.011)	5.369.906
- Other Increase (Decrease) in Working Capital		(720.151)	(1.844.224)
Cash Flows From Operations		15.942.461	(588.157)
Payments Related with Provisions for Employee Benefits	12	(211.218)	(246.583)
Payments Related with Other Provisions		(1.983.796)	(1.719.032)
Income Taxes Refund (Paid)		(112.242)	(10.839)
B.Cash Flows From Investing Activities		(12.818.755)	(11.353.294)
Proceeds from Sales of Property, Plant, Equipment and Intangible Assets		153.170	329.940
Purchase of Property, Plant and Equipment	8	(4.173.430)	(2.526.100)
Purchase of Intangible Assets	8	(8.839.186)	(9.354.362)
Dividends Received		66.546	60.435
Other Cash Inflows (Outflows)		(25.855)	136.793
C.Cash Flows From Financing Activities		(1.927.200)	7.649.578
Proceeds from Borrowings		7.182.771	17.221.223
Repayments of Borrowings		(9.109.971)	(9.571.645)
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS BEFORE
EFFECT OF EXCHANGE RATE CHANGES (A+B+C)		(1.110.750)	(6.268.327)
D. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		265.258	(55.500)
E. MONETARY GAİN/LOSS EFFECT ON CASH AND CASH EQUİVALENTS		(2.774.096)	(2.208.003)
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D+E)		(3.619.588)	(8.531.830)
F.CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD		19.411.361	11.119.700
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D+E+F)	3	15.791.773	2.587.870

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

1. ORGANIZATION AND OPERATIONS OF THE GROUP

ASELSAN Elektronik Sanayi ve Ticaret Anonim Şirketi ("the Company") was established in order to engage principally in research, development, engineering, production, tests, assembly, integration and sales, after sales support, consultancy and trading activities, to provide and conduct all sorts of activities for project preparation, engineering, consultancy, service providing, training, contracting, construction, publishing, trading, operation and internet services regarding various software, equipment, system, tools, material and platforms in the fields of electrical, electronics, microwave, electro-optics, guidance, computer, data processing, encryption, security, mechanics, chemistry and related areas within the army, navy, air force and aerospace applications to all institutions, organizations, companies and individual consumers.

The Company was established at the end of 1975 as a corporation by Turkish Land Forces Foundation. The Company commenced its production activities in Macunköy Facilities in early 1979.

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

In addition to the Vice Presidencies above, the Company organization also includes five Vice Presidencies to fulfil the planning, monitoring and analyzing functions: Financial Management Vice Presidency, Corporate Management Vice Presidency, Technology and Strategy Management Vice Presidency, Business Development and Marketing Vice Presidency, Supply Chain Management Vice Presidency and Malatya Campus Directorate. In addition to these, there are also Legal Affairs and Office of the Private Secretary.

The Internal Audit Department and Board of Directors Planning and Coordination Management have been established under the Board of Directors.

The Company maintains production and engineering operations in Ankara, Macunköy, Akyurt and Gölbaşı campuses and engineering operations in Hacettepe Teknokent, Teknopark İstanbul, Aselsan Temelli Campus and Aselsan Malatya Campus. Headquarters is located in Ankara Macunköy.

Turkish Armed Forces Foundation ("TSKGV") is the main shareholder of the Company which holds 74,20 percent of the capital and maintains control of the Company. TSKGV was established on 17 June 1987 with the law number 3388, in order to manufacture or import guns, equipment and appliances needed for Turkish Armed Forces.

The Company is registered to Capital Markets Board of Türkiye ("CMB") and its shares have been quoted in Borsa İstanbul Anonim Şirketi ("BIST") since 1990. As of 30 June 2025, 25,80 percent of the Company's shares are publicly traded (31 December 2024: 25,80 percent) (Note 13).

The Company's trade registry address is Mehmet Akif Ersoy Mahallesi İstiklal Marşı Caddesi No:16 06200 Yenimahalle/Ankara. The average number of personnel employed by the Group as of 30 June 2025 is 13.508 (31 December 2024: 12.014).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

1. ORGANIZATION AND OPERATIONS OF THE GROUP (continued)

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

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

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1 The Basis of Presentation

Statement of Compliance to TFRS

The accompanying consolidated financial statements are prepared in accordance with the requirements of CMB Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets" ("Communiqué"), which were published in the Official Gazette No: 28676 on 13 June 2013 and in accordance with the Turkish Financial Reporting Standards ("TFRS") and Interpretations that have been put into effect by the Public Oversight Accounting and Auditing Standards Authority ("POA").

The consolidated financial statements has been presented with examples of Financial Statement by the POA. All reports have suited the TFRS formats. The consolidated financial statements are prepared according to historical cost accounting except for the revaluation of land and financial instruments. The consolidated condensed financial statements of the Group for the six months ended 30 June 2025 have been prepared in accordance with TAS 34 Interim Financial Reporting. The interim condensed financial statements do not contain all the information and explanations that should be included in the annual financial statements and should be read together with the annual consolidated financial statements of the Group as of 31 December 2024.

Approval of the Consolidated Financial Statements

These consolidated financial statements have been approved for issue by the Board of Directors with the resolution number 1276 on 5 August 2025. There is no authority other than General Assembly and legal entities has the right to amend the consolidated financial statements.

Functional Currency

The individual financial statements of each Group entity are presented in the currency of the primary economic environment ("Functional Currency") in which the entity operates. The Company's reporting currency is Turkish Lira (''TL''). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in TL, which is the functional, and presentation currency of the Company for the consolidated financial statements. Amounts are expressed in thousands of TL or Foreign Currency unless otherwise stated. Kuruş, Turkish Currency subunit and 1 TL is equal to 100 Kuruş.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.1 The Basis of Presentation (continued)

Preparation of Financial Statements in Hyperinflationary Periods

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

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

IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and that corresponding figures for previous periods be restated in the same terms using the general price index. One of the conditions that require the application of TAS 29 is a three-year cumulative inflation rate of approximately 100% or more. In Türkiye, based on the consumer price index ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"), the cumulative rate was 220% for the three-year period ended 30 June 2025 (31 December 2024: %291).

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

Period	Index	Correction Coefficient
30 June 2025	3.132,17	1
31 December 2024	2.684,55	1,16674
30 June 2024	2.319,29	1,35049
31 December 2023	1.859,38	1,68452

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

As of the balance sheet date, all items other than those stated in terms of current purchasing power are restated by using the relevant consumer price index coefficients. Prior year amounts are restated in the same way. Financial statements of previous reporting periods have been restated to reflect the current purchasing power of money at the latest balance sheet date. The current period restatement factor has been applied to the prior period financial statements.

Monetary assets and liabilities are not restated because they are expressed in terms of the purchasing power of money at the balance sheet date. Monetary items are cash and items to be received or paid in cash.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.2 The Basis of Presentation (continued)

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

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

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

All items presented in the statement of cash flows are restated for the effects of inflation in the measuring unit current at the end of the reporting period.

The effect of inflation on cash flows from operating, investing and financial activities is attributed to the related item and the monetary gain or loss on cash and cash equivalents is presented separately.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

Group's proportion of

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.1 The Basis of Presentation (continued)

Basis of Consolidation

Subsidiaries:

The details of the subsidiaries of the Group are as follows:

			ownership and voting power held (%)
		Functional	30 June	31 December
Subsidiaries	Location	Currency	2025	2024	Main Activity
ASELSANNET	Türkiye	TL	100	100	Communication systems
ASELSAN Baku	Azerbaijan	AZN	100	100	Marketing and sales of the group products
ASELSAN Global	Türkiye	TL	100	100	Export
ASELSAN Sivas Hassas Optik	Türkiye	TL	80	80	Sensitive optic technologies
MKR-IC	Türkiye	TL	85	85	Microelectronic R&D projects
ASELSAN Malaysia	Malaysia	MYR	100	100	Remote controlled weapon systems
ASELSAN Konya	Türkiye	TL	51	51	Weapon and weapon systems
BITES	Türkiye	TL	100	100	Defense, Aerospace, Space Technologies, Software
ASELSAN Ukraine	Ukraine	UAH	100	100	Marketing and sales of the group products
ASELSAN Latin Amerika	Chile	CLP	100	100	Marketing and business development
ASELSAN UAE	BAE	AED	100	100	Marketing and business development

The consolidated financial statements include the financial statements of the Company and its subsidiaries. Control is achieved when the Company:

• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns

The Company reassesses whether or not it controls an investee when if facts and circumstances arise there are changes to one or more of the three elements of control listed above.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.2 The Basis of Presentation (continued)

Basis of Consolidation (continued)

Subsidiaries (continued):

Even though the Company has voting rights less than a majority, if it has ability to manage the operation of the investee unintentionally, then the Group assess that it has control over that investee.

