TÜRK PRYSMİAN KABLO VE SİSTEMLERİ A.Ş.

Management Discussion and Analysis • Nov 10, 2025

ISSUED PURSUANT TO THE COMMUNIQUE SERIAL: II NO. 14.1.

TÜRK PRYSMİAN KABLO VE SİSTEMLERİ A.Ş. AND ITS SUBSIDIARIES

1 JANUARY 2025 – 30 SEPTEMBEER 2025 BOARD OF DIRECTORS INTERIM PERIOD ACTIVITY REPORT

10.11.2025

GENERAL INFORMATION

Türk Prysmian Kablo ve Sistemleri A.Ş. is the Turkish operation of Prysmian, a world leader in the energy and

telecommunications cables industry, with approximately 30,000 employees and 107 factories operating in over 50

countries.

The company stands out as one of the 16 facilities within Prysmian that can simultaneously produce energy and

communication cables. The product range includes all energy cables up to 220 kV, copper conductor communication cables

up to 3,600 pairs, fiber optic cables, railway signaling cables, studio broadcast cables, and special cables. Today, more than

22,000 different cables can be produced at the Mudanya factory. In addition, Türk Prysmian continues to provide unique

and superior services to all its customers by implementing "Turkey" projects for cables and systems.

Türk Prysmian's installed capacity is at levels that can compete in international markets. With a capacity utilization rate of

71% in 2024 and continuing to be a priority export center within Prysmian, approximately 32% of the company's total

revenue of 11.496.734.666 TL in third interim period 2025 comes from export operations. Türk Prysmian maintains its

leadership in innovation, technology, quality, and customer satisfaction both in Türkiye and international markets. Today,

the company exports to over 50 countries, primarily the Turkish Republics and Middle Eastern countries, but not limited to

these regions.

Prysmian has a total of 27 R&D centers worldwide; one of these R&D centers is located at Türk Prysmian's Mudanya

factory. The Material Technologies Testing Laboratory within the Mudanya R&D center has been certified by the Turkish

Accreditation Agency (TÜRKAK) with the TS EN ISO/IEC 17025 "General Requirements for the Competence of Testing

and Calibration Laboratories" accreditation certificate. The certificate issued by TÜRKAK symbolizes that the test results

to be carried out in the Türk Prysmian laboratory on 'fire tests' are reliable and internationally valid.

Türk Prysmian Kablo ve Sistemleri A.Ş., listed on the Istanbul Stock Exchange, continues to increase the effectiveness of

its products and services both in Türkiye and international markets and has proven its value to people and its care for the

environment by being the first in its sector to obtain ISO / DQS 9001 and ISO 14000 certificates.

Relevant Accounting Period of the Report:

Our activity report covers the period from 01.01.2025 – 30.09.2025

Issued Capital: 216,733,652 TL

Registered Capital Ceiling: 1,300,000,000 TL

Trade Registry Number and Contact Information:

Head Office Address: Ömerbey Mah. Bursa Asfaltı Cad. No:51 Mudanya / BURSA

Tel: +90 224 270 3000 | Fax: +90 224 270 3024

Branch Address: Fulya Mah. Büyükdere Cad. Torun Center D Blok No: 74d İç Kapı No: 21 Şişli / İstanbul

Tel: +90 212 393 7700 | Fax: +90 212 393 7762

Trade Registry No: M0153/Bursa Merkez

MERSIS No: 086005137400023

Website: www.prysmian.com.tr

Subsidiaries	Types of
	activities	Main fields of activity
Turkish Prysmian-Prysmian Powerlink
DB.KAB.19 Business Ordinary Partnership	Sales	Sale of Power Cables

SECTOR, VISION, AND MISSION IN WHICH THE COMPANY OPERATES

As Prysmian, we are world leader in energy cables and systems, communication cables, and systems. We are a multinational company that has been successfully growing in local markets where we have been experts for over a century.

Our Vision:

As Prysmian, we are one of the oldest, most established, and leading companies in its sector, we aim to be a company that fosters a distinguished and innovative role, nurturing a workforce that is open to development, creative, and performs excellently. We have an organizational structure that values transparency and social responsibility, continuously providing satisfaction to our customers and establishing long-term partnerships. We consistently create value for our shareholders, dedicate ourselves to improving societal conditions, and maintain our leadership in the sector both in Turkey and on the international platform.

Our Mission: It is to add value to our shareholders and the industry by providing our customers, business partners, and society with innovative, advanced technology, compliance with the standards, top-quality, and safe products and services.

CAPITAL AND SHAREHOLDER STRUCTURE

Capital Structure of the Company as of 30.09.2025 is as follows:

Partners	%	TL
Draka Holding B.V.	83,75	181.506.654
Other *	16,25	35.226.998
Capital	100,00	216.733.652

There are no privileged shares in the Company capital. Each share has 1 voting right in our Company.

BOARD OF DIRECTORS AND ORGANIZATIONAL STRUCTURE OF COMPANY

As of 30.09.2025 reporting date, information regarding the members of the Company's board of directors is given below.

