Türk Traktör ve Ziraat Makineleri : 30.09.2023 Independent Audit Report

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD FROM 1 JANUARY TO 30 SEPTEMBER 2023

(ORIGINALLY ISSUED IN TURKISH)

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONTENTS	PAGE
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION	1 - 2
CONDENSED INTERIM STATEMENTS OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME	3
CONDENSED INTERIM STATEMENTS OF
CHANGES IN EQUITY	4 - 5
CONDENSED INTERIM STATEMENTS OF CASH FLOWS	6
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS	7 - 50
NOTE 1	ORGANISATION AND NATURE OF OPERATIONS OF THE COMPANY	7
NOTE 2	BASIS OF PRESENTATION OF FINANCIAL STATEMENTS	7	- 12
NOTE 3	REPORTING BY SECTIONS	12
NOTE 4	CASH AND CASH EQUIVALENTS	13
NOTE 5	FINANCIALINVESTMENTS	13
NOTE 6	FINANCIAL LIABILITIES	14	- 16
NOTE 7	TRADE RECEIVABLES AND PAYABLES	16	- 17
NOTE 8	INVENTORIES	18
NOTE 9	PROPERTY, PLANT AND EQUIPMENT	19	- 20
NOTE 10	RIGHT OF USE ASSETS	20	- 21
NOTE 11	INTANGIBLE ASSETS	21	- 22
NOTE 12	OTHER ASSETS AND LIABILITIES	22
NOTE 13	PREPAID EXPENSES AND DEFERRED INCOME	23
NOTE 14	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES	23	- 27
NOTE 15	EMPLOYEE BENEFITS	28
NOTE 16	EQUITY	28	- 30
NOTE 17	REVENUE AND COST OF SALES	30
NOTE 18	OTHER INCOME/EXPENSE FROM OPERATING ACTIVITIES	31
NOTE 19	FINANCIAL INCOME	31
NOTE 20	FINANCIAL EXPENSE	31
NOTE 21	TAX ASSETS AND LIABILITIES	32	- 35
NOTE 22	EARNINGS PER SHARE	35
NOTE 23	RELATED PARTY EXPLANATIONS	35	- 40
NOTE 24	FINANCIAL INSTRUMENTS AND NATURE AND EXTENT OF RISKS ARISING FROM
	FINANCIAL INSTRUMENTS	41	- 50
NOTE 25	SUBSEQUENT EVENTS	50

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

			Current Period	Audited
			Unaudited
		Notes	30 September	31 December
		2023	2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents	4	7,180,694,578	4,416,872,941
Financial investments	5	7,507,228	420,033,225
Trade receivables
-	Trade receivables from related parties	7, 23	405,588,806	1,274,066,993
-	Trade receivables from third parties	7	1,835,673,900	827,840,777
Inventories	8	5,916,701,667	3,614,962,987
Prepaid expenses	13	20,773,269	15,168,023
Current income tax assets	21	-	3,069
Other current assets	12	1,040,800,710	1,008,138,837
TOTAL CURRENT ASSETS		16,407,740,158	11,577,086,852
NON - CURRENT ASSETS
Trade receivables
-	Trade receivables from third parties	7	109,458	109,458
Other receivables
-	Other receivables from third parties		412,390	393,753
Property, plant and equipment	9	1,229,711,244	931,097,842
Right of use assets	10	99,840,843	93,425,351
Intangible assets	11	932,457,908	621,820,738
Prepaid expenses	13	127,709,816	90,815,165
Deferred tax assets	21	1,222,802,694	481,193,003
TOTAL NON - CURRENT ASSETS		3,613,044,353	2,218,855,310
TOTAL ASSETS		20,020,784,511	13,795,942,162

The financial statements prepared as at and for the period ended 30 September 2023 have been approved by the Board of Directors on 24 October 2023.

The accompanying notes form an integral part of these condensed interim financial statements.