The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

• comparison of voting rights of the Group and the others,
• potential voting rights held by the Group, and others,
• rights arising from contractual arrangements; and
• any additional facts and circumstances that indicate the Group has, or does have, the current ability to direct the relevant activities at the time that decisions need to be made (including voting patterns at previous shareholders' meeting).

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Each item of profit or loss and other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to align with the Group accounting policies and the Group's accounting policies.

All intragroup balances, equity, income and expenses, profits and losses and cash flows relating to transactions between members of the Group are eliminated during consolidation.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.1 The Basis of Presentation (continued)

Basis of Consolidation (continued)

Joint Ventures

The details of the Group's interests in joint ventures as of 30 June 2025 and 31 December 2024 are as follows:

			Group's proportion of ownership and voting power held (%)
		Country of establishment	30 June 2025	31 December 2024
Joint Ventures ASELSAN Bikent Mikro Nano Teknolojileri Sanayi ve Ticaret Anonim Şirketi (''ASELSAN Bilkent Mikro Nano'') International Golden Group	Principal Activity Production of micro and nano sized devices which contains semi-conductive and similar technological materials	and operation Türkiye	50	50
("IGG") ASELSAN Integrated Systems LLC ("IGG ASELSAN Integrated Systems ")	Manufacturing, testing, maintenance-repair and marketing of remote control system	United Arab Emirates	49	49
Kazakhstan ASELSAN Engineering LLP ("ASELSAN Kazakhstan Engineering")	Manufacturing, development and maintenance repair of electronic devices and systems	Kazakhstan	49	49
ASELSAN Middle East PSC ("ASELSAN Middle East")	Production, sales and technical maintenance service of electronic and electro-optic devices and systems	Jordan	49	49
TÜYAR Mikroelektronik Sanayi ve Ticaret Anonim Şirketi ("TÜYAR Mikroelektronik Sanayi")	Production of micro and nano-sized devices containing semiconductor	Türkiye	51	51
BARQ QSTP LLC. ("BARQ QSTP LLC.")	Command and control systems, thermal and night vision camera, crypto, remote-controlled weapon systems	Qatar	48	48
Teknohab Teknoloji Geliştirme Bölgesi Yönetici Anonim Şirketi ("TEKNOHAB Teknoloji Geliştirme Bölgesi")	Manage and operate the technology development zone	Türkiye	13	13
EHSİM Elektronik Harp Sistemleri Müh. Tic. Anonim Şirketi ("EHSİM")	Electronic warfare systems, tactical command and control systems & decoy target systems	Türkiye	50	50
TR Eğitim ve Teknoloji Anonim Şirketi ("TR Eğitim ve Teknoloji")	Human Resources Studies, consultancy and training activities, certification activities, training software activities, publishing activities	Türkiye	35	35
İstanbul Finans ve Teknoloji Üssü Anonim Şirketi ("İstanbul Finans ve Teknoloji Üssü")	To establish infrastructure activities for the development of the financial technology ecosystem	Türkiye	44	44
Adıyaman Kablo ve Konnektör Anonim Şirketi ("Adıyaman Kablo ve Konnektör")	Production, design and sale of cables, connectors, cabling and similar products and technologies	Türkiye	15	15
ULAK Haberleşme A.Ş. ("ULAK")	Design, development and engineering activities of broadband communication devices and mobile communication systems	Türkiye	51	51

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

• (Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)
• 2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.1 The Basis of Presentation (continued)

Basis of Consolidation (continued)

Joint Ventures (continued):

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The Group's joint ventures; EHSİM established in 1998, IGG ASELSAN Integrated Systems and ASELSAN Kazakhstan Engineering established in 2011, ASELSAN Middle East established in 2012 and ASELSAN Bilkent Mikro Nano established in 2014, TÜYAR Mikroelektronik Sanayi and ULAK established in 2017, TEKNOHAB Teknoloji Geliştirme Bölgesi established in 2018, TR Eğitim ve Teknoloji established in 2019, İstanbul Finans ve Teknoloji Üssü established in 2022, and Adıyaman Kablo ve Konnektör established in 2024 were included in the condensed consolidated financial statements by using the equity method. Since BARQ QSTP LLC is at micro level, there is no material consolidation effect on the Group's financial statements.

2.2 Comparative Information and Restatement of Prior Period Consolidated Financial Statements

In order to determine the financial position and performance trends, the Group's consolidated financial statements are presented comparatively with the corresponding figures. For the purpose of having consistency with the current term's presentation of consolidated financial statements, comparative information is reclassified and significant differences are explained if necessary.

2.3 Accounting Policies, Changes in Accounting Estimates and Errors

Significant changes in accounting policies and errors are applied retrospectively and prior period financial statements are restated, changes in accounting estimates are reflected to the financial in current period profit/loss.

When change in estimate in accounting policies are related with only one period, changes are applied on the current period but if the estimated changes are for the following periods, changes are applied both on the current and following periods prospectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.4 New and Revised Turkish Accounting Standards

The accounting policies adopted in preparation of the consolidated financial statements as at 30 June 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of 1 January 2025 and thereafter. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.

a) The new standards, amendments and interpretations which are effective as at 1 January 2025 are as follows:

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. The Group assessed that there is no impact on its consolidated financial statements resulting from the amendments of IAS 21.

b) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by POA

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

IFRS 18 Presentation and Disclosure in Financial Statements;

Effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

• The structure of the statement of profit or loss;
• Required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management defined performance measures); and
• Enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

IFRS 19 Subsidiaries without Public Accountability: Disclosures;

Effective from annual periods beginning on or after 1 January 2027. Earlier application is permitted. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:

• It does not have public accountability; and
• It has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.) 2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.4 New and Revised Turkish Accounting Standards (continued)

Amendments to the Classification and Measurement of Financial Instruments

Amendments to the Classification and Measurement of Financial Instruments was issued in May 2024 in response to feedback received as part of the post-implementation review of the classification and measurement requirements in IFRS 9 Financial Instruments and related requirements in IFRS 7 Financial Instruments: Disclosures. effective from 1 January 2026.

The amendments specify:

• when a financial liability settled using an electronic payment system can be deemed to be discharged before the settlement date;
• how to assess the contractual cash flow characteristics of financial assets with contingent features when the nature of the contingent event does not relate directly to changes in basic lending risks and costs; and
• new or amended disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features that do not relate directly to basic lending risks and costs.

Annual Improvements to IFRS Accounting Standards—Volume 11

Annual Improvements to IFRS Accounting Standards—Volume 11 contains the following amendments effective from 1 January 2026::

IFRS 1 First-time Adoption of International Financial Reporting Standards

• Hedge accounting by a first-time adopter

IFRS 7 Financial Instruments: Disclosures

• Gain or loss on derecognition

Guidance on implementing IFRS 7 Financial Instruments: Disclosures

• Introduction
• Disclosure of deferred difference between fair value and transaction price
• Credit risk disclosures

IFRS 9 Financial Instruments

• Derecognition of lease liabilities
• Transaction price

IFRS 10 Consolidated Financial Statements

• Determination of a 'de facto agent'

IAS 7 Statement of Cash Flows

• Cost method

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.) 2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.4 New and Revised Turkish Accounting Standards (continued)

Contracts Referencing Nature-dependent Electricity

Contracts Referencing Nature-dependent Electricity amends IFRS 9 Financial Instruments and IFRS 7 Financial Instruments effective from 1 January 2026: Disclosures to more faithfully reflect the effects of contracts referencing nature-dependent electricity on an entity's financial statements.

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to IFRS 10 and IAS 28

In December 2015, the IASB decided to defer the effective date of the amendments until such time as it has finalised any amendments that result from its research project on the equity method. Early application of the amendments is still permitted.

The amendments address the conflict between IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that a full gain or loss is recognised when a transfer to an associate or joint venture involves a business as defined in IFRS 3 Business combinations. Any gain or loss resulting from the sale or contribution of assets that does not constitute a business, however, is recognised only to the extent of unrelated investors' interests in the associate or joint venture.