POSITION	MEMBERS	Term of Duty	General Assembly Date
Chairman	Daniele Lorenzo Mazzarella	1 year	27.03.2025
Vice President of the Executive Board	Maria Cristiana Bifulco	1 year	27.03.2025
Board Member	Marcelo De PAOLA	1 year	27.03.2025
Board Member	Giovanni Zancan	1 year	27.03.2025
Board Member	Frederick Lars Persson	1 year	27.03.2025
Independent Board Member	Mine AYHAN	1 year	27.03.2025
Independent Board Member	Ebgü Senem DEMİRKAN	1 year	27.03.2025
Independent Board Member	Mehmet GÖÇMEN	1 year	27.03.2025

Daniele Mazzarella

Chairman & CEO

In 1996, Daniele Mazzarella graduated from Bocconi University in Italy and started his professional career in 1997. In 1997 he joined Thyssen Krupp Group as Controller and in 1999 he was appointed Controller of Management Reporting. In 2000, Mr. Mazzarella joined Pirelli Kabel as Senior Controller and in 2003 he joined Prysmian SpA as Logistics Controller. In 2007, he became the CFO of Prysmian Finland, and after 2011, he became the Regional CFO of Prysmian North America and then Prysmian Southern Europe in 2018. Daniele Mazzarella, who has worked in different positions in his 24 years of experience under the roof of Prysmian and has been Prysmian's Southern Europe Regional CFO since 2018, started to work as Prysmian Turkiye CEO as of September 2024.

Maria Cristiana Bifulco

Board Member

She graduated magna cum laude in Business Adminsitration, in 2000, at Università Commerciale "L. Bocconi" of Milan and got, in 2005, a Master in Business Administration at Kingston Business School of London. After first experiences as Consultant (Eos in Milan) and Analyst (Bloomberg Financial Services in London), in 2006 She joined, as Investor Relation Manager, IW Bank SpA, where She had the chance to follow, in May 2007, the quotation of the Bank in the market Expandi of Borsa Italiana. In 2008 She started a new professional challange in Snam SpA, first as Head of Financial Markets Analysis and Investor Relations and then as Head of Foreign Subsidiaries, coordinating abroad M&A projects and following the acquisitions of foreign participations (Interconnector in UK, T.I.G.F. in France). In 2013 She become Head of Investor Relations in Indesit Company SpA where She was, inter alia, in charge of the due diligence process related to the divestment of controlling stake of the Company from the Holding (Fineldo) to Whirpool.

In September 2014 Maria Cristina entred a new professional experience, that still lasts, joining the Prysmian Group SpA as Group Investor Relations Director. She reports to the CFO of the Group and carries out, beside the IR duties, Corporate Governance Activities and Special Projects (Capital Increase 2018, Bond issues prospectuses, due diligence streams for M&A).

Marcelo De Paola

Board Member

Marcelo De Paola has graduated in Business from Pontificia Universidade Catolica of Sao Paulo and he has an MBA in Finance at IBEMEC. Marcelo´s career started 35 years ago as a financial analyst at Pirelli. Along these years at the company, he has been in charge of the financial, IT and corporate affair sectors, achieving the position of country manager. He has been in role of such activities in Brazil, Argentina, Italy and Mexico. He was further responsible for building the new SAP Process that has been implemented around the world. Moreover, while in Italy he was part of the team that made Prysmian's IPO and that defined the new group´s reporting model. Marcelo De Paola is Prysmian Group´s CEO in México since July 2020. He currently managers 6 plants and over 1.800 employees. He was previously assigned as Prysmian Group's CFO for the LatAm region. While in charge, Marcelo's duties comprised the company's accounting and treasury sections, financial planning, tax operations, as well as business support.

Giovanni Zancan

Board Member

In 1989, Giovanni Zancan graduated in Business Administration from Bocconi University and started his professional career in 1990. In 1990 he worked as a Credit Officer at the European Commission - Luxembourg Directorate General for Credit and Investment and in 1990 he joined the Administration and Control Department at Pirelli Cavi e Sistemi SpA. In 1993 he joined Pirelli SPA - Milan in the Finance Department. In 1998 he became Investor Relations Manager at Pirelli SpA - Milano. In 1999 he became Finance Director for Latin America at Pirelli S.A. - Sāo Paulo Brasil. From 2002 to 2003 he was Finance Director at Pirelli & C. Real Estate SpA - Milan and from 2004 to 2005 Project Finance Director at Pirelli & C. SpA - Milan. He joined Prysmian at the foundation mid-2005 and he is currently Senior Vice President, Group Finance at Prysmian SpA - Milan, where he is also Chairman of the Board of Directors of Prysmian Riassicurazioni Spa and a member of the Board of Directors of Prysmian Treasury S.r.l. / Prysmian PowerLink S.r.l. / Prysmian Cavi e Sistemi Italia S.r.l. / Prysmian UK Group Ltd and Prysmian Hong Kong Holding Ltd.

