ENTEGRE FAALİYET RAPORU 20 24 INTEGRATED ANNUAL REPORT 2024 TECHNOLOGIES THAT MAKE LIFE EASIER WORK WITH TURKCELL Contents Message from the Chairman of the Board--------------------- 4 Board of Directors--------------------------------------------- 6 Message from the CEO- -------------------------------------- 12 Management Team- ------------------------------------------ 16 Top Management of Subsidiaries- ---------------------------- 21 About the Report---------------------------------------------- 26 Turkcell at a Glance------------------------------------------- 27 Turkcell Group Companies- ----------------------------------- 28 Turkcell 2024 Awards------------------------------------------ 32 Turkcell Group: Developments in 2024- ------------------------ 34 2024 Strategic Objective and Managerial-----------------------36 Achievement Assessment TURKCELL CREATING VALUE 40 Turkcell Group Sustainability Management-------------------- 42 and Involvement of Senior Management Defining Turkcell's Sustainability Priorities---------------------- 44 Turkcell Group Sustainability Strategy: - ----------------------- 46 in Positive Imprint in Sustainability Sustainable Development Objectives Supported-------------- 48 Interactions with our Stakeholders- --------------------------- 50 Turkcell Group’s Sustainability Initiatives Memberships--------- 52 Turkcell Value Creation Process- ------------------------------ 54 Measuring the Value Created--------------------------------- 56 STRONG CORPORATE GOVERNANCE 58 Shareholder Structure----------------------------------------- 60 Board of Directors Structure----------------------------------- 60 Board of Directors Performance Evaluation Method----------- 62 Human Rights, Business Ethics and Common Values ----------- 63 Anti-Bribery and Anti-Corruption, Compliance ---------------- 64 with International Capital Markets and Economic & Trade Sanctions and Export Controls Anti-Bribery and Anti-Corruption------------------------------ 64 Compliance with International Capital Markets--------------- 64 Economic and Trade Sanctions and Export Controls - --------- 65 Competition Management------------------------------------ 65 Effective Risk and Crisis Management- ----------------------- 66 Corporate Risk Management- -------------------------------- 66 Information Security Risks- ------------------------------------ 66 Financial Risks------------------------------------------------- 66 Strategic Risks- ----------------------------------------------- 67 Legal Risks- --------------------------------------------------- 67 Business Continuity Risks- ------------------------------------- 67 Operational Risks- -------------------------------------------- 68 Market Risks- ------------------------------------------------- 68 Business Continuity Management- ---------------------------- 68 Turkcell Disaster and Crisis Management Program- ----------- 69 Internal Control and Continuous Improvement----------------- 69 Internal Audit-------------------------------------------------- 71 MANUFACTURED CAPITAL 116 Strong Infrastructure- ----------------------------------------- 119 Strong infrastructure and superior service quality- ------------ 120 Mobile Network Infrastructure--------------------------------- 120 Base Stations ------------------------------------------------- 120 Base Stations and Public Health------------------------------- 121 Towers-------------------------------------------------------- 121 Telco Cloud- -------------------------------------------------- 122 Connected Vehicles and Mobility Solutions-------------------- 122 One Number Service------------------------------------------ 122 Service Operations Center (SOC)- ---------------------------- 122 Investment in Domestic Equipment----------------------------- 123 Strong Fiber Infrastructure------------------------------------- 123 Powerful Spectrum-------------------------------------------- 124 Refarming----------------------------------------------------- 124 Data Centers-------------------------------------------------- 125 INTELLECTUAL CAPITAL 126 Continuously Developing Intellectual Capital------------------ 129 Value Creation by Use of Open Source Code------------------ 132 Paycell R&D Center-------------------------------------------- 132 Digital Service Portfolio---------------------------------------- 133 Eco-Friendly and practical Solutions Through Digitalisation- -- 136 Digital Signature at Home A better customer experience with artificial intelligence------- 136 Privacy and Security- ----------------------------------------- 139 Digital Business Services (DBS)--------------------------------- 140 Turkcell and Mobility------------------------------------------ 141 SOCIAL CAPITAL 142 Brand and Responsibility-------------------------------------- 145 Our Strong Sales Channels and Services- --------------------- 147 Employee Experience in Sales Channels----------------------- 148 Our Digital Sales Channels and Services- --------------------- 150 Bill Payment Channel Management- -------------------------- 150 Our Tariffs and Packages- ------------------------------------ 151 Innovation- --------------------------------------------------- 152 International and Wholesale---------------------------------- 155 Our Segments------------------------------------------------- 156 Our Customer Relations--------------------------------------- 159 Value-Oriented and Responsible Supply Chain Management--- 161 Equality of Digital and Social Opportunity--------------------- 163 Accessibility in Service Processes------------------------------ 165 Whiz Kids Project- -------------------------------------------- 166 Social Investment and Sponsorship Projects- ----------------- 168 Sports Sponsorships------------------------------------------- 169 Our Culture and Arts Sponsorships---------------------------- 170 Our Other Sponsorship Projects------------------------------- 171 Income Assurance Management------------------------------ 71 Legal Compliance--------------------------------------------- 71 Our Core Competencies- ------------------------------------- 72 Our Strategic Focuses, Initiatives and Opportunities---------- 74 Leadership in Telecom- --------------------------------------- 75 Digital Services------------------------------------------------ 76 Digital Business Services (DBS)--------------------------------- 76 Digital Financial Services-------------------------------------- 78 FINANCIAL CAPITAL 80 Strong Financial Performance--------------------------------- 82 Revenues from Operations------------------------------------ 83 Business Model Hedging Practices- --------------------------- 84 Efficient Capital Allocation------------------------------------ 86 Financing Diversity-------------------------------------------- 86 Strong and Transparent Financial Management--------------- 87 Turkcell New Technologies Venture Capital Investment Fund (VCIF)-- 87 Transparent Investor Communication - Investor Relations------ 88 Capital market instruments performance---------------------- 89 Share and Bond Buybacks- ----------------------------------- 89 Sustainability Indices and Performance Indicators------------- 89 Share Information and Dividend Yield- ------------------------ 90 Analyst Recommendations------------------------------------ 91 Credit Rating-------------------------------------------------- 91 Digital Finance Transformation-------------------------------- 92 Fintech’s shining stars: Paycell, Financell and Wiyo------------- 92 Trends- ------------------------------------------------------- 94 Leadership in Telecom- --------------------------------------- 94 Big Data- ----------------------------------------------------- 95 Digital Transformation and Inclusion--------------------------- 95 Regulatory Developments and Sector Regulations- ----------- 95 Sustainable Financing Activities------------------------------- 96 The Progress in Fintech Applications- ------------------------- 97 Cyber Security- ----------------------------------------------- 97 Artificial Intelligence- ----------------------------------------- 97 HUMAN CAPITAL 98 Decent Workplace-------------------------------------------- 101 Diversity, Inclusion, and Equal Opportunity- ------------------- 101 Employer Branding and Talent Acquisition--------------------- 103 Making a Difference in Employment- -------------------------- 103 Employee Experience and Talent Management--------------- 104 Life at Turkcell------------------------------------------------- 104 Employee Loyalty and Happiness- ---------------------------- 105 Career and Skill Development Practices----------------------- 105 Performance Management and Feedback System------------ 106 Remuneration, Reward and Fringe Benefits-------------------- 107 Our Training and Development Approach--------------------- 108 Safe and Healthy Work Environment-------------------------- 114 NATURAL CAPITAL 172 Climate and Environmental Management--------------------- 175 Climate Change- --------------------------------------------- 178 Management of Climate Risks and Opportunities- ------------ 178 Sector Indicators---------------------------------------------- 182 Climate Transition Plan - -------------------------------------- 183 Climate Targets- ---------------------------------------------- 184 Resilient Business Strategy against Climate Change----------- 185 Greenhouse Gas Emissions------------------------------------ 188 Energy Management------------------------------------------ 190 Turkcell Energy Solutions- ------------------------------------- 191 Energy Efficiency---------------------------------------------- 192 Turkcell Kopilot------------------------------------------------ 193 Water Management- ----------------------------------------- 193 Efficiency in Data Centers------------------------------------- 194 Waste Management------------------------------------------ 195 Recycle into Education Project-------------------------------- 196 APPENDICES 198 APPENDIX-1: Cooperated National, International and---------- 198 Non-Governmental Organizations APPENDIX-2: TSRS 1 & 2 Compliance Disclosures- ----------------199 APPENDIX-3: GRI Content Index- ------------------------------ 204 APPENDIX-4: UNGC UNGC Progress Chart--------------------- 207 APPENDIX-5: Sustainability Principles Compliance------------- 208 Framework Table APPENDIX-6: Absolute Gross GHG Emissions--------------------- 212 of Turkcell subsidiaries Group Companies and Other- -------------------------------- 213 Information on Corporate Governance Our subsidiaries and affiliates--------------------------------- 213 Statement Of Compliance With Corporate-------------------- 217 Governance Principles Corporate Governance Information Form--------------------- 222 Roles of Turkcell Board Members at Other Companies--------- 228 Conclusion of the Subsidiary Report--------------------------- 228 Turkcell Group: 2024 Financial & Operational Review---------- 229 Operational Review of Turkcell Türkiye- ----------------------- 233 Forward Looking Statements---------------------------------- 234 Sectoral and Financial Information---------------------------- 235 Significant Developments After the Activity Period------------- 238 Consolidated Financial Statements- -------------------------- 239 Our Offices- -------------------------------------------------- 349 Glossary- ----------------------------------------------------- 350 TURKCELL 2024 INTEGRATED ANNUAL REPORT | 3 2 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES Dear Stakeholders As Turkcell, we now have a 30-year his- tory behind us on our journey from voice and data operator to end-to-end tech- nology provider. I believe that being a part of a brand that brings our country together with global standards in com- munication while breaking new ground in technology fills me with as much pride as it does you. As ‘Türkiye's Turkcell’, I am pleased that we celebrate this import- ant milestone with you once again as we create value for our country in every field touched by technology. Since 2000, we have built a strong pres- ence in global markets as the first and only Turkish company to be listed on Borsa Is- tanbul and the New York Stock Exchange at the same time. Last July, on the occa- sion of our anniversary, we rang the clos- ing bell of the New York Stock Exchange, where we have been listed for almost a quarter of a century. We proudly waved our glorious flag at the heart of the global financial world, reiterating our commit- ment to continue our country's leadership on its technology journey with our strong financial structure and human resources. We further solidified the importance we attach to our shareholders, who have played an important role in making Turk- cell what it is today with our dividend policy. We always prioritize the principle of delivering greater shareholder value. Accordingly, last December, we shared TRY 6.3 billion, equivalent to 50% of our distributable net income for 2023, with our shareholders. Our Company effectively implements in- ternal control and internal audit systems and takes steps to continuously improve its corporate governance processes. By adopting the best corporate gover- nance practices, we follow the principles of transparency, accountability and fair management. In line with this approach, we not only aim to enhance market con- fidence and investor interest, but also strengthen our goals of sustainable growth and long-term value creation. Our Company is determined to further con- solidate its position in international capi- tal markets and maintain its leadership in corporate governance. Message from the Chairman of the Board 2024 was a year marked by elections and unfortunately wars across the world. We witnessed the significant impact of these developments on the normal flow of na- tional economies. With the determined implementation of rational economic pol- icies in 2024, our country entered a period of remarkable recovery. Despite highly vol- atile global conditions, the Turkish econo- my maintained its annual growth trend for 18 consecutive quarters during this chal- lenging period. Annual inflation has been on a downtrend since its peak in May 2024, while the country's risk premium and the current account deficit have improved. Central Bank reserves rose to an all-time high. All these achievements were promis- ing developments for our country for 2025. As Turkcell, we continued to work with great responsibility and diligence in 2024, as always, with an awareness of the eco- nomic and strategic importance of our sector. In addition to our mobile and fixed broad- band services, we offer innovative solu- tions to individuals and industries with our techfin solutions, which we serve under the Paycell and Financell brands, our high quality data center services, and many other group companies. In total, over 45 million customers and over 600 thousand companies work with Turkcell's strong in- frastructure and technology. With the fi- nancial performance generated by these activities, we are positioned on Borsa Is- tanbul with a market value of USD 5.8 bil- lion as of December 31, 2024. In the first month of 2025, we successfully completed the bond issuance process, the preliminary preparations of which began in 2024. By raising USD 1 billion in funding in a double tranche Eurobond issuance, which attracted great investor interest from America, Europe, the Middle East, and Asia, we once again confirmed our financial strength and global reliability. This issuance marks the largest bond issuance in Turk- cell's history and is an important indicator of trust not only in our company but also in our country. With this successful issuance, we also demonstrated our commitment to sus- tainability. We supported our projects and investments in energy efficiency, renewable energy and social responsibility with long- term international sustainable financing. Another important item on our agenda was data center management. We will acceler- ate our investments to further expand our installed capacity in this field, where we have swiftly become Türkiye's largest data center operator with a total active IT ca- pacity of 41.4 MW as of year-end. We view every Turkcell investment as an investment in Türkiye's digital future, and we recognize. We are determined to fulfill our responsibil- ity to keep Türkiye's data in Türkiye and to make our country one of the leading coun- tries in this field. In 2024, we solidified our commitment to environmental sustainability with new steps. In line with the energy needs of in- novative technologies, especially artificial intelligence, our solar power plants (SPPs), two in Uşak and one in Van, started gen- erating electricity in addition to our wind power plant currently in operation. Our SPP investments will be an important mile- stone in achieving our net zero carbon tar- get by 2050. In 2024, we continued to strengthen the social dimension of our sustainability ap- proach with projects that create social impact and reduce inequalities. We car- ried out the fourth edition of the ‘Investing in Youth, Software for the Future’ program, which we run to build. Türkiye's future in the field of technology while supporting young software developers. With our activities worthy of the Turkish Century vision, we guide young people through this journey for Türkiye's future and of- fer career opportunities to thousands of them. In addition, our efforts to empower women in the technology sector contin- ue uninterruptedly. As Turkcell, we have touched more than 10 million people with the ‘’Writers of the Future‘’ program, which we have been running for 11 years. In 2024, we launched the new section of the ‘’Women Writing the Future‘’ project within the scope of the ‘’Writers of the Fu- ture‘’ program and launched the ‘’Women Writing the Future Artificial Intelligence‘’ program. At the same time, we attach great impor- tance to the social responsibility projects we carry out to promote digital literacy and technology awareness in all seg- ments of society. In this context, under the auspices of the Ministry of Family and So- cial Services, we have been successfully carrying out the ‘Digital Spring’ project since 2021, wherein we have created rest and experience areas with technological equipment that connect our elders to daily life in nursing homes across Türkiye. We will continue to use the power of technology for everyone's equal participation in life. In the ‘Whiz Kids’ project, which we car- ry out in cooperation with the Ministry of National Education, our goal is to discover students' talents at an early age and sup- port them to enter education in areas such as artificial intelligence, coding, space sciences, robotics, smart home, and cloud technologies that shape the era, while developing related projects. Since 2016, we have been reaching over 66 thousand students each year with a total of 87 ‘Whiz Kids Technology Classes’ in 55 provinc- es, 13 of which are in earthquake zones, within the scope of Whiz Kids, which was recognized as the best exemplary project in the field of social impact analysis in the ‘SDG (Sustainable Development Goals) Impact Assessment’ report presented by the World GSM Association (GSMA) at the United Nations. In addition, I emphasize that we implement our activities with a sense of national re- sponsibility in support of the localization process within the scope of our country's National Technology Move, ensuring the continuity of world-class service quali- ty. We cooperate with many institutions and companies in Türkiye's technology ecosystem in the fields of R&D, software, technological support, and product sup- ply; we therefore contribute to the devel- opment of the technology sector in our country, increasing localization rates and contributing to the national economy. On the one hand, we continue to provide superior communication services to our customers by increasing network efficien- cy and security through our investments in communication infrastructure; on the other, we work to ensure uninterrupted communication with innovative, domestic, and national infrastructure products. This proactive approach has been recognized with awards on international platforms, and we proudly represent our country in the global technology arena. Our company is an organization of stra- tegic importance not only for the national economy but also for national interests and social services. Since our funding, we have supported millions of citizens from all age groups and all segments of society in many areas, such as education, sports, culture, and the arts. The financial value of social benefit activities implemented over the past ten years alone has exceeded USD 300 mil- lion. Alongside our technology-based ac- tivities for children and adults, we aim to contribute our social development in the first place and to the establishment of a more livable world in the long term with our projects focused on women, people with disabilities, culture, the arts, and sports. As Turkcell, we have now celebrated our 30th anniversary, and the pride felt in cre- ating a lasting impact on our country with our performance in telecommunications and digitalization as well as our sustain- ability and social impact activities, is price- less. We share this pride with our more than 45 million customers, with whom we have established a bond of the heart, with our employees who spare no effort to achieve superior performance with sheer dedi- cation, and with our business partners, with whom we act as one, and with you, our esteemed shareholders and investors, whose trust we always value. I express my gratitude to all our stake- holders who have helped us become the locomotive and transformative power of Türkiye's digital transformation over the past 30 years. Now, our primary goal is to create at least one more Turkcell as we advance into Türkiye's Digital Century. We hope to achieve this goal together with all our stakeholders. Best regards. Şenol Kazancı Chairman of the Board As Turkcell, we have left behind 30 years in our journey from voice and data operator to end-to- end technology provider. We shared TRY 6.3 billion, equivalent to 50% of our distributable net income for 2023, with our shareholders. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 5 4 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Board of Directors Şenol Kazancı was born in 1975, in İstanbul. He graduated from the Is- tanbul University, Faculty of Law. He worked as TVNET General Man- ager between 2007 and 2011, as the Advisor of the Prime Minister be- tween 2011 and 2014, and as Chief Advisor to the President in 2014. He lastly served as the Chairman and General Manager of the Anadolu Agency between 2014 and 2021. At the Ordinary General Assembly Meeting held on April 15, 2021, Şenol Kazancı was elected as a Mem- ber of the Turkcell Board of Directors and he has been Chairman of the Board of Directors since September 14, 2023. Şenol Kazancı Chairman of the Board Ayşe Nur Bahçekapılı was born in Istanbul in 1954 and is from Trabzon originally. Ms. Bahçekapılı completed high school education in Istan- bul Kız Lisesi and later graduated from Istanbul University Faculty of Law. Starting her career as a private attorney, Ms. Bahçekapılı served as a member of the Istanbul Bar Association Board of Directors and General Secretary from 1988 to 1992. She was also a member of the Board of Directors of the Union of Turkish Bar Associations from 1997 to 2005. In 2007, she was elected as a member of parliament from the second district of Istanbul. From 2007 to 2009, Ms. Bahçekapılı served as the Spokesperson of the Constitutional Committee of the Turkish Grand National Assembly, and chaired the Türkiye-Cuba Inter-par- liamentary Friendship Group. Ms. Bahçekapılı served as the Deputy Group Chairman of the Justice and Development Party from 2009 to 2013. Between 2013 and 2015, she held the position of Deputy Speaker of the Turkish Grand National Assembly, and resumed the role be- tween 2015 and 2018. From 2020 to 2023, Ms. Bahçekapılı served as the Chief Advisor to the President and continues to hold the position of a member of the Legal Policies Council of the Presidency. On Sep- tember 14, 2023, she was elected as a member of the Turkcell Board of Directors. Ayşe Nur Bahçekapılı Board Member TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 7 6 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Serdar Çetin graduated from Middle East Technical University, Civil Engi- neering department and holds an MSc in Management (Grande Ecole) from HEC School of Management in Paris with a major in strategic management. Serdar Çetin has served at the board of Play (P4 Sp.zo.o.) from July 2007 until November 2020. He was a management board member of Play from its in- ception (July 2005) until October 2006 and was a supervisory board mem- ber between July 2007 and June 2017. Following the IPO of Play Group, he was appointed as a member of the Audit Committee, Remuneration and Nomination Committee, and Operational and Investment Committee of Play Communications S.A. until its sale to Iliad in November 2020. Serdar Çetin was a board member of Turknet İletişim Hizmetleri A.S. and its then parent company NetOne Holdings S.a.r.l., between 2007 - 2013. He served as a board member or board observer in several telco and technology companies in- cluding Machinezone, which is acquired by Applovin (USA), Netia (Poland), Forthnet (Greece) and Be* Unlimited (UK). In addition, he served as a board member of AASA Polska from August 2015 to December 2019. Serdar Çetin was a board member of WOM S.A. Chile from July 2015 until December 2023. Additionally, he was a partner of Novator Partners LLP, a London based in- vestment advisory firm until April 2023 and is currently a Partner of PurpleC- rest Investments Llp. Prior to joining Novator, Mr. Çetin worked at Merrill Lynch investment banking and BNP Paribas Asset Management in London. At the Ordinary General Assembly Meeting for 2021, held on June 16, 2022, Serdar Çetin was elected as an Independent Member of the Turkcell Board of Di- rectors. He is fluent in English and French. Serdar Çetin Independent Board Member Arda Ermut was born in Karaman in 1980. He graduated from Boğaziçi Univer- sity's Department of Political Science and International Relations in 2004. In 2005, he began working as a Press and Public Relations Advisor to the Prime Minister's Office. He then took up the position of specialist at the Turkish Invest- ment Support and Promotion Agency, where he held a number of managerial positions. In 2015, Ermut was appointed as the President of the Investment Support and Promotion Agency of Türkiye, a position he held until 2020. Ermut played a piv- otal role in attracting numerous international direct investments to Türkiye. He also served as a member of the Board of Directors of the Vienna Economic Forum and SunExpress between 2015 and 2019, as Vice President of the Turkish Basketball Federation between 2019 and 2021, and as Chairman of the Board of Directors of the World Association of Investment Agencies (WAIPA) for a four-year term. Between 2019 and 2021, he served as a member of the Board of Directors of Turkish Airlines and as one of the three members of the Turkish Airlines Execu- tive Board. Arda Ermut, who previously served as a member of the Board of Di- rectors of Türk Telekom between 2022 and 2024 and the Türkiye Wealth Fund between 2018 and 2020, was appointed as the General Manager and Board Member of the Türkiye Wealth Fund as of March 2021. He is also a member of the Board of Directors of Türkiye Participation Insur- ance, established by the Türkiye Wealth Fund, and Chairman of the Board of Directors of Istanbul Finance Center Management Company. At the Ordinary General Assembly Meeting for the year 2023 held on May 2, 2024, Ermut was elected as a Member of the Turkcell Board of Directors. Salim Arda Ermut Board Member Professor M. Naci Inci was born in Malatya, Türkiye, in 1965. He received his BSc in physics from Marmara University in 1987. Then, he received his PhD in fiber optic sensors from Heriot-Watt University (Edinburgh, UK) in 1993. Be- tween 1993 and 1994, he pursued postdoctoral studies at Stanford Univer- sity's Department of Electrical Engineering (USA), specializing in fiber op- tic communications. In 1994, he assumed the role of Assistant Professor at Boğaziçi University, Department of Physics. In 1996, he was promoted to the position of Associate Professor at the same institution. In 1998-1999, he was invited to Gunma University (Japan) as a visiting research professor to work on industrial applications of fiber optic sensors. Between 1999 and 2005, he was a faculty member at Sabancı University, Faculty of Engineering and Natural Sciences, where he played a pivotal role in establishing the universi- ty's fundamental and research laboratories, as well as undergraduate and graduate programs. In 2005, he assumed the role of Professor in the Depart- ment of Physics at Boğaziçi University. He served as Head of the Department of Physics for five years between 2013 and 2020. Since July 15, 2021, he has been the Rector of Boğaziçi University. Professor İnci has been invited as a guest scientist by a number of universities abroad. These include The Univer- sity of Stuttgart (Germany), Gunma University (Japan), the Technical Univer- sity of Norway, and Heriot-Watt University (UK). His research interests include applied optics for industry, quantum optics, nonlinear optics, quantum infor- matics, optoelectronics, fiber optic sensors, fiber optic telecommunications, solid state physics, optical profilometry, photonic crystals, and the photonics of nanostructures. At the 2023 Ordinary General Assembly Meeting he was elected as an Independent Board Member of Turkcell. Mehmet Naci İnci Independent Board Member Figen Kılıç, born in 1970 in Gaziantep, graduated from Selçuk University, Electrical Electronics Engineering Department and received her Mas- ter’s Degree from Gebze High Technology Institute, Electrical Engineer- ing Department. Trained in project management, process management, and test engineering, Kılıç also graduated from the Anadolu University Faculty of Open Education, Department of Law, and is studying in the Department of Business Administration of the same university. Figen Kılıç, started her career as a technical translator in İhlas Group. In 1995, she joined İstanbul Municipality BELBİM A.Ş., where she worked for an extended period on payment projects as an R&D engineer, Project Co- ordinator, and R&D Manager. In 2010, she transferred to E-Kent Ödeme Sistemleri A.Ş. where she served as IT and Operational team manager for electronic ticket and payment systems integration and management projects in various cities of Türkiye. In 2014, Figen Kılıç worked in Mobile Payment and M2M & IoT teams at Turkcell İletişim Hizmetleri A.Ş. and in 2015 was appointed to the Information and Communication Technolo- gies Authority (ICTA) of Türkiye as its first women board member. Kılıç be- came the vice president of ICTA in 2018. After her term in office ended in 2019, she served as Service Delivery General Manager of the Republic of Türkiye Ministry of Family and Social Services. As of January 29, 2021, she was appointed to the Turkcell Board of Directors. At the Ordinary Gen- eral Assembly Meeting held on May 2, 2024 Figen Kılıç was re-elected as the Member of a Turkcell Board of Directors. Figen Kılıç Board Member TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 9 8 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Melikşah Yasin, born in Istanbul in 1975, graduated from Istanbul Universi- ty Faculty of Law in 1996. In the same year, he began his master's degree at Istanbul University's Institute of Social Sciences and completed it in 1998 with his thesis titled “Control of the Administration by the Parliament.” In 1997, he started working as a research assistant in the Department of Administrative Law at the Marmara University Faculty of Law. He initiated his doctoral studies at Marmara University's Institute of Social Sciences in 1998 and completed them in 2002 with his doctoral thesis titled “The Cap- ital Markets Board and Its Transactions.” Mr. Yasin conducted academic research at King's College in 2007 and 2008. In 2010, he was appointed as an associate professor at the Istanbul University Faculty of Law. Since 2016, he has served as a professor of Administrative Law at Istanbul Uni- versity. He has also held various administrative positions at the university. Mr. Yasin, who has authored books and numerous articles in the field of administrative law, is currently a visiting academic at Oxford University Faculty of Law. Mr. Yasin is married and a father of one child. On Sep- tember 14, 2023, he was elected as a member of the Turkcell Board of Directors. Melikşah Yasin Board Member Nail Olpak, was born in 1961 in İbecik, Burdur. He graduated from Aydın High School. Having graduated from Istanbul Technical University Facul- ty of Mechanical Engineering, Mr. Olpak completed his master's degree in the field of energy. Mr. Olpak serves as the Chairman of the Board of PAK Yatırım A.Ş. and NORA Elektrik A.Ş. and as the board member of companies in which these companies have shareholdings. As part of his activities in NGOs and for public welfare; Mr. Olpak serves as the Chairman of the Board of Directors of DEİK, Board Member of Export Credit Bank of Türkiye (TURK EXIMBANK), Board Member of Turkcell, Board Member of İstanbul Development Agency (İSTKA), Member of Coordination Council for the Improvement of Investment Environment (YOİKK), Member of High Advisory Board of MÜSİAD, Chairman of the Board of Trustees of OLPAK FOUNDATION, Member of the Founding Committee of International Technological, Economic and Social Research Foundation (UTESAV), Mem- ber of the Board of Trustees of Tourism Development and Education Foun- dation of İstanbul Chamber of Commerce (TUGEV), Member of Founders Board of İlim Yayma Foundation, Member of the Board of Trustees of Huzur Hospital Foundation, Member of the Board of Trustees of Human Develop- ment and Societal Education Foundation (İGETEV), Member of the Board of Trustees of the Foundation for the Support of İstanbul Medeniyet University. Nail Olpak also served as the 5th Period Chairman of MÜSİAD (Independent Industrialists and Businessmen’s Association) and the Chairman of MÜSİAD High Advisory Board, Council Member of B20 Steering Committee of Türkiye, Council Member of İTO (Istanbul Chamber of Commerce), Board Member of İDTM (Istanbul World Trade Center), Board Member of the Huzur Hospital Foundation, Board Member of ENVERDER (Energy Efficiency Association), Member of High Advisory Board and Board Member of MMG (Architects and Engineers Group), Founding Committee Member of Turkish-Japanese University, Member of the Board of Trustees of Commercialize Center Istan- bul (CCI), Board Member of Türkiye Silicon Valley. Mr. Olpak was appointed as a member to the Turkcell Board of Directors, effective as of March 6, 2020. At the Ordinary General Assembly Meeting for 2021, held on June 16, 2022, Nail Olpak was re-elected as a member of the Turkcell Board of Directors. Nail Olpak was granted the title of honorary PhD by Istanbul Technical University, Ahi Evran University and Mehmet Akif Ersoy University. Olpak is married and is the father of two children. He has a strong command of the English language. Nail Olpak Board Member İdris Sarısoy, born in 1974 in Bafra, graduated from Erciyes University, Faculty of Economics and Administrative Sciences, Department of Finance in 1998. In the same year, he commenced his master's at Istanbul University Institute of Social Sciences, Department of Finance, Department of Fiscal Theory, which he completed in 2000 with his thesis titled 'Public Sector Deficits and Financ- ing Policies in Türkiye'. In 2001, he began his doctoral studies at Marmara Uni- versity Institute of Social Sciences, Department of Finance, Department of Fi- nance Theory, completing his doctoral thesis, titled 'Tax Incentives Provided to Small and Medium Scale Enterprises and Turkish Practice', in 2006. In 2002, he began his academic career at Zonguldak Bülent Ecevit University, Facul- ty of Economics and Administrative Sciences, Department of Finance, and in 2003 he assumed the same position at Marmara University, Faculty of Eco- nomics and Administrative Sciences, Department of Finance. Between 2007 and 2014, he was a Lecturer at Zonguldak Bülent Ecevit University, Faculty of Economics and Administrative Sciences, Department of Finance. Since 2014, he has been an Associate Professor in the Department of Political Science and Public Administration at Marmara University Faculty of Political Scienc- es, and in 2020 he became a Professor in the same department. Sarısoy; who is also a Member of the Tax Council of the Ministry of Treasury and Fi- nance, conducts academic research on poverty, foreign capital investments, election declarations and health economics, mainly on tax issues. On May 2, 2024, he was elected as an Independent Member of Turkcell's Board of Directors at the Ordinary General Assembly Meeting for the year 2023. He is married and has three children. İdris Sarısoy Independent Board Member TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 11 10 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Message from the CEO Ali Taha Koç, PhD CEO Dear Turkcell Family and Distinguished Stakeholders, We have left behind a special year in which we realized valuable projects that serve our country's goal of tech- nological independence. In 2024, as we celebrated Turkcell's 30th anniversary, we took measurable and sustainable steps in the field of communication technologies with high added value. In addition to valuable moves that will enable us to secure the future of uninterrupted communication, we launched important applications in strategic areas such as data cen- ter management, sustainable energy management, and innovative tech- nologies. With these applications, we have made significant contributions to Türkiye's digital transformation jour- ney. With R&D activities, collaborations, and support in line with the National Technology Move vision, we have im- plemented practices that grow and strengthen the domestic technology ecosystem. In this period, when we are witness- ing a paradigm shift in every field, we note that the global leadership race takes place on the axis of innovative technologies. New generation tech- nologies, which offer great opportuni- ties as well as significant risks for both countries and companies, stand out as a strategic factor in economic compe- tition between countries. In this respect, as Türkiye's Turkcell, we see preparing our country for tomorrow's world as a national responsibility, taking our stra- tegic decisions accordingly. Our company, which over the past 30 years has shaped the history of tech- nology in Türkiye with its actions, has reached new milestones in its corpo- rate history with its visionary work in 2024. While integrating transformative technologies, especially artificial intel- ligence, into our business, we have as- sumed critical responsibilities and du- ties in the leading organizations of the global telecommunications industry, having established our name among those who shape this development. While our strategic investments to- wards our long-term goals progressed rapidly, we achieved strong operation- al and financial performances thanks to our innovative practices. In 2024, our revenues and operational profit- ability continued to increase thanks to our expanding subscriber base led by postpaid subscribers and to our sta- ble price increases. By the end of 2024, consolidated revenues increased by 7.8% on a yearly basis to TRY 166.7 bil- lion, consolidated EBITDA rose by 10.2% to TRY 69.8 billion, and net income rose to TRY 23.5 billion. In addition, in line with our approach to creating value from our assets, in September, we com- pleted the share transfer process for the sale of our assets in Ukraine. The increasing activity in the mobile number portability market since May peaked in December. While the far from rational pricing offers among the competition continued to affect the market's healthy development, the MNT market volume reached histor- ic levels. At this point, we occasionally responded to these competitive cam- paigns in order to protect our customer base. Thanks to our subscriber reten- tion strategy supported by analytical models as well as our innovative ser- vices, our mobile churn rate remained unchanged compared to last year at 2%. As the leader of the mobile segment, we prioritize long-term and sustain- able growth. While we also place much emphasis on preserving a bal- anced market structure, we aim to create lasting value over temporary gains achieved through short-term strategies. With this strategy, we have healthily managed the balance be- tween ARPU growth and subscriber base growth. As a result, our mobile postpaid subscriber base grew by 1.9 million to over 29.1 million, a record an- nual increase over the past 15 years. Meanwhile, the postpaid subscriber ratio, increased by 5 points year-on- year to 76%. Our prepaid subscrib- er base declined to 9.2 million due to alternative data solutions as well as mass closures in the last quarter of each year. Mobile ARPU (excluding M2M) increased by 10.4%, driven by our price adjustments, our ability to suc- cessfully migrate customers to higher packages, and the expansion of the postpaid subscriber base, which gen- erates greater value. In the fixed broadband segment, we remained committed to our goal of ex- tending our end-to-end fiber service to more subscribers. In this context, our Turkcell fiber subscriber base in- creased by 168 thousand to 2.5 million in 2024. Thanks to the increased share of 12-month committed subscribers of 85%, the share of our fiber subscrib- ers with speeds of 100 megabits and above in total fiber exceeding 41%, and our price adjustments, our retail fiber ARPU grew by 13.6% year-on- year in 2024. We observe that TV+, our IPTV product, also made a signif- icant contribution to this increase. We had a very successful year in terms of converting our fiber investments into subscribers. The subscriber take-up rate in the fiber segment increased by 1.7 points YoY to 42.7%. Our Resell (buy-sell) segment, where we provide services in regions where Turkcell fiber service is not available, completed the year at 779 thousand. With the proj- ect, which we piloted in the last quar- ter of 2024 and fully commissioned in January 2025, we started to offer fiber services using the infrastructure of the incumbent operator. In Turkcell's 30th anniversary year, which we celebrated with our val- ued customers, who have always strengthened us with their trust in our brand, we furthered the commit- ment to our subscribers with innova- tive campaigns. While ensuring that our subscribers remain ‘connected’ with the ‘30th Anniversary GB Multi- plier Campaign’, we also launched many surprises such as the ‘1000 Mbps Speed Campaign’ for our fixed cus- tomers. We also renewed our mobile applica- tion by taking an important step in the field of digital experience. By offering all our applications, services and solu- tions from mobile communication to digital services on a single platform, we provide our customers with an easy, fast and solution-oriented digi- tal experience. In addition to our mobile and fixed broadband activities that set our country's communication standards, we are among the world's leading op- erators with the services we offer be- yond traditional telecom services. In 2024, we prioritized the efficiency and profitability of the digital services that we operate with our brands, such as TV+, BiP, fizy, lifebox and GAME+. We expanded our techfin operations with innovative initiatives through our Financell and Paycell brands, which we transformed into strong actors in our country's digital finance ecosys- tem. Financell began offering loans at varying rates according to customers' individual risk profiles; it continued to offer innovative solutions to individu- al and corporate customers, such as green loans for solar energy projects, vehicle loans, and shopping loans. Fi- nancell grew by 32.8% year-on-year to generate TRY 4.5 billion in revenues, while its portfolio size reached TRY 6.6 billion as of year-end. Paycell, which shapes consumer hab- its with its innovative payment ser- vices, displayed growth in all verticals it serves and increased its revenues to TRY 3.9 billion on 25% year-on-year growth. In the Pay Later service, which accounts for over half of Paycell reve- nues, the volume realized beyond the group increased by 49% compared to last year. On the other hand, POS solutions, which has achieved strong growth momentum since its launch, has become the second largest product accounting for Paycell revenues in 2024 with its strong performance beyond the group. 57% of Paycell revenues were re- corded from non-group businesses. In addition to our telecommunica- tions and digital services, we also strengthened our role as Türkiye's leading technology integrator with our efforts in strategic areas, espe- cially in data center operations. In the Data Center & Cloud area, which we entered to transform our country into a global data center hub and ensure that our national data remains within the country's borders, we consolidat- ed our market leadership and gave an outstanding performance in 2024, recording 46.2% growth. We have es- tablished an infrastructure and super- structure that can serve data traffic on a national and international scale, with an investment amount reaching 467 million Euros to date. We have reached the point where we alone meet more than one-third of the sec- tor's needs with twice the capacity of our closest competitor. This success clearly demonstrates our determina- tion to contribute to Türkiye's digital transformation and provide the best customer service. By the end of 2024, we aim to have added 8.4 MW of additional capacity to our four new generation data centers, which have a total IT capacity of 54 MW, 41.4 MW of which is active, with new modules to be added during the year. In 2024, when we celebrated Turkcell's 30th anniversary, we took measurable and sustainable steps in the field of communication technologies with high added value. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 13 12 | TURKCELL 2024 INTEGRATED ANNUAL REPORT As the first company in Türkiye to receive all three Tier III certificates awarded by the Uptime Institute for design, facility, and operation, we build our data centers to the highest standards to ensure redundancy, re- liability, and near-zero downtime. In the coming years, we will continue our investments in this area and reinforce our market leadership. As Turkcell, we value not only people but all living creatures and the environment we live in, and we act to leave a livable world for future generations. We meet 100 percent of the total electricity needs of Turkcell and our Group companies from renewable energy certified sourc- es. On top of this, we aim to become a net zero company by 2050. To this end, in addition to our existing wind power plant, we started our solar power plant (SPP) investments in 2024. In the first phase, we completed the installation of 54 MW SPP and put 8.2 MW into opera- tion. We aim to complete the installation of an SPP with a total capacity of 300 MW by the end of 2026. It is my firm hope that our SPP activities, which we carry out in 11 locations in seven provinces, will be beneficial for our company and our country. In addition, we have integrated solar panels into more than 2,400 base stations, a thousand of which will be installed in 2024. We will continue our green energy investments, which hold special importance among our strate- gies developed to meet the needs of to- day and the future, without losing pace. As a result of these valuable efforts, we became the first and only telecommu- nications company in Türkiye to receive approval from the Science Based Tar- gets Initiative (SBTi). Within the scope of this international initiative, which enables companies to base their car- bon footprint reduction targets on sci- entific data, the targets we set were approved accordingly. In addition, we are the only telecoms company from Türkiye participating in the GSMA's ‘ESG Metrics for Mobile’ initiative. To- day, we rank among the top 24 com- panies in the world. Meanwhile, the LSEG (London Stock Exchange Group) ESG Index, which Borsa Istanbul also uses for its Sustainability Index, ranked us as the second-best company by En- vironmental, Social, and Governance (ESG) performance among 278 telecom companies globally and the leader in Türkiye. We are proud to be a part of the global sustainability movement that shapes the future of the telecoms industry. In this context, as Turkcell, we will continue to increase our energy efficiency with the understanding of ‘more bits, less watts’, to offer our cus- tomers sustainable solutions as a glob- al role model. Within the scope of the double tranche Eurobond issuance that we finalized at the start of 2025, we offered investors a USD 500 million 5-year traditional bond as well as a USD 500 million 7-year sus- tainable bond. The bond issuance, in which we raised USD 1 billion in fund- ing, was completed with an investor demand of over USD 3 billion. This suc- cessful issuance demonstrated the strong confidence of international in- vestors in Turkcell and our country. We have once again concretized our com- mitment to environmental responsibility by presenting our ESG commitments to international investors. The funds raised from our bond issuance provide an important opportunity to continue strengthening our digital infrastructure and realizing our sustainable projects. Over the past year, we have experi- enced certain global developments that I consider crucial for our compa- ny. My election to the Board of Direc- tors of the World GSM Association (GSMA) representing our company and our assuming the chairmanship of the Embedded Artificial Intelligence Focus Group for Telecommunication Networks established within the In- ternational Telecommunication Union (ITU) will enable our country to play an active role in setting global telecom- munication standards. We are proud to showcase our innovative power in the global arena and to have our country's name among those who have a say in next generation communication tech- nologies. We continue this proud status by being the first and only Turkish com- pany to take part in the GSMA work- ing group in the field of post-quantum cryptography, which will be one of the cornerstones of cyber security in the future. As Turkcell, we will continue to offer our know-how to the mobile communications industry and the dig- ital world. As of November 27, 2024, I assumed the role of the Chairman of the Board of Directors of the Mobile Telecommuni- cations Operators Association m-TOD; the leading actors of the Turkish tele- communications industry take over the chairmanship of m-TOD annually on a rotating basis. During my term of office, we will work to extend cooper- ation in the technology ecosystem and advance the relationship between all components of our industry to a stron- ger position. Dear Stakeholders; Our 30th anniversary year was one in which we reaffirmed our hopes and commitments for the future and fur- ther advanced our strategic goals. We are proud to fulfill our commitment to create sustainable value for our cus- tomers, employees, and all our stake- holders. In 2025, we will continue to grow the value we create through technology and innovation with the determina- tion to carry Türkiye's Turkcell and our country to a much brighter future. This year, in which we will focus on mobile and fiber infrastructure investments, we eagerly await the 5G tender pro- cess to be launched by the Ministry of Transport and Infrastructure, and as Turkcell, we remain committed to offering the highest quality 5G experi- ence. We will continue our work in in- novative areas such as 5G, 6G, quan- tum and satellite technologies with the goal of ‘real’ and ‘value-driving’ digital transformation in every field, and we will continue to expand our existing global collaborations. I sincerely thank our colleagues who are committed to our mission of build- ing a better, more technological, and more sustainable future, our Board of Directors, and all Turkcell employees who together light the path towards our goal of becoming a technolo- gy-producing country. Happy 30 years! Best regards, Our mobile postpaid subscriber base grew by 1.9 million surpassing 29.1 million, a record annual increase in the last 15 years. We aim to become a net zero company by 2050. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 15 14 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Ali Taha Koç, PhD was born in Ankara in 1980. He graduated from Bilkent Uni- versity, Faculty of Engineering, Department of Electrical and Electronics Engi- neering in 2001 with a full scholarship. He completed his master's and doctor- al studies at the Department of Electrical Engineering, University of Texas at Dallas, USA with a full scholarship. Ali Taha Koç, PhD started his career in the USA in 2006 as a research and development (R&D) engineer at Intel, where he developed 61 patents and published 23 articles in scientific journals. He devel- oped and managed many international projects at Intel and was one of the 10 engineers who produced the most patents and received awards in 2013. In 2014, after his return to Türkiye, he started to work as the Chief Counsellor of the Prime Ministry and the same year he was appointed to the Presidency of Information Technologies. Simultaneously, he managed the establishment process of the Presidential State Information Coordination Center (DBKM), which provides information flow from all ministries and security units. On Sep- tember 12, 2018, he was appointed as the Presidential Digital Transformation Office. In addition to his duties at the Presidency, he served as a Board Mem- ber of TÜRKSAT Satellite Communication Cable TV and Operation Inc. Ali Taha Koç, who has served as Turkcell CEO since October 2023, is the Chairman of the Board of Directors of the Mobile Telecommunications Operators Associ- ation (m-TOD), as well as a Board Member of the International GSM Associa- tion (GSMA), Türkiye's Automobile Initiative Group (TOGG) and Silk Road Clean Energy Storage Technologies (Siro). A licensed pilot and fluent in English, Dr Ali Taha Koç is married with one child. Ali Taha Koç, PhD Chief Executive Officer Kamil Kalyon graduated from Marmara University, Department of Busi- ness Administration and started his professional career at Ernst Young Türkiye (EY) Tax Department in 1996. During his twelve-year EY career, he took part in many strategic projects and lastly worked as a Senior Manager. Between 2008 and 2012, he worked as Finance Director at Kont Bilişim Group of Companies operating in the information technol- ogies sector. In 2012, Mr Kalyon joined OMV Petrol Ofisi A.Ş., a subsidi- ary of Austria-based OMV Group, as Tax Director, a position he held for four years. He joined Turkcell Group in December 2016 as Tax and Group Reporting Director and has served as Financial Planning and Analysis Director since February 2021. In September 2023, he was appointed as Turkcell's Chief Financial Officer. Mr Kalyon is a Certified Public Accoun- tant and Independent Auditor, and is fluent in English. Kamil Kalyon Chief Financial Officer Management Team TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 17 16 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Kadri Özdal graduated from Dokuz Eylül University, Department of Public Administration. Kadri Özdal started his professional career at Vodafone in 1999 and worked in sales, marketing and commercial operations depart- ments. Afterwards, he worked in Türk Telekom in various roles such as sales development, channel optimisation and management. Kadri Özdal, who served as Sales Development Director and then CSO between 2011 and 2012, worked as CSO between 2012 and 2016, taking part in the establishment and management of n11. com, Türkiye's largest e-commerce platform. In February 2016, Kadri Özdal joined Turkcell as Alternative Sales Channels Director and managed non-exclusive channels and digital sales channels respectively. Most recently, he served as Retail Channels Sales Director and then Exec- utive Vice President of Retail Sales. Mr Özdal was appointed as Chief Sales Officer in November 2023. Kadri Özdal Chief Sales Officer Erkan Durdu received his bachelor's degree from Istanbul University, Depart- ment of Radio and Television and his master's degree from Marmara Uni- versity, Department of Communication Sciences. He started his career as a program producer at TRT Istanbul Radio and then worked as a reporter and editor at Kanal 7, Radikal and Akşam newspapers. Between 2003 and 2011, he worked as a Minister Counsellor at the Prime Ministry. He served as Deputy Director General of Press, Publications and Information of the Prime Ministry between 2011-2014, Deputy Chairman of the Board of Directors and Depu- ty General Manager of TRT between 2014-2021, and Secretary General of TÜBİTAK between the years 2022-2023. In addition to these duties, he served as a member of the Audit Board of the Development Bank, a member of the Board of Directors of Euronews, and a member of the Board of Directors of the Press Advertisement Agency. He has led areas such as Human Resources, Budget and Financial Operations, Publication Strategies, Change Manage- ment, Content Management, Digital Business Applications in the organiza- tions where he worked. As of November 2023, Durdu was appointed as Chief People and Business Support Officer. Erkan Durdu Chief People and Business Support Officer Mustafa Demirhan received his bachelor's degree in Electrical and Elec- tronics Engineering from Bilkent University with full scholarship in 2001 and his master's degree in Electrical and Electronics Engineering from Rutgers University in 2003. Mustafa Demirhan started his professional career as a research and development (R&D) engineer at Intel in 2003 and signed 14 patents until 2007. In 2007, he started working on smart- phone software at Microsoft. Later, he worked as a manager in Micro- soft 365 and Microsoft Azure projects, Microsoft's first successful cloud computing product. In 2018, he worked as a manager in open source cloud computing projects at Google, and in 2021, he returned to Micro- soft and managed critical projects in the field of cyber security. He re- turned to Microsoft in 2021 and managed critical projects in the field of cyber security. Mustafa Demirhan, who started his duty as Chief Infor- mation and Communication Technologies Officer as of December 2023, is married and has four children. Mustafa Demirhan Chief Information and Communication Technologies Officer Ali Uysal graduated from Istanbul University Faculty of Law and com- pleted his master's degree in European Union Law at Stockholm Univer- sity Faculty of Law. Ali Uysal started his professional career as a lawyer in 2003 and worked as a senior lawyer in the corporate consultancy department of law firms serving national and international clients un- til 2009. In 2009, he joined SunExpress Airlines, a joint venture between Turkish Airlines and Lufthansa, as Legal Counsel responsible for the es- tablishment of the internal legal department and continued his duty until 2014. Ali Uysal, who served as the Chief Legal Counsel of Turkish Airlines A.O. between 2014-2019, has been working as the Corporate Legal Af- fairs Director at Turkcell İletişim Hizmetleri A.Ş. under the Assistant Gen- eral Manager of Legal and Regulatory Affairs since 2020. Ali Uysal, who was appointed as Chief Legal and Regulation Officer as of November 2023, is married and has two children. Ali Uysal Chief Legal and Regulation Officer TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 19 18 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Murat Akgüç holds a bachelor's degree in Industrial Engineering from Boğaziçi University and an Executive MBA from Rotterdam School of Man- agement. He has more than 20 years of experience in business development, technology, telecommunications, strategy, digital innovation and venture capital. Mr Akgüç started his career at the Ottoman Bank and worked in treasury projects in the banking sector. In 2004, he assumed the position of Vice President of Business Development and Strategy at Credit Europe Bank in the Netherlands. In 2015, Akgüç returned to Türkiye and worked as a senior executive in the fields of technology, digital product development, strategy and marketing in the media and gaming industry on an international scale. In 2021, he joined Türkiye Wealth Fund as Assistant General Manager Responsi- ble for Venture Capital and Technology Investments. In 2022, he led Türkiye's largest acquisition of Türk Telekom, as well as the establishment of Türkiye Technology Fund - TTF (Fund of Funds), which invests in Turkish Venture Cap- ital funds, and other important projects. In addition to these duties, Mr Akgüç served as a member of the Board of Directors of Türkiye Sigorta and as a member of the Board of Directors of TWF Technologies Investments. Mr Ak- güç was appointed as Chief Marketing and Digital Services Officer in No- vember 2023. Murat Akgüç Chief Marketing and Digital Services Officer Prof. Dr. Vehbi Çağrı Güngör was born in Ankara in 1979. He received his BSc and MSc degrees from Middle East Technical University, Department of Electrical and Electronics Engineering in 2001 and 2003, respective- ly. He received his PhD degree from the Department of Electrical and Computer Engineering, Georgia Institute of Technology (Atlanta-USA) in 2007. In 2018, Prof. Güngör was promoted to Professor and his research interests are in the fields of next generation communication technolo- gies, 5G and 6G mobile communication, internet of things and artificial intelligence. Prof. Güngör, who has worked as a project manager at Ea- ton Corporation, researcher at Siemens Corporate Research, Executive Board Member at TÜBİTAK TEYDEB BILTEG, has received many nation- al and international scientific awards. Prof. Güngör's research projects have been supported by various institutions and organizations such as the European Union, Ministry of Industry and Technology, TÜBİTAK. Prof. Dr. Güngör has published more than 100 research articles in international refereed journals and conferences and has many patents. Prof. Güngör has been appointed as Chief Network Technologies Officer responsible for Network Technologies at Turkcell in November 2023. Prof. Dr. Vehbi Çağrı Güngör Chief Network Technologies Officer Top Management of Subsidiaries Erdal Yayla graduated from Marmara University, Department of Business Administration in 1999 and completed the Executive Development Pro- gram at Wharton School in 2016. He started his professional career as a Senior Auditor at PricewaterhouseCoopers and worked as Financial Controller at LafargeHolcim, where he joined in 2002. Mr Yayla joined Turkcell Group in 2003 as Financial Controller and Reporting Special- ist. He joined Turkcell Group in 2003 as a Financial Controller and Re- porting Specialist. In July 2004, he joined lifecell, Turkcell's subsidiary in Ukraine, as Accounting, Control and Reporting Department Manager, and served as Assistant General Manager in charge of Finance (2010- 2016) and General Manager (2014-2015) respectively. From March 2016, he served as the Assistant General Manager in charge of Finance at BeST life, Turkcell's subsidiary in Belarus, and as Acting General Manager from November 2018 to March 2020. He has been serving as the General Manager of BeST life since March 2020 and is a member of the Board of Directors of lifetech, Turkcell's subsidiary in Belarus. Erdal Yayla General Manager of BeST See page 17 for the resume. Ali Taha Koç, PhD Chief Executive Officer TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 21 20 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Metin Tuğtağ received his bachelor's degree in Political Science and International Relations from Boğaziçi University in 2003. Having started his professional career at Uzel Makina in 2004, Tuğtağ worked as Da- none Regional Sales Manager in 2006-2007, and as Türk Henkel A.Ş. Regional Sales Manager in 2007-2010. He worked as Danone Regional Sales Manager in 2006-2007, Türk Henkel A.Ş. Regional Sales Manager in 2007-2010, Gramar Stone Director in 2010-2015, Channel Coordination Operations Director at TRT World in 2015-2018, and Istanbul Region- al Manager at TRT in 2018-2023. Metin Tuğtağ has been serving as the General Manager of Turkcell Global Bilgi since February 1, 2024. Metin Tuğtağ General Manager of Turkcell Global Bilgi Murat Küçüközdemir graduated from Istanbul Technical University, De- partment of Electronics and Communication Engineering in 1992. After- wards, he completed Insead Business School Leadership Development and IMD Business School Global Leadership programs. He started his professional career in 1993 and worked as an engineer and manager at Telemesaj A.Ş., Intelnet A.Ş. and Elkotek A.Ş. respectively until 2005. He worked as General Manager at Gisad Telekom between 2005 and 2007, and as Assistant General Manager and General Manager at Global İletişim A.Ş. between 2007 and 2011. After Global İletişim was acquired by Turkcell Group, Murat Küçüközdemir joined the Turkcell family in 2011 and served as Data Center and Cloud Computing Technologies Consultant, Marketing Director responsible for Corporate Fixed Products and Pub- lic Sales Director within Turkcell. On April 1, 2019, Küçüközdemir was ap- pointed as the Sales and Marketing Director of Northern Cyprus Turkcell and has been serving as the General Manager of Kuzey Kıbrıs Turkcell since May 2021. Murat Küçüközdemir General Manager of Kuzey Kıbrıs Turkcell Korhan Bilek received his bachelor's degree in Electrical and Electronics Engineering from Boğaziçi University and his MBA from the University of Rochester. He started his professional career as a research analyst at the Federal Reserve Bank. He worked as an analyst at Akyatırım Menkul Değerler between 2002-2004 and as Finance Director at Sabancı Hold- ing between 2004-2013. He worked as CFO at Teknosa for 3 years and served as a Member of the Board of Directors at Carrefoursa between 2011-2016. Korhan Bilek joined Turkcell in November 2016 as Investor Re- lations and Mergers & Acquisitions Director. He took over the position of Treasury and Capital Markets Management Director in December 2018 and has been the General Manager and Board Member of Turkcell Fi- nansman A.Ş. since July 2020. During this period, he served as a Member of the Board of Directors of Turkcell Ödeme Hizmetleri A.Ş. and Paycell Europe GMBH and is currently a Member of the Board of Directors of Turkcell Sigorta Aracılık Hizmetleri A.Ş., Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. and Turkcell Foundation. Z. Korhan Bilek Turkcell Financial Services Coordinator and General Manager of Financell Gürkan Arpacı received his bachelor's degree in Electronics and Com- munication Engineering from Istanbul Technical University and complet- ed the Management Program at Cornell University. Mr Arpacı started his career at Schneider Electric in 1995, worked in the technology de- partment during the establishment phase of Turkcell, and then served as co-founder and manager of EreNet & EreSis companies between 1996-1998. After working as a Senior Consultant at Global One (Ex-Or- ange Business) and as Network and Service Providers Division Manager at HPEnterprise between 2000 and 2008, Arpacı joined Türk Telekom in 2008 as the director responsible for the structuring of corporate cus- tomer segments. Until the end of 2015, Arpacı managed all corporate segments of Türk Telekom, TTNet and Avea companies, including SME, Large Scale and Strategic, and joined Turkcell in 2016 as Corporate Stra- tegic Segment Customer Management Director. Since April 2022, he has been serving as the General Manager of Turkcell Dijital İş Servisleri A.Ş., where services that address the end-to-end technological needs of or- ganizations for digital transformation are developed and offered from a single source. Gürkan Arpacı General Manager of Turkcell Digital Business Services TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 23 22 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Atilla Yıldız graduated from Istanbul Technical University, Department of Electronics and Communication Engineering in 1999. In 2000, Atilla Yıldız joined Turkcell family and worked in Network Operations, Service Con- trol Center and Business Intelligence Systems teams, followed by Inte- gration Manager, Platforms and Services Manager and Value Added Services Manager. After working as Application Operations Director between 2014 and 2018 and Industrial and Financial Technology Solu- tions Director between 2018 and 2021, he was appointed General Man- ager of Atmosware Teknoloji A.Ş. as of September 2021. Atilla Yıldız General Manager of Atmosware Teknoloji A.Ş. Uğur Çağlar completed his undergraduate degree in Industrial Engi- neering at Middle East Technical University and his Executive MBA pro- gram at Koç University. He started his career as a management consul- tant at PricewaterhouseCoopers in 2002. Subsequently, he worked as a management consultant with Booz Allen Hamilton in different coun- tries in Türkiye and the Middle East. In 2007, he joined TEB/BNP Paribas and started his career in the finance sector. In 2011, he joined BNP Pari- bas Cardif and continued his career as Assistant General Manager in charge of Marketing. In 2015, he was appointed as the General Man- ager of Azərbaycan Sənaye Siğorta and subsequently served as the Chairman of the Board of Directors for more than 3 years in total. At the beginning of 2019, Uğur Çağlar became a Senior Executive Responsible for Business Development and Corporate Sales at MetLife and has been serving as General Manager and Board Member at Turkcell Dijital Sig- orta A.Ş. since August 2022. Uğur Çağlar General Manager of Turkcell Dijital Sigorta A.Ş. A graduate of Yıldız Technical University, Electronics and Communication Engineering, Dolaz completed his MBA program at Bahçeşehir Universi- ty. Having joined the Turkcell family in 2009, Serhat Dolaz held various technology management positions at Turkcell Teknoloji A.Ş. and Paycell, before serving as Technology Director and Deputy General Manager at Paycell. As of May 1, 2022, he has been the General Manager of Paycell, the next generation payment and financial services platform, while si- multaneously serving as a Board Member of Sofra Kurumsal ve Ödül- lendirme Hizmetleri A.Ş. and Vice Chairman of the Board of Directors of the Association of Payment and Electronic Money Institutions of Türkiye (TÖDEB). Serhat Dolaz Paycell General Manager TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 25 24 | TURKCELL 2024 INTEGRATED ANNUAL REPORT We are pleased to announce the pub- lication of the fifth edition of the Turk- cell Integrated Annual Report, in which we present our activities, performance and future goals in the areas of social, economic, environmental and corpo- rate governance, as well as our finan- cial achievements, to our stakeholders. This Report has been prepared by Turkcell İletişim Hizmetleri A.Ş. in ac- cordance with the GRI Standards for the period between January 1, 2024 and December 31, 2024. The Report has been prepared in accordance with the Turkish Commercial Code (TCC) and the Capital Markets Board's (CMB) Se- rial II.14.1 'Communiqué on Principles Re- garding Financial Reporting in Capital Markets', the Board Decisions issued by the Public Oversight, Accounting and Auditing Standards Authority in line with 'Determination of Turkish Sus- tainability Reporting Standards' and 'Determination of the Scope of Imple- mentation of Turkish Sustainability Re- porting Standards' and 'Principles of Integrated Report (IR) Framework' pub- lished by the International Integrated Reporting Council (IIRC). In addition to the financial and ope- rational data included in the report as required by legal compliance, the report's main content consists of risks and opportunities, performance data and future targets for the main perfor- mance areas of the integrated value model created in line with Turkcell sus- tainability priorities. The report also responds to the United Nations Global Compact Communi- cation on Progress, of which Turkcell became a signatory in 2007, the CMB Sustainability Principles Compliance Framework, the requirements of TSRS 1 and TSRS 2 Standards1 The scope of the content is designed to meet the infor- mation needs of Turkcell's long-term investors (shareholders, bondholders and potential investors) as well as a broad portfolio of corporate stake- holders. These stakeholders include Turkcell employees, customers, pub- lic institutions and organizations, and non-governmental organizations. Turkcell 2024 Integrated Annual Report has been prepared for the period Jan- uary 1, 2024 - December 31, 2024 in full compliance with TSRS 1 General Pro- visions on Disclosure of Sustainabili- ty-Related Financial Information and TSRS 2 Climate-related Disclosures. This report has been prepared for the same period and scope as the year- end consolidated financial report for Turkcell İletişim Hizmetleri A.Ş. and its subsidiaries as of December 31, 2024. Please note that the terms 'Turkcell', 'Company' and 'Organization' in this report refer to Turkcell İletişim Services A.Ş. in the consolidated financial state- ments. The financial data presented in this report have been consolidated in accordance with legal regulations and international standards and in- clude Turkcell's entire organizational structure. Unless stated otherwise, so- cial and environmental performance data covers the Turkish operations, which constitute the most significant part of the Comp-any's operations. Should you have any questions, com- ments or suggestions regarding the Turkcell Integrated Va-lue Creation Model, our activities within this scope, our financial performance or our fu- ture targets, please direct them to dahaiyibirdunya@turkcell.com.tr. We are pleased to announce the publication of the fifth edition of the Turkcell Integrated Annual Report, in which we present our activities, performance and future goals in the areas of social, economic, environmental and corporate governance, as well as our financial achievements, to our stakeholders. About the Report 1 Taking advantage of the exemptions from the TSRS 1 transition provision, comparative in- formation and disclosure of Scope 3 emissions of subsidiaries, only assessments of financial impact analysis of climate-related risks and opportunities are disclosed. Turkcell at a Glance Starting its operations in 1994, Turkcell, the pioneer of the telecommunications sector in Turkiye, celebrated its 30th anniversary in 2024. Turkcell continues to realize its vision of 'Superior Digital Services For A Better Future' by con- stantly renewing its competencies and strengthening its ecosystem. As Türki- ye's leading service provider, Turkcell plays a key role in the sector through its leadership in the field of communica- tion and technology. Turkcell began its operations in 1994 as a traditional mobile communications company. With the experience it has gained, it has successfully evolved into an integrated communications oper- ator and then into a digital operator. Today, Turkcell creates added value by offering superior voice, messaging, data and IPTV services over its mobile and fixed networks, as well as digital services for individual and corporate customers, technology and finance solutions (techfin) and digital mobility solutions through Togg, in which Turk- cell is a shareholder. Turkcell offers a robust ecosystem, with its Group com- panies operating in diverse service ar- eas. In addition to Türkiye, Turkcell also operates in Belarus and the Turkish Re- public of Northern Cyprus. Since the launch of LTE mobile com- munication services on April 1, 2016, Turkcell continues to make a significant impact through technological inno- vations. Turkcell now offers LTE-Ad- vanced and 5-carrier aggregation technologies, reaching speeds of 1.6 Gbps and providing superior services in 81 provinces across Türkiye. Turkcell's spectrum bandwidth of 234.4 MHz represents 43% of the total spectrum of mobile operators in Türkiye, further consolidating its market-leading posi- tion. Turkcell continues to lead the way in the development of 5G technology in Türkiye, thanks to its testing activities in pilot networks and leading roles in na- tional and international consortia. The company is providing fiber data ac- cess at speeds of up to 10 Gbps in fixed technology. In addition, Turkcell, which began offering 5G technology at Istan- bul Airport on July 29, 2022 with the ap- proval of the Ministry of Transport and Infrastructure, continued to prepare for the future of 5G with pilot applications during the reporting period. Turkcell shares have been traded si- multaneously on the New York Stock Exchange (NYSE) and Borsa Istanbul (BIST) since July 2000. With this unique position, Turkcell is the only Turkish company whose shares are traded on two different stock exchanges at the same time. Turkcell, whose debt instru- ments are also traded on the Irish Stock Exchange, is also included in the MSCI ESG Index and BIST Sustainability Index with its sustainability-focused business model. As of December 31, 2024, Turk- cell's consolidated revenues and assets reached TRY 166.7 billion and TRY 344.3 billion, respectively. Shareholders Nominal (Thousand TRY) Share Ratio (%) TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. 576,400 26.2 IMTIS Holdings S.A.R.L. 435,600 19.8 Publicly Traded Shares* 1,188,000 54.0 Total 2,200,000 100.0 *Publicly traded shares also include ADSs traded on NYSE. Turkcell Shareholder Structure Starting its operations in 1994, Turkcell, the pioneer of the telecommunications sector in Türkiye, proudly celebrated its 30th anniversary in 2024. For more information about Turk- cell, please visit www.turkcell.com.tr. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 27 26 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Kıbrıs Mobile Telekomünikasyon Limited 100% Artel Bilişim Servisleri A.Ş. 100% Turkcell Satış A.Ş. 100% TDC Veri Hizmetleri A.Ş. 100% Turkcell Teknoloji Araştırma ve Geliştirme A.Ş. 100% Paycell LLC 100% Global Bilgi Pazarlama Danışmanlık ve Çağrı Servisi Hizmetleri A.Ş. 100% Eastasian Consortium B.V. 100% Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. 9% Yaani Digital B.V. 100% Lifecell Dijital Servisler ve Çözümler A.Ş. 100% Lifecell Bulut Çözümleri A.Ş. 100% Lifetech LLC 100% Rehberlik Hizmetleri Servisi A.Ş. 100% Turkcell Sigorta Aracılık Hizmetleri A.Ş. 100% Turkcell Finansman A.Ş. 100% Paycell Europe GmbH 100% Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. 100% Lifecell Müzik Yayın ve İletim A.Ş. 100% Turkcell Dijital Teknolojileri Limited 100% Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. 23% Lifecell Digital Limited 100% Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. 90.91% Turkcell Dijital Sigorta A.Ş. 100% Dijital Eğitim Teknolojileri A.Ş. 100% Turkcell Dijital İş Servisleri A.Ş. 100% Beltower LLC 100% Kule Hizmet ve İşletmecilik A.Ş. 100% Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş. 100% Boyut Grup Enerji Elektrik Üretim İnş. San. ve Tic. A.Ş. 100% BİP Digital Communication Technologies B.V. 100% Lifecell Ventures B.V. 100% BİP İletişim Teknolojileri ve Dijital Servisler A.Ş. 100% Turkcell Gayrimenkul Hizmetleri A.Ş 100% Atmosware Teknoloji Eğitim ve Danışmanlık A.