The amendments must be applied prospectively. Early application is permitted and must be disclosed.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

3. CASH AND CASH EQUIVALENTS

	30 June	31 December
	2025	2024
Cash	1.531	1.241
Bank
- Time deposit	14.356.789	18.010.502
- Demand deposit	1.330.624	1.225.264
Other	102.829	174.354
Cash and cash equivalents on the cash flow statement	15.791.773	19.411.361
Interest income accruals	--	--
	15.791.773	19.411.361

As of 30 June 2025, the Group has time deposits denominated in foreign currencies with maturities on July 2025 (31 December 2024: January 2025), with the interest rates between 1,75 percent and 3,50 percent (31 December 2024: 0,50 percent and 3 percent) amounting to TL 3.109.275 (31 December 2024: TL 2.185.408) in several banks.

As of 30 June 2025, the Group has time deposits denominated in TL terms with maturities on July 2025 (31 December 2024: January 2025) with the interest rates between 46,50 percent and 47,50 percent (31 December 2024: 48,50 percent and 49,25 percent) amounting to TL 11.247.514 (31 December 2024: TL 15.825.094) in several banks.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025 (Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

4. RELATED PARTY DISCLOSURES

Transactions between the Company and its subsidiaries which are related parties of the Company have been eliminated on consolidation, therefore have not been disclosed in this note.

The trade receivables from related parties generally arise from sales activities with maturitiy of 1 year.

The trade payables to related parties generally arise from the purchase activities with maturities of 1-4 months.

Total amount of salaries and other short-term benefits paid for key management for the period ended 30 June 2025 is approximately TL 247.673 (The vast majority consists of paid wages and benefits.) (30 June 2024: TL 184.532).

The details of transactions between the Group and other related parties are disclosed in the following pages.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

4. RELATED PARTY DISCLOSURES (continued)

	30 June 2025
	Receivables				Payables
		Short-term		Long-term			Short-term		Long-term
		Prepaid	Other		Prepaid		Deferred	Other		Deferred
Balances with related parties	Trading	Expenses	Receivables	Trading	Expenses	Trading	Income	Payables 1	Trading	Income
Main shareholder
TSKGV	21	---	--	--	--	--	--	793.425	--	--
Main shareholder's subsidiaries and associates
Hava Elektronik San. ve Tic. Anonim Şirketi (''HAVELSAN'')	22.604	680.661	--	5.091	142.466	433.918	53.751	--	--	1.262.212
HAVELSAN Teknoloji Radar San. ve Tic. Anonim Şirketi ("HTR")	62.569	285.188	--	--	52.247	431.910	--	--	--	--
İşbir Elektrik Sanayii Anonim Şirketi ("İŞBİR")	--	185.647	--	--	38.059	159.055	--	--	--	--
NETAŞ Telekomünikasyon Anonim Şirketi ("NETAŞ")	--	9.657	--	--	--	112.058	--	--	--	--
Savunma Teknolojileri Mühendislik ve Ticaret Anonim Şirketi
("STM")	132.695	10.892	--	1.307.076	--	23.007	17.169	--	--	912.551
Tusaş Motor Sanayii Anonim Şirketi ("TEI")	79.693	--	--	--	--	--	24.451	--	--	1.273
Türk Havacılık ve Uzay Sanayi ve Ticaret Anonim Şirketi ("TUSAŞ")	4.604.963	--	--	4.954.944	--	577	407.467	--	--	732.946
Financial Instruments
ASPİLSAN Enerji Sanayi ve Ticaret Anonim Şirketi ("ASPİLSAN")	--	59.781	--	--	--	24.818	--	--	--	--
Roket Sanayi ve Ticaret Anonim Şirketi ("ROKETSAN")	4.511.383	871	65.546	502.402	14.903	126.857	678.125	--	--	387.878
Joint ventures and its related parties
ASELSAN Bilkent Mikro Nano	--	401.201	--	--	53.442	39.121	--	--	--	--
İhsan Doğramacı Bilkent Üniversitesi	--	6.392	--	--	--	11.100	--	--	--	--
IGG	24.450	--	--	3.038	--	--	2.723	--	--	--
IGG ASELSAN Integrated Systems	6.844	45.971	--	--	3.627	30.104	2.102	--	--	--
Kazakhstan ASELSAN Engineering	345.575	--	--	60.474	--	325	12.840	--	--	25
ASELSAN Middle East	117.332	--	--	--	--	3.700	11.635	--	--	5.513
TÜBİTAK BİLGEM	--	92.695	--	--	14.366	177.460	--	--	--	--
TÜBİTAK-UME	--	5.438	--	--	--	3	--	--	--	--
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA	--	53.175	--	371.820	1.029	31.540	1.916	--	--	14.353
TÜBİTAK SAGE Savunma Sanayii	116.730	631.036	--	6.540	34.143	53.109	1.979	--	--	--
Savunma Sanayi Başkanlığı ("SSB")	1.951.013	--	--	32.346.812	--	--	5.946.789	--	--	7.343.942
SSTEK	2	--	--	--	--	--	425.394	--	--	436.075
EHSİM	568	98.370	--	--	350	42.163	--	--	--	--
ULAK	1.020.664	2.374	--	--	--	--	--	--	--	--
TÜYAR Mikroelektronik Sanayi	--	131.642	--	--	8.524	3.019	--	--	--	--
TR Eğitim ve Teknoloji	--	--	--	--	--	1.750	--	--	--	--
Shares offered to the public	--	--	--	--	--	--	--	276.575	--	--
	12.997.106	2.700.991	65.546	39.558.197	363.156	1.705.594	7.586.341	1.070.000	--	11.096.768

¹ All other short term payable is 2024 divident payments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

4. RELATED PARTY DISCLOSURES (continued)

	31 December 2024
	Receivables			Payables
		Short-term		Long-term			Short-term		Long-term
		Prepaid	Other		Prepaid		Deferred			Deferred
Balances with related parties	Trading	Expenses	Receivables	Trading	Expenses	Trading	Income	Other Payables1	Trading	Income
Main shareholder
TSKGV	--	--	--	--	--	--	--	397.108	--	--
Main shareholder's subsidiaries and associates
Hava Elektronik San. ve Tic. Anonim Şirketi (''HAVELSAN'')	60.562	630.873	--	17.289	241.646	986.794	7	--	--	750.781
HAVELSAN Teknoloji Radar San. ve Tic. Anonim Şirketi ("HTR")	48.054	260.533	--	--	60.128	615.046	13.827	--	--	--
İşbir Elektrik Sanayii Anonim Şirketi ("İŞBİR")	--	218.659	--	--	49.119	90.138	--	--	--	--
NETAŞ Telekomünikasyon Anonim Şirketi ("NETAŞ")	--	9.572	--	--	21.616	49.363	--	--	--	--
Savunma Teknolojileri Mühendislik ve Ticaret Anonim Şirketi
("STM")	160.799	24.181	--	870.189	--	21.375	--	--	--	737.535
Tusaş Motor Sanayii Anonim Şirketi ("TEI")	51.165	--	--	--	--	--	--	--	--	--
Türk Havacılık ve Uzay Sanayi ve Ticaret Anonim Şirketi ("TUSAŞ")	4.708.649	--	--	2.696.086	--	16.491	419.106	--	--	--
Financial Instruments
ASPİLSAN Enerji Sanayi ve Ticaret Anonim Şirketi ("ASPİLSAN")	--	27.729	--	--	5.631	22.359	5.480	--	--	--
Roket Sanayi ve Ticaret Anonim Şirketi ("ROKETSAN")	4.375.873	87.565	--	458.873	969.388	542.150	602.414	--	--	306.439
Joint ventures and its related parties
ASELSAN Bilkent Mikro Nano	--	286.945	--	--	85.734	102.958	--	--	--	--
İhsan Doğramacı Bilkent Üniversitesi	--	7.259	--	--	--	43	--	--	--	--
IGG	25.283	--	--	3.545	--	--	2.723	--	--	--
IGG ASELSAN Integrated Systems	7.077	42.446	--	--	4.232	28.266	--	--	--	--
Kazakhstan ASELSAN Engineering	348.419	--	--	69.633	--	336	1.612	--	--	--
ASELSAN Middle East	143.568	--	--	--	--	30.402	406	--	--	6.432
TÜBİTAK BİLGEM	--	99.113	--	--	16.202	117.715	--	--	--	--
TÜBİTAK-UME	--	2.910	--	--	--	4	--	--	--	--
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA	11.502	53.200	--	359.294	1.497	4.351	6.435	--	--	16.095
TÜBİTAK SAGE Savunma Sanayii	35.034	229.316	--	11.326	89.921	180.359	1.190	--	--	--
Savunma Sanayi Başkanlığı ("SSB")	3.688.397	--	--	42.347.432	--	--	5.561.629	--	--	6.335.572
SSTEK	4	--	--	--	--	--	465.286	--	--	19.217
ULAK	1.088.178	2.769	--	--	--	3.810	--	--	--	--
TÜYAR Mikroelektronik Sanayi	--	60.820	--	--	--	--	--	--	--	--
EHSİM	--	187.238	--	--	3.075	56.614	--	--	--	--
	14.752.564	2.231.128	--	46.833.667	1.548.189	2.868.574	7.080.115	397.108	--	8.172.071