Frederick Lars Persson

Yönetim Kurulu Üyesi

Frederick Persson joined Prysmian Group as CEO in Sweden in 2010 and moved to Australia in 2014, where he was CEO of Prysmian Group's ANZ business until February 2018. From February 2018 until December 2023, Frederick moved to Germany as CEO for Central Eastern Europe within Prysmian Group. In December 2023, Frederick was promoted to his new role as Executive Vice President, Digital Solutions, based at the Milan Headquarters. Frederick received his Bachelor's degree in Logistics from Vaxjoe Sweden in 1996. He started his career at the Swedish steel producer SSAB. Frederick held various positions, mainly in sales, and worked his way up to CEO of SSAB Canada. Moving into the stainless steel sector, he became managing director of the French wholesaler IMS in Sweden. Frederick is married with three children.

Mine Ayhan

Independent Board Member

With more than 35 years of experience in the insurance and reinsurance industry, Mine Ayhan has a strong career in corporate governance, strategic leadership and technical expertise. After holding key positions at Allianz and Yapı Kredi Insurance, she worked as a senior executive at Generali Turkey for 15 years, during which time she served as CEO and Chairman of the Board of Directors. During this period, he led the company's growth, digitalization and customer-oriented transformation processes and achieved significant success in the sector. He is an expert in the field of engineering insurance and has deep knowledge in risk management and development of technical insurance solutions, especially for energy, PPP and BOT projects.

Ayhan, who is also an effective manager in the international arena, served as CEO and Chairman of the Board of Directors at Europ Assistance Turkey and also served as a Board Member of Europ Assistance Holding for three years. In addition, he played an active role in global management processes as a member of the Board of Directors of Paris-based Europ Assistance S.A. She is involved in projects supporting women entrepreneurship at TOBB Women Entrepreneurs Board and TOBB Istanbul Women Entrepreneurs Board, and has also served as a Board Member at SEV Foundation Schools, TSEV and Italian Chamber of Commerce.

A graduate of Tarsus American College and Boğaziçi University, Department of Mathematics, Ayhan holds the FT Non-Executive Director Diploma from the Financial Times Board Director Program. This diploma, which provides international competence in corporate governance, risk management and sustainable growth, is an important reference for independent board members. A member of the International Women's Federation (IWF) and the Chartered Institute of Logistics and Transport (FCILT), Ayhan also contributesto raising future leaders through mentoring activities.

Ebgü Senem Demirkan

After graduating from Middle East Technical University, Department of Business Administration in 1993, Ebgü Senem Demirkan joined the Capital Markets Board of Turkey as a Professional Staff in 1995. Between 1995 and 2005, she worked in the Auditing and Partnership Finance Departments of the Capital Markets Board. Between 2002 and 2003, she attended the Capital Markets training program at the Wharton School of the University of Pennsylvania in the USA, and served as the Capital Markets Coordinator of Yaşar Holding A.Ş. between 2005 and 2016, and as the Capital Markets Advisor of Yaşar Holding A.Ş. between 2016 and 2020. Between March 2016 and March 2017, she worked at Oyak Asya Çimento A.Ş., and between March 2018 and March 2019, she worked at Bosch Fren Sistemleri San. And Tic. A.Ş. between March 2018 and March 2019, and Tukaş Gıda San. And Tic. A.Ş. between March 2018 and April 2022. Since April 2021, she has served as an Independent Board Member at Dinamik Isı Makine Yalıtım Malzemeleri Sanayi ve Tic. A.Ş. since April 2021 and Tapdi Oksijen Özel Sağlık ve Eğitim Hizmetleri San. And Tic. A.Ş. since April 2021 and Tapdi Oksijen Özel Sağlık ve Eğitim Hizmetleri San. ve Tic. A.Ş. since May 2023 and works as Managing Partner at Sekans Kurumsal Danışmanlık ve Eğitim Ltd. Şti.

Mehmet GÖÇMEN

Independent Board Member

After graduating from Middle East Technical University, Department of Industrial Engineering, Mehmet Göçmen started his professional career as a Project Manager at Çelik Halat ve Tel Sanayi A.Ş. in 1983 and served as a Member of the Executive Committee within the same company. In 1996, he continued his career at Lafarge Group as General Manager and assumed the position of Vice President. In 2003, he joined Sabancı Holding A.Ş. and served as General Manager at Akçansa Cement until 2008. Subsequently, he served as Human Resources Group President between 2008 and 2011, Cement Business Unit President between 2009 and 2014, and Energy Business Unit President between 2014 and 2017 at the same company. Between 2017-2019, he served as CEO and Board Member. Since 2019, he has been working as a Board Member at Trakya Çimento Sanayi ve Ticaret A.Ş., Board Member at Coşkunöz Holding A.Ş., Board Member at Saint-Gobain and Dalsan JV, Board Member at Çalık Holding A.Ş. and Consultant at Credia Partners.

Operating Principles of the Board of Directors

Board meetings shall be held at least quarterly. Except in exceptional circumstances, the members of the Board of Directors shall be provided with the necessary documents and information in advance and for a reasonable period of time to enable them to express an informed opinion on the matters under scrutiny.