Ş. 100% Turktell Bilişim Servisleri A.Ş. 100% Turkcell Group Companies Note: As of December 31, 2024 CJSC100% Superonline İletişim Hizmetleri A.Ş. 100% Lifecell TV Yayın ve İçerik Hizmetleri A.Ş. 100% TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 29 28 | TURKCELL 2024 INTEGRATED ANNUAL REPORT OUR VISION Superior digital services for a better future OUR MISSION To add value to the digitalization journey of our customers, both in Türkiye and across the globe, and enrich their lives with our continuously improving competencies and robust ecosystem TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 30 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 31 Turkcell 2024 Awards Brandon Hall HCM Excellence Awards In 2024, Turkcell received 5 Bran- don Hall HCM Excellence Awards. Among Turkcell Academy pro- grams, the YUPO-PRO Develop- ment Program won the Talent Management - Best High Poten- tial Development category, the Turkcell Internal Mentoring Pro- gram won the Gold Leadership Development - Best Coaching and Mentoring Program cate- gory, the YUPO-M Development Program won the Silver Learning and Development - Best Unique or Innovative Talent Management Program category, and the Dig- ital Transformation Consultancy Program won the Bronze Sales Performance - Best Program for Sales Training and Performance category. The GNÇYTNK project received the Gold Award in the Talent Acquisition - Best Advance in Candidate Experience Man- agement Technology category. Within the scope of Brandon Hall Group Award Excellence in 2024, Turkcell Global Bilgi received the Gold Award in Human Resourc- es - Best Benefits, Wellness and Well-Being category with the IK Seninle Program; Gold Award in Leadership Development cat- egory with Özde Lider - New Leader Training Program; Silver Award in Talent Management - Best Performance Management category with OKR Performance Management System and Bronze Award in Talent Management - Best Unique or Innovative Tal- ent Management category with #buradakariyervar Program. Future of AI & Cloud Summit Awards At the Future of AI & Cloud Summit Awards, Turkcell was awarded the Best AI Transformation and Implementation prize for its use of artificial intelligence in the Baykuş credit control risk monitoring prod- uct, and the Best Machine Learn- ing Project award for the Pasaj Analytics Lifecycle Project. International Customer Experience Awards At the International Customer Ex- perience Awards (ICXA'24), Turkcell was awarded the Bronze Award in the Best Customer Experience Service category with its eSIM Transition Project and in the Best Contact Center category with its Location Based Intelligence Solu- tion and IVR Integration (KİNYAS). IDC Future Enterprise Awards The SIMPLE Project, developed by Turkcell ICCI-SIM and ICT-GENS teams, won the Best Future to Intel- ligence Project of the Year award at the IDC Future Enterprise Awards. Glotel Telecom Awards Turkcell was awarded the 'Highly Commended' prize in the 'Delight- ing the Customer' category at the Glotel Telecom Awards for its Cus- tomer Twin Project. E-Commerce Summit Awards Turkcell Pasaj was the recipient of the Gold Award in the Most Rep- utable and Reliable E-Commerce Site of the Year Category, the Silver Award in the Technology Market- place of the Year Category and the Bronze Award in the Online Marketplace of the Year Cate- gory at the E-Commerce Summit Awards held in 2024. SDC Awards Our RPA Marathon Program, which has been running since 2022, was announced in January 2024. We were delighted to be awarded two prestigious awards at the SDC Awards 2023: Intelligent Automation Project of the Year and Company Cul- ture Initiative. Türkiye Cyber Security Cluster 4th Sector Summit Turkcell was the recipient of two awards at the 4th Sector Sum- mit of the Turkish Cyber Security Cluster, held in Antalya be- tween February 22-25, 2024. The awards were in the categories of 'Support to Local Ecosystem' and 'Collaboration Champion'. The International Loyalty Awards The Turkcell Gönül Bağı Project was awarded first prize in the 'Best Loyalty Program Marketing Campaign' including 'Best Use of Communications' category at the London-based 'The Inter- national Loyalty Awards', where the world's most successful projects in the field of marketing are evaluated. PSM Awards Paycell was awarded the Gold PSM award in the 'In-House Innovation' category with the Paycell Showcase - RPA Robot project at the PSM Awards, organized by Payments Systems Magazine (PSM). Business Transformation & Operational Excellence Awards Turkcell was awarded the Best Achievement in Process Au- tomation, Best Achievement in a Process Mining Program and The Platinum Award - Extraordinary Achievement at the 'Business Transformation & Operational Excellence Awards'. These awards recognize the world's most successful projects in the field of Digital Transformation and Operational Excellence. Kincentric Best Employers 2024 Turkcell was awarded the 'Türkiye's Best Workplace' prize in the Kincentric Best Employers 2024 program, which is one of the most widely participated workplace surveys in Türkiye. İstanbul Üniversitesi Mavi Elma Ödülü Turkcell's "Recycle into Education" project has been recognized with the 'Social Responsibility Project of the Year Award' at the 2024 “Mavi Elma” Award ceremony, hosted by Istanbul Univer- sity Business Club. Stevie 2024 The International Business Awards Turkcell's 'Lexboard - Mobile Legal Dashboard' project has been recognized with the prestigious Gold Stevie award in the 'Business Technology Solution Categories - Legal Solution' cat- egory at the Stevie 2024 International Business Awards. “Kristal Elma” Awards At the 36th “Kristal Elma” award ceremony, Turkcell received a total of 5 awards with 3 Crystal, 1 Bronze and 1 Silver Apple for its GNÇ campaign, and won 7 awards in total with lifebox, fizy, Turkcell Superonline and Turkcell Smart Billing campaigns. Turk- cell also received the ‘Brand Supporting Creativity’ award. Gartner Eye on Innovation Awards The 5G Connected Autonomous Bus Project, which was real- ized at the 5G Technology Campus established by Turkcell in cooperation with Ericsson and Istanbul Technical University, was awarded at the Gartner Eye on Innovation Awards. IPRA Golden World Awards Turkcell was the recipient of two awards at the 2024 IPRA Gold- en World Awards. The first was in the Event Management cat- egory, for the Çadırkent Earthquake Region Children's Activity Project, and the second was in the Environment category, for the Circular Electronics Digital Children's Book cooperation project. Customer Centricity World Series Turkcell was awarded in the Complaint Management catego- ry with its Artificial Intelligence Supported Complaint Manage- ment Project and in the Digital Strategy and Transformation category with its Location-Based Spatial Intelligence Solution and IVR Integration Project (KİNYAS) in the Customer Centricity World Series award program, which was held for the fifth time in 2024. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 33 32 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Turkcell Group: Developments in 2024 Turkcell Group companies operate in 3 countries, namely Türkiye, Belarus and the Turkish Republic of Northern Cyprus, with 22,228 employees. 1.5 Million Mobile Subscribers 2.2 TRY Billion Revenue BELARUS BeST 0.6 Million Mobile Subscribers 1.7 TRY Billion Revenue TRNC Kuzey Kıbrıs Turkcell TRY 143.8 Billion Revenue 38.3 Million Mobile Subscribers 3.2 Million Fixed Subscribers 1.5 Million IPTV Subscribers TÜRKİYE Turkcell Türkiye TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 34 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 35 2024 Strategic Objective and Managerial Achievement Assessment Strong revenue, EBITDA and net income performance thanks to our diversified business model, dynamic pricing strategy, actions to encourage customers to upgrade to higher packages and focus on postpaid subscribers EBITDA of TRY 69.8 billion with 10.2% growth Net income realized at TRY 23.5 billion with an increase of 29.8% Revenue increased by 7.8% to TRY 166.7 billion Strong cash flow generation despite inflationary conjuncture and high investments TRY 7.3 billion free cash flow generation4 Successful performance of our diversified business model supporting Group growth 46.2% revenue growth in our Data Center and Cloud business 30.9% growth in techfin revenues, 25% growth in Paycell revenues, 32.8% growth in Financell revenues 168 thousand net Turkcell fiber subscriber6 additions 1.9 million mobile postpaid net additions, resulted in 29.1 million postpaid subscriber base Successful subscriber acquisition performance with strong infrastructure and rich value propositions Continued growth in data usage through digitalisation, increased smartphone penetration and 4.5G user growth 303 thousand net mobile subscriber additions Average monthly mobile data usage per user increased to 18.2 GB with 7.1% increase A debt ratio well below the sector average and a balanced foreign currency position thanks to dynamic balance sheet management Net leverage ratio2 at 0.14x level 124 USD million net short FX position3 Mobile ARPU growth supported by price adjustments, fiber and postpaid subscriber focus and migration to higher packages 10.4% mobile ARPU5 increase 13.6% residential fiber ARPU growth 2 Our net debt calculation includes ‘financial assets’ reported under current and non-current assets and reserve requirements held at the Central Bank of the Republic of Türkiye. We believe that these assets are highly liquid and readily convertible to cash without material change in value. 3 Advance payments included. 4 The free cash flow calculation includes EBITDA as reported under UFRS and the items specified in the statement of cash flows as reported under UFRS: cash outflows from purchases of property, plant and equipment and intangible assets, changes in operating assets and liabilities, cash outflows related to lease payments and tax payments. 5 Excluding M2M. 6 As of the fourth quarter of 2024, our fixed broadband subscriber reporting has been revised. Turkcell Fiber refers to customers served entirely through our own fiber infrastructure, while Turkcell Resell includes DSL, Cable, and Fiber sales provided through infrastructures of other ISPs. Accordingly, historical subscriber figures have been revised to ensure comparability 7 Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers The highest net addition level in the last 15 years: 578 thousand total net additions7 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 37 36 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Strong performance in sustainability indices Increasing momentum towards net zero targets Being included in the BIST Sustainability Index since the first day Listing in the BIST Sustainability 25 Index 76,258 GJ energy savings, 9,362.79 tonnes CO2e emission reduction 1,010 new green field commissioning with a total of 2,410 green fields 8.2 MW field type solar power plant capacity activation Increasing reuse practices in e-waste management Strengthening Türkiye's sector leadership in intellectual property Promoting equal opportunities and diversity 35.2% female employee ratio 31% female employees graduated from engineering departments 87 Whiz Kids classes in 55 cities 34% female employees in IT positions 1,712 Number of R&D employees 4,820 national patent applications; 1,129 registered patents 8 ongoing HORIZON 2020/ Europe projects, 8 ongoing TÜBİTAK supported national projects TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 38 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 39 TURKCELL CREATING VALUE As Turkcell, we are proud to have achieved 30 years of success by being at the forefront of change in the sector. 40 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 41 Focusing on the expectations of our stakeholders, we have strengthened our integrated digital operator identity with a constantly evolving approach. We continue to generate value for al our stakeholders. As in the past, we remain committed to transforming innovative digital technolo- gies into services that enhance people’s quality of life, supporting institutions in their digital transformation journeys, and contributing to sustainable development across all our operational fields. With strat- egies that turn these elements into a pro- fitable and responsible integrated busi- ness model, we will continue to create val- ue with determination. The Integrated Value Creation Committee, led by the Chairman of the Board of Direc- tors and operating at senior management level, is responsible for ensuring the connec- tion between Turkcell's strategic and opera- tional levels in accordance with the compa- ny's Integrated Value Creation Model. The committee directs and controls the prepa- ration of the Turkcell Integrated Annual Re- port within the framework of Environmental, Social and Governance (ESG) policies. The Turkcell Group Sustainability Commit- tee, which operates with the participa- tion of directors from various functions, is responsible for identifying sustainability priorities and the risks and opportunities arising from these issues in line with ESG policies. The committee is also responsible for preparing and implementing short and long-term action plans accordingly, and reporting the results to the Board of Direc- tors through the Integrated Value Creation Committee. Efforts to improve performance in targeted areas are carried out by proj- ect teams formed with the participation of senior management and determined according to their areas of expertise. The Corporate Social Responsibility, Sustainabil- ity and Non-Governmental Organizations (NGO) Relations Unit, which reports to the Corporate Communications, Media and Brand Management Directorate, coordi- nates company-wide efforts with a holistic approach to achieve common sustainability and climate goals. The unit's responsibilities include coordinating processes such as determining sustainability priorities, period- ically re-evaluating the sustainability strat- egy, ensuring data flow for performance evaluations, and realizing mandatory and voluntary sustainability declarations. The Sustainability Committee has members at Manager, Director and General Manager levels from 11 functions. These functions are Investor Relations, Administrative Affairs, Em- ployee Experience, Network Technologies, Turkcell Energy, Corporate Governance and Capital Markets Compliance, Marketing - Corporate Communications, Sales, Finance, Supply Chain and Sustainability. The Secretary General of the Sustainability Committee is also the Associate Director of Corporate Social Responsibility, Sustain- ability and NGO Relations since 2020. In the 2024 reporting period, she received training on Carbon Trading and Carbon Markets and Sustainability in Supply Chain. The Turkcell Group's ESG policies are eval- uated by the Sustainability Committee and the Integrated Value Creation Committee, and subsequently implemented following approval by the Board of Directors. The Corporate Governance Committee presents solution-oriented proposals to the Board of Directors regarding the develop- ment and implementation of the Company's corporate governance principles and over- sees investor relations and sustainability ac- tivities. Investor Relations Director and Cor- porate Governance and Capital Markets Compliance Director are among the mem- bers of the Corporate Governance Commit- tee. The Investor Relations Unit has compe- tences in international sustainability indices. In addition, the Corporate Governance and Capital Markets Compliance Unit has ex- pertise in Social and Governance, which are the main components of ESG. The Early Detection of Risk Committee, which was established within the Board of Directors, works to identify risks that may jeopardise the existence, development and continuity of the Company. It also takes necessary measures to mitigate and man- age these risks, and submits a report to the Board of Directors every two months. These reports are also shared with an indepen- dent audit firm. We manage the processes of identifying, assessing, prioritising and monitoring risks and opportunities related to sustainability issues. This is integrated into the corporate risk management process. In this process, all relevant teams collaborate to analyze risks and opportunities related to climate change, evaluate expert opinions and re- port the results to senior management for review. The sustainability risks identified through this process are incorporated into our corporate risk inventory, and we ensure that the necessary measures and actions are taken. As part of the TCFD (Task Force on Cli- mate-related Financial Disclosures) report- ing study we carried out in previous periods, we began to extend our practice of assess- ing climate-related risks and opportunities to other sustainability areas, including so- cial, environmental and governance areas, during the reporting period. We evaluate the findings generated from these process- es within our strategic planning process and incorporate them into our three-year strate- gic plans. This enables us to regularly review the impact of sustainability risks on compa- ny strategies. We will continue to enhance our sustainability risk and opportunity man- agement inventory through the studies we will carry out in the coming periods. We manage sustainability risk areas through processes designed in accordance with international standards. In this context, the following system standards are followed: ISO 9001 Quality Management System, ISO 10002 Customer Satisfaction Management System, ISO 14001 Environmental Manage- ment System, ISO 14064 Greenhouse Gas Calculation and Verification Management System, ISO 20000 Information Technolo- gy Service Management System, ISO 22301 Business Continuity Management System, ISO 27001 Information Security Manage- ment System, ISO 27017 Cloud Information Security System Standard, ISO 45001 Occu- pational Health and Safety Management System and ISO 50001 Energy Management System. The currency and implementation level of these system standards, which are valid in all of our operations, are verified and certified through periodic independent external audits. We develop corporate policies in sustain- ability areas and strengthen management processes in this field. For instance, we follow Turkcell Group Human Rights Policy in order to create a decent working environment and support human rights in our value chain, and Turkcell Group Environmental Policy in order to create a long-term positive impact by taking into account climate and environ- mental impacts. We publish our corporate policies under the Sustainability section on our corporate website for our stakeholders' review and information. Through the integrated management model that we have established, we con- sistently track our performance with con- crete and measurable indicators, ensuring the effective management of the value we create for all our stakeholders. Turkcell Group has established an inte- grated and hierarchical management structure for the management of envi- ronmental, social and governance (ESG) issues. Within this structure, we clearly define re- sponsibilities at various levels and ensure that corporate strategies are implemented in line with ESG targets. The Turkcell Group Board of Directors, elect- ed by the General Assembly in accordance with the provisions of our Articles of Associa- tion, has direct responsibilities such as evalu- ating the strategic management of our Inte- grated Value Creation Model and monitoring progress in these matters. Special commit- tees have been established across the Com- pany to ensure and oversee the highest sus- tainability standards. These efforts began in 2020 with the establishment of the Integrated Value Creation Committee and the Sustain- ability Committee. These bodies support the Board of Directors in assessing and manag- ing sustainability risks and opportunities in Turkcell Group's overall business strategy. We publish our corporate policies under the Sustainability section on our corporate website for our stakeholders' review and information. Turkcell Group Sustainability Management and Involvement of Senior Management Board of Directors Early Risk Detection Committee Integrated Value Creation Committee Corporate Governance Committee Corporate Risk Management Sustainability Committee Internal Control and Continuous Improvement Directorate Corporate Communications, Media and Brand Management Directorate TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 43 42 | TURKCELL 2024 INTEGRATED ANNUAL REPORT At the center of our Integrated Value Model are the Sustainability Priorities, which are also the defining element of Turkcell Group Sustainability Strategy. Defining Turkcell's Sustainability Priorities We identify Turkcell's Sustainability Priorities as a result of the analysis of a wide universe of potential social, economic, environmental and tech- nological issues, which we obtained through 17 Sustainable Development Goals (SDGs), sectoral initiatives such as GSMA, reporting standards such as GRI, research such as WEF Global Risk Report and various international index contents, with the participation of our internal and external stakeholders. In this process, we adopt the Double Materiality approach. We evaluate our subject universe with the participation of our internal stakeholders in terms of the potential to create risks and op- portunities that may affect Turkcell Group's business success. We also in- volve various external stakeholders in terms of the magnitude of the expec- tations arising from the impact of our activities. By combining the results with the relevant management bodies and expert opinions, we identify the mate- rial issues that shape Turkcell Group's sustainability strategy. Our strategic model and priorities will come into ef- fect upon approval by the Integrated Value Creation Committee. While we carry out our main materiali- ty process in parallel with the strategic planning periodicity, we also update it with expert assessments when neces- sary. In 2023, the materiality analysis we conducted in 2024 was not renewed as per the Integrated Value Creation Com- mittee’s decision, as it was still up-to-date. Company Impact Low Low High Stakeholder Expectation Level High ㉛ ⓰ ⓬ ⓱ ㊺ ㊷ ㉙ ㊶ ㉚ ⓲ ㉑ ❻ ㉝ ❼ ㉒ ㊸ ㉜ ㊹ ⓯ ⓮ ㊳ ㊲ ⓫ ㉕❽ ㊱ ㉞㉓ ❾ ⓳ ⓴ ❿ ㉔ ㉟㊻ ➀ Emergency Preparedness and Ensuring Infrastructure ➁ Pioneering Digital Technologies and Innovation ➂ Becoming an Active Integrated Telecom Operator in the Value Chain Extending from Fiber Infrastructure to Digital Business Services ➃ Improving the Geographical Coverage of Reliable, Quality and Fast Digital Service Infrastructure ➄ Improving Digital Customer Experience and Satisfaction ➅ Managing the Financial Impacts of Climate and Sustainability Risks ➆ Contribution to Local Economy ➇ Favoring Local Procurement Activities ➈ Prevention of Anti-Competitive Behavior ➉ Transparent Corporate Tax Practices and Policies ⑪ Protection of Intellectual Property Rights ⑫ Increasing Employee Satisfaction and Loyalty ⑬ Earthquake and Emergency Preparedness ⑭ Protection of Employee Rights ⑮ Dissemination of New Working Models such as Remote Working, Flexible Working ⑯ Talent Management, Employee Development and Training Activities ⑰ Cyber Security and Data Privacy Protection ⑱ Protecting Children, Youth and Seniors Against Cyber Risks ⑲ Ensuring Gender and Equal Opportunities in the Workplace ⑳ Supporting the Social and Cultural Development of the Society ㉑ Improvement of Employee Health and Safety ㉒ Managing the Health Impacts of Mobile Devices and Base Stations ㉓ Transparency in Product Information and Responsible Marketing Practices ㉔ Legal Compliance, Business Ethics and Anti-Corruption Practices ㉕ Promoting Digital Rights, Ethics and Diversity of Expression ㉖ Increasing the Use of Renewable Energy ㉗ Efficient Use of Energy ㉘ Increasing Solar Energy Investments ㉙ Developing Environment and Climate Friendly Digital Products and Services ㉚ Efficient Use of Water ㉛ Promoting Circular Economy and Responsible Waste Management ㉜ Management of Climate Change Risks ㉝ Preferring Environmentally Friendly Material Consumption in Activities and Reducing Consumption ㉞ Green Building Applications ㉟ Development of Green IT Application and Infrastructure ㊱ Applications for the Protection of Biological Diversity and Natural Life ㊲ Reducing GHG Emissions in Operations ㊳ European Union Border Carbon Tax Practices ㊴ Pioneering the use of innovative digital technologies in key sectors such as education, health, agriculture, transport and finance ㊵ Supporting the Development of Domestic Technologies ㊶ Supporting Vocational Training Activities that will increase the employment chances of young people by increasing their capacity in the field of Information and Communication Technologies ㊷ Increasing Access to Digital Technologies and Digital Literacy of Large Social Masses, Disadvantaged Groups or Groups with Low Purchasing Power ㊸ Supporting Business Model Ideas Aiming to Solve Sustainability Problems with Digital Technologies ㊹ Supporting Smart Mobility and City Applications ㊺ Supporting Ethical Rules in Artificial Intelligence Applications ㊻ Managing Sustainability Impacts in the Supply Chain ❶ ⓭ ❹ Increasing the Use of Renewable Energy ㊵ ㊴ Becoming an Active Integrated Telecom Operator in the Value Chain Extending from Fiber Infrastructure to Digital Business Services Increasing Solar Energy Investments Improving Digital Customer Experience and Satisfaction ❸ Pioneering the use of innovative digital technologies in key sectors such as education, health, agriculture, transport and finance ㉗❷ ㉘ ❺ Pioneering Digital Technologies and Innovation Efficient Use of Energy Improving the Geographical Coverage of Reliable, Quality and Fast Digital Service Infrastructure Emergency Preparedness and Ensuring Infrastructure Earthquake and Emergency Preparedness Supporting the Development of Domestic Technologies ㉖ TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 45 44 | TURKCELL 2024 INTEGRATED ANNUAL REPORT We integrate the issues that emerge from the prioritisation process, the potential of our sector, the agility of our organization and our superior digital service experience with sectoral risk and opportunity parameters and Sustainable Development Goals, and transform them into a sustainability strategy that will have a positive impact in the short, medium and long term. We periodically measure and evaluate the outputs of the 'Positive Imprint in Sustainability' strategy, which we have created within 3 main axes, and update our position when necessary. Turkcell Group Sustainability Strategy: Turkcell Sustainability Strategy Equal Digital and Social Opportunities Digital Security and Wellbeing Human Oriented Turkcell Culture Transparency and Accountability Ethical Conduct Responsible Value Chain Decarbonization and Renewable Energy Circular Conduct Efficient Technology Solutions The Positive Imprint in Sustainability Strategy consists of 3 main axes: Inclusive Positive Imprint is focused on the promotion of equal opportunities in our workplace, products and services, as well as in our so- cial area of influence, the in- clusion of all segments of so- ciety, and the enhancement of well-being in the digital domain, and ‘leaving no one behind’ in social, economic and cultural development. With Positive Imprint to Our Business, we aim to develop a strong business model that is shaped by the principles of transparency, accountability and business ethics across all our operations and value chain, and where sustain- ability risks and opportuni- ties are managed effectively. With Positive imprint to the Environment, we aim to manage our environmental impacts, protect natural life and play a leading role in combating environmental problems, especially climate change, through our circular practices, renewable energy investments and low-carbon technologies. This systematic approach provides a comprehensive risk management strategy that encompasses not only the impact of climate-related risks and opportunities on company operations, but also on stakeholder relations. in Sustainability to Our Business to the Environment Inclusive to Our Business to the Environment Inclusive TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 47 46 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Sustainable Development Objectives Supported Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship Target 10.3: Ensure equal opportunity and reduce inequalities of outcome Target 12.2: Achieve the sustainable management and efficient use of natural resources Target 12.4: Achieve the responsible management of chemicals and all wastes Target 12.5: Substantially reduce waste generation Target 13.2: Integrate climate change measures into national policies, strategies and planning Target 13.3: Improve education and institutional capacity on climate change mitigation Target 16.5: Substantially reduce corruption and bribery in all their forms Target 16.6: Develop effective, accountable and transparent institutions at all levels Target 16.10: Ensure public access to information and protect fundamental freedoms Target 17.6: Enhance regional and international cooperation on and access to science, technology and innovation and enhance knowledge-sharing Turkcell aims to facilitate access to information and technology for everyone. It provides a fast and reliable connection to its users with its internet service. Turkcell recognizes the pivotal role of Türkiye’s youthful demographic in driving progress. In this context, Turkcell supports youth employment by developing programs that aim to nurture the entrepreneurial spirit of young people, enhance their professional competencies, particularly in information technologies, and prepare them for their careers with qualified education and experience. Turkcell recognizes the importance of young people in driving growth and innovation in Türkiye. Within this scope, various programs are being developed to support youth employment, particularly in information technologies, to foster the entrepreneurial spirit of young people, enhance their professional competencies, and prepare them for their careers with quality education and experience. Turkcell's responsible management approach involves the company's management of environmental risks arising from its operations in accordance with international standards. In this context, the company aims to improve resource efficiency, environmental protection, and the development of natural resources by taking measures, particularly with regard to mitigating the effects of climate change. By implementing these measures, Turkcell is able to reduce its environmental impact while enhancing the business value of the resulting resource efficiency. Initiatives are currently in progress in areas such as energy and water resource efficiency, waste management, circular economy practices, and biodiversity conservation. Turkcell offers solutions online and in its stores to support the use of second-product technology, and develops projects to recycle unusable information technology products. Turkcell recognizes climate change as a phenomenon that affects not only the natural environment, but also the global economy, human wellbeing and, consequently, Turkcell's business success. It is evident that effective measures to combat climate change will create opportunities to positively impact business success. In alignment with this commitment, Turkcell has incorporated climate change-related risks and opportunities into its corporate policies, strategies and operational and service development planning processes. Turkcell is committed to managing the elements that may affect climate change, including energy consumption and greenhouse gas emissions, within its operations. In addition, Turkcell will increase the knowledge and awareness of its stakeholders, particularly employees, on climate sensitivity and will carry out efforts to expand the scope of the fight against climate change. To enhance the effect produced, Turkcell engages in joint ventures with various stakeholders, including civil society organizations. Turkcell is the only Turkish company that is listed on both the NYSE and Borsa Istanbul. As part of its management approach, it adheres to internationally recognized principles of corporate governance. It is also subject to legal regulations. In this direction, Turkcell aims to establish a transparent, accountable, and effective corporate governance structure across the Company and its Group companies. Maintaining a superior business ethics mindset among all employees and throughout the value chain, compliance with legal regulations, and prevention of any form of bribery and corruption are non- negotiable corporate principles. To this end, the Group has developed management and control systems, with performance regularly monitored and improvement measures taken as necessary. Target 7.2: Increase substantially the share of renewable energy in the global energy mix Target 7.3: Double the global rate of improvement in energy efficiency Target 7.4A: Enhance international cooperation to facilitate access to clean energy research and technology, and promote investment in energy infrastructure Target 8.1: Sustainable economic growth Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation Target 8.3: Promote development oriented policies that support productive activities entrepreneurship and new job opportunities Target 8.4: Improve resource efficiency in production and consumption Target 8.5: Achieve full employment, decent work and equal pay for work of equal value Target 8.6: Support education and employment of youth Target 8.7: End modern slavery, humman trafficking and worst forms of child labor. Target 8.8: Protect labor rights and promote safe work environments Target 8.10: Expand access to banking, insurance and financial services for all Target 8.B: Develop a global strategy for youth employment Target 9.1: Develop sustainable, resilient and inclusive infrastructure Target 9.2: Promote inclusive and sustainable industrialization Target 9.3: Increase the access to financial services and markets Target 9.4: Upgrade industry and infrastructures to make them sustainable Target 9.5: Enhance scientific research and technology in industrial sectors Target 9.A: Facilitate sustainable infrastructure development in developing countries Target 9.C: Increase access to information and communications technology for all Turkcell's commitment to energy consumption management is reflected in its adherence to international standards, such as ISO 50001, which underscores the importance of operational efficiency in the context of climate change. Energy consumption points are subject to constant monitoring and measures are taken to increase energy efficiency. Since 2021, Turkcell has been sourcing all its electricity needs from certified renewable sources and has initiated investments in renewable energy in line with its objective of achieving net zero operations by 2050. As a result of these investments, Turkcell's total renewable energy capacity reached 32.9 MW in 2024. Turkcell, a leader in communication and digital service technologies, supports sustainable economic growth in the markets it operates in through its investments and R&D efforts in innovative infrastructure and application development. Thousands of Turkcell customers from various sectors have the opportunity to achieve digital transformation in their ventures through the provided communication infrastructure and innovative applications, leading to more efficient and productive business models. Additionally, innovative fintech services such as Financell and Paycell are developed to support wider societal access to insurance and financial products with more ease and advantage. As a signatory of the UN Global Compact, Turkcell is committed to providing a secure, inclusive and equal work environment where the rights of its employees are guaranteed. Turkcell is committed to eliminating any negative practices, such as forced labor and child employment, across its value chain. Turkcell is committed to the principle of equal pay for equal work and is dedicated to improving access to employment and providing equal opportunities and rights throughout the employment process in terms of gender equality. Turkcell is committed to providing its customers with a seamless and reliable service infrastructure through its robust network structure, extensive geographical coverage, and emergency preparedness capacity. The company is dedicated to continuously enhancing this quality. At the same time, Turkcell aims to make high technology accessible to everyone, including groups that face economic or social disadvantages, by providing access to a wide range of digital services such as fintech infrastructures such as Financell, Paycell and Güvencell, as well as financial, communication, and information technology products and services. Turkcell aims to be a trusted business partner for all economic actors, from small businesses to large industrial ventures, on their digital transformation journey. SDG Supported SDG Supported Targets Targets Description Description TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 49 48 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Interactions with our Stakeholders We base our activities and strategies on the vision of 'leav- ing no one behind', and we achieve this by carefully listening to the expectations and opinions of our stakeholders. We evaluate the feedback we receive in order to continuously improve our business processes, products and services. We prioritise consistency, inclusiveness and accessibility in our interactions with our stakeholders; we attach great impor- tance to responding to information and communication re- quests in a transparent, open and timely manner. We aim to interact with our stakeholders frequently and via a variety of communication channels. Employees Integrated Annual Report (annual), Meetings and Interviews (periodic), Assistant General Managers Open Door Meetings (periodic), Performance Evaluations (quarterly), Announcements (continuous), Reports, Awayday, Events (periodic), Information Reports (periodic), Publications and Bulletins (periodic), Corporate Website (continuous) During the reporting period, we continued to provide support in all areas by prioritising the needs of our employees. In this context, we produced solutions to the requests submitted by our employees and implemented various practices and programs to meet their health and psychological support needs. In line with macroeconomic developments, we have responded to the demands of our employees regarding wages and fringe benefits within the framework of our policies. Integrated Annual Report (annual), Media (continuous), Advertising and Promotion Activities (continuous), Social Media Accounts (continuous), Corporate Website (continuous), Dealers (continuous), Call Center (continuous), IVR (continuous), SMS and E-mail (continuous), Satisfaction Surveys (periodic), Turkcell App (continuous), KEP, CIMER, BTK, TCM channels (continuous) During the reporting period, we concentrated on delivering swift and effective resolutions to our clients' fundamental requirements, including service plan terms, promotions, service package acquisitions, and technical issues. Our ongoing digitalisation efforts have resulted in significant improvements to our responsiveness to customer requests, further consolidating our customer-focused approach. Integrated Annual Report (annual), Supplier Management System (continuous), Supplier Portal (continuous), Internal and External Meetings (periodic), Supplier Days (annual), Cooperation Meetings with SMEs and Local Producers (continuous), Technopark Visits (continuous), Turkcell Partner Network (continuous), Corporate Website (continuous) At the Supplier Summit held during the reporting period, we presented our procurement programs to our suppliers and provided an overview of the fundamental steps of our Sustainability Program. Over the next three years, we aim to evaluate the Environmental, Social and Corporate Governance (ESG) performances of 250 companies, representing 95% of our procurement volume, to offer improvement suggestions and to closely monitor these improvements. This year, we included 60 companies in the evaluation process and 45 companies registered on our platform and actively participated in the process. As part of our Supplier Human Rights Due Diligence activities, we hosted a webinar for 20 supplier companies. We also organized an event with the participation of companies in the evaluation process, where we introduced current developments in general sustainability issues and our evaluation platform. These actions are clear indicators of our goal to create a strong and sustainable ecosystem with our suppliers. Stakeholder Group Communication Tools and Frequency Frequently Asked Questions and Demands in 2024 Stakeholder Group Communication Tools and Frequency Frequently Asked Questions and Demands in 2024 Suppliers Customers Integrated Annual Report (annual), Press Releases (planned or instant), Press Meetings (planned or instant), Meetings and Interviews (upon request), Turkcell and Turkcell General Manager Social Media Accounts (continuous), Corporate Website (continuous) During the reporting period, we provided members of the media with the financial, project and application-oriented information about Turkcell and the sector that they requested. This was in line with our commitment to transparency and timely response. Media Integrated Annual Report (annual), Interim Reports (quarterly), General Assembly Meetings (annual), Conferences, Meetings and Roadshow Activities (periodic), Investor and Analyst Day Meetings (upon request), Financial and Operational Results Announcements and Annual Reports (quarterly), Sustainability Reports (periodic), Investor Relations Website (continuous), Teleconferences (periodic), Material Event Disclosures (instant), Frequently Asked Questions (continuous), E-mail (continuous), Telephone Calls (continuous), Corporate Website (continuous) During the reporting period, we addressed the key expectations of our shareholders and investors regarding financial and operational information through transparent and prompt disclosures across various channels. Additionally, responded to the growing interest and expectations regarding cyber security, corporate governance and legal compliance through the practices and information studies we have developed. Shareholders and Investors Integrated Annual Report (annual), Official Correspondence (continuous), Meetings and Events (periodic), Public Opinion Documents (upon request), Information Reports (periodic), Presentations and Position Papers (upon request), Publications and Bulletins (periodic), Corporate Website (continuous) During the reporting period, we provided thorough responses to requests for information and opinions from public institutions and regulatory bodies. We also responded positively to requests for cooperation and project development that are compatible with our activities and match our resources. We assumed an active role in sharing information with public institutions and regulatory bodies, successfully managing reporting processes and developing strategic approaches in line with public opinion. We further strengthened our corporate strategies through activities such as the preparation and publication of bulletins on national and international agendas. Public Insti- tutions and Regulatory Organizations Integrated Annual Report (annual), Memberships (continuous), Board of Directors Council and Working Group Meetings (periodic), Workshops (upon request), Seminars, Conferences and Events (periodic), Meetings and Interviews (upon request), Joint Projects (upon request), Corporate Website (continuous), Social Media (continuous), E-mail communication (instant) During the reporting period, we responded to information requests, membership applications, joint project and sponsorship proposals from non-governmental organizations within the framework of our corporate policies. We responded to information requests transparently; while evaluating membership, sponsorship and joint project requests, we took into account the compatibility of the values of the relevant organizations with Turkcell and the compliance of the requests with our fields of activity and corporate policies. In addition, we ensured the periodic participation of our team members in the working groups of NGOs and successfully represented our company by participating as speakers in congresses, seminars and workshops. NGOs Turkcell Academy Curriculum Courses (periodic), Certificate Programs (periodic), Technical Trips (upon request), Project Competitions (annual), Academic Publications (upon request), Joint Projects (upon request), Information Sharing Meetings (upon request), PhD Scholarships (upon request), Project Sponsorships (upon request), Corporate Website (continuous), social media (continuous) During 2024, we strengthened our collaboration with technology transfer offices and universities, developed joint R&D projects and contributed to the development of the ecosystem through academic publications, technical training and conferences. We added value to the domestic production and innovation ecosystem by supporting global collaborations of universities with international projects. We supported the strengthening of scientific research with the scholarships we offered to PhD students in the field of artificial intelligence. We contributed to scientific studies by responding positively to course content support, field visits and academic research requests from universities and academics to the extent of our possibilities. We facilitated knowledge and experience sharing among industry representatives, academics and students by organizing events such as Teknofest and panels at international academic conferences. In addition, within the framework of the annual donation limit set by the General Assembly, we regularly donate to institutions, associations and foundations working for the public good, especially for educational scholarships. These activities are concrete examples of our vision to add value to society and invest in the future. Universities, Academics, Students TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 51 50 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Turkcell Group’s Sustainability Initiatives Memberships We act with the belief that we can create a greater impact by working together with NGOs with which we share common goals and values. Consequently, we are proud to sup- port key organizations such as the UN Global Compact, the Women's Empowerment Principles (WEPs), the GSM Association (GSMA), the Sustainable Development Associ- ation and the Mobile Telecommu- nication Operators Association. In addition, we are members of nu- merous non-governmental organi- zations operating in various fields, and we contribute to these orga- nizations by representing them in their governing bodies and working groups. We continue to advance our vision of building a stronger, more sustainable future through cooperation. You can find the full list of the organizations we are a member of and their level of engagement in the Table of Appendix-3: Non- Governmental Organizations Memberships. Relations with Public Institutions As Turkcell and Group Companies, the various regulations we are subject to form the basis of our relations with public in- stitutions and organizations. These regu- lations directly influence all our activities, from our technical and commercial oper- ations to our service delivery conditions and the framework of our relations with our stakeholders. We therefore pay close attention to legislative developments in our sector and proactively contribute to the consultation, development and im- plementation of regulations. We respond to the opinion requests of regulatory au- thorities by analyzing the possible legal, technical, commercial, operational and economic impacts of regulations on the sector. In addition, we participate in leg- islative studies initiated by non-govern- mental organizations, contributing to the formulation of regulations by preparing joint position and opinion documents. Furthermore, we generate economic and social added value through our pioneer- ing role in technological transformation in the countries where we operate. We achieve this by providing a mobile net- work, fiber infrastructure, world-class data centers and innovative digital prod- ucts and services. Relations with Shareholders and Investors Turkcell is committed to being transpar- ent, equitable, consistent and accessi- ble to its investors and shareholders. We consider it a fundamental responsibility to respond to the information requests of our investors and shareholders in a clear, accurate and timely manner. Through our disclosure activities, we aim to intro- duce Turkcell in the right way, to convey our business model, risk and opportunity analysis and strategies to investors and to enable them to make well-informed in- vestment decisions. Mobile Telecommunications Operators Association (m-TOD) The Mobile Telecommunication Opera- tors Association (m-TOD) was established in 2016 with the aim of finding solutions to the common problems of the sector and putting these solutions into practice. The association was formed through the co- operation of three authorised operators operating in our sector. As founding mem- bers of this platform, we aim to contribute to the spread of an ethical, effective and competitive approach in the mobile tele- communication services sector in Türkiye. Ali Taha Koç, PhD, our CEO, assumed the role of Chairman of the Board of Direc- tors of m-TOD on November 27, 2024, and our Assistant General Managers, Ali Uysal and Prof. Dr. Vehbi Çağfı Güngör, serve as Board Members of the Association. Through this valuable platform, we con- tinue to make strong progress towards the development of our industry and contrib- ute to a sustainable future together with our stakeholders. Green Digital Action In 2024, we were proud to be among the supporters of the 'Green Digital Action' declaration, which was signed at COP29. This declaration, which was formally adopted on November 16 during the in- augural “Digitalisation Day” at the COP Summit, underscored the pivotal role of digital technologies in addressing climate change. It also called upon all relevant stakeholders to collaborate in reducing the environmental impact of digitalisation. Within the scope of this declaration, issues such as the effective use of digital technol- ogies and tools for climate action, building resilient digital infrastructures, mitigating climate change impacts of digitalisation, promoting digital inclusion and literacy, supporting data-driven decision-making processes, promoting sustainable innova- tions, disseminating sustainable consumer practices and facilitating the sharing of best practices are focused on. As Turkcell, by declaring our support for this important declaration, we have once again strongly demonstrated our deter- mination to contribute to sustainable de- velopment through digital transformation. NGMN is a forum established by leading mobile network operators worldwide and open to all stakeholders in the mobile in- dustry. The aim of this platform is to ensure that next generation network infrastruc- ture, service platforms and equipment op- timally meet the needs of operators and ultimately respond to the demands and expectations of end users. In addition, it undertakes significant activities to contrib- ute to the sustainability vision of the sector. As Turkcell, we are proud to contribute to the projects of the Green Future Networks working group within NGMN. Specifically, we are engaged in projects related to En- ergy Management, Measurement and En- vironmental Reporting and Sustainability. Notably, we have taken on the leadership role in the Environmental Reporting and Sustainability project. As part of this proj- ect, we will be analyzing the relevant rec- ommendations to accelerate zero-carbon targets in operators' products and services, and in their value chains. We will also pre- pare information reports to shed light on the sector. UN Global Compact In 2007, we became one of the signatories of the UN Global Compact, the world's largest corporate sustainability initiative. In this context, we continue to firmly sup- port the 10 principles and sub-initiatives established in line with sustainable devel- opment. In this context, Turkcell is proud to be one of the founding members of the UN Glob- al Compact CFO Coalition for the SDGs, which brings together CFOs of leading companies around the world in the field of sustainability. In 2024, we contributed to the preparation of the report titled 'Accelerating Innova- tion in Sustainable Finance: Removing Barriers and Unlocking Value', which was commissioned by the United Nations Sec- retary-General Antonio Guterres in 2024. The report was presented in New York during the United Nations General Assem- bly Week in September 2024. All these efforts are clear indicators of our commitment to sustainable development and corporate responsibility. GSM Association (GSMA) Since 1998, Turkcell has been actively par- ticipating in GSMA, which shapes the mo- bile communications industry worldwide and brings together more than 800 indus- try stakeholders, and we have the oppor- tunity to share our local and international experiences on this platform and benefit from the knowledge and experience of other member organizations. The Mobile Net Zero initiative, which focuses on the realization of Net Zero targets by mobile operators in the fight against climate change, is of great importance. With the election of our CEO, Dr Ali Taha Koç, as a GSMA Board Member, we are committed to playing a more active role in this plat- form for the next two years. We are proud to be contributing to the GSMA Sustainability Network, which encourages the sharing of internation- al sectoral experience in line with GS- MA's Sustainable Development Goals. In this regard, we are among the first 8 companies worldwide to endorse the GSMA Accessibility Principles, and we are honored to be the inaugural Turkish company to sign these principles. In ad- dition, we have been selected as one of the leading pilot companies by GSMA in determining Environmental, Social and Corporate Governance (ESG) metrics for the mobile industry. Turkcell also contributed to the 'Re- sponsible Artificial Intelligence Maturity Roadmap' study, which was created within the GSMA to ensure the respon- sible use of artificial intelligence in the sector, from the first stage. Turkcell was among the 19 operators that launched the initiative. The roadmap aims to as- sess the maturity levels of operators in the current use of artificial intelligence and provide a guiding tool to help them achieve their goals. Our Turkcell Intelligence Power project and the social impact analysis study of this project were recognized by GSMA as the best exemplary project in the 'SDG (Sustainable Development Goals) Impact Assessment' report. This prestigious report was presented in New York as part of the 77th General Assembly Week of the United Nations, creating a wide impact in the in- ternational arena. We remain committed to our mission of adding value to both the sector and society at large. Our collaboration with the Sustainable Development Association (SKD) Türkiye, the Türkiye regional network and business partner of the World Business Council for Sustainable Development (WBCSD), is a key component of our commitment to creating a sustainable future. SKD Türki- ye plays a pivotal role in enhancing the understanding of sustainability within the business community by disseminating in- ternational and local knowledge among its members through the working groups it has established. We are also proud to actively contribute to these processes by taking part in the Audit Committee of the association. Sustainable Development Association With our strong belief in equal oppor- tunities in the workplace, we are taking important steps to improve the position of women in business and social life in line with our goal to support Gender Equal- ity, one of the Sustainable Development Goals. In this context, we have become a signatory to the Women's Empowerment Principles (UN WEPs) established by UNGC and UN Women in 2012. In line with the UN WEPs, we are com- mitted to practices that aim to empower women in the workplace, including equal pay and a zero-tolerance policy against discrimination. By integrating gender equality into the very fabric of our corpo- rate culture, we are committed to achiev- ing our goal of becoming the company that women most want to work for. Women’s Empowerment Principles Next Generation Mobile Networks Alliance (NGMN) You can find detailed information on the management of our relations with our shareholders and investors in the Transparent Investor Relations section of our report. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 53 52 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Created Value Inputs Strategic Focuses Outputs TRY 166.7 Billion Revenue TRY 23.5 Billion Net Income TRY 69.8 Billion EBITDA TRY 7.3 Billion Free Cash Flow TRY 22.2 Billion EBIT 3.0% Dividend Yield 22,228 Members of Turkcell’s Large Family 1.74 Accident Frequency Rate 1.9 Million person 1.2 Million hours Total Trainings 35.2% Woman Employee Rate 490 New Recruits 24.4% Woman Manager Rate Up to 1.6 Gbps 4.5G Speeds 6% Network Traffic (internet) Increase Rate Up to 10 Gbps Fiber Internet Speeds 11,658 Base Station Sites with Risk Assessment 82% Network Virtualization Rate 99.874% Rate of Data Accessibility 7,977.99 tonnes CO2e Energy Reduction 4.2 Million GJ Renewable Energy Consumption 64,979.09 GJ Energy Saving 14 tonnes Recovered e-Waste 274,900 MWh Renewable Energy Generation 100% Recycled Waste Rate 1,712 R&D Employees 606 Patent Applications 11% Growth in Digital OTT Services Revenues and 13% Growth in Digital Services Total Revenues 35 Number of Horizon Europe Project Applications 8 Hospitals Which We Provide Infrastructure To 17 Incubator Firm Collaborations Financial Capital Human Capital Manufactured Capital Intellectual Capital Social Capital Natural Capital ䷬Robust network ䷬Strong spectrum ䷬Broad fiber infrastructure ䷬Data centers ䷬Financing diversity ䷬Efficient capital allocation ䷬Strong revenue model ䷬Business model hedging ䷬Transparent financial management ䷬Our patents and R&D capabilities ䷬Entrepreneurship rcosystem, start-up and university collaborations ䷬Our developed services and applications ䷬Artificial intelligence and blockchain applications ䷬Strong brand awareness ䷬Robust cybersecurity practices and services ䷬Digital infrastructure ䷬Transparent and trust oriented stakeholder relations ䷬Civil society, academy, public and corporate partnerships, international representation of our country and sector ䷬Social investment projects and sponsorships ䷬Turkcell volunteers ䷬Voluntary memberships ䷬Higher employment in callcenter operations ䷬Competent employees and agile teams ䷬Safe and healthy work environment ䷬Employment practices that make a difference ䷬Adoption of company culture and values ䷬Flexible working model ䷬Increasing women employment in the technology sector ䷬Efficient management of natural resources ䷬Investments and projects in renewable energy ䷬Environmental impact management through digitalization ䷬Efficient use of energy ䷬Turkcell waste management ䷬Value created through sustainable growth ䷬Robust balance sheet structure ䷬Market capitalization of the company ䷬Dividend paid and dividend yield ䷬Value generated for the economies of countries where we operate ䷬Contribution to Employment ䷬Having a competent human capital ready for the future digital world ䷬Establishing a strong and agile employee culture ䷬Developing the competencies of women and young people to increase their ䷬employment in technology ䷬Being a good employer ䷬Employee loyalty and motivation ䷬Diversity, inclusivity, and equal opportunity ䷬Providing career development opportunities ䷬Providing fast, high-quality, and comprehensive services to customers ䷬Contributing to keeping Türkiye’s data in Türkiye ䷬Leadership in technology and digital transformation ䷬Access to information and the internet for everyone ䷬Development of indigenous and national technological infrastructure ䷬Developing the innovation and entrepreneurship ecosystem through Turkcell experience. ䷬Becoming a global operator with a digital operator vision. ䷬Making life easier by developing inclusive and value-creating products and services. ䷬Better understanding the customer with data analysis skills. ䷬Reducing cyber security risks and meeting the cyber security needs of customers ䷬Ensuring ethical and equal business processes. ䷬Creating value with the use of open source code. ䷬Providing employment opportunities for Turkish/local engineers. ䷬Strong corporate governance ䷬Value creation through social investment projects ䷬Contribution to exchanging knowledge and experience among stakeholders ䷬Adopting a responsible and ethical business approach within the Turkcell ecosystem ䷬Collaborating with NGOs to contribute to the socio-economic and cultural development of the community ䷬Being a leading and guiding company in the industry and the country through representation ䷬Increasing brand trust and reputation ䷬Customer satisfaction ䷬Responsible use of resources ䷬Improving carbon emissions performance ䷬Contributing to the reduction of customers’ environmental impact ䷬Financial value created through sustainability activities ䷬Environmental awareness ䷬Reducing paper consumption ䷬Protecting sustainable agriculture and water resources ䷬Circular operations SDG's Supported Core Competencies Strategic Business Focuses Digital Services Financial Services Platform Our Telecom Business Strong Customer Relations Advanced Analytical and Technological Competencies Strong and Agile Team Strong Infrastructure Digital Business Services Sustainability Turkcell Group Value Creation Process 45.2 Million Group Subscriber Count 38.3 Million Mobile Subscriber Count (Türkiye) 578 Thousand Net New Customers Acquired (Türkiye) 61% Local Procurement Rate TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 55 54 | TURKCELL 2024 INTEGRATED ANNUAL REPORT As of 2021, we have established Sus- tainability Goals, encompassing sus- tainability policies within the ESG framework and ensuring their integra- tion as core components of our stra- tegic objectives. We have established Key Performance Indicators (KPIs) for all employees, including the CEO, to ensure the effective implementation of these goals. We have organized comprehensive sustainability training programs at all levels of our company and have introduced incentives in the form of competitions and awards to encourage the internalisation of these policies. In line with our renewed sustainability priorities and the TSRS Standards that came into force during the period, we have revised our KPI’s and created a more effective evaluation system. In Measuring the Value Created this context, our Sustainability Com- mittee continues to work on a compre- hensive system for detailed monitoring of changing sub-parameters related to performance evaluations. Sustainability indices and evaluation systems are vital tools for analyzing our sustainability performance using internationally recognized methodol- ogies. On an annual basis, we provide information within the scope of the MSCI ESG Index, the Borsa Istanbul Sustainability Index and the CDP Cli- mate Change Reporting. As Türkiye's leading telecommunications compa- ny, we are committed to reducing our greenhouse gas emissions. We have been approved by the Science-Based Targets Initiative (SBTi) and are working towards our targets to show our ded- ication to combating climate change. When measuring the performance achieved as a result of our value creation process, we aim to obtain more up- to-date, comparable and meaningful results by taking into account the indicator recommendations of international organizations such as GSMA, WEF and GRI, the requirements of TSRS standards, suggestions from our stakeholders and sectoral practices. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 56 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 57 Maintaining a strong corporate governance structure enables us to manage our business operations with high efficiency, and to demonstrate an exemplary corporate citizenship through ensuring compliance with legal obligations which we are subject to. STRONG CORPORATE GOVERNANCE TURKCELL 2024 INTEGRATED ANNUAL REPORT | 59 58 | TURKCELL 2024 INTEGRATED ANNUAL REPORT As Turkcell, we distinguish as a company, trusted by our stakeholders, thanks to compliance with domestic and international business regulations ensured by our Company’s compliance programs and our understanding of superior business ethics. As the only Turkish company listed on the Borsa Istanbul (BIST) and the New York Stock Exchange (NYSE), we have integrated internationally recognized corporate governance principles throughout our organiza- tional structure and effective cor- porate processes. This is a result of our pioneering position in the cap- ital markets, and supports our aim to generate long-term and sustain- able value for our stakeholders. Shareholder Structure Since 2000, Turkcell İletişim Hizmetleri A.Ş. has been the only company, shares of which are traded both on Borsa Istanbul and the New York Stock Ex- change as “ADS (American Depository Share)” Level III. With a high free float rate of 54%, we aim to provide long- term benefits not only to our customers, but also to all our Company’s stake- holders by implementing the highest standards of corporate governance practices. Our sustainability strate- gy and value creation model that we have developed in this context, as well as our goal to prioritise to act in ac- cordance with international standards in the fields of human rights, business ethics, anti-bribery and corruption, competition management, risk and cri- sis management allow us to be a good role-model for corporate citizenship. Board of Directors Structure Taking into account privileged share rights defined in the Articles of Association, the Turkcell Board of Directors, consists of a to- tal of 9 members, two of whom are woman, who are elected by the General Assem- bly with simple majority vote. Three of the Board members meet the independence criteria specified in the CMB and SEC/NYSE regulations. The Turkcell Board of Directors, whose du- ties and authorities are determined within the framework of the Turkish Commercial Code, has committees established at the Board of Directors level in accordance with the relevant legal provisions to ensure operational efficiency. These committees are the Early Detection of Risk Committee, Corporate Governance Committee, Audit Committee, Nomination Committee, Remu- neration Committee and Strategy and Digi- talization Committee. While the duties of the Chairman of the Board of Directors and the CEO are carried out by different individuals, the CEO is not a member of the Board of Directors but is in charge of execution. The Chairman of the Board of Directors does not have an exec- utive duty. that the candidate will be able to devote sufficient time for the Board membership taking into account the external commit- ments of the candidate. 5 out of 9 members of the Board of Di- rectors are elected by Group A preferred stock owner, TVF Bilgi Teknolojileri İletişim Hizmetleri Yatırım Sanayi ve Ticaret A.Ş. (TVF) by using privileged share rights as per the Articles of Association. Four of those 5 members are also nominated by TVF. There are no privileges foreseen for the election of the remaining 4 members, including 3 independent board members. The term of membership for the Board of Directors is a maximum of 3 years and the Chairman of the Board of Directors is elected by TVF with a privilege among the 5 members, in accordance with the privileges set forth in the Articles of As- sociation. The election of the Board of Di- rectors in the articles of association and the term of office of the members are car- ried out within the framework of the Turk- ish Commercial Code. In the event that the membership of any Director of the Board becomes vacant for any reason, another member who meets the legal requirements for the vacant chair may be elected temporarily in accordance with Article 363 of the Turkish Commercial Code, and the elected member is submit- ted to the approval of the first General Assembly to be held following his elec- tion. The member whom elected in this way serves until the General Assembly meeting, when it is submitted for approv- al, and if approved, completes the term of the predecessor. No classified or stag- gered Board structure has been adopted in the Board of Directors. Since 2019, Turkcell has adopted specific internal rules regarding possible conflicts of interest at the Board level. In this con- text, the code of conduct prepared for the members of the Board of Directors, who can be considered public officials, has been adopted and put into practice by our Board of Directors, considering the regulations binding for our company. In the management of the company, the principle of “1 share, 1 vote" applies, and there is no minimum share requirement or voting limit, except for preferred shares. Further to Turkish Commercial Code, all shareholders are entitled to suggest an agenda, obtaining information and ex- amination. In decision making, while the presence of the shareholders represent- ing at least 51% of the total capital and the majority of the votes is considered suf- ficient in general, there are cases where aggravated quorums are sought as per the articles of association and the rele- vant regulations. Our shareholder structure can be found in Note 1 of the CMB report. According to the Internal Directive on the Operation of Turkcell Board of Directors, as Turkcell and its Group Companies op- erate in many fields, especially in tele- communications, finance, technology, digital services, energy, infrastructure, digital education, etc., in order to ensure the necessary diversity and professional experience, it is endeavored that, at least two of the members of the Board of Di- rectors have sectoral experience in the electronic communications, information and communication technologies sec- tors and all the members of the Board of Directors have at least seven years of sectoral experience in their respec- tive fields of expertise and had the nec- essary education in the areas including engineering, finance, law, business ad- ministration, economics, public admin- istration and international relations. In addition, in the election of members, the Nomination Committee and the Board of Directors shall pay attention to the fact Strong Corporate Governance You can find further information about the Board of Directors Committees, their duties and members on our Corporate Governance Principles Compliance Report or on our on our website. Performance Evaluation Form and other evaluation process were designed in line with legislation and best practices. Each Board Member answered the set of questions composed of four sections in the Performance Evaluation Form. Answers of Board Members in the Peformance Evaluation Form were analyzed and improvement areas were identified. Analysis on feedbacks and identified improvement areas were presented to the Board and an action map was prepared. Evaluation process was designed taking into account best practices. Performance Evaluation Form was filled by the Board Members. Feedbacks were reviewed. Action map determined. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 61 60 | TURKCELL 2024 INTEGRATED ANNUAL REPORT The annual performance evaluation by the Board of Directors based on certain criteria was implemented initially in 2021 as part of the improvement of corporate governance across our Company and in line with the aim of using the improvement areas identified after the performance evaluation process as the basis for ad- vanced corporate governance practices, a number of actions were taken at corpo- rate level in the following years. In 2024, improvement areas identified during the Board of Directors' perfor- mance evaluation process in 2023 were addressed, and focus areas were deter- mined in collaboration with the relevant departments within the company. In this scope, studies were carried out to de- velop the qualitative and quantitative information packages provided prior to the meetings of the Board of Directors and Committees; to organize a joint ses- sion between the Early Risk Detection Committee and the Strategy and Digita- lization Committee on Cybersecurity is- sues; to ensure that developments in the ESG field and the company’s ESG com- mitments are regularly monitored at the Board of Directors and Committees level; and to improve communication channels among Board and Committee members outside of scheduled meetings. Within the scope of NYSE’s listing rules re- garding clawback policy that are appli- cable to our company, which entered into force on October 2, 2023, it was obligated for public companies to recoup/recov- er erroneously awarded performance based compensations from defined exec- utive persons (if any) under certain criteria if the Company is required to prepare a restatement of incomplete, inaccurate or misleading financial tables. In this context, our Company’s Board of Directors adopted Clawback Policy with a resolution dated November 7, 2023. Audit Committee, con- Board of Directors Performance Evaluation Method The set of questions as part of the Board of Directors Performance Evaluation methodology was determined under the following four sections: Within the scope of the methodology mentioned above, an action map was determined as per the outputs of the performance evaluation carried out by the Board of Directors. Information Provided to the Board Board Composition and Function Board Dynamics Standards of Conduct The set of questions contained in this section addresses the main issues such as the effectiveness of the oversight, adequacy of annual business plan reviews and whether the company’s value, mission, strategy, business plans are reflected on important issues, and whether financial indicators are followed up properly. The set of questions contained in this section addresses issues such as whether the members have the necessary qualifications, experience and skills, whether a sufficient number of meetings are held, and the functioning of the committees. The set of questions contained in this section addresses issues such as conflict of interest and adequacy of contribution. The set of questions contained in this section addresses whether there was timely, clear and comprehensive information regarding the meeting agenda items, whether financial information highlights important issues and trends, and the effectiveness and impartiality of the meetings. sisting of independent members, is desig- nated for the administration of the Claw- back Policy. In 2024, secondary regulations regarding the implementation of the rules accepted by the Board of Directors and the Audit Committee at the policy level were prepared, and compliance studies were carried out in coordination with the Human and Business Support Function. In this context, covered individuals within the scope of the Clawback Policy were iden- tified, and their explicit consent declara- tions, confirming their acceptance of the Clawback Policy, were taken. The performance evaluation process of the Board of Directors was completed for the year 2024 in line with the methodolo- gy above that Corporate Governance & Capital Markets Compliance Directorate designed and submitted to the Corporate Governance Committee and the commit- tee later proposed this performance eval- uation process to the Board of Directors. Human Rights, Business Ethics and Common Values Turkcell believes that in order to cre- ate long-term sustainable value and ensure stakeholder trust and social acceptance, it is vital to ensure that its operations, including its Group com- panies and third parties in the value chain, are conducted in accordance with internationally recognized ethi- cal principles. In this context, Turkcell implements its Human Rights Policy in order to create a working environment worthy of human dignity and to estab- lish a people-oriented operation in its ecosystem. On the other hand, Turkcell pays due attention to the ethical and responsible development and use of the technologies it uses and will de- velop in its business processes. In the technologies developed by Turkcell, such as artificial intelligence technol- ogies, Turkcell aims to act on the basis of human dignity, fundamental rights and freedoms by contributing to the UN Global Compact Principles and Sustainable Development Goals and creating a more livable world. In accordance with our Human Rights Policy, we comply with the Universal Declaration of Human Rights, the Inter- national Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, the UN Convention on the Rights of Per- sons with Disabilities, the UN Conven- tion on the Rights of the Child and the UN Principles on Business and Human Rights, We respect the UN Global Prin- ciples and the OECD Principles for Mul- tinational Enterprises, the provisions of the ILO Conventions to which Turkiye is a party, the "Right and Freedom of As- sembly" and the "Right to Form Trade Unions and to Engage in Trade Union Activities" of our employees as set out in the Constitution of the Republic of Turkiye; In addition, our employees are encouraged to become members of professional associations in their field or NGOs that provide social benefits. With the Turkcell Common Values and Code of Business Ethics (TODİEK), which was developed in line with global best practices and adopted by the Board of Directors, we protect our employees and adopt exemplary eth- ical behavior across our ecosystem. With this understanding, with the cur- rent structure and duties of the Ethics Committee above policies (Anti Brib- ery and Corruption and Human Rights) and other ethical policies that may be established, if deemed appropriate by the Ethics Committee, have been in- cluded to the scope of the Ethics Com- mittee’s oversight responsibility. In 2024, 29 cases were reported to our Company through Ethical Reporting Channels. The reviewed cases exam- ined were handled under three main categories: unethical and immoral be- haviors, information security financial issues. In 1 out of 24 cases reviewed, it was decided to apply the “Termination of Employment” sanction. It was further decided that the cases reviewed did not involve any actions that violate the Turkcell Group Anti-Bribery and Cor- ruption Policy. You can find the details of our Human Rights Policy on our website. Our employees, customers and suppliers are able to communi- cate their reasonable suspicions and sensations about situations that violate or potentially violate business ethics to the Turkcell Ethics Committee via the Ethics Line (0532 210 4444). Our employ- ees can communicate situations that are contrary to legislation and ethically inappropriate sit- uations related to the Compa- ny to the Audit Committee via the Company intranet, internal forms, telephone, etikbildirim@turkcell.com.tr e-mail address or indirectly or di- rectly to the Audit Committee via the Ethics Committee via auditcommittee@turkcell.com.tr e-mail address. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 63 62 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Anti-Bribery and Anti-Corruption, Compliance with International Capital Markets and Economic & Trade Sanctions and Export Controls Anti-Bribery and Anti- Corruption In line with our aim of being a trusted company for all our stakeholders and being an exemplary corporate citizen, we oversee compliance with national and international Anti-Bribery and An- ti-Corruption (ABC) standards covering all our activities. The Board of Directors approved the Anti-Bribery and Corrup- tion Policy in 2016 to establish the basis of our fight against bribery and corrup- tion. This document is a major indication of how the Board of Directors is commit- ted to the “zero tolerance” principle on bribery and corruption. Our ABC Policy is publicly available, and we expect the entire Turkcell ecosystem to act in line with this document. Within the frame- work drawn up by the ABC Policy, the ABC Program has been carried out with the establishment of the Corporate Gov- ernance & ABC Program Office as of April 2018, which takes necessary pre- ventive measures to ensure compliance with these rules and provides risk-based trainings and internal communications. As of January 1, 2021, the Corporate Gov- ernance & ABC Program Office contin- ues its activities under the name of Cor- porate Governance & Capital Markets Compliance Directorate (“Compliance Directorate”) with its autonomous struc- ture, reporting directly to the Board of Directors. The Compliance Directorate, responsible for implementing the anti-bribery and corruption compliance program in 2024, continued the end-to-end designed ABC training program, identified focus groups with a risk-based approach and implemented case studies dedicated to the supplier and partner ecosystem, based on real events, with the aim of enabling participants to make consis- tent decisions in their daily business and for frontline employees to eliminate potential risks through their preventive approaches.In addition, Compliance Di- rectorate was involved in contract and tender processes, especially in key ac- tivities such as mergers and acquisitions, legal approach to the relationships with financial institutions and technology business partners, maintained coordi- nation with domestic and foreign Group companies to ensure compliance with the ABC policy and conducted further workshops to improve the dissemination of the ABC policy to the whole Turkcell ecosystem. As part of the 2024 trainings program, trainings were given to two different fo- cus group, one is the Company/Group company employees and managers and the other is the suppliers and busi- ness partners. Within this framework, Anti-Bribery and Corruption trainings were provided to more than 6100 partic- ipants in a total of 15 one-hour sessions. In 2024: — Our CEO shared an awareness mes- sage about our ethics and business compliance programs with all com- pany and group company employees. — An interactive ABC training, which comparatively measures the level of knowledge of the participants be- fore and after the training and ad- dresses ethical dilemmas from actual daily professional life regarding brib- ery and corruption in a fictional flow, was assigned to all new employees who joined the Company. — Coordination and awareness activ- ities were held within the Compa- ny and domestic and international group company compliance con- tacts within the scope of the fight against bribery and corruption. Compliance with International Capital Markets Due to its specific position in the cap- ital markets, Turkcell implements dual rule sets and good practices within the framework of both Turkish and U.S. capital markets, particularly on corpo- rate governance structures, financial reporting and internal control process- es. Among Turkcell’s prominent corpo- rate processes implemented as part of those requirements, the following can be named: Turkcell Board of Directors and its committees’ structure, operating rules and independence of its members; the effective internal control environ- ment regarding the financial reporting processes based on reporting and dis- closure obligations before the Capital Markets Board (CMB), U.S. Securities and Exchange Commission (SEC), BIST and NYSE; the ethical rules applicable to the company’s senior management as well as finance executives in accordance with SEC; and the blackout period and the quiet period for the trading of shares. Practices based on the Public Com- panies Accounting Reform and Inves- tor Protection Act, also known as Sar- banes-Oxley (SOX) Act and U.S. Foreign Corrupt Practices Act (FCPA), which aim to improve the control mechanisms of companies’ financial reporting while supporting effective corporate man- agement, particularly stand out as part of Turkcell’s short- and longterm and sustainable corporate DNA. Due to our dual listing in the capital mar- kets, SOX Coordination and Compliance Unit has been established within the ABAC Office as of January 2019 in order to carry out our obligations to comply with capital markets regulations and corporate governance practices that we are subject to under an autonomous structure that has direct access to the Board of Directors. The SOX Coordination and Compliance Unit has been continu- ing its operations under the name of SOX Compliance and Governance Unit since January 1, 2021. The SOX Compliance and Governance Unit, along with moni- toring the regulations of SEC and Public Company Accounting Oversight Board, supports corporate transparency and contributes to reliable information disclo- sure to the public by incorporating good practices within our Company. Training and awareness activities are carried out by the SOX Compliance and Governance Department under the title of SOX 404 practices that consti- tute an integral part of our employees’ way of doing business. Regarding SOX 404-connected developments, a total of 1,5 hours training were given to 61 em- ployees in 2024. Economic and Trade Sanctions and Export Controls Turkcell Sanctions Compliance Program Procedure, which is constantly mon- itored and revised under the coordi- nation of the Compliance Directorate, was adopted by the Board of Directors in 2020. The Sanctions Compliance Pro- gram Procedure plays an important role by following our company’s compliance program, which aims to observe eco- nomic and trade sanctions and export control rules, both at the shareholders’ level and in our ecosystem for taking necessary actions. Within the scope of the Sanctions Com- pliance Program Procedure, a periodical review covering all business activities of the Turkcell group is carried out by the Compliance Directorate using the data received from the business owners. Business owners in Turkcell are obliged to screen their counterparts/business partners before initiating any business relationship using the consolidated sanctions list databases of the United Nations, European Union, USA and UK. If required, additional due diligences are performed by the Compliance Director- ate, and additional measures are taken. Turkcell is also aware of the intensify- ing sanctions especially on Russia and Belarus and comprehensive sanctions against other jurisdictions imposed par- ticularly by the European Union, Unit- ed Kingdom, United States, and closely monitors the impacts of these sanctions on group companies with the coordina- tion of group companies’ compliance units. Updates and risk assessments regarding the sanctions imposed on Russia and Belarus are also reported to Turkcell's Early Detection of Risk Com- mittee and, if necessary, to the Board of Directors. Economic and trade sanctions related screening is also supplemented with an outsourced service provider. As part of the 2024 training program, the Compliance Directorate continuously monitored legislation and developments regarding economic and trade sanc- tions and export controls, and provided trainings and awareness activities in this regard. In 2024, economic and trade sanctions trainings were provided to employees and managers of the Com- pany/Group companies, suppliers and business partners in a total of 15 one-hour sessions to more than 6100 participants. In 2024, coordination and awareness ac- tivities on economic and trade sanctions and export controls were carried out with the compliance contacts within our Group companies located both in Turki- ye and abroad. Similar to the Anti-Bribery and Corruption compliance program, an interactive training structure was imple- mented to ensure participants took an active role in the training sessions. Competition Management Creating and protecting fair and strong competition conditions, which is one of the cornerstones of a healthy market structure, is an indispensable part of our operations. In collaboration with our Group companies, we are committed to preserving an effective competitive environment across all the markets in which we operate. In accordance with the fundamental objectives of competition law, we me- ticulously carry out our activities in full compliance with all legal regulations. In this regard, we meticulously monitor critical processes such as preventing agreements and practices that hinder, distort or restrict competition, and pre- venting market dominant undertakings from abusing their dominance. Further- more, we are committed to the effec- tive implementation of regulations and audits aimed at controlling mergers and acquisitions and strengthening compe- tition in the markets. Our competition compliance process is supported by comprehensive guide- lines, detailed information and training programs designed to enhance our em- ployees' knowledge and awareness. In accordance with our general principles, we do not engage in any agreements or communications with our competitors that violate competition laws, such as price fixing, customer or territory sharing. We also strictly adhere to the principles of not sharing any information that could be sensitive to competition, not prevent- ing new market entrants and not interfer- ing with the resale prices of third parties. Our company is committed to conduct- ing its business operations in accordance with the principles set out in the Turkish Commercial Code, the Law on the Pro- tection of Competition, the Electronic Communications Law, and the related secondary legislation. Accordingly, criti- cal cases and processes related to com- petition law are reported in accordance with CMB and IFRS standards and shared with regulatory authorities such as BIST and SEC. During the reporting period, an investigation was initiated to determine whether our Company violated Article 4 of the Law No. 4054 on the Protection of Competition by concluding gentlemen's agreements in the labor market with the decision of the Competition Board. The investigation was completed and the Competition Authority decided to impose a fine on our Company for violating com- petition regulations within the scope of the Law on the Protection of Competition. We are committed to the principles of fair competition and are dedicated to achieving success while contributing to the growth and development of our in- dustry. We remain committed to uphold- ing competition law, our ethical values and our long-term sustainability goals. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 65 64 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Our Enterprise Risk Management System is integral to the continuity of our operations and our determination to achieve our strategic goals. Our risk management process is comprehensive, covering key risk indicators, technological innovations and opportunities in our sector, global trends and developments in the industry. This enables us to not only mitigate potential threats but also capitalise on emerging opportunities by adapting swiftly to evolving market conditions. Effective Risk and Crisis Management Liquidity, cash generation and col- lection risks: We establish a robust structure by diversifying our financ- ing sources to mitigate the risk of dis- ruption to cash inflows and outflows caused by market fluctuations and imbalances in cash flows. In this con- text, we focus on fixed or floating rate loans, primarily Corporate Bonds, and meticulously monitor our future cash projections in line with our liquidity management principles. We prioritise the risks of decline in collection rates that may arise from economic fluc- tuations and support our collection processes with a strong infrastruc- ture. Our processes are continuously developed with innovative solutions, and we offer our customers early payment incentives, the expansion of automatic payment instructions and personalised payment options. In ad- dition, we proactively manage our credit control processes and intervene quickly and effectively in situations that carry the risk of delay. Strategic Risks Risks of adapting to investment and technological developments: Failure to invest adequately in innovation, new business opportunities in the sector and other strategic areas, or failure to get the expected return on investments made, may not only lead to missed opportunities, but also to risks that may affect the market position, rep- utation and image of our company in the long term. With this awareness, we constantly monitor sectoral, local and global trends, closely follow the com- petitive dynamics in new business lines and take necessary actions rapidly. Our strategic partnerships with glob- al leaders in the field, such as GSMA, and our dedicated R&D investments, form the foundation for our adoption of cutting-edge technologies. We pro- actively follow technological develop- ments through national and interna- tional projects and continue to invest in shaping the future. Legal Risks Compliance risks: Failure to comply with the regulations we are subject to, and the risk of facing administrative sanctions for this reason, has always been one of our priority areas of attention. Our Legal and Regulatory Function aims to manage the possibility of non-compliance with a proactive approach by closely mon- itoring the regulations. In this context, our business units are regularly informed about legislative changes and new regulations, and necessary compliance studies are meticulously carried out with the participation of our senior manage- ment on platforms such as the Personal Data Steering Committee, Compliance Committee, Sub-Compliance Committee and Information Systems Compliance Committee. In addition, we implement comprehensive measures to prevent any violations and eliminate administrative sanctions through internal audits and digitalised automated control systems. Litigation and litigation risks: Disputes and lawsuits arising within the scope of our operations, contracts and projects are managed with a focus on protect- ing Turkcell's interests. In this regard, we aim to finalise all legal proceedings in the best interests of our company, with the efficient efforts of our legal team behind this objective. Business Continuity Risks We take necessary measures against the risk of unexpected situations, such as natural disasters and terrorist inci- dents, which could threaten the conti- nuity of our operational processes. We develop comprehensive crisis, business and service continuity plans for poten- tial crisis situations in our company and conduct regular reviews of these plans to enhance their effectiveness. These plans are tested through annual drills, and areas for improvement are iden- tified. To mitigate the impact of natural risks such as earthquakes and climate change on our business continuity, we conduct comprehensive assessments in all functions of our company using sce- nario-based approaches, coordinated by our Business Continuity Management team. These assessments provide the foundation for developing dynamic and proactive solutions, ensuring that a risk- based management approach is firmly embedded across the organization. Corporate Risk Management In accordance with Article 378 of the Turkish Commercial Code and the CMB Corporate Governance Communiqué, the Early Detection of Risk Committee, which was established under the Board of Directors at the end of the 2012 fis- cal year, reports to the Board of Direc- tors every two months. The purpose of these reports is to facilitate the early detection of risks that may jeopardise the existence, development and con- tinuity of the Company, the implemen- tation of necessary measures and the management of the risks identified. The prepared reports are also shared with the independent audit company. The Corporate Risk Management team is responsible for assessing risks within the framework of the Enterprise Risk Man- agement methodology, coordinating risk prevention activities at Turkcell and Group companies, and reporting to the Early Detection of Risk Committee. Turkcell Enterprise Risk Management, which has been designed in accor- dance with the COSO Enterprise Risk Management framework and ISO 31000 standards, is carried out with an approach that integrates the risk man- agement process with key manage- ment processes. Information Security Risks Data security risk: We take a compre- hensive approach to all types of data security risks, whether from within or outside the company. We anticipate situations such as theft, loss, leakage, incorrect recording, alteration, dele- tion or inaccessibility of information stored in physical or electronic media due to access by authorised or un- authorised parties, and we resolutely implement all necessary technical and administrative measures against these risks. These measures are integral to our mission of safeguarding the infor- mation security of our users and busi- ness partners at the highest level. Cyber Security Risk: We are commit- ted to safeguarding our information and systems by proactively antici- pating risks against malicious use of our internal and external computer and network systems. We implement comprehensive security controls and tests against threats to damage or destroy systems, and manage poten- tial vulnerabilities with a proactive approach. Our Security Operations Center operates 24/7, continuously monitoring current threats and ensure the security of our business process- es with effective defense strategies against cyber-attacks. Financial Risks Macroeconomic risks: We are com- mitted to maintaining a robust stance against any potential deterioration of expectations and situations caused by economic and political uncertainties. Our strategy of diversifying our funding sources allows us to take a proactive approach against the risk of difficulties in accessing certain financial resources due to regional sanctions. In this respect, we continue to strengthen our financial resilience by acting on the principle of activating different sources and keep- ing the necessary agreements ready. Credit limit, inflation and exchange rate risk: Fluctuations in interest rates, infla- tion and foreign exchange rates may increase our costs and reduce our revenues. Therefore, we take strategic liquidity actions to manage funding access risks and high borrowing costs, and constantly monitor market condi- tions through strong cash generation and limit increases. In order to minimize the impact on our balance sheets and medium-long term plans in highly in- flationary environments, we introduce and effectively implement carefully selected financial instruments. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 67 66 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Operational Risks Environmental, sustainability and eco- logical risks: By carefully evaluating sustainability risks and opportunities, particularly those related to climate and environmental risks, we work to re- duce the factors that could prevent us from achieving the goals set out in our integrated value model. These studies also seek to maximise the opportunities that will support the company's strate- gies to achieve success. In this context, we proactively identify and assess en- vironmental risks, analyze the impact of extreme natural events on our opera- tional processes, and implement effec- tive countermeasures. We secure our long-term sustainability goals through effective resource management, while also reducing our carbon footprint with our renewable energy investments. The effects of global climate change pose a significant threat to both human health and biodiversity. As Türkiye's first ISO 50001 certified mobile operator, we actively monitor our energy consump- tion and make a significant environ- mental contribution through our invest- ments in renewable energy. We have our greenhouse gas emissions verified by independent organizations, and we inform our stakeholders about climate risk management, implementation and performance results through TCFD and CDP Climate Change reporting. As part of these efforts, we re-evaluated the sustainability risks and opportuni- ties, particularly climate change, which were included in our risk inventory. Risks associated with the manage- ment of third party relationships: In order to mitigate the risks associated with third parties not fulfilling their ob- ligations or violating company proce- dures, we conduct a thorough evalua- tion of contracts with business partners within the legal framework. This ap- proach is intended to mitigate the risk of any disruption to our operations. We closely monitor supply chain dis- ruption risks and regularly review our order planning for supply shortages and lead times. We ensure the security of our business processes through the actions we take. Market Risks Macroeconomic and political uncer- tainties: Due to economic risks and po- litical uncertainties, there is a possibility that the deterioration of expectations or the current situation may result in unrealized revenues and deviations from forecasts. To mitigate these risks, we regularly monitor global trends, economic indicators, revenue and sub- scriber data, with a particular focus on pricing and competitive strategy. Competition risks: Rapid changes in the market, aggressive moves by com- petitors and unexpected project/rev- enue losses, as well as technological or sectoral developments, all involve the risk of being disadvantaged. In this context, we closely monitor market and competitor activities and endeavour to respond to such competitor activities with timely actions. Customer risks: Changes in the demo- graphics of the customer base (age, education, income, etc.) may result in risks such as misinterpreting customer needs and failing to meet expectations. To mitigate these risks, we proactively enhance customer satisfaction through meticulous analysis of market research and customer feedback. We also con- duct comprehensive risk assessments with our corporate customers in trans- actions such as hardware and device sales, pre-sales and new product, service or campaign processes. This approach enables us to mitigate col- lection risks, maintain our financial prof- itability and ensure business continuity. At the same time, we strengthen our co- operation with our business partners on a sustainable basis. Business Continuity Management Turkcell Group Business Continuity Management System is structured in accordance with the international ISO 22301 standard and the requirements of the Social Security Business Continuity Management System. Turkcell, Turk- cell Superonline, Turkcell Global Bilgi, Global Tower and our DSS companies BiP İletişim and Turktell Bilişim have been brought together under this sys- tem to ensure uninterrupted provision of speech, messaging, internet, server, data center, call center, tower installa- tion, acceptance and operation sup- port services on our mobile and fixed network. Following independent au- dits, our continuity management has been certified as fully compliant with the ISO 22301:2019 version and is in line with customer expectations, corporate policies and legal requirements. We also carry out regular drills to test the effectiveness of our business continuity plans in emergencies and disasters. Our extensive infrastructure, mobile switchboards, emergency center and experienced teams enable us to offer effective solutions against risks such as operational interruptions and natu- ral disasters. Our expertise in customer service and our advanced fiber optic infrastructure are instrumental in main- taining operational continuity during disaster situations. We conduct regu- lar drills and awareness-raising activ- ities as part of our Crisis Management Plan, continuously increasing our pre- paredness against natural disasters, cyber-attacks and other crises, and ensuring the continuity of our service. Turkcell Disaster and Crisis Management Program The Turkcell Group Business Continuity Unit is responsible for ensuring the con- tinuity of Turkcell's business operations in all circumstances, and for enhancing the resilience of all our functions against potential disasters and crises. The Turk- cell Disaster and Crisis Management Program is designed to respond to risks and to take a proactive approach by anticipating future possibilities. The pro- gram involves a range of activities to enhance preparedness for potential di- sasters, coordinate effective responses during crises, and swiftly restore normal operations through recovery efforts. In order to be prepared for every sce- nario, from natural disasters to man- made crises, we regularly carry out comprehensive drills in our work areas and sites. In addition to risk reduction, these exercises aim to enhance the re- sponse capability of our teams and op- timise our processes. As Turkcell, we are committed to strengthening the trust of our stakeholders and ensuring our sus- tainability under all circumstances by adopting a pioneering and exemplary stance in crisis management. Internal Control and Continuous Improvement Turkcell Group Internal Control and Continuous Improvement Director- ate carries out level 2 control activities and business process improvement activities by identifying internal risks throughout Turkcell İletişim Hizmetleri A.Ş. and Turkcell Group Companies within the framework of the authorisa- tion granted by the General Manager and applicable legislation and profes- sional standards. The Internal Control Unit also determines the objectives, pri- orities and risks of the functions, plans risk-based internal control activities and carries out preventive and detec- tive control activities in line with the control frequencies determined during the period, through the early warning system, automation tools or manually. Our Continuous Improvement Center allows us to design company business processes to ensure lean, agile, effi- cient, sustainable and minimum risk principles. We conduct thorough con- struction and process development studies to ensure continuous transfor- mation by leveraging the full potential of new technologies. As part of our internal control activities, we evaluate the effectiveness of the controls implemented at the first level and ensure that appropriate action is taken by shar- ing the defects we identify as a result of the controls with the relevant teams. Please refer to the 'Natural Capital' section for more detailed information on climate risk management. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 69 68 | TURKCELL 2024 INTEGRATED ANNUAL REPORT In instances where the deficiency iden- tified by the Internal Control Unit is at- tributed to a process issue our Contin- uous Improvement Center undertakes a comprehensive redesign of the rel- evant process, encompassing all as- pects from start to finish. The Internal Control Unit is responsible for conducting internal audits related to the obligations of the ISO certifi- cates we possess, and for overseeing the results of both internal and external audits. ISO 27001 and ISO 27017 certifi- cates are an international framework that helps companies protect their fi- nancial data, intellectual property and sensitive customer information. Turkcell, Turkcell Superonline, Turktell, BiP, Turkcell Technology, Kule A.Ş. and Turkcell Ödeme Hizmetleri A.Ş. have adopted the ISO 27001 standard for information security management pro- cesses, while Turkcell and Turkcell Su- peronline have also adopted the ISO 27017 standard for ensuring information technology security in cloud services. These certifications are essential tools in safeguarding the information with- in our companies and mitigating risks through the implementation of a robust and systematic approach to informa- tion management. Thanks to ISO 27001 and ISO 27017 certificates, we identify, manage and mitigate our risks for the security of our information in accor- dance with the standards. In terms of continuous improvement, we utilize ISO 9001 Quality Management System au- dits and evaluate the audit outputs as input to the continuous improvement cycle. The Integrated Quality Man- agement System approach integrates continuous improvement awareness, culture and training activities with the Document Management System, gov- ernance development activities and an in-house process improvement sug- gestion platform. We are responsible for end-to-end process design and modelling of all Turkcell and Turkcell Group Company processes. We realize process mon- itoring and management structure by determining KPI and metric based process performance indicators. We facilitate the continuity of corporate processes and document architecture by creating, renewing and maintaining them. We carry out studies to deter- mine common process design princi- ples and ensure their integration into the process development cycle. The Internal Control Unit reports its in- ternal control activities, findings, cur- rent and future action plans to the Se- nior Management team at meetings held periodically throughout the year. We carry out our Internal Control and Continuous Improvemet activities in line with process flows, risk and inter- nal control inventory. In the area of de- tection and preventive Internal Control activities, we provide reasonable as- surance through the use of automated controls that leverage advanced data analytics and robotic automation. Our Continuous Improvement pro- cesses incorporate a range of cut- ting-edge technologies. In this context, we carry out process mining studies with a data-driven process manage- ment approach and efforts to expand robotic process automation (RPA) with- in the organization. In 2024, 295 em- ployees completed 16 hours of training in the RPA Champions Program, which was organized across Turkcell with the aim of increasing awareness and com- petence of RPA. We have implemented numerous automation ideas that have been evaluated in the competitions we have organized. Internal Audit The selection process for our indepen- dent audit firm begins with the Audit Committee recommending a firm that meets the independence and compe- tence criteria to the Board of Directors. Following this rigorous process, Güney Bağımsız Denetim ve SMMM A.Ş. was appointed as the independent auditor for the audit of our financial accounts and transactions for 2024 in accor- dance with the Turkish Commercial Code and Capital Markets legislation at our Ordinary General Assembly meeting held on 02.05.2024. Our internal audit activities are carried out by the Internal Audit Directorate, which reports directly to the Board of Di- rectors. Our audits are conducted in ac- cordance with International Standards for Professional Practice in Internal Au- diting, and our findings are reported to the Audit Committee. Operational audits are conducted in accordance with our annual risk-based plans, while compliance audits adhere to Article 404 of the Sarbanes-Oxley Act (SOX), given our status as a company listed on the New York Stock Exchange. Our operational audits are designed to evaluate the risk management, control and governance processes within our company, with the aim of contributing to the achievement of our objectives. This is achieved by provid- ing assurance to the Board of Direc- tors and Audit Committee. As part of our SOX 404 compliance audits, we conduct a detailed examination of the effectiveness of the internal con- trol structure in Turkcell and our Group companies. This is in accordance with the annual plan, and is intended to ensure the reliability of our financial statements. The Audit Committee, the Chief Executive Officer and the Ex- ecutive Vice President of Finance are regularly informed of any deficiencies and actions. In addition, our Internal Audit Depart- ment also provides consultancy ser- vices in line with current developments and management requests. Our risk- based audit approach ensures that potential risks are constantly reviewed and proactive solutions are developed for these risks. Risk assessments result- ing from these analysis form the basis of our audit activities. Income Assurance Management We implement a range of measures to strengthen our financial structure and ensure the security of our operations at the highest level. These include the proactive identification of errors, losses and leaks that may be encountered in service processes. Our revenue assur- ance team conducts detailed analysis of critical processes, including billing, tariffs, customer transactions and sys- tem integrations, with a focus on iden- tifying and proactively mitigating po- tential risks. We implement effective reconciliation processes based on transparency and auditability, meticulously controlling data consistency between systems. We also use reconciliation process- es to create harmonious cooperation with our business partners and to de- tect revenue leakages. This contributes to maintaining business continuity and also preventing potential losses. Legal Compliance We consider it a fundamental priority to ensure full compliance with legal reg- ulations in our operations. We close- ly monitor developing and changing regulations and manage the possibility of non-compliance with a proactive approach. To this end, we regularly share information on new laws and legislative amendments with the rel- evant teams, meticulously carry out compliance projects and endeavour to fully respond to the demands of regu- latory authorities. In addition to these processes, which are closely monitored by the Compliance Committee and the Sub-Compliance Committee, we mini- mize the risks of violations by commis- sioning internal audits and automated control systems with digitalised tools. Information on preliminary investiga- tions, audits or investigations conduct- ed by the Information and Communi- cation Technologies Authority and the Ministry of Trade within the scope of compliance with the legislation regu- lating the conditions for the provision of products and services is transparent- ly disclosed in our financial reports. In 2024, a total of TRY 0.9 million was paid in fines due to non-compliance with the legislation in this area. During the reporting period, a total of TRY 233.5 million was spent on legal proceedings and litigation expenses. Of this amount, TRY 59.3 million is made up of fines paid. During the reporting period, the company did not incur any fines or sanctions due to non-compli- ance with environmental legislation. We aim to prevent these risks from oc- curring in the future by expanding the scope of our compliance efforts with the learning we have obtained as a re- sult of all these processes. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 71 70 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Our Core Competencies Since its establishment in 1994, Turkcell has consistently generated significant added value for its stakeholders. Turkcell's achievements can be attributed to its strong corporate competencies, which have been developed over the past 30 years. — The operator that meets customers' ever- increasing need for quality service and communication — Superior digital customer experience with growing digital services — Uninterrupted service thanks to Turkcell's strong infrastructure and wide range of IT solution services — Capacity to provide quick solutions to customer demands — End-to-end financial services offered to customers — Activities carried out within the scope of the importance given to customer data security Strong Bond with Customers — Maintaining pioneering and distinctive network quality in the sector, reinforcing its position as the leading operator by being ready to offer services for next generation technologies such as 5.5G and beyond — Increasing efficiency through technology independent spectrum utilization — Providing the latest and innovative technologies in fixed and mobile technologies in the individual, corporate and home segments — Cyber security products and services that require digital operator competence — Contribution to digital transformation through joint infrastructure works — Reliable network structure ready for emergencies — In-country protection of local data with an extensive network of data centers Strong Infrastructure — The importance of agile and flexible teams that increase with the need to 'master difficult tasks quickly' with digitalisation — Ensuring efficiency through transformation of company culture with flexibility and agility approach Agile & Flexible Team — Inclusive and egalitarian corporate culture — Unique people and talent orientated employee experience Strategic workforce management — Increased focus and need for analytical capability with increasing digitalisation — Providing appropriate solution proposals in line with better customer recognition and early detection of their needs through big data and analytical modelling — Capacity to develop local alternatives in digital services Advanced Analytical Capabilities & Technology TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 72 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 73 Over the past few years, we have stra- tegically invested in developing these segments through leveraging our strong technical capabilities and the expertise accumulated from our core business. We also prioritise the adopting new technol- ogies that generate value. We prioritise efficiency in our operations, focusing on value maximisation, and provide re- sources to our income-generating areas more effectively. We prioritise providing people-oriented employee and custom- er experience in every area we focus on and conducting our activities within the framework of sustainability principles. In the coming period, we will prioritise in- vestments that will ensure the continuity of our leadership and create the infra- structure of the future. In addition, we will continue to create value by pioneering the technologies of the future. As we have done over the past 30 years, we maintain our leadership focus in telecoms, our core business. We have a strong infrastructure ready for the future and superior service management. We offer our customers a reliable experi- ence, ensuring fast and uninterrupted connection to essential services. Beyond telecoms, we continue to include digital services and solutions in our port- folio in line with developing technologies and customer demands. We are also committed to increasing access to infor- mation technologies for disadvantaged groups in society, as well as for young people and women, while leveraging technology to provide equal opportuni- ties to more and more users. Within the scope of data-oriented busi- ness areas, we develop awareness, create opportunities and solutions with data center, cloud solutions, big data and artificial intelligence projects. As a reliable business partner, we continue to lead the digital transformation in Türkiye. Our financial services portfolio, which includes the successful implementation of techfin business models, allows us to develop various digital payment op- tions for our customers. We also offer financing options that facilitate access to products and services, and insur- ance solutions that provide protection against risks. In all our strategic focus areas, we con- tinue to rapidly develop the value we produce by evaluating global trends and the development potentials in the countries where we operate with our technology and innovation competen- cies. Every year, we evaluate current trends collectively through practices involving all our employees and direct our efforts to the opportunity areas we have identified. In this context, we ad- here to a business operations frame- work that encompasses short, medium and long-term goals8. We have contin- ued to implement our 3-year plan, initi- ated in 2023, with new initiatives that we have introduced in 2024. We aim that the growth we have built on our strong infrastructure, ready for the future, will come from our focus and deepening in areas such as IPTV, data center, cloud, techfin solutions and IoT. Another area of focus will be on main- taining our leadership position and achieving our growth targets. We aim to maximise company value by being more efficiency-oriented while provid- ing digital solutions to our customers' needs. We are committed to pioneering superior technologies that generate value, and we are continuing our efforts to deepen and spread technology by supporting R&D activities in areas such as artificial intelligence, cyber securi- ty, satellite and quantum technologies. Sustainability is a strategic priority for us, and we are committed to integrat- ing environmental and societal consid- erations into our business operations. From a people-oriented perspective, we aim to build a sustainable organiza- tion that creates value by providing an easy, consistent and personalised dig- ital experience to our customers while providing a unique employee experi- ence to our talents, and to carry our em- ployer brand to the top. In summary, we are committed to providing exceptional digital services for a better future, lever- aging the transformative and inclusive power of technology. Our Strategic Focuses, Initiatives and Opportunities Leadership in Telecom In 2024, we saw significant growth of 10.4% in ARPU9 and 303 thousand net sub- scriber numbers in the mobile segment, driven by an increase in data usage, the introduction of value-oriented solutions for our customers, and price updates aligned with economic conditions. Ac- cording to the third quarter 2024 market data published by the Information and Communication Technologies Authority (ICTA), we have retained our position as market leader in the mobile sector, with a subscriber share of 41.0%. While we re- corded a balanced increase in our reve- nues with our superior infrastructure and unique customer experience, we continue to increase loyalty and satisfaction by of- fering our customers campaigns tailored to their needs in a digital world. Our customer-focused, AI-supported analytical models enable us to instantly identify individual needs and offer per- sonalised services. These systems have enabled us to maintain a healthy mobile churn rate, while concurrently boosting our revenue and enhancing customer satisfaction. In this way, while positively increasing our revenue metrics and cus- tomer satisfaction scores, we continue to keep our mobile churn rate at 2%, which we see as the optimum level for us in 2024. With our strategic focus on digitalisation, we manage our customers' channel ex- periences in an integrated manner and continue to continuously improve our pro- cesses. By leveraging machine learning-based models to analyze customer behav- ior, we are able to create more suitable offers in both the mobile and fixed seg- ments, thereby increasing revenue. In the area of fixed services, such as fiber and Superbox, we focus on increasing rev- enue while minimising subscriber churn thanks to our churn prevention and up- grade models. We are committed to advancing our digitalisation vision by developing analytical marketing strat- egies that utilize the most suitable offer and churn prevention models to appeal −In 2024, we achieved 10.4% ARPU (excluding M2M) growth in the mo- bile segment and added 303 thousand new subscribers. This success was due to our strategic alignment with customer expectations, on- going process improvement projects and stable pricing arrange- ments. Building on this success, we have maintained our positive growth trajectory in terms of both subscribers and ARPU. −Our corporate strategy is to accelerate the digital transformation of our customers. We offer innovative campaigns and solutions that are tailored to the needs of tradesmen and SMEs. The packages we de- sign contribute to increasing the revenue potential of our customers while reducing their operational costs. This strategic approach has been proven to increase customer satisfaction and loyalty, while also further strengthening our leading position in the sector. −By enhancing our analytical capabilities, we are able to offer our customers the most suitable service, thus increasing our efficiency. Through the implementation of IVR process and content enhance- ments, the integration of chatbot applications, and the diversification of payment options, we have optimised our business processes and enhanced customer satisfaction. In 2024, despite price updates, we successfully maintained our mobile subscriber churn rate at 2% and our fixed subscriber churn rate at 1.5%. In addition to our primary business of providing telecommunication services, we specialize in digital services and solutions, data-oriented business areas and financial services. Initiatives and Opportunities 303 thousand net mobile subscriber additions 10.4% ARPU Growth (Excluding M2M) 8 Turkcell's short, medium and long term target periods are 0-1 year for the short term, 1-3 years for the medium term, and 3 and above years for the long term. It should be noted that there is no guarantee that the forward-look- ing statements contained in this report will be realized. For a detailed discus- sion of various factors that could affect the outcome of such forward-looking statements, please refer to the annual report on Form 20-F for 2023, which has been filed with the U.S. Securities and Exchange Commission (SEC), and the risk factors section therein. 9 Excluding M2M TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 75 74 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Digital Services In recent years, there has been a notable shift in consumer behavior, with an increasing tendency to utilize digital services to meet a wide range of needs, a trend that has been further accelerated by the pandemic. At Turkcell, we are committed to meet- ing our users' expectations by offering digital solutions in various areas, in- cluding instant communication and on- line meeting platforms, email, personal cloud storage, digital advertising, digi- tal TV and digital music platforms, and gaming technologies. In the previous periods, we have trans- formed our digital services, including BiP, fizy, TV+, GAME+ and lifebox, into separate companies, each focusing on their individual performance as dis- tinct value and profit centers, making them globally competitive structures. Our digital services also have functions such as contributing positively to the ARPU levels of our telecommunication customers and increasing their loyalty to Turkcell. By positioning our digital services and solutions as independent brands under the Turkcell umbrella, we also strengthen their value as intellectual property and assets. These services and solutions support our strategy to transform Turkcell from a telecom op- erator into a digital integrated ecosys- tem brand. Digital Business Services (DBS) Thanks to our fiber infrastructure and 7 internationally certified data centers, we possess 36 thousand m² of white space capacity and 46.7 MW of active installed capacity. With Turkcell Cloud services, we handle the entire informa- tion technology infrastructure of cor- porations in our data centers, provid- ing a more flexible infrastructure while reducing costs. The cloud service we provide from fully redundant infrastruc- tures in our 6 different data centers has the ISO 27017 Cloud Information Security Certificate, which certifies our informa- tion security, and we are the first service provider in Türkiye to hold this certifi- cate. In order to provide services to our public institutions in accordance with the Presidential Circular on Information and Communication Security Measures, which came into force regarding the se- curity of public data and its transfer to digital environments, and the guidance published accordingly, we have made our Public Cloud services available to in- stitutions. In addition, we have received accreditation from the CBRT for our cre- ation of isolated cloud environments in accordance with the community cloud guide published by the CBRT. This allows financial institutions and credit institu- tions regulated and supervised by an authorised authority to receive Finance Cloud services from an environment that complies with their regulations. In terms of multi-cloud, we are able to fulfill the large-scale cloud (hyperscaling) needs of our customers through strategic part- nerships with global cloud providers, of- fering end-to-end cloud solutions. We are working tirelessly to expand the services we offer within the scope of our Cyber Security product portfolio and to increase our manufacturer diversity. In this context, we are continuing to pro- ductise solutions that complement our box and virtual firewall services. These Initiatives and Opportunities −We are increasing our dig- ital service revenues and the value we offer with our wide range of digital ser- vices for both individual and corporate needs, price regulations, advertising, subscription and business partnerships. −In light of the ongoing digital transformation, businesses are increasingly recognizing the significance of mobile applications, communica- tion infrastructures, and software used in conjunc- tion with the cyber security of these systems. The pan- demic has accelerated the adoption of remote and flexible working practices, which have now become permanent. As a result, the importance of mobile appli- cations, communication in- frastructures, software, and the cyber security of these systems has increased for companies. In this context, we offer a range of digital services that provide robust security standards, includ- ing BiP, Yaani Mail, Lifebox, Digital Security Service and Mobile Signature. −Our GAME+ next-genera- tion gaming platform offers users the opportunity to ex- perience the highest qual- ity games from anywhere, without the need for large- scale hardware investments. offer threat analysis, reporting, cen- tral management and automation ca- pabilities that can appeal to different customer segments. Furthermore, we are working to enhance our Endpoint Security service, added to our product portfolio in 2023, by integrating machine learning-powered server security (Deep Security) and email security (Cloud App Security). By continually enhancing our solutions, we aim to reinforce our posi- tion as a comprehensive cyber securi- ty service provider for our institutions, ensuring the early detection of cyber threats and prompt response. Our IoT solutions enable us to offer our corporate customers device, machine and process management services via cloud systems or in-house servers. One of our IoT projects, energy efficiency sce- narios, enables companies to instantly measure their energy consumption. The data collected from the field through the solutions we offer is converted into actionable information, facilitating in- formed decision-making for our users. Simultaneously, our energy solutions can manufacturing, retail, finance, logistics, energy, SMEs, central and local govern- ments. With a 360-degree perspective, we analyze the sectors and customer needs, determine the current situation of our customers and create industry specif- ic and customized solution sets covering their needs. We are a leader in the healthcare sector, specialising in technology solutions for city hospitals. In eight city hospitals, we are responsible for the technology infra- structure and management, supporting digital transformation in healthcare. We are entrusted with the development and management of the technological infra- structure for the Ministry of Health's stra- tegic projects. We are committed to strengthening our business partnerships within the scope of the 'Business Partnership Program'. We manage all business partners using an in- tegrated system through our Partner 360 model. In this context, we diversify and expand the solutions we offer through global collaborations. lead to substantial cost savings for com- panies through enhanced management efficiency. In addition, our Digital Trans- formation Consultancy, Digital Produc- tion Monitoring, Efficiency Tracking and Zero Carbon Emission solutions in the production sector also support our cus- tomers' effective production activities. We provide comprehensive solutions for organizations seeking to transform their digital landscape, utilizing Turkcell's dig- ital business applications to streamline business processes. As part of our Digital Business Services service, we have implemented over 4,700 managed service and system integration projects, utilizing our internal resources, products, processes and technologies. These projects have been tailored to the specific needs of our customers, with the support of our business partner eco- system, which consists of experienced experts in their respective fields. Our consultants specialize in various sectors, enabling us to develop bespoke solu- tions that address the needs of our cus- tomers in key areas such as healthcare, TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 77 76 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Digital Financial Services We are leading the transformation of financial services in the digital age, enhancing our customers' lives through innovative techfin solutions. With our Paycell, Financell and Wiyo brands, we aim to increase financial inclusion by offering fast, secure and accessible solutions. At Paycell, we provide a range of ser- vices including payment solutions, mon- ey transfers, e-wallets and a financial marketplace. Our Super App vision aims to reach a broad user base. We are on our way to becoming Türkiye's largest payment platform by facilitating access to banking services for the young and tech-savvy population. We are rapidly expanding our merchant network with innovative products such as QR payment, Android and Virtual POS. As the leading financing company in the sector, with a track record of facilitating over 18 million loans since its establish- ment, Financell provides financing solu- tions for our customers' technological product needs. We offer digital process- es leveraging the capabilities of mobile technology, conducting instant evalua- tions using a machine learning-based data analysis model and effectively managing credit risk. Turkcell Dijital Sigorta A.Ş. is a company that specializes in providing insurance solutions for businesses. (Wiyo), we are able to offer comprehensive device pro- tection and credit protection insurance solutions to our valued customers. These solutions are specifically designed to meet the needs of those purchasing devices from Turkcell under the "Akıllım Güvende" and "Kredim Güvende" products. −As Türkiye's largest data center operator, we are committed to en- suring data security and privacy protection, with the goal of 'keep- ing Türkiye's data in Türkiye. In this regard, we have established regulatory frameworks for the domestic storage of critical and sensitive data generated within our country, with the objective of safeguarding data security and sovereignty. These frameworks not only ensure the protection of data but also contribute to the growth and development of our business sector and enhance our revenue streams by driving increased demand for our data centers. −Turkcell leverages its extensive experience and competencies in big data, Internet of Things (IoT) and artificial intelligence (AI) across a wide range of areas, including product and service development. In the emerging IoT and AI solution market, the absence of major players in the field creates an opportunity for Turkcell. We are com- mitted to the National Technology Move vision of the Republic of Türkiye, which aims to foster the development of domestic and na- tional technologies, and view this as a significant opportunity for Turkcell in this field. −Digitalisation presents significant opportunities for private sector and public institutions to enhance efficiency and service quality. As Turkcell, we provide customised, reliable and sustainable solutions that are tailored to the needs of the private sector and public insti- tutions in Türkiye. We successfully implement digitalisation process- es thanks to our end-to-end digital transformation services. In col- laboration with our local business partners, we are leading Türkiye’s digital transformation journey across all 81 cities. −Techfin and mobile communication services pro- vide a favorable environment for many people to access financial services thanks to their practicality and ease of access. We have the potential to reach approximately 30 million unbanked users in Türkiye thanks to access to financial services, which is im- portant for individuals in terms of both economic independence and social equality. −The increased use of these systems, coupled with the pandemic, has created a significant opportunity for Turkcell. The continued preference for contact- less and digital payment methods among consum- ers in Türkiye and around the world underscores the ongoing growth potential of this sector. −The rapidly expanding e-commerce sector in the post-pandemic era has also led to an increased demand for practical and beneficial payment solu- tions for all involved parties. The Paycell Virtual POS product provides a comprehensive service from a single platform, eliminating the need for separate agreements with multiple banks for card payments. This offers distinct advantages for both the work- place and Paycell. −The Paycell Shopping Limit product has been prov- en to be successful in the field of digital payments, as well as in facilitating access to finance in a va- riety of areas, including holidays and e-commerce marketplaces. −Investment opportunities are available to users who wish to buy and sell gold, silver and platinum on Paycell. We are pleased to inform you that we also offer our users the opportunity to invest in Borsa Is- tanbul and international stock exchanges through Colendi Menkul via our Paycell application. −Thanks to the expertise we have gained in the tele- communications sector, we have a detailed under- standing of our customer base. By leveraging data from the Credit Bureau (KKB) and telecom industry insights, we are able to provide customised finan- cing solutions to both individual and corporate cli- ents through our techfin subsidiary, Financell. With 15 million customers already assigned limits, we are able to finalise applications within seconds in a smooth and integrated process. This allows us to manage risk on a customer basis and apply per- sonalised pricing. Similarly, on the corporate side, companies that use 'Digital Transformation Financ- ing' loans can access hardware and devices such as software, servers, smartphones, tablets, etc. that they need in their digital transformation journey with special interest rates and flexible payment plans. −Turkcell Dijital Sigorta A.Ş. (Wiyo) is a techfin com- pany that specializes in digital insurance, through which we offer our customers comprehensive de- vice protection insurance products that have a prov- en track record of delivering a high level of customer satisfaction by using Turkcell capital and technology. Initiatives and Opportunities Initiatives and Opportunities TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 79 78 | TURKCELL 2024 INTEGRATED ANNUAL REPORT FINANCIAL CAPITAL The value we offer to our stakeholders is a reflection of our strong financial performance. TURKCELL 2024 INTEGRATED ANNUAL REPORT | 81 80 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TRY 166.7 Billion Revenue TRY 69.8 Billion EBITDA 41.9% EBITDA Margin TRY 23.5 Billion Net Income TRY 7.3 Billion Free Cash Flow 22.8% Operational CAPEX / Sales Ratio 0.14x Consolidated Net Leverage Ratio USD 124 Million Net Short FX Position 223 Meetings with Institutional Investment Funds Strong Financial Performance The value we offer to our stakeholders is a reflection of our strong financial performance. The provision of innova- tive services with our extensive tele- coms infrastructure, the development of local technologies, the execution of social projects that benefit society and the provision of favorable em- ployment conditions for our employ- ees are all made possible by our fi- nancial strength. Sustainable financial success is therefore at the center of our strategies. We are committed to increasing our operational profitability with our reve- nues, while managing our capital effi- ciently and focusing our investments on areas with high demand. Our prudent risk management strategy strengthens our resilience against macroeconomic fluctuations and minimizes the effects of inflation through price regulations. We are committed to fostering growth in key areas such as techfin and Data Centers & Cloud. Our robust balance sheet structure and balanced debt management ensure that we maintain a strong position in the face of risk. We adopt a proactive financing strategy by closely monitor- ing debt and capital markets, utilizing the most appropriate financial instru- ments in various currencies and at dif- ferent maturities and costs. We also strengthen our working capital through effective collection management. In accordance with our transparent financial management approach, we provide information to our stakehold- ers in accordance with the principle of accountability through our integrated reports, regular disclosures and inves- tor meetings. With the aim of increas- ing the market value of our company and diversifying the investor profile, we continue our efforts to increase long- term investor demand. This strategy is instrumental in achieving our mission of sustainable growth and creating value for our stakeholders. You can review the details of our audited annual financial performance in the Consolidated Financial Statements section. Revenues from Operations With the revenue generated from our operations, we provide innovative ser- vices and solutions to our customers, enhance our employees' working con- ditions, support the national economy and society through our investments, distribute dividends to our investors, and ultimately continue creating value for all our stakeholders. From a macroeconomic perspective, 2024 was a year of disinflation and re- silient growth, which enabled central banks to cut interest rates. Conversely, regional conflicts escalated geopo- litical tensions. In Türkiye, despite the adoption of tight monetary and fiscal policies, inflationary pressures persist- ed and growth slowed down in light of these developments. In December 2024 and January 2025, the CBRT cut the policy rate by a total of 500 ba- sis points. Despite the policy rate de- crease, the Turkish Lira maintained its value in real terms due to the down- ward trend in inflation. The CBRT has indicated that 2025 will also be marked by a tight monetary policy. As Turkcell, we maintained our strong operational and financial performance in 2024, thanks to our customer-focused approach and diversified business model. Our consolidated revenues increased by 7.8% on a yearly basis to TRY 166.7 billion in 2024. Our strong operational and financial results were driven by expanding postpaid subscriber base, price adjustments made in line with our inflationary pricing policy, actions taken to upgrade our customers to higher packages, accelerating ARPU growth alongside an increasing postpaid sub- scriber ratio, and the positive contribution of our techfin focus areas to growth. Driven by our strong revenue growth and disciplined cost manage- ment practices, we achieved an EBITDA of TRY 69.8 billion in 2024, up 10.2%. EBITDA margin improved by 0.9 percentage points to 41.9%. This was driven by a decrease in the cost of goods sold, interconnection expenses, energy costs and other costs as a percentage of revenue, despite higher personnel expenses, marketing expenses and funding costs as a percentage of revenue. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 83 82 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Growth in 2024 2024 2023 Turkcell Group Revenue (TRY million) Turkcell Group EBITDA (TRY million) 63,349 Growth in 2024 2024 2023 154,653 166,671 7.8% 69,802 10.2% In 2024, we continued to adjust the prices of our products and services considering current economic condi- tions. In addition to accurate pricing to sustain ARPU growth, we continued our strategy of increasing postpaid customer acquisition and transitioning customers to higher-value packages. Consequently, Mobile ARPU (exclud- ing M2M) demonstrated a notable YoY growth of 10.4%. Meanwhile, retail fiber ARPU also grew by 13.6% in 2024, compared to the previous year. We pursued a balanced growth strate- gy by supporting our revenue growth with subscriber growth. We success- fully grew Turkcell Türkiye subscriber base by 578 thousand net additions annually. Techfin solutions, which tend to generate faster revenue growth compared to our traditional telecom- munications services, also contributed to our consolidated revenue growth. In this context, we successfully minimized inflationary pressures on operational profitability in a year when challenging macroeconomic conditions continued to prevail. Throughout 2024, we maintained our prudent risk management strategy concerning foreign currency-denomi- nated liabilities on our balance sheet. In this context, we managed our cash position by taking into account the composition of cash outflows from operating activities and continued to apply the natural hedging strategy through foreign currency denominat- ed assets on our balance sheet, taking into account the increasing hedging costs. We supported the effective- ness of our portfolio with short-term hedging instruments, which we be- gan using in the last quarter of 2021. To mitigate risk, we have diversified our foreign currency transactions and positions by prioritizing local currency transactions in payments to suppliers this year. We have also taken steps to protect our foreign currency position and foreign currency assets by enter- ing into Turkish Lira payment agree- ments with our largest suppliers. Con- sidering the size of our balance sheet, we define a neutral foreign currency position as USD 200 million short and USD 200 million long and aim to main- tain our position within this range. As of the end of 2024, we held a net short foreign currency position of USD 124 million. Apart from these financial instruments, our balance sheet contains instru- ments that protect us against interest rate risk. As of year-end 2024, our fixed rate debt portfolio after hedging ac- tions constituted approximately 69% of our total debt portfolio. Another key element of our risk man- agement strategy is to closely monitor the effectiveness of our entire deriva- tive instruments portfolio and to guar- antee the principal and interest pay- ments of long-term foreign currency debts. Furthermore, we collaborate with reputable financial institutions that are recognized by internation- al markets when concluding these agreements. As a telecoms company operating in emerging markets, it is vital that we maintain a strong liquidity posi- tion to ensure the continuity of our operations, even amidts financial fluctuations. In this context, liquidity management is a key component of our financial assets. As of the end of 2024, we had TRY 68.9 billion of cash and cash equivalents on our balance sheet, the majority of which are de- nominated in foreign currencies. This amount is sufficient to cover all our debt service approximately until the end of 2027. In 2024, the Turkish Lira demonstrated greater stability compared to previous years, depreciating by 16.4% against the US Dollar and 10.9% against the Euro. Despite a period of high macroeconomic uncertainty, we successfully limited the impact of exchange rate movements on our financials through our prudent financial risk management strategy. Our strong operational performance and effective risk management enabled us to achieve a net income of TRY 23.5 billion in 2024. Turkcell Group Net Income (TRY million) Net Foreign Currency Position (USD Million) Business Model Hedging Practices In 2024, we continued to mitigate the adverse impact of challenging macroeconomic developments on our financials thanks to our business model hedging practices. Key areas of focus included the pric- ing of our products and services in line with current market price and compet- itive dynamics, safeguarding our sig- nificant foreign currency-denominat- ed cash position against our foreign currency-denominated borrowings, maintaining robust liquidity resources, leveraging hedging instruments, and optimazing collection performance management. As of the end of 2024, we have a short foreign exchange position of USD 124 million. In addition to our strong cash posi- tion, our liquidity position is support- ed by our committed credit facility of approximately USD 197 million, as well as our ability to generate free cash flow. Another important is- sue under our liquidity focus is debt management. Despite the depreci- ation of the Turkish Lira against the USD and EUR in 2024, we successfully reduced our Net Debt/EBITDA ra- tio to 0.14x through cash generation and the sale of our subsidiaries op- erating in Ukraine. The measures we took to improve collection efficiency and the sensitiv- ity of our customers to bill payments, given the essential role that telecom services play in their lives, helped us to maintain our strong collection per- formance in 2024. For further details, please refer to our consolidated financial statements and footnotes. Recognizing our responsibility to be a key player in the development of the telecom- munication sector in Türkiye, we continued our investments in 2024 with the goal of bringing our customers together with the latest technologies. In the mobile segment, we accelerated our 5G investments by pri- oritising the fiberization of our base sta- tions. We continued to expand our end- to-end fiber product, reaching 6.0 million homepass by the end of the year. We in- creased our fiber subscriber take-up rate from 41.0% in 2023 to 42.7% by the end of the year. While continuing our investments in data center operations, where we are the leader in Türkiye, we also initiated our solar energy investments to meet our en- ergy needs through our own renewable energy sources. In this context, our oper- ational capital expenditures (excluding licenses) amounted for 22.8% of our total revenues in 2024. Driven by our focus on sustaining strong financial performance and creating value for our investors, we achieved 7.3 billion TL free cash flow in 2024, reflecting the importance we place on free cash flow generation. 0.14x Net Leverage Ratio TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 85 84 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Consolidated Net Leverage Ratio 0.54x 0.14x 2023 2024 22 2023 2023 2024 -124 2024 23,523 2023 18,125 Growth in 2024 29.8% Debt Service (Principal and Interest, USD Million)* Local Currency Foreign Currency *Turkcell Group excluding Financell. Principal and interest payments are included. 1,028 380 301 766 198 2025 2026 2027 2028 2029+ 339 Efficient Capital Allocation We make strategic investments by focus- ing on areas where there is high demand and significant potential for value cre- ation, including digital services, digital business services, techfin solutions, data center, cloud and fiber services. In addi- tion, with our solar energy investments, we aim to increase the amount of electricity we meet from our own renewable energy sources. This strategy will strengthen both our financial and operational perfor- mance and create sustainable value for our stakeholders. In addition to borrowing and cash flow generation, we also take active portfolio management actions to finance our in- vestments. By regularly monitoring market dynamics and investor interest, we execute capital market transactions and special transactions under favorable conditions, thereby unlocking the true value of the as- sets on our balance sheet. In this context, we transferred all our shares in Lifecell LLC, LLC Global Bilgi and LLC Ukrtower oper- ating in Ukraine to DVL Telecom (a group company of NJJ Holding) in September 2024, together with all rights and liabili- ties. The final sale price will be determined within the framework of adjustments to be made including cash and liabilities in the financials to be prepared as of the clos- ing date. We received USD 524.3 million as of the closing date in accordance with the agreement. Financial Diversity In order to utilize our strong equity re- sources even more effectively, we are developing alternative funding meth- ods and continuously strengthening our market relations. To this end, we successfully utilize a wide range of funding methods, including loans from national and international banks, Eu- robond issuances in international mar- kets, and bonds, bills, lease certificates and asset-backed securities issuances in local markets. Furthermore, we are committed to enhancing our resource diversity and contributing to projects that generate environmental and so- cial value through sustainable financ- ing instruments. These include country loans based on agreements with for- eign suppliers and sustainability-linked or green loans. In 2024, the Turkcell Board of Directors resolved to issue a domestic debt in- strument in Turkish Lira with a nominal amount not exceeding TRY 8.0 billion, with a maximum maturity of 2 years. The application to the Capital Markets Board was approved. Within the scope of the issuance limits provided for the years 2023 and 2024, our Company issued a financing bond with a nomi- nal amount of TRY 8.4 billion in 2024. In addition, a total of TRY 553.3 million in financing bonds and TRY 156.5 million in asset-backed securities were is- sued through our subsidiary Financell in 2024. In the same period, sukuk issu- ances totalling TRY 4.1 billion were com- pleted through our subsidiaries Turkcell Superonline and Paycell. We continue to diversify our financing sources by taking advantage of sus- tainability-themed loans. For instance, in May 2019, we had received a sustain- ability loan of EUR 50 million with a ma- turity of 3 years from BNP Paribas. In 2021, we increased the amount of this loan to EUR 70 million and extended its maturity to December 2026 within the scope of the agreement we made with the same bank. The new sustainability targets covered by the agreement include the share of renewable energy in electricity consumption, the share of renewable energy generated within the group and the annual amount of electronic waste collected. In 2023, we had signed a loan agreement with Bank of China for EUR 30 million, in line with our aim to meet our electricity needs through our own renewable energy resources. In line with the Company's targets, we continued our sustainable/green fi- nancing efforts in 2024 uninterrupted- ly, including collaboration with domes- tic and international banks, as well as potential green issuances in the capi- tal markets. In the reporting period, we signed new loan agreements: EUR 50 million with Türkiye Kalkınma ve Yatırım Bankası A.Ş. within the scope of our aim to meet our energy need from our own renewable energy sources, and EUR 65 million with Akbank within the scope of financing our Data Center in- vestments, which prioritize energy ef- ficiency and offer innovative techno- logical solutions. Based on the Board of Directors' resolution taken in 2024, USD 1 billion double-tranche Eurobond issuance, comprising USD 500 million 5-year conventional bonds and USD 500 million 7-year sustainable bonds, was successfully completed in Janu- ary 2025. This was the largest bond is- suance and the first sustainable bond issuance in Turkcell's history. Strong and Transparent Financial Management Our financial management is built on a robust, transparent and accountable foundation. With this understanding, we plan our budget effectively and meticulously analyze how our budget aligns with actual performance. We manage our direct and indirect tax practices in all countries where we operate, in line with the principles of transparency and accountability, and share these in our annual reports, material event disclosures and quarterly and annual results. Internally, we ensure that the flow of information is dynamic and up- to-date, sharing content such as share performance reports, senior manage- ment reports and sector analysis. As part of our corporate citizenship responsibility, we are committed to maintaining a 'zero tolerance' policy for bribery and corruption. To ensure a healthy competitive environment in the markets, we fully comply with reg- ulations and conduct all our financial transactions in accordance with the regulations of the Capital Markets Board (CMB) and the US Securities and Exchange Commission (SEC). Our transparent and ethical financial man- agement approach ensures trust in our company's reputation and our stake- holders. Turkcell New Technologies Venture Capital Investment Fund (VCIF) Established in March 2022 as a result of our collaboration with Re-Pie Portföy Yönetimi A.Ş., Turkcell New Technolo- gies Venture Capital Investment Fund (VCIF) makes investments in technolo- gy-focused start-ups with high growth potential, aimed at providing strategic and financial support. With an upper investment limit of TRY 500 million, this fund is distinctive in its goal to drive transformation across diverse sectors. Turkcell New Technologies VCIF has invested in innovative companies such as EasyCep and Mobilfon, providers of refurbished phones and electron- ic devices; Procenne, which develops products in the field of digital security and encryption technologies; Passion Punch, a local mobile gaming initiative; Kuartis, which develops machine learn- ing and autonomous driving technol- ogies; İkas, an e-commerce solutions provider; Upily, which develops educa- tional technologies; and other venture capital investment funds. In line with our vision to play an influen- tial role in high-tech sectors, our fund's future goals include investing in start- ups operating in areas such as cyber security, financial technologies and ar- tificial intelligence. Through these stra- tegic investments, we aim to add signif- icant and lasting value to our company, fostering synergies with startups while contributing to the ecosystem through the provision of sustainable, long-term growth. You can find the details of our principles and reporting on antibribery and corruption, competition management and related issues in the Strong Corporate Governance section, and data on taxes in the Consolidated Financial Statements section. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 87 86 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Loans Received under Sustainable/Green Financing (million EUR) 50 2021 2022 2023 2024 20 30 115 Transparent Investor Communication - Investor Relations We manage our investor relations ac- tivities in accordance with the Cor- porate Governance Principles. We are committed to the principles of accessibility, rapid response to stake- holders, transparency, consistency and disclosure. We are subject to the relevant legislation and regulatory rules in this regard. We adopt a trans- parent and proactive communication strategy, publishing outputs such as audit reports, press releases and in- vestor presentations on our website in Turkish and English. These documents include our financial and operational performance quarterly throughout the operating period, in order to address all our stakeholders. Since 2020, we have published our annual report as an Integrated Annual Report, with an increasing focus on sustainability. The Turkcell Investor Relations De- partment is committed to the follow- ing principles: accessibility, prompt response for stakeholders, and trans- parent, consistent, and timely commu- nication. The Turkcell Investor Relations team is consist of individuals who pos- sess a comprehensive understanding of the company and sector dynamics, and who can effectively communicate the company's strategy and focus ar- eas. The team's primary objective is to establish long-term relationships while making a positive impact in the sector through its dynamic structure and ef- fective stakeholder communication. Information is provided to all stake- holders in Turkish and English via the Turkcell Investor Relations website and the Public Disclosure Platform. We strive to maximise the benefits for Turkcell and our stakeholders As Turkcell Investor Relations, our pri- mary objective is to increase the com- pany's market capitalization. In this context, our goal is to diversify and deepen Turkcell's investor profile and increase the weight and number of long-term institutional investors. Our institutional investors represent 64% of our 54% free float rate. Of these inves- tors, 42% are located in North America, 41% in Europe (including Türkiye) and 13% in the UK and Ireland. (Source: S&P Global, January 2025) We explain our approach to communicating with our investors and other stakeholders in the Interaction with Stakeholders section and our communication channels in the Stakeholder Communication Channels table. 10Two ADRs represent five shares. 11 Includes 2,200 million shares, each with a nominal value of TRY 1. 12 Source: Matriks Capital market instruments performance Turkcell shares are traded on the Borsa Istanbul (BIST) and the New York Stock Exchange (NYSE). Turkcell's shares began trading simulta- neously on the Borsa Istanbul (BIST) and the New York Stock Exchange (NYSE) on July 11, 2000. The shares are traded on BIST under the ticker symbol "TCELL" and on NYSE under the ticker symbol "TKC" as American Depositary Receipts (ADR).10 Turkcell's paid-in capital has a nomi- nal value of TRY 2.2 billion.11 Turkcell, the only Turkish company listed on Borsa Istanbul and the NYSE, is the 13th most valuable company on BIST with a mar- ket capitalisation of TRY 204.2 billion as of December 31, 2024. Turkcell's Ameri- can Depositary Receipts amounted to 48.7 million at the end of 2024. Turkcell has a free float ratio of 54% and lot based foreign ownership12 was 61% as of December 31, 2024. In the same period, foreign investor share in Borsa Istanbul is 37%. The average dai- ly trading volume of Turkcell shares in 2024 is 25.7 million shares. Turkcell currently has four FX-denom- inated bonds. The first was issued on October 15, 2015, with a nominal value of USD 500 million, a 10-year maturity, and a coupon rate of 5.75%. The sec- ond was issued on April 11, 2018, with a nominal value of USD 500 million, a 10-year maturity, and a coupon rate of 5.80%. The third and fourth bonds, one conventional and one sustainable, were issued on January 24, 2025. The conventional bond has a nominal val- ue of USD 500 million, a 5-year maturity, and a coupon rate of 7.45%, while the sustainable bond has a nominal value of USD 500 million, a 7-year maturity, and a coupon rate of 7.65%. Further- more, our company and group subsid- iaries also issue bonds and sukuk in do- mestic markets when necessary. Share and Bond Buybacks In order to protect our investors from possible negative repercussions of the perceived instability in the market or fluctuations in the world economy on Türkiye, Turkcell Board of Directors had authorised the Company management to repurchase the Company's shares and bonds within the framework of the announcements made by the Capital Markets Board on July 21, 2016 and July 25, 2016. On February 8, 2023, the Board of Directors determined the maximum fund amount as TRY 1.25 billion. In this context, 3.0 million shares were repur- chased in 2024 for TRY 299.7 million, and no bonds were repurchased. Since 2016, a total of 20.9 million shares (equivalent to TRY 513.8 million) were re- purchased and bonds with a net nom- inal amount of USD 37.2 million (equiv- alent to TRY 521.8 million) were bought back. Sustainability Indices and Performance Indicators We substantiate our sustainability ef- forts through our achievements in local and global indices. Since 2014, have been listed on the BIST Sustainability Index (BIST SI), a program administered by Borsa Istanbul that independent- ly evaluates companies' activities. It provides a comprehensive overview of companies' approaches to critical sustainability issues, including climate change, natural resource depletion, water resources management, health, safety, and employment. In addition, as of 2024, we continue to be included in the BIST Sustainability 25 Index, which was first calculated by Borsa Istanbul in 2022. Our ESG score in the London Stock Exchange Group (LSEG) has increased by 14 points compared to 2023. With our new score, we are ranked among the top 10 of 282 telecommunications com- panies worldwide. In November 2024, our company's sus- tainability rating was raised from BBB to A by Morgan Stanley Capital Interna- tional (MSCI). Turkcell is also the first Turkish tele- communications company to be listed in the FTSE4Good Emerging Markets Index, which evaluates the ESG per- formances of FTSE, an independent or- ganization jointly owned by the London Stock Exchange and Financial Times. In 2024, we continue to be listed in the FTSE4Good Index. As the Investor Relations Department, throughout 2024 −We held a total of 223 meetings with institution- al investment funds. −We shared our financial results via teleconference four times during the year. Approximately 262 an- alysts and investors at- tended these meetings each quarter and the records of these meet- ings are available on the website. −During the year, we orga- nized 2 analyst meetings, 1 of which was virtual, and 1 physical meeting with asset management com- panies. We met with a to- tal of 33 institutional funds during these meetings. −We participated in 6 in- vestor conferences, 1 of which was virtual. −We organized 3 road- shows. −One on one and regular meetings were held with 20 analysts evaluating our company. −Throughout the year, more than a thousand requests for information were received by phone and e-mail, and we re- sponded to all of these requests. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 89 88 | TURKCELL 2024 INTEGRATED ANNUAL REPORT BIST SUSTAINABILITY INDEX Share Information and Dividend Yield As Investor Relations, we aim to in- crease Turkcell's market capitalization and achieve fair value. Accordingly, we evaluate the possibilities of creat- ing strategic value and distribution of dividends to our shareholders in accor- dance with our dividend policy within the framework of financial discipline. The Board of Directors of Turkcell com- prehensively evaluates the geopolit- ical risks, macroeconomic and finan- cial conditions in the countries where Turkcell and its subsidiaries operate. It also includes our investment plans and related cash projections, according to our Company's Articles of Association and Dividend Distribution Policy. Ac- cordingly, the board of directors pro- posed to the General Assembly the distribution of 25.0%, 20.4%, and 50.0% of the distributable net income for the years 2021, 2022, and 2023, respective- ly, as dividends. The General Assem- bly decided to distribute dividends at these rates. TCELL (TRY)* 2020 2021 2022 2023 2024 Lowest 10.05 12.17 14.92 29.08 55.95 Highest 14.35 21.46 36.74 57.61 111.32 Closing 13.74 17.00 36.04 54.40 92.80 TKC (USD)* 2020 2021 2022 2023 2024 Lowest 3.66 3.10 2.21 3.39 4.65 Highest 5.24 5.12 4.56 5.26 7.95 Closing 4.60 3.30 4.56 4.66 6.51 *Share prices are adjusted according to dividend distributions. Source: Bloomberg Stock Exchange Symbols Stock Exchange Symbol Share Certificates Borsa İstanbul TCELL Warehouse Certificate NYSE TKC Bonds Euronext Dublin ISIN: XS1298711729 Bonds Euronext Dublin ISIN: XS1803215869 Bonds Euronext Dublin ISIN: XS2981975027 Bonds Euronext Dublin ISIN: XS2981975613 Analyst Recommendations Credit Rating Turkcell receives credit ratings from S&P, Fitch and JCR Eur- asia rating institutions. In addition, our subsidiaries are also evaluated by JCR Eurasia Rating within the scope of the rel- evant regulations. The bonds issued by our Company were also assessed by S&P and Fitch as equal to the Company's rating. Measures to avoid conflicts of interest with organizations from which credit rating services are purchased are includ- ed both in the service agreements and in the code of ethics of the company from which the services are purchased. BUY 95% HOLD 5% SELL 0% 20 brokerage houses actively follow and analyze Turkcell shares. As of the end of 2024, 19 of 20 analysts give a ‘buy’ recommendation. Investor Relations Contact Tel : +90 (212) 313 18 88 Fax : +90 (216) 504 40 58 E-mail : investor.relations@turkcell.com.tr Web : https://www.turkcell.com.tr/en/ aboutus/investor-relations Address : Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi No: 20 B Blok Küçükyalı Ofispark, 34854 - Maltepe / İSTANBUL Long-term credit rating Outlook Rating Date Review Date S&P (FC&LC) BB Stable November 2024 November 2024 Fitch (FC) BB- Stable September 2024 December 2024 Fitch National AAA (tur) Stable March 2021 December 2024 JCR-ER (FC) BB Stable May 2022 May 2024 JCR-ER National AAA (Trk) Stable May 2021 May 2024 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 91 90 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Dividend Yield * In 2020, dividends were distributed to our shareholders at the rate of 25% of distributable net income, the highest rate permitted by the legislation. 2020* 2021 2022 2023 2024 2.3% 7.5% 3.2% 1.9% 3.0% Share performance (Relative, 2024) BIST - 100 Turkcell January 24 March 24 April 24 June 24 August 24 October 24 December 24 Digital Finance Transformation We are transforming our financial processes into a digital operation model. This will create an environment where our financial processes are designed through a central system, and we will achieve operational excellence and efficiency by minimising manual intervention. This will also support internal control points by system controls. Furthermore, we aim to enhance the working environment to the level of best practices with the support of artificial intelligence-powered technology solutions and robotic process designs. Techfin’s shining stars: Paycell, Financell and Wiyo In 2024, we developed our innovative products and services under the Paycell umbrella and offered a wide range of payment and financial solutions to our customers. With our solutions such as Pay- cell Android POS, the first Android POS device whose compliance with the Tax Procedure Law legislation has been reg- istered by the Revenue Administration (RA), we provide cost and efficiency advan- tages by combining collection, inventory tracking and e-invoice processes for com- mercial enterprises on a single platform. Paycell POS integrates multiple banking services into a single device, providing businesses with standard banking col- lection management for their invoice flow. It offers a versatile solution for busi- nesses by providing benefits like points and instalment advantages to its users with favorable commission rates. Fur- thermore, the system automatically cal- culates totals simply by selecting the product, eliminating the need for manual amount entry, which makes it ideal for use at various events. In 2024, we continued to offer sectoral solutions with our innovations such as restaurant solutions integrated with meal cards and order tracking applications, and TaxiPOS service with zero commis- sion for taxi drivers. While providing a smooth payment experience for e-com- merce channels with our Virtual POS service, we make the online payment ex- perience fast and secure in many sectors from the automotive industry to the ser- vice industry with Linkle payment system. Paycell offers physical and online pay- ment services, integrated across 89 brands and 15,308 points. We offer Pay- cell Card sales and refill services at 21,410 points. In addition to offering our users a range of conveniences, such as invoice reflection without the need for a bank card, fast payment with QR code and balance management, we have also added the ability to spend their limits as they wish through the Paycell Card. Paycell's innovative financial services are designed to enhance financial inclusion and drive the digital transformation of our nation. The Paycell Shopping Limit fa- cilitates instalment purchases of up to 36 months from contracted merchants, with these instalments reflected on invoices for convenience. In addition, we facilitate the financial objectives of our client base by offering gold, silver and stock trading transactions via the 'Investment Transac- tions' menu. Here at Paycell, we are proud to offer a range of insurance products to our val- ued customers, including personal ac- cident insurance, device insurance and TCIP, all provided by our group company Wiyo. Paycell, Türkiye's most comprehen- sive digital payment and finance plat- form, continues to meet the needs of our customers and offer superior customer experience with new solutions every day. Paycell increased its revenues by 25% this year, contributing to group growth, while EBITDA margin was realized as 43.0%. Paycell's 3-month active users was real- ized as 7.4 million. 2023 2024 Paycell 3-month active users (million) 8.0 7.4 Total transaction volume (TRY billion) 65.6 101.3 Revenue (TRY million) 3,142 3,927 EBITDA (TRY million) 1,336 1,688 EBITDA margin (%) 42.5% 43.0% 2023 2024 Number of customers brought to Turkcell through Financell (thousand) 138 139 Number of loans utilized annually (million) 1.7 1.4 Number of customers utilizing annual loans (million people) 1.2 0.9 Total loan portfolio (TRY billion) 8.9 6.6 Revenue (TRY million) 3,409 4,526 EBITDA (TRY million) 1,166 675 EBITDA margin (%) 34.2% 14.9% In 2024, financell grew by 32.8% 139 thousand Number of customers have been acquired by Turkcell through Financell Paycell's 3-month active users reached 7.4 million Paycell EBITDA margin was at 43.0% At Financell, we are committed to pro- viding our consumer and corporate cus- tomers with the financing solutions they require for technological products and services. Among 24 financing compa- nies, we are by far the leader by reaching 70% of the total number of newly opened loans in 2024. In 2024, despite the imple- mentation of the tightest monetary policy of the last 20 years, we allocated 1.4 mil- lion loans. In addition to our strong retail portfolio, we have increased our effec- tiveness in the corporate field with the digital transformation loan we launched in 2020 and have financed nearly 150 digital transformation projects to date. We are experiencing growth in Turkcell's products and services, offering financ- ing services to our corporate customers and Superonline subscribers. In 2022, we expanded our operations to include channels beyond Turkcell, introducing innovative products such as digital holi- day loans and vehicle loans. In 2023, we expanded our loan offerings to include solar energy systems, white goods and furniture, and further strengthened our shopping and used car loan products. In 2024, we continued to enhance our cus- tomer segmentation by offering person- alised interest rates with the infrastruc- ture we developed. Financell supported group growth with a growth rate of 32.8% in 2024, and the number of customers brought to Turkcell through financell increased to 139 thou- sand. Turkcell Dijital Sigorta A.Ş., a company operating within the field of insurance as part of Turkcell's digital financial ser- vices strategy, commenced the provision of Device Protection Insurance (Akıllım Güvende) in 2024. This was followed by Compulsory Earthquake Insurance (DASK), a pioneering product in Türkiye that offers the unique option of payment via mobile phone bill. The company has also renewed its Cyber Security Insur- ance, which provides comprehensive protection for Turkcell Group companies. By the end of 2024, the company had increased its premium production to six times the previous level, reaching ap- proximately one million policies. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 93 92 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Leadership in Telecom 2024 was a year marked by the con- tinuation of significant events affecting the entire world. The Russia-Ukraine war, which began in 2022, continued to dominate the global agenda, while the Israel-Hamas war escalated sig- nificantly, particularly from October 2023 onwards. Apart from this war, other tensions and conflicts continued in the Middle East. Meanwhile, in most countries, inflation has been declining, prompting central banks to cut inter- est rates. In Türkiye, following the peak in inflation in May, annual inflation has started to decline, though it still remains at high levels. As Turkcell, we have maintained our robust operational structure by taking the necessary actions in a timely and efficient manner in line with these de- velopments. In our mobile business, we achieved strong growth thanks to our subscriber gains driven by our brand perception, superior infrastructure, un- rivalled customer experience and ana- lytical capabilities, increased data us- age, our strategy to upgrade to higher benefit packages, the impact of the increase in postpaid subscriber base and price adjustments we made to reflect inflationary pressures. Notably, the Mobile Number Portability (MNP) market remained impacted by height- ened competition, which commenced in the second quarter and persisted throughout the remainder of the year. While price levels in the market contin- ued to rise in general, we observed ag- gressive campaigns by competitors. As Turkcell, we occasionally responded to these campaigns, but we sustained our subscriber acquisition by maintaining our pricing focus. In 2024, despite an increase in the number of tourists com- pared to the previous year, the impact of service providers offering alterna- tive data solutions suppressed season- al subscriber growth. In order to meet the increasing de- mands of our customers with inno- vative offers and options such as Esneyen Paket (Flex Package), Yapboz Paketi (Puzzle Package) and Devre- den Paket (Transferring Package), we continued to deliver tailored solutions by leveraging our analytical com- petencies. We are proud to break new ground in the sector with the introduction of Gold Membership, a unique benefit offered exclusively to our valued prepaid customers who demonstrate consistent commitment to regular top-ups. This initiative em- powers them to unlock a range of ex- clusive gifts and perks, rewarding their loyalty with each step they take. This year, we introduced our Smart Invoice service, which prevents overcharges and eliminates bill surprises for our postpaid subscribers. This service is now available free of charge for all our customers. Thanks to our Smart In- voice solution, we have been able to offer our customers flexible and smart solutions in line with their usage habits. We have reinforced customer usage habits through the implementation of smart offers and win-win solutions within our digital channels. With our 'My First Turkcell' solution designed for children, we continue to develop tailored options to meet the needs of families. Our strategy of always being by our customer's side, along with our innova- tive and comprehensive tariffs and ad- ditional benefits, as well as our strong brand perception, superior infrastruc- ture, and unique customer experience, has enabled us to gain a total of 578 thousand net subscribers13, 303 thou- sand of which are mobile subscribers. Our mobile ARPU14 achieved a strong growth of 10.4% year-on-year, driven by price increases, increased data us- age, our strategy of switching to high benefit packages and the increase Trends in postpaid subscriber base. Conse- quently, we have sustained a healthy and balanced growth trajectory, both in terms of subscriber acquisition and ARPU growth. In addition, as Turkcell, Türkiye’s lead- ing communications and technology company, we celebrated our 30th anni- versary this year with enthusiasm. In the mobile sector, we have launched a new campaign that will delight both exist- ing and new customers. During May, we doubled all GB, SMS and minutes in the packages of all Turkcell subscrib- ers and new customers joining Turkcell. This initiative was designed to express gratitude to existing customers for their continued loyalty and to extend a warm welcome to new subscribers. To commemorate this milestone, Turk- cell extended an exclusive offer to its subscribers, doubling the data, SMS, and minutes included in their packag- es. This initiative allowed customers to seamlessly participate in enhanced communication opportunities, accessi- ble via the gift pool tab within the Turk- cell application, the Turkcell Contact Center, and the Turkcell Customer Ser- vice channels, or by sending an SMS. In addition, we also extended a special offer to our fiber customers, doubling their internet speeds to 1000 Mbps for a period of one month, providing them with ultra-fast internet access and significantly enhancing their digital experience. In 2024, we continued our focus on fi- ber infrastructure and reached 233 thousand new homepass. While con- tinuing to contribute to our country's digital transformation journey, we also increased our focus on turning our ex- isting household investments into sub- scriber in 2024. With the contribution of our expanding fiber infrastructure, we achieved 168 thousand net fiber sub- scriber additions in 2024. The increase in the share of 12-month contract sub- scribers and high-speed tariffs, along with price adjustments and premi- um pricing in IPTV, resulted in a 13.6% growth in fixed residential fiber ARPU in 2024. 13 Including mobile, fixed broadband, IPTV and wholesale (MVNO & FVNO) subscribers. 14 Excluding M2M Our strategy of always being by our customer's side, along with our innovative and comprehensive tariffs and additional benefits, as well as our strong brand perception, superior infrastructure, and unique customer experience, has enabled us to gain a total of 578 thousand net subscribers, 303 thousand of which are mobile subscribers. Big Data In today's communications landscape, a large amount of data is generated from various sources, including social media, connected devices, custom- er behavior and government service portals. While managing fluctuations in data volumes can be challenging for mobile operators, big data analytics offers the opportunity to turn this chal- lenge into an advantage. To capitalise on this opportunity, it is essential for organizations to enhance their deci- sion-making processes by leveraging data-driven analysis facilitated by ro- bust technical infrastructure and 'low- code' platforms. At Turkcell, we provide big data ana- lytics services to our corporate client base, assisting them in differentiating their service offerings. We direct our investments according to the demands of our customers and focus on provid- ing the highest level of experience by instantly monitoring their satisfaction. Utilizing big data analytics, we aim to provide the best solution to our val- ued customers in this period of intense competition. Digital Transformation and Inclusion Mobile communication technologies form the basis of digital transformation for individuals and organizations by fa- cilitating access to information. By en- suring equal access to information and services, the telecoms sector contrib- utes to social equality and accelerates global development. At Turkcell, we are committed to the equalising power of technology and launching projects to ensure equal access to information for all. The Pay- cell super app has been downloaded 30 million times, indicating our rapid growth in the mobile payments sector. We meet our customers' needs through digital services such as TV+, fizy, BiP and lifebox. In regions where fiber infra- structure is not available, we provide a fast and reliable wireless internet con- nection using Superbox. We implement inclusive projects for students and the elderly, who feel the digital divide the most. As we prepare the young gen- eration for the digital future, we also support the elderly to be included in the digital world and continue to cre- ate social benefits by ensuring equal access to information for all. Regulatory Developments and Sector Regulations The electronic communications sector is of critical importance in Türkiye, as it is a fundamental element of the consti- tutional right to freedom of communi- cation. For this reason, sector activities are subject to strict regulations, and the active cooperation of sector stake- holders is essential in shaping digital experiences that will meet consumer expectations. At Turkcell, we are committed to ensur- ing that all our activities comply with le- gal regulations. We utilize preventative legal services to effectively manage any disputes that may arise. Further- more, we employ strategies that are built on strong legal foundations, there- by reinforcing our position as a leader in our sector. We add value to both our company and our group companies by digitalising our processes. We work closely with regulatory au- thorities and public institutions to ac- tively contribute to sectoral legislation. We understand the importance of regulations for fair competition, a fa- vorable investment environment and a sustainable ecosystem, and we devel- op innovative solutions for our country and our industry. In addition, we conduct national and international studies on the legal as- pects of emerging technologies such as artificial intelligence, blockchain, space technologies, cyber security, smart cities and quantum technologies, and continue to create added value in these areas. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 95 94 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Sustainable Financing Activities Sustainable financing is a model in which funding sources are used in accordance with environmental, social and governance criteria. As the climate crisis intensifies, there is an increasing need for investment in global initiatives such as the European Green Deal. In this context, it has be- come critical for companies to shape their business strategies and financing activities within the framework of Sus- tainable Development Goals. As Turkcell, we are committed to en- hancing our financing diversity and supporting our sustainability goals. In this context, we aim to further expand the 'Sustainability Indexed Loan' and 'Green Loan' business we initiated in 2019 and 2020. In 2019, we increased the amount of the EUR 50 million, 3-year Sustainability Indexed Loan that Turk- cell İletişim obtained from BNP Parib- as to EUR 70 million and extended its maturity to December 2026. In 2023, within the scope of our Self-Consump- tion Project, we signed a EUR 30 mil- lion green loan agreement with Bank of China to finance renewable ener- gy investments. In 2024, as part of our Self-Consumption Project, we entered into new green loan agreements. The first, with Türkiye Kalkınma ve Yatırım Bankası A.Ş., involved a EUR 50 million financing to support renewable energy investments. The second, with Akbank, involved a EUR 65 million financing to support our environmentally friendly data center investments, which priori- tise energy efficiency and offer innova- tive technological solutions. This brings the total amount of green financing to EUR 115 million. In addition to bank loans, capital markets continue to be our focus in accessing and diversify- ing financing. In January 2025, a sus- tainable Eurobond was issued with a value of USD 500 million and a maturity of 7 years. This marked the company's inaugural sustainable bond issuance, met with significant investor interest. At the same time, we continue our work as one of the founding members of the UNGC CFO Coalition for Sustainable Development Goals, which aims to cre- ate a market for SDG investments. In December 2024, Turkcell published the Sustainable Finance Framework document. A second party opinion has been received for the Sustainable Finance Framework. The Framework aligns with the Green Bond Principles 2021 (with Annex I of June 2022), Social Bond Principles 2023 and Sustainability Bond Guidelines 2021, as published by The Turkcell Sustainable Finance Framework and the second party opinion can be accessed here. The Progress in Techfin Applications As digitalisation continues to gain mo- mentum, cryptocurrency and blockchain technologies are becoming increasing- ly mainstream, and smartphone usage is surging, significant opportunities are emerging for financial technologies. Smartphones, combined with techfin solutions, are driving transformation by connecting individuals without access to the financial system to essential resources. Within the Turkcell ecosystem, our sub- sidiaries Paycell, Financell, and Wiyo pro- duce innovative solutions in the techfin sector. With over a quarter of a century of experience and leadership in digital technologies, we make a difference in the market by offering specialized products and services to individual and corporate customers. Paycell, our new generation payment platform, offers a range of payment solu- tions for both individual and corporate customers, including Android POS, QR, and Virtual POS. In addition to the Event POS solution, which was launched in 2023 and enables product-oriented sales without the need to enter amounts, we launched the new generation taxi ap- plication, TaxiPOS, and RestaurantPOS solutions in 2024. These are integrated with food cards and order tracking appli- cations developed for the catering sector as new generation field sales products. Financell, our financing service that facil- itates access to financing loan solutions for individual and corporate customers, has disbursed approximately 18 million loans amounting to TRY 56 billion since its establishment. These loans have been used to finance a wide range of pur- chases, including solar energy systems, second-hand vehicles, furniture, white goods and technological products. Turkcell Dijital Sigorta A.Ş., a company operating within the field of insurance as part of Turkcell's digital financial ser- vices strategy, commenced the provision of Device Protection Insurance (Akıllım Güvende) in 2024. This was followed by Compulsory Earthquake Insurance (DASK), a pioneering product in Türkiye that offers the unique option of payment via mobile phone bill. The company has also renewed its Cyber Security Insur- ance, which provides comprehensive protection for Turkcell Group companies. Cyber Security In the digital age, with rapidly increasing data generation and growing demand for data centers, Türkiye's largest data center operator works with the vision of 'Türkiye's data should stay in Türkiye' at the forefront of its business strategy. Na- tional efforts and regulations to make Türkiye a center for hosting and transfer- ring data are increasing the demand for data centers and cloud services, while also supporting the development of our cyber security capabilities. The widespread use of technology is ac- celerating digital transformation, but it is also introducing new cyber security risks for individuals and organizations. The growing number of these threats high- lights the critical importance of robust information security measures. We are dedicated to identifying current threats and mitigating the impact of cy- ber-attacks through national and inter- national collaborations. At our Turkcell Security Operations Center, we monitor threats 24/7 and increase the resilience of our systems with end-to-end securi- ty tests. Our layered security approach and new generation technologies form the foundation of our cyber security solutions, which are available to both individual and corporate customers. We are committed to ensuring the security of their data. In order to ensure a secure digital future, we continue to lead the way in digital security. We do this by developing our human resources and establishing inte- grated infrastructures for the needs of our customers. Artificial Intelligence Artificial intelligence is a technology with the potential to transform organizational strategies and enhance productivity by improving the user experience. At Turkcell, we are committed to integrating ethical values and principles, including 'human and environmental orientation, transpar- ency, security and justice', as we contin- ue to shape the future of artificial intelli- gence. With this vision, we have become a global player in the field of artificial intelligence, pioneering ethical solutions and setting new standards in our country. In this context, the contributions we have made include: — Studies on children's rights and artificial intelligence, — Studies on the responsible use of facial recognition systems, — Standardisation studies carried out within IEEE to address ethical problems and concerns that may be caused by artificial intelligence, — Studies within the scope of the ‘Planet Positive 2030’ initiative within IEEE, — Studies on the responsible and ethical use of artificial intelligence technology in smart sustainable cities and artificial intelligence and health studies carried out at ITU, — The ‘Responsible AI Maturity Roadmap’ initiative, which was created within the GSMA to ensure the responsible use of artificial intelligence in the sector. By leveraging our expertise in big data analytics and artificial intelligence, we utilize machine learning algorithms to enhance traffic density analysis, capaci- ty management, and anomaly detection within our network. This optimises infra- structure efficiency. We contribute to dig- ital transformation by offering artificial intelligence solutions to institutions and organizations through our Digital Business Services. Our legal and regulatory teams collabo- rate with global organizations to adapt to the rapidly changing technological ecosystem and increase the positive im- pact of artificial intelligence. We are com- mitted to shaping the future of artificial in- telligence technology through an ethical and responsible approach. Turkcell is committed to adhering to the principles of the Law on the Protection of Personal Data and continues to lever- age artificial intelligence to serve the realization and development of human potential. the ICMA. The Framework also com- plies with the Green Loan Principles 2023 and Social Loan Principles 2023 issued by the Loan Market Association (LMA), Asia Pacific Loan Market Asso- ciation (APLMA) and Loan Syndications and Trading Association (LSTA). The funds will be allocated to finance proj- ects such as supporting the transfor- mation of high-speed fixed and mobile networks, circular economy studies, renewable energy investments (green projects) and digital inclusion (social projects). TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 97 96 | TURKCELL 2024 INTEGRATED ANNUAL REPORT HUMAN CAPITAL At Turkcell, we understand that our people are our greatest asset in creating value for our customers. TURKCELL 2024 INTEGRATED ANNUAL REPORT | 99 98 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Decent Workplace At Turkcell, we understand that our people are our greatest asset in creating value for our customers. Recognizing them as valuable brand ambassadors, we provide a work environment that offers equal op- portunities and enables them to realize their potential in all processes, from re- cruitment. The well-being and profession- al fulfilment of our people is the founda- tion of our people-centric approach. All Human Resources policies and pro- cesses are carried out in full compliance with legal requirements. We ensure that all changes that may affect our employ- ees are communicated openly and effec- tively through the designated channels. In accordance with our Human Rights Policy, we are committed to fostering an inclusive environment that embraces di- versity and prohibits any form of discrim- ination based on gender, age, belief, or any other similar characteristics. We of- fer comprehensive training programs to enhance the skills of our employees and support them in swiftly adapting to the digital age. In accordance with our Human Rights Policy, we are committed to compliance with the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the Internation- al Covenant on Economic, Social and Cultural Rights, the UN Convention on the Rights of Persons with Disabilities and the Convention on the Rights of the Child, and the United Nations Principles on Business and Human Rights. We respect the United Nations Global Principles and the OECD Principles for Multinational Enterpris- es, the provisions of ILO Conventions to which Türkiye is a party, the 'Rights and Freedoms of Assembly' and the 'Right to Form Trade Unions and Engage in Trade Union Activities' of our employees, which are stated in the Constitution of the Re- public of Türkiye. Furthermore, we sup- port our employees in their pursuit of membership within professional groups relevant to their field or NGOs that pro- vide social benefits. We design all our Human Resources pro- cesses with the employee experience in mind at every stage, from recruitment to exit and beyond. On an annual basis, we design and implement various proj- ects that will serve our Human Resources strategy and goals, taking into account the feedback we receive from our em- ployees. We carry out the design and management of our remuneration and fringe benefit policies, the integrated ex- ecution of performance and career man- agement by taking advantage of our data-driven approach and the power of digitalisation. This enables us to deliver analytical solutions that are at the core of all our processes, ensuring our position as a leader in the business world. By engaging with our employees, we ensure that the employee experience is managed to the highest standards, align- ing with expectations, needs and inter- national developments. We carry out our Human Resources planning, role and re- sponsibility definitions, and the determi- nation of company risks and targets with a focus on cooperation. Diversity, Inclusion, and Equal Opportunity In order to provide a suitable environ- ment for our employees to realize their demands and needs, we implement our human resources practices that provide equal opportunities to all individuals, advocate inclusion and diversity with the vision of a people-oriented compa- ny and with the belief that ensuring the functioning in accordance with human rights is one of our most fundamental duties, and we improve ourselves in this area on a constant basis. As a company, we have published a Human Rights Policy that guides our business processes and supply chain, and we are committed to preventing discrimination, inequality, hu- man rights violations, forced labor and child labor. In addition, in line with the UN Women's Empowerment Principles (WEPs), of which we are a signatory, we implement practices aimed at supporting gender equality in business life and Turk- cell's goal of becoming the company that women most want to work for thanks to its gender equality approach. As an equal opportunity employer, we give equal consideration for employment to all qualified applicants regardless of Performance Indicator Short Term Target Medium Term Target Long Term Target 2023 Performance 2024 Performance Target Towards Current Status Increasing the ratio of female employees - - 40% (until 2030) 35.2% 35.2% Increasing the number of female members in the Board of Directors (including independent members) - - 2 2 2 Increasing the ratio of female managers - - 28% (until 2030) 24.2% 24.4% ↑ Increasing the rate of return to work of female employees whose maternity leave has ended 98% 98% 98% 99% 99% Increasing the retention rate of female employees after the end of maternity leave 88% 90% 90% 94% 91% Our Human Rights Policy is available on our corporate website. disability, race, color, religion, sex, national and ethnic origin, age, physical appear- ance or condition, marital or military status. We are committed to ensuring that our recruitment processes are designed to be barrier-free and accessible for all candi- dates, including those with disabilities. We do not collect information about disabili- ty status during the application process and apply the same rigorous, impartial evaluation to all candidates. We conduct interviews and document procurement digitally, and we design our physical work environment to comply with the princi- ples of barrier-free design. As of 2024, our company has 130 disabled employees. All Turkcell and Turkcell Group Compa- nies' employees, particularly senior man- agement and management level, are re- sponsible for achieving targets to ensure a balanced gender ratio among employ- ees. As Turkcell, we aim to increase the ratio of female employees to at least 40% by 2030. To this end, we conduct monthly monitoring of the ratio of female employ- ees and female managers. We closely monitor the targets for the ratio of female employees and female managers within the scope of gender equality in the per- formance cards of employees respon- sible for the process, starting from the Assistant General Manager level. We are committed to increasing the number of female managers and employees in line with the Inclusive Pozitifİz strategy. We evaluate the outputs obtained in terms of financial, operational, legal compliance and environmental aspects and review them within the scope of Internal Audit activities. We are committed to the belief that gen- der discrimination in professions and areas of expertise should be a thing of the past. As the leading digital operator company, we are dedicated to ensuring equal par- ticipation of women, especially in STEM (Science, Technology, Engineering, Math- ematics) fields. To this end, we are imple- menting numerous practices and taking significant steps to increase the employ- ment of female engineers in Türkiye. Since 2024, 31% of engineering positions will be filled by female graduates, while 34% of IT positions will be filled by female employ- ees. We also provide new job opportuni- ties for female engineers who are starting their professional life or female profession- als who have taken a break from business life for various reasons. 35.2% Female Employee Ratio 1.74 Accident Frequency Rate 99% Rate of return to work of female employees whose maternity leave has ended 24.4% Female Manager Ratio TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 101 100 | TURKCELL 2024 INTEGRATED ANNUAL REPORT In accordance with the principles of the Turkcell Remuneration Policy, the compa- ny is committed to the principle of 'equal pay for equal work', and there is no dis- crimination between the basic salaries of its female and male employees. An anal- ysis of entry-level salaries reveals that the ratio of the monthly salary of female employees to the minimum salary is 253%, while the ratio of the monthly salary of male employees is 249%. The absence of any legal action, whether initiated by our employees or third parties, on grounds of discrimination based on language, religion, race, belief, sect, eth- nic origin, political or ideological opinion, marital status, age, gender or any other legally protected category, against Turk- cell İletişim Hizmetleri A.Ş. is a significant indicator of our company's commitment to addressing this issue. * Demographic information presented in Our Human Capital section includes data from the following companies; Turkcell İletişim Hizmetleri A.Ş., Kule Hizmet ve İşlet- mecilik A.Ş., Superonline İletişim Hizmetleri A.Ş., Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., Turkcell Finansman A.Ş., Turk- cell Ödeme ve Elektronik Para Hizmetleri A.Ş., Turkcell Satış ve Dijital İş Servisleri A.Ş., Turkcell Dijital Sigorta A.Ş., Turkcell Sigor- ta Aracılık Hizmetleri A.Ş, Turkcell Teknoloji Araştırma ve Geliştirme A.Ş., Lifecell Dijital Servisler ve Çözümler A.Ş., Lifecell TV Yayın ve İçerik Hizmetleri A.Ş., Lifecell Müzik Yayın ve İletim A.Ş., Lifecell Bulut Çözümleri A.Ş., BiP İletişim Teknolojileri ve Dijital Servisler A.Ş., Boyut Grup Enerji A.Ş., Turkcell Gayrimenkul Hizmetleri A.Ş. and Turkcell Satış ve Dağıtım A.Ş. Employee demographics do not change significantly during the year. Employer Branding and Talent Acquisition At Turkcell, we are implementing our T.Life strategy with the goal of estab- lishing a young, innovative and inclu- sive employer brand. We aim to provide our employees with an embracing and inspiring working environment with a sense of belonging to be proud of. Our innovative organizational structure is designed to prioritise the expecta- tions of the young generation, who will shape the business world of the future. We develop special projects to unlock the potential of Turkcell employees who 'shape technology', 'have responsibility' and 'global vision'. In this context, we have implemented various programs that directly engage with young talents: High school students at Turkcell: We welcomed high school students in our offices and inspired their career plans by saying ‘Sharing the dreams of young people starts at K12’. Campus at Turkcell: We hosted univer- sity students in our offices to introduce them to the professional world and es- tablished strong ties with them. Turkcell on Campus & Turkcell in Class: By bringing our Turkcell professionals to campuses, we shared our knowl- edge and experience with students and contributed to their professional development. Turkcell 101: We combined company trip and technical tour requests from universities in a single concept and offered inspiring experiences that pre- pare young people for the future. KampüsT Brand Ambassador: We strengthened our presence on cam- puses with 37 brand ambassadors in four cities, and brought Turkcell's inno- vative story to campuses by establish- ing direct ties with young people. We are proud to inspire the career jour- neys of the young generation by sup- porting the leaders of the future today. Employee Demographics in 2024 Employee Breakdown by Gender Employee Breakdown by Education Level Age Group Distribution of Managers Employee Age Group Distribution Between 30-50 years 76% 30 years and under 20% 50 years and over 4% Making a Difference in Employment As Türkiye's leading digital operator, we contribute to employment with customised programs that target candidates seeking to become Turk- cell employees, spanning information technology, finance, marketing, sales and human resources. We are dedicated to recruiting talent- ed young people and welcome appli- cations from university students and new graduates for our internship and new graduate programs. As part of the 202 Young Talent Intern- ship Program, which provides univer- sity students with the opportunity to familiarise themselves with Turkcell's technological landscape, a total of 263 interns from various universities and departments in Türkiye gained hands- on experience in professional business life at Turkcell. Since 2016, we have been successfully running our new graduate recruitment Young Talent (GNÇYTNK) Program. The program's objective is to identify and recruit individuals who demonstrate a strong ability to achieve results, a com- mitment to pursuing their goals, a high level of technological competence, and a capacity to swiftly adapt to new environments. In 2024, we received over 42 thousand applications for the Young Talent Full Time and Young Talent Part Time Pro- grams. We are delighted to announce that 74 candidates have been success- fully recruited through the Young Talent Full Time program and 110 through the Young Talent Part Time program. It is noteworthy that 48% of the new talent joining us are female candidates, and 72% are engineering graduates. We recruit new graduates and young talents, as well as experienced profes- sionals. In line with the principle that New Hires 2023 2024 Full Time 592 490 Part Time 0 0 Female 224 180 Male 368 310 competent employees recommend competent candidates, the 'Tell Your Candidate, Create Benefit' program enables Turkcell employees to recom- mend external candidates for open positions. When candidates recom- mended by our employees successful- ly complete all the processes and join Turkcell, we offer a thank you gift to our employees who recommended the candidate through Paycell. To this date, 26 candidates have been recruited through this program. 48% of the new talent joining us are female candidates 72% are engineering graduates We aim to increase the ratio of female employees to at least 40% by 2030. Male Employee Female Employee 1,934 - 35.2% 3,555 - 64.8% Between 30-50 years 91.8% 30 years and under 0.4% 50 years and over 7.8% Doctorate 0.6% Undergraduate Degree 66.0% Graduate Degree 30.3% Associate Degree 1.7% High School 1.4% TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 103 102 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Employee Experience and Talent Management Life at Turkcell We want to enhance our employees' experience at Turkcell and create a world they want to be a part of. To this end, we offer internal communication activities that support corporate cul- ture and loyalty, rewards and benefits that prioritise employee well-being, ca- reer and skills development opportuni- ties, and a safe working environment. Since 2016, as a pioneering company that has experienced flexible work- ing, we have been working under the motto "If you are there, Turkcell is ev- erywhere" by eliminating borders with our flexible working model, which we have expanded in 2021. By defining the principles of our innovative working model in the Flexible Working Manifes- to, we ensure that we can work from anywhere and be accessible in any situation. Turkcell employees whose roles permit location-independent working can perform their duties re- motely or flex their working hours from Turkcell offices in different cities across Türkiye. The Flexible Working model is designed to enhance motivation and synergy, while facilitating the imple- mentation of activities that contribute to a positive work culture. Our primary objective is to achieve strong compa- ny results, both operationally and fi- nancially, by maintaining a workforce that is physically and psychologically healthy, highly productive, and commit- ted to our company values and culture. In order to boost the motivation of Turkcell employees and enhance their interactions, we organized numer- ous events throughout 2024 under the umbrella of T.club, T.studio, T.labs and T.stage. The T.club concept brought together a diverse audience, ranging from art enthusiasts to adventurers, travellers to gourmets, through work- shops, weekend events, cultural tours and sports. The initiative fostered a strong sense of unity and shared pur- pose among all Turkcell employees, regardless of their location. The T.stage concept brought together music-lov- ing Turkcell employees and enabled our employees to enjoy pleasant mo- ments in an environment intertwined with art. The T.labs concept involved the creation of health-related videos for the T.Life mobile application, which delivers human resources applica- tions to Turkcell employees. As part of the new Turkcell Volunteers struc- ture, we are committed to maintain- ing our volunteering activities among our employees. We have facilitated connections between our employees and prominent figures, and conducted podcasts with Turkcell employees who possess expertise in various domains. We organized surprise events in the of- fices to boost motivation and promote a positive atmosphere among Turkcell employees. We held meetings with assistant general managers at Func- tion Breakfasts. We also held a special event, the Baht-ı Büs, in different cities to strengthen employee loyalty and motivation. We supported the mental, physical and mental health of Turkcell employees by organizing healthy living activities with the theme 'Take Care of Yourself'. With the aim of becoming Tür- kiye's largest corporate sports club, we established 17 teams in 13 branches and organized summer and winter sports schools for the children of our employ- ees. The program saw an impressive participation of over 72 thousand Turk- cell employees across a total of 162 events during the year. We also provid- ed more than 25 thousand discounts and opportunities from 92 different brands to employees and their families with the Advantages World campaigns offered in the T.Life application. Employee Loyalty and Happiness At Turkcell, we design our applications with a focus on people. We conduct regular and open communication with our human resources team, leveraging their expertise and competence to as- sess the efficacy of our processes and services. We evaluate the outputs ob- tained from research and one-to-one interviews, and initiate processes to take action. We periodically conduct Employee Loyalty Surveys with independent con- sultancy firms to measure the general loyalty and satisfaction of our employ- ees, and we create action plans with the feedback we receive as a result of the survey. This process enables us to undertake continuous reviews of the effectiveness of our practices. In 2024, we formulated our action plans based on the outputs of the Employee Engagement Survey conducted in 2023 and implemented the necessary steps. Career and Skill Development Practices We provide support to Turkcell employ- ees through programs such as career management, backup management and rotation, and we facilitate the pro- gression of their careers. This approach ensures a balanced focus on both the needs of the organization and the in- dividual success of our employees. To ensure optimal business outcomes, we implement effective performance management systems and provide our employees with comprehensive sup- port, including rewards, wages and benefits. Our employees who feel themselves ready for the next level can apply to the Career Progression Process, which is managed fairly and transparently, and can initiate the opportunity to advance in their careers on their own initiative. The evaluation process is meticulously carried out by a committee consisting of function managers to whom the ap- plicant reports. The Tech Talent program, which we launched this year, is an innovative ca- reer development program that sup- ports the professional growth of tech- nology talent and facilitates internal talent mobility. By establishing a mas- ter-apprentice relationship between our MasterTechs (experienced experts) and GrowTechs (employees wishing to pursue a career in technology), we facilitate knowledge and experience transfer in areas such as artificial in- telligence, mobile application devel- opment and big data. During the pro- gram, participants allocate 4 days per week to their own work and 1 day to the program. By offering this program, we aim to enhance the skills of our em- ployees while aligning with Turkcell's technological vision and nurturing the competencies of the future within our company. The Apprenticeship Program has been designed to create opportunities that encourage 360-degree thinking and enhance internal communication. As such, it offers Turkcell employees the chance to develop their competencies by gaining new experiences that align with their career and personal devel- opment needs. The FLEXSourcing program at Turkcell allows employees to dedicate a por- tion of their working time to innovative projects that demand a range of per- spectives, expertise and competencies. They apply for projects that are avail- able during the year, with the objective being to increase internal synergy and develop new skills. The FLEXSourcing application has been utilized by over 500 Turkcell employees who are com- mitted to adding value to the company in 2024. These employees have applied to 51 projects in total, and more than 200 of them have been assigned to these projects. Through internal transfer within the company, we seek to diversify our em- ployees' skill sets, enabling them to de- velop new competencies, enhance their motivation and boost their job satisfac- tion. Our internal transfer process allows employees to gain diverse technical knowledge and skills, facilitating ca- reer progression. In 2024, more than 150 employees transferred to different units and functions as part of this process. Within the scope of Backup Manage- ment, we provide support to employ- ees in management positions (C-Level, GM, Director, Manager) and critical expert positions with internal and/or external resources. This ensures busi- ness continuity and sustainable perfor- mance of our company. In disaster and crisis situations, we identify critical roles and positions within the scope of the Geographical Redundancy Process. This helps to protect the business con- tinuity and sustainable performance of our company against unexpected ex- ecutive and employee losses. We want to enhance our employees' experience at Turkcell and create a world they want to be a part of. over 72 thousand Turkcell employees across a total of 162 events during the year. 2024 Employee Turnover Rate 10.0% Female turnover rate 11.0% Male turnover rate 9.5% TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 105 104 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Remuneration, Reward and Fringe Benefits At Turkcell, we have a transparent, fair and competitive remuneration policy in place to attract and retain the best talent. We regularly update our pol- icies and salary scales by taking into account independent labor force sur- veys and market conditions, and we resolutely implement the principle of 'equal pay for equal work'. We priori- tise employee satisfaction with our fair and impartial practices, without dis- criminating between male and female employees in terms of basic salary. When formulating our Turkcell Re- muneration Policy, we take care to ensure that it is competitive and mo- tivating, with the aim of retaining our managers and employees, as well as the talented individuals who play critical roles within the company. We implement performance-based remu- neration practices to recognize and reward outstanding performance. We offer a flexible benefits program to all our employees, enabling them to make choices in line with their needs via our Flex Menu application. Our employees can configure health insur- ance packages that can include them- selves, their spouses and children, and benefits such as life insurance, meals and gift vouchers in accordance with their individual preferences. We pro- vide 'life insurance with death and life support (critical illnesses) coverage' to all our employees and offer disability insurance after accidents and illnesses. In the unfortunate event of an employ- ee's death, we provide educational support for their blood-related prima- ry, secondary, high school and universi- ty-age children. Our Turkcell Private Pension plan is designed to support the savings and investments of our employees, enabling them to maintain their standard of living in retirement. We go above and beyond the legal minimum with our generous paternity leave policy, which is 10 days instead of the legal 5, so that our employees who become fathers have the opportunity to be with their children in those crucial early moments and support childcare. We also support female employees who are returning to work after a ca- reer break. In this regard, we have meticulously designed our lactation rooms in our workplaces and equipped them with essential items such as tools, refrigerators, rocking chairs and hy- giene kits. We also provide nursery assistance to our female employees with preschool-age children. We also offer parents with pre-school and pri- mary school children the opportunity to share in their children's educational journey by being present on their first days of school and on report card days. We also offer birthday leave and renewal leave to ensure the well-be- ing of our employees and support their work-life balance. Renewal leave of up to three months is granted to employ- ees with seven years or more of senior- ity, in line with their requests. We offer loans to our employees for a variety of purposes, including health, marriage, and housing purchases. We also offer our employees access to Turkcell digital service memberships (Fizy, TV+, Lifebox, etc.) free of charge, as well as access to the Turkcell Plati- num advantages. We also provide hol- iday payment support to our employ- ees before Eid al-Fitr and Eid al-Adha. We provide our employees with a com- pany computer, company phone and GSM line. We also ensure that their computers and phones are renewed after a certain period of use. In addi- tion, as part of our commitment to the well-being of our employees' loved ones, we proudly present the Employ- ee Relative Campaign. This initiative offers a select group of their relatives the opportunity to enjoy the benefits of Turkcell mobile operator services, with carefully designed packages and competitive tariffs. Each year, we recognize and reward our employees who make a significant contribution. Our Assistant General Managers play a key role in determin- ing the recipients of these financial awards. We also hold a special cere- mony to honor our employees during the CXO Awards. In addition, as part of the Turkcell family, we financial- ly reward our employees who have reached 5 years of seniority and mul- tiples of 5 years of seniority, and we present them with a seniority plaque. We respect our employees' rights to "freedom of assembly" and "the right to form trade unions and to engage in trade union activities" as set out in the Constitution of the Republic of Türkiye. In this context, no written application has been made by any authorised la- bor union to Turkcell in 2024. Performance Management and Feedback System We implement a performance management system that is fair, flexible and open to con- tinuous improvement so that our employees can achieve the best business results. We en- sure that all Turkcell employees can track their goals throughout the year and update them according to changing priorities, while sup- porting their work outputs and personal de- velopment through regular feedback. We ensure that targets are clarified through interim evaluation meetings, action plans are created and performance is improved through continuous feedback. At the end of the year, we evaluate each employee fairly, reward success and continue our efforts to maximise performance. We carry out a competency assessment pro- cess to evaluate the competencies expect- ed from Turkcell employees in an impartial and multi-stakeholder manner, and to raise awareness by identifying strengths and areas open to improvement. Our ReFlex360 process, which involves managers and colleagues evaluating each competency on an employ- ee basis, provides Turkcell employees with comprehensive and objective feedback for their personal development throughout their career journey. This contributes to corporate harmony, courtesy and effective functioning among employees. Flex Performance Management Behavioral and Skills Assessment: ReFlex360 We believe in the power of constructive feed- back to boost motivation in our business pro- cesses. With ReFlex, our mobile mechanism for providing instant feedback, we give our em- ployees the opportunity to appreciate each other and make constructive suggestions so that we can develop and improve together. Continuous Feedback Mechanism: ReFlex In order to foster a sense of appreciation and enhance motivation among our employees, our management team recognizes excep- tional performance with an award known as 'Super Job'. This award is given to employees who demonstrate innovation, excellence, or the creation of value through their work. This approach is intended to enhance both the in- dividual and team motivation of our employ- ees, as well as to share their success stories more widely and use them as role models. Super Job TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 107 106 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Turkcell Group Orientation Program Our Turkcell Orientation Program, which has been designed in line with the chang- ing business world, aims to ensure that our colleagues adapt to the company culture and their roles from their first day of work. We focus on our flexible working model and learning approaches. Our company's orientation program lasts approximately six months and is based on an approach that blends face-to- face learning and digital learning meth- ods. We extend an invitation to our newly recruited colleagues to attend a face- to-face program, where we convey the culture, values and business models of our company before they complete their first month. Throughout the program, we foster an environment of interaction and communication among our new col- leagues through ice-breaker activities, while conveying our business practices through sessions conducted by various departments. We facilitate the establishment of social bonds among employees by equipping the program with stands and catering areas where all participants can experi- ence Turkcell Technology collectively. We also offer virtual reality games designed by Turkcell Academy to support compa- ny belonging to our colleagues with VR technology. Elective experiential learning sessions form a key part of our orientation pro- gram, enabling employees to discover Turkcell's customer experience focus through call center visits and our technol- ogy infrastructure through data center visits. Furthermore, our employees have the opportunity to directly recognize the company's leadership vision through special events with our CEO. As part of our company's commitment to professional development, we actively encourage our employees to become trainers at Turkcell Academy. This initia- tive contributes to the ongoing cultivation of a culture of 'learning from each other'. This comprehensive orientation program is designed to provide new colleagues with a thorough introduction to Turkcell and to foster a sense of belonging within the Turkcell family. Our Training and Development Approach Young Talent (GNÇYTNK) Orientation Program We are pleased to introduce our candi- dates applying for the GNÇYTNK Pro- gram to the training and development programs at Turkcell Academy, which are certified by the relevant authorities. We will be supporting them throughout the recruitment process. Successful can- didates are welcomed with a dynamic orientation program to ensure their rapid adaptation to the corporate culture and technology of Turkcell. We facilitate in- teractions with our senior management, creating an environment where they can understand the essence of being a Turkcell employee and recognize our core values. We shape the process with experience-oriented training workshops, Turkcell's digital services and products, sustainability strategies, corporate cul- ture and ecosystem leadership values and structure the first 90 days of their working life. As part of the program, we facilitate connections between GNÇYTNKs and Turkcell Technology teams to establish their technology vision, and we offer training in areas such as artificial intel- ligence, cyber security, data analytics and blockchain. We also arrange data center visits. Legal Mandatory Trainings We aim to ensure that Turkcell and Turk- cell Group employees maintain high levels of knowledge and awareness through periodic training in accordance with the applicable laws and regulations. We plan the training received by Turkcell employees in this context in two separate categories: legally mandatory training and basic awareness training. At Turkcell, we organize a range of train- ing sessions to ensure our employees are well-versed in essential legal and profes- sional requirements. These include 'Basic Occupational Health and Safety' and 'Information Security Trainings', as well as 'Business Continuity Training', 'Sustainabili- ty', 'Bribery and Corruption', 'Economic and Commercial Sanctions', 'Turkcell Common Values and Code of Business Ethics' and 'Personal Data Protection Law'. These sessions are designed to raise awareness among all employees, ensuring they are equipped with the knowledge and skills to perform their duties safely and ethically. All Turkcell and Turkcell Group employees are required to complete Basic Occupa- tional Health and Safety Training in ac- cordance with the Occupational Health and Safety Law No. 6331. All employees receive OHS training every two years. The program is regularly revised and updat- ed. In 2024, our employees participated in over 22 thousand hours of training, en- hancing their awareness of occupational health and safety. Information Security Training is anoth- er training title received within the same scope. All employees receive Information Security Training every two years. The training program is comprehensive, span- ning 3 hours on average and covering all aspects of information security relevant to employees' roles. At Turkcell Academy, we are dedicated to supporting the professional devel- opment of our employees. We aim to create a sustainable learning culture for a better future by providing inno- vative solutions that create value for the Turkcell ecosystem, society and the sector. We do this by ensuring the de- velopment of individuals whose lives we touch, with a focus on people and the future. We support our ecosys- tem of over 70 thousand people with distinctive training and development solutions. Our Turkcell Ecosystem Leadership ap- proach consists of 8 core competen- cies that bring our employees and eco- system together. These focus on People (Aware, Flexible, Reliable, Trustworthy, Sharing) and Future (Visionary, Innova- tive, Sustainability Conscious, Inclusive of Diversity). With these competencies, we aim to exhibit common behaviors and spread the corporate culture. In designing our training and develop- ment programs, we base our Turkcell Ecosystem Leadership approach on these competencies, with the aim of creating global employees and lead- ers who will make a difference in the pursuit of Turkcell's vision of 'superior digital services for a better future'. In 2024, in addition to designing de- velopment programs, leadership pro- grams and development journeys specially designed for young talents of Turkcell employees, we have imple- mented employment programs that will benefit society, training-develop- ment solutions for university students and the field. At Turkcell Academy, we are dedicated to supporting the professional development of our employees. Over 70 thousand people with distinctive training and development solutions. The basic awareness training varies according to the needs, but basically consists of the following trainings: −TODIEK (Turkcell Common Values and Code of Business Ethics) training −Anti-bribery and corruption training −Economic and Trade Sanctions Training −KVKK (Personal Data Protection Law) training −Sustainability Training −Business Continuity Training −Enterprise Risk Management Training −Patent Training The duration, content and method of the relevant training will be planned and delivered in the most appropriate manner. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 109 108 | TURKCELL 2024 INTEGRATED ANNUAL REPORT In the third phase, face-to-face and live virtual classroom trainings on Artificial Intelligence Tools and Usage, Data An- alytics and Business Intelligence, Data Science and Data Analysis, Data Visuali- sation, Introduction to Programming with Python, Blockchain Technology, Project Management and Scrum were held in co- operation with Boğaziçi University. During this phase, participants were asked to form project groups and share their ideas on improving directorate-based business processes. Following the conclusion of this phase, 267 individuals who success- fully completed the evaluation exam and shared their project ideas were eligible to proceed to the fourth phase. In the fourth and final phase, the objec- tive was to apply the theoretical and practical knowledge gained in the first 3 phases with the support of mentors. This support was provided by experts from the sector and within Turkcell. Participants transformed their concepts into tangible projects aimed at enhancing director- ate-based business processes, collabo- rating within project groups. During this phase, a total of 267 colleagues worked on 76 projects. Semi-final presentations of the projects were evaluated by the di- rector committees. Following these eval- uations, the successful projects were then ranked by our General Manager and Assistant General Managers, with the winning group being awarded a special overseas technical benchmark program. KÜP - Turkcell Academy Digital Library Through the Turkcell Academy Digital Li- brary (KÜP) program, which is designed in accordance with the learning orga- nization and self-learning approaches, we make over 1,500 content available to all Turkcell employees. We offer Turkcell employees the opportunity to design their learning journey with e-learning, reading, video, podcast and interactive video options that they can access from KÜP according to their preferred learning method. Turkish Development Program The Turkish Development Program is a comprehensive awareness program de- signed to promote the correct, effective and rich use of our Turkish language. Acknowledging the pivotal role that lan- guage plays in both personal and pro- fessional success, we have meticulously crafted this program specifically for all Turkcell employees. Within the scope of the program, we aim to improve the lan- guage awareness of the participants through seminars, training sessions and informative video series with experts in the field. “Tech Kapsül” Technology Newsletter We publish the 'Tech Kapsül' technology bulletin to keep all Turkcell employees informed about technological develop- ments in Türkiye and around the world. This is available on the Turkcell Academy BIP channel monthly. This bulletin is de- signed to present the latest trends and inspiring content from the technology world in a practical way. Turkcell Function Trainings Turkcell offers Functional Development Programs that are synchronized with Turkcell’s main strategy and initiatives and support end-to-end development throughout the year. These programs, we aim to prepare Turkcell employees for the Turkcell and technologies of the future, while providing them with perspectives that add value to their current jobs, sup- port collaboration and achieve success together for common goals together. Different learning methods and tools such as online, live virtual classroom, face- to-face and laboratory environments are used in the development programs, which are conducted using the experien- tial learning method together with expert business partners in the ecosystem, Turk- cell Academy trainers and development partners with experts in their fields. These programs are designed with a flexible model that can be differentiated accord- ing to the changing needs and priorities of the relevant functions throughout the year and can be redesigned with imme- diate needs. In 2024, as part of the implementation of development programs, we provided all employees with support and guidance on their personal and professional devel- opment, from initial aspiration to practical application, through the provision of flex- ible and personalised programs. In this context, we prioritised 'Experience-Ori- ented Training and Development Pro- grams' and 'Systemic Personalised Devel- opment Solutions'. KEY - Personal Education Journey At Turkcell, we are committed to sup- porting the professional development of our employees through the Personal Education Journey (PEY) program, which emphasises experiential learning. This program offers our employees the op- portunity to develop the competencies they need in their business and private lives, and is an important step towards preparing for the competencies of the future. During 2024, 1,450 of our employees suc- cessfully completed the personal training journey program, which was enriched with 36 topics determined in line with Turkcell strategies and future competen- cies, with 1,450 face-to-face and 1,200 re- mote participation. The PEY program is designed to offer our employees a personalised learning ex- perience by giving them the autonomy to choose their own training. This initiative contributes to the professional develop- ment of Turkcell employees, enhancing their competencies and contributing to the success of the business. Leadership Development Programs At Turkcell, we specialize in designing leadership development programs that prioritise people and the future. We take a tailored approach, considering the unique needs, responsibilities and impact of each leader within their re- spective roles. Our programs empower leaders to make strategic decisions that shape the future, discover new opportu- nities, develop strategies with a holistic vision and effectively implement these strategies by integrating them with business goals. These programs are de- signed with level-specific methods in line with a common focus for leaders at all levels, and are based on an experien- tial learning approach that supports in- dividual and organizational transforma- tion. Leaders develop permanent skills through learning processes supported by practices that transform theory into practice and experiences gained in real business scenarios. In 2024, we renewed our Leadership Development Programs in line with the strategic goals of our company. We designed our programs with a focus on building a common language and leadership culture. In this regard, we have collaborated with international business schools, domestic universities and our development partners to cre- ate programs that enable our leaders to effectively manage their teams in un- certain environments, add value to the organization by crossing borders and benefit from experiential learning solu- tions that strengthen the 'we' conscious- ness while supporting strategic integrity. During 2024, 562 leaders participated in these programs, making a significant contribution to both their leadership journeys and Turkcell's strategic goals for the future. University Collaborations By signing major projects to add val- ue to Türkiye, we are able to establish university collaborations with the aim of training qualified personnel for the sector. We bring together our university students, who will shape the technolo- gies of the future, with Turkcell's experts in communication networks, computer networks, financial technologies, wire- less network technologies, introduction to cyber security, penetration testing, marketing analytics and ERP systems. We also organize certificate programs for university students, equipping them with the skills they need to excel in their future careers. These collaborations pro- vide a valuable opportunity to transfer our expertise and vision in current tech- nology and business areas to university students. These events bring together our employees, who have experience and knowledge in their fields, with stu- dents who wish to shape their careers. This contributes to the brand value of our company while helping our university students in their career choices. In order to support Turkcell employees in their career journeys and academic development, we conducted master's and doctoral programs with 7 differ- ent universities. A total of 72 employees participated in 7 different master's and 2 doctoral programs, covering the fields of Business Administration, Information Technologies, Technology and Inno- vation Management, Information Law, Business Management, Engineering Management, Computer Engineering and Management Engineering. These programs were designed to contribute to the development of both our compa- ny and our country by enriching the aca- demic theoretical knowledge in universi- ties with current practical knowledge in the world of technology. Future Talks In the Future Talks seminars we organize for Turkcell, we bring together all Turkcell employees with researchers and practi- tioners who set global examples in their respective fields. In 2024, we held semi- nars on Quantum Technologies, Artificial Intelligence Technologies, 5G, Cyber Se- curity, Techfin, Metaverse, Digital Broad- casting and OTT, Digital Transformation and RPA. In addition, we organized sem- inars on safe structures, psychological safety and disaster preparedness of our locations for Turkcell employees during the disaster period. DigiT Masters Program The DigiT Masters Program has been devel- oped to raise awareness of and enhance the digital skills and competencies of Turk- cell employees. With a focus on people and the future, the program aims to enable employees to incorporate digitalisation into existing business and process models using agile approaches. It also seeks to encour- age the reflection of a digital perspective on existing business processes with these new digital competencies, ultimately aim- ing to establish a sustainable corporate culture of awareness. A total of 1,329 Turkcell employees submit- ted applications to take part in the DigiT Masters Program, which was inaugurat- ed in February 2024. The program was organized in four phases. In the initial phase of the program, the objective was to foster the competencies of all Turkcell employees in information technologies, with a particular empha- sis on digital transformation. In collabo- ration with Istanbul University and TRAI, synchronous and asynchronous training sessions were conducted, DigiTalks vision sessions were organized at all stages of the program, and 552 individuals who successfully completed the evaluation exam at the conclusion of the phase were awarded a certificate of achievement and were granted access to Phase 2. In the second phase, the objective was to consolidate the knowledge acquired through the LinkedIn Learning - Master Digital Transformation Training program. Simultaneously, information sharing and in-house experience transfer were fa- cilitated for the focus areas via İşin Turk- cell’cesi sessions. A total of 415 people completed the second phase. 