¹ All other short term payable is 2023 divident payments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

4. RELATED PARTY DISCLOSURES (continued)

	1 January 30 June	1 April 30 June	1 January 30 June	1 April 30 June
	2025	2025	2024	2024
Transactions with related parties	Purchases	Purchases	Purchases	Purchases
Main Shareholder
TSKGV	1.495	722	1.261	601
Main shareholder's shareholders/subsidiaries/associates
NETAŞ	98.828	46.164	125.488	82.551
İŞBİR	252.516	103.512	142.162	76.007
HTR	660.676	323.814	584.751	323.902
TUSAŞ	1.293	478	477	131
HAVELSAN	392.828	314.738	86.738	73.834
STM	34.079	12.630	8.204	3.831
Financial Investments
ROKETSAN	1.630	1.630	246	246
ASPİLSAN	70.425	32.029	116.501	61.319
Joint ventures and its related parties
İHSAN DOĞRAMACI BİLKENT ÜNİVERSİTESİ	12.940	60	1.820	1.033
TÜBİTAK BİLGEM	123.659	105.897	111.914	1.363
TÜBİTAK-UME	1.960	1.960	1.055	330
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA	31.099	23.732	3.492	--
DASAL	--	--	3.375	3.375
TÜBİTAK SAGE SAVUNMA SANAYİİ	160.134	49.961	272.064	98.810
TÜYAR	4.803	4.803	--	--
ULAK	8.711	8.711	--	--
SSTEK	496	496	--	--
	1.857.572	1.031.337	1.459.548	727.333

	1 January	1 April	1 January	1 April
	30 June	30 June	30 June	30 June
	2025	2025	2024	2024
Transactions with related parties	Sales	Sales	Sales	Sales
Main Shareholder
TSKGV	318	138	288	222
Main shareholder's shareholders/subsidiaries /associates
TUSAŞ	8.648.231	4.724.540	10.557.381	5.770.483
STM	875.722	713.485	3.515.286	1.421.986
HAVELSAN	155.049	98.308	49.075	33.997
HTR	99.376	91.925	23.281	7.784
Financial Investments
ROKETSAN	2.543.999	1.394.996	1.826.470	971.255
ASPİLSAN	1.828	1.826	154	--
Joint ventures and its related parties
TÜBİTAK BİLİMSEL TEKNOLOJİK ARAŞTIRMA	27.028	16.443	100.547	56.340
TÜBİTAK SAGE SAVUNMA SANAYİİ	148.267	144.323	43.942	--
SAVUNMA SANAYİİ BAŞKANLIĞI	19.964.596	8.862.355	46.613.713	28.981.592
ULAK	51.946	51.946	--	--
SSTEK	9.137	9.137	53.111	37.001
	32.525.497	16.109.422	62.783.248	37.280.660

Transactions with related parties are generally related to the purchases and sales of goods and services related to projects under TFRS 15 "Revenue from Contracts with Customers".

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

4. TRADE RECEIVABLES AND PAYABLES

a) Trade receivables

Details of the Group's trade receivables are as follows:

	30 June	31 December
Short-term trade receivables	2025	2024
Trade receivables	13.214.090	18.273.476
Trade receivables from related parties (Note 4)	12.997.106	14.752.564
Notes receivable	26.648	47.464
Other receivables	23.527	9.915
Doubtful trade receivables	36.328	37.675
Allowance for doubtful trade receivables (-)	(36.328)	(37.675)
	26.261.371	33.083.419

	30 June	31 December
Long-term trade receivables	2025	2024
Unbilled receivables from contracts with customers	19.828.520	16.421.376
Trade receivables	971.926	891.083
Unbilled receivables from contracts with customers -
Related party (Note 4)	39.558.197	46.833.667
	60.358.643	64.146.126

The movement for the Group's allowance for doubtful receivables is as follows:

	30 June	30 June
	2025	2024
Opening balance	37.675	89.242
Provision for the period	4.037	5.143
Monetary gain/(loss)	(5.384)	(17.696)
Closing balance	36.328	76.689

b) Trade payables

Details of The Group's trade payables are as follows:

	30 June	31 December
Short-term trade payables	2025	2024
Trade payables	16.175.185	18.392.051
Due to related parties (Note 4)	1.705.594	2.868.574
Notes payable	--	1.312.167
Other trade payables	226.099	482.613
	18.106.878	23.055.405
	30 June	31 December
Long-term trade payables	2025	2024
Trade payables	1.526	--
	1.526	--

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

5. INVENTORIES

	30 June	31 December
	2025	2024
Raw materials	32.003.971	29.891.907
Work-in progress	15.883.192	14.644.375
Goods in transit 1	1.837	24.409
Finished goods	2.696.960	1.808.239
Other inventories	867.898	3.199.845
Trade goods	1.662.913	1.175.845
Allowance for impairment on inventories (-)	(158.720)	(24.409)
	52.958.051	50.720.211

The Group provides an allowance for impairment on inventories when the inventories net realizable values are lower than their costs or when they are determined as slow-moving inventories.

The Group has identified raw material, work-in progress and finished goods inventories below net realizable value within the current year.

Impaired inventory movements for the period ended in 30 June are as follows:

	2025	2024
Opening balance	24.409	128.778
Provision for the period	265.326	61.251
Provision unrealised	(131.015)	(150.776)
Closing balance	158.720	39.253

¹ Goods in transit includes the goods for which significant risks and rewards of ownership has been transferred to the Group due to their shipping terms.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

6. PREPAID EXPENSES AND DEFERRED INCOME

	30 June	31 December
Short-term prepaid expenses	2025	2024
Order advances given for inventory purchases	14.825.958	9.173.354
Short-term order advances given to related
parties for inventory purchases (Note 4)	2.700.991	2.231.128
Work advances	1.201.857	826.764
Prepaid expenses	407.261	2.017.053
	19.136.067	14.248.299
	30 June	31 December
Long-term prepaid expenses	2025	2024
Long-term order advances given to related
parties for inventory purchases (Note 4)	363.156	1.548.189
Order advances given for inventory purchases	2.523.591	1.565.744
Order advances given for fixed assets purchases	522.120	554.941
Prepaid expenses	631.127	693.205
	4.039.994	4.362.079
	30 June	31 December
Short-term deferred income	2025	2024
Order advances received	4.585.805	4.309.790
Order advances received from related parties
(Note 4)	7.586.341	7.080.115
Deffered income	8.453.577	3.783.012
	20.625.723	15.172.917
	30 June	31 December
Long-term deferred income	2025	2024
Order advances received	10.198.387	5.173.157
Order advances received from related parties
(Note 4)	11.096.768	8.172.071
Deferred income	408.245	455.558
	21.703.400	13.800.786

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

7. PROPERTY, PLANT AND EQUIPMENT

	Property, Plant	Intangible
Cost	and Equipment	Assets
Opening balance as of 1 January 2025	73.080.257	39.573.553
Additions	4.201.178	8.839.186
Disposals	(206.574)	(4.322.695)
Closing balance as of 30 June 2025	77.074.861	44.090.044
Accumulated Depreciation and Amortisation
Opening balance as of 1 January 2025	29.433.632	14.102.010
Change for the period1	2.050.436	469.197
Disposals	(126.659)	(27.422)
Closing balance as of 30 June 2025	31.357.409	14.543.785
Net book value as of 30 June 2025	45.717.452	29.546.259
Net book value as of 31 December 2024	43.646.625	25.471.543

	Property, Plant	Intangible
Cost	and Equipment	Assets
Opening balance as of 1 January 2024	67.918.358	34.058.583
Additions	2.530.498	9.354.362
Disposals	(1.886.923)	(4.615.285)
Closing balance as of 30 June 2024	68.561.933	38.797.660
Accumulated Depreciation and Amortisation
Opening balance as of 1 January 2024	27.944.861	13.595.337
Change for the period	1.577.802	548.216
Disposals	(1.447.436)	(222.677)
Closing balance as of 30 June 2024	28.075.227	13.920.876
Net book value as of 30 June 2024	40.486.706	24.876.784
Net book value as of 31 December 2023	39.973.497	20.463.246

In accordance with TFRS 13 "Fair Value Measurement" standard, fair values of the lands are considered as level three of fair value hierarchy, since measurement techniques do not include observable market inputs.