There is a Board of Directors secretariat established to inform and communicate with the members of the Board of Directors. In the event that different opinions are expressed at the meeting and/or in the event of opposition to a decision taken by the Board of Directors, reasonable and detailed reasons for opposing votes are recorded in the decision minutes.

Attention is paid to ensure actual participation in Board meetings. Questions directed by the Board Members during the meeting are recorded in the minutes of the meeting. In order not to undermine the equality among the members, no member of the Board of Directors has been granted weighted voting rights and/or negative veto rights.

In the first quarter of 2025, Board of Directors meetings were held physically and 25% of the Board Members physically attended these meetings.

Members who could not physically attend the meeting due to their agendas participated via online applications.(Teams)

At the meeting of our Company's Board of Directors dated 28.03.2025, the Board Committees and their assignments were determined as follows:

		Early Detection of Risk and
Position	Corporate Governance Committee	Risk	Audit Committee
		Management Committee
Chairman	Ebgü Senem DEMİRKAN	Mine AYHAN	Mehmet GÖÇMEN
Member	Mine AYHAN	Mehmet GÖÇMEN	Mine AYHAN
	Ayşe Çiğdem Çelikbilek (Investor
Member	Relations Director)	Ebgü Senem DEMİRKAN	Ebgü Senem DEMİRKAN

Organization Structure

SECTORAL ASSESSMENTS AND INFORMATION ON ACTIVITIES

The year 2024 was quite dynamic for the global economy, with significant progress made despite many challenges. Central banks implemented tight monetary policies to control inflation, while regional tensions continued to affect energy markets, prompting many countries to accelerate investments in renewable energy. The digital economy became a major driver of growth, especially in the Asia-Pacific region. Post-pandemic supply chain issues persisted, particularly in the technology sector with chip shortages. Additionally, the economic cost of increasing natural disasters and climate change led to problems such as droughts in agriculture and rising food prices. Overall, despite its difficulties, 2024 saw notable advancements in areas like digitalization and renewable energy. In the 3th quarter of 2025, however, uncertainties caused by trade wars and geopolitical tensions are limiting global growth.

While global trade remains flat, the Turkish economy has shown signs of slowing down since the first quarter of 2024, with reduced growth momentum. Measures taken to combat high inflation have led to economic deceleration and a contraction in domestic demand. Rising regional tensions, exchange rate policies, and high energy costs have introduced new risks in export markets, increasing uncertainty for both the Turkish economy and the cable sector.

Although the construction sector gained momentum due to urban transformation and reconstruction efforts following the major earthquake disaster, the simultaneous increase in interest rates as part of inflation control measures has made financial conditions and access to credit more difficult. This has caused the sector, which had outperformed the general economy throughout the year, to experience a volatile trajectory.

The insufficient domestic market demand that has persisted since the first quarter of 2024 has led to increased competition in the cable sector, while price fluctuations, longer payment terms, and delayed payments have driven the sector toward exports. This trend in the domestic market and the pressure on prices are expected to continue for some time. Influenced by this effect, cable sector exports rose by 16% in the first nine months of 2025 compared to the same period last year, reaching \$2.86 billion, which is a significant value for the Turkish economy. However, developments in export markets and embargoes resulting from high regional geopolitical tensions are affecting companies' export

performance. On the other hand, the tightening of bank lending in financial markets and the significant decline in their appetite for lending, coupled with the very high interest rates on the limited amount of credit available, are negatively affecting the operating profitability of companies in the sector, which already operate with very low profit margins.

In addition to the uncertainty surrounding the upcoming period, fluctuations in raw material, energy, and logistics costs, trade wars, supply chain issues caused by geopolitical risks, and high inflation are creating significant pressure on the cable industry, which imports a large proportion of its raw materials. The cable industry is negatively affected by currency movements because metals such as copper and aluminum, as well as polymer materials such as PVC and polyethylene, used in cable production are traded in foreign currency. Under conditions where a large portion of costs are in foreign currency and sales are in Turkish Lira and on credit, such fluctuations are wearing down the industry.

Despite the global and domestic economic slowdown, the continued daily increase in the use of renewable energy sources in Turkey and, consequently, Turkey's emergence as a key player in the region's energy sector are positively supporting the development of the cable industry. As green economy, energy transition, and carbon reduction targets take their place as the most important issues on the business agenda in our lives; companies that invest in new environmentally conscious products and systems, have a sense of responsibility towards the universe, focus on renewable energy projects that benefit both the world and the industry, have a sustainability perspective, can develop commercial policies addressing climate change, and focus on sustainability in all their work will be the companies least affected by global developments and serving the industry in the longer term.

Cables are required to have features such as not endangering human life and property, having improved fire resistance, and being designed to transmit more data faster and in less space. Leading cable manufacturers, manufacturer associations, and relevant official institutions and organizations in our country have also launched a serious fight against non-standard cables. In order to live in a safer and more efficient world, efforts continue to promote the selection of high-performance solutions that offer advantages in terms of total cost, raise industry awareness about the correct use of cables, conduct market surveillance and inspection activities to ensure that cables used in the market comply with standards, and increase awareness regarding the inconsistencies in the quality of some cables sold in Turkey.