1,329 Turkcell employees submitted applications to take part in the DigiT Masters Program TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 111 110 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Number of Turkcell Academy Trainers 2023 2024 607 583 Mentoring The internal mentoring program is de- signed to foster the professional and man- agerial skills of volunteer mentees, while also promoting a unified management cul- ture within the Turkcell Group Companies. This program enables volunteer mentors to share their experiences in a trusting and in- dependent environment, free from hierar- chical constraints. In 2024, 210 mentors and 390 mentees participated in the mentoring process, fostering a collaborative and sup- portive environment. At Turkcell, we are committed to adding value to the ecosystem by offering mento- ring support to young people and women aspiring to careers in science, technology and engineering. Our goal is to facilitate their professional development. In 2024, we provided mentoring support to 214 in- dividuals within the ecosystem, guiding their professional development. TEV We held the 'Future of the World, World of the Future Development Program' with 519 TEV scholarship recipients, who are outstanding students from universities in 81 provinces of Türkiye. Organized for the second time this year, the program, which consists of 3 mod- ules and 2 experience rooms, offered a 6-month development opportunity with various activities such as live virtual class- es, digital content and hands-on experi- ence sessions. This program, designed to support TEV's new graduate scholarship recipients in taking their first steps in their careers, aims to guide young talents at the beginning of their business life and equip them with sectoral experiences. The program has been meticulously de- signed to provide personal development and technical training, and is divided into 3 modules: 'Hello to Business Life', 'Invest in Yourself' and 'Improve Your Technique'. The program has been meticulously designed to equip students with the competencies required for the 21st century and to refine their multidisciplinary working skills. A to- tal of 140 participants successfully com- pleted the program and were awarded a Turkcell Academy participation certificate. Furthermore, five TEV scholars who com- pleted the program with 100% success were given the opportunity to participate in mentoring sessions with Turkcell execu- tives. Academy Trainer Development Program We consider the contribution of skilled Turkcell employees, who add value to our training processes with their in-depth ex- pertise in various fields, to be of great im- portance. Consequently, we prioritise the development of our Academy trainers. In addition to their company responsibili- ties, we offer the Academy Trainer Devel- opment Program to enhance the skills of our employees who work as trainers on a voluntary basis. We also share devel- opment bulletins that we prepare every quarter to deepen their expertise in their fields. Developers of the Future Since 2013, we have been providing free software, training, development and earn- ing opportunities through the Developers of the Future Program. In order to improve lives through technology and contribute to the realization of dreams of all seg- ments of society, we are eliminating in- equality of opportunities, financial impos- sibilities, insufficient resources and lack of role models, and we are striving for Türkiye to become a leading country in software development. With the Turkcell Developers of the Future Platform, Turkcell is working to strength- en Türkiye in the field of technological awareness by offering a range of inte- grated training and development solu- tions that add value to society. These in- clude the Investing in Youth, Software for the Future program, the Developers of the Future – Women in AI Program, and the Superwomen of Cyber Security with the Developers of the Future Program. For 11 years, the Developers of the Future Platform has been offering free Turkish education to all of Türkiye. Our platform has received over 10 million visits to date and has registered more than 300 thou- sand users. Since the beginning of 2024, the platform has recorded 2 million vis- its from new users. The platform offers a comprehensive collection of over 100 asynchronous training modules, encom- passing a wide range of subjects includ- ing natural language processing, machine learning, data science, cyber security, mo- bile programming, web programming, K12 education, robotic coding, and basic net- working. These training materials are also made available to participants prior to our bootcamp programs. To date, we have awarded over 280 thousand certificates to 500 thousand participants enrolled in our training programs. The platform's forum provides a space for users to seek answers to their queries from expert trainers, while also facilitating the exchange of information among mem- bers. In addition, the platform includes blogs with valuable content created by experts in the field of software to provide information about current developments and share their experiences. Strong Talents Coding the Future As a leading institution in Türkiye's software and technology ecosystem, we implement comprehensive training programs to pro- mote greater involvement of young peo- ple and women in the field of technology. As part of our commitment to empowering individuals, we offer a range of educa- tional programs in the fields of software, cyber security and artificial intelligence. These programs have a significant impact, reaching and supporting thousands of in- dividuals. As part of our Investing in Youth, Software for the Future program, we have success- fully employed 168 graduates at Turkcell Group since 2021, offering comprehensive technical training and personalised men- toring support. This program has covered a wide range of topics, including Java and UI/UX, and has facilitated connec- tions between participants and industry professionals. The Superwomen of Cyber Security pro- gram was initiated to encourage greater female participation in the cyber security sector. The program offered 120 hours of experience-oriented training to 100 female participants. The volunteer trainers, who were selected from our program gradu- ates, have provided Information Security Awareness training to more than 2 thou- sand students to date, thereby creating a significant awareness in this field. Launched in 2024, our Developers of the Future – Women in AI program is designed to equip women with the necessary skills and knowledge in the fields of artificial intelligence and machine learning. The program has attracted significant interest, with 17 thousand applications received, and we provide comprehensive guidance to our participants, offering both basic and advanced training, as well as mentor- ing support and patent awards. As part of our Developers of the Future Turkcell program, we have launched a series of training initiatives to ensure that not only our engineering teams but also all our employees master technology. These training programs, which focus on non-technical competencies, include training in Python and Cloud technologies. Distributor Development Program In order to develop strategic business partnerships for Turkcell, we implement leadership, functional expertise, tech- nology and people-oriented training and development programs for all em- ployees. These programs are organized with the participation of many different teams, such as sales, human resourc- es, finance, marketing, technology, law and customer services. The objective of these programs is to enhance the utiliza- tion of data, refine financial analysis ca- pabilities, and ensure optimal customer satisfaction outcomes. BEST Knowledge Level Assessment Exams and Experiential Learning Program In order to assess the sales-oriented awareness, knowledge and experience of managers and communication con- sultants working in Turkcell Dealer Sales Channels, we conduct knowledge mea- surement exams, known as BEST, on a quarterly basis. These exams encourage our field teams to use information re- sources such as Extra Jet, and we com- pile comprehensive reports by analyz- ing their knowledge levels on the basis of person, store, province, region and subject. The results of these analysis are then used to inform the organization of training in areas where employees need development. This process enables us to increase development awareness by identifying knowledge level differences between teams. As a result, we contrib- ute to both employee satisfaction and positive customer experience by creat- ing a more qualified and knowledgeable sales team. The integration of BEST Program scores within the Atmosfer-Stars Performance System fosters a positive competitive dy- namic among our employees, enhancing their overall productivity. To reward team members who excel in each exam peri- od, we include them in training programs that develop their competencies in retail and merchandising using an experiential learning approach. We offer our partici- pants the opportunity to learn the histo- ry of trade by observing it and reflecting it on their performance in the field with the training we organize in cities with deep-rooted cultural history such as Kon- ya, Bursa and Mardin. The BEST program continues to support the development of our sales teams on both individual and team bases. Dealer Certification Program The 'Technology Retail Certificate Pro- gram', initiated to provide the best ex- perience to individual and corporate customers receiving services from Turk- cell service points, has been successfully renewed every year since 2016 according to the competencies of the future. The program's objective is to equip the sector with a skilled workforce that aligns with Turkcell's corporate culture, mission, and vision, while keeping pace with techno- logical advancements. As of 2024, 99% of our employees in the dealer channel have successfully completed the program and obtained a certificate. Within the scope of this program, we assess employees' technical knowledge and skills, as well as their competencies, through develop- ment center application tools. We then provide support for their professional development through comprehensive training programs that are tailored to the specific needs of field employees. In 2024, we launched the 'Super Stars Certificate Program', exclusively for our top 150 store employees among Turkcell store and dealer employees. These em- ployees must have been certified for two years and successfully completed the certificate renewal process. In this con- text, our employees received a total of 42 hours of training from distinguished pro- fessors of Istanbul University on six main topics, including technology trends and digital transformation, consumer behav- ior and basic marketing, communication, relationship management and personal image, individual leadership and aware- ness, basic finance, sustainability and en- vironment. This training has enabled our employees to make significant progress in their leadership journey. 210 mentors 390 mentees participated in the mentoring process, fostering a collaborative and supportive environment We held the 'Future of the World, World of the Future Development Program' with 519 TEV scholarship recipients TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 113 112 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Safe and Healthy Work Environment In this context, we organized 25 seminars to raise health awareness throughout 2024. During Breast Health and Aware- ness Month, we conducted health checks on 30 employees, and in September, we promoted healthy living by conducting 336 eye examinations. At the same time, 27 employees participated in a blood do- nation initiative in collaboration with the Red Crescent. We provide a comprehen- sive range of services to our employees and their families, including psychologi- cal support, nutrition guidance, educa- tional resources and laboratory facilities. Notably, we have 3 equiped lactation rooms to support breastfeeding mothers. We also contribute to the quality of life of our employees by providing expert con- sultancy services on pet and plant care. We are proud to say that our Occupation- al Health and Safety Policy (OHS) is fully compliant with the Occupational Health and Safety Law No. 6331 and the ILO-OSH 2001 standard. We are dedicated to this commitment, as demonstrated by our ISO 45001 Quality Management System certificate. In addition, we stipulate com- pliance with Turkcell's OHS standards, as well as legal requirements, in our supplier contracts. We can confirm that these stan- dards are clearly presented on our corpo- rate website to all our stakeholders. In 2024, we held 75 OHS board meetings throughout the company and conducted 4,810 OHS audits in network operations. During the period, we organized 32 emer- gency drills, and according to the results of these drills, we were able to quickly re- solve any negative issues identified. In accordance with Law No. 5188 on Pri- vate Security Services, we are committed to upholding the highest standards of physical security within our buildings and facilities. All of our security team mem- bers undergo comprehensive vocational training as well as information specific to Turkcell's operations prior to the com- mencement of their duties. As Turkcell, we conduct our relations with our suppliers in the field of occupational health and safety (OHS) in accordance At Turkcell, we consider the health and well- being of our employees to be our most significant responsibility. with the legislation. Although our busi- ness partners, defined as 'Contractor' and 'Subcontractor' in our contracts, do not adhere to the OHS schedule as re- quired by legislation, we closely monitor the performance of our 'Third Party' com- panies that provide cleaning and securi- ty services according to OHS standards. In 2024, we calculated the accident se- verity rate of these companies as well and included them in our reports. During the course of 2024, no occupa- tional diseases or fatal work accidents were reported at Turkcell or any of our group companies. It should be noted that deaths caused by natural causes are not recorded, as this is not a legal obligation. We remain committed to our zero-acci- dent goal and prioritise the safety of our employees. Our objective is to enhance the well-be- ing of our employees by minimising noise levels in our workplaces. To this end, we have implemented a range of measures in our offices and data centers. Acoustic panels and double-glazed windows are used for sound insulation, and in data centers, the sound generated by equip- ment is minimized with the use of insula- tion materials. We provide our employees with a noise-free environment by creat- ing quiet working areas. We adhere to legal noise limits through regular mea- surements and replace older, more noisy equipment with newer, quieter models. In addition, we minimize environmental noise pollution by incorporating natural sound-blocking plants into the landscap- ing of our plazas. Our T.Life mobile application facilitates continuous communication with our em- ployees regarding OHS matters. We ex- pect all our business partners to comply with Turkcell Occupational Health and Safety Policy, and we guarantee this commitment through our labor contracts. Our dedicated OHS experts meticulous- ly analyze occupational accidents and OHS data, conduct comprehensive sta- tistical studies following accident reports, and regularly present this data to our se- nior management. Accident Frequency Rate 2022 2023 2024 Female 1.2 1.68 1.50 Male 1.14 1.29 1.37 Total 1.18 1.43 1.74 Workdays Lost Due Occupational Accidents 2022 2023 2024 Female 0 2 2 Male 9 2 63 Total 9 4 65 Number of Health Examinations for Recruitment 2022 2023 2024 Total 854 646 789 Number of Periodic Health Examinations 2022 2023 2024 Total 1,080 564 1,326 Accident Severity Rate 2022 2023 2024 Female 0 0.48 0.43 Male 1.46 0.26 0.25 Total 0.67 0.34 0.26 Number of Occupational Accidents 2022 2023 2024 Female 8 7 7 Male 7 10 12 Total 15 17 19 2022 2023 2024 Female Male Female Male Female Male Number of third- party work accidents 0 1 2 3 0 0 Third- party accident frequency rate 0 12.5 16.9 3.18 0 0 Number of working days lost as a result of third- party occupational accidents 0 0 3 5 0 0 Third-party accident severity rate 0 17.4 24.29 5.31 0 0 * The Accident Frequency Rate, which we use in reporting, expresses the number of occupational accidents occurring in 1 million working hours in a certain period of time. It is calculated as follows: Accident Frequency Rate = [(Total Number of Accidents in a Year / Total Working Hours) * 1,000,000] Accident Severity Rate refers to the number of days lost due to work accidents occurring in 1 million working hours in a certain period. It is calculated as follows; Accident Severity Rate = [(Total Lost Working Days in a Year / Total Working Time) * 1,000,000] Conducted 4,810 OHS audits We organized 32 emergency drills TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 115 114 | TURKCELL 2024 INTEGRATED ANNUAL REPORT MANUFACTURED CAPITAL We recognize the importance of a reliable, fast and wide coverage network for delivering a superior customer experience. TURKCELL 2024 INTEGRATED ANNUAL REPORT | 117 116 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Performance Indicator Short Term Target Medium Term Target Long Term Target 2023 Performance 2024 Performance Target Towards Current Status Increasing the number of base station sites with risk assessment 10,800 14,800 28,000 12,037 12,602 Increasing the number of processes improved as a result of risk assessments carried out at base station sites 14,000 16,000 23,200 13,306 13,419 Network Traffic (Internet) Increase (Rate in bandwidth)15 2019 2020 2021 2022 2023 2024 38% 76% 8% 27% 12% 6% 15 Total data volume: mobile and fixed 11,658 base station sites with risk assessment 6% network traffic (internet) increase rate 10,387 tower portfolio 99.87% Data Accessibility Rate Fiber internet speed up to 10 Gbps 82% network virtualisation rate Up to 1.6 Gbps 4.5G speeds Strong Infrastructure Thanks to our manufactured capital, we continue to invest in our infrastructure with the aim of adding value to our customers' digital journeys, and to offer one of the fastest 4.5G services in the world by establishing a strong access network with our rich frequency resources. As Türkiye's largest data center operator, we conduct our operations with the goal of "keeping Türkiye's data in Türkiye" and support the creation of added value for the national economy by prioritising domestic production equipment in the procurement of our network equipment. We are focusing more on our fiber infrastructure investments in order to deliver fast internet and high service quality to more households. With these efforts, we play a pioneering role in digital transformation by offering solutions to the needs of our individual and corporate customers. We recognize the importance of a reli- able, fast and wide coverage network for delivering a superior customer ex- perience. To this end, we are continual- ly upgrading our infrastructure through investments, R&D activities and innova- tive technological solutions. At Turkcell, we are committed to lever- aging cutting-edge technology infra- structures and developing local tech- nologies within our sector, particularly in the context of rapid technological advancements. With this vision, we contribute to the digital transformation of our country, while steadily increas- ing our revenues with our increasing service quality. In 2024, we contributed to Türkiye's digital infrastructure by connecting an additional 233 thousand households with our fiber infrastructure. Thanks to our expanding fiber infrastructure, we are increasing the number of fi- ber-connected base stations and fur- ther strengthening our mobile network. We effectively manage network traffic and maximise our efficiency with the investments we make and the technol- ogy applications we develop, in order to meet the exponentially increasing digital needs of our customers. We are proud to offer highly efficient solutions to our customers without compromis- ing our service quality even during peak network periods. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 119 118 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Base Stations and Public Health As a company, we prioritise public health. We therefore ensure that the electromagnetic field intensity values of our base stations are kept below the limits set by the Information and Communication Technologies Authority (ICTA). These values are based on the limits adopted by the World Health Organization (WHO) and set by the International Committee on Non-Ionising Radiation Protection (IC- NIRP), and are set at lower levels in accordance with the precaution- ary principle. Research indicates that radio signals at or below the ICNIRP limits are not harmful to human health. The electromagnetic field limits applied in Türkiye are set at 70% lower than ICNIRP's global standards, in a more cautious manner, and only 20% of these limits are applied to each device. Furthermore, these values in our country are determined with a stricter sensitivity that corresponds to approx- imately 20% of the limits applied in European Union countries. We comply with the regulations published by the ICTA in the instal- lation and inspection processes of our base stations. Prior to instal- lation, all details regarding power values, antenna specifications, lo- cation and environment are reported to the ICTA for approval, after which our base station sites are installed and commissioned. When our network starts to provide service in the field, electromagnet- ic field (EMR) measurements are carried out within the first week by independent organizations accredited by the ICTA, and the results are submitted to the ICTA. In addition, the ICTA conducts regular in- spections and measurements at the sites to ensure compliance with safety standards. A key requirement is the absence of any living ar- eas within the 'Safety Distance' around the base station, and the con- figuration of the stations to ensure they do not exceed limit values. In the event of non-compliance with BTK criteria, sites are silenced and serious sanctions, up to and including dismantling, are applied when necessary. We evaluate our impacts on public health with the utmost sensitivity and work meticulously beyond the criteria set by the relevant legal authorities. The fact that throughout 2024, we have not experienced any criminal proceedings or negative incidents related to the health impacts of our products and services is an indication of our sensitivity in this area. Base Stations We manage our base stations equipped with the latest technologies within a framework compliant with national reg- ulations and international standards, pri- oritizing the protection of public health and the prevention of visual pollution. The base stations in our network are equipped with the most advanced features to showcase the capabilities of the technology we offer. In addition, thanks to the increasingly compact size of our base stations, which can offer multi-technology and multi-band support, we manage their environmen- tal impact in an optimum way by being eco-friendly manner with lower energy consumption. In order to ensure the safety of our base stations and field teams, we carry out regular risk assessments and aim to minimize risk factors by making im- provements with the results obtained from these processes. We recognize that occupational health and safe- ty risks, including working at heights, electrical works, excavation activities and vehicle use, may be encountered in our field operations. We are able to take measures in a proactive way thanks to the working principles and action plans that have been estab- lished in this context. As of 2024, we have inspected 5 thou- sand sites, prepared risk analysis forms for 700 sites and revised and repaired 100 sites to provide healthier working conditions. These meticulous efforts are aimed at ensuring that our sites are safe areas for both our employees and our environment. In addition, we ensure that base station sites are efficient, healthy and environ- mentally friendly by considering the harmony of human, environment and telecommunication dynamics through- out the country with the ‘Network Tech- nologies Geographical Risk Analysis Reports’ we have developed. These re- ports support our operational process- es by contributing to easier and more effective planning of field work periods. Towers Global Tower, Türkiye's leading tower company and one of our subsidiar- ies, operates in three countries. Global Tower provides a range of services to customers in the telecommunications, radio and TV, internet service provider, energy and public institution sectors. These include tower leasing, build-sell and maintenance. The company has recently started to offer solutions in the field of satellite services, as part of its end-to-end service approach. Glob- al Tower currently offers closed circuit satellite services at over 2 thousand points through its own infrastructure with geographical redundancy, and aims to increase its product range and service diversity by following the trends in the satellite industry. As of the end of 2024, Global Tower has a tower portfolio of 10,387 towers, portfolio distribution is as follows; Türkiye: 9,436 (owned: 5,004, right of use: 2,175, contract management: 2,257) Belarus: 836 (right of use) TRNC: 115 (right of use) Mobile Network Infrastructure Our mobile network infrastructure consists of base stations and technological equip- ment designed in an intelligent and flexible architecture for coverage and capacity management. Thanks to the coverage and capacity solutions we provide with our base stations, which form the basis of our telecoms business, we are constantly mak- ing improvements to increase the accessibility and durability of our services. Strong infrastructure and superior service quality Drawing on 30 years of telecommunications experience, we are com- mitted to delivering reliable and efficient service to our customers through our advanced digital capabilities and robust financial man- agement. Our robust infrastructure and commitment to service excel- lence are pivotal to the success of both Turkcell and our stakeholders. In line with this vision, we closely follow the latest technologies, devel- oping and implementing world-class applications in our country. As well as supporting national development through our contributions to domestic technologies, we also represent our brand on the glob- al stage by participating in international projects. As Türkiye's largest data center operator, we offer environmentally friendly data centers equipped with modern technologies, prioritising energy efficiency and providing innovative technological solutions, serving not only our country but also the countries in the region. This approach demon- strates both our leadership in technology and the strength of our re- gional influence. We manage our base stations in accordance with values that exceed national and international standards, reflecting our commitment to envi- ronmental and public health priorities. While optimising our network in- frastructure with the aim of providing the best service to our customers, we always prioritise both our environmental and social responsibilities. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 121 120 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Telco Cloud The work completed to date has resulted in a 82% growth in our mobile and fixed core network functions within the Telco Cloud infrastructure. The virtualisation transformation has enabled us to achieve efficiency in our investments and oper- ations by leveraging a common cloud infrastructure for network applications. This allows us to more easily apply the op- portunities provided by emerging cloud technologies to our network. In addition to our VM (Virtual Machine) based Telco Cloud infrastructure, we are continuing to expand our Container Platform infrastruc- ture with new network services. This infra- structure allows us to seamlessly integrate next-generation network functions into our network, while maintaining the ongo- ing Telco Cloud transformation to ensure compatibility with 5G technology. Innovative IP and Transport Network Applications The latest high-capacity and innovative data transmission capabilities have been developed to help manage the increas- ing volume of network traffic at the IP and Transport layer. In this context, we are proud to announce that we have achieved a significant mile- stone in our network, marking the longest distance in the world in this field. This was achieved by performing a test at 800Gbps speed over a distance of more than 2,500 km in the Transport network. Furthermore, we successfully connected 800Gbps interfaces at the IP layer over a 1.2 Tbps carrier for the first time in the world. We also realized an end-to-end 800Gbps access application, including IP and Transport layers. Network Virtualisation Rate (%) 2018 2019 2020 2021 2022 2023 2024 2025 Target 18% 41% 51% 60% 65% 73% 82% 90% Connected Vehicles and Mobility Solutions As vehicles such as cars and trucks have become connected in recent years, we have received requests from our corpo- rate customers to connect in this direc- tion. Accordingly, we are completing our integrations so that the SIM profiles of connected vehicles can work integrated with our network in accordance with the new regulations in Türkiye. As a result, we are well positioned to provide services such as telemetry data required by ve- hicle manufacturers, in-vehicle informa- tion, entertainment and HD voice services desired by end-users, and B-Call and C-Call, which enable special customer services to be called from vehicles. In this context, the production and remote download of multiple eUICC profiles was successfully implemented for the first time in Türkiye in 2023. Technologies such as autonomous driving via 5G are also being tested with various vehicle man- ufacturers. As part of the TOGG launch, the camera data received from the ve- hicle was for the first time subjected to image analysis on Turkcell's servers, and the user's emotions and situation were assessed. In 2024, we have completed our work on remote SIM downloading in accordance with GSMA's M2M (SGP.02) and Consum- er (SGP.22) standards, and have started to offer this technology to different ve- hicle manufacturers. These significant advancements underscore our ongoing commitment to shaping the future of con- nected vehicle technologies and deliver- ing cutting-edge solutions to our valued customers. One Number Service In 2022, Turkcell customers were able to receive calls and data services with their wearable devices with cellular support (Apple Watch) even if their phones were not with them. In 2024, we implemented this application for Samsung and Huawei Watch devices, again for the first time in Türkiye, and exclusively at Turkcell. Service Operations Center (SOC) Turkcell Service Operations Center (SOC) is dedicated to maintaining infrastructure and service continuity at the highest lev- el 24/7. We consider it a critical priority to identify potential failures in the network and services in advance and to produce permanent solutions through preventive actions in order to provide the highest quality service to our customers. While the need for immediate interven- tion and error-free operation to ensure service continuity increases every day, our rapidly growing and complex network and the number of devices and services under management require more human resources. The Zero touch transformation, enabling complete and end-to-end auto- mation of network and service manage- ment, has become a critical requirement for rapid service delivery and ensuring the economic sustainability of the wide range of services offered by digital service pro- viders. Thanks to the digitalisation efforts we initi- ated in previous years, we have succeed- ed in automating a large portion of our access network monitoring and fault no- tification activities. We have encouraged innovation through Hackathon events and developed mobile application solutions to increase service continuity and make our operational processes faster and more er- ror-free. These solutions not only enhance our operational efficiency but also play a pivotal role in the process of spreading our digitalisation culture. By engaging proactively with international platforms, we are making steady progress towards our goal of shaping global stan- dards and becoming a leading operator in the field of Zero Touch transformation. In this direction, we have initiated our infra- structure DevOps transformation efforts in cooperation with global solution provid- er technology companies. Following the implementation of these measures, our objective is to set the standard within the sector by offering our customers a faster, more reliable and uninterrupted service. Investment in Domestic Equipment In line with our mission to create value for our country, we are supporting Türkiye's technological development and digital- isation process with our efforts to develop domestic technology and equipment. We continue to make a difference in the market by applying innovative technologies that have not been used in Türkiye before and that bring efficiency to our infrastructure. We actively share the knowledge we have gained from our involvement in in- ternational platforms with domestic and national product developer companies in the technology ecosystem of our country, leveraging our combined experiences. This approach enables us to provide guid- ance and support to our companies, help- ing them to develop competitive products that meet expectations in a timely manner. Our localization approach involves the ex- ecution of development projects in coop- eration, in addition to our ongoing support for the advancement of domestic prod- ucts, aligning with the level of today's 4.5G technology and future generation tech- nologies such as 5G. We are playing an active role in localiza- tion efforts in a variety of areas, including 5G base stations, core networks, radio- link, management system software, virtu- alisation platforms, base station anten- nas, energy products, and cyber security software. These efforts are supported by numerous projects and collaborations, particularly R&D projects funded by the Ministry of Industry and Technology, the Ministry of Transport and Infrastructure, the Information and Communication Tech- nologies Authority (BTK), and TÜBİTAK. Finally, we are continuing to work on the development of domestic 5G infrastruc- ture with the companies participating in the R&D Support Program, which was opened by the Presidency of Transport, Maritime Affairs and Communications Research Center (UDHAM) in April 2023 and launched on November 21, 2023. By signing cooperation agreements with companies, we have developed the fol- lowing: 700/800/900/900 MHz Remote Radio Unit (RRU), 1800/2100/2600 MHz Remote Radio Unit (RRU), Baseband Unit (BBU), Central Unit/Distributed Unit Soft- ware (Central Unit/Distributed Unit-CU/ DU), Core Network (Package). We con- tinue to collaborate closely with our do- mestic manufacturers on key topics such as Mobile DPI (Deep Packet Inspection), Virtualisation and End-to-End Orchestra- tion, Cyber Anomaly Detection (2/3/4/5G), Data Masking, 5G Element Management System (EMS), Integrated 5G Cognitive Network Management Platform. In our Tel- co Cloud infrastructure, we are committed to increasing our high-capacity domestic server investments. Strong Fiber Infrastructure At Turkcell, we are committed to facilitating universal access to the internet by offering fast, reliable and comprehensive services to our customers. Building on our existing fiber backbone in 81 provinces across Tür- kiye, we are committed to investing contin- uously to bring real fiber internet to homes all over the country by launching a fiber mobilisation. In 2024, we successfully ex- tended our fiber infrastructure to 233 thou- sand more households, bringing the total to 6 million households. We are aware of our responsibility to expand our infrastruc- ture at a time when the need for internet and access to information is increasing. Our advanced fiber infrastructure, rein- forced with cutting-edge technologies, enables us to deliver internet access with speeds of up to 10 Gbps, utilizing the glob- ally accepted G-PON/XGS-PON tech- nology. According to Speedtest data, the average fixed internet speed in Türkiye is 48.01 Mbps, and we continue to connect our customers to the internet at world- class speeds. In 2024, the share of cus- tomers who preferred our fiber tariffs with speeds of 100 Mbps and above in total fiber exceeded 41%. In areas where fiber cannot reach, we provide solutions with our Superbox product, which offers inter- net at fiber speed over our mobile network. We are proud to reach more than 680 thousand users with Superbox, which pro- vides same-day installation convenience. We are pleased to offer our corporate customers special solutions to support their digitalisation. As the first operator to launch our SD-WAN service, we offer security and access services with a sin- gle service. We enhance the efficiency of our customers by creating solutions that address increasing costs. In addition, we continue to meet the changing needs of our corporate customers with our services that include the latest technologies such as Enterprise Wi-Fi. Our Wi-Fi services in- clude innovative solutions such as SMS in- tegration, logging and Wi-Fi 6 technology. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 123 122 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Powerful Spectrum As Turkcell, we hold the largest spectrum license for mobile communications in Tür- kiye. With 34% and 68% more spectrum resources than competing operators, we are able to offer our customers superior service quality. The rapid technological transformation in the telecoms sector and the high cost of infrastructure investments require us to plan our spectrum strategy in a future-proof and technology-neutral manner. Our broad spectrum resources have proven the quality of our service, with a maximum speed of 1.616 Gbps in the cur- rently widely used 4.5G technology, and we aim to maintain this success in 5G technology. In addition to national projects support- ed by TÜBİTAK, we have also undertak- en various international projects as part of our R&D activities. We have included 5 new projects to our R&D projects in the Horizon Europe and SNS (Smart Net- work and Services) programs funded by the European Union, bringing the total number of ongoing active projects to 12. In these projects, we are focusing on 6G-oriented projects and applications in 2024, with the vision of being the de- signer and implementer of these trends that will transform both our own sector and vertical sectors in the near future. We conducted R&D studies in which we aim to develop innovative solutions on the na- tional/international platform. In addition, we play an active role in in- ternational standard-setting and sup- porting organizations in order to closely follow developments in the industry, con- tribute to critical issues and steer techno- logical transformation. In this context, we Refarming In the light of the increasing 4.5G data traffic, it is necessary to in- crease the spectrum resource allocated to 4.5G technology. To this end, we are planning and implementing inter-technology refarming activities in line with our strong and flexible spectrum strategy. By the end of 2024, 43% of our 4.5G capacity installed in the network was from the 2100 MHz band, which was previously allocated to 3G and refarmed to 4.5G. This strategic move has enabled us to enhance our network capacity, thereby addressing the mounting demands of data usage and enhancing the customer experience. High-speed, high-quality, inclusive services and access to information and the Internet for all We are committed to investing in and enhancing our network and infrastructure to deliver faster, more inclusive and higher quality ser- vices to our customers. We maintain our high network accessibility, with a data availability rate of 99.917% calculated on the basis of traf- fic loss in our mobile network and a low interruption rate of 0.301% in mobile voice calls Data Centers Our commitment to keeping Türkiye's data in Türkiye has enabled us to maintain our leading position in data center operations. Our 7 data centers, 4 of which are new generation, offer a total of 36 thousand square metres of white space with an ac- tive installed capacity of 46.7 MW. As the leading provider of digital transformation services in Türkiye, we offer storage and cloud services to approximately 4 thou- sand corporate customers, providing cost advantages and helping them increase their operational efficiency. We ensure business continuity by providing 24/7 un- interrupted service, and in extraordinary situations, we solve problems within sec- onds with the remote support of expert Turkcell engineers. In 2024, we completed the construction of the 3rd module at An- kara Temelli Data Center, and we aim to complete the 2nd module of the European Data Center in the first quarter of 2025. We also aim to complete the 4th module of the Temelli Data Center and the 3rd module of the European Data Center in the 3rd quarter of 2025. In 2025, we plan to start construction of the 5th (the last one) module of the Ankara Temelli Data Center. We will continue to make the necessary investments in our data cen- ters at full speed in order to consolidate our leadership further. In addition, in 2024, we established TDC Veri Hizmetleri A.Ş. to operate in the fields of data process- ing, data analysis, data storage, server hosting, server rental, cloud solutions and computer programming. We attach great importance to cyber se- curity, which is one of our top priorities in our data centers, and we invest in domes- tic technologies. In today's complex cyber threat environment, our layered cyber se- curity approach is critical. As Turkcell, we offer our customers 24/7 managed ser- vices in our data centers with our virtual and physical cyber security services. have directly contributed to the shaping of the industry by being appointed to critical leadership positions thanks to our achievements in a short period of time: — We were among the founding mem- bers of the Focus Group on Artificial In- telligence for Telecommunication Net- works (FG-AI4NN) established within the International Telecommunication Union (ITU) and assumed the chair- manship. — Under the umbrella of the Turkish Stan- dards Institution (TSE), we established a mirror committee in cooperation with TÜBİTAK and assumed the chairman- ship of the committee. It is also among our priorities to trans- form the know-how and technical gains we have achieved as a result of these comprehensive studies into scientific out- puts and intellectual property rights that guide the sector. In this context: — We protect our technological innovations by increasing our patent applications. 16 This value is an upper limit and refers to the theoretical peak values. The actual speed that customers experience may be influenced by various factors, including the terminal's max- imum support capacity, its location relative to the base station, the configuration of the base station, the current traffic density in the net- work, and the number of subscribers receiving service from the field. — We contribute to the academic lit- erature with our articles published in prestigious journals scanned in the SCI index. — We continue to share information by making presentations and poster pre- sentations at the most prestigious con- ferences of the sector. At Turkcell, we are committed to the continuous development of our global cooperation ecosystem, which includes strategic partnerships with R&D centers, universities, technology suppliers, and leading industry players in various sec- tors. In addition, in 2023, when interna- tional publication and intellectual prop- erty acquisition targets were pursued more focused, Turkcell 6GEN-LAB project, entitled to be funded within the frame- work of TÜBİTAK 1515 (Pre-Specified R&D Laboratory Support Program), started to provide outputs in the light of innovative R&D activities. Our new generation data centers in An- kara-Temelli, Kocaeli-Gebze, İzmir and Tekirdağ-Kapaklı (Europe) were con- structed to the highest possible earth- quake level, with the system rooms built to 120 minutes fire resistance. Solar panel applications in our data centers in Ankara and Tekirdağ resulted in 2 GWh of solar electricity being generated in 2024. With our LEED (Leadership in Energy and Environmental Design) Gold certified data centers, we aim to set a pioneering example in technology and environmen- tal impact. We offer services at global standards in our data centers with many internation- al certificates: ISO 27001, ISO 9001, ISO 20000, ISO 50001, ISO 10002, ISO 22301, ISO 45001, ISO 27017, PCI-DSS, ISAE3402. ISO 50600 Design certification has been obtained for our Temelli and European data centers, and Operation certifica- tion studies are ongoing. We have Uptime Data Centers Localization Rate Gebze Data Center 50% İzmir Data Center 50% Ankara Data Center 65% European Data Center 75% Institute Tier III Design and Facility certifi- cates in our new generation data centers (Gebze, Temelli, İzmir, Europe). In addition, we have Uptime Institute Tier III Opera- tional Sustainability Gold certificate in our Gebze and Temelli data centers. In light of the significance we attribute to domestic production and localization in technology in the construction of our data centers, we are committed to enhancing our localization rate in the data centers we build. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 125 124 | TURKCELL 2024 INTEGRATED ANNUAL REPORT INTELLECTUAL CAPITAL We believe that an innovative business culture based on strong performance in systems, processes and technology is necessary for our strategic initiatives and business model to achieve the most efficient and effective results. TURKCELL 2024 INTEGRATED ANNUAL REPORT | 127 126 | TURKCELL 2024 INTEGRATED ANNUAL REPORT 1,712 R&D employees 4,820 patent applications 74 incubator company co-operation 8 city hospitals for which we provided technological infrastructure 12.5 million customers using chatbot With a total of 1,712 R&D employees, we transform our corporate culture with innovative solutions that create value, and we adopt the principle of integrating these solutions by our stakeholders. nication technologies, and to shape the digital world of the future. Our services are developed and continuously im- proved by our engineers, ensuring that we produce innovative solutions that meet the needs and expectations of our customers. Our close relationship with our customers and our advanced ana- lytical capabilities enable us to offer the right products to the right target audi- ence at the optimum time and price. Our big data analytics applications allow us to provide customised offers to 43.1 mil- lion customers. Innovation and Entrepreneurship As Turkcell, we are dedicated to main- taining our commitment to the principles of sustainability, creativity and efficien- cy in our research and development (R&D) activities. We are also committed to developing products, services and in- frastructures that take into account the economic, environmental and social im- pacts that may arise from these activi- ties. We position technology as a fun- damental element of environmentally sensitive and sustainable development that enriches human life, and we carry out activities to reduce our carbon foot- print while developing our products, services and infrastructures. Our people-oriented activities are fo- cused on developing high value-added products and services, and transform- ing our corporate culture through the in- novative solutions produced by our 1,712 R&D employees. We ensure that these solutions are adopted by stakeholders in our ecosystem, and we continue to contribute to society and the econo- my by maintaining our leading position in the telecommunications sector. Our innovative approach, underpinned 2020 2021 2022 2023 2024 Number of R&D Employees 1,295 1,398 1,285 1,505 1,712 In this reporting period, as different from previous periods, all Turkcell Group companies are included in the calculation of R&D metrics. Therefore, the figures of R&D metrics may differ from the previous period's reports. Continuously Developing Intellectual Capital We believe that an innovative business culture based on strong performance in systems, processes and technology is necessary for our strategic initiatives and business model to achieve the most effi- cient and effective results. Innovation and technology are the main catalysts of sustainable development, which is the most fundamental goal of today's world. Turkcell's intellectual as- sets are rooted in innovation, unique expertise, entrepreneurial spirit, robust brand strength, and a comprehensive portfolio of products and services. We integrate innovative technologies with our superior digital competencies and analytical capabilities to enhance our products and services. The value cre- ated by our technological expansions enables us to produce qualified solu- tions with commercialisation potential in both national and global markets. Turkcell is committed to developing in- novative projects in areas such as arti- ficial intelligence, voice analytics, robot assistants, robotic process automation, big data analytics, blockchain solutions, AIOps/DevOps, cyber security, innova- tive payment technologies, quantum technologies, 5G and Beyond commu- by creativity, drives our commitment to continuously enhance our corpo- rate culture. We value the opinions and suggestions of all our stakeholders and adopt an encouraging approach to help them realize their initiatives and in- novative ideas. Thanks to the value created by our technological expansions, we are able to produce qualified solutions in both national and global markets. With the added strength of being the Turkcell of Türkiye, we are realizing initiatives in many sectors in line with our vision of 'ser- vice-oriented experience provider'. We are involved in a wide range of activities to support the advancement of technol- ogy, including conducting R&D projects in collaboration with universities and tech- nology transfer offices, participating in value-added collaborations with tech- nopolis companies, and contributing to national and international projects that are supported by various entities. Our commitment to technological advance- ment is further emphasised by our in- volvement in technical publications, con- ferences, and training activities aimed at spreading knowledge and expertise in the field. We are at the forefront of setting national and international stan- dards, and we take on leadership roles in working groups for innovative technolo- gies such as autonomous networks and quantum technologies. In addition to the innovative technology products and services developed in our R&D companies and functions, we share our know-how on their areas of use with our ecosystem in order to support research and technological develop- ments in our country. In this context, we provide intensive mentoring and train- ing support to the Turkcell ecosystem. Performance Indicator Short Term Target Medium Term Target Long Term Target 2023 Performance 2024 Performance Target Towards Current Status ISO 27001 Certification Annual target Certification renewal Certification renewal ISO 27001 Certification renewed ISO 27001 Certification renewed TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 129 128 | TURKCELL 2024 INTEGRATED ANNUAL REPORT 2020 2021 2022 2023 2024 Cumulative Number of National Patent Registrations 714 830 983 1,037 1,129 Number of National Patent Applications 562 585 357 554 606 2020 2021 2022 2023 2024 Number of Applications to National and International Funded Projects 9 10 10 8 26 Number of HORIZON Projects Applications 15 9 11 22 35 2020 2021 2022 2023 2024 Number of TUBITAK Supported University Collaborations 5 5 7 9 18 Number of Collaborations with Incubation Companies 10 11 7 10 17 Turkcell collaborates with universities and research institutions on numerous R&D projects conducted within the company. Project ideas and needs in line with our strategic focus areas are evaluated, innovative solutions are developed accordingly, and studies that will provide added value at both national and international levels are implemented. For instance, in 2024, we conducted joint research with Özyeğin University on the energy efficiency of data centers. In this project, we pio- neered the application of reinforce- ment learning techniques to determine the most economical air conditioning settings that would not compromise environmental sustainability. In line with our strategic focus, we have also con- ducted studies with Istanbul Technical University on the Quantum Comput- er Hardware Information Processing project, and we have collaborated with the University of Edinburgh on joint studies focusing on 6G and AI issues. We maintain our leading position in the sector by making national and interna- tional patent applications within the scope of the innovative products and services we develop. We continue to strengthen our competitive advantage by analyzing current technologies and sector trends. We contribute to Tür- kiye's technological development by sharing our experience and expertise in intellectual property rights with uni- versities, incubation companies, SMEs and business partners. Turkcell Technology is the leader in its sector in Türkiye, with 4,820 national and 294 international patent applica- tions and 1,129 registered patents since 2007. In 2024, we filed 606 new national patent applications under the name Turkcell Group. In order to ensure that Turkcell and the companies in our ecosystem play an active role in international proj- ects, we participate in the boards of two important clusters under the EU- REKA umbrella: ITEA4, which focuses on software technologies, and Celtic Next, which focuses on next generation communication-telecom infrastruc- tures. The funding support provided in these projects is evaluated by TÜBİ- TAK-TEYDEB and contributes to the re- alization of innovative projects. We played a key role on a global scale by coordinating international activities and managing national projects in the iCare4NextG-Integrated Care for Next Generations (iCare4NextG-Integrated Care for Next Generations) project. This project was initiated in 2021 and com- pleted in 2024 within the EUREKA-Celt- ic Next cluster. This project, which in- volved 17 stakeholders from Canada, Portugal, Hungary, South Korea and Ukraine in addition to Türkiye, aimed to develop an innovative platform in the field of smart health technologies. Turkcell Technology conducted studies in artificial intelligence for cardiologi- cal rehabilitation. We are committed to strengthening our international collaborations by in- creasing our project applications on an annual basis, with a particular focus on the Horizon Europe main program and sub-programs. These are directly supported by the European Commis- sion through substantial grant funding. Thanks to this prestigious program, to which we made 35 applications in 2024, we have the opportunity to de- velop joint projects with globally valu- able companies and produce innova- tive solutions. We are committed to fostering the growth and development of innova- tive projects through our collaboration with incubation companies situated within Technoparks. With the guidance of the Ministry of Industry and Technol- ogy, we contribute to the sustainable growth and development processes of these companies, strengthen the eco- system through joint R&D projects, and pioneer the commercialisation of do- mestic technologies in our country. In addition, through these collaborations, we create a platform that enables en- trepreneurial companies to open up to global markets. In this context, compre- hensive studies were carried out with the natural language processing team within the scope of cloning the voice of ALS patients with Voiser company lo- cated in Kocaeli University Technolog- ical Development Zone. Our human resources are integral to our R&D and innovation strategies. In this context, we provide academic de- velopment opportunities to research- ers working in processes. To this end, we enter into program-based agree- ments with various universities on an annual basis, offering master's and doctoral programs to our employees. We provide financial sponsorship and procedural support to our employees who successfully complete the evalua- tion process of the program they have chosen. We also have a Digit Masters program designed to improve the digital skills of Turkcell researchers, to bring digital- isation and agility to processes, and to transform this perspective into a sus- tainable corporate culture. We collab- orate with prestigious institutions such as Boğaziçi University, Istanbul Univer- sity, LinkedIn Learning and TRAI to in- crease the digital competencies of our employees. In addition, we facilitate in- teraction between our employees and the technology community through panels hosted by Turkcell. In line with our vision of leading the production of new technologies, in 2024, 30 academic, 347 technical pub- lications and 177 national/international presentations, product presentations and speaker participation were made on national and international plat- forms, many academic panel orga- nizations were managed, and great contributions were made to the dis- semination of technology. Turkcell is committed to playing an ac- tive role in setting global standards as part of its technology leadership mis- sion. We pioneered the establishment of an artificial intelligence-focused project group within the International Telecom- munication Union (ITU) and currently serve as the chairman of this platform, emphasising the importance of artifi- cial intelligence in mobile network inte- gration. In addition, we are leading the establishment of the Quantum Technol- ogies Mirror Committee in cooperation with the Turkish Standards Institute (TSE) and TÜBİTAK with a view to supporting the development of quantum technolo- gies in Türkiye in accordance with inter- national standards. These endeavours underscore Turkcell's commitment to fostering local and national technolog- ical advancements, while affirming its leading position on the global stage. Turkcell offers a range of incentives for employees involved in national and international projects and academic activities in technology-oriented deep research. These activities add value to the sector and society by ensuring indi- vidual development and the spread of research and innovation culture. In line with our strategic focus, we have also conducted studies with Istanbul Technical University on the Quantum Computer Hardware Information Processing project, and we have collaborated with the University of Edinburgh on joint studies focusing on 6G and AI issues. 606 new national patent applications TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 131 130 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Value Creation by Use of Open Source Code At Turkcell, we consider open-source software to be a matter of significant importance. During the design stage of new projects, we conduct comprehen- sive analysis and trials of open-source software and systems that could po- tentially replace commercial products. In instances where the suitability of open-source software is confirmed, we make a conscious business decision in favor of its use. Beyond the advantages of licenses management and cost, open-source systems also contribute to the develop- ment of high-quality and secure soft- ware, eliminating vendor dependency. At Turkcell, we have successfully im- plemented numerous significant open- source code transformation projects in recent years. Drawing on the expertise we have gained from these projects, we have expanded our involvement in open source, taking on roles not only as users but also as developers. In addition, we actively share our knowledge and experience in open- source code with communities, gov- ernment organizations and the private sector. In this context, we have partic- ipated in events such as Open Source Code Conferences and Open Source Software Sector Workshops, and we have published articles and presenta- tions on platforms such as Medium and Geleceği Yazanlar, thereby ensuring that our contributions in this field reach a wide audience. Paycell R&D Center Paycell R&D Center is Türkiye's new generation technological finance plat- form. It carries out innovation-focused research and development activities on payment systems and mobile pay- ment technologies. Paycell, in line with its vision to lead the sector in the transition to a digi- tal society with distinctive customer experiences and innovative payment solutions, continues to create payment solutions with a quality service ap- proach, continuously creating value for customers and all stakeholders. Pay- cell, a rapidly expanding techfin entity, has been recognized for its achieve- ments by obtaining the R&D Center certificate from the Ministry of Industry and Technology in November 2022, in conjunction with its strategic invest- ments in technology and innovation. In line with the R&D Center's ongoing activities, there are currently 10 projects underway, with 1 of these being sup- ported by the European Union (CELT- IC-NEXT) since November 2022. In terms of R&D activities, a total of 14 national patent applications have been submit- ted, 8 of which were made in 2024, and a total of 36 national and internation- al academic publications have been made, 15 of which were made in 2024. In addition, two PhD employees are in- volved in undergraduate and graduate courses in computer engineering and similar disciplines at various universities. Since its establishment, Paycell has prioritised research and development (R&D) and technology, demonstrating a commitment to continuous growth and investment. With a team of over 136 researchers and engineers, Paycell is committed to leading research, devel- opment and innovation in the techfin sector in Türkiye. Our goal is to set an example for other companies in our country. Innovative products and services de- veloped through engineering stud- ies carried out in Paycell technology teams are categorised under the fol- lowing groups: — Smart payment solutions — Value-added services — Artificial intelligence, big data analy- sis and solutions In order to ensure the long-term sus- tainability of Paycell's research and innovation culture, a range of studies are conducted. These include the proj- ect life cycle of technological finance, the development of new ideas, univer- sity-industry collaborations, person- nel training, support for postgraduate studies, applications to national and international funds, and national and international patent applications. Digital Service Portfolio Digital Services and Solutions We are committed to delivering a valu- able proposition to our users through our digital services and solutions, while continuously updating our product portfolio to align with user needs. All of the services we produce require differ- ent technical infrastructure, skills and expertise. We are committed to pro- viding comprehensive communication services and are equally dedicated to the development and delivery of digi- tal services. This strategy has enabled us to develop numerous local digital services, supported by a team of over a thousand engineers. We have also taken significant steps to strengthen our competitive position in the global market by transforming these digital services into new large companies. Each of our BiP, Lifebox, TV+ and Fizy brands has been strategically posi- tioned to compete on a global scale. This unique structure enables each brand to continue operating with great- er efficiency and focus, leveraging its own distinct organizational framework. In 2024, we achieved an increase of 13.4% in total Digital Services revenues and 10.6% in digital OTT service reve- nues. We continue to prioritise unique, active and organic users in our digital services, leveraging a growth strategy that is both sustainable and focused on profitability. We are at the forefront of society's digital transformation, offering a range of digi- tal services such as video conferencing, email, instant messaging, TV, cloud stor- age, identity solutions, digital advertising, gaming services and music platforms. These services have been developed by our team of Turkish engineers and soft- ware developers. To ensure widespread accessibility to this digital transformation, we leverage our advanced analytical capabilities and continuously enhance user satisfaction by accurately aligning the most suitable services with the needs of our users. We also aim to make a sig- nificant contribution to the localization rate in technology with these solutions. In addition to contributing to the national economy through self-sufficient technol- ogy solutions, we specialize in designing global brands and technologies that we export digitally from our country to the world. Our primary goal is to contrib- ute positively to Türkiye's economy and reputation by creating economic value through the data security of individuals and institutions in our country and our own data. Address for Secure Communication: BiP Developed by Turkish engineers, BiP, Türkiye's instant communication plat- form, has reached more than 120 million downloads in app markets. The appli- cation's objective is to provide compre- hensive communication solutions for its users, offering features such as one- to-one and group messaging, call and video call options. BiP offers its users a range of features including information and entertainment content, accessible via the 'Discover' and 'Channels' tabs, the 'Status' tab for sharing daily memo- ries, an 'Emergency Button' for disaster situations, and fun games. BiP caters to a diverse user base, offering services not only to Turkcell customers but also to users of all operators in Türkiye. Nota- bly, all Turkcell customers and Vodafone İletişim Pass users can access BiP with- out exhausting their data packages. BiP's primary objective is to deliver an unparalleled experience to its users, underpinned by cutting-edge tech- nology. In 2024, we have made signif- icant advancements to enhance the performance and user-friendliness of the application. These updates include a revamped search infrastructure, the introduction of new features, and the integration of Discover services into our core communication functions. Our commitment to ongoing development and refinement ensures that we remain at the forefront of innovation. 13.4% digital services total revenue growth 10.6% Digital OTT service revenue TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 133 132 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Open Room for Life with lifebox! lifebox is a digital platform that facili- tates the secure storage and sharing of photos, videos and documents. It offers a personalised experience for storing happy memories safely and easily. life- box has a global appeal, with users in Türkiye and beyond. lifebox, a Turkcell technology, is a digi- tal application that serves both Turkcell customers and customers of all op- erators.The main value proposition of lifebox is its cloud storage functionality, and it also offers the ability to search by person, location, time and objects. life- box's unique feature is its ability to au- tomatically create stories, albums and collages from photos, ensuring that contact information is not lost in any adverse situation or during a phone change by backing up contacts. lifebox offers a range of features de- signed to enhance the user experience, including a file backup feature and the ability to edit online office documents. The 'Free up space on my phone' feature allows users to efficiently free up mem- ory space by removing items that have been backed up both on their phones and on lifebox with a single click. 2020 2021 2022 2023 2024 Number of fizy content (million) 33.5 35.4 43.0 56.3 78.0 2020 2021 2022 2023 2024 lifebox Paid Subscribers (thousand) 910 1,319 1,838 2,133 1,686 You can access the products, services and detailed information we offer within the scope of lifebox via www.mylifebox.com. You can access the products, services and detailed information we offer within the scope of TV+ on www.tvplus.com.tr. Türkiye's Digital Music Platform: fizy fizy is a leading digital music platform in Türkiye, offering a personalised music experience to its users. By com- bining a vast content archive with investments in artificial intelligence, fizy aims to provide a unique and en- hanced listening experience. In addi- tion to an ad-free and uninterrupted music experience, fizy Premium users can listen to their songs in high sound quality and view the lyrics, as well as access their content offline. In 2023, fizy expanded its offering to include podcast content, further enhancing its user experience. By teaming up with leading podcast content distrib- utors such as podfresh, podcastbpt, and podbee, fizy has successfully TV Joy is Everywhere: TV+ TV+, Türkiye's first and only digital plat- form in terms of television viewing ex- perience, is redefining the television industry. TV+, which has become the 'platform of platforms' in IPTV broad- casting with its collaborations with different digital broadcasting plat- forms, continues to play an important role in the process of digitalising the user experience by enabling users to access the content they want, when- ever and wherever they want. Its market share is growing steadily, and TV+ is currently ranked 4th in the IPTV market, with a market share of 18.3% according to third quarter ICTA data. In addition to its superior technical features that provide ease of use, TV+ is strengthening its archive in sports, series, films, children's programming, documentaries and many other titles, while the loyalty of its users is increas- ing. In 2024, TV+ users also had access to UEFA Champions League, UEFA Eu- ropean Cup, La Liga, Serie A, UFC and EuroLeague content. Secure and Uninterrupted Video Conferencing Experience: Suit Conference Our video conferencing service, which operates from our powerful data cen- ters in Türkiye, enables users to com- municate with their business partners and teams around the world 24/7 with- out interruption and securely. Suit Conference is a web-based con- ferencing solution that offers a us- er-friendly interface and flexible ac- cess options. Access is possible via web browsers as well as desktop and mobile applications. The system is host- ed in our data centers in Türkiye, which offers a significant advantage in terms of security. In addition, we offer cus- tomisable solutions such as the use of custom domain names. Suit Conference has been developed to meet the remote working and meeting needs of all small and large-scale or- ganizations, especially in the education, public and health sectors, and contin- ues to be an indispensable part of the digital business world by providing se- cure and uninterrupted connection. Digital Gaming Platform: GAME+ In 2021, GAME+, the gaming brand of Lifecell Dijital Servisler A.Ş., began of- fering cloud gaming technology in our country through Türkiye servers as part of its collaboration with NVIDIA GE- FORCE NOW, the world's most popular and advanced technology cloud gam- ing platform. This cutting-edge tech- nology allows users to play advanced computer games directly through the cloud, eliminating the need for power- ful hardware. Thanks to GAME+, playing the latest games is as easy and accessible as watching a film online. GeForce NOW, powered by GAME, has attracted sig- nificant interest in our country and has reached the highest number of users in Türkiye after the United States of America. GAME+ is undergoing consis- tent growth, with an expanding game library, investment in technology infra- structure, and an increasing number of subscribers. In addition to cloud gam- ing, GAME+ aims to become the largest gaming platform in Türkiye and contin- ues to work on new gaming solutions. İşte Suit In March 2023, we introduced a new, streamlined approach to our Suit Mail, Suit Drive, Suit Conference and Suit Office services, which were previous- ly offered to our corporate customers separately, by consolidating them into a single portal and management pan- el on istesuit.com. As of December 2024, more than 2 thousand companies are using İşte Suit with over 55 thousand licenses. In 2024, more than 2,000 companies are using İşte Suit with over 55,000 licenses. increased its recognition among pod- cast listeners, offering special episodes of the most popular podcast series that are only available on fizy. In 2024, fizy further diversified its content portfolio by expanding its podcast investments. While popular podcasts such as 'Musi- cality' and 'You Definitely Need to Hear This' have attracted significant atten- tion, the company has also introduced a new content type to its users: the videocast experience, with the 'PopBi- zde' series. 