¹ The amount of amortization related to inventories are TL 273.758 in the year 2025 (June 2024: TL 271.787)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

8. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Provisions

	30 June	31 December
Other short-term provisions	2025	2024
Provision for warranties1	4.236.112	4.598.013
Provision for onerous contracts	220.468	254.583
Provision for delay penalties2	2.549.690	2.234.972
Sales commission	114.715	133.842
Provision for legal cases	71.205	63.722
Provision for cost expenses	244.708	754.841
Other	78.184	25.356
	7.515.082	8.065.329
	30 June	31 December
Other long-term provisions	2025	2024
Provision for delay penalties	503.017	586.890
Provision for onerous contracts	5.805.599	9.926.465

b) Legal cases

There has not been any final judicial decision against the Group due to the responsibility related with work accidents within 2025.

6.308.616 10.513.355

As of the dates 30 June 2025 and 31 December 2024, according to the declarations written by the legal counselors, the lawsuits and legal executions in favor of and against the Group are as follows:

		2024
Ongoing lawsuits filed by the Group		50.012
Execution proceedings carried out by the Group		871.435
Ongoing lawsuits filed against the Group		63.722
Executions against the Group		22.365
Lawsuits finalized against the Group within the period		8.236
period	3.649	5.780
	Description Lawsuits finalized in favor of the Group within the	202 5 30.507 918.884 71.205 25.499 27.223

a) Ongoing lawsuits filed by the Group are comprised of lawsuits for patents, trademarks and lawsuits filed by the Group due to the disagreements related to previous lawsuits. These lawsuits will not be recognised in the financial statements until they are finalized.

b) Execution of proceedings carried out by the Group are comprised of lawsuits that would result in favor of the Group that will be recognised as revenue under "Other Operating Income" line when they are collected.

c) The Company made provisions for all lawsuits filed against the Group and recognised as "Provisions" in the statement of financial positon and "Other Operating Expense" in the statement of profit or loss and other comprehensive income.

d) Executions against the Group are not included in Financial Statements.

e) Lawsuits finalized against the Group are recognised in the statement of profit or loss to the extent that the amount differs from the amount previously provided. Amounts in excess of the amount previously provided are recognised under 'Other Operating Expense' when the penalty is paid.

f) Lawsuits finalized in favor of the Group are recognised in statement of profit or loss and other comprehensive income under "Other Operating Income" line when the final judgement is determined.

¹ The Group's provision for warranty is based on sales under warranty are estimated in accordance with historical data. Provision for warranty is calculated by using warranty rate included in the contract as long as the invoice issued throughout the life of the Contract

² Provision for delay penalties and fines are calculated in accordance with interest rates mentioned in the agreement for defaulet and within the client's knowledge.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

9. TAX

"Deferred Tax Assets" of the Group as of 30 June 2025 is TL 17.062.350. The amount is comprised of the items below.

	30 June	31 December
	2025	2024
Carried Forward R&D Incentives Effect	16.156.869	10.231.184
Temporary Differences	905.481	(724.485)
Deferred Tax Assets - Net	17.062.350	9.506.699

The earnings gained within the scope of Technology Development Zones Law numbered 4691 and the Support of Research and Development Activities Law numbered 5746 were exempted from corporate tax until 31 December 2028.

Forecasts, expected duration of research and development incentives and temporary differences are considered in calculating deferred tax asset.

In accordance with the law numbered 5746 pertaining to 1 January-30 June 2025 period the Group has calculated "Deferred Tax Asset" amounting to TL 16.156.869 from Research and Development expenses comprising "Outstanding Research and Development Deductions".

	30 June	30 June
	2025	2024
Profit before tax from continuing operations	(2.385.330)	(1.310.308)
Tax (expense)/income recognized in profit or loss	8.795.939	6.234.173
Effective tax rate	(369%)	(476%)

Effective tax rate is calculated by dividing net tax income recognized in profit or loss to profit before tax from continuing operations.

10. COMMITMENTS AND CONTINGENCIES

a) Guarantees received

	30 June 2025	31 December 2024
Letters of guarantees received from the suppliers	13.023.491	11.406.169
Collaterals received from the customers	857.205	789.437
Letters of guarantees received from the customers	--	52.162
Collaterals received from the suppliers	1.731.273	1.617.246
Cheques of guarantees received from the suppliers	1.390.932	549.520
Cheques of guarantees received from the customers	--	2.333
	17.002.901	14.416.867

b) Collaterals / Pledges / Mortgages ("CPM") given

The collaterals/pledges/mortgages ("CPM") given by the Group as of 30 June 2025 and 31 December 2024 is as follows:

In accordance with the terms of the Patrol and Anti-Submarine Warfare Ship Projects ("MİLGEM"), the Company is a guarantor if HAVELSAN cannot be able to fulfill the obligations in this project of an amount of USD 294.403.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

11. COMMITMENTS AND CONTINGENCIES (continued)

c) Guarantees given

30 June 2025	TL Equivalent	TL	USD	EURO	Rumen Leyi	Qatar Rial
A. Total amount of CPM given on behalf of the legal
entity
-Collateral	21.531.423	2.731.256	313.395	135.457	4.004	250
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
B. Total amount of CPM given on behalf of the
subsidiaries included in full consolidation
-Collateral	186.210	--	--	4.000	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
C. Total amount of CPM given to maintain operations
and collect payables from third parties
-Collateral	--	--	--	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
D. Total amount of other CPM given
i. Total Amount of CPM on behalf of the main partner
-Collateral	--	--	--	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
ii. Total amount of CPM given on behalf of other
1 group companies that do not cover B and C
-Collateral	17.844	--	449	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
iii. Total amount of CPM on behalf of third parties
that do not cover
-Collateral	--	--	--	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
Total	21.735.477	2.731.256	313.844	139.457	4.004	250

¹ The ratio of the other CPM given by the Group to equity as of 30 June 2025 is 0,01 percent. TL 17.844 is the collateral amount pertaing to guarantee letter given on behalf of the entity's joint venture ASELSAN Bilkent.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

11. COMMITMENTS AND CONTINGENCIES (continued)

c) Guarantees given (continued)

31 December 2024	TL Equivalent	TL	USD	EURO	Rumen Leyi	Qatar Rial
A. Total amount of CPM given on behalf of the legal
entity
-Collateral	18.285.087	2.519.198	278.011	100.387	4.004	250
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
B. Total amount of CPM given on behalf of the
subsidiaries included in full consolidation
-Collateral	171.478			4.000	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
C. Total amount of CPM given to maintain operations
and collect payables from third parties
-Collateral	--	--	--	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage D. Total amount of other CPM given	--	--	--	--	--	--
i. Total Amount of CPM on behalf of the main partner
-Collateral	--	--	--	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
ii. Total amount of CPM given on behalf of other
1 group companies that do not cover B and C
-Collateral	52.194	--	1.270	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
iii. Total amount of CPM on behalf of third parties
that do not cover
-Collateral	--	--	--	--	--	--
-Pledge	--	--	--	--	--	--
-Mortgage	--	--	--	--	--	--
Total	18.508.759	2.519.198	279.281	104.387	4.004	250

¹ The ratio of the other CPM given by the Group to equity as of 31 December 2024 is 0,03 percent. TL 52.194 is the collateral amount pertaing to guarantee letter given on behalf of the entity's joint venture ASELSAN Bilkent.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

11. EMPLOYEE BENEFITS

a) Short-term provisions for employee benefits

	30 June 2025	31 December 2024
Provision for vacation pay and overtime	1.923.197	1.323.172
Bonus provision	--	2.244.620
	1.923.197	3.567.792

As of 30 June the movement of the provision for vacation pay and overtime is as follows:

	2025	2024
Opening balance	1.323.172	1.181.946
Provision for the period	994.685	521.094
Provision paid during the period	(184.460)	(140.446)
Provision realized during the period	(21.104)	(41.586)
Monetary gain/(loss)	(189.096)	(234.377)
Closing balance	1.923.197	1.286.631

b) Long-term provisions for employee benefits

	30 June 2025	31 December 2024
Provision for severance pay	1.121.409	1.226.663
	1.121.409	1.226.663

As of 30 June the movement of severance and retirement pays are as follows:

	2025	2024
Opening balance	1.226.663	1.791.121
Actuarial loss/gain	24.325	17.293
Interest cost	15.359	22.341
Service cost	57.124	95.208
Payments	(26.758)	(106.137)
Monetary gain/(loss)	(175.304)	(355.175)
Closing balance	1.121.409	1.464.651

Provision for severance pay:

In accordance with the Labor Law Legislations, the Group is obliged to make legal severance indemnity payments to entitled employees whose employment has been terminated. Furthermore, with regard to Social Security Law numbered 506 dated 6 March 1981, number 2422 dated 25 August 1999 and law numbered 4447, article 60 denotes the legal obligation to make severance payments to all employees who are entitled to indemnity by the date of leave of employment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

12. EMPLOYEE BENEFITS (continued)

Provision for severance pay (continued)

Certain provisions regarding services before retirement, has been annulled on 23 May 2002 during the revision of the related law. As of 30 June 2025 severance payments are calculated on the basis of 30 days' pay, limited to a ceiling of TL 46.655,43 (31 December 2024: TL 46.655,43)

The liability is not funded, as there is no funding requirement. The provision has been calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of employees. TAS 19 ("Employee Benefits") requires actuarial valuation methods to be developed to estimate the entity's obligation under defined benefit plans.

Accordingly, the following actuarial assumptions were used in the calculation of the total liability:

	30 June 2025 (%)	31 December 2024 (%)
Interest rate	24,90	24,90
Inflation rate	21,05	21,05
Discount ratio	3,18	3,18
Estimation of probability of retirement ratio	94	94

12. SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS

Capital
Shareholders	Share (%)	30 June 2025	Share (%)	31 December 2024
TSKGV	74,20	3.383.302	74,20	3.383.302
Publicly held	25,80	1.176.698	25,80	1.176.698
Nominal capital	100	4.560.000	100	4.560.000
Share capital adjustment		28.994.442		28.994.442
Inflation adjusted capital		33.554.442		33.554.442

The Group's nominal capital is TL 4.560.000 comprising 4.560.000.000 shares each of which is TL 1. A total of 2.421.818.182 of the shares constitutes "Group A" and 2.138.181.818 of the shares constitutes "Group B" shares. All of the shares are nominative. "Group A" shares are privileged nominative shares and 6 Members of the Board of Directors are assigned from the holders of nominative "Group A" type shareholders or from the ones nominated by "Group A" type shareholders. Moreover, the Board of Directors shall be authorized in matters regarding issuing preferred shares or issuing shares above the nominal values. Regarding capital increases by restricting preemptive rights, the shares to be issued shall be "Group B". In accordance with the CMB's legislation, other Members of the Board of Directors, not including elected Independent Members of the Board of Directors, are assigned from nominative "Group A" shareholders or elected from among candidate nominated by "Group A" shareholders.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

13. SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS (continued)

Restricted reserves

In accordance with Capital Markets Board's Communique Serial II No:19.1 "Share of Profit", effective as of 1 February 2014, and with regard to the Turkish Commercial Code ("TCC"), legal reserves in publicly held companies will be generated by 5 percent of income until it reaches 20 percent of paid-in share capital. After the 5 percent of the dividend is paid to shareholders, 10 percent of the total distributed to shareholders and employees can be added in the other legal reserve. Under the TCC, the legal reserves can be used only to offset losses for the going concern of the company or to prevent unemployment as long as the amount does not exceed 50 percent of the paid-in capital.

Retained Earnings

Accumulated profits apart from net profit for the year and extraordinary reserves which is accumulated profit by nature are shown under retained earnings.

Profit distribution

Publicly traded companies perform dividend distribution in accordance with Capital Markets Board's Communique Serial II No: 19.1 "Share of Profit", effective as of 1 February 2014.

Shareholders, distribute dividend with general assembly decision, within the context of profit distribution policies set by general assembly and related regulations. As part of the communique, no specific minimum distribution ratio is indicated. Companies pay dividend as defined in their articles of association or dividend distribution policies.

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

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

and distribution of the cash dividends to the shareholders shall be distributed as of 25 November 2025.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

14. REVENUE AND COST OF SALES

	1 January-	1 April-	1 January-	1 April
	30 June	30 June	30 June	30 June
a) Revenue	2025	2025	2024	2024
Domestic sales	47.668.284	26.499.095	41.707.276	23.619.978
Export sales	6.041.913	3.051.287	6.530.465	2.454.261
	53.710.197	29.550.382	48.237.741	26.074.239
	1 January-	1 April-	1 January-	1 April
Revenue Recognized Regarding Performance	30 June	30 June	30 June	30 June
Obligation	2025	2025	2024	2024
Over time	37.182.830	18.566.534	35.666.553	17.234.784
Point in time	16.527.367	10.983.848	12.571.188	8.839.455
	53.710.197	29.550.382	48.237.741	26.074.239
	1 January-	1 April-	1 January-	1 April
	30 June	30 June	30 June	30 June
b) Cost of Sales (-)	2025	2025	2024	2024
Cost of raw materials and supplies (-)	22.114.380	10.115.338	23.979.658	12.100.942
Cost of merchandise goods sold (-)	1.187.744	886.516	1.229.052	417.729
Cost of services sold (-)	12.593.495	8.193.998	6.558.495	3.976.181
Cost of other sales (-)	626.610	397.695	1.061.795	583.895
	36.522.229	19.593.547	32.829.000	17.078.747
15. OTHER OPERATING INCOME AND EXPENSES
	1 January-	1 April-	1 January-	1 April
	30 June	30 June	30 June	30 June
a) Other Operating Income	2025	2025	2024	2024
Foreign currency exchange differences from
operations	15.531.848	5.898.998	8.962.969	2.140.912
Amortized cost effect of trade payables	1.050.159	183.095	1.179.417	(71.784)
Other income	1.381.213	1.037.816	1.359.649	959.801
	17.963.220	7.119.909	11.502.035	3.028.929
	1 January-	1 April-	1 January-	1 April
	30 June	30 June	30 June	30 June
b) Other Operating Expense (-)	2025	2025	2024	2024
Foreign currency exchange differences from
operations (-)	9.890.764	3.666.705	6.495.364	1.872.528
Amortized cost effect of trade receivables (-)	676.137	8.249	831.358	203.568
Other expense and losses (-)	1.159.428	849.636	1.431.165	806.108
	11.726.329	4.524.590	8.757.887	2.882.204
16. FINANCIAL INCOME
	1 January-	1 April-	1 January-	1 April
	30 June	30 June	30 June	30 June
	2025	2025	2024	2024
Interest income	1.866.248	1.003.968	383.801	113.865
Foreign currency exchange gains from bank
loans	45.603	12.386	228.899	104.629
	1.911.851	1.016.354	612.700	218.494

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

17. FINANCIAL EXPENSES

	1 January-	1 April-	1 January-	1 April
	30 June	30 June	30 June	30 June
	2025	2025	2024	2024
Interest cost of borrowings (-)	1.480.021	884.440	2.277.434	1.250.034
Foreign currency exchange losses from
bank loans (-)	6.269.749	3.373.049	2.030.704	388.228
Interest cost related with employee
benefits (-)	15.359	15.359	22.341	22.341
	7.765.129	4.272.848	4.330.479	1.660.603

18. GAIN/(LOSS) ON NET MONETARY POSITION

As of 30 June 2025, the details of the net monetary position gains (losses) arising from non-monetary financial statement items reported in the Group's profit or loss statement are as follows:

Net Monetary Gain/ (Losses)	30 June 2025
Balance Sheet Items	(13.146.022)
Inventories	38.549
Prepaid expenses	2.582.158
Property, plant and equipment	5.650.238
Intangible assets	3.846.222
Equity accounted investments and financial investments	2.007.671
Deferred income	(3.856.007)
Share capital	(4.795.299)
Share premiums	(3.502.334)
Other comprehensive income / (expense) that will not be reclassified
to profit or (loss)	(557.016)
Other comprehensive income / (expense) that will be reclassified to
profit or (loss)	81.685
Restricted reserves	(830.843)
Retained earnings	(13.811.046)
Statement of Profit or Loss Items	(839.831)
Revenue	(2.828.014)
Cost of sales (-)	1.798.645
General administrative expenses (-)	112.265
Marketing expenses (-)	69.998
Research and development expenses (-)	65.396
Other operating ıncome	(1.189.143)
Other operating expenses (-)	842.535
Income from investing activities	(4.964)
Financial income	(100.515)
Financial expense (-)	393.966
Net Monetary Gain/ (Losses)	(13.985.853)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