R&D Activities

Türk Prysmian Kablo aims to increase its competitive power in the energy and telecommunication cables industry, offering users of cutting edge technologies the opportunity to take the advantage of its leadership in innovation and development, and is working on efficient, effective, superior and ecofriendly products and system solutions. The Research & Development (R&D) Centre in Mudanya, both it is an R&D center approved by the Turkish Ministry of Industry and Technology and one of the 26 centers of Prysmian R&D family that plays a leading role internationally in cable production and material technologies. Owing to its comprehensive infrastructure and operations, Mudanya R&D Centre is also the pioneer of the Turkish Cable Industry.

Established on an area of 5 thousand square meters and comprised of 6 separate departments, the R&D Centre encompasses a Material Technologies Laboratory, a Burn Test Laboratory, an Energy Cable Testing Laboratory, a Telecom and Fiber Cables Testing Laboratory as well as a Design and Innovation Office and a Process Design and Prototype Development Office. The R&D Centre holds the TS EN ISO /IEC 17025 Standard "General Requirements for the Competence of Testing and Calibration Laboratories", and the Private Sector Burn Test Laboratory has been the first lab accredited by the Turkish Accreditation Agency (TURKAK) in Turkey to possess the infrastructure prescribed by "CRP - Construction Products Regulation".

As a result of its research and product development activities, Türk Prysmian Kablo, which is the first company in the Turkish Cable Industry to receive the CPR certificate and pioneers the sector with its expertise in this field, continues its CPR studies uninterruptedly. Cables with high-level CPR performance have been developed to meet the increasing CPR demands in the railway industry. The high-level combustion performance of the cables used in facilities that receive investment such as renewable energy generation plants and Data Centres is expected to be in B2 and C CPR class and at the same time drop class d0 and d1. Similarly, the use of cables with high-level CPR performance is becoming widespread in petrochemical plants. In this scope, we continue to develop innovative materials. New CPR families were created in control, instrumentation and energy cable groups and certification studies were carried out.

In order to increase export markets, our certification activities for low voltage energy cables gained momentum and VDE certificate was received. In addition to our existing certificates for ship cables, we are working to receive Lloyd's Register certification.

Big data management issues are increasing in importance day by day. In this field, large data centers are being established in many countries. Studies on both energization and data transfer have been initiated to meet the needs of data centers. The demands in the European market are targeted in this sector.

In the railway sector, research and development activities were carried out, new product groups were developed and necessary approvals were received in order to export cables to large markets such as America, Europe, Asia and Australia. We continue our efforts to increase product range and reach new markets.

Innovative product development efforts were continued by carrying out joint projects with the central R&D in fiber optic cable solutions. Within the scope of these works, our efforts to increase the number of fibres per mm2 continue.

Within the scope of research projects, meetings were held with UEDAŞ, an electricity distribution company in Bursa, with the aim of identifying solutions to sectoral needs and making significant contributions to R&D activities in this context. In addition, an R&D Day event was held; during this event, cable types were shared in detail with the sales unit, workflows were evaluated, and ideas were exchanged for optimization, thereby strengthening the interaction between R&D and other business units. This event directly contributed to product development processes by increasing internal knowledge sharing.

Our R&D center continues its work intensively in the field of sustainability. A multi-layered study has been initiated for a more sustainable product. The carbon footprint of the products is calculated and new materials and technologies are researched to reduce it. All toxic products that harm the environment are monitored within the scope of REACH and RoHS and in candidate lists, and this information is used in material technologies, but the products on these lists are not used. Work on renewable energy cables and high-efficiency cables, which are important within the scope of sustainability, continues. The aim is to lead the industry towards a genuine, standardised and acceptable green labelling system. The aim of this system is to identify truly green products and provide reliable information to customers. By referencing green labelling (E-Path) criteria, it is intended to create a common language for environmentally friendly best practices throughout the supply chain. Our work for the classification of cables within the scope of E-Path has been completed.

Increasing its investment in technology and innovation with Mudanya R&D Centre, Türk Prysmian Kablo aims to improve the competitiveness of our country by bringing users together with technological innovations and high-performance products. In line with this vision, it has been operating in the first R&D Centre approved by the Ministry of Science, Industry and Technology in the cable sector since 2016. In addition to innovation and product development studies, it has 7 completed Tübitak Projects and 11 patents. Cooperation with universities continues to increase. In this scope, our university-industry cooperation has gained momentum as the newly recruited R&D personnel have started their master's degree education. Within the scope of the R&D centre, we have 9 projects completed as of 2024 and 14 ongoing projects as of 2025.

Türk Prysmian Kablo continues to produce innovative solutions that prioritize high performance, efficiency and security in its R&D Center. State-of-the-art, user-friendly, high-performance solutions are developed in energy, fiber and communication cables, with features suitable for a wide range of challenging geographies, environmental and usage conditions, according to the user and industry market. Among these developed solutions, special distribution signal cables, low voltage and fiber optic cables for the petrochemical industry, minitube fiber optic cables, defense industry and wagon cables, explosion-resistant fiber optic and special cables for the petrochemical industry can be highlighted. Additionally, as a result of the importance Türk Prysmian Kablo attaches to product and test reliability, the number of national and international tests included in the scope of accreditation by the Turkish Accreditation Agency (TÜRKAK) has increased to 29 and scope development efforts are continuing.