1

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

			Current Period	Audited
			Unaudited
		Notes	30 September 2023	31 December 2022
LIABILITIES
CURRENT LIABILITIES
Short-term financial liabilities
Short-term financial liabilities to other parties
-	Bank borrowings	6	2,103,492,670	2,432,320,224
-	Other financial liabities
Short-term portion of long-term financial liabilities
Short-term portion of long-term financial liabilities from
	related parties
-	Lease liabilities	6	52,924,901	24,918,517
Short-term portion of long-term financial liabilities from
	third parties		552,204,989	848,288,136
- Bank borrowings	6
-	Lease liabilities	6	15,805,98	7,441,898
Trade payables		298,676,871	271,784,705
- Trade payables to related parties	7, 23
- Trade payables to third parties	7	6,030,515,587	4,653,430,244
Payables related to employee benefits	15	326,354,265	149,120,886
Other payables
- Other payables to third parties		62,137,331	124,654,842
Government incentives and aids	12	3,121,626	3,321,575
Deferred income	13	787,295,008	566,700,564
Tax liability for the period	21	1,040,023,428	-
Short - term provision		30,910,891	13,328,665
-	Short term provision for employee benefits	14
-	Other short term provisions	14	155,137,354	120,401,000
TOTAL CURRENT LIABILITIES		11,458,600,907	9,215,711,256
NON - CURRENT LIABILITIES
Long-term financial liabilities
Long-term financial liabilities from related parties		44,972,449	68,144,904
-	Lease liabilities	6
Long-term financial liabilities from third parties		193,318,992	507,427,245
- Bank borrowings	6
-	Lease liabilities	6	1,090,649	1,652,616
-	Other Long-term liabilities	6	117,875,047	-
Long - term provisions
-	Long term provision for employee benefits	14	275,206,361	256,458,270
-	Other long term provisions	14	172,264,260	108,334,042
TOTAL NON-CURRENT LIABILITIES		804,727,758	942,017,077
EQUITY		7,757,455,846	3,638,213,829
Paid-in share capital	16	100,066,875	53,369,000
Adjustments to share capital	16	-	39,014,356
Merger reserve		(5,569,000)	(5,569,000)
Restricted profit reserves		448,435,448	238,702,293
Other accumulated comprehensive income and
expense not to be reclassified to profit or loss
- Actuarial loss arising from		(222,600,487)	(194,390,177)
defined benefit plans
Other accumulated comprehensive income and
expense to be reclassified to profit or loss		10,524,341	58,947,006
-	Gain/(Losses) on cash flow hedging
Retained earnings		1,130,723,677	477,121,790
Net profit for the year		6,295,874,992	2,971,018,561
TOTAL LIABILITIES		20,020,784,511	13,795,942,162

The accompanying notes form an integral part of these condensed interim financial statements.

2

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

			Current	Current	Prior	Prior
			Period	Period	Period	Period
			Unaudited	Unaudited	Unaudited	Unaudited
			1 January -	1 July -	1 January -	1 July-
		Notes	30 September	30 September	30 September	30 September
			2023	2023	2022	2022
	Revenue	17	32,416,000,955	12,087,497,672	14,616,448,422	5,735,695,920
	Cost of sales (-)	17	(23,140,517,013)	(8,132,523,514)	(11,856,013,855)	(4,609,213,200)
	GROSS PROFIT		9,275,483,942	3,954,974,158	2,760,434,567	1,126,482,720
	Marketing expenses (-)		(955,416,731)	(403,554,339)	(395,282,227)	(155,759,152)
	General administrative expenses (-)		(538,976,807)	(191,483,094)	(241,540,030)	(93,528,938)
	Research and development expenses (-)		(95,713,808)	(33,329,255)	(49,920,258)	(16,771,181)
	Other income from operating activities	18	2,183,064,322	1,051,615,177	939,291,963	234,204,537
	Other expenses from operating activities (-)	18	(2,609,907,088)	(1,269,375,132)	(1,143,800,135)	(286,722,699)
	OPERATING PROFIT		7,258,533,830	3,108,847,515	1,869,183,880	807,905,287
	Income from investment activities		5,033,483	1,780,661	972,621	(736)
	OPERATING INCOME BEFORE		7,263,567,313	3,110,628,176	1,870,156,501	807,904,551
	FINANCIAL INCOME
	Financial income	19	1,350,243,541	389,774,057	422,389,087	93,886,386
	Financial expenses	20	(1,118,223,498)	(300,160,803)	(520,294,894)	(192,788,884)
	PROFIT BEFORE TAXATION ON		7,495,587,356	3,200,241,430	1,772,250,694	709,002,053
	INCOME
	Taxes on income (-)	21	(1,920,782,374)	(908,120,540)	(334,487,474)	(109,099,355)
	Deferred tax income/(expense)	21	721,070,010	424,871,792	174,289,449	52,827,628
	NET PROFIT FOR THE PERIOD		6,295,874,992	2,716,992,682	1,612,052,669	652,730,326
	Earnings per share (TRY)	22	0,8580	0,2715	0,3021	0,1223
	Other comprehensive income/(expense)
	Not to be reclassified to profit or loss:
	Actuarial loss arising from defined benefits
	plans	14	(37,613,747)	1,074,291	(30,176,847)	1,595,780
	Other comprehensive expense not to be
	reclassified
	to profit or loss, tax effect
	Actuarial gain/ loss arising from defined benefit
	plans, tax effect	21	9,403,437	1,665,829	6,035,369	(319,156)
	To be reclassified to profit or loss :
	Profit/(Losses) on cash flow hedging
	Other comprehensive expense to be		(59,558,909)	(25,132,267)	(80,743,038)	(23,429,839)
	reclassified to profit or loss,
	tax effect
	Losses on
	cash flow hedging, tax effect	21	11,136,244	4,250,916	18,570,899	5,388,863
	Other comprehensive income/(expense)		(76,632,975)	(18,141,231)	(86,313,617)	(16,764,352)
			6,219,242,017	2,698,851,451
TOTAL COMPREHENSIVE INCOME				1,525,739,052	635,965,974

