Donation and Aid Policy

Article 1: Scope and Legal Basis

This policy determines the principles regarding donations and aid to be made by Çates Elektrik Üretim A.Ş. ("Company"). This policy, including the Capital Markets Law no. 6362 (“CMB”), the Turkish Commercial Code no. 6102 (“TTK”), the Dividend Communiqué no. II-19.1, the Corporate Governance Communiqué no. II-17.1 and the corporate governance principles in its annex. It has been prepared within the framework of the regulations of the Capital Markets Board (“CMB”) and the relevant provisions of the Company's Articles of Association (“Articles of Association”).

Article 2: Purpose

By meeting social needs with the awareness of social and corporate responsibility and contributing to the future and development of the country, the company provides services to the public in education, health, culture-art, law, scientific research, environmental protection, sports, reintegration of the disabled, entrepreneurship, technology, communication and similar services. It has created a donation policy in order to determine the principles and rules necessary to encourage and support beneficial activities with unrequited donations, to manage the donation process, and to inform, report and determine responsibilities in this regard.
The main purpose of donations and aid is to fulfill social responsibilities, to create a corporate responsibility awareness among our shareholders and employees, as well as to meet social and community needs and benefit the public. For this purpose, we also support the realization of projects that will contribute to social development.

Article 3: Donation Principles:

The necessary provision for donations to be made by the Company is included in the Company's Articles of Association. The Company, within the framework of CMB regulations, CMB, TTK, Turkish Code of Obligations No. 6098 and other secondary regulations, as well as internal regulations of the Company and the article of the Articles of Association regarding the subject of business, within the scope of corporate social responsibility practices, comply with CMB's disguised profit transfer regulations and mandatory corporate activities. It can make donations and aid by the decision of the board of directors, within the limits determined by the general assembly and without disrupting the business subject, provided that it does not violate the management principles and the donations made during the year are presented to the information of the partners at the general assembly. However, donations and aid that would compromise the principle of protecting the rights of shareholders are avoided. All donations and aid are made in accordance with the Company's vision, mission and policies, taking into account ethical principles and values ​​and the Company's annual budget allocations. Donations and aid can be made in two ways: in cash and in kind.
Compliance with the Company's corporate social responsibility policies is taken into account when choosing the form and amount of the donation and the institution, organization or person to whom it will be made. Donations and aid can be made to all kinds of institutions, organizations and individuals, including universities, educational institutions, foundations, public and other associations and such persons or institutions, non-governmental organizations.
Donations made are added to the distributable profit base. Regarding the donation amount, in any case, the mandatory limits determined by the CMB are adhered to.
Within the framework of the Capital Markets legislation, the donations and aids made by the Company must be at least 1% or more of the last publicly disclosed balance sheet assets, or the total of the donations and aids below 1% must be at least 1% of the last publicly disclosed balance sheet assets.