ECONOMIC EXPECTATIONS

2025 – 3nd Quarter Realization

In September 2025, the Central Bank decided to reduce the policy interest rate from 43% to 40.5%. The September Monetary Policy Committee minutes assessed that the underlying trend of inflation slowed in August, growth in the second quarter exceeded forecasts, and final domestic demand remained weak. It was stated that inflation expectations and pricing behaviors, along with global developments, continue to pose a risk to the disinflation process. According to data from the Turkish Statistical Institute (TÜİK), inflation stood at 3.23% on a monthly basis in September 2025, while it reached 33.29% on an annual basis.

The change in the CPI in September 2025 was a 25.43% increase compared to December of the previous year and a 38.36% increase compared to the twelve-month average.

The annual changes in the three main expenditure groups with the highest weight were as follows: a 36.06% increase in food and non-alcoholic beverages, a 25.30% increase in transportation, and a 51.36% increase in housing. The effects of the relevant main groups on the annual change were 8.60% for food and non-alcoholic beverages, 4.15% for transportation, and 7.85% for housing.

The Domestic Producer Price Index (Yİ-ÜFE) increased by 2.52% compared to the previous month and by 26.59% compared to the same month of the previous year in September 2025. The annual changes in the four sectors of industry were as follows: a 28.73% increase in mining and quarrying, a 26.63% increase in manufacturing, a 23.81% increase in electricity, gas production, and distribution, and a 55.03% increase in water supply.

On the other hand, the Foreign Producer Price Index (YD-ÜFE) increased by 2.01% compared to the previous month and by 27.71% compared to the same month of the previous year in September 2025. The annual changes in the two sectors of industry were as follows: a 27.06% increase in mining and quarrying, and a 27.72% increase in manufacturing. In terms of growth, GDP grew by 4.8% in the second quarter of 2025. Adjusted for seasonal and calendar effects, GDP

increased by 1.6% in the second quarter of 2025 compared to the previous quarter.

The consumer confidence index, calculated based on the results of the consumer sentiment survey conducted in collaboration with the Turkish Statistical Institute and the Central Bank of the Republic of Turkey, decreased by 0.3% in October to 83.6, down from 83.9 in September.

According to data from the Ministry of Trade, in September 2025, compared to the same month last year, exports increased by 3.0% to \$22.607 billion, while imports increased by 8.8% to \$29.492 billion. In the January-September period of 2025, exports increased by 4.1% to \$200 billion 625 million, while imports increased by 5.9% to \$267 billion 651 million. The foreign trade deficit for the January-September period of 2025 increased by 11.8% compared to the same period of the previous year, reaching \$67 billion. In September 2025, the ratio of exports to imports decreased by 4.3 points compared to the same month of the previous year, reaching 76.7%.

The seasonally adjusted unemployment rate in Turkey stood at 8.6% in September 2025. According to data published by the European Union Statistics Office (Eurostat), the seasonally adjusted unemployment rate in the Eurozone rose to 6.3% in August 2025. During the same period, the US unemployment rate was recorded at 4.3%.

In global economies, the US Consumer Price Index (CPI) rose by 0.3% on a monthly basis in September, while showing an increase of 3% on an annual basis, below expectations. Annual inflation in the Eurozone stood at 2.2% in September 2025. Services contributed most to the Eurozone's annual inflation rate in September, followed by food, alcohol and tobacco products, non-energy industrial goods, and energy.

2025 Expectations and Forecasts

At the Monetary Policy Committee meeting held in September, it was noted that uncertainty surrounding global trade policies remained high, while the limited improvement in the global growth outlook continued. The deterioration in the global demand outlook continued to put downward pressure on crude oil prices, while energy commodity prices declined during the current MPC period. Uncertainties regarding the trade and economic policies that the US and other countries will pursue in the coming period, as well as geopolitical risks, are seen as prominent risk factors for the course of global economic activity. Risks to inflation remain valid on a global scale, and central banks are continuing to cut interest rates in light of these risks. While portfolio inflows into emerging market economies continue, high levels of global uncertainty and geopolitical developments are keeping downside risks to portfolio movements alive.

According to the results of the CBRT Market Participants Survey dated September, the year-end inflation expectation for 2025, which recorded a limited increase from 29.66% in August to 29.69%, rose to 29.86% in the September survey, increasing for the second consecutive month. Meanwhile, market participants' 12-month-ahead CPI expectation fell from 22.84% to 22.25%, while the 24-month-ahead CPI expectation declined from 16.92% to 16.78%. According to the survey, the current year-end exchange rate (USD/TL) expectation was 43.85 TL. Participants' GDP growth expectations for 2025 were 3.2%, while GDP growth expectations for 2026 were 3.7%.