The accompanying notes form an integral part of these condensed interim financial statements.

3

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2022

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

					Other
					accumulated
				Other accumulated	income or
				income or expense	expense items
				items	to be
				not be reclassified	reclassified to
				to profit or loss	profit or loss
				Actuarial loss
	Paid in	Adjustment		arising from	Losses on	Restricted
	share	to share	Merger	defined benefit	cash flow	profit	Retained	Net profit
	capital	capital	reserve	plans	hedges	reserves	earnings	for the period	Equity
1 January 2023	53,369,000	39,014,356	(5,569,000)	(194,390,177)	58,947,006	238,702,293	477,121,790	2,971,018,561	3,638,213,829
Transfers	-	-	-	-	-	209,733,155	2,761,285,406	(2,971,018,561)	-
Dividends	-	-	-	-	-	-	(2,100,000,000)	-	(2,100,000,000)
Comprehensive income	46,697,875	(39,014,356)	-	-	-	-	(7,683,519)	-	-
Net profit for the period	-	-	-	-	-	-	-	6,295,874,992	6,295,874,992
Other comprehensive income
Actuarial loss arising from
defined benefits plans	-	-	-	(28,210,310)	-	-	-	-	(28,210,310)
Losses on cash flow hedging	-	-	-	-	(48,422,665)	-	-	-	(48,422,665)
Total other comprehensive								-	(76,632,975)
Income/(expense)	-	-	-	(28,210,310)	(48,422,665)	-	-
Total comprehensive income	-	-	-	(28,210,310)	(48,422,665)	-	-	6,295,874,992	6,219,242,017
30 September 2023
	100,066,875	-	(5,569,000)	(222,600,487)	10,524,341	448,435,448	1,130,723,677	6,295,874,992	7,757,455,846

The accompanying notes form an integral part of these condensed interim financial statements.

4

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

					Other
					accumulated
				Other accumulated	income or
				income or expense	expense items
				items	to be reclassified
				not be reclassified	to profit or loss
				to profit or loss
				Actuarial loss
	Paid in	Adjustment		arising from	Losses on	Restricted
	share	to share	Merger	defined benefit	cash flow	profit	Retained	Net profit for
	capital	capital	reserve	plans	hedges	reserves	earnings	the period	Equity
1 January 2022	53,369,000	39,014,356	(5,569,000)	(62,365,129)	110,720,788	118,969,138	474,667,368	1,322,187,577	2,050,994,098
Transfers	-	-	-	-	-	119,733,155	1,202,454,422	(1,322,187,577)	-
Dividends	-	-	-	-	-	-	(1,200,000,000)	-	(1,200,000,000)
Comprehensive income	-	-	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	-	-	1,612,052,669	1,612,052,669
Other comprehensive income
Actuarial loss arising from	-	-	-	(24,141,478)	-	-	-	-	(24,141,478)
defined benefits plans
Losses on cash flow hedging	-	-	-	-	(62,172,139)	-	-	-	(62,172,139)
Total other comprehensive
Income/(expense)	-	-	-	(24,141,478)	(62,172,139)	-	-	-	(86,313,617)
Total comprehensive income	-	-	-	(24,141,478)	(62,172,139)	-	-	1,612,052,669	1,525,739,052
30 September 2022	53,369,000	39,014,356	(5,569,000)	(86,506,607)	48,548,649	238,702,293	477,121,790	1,612,052,669	2,376,733,150

The accompanying notes form an integral part of these condensed interim financial statements.