19. EARNINGS PER SHARE

Earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period. The Group does not have diluted shares. For the 30 June 2025 and 2024 earnings per share calculations are as follows:

	1 January- 30 June	1 April- 30 June	1 January- 30 June	1 April 30 June
	2025	2025	2024	2024
Number of shares outstanding (in
thousands)	4.560.000	4.560.000	4.560.000	4.560.000
Net profit – TL	6.404.744	3.993.280	5.130.352	3.075.249
Earnings per 100 shares (Kuruş)	140,45	87,57	112,51	67,44
Diluted Earnings per 100 shares (Kuruş)	140,45	87,57	112,51	67,44

20. FINANCIAL LIABILITIES

Financial Liabilities

		30 June 2025	31 December 2024
Short-term financial liabilities	Unsecured loan	6.784.528	15.755.909
Other short-term financial liabilities	Unsecured loan	84.758	70.649
Current portion of long-term financial
liabilities	Unsecured loan	29.809.309	10.816.622
Total short-term financial liabilities		36.678.595	26.643.180
Other long-term financial liabilities	Unsecured loan	154.463	11.348.585
Total long-term financial liabilities		154.463	11.348.585
Total financial liabilities		36.833.058	37.991.765

As of 30 June 2025, TL 6.063.647 of the financial debts included in short-term borrowings consists of EUR Rediscount Foreign Currency Loans, which have maturity dates due between November 2025 and April 2026 and the interest rates between 4,29 percent and 4,50 percent. As of 30 June 2025, TL 397.424 of financial debts within short-term borrowings consist of USD Rediscount Foreign Currency Loans, which have maturity dates due August 2025 and the interest rate is 5,99 percent. As of 30 June 2025, TL 323.457 of financial debts within short-term borrowings consist of TL Rediscount Foreign Currency Loans, which have maturity dates due November 2025 and the interest rates is 49,00 percent.

As of 30 June 2025, there are TL 16.694.317 Spot EUR Loans within the short-term borrowings, which have maturity dates due between July 2025 and February 2026, and the interest rates between 4,50 percent and 5,10 percent. As of 30 June 2025, there are TL 13.114.992 Spot USD Loans within the shortterm borrowings, which have maturity dates due between July 2025 and March 2026, and the interest rates between 5,25 percent and 5,99 percent.

As of 30 June 2025, TL 84.758 of other short-term financial liabilities were taken within the scope of investment credit, which have maturity dates due December 2025, and the interest rates 17,50 percent.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.) 20. FINANCIAL LIABILITIES (continued)

Financial Liabilities (continued)

As of 30 June 2025, TL 154.463 of financial debts included in the long-term borrowings were taken within the scope of investment credit, which have maturity dates due October 2027 and the interest rate is between 8,25 percent and 12,50 percent.

As of 31 December 2024, TL 3.858.247 of the financial debts included in short-term borrowings consists of EUR Rediscount Foreign Currency Loans, which have maturity dates due between May 2025 and December 2025 and the interest rates between 4,29 percent and 4,42 percent. As of 31 December 2024, TL 5.787.371 of the financial debts included in short-term borrowings consists of EUR Spot Loans, which have maturity dates due between January 2025 and November 2025 and the interest rates between 4,30 percent and 5,95 percent. As of 31 December 2024, TL 5.646.080 of financial debts within short-term borrowings consist of USD Spot Loans, which have maturity dates due between February 2025 and August 2025 and the interest rate is between 5,70 percent and 6,75 percent. As of 31 December 2024, TL 40.836 of financial debts within short-term borrowings consist of TL Rediscount Foreign Currency Loans, which have maturity dates due between April 2025 and the interest rates 26,93 percent. As of 31 December 2024, TL 423.375 of financial debts within short-term borrowings consist of TL investment loans, which have maturity dates due between November 2025 and the interest rates 49 percent.

As of 31 December 2024, there are TL 7.716.494 EUR Spot Loans within the short-term borrowings, which have maturity dates due between July 2025 and October 2025, and the interest rates between 4,99 percent and 5,00 percent. As of 31 December 2024, there are TL 3.100.128 USD Spot Loans within the short-term borrowings, which have maturity dates due between February 2025 and August 2025, and the interest rates between 5,25 percent and 5,99 percent.

As of 31 December 2024, TL 70.649 of other short-term financial liabilities were taken within the scope of investment credit, which have maturity dates due November 2025, and the interest rates 49 percent.

As of 31 December 2024, TL 4.801.374 of the financial debts included in the long-term borrowings consists of EUR Spot Loans, which have maturity dates due February 2026 and the interest rates between 4,75 and 5,10 percent. As of 31 December 2024, TL 6.330.022 of the financial debts included in the long-term borrowings consists of USD Spot Loans, which have maturity dates due January 2026 and the interest rates 5,85 percent.

As of 31 December 2024, TL 217.189 of financial debts included in the long-term borrowings were taken within the scope of investment credit, which have maturity dates due December 2026 and the interest rate is between 9 percent and 17,50 percent.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

21. FOREIGN EXCHANGE POSITION

FOREIGN EXCHANGE POSITION
	TL Equivalent		TL equivalent by		TL equivalent by
	(Functional	USD	using closing	EURO	using closing	Other1
30 June 2025	currency)		rates		rates
1. Trade receivables	22.969.512	432.261	17.178.397	124.253	5.791.115	--
2a. Monetary financial assets (including cash,
bank)	3.149.627	37.942	1.507.853	35.153	1.638.386	3.388
2b. Non- monetary financial assets	13.232.725	154.593	6.143.645	75.744	3.530.223	237.028
3. Other	181.243	4.529	179.970	18	819	454
4. Current assets (1+2+3)	39.533.107	629.325	25.009.865	235.168	10.960.543	240.870
5. Trade receivables	50.452.352	551.948	21.934.867	611.866	28.517.485	--
6a. Monetary trade receivables	--	--	--	--	--	--
6b. Non-monetary trade receivables	175.348	774	30.772	1.870	87.160	4.753
7. Other	247.130	3.212	127.641	2.296	107.011	12.478
8. Long-term assets (5+6+7)	50.874.830	555.934	22.093.280	616.032	28.711.656	17.231
9. Total assets (4+8)	90.407.937	1.185.259	47.103.145	851.200	39.672.199	258.101
10. Trade payables	6.742.913	117.303	4.670.121	38.589	1.801.791	271.001
11. Financial liabilities	35.587.906	340.336	13.549.612	472.000	22.038.294	--
12a. Other monetary financial liabilities	17.724	385	15.316	52	2.408	--
12b. Other non-monetary financial liabilities	16.985.119	353.879	14.088.790	162.903	7.606.154	--
13. Current liabilities (10+11+12)	59.333.662	811.903	32.323.839	673.544	31.448.647	271.001
14. Trade payables	--	--	--	--	--	--
15. Financial liabilities	106.166	2.667	106.166	--	--	--
16a. Other monetary financial liabilities	8.215	132	5.250	64	2.965	--
16b. Other non-monetary financial liabilities	16.633.306	273.136	10.854.640	172.172	8.038.919	--
17. Non-current liabilities (14+15+16)	16.747.687	275.935	10.966.056	172.236	8.041.884	--

¹ Comprises of the currencies CAD, CHF, GBP, JPY, AUD, DKK, ZAR, AED, PHP, SAR.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

21. FOREIGN EXCHANGE POSITION (continued)

FOREIGN EXCHANGE POSITION
30 June 2025	TL Equivalent (Functional currency)	USD	TL equivalent by using closing rates	EURO	TL equivalent by using closing rates	Other
18. Total liabilities (13+17)	76.081.349	1.087.838	43.289.895	845.780	39.490.531	271.001
19. Net asset/liability position of off balance sheet derivative financial instruments (19a-19b)	--	--	--	--	--	--
19a. Hedged total financial assets	--	--	--	--	--	--
19b. Hedged total financial liabilities	--	--	--	--	--	--
20. Net foreign currency asset/liability (9- 18+19)	14.326.588	97.421	3.813.250	5.420	181.668	(12.900)
21. Net foreign currency asset / liability position of monetary items (1+2a+5+6a-10- 11-12a-14-15-16a)	34.108.567	561.328	22.274.652	260.567	12.101.528	(267.613)
22. Fair value of derivative financial instruments used in foreign currency hedge	--	--	--	--	--	--
23. Hedged foreign currency assets	--	--	--	--	--	--
24. Hedged foreign currency liabilities	--	--	--	--	--	--
25. Exports	6.041.913	102.549	3.818.860	29.828	1.293.155	929.898
26. Imports	16.042.803	266.909	10.626.296	85.684	4.000.680	1.415.827

Accompanying foreign exchange position which was prepared in accordance with TAS is different from the foreign exchange position of the financial statement which is prepared according to General Communiqué on Accounting System Application (GCASA). The difference is mainly due to the adjustments and classifications which are related with TFRS 15 .