The Istanbul Chamber of Industry (ISO) Turkey Manufacturing PMI index fell to 46.7 in September, indicating that the manufacturing sector continues to slow down. In a note released by ISO along with the data, it was emphasized that the headline PMI, which was 47.3 in August, fell to 46.7 in September, indicating that the manufacturing sector continues to slow down, thus extending the trend of deterioration in operating conditions to one and a half years.

The IMF released the October edition of its World Economic Outlook report under the title "Global Economy in Transition, Outlook Remains Subdued." The report states that global economic growth is projected to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. The IMF revised its global economic growth forecast for this year upward compared to its July projections, while keeping its forecast for 2026 unchanged. In its July projections, the Fund had forecast 3% growth for the world economy this year.

In its Economic Outlook Report, the OECD raised its growth and annual average inflation expectations for Turkey for 2025 to 3.2% and 33.5%, respectively. In the same report, the OECD expects the global economy to grow by 3.2% this year. The OECD kept its 2026 global economic growth forecast unchanged at 2.9%.

At its September meeting, the US Federal Reserve cut its policy rate by 25 basis points to a range of 4.00-4.25% at its sixth meeting of 2025. This marked the Fed's first rate cut in nine months. The statement noted that downside risks to employment had increased and inflation remained somewhat elevated.

The U.S. economy grew by 3.8% in the second quarter of 2025. The Congressional Budget Office (CBO) lowered its 2025 growth forecast for the country's economy from 1.9% to 1.4%, while raising its unemployment rate expectation from 4.3% to 4.5%. While the U.S. economic growth forecast for 2025 is 1.4%, the country's economy is expected to grow by 2.2% in 2026 and 1.8% in 2027 and 2028. Eurozone inflation stood at 2.2% in September, in line with expectations. Meanwhile, the European Central Bank (ECB) is targeting a 2% inflation rate in the medium term, and it was noteworthy that the Eurozone's September inflation rate exceeded the ECB's target.

SUMMARIZED ACTIVITY RESULTS

CONDENSED BALANCE SHEET

	Limited Audit	Independent Audit
	Completed	Completed
	September 30	December 31
	2025	2024
Current assets	5.934.518.771	5.873.411.152
Non-current assets	873.158.112	1.005.434.843
Total assets	6.807.676.883	6.878.845.995
Short-term liabilities	3.769.617.067	5.650.771.459
Long-term liabilities	2.191.890.672	119.776.999
Shareholder's Equity	846.169.144	1.108.297.537
Total Liabilities and Equity	6.807.676.883	6.878.845.995

CONDENSED INCOME STATEMENT

	Limited Audit Completed January-1 September 30,2025	Limited Audit Completed January 1- September 30, 2024
Revenue	11.496.734.666	14.145.209.341
Cost of sales (-)	(10.344.276.391)	(12.436.911.941)
Gross profit	1.152.458.275	1.708.297.400
Operating Expenses/Loss	(1.172.276.424)	(2.751.265.552)
Operating profit/loss	(19.818.149)	(1.042.968.152)
Operating profit/(loss) before financial income / (expense)	1.450.698	(22.346.198)
Income from investment activities	(18.367.451)	(1.065.314.350)
Financing (income/expense)	(584.669.195)	(529.917.460)
Financing (income/expense)	295.187.813	404.707.108
Profit/(loss) before taxation	(224.645.981)	(870.682.358)
Tax income / (expense)	(37.482.412)	104.212.109
Net profit /(loss) for the period	(262.128.393)	(766.470.249)

Our net loss for the operating period of January 1– September 30, 2025 was (262.128.393) TL

FINANCIAL SOURCES OF THE COMPANY

The Company uses the funds generated from its operations as a source of financing.

Basic Ratios

	30 September 2025	31 December 2024
Current Ratio (Current Assets/Short-term liabilities)	1,57	1,04
Total Liabilities/Total Assets	0,88	0,84
Total Liabilities/Equity	7,05	5,21

	1 Jan-	1 Jan
	30 September	30 September
	2025	2024
Gross Profit/Net Sales	10,02%	11,60%
Operating Profit/Net Sales	-0,17%	-7,37%

Profit Distribution Policy and Profit Distribution Time

"Dividend Distribution Policy" established by the Company's Board of Directors decision dated 07/03/2018 and numbered 2018/07 within the framework of Capital Markets Board (CMB) regulations At the 2018 Ordinary General Assembly Meeting, it was submitted to the approval of the shareholders and approved. The Company's Dividend Distribution Policy was announced on the Public Disclosure Platform (KAP) and the Company's corporate website.

At the Company's Ordinary General Meeting held on March 27, 2025, it was decided that the Company's financial statements for the accounting period from January 1, 2024, to December 31, 2024, prepared in accordance with both the 1 on the Principles of Financial Reporting in the Capital Markets, and the legal records kept in accordance with the Tax Procedure Law, it was determined that a "Net Period Loss" had been incurred. Therefore, it was decided not to distribute dividends and to transfer the incurred loss to the prior years' losses account.