5

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

		Current period	Prior period
		unaudited	unaudited
		1 January -	1 January -
		30 September	30 September
	Notes	2023	2022
A. CASH FLOWS FROM OPERATING ACTIVITIES		6,023,326,718	1,041,050,185
Net profit for the period		6,295,874,992	1,612,052,669
Adjustments to reconcile profit for the period		1,443,137,519	667,105,596
Amortization and depreciation		260,738,771	149,395,298
Provision for impairment on inventories	8	(960,885)	3,302,028
Provision for employee benefits	14	58,348,863	25,327,008
Provision for doubtful receivables	7	(724,626)	(1,846,764)
Other provisions	14	98,666,572	22,711,731
Government incentives and aids		(199,949)	(362,172)
Interest income and expense	19, 20	(429,521,150)	203,460,720
Adjustments related to fair value losses (gains) of financial assets		139,885,500	-
Tax income/expense	21	1,199,712,364	160,198,025
(Gain)/loss from sales of property plant and equipment		(5,033,483)	(972,621)
Other adjustments to reconcile profit		122,225,542	105,892,343
Changes in working capital		(775,297,622)	(1,038,354,955)
Trade receivables from third parties		(1,007,108,497)	(291,398,138)
Trade receivables from from related parties		868,478,187	(339,794,095)
Inventories		(2,300,777,795)	(976,854,752)
Other current assets		(32,658,804)	(243,082,563)
Other receivables		(18,637)	562,442
Prepaid expenses		(42,499,897)	(30,099,857)
Trade payables to related parties		26,892,166	(39,176,671)
Trade payables to third parties		1,377,085,343	720,626,743
Deferred income		220,594,444	140,326,175
Other liabilities		(62,517,511)	8,582,623
Debt for employee termination benefits		177,233,379	11,953,138
Net cash provided by operating activities		6,963,714,889	1,240,803,310
Employee termination benefits paid		(59,632,293)	(7,542,455)
Taxes paid		(880,755,878)	(192,210,670)
B. CASH FLOWS FROM INVESTING ACTIVITIES		(545,424,789)	(431,324,410)
Proceeds from sales of property, plant and equipment
and intangible assets		6,177,121	979,285
Payments for purchases of property, plant and equipment
and intangible assets		(854,045,137)	(429,479,794)
Proceeds from government grants		-	26,099
Cash inflows from the sale of shares or debt instruments
of other enterprises or funds		306,643,227	-
Cash outflows from the sale of shares or debt instruments
of other enterprises or funds		(4,200,000)	(2,850,000)
C. CASH FLOWS FROM FINANCING ACTIVITIES		(3,113,927,600)	619,326,705
Proceeds from bank borrowings	6	2,745,000,000	3,073,963,849
Repayment of bank borrowings	6	(4,167,590,852)	(1,095,143,820)
Dividends paid	16	(2,100,000,000)	(1,200,000,000)
Interest paid		(402,623,026)	(201,385,494)
Interest received		859,499,865	58,101,160
Repayment of lease liabilities	6	(48,213,587)	(16,208,990)
NET DECREASE IN CASH AND CASH EQUIVALENTS
BEFORE CURRENCY TRANSLATION
DIFFERENCES (A+B+C)		2,363,974,329	1,229,052,480
D. EFFECT OF CURRENCY TRANSLATION DIFFERENCES
ON CASH AND CASH EQUIVALENTS		368,162,145	(11,868,073)
NET INCREASE IN CASH AND CASH EQUIVALENTS
(A+B+C+D)		2,732,136,474	1,217,184,407
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE PERIOD	4	4,366,412,147	1,559,799,196
CASH AND CASH EQUIVALENTS AT THE END OF
THE PERIOD (A+B+C+D+E)	4	7,098,548,621	2,776,983,603

The accompanying notes form an integral part of these condensed interim financial statements.

6

HİZMETE ÖZEL CONFIDENTIAL

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira (TRY), unless otherwise indicated)

NOTE 1 - ORGANISATION AND NATURE OF OPERATIONS OF THE COMPANY

Türk Traktör ve Ziraat Makineleri A.Ş. (the "Company") was established in 1954 in Ankara, as Minneapolis Moline Türk Traktör ve Ziraat Makineleri A.Ş. to undertake the manufacturing and trade of farm tractors, harvesters and other agricultural machinery and equipment. The name of the Company was changed as Türk Traktör Ziraat Makineleri A.Ş. in 1968 upon the purchase of 25% of the shares held by Ege Makina ve Ticaret A.Ş., a group company of the Koç Holding A.Ş. ("Koç Holding"). As of 30 September 2023, major shareholders of the Company are Koç Holding and CNHI Osterreich GmbH ("CNHI Osterreich") (Note 16). The number of personnel working within the Company as of 30 September 2023 is 2,944 (Permanent: 2,577 , temporary: 367) (31 December 2022: 2,881 (Permanent 2,782, temporary: 99, average: 2,837). The average number of personnel working within the Company for the period ended 30 September 2023 is 2,883.

