Dividend Policy

Dividend Distribution Policy and Dividend Distribution Time Schedule
The amounts that the Company is obliged to pay and reserve as per the general accounting principles such as general expenses of the company, various depreciation costs, etc. and the compulsory taxes required to be paid by the Company and the provisions reserved for financial liabilities are deduced from the incomes determined at the end of the fiscal year; from the remaining (net) profit indicated in the annual balance sheet, if any, the previous years’ losses are deduced and the residual balance amount is distributed in the order and according to the principles given below.

First Legal Reserves
5% of the residual balance of profits is reserved as the first legal reserves until the amount of reserves reaches 20% of the paid-in capital as per the article 466 of the Turkish Commercial Code.

First Dividends
Of the remaining balance, an amount is reserved which is sufficient enough for distribution of first dividends among the shareholders at the rates specified by the Capital Markets Board.

5% of the remaining balance is distributed among the officials, civil servants and workers including the general manager and vice general managers upon the resolution of the Board of Directors after the approval of dividend distribution decision by the General Assembly.

Second Legal Reserves
After the deduction from the net profit of the first legal reserves and the dividends by 5% for the shareholders specified in the paragraph 3 of the article 466/2 of the Turkish Commercial Code, 1/10 of the portion to be distributed among the shareholders and those participating in the shares is reserved and added to the legal reserves.

The remaining amount is used in the manner to be determined by the General Assembly. Unless the legal reserves required to be reserved as per the laws and the first dividends specified for the shareholders in the articles of incorporation are reserved, any decision cannot be made for the reservation of any other reserve funds, transferring of the residual balances as profits to the following year, or distribution of a portion of the profits among the officials, civil servants and workers including the director general and assistants to the director general; and furthermore, any portion of the profit cannot be distributed among these persons unless the first dividend specified is paid.