Ordinary/Extraordinary General Assembly Meetings Held In The Period

An Ordinary General Assembly meeting for the year 2024 was held on March 27, 2025. The results of the meeting were published on Turkish Trade Registry Gazette dated 28.03.2025, Results of Ordinary General Assembly Meetings are presented to our shareholders on Public Disclosure Platform (KAP), our website (www.Prysmian.com.tr) and on our company page on the information portal of Central Registry Agency (MKK). Results of Ordinary General Assembly Meetings are presented to our shareholders on Public Disclosure Platform (KAP), our website (www,prysmian.com.tr) and in our company page on the information portal of Central Registry Agency (MKK).

Between 01.01.2025 and 30.09.2025, no Extraordinary General Assembly meeting was held.

Changes to the Articles of Association Made During the Period

No changes were made to the Company's articles of association during the 01.01.2025 - 30.09.2025 activity period.

The final version of our Articles of Association can be accessed at www.prysmian.com.tr, www.kap.gov.tr.

Aid and Donations Made During the Period

The upper limit of donations to be made in 2025 was determined as 1,300,000 TL at the Ordinary General Assembly meeting of our Company dated 27.03.2025.

During the period from January 1, 2025 to June 30, 2025, our company paid 585,000,000 TL in education scholarships to children and made a donation of 40,000 TL to Darüşşafaka. Under a five-year agreement with the Bursa Uludağ Strengthening Foundation, the student who graduates first from the Electrical Engineering Department of Uludağ University's Faculty of Engineering -Electronics Engineering Department of Uludağ University with a scholarship of 2,000.- Euro.

Statement on Company Equities

As of 30.09.2025, the issued capital of our Company is 216,733,652 TL. As of the first half period 2025, it has been determined that the equity amount exceeds the issued capital by 846.169.144 TL.

Employee Benefits

As of June 30, 2025, the average number of employees working for the company during the year is 545. (September 30, 2025: 587) The company provides meal and transportation allowances to all employees. In addition, office employees are provided with health insurance, personal accident insurance, and life insurance in accordance with the company's benefits plan. Furthermore, the company implements flexible working arrangements, collective use of maternity leave, extension of maternity leave, protection of female employees' positions after maternity leave, scholarship programs for employees' children's education, and global leadership development programs for managers and employees in the talent pool are also implemented. Benefits are provided for field employees in accordance with the collective bargaining agreement.

Benefits Provided to Senior Executives

The rights granted to members of the Board of Directors are determined by the General Assembly, and there is no remuneration based on the performance of the members of the Board of Directors or reflecting the performance of the Company in determining the financial rights of the members of the Board of Directors.

The benefits provided to senior executives during the period are as follows:

30/09/2025

Rights granted to senior managers	22.652.717
Other long-term benefits	-
Grand Total	22.652.717

The rights granted to members of the Board of Directors are determined by the General Assembly, and there is no remuneration based on the performance of the members of the Board of Directors or reflecting the performance of the Company in determining the financial rights of the members of the Board of Directors. In 2025, a total of TL 1,350,000-TL gross attendance fee was paid to independent members of the Board of Directors. In addition, there were no payments made to Board of Directors members or other executive management for the 2025 period. Furthermore, no loans were granted to any Board of Directors member or Company executive, no credit was extended, no benefits were provided under the guise of credit through a third party, and no guarantees or other forms of security were provided in their favor during the period.

Collective Labor Agreements

In accordance with the collective labor agreement made between the United Metal Workers' Union and the MESS - Turkish Metal Industrialists' Union, of which our Company is a member; The Collective Labor Agreement, which includes our company and covers the period of September 1, 2023 -August 31, 2025 is implemented in our company.

Investment Incentive Practices :

As per the Law no, 5746 on Supporting research and Development Activities, we receive incentives and support granted for R&D Centers.

We were granted an investment incentive for "production of insulated wires and cables" on 10.10.2022. within the scope of Reduced Corporate Tax, The incentives granted is classified under according to tax incentive legislation and provides tax incentive of 30%, In the Company's statement of financial position, a reduction is made in the corporate tax for the current period according to the amount of investment spending.

Annual Activity Report Legal Basis:

The Group's Annual Activity Report for the Accounting Period of 01.01.2025-30.09.2025 is based on the provisions of the "Regulation on Determining the Minimum Content of the Annual Activity Report of Companies" prepared by the Ministry of Customs and Trade, based on the third paragraph of Article 516 and Article 518 of the Turkish Commercial Code, It has been prepared in accordance with the provisions of the "Communiqué on Principles of Financial Reporting in the Capital Market" of the Capital Markets Board.

Principles for Preparing the Annual Activity Report

The annual activity report shall reflect the business stream and the financial position of the company, in all aspects, in an accurate, complete, straight-forward, realistic and honest manner for the relevant fiscal year, taking into consideration the rights and interests of the company. All misleading, exaggerated and untrue statements are avoided, Annual activity report is prepared in a detailed manner to ensure shareholders have complete and accurate access to all kinds of information about company activities.

Annual Activity Report Approval:

The Interip Period Activity Report of the Group for the fiscal period 01.01.2025-30.09.2025 was approved by the members of the Board of Directors of the Company on 10.11.2025.