The Company conducts marketing and selling activities in the domestic market, through its 131 tractor sales dealers, 149 spare part dealers and 33 construction equipment dealers (31 December 2022 : 131 tractor sales dealers, 150 spare part dealers, 33 construction equipment dealers).

The Company signed an import and distribution agreement providing after-sales services for activities such as domestic oriented sales and marketing for CNHI International SA, New Holland and Case branded imported construction equipment.

The Company is registered in Turkey in the following address:

Gazi Mahallesi Anadolu Bulvarı No: 52-52A

06560 Yenimahalle Ankara

As of 30 September 2023, 25% of the shares of the Company are quoted on Borsa Istanbul ("BIST") (31 December 2022: 25%) (Note 16).

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of presentation

The main accounting policies used for preparing the Company's financial statements are stated below:

Basis of presentation

The financial statements of the Company have been prepared in accordance with the Turkish Financial Reporting Standards, ("TFRS") and interpretations as adopted in line with international standards by the Public Oversight Accounting and Auditing Standards Authority of Turkey ("POA") in line with the communiqué numbered II-14.1 "Communiqué on the Principles of Financial Reporting In Capital Markets" ("the Communiqué") announced by the Capital Markets Board of Turkey ("CMB") on 13 June 2013 which is published on Official Gazette numbered 28676. TFRS are updated in harmony with the changes and updates in International Financial and Accounting Standards ("IFRS") by the communiqués announced by the POA.

The financial statements are presented in accordance with "Announcement regarding with TFRS Taxonomy" which was published on 4 October 2022 by POA and the format and mandatory information recommended by CMB.

7

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023

(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.1 Basis of presentation (Continued)

The condensed interim financial statements are prepared in accordance with the Communiqué and TAS 34 - "Interim Financial Reporting". In accordance with the TAS 34, entities are allowed to prepare a complete or condensed set of interim financial statements. In this framework, the Company has preferred to prepare condensed financial statements in the interim periods. These interim financial statements should be read in conjunction with the financial statements prepared for the year ended 31 December 2022.

The Company maintains its books of account and prepares its statutory financial statements in Turkish Lira (TRY) in accordance with regulations on accounting and reporting framework and the Uniform Chart of Accounts issued by the Ministry of Finance.

The condensed interim financial statements have been prepared under historical cost conventions except for the financial assets and liabilities carried at fair value and in functional and presentation currency, Turkish Lira, of the Company. The financial statements are based on the statutory records, which are maintained under historical cost conventions, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with TAS.

POA made a statement on 20 January 2022, in order to eliminate the hesitations about whether the companies applying TFRS will apply TAS 29 Financial Reporting in High Inflation Economies in the 2021 financial reporting period. Accordingly, it has been stated that the enterprises applying TFRS do not need to make any adjustments within the scope of TAS 29 Financial Reporting in High Inflation Economies ("TAS 29"), and no new explanation has been made by the POA on the application of TAS 29. Considering that no new disclosure has been made as of the date these financial statements were prepared, while preparing the financial statements as of 30 September 2023, no inflation adjustment was made according to TAS 29.

Functional and presentation currency

Functional and presentation currency of the Company is TRY.

2.2 Changes in accounting estimates

If changes in accounting estimates are related to only one period, they are recognised in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively. The accounting policies except the situation stated below used in the preparation of these financial statements for the period ended 30 September 2023 are consistent with those used in the preparation of financial statements for the period ended 31 December 2022.

2.3 Comparative Information and Restatement of Prior Year Financial Statements

The Company, as of September 30, 2023, has prepared the balance sheet in comparative form with the financial statements prepared as of December 31, 2022. The income statement, statement of comprehensive income, statement of cash flows, and statement of changes in equity for the period January 1 - September 30, 2023, have been prepared in comparative form with the period January 1 - September 30, 2022. If deemed necessary, comparative information is reorganized to ensure compatibility with the presentation of the current period financial statements.

8