"For TL functional currency" calculations regarding "Other non-monetary assets" and "Other non-monetary liabilities" presented under foreign currency position, advances received are considered with regard to historic values therefore "TL equivalent of currency as at balance sheet date" differentiate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

21. FOREIGN EXCHANGE POSITION (continued)

FOREIGN EXCHANGE POSITION
	TL Equivalent		TL equivalent by		TL equivalent by
	(Functional	USD	using closing	EURO	using closing	Other1
31 December 2024	currency)		rates		rates
1. Trade receivables	20.623.778	417.340	17.178.951	80.371	3.444.827	--
2a. Monetary financial assets (including cash,
bank)	2.262.370	40.218	1.655.489	13.668	585.847	21.034
2b. Non- monetary financial assets	9.916.263	91.482	3.765.659	50.194	2.151.408	116.310
3. Other	15.009	84	3.455	263	11.249	305
4. Current assets (1+2+3)	32.817.420	549.124	22.603.554	144.496	6.193.331	137.649
5. Trade receivables	53.024.064	551.044	22.682.601	707.894	30.341.463	--
6a. Monetary trade receivables	--	--	--	--	--	--
6b. Non-monetary trade receivables	452.585	692	28.478	1.951	83.626	16.015
7. Other	254.638	5206	214.300	938	40.221	117
8. Long-term assets (5+6+7)	53.731.287	556.942	22.925.379	710.783	30.465.310	16.132
9. Total assets (4+8)	86.548.707	1.106.066	45.528.933	855.279	36.658.641	153.781
10. Trade payables	9.575.523	168.203	6.936.210	54.030	2.319.985	319.328
11. Financial liabilities	25.795.708	203.833	8.405.481	405.000	17.390.227	--
12a. Other monetary financial liabilities	558.917	13.500	556.701	52	2.216	--
12b. Other non-monetary financial liabilities	4.359.829	201.682	8.316.740	28.223	1.211.868	--
13. Current liabilities (10+11+12)	40.289.977	587.218	24.215.132	487.305	20.924.296	319.328
14. Trade payables	--	--	--	--	--	--
15. Financial liabilities	11.104.668	152.667	6.295.519	112.000	4.809.149	--
16a. Other monetary financial liabilities	8.165	132	5.438	64	2727	--
16b. Other non-monetary financial liabilities	5.412.710	191.363	7.891.237	27.991	1.201.915	--
17. Non-current liabilities (14+15+16)	16.525.543	344.162	14.192.194	140.055	6.013.791	--

¹ Comprises of the currencies CAD, CHF, GBP, JPY, AUD, DKK, ZAR, AED, PHP, SAR.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

21. FOREIGN EXCHANGE POSITION (continued)

FOREIGN EXCHANGE POSITION
	TL Equivalent (Functional	USD	TL equivalent by using closing	EURO	TL equivalent by using closing	Other
31 December 2024	currency)		rates		rates
18. Total liabilities (13+17)	56.815.520	931.380	38.407.326	627.360	26.938.087	319.328
19. Net asset/liability position of off
balance sheet derivative financial
instruments (19a-19b)	--	--	--	--	--	--
19a. Hedged total financial assets	--	--	--	--	--	--
19b. Hedged total financial liabilities	--	--	--	--	--	--
20. Net foreign currency asset/liability (9-
18+19)	29.733.187	174.686	7.121.607	227.919	9.720.554	(165.547)
21. Net foreign currency asset / liability
position of monetary items (1+2a+5+6a-10-
11-12a-14-15-16a)	28.867.231	470.267	19.317.692	230.787	9.847.833	(298.294)
22. Fair value of derivative financial
instruments used in foreign currency hedge	--	--	--	--	--	--
23. Hedged foreign currency assets	--	--	--	--	--	--
24. Hedged foreign currency liabilities	--	--	--	--	--	--
25. Exports	20.005.315	182.178	3.749.293	146.554	3.802.009	12.454.013
26. Imports	23.370.480	378.920	15.572.653	142.582	6.112.386	1.685.441

Accompanying foreign exchange position which was prepared in accordance with TAS is different from the foreign exchange position of the financial statement which is prepared according to General Communiqué on Accounting System Application (GCASA). The difference is mainly due to the adjustments and classifications which are related with TFRS 15.

"For TL functional currency" calculations regarding "Other non-monetary assets" and "Other non-monetary liabilities" presented under foreign currency position, advances received are considered with regard to historic values therefore "TL equivalent of currency as at balance sheet date" differentiate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

21. FOREIGN EXCHANGE POSITION (continued) Foreign currency sensitivity

The Group is exposed to foreign currency risk with respect to USD and EURO.

The following table details the Group's sensitivity to a 10 percent increase and decrease in foreign exchange rates. 10 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and present 10 percent change in foreign currency rates. This analysis does not include Group companies' balance sheet items which have functional currency other than TL. The effects of 10 percent changes in foreign currency rate on financial statements is as follows;

Foreign currency sensitivity table
30 June 2025
	Profit/Loss		Equity1
	Appreciation	Depreciation	Appreciation	Depreciation
	of foreign	of foreign	of foreign	of foreign
	currency	currency	currency	currency
	Change of USD against TL by 10%:
1- USD denominated net
assets/(liabilities)	2.227.465	(2.227.465)	2.227.465	(2.227.465)
2- Hedged amount against
USD risk (-)	--	--	--	--
3- Net effect of USD (1+2)	2.227.465	(2.227.465)	2.227.465	(2.227.465)
Change of EURO against TL by 10%:
4- EURO denominated net
assets/(liabilities)	1.210.153	(1.210.153)	1.210.153	(1.210.153)
5- Hedged amount against
EURO risk (-)	--	--	--	--
6- Net effect of EURO (4+5)	1.210.153	(1.210.153)	1.210.153	(1.210.153)
Change of other currencies against TL by 10%:
7- Other currencies
denominated net assets/
(liabilities)	(26.761)	26.761	(26.761)	26.761
8- Hedged amount against
other currencies risk (-)	--	--	--	--
9- Net effect of other
currencies (7+8) (26.761) 26.761 (26.761) 26.761

¹ Comprises of profit/loss effect.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

21. FOREIGN EXCHANGE POSITION (continued)

Foreign currency sensitivity (continued)

Foreign currency sensitivity table
31 December 2024
	Profit/Loss		Equity1
	Appreciation	Depreciation	Appreciation	Depreciation
	of foreign	of foreign	of foreign	of foreign
	currency	currency	currency	currency
Change of USD against TL by 10%:
1- USD denominated net
assets/(liabilities)	1.931.769	(1.931.769)	1.931.769	(1.931.769)
2- Hedged amount against USD risk (-)	--	--	--	--
3- Net effect of USD (1+2)	1.931.769	(1.931.769)	1.931.769	(1.931.769)
Change of EURO against TL by 10%:
4- EURO denominated net
assets/(liabilities)	984.783	(984.783)	984.783	(984.783)
5- Hedged amount against EURO risk (-)	--	--	--	--
6- Net effect of EURO (4+5)	984.783	(984.783)	984.783	(984.783)
Change of other currencies against TL by 10%:
7- Other currencies denominated net
assets/ (liabilities)	(29.829)	29.829	(29.829)	29.829
8- Hedged amount against other
currencies risk (-)	--	--	--	--
9- Net effect of other currencies (7+8)	(29.829)	29.829	(29.829)	29.829

¹ Comprises of profit/loss effect.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 30 JUNE 2025

(Amounts are expressed in Thousand Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2025, unless otherwise indicated.)

22. EVENTS AFTER THE REPORTING PERIOD

After the reporting period, the Group have signed contracts amounting to USD 286 Million.