2020 2021 2022 2023 2024 Number of (IPTV, 871 1,082 1,282 1,409 1,462 thousand) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 135 134 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Chatbot – Turkcell Asistan Turkcell Assistant is a strategic milestone in our company's digital transforma- tion journey and is an artificial intelli- gence-powered self-service solution brought to life entirely by Turkcell's engi- neering vision. This innovative platform is integrated into the Turkcell app plat- form and plays a critical role in the mo- bile infrastructure of Turkcell app, our company's digital asset. Turkcell Assistant, enhanced with AI, eases our customers’ daily lives by as- sisting with hundreds of tasks, includ- ing invoice management, international service adjustments, package details, and personalized offers. Its advanced structure is designed to anticipate cus- tomer needs, leveraging our analytical capabilities to provide proactive infor- mation and suggestions. For instance, when a customer is approaching their package limit or when their current contract is about to expire, Turkcell Asistan automatically provides infor- mation and digital guidance to facili- tate the completion of transactions. In 2024, our 20 million customers engaged in a total of 79 million chats. Moving forward, we aim to enhance the capa- bilities of Turkcell Assistant, leveraging our technological expertise to provide even more value to our customers and save them time. Our chatbot solution is continuously developed also through integrations with our digital platforms, such as BiP, GAME+, lifebox, fizy, TV+ and Platinum, and serves Turkcell Superonline users through special scenarios. Selfbot, another self-service chatbot platform developed with Turkcell’s en- gineering expertise, has expanded beyond the municipal and education sectors to enter the e-commerce sec- tor. In this context, our Selfbot solution has started to provide 24/7 online sup- port to website users with the integra- tion to the official website of a brand operating in the textile industry. In 2024, Turkcell Assistant also made a significant contribution to social responsibility projects. In November, applications for the 'Developers of the Future - Women in AI' were received via the assistant. This initiative facilitated over 10,000 successful referrals, effectively broadening the reach of the project. In the near future, we plan to integrate our chatbot system with large lan- guage models and launch our produc- tive artificial intelligence-based stud- ies for both Turkcell's internal dynamics and general user needs. Our chatbots are also supported by the 'UNDP Gender Responsive Commu- nication Guidelines' and adopts a gen- der-sensitive and inclusive language. This is an indicator of our brand's com- mitment to social values. Voice Analytics - Turkcell Artificial Intelligence Voice We continue to use our in-house de- veloped artificial intelligence voice technology in various products and processes at Turkcell. This expertise enables us to send voice SMS noti- fications to our customers, provide voice narration for online trainings from Turkcell Academy, and deliver personalized messages to our em- ployees across various channels. In our call center, we leverage artificial intelligence to enhance customer ser- vice. Our AI voice assists customers at various points as a digital assistant. We help match customers with the right packages at the right time by au- tomatically using our AI voice to read package details during call center recommendations. In addition to our existing artificial intelligence voice technology, we have gained the com- petence to clone a professional voice with only 30 minutes of voice record- ing thanks to our intensive R&D stud- ies on this subject. This will allow us to serve our customers through different channels with different voices in the coming period. Image Processing Services and Solutions Turkcell Digital Verification application, developed by Turkcell engineers with- in the scope of artificial intelligence studies, performs the control of identi- ty documents with image processing, voice processing and machine learn- ing methods, while providing a secure and effective remote customer acqui- sition process with face verification technology. In this context, face recog- nition services developed by Turkcell engineers, liveness control services, speech-to-text services that allow voice confirmation from the customer and OCR (Optical Character Recogni- tion) services that allow digital control of ID card information are used in the digital verification processes carried out through mobile, web and face-to- face channels. OCR technology, which facilitates dig- ital and automated processing and control of documents in Turkcell's inter- nal processes, contributes to employ- ee productivity by addressing various challenges. Artificial Intelligence-Based Recommendation Engine At the point of understanding and meeting the needs of our customers, we benefit from the recommendation engines infrastructure developed by Turkcell engineers to increase the per- sonalised user experience in our appli- cations and communication channels. We provide personalized experiences in fizy and TV+ apps, utilizing AI to pres- ent customers with recommendations, related product suggestions, and cus- tom playlists. Eco-friendly and Practical Solutions Through Digitalisation: Digital Signature At Home A Better Customer Experience with Artificial Intelligence Thanks to a new solution developed by Turkcell engineers, customers who want to use fiber, DSL, Superbox and TV+ products can use digital signatures in subscription transactions. This will enable installation teams to do their work 30% faster. This will result in the digitisation of 1,400 tonnes of documents annually, contributing to environmental protection. We are committed to the continuous enhancement and refinement of our products and services through the integration of advanced artificial intel- ligence applications, developed by our team of skilled Turkcell engineers. We are committed to leveraging artificial intelligence technologies to en- sure optimal user experience personalisation and efficiency across our applications and customer services. In 2020, we committed to using powerful technologies like artificial intelli- gence ethically and responsibly, and we established 7 principles to which we would adhere. By taking this step, we became the first company in Türkiye to publish the Principles for the Use of Artificial Intelligence. Our Human Rights Policy, published at the beginning of 2021, further underpins our commitment to developing our artificial intelligence and other tech- nologies within the framework of human dignity, fundamental rights and freedoms, contributing to the Sustainable Development Goals (SDGs). Our analytical solutions team conducts detailed analysis of Turkcell's products, services, tariffs and campaigns, providing data-driven insights to our business units. Through the use of predictive modelling and seg- mentation studies, we are able to offer the most suitable products and services to the appropriate customer segments, thus contributing to rev- enue growth and enhancing customer satisfaction. Leveraging advanced analytical trend models supported by artificial intelligence, we ensure the delivery of highly accurate solutions, underpinned by a deep understand- ing of customer needs. You can find information about the Artificial Intelligence Usage Principles on our "Digital Responsibility" page on our website. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 137 136 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Digital Security and Wellbeing At Turkcell, we are committed to deliver- ing a distinctive digital experience to our customers by continually expanding our product and service offerings in harmony with technological advancements and the evolving expectations of our stakeholders. A core component of this experience is cyber security and digital wellbeing, and we are committed to addressing these is- sues through two primary initiatives. Firstly, we manage the cyber security and infor- mation privacy risks of our infrastructure, technology, products and services. Sec- ondly, we offer cyber security and digital wellbeing services that provide our cus- tomers with a secure digital environment. Cyber security is an integral part of our business strategy, and risks are assessed in 11 different profiles. These are then man- aged and monitored in line with our stra- tegic business focuses. Our operations are managed within the framework of a total of 10 different corporate policies, especially our Information Security Policy, which was approved by our Board of Di- rectors. In order to maintain our cyber se- curity practices at the highest standards, we are proud to be the first telecom op- erator in Türkiye to hold the ISO 27001 In- formation Security Certificate, which we renew every year through independent audits. In addition, we are successfully im- plementing the ISO 27017 Cloud Informa- tion Security System Standard. We use globally recognized security standards such as NIST, CIS, OWASP, CSA, ENISA and MITRE as a guide, referencing global best practices in technology man- agement. In addition, we are committed to adhering to all applicable legal regu- lations, including the Presidential Digital Transformation Office Information and Communication Security Guide (BİGR), KVKK, GDPR, BTK and CMB directives. We regularly assess and enhance our cyber security processes within the framework of ISO 9001, ISO 20000, ISO 22301, ISO 27001 system standards, PCI-DSS (Pay- ment Card Industry Data Security Stan- dard) and SOX (Sarbanes-Oxley Act) ex- ternal audit processes. We are committed to continuously en- hancing our proactive cybersecurity policies to ensure security in the digital world. Our robust infrastructure provides comprehensive protection for our oper- ations at the highest level. During 2024, there were no data breaches or viola- tions of personal data privacy due to any cyber security vulnerability, and no legal sanctions or fines were imposed on our company. Three main strategic focuses are fol- lowed in our Cyber Security activities: 1. Improving cyber resilience through in- novative new technology investments, existing technology improvements, pro- cesses, standards, digitalisation, com- munication, awareness, training, com- petence development activities carried out within the scope of the services pro- vided by Turkcell and Group companies 2. Developing the local ecosystem and integration through localization in ex- isting and new products 3. Increasing the revenues of cyber secu- rity products and services in individual, corporate and wholesale customer portfolios We consider cyber security to be a fundamental element of our business strategy, and we oversee one of the largest cyber security teams in Türkiye. With over 160 specialized personnel, we monitor cyber threats 24/7 and pro- tect our infrastructure, customers and business partners. The work carried out by our Cyber Security Directorate and the resulting data obtained are regu- larly shared with senior management and relevant teams through a variety of channels, including monthly CXO securi- ty managers meetings, annual ISO 27001 review meetings and bi-monthly Cyber Security Meetings. Privacy and Security As Turkcell, in line with our identity as a responsible digital operator, we adopt the principle of protecting customer data privacy at the highest level. We manage information security not only from a cybersecuri- ty perspective, but also to encompass all physical business process- es where personal data is processed. We fully comply with all legal regulations, particularly KVKK and GDPR. We require that our business partners also adhere to the same high standards in their operations and data protection, and we base all collaborations with third parties on our data privacy principles. We are committed to transparently informing our customers about their rights regarding the security of their personal data. We maintain uninterrupted communication regarding these matters. In the event that customers have any concerns regarding privacy and security, they are able to contact us easily through Turkcell's secure and effec- tive complaint management channels. Further information regarding our information privacy and security policies can be found on our corporate website. Our Security Operations Center works in conjunction with our IoT and forensic laboratories to detect cyber threats and take preventive measures against possi- ble attacks. Our Bozok Threat Intelligence Platform provides threat and risk analysis to our customers who want to get a cy- ber security protection layer and supports them to increase their digital security. In addition, we offer specialized penetration testing and vulnerability analysis services to our corporate customers, leveraging the latest technologies to identify and eliminate potential threats. Our commitment to cyber security does not end with our own infrastructure. We are dedicated to safeguarding our cli- ents' digital assets through the utilization of cloud-based security solutions, hosted in Turkcell's data centers. Our digital se- curity service protects thousands of cus- tomers against phishing, malware and other cyber threats, preventing access to risky addresses. We also help our cus- tomers to take precautions against new attempts by informing users who have experienced password leaks in the past via SMS and e-mail. This service is avail- able to both individual and corporate mobile customers. In alignment with the Turkish Cyber Secu- rity Cluster's mission to cultivate a domes- tic and national cyber security ecosystem, we are an active participant in this initia- tive, fostering collaboration between the public, private sectors and academia to enhance cyber security awareness and strengthen cooperation. We offer special training programs to increase the cyber security awareness of our employees. On an annual basis, we enhance the skillset of different employee groups through technical and non-technical training. Our commitment to enhancing cyber security awareness among our employees is fur- ther underscored by the incorporation of the T.Life Cyber Star Application, Securi- ty Reflex feedbacks and Security Cham- pion scorecard points into our training programs. In order to enhance the expertise of our workforce in the domain of cyber securi- ty, we organize prestigious competitions, including Unibounty, Bugbounty and CTF. These events bring together our employ- ees and external participants, and we provide support to Turkcell cyber se- curity experts so that they can play an active role in national and international conferences. Digital Wellbeing We believe that ensuring security in the digital world is possible through conscious internet usage. Digital lit- eracy and a robust sense of privacy are essential for safeguarding against malicious actors and security threats. However, we recognize that certain groups, such as children and elder- ly individuals, may require additional safeguards to mitigate these risks. With this in mind, we design our services to provide a safe and controlled internet experience, as well as developing se- curity and content filters that provide parental control. We also aim to con- tribute to the safe internet use of our stakeholders through awareness-rais- ing, training and information activities. We are also committed to participat- ing in global efforts to age-appropri- ate digital services. We are committed to adhering to the standards outlined in the standardisation studies devel- oped by IEEE SA (IEEE SA P2089). This initiative ensures that our products and services comply with these standards. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 139 138 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Digital Business Services (DBS) As Turkcell, we integrate our telecom- munications service provider identity with our Digital Transformation Business Partner strategy for our corporate cus- tomers. With our Digital Business Ser- vices, we are at the forefront of digital transformation in the business world, offering comprehensive solutions that address the needs of various sectors, including healthcare, manufacturing, retail, transportation, logistics, finance and energy. Our end-to-end digital solutions, offered from a single source, contribute to Türkiye's digital economy and help our customers achieve cost savings and revenue growth through high-value-added projects. In line with our vision, we have success- fully completed over 4,700 managed service and system integration projects, and we continue to successfully manage our projects. By analyzing the needs of our corporate customers, we offer cus- tomised solutions with new generation technologies such as fixed access, net- work, cyber security, data center and cloud services, system integration, man- aged services, IoT, big data, business ap- plications and artificial intelligence. We provide end-to-end management by leveraging our in-house capabilities and the support of our ecosystem of business partners. Our company boasts a robust mobile network, an extensive end-to-end fiber infrastructure spanning up to 65 thou- sand km, and 7 data centers, 4 of which are new generation data centers. These data centers have obtained Tier-3 Facil- ity and Operation Sustainability certifi- cates from the Uptime Institute, a globally recognized certification body. With Turk- cell Cloud services, we position the entire information technology infrastructure of corporations in our data centers, thus providing a more flexible infrastructure while reducing costs. In the field of cyber security, we are the end-to-end Cyber Security Service Pro- vider of institutions thanks to our expert staff, our up-to-date technology invest- ments and the diplomacy and processes we have established with the defense groups we are a member of in Türkiye and abroad. These 3 basic components of cyber security are vital in protecting against the ever-changing, developing and increasing cyber threats. Our Big Data and Artificial Intelligence services support customers' strategic decision-making processes, enabling them to increase profitability and effi- ciency of companies in the manufactur- ing, retail, e-commerce, shopping mall, fuel and finance sectors. In the healthcare sector, we manage the entire technology infrastructure of 8 city hospitals as Türkiye's leading integrator in public-private partnership (PPP) proj- ects. With a total of 10 thousand beds, all hardware, software and operating pro- cesses in Yozgat, Adana, Eskişehir, Elazığ, Bursa, İstanbul-Başakşehir, Tekirdağ and Gaziantep City Hospitals are under Turkcell's guarantee. Our paperless hos- pital project, implemented at Istanbul Başakşehir Çam and Sakura City Hospi- tals, has been recognize as a significant milestone in our digital transformation, leading to our attainment of the presti- gious HIMSS 6 certificate. By replicating this success in Eskişehir and Bursa city hospitals, we have further solidified our position as a leader in digital transfor- mation within the healthcare sector. We are continually expanding our busi- ness partnership ecosystem, collaborat- ing with our subcontractors, business de- velopment partners and sales partners using a win-win business model. Thanks to our collaborations with global suppli- ers, we are expanding our solution sets day by day and increasing our technical competence and project diversity. By integrating RPA (Robotic Process Au- tomation) technology into our company, we have automated manual processes and digitalised 402 business processes. This has led to significant improvements in efficiency and operational excellence. Turkcell and Mobility We closely follow global trends in the field of mobility and aim to provide the best service to our customers by inte- grating the innovations brought by this transformation into our way of doing business. We recognize the rapid evo- lution of the mobility ecosystem, en- compassing autonomous driving, con- nectivity, electric vehicles and shared transport models. This transformation is affecting not only the automotive industry, but also the structure of cities, transport infrastructure and even the technology ecosystem. We are driven by the vision to be among the pioneer- ing brands leading this transformation. To contribute to Turkey's mobility eco- system, the Togg project, in which we are a shareholder, has enabled our country to become a strong player in the electric vehicle competition. The fact that Togg, designed as Türkiye's first domestic electric car and mass produc- tion of which started in 2022, is on the roads today is the most tangible indica- tor of this success. We are experiencing the justified pride of our country achiev- ing a significant milestone in the field of sustainable mobility with this project. In addition to enhancing the security of our mobility solutions and vehicle and fleet management technologies, which are offered as part of our Digital Business Services (DBS) portfolio, we are at the forefront of transforming the sector through the implementation of our innovative digital solutions. In 2023, we expanded these collaborations with our digital music platform fizy and brought Togg users together with music. Building on this success, in 2024, we further enhanced our offerings by integrating podcasting capabilities into our Togg vehicles, complementing our existing music offerings. We also integrated our cloud storage service Lifebox with Togg tools to ensure fast and secure backup of files. As Turkcell, we integrate our telecommunications service provider identity with our Digital Transformation Business Partner strategy for our corporate customers. With our Digital Business Services, we are at the forefront of digital transformation in the business world, offering comprehensive solutions that address the needs of various sectors, including healthcare, manufacturing, retail, transportation, logistics, finance and energy. We closely monitor global trends in mobility, with the objective of providing the best possible service to our customers. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 141 140 | TURKCELL 2024 INTEGRATED ANNUAL REPORT SOCIAL CAPITAL TURKCELL 2024 INTEGRATED ANNUAL REPORT | 143 142 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Brand and Responsibility While increasing the capacity and durability of our brand, we offer smart solutions to make our customers' lives easier. In all areas of our operations, we are committed to addressing the digi- tal divide, enhancing accessibility, and ensuring technology is within reach for all. We are proud to carry the Turk- cell brand forward with our innovative products and services, and to support the development of the communica- tion and technology ecosystem. This approach is based on our sense of responsibility towards our custom- ers, employees, suppliers, shareholders, the public, dealers, non-governmental organizations, academia and media representatives. By forging strong re- lationships with all our stakeholders, we are at the forefront of shaping a sustainable future in technology and communication. As Türkiye's leading telecom company, you can access the policies we implement to aim for the highest standards at turkcell.com.tr. Human Rights Policy: We are committed to adopt- ing an attitude based on fundamental rights and freedoms and to fulfilling our duties to ensure compliance with national and international leg- islation on working life in order to contribute to a working world worthy of human dignity. Environmental Policy: Turkcell's strategic objec- tive is to enhance the circular economy, contrib- ute to economic growth and ensure long-term environmental sustainability. This commitment is underpinned by a comprehensive awareness of environmental impact across its value chain. Customer Satisfaction Policy: We resolve custom- er requests in an open, transparent, swift and cus- tomer-orientated manner. Quality Policy: We continuously improve our pro- cesses and implement an effective Quality Man- agement System. Anti-Bribery and Anti-Corruption Policy: We consider it a necessity to carry out our activities fairly, honestly and in accordance with legal and ethical codes. Information Security Policy: At Turkcell, we en- sure the security of information in accordance with business needs, laws and legal regulations. Donation Policy: Through our Company and its subsidiaries, with the authorization from the Board of Directors and within the annual dona- tion limit determined at the General Assembly meeting; donations are made to organizations, associations and foundations that carry out projects related to education, sports, culture and arts, environment, health, restoration of his- torical artifacts, humanitarian aid, involving the disabled in society, entrepreneurship and tech- nology, and similar publicly beneficial activities. We closely monitor global trends in hardware and software technologies, and continually develop our innovative digital services. Performance Indicator Short Term Target Medium Term Target Long Term Target 2023 Performance 2024 Performance Target Towards Current Status Covering the whole of Türkiye with social projects and accessibility studies 200,000 250,000 300,000 190,000 377,000 ↑ TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 145 144 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Our Brand Türkiye's Turkcell continues to be a brand that has been working, devel- oping and investing in technology by focusing on people and its country since its establishment. Turkcell has transformed from a digital operator to a technology ecosystem brand in a rapidly changing world, becoming a leading player in shaping Türkiye's technology history by achiev- ing numerous firsts. Turkcell's heritage has been instrumental in shaping its evolution into a leading 'end-to-end technology provider', a brand that is at the forefront of technological ad- vancement with a vision to make Türki- ye's century the century of digital. Turkcell is celebrating its 30th anniver- sary this year with the message 'both the technologies that make life easier and those who use these technologies have been working with Turkcell for 30 years'. Our Brand Communication Activities in 2024 The year of 2024 was a significant one for Turkcell. Turkcell is not only a tele- com brand; it has been a driving force in Türkiye's technological history, con- tributing to numerous firsts. It has also been at the forefront of technologi- cal transformations. Turkcell has once again proven its sustainable success by leaving behind 30 years as one of Türkiye's most loved and proud brands. For 30 years, Kerem Bürsin, a face as dynamic and young as technology, in line with Turkcell's technological brand stance, has become the new face of our brand. In the launch film, the first step in our series of advertisements designed to reach and influence large audiences, we communicate the following mes- sage: with Paycell, we provide our cus- tomers with a seamless payment expe- rience; with fizy, we help them embrace life's rhythms; and with TV+, we offer entertainment through our action and adventure. With Superbox, customers can connect with life from anywhere they want, whether at home or in camp. For 30 years, Kerem Bürsin, a face as dynamic and young as technology, in line with Turkcell's technological brand stance, has become the new face of our brand. We are proud to announce that we have doubled the GBs in the packag- es of all our users who have requested more GBs from us, regardless of situa- tion or platform. Furthermore, we are committed to ensuring that our cus- tomers experience the excitement sur- rounding the 30th anniversary. We have provided our customers with reliable billing solutions. We have relaunched the renowned GNÇ campaigns and have achieved performance results that surpass the sector average across all our communications. As we entered the final quarter of 2024, we implemented advertisements with content that would support the brand image through the 'Made by a Turk- cell' advertising platform, which we launched with the new advertising face Ata Demirer. The initial advertise- ment highlighted the brand's superior- ity in mobile internet speed under the theme of 'King of Speed', while subse- quent communications will further em- phasise Turkcell's distinctive qualities. On October 29, we adopted the mis- sion of unity and solidarity, and we continue to be among the reputable companies with our message 'We are 101, We are Together Forever' on the 101st anniversary of our Republic. At Turkcell, we are committed to the continuous development of innovative products and services. We understand the insights of our customers and strive to offer well-designed products and services that provide a superior cus- tomer experience, without compromis- ing on quality. Turkcell is celebrating its 30th anniversary this year with the message 'both the technologies that make life easier and those who use these technologies have been working with Turkcell for 30 years'. On October 29, we adopted the mission of unity and solidarity, and we continue to be among the reputable companies with our message 'We are 101, We are Together Forever' on the 101st anniversary of our Republic. Our Strong Sales Channels and Services Our Sales Channel Structure As Türkiye's leading communications and technology company, we are com- mitted to providing our customers with a comprehensive range of products and services. We provide customer-oriented services and solutions through our Turk- cell stores, alternative sales channels, online channel, Turkcell mobile appli- cation, Pasaj application, home solution centers and corporate sales channels. We integrate Turkcell solutions with our customers across all sales channels, en- suring a consistent high-quality service. Our Retail Channel With 1,004 Turkcell stores and 3,714 dig- ital sales points, we have successfully transformed our retail channel into a digital experience chain, ensuring su- perior Turkcell service quality at every point of customer need. In order to increase our market share and customer loyalty with our Smart Offer Management model, with a focus on existing and new customer acquisi- tion, we continue to offer our customers offers rich in content, tailored to their needs and at different price levels. In the area of home internet, a fiber mobilisa- tion campaign was initiated to boost fi- ber sales in Turkcell stores, complement- ed by targeted customer and dealer campaigns. Furthermore, visual commu- nications and customer research were conducted to increase the focus on home internet in Turkcell stores. We continue to implement our regular monthly customer campaigns, which include competitive device offers, un- der titles such as ‘Yellow Days, Stretch- ing Limits, Star Product of the Month’. In this way, we ensure that we keep our customer traffic at the highest level by offering advantageous offers to our cus- tomers at different times in many product groups. In addition, we continue to invest in Premium segment device sales, where the smart device market is growing, in or- der to gain a share from the competition, and we continue our actions focused on strengthening campaigns and EGYG (Bring Old and Take New) fictions that feed this segment sales. We are focusing strongly on Smart Home solutions and aim to be the industry leader in inter-object communication, working in partnership with the telecommunications sector. Following the rapid adoption of smartphones, smart objects have begun to infiltrate our lives and assert their presence in numerous domestic and pro- fessional settings. The introduction of smart products into our homes, such as robot vacuum cleaners, is a clear indication of this transformation. As the industry leader in technology retailing, we have expanded our offerings to include Smart Home products, encompassing security, energy, entertain- ment, and other home solutions. This strategic move, which has been imple- mented across all our channels, particularly in our stores, is a testament to our commitment to diversifying our product portfolio. At the same time, in line with our multi-channel strategy to offer a wide range of products to our customers and to enhance the customer experience, we offer all Smart Home products available in Pasaj in our stores. This approach enables us to provide our cus- tomers with convenient access to a diverse range of product categories. We are expanding our ecosystem through permanent collaborations with leading brands in the Smart Home sector. We are transforming our stores to align with this strategic direction, establishing dedicated experience areas where our highly skilled staff can provide unparalleled customer service. We aim to offer our Smart Home solutions in the most effective way, leverag- ing our experience and expertise as an internet and infrastructure provider. As part of our strategy to expand our retail channel, we focus on key areas including communication, traffic, sales processes, pro- curement, loyalty, physical and digital experiences, and delivery processes. We are making significant investments in these areas. By continuing the technology and experience transformation in our stores, we are enabling all our customers with hearing impairment, visual impair- ment and physical disabilities to receive equal and accessible service from our in-store applications with 98 Disabled-Friendly Stores in 76 provinces of Türkiye as of May 2022. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 147 146 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Employee Experience in Sales Channels The Store/Dealer Employee Certification Program, which was implemented to ensure that employees possess the same qualifications and knowledge level in Turkcell stores, Turkcell SME Solution Centers and Home Solution Center dealers, and to provide an excellent customer experience, continued in 2024 with a 99% success rate. The additional benefits pro- vided to our Certified Ambassadors continued to improve in parallel. In 2024, all Turkcell Store channel employees received training on 150 topics for their focus, business and personal development. In ad- dition, all dealer employees from the Turkcell SME Solution Center and Home Solution Center were trained on 200 topics, focusing on key areas such as focus, business, product, service, and personal de- velopment. We prepared and implemented the 'Disaster Pre- paredness and Awareness' training for all channel employees, in which experts in their respective fields shared important information on disasters. Addition- ally, we provided webinars on earthquakes, floods and fires throughout the year to ensure continuous learning and awareness. We are pleased to announce that we have in- creased the success rate in every quarter in the results of the Award-Winning BEST Knowledge Level Determination Exam. This was implemented in order to provide our Turkcell Store, Turkcell SME Solution Center and Home Solution Center employ- ees with the training they need with person and region-based follow-up and to ensure that they deepen in training. We organized training in 4 dif- ferent topics on subjects where there were defi- ciencies. Each period, we presented Paycell awards and experiential learning trips with accommodation to the best-scoring winner from our 15 regions and year-end Türkiye champions. The Stars Performance Score System was designed to monitor the performance of employees and Turk- cell Store Managers 360 degrees under the main headings of sales performance, service quality and compliance with standards. Paycell awards were made to the best-performing employees in Türkiye. In this context, a total of 6 thousand Ambassadors were recognized in 2024. Since 2018, we have been awarding seniority gold coin to our employees who have been working at Turkcell SME Solution Center and Home Solution Center for a minimum of 2 years. In 2024, we award- ed quarter gold coin to a total of 249 employees. In 2024, we continued the Super Stars University Training Program, which contributes to employees' retailing, digital transformation, consumer behav- ior and basic marketing, communication, personal competence and managerial awareness. 90 em- ployees who demonstrated exceptional perfor- mance as per the Stars Performance Score System were selected to participate in the program. This program was conducted in collaboration with a prestigious Turkish university and comprised a total of 48 hours of intensive face-to-face training over the course of one week. Employees who successful- ly completed the program received their certificates via e-government. In 2024, we continued to offer our Turkcell SME Solu- tion Center and Home Solution Center employees the Advanced Certification University Training Pro- gram, which contributes to digital transformation, consumer behavior and basic marketing, commu- nication, personal competence and managerial awareness. 60 employees who demonstrated ex- ceptional performance under the Best Exam Score System were selected to participate in the program, which was conducted in collaboration with a pres- tigious Turkish university and comprised a total of 48 hours of in-person training over the course of a week. Employees who successfully completed the program received their certificates via the e-gov- ernment system. On December 12, we celebrated Merchandisers' Day with our Turkcell Store employees. In an effort to make this day more memorable, we arranged for gift chocolates to be delivered to our employees, launched employee device campaigns, organized competitions with prizes via our communication channels, made store announcements, showed fic- tion films specially prepared for the day and provid- ed various surprises. In pursuit of enhancing employee satisfaction and loyalty, a comprehensive program of activities was undertaken, with a focus on addressing the needs of employees throughout the year. Improvements were made to the content of health and life insurances for employees and their families. In addition, on behalf of each employee, we support the treatment of a vi- sually impaired person every day, as a gift on their birthday, with the support of Yeryüzü Doktorlari. This year, we are proud to announce that all our channel employees and company owners have been includ- ed in this meaningful partnership between Turkcell and Yeryüzü Doktorları. We are streamlining the procure- ment processes of all Turkcell chan- nels through the implementation of our 'Digital B2B Procurement Platform' (market.turkcell.com.tr), which facil- itates the supply of diverse product ranges and categories across multiple channels, underpinned by a multi-buy- er-seller structure. We continue to provide customised guidance to our dealers according to their orders and sales by accelerating our processes and improving the experience with our content management team. The B2B Portal currently offers 48,841 products from 234 suppliers and 2,429 brands to Turkcell dealers. The 'Delivery Point' operations, which enable the delivery of devices pur- chased via turkcell.com.tr through the physical channel, and the delivery operations of sim card products such as Postpaid Number Transfer, Prepaid Number Transfer, Postpaid New Line, Prepaid New Line, which are pre-ap- plied through 'In Store Delivery with a Click', have been carried out from our stores since 2019. The 'In Store Delivery with a Click' and 'Delivery Point' services enable cus- tomers to receive their cargo from our stores more quickly without having to wait for it to arrive at home, while meeting their other product and ser- vice needs. In line with our sustainable environmental approach, the 'Refur- bished Device Sales Campaign', which we initiated in 2021 with a view to reintroducing devices that have reached the end of their life cycle back into the economy, is continuing at full speed. The 'Bring Old, Take New' scheme, offered to customers with cash and con- tract offers through all Turkcell stores and online channels, has been suc- cessful in reducing unregistered device sales and device imports, while also reducing the environmental impact of device trade. In 2024, we collected approximately 65 thousand old devices from our customers through Turkcell stores with this initiative. We anticipate the expansion of this trade, which is currently only available in the smartphone category, to encompass different product categories in the near future. This growth is expected to be support- ed by forthcoming regulations from the relevant institutions. Our goal is to contribute to the understanding of sustainability in all technology categories. In collaboration with Turkcell Academy, training programs were developed to promote energy efficiency, savings and sustainability in Turkcell Stores, and subsequently shared with all Ambassadors. Projects to reduce ener- gy consumption in stores were implemented. As a result of these efforts, the backlights of the LCD screens in the stores were reduced by 30%, leading to a 25% energy saving. In addition, discussions were held on air conditioning methods, with actions such as correct placement and appropriate tempera- ture setting being determined. In 2024, efforts to minimize the ecological foot- print and adopt alternative energy solutions will continue. We are proud to continue our commitment to education by recycling tech- no waste through the 'Recycle into Education' campaign, a project within the scope of our company's sustainability strategy. As part of this initiative, we have established a collaboration with the Association of Informatics In- dustrialists (TÜBİSAD), an authorised organization in this field, to ensure the effective recycling of techno waste (mobile phones, computers, tablets and accessories, etc.) brought to the recycling bins in Turkcell stores, as well as scrap devices collected through the EGYG project. All income from recy- cling is donated to the Educational Volunteers Foundation of Türkiye (TEGV) to support the quality education of our children. During the course of the project, approximately 14 tonnes of electronic waste were collected in 2024, while a total of 47 tonnes of electronic waste were recycled from November 2019, when the project was initiated, until the end of 2024. All of the income generated from this project was donated to TEGV, contributing to the quality education of more than 450 children. We strive to provide our customers with the same high quality service in all our sales channels, and we continue to make a dif- ference in our service and sales processes with our integrated channel experience solutions. Since 2021, with the "Customer Contact Journey Platform", we have been fol- lowing the integrated experience in terms of service by showing the store and call center employees the channel in which our customers have made transactions. All our channel employees are familiar with this journey, as they encounter it before serving our customers. This provides them with valuable insight into our customers' previous experiences, enabling them to contribute positively to customer satisfaction. 48,841 products from 234 suppliers and 2,429 brands to Turkcell dealers. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 149 148 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Our Digital Sales Channels and Services We are proud to be at the forefront of the e-commerce sector, with a strong commitment to digitalisation. In Q4 2024, our Turkcell mobile application received over 550 million visits, and our 3-month active users reached 27.3 million. The vol- ume of uploads made through our digi- tal channels increased to 62%, while the share of our customers purchasing post- paid packages through digital channels reached 42%. As part of our ongoing growth strategy, we are committed to investing in key ar- eas such as communication, traffic, sales, delivery and customer loyalty. To further improve these processes, we have im- plemented technical improvements with our expert and dynamic Information and Communication Technologies (ICT) team, while we have launched personalised sales fiction under the leadership of our Artificial Intelligence and Data Analytics teams. As part of our digital transforma- tion project, we have redesigned all our digital platforms, including Turkcell App, turkcell.com.tr and Superonline.net, with the aim of offering an easier and more user-friendly experience. Our goal is to enable our customers to complete their transactions quickly with a few clicks, to promote digitalisation and to maximise customer satisfaction. In addition to digital process improve- ments, we continue to offer innovative solutions that make life easier. We have recently introduced features such as 'Re- peat Last Top-up' and 'Automated Top- up with Instruction', which have been de- signed to streamline payment processes for our prepaid customers. In the field of fixed internet services, we have integrat- ed after-sales support processes into our digital platforms, enabling customers to track their requests digitally and in re- al-time, monitor the arrival of our techni- cal teams at their addresses. As a result of these efforts, our digital penetration rate reached 77% as of 2024. Our Tariffs and Packages Our Postpaid Packages Our artificial intelligence-based smart offer management model allows us to offer our customers flexible price and content options that best suit their needs. With a focus on digitalisation, we facilitate seamless transactions and make digital the primary channel for our customers. In order to improve the customer ex- perience, user-friendly interfaces were developed to facilitate the process of making package changes, rendering it both faster and more straightfor- ward. With our analytical models, we have increased customer loyalty with personalised campaigns, discounts and gifts by offering the right offer at the right time. As a result, our custom- ers now prefer to use digital channels for transactions such as recontracting, upgrading and purchasing additional packages, eliminating the need for in- termediaries. In 2024, we strengthened the digital experience by offering new packages with a wide range of content for high data needs. We expanded the scope of our 'Your Tariff is Valid Abroad' service to cover the entire globe, enhancing its benefits for international use. We also introduced new Global and Traveller packages, offering diverse duration and content options, and launched the 'Whole World Package' for countries outside our service area, ensuring unin- terrupted communication. In line with our digitalisation strategy, we have strengthened our position in the sector by increasing our new post- paid customer acquisition rate from 12% in 2023 to 22% in 2024. Our digital campaigns have been instrumental in achieving these results, with a 130% in- crease in customer acquisition. The advanced analytics model we have developed has been designed to analyze customer behavior, with the aim of improving the switching process- es between prepaid and postpaid. This model has been instrumental in increas- ing the rate of payment type change from 24% to 39% through digital chan- nels, while ensuring the provision of the most suitable offers for customer needs. Our Prepaid Packages We are dedicated to monitoring the usage habits and needs of our prepaid customers through big data and market research, and accordingly, we are com- mitted to expanding and regularly up- dating our prepaid package alterna- tives. In addition to monthly packages, we meet the short or long-term needs of our customers with our daily, weekly and long-term package solutions. We are committed to adapting our tele- communication services to customer needs and demands by offering new packages with high data content and additional social media-oriented pack- ages to meet increasing data needs, as suggested by customer feedback. At the same time, our analytical models, supported by artificial intelligence, en- sure that our packages are tailored to the changing needs of our customers and made available through the right channel at the right time. Another key focus has been on deliver- ing solutions and campaigns that ad- dress the evolving telecommunication needs of our customers in the digitalised consumption landscape. We continued to ensure the loyalty of our customers using the Turkcell application as the channel with digital channel-specific packages, comparability of all packag- es, a world full of gifts and continuous renewal. We have also redesigned the prepaid package loading screens in the Turkcell application to align with digital purchasing trends. The segmentation structure we have established accord- ing to the channel usage habits of our digital customers allows us to make cus- tomer-specific campaigns, helping us to increase both the number of customers who have just started using the chan- nel and the number of customers who use the channel regularly. Furthermore, we have developed digital footprint tracking and personalised campaigns to increase the top-up amounts of our customers. We have also introduced automated short-term opportunities to attract customers who have never used digital channels, thus contributing to the digital transformation process. In line with Turkcell's digital transforma- tion strategy, we have commenced the provision of our prepaid line services through our digital platforms. These developments have enabled us to make significant progress in our digital transformation process and provide value-added interactions to our cus- tomers. Corporate Packages We have continued to develop special solutions to meet the expanding inter- net and communication needs of our corporate customers with our innova- tive offers. Our diversified campaigns further enhanced the benefits of be- ing a Turkcell customer, encompassing a wide range of popular social media and instant messaging applications, along with in-house communication advantages. We have continued to make a significant impact through unique offers designed especially for new customers, tradesmen and the SME segment. In response to the evolving dynamics of the local market, we have implemented targeted cam- paigns tailored to specific provinces. By focusing on the lifecycle of our custom- ers at Turkcell, with the power of ana- lytical modelling, we instantly met their needs with the most suitable offers. This has led to a further strengthening of our perception of value for money among both new and existing customers. In 2020, we launched Turkcell Pasaj, one of Türkiye's largest electronic mar- ketplace platforms, with the vision of providing secure technology shopping experiences. In collaboration with Türkiye's most trusted suppliers, we provide our customers with access to a wide range of cutting-edge technology prod- ucts, including phones, computers, gaming equipment, and home electronics. At Turkcell Pasaj, we are committed to providing a secure shopping experi- ence with swift delivery, accommodating payment methods, and straightfor- ward cancellation and refund policies. We are committed to environmental protection, using 100% eco-friendly and recyclable packaging. In addition, we offer our customers the option of delivery from Turkcell stores, combining online and physical store experiences. Our platform, available to all opera- tor customers, offers personalised offers with data-driven solutions, predicts customer needs and delivers the most suitable product with advantageous payment alternatives. In the basket step, we offer Turkcell customers a range of services and promo- tional campaigns that are tailored to their needs. For those not yet customers, we enhance the customer experience through our comprehensive approach to telecommunications service provision, offering tariff/package options in conjunction with our other telecommunication services. We are committed to implementing technological advancements that will offer our customers a seamless, integrated channel experience, ensuring uninterrupted shopping across all channels. Our customers can reserve stock from a store of their choice by examining the products through Turk- cell Pasaj, or they can purchase the product they want through the Pasaj screens in the stores and have it shipped to their addresses. Within the Turkcell ecosystem, we provide our customers with secure and efficient payment options, complemented by robust and comprehensive collection solutions. Bill payments can be made through our digital channels, including Turkcell Web, the Turk- cell app, IVR (Interactive Voice Response System) and Call Center. We also offer physical channels such as Turkcell Dealers, and automatic payment orders can be giv- en through these channels. As part of our ongoing digital transformation, we are pleased to announce the launch of the 'Pay with Link' feature, which allows cus- tomers to pay their Turkcell invoices securely via a link sent via SMS. We are committed to developing specialized payment solutions for our group companies by expanding our joint integrations with banks and other finan- cial institutions, particularly digital banks. This allows us to offer our customers reliable and user-friendly payment experiences. Bill Payment Channel Management TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 151 150 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Innovation Smart Bill Our 'My Customer First' approach has been instrumental in identifying and addressing the key concerns of our postpaid customers, particularly the issue of unanticipated surprise bills. In a move that underscores our commit- ment to fostering customer satisfaction, we have rolled out the Smart Bill ser- vice, a tool designed to prevent excess charges and ensure transparency in billing, at no additional cost for all our customers this year. Smart Bill not only addresses the issue of excess charge complaints, a common grievance in the sector, but also offers a customer-ori- ented solution by empowering our cus- tomers with greater control. Customers who wish to continue using the service despite restrictions can purchase ad- ditional packages or make changes to their package via a range of communi- cation channels with easy access and a user-friendly experience. Those with re- strictions can connect directly to a cus- tomer representative when needed. The flexibility and ease of use provided by Smart Bill empowers customers to make informed decisions and take ownership of their invoicing experience. Turkcell Gold Membership In 2024, we successfully implemented the Gold Membership world, which we introduced as a first in the sector exclusively for prepaid customers. We developed a comprehensive benefits program, tailored to the needs of pre- paid customers who often have lim- ited financial resources and feel less engaged with membership programs compared to postpaid customers. This exclusive membership world, available to customers who make regular top- ups, is seamlessly managed through the Turkcell application. By offering this benefit, we continue to motivate customers to purchase packages and contribute to the digital transformation. Customers can easily upgrade to Gold membership in a digital environment that is both innovative and motivating, where they can track and participate in their top-ups and gifts. We aim to continually enhance the benefits of Gold Membership, leveraging insights from satisfaction surveys to ensure their satisfaction. Flex Package With the Flex Package, we adapt to the usage of our customers. Our customers' internet usage needs may change over time. In this direction, we have continued to offer our Flex Package for our cus- tomers whose package is not enough, but who do not prefer to change pack- ages or buy additional packages. In the Flex Package, when the package is not enough, our customers automatically switch to the next level and continue their usage at an affordable price lev- el. Moreover, thanks to its contract-free structure, our customers can change packages as they wish. Prepaid Automated Topup For prepaid customers, a new develop- ment has been implemented that will enable them to automatically renew their packages with their debit or credit cards at the end of each package peri- od. This option is available to customers who have given Automatic Top-up In- struction from our digital channels. This enhancement ensures our customers can continue to enjoy seamless com- munication with no interruption. Leftover GB’s are not wasted: Rollover Package The rollover feature, a special benefit of our postpaid Platinum packages, allows customers to utilize their remaining GBs in the subsequent month. This enhances customer satisfaction by enabling them to balance fluctuating usage patterns. Moreover, by offering this package through digital channels, we provide a fast and reliable experience to our cus- tomers who want to switch to Turkcell. New Focus Area in Postpaid; My First Turkcell Parents wish to be able to contact their children remotely without en- countering reception issues with the mobile services they purchase for their children. In order to meet the needs of our customers in this regard, we have designed postpaid My First Turkcell packages that parents can purchase for their children. These packages of- fer a range of benefits for parents and children, including extensive content, affordable prices, secure internet ac- cess and a smart bill. In 2025, we also aim to offer a unique experience by in- creasing the features in the packages. Watch Cellular Tariff As the leading company in the field of wearable technologies, we have taken a significant step forward. Our smart watches with cellular features ensure that our customers stay in touch, even when they are out of the coverage area. We initially partnered with Apple before extending our port- folio to include Samsung and Huawei brands, thus expanding the scope of the service we offer. Two New Features for Prepaid Customers: Doubling and Extending In line with our commitment to cus- tomer insights, we are pleased to an- nounce the introduction of two new features that are specifically designed to address the needs of our custom- ers for efficiency and convenience. Prepaid customers can purchase the ability to double the internet in their package or extend the duration of their package by one week. This com- mitment to innovation has enabled us to offer a more flexible world to our customers this year, providing both a data solution for those with insufficient GB and an additional extension for those who believe their package ex- ceeds their needs. Fixed Services We are committed to meeting the needs of our customers by offering high-speed internet options, home installation and a wide range of Turkcell Home Internet offers with favorable commitments. In 2024, we continued our new HomePass investments to deliver lightning-fast in- ternet to more homes on Turkcell Fiber. We are continually enhancing our ana- lytical capabilities with a view to offer- ing offers that are in line with our cus- tomers' usage habits and our marketing strategies. The integration of models such as customer promotion and rout- ing to higher speeds with the Turkcell app has enabled us to reach 14% of customers who renewed their contracts in 2024 through the online channel. By prioritising the online channel, we have further integrated digitalisation into our processes by offering end-to-end digital activation experiences, provid- ing additional benefits to our new cus- tomers through digital channels and enhancing our communications. In the new period, we aim to increase our competencies at every step in the name of digital transformation. We also use our analytical competencies to acquire new customers through location-based fiber analysis and to convert our existing customers to fiber. We Focused on Valuable Customer Acquisition with Turkcell Fiber and VDSL Speed Festival In view of the growing demand for high-speed internet connections in residential properties, we have giv- en priority to our Turkcell Fiber at the Speed of Light promotional initiatives, with a view to extending the availabil- ity of Turkcell Fiber's high-speed and reliable products to a greater number of households. As a market leader in high-speed campaigns, we have con- sistently offered 1000 Mbps speeds to our customers. As a result, we have successfully quadrupled the number of customers using 1000 Mbps. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 153 152 | TURKCELL 2024 INTEGRATED ANNUAL REPORT International and Wholesale Through our business partnerships with national and international operators, we shape the change and contribute to the development of Türkiye's telecommunications sector through international roaming, interconnection, wholesale voice, wholesale data, tower and digital services. The Main Internet Route of Türkiye Since 2008, we have been working to position Türkiye as the main internet route and Istanbul as the internet hub of the region with our vision of transforming the historical Silk Road route into a fiber route. As a result of these efforts, we have become the most important capacity and internet provider in many neighboring countries. Through our partnerships with the world's leading operators, we have acted as a bridge to provide uninter- rupted and lightning-fast internet from east to west for our wholesale customers. Istanbul: Traffic Exchange Hub of the Region Within the scope of our wholesale data services, our international transport capacity exceeded 15 Tbps. We collaborated with the world's largest global traffic exchange platforms and played a major role in their deci- sion to come to Türkiye. Thus, we have taken one of the most important steps in making Istanbul the traffic ex- change center of the region. We also played a major role in content providers' decision to provide their services from Istanbul. Local Competition As Türkiye's leading operator, we provide wholesale solutions for the internet, data and infrastructure needs of alternative operators licensed by the ICTA. Our unique and redundant network ensures the highest standards of service. Wholesale Voice Services Turkcell and Turkcell Superonline provide wholesale voice services through interconnection agreements with fixed or mobile operators and international carriers. We are able to handle the voice traffic of hundreds of mo- bile operators in Türkiye and abroad with Turkcell quality, ensuring seamless service. International Roaming Our Roaming strategy has been to provide uninterrupted communication to our customers wherever they trav- el, with a wide international coverage, while offering foreign visitors to our country the opportunity to benefit from Turkcell's unique service quality. In addition to our existing services, we are committed to maintaining our position at the forefront of the industry by introducing innovative solutions such as Voice over Long-Term Evolu- tion (VoLTE). Our international coverage extends to many countries globally through our International Roaming Agreements. We are Türkiye's strongest international roaming service provider, with more than 800 business partners in over 210 destinations worldwide. Turkcell Wi-Fi 6 Technology We are proud to offer our customers cutting-edge home internet tech- nology. By utilizing Wi-Fi 6, we have achieved ultra-high speeds over the fiber network, while concurrently pro- viding wider coverage within the home. We have named this technology 'the technology that breaks down walls'. This innovative solution effectively solves the coverage problem caused by walls, allowing Turkcell customers with individual fiber connections to enjoy enhanced Wi-Fi network con- nectivity with low latency. This is made possible by a cutting-edge cloud- based artificial intelligence solution in- tegrated into the modem. Furthermore, the Wi-Fi 6 smart modem automatically detects situations requiring low laten- cy, such as online games, and adapts the Wi-Fi connection accordingly. In 2024, our strategic focus on Wi-Fi 6 enabled us to offer this technology to over half of our fiber customers. In a similar manner to Wi-Fi 6 technology, Turkcell, a company that always intro- duces its customers to the latest tech- nologies, continued to work on Wi-Fi 7 technology for 2024. As a result, we are pleased to announce that as of the first quarter of 2025, we will begin offering Wi-Fi 7 technology to Turkcell Fiber customers for the first time in Türkiye. Our ongoing commitment to Türkiye's digital transformation and enhancing access to information is a testament to our dedication to becoming a leading player in these fields. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 155 154 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Our Segments Turkcell's World of Privileges: Platinum In 2024, Platinum introduced a range of benefits for its users, offering perks in travel, shopping, coffee, film and TV se- ries. These enhancements were made in response to evolving consumer pref- erences and new market trends. The relaunch of the 'Surprise of the Week' with its new design, offering thousands of gifts from over ten brands every week. At the same time, we increased our online benefits and brand diver- sity, valid on Türkiye's leading e-com- merce platforms and brands. Through regular 'Dream Gifts' draws and Pasaj privileges, we continue to offer our cus- tomers the latest devices and accesso- ries, along with exclusive benefits. The 'Gift Coffee' campaign proved to be a popular initiative. Platinum also made a significant impact on travel, offering a range of benefits including accom- modation, flight tickets, car rental and airport transfers. In 2024, the Platinum Privileges program received approxi- mately 20 million visits. Furthermore, our brand enriched the lives of our custom- ers through sponsorships such as Turk- cell Platinum Park, Zorlu PSM, and the privileges we offer. The Place for Youngsters to Have Fun and Win: GNÇ GNÇ, the go-to mobile application for young people, is entering a pivotal year in 2024, with the return of its re- nowned campaigns. These campaigns have resulted in an increased range of benefits available within the ap- plication. This strategic move has po- sitioned GNÇ as a leading choice for young people, offering a unique blend of entertainment and opportunity. As a result, the number of active users of the application increased by 30% com- pared to the same period last year. As part of our ongoing legendary promotional activities, we ran a cine- ma ticket gift card campaign, offering one ticket purchase with the purchase of another, and a TRY 150 gift voucher campaign in selected restaurants. Following a complete redesign of its application design in 2023, GNÇ suc- cessfully completed the redesign pro- cess for Çatlat and Galaksi, the most used campaigns in 2024. The compa- ny has continued to offer innovative solutions, with new features added for both campaigns that came with the re- design. During the year, a total of over 80 million benefits were provided to young people. With GNÇ games, we entertained young people while providing GB at affordable prices. We increased the interaction of young people with these games by organizing Game League and periodical campaigns, and distrib- uted prizes to them. In 2024, we have continued to be the leading application for young people, and in 2025 we will continue to develop technology-centric solutions that will maximise the user experience. We will also be running campaigns that are tailored to the needs of our users. Shake and Win Continued to Put a Smile on the Faces of Our Customers Turkcell's popular Salla Kazan cam- paign continues to provide gifts to millions of customers on a weekly ba- sis. While offering our customers the opportunity to choose their gifts in the campaign, where our customers earn a new opportunity to win every Wednesday, we shared more than 500 million gifts with our customers in 2024. We are committed to delighting our customers by offering bespoke gift ideas during special days such as Ra- madan, Eid al-Adha, the 30th anniver- sary of Turkcell and the 100th anniver- sary of our Republic. This year, drawing inspiration from the spirit of sharing em- bodied by Ramadan, we introduced in- ternet gifts that can be shared among loved ones. We also offered our cus- tomers the choice to either use their gifts themselves or to double them and share them with their loved ones. During the Eid al-Adha period, we shared 30 million GB with our customers in honor of Turkcell's 30th anniversary, along with additional Salla Kazan rights exclusive- ly available during this period. We also took the opportunity to express the Eid enthusiasm of our customers. In addi- tion, we extended our greetings to our You can have a look at the Turkcell Platinum application to discover the privileged opportunity world of Turkcell Platinum. customers on their birthdays, offering them special Salla Kazan gifts to mark these occasions. Our consistent suc- cess in Salla Kazan has enabled us to provide valuable services to our cus- tomers, positively impacting the quality of our customer promotion activities. Turkcell Gaming brings Gamers together at Turkcell! In 2024, we saw continued growth with our Turkcell Gaming brand, offering special innovations for game lovers. We ensure uninterrupted player enter- tainment through additional packages and advantages offered for popular games and broadcast platforms. In this regard, we have introduced 2 new game packages, custom-designed to meet the specific requirements of our most dedicated gaming enthusi- asts. These packages enable our users to access popular platforms such as Twitch, YouTube, and TikTok, in addi- tion to well-known games like PUBG Mobile, Free Fire, and Head Ball, with- out incurring additional internet data charges. As a result of these innova- tions, Turkcell Gaming's gameplay fig- ures grew 8 times in 2024 compared to the previous year. In addition to the products we offer to game lovers, we have strengthened the Turkcell ecosystem in the gaming world by participating in the industry's most significant events. We have host- ed numerous organizations, including Teknofest, where we had the privi- lege of meeting thousands of gam- ing enthusiasts, and the tournament we organized for MLBB, one of the world's most popular games. We have increased our presence in the gaming world by establishing collaborations with strong companies in the sector. Notably, we were the first brand to fa- cilitate in-game communication with MLBB, a partnership we forged with IGG, a prominent game company in Türkiye. Turkcell Biz Family Keeps Customers Winning! Turkcell Biz has continued to make a significant impact by reaching a large customer base in 2024 with its GB trans- fer, group formation and special ad- vantages, offering unparalleled bene- fits within the sector. With its renewed focus and the privileges it offers, we made our customers experience the advantages of being a team. We sup- ported our users with features such as free in-group calls and GB sharing. Customers can transfer GB 6 times a month, with the first transfer being of- fered free of charge. We increased customer loyalty by of- fering special advantages to those who referred new customers to Turk- cell. Postpaid customers were offered a 10% discount on their main packages for 12 months, while prepaid customers received 1 GB per week. Furthermore, we enabled our users who added new members to their teams to earn 1 GB per day for 12 months. We also extend- ed special offers to our prepaid users over the age of 65, providing them with 100 minutes of free calls each month. Turkcell Biz+ is the latest addition to Turkcell Biz, representing a new gener- ation of membership model that is both commitment-free and customisable. We offer a flexible and free experience with advantages such as 10 GB from Salla Kazan, GB transfer, entertainment and special brand collaborations for essential needs. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 157 156 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Fiber Speed Internet Experience on Campuses, Campus Wi-Fi The Campus Wi-Fi project is a key ini- tiative in our commitment to providing students with access to high-speed internet. By collaborating with Turkcell, we aim to deliver fiber-optic internet connectivity to university campuses, which are thriving hubs of young learn- ing and innovation. As part of this ini- tiative, which commenced in 2019, we are playing a pivotal role in the digital transformation of our educational in- stitutions by providing cutting-edge fiber internet services to over 1 million university students across 745 locations on 69 campuses in 29 provinces in 2024. In addition to providing fiber-speed internet, we are committed to support- ing the academic and social lives of university students, thereby strength- ening the image of the Turkcell brand on campuses and facilitating the ac- tivities of the brands in our ecosystem within the university. In 2024, we aimed to increase the university spread of the Turkcell Campus Wi-Fi service, which thousands of students have already benefited from, and reach more young people. Turkcell Bizce, the Application of Active Women, Became Women’s Favorite Application Turkcell Bizce application, which aims to provide an excellent customer ex- perience in the women segment, took a significant step towards this goal by undergoing a redesign process in 2024. The new interface was designed fol- lowing extensive usability testing, com- petitive analysis and market research of the target audience. The redesign aimed to increase activations, visits and revenues of the application, en- hance brand perception through a re- freshed brand identity and improve the user experience. The new visual iden- tity of the application, which had re- mained unchanged for some time, was Our Customer Relations Customer Satisfaction and Loyalty As Turkcell family, we aim to make our customers feel 'Safe, Valuable, Happy' at every step, in line with our 'People-Ori- ented Customer Experience' approach. We are committed to providing an easy, personalised and consistent experience. We ensure that all our employees act with the awareness of 'I am here for My Customer' and encourage them to make decisions in line with Turkcell Experience Principles. We actively listen to the needs and expectations of our customers and integrate their feedback into our pro- cesses. We are committed to eliminating social inequalities and making our prod- ucts and services accessible to all. The high level of customer satisfaction we achieve is one of our most important suc- cess indicators. The 'Integrated Channel Experience' (Omnichannel) project is a key compo- nent of the 'One Turkcell' vision, with the objective of moving customer interac- tions to a channel-independent, integrat- ed structure. Our objective is to provide a streamlined and efficient customer jour- ney that is characterised by the seamless integration of technology, ensuring that customers do not need to re-enter their information across different channels. Customer Satisfaction Management We place great importance on the needs of our customers and are dedicated to addressing their requests in an open, transparent, efficient, and reliable man- ner. This commitment is outlined in our “Customer Satisfaction Policy”. We are committed to strengthening the relationships we build with our customers across all channels, closely monitoring customer sentiment, and offering prod- ucts, services and support that meet their needs. In line with our customer expe- rience strategies, we determine, target and monitor our customer experience performance metrics on an annual basis. revamped to break the perception of familiarity among the target audience and boost brand recognition. This year, we continued to offer brand new features and content for the changing needs of our female custom- ers with Turkcell Bizce, which is the favor- ite application of women by increasing interaction with innovative approach- es and producing pleasant times. The 'Bizce Mirror' application, developed using artificial intelligence technology, provides users with motivational con- tent every day via a virtual mirror. A to- tal of 900 thousand participants took part in the draws we held throughout the year. Our Kupon Birikiktir campaign, which has been running for 5 years and which we have implemented by taking into account the coupon accumulation habit of women from the past, contin- ued with innovations this year. Approx- imately 8 million coupons were gifted to users during the campaign, who then exchanged them for GB or brand gift vouchers. Approximately 400 thousand gifts were used in this way. Turkcell Kid Turkcell Kid packages are innovative solutions for the children's segment, offering special, rich content and ad- vantageous packages for children between the ages of 7 and 15, as well as solutions to parents' security con- cerns under a single roof and features that enable them to manage their chil- dren's usage. These packages have been meticulously designed by Turk- cell, analyzing customer needs and curating suitable solutions. Turkcell has strengthened its reputation for inno- vation by entering the children's seg- ment with these packages. The chil- dren's segment continues to grow, and we aim to increase our awareness by reaching out to parents in all channels throughout the year. Our customers expect us to provide them with easy and fast solutions in every channel they contact us on. Turkcell is a brand that recognizes them and offers services tailored to their needs. We are also innovative and pioneering with digi- tal solutions in experience. As Turkcell, we plan our actions within the scope of the following customer experi- ence main strategies: —Increasing the share of humanless channels to offer convenience in the experience and to ensure that our cus- tomers can reach people at any time and through any channel. —Customised Personal Service at First Contact —To provide faster service to our custom- ers, to facilitate the lives of our employ- ees and to utilize the power of automa- tion for productivity opportunities —Uninterrupted Service in Extraordinary Situations “Innovative Bridge Between Technology and People” – Artificial Intelligence in Customer Experience We have established an artificial intelli- gence-based complaint management system to record our customer complaints completely and accurately. This system is designed to detect complaints during customer calls and automatically identify and report the subject of the complaint. Our model automates the process of manual categorisation of complaints by customer representatives in the call cen- ter, ensuring operational efficiency and facilitating the recording of complaints with the correct headings. Turkcell Asistan, developed 100% by Turk- cell engineers, has started to provide a smarter, faster and personalised service to its users by renewing its infrastructure, front-end experience and customer pro- cesses end-to-end as of March 2024. This transformation process has enabled us to integrate many of our unique technol- ogies, which are protected by patents, Nearly 20 million customers engaged in 84 million chats through Turkcell Assistant into Turkcell Assistant by centralising on the experience we want our customers to have. The objective was to empower our digital assistant to address all cus- tomer queries on a unified platform, while providing a hybrid experience with hu- man-assisted solutions for complex re- quests. Turkcell Asistan has been successful in increasing operational efficiency and strengthening customer satisfaction and loyalty. These efforts not only supported Turkcell's digital transformation goals, but also offered a distinctive experience in the sector by blending technology with human touch. In 2024, Turkcell Asistan established an innovative and reliable bridge to its customers, underpinned by both technological and human support. During 2024, nearly 20 million customers engaged in 84 million chats through Turk- cell Assistant. A 98% resolution rate was achieved at the first contact, and most transactions were completed in the first interaction. With 1.3 million live support interactions, our customers seamlessly transitioned from digital assistant to hu- man support. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 159 158 | TURKCELL 2024 INTEGRATED ANNUAL REPORT The Turkcell Voice Response System is undergoing continuous development to provide a proactive and personalised service by anticipating customer needs, while also facilitating easy access to cus- tomer representatives. In 2024, it support- ed our customers in a total of 61 million calls and enabled 6 million calls to meet directly with the customer representative. Our voice response system, driven by ar- tificial intelligence, anticipates customer needs in various areas, including billing arrangements, package information, and provides personalised recommendations. For instance, if the end date of a custom- er's contract is approaching or the pack- age is about to expire, special offers are proactively recommended to the custom- er. Additionally, if a customer has been contacted by Turkcell regarding an issue and was unable to respond, upon their subsequent call back, they are provided with information regarding the reason for the contact, along with bespoke offers that are tailored to their individual needs. In the realm of social media, we provide uninterrupted service to our users, main- taining a presence on 65 accounts across various platforms, including Facebook, X (Twitter), Instagram, YouTube, LinkedIn and Tiktok. We index approximately 10 million social data points on an annual basis and implement various strategies to enhance reputation management and customer experience. We provide comprehensive support for our digital applications by establishing effective communication channels with users, aligning with our brand positioning. We respond to customer queries made via social media within approximately 12 minutes. Average Response Time of All Media and Accounts (minutes) 2019 2020 2021 2022 2023 2024 20 18 17 12 12 12 Simplified Customer Experience At our company, we specialize in re- searching and developing innovative solutions that enhance the user expe- rience and ensure customer satisfac- tion. We offer customers the option to convert their existing physical SIM cards to e-SIM cards upon request. If customers prefer the e-SIM option in their replacement SIM card requests, their requests are processed quickly in accordance with their authentication methods. This service, which is partic- ularly important for customers living abroad, allows them to instantly and easily change their SIM cards without visiting a physical Turkcell dealer, only through the Turkcell application. This service is particularly beneficial for customers who are frequently travel- ling and need to be able to communi- cate seamlessly across different coun- tries. This initiative is a key component of Turkcell's broader strategy to lever- age technological advancements and enhance customer service. The Flexible Handover process elimi- nates the need for both the transfer- ring and receiving customers to be in the same location at the same time. By enhancing the flexibility of the custom- er transaction process, Flexible Hando- ver contributes to enhanced customer satisfaction and strengthened com- petitive advantage. Simultaneously, it enhances efficiency and reduces op- erational costs through accelerated transaction processes. This initiative represents a customer-oriented and innovative approach to meeting the strategic objectives of the business. In 2024, we introduced the 'Artificial In- telligence Supported Agent Assistant in Social Media Responses' to optimise cus- tomer communication through language, tone and spelling controls, aligning with our brand standards. This agent assistant is a project designed to enhance the cus- tomer experience on social media and to assist agents in more effectively ful- filling their duties. This initiative enables us to provide real-time assistance to agents and offers a system that checks language, tone, emoji usage and brand- based spelling accuracy. In addition to these capabilities, we are continuously enhancing the functionality of our as- sistant. Recently, we have expanded its capacity to detect and prevent the use of inappropriate expressions, ensuring the maintenance of professional and re- spectful communication standards. In 2024, we also launched our 'Brand Sen- timent' project in addition to our content sentiment data, which works with 80% accuracy. The Brand Sentiment project provides insight into the general percep- tion and emotional attitude towards our brands across various channels, and this data is reported accordingly. We utilize brand sentiment metrics to assess overall brand perception at the macro level. On the other hand, content sentiment analy- sis is used to measure the impact of indi- vidual posts and messages. Value-Oriented and Responsible Supply Chain Management We implement our policies rigorously, in- cluding basic principles such as respect- ing employee rights, not employing child labor and not engaging in forced labor practices. We have committed to ending child labor under Alliance 8.7 and expect all our suppliers to strictly comply with these principles. We ensure that our business partners adopt a responsible management ap- proach in line with the Code of Ethics, Human Rights and Environmental Policies published on our supplier portal. When evaluating potential new suppliers, we consider criteria such as quality-price balance, past performance, market con- ditions and references, as well as sus- tainability and ecological sensitivities. As of 2024, we have integrated sustainabil- ity criteria into our processes for critical hardware, software and non-technical purchases. In our purchasing categories, which are categorised according to the Kraljic Ma- trix, we regularly evaluate our suppliers in terms of commercial performance, qual- ity, delivery, process management and innovation. For companies scoring below 70 points, we offer sustainability training through Turkcell Academy. We are committed to managing our supply chain with transparency and re- liability, through regular audits and se- nior management reporting. As of 2024, no negative environmental or social in- cidents arising from our suppliers have been identified. We follow national and international standards to make our procurement pro- cesses fully transparent. We conduct our We restructure our business processes, logistics operations and technological infrastructure using a holistic approach to make our supply chain agile, flexible and sustainable. By entering into framework agreements with all our business partners, we ensure that our conduct is always ethical, fair and transparent. procurement processes in such a way that the following rules and standards are continuously met: —Sarbanes-Oxley Act (SOX) —Security Exchange Commission (SEC) Regulations —Foreign Corrupt Practices Act (FCPA) —Capital Markets Board (CMB) Regula- tions —Information and Communication Tech- nologies Authority (ICTA) Regulations —Liabilities regarding the Turkish Code of Commerce (TTK) —Liabilities regarding the Turkish Penal Code (TCK) —Liabilities regarding the Turkish Tax Legislation —ISO 9001 Quality Management System and ISO 27001 Information Security Management System —Customs Law No. 4458 and Free Zones Legislation —Liabilities regarding other countries that we operate in (Belarus, TRNC) As part of our 2024-2026 strategy, we aim to improve ESG performance by accelerating the sustainability trans- formation of our supply chain, improve emission calculations, support sustain- able logistics management and increase supplier diversity. The Supplier Human Rights Due Diligence and Sustainability Performance Assess- ment projects are designed to measure the performance of suppliers in areas such as human rights, occupational health and safety, environment and busi- ness ethics. These projects also involve the use of artificial intelligence to monitor supplier development. Assessing 250 stra- tegic suppliers, we aim to minimize risks and enhance supply chain transparency. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 161 160 | TURKCELL 2024 INTEGRATED ANNUAL REPORT We are committed to implementing sus- tainable solutions through digitalisation and optimisation in our logistics pro- cesses. We have achieved a significant reduction in paper usage, with digital ac- tivation in sim card deliveries saving 700 thousand pieces of paper per year. We have also enhanced efficiency in order processes through the integration of ro- bot technologies. Furthermore, we have attained a 33% fuel reduction by leverag- ing local centers for order distribution. We are expanding our distribution network with electric vehicles and minimising our environmental impact by reducing the use of plastic. We are committed to ensuring a sustain- able transformation in our stores by using recycled materials, energy-efficient light- ing, sensor systems and digital screens. We have adopted the Disabled-Friendly Store concept in all 98 of our stores across Türkiye, with ramps facilitating access for customers with physical disabilities, the elderly and those with prams. Supplier Ecosystem Management We place the value-oriented studies we carry out with our suppliers under a single team in order to ensure rapid applicabil- ity. As the Supply Chain Process Devel- opment team, we carry out localization studies, SME and start-up support pro- grams, collaborations through interna- tional and local sectoral organizations, supplier-oriented innovation studies, supplier diversity and development, risk and sustainability analysis. As in previous years, we held the Turkcell Supplier Summit event again in 2024. This event provided us with an opportunity to engage with our supplier ecosystem in person. During the event, we presented our Supplier Based Innovation, Localism, My Principal Partner and Sustainability programs, which are designed to en- hance the ecosystem. We also highlighted our Supplier Diversi- ty initiative, which includes disaster area suppliers and women entrepreneurs. We also took the opportunity to inform our companies about our communication channels for new idea applications. Localization Efforts We prioritise domestic and national technological transformation to support the growth and sustainability of the en- trepreneurship ecosystem in Türkiye. We support domestic producers through category localization, supplier collabo- rations, technopolis collaborations and entrepreneurship support programs, and we carry out strategic efforts to attract global investment to Türkiye. As part of Turkcell's Localization Program, we prioritise local suppliers in network technologies, software and other val- ue-added services. We have developed access and security services in a single package in collaboration with a local provider and are offering them to our corporate customers. We are replacing imported solutions with local alternatives through projects such as the localization of a critical application that generates alarms and performs inter-device impact analysis in our fixed and mobile network. In 2024, we achieved our total procure- ment volume targets, with 61% of the total being completed in line with our localiza- tion strategy. We prioritise products pro- duced in Türkiye, and we are committed to the employment of the domestic work- force in service procurement. In 2020, we launched a new acquisition model, and we continue to visit tech- noparks and run promotional activities to support start-up companies. As part of the Büyük Ortağım (My Principal Partner) Program, we have successfully conclud- ed 49 business agreements with 36 com- panies affiliated with 20 technoparks across 12 provinces, resulting in a transac- tion volume of TRY 30 million. In the coming period, we will continue to contribute to the entrepreneurship eco- system and Türkiye's digital economy by continuing our projects that encourage domestic production without slowing down. Supplier-Oriented Innovation Projects In 2020, we launched the Supplier Axis Innovation (TEI) program, which aims to encourage innovation within the supplier ecosystem. The program invites suppliers to submit innovative ideas, with contri- butions from relevant business units and purchasing managers. The projects are presented to the Supplier Axis Innovation and Localization Committee, which in- cludes Turkcell Assistant General Manag- ers as the jury. The presentation includes additional savings, process and quality improvement, revenue potential and sus- tainability contributions. The successful projects are currently being implemented. The committee has approved a number of projects, including the development of a low-cost domestic network invento- ry management system, the provision of access and security services as a single package in collaboration with a local company, and the delivery of this ser- vice to customers who typically do not receive security services. Other projects include the use of solar panels to meet the energy needs of field equipment, and the production of composite manholes for fiber optic boxes, which are both cost-effective and pose a reduced risk to occupational safety. The development of nano-trenching tools that increase oper- ational efficiency with shorter excavation sections and cause the least disturbance to the environment, the use of mobile caravans instead of mobile vehicles that provide gravity support to regions for uninterrupted communication, the devel- opment of telescopic towers that provide mobility for disaster and crisis manage- ment, artificial intelligence-supported software applications to support human resources applications and call center assistants can be given as examples. As part of the program, a total of 120 ideas were evaluated, and by the end of 2024, 18 ideas had been presented to the committee and 14 ideas had been approved and implemented. The projects have generated a total additional gain of TRY 113 million, thanks to the savings and income contributions. The target for the next 5-year period is to achieve a poten- tial contribution of TRY 523 million. Equality of Digital and Social Opportunity At Turkcell, we harness the restorative and equalising power of technology to provide equal access to information for children, women, the disabled and the el- derly, thus ensuring that no one is left be- hind. We are committed to inspiring and unleashing potential. Through our proj- ects, sponsorships and events in many fields, we transform the driving power of technology into benefits for all, with an inclusive and sustainable approach. My Dream Companion My Dream Companion is dedicated to promoting equal access to information and facilitating independent participation in social life for the visually impaired. My Dream Companion is a service that can be accessed via an iOS or Android mobile application or by 8020 IVR line. It has been developed to assist visually impaired people with navigating indoor areas, such as Turkcell stores, shopping malls, universities, and with providing in- stant audio description technology for movies broadcasted in movie theaters and on digital platforms. Since 2012, the service has also offered access to con- tent such as current news, columns, au- diobooks, and educational resources. As part of the Disabled-Friendly Stores Project, 98 Turkcell stores in 76 cities of Türkiye were made accessible, and the Dream Companion indoor navigation technology enabled the visually im- paired to easily find what they are look- ing for in the store. In 2024, we expanded the scope of our audio description technology with 65 films, providing audio description for more than 400 films in total to the visu- ally impaired. We also developed our live description technology to provide description for performances such as theater and musicals. Furthermore, as in previous years, we provided the visually impaired with the opportunity to follow the events we sponsored at the Zorlu PSM Turkcell Plat- inum Stage at the same time as every- one else, without missing any details. This year, we provided live description of the Shakespeare in Love play in March and the 1923 Musical in May. Visually impaired art lovers attending the play were able to enjoy the performance by listening to detailed descriptions of the decor, costumes and the actors' performances via the audio description feature of My Dream Companion. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 163 162 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Accessibility in Service Processes We prepared sign language and audio narrated versions of informa- tion packages, including payment service agreements, resolution of disputes and product usage information. This was to directly address the needs of our visually and hearing-impaired customers, who often face difficulties accessing such information. The packages are now available on our corporate website. Our customers can now access our Face-to-Face Customer Services from the Turkcell mobile application, Turkcell and Superonline Stores, and receive video services in sign language every day of the week be- tween 10:00 and 01:45. This service, which is free of charge for our hear- ing-impaired customers, allows outgoing and return calls to be made to our customers. If customers wish to contact our call center, they can do so by clicking on the link in the SMS text we send them. Our dedicat- ed team provides sign language services to an average of 3,400 video service requests per month. The Digital Spring Project With the support of the Ministry of Family and Social Services, we have established our Digital Spring Technology Rooms in 20 nursing homes across Türkiye. The aim of this initiative is to provide technological equipment, comfortable seating and ex- perience areas that will enhance the lives of those using them. Turkcell's digital appli- cations enable senior citizens to engage in a variety of activities, including watch- ing TV, listening to music, making video calls with relatives, conducting e-govern- ment transactions, playing digital games, and exploring the beauty of our country in a virtual environment with VR glasses. In this context, we are committed to our mission of leveraging technology to en- hance the well-being of our elders re- siding in nursing homes. Our goal is to combat the adverse emotional impact of the pandemic by fostering a sense of connection and engagement. Our objec- tive is to facilitate connections between our elders and the digital realm, thereby fostering increased social engagement. The project involved the establishment of Digital Spring Technology Rooms in Os- maniye, Adana, Aydın, Samsun and Erz- incan in 2023. We continued to facilitate connections between technology and our elders by extending our reach to a total of 10 nursing homes in Ankara, Bur- sa, Izmir, Osmaniye and Istanbul, which were previously included in our project. In 2024, we expanded our reach by open- ing Digital Spring Technology Rooms in 10 nursing homes affiliated with the Ministry of Family and Social Services across 10 provinces. With the slogan 'There is no age for learning with Turkcell Digital Spring!', we ensure that our elders can access the online world safely with these technol- ogy classes, which we have established in nursing homes as part of our Digital Spring project. As part of the Digital Spring project, we are pleased to announce that, in addi- tion to the 'Digital Literacy' training ses- sions that we initiated in 2024, our senior citizens will become more aware of their digital capabilities and feel more mo- tivated to use their digital equipment independently. The training program en- compasses a range of topics, including digital literacy, cyber security, e-govern- ment, e-citizenship applications, social media, digital signatures, digital banking transactions and Paycell. We have suc- cessfully completed our training program in nursing homes within our established Digital Spring facilities. At Turkcell, we are dedicated to creating value by offering technology to enhance people's lives. We are committed to serv- ing society by supporting projects that generate social benefits. Since our incep- tion, we have prioritised the equalising power of technology as a central ele- ment of all our social responsibility initia- tives. We implement social inclusion proj- ects with the objective of ensuring equal access to information for all. The Digital Parent Project In the digital age, children are exposed to a wealth of content that is both abundant and unregulated. The Digital Parent BiP channel, supported by age-appropriate content guidance, aims to empower parents by providing access to suitable content and informative articles and videos that offer guidance on raising children in the digital age. This channel provides parents with the ability to filter content by subject, access reviewed articles and content, observe their children's achievements, select the appropriate content and make the most efficient use of this digital experience by quickly accessing expert opinions. Close to Life Project We are meeting the counselling and psy- chological needs of children with autism and their families through the Close to Life Project, which we launched in part- nership with the Tohum Autism Founda- tion to support children with autism and their families across Türkiye. With BiP, the communication and life plat- form that uses technology to overcome barriers, we have created a communi- cation channel where families of children with autism can find answers to their questions about autism and special edu- cation from expert doctors and teachers. Turkcell's digital applications enable senior citizens to engage in a variety of activities, including watching TV, listening to music, making video calls with relatives, conducting e-government transactions, playing digital games, and exploring the beauty of our country in a virtual environment with VR glasses. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 165 164 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Whiz Kids Project Whiz Kids – Artificial Intelligence Marathon We launched the Artificial Intelligence Marathon program, which we have developed in collaboration with the Ministry of National Education. The ob- jective of this initiative is to introduce gifted students to the fields of artificial intelligence and data science, thereby enhancing their expertise in these ar- eas. The program is designed to equip these students with the necessary skills to utilize artificial intelligence in finding solutions to pressing prob- lems. The program has been meticu- lously designed for gifted high school students enrolled at Science and Art Centers (BİLSEM), which are affiliated with the Ministry of National Educa- tion. The program offered 75 hours of training in artificial intelligence, data science and machine learning over a period of 2.5 months to students par- ticipating in the marathon from across Türkiye. The program was designed to provide equal opportunities through online training. The program attracted a total of 801 Bilsem students and 173 teachers from 70 cities. Following the training program, a hackathon was organized, where students partici- pated individually or as a team, and were able to experience artificial in- telligence through concrete projects. During this hackathon, students de- veloped Turkcell's Turkcell Asistan, Fizy and Pasaj products with a focus on artificial intelligence. During the hack- athon, they received feedback from Turkcell employees and designed their projects in the most applicable way. Face-to-face jury interviews were held with the participating teams, and the projects that excelled in the deter- mined criteria were awarded. As part of the Turkcell Whiz Kids Proj- ect, we have established a presence in 87 laboratories across 55 cities. As part of this initiative, we have also organized face-to-face technology workshops for students to grasp the basic coding logic. This year, at the Teknofest Adana event, we provided fundamental algorithm and coding training to more than 1,200 students. Whiz Kids - Social Return on Investment (SROI) Analysis SROI (Social Return on Investment) is the world's most widely used impact analysis framework for understanding the concept of social value, manag- ing and maximising social impact. The SROI framework is a versatile tool that can be used for strategic planning and improvement, impact communica- tion and investment decisions. It also guides managerial decisions in terms of effective and efficient use of corpo- rate resources. In this context, a com- prehensive SROI analysis was carried out in the Whiz Kids project. The aim of this study was to understand the changes experienced by students and teachers who benefit from the Whiz Kids Classes established in BİLSEMs in cooperation with the Ministry of Na- tional Education across Türkiye, and to review the project by taking these changes into account. The study revealed that for every TRY 1 invested in the Whiz Kids class- rooms, a social value of TRY 2.57 was created. This SROI analysis was con- ducted by attributing financial value to the social outcomes of the change in the target groups thanks to the project. The calculated SROI output is the ratio of the social value creat- ed to the investment made. The SROI analysis of the Whiz Kids project was audited and approved by Social Val- ue International. We are the first and only company in the technology and telecommunications sector in Türkiye to manage its social impact activities in accordance with the Social Value Principles. Whiz Kids project and the social im- pact analysis study of the project were shared by GSMA as a good ex- ample in the 2024 Mobile Industry Im- pact Report. The report was present- ed in New York during the 77th General Assembly Week of the United Nations. 82% increase in the level of awareness and interest in technology 83% increase in level of curiosity 84% increase in academic performance 84% increase in self- confidence 91% positive improvement in emotional well- being 88% positive contribution to professional development After being educated in Whiz Kids classes, students were observed to gain; Teachers in Whiz Kids classes were observed to gain; As part of the Whiz Kids Project, which is being carried out by Turkcell in cooperation with the Ministry of National Education, we aim to bring together Türkiye's gifted students with technology and prepare them for the world of the future. At Whiz Kids Technology Laboratories, which we have established in Science and Art Centers (BİLSEM) across Türki- ye, we provide our students with op- portunities such as laptops, 3D printers, electronic and robotic coding kits and toolkits; we ensure that children re- ceive training in artificial intelligence, coding, space science, robotics, smart home and cloud technologies, and support them in developing projects in these areas. Since 2016, more than 66,000 students have used Whiz Kids classrooms every year. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 167 166 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Sports Sponsorships National Football A Team Sponsorship Since 2005, we have proudly held the po- sition of Main Sponsor for both the Men's and Women's National A Football Teams, a role we initially assumed in 2002 as the 'Of- ficial Communication Sponsor'. Our Men's National A Football Team, which we have proudly supported for more than 20 years, reached the quarter-finals of the 2024 European Championship. We continue to support our National Teams in interna- tional tournaments, believing that they will contribute to the development of national football and inspire pride in our country. Turkcell Women's Football Super League In line with our commitment to equal access to sports, we are taking steps to develop the rapidly developing and growing women's football branch in our country. We are committed to expanding the reach of the Turkcell Women's Football Super League, of which we are the prima- ry sponsor, and to enhancing the visibility of women's football. We are proud to an- nounce that the play-off and final match- es of the Turkcell Women's Football Super Social Investment and Sponsorship Projects Caretta Caretta Since 2022, Turkcell has been sending an informative SMS to visitors at Anta- lya Çıralı beach in the May-September period. We are working closely with Çıralı Ulupınar Cooperative in this re- gard. The content of the SMS includes the issues that should be done and paid attention to in order to protect Caretta Caretta nests. In 2024, a total of 206,517 SMS messages were sent as part of this initiative. Tracking endangered Mediterranean seals with artificial intelligence We are working with the Mediterra- nean Conservation Association, which carries out important studies on the monitoring and restoration of marine ecosystems where endangered Med- iterranean monk seals live, to protect biodiversity in Türkiye with our artificial intelligence applications. The process, which is manually monitored by experts by recording images 24/7 with under- water cameras in the caves, is carried out automatically with our artificial in- telligence technology. This ensures the effective monitoring of Mediterranean seals. The system we have installed im- mediately notifies the Mediterranean Conservation Association when the seals enter the designated area. The system also detects and alerts other creatures (humans or other animals) entering the cave. League, which has seen a remarkable surge in interest over the past four sea- sons, were broadcasted on television and digital channels for the first time. e-National Teams Sponsorship In 2021, we expanded our cooperation with the Turkish Football Federation in the field of digital games and became the name sponsor of the player selection pro- cess of the newly established e-National Teams in FIFA and PES games. We also as- sumed the main sponsorship of the e-Na- tional Teams, where we held a selection period under the name Turkcell e-Na- tional Team Selection. We are confident that our National Teams will successfully represent our country in these new and emerging areas. We are committed to the belief that technology has a unifying effect, and our goal is to facilitate equal participation in society by promoting social inclusion. Turkcell Super Cup In accordance with the terms of our agreement with the Turkish Football Fed- eration, we are pleased to continue our sponsorship support in the field of football with the Turkcell Super Cup. This presti- gious event brings together the champion teams of the Super League and the Turk- ish Cup, which we have had the privilege to support in previous years. Athletics National Team Sponsorship At Turkcell, we prioritise the development of all branches of sports. We are proud to continue the successful Athletics and Swimming Project, which we launched in 2013 in cooperation with the Turkish Athlet- ics Federation. As part of this initiative, we are proud to provide the most substantial and long-term support for amateur sports in Türkiye to date. We are committed to the growth and development of sports in our country. We collaborate with various federations to implement innovative and modern management models, expand the pool of young athletes, ensure the conti- nuity of athlete development in the elite category, and facilitate institutional and technological advancement. Our national team, under the main spon- sorship of Turkcell, has continued to en- joy success in athletics and swimming in the 2024 season. In international athletics tournaments, our athletes have won a to- tal of 948 medals for our country. In addi- tion to these achievements, the number of licensed athletes and swimmers reached 135 thousand in 2024. Through our social responsibility proj- ects, we aim to create value for society by ensuring that no one is left behind in terms of access to information and technology. We contribute to envi- ronmental sustainability and social development by allocating up to 1% of our income to social investment proj- ects on an annual basis. We also seek to enhance the accessibility of sports, culture and arts for all segments of society, while actively promoting the involvement of women, men, children, the elderly and disabled individuals in these areas. For many years, we have been carrying out pioneering projects to strengthen Türkiye's art, sports and cultural heri- tage in the national and international arena, and we support the success of our artists and athletes. Furthermore, we are committed to contributing to the development of our country by providing support for a variety of events, congresses and con- ferences in numerous fields, including technology, health, environment, ener- gy, economy, marketing and informatics. Number of licensed athletes and swimmers reached 135 thousand in 2024. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 169 168 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Turkish Sports Federation for the Physically Disabled Our successful cooperation with the Turk- ish Sports Federation for the Physically Disabled, which commenced in 2016, con- tinues to achieve significant success in the amputee football branch. Our national team triumphed over Spain in the final of the EURO 2024 Amputee Football Cham- pionship, which was hosted by France, thus securing the championship title. Our amputee footballers have become a source of inspiration for society, demon- strating remarkable determination and success in overcoming challenges. Turkish Federation of Traditional Sport Branches By taking on the primary sponsorship of the Federation of Traditional Sports Branches of Türkiye, we aim to promote and ensure the success of our traditional sports at both the national and international levels. This sponsorship covers 9 sports branches: These include Equestrian javelin, Equestri- an horse riding, Horseback Archery, Aba Wrestling, Salwar Wrestling, Belt Wrestling, Traditional Sleigh, Sleigh and Kokboru. Our sponsorship will support 247 clubs, over 20 thousand athletes, 351 coaches and 1,700 referees spread across 64 cities. To increase the reputation of our traditional sports and ensure their future success, we are creating opportunities for these sports branches specific to our culture to become widespread and support young people to turn to these sports in line with their healthy, active and successful upbringing. Our Culture and Arts Sponsorships Zorlu PSM (Performing Arts Center) Since 2018, Zorlu Performing Arts Center's (PSM) main drama stage, which is our venue sponsor under the name "Turk- cell Stage", has been hosting world-re- nowned shows and performances. In addition, Zorlu PSM's theater stage con- tinues to welcome art lovers as "Turkcell Platinum Stage". All cultural and artistic events such as musicals, concerts and plays are held on Turkcell stages. Since 2018, we have hosted more than 2 million visitors in nearly 2,500 events as part of our cooperation with Zorlu PSM. As part of our commitment to accessi- bility, we have hosted visually impaired art enthusiasts at events such as the- ater and musicals held on the Zorlu PSM Turkcell Stage, utilizing My Dream Com- panion live description technology. Circular Electronics Children’s Digital Book We have published a children's circular electronics book titled 'Ant Leg and Gi- ant Leaf'. This book has been prepared with the contributions of the Informatics Industrialists Association (TÜBİSAD) and the Educational Volunteers Foundation of Türkiye (TEGV), which we have been in cooperation from 2022 to April 2024. We have continued to spread environ- mental awareness to the whole society by taking part in the Turkcell My Dream Companion and fizy applications. Chil- dren who completed the book received a 'Circular Electronics Certificate' in rec- ognition of the techno waste they con- tributed to Turkcell stores. This initiative encouraged children to adopt a pro- active role in the management of elec- tronic waste within their households. The project has been recognized with prestigious awards, including the Gold- en Compass Public Relations Award in the Environment category and the IPRA Golden World Awards. Our Other Sponsorship Projects Turkcell Platinum Park Turkcell Platinum Park, located on 200 acres of land in Maslak, offers visitors a chance to experience a change of pace from the daily routine of city life. Since its opening in 2018, the site has welcomed nearly 1.5 million visitors, and in 2024, nearly 400 thousand people visited. Turkcell Platinum Park, which brings together offroad enthusiasts, is strategically located in the heart of Istanbul and in the middle of nature, offering a variety of experiences with exclusive benefits for our customers. Turkcell Platinum customers can enjoy a variety of outdoor activities, includ- ing off-road, archery, jungle run and open-air cinema. Turkcell Platinum Park is a family-friendly destination, offering a pleasant environment for children to learn about life in nature in a fun way. The Offroad Challenge Race, which was held for the 4th time in 2023, is a prime example of our commitment to both the venue and the Platinum brand image. In 2025, we will be updating the visual elements of the park to align with the Platinum brand's refreshed identity. Summer and Winter Locations As Turkcell, we continue to offer Plati- num advantages to our customers in Kartalkaya, one of the most important ski resorts of our country, which has been visited by more than 500 thou- sand people in the season since 2014. In addition, we provide special privileges and advantages to our subscribers by integrating our different brands at ex- clusive beaches in Çeşme and Bodrum in summer. TEKNOFEST Aviation, Space and Technology Festival More than 1 million people attended TEKNOFEST, Türkiye's largest avia- tion, space and technology festival. The festival was broadcasted on television screens and digital plat- forms, allowing it to reach audiences across the country and around the world. The event featured a range of activities, including technology com- petitions, an initiative program, spec- tacular air shows, award ceremonies, advanced technology simulations, scientific workshops and exhibitions. TEKNOFEST offered visitors of all ages a unique opportunity to engage with science and technology in 2024. As Turkcell, we participated in this festival with our extensive range of products and services, along with our collab- orations with various segments. We provided coding training for children, helping them navigate the online world safely. The Smart Wi-Fi Cov- erage Competition, which was held for the first time under the leadership of Turkcell, aimed to offer innovative solutions for the coverage efficiency of internet users indoors. Sectoral Supports As Turkcell, we aim to extend our lead- ing position in the telecommunications sector to other sectors, adopt innova- tive approaches and contribute to the development of these sectors. In this direction, we sponsor congresses and conferences on many topics ranging from HR applications to digital market- ing, from supply chain management to aviation and space technologies, from cyber security to techfin solutions. Through our sponsorships, we engage with a diverse range of audiences, in- cluding entrepreneurs, students, inves- tors, NGO representatives, academics, white-collar workers, and middle and senior managers of corporate compa- nies. With a portfolio of over 50 con- gresses and conferences organized during the year, we have a proven track record of delivering our messag- es to hundreds of thousands of people. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 171 170 | TURKCELL 2024 INTEGRATED ANNUAL REPORT NATURAL CAPITAL We manage the climate and environmental impacts across the Turkcell Group value chain within the framework of our "Positive imprint to the Environment" strategy. TURKCELL 2024 INTEGRATED ANNUAL REPORT | 173 172 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Performance Indicator Short Term Target Medium Term Target Long Term Target 2023 Performance 2024 Performance Target Towards Current Status Meeting the electricity demand from renewable sources - - 100% 100% 100% Renewable energy investments - 300 MW SPP, 18 MW WPP, Installed Power Investment (2023-2025) 300 MW SPP, 18 MW WPP, Installed Power Investment (2026) 22.2 MW Installed Power 32.9 MW Installed Power ↑ Achieving Net Zero operation level - SBT-i approved target: 50.47% reduction of Scope 1-2 emissions, 25% reduction of Scope 3 emissions by 2030 100% (in 2050) - - Reducing GHG emissions - - 55% (in 2030) 40,268 tonnes CO2e 7,977.99 tonnes CO2e Recycling of all waste 100% - Climate and Environmental Management We manage the climate and environ- mental impacts across the Turkcell Group value chain within the framework of our "Positive imprint to the Environment" strategy. The Board of Directors assumes the highest level of responsibility for the management of the business process- es we carry out in line with this strategy. The Integrated Value Creation Commit- tee and the Sustainability Committee are responsible for effectively carrying out the strategic planning and management processes of our climate and environ- mental sustainability efforts, and commu- nicating the performance results to our Board of Directors and all our stakehold- ers through the Integrated Annual Report. Corporate Social Responsibility, Sustain- ability and NGO Relations Unit is respon- sible for coordinating the management of our environmental impacts, with a par- ticular focus on climate change. The Unit's activities are underpinned by a compre- hensive planning framework. Our units re- sponsible for the management of business processes and assets where impacts oc- cur are meticulous in their efforts to reduce climate and environmental impacts and improve performance. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 175 174 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Board of Directors Final decision making body for sustainability and climate change related issues Periodic information provisions Preparation of bimonthly risk reports Defines and implements short, medium and long term actions in line with ESG policies, priorities, risks and opportunities. SUSTAINABILITY COMMITTEE Assesses risks and reports mitigation measures to the Early Detection of Risk Committee CORPORATE RISK MANAGEMENT Coordinates company-wide efforts with a holistic approach to achieve common sustainability and climate goals. Periodically re-evaluates and develops the sustainability strategy and identifies prioritised issues. CORPORATE COMMUNICATIONS, MEDIA AND BRAND MANAGEMENT DIRECTORATE Manages environmental and climate risks and opportunities INTERNAL CONTROL AND CONTINUOUS IMPROVEMENT DIRECTORATE Periodically reports ESG activities to the Board of Directors and inform relevant Board Committees. INTEGRATED VALUE CREATION COMMITTEE Presents solution-oriented proposals to the Board of Directors regarding the development and implementation of the Company's corporate governance principles, and oversees investor relations and sustainability activities. CORPORATE GOVERNANCE COMMITTEE Identifies environmental and climate risks that could impact the existence, development, and continuation of the company, conducts risk mitigation studies. EARLY DETECTION OF RISK COMMITTEE ESG targets, particularly in the areas of climate and environment, are inte- grated into the job descriptions of our relevant managers and employees. Ac- cordingly, ESG targets are differentiat- ed according to the business areas of our employees and used as one of the basic indicators in individual perfor- mance evaluations. For instance, while ensuring energy efficiency in grid op- erations is associated with the goal of reducing carbon emissions, targets for minimising environmental impacts are included in administrative affairs units. Similarly, the business plans of various departments clearly emphasise critical targets such as managing sustainabil- ity risks and opportunities, reducing carbon footprint and using renewable energy. We adopt a remuneration model that rewards the achievement of sustain- ability goals, especially those relating to climate and the environment. These tainability training to all employees in 2024 and publishing quarterly bulletins. Furthermore, we allocated 40 hours of sustainability training to our employ- ees working in critical units, such as the supply chain, logistics and data center. We have also planned to develop new projects in 2025 in line with these train- ing programs. Furthermore, we have continued to increase the experience and competencies of our employees by using the services of external experts and consultants in the relevant process- es. In this regard, in 2024, we received consultancy services for projects such as international CDP Climate Change reporting and ISO 14064 Reporting. identify environmental risks that may arise from our operations, particularly climate change, or that could poten- tially impact our business success. We then systematically evaluate these risks alongside the opportunities they present. The identified risks and op- portunities are then transformed into performance and time-based SMART targets in line with our integrated val- ue creation model and sustainability strategies, and managed effectively. In the previous reporting period, KPIs were assigned to all employees, includ- ing our CEO, and monitored at minimum annual intervals. The activities carried out in line with our climate and environ- ment strategy and the outputs achieved are comprehensively evaluated in terms of financial, operational, legal compli- ance and environmental aspects. We allocate the necessary financial resources for the effective manage- ment of environmental impacts arising from our assets and business process- es, and for the successful implementa- tion of performance improvement and control activities. These investments are a core element of our mission to build a sustainable future and reflect our commitment to fulfill our environmental responsibilities. In this context, during the reporting period, we allocated a total of USD 84.47 million resources to fulfill our climate and environmental responsibilities. As well as our environ- mental investment expenditures, during the reporting period, we invested USD 176.75 million in our data centers. These data centers provide energy efficiency at international standards and have LEED Gold certificates. The design PUE value of Turkcell data centers is 1.3, well below the global average of 1.55. This contributes to the enhancement of en- ergy efficiency in our data centers and the development of our sustainable digital infrastructure. The main principles that guide our climate and environmental management efforts are outlined in the Turkcell Environmental Policy. Compliance with all legal regulations, which are among these principles and binding for Turkcell, forms the basis of our working standards. During 2024, there were no incidents of non-compli- ance with climate and environmental regulations, no complaints were sub- mitted to our company management in this regard, and no material or non- cash penalties were incurred due to non-compliance. In the field of climate and environmen- tal management, we adhere to pro- cesses that are in accordance with the ISO 14001 Environmental Management System Standard, ISO 50001 Energy Management System Standard and ISO 14064 Greenhouse Gas Calcula- tion, Reporting and Verification Stan- dard. Through periodic independent audits, we successfully complete the certification processes and ensure the reliability and continuity of our systems. We address our climate and environ- mental management processes with a risk and opportunity-oriented ap- proach. As part of our corporate risk management strategy, we proactively For your reference, you can access our certificates for all the standards we follow on our corporate website. targets, which extend from the CEO to all employees, affect the premium pool in the range of 5%-10% as one of the factors determining the performance bonuses of our employees. The regu- lar review of sustainability targets and the consideration of achievements in remuneration reinforce the adoption of ESG criteria throughout the company. We consider the professional devel- opment of our employees to be a stra- tegic priority within the framework of our vision of sustainability leadership in our sector. We have strengthened our expertise in areas such as climate and environment, ESG policies, energy ef- ficiency, climate change and emission management through the publication of sustainability reports since 2013 and Integrated Annual Reports since 2020. Furthermore, we have been diligent in fostering sustainability awareness and competencies throughout the com- pany by offering comprehensive sus- In the field of climate and environmental management, we adhere to processes that are in accordance with the ISO 14001 Environmental Management System Standard, ISO 50001 Energy Management System Standard and ISO 14064 Greenhouse Gas Calculation, Reporting and Verification Standard. 40 we allocated 40 hours of sustainability training TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 177 176 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Environmental Management and Investment Costs (USD Million) 84.5 76.4 95.1 2023 2024 2022 Climate Change We remain committed to our role as leaders in the global effort to combat climate change, as demonstrated by our active participation in internation- al initiatives. In this regard, as Turkcell Group, we are proud to be among the first 8 operators worldwide to join the GSMA Mobile Net Zero initiative, which aims to achieve net zero targets in the telecommunications sector. We are also the first GSM operator to repre- sent Türkiye on this platform. We are also active contributors to GSMA's Sus- tainability Network. Another key step in supporting our net zero target was to transform our emis- sion targets into a Science Based Tar- get (SBTi) systematic. In 2023, as Turkcell Group we broke new ground in Türkiye by having our SBTi net zero target plan approved. In accordance with this plan, we aim to reduce our Scope 1 and 2 greenhouse gas emissions by 50.47% and our Scope 3 emissions by 25% by 2030 compared to the base year of 2020. We also regularly report to the Car- bon Disclosure Project (CDP) Climate Change Program, where our efforts to combat climate change are evaluated from a broad perspective, from gover- nance structure to risk and opportunity systematics. Our environmental and climate perfor- mance is also evaluated in the Borsa Istanbul Sustainability Index and MSCI ESG Index. In 2024, Turkcell was included in the BIST 25 Sustainability Index, once again demonstrating our success in be- ing among the top 25 companies with the best sustainability performance among listed companies in Türkiye. Management of Climate Risks and Opportunities We regularly evaluate and closely mon- itor the opportunities and risks posed by climate change in line with our Enter- prise Risk Management framework. As part of an Enterprise Risk Management (ERM) procedure in accordance with the COSO ERM framework and ISO 31000 Risk Management standard, we address all risks and opportunities systematically. In this context, risks and opportunities re- lated to climate change are also meticu- lously evaluated and made a part of our strategic steps for the future. In determin- ing these risks and opportunities, internal and external stakeholder requirements, TSRS compliance criteria and peer com- pany practices are also utilized. Enterprise Risk Management is the pro- cess of identifying, assessing and man- aging potential risks that may affect an organization's objectives and opera- tions. It involves a comprehensive ap- proach to address various types of risks, including financial, operational and stra- tegic risks. Time Horizon Years Identification/Description Short 0-3 During this period, strategic planning and risk assessment of Turkcell operations are carried out. Regulatory and tech- nological changes have been identified, and no undesir- able events are expected in this timeframe. Medium 3-8 While it may not be possible to adapt to regulatory chang- es immediately, Turkcell has the ability to adapt to changes in the technology and policy environment in the medium term. In this timeframe, physical changes are predeter- mined. The physical changes identified are largely due to greenhouse gases that have already accumulated in the atmosphere in past years. Long 8-30 The physical impact of climate change on the world may become more severe, depending on the management and implementation of policies. The development of technology is highly uncertain. Turkcell and all Turkcell Group compa- nies aim to manage the risks that may affect the achievement of company and directorate targets set in line with their strategies within the scope of the Enterprise Risk Management (ERM) system, and to this end, they adopt a pro-active risk management policy that will turn threats into opportunities. CRM system was created in order to; —Determine and coordinate the meth- odology to comprehensively identify, assess and effectively manage risks, —Provide a holistic, accurate and complete information platform on risks that affect management deci- sion-making processes, —Provide added value for the compa- ny to achieve its goals. —Elaborate the risks by process and service based scenarios. The identification, assessment and prioritisation of climate risks is the re- sponsibility of our Corporate Risk Man- agement team. This team works in co- ordination with the Early Detection of Risk Committee, which operates at the Board of Directors level. In this process, each risk in our business processes is analyzed by considering the worst- case scenario. For instance, we consid- er both risks and opportunities in detail in critical areas such as reducing car- bon emissions, the effects of extreme weather events and energy efficiency. We manage climate risks by producing fast and effective solutions using pro- active and reactive approaches. Pro- actively, we collaborate with the Turk- ish State Meteorological Service (DMİ), Disaster and Emergency Management Presidency (AFAD), Geographic Infor- mation Systems (GIS) and General Di- rectorate of Forestry (OGM) to predict potential risks and take preventive ac- tions with tools such as disaster maps and weather forecasts. In our reactive approach, we detect environmental anomalies with technologies such as Emplifi, Social Sniffer and the Sensai Web Analysis Platform, and follow ear- ly warning signals with social media analysis. The impact and likelihood of risks are assessed on a 5-point scale (very low, low, medium, high, very high). Very high level (Category 5) risks require the implementation of immediate ac- tion plans and are reported to senior management. Medium-level risks are handled at directorate level, while very low-level risks are considered accept- able. These processes are continuously improved in line with the impact thresh- olds, which are updated annually. The climate risks and opportunities iden- tified within the scope of the TCFD report- ing study implemented in the previous re- porting period have also been followed up in this reporting period, as the stra- tegic planning period has not changed. The scenario analysis performed in par- allel to this also remain valid. Following a thorough risk and oppor- tunity assessment, it has been deter- mined that there are no factors that will have a significant negative impact on the Company's financial health and fi- nancial statements in the short, medium and long term. Climate change is one of the most pressing issues of our time, generating numerous acute and chronic risks worldwide. At Turkcell, we are committed to eliminating the effects of our carbon footprint by 2050 through our “Positive imprint to the Environment” strategy. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 179 178 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Climate Risk Factor 17 Risk Drivers Climate Risk Category Financial Impact Time Horizon Where Risk Occurs in the Value Chain Management of the Risk Service interruptions due to extreme tem- peratures, extreme weather conditions and natural disasters, failure to ensure busi- ness continuity of op- erations, interruption of communication in emergencies Acute and Chronic Physical Risk TRY 316,675,591 – TRY 1,283,371,509 Long Direct Opera- tions Thanks to its proactive approach, Turkcell effectively manages extreme weather conditions and natural disas- ters caused by climate change and provides long-term operational as- surance. For more information, please refer to Business Continuity Manage- ment and Turkcell Disaster and Crisis Management Program sections. Dependence on energy consumption and price fluctua- tions, increased elec- tricity costs due to regulation, extreme heat or depletion of natural resources Market Transition Risk TRY 2,953,255 - TRY 5,906,510 Medium Direct Opera- tions, Upstream Value Chain Turkcell's comprehensive energy strategy reflects its commitment to operational resilience, environmental responsibility and long-term profitabil- ity. Through advanced technologies, strategic investments and sustainable practices, Turkcell is prepared to effec- tively manage current and future en- ergy challenges. For more information, please see Turkcell Energy Solutions and Energy Efficiency sections. Climate Risk Factor18 Risk Drivers Climate Risk Category Financial Impact Time Horizon Where Opportunity Arises in the Value Chain Management of the Risk Development and/ or expansion of low emission products and services that reduce carbon emissions Market Transition Opportunity TRY 2,512,348 - TRY 12,561,741 Short Downstream Value Chain Turkcell expects the demand for tech- nology solutions to increase in order to implement more sustainable pro- cesses. In this context, Turkcell is evalu- ating new business opportunities both through its group companies (Digital Business Services, etc.) and through investments in infrastructure. For more information, please refer to Water Management, Efficiency in Data Cen- ters, Turkcell Kopilot, Digital Business Services sections. Products and services contributing to the circular economy Opera- tional Transition Opportunity TRY 63,335,118 - TRY 316,675,591 Medium Downstream Value Chain Turkcell expects the demand for products and services that serve the circular economy to increase in or- der to implement more sustainable processes. In this context, it manages circular economy activities within the framework of business continuity, in- vestment opportunities and supply chain. For more information, please see Waste Management, Recycle into Education, Circular Electronics Digital Children's Book, Turkcell New Technol- ogies Venture Capital Fund sections. Utilization of sustainable financing sources Resil- ience Transition Opportunity TRY 63,335,118 - TRY 316,675,591 Short Direct Operations During the reporting period, the use of financial instruments such as bonds and bank financing had a significant impact on Turkcell's financial position, performance and cash flows. These instruments play an increasingly im- portant role in the Group's financing strategy and support the transition to a sustainable economy. For more information, please refer to Financing Diversity and Sustainable Financing Activities sections. 17 Exposure to identified climate-related physical risks covers 100% of the company's business activities and exposure to transition risk covers 0.9% of the company's business activities. 18 Climate-related market opportunity exposure covers 3.8% of business activities and operational and resilience exposure covers 100% of business activities. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 180 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 181 Sector Indicators Climate Transition Plan During the reporting period, we pub- lished the Turkcell Group Climate Change Transition Plan, which aims to contribute to a sustainable future by transforming the way we do business from our operational processes to our decision-making mechanisms. In line with our goal of achieving net zero emissions in our entire value chain by 2050, we are moving forward deci- sively with our science-based interim targets set for 2030. We are commit- ted to reducing our Scope 1 and 2 emissions by 50.47% and our Scope 3 emissions by 25%. These targets align with the 1.5°C roadmap of the Paris Agreement, have been verified by the Science Based Targets Initiative (SBTi) and secured at the international level. Our carbon footprint calculations and climate risk analysis form the basis of our strategic decisions and allow us to adapt to the future by up- dating our targets. Our ESG commit- tees are responsible for the regular evaluation and reporting on our sus- tainability strategies, ensuring effec- tive management of climate-related risks and opportunities. We contin- uously review our energy transition plans and sustainability strategies to adapt to regulatory risks while mak- ing our infrastructures more resilient against physical risks. Simultaneous- ly, we provide our clients with digital solutions, such as IoT and big data analytics, to assist them in achieving energy efficiency and contributing to a reduction in carbon emissions. Our circular economy strategies are designed to create new revenue opportunities while reducing our environmental impact. We enhance resource efficiency by increasing the reuse of waste and ensuring cus- tomer satisfaction with our environ- mentally friendly product portfolio. Our investments in renewable en- ergy not only contribute to environ- mental sustainability, but also reduce our energy costs in the medium term. We are committed to transparency and accountability, and we regularly share our emission reduction per- formance and the progress of our transition plan with our stakeholders through annual reports published in accordance with TCFD and CDP standards. The identified risks and opportunities may also interact with each other and with the Company's short, medi- um and long term financial planning. The positive impact expected from the action to be taken in one area may adversely affect another area due to its nature. To mitigate these potential negative impacts, the rele- vant management bodies take into ac- count the trade-offs arising from related risks or opportunities when devising the necessary strategic activity plans and the associated financial resource re- quirements. For example, our renewable energy investments, which we have realized in line with the elimination of energy-based risks and significant re- duction of greenhouse gas emissions, affect investment costs in the short term, while making a significant contribution to company profitability with the im- pact it creates when evaluated in the long term. Accordingly, investments for transformation plans are financed with long-term debt instruments anchored to sustainability or climate performance. In addition, the relevant committees, which are sustainability governance bodies, evaluate the trade-offs, if necessary, for each project related to climate risks and opportunities. Our objective is to implement internal carbon pricing strategies to encour- age the execution of activities in ac- cordance with the Company's climate transition plan. In this context, as of the previous reporting period, we have ini- tiated studies for internal carbon pric- ing practices. We are committed to en- suring the seamless integration of this systematic approach across all Turkcell entities, with the objective of attaining dependable outcomes. Our commitment to tackling climate change is focused not only on achiev- ing our environmental goals, but also on enhancing our long-term business resilience and strengthening our leader- ship role in the industry. With our vision of building a sustainable future, we contin- ue to add value to our stakeholders and the world by transforming our opera- tions. This strategic approach establish- es a framework that ensures Turkcell's ongoing success by capitalising on op- portunities and mitigating risks. You can access Turkcell Group Climate Transition Plan on our corporate website. In line with our goal of achieving net zero emissions in our entire value chain by 2050, we are moving forward decisively with our science-based interim targets set for 2030. We are committed to increasing our resilience against risks such as climate change and the energy crisis, so that we can take stronger steps into the fu- ture. In line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), we have systematically identified and catego- rised the risks and opportunities as- sociated with climate change. In 2024, we published our Climate Transition Plan, which is a progress report of the TCFD. This plan enables us to direct our investments with a holistic approach by revealing our development areas and opportunity points that we can evaluate. With our solutions that shape the future, we place both our environ- mental and business strategies on a sustainable basis. Turkcell Group also considers macro- economic trends in its climate scenar- io analysis. Among these macroeco- nomic assumptions, indicators such as the course of energy prices, carbon price levels, economic repercussions of legislative and policy changes, possible technological transformation rate and demand contraction/expan- sion stand out. In order to provide a more comprehensive view of these risks and opportunities, we utilize the Telecommunication Sector Indi- cators, which are also recommended in the TSRS standards. During the reporting peri- od, indicators of e-commerce, automotive, real estate, banking, insurance, wind ener- gy, solar energy, software and IT sectors in TSRS 2 - Supplementary Guidelines, which represent Turkcell Group's subsidiaries, were also collected as consolidated data and evaluated in the materiality analysis of climate risks and opportunities. However, since these indicators were not prioritised within the framework of the materiality analysis, they were not included in the re- port. In addition, the sector indicator met- rics included in the report have not been verified by 3rd Parties. Turkcell's climate scenario analysis take into account factors such as possible fu- ture increases in energy demand, carbon pricing, regulatory changes and transition to renewable energy sources. These as- sumptions play an important role in deter- mining the Company's operational costs and investment priorities; for example, stra- tegic steps such as increasing energy effi- ciency and transition to renewable energy investments are shaped in line with these basic assumptions. Turkcell anticipates that energy consump- tion may be subject to climate-related increases (cooling needs, extreme heat, etc.) and regulatory changes (carbon pricing, electricity cost increases). “Market Risk: Dependence on Energy Consumption and Price Fluctuations”, it is estimated that operating costs may increase as cooling needs increase, while electricity costs may increase in the medium term. You can access Turkcell Climate Transition Plan on our corporate website. You can access the TCFD Report on our corporate website. Number of wireless subscribers 1,221,961 Network traffic (petabytes) 243.4 Activity Metrics Fuel Consumption 11,383.47 Natural Gas 2,062.26 Gasoline 3,648.54 Diesel 5,672.67 Renewable Energy Purchased - Elec- tricity 124,247.19 Total 135,630.65 Total Energy Use by Source (GJ) Average system downtime frequency (%) 0.23%24 Average customer downtime (min) 15.9823 23Ratio of the total duration of all interruptions in all cells to the total number of subscribersı 24 Voice service 2G+3G blended drop rate Management of Systemic Risks Arising from Technology Failures Belarus Number of wireless subscribers 38,299,24019 Number of cable subscribers 263,85420 Number of broadband subscribers 3,233,489 21 Network traffic (petabytes) 5,739 19 Number of Mobile Subscribers: 2G/3G/4.5G Total number of subscribers 20 Total Number of Fixed Voice Subscribers: Number of individual voice subscribers 21 Includes DSL, Cable and Fiber sales provided over Turkcell Fiber and other ISPs' infrastructures. Activity Metrics Fuel Consumption 356,959.58 Natural Gas 27,466.24 Gasoline 63,507.34 Diesel 265,986.00 Renewable Energy Produced 274,899.98 Solar Power 25,673.42 Wind Power 249,226.56 Renewable Energy Purchased - Electricity 3,623,622.66 Total 4,255,482.22 Grid Electricity Ratio (%) 0 Renewable Energy Ratio (%) 100 Total Energy Use by Source (GJ) Average system downtime frequency (%) 0.328%22 Average customer downtime (min) 6.623 22Voice service drop rate 2G+3G+VoLTE Drop Rate 23 Ratio of the total duration of all interruptions in all cells to the total number of subscribers Management of Systemic Risks Arising from Technology Failures Türkiye Cyprus Number of wireless subscribers 430,21119 Number of broadband subscribers 43,326 25 Network traffic (petabytes) 50.55 19 Number of Wireless Subscribers: 2G/3G/4.5G Total number of subscribers 25 Number of Fixed Fiber+ADSL Subscribers: Num- ber of Individual xDSL and Individual fiber inter- net subscribers Activity Metrics Fuel Consumption 4,034.67 Gasoline 1,936.59 Diesel 2,098.09 Renewable Energy Produced 6,203.75 Solar Power 6,203.75 Renewable Energy Purchased - Elec- tricity 25,051.68 Total 35,290.10 Total Energy Use by Source (GJ) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 183 182 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Climate Targets As the sustainability leader in the tech- nology and telecommunications sec- tor in Türkiye, we play a pioneering role both nationally and internationally with our climate targets. The targets we have designed in line with the 1.5°C limit of the Paris Agreement have been approved by the Science Based Targets Initiative (SBTi). Accordingly, we aim to reduce ab- solute Scope 1 and Scope 2 greenhouse gas emissions by 50.47% and Scope 3 emissions by 25% by 2030 compared to the base year 2020. Our ultimate goal is to source 100% of our energy consump- tion from renewable energy sources and to achieve net-zero emissions26 from our operations by 2050. The adoption of these targets is in alignment with our company's commitment to harmonise its operational processes with the require- ments of the transition to a low-carbon future. As Turkcell Group, we aim to achieve our net zero and sustainability goals with the Climate Transition Plan we have created by taking into account the risks and op- portunities of climate change. With the goals we have set in this context, we have created a holistic roadmap that provides strategic guidance to our operational processes. Our plan covers practices in many critical areas, from renewable en- ergy investments to digitalization, sus- tainable supply chain management to carbon emission reduction, and demon- strates our company's determination to achieve these goals. Our targets are implemented in a way to cover 100% of Turkcell Group oper- ations. Based on 2020, our calculation and monitoring processes are subject to annual performance evaluations and CDP Climate Change reports. Our emis- sions are calculated in accordance with the ISO 14064 standard and the GHG Protocol, and verified by independent third parties. These processes enable transparent sharing of progress towards achieving targets with stakeholders. As we increase our investments in renew- able energy to achieve our carbon neu- trality targets, we support sustainable development with carbon offset strat- egies. Our commitment to sustainable development is further supported by our energy efficiency projects, renewable energy generation facilities and YEK-G certificates, which not only reduce the environmental impact of our operations but also optimise energy costs. The carbon reduction methods em- ployed in accordance with our targets are in line with international best prac- tices. In accordance with the Sectoral Carbon Reduction Approach (SDA), we establish our targets by considering sector-specific emission intensity and energy consumption trends. We are committed to continuously enhancing our energy efficiency and promoting the use of renewable energy sources to en- sure the ongoing reduction of our car- bon footprint. As Turkcell Group, we are committed to maintaining our pioneer- ing role in sustainable development and combating climate change, and we are dedicated to creating value for society, the environment and future generations. The validity of the adopted targets and the control of progress in line with the targets are audited by various indepen- dent organizations beyond the inter- nal audit and performance evaluation systems. In this context, climate targets were firstly audited and approved by SBTi. Additionally, when it comes to the procurement of sustainability-indexed loans used to finance actions that con- tribute to achieving the targets, the cli- mate targets focused on by the lending institutions are approved and KPIs are determined. These targets and KPIs are audited by independent audit institu- tions. KPIs focused on climate change and sustainability targets, which are as- signed to all employees, including senior management, and which cover Turkcell Türkiye operations, are monitored in- stantaneously and feedback is provid- ed on the Flex Performance Portal every six months regarding their progress. In addition, our company's emission tar- gets are all Turkcell Group targets and cover all greenhouse gases generated as a result of our operations within the framework of carbon equivalence. Resilient Business Strategy against Climate Change At Turkcell Group, we consider the cre- ation of a resilient business model that can withstand the risks and opportu- nities presented by climate change to be a priority. In this context, we analyze physical and transition risks in accor- dance with the TCFD framework and integrate these elements into our op- erational processes. The detailed as- sessments we make in short, medium and long-term timeframes support our strategic decisions and increase our operational flexibility. Nevertheless, the physical impact of climate change on the world, the management and implementation of policies, and the development of tech- nology in response to climate change are highly uncertain. Transition risks include uncertainties related to reg- ulatory, technological and consumer preferences during the transition to a low-carbon economy. Turkcell Group places climate scenar- io analysis at the core of its corporate risk management in line with the rec- ommendations of the TCFD (Task Force on Climate-related Financial Disclo- sures) and the Climate Transition Plan. These assessments reinforce the long- term resilience of our business model by interpreting climate risks and op- portunities according to the specific conditions and objectives of Turkcell Group. In this context, the company's climate-related physical and transi- tion risks are systematically assessed based on the Representative Concen- tration Route (RCP) 4.5 and RCP 6.0 sce- narios defined by the IPCC. These two scenarios represent the mid-level poli- cy pathway (RCP 4.5), which envisages a warming between 1.4 - 1.8 °C in line with the Paris Agreement targets, and the higher emission, limited policy path- way (RCP 6.0), which sees a warming between 1.3 - 2.2 °C. The analysis were conducted over short, medium and long-term periods to assess the impact of potential risks over time and to de- termine the probability and financial impact of each risk factor. Thus, the re- silience of Turkcell's long-term business strategy against different climate con- ditions is tested under these extreme projections. These scenario analysis were also used in the formulation of ac- tion plans to create a business strategy that is resilient to climate change and the action plans are monitored. Turkcell Group plans to update its climate sce- nario analysis qualitatively and quanti- tatively across the organization every three years or more frequently. Turkcell Group quantitatively and qualitatively assesses both physical and transition risks using scientific cli- mate scenarios, prioritises its risks and shapes its adaptation and mitigation strategies. Analysis based on RCP 4.5 and RCP 6.0 scenarios not only identi- fy the risks that need to be adapted to, but also enable us to make decisions on risk management by comparing our sustainability strategies with possible developments across the industry. Turk- cell considers scenario analysis as a disciplined framework that meets the requirements of the TCFD on the one hand, and as an indispensable source of insight to develop strategies in the face of uncertainties on the other. Cli- mate scenarios are used as a creative tool to create a roadmap for the future. These comprehensive analysis enable Turkcell and Group Companies to de- termine and prioritise their risk appe- tite. During the reporting period, the sector-based approach presented in TSRS 2-Addendum Volume-59-Tele- Ultimately, our goal is to achieve net zero emissions from our operations by 2050. 26 The greenhouse gas emissions specified in our targets include Carbon Dioxide (CO2), Methane (CH4), Dinitrogen Oxide (N2O) and Hydrofluoro- carbon (HFC) gases in accordance with the rele- vant standards. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 185 184 | TURKCELL 2024 INTEGRATED ANNUAL REPORT scenarios. Scenario analysis support a long-term approach by enabling our company to revise or further strengthen its environmental targets if necessary. In order to increase the sustainability of our operations, we have taken import- ant steps in areas such as renewable energy investments, digitalisation and environmentally friendly technologies. We aim to utilize renewable resourc- es such as solar and wind energy and provide 100% of our energy consump- tion from these sources. In addition, we offer digital solutions that increase en- ergy efficiency, thereby reducing our own carbon footprint and supporting our customers in achieving their sus- tainability goals. This contributes not only to environmental sustainability but also enhances the economic resilience of our company by reducing long-term energy expenditures. As part of our commitment to risk man- agement, we have made substantial investments to enhance the resilience You can access the TCFD Report, including our scenario analysis, on our corporate website. of our infrastructures. We make our data centers resistant to physical risks such as extreme weather conditions and optimise our operational process- es through regular performance mon- itoring. We regularly monitor risks and opportunities through performance indicators (KPIs) and identify areas for improvement through quarterly and annual reports. In these processes, we develop strategies in line with social ex- pectations by taking into account the feedback from our stakeholders. Our sustainability policies, which ad- here to international standards, sup- port our carbon reduction and energy efficiency targets. We manage our op- erations responsibly by following stan- dards such as ISO 14001 Environmental Management System and ISO 50001 En- ergy Management System. In addition to these measures, we are committed to advancing both our environmental and economic goals by raising funds for green projects as part of our sustain- able finance framework. By integrating climate risks and op- portunities into our business model, we proactively adapt to existing risks while seizing opportunities. While this strategy has required us to make some short-term adjustments to our profitability, it will ul- timately reduce our operational costs, increase our resilience against regula- tory risks and enable us to build a more sustainable future for our stakeholders. For instance, our strategic investments in renewable energy generation, de- spite the immediate negative impact on profitability, will yield positive results in the medium and long term by reducing operational costs, enhancing energy access and mitigating regulatory risks. This comprehensive approach positions Turkcell as a leader in climate action, ensuring our ability to respond to future needs and maintain financial stability. communication Services guidance was also taken into account in the materi- ality analysis of risks and opportunities. Utilizing this guidance has enabled us to more systematically and comprehen- sively assess a wide range of risks, from the environmental footprint of our oper- ations to operational interruptions, from energy consumption arising from our operations to factors that may affect business continuity. These analysis have been the main criteria in determining the significance of climate change-re- lated risks and opportunities for Turkcell Group and their impact on stakehold- ers. At the Board level, climate change has been prioritised as the company's responsibility towards the environment and society as well as its financial risk. As a result, whether Turkcell's current sustainability initiatives (transition to renewable energy, energy efficien- cy projects, digital solutions, etc.) will continue to create meaningful impacts even under different climate conditions is regularly checked in the light of these At Turkcell Group, we are committed to achieving our net zero targets and sus- tainability goals. We have created a Climate Transition Plan that takes into account the risks and opportunities pre- sented by climate change. In this con- text, we have created a comprehensive roadmap that provides strategic guid- ance to our operational processes, with targets set as of the 2022 TCFD Report. Our plan covers practices in many crit- ical areas, from renewable energy in- vestments to digitalisation, sustainable supply chain management to carbon emission reduction, and demonstrates our company's commitment to achiev- ing these goals. Significant contributions to these tar- gets will be made by the İzmir Karadağ Wind Power Plant and our solar energy projects across Türkiye. The solar panels installed at our Ankara Data Center are the first data center in Türkiye to gener- ate its own electricity, while we increase our energy efficiency by integrating so- lar energy into our base stations through our green field projects. These invest- ments not only reduce our carbon emis- sions, but also strengthen our economic sustainability by reducing our long-term energy costs. In the field of energy efficiency, we are upgrading our network infrastructure and implementing innovative solutions such as liquid cooling and artificial in- telligence-driven air conditioning opti- misation to enhance energy efficiency in our data centers. Our Power Usage Effectiveness (PUE) value of 1.3 is well below the world average, and we con- tinue to lead the field. We prioritise sus- tainable design principles in our data center projects and obtain internation- al green building certificates such as Leed Gold. Our sustainable supply chain manage- ment prioritises cooperation with local suppliers that reduce carbon emis- sions, and we organize training for our suppliers to improve their sustainability performance. In addition, we reduce our carbon footprint with our digitalisa- tion strategy and offer environmentally friendly solutions to our customers. We optimise environmental and operation- al costs through practices such as re- mote working and digital meetings. We are reorganizing our financing sources with a focus on renewable en- ergy and energy efficiency projects. We provide the necessary resources for these projects through innovative fi- nancing instruments such as sustainabil- ity bonds, sustainability-focused loans and international funds, and restructure our operational budget according to pri- oritised projects. The Izmir Karadağ Wind Power Plant and other energy projects have been instrumental in our progress towards achieving net zero position. As Turkcell Group, we are dedicated to combating climate change through our operational investments and robust financial strategies. As we implement our transition strategies, we also evalu- ate the impact of climate risks and op- portunities on the company's financial planning. In this regard, we also take into account the financing of the tran- sition strategy actions we plan. During the reporting period, climate change did not have any negative impact on our Company's cash flow, financial po- sition or performance. Instead, we are continuing to make substantial opera- tional investments to enhance our resil- ience against climate risks and support our sustainable growth. In this context, we issued a USD 500 million Sustainable Eurobond with a maturity of 7 years in international mar- kets in January 2025, with the USD 500 million Sustainable Eurobond issuance authorisation we received from the Capital Markets Authority. This bond is- suance has provided the financing for the sustainability investments that we will be implementing over the next two years and has supported our long-term growth targets. This funding will allow us to realize our planned sustainability investments in a wide range of areas, from renewable energy projects to en- ergy efficiency solutions. In 2024, we made significant progress in achieving our corporate targets on emission reduction by utilizing a range of sustainable banking financing instru- ments, including loans linked to sustain- ability targets. During the reporting pe- riod, we signed new loan agreements amounting to EUR 50 million with Tür- kiye Kalkınma ve Yatırım Bankası A.