Ford Otomotiv Sanayi : Project-based State Aid

KAMUYU AYDINLATMA PLATFORMU

FORD OTOMOTİV SANAYİ A.Ş.

Material Event Disclosure (General)

Summary

Project-based State Aid

Material Event Disclosure General

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	Announcement Content
	Explanations

The incentive application made by our company within the scope of the preliminary studies carried out for the product diversification and expansion investments foreseen for the long-term New Generation Commercial Vehicle Projects, whose feasibility studies and contract processes are still ongoing, at the Kocaeli Factories campus has been approved and the granting of Project Based State Aid for the aforementioned investments has been accepted with the Presidential Decree No. 3273 published in the Official Gazette dated 04/12/2020 and numbered 31324.

The approved incentive foresees spending 20,501,205,701 TL until mid 2026 within the scope of the projects, employing additional 3,000 people, increasing the current production capacity from 440,000 to 650,000 units, establishing a 130,000 -unit battery assembly facility.

Incentives provided in this context are as follows:

1. VAT Exemption and Refund
2. Customs Duty Exemption
3. Corporate Tax Reduction (tax deduction rate: 100%, investment contribution rate: 100%, ratio of the investment contribution amount that can be used during the investment period: 100%)

1. Social Security Premium Employer's Share Support (10 years without maximum amount limit)
2. Income Tax Withholding Support (10 years)

1. 1. Qualified Personnel Support (maximum 250,000,000 TL)
2. Energy Support (50% of energy consumption expenditures not exceeding 200,000,000 TL for 10 years from the date of commissioning)
3. 1. Investment Location Allocation (in Kocaeli province)

Since the studies on investment and our negotiations with Ford Motor Company are ongoing, the board of directors resolution has not been taken yet, and following the completion of the evaluation processes regarding the foreseen investments, necessary explanations will be made in accordance with the Communiqué On Material Events Disclosure of Capital Markets Board for important developments.

We proclaim that our above disclosure is in conformity with the principles set down in "Material Events Communiqué" of Capital Markets Board, and it fully reflects all information coming to our knowledge on the subject matter thereof, and it is in conformity with our books, records and documents, and all reasonable efforts have been shown by our Company in order to obtain all information fully and accurately about the subject matter thereof, and we're personally liable for the disclosures.