Dividend Policy

Company dividend policy is determined according to the Turkish Law of Commerce, the CMB's legislation and its regulations and decisions, the tax laws, other relevant legislation, and the Company's articles of association.

1- Article 27 of the Holding's Articles of Association reads as follows:

The net profit of the Holding which is reflected in the balance sheet as the sum remaining after the deduction of general expenses and depreciation which should be paid and set aside by the Holding as well as all taxes payable and losses of previous years (if any) from the revenue calculated at the end of the operating term shall be distributed as follows. The distribution of the net profit should be in accordance with the Capital Market Law and the announcements of the Capital Market Board.

General Legal Reserves:

a) 5% is set aside as legal reserve.

First Dividend:

b) From the remaining amount, and over the sum that should be calculated by adding any donations made during the year, first dividend in the ratio of at least 30% and not below the ratio and sum stipulated by the CMB is set aside.

c) A maximum of 3% of the remaining amount is allocated to the Tekfen Egitim Saglik Kültür Sanat ve Dogal Varliklari Koruma Vakfi Foundation which has a redeemed share.

d) After the above deductions are made, the AGM may decide to distribute profits not exceeding 2% to the members of the Board of Directors (in accordance with the ratios and principles to be deemed appropriate by the Board of Directors).

Second Dividend:

e) The General Assembly is authorized to distribute wholly or partially the amount of the net profit remaining after the deduction of the amounts specified in (a), (b), (c) and (d) as second dividend or, if desired, allocate it as extraordinary reserve fund.

General Legal Reserve:

f) Sub-paragraph (c) of paragraph 2 and paragraph 3 of the Article 519 of the Turkish Commercial Code does not apply for the Holding.

g) No decision can be made to set aside any legal reserve, to carry over profits to the next year or to distribute profit to founder of dividend shares and common redeemed shares owners or board members and employees, workers and laborers of the Holding, charitable foundations founded for different purposes and person/institutions with similar qualifications unless the reserves stipulated in applicable legislation are set aside and first dividend is distributed to the shareholders as mentioned in the Articles of Association in cash and/or in the form of share certificates.

h) Dividend is distributed equally to all shares existing as of the accounting period regardless of issuance and acquisition date thereof.

Data and method of distribution of profit is determined by the General Assembly upon proposal of the Board of Directors in accordance with the Capital Market Law and the provisions of the Turkish Commercial Code.

2- The place and date of dividend payments are set in accordance with Capital Market Board Regulations.

3- Within the framework of Article 28 of the Company's Articles of Association, if the Company General Assembly so authorizes the Board, interim dividend payments may be made (for that specific year only). The Capital Markets Law is taken into account during this process.