Ş. as part of our aim to meet of our electricity needs with renewable energy resourc- es, and EUR 65 million with Akbank for financing data center investments that prioritise energy efficiency and offer innovative technological solutions. Con- sequently, we have provided a total of EUR 115 million in green financing to be utilized in our efforts to achieve our cli- mate goals during the period. By 2026, we aim to invest USD 240 mil- lion in renewable energy projects. These projects will reduce our carbon emissions and increase our financial resilience by lowering long-term ener- gy costs. With the addition of the İzmir Karadağ Wind Power Plant and other solar energy projects, we aim to meet a significant portion of our energy con- sumption from renewable sources. This strategic initiative will not only contrib- ute to enhanced financial performance but also underscores our unwavering dedication to environmental sustain- ability. Innovative solutions such as sustainable Eurobonds and green financing instru- ments play an important role in our fi- nancing strategies for the future. These financing instruments not only enable us to achieve our climate targets, but also enhance our company's reputation in in- ternational markets. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 187 186 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Greenhouse Gas Emissions We calculate GHG emissions from our operations by comprehensively map- ping them within the framework of the Greenhouse Gas Protocol (GHG) Cor- porate Accounting and Reporting Stan- dard (2004) and ISO 14064-2018 stan- dard. In 2024, our total absolute gross GHG emissions from our operations, including all subsidiaries, amounted to Category 1 10,654.99 tCO2e, Catego- ry 2 453,087.63 tCO2e and Category 3 250,820.34 tCO2e. In 2024, Scope 1 emis- sions from Turkcell's domestic opera- tions are calculated as 7,334.46 tCO2e, while international operations are cal- culated as 3,320.53 tCO2e. Gold Stan- dard certificates purchased were used to offset all Scope 1 emissions. Turkcell Relative Greenhouse Gas Emissions calculates Scope 2 emissions based on Location and Market. In 2024, Turkcell's location-based domestic Scope 2 emis- sions are calculated as 440,969.41 tCO2e and international Scope 2 emissions are calculated as 12,118.22 tons tCO2e. Pur- chased YEK-G certificates and Gold Standard certificates are used to offset all market-based emissions. As a result of the certificates purchased, Turkcell Group's total emissions consist of up to 0 tCO2 of direct emissions (Category 1) , up to 0 tCO2 of indirect emissions from electricity consumption (Category 2) and up to 250,820.34 tCO2 of other indi- rect emissions (Categories 3-6). Calculation-based management was used to determine Turkcell's greenhouse gas emissions. The method chosen was determined in accordance with the available data, and care was taken to maximize the accuracy and consisten- cy of the results. The emission inven- tory followed the methods set out in the “2006 IPCC Guidelines for National GHG Inventories”, “GHG Protocol” and “ISO 14064-1: 2018 Guidelines for Estab- lishment-Level Calculation and Report- ing of Greenhouse Gas Emissions and Removals” documents. In accordance with these documents, the necessary unit conversion tables were used and emission calculations were calculat- ed by multiplying the activity data by the emission factor. The values of the emission factors used and the unit conversion factors used are detailed in the Turkcell Emission Report. In this process, Tier 2 calculation method was used when calculations were made with country-specific emission factors. When calculations were made with Life Cycle Assessment (LCA) studies, Tier 3 calculation method was used, while Tier 1 calculation method was preferred for calculating other emission sources with more general and accessible data. While creating Turkcell's greenhouse gas inventory; direct process emissions and removals from industrial processes, direct emissions and removals from land use, land use change and forestry (LU- LUCF) activities, emissions from trans- portation of customers and visitors, emissions from biomass were excluded since there are no biomass emissions. The data source for electricity, water, natural gas consumption was recorded as the invoices issued by the relevant companies. Turkcell provides shuttle Greenhouse gas emissions per data usage (tonnes CO2e/Petabyte) Greenhouse gas emissions per subscriber (tonnes CO2e/subscriber) Greenhouse gas emissions per net income (tonnes CO2e/TRY thousand) Our detailed table including the emissions of our subsidiaries can be found on Abreviation 6. January 01, 2024 - December 31, 2024 greenhouse gas verification process has been completed and the verification statement is published in the certificates section on the corporate website. service for its employees at the begin- ning and end of their working hours to ensure transportation between their homes and workplaces. Activity data was calculated based on the routes, total annual km and average fuel con- sumption obtained from the relevant teams. The km data for taxi use is auto- matically reflected in the system through the “Smart Taxi” application. A method developed for the calculation of car- bon emissions from purchased products was used. This method is based on LCA data for products for which a life cycle analysis is available, product weights for those with known weights, and cost information for others. On the other hand, according to the relative emission amount assessment made by including Category 1 and Category 2 emissions, the amount of emission per data usage in 2024 is 29.21 tonnes CO2e/Petabyte and the amount of emission per net income is 2.69 tonnes CO2e/Million TRY. Turkcell became the first and only tele- communications company in Türkiye to offset Scope 1 and Scope 2 emissions regarding 2023 by offsetting scope 1 emissions with Verra Carbon Stan- dard (VCS) certificates and scope 2 emissions with YEK-G certificates. In the 2024 reporting period, Turkcell has maintained its status as the only tele- communication company neutralise its Scope 1 and Scope 2 emissions by fully offsetting all carbon emissions gener- ated from its operations with carbon certificates and renewable energy certificates by 2025. 2024 2023 2.7276 2.6898 0.0108 0.0099 31.16 29.21 Greenhouse Gas Emissions (Tonnes CO2e) 2024 2023 8,213.45 236,237.92 413,620.57 10,654.99 250,820.34 453,087.63 Category 1 Category 3-6 Category 2 We calculate GHG emissions from our operations by mapping them comprehensively within the framework of GHG protocol and ISO 14064 standard. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 189 188 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Energy Management We meticulously oversee energy con- sumption, which constitutes a substantial segment of our environmental impact portfolio, particularly greenhouse gas emissions, in accordance with ISO 50001 Energy Management System Standard. The two main focal points of our energy management efforts are efficiency and the use of renewable resources. During the reporting period, our Tür- kiye operations consumed a total of 4,255,482.22 GJ of energy. Of this amount, 356,959.58 GJ consists of fuel consump- tion, 3,623,622.66 GJ consists of purchased electricity consumption and 274,899.98 GJ consists of renewable energy we gener- ate. Since 2021, we have taken our envi- ronmental responsibility one step further by procuring all of the electricity we pur- chase from i-REC and YEK-G certified re- newable energy producers. In addition, thanks to our energy efficien- cy-oriented efforts, our energy consump- tion per mobile data usage was 800.44 GJ/Petabyte, per fixed data usage was 478.22 GJ/Petabyte, per total data usage was 299.36 GJ/Petabyte, and per reve- nue was 27.6 GJ/TRY Million in 2024. These results are a concrete indication that we are resolutely realizing our sustainable energy management targets. Total Energy Consumption by Source (GJ) 2021 2022 2023 2024 Fuel Consumption 324,845 266,378 266,215 356,959.58 Natural Gas 66,365 29,567 18,863 27,466.24 Gasoline 44,087 33,661 42,569 63,507.34 Diesel 214,393 203,150 204,782 265,986.00 Renewable Energy Generated 99,264.71 267,355.3 224,866.5 274,899.98 Solar Energy 2,350.89 3,014.55 3,308.4 25,673.42 Wind Energy 96,913.81 264,340.8 221,558.047 249,226.56 Purchased Renewable Energy - Electricity 3,342,897.36 3,600,000.0 3,420,000.0 3,623,622.66 Total 3,723,973.07 4,100,876.3 3,911,081.5 4,255,482.22 Total Energy Consumption (GJ) Turkcell Energy Solutions In 2017, we established Turkcell Enerji Çözümleri A.Ş. with the objective of re- ducing energy supply costs and ensur- ing supply security, as well as mitigating the effects of climate change. Since its establishment, our subsidiary has in- creased its renewable energy invest- ments to increase its installed capacity every year, and in 2024, we completed the installation of 6 SPPs with an installed capacity of 54 MW and commissioned three of them. The renewable energy we produced in 2024 reached a size equiv- alent to the electricity consumption of 32,500 households for 1 year. With this production, we also met the annual en- ergy needs of 3,253 base stations. With these investments, we made a significant progress in 2024 in line with our strate- gy to transform from a 100% renewable electricity user to a digital operator that generates its own electricity. On the other hand, we are following the realization of a EUR 50 million loan transaction through the Development Investment Bank of Tür- kiye for our future investments. Between 2019 and 2024, the Turkcell Group generated 8.1 million kWh of elec- tricity at our power plant in Vadili (the first solar power plant established in the Turkish Republic of Northern Cyprus), and at our power plant in Türkmenköy (which was put into service in 2024), as well as at our solar stations. Thanks to our production, we prevented the emis- sion of 3,479 tonnes of CO2 emissions into the atmosphere between the same years. We continue to support the TRNC in creating a sustainable environment and in meeting 27% of the country's to- tal annual energy consumption with our own production. Our Ankara Data Center is the first data center in Türkiye to generate its own electricity with solar panels. We are able to meet some of the electricity we consume from renewable sources with our solar energy systems, which are lo- cated above the car park area of our headquarters building and in the field of the Center. Our data center generates 2 GWh of electricity per year, equivalent to the annual greenhouse gas emissions of 796 tonnes of CO2e. The solar power plant at the data center site uses solar ray tracking and double-sided panel technologies. This advanced technolo- gy enables the solar panels to optimise their positioning to maximise energy yield, utilizing both direct sunlight and reflected light from the surrounding sur- faces. This advanced system, which is implemented with the self-consumption model, is among the rare examples in Türkiye in terms of the technology used. In 2018, with the addition of our Ankara Data Center to our Gebze Data Center, which was the first in Türkiye to receive the Uptime OS Operational Sustainabil- ity Gold certificate, we became the only operator in Türkiye to have two data centers at these standards. The solar energy project installed on the roof of the Turkcell Diyarbakır Plaza build- ing enables the generation of electricity from renewable sources. This self-con- sumption model allows us to meet the electricity needs of the Diyarbakır Plaza building by utilizing the energy generated on site. The project is expected to gen- erate 110,000 kWh of electricity per year, leading to a reduction in greenhouse gas emissions by approximately 48.62 tonnes of CO2e annually. As of the end of 2024, we have increased the number of fields with solar panels (green fields) to 2,410. In addition, we have developed 15 Portable Solar Field solu- tions, which address the need for energy access in regions with population growth and limited resources. These eco-friendly communication stations, installed in vari- ous locations, contribute to our sustain- ability goals. In 2023, 214 MW of our land-type SPP in- vestments were tendered, 54 MW of so- lar power plants were installed, and 8.2 MW of solar power plants were commis- sioned. Our target is to create an addi- tional 300 MW of installed capacity by the end of 2026. This will ensure that the majority of our energy needs are met by renewable sources, while also mitigating cost and supply risks associated with the energy market. 2024 2022 2023 4,100,876.3 3,911,081.5 4,255,482.22 The two main focal points of our energy management efforts are efficiency and the use of renewable resources. Relative Energy Consumption 2024 2023 0.092 45.3 726.8 Greenhouse gas emissions per data usage (tonnes CO2e/Petabyte) Greenhouse gas emissions per subscriber (tonnes CO2e/subscriber) Greenhouse gas emissions per net income (tonnes CO2e/TRY million) 0.10 25.53 277.32 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 191 190 | TURKCELL 2024 INTEGRATED ANNUAL REPORT We are pleased to announce that a to- tal of 64,979.09 GW in savings has been achieved by implementing energy-sav- ing practices in our network. As part of these efforts, we replaced devices with high energy consumption with new technology devices with lower energy consumption. We have also achieved a significant reduction in our energy con- sumption by deactivating devices that do not carry data traffic. We are committed to environmental responsibility and con- tinue to take an exemplary approach to energy efficiency. We are proud to say that we are already applying Eco-Design criteria and current device-specific regulations as standard in the air conditioning equipment we use. Although these are not yet mandatory in Türkiye, we are committed to leading the way in sustainable energy solutions. Our aim is to increase energy efficiency and create a sustainable energy infrastruc- ture by encouraging the use of A energy class products. Our commitment to energy efficien- cy is reflected in our use of advanced network equipment, air conditioning systems in our data center rooms, and state-of-the-art technology products. Our buildings are designed to make maximum use of daylight, and to mini- mize energy consumption in heating and cooling processes. This is achieved by using insulated wall materials, exterior cladding and other thermal insulation details. We are committed to reducing our emis- sion values per kilometre by prioritising the use of hybrid and electric vehicles in our company fleet. By converting vehicles to hybrids in recent years, we have suc- cessfully reduced our emission levels from 12.7 g/km to 9.1 g/km. In our fleet, 50 fossil fuel vehicles were replaced with electric vehicles in 2024. Thus, together with our subsidiaries, a total of 113 corporate ve- hicles are 100% electric, 831 vehicles are hybrid, and 640 vehicles are classified as gasoline and diesel in our inventory. 2020 2021 2022 2023 2024 Energy Savings (GJ) 110,304 193,414 227,592 76,258 64,979 We are committed to reducing our climate and environmental impact through a variety of practices, including the sale of refurbished devices, recyclable phone accessories, and digital content platforms. We are also working with the AI4Green project, supported by TÜBİTAK and the European Union, to increase energy efficiency. Within the scope of Horizon projects, we are developing environmentally friendly communication infrastructures for 5G and beyond technologies. Energy Efficiency Our objective is to reduce our environ- mental impact and lower our energy costs by minimising our energy consumption to the lowest possible level. To this end, our efficiency efforts include the use of en- ergy-efficient equipment and practices, supported by behavioral changes in con- sumption patterns. A key element of our efficiency strategy involves the renewal of energy-efficient equipment and the adoption of efficient practices in network equipment. During the reporting period, we maintained our commitment to these efforts and took significant steps towards achieving our sustainable energy man- agement targets. We are proud to create a sustainable difference for both individual users and companies with our Turkcell Kopilot application, which adds a new dimension to the car driving experience. Thanks to the superior fea- tures of our application based on fuel usage, travel and user analysis, we offer the opportunity to indirectly reduce fuel consumption. Turkcell Kopilot assists com- panies in reducing their car- bon emissions by transform- ing their fleet management into a more environmentally friendly model. We provide more efficient driving and support our clients in taking concrete steps for a sustain- able future. Our technology integrates environmental re- sponsibility into business pro- cesses, making it a key part of doing business sustainably. Turkcell Kopilot We are pleased to announce that a total of 64,979.09 GJ in savings has been achieved by implementing energy-saving practices in our network. Water Management Total Water Consumption (m3) As part of our overarching climate and environmental strategy, we prioritise the efficient use of water, a vital natural resource, as one of our key impact areas. While we do not directly utilize water resources in the development of our products and services, we recognize our responsibility for resource utiliza- tion. We are therefore committed to transparency and share the amount of water we use with the public through our annual reports. A significant proportion of our water consumption is attributable to munici- pal water usage, which is essential for meeting the daily needs of our employ- ees. During the reporting period, our total water consumption was 211,862 m³. We are committed to reducing this amount by implementing efficient light- ing solutions and promoting consump- tion habits that contribute to this goal. We understand the importance of ev- ery drop in achieving a more sustain- able future, and we act accordingly. As part of our operations, we are com- mitted to reducing our water use and strengthening our recycling processes. In addition, we support our customers in optimising their water consumption with the innovative services we offer. Thanks to the reverse osmosis applications installed in İzmir and Gebze Data Centers, 60% of the wastewater in these buildings has been recovered. We are committed to reducing our climate and environmental impact through a vari- ety of practices, including the sale of refur- bished devices, recyclable phone acces- sories, and digital content platforms. We are also working with the AI4Green proj- ect, supported by TÜBİTAK and the Euro- pean Union, to increase energy efficiency. Within the scope of Horizon projects, we are developing environmentally friendly communication infrastructures for 5G and beyond technologies. 2022 145,832 2021 134,634 2023 196,300 2024 211,862 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 193 192 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Energy and water efficiency are prioritised in the design of Turkcell data centers. To this end, we conduct studies to reduce the PUE value, which reflects energy efficiency, and the WUE value, which reflects water usage efficiency. Turkcell data centers have a PUE design value of 1.3, which is well below the global average of 1.55. The WUE value of 1.74 at the end of 2023 was below 1.67 at the end of 2024. By meeting our electricity consumption in our data centers with re- newable energy sources, we are able to reduce our emission values to very low levels compared to our counterparts. We minimize our environmental impact through both our own production and YEK-G certified renewable energy purchases. We continuously enhance our energy and resource efficiency through thermal recovery activities. In addition, we have implemented projects to increase the efficient use of water, including rainwater filtration and reuse as gray water, as well as waste water recovery projects for areas such as garden irrigation. By adopting this approach, we are able to reduce our own impacts on the climate and the environment, while also supporting our cus- tomers in adopting sustainable business models and contributing to the reduction of their indirect environmental impacts. Efficiency in Data Centers Waste Management We adopt a 'minimum waste, maximum transformation' approach in the man- agement of waste generated from our operations. In line with this goal, we carry out our waste management pro- cesses in compliance with legal regu- lations. We prioritise the efficient use of materials, such as paper, toner and plastics, to minimize waste generation, and we separate the waste generated and recycle it through licensed institu- tions. We also work in partnership with municipalities or the Portable Battery Manufacturers and Importers Associa- tion (TAP) to recycle used batteries. In recognition of our commitment to sustainability, we have been awarded the basic level Zero Waste Certificate, a distinction that makes us the first company in the non-manufacturing sector to receive this accreditation. In this context, we are grateful to the waste management centers we have established in our campuses. These facilities enable us to transform solid food waste collected from dining halls and office floors into environmentally friendly, soil-improving organic fertiliser using compost machines. We dispose of hazardous waste, in- cluding batteries, toners, electronics, cables and consumables, through li- censed and competent recycling com- Total Waste Amount (tonnes) 2020 2021 2022 2023 2024 Hazardous Waste Disposed 0 0 0 0 0 Recycling 2,745 2,158 1,609 6,940 3,063 Non-hazardous Waste Disposed 0 0 0 0 0 Recycling 953 1,342 1,042 6,880 3,922 Total 3,698 3,500 2,651 13,820 6,985 panies in accordance with the relevant regulations. This ensures that hazard- ous materials do not have a negative impact on the environment. In addition, we minimize the impact on the envi- ronment by separating the oil waste generated in our offices without mixing with domestic wastewater thanks to oil trap systems. We ensure the reuse of these products by selling second-hand and other scrap products to companies using outdated technology. Our objective is to utilize 100% of our network infrastructure de- vices within the scope of this process. This approach ensures that resources are utilized efficiently and in accor- dance with a circular economy model. As part of the Modem Renewal Project, which was initiated in 2019, we have been undertaking the renewal and re- pair of modem group products that are not in use, with a view to reintroducing them into service. In 2024, we success- fully met the needs of our customers by renewing 56 thousand set-top boxes (set-top boxes), 83 thousand Superbox devices, 63 thousand optical network terminals (ONTs) and one thousand modems with this project. In the same year, 18% of the fiber modems, 18% of the ADSL modems, 16% of the renewed STBs, 16% of the ONTs and 40% of the Superboxes were renewed and offered to our customers. We adopt a 'minimum waste, maximum transformation' approach in the management of waste generated from our operations. In line with this goal, we carry out our waste management processes in compliance with legal regulations. Our Smart Water Meter application uti- lizes IoT technologies to enable remote reading of meters, remote control and opening and closing of valves, and in- stant monitoring of water consumption. Recognizing the intensive nature of water consumption in the agricultural sector, we are committed to support- ing our farmers in their sustainable agricultural practices. Our 'Filiz' appli- cation, developed with this objective in mind, plays a key role in preserving limited water resources and enhanc- ing agricultural productivity. The 'Filiz' solution is designed to provide farm- ers with critical information such as plant growth, water needs and disease risks. This is achieved by regularly mon- itoring different values of soil and air through sensors and processing them with artificial intelligence-supported algorithms. Instantaneous transmis- sion of this information to farmers via a mobile application empowers them to take proactive measures. The ap- plication facilitates direct communica- tion between farmers and agricultural engineers via digital channels, ensur- ing efficient access to the information required. This innovative service com- bines technology with sustainable agriculture, ensuring that our farmers protect natural resources and carry out their agricultural activities efficiently. We are committed to promoting sus- tainable practices in agriculture, which is particularly relevant in the context of climate change. Following the installation of reverse osmosis applications in the Izmir and Gebze Data Centers, 60% of the waste- water in these buildings has been re- covered. Following the upgrade of the reverse osmosis system in our Anka- ra Data Center, we have successfully reduced the wastewater rate in the building from 40% to 16%. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 195 194 | TURKCELL 2024 INTEGRATED ANNUAL REPORT We are aware of the potential neg- ative environmental impacts of im- proper end-of-life electronic product management. With this in mind, we are committed to meticulous electronic waste management. We utilize elec- tronic waste, which is rich in raw ma- terials and suitable for reuse, in accor- dance with the principles of the circular economy. This approach enables us to achieve financial savings and contrib- ute to the efficient use of natural re- sources. By 2024, we took another important step towards achieving our sustain- ability goals by recycling 100% of the 3,562.70 tonnes of electronic waste generated. With our environmental- ly conscious approach, we continue to resolutely fulfill our commitment to leave a more livable world to future generations. 2021 2022 2023 2024 Secondhand sales and discarded units sale amount* (tonnes) 3,691.52 3,088.27 3,686.47 3,562.70 * We aim to utilize 100% of network related wastes as discards or with secondhand sales. As part of our Recycle into Education project, we have installed re- cycling bins in all Turkcell stores. This has been done in a way that is both environmentally sensitive and socially beneficial. We record and receive techno waste (e.g. mobile phones, computers, tablets and ac- cessories) brought to our stores using special inventory software. These collected techno wastes are recycled in cooperation with TÜBİSAD, which is authorised by the Ministry of Environment, Urbanisation and Climate Change. We donate the entire revenue from recycling to the Educational Volunteers Foundation of Türkiye (TEGV) to contribute to the quality education of our children. As part of our project, which was initiated in November 2019, we have successfully recycled a total of 47 tonnes of techno waste, with 14 tonnes of this being recycled in 2024. The income generated from this initiative has been allocated towards supporting the education of 450 children. In alignment with World Environment Day, we trans- ferred the income from the techno waste brought to Turkcell Commu- nication Centers to the 'Technological Education Classroom' project established by TÜBİSAD in the earthquake region between June 5-14, 2024. In addition, we defined a gift voucher of TRY 250, valid at Pasaj, for those who supported the project between these dates, and gave a gift voucher worth TRY 7,500 to every 100th person who brought techno waste. This process involved both our customers and our employees. To mark International E-Waste Day on October 14, we organized a techno waste collection contest among our employees at Istanbul Küçükyalı Plaza, Ankara Plaza and Trabzon Plaza on October 7-8-9. We present- ed electric scooters to three employees who collected at least 50 kilos of techno waste, and defined gift vouchers valid at Pasaj to the Pay- cell accounts of all our participating employees. This project represents our commitment to environmental responsibili- ty and our dedication to making a significant contribution to the edu- cation of our children. We remain committed to our efforts for a more sustainable world and a brighter future. Recycle into Education Project By 2024, recycling 100% of the 3,562.70 tonnes of electronic waste generated. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES 196 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL 2024 INTEGRATED ANNUAL REPORT | 197 APPENDIX 1 - Cooperated National, International and Non-Governmental Organizations APPENDIX 2- TSRS 1 & 2 Compliance Disclosures Organization Name Level of Engagement 3GPP The 3rd Generation Partnership Project Membership AUSDER Intelligent Transport Systems Association Membership BCTR Blockchain Türkiye Platform Membership BGD Information Security Association Membership BUSİAD Bursa Industry and Businessmen Association Membership DEIK Foreign Economic Relations Board of Türkiye Membership ECTA European Competitive Telecommunications Association Membership EDIDER Digitalisation in Energy Association Membership ENDAVOUR Association for Supporting Active Entrepreneurs Membership ESB Access Providers Association Membership ETID Electronic Commerce Operators Association Membership ETSI European Telecommunications Standards Institute Membership HIB Service Exporters Association Membership FKB Financial Institutions Union Membership GDA Green Digital Action Membership GSMA Global System for Mobile Communications Association Board Membership GTI Global TD-LTE Initiative Membership IAPP International Association of Privacy Professionals Membership IIC International Institute of Communication Membership ITU International Telecommunication Union Membership m-TOD Mobile Telecommunication Operators Association Board Director and Membership (Ali Taha Koç, PhD, Ali Uysal, Prof. Dr. Vehbi Çağrı Güngör) MMA Türkiye Mobile Marketing Association Membership MOBISAD Mobile Communication Tools and Information Technologies Businessmen Association Membership MUSIAD Independent Industrialists and Businessmen Association Membership NGMN Next Generation Mobile Networks Membership PERYÖN Human Management Association of Türkiye Membership SKD Business and Sustainable Development Association Membership RVD Advertisers Association Membership TELKODER Turkish Competitive Telco Operators’ Association Membership TOBB The Union of Chambers and Commodity Exchanges of Türkiye Membership TUYAD Telecommunication Satellite and Broadcasting Business Association Membership TÜBİSAD Informatics Industry Association Membership TUSIAD Turkish Industry and Business Association Membership TUYID Turkish Investor Relations Association Membership UN Global Compact United Nations Global Compact Membership WTECH Women’s Association in Technology Membership YASED International Investors Association Membership TRAI Turkish AI Initiative Membership TÖDEB The Payment and Electronic Money Institutions Association of Türkiye Board Membership TEDAR Supply Chain Management Association Membership IAB The Interactive Advertising Bureau Membership WWBA World Broadband Association Membership Turkcell Group is committed to adhering to the TSRS reporting obligations in the 2024 Turkcell Integrated Annual Report, in accordance with the Turkish Sustainability Reporting Standards issued by the Public Oversight Authority and the relevant legislation governing the use of these standards in reporting activities. In accordance with the scope of this report, we have used the transitional reliefs permitted by the applicable legislation governing TSRS reporting obligations. In line with the Tele- communications sector indicators outlined in the TSRS framework, we have conducted comprehensive compliance studies and incorporated the relevant indicators into our reporting. In addition to the parent company, Turkcell subsidiaries have also initiated their TSRS compliance activities within the framework of the legislation. Turkcell continues to structure its subsidiaries within the scope of TSRS reporting and enhance their compliance in the upcoming periods. In line with the recommendations made for the telecommunications sector, the indicators have also been used in the realization of compliance studies and included in the reporting. TSRS 1 Compliance Table TSRS 1 Chapters Standard Descriptions Indicator Codes Explanation / Referred Report Section Governance a) Governance Body/Bodies (May Include a Board, Committee, or Equivalent Body Responsible for Senior Management) or Individuals Responsible for Overseeing Sustainability-Related Risks and Opportunities TSRS-1 27.a.i Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management TSRS-1 27.a.ii Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management TSRS-1 27.a.iii Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management TSRS-1 27.a.iv Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management TSRS-1 27.a.v Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management b) The Role of Management in Governance Processes, Controls, and Procedures Used to Monitor, Manage, and Oversee Sustainability-Related Risks and Opportunities TSRS-1 27.b.i Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management TSRS-1 27.b.ii Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management Strategy a) Sustainability-related risks and opportunities TSRS-1 30.a Effective Risk and Crisis Management - Management of Climate Risks and Opportunities TSRS-1 30.b Effective Risk and Crisis Management - Management of Climate Risks and Opportunities TSRS-1 30.c Effective Risk and Crisis Management - Management of Climate Risks and Opportunities b) Business model and value chain TSRS-1 32.a Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change TSRS-1 32.b Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change c) Strategy and decision-making TSRS-1 33.a Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change TSRS-1 33.b Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change TSRS-1 33.c Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change d) Financial position, financial performance and cash flows TSRS-1 34.a Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change TSRS-1 34.b Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 199 198 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Strategy d) Financial position, financial performance and cash flows TSRS-1 35.a Management of Climate Risks and Opportunities - Resilient Business Strategy Against the Climate Change TSRS-1 35.b Management of Climate Risks and Opportunities - Resilient Business Strategy Against the Climate Change TSRS-1 35.c.i Management of Climate Risks and Opportunities - Resilient Business Strategy Against the Climate Change TSRS-1 35.c.ii Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change - Sustainable Financing Activities TSRS-1 35.d Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change e) Resilience TSRS-1 41 Management of Climate Risks and Opportunities - Climate Transition Plan - Resilient Business Strategy Against the Climate Change Risk Management a) Processes and Related Policies Used to Identify, Assess, Prioritize, and Monitor Sustainability-Related Risks TSRS-1 44.a.i Management of Climate Risks and Opportunities TSRS-1 44.a.ii Management of Climate Risks and Opportunities TSRS-1 44.a.iii Management of Climate Risks and Opportunities TSRS-1 44.a.iv Management of Climate Risks and Opportunities TSRS-1 44.a.v Management of Climate Risks and Opportunities TSRS-1 44.a.vi Management of Climate Risks and Opportunities b) Processes Used by the Entity to Identify, Assess, Prioritize, and Monitor Sustainability-Related Opportunities TSRS-1 44.b Defining Turkcell's Sustainability Priorities - Management of Climate Risks and Opportunities c) The Extent and Manner in Which the Processes for Identifying, Assessing, Prioritizing, and Monitoring Sustainability-Related Risks and Opportunities Are Integrated into the Entity’s Overall Risk Management Process and How They Inform the General Risk Management Process TSRS-1 44.c Effective Risk and Crisis Management - Management of Climate Risks and Opportunities Metrics and targets a) Metrics Required by the Relevant TSRS TSRS-1 46.a Explained in the TSRS 2 Compliance Chart. TSRS-1 49 Natural Capital - Management of Climate Risks and Opportunities b) Metrics Used by the Entity to Measure and Monitor Sustainability- Related Risks and Opportunities TSRS-1 50.a Management of Climate Risks and Opportunities - Sector Indicators - Climate Targets - Greenhouse Gas Emissions - Energy Management TSRS-1 50.b Management of Climate Risks and Opportunities - Sector Indicators - Climate Targets - Greenhouse Gas Emissions - Energy Management TSRS-1 50.c Management of Climate Risks and Opportunities - Sector Indicators - Climate Targets - Greenhouse Gas Emissions - Energy Management TSRS-1 50.d Management of Climate Risks and Opportunities - Sector Indicators - Climate Targets - Greenhouse Gas Emissions - Energy Management c) The Entity’s Performance Related to the Identified Sustainability Risk or Opportunity, Including Progress Toward Its Self-Determined Targets and Those Required by Regulations TSRS-1 51.a Natural Capital - Climate Targets TSRS-1 51.b Natural Capital - Climate Targets TSRS-1 51.c Natural Capital - Climate Targets TSRS-1 51.d Natural Capital - Climate Targets TSRS-1 51.e Natural Capital - Climate Targets TSRS-1 51.f Natural Capital - Climate Targets TSRS-1 51.g Natural Capital - Climate Targets TSRS-1 53 Natural Capital - Climate Targets General Provisions Guidance Resources TSRS-1 54 About the Report TSRS-1 55.a In accordance with the Guidance on Sector Based Application of TSRS-2, it has been determined that only the basic sectoral indicators specified in the SASB Standards are applicable for the Telecommunications sector. TSRS-1 56 About the Report TSRS-1 59 About the Report Location of Explanations TSRS-1 60 About the Report Reporting Time TSRS-1 64 About the Report General Provisions Comparative Information TSRS-1 70 Natural Capital - Sector Indicators - Greenhouse Gas Emissions - Energy Management Declaration of Conformity TSRS-1 72 About the Report Judgements, Uncertainties and Errors Judgements TSRS-1 74 About the Report - Management of Climate Risks and Opportunities - Legal Disclaimer Uncertainties TSRS-1 77 Management of Climate Risks and Opportunities TSRS-1 78 Management of Climate Risks and Opportunities Errors TSRS-1 83 Since this is the first reporting year in accordance with TSRS, there are no prior period financial disclosures in some of the disclosure types specified by the Standard. TSRS 1 Chapters Standard Descriptions Indicator Codes Explanation / Referred Report Section TSRS 1 Chapters Standard Descriptions Indicator Codes Explanation / Referred Report Section TSRS 2 Chapters Standard Descriptions Indicator Codes Explanation / Referred Report Section Governance a) Governance body(s) (which may include a board, committee or equivalent body responsible for governance) or person(s) responsible for oversight of climate- related risks and opportunities TSRS-2 6.a.i Turkcell Group Sustainability Management and Involvement of Senior Management - Measuring the Value Created - Climate and Environmental Management TSRS-2 6.a.ii Turkcell Group Sustainability Management and Involvement of Senior Management TSRS-2 6.a.iii Turkcell Group Sustainability Management and Involvement of Senior Management - Management of Climate Risks and Opportunities TSRS-2 6.a.iv Management of Climate Risks and Opportunities - Climate Transition Plan TSRS-2 6.a.v Measuring the Value Created - Climate and Environmental Management - Climate Targets b) Management's role in governance processes, controls and procedures used to monitor, manage and control climate-related risks and opportunities TSRS-2 6.b.i Turkcell Group Sustainability Management and Involvement of Senior Management - Climate and Environmental Management TSRS-2 6.b.ii Turkcell Group Sustainability Management and Involvement of Senior Management - Measuring the Value Created - Management of Climate Risks and Opportunities Strategy a) Climate Related Risk and Opportunities TSRS-2 10.a Management of Climate Risks and Opportunities TSRS-2 10.b Management of Climate Risks and Opportunities TSRS-2 10.c Management of Climate Risks and Opportunities TSRS-2 10.d Management of Climate Risks and Opportunities b) Business Model and Value Chain TSRS-2 13.a Management of Climate Risks and Opportunities TSRS-2 13.b Management of Climate Risks and Opportunities c) Strategy and Desicion Making TSRS-2 14.a.i Climate and Environmental Management - Management of Climate Risks and Opportunities - Climate Transition Plan - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 14.a.ii Climate and Environmental Management - Management of Climate Risks and Opportunities - Climate Transition Plan - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 14.a.iii Climate and Environmental Management - Management of Climate Risks and Opportunities - Climate Transition Plan - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 14.a.iv Climate and Environmental Management - Management of Climate Risks and Opportunities - Climate Transition Plan - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 14.a.v Climate and Environmental Management - Management of Climate Risks and Opportunities - Climate Transition Plan - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 14.b Climate and Environmental Management - Climate Targets TSRS-2 14.c Natural Capital TSRS 2 Compliance Table TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 201 200 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Strategy d) Financial position, financial performance and cash flows TSRS-2 15.a Management of Climate Risks and Opportunities TSRS-2 15.b Management of Climate Risks and Opportunities TSRS-2 16.a Management of Climate Risks and Opportunities TSRS-2 16.b Management of Climate Risks and Opportunities TSRS-2 16.c.i Management of Climate Risks and Opportunities TSRS-2 16.c.ii Sustainable Financing Activities - Management of Climate Risks and Opportunities - Climate Targets TSRS-2 16.d Management of Climate Risks and Opportunities e) Climate Resilience TSRS-2 21 Management of Climate Risks and Opportunities TSRS-2 22.a.i Management of Climate Risks and Opportunities - Resilient Business Strategy Against the Climate Change TSRS-2 22.a.ii Management of Climate Risks and Opportunities - Resilient Business Strategy Against the Climate Change TSRS-2 22.a.iii.(1) Sustainable Financing Activities - Management of Climate Risks and Opportunities - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 22.a.iii.(2) Sustainable Financing Activities - Management of Climate Risks and Opportunities - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 22.a.iii.(3) Sustainable Financing Activities - Management of Climate Risks and Opportunities - Climate Targets - Resilient Business Strategy Against the Climate Change TSRS-2 22.b.i.(1) Management of Climate Risks and Opportunities TSRS-2 22.b.i.(2) Management of Climate Risks and Opportunities TSRS-2 22.b.i.(3) Management of Climate Risks and Opportunities TSRS-2 22.b.i.(4) Management of Climate Risks and Opportunities TSRS-2 22.b.i.(5) Management of Climate Risks and Opportunities TSRS-2 22.b.i.(6) Management of Climate Risks and Opportunities TSRS-2 22.b.i.(7) Management of Climate Risks and Opportunities TSRS-2 22.b.ii.(1) Management of Climate Risks and Opportunities TSRS-2 22.b.ii.(2) Management of Climate Risks and Opportunities TSRS-2 22.b.ii.(3) Management of Climate Risks and Opportunities TSRS-2 22.b.ii.(4) Management of Climate Risks and Opportunities TSRS-2 22.b.ii.(5) Management of Climate Risks and Opportunities TSRS-2 22.b.iii Management of Climate Risks and Opportunities Risk Management a) Processes and relevant policies used by the business to identify, assess, prioritize and monitor climate-related risks TSRS-2 25.a.i Management of Climate Risks and Opportunities TSRS-2 25.a.ii Management of Climate Risks and Opportunities - Resilient Business Strategy Against the Climate Change TSRS-2 25.a.iii Management of Climate Risks and Opportunities TSRS-2 25.a.iv Management of Climate Risks and Opportunities TSRS-2 25.a.v Management of Climate Risks and Opportunities TSRS-2 25.a.vi Management of Climate Risks and Opportunities b)Including information on whether and how it uses climate-related scenario analysis; The processes the business uses to identify, evaluate, prioritize and monitor climate-related opportunities TSRS-2 25.b Management of Climate Risks and Opportunities c)Processes for identifying, evaluating, prioritizing and monitoring climate-related risks and opportunities; to what extent and how it is integrated into the business's overall risk management process and to what extent and how it informs the business's overall risk management process TSRS-2 25.c Defining Turkcell's Sustainability Priorities - Management of Climate Risks and Opportunities Metrics and targets a) Climate Related Metrics TSRS-2 29.a Greenhouse Gas Emissions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries TSRS-2 29.b Greenhouse Gas Emissions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries TSRS-2 29.c Greenhouse Gas Emissions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries Metrics and targets a) Climate Related Metrics TSRS-2 29.d Greenhouse Gas Emissions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries TSRS-2 29.e Climate and Environmental Management - Resilient Business Strategy Against the Climate Change - Greenhouse Gas Emissions - Turkcell Energy Solutions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries TSRS-2 29.f Greenhouse Gas Emissions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries TSRS-2 29.g Greenhouse Gas Emissions - APPENDIX-6: Absolute Gross GHG Emissions of Turkcell Subsidiaries b) Sector-based metrics associated with other common characteristics that characterize particular business models, activities or participation in a sector (Guidelines for Sector-Based Application of TSRS-2) TSRS-2 32 Sector Indicators c) Climate Related Targets TSRS-2 33.a Natural Capital - Climate Targets TSRS-2 33.b Climate Targets - Climate Transition Plan TSRS-2 33.c Climate Targets TSRS-2 33.d Natural Capital - Climate Targets TSRS-2 33.e Climate Targets TSRS-2 33.f Natural Capital - Climate Targets TSRS-2 33.g Natural Capital - Climate Targets TSRS-2 33.h Climate Targets TSRS-2 34.a Measuring the Value Created - Climate Targets TSRS-2 34.b Measuring the Value Created - Climate Targets TSRS-2 34.c Natural Capital - Climate Targets TSRS-2 34.d There is no change made during the period. TSRS-2 35 Natural Capital - Climate Targets - Greenhouse Gas Emissions - Energy Management TSRS-2 36.a Climate Targets TSRS-2 36.b Climate Targets TSRS-2 36.c Climate Targets TSRS-2 36.d Climate Targets TSRS-2 36.e.i Greenhouse Gas Emissions TSRS-2 36.e.ii Greenhouse Gas Emissions TSRS-2 36.e.iii Greenhouse Gas Emissions TSRS-2 36.e.iv Greenhouse Gas Emissions TSRS 2 Chapters Standard Descriptions Indicator Codes Explanation / Referred Report Section TSRS 2 Chapters Standard Descriptions Indicator Codes Explanation / Referred Report Section Subject Standard Descriptions Indicator Codes Explanation / Referred Report Section Telecommunication Sector Specific Indicator Statements for the Parent Company and its Subsidiaries Environmental Footprint of Activities (1) Total energy consumed, (2) percentage of grid electricity and (3) percentage of renewable energy TC-TL-130a.1 Sector Indicators Management of Systemic Risks Arising from Technology Failures (1) Average system downtime, (2) average system downtime frequency and (3) average customer downtime TC-TL-550a.1 Sector Indicators Negotiating systems to provide unhindered service during service interruptions TC-TL-550a.2 Sector Indicators Activity Metrics Number of wireless subscribers TC-TL-000.A Sector Indicators Number of cable subscribers TC-TL-000.B Sector Indicators Number of broadband subscribers TC-TL-000.C Sector Indicators Network traffic TC-TL-000.D Sector Indicators TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 203 202 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Statement of Use : Turkcell İletişim Hizmetleri A.Ş. has reported in accordance with the GRI Standards for the period January 1, 2024- December 31, 2024. GRI 1 Used : GRI 1: Foundation 2021 Applicable GRI Sector Standard(s) : N/A GRI Standard Disclosure Location OMISSION Requirement(S) Omitted Reason Explanation General Disclosures GRI 2: General Disclosures 2021 2-1 Organizational details About the Report (p.26) Turkcell at a Glance (p.27) Our Offices (p.348) 2-2 Entities included in the organization's sustainability reporting About the Report (p.26) 2-3 Reporting period, frequency and contact point About the Report (p.26) 2-4 Restatements of information No such restatement has been made 2-5 External assurance For the GHG Verification Statement, please refer to the "https://www.turkcell.com.tr/en/aboutus/corporate- social-responsibility/sustainability" section of our corporate website. 2-6 Activities, value chain and other business relationships Our Strategic Focuses, Initiatives and Opportunities (p.74-79); Value-oriented and Responsible Supply Chain Management (p.161-163) 2-7 Employees Employee Demographics in 2024 (p.102) 2-8 Workers who are not employees Turkcell may obtain external service support as needed for auxiliary tasks related to the nature of the job, technical reasons, or for roles requiring expertise such as cleaning, security, call center, and field support personnel. 2-9 Governance structure and composition Board of Directors Structure (p.60-62) 2-10 Nomination and selection of the highest governance body Board of Directors Structure (p.60-62) 2-11 Chair of the highest governance body Board of Directors Structure (p.60-62) 2-12 Role of the highest governance body in overseeing the management of impacts Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-13 Delegation of responsibility for managing impacts Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-14 Role of the highest governance body in sustainability reporting Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-15 Conflicts of interest Board of Directors Structure (p.60-62) Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-16 Communication of critical concerns Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-17 Collective knowledge of the highest governance body Board of Directors Structure (p.60-62) Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-18 Evaluation of the performance of the highest governance body Board of Directors Structure (p.60-62) Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) 2-19 Remuneration policies Board of Directors Structure (p.60-62) 2-20 Process to determine remuneration Our Human Capital (p.100-115) 2-21 Annual total compensation ratio Confi- dentiality Constraints Data regarding remuneration is considered as confiden- tial. 2-22 Statement on sustainable development strategy Turkcell Group Sustainability Strategy: Positive Imprint in Sustainability (p.46-47) 2-23 Policy commitments Human Rights, Business Ethics and Common Values (p.63) GRI 2: General Disclosures 2021 2-24 Embedding policy commitments Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43) Climate and Environmental Management (p.175-177) 2-25 Processes to remediate negative impacts Turkcell Group Value Creation Process (p.54-55) 2-26 Mechanisms for seeking advice and raising concerns Defining Turkcell's Sustainability Priorities (p.44-45); Interactions with Our Stakeholders (p.50-51) 2-27 Compliance with laws and regulations Competition Management (p.65) 2-28 Membership associations Turkcell Group's Sustainability Initiative Memberships (p.52-53); Cooperated National, International and Non- Governmental Organizations (p.198) 2-29 Approach to stakeholder engagement Interactions with Our Stakeholders (p.50-51) 2-30 Collective bargaining agreements Human Rights, Business Ethics and Common Values (p.63) Material Topics GRI 3: Material Topics 2021 3-1 Process to determine material topics Defining Turkcell's Sustainability Priorities (p.44-45) 3-2 List of material topics Defining Turkcell's Sustainability Priorities (p.44-45) Managing Climate Impacts GRI 3: Material Topics 2021 3-3 Management of material topics Climate Change (p.178-180); Our Natural Capital (p.174- 196) GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities due to climate change Climate Change (p.178-180) GRI 302: Energy 2016 302-1 Energy consumption within the organization Our Natural Capital (p.190) 302-3 Energy intensity Our Natural Capital (p.190) 302-4 Reduction of energy consumption Our Natural Capital (p.190) GRI 303: Water and Effluents 2018 303-3 Water withdrawal Our Natural Capital (p.193-194) GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions Our Natural Capital (p.188-189) 305-2 Energy indirect (Scope 2) GHG emissions Our Natural Capital (p.188-189) 305-3 Other indirect (Scope 3) GHG emissions Our Natural Capital (p.188-189) 305-4 GHG emissions intensity Our Natural Capital (p.188-189) 305-5 Reduction of GHG emissions Our Natural Capital (p.188-189) GRI 306: Waste 2020 306-1 Waste generation and significant waste- related impacts Our Natural Capital (p.195-196) 306-2 Management of significant wasterelated impacts Our Natural Capital (p.195-196) 306-3 Waste generated Our Natural Capital (p.195-196) 306-4 Waste diverted from disposal Our Natural Capital (p.195-196) 306-5 Waste directed to disposal Our Natural Capital (p.195-196) Leading Digital Technologies and Innovation GRI 3: Material Topics 2021 3-3 Management of material topics Our Intellectual Capital (p.126-141); Our Social Capital (p.142-171) GRI 203: Indirect Economic Impacts 2016 203-2 Significant indirect economic impacts Our Intellectual Capital (p.126-141) GRI 413: Local Communities 2016 413-1 Operations with local community engagement, impact assessments, and development programs Our Social Capital (p.142-171) Becoming an Active Integrated Telecom Operator in the Value Chain Extending from Fiber Infrastructure to Digital Business Services GRI 3: Material Topics 2021 3-3 Management of material topics Our Manufactured Capital (p.116-125) GRI 203: Indirect Economic Impacts 2016 203-1 Infrastructure investments and services supported Our Manufactured Capital (p.116-125) Improving Digital Customer Experience and Satisfaction GRI 3: Material Topics 2021 3-3 Management of material topics Our Manufactured Capital (p.116-125) GRI 416: Customer Health and Safety 2016 416-1 Assessment of the Health and Safety impacts of product and service categories Our Manufactured Capital (p.116-125) 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Our Manufactured Capital (p.116-125) GRI Standard Disclosure Location OMISSION Requirement(S) Omitted Reason Explanation APPENDIX 3: GRI CONTENT INDEX TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 205 204 | TURKCELL 2024 INTEGRATED ANNUAL REPORT APPENDIX-4: UNGC Progress Chart Subject UNGC Principles Report Section Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights Strong Corporate Governance, Our Human Capital, Value-Oriented and Responsible Supply Chain Management Principle 2: make sure that they are not complicit in human rights abuses Strong Corporate Governance, Our Human Capital, Value-Oriented and Responsible Supply Chain Management Labor Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Strong Corporate Governance Principle 4: the elimination of all forms of forced and compulsory labor Our Human Capital, Value- Oriented and Responsible Supply Chain Management Principle 5: the effective abolition of child labor Our Human Capital, Value- Oriented and Responsible Supply Chain Management Principle 6: the elimination of discrimination in respect of employment and occupation Our Human Capital Environment Principle 7: Businesses should support a precautionary approach to environmental challenges Our Natural Capital Principle 8: undertake initiatives to promote greater environmental responsibility Our Natural Capital Principle 9: encourage the development and diffusion of environmentally friendly technologies Our Natural Capital Anti- Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery Strong Corporate Governance GRI 205: Anti- corruption 2016 205-2 Communication and training about anti-corruption policies and procedures Anti-Bribery and Corruption, Compliance with International Capital Markets and Economic & Trade Sanctions and Export Controls (p.64-65) 205-3 Confirmed incidents of corruption and actions taken Human Rights, Business Ethics and Common Values (p.63) GRI 206 Anti- competitive Behavior 2016 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Competition Management (p.65) Leading the Use of Innovative Digital Technologies in Key Sectors such as Education, Health, Agriculture, Transport and Finance GRI 3: Material Topics 2021 3-3 Management of material topics Our Strategic Focuses, Initiatives and Opportunities (p.74-79); The Progress in Techfin Applications (p.97); Image Processing Services and Solutions (p.137); Digital Business Services (p.140-141); Equality of Digital and Social Opportunity (p.163-167); Water Management (p.193-194) GRI 203: Indirect Economic Impacts 2016 203-1 Infrastructure investments and services supported Our Strategic Focuses, Initiatives and Opportunities (p.74-79); The Progress in Techfin Applications (p.97); Image Processing Services and Solutions (p.137); Digital Business Services (p.140-141); Equality of Digital and Social Opportunity (p.163-167); Water Management (p.193-194) 203-2 Significant indirect economic impacts Our Strategic Focuses, Initiatives and Opportunities (p.74-79); The Progress in Techfin Applications (p.97); Image Processing Services and Solutions (p.137); Digital Business Services (p.140-141); Equality of Digital and Social Opportunity (p.163-167); Water Management (p.193-194) Supporting the Development of Local Technologies GRI 3: Material Topics 2021 3-3 Management of material topics Our Intellectual Capital (p.126-141); Localization Efforts (p.162) GRI 203: Indirect Economic Impacts 2016 203-2 Significant indirect economic impacts Our Intellectual Capital (p.126-141); Localization Efforts (p.162) GRI 204: Procurement Practices 2016 204-1 Proportion of spending on local suppliers Localization Efforts (p.162) GRI Standard Disclosure Location OMISSION Requirement(S) Omitted Reason Explanation GRI Standard Disclosure Location OMISSION Requirement(S) Omitted Reason Explanation Cyber Security and Protection of Data Privacy GRI 3: Material Topics 2021 3-3 Management of material topics Our Manufactured Capital (p.116-125); Digital Security and Wellbeing (p.138-139) GRI 203: Indirect Economic Impacts 2016 203-2 Significant indirect economic impacts Digital Security and Wellbeing (p.138-139) GRI 413: Local Communities 2016 413-2 Operations with significant actual and potential negative impacts on local communities Our Manufactured Capital (p.116-125) Decent Workplace GRI 3: Material Topics 2021 3-3 Management of material topics Human Rights, Business Ethics and Common Values (p.63); Our Human Capital (p.98-115); Equality of Digital and Social Opportunity (p.163-167) GRI 401: Employment 2016 401-1 New employee hires and employee turnover Our Human Capital (p.98-115) 401-3 Parental Leave Our Human Capital (p.100) GRI 402: Labor/ Management Relations 2016 402-1 Minimum notice periods regarding operational changes Our Human Capital (p.98-115) GRI 403: Occupational Health and Safety 2018 403-1 Occupational health and safety management system Our Human Capital (p.114-115) 403-2 Hazard identification, risk assessment, and incident investigation Our Human Capital (p.114-115) 403-3 Occupational health services Our Human Capital (p.114-115) 403-4 Worker participation, consultation, and communication on occupational health and safety Our Human Capital (p.114-115) 403-5 Worker training on occupational health and safety Our Human Capital (p.114-115) 403-6 Promotion of worker health Our Human Capital (p.114-115) 403-8 Workers covered by an occupational health and safety management system Our Human Capital (p.114-115) Our Human Capital (p.114-115) 403-10 Work-related ill health Our Human Capital (p.114-115) GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee Our Human Capital (p.108-113) 404-2 Programs for upgrading employee skills and transition assistance programs Our Human Capital (p.108-113) 404-3 Percentage of employees receiving regular performance and career development reviews Our Human Capital (p.108-113) GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees Our Human Capital (p.100-103) 405-2 Ratio of basic salary and remuneration of women to men Our Human Capital (p.100-103) GRI 406: Non- discrimination 2016 406-1 Incidents of discrimination and corrective actions taken Our Human Capital (p.100-103) GRI 407: Freedom of Association and Collective Bargaining 2016 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Human Rights, Business Ethics and Common Values (p.63) GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor Human Rights, Business Ethics and Common Values (p.63); Value-oriented and Responsible Supply Chain Management (p.161-163) GRI 409: Forced or Compulsory Labor 2016 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Human Rights, Business Ethics and Common Values (p.63); Value-oriented and Responsible Supply Chain Management (p.161-163) Business Ethics and Legal Compliance GRI 3: Material Topics 2021 3-3 Management of material topics Turkcell Group Sustainability Management and Involvement of Senior Management (p.42-43); Human Rights, Business Ethics and Common Values (p.63); Anti- Bribery and Corruption, Compliance with International Capital Markets and Economic & Trade Sanctions and Export Controls (p.64-65); Competition Management (p.65); Artificial Intelligence (p.95); Value-oriented and Responsible Supply Chain Management (p.161-163) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 207 206 | TURKCELL 2024 INTEGRATED ANNUAL REPORT APPENDIX-5: Sustainability Principles Compliance Framework Table COMPLIANCE Yes No Partial Not Rel- evant Description Reporting Information Regarding Publicly Disclosed Data /Link A. General Principles A1. Strategies, Policies and Goals A1.1 The Board of Directors determines environmental, social and governance (ESG) material issues, risks and opportunities. X Turkcell Group Sustainability Management and Involvement of Senior Management (p.42) Defining Turkcell's Sustainability Priorities (p.44-45) Operational Risks (p.68) Management of Climate Risks and Opportunities (p.178-180) Climate Change (p.178-180) The Board of Directors determines and publicly disclose ESG Policies (Ex: Environmental Policy, Energy Policy, Human Rights Policy and HR Policy). X Turkcell Group Sustainability Management and Involvement of Senior Management (p.42) www.turkcell.com.tr/en/aboutus/corporate- social-responsibility/sustainability A1.2 It determines and publicly discloses its Short and long-term goals regarding ESG policies were determined and publicly disclosed. X Our Human Capital (p.100-115) Our Intellectual Capital (p.128-141) Our Social Capital (p.144-171) Our Natural Capital (p.174-196) A2. Implementation/Monitoring A2.1 The Partnership determines and publicly discloses the committees/units responsible for the implementation of ESG policies, Partnership’s the most senior responsibles regarding ESG issues and their duties. X Turkcell Group Sustainability Management and Involvement of Senior Management (p.42) Responsible committees and/or units report activities conducted in line with policies to the Board of Directors at least once during the year. X Turkcell Group Sustainability Management and Involvement of Senior Management (p.42) A2.2 The Partnership develops and publicly discloses implementation and action plans in line with the short- and long-term ESG goals. X Turkcell Group Sustainability Management and Involvement of Senior Management (p.42) Turkcell Group Sustainability Strategy: Positive Imprint in Sustainability (p.46) Our Human Capital (p.110-115) Our Intellectual Capital (p.128-141) Our Social Capital (p.144-171) Our Natural Capital (p.174-196) A2.3 Partnership publicly discloses ESG Key Performance Indicators (KPI) and their degree of achievement on a yearly basis. X Our Human Capital (p.110-115) Our Intellectual Capital (p.128-141) Our Social Capital (p.144-171) Our Natural Capital (p.174-196) A2.4 The partnership publicly discloses sustainability performance improvement activities regarding business processes or products and services. X Our Human Capital (p.110-115) Our Intellectual Capital (p.128-141) Our Social Capital (p.144-171) Our Natural Capital (p.174-196) A3. Reporting A3.1 The Partnership discloses information on sustainability performance, goals and actions within the annual report in a clear, accurate and complete manner. X Turkcell Group Sustainability Strategy: Positive Imprint in Sustainability (p.46) Turkcell Group Value Creation Process (p.56) Our Human Capital (p.110-115) Our Manufactured Capital (p.118-125) Our Intellectual Capital (p.128-141) Our Natural Capital (p.174-196) A3.2 Partnership publicly discloses information on which of the United Nations (UN) 2030 Sustainable Development Goals its activities are related to. X Sustainable Development Objectives Supported (p.48-49) A3.3 Partnership publicly discloses lawsuits filed and/ or concluded against and which are significant in terms of ESG policies and/or can significantly impact company’s activities X Competition Management (p.65) Legal Compliance (p.71) A4. Verification A4.1 Partnership’s ESG Key Performance measurements are verified by an independent third party and publicly disclosed. X For the period between January 1, 2024- December 31, 2024, GHG verification has been completed and the explanation regarding the verification is available in the ‘sustainability’ section of our corporate website. B. Environmental Principals B1 The partnership publicly discloses policies and practices, action plans regarding Environmental Management and Environmental Management systems (known as ISO 14001 standard) and programs. X Climate and Environmental Management (p.175-177) B2 The Partnership publicly discloses limitations for reporting scope, reporting term, reporting date and conditions regarding environmental reports prepared for sharing information on Environmental Management. X About the Report (p.26) B3 Disclosed in A2.1. B4 The environmental targets that are included in the performance incentive systems on a stakeholder basis (such as board members, executives, and employees) have been publicly disclosed. X Climate and Environmental Management (p.175-177) B5 The partnership publicly discloses how the prioritized environmental issues have been integrated into business objectives and strategies. X Turkcell Group Sustainability Strategy: Positive Imprint in Sustainability (p.46) Our Natural Capital (p.174-196) B6 Disclosed in A2.4. B7 The Partnership publicly discloses how environmental issues are managed and integrated into business objectives and strategies throughout the partnership value chain, including suppliers and customers as well as the operational process. X Value-oriented and Responsible Supply Chain Management (p.161-163) B8 The Partnership publicly discloses its involvement in policy-making processes of environmental organizations and NGOs and cooperation established with these institutions. X Climate Change (p.178-180) B9 The Partnership publicly discloses periodically comparable data on environmental impacts in the light of environmental indicators (GHG emissions (Scope-1 (Direct), Scope-2 (Energy indirect), Scope-3 (Other indirect) ), air quality, energy management, water and wastewater management, waste management, biodiversity impacts). X Our Natural Capital (p.174-196) B10 The Partnership publicly discloses standard, protocol, methodology, and base year details used to collect and calculate its data. X Our Natural Capital (p.174-196) B11 The Partnership publicly discloses increase or decrease in environmental indicators for the reporting year in comparison with previous years. X Our Natural Capital (p.174-196) B12 The Partnership sets short and long-term goals for reducing its environmental impacts and publicly discloses progress in these goals in comparison with goals set for the previous years. X Our Natural Capital (p.174-196) COMPLIANCE Yes No Partial Not Rel- evant Description Reporting Information Regarding Publicly Disclosed Data /Link TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 209 208 | TURKCELL 2024 INTEGRATED ANNUAL REPORT B13 The partnership set a strategy for fighting with climate crisis and publicly discloses actions planned. X Our Natural Capital (p.174-196) B14 The Partnership establishes and publicly discloses programs or procedures in order to avoid or to minimize potential negative impacts of products and/ or services. X Turkcell Energy Solutions (p.191) The Partnership takes and publicly discloses actions to enable third parties (ex: suppliers, contractors, dealers, etc) decrease their GHG emissions. X Value-oriented and Responsible Supply Chain Management (p.161-163) B15 The Partnership publicly discloses environmental benefits/profits or cost savings achieved through initiatives and projects carried out to reduce its environmental impacts. X Energy Efficiency (p.192) B16 The Partnership publicly discloses Scope-1 and Scope-2 energy consumption data (natural gas, diesel, gasoline, LPG, coal, electricity, heating, cooling, etc.). X Energy Management (p.190) B17 The Partnership publicly discloses information on electricity, heat, steam and cooling generated in the reporting year. X Energy Management (p.190) B18 The partnership carries out and publicly discloses studies on increasing the use of renewable energy, transition to zero or low carbon electricity. X Turkcell Energy Solutions (p.191) B19 The Partnership publicly discloses renewable energy production and usage data. X Turkcell Energy Solutions (p.191) B20 The Partnership conducts energy efficiency projects and publicly discloses energy consumption and emission reductions due to energy efficiency projects. X Energy Efficiency (p.192) B21 The Partnership publicly discloses water consumption, amount of underground or surface water withdrawn if any, recycled or discharged, its sources and procedures. X Water Management (p.193-194) B22 The Partnership publicly discloses whether operations or activities are included in any carbon pricing system (Emission Trading System, Cap & Trade, or Carbon Tax). X Turkcell is not subject to a carbon pricing system due to the legislation in force during the reporting period. B23 The Partnership publicly discloses the carbon credit information accumulated or purchased during the reporting period. X GHG Emissions (p.188) B24 The Partnership publicly discloses details on carbon pricing if applied within the partnership. X Climate Transition Plan (s.183) 2024 CDP Report B25 The Partnership publicly discloses the platforms where environmental information of the Partnership published. X 2024 CDP Report C. Social Principles C1. Human Rights and Labor Rights C1.1 The Partnership develops a Corporate Human Rights and Employee Rights Policy in compliance with the Universal Declaration of Human Rights, the ILO Conventions which Turkiye has approved, and other relevant legal regulations; determines individuals responsible for application of the policy, and publicly discloses policy and people responsible for its practice. X Diversity, Inclusion, and Equal Opportunity (p.101-102) C1.2 The Partnership includes subjects such as fair workforce, improvement of working standards, female employment and inclusivity (such as no discrimination based on gender, race, religion, language, marital status, ethnic identity, sexual orientation, gender identity, family responsibilities, trade union activities, political views, disabilities, social and cultural differences, etc.) in its Labor Rights Policy considering also supply and value chain impacts. X Diversity, Inclusion, and Equal Opportunity (p.101-102) Value-oriented and Responsible Supply Chain Management (p.161-163) C1.3 The Partnership publicly discloses measures taken to respect the rights of specific economically, environmentally, and socially vulnerable groups (such as low-income groups, women, etc.) or minority rights/equal opportunities along the value chain. X Diversity, Inclusion, and Equal Opportunity (p.101-102) C1.4 The Partnership publicly discloses developments on preventive and corrective practices regarding discrimination, inequality, human rights violations, forced labor, and child labor. X Diversity, Inclusion, and Equal Opportunity (p.101-102) Value-oriented and Responsible Supply Chain Management (p.161-163) C1.5 The labor Rights Policy includes subjects such as investments in employees (such as training, development policies), compensation, fringe benefits, the right to unionize, work/life balance solutions, and talent management. X Human Rights, Business Ethics and Common Values (p.63) Our Human Capital (p.110-115) Our Training and Development Approach (p.108-113) The Partnership establishes mechanisms for resolving employee complaints and disputes have been established, and processes for resolving disputes. X Human Rights, Business Ethics and Common Values (p.63) The Partnership publicly discloses activities conducted during the reporting year in order to ensure employee satisfaction. X Employee Loyalty and Happiness (p.105) C1.6 The Partnership establishes and publicly discloses its OHS Policy. X Safe and Healthy Work Environment (p.114-115) The Partnership publicly discloses precautions taken to prevent occupational accidents and to protect health and accident statistics. X Safe and Healthy Work Environment (p.114-115) C1.7 The Partnership establishes and publicly discloses its policies on protection of personal data and data security. X Digital Security and Wellbeing (p.138) www.turkcell.com.tr/tr/gizlilik-ve- guvenlik?page=kisisel-verilerin-korunmasi C1.8 The Partnership establishes and publicly discloses its Code of Ethics. X Human Rights, Business Ethics and Common Values (p.63) www.turkcell.com.tr/todiek C1.9 The Partnership discloses its activities on community investments, social responsibility, financial inclusion and access to financing. X Digital Financial Services (p.78) Social Investment and Sponsorship Projects (p.168-171) C1.10 The Partnership organizes briefings and trainings programs on ESG policies and practices for employees. X Climate and Environmental Management (p.175-177) C2. Stakeholders, International Standards and Initiatives C2.1 The Partnership establishes and publicly discloses a customer satisfaction policy regarding management and resolution of customer complaints. X Customer Satisfaction Management (p.159) C2.2 The Partnership publicly discloses information regarding communication with stakeholders (including who the stakeholders are, the topics and the frequency of communication) X Interactions with Our Stakeholders (p.50-51) C2.3 The international reporting standards adopted in reporting have been disclosed. X About the Report (p.26) C2.4 The Partnership publicly discloses sustainability principles adopted, as well as the international organizations, committees, and principles signed or joined. X Cooperated National, International and Non- Governmental Organizations (p.198) C2.5 The Partnership makes improvement efforts to be included in Borsa Istanbul’s and/or international index providers’ sustainability indices. X Sustainability Indices and Performance Indicators (p.89) D. Corporate Governance Principles D1 The Partnership received stakeholder opinions in determining measures and strategies in the field of sustainability. X Defining Turkcell's Sustainability Priorities (p.44-45) Interactions with Our Stakeholders (p.50-51) D2 The Partnership works on increasing awareness about the subject of sustainability and its importance through social responsibility projects, awareness events, and trainings. X Social Investment and Sponsorship Projects (p.168-171) COMPLIANCE Yes No Partial Not Rel- evant Description Reporting Information Regarding Publicly Disclosed Data /Link COMPLIANCE Yes No Partial Not Rel- evant Description Reporting Information Regarding Publicly Disclosed Data /Link TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 211 210 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Group Companies and Other Information on Corporate Governance Our subsidiaries and affiliates26 BeST After joining Turkcell Group in July 2008, BeST (Belarusian Telecommunications Network) became the first mobile op- erator to offer 3G services in Belarus in November 2009. As of December 31, 2024, BeST provides 2G and 3G services in all cities with more than 4,000 inhabitants and 2G services on all major intercity mo- torways and highways in the Republic of Belarus, achieving a population cover- age of approximately 99.8% and a geo- graphical coverage of 93.1% in Belarus. In August 2016, BeST became one of the first two operators to offer 4G services using LTE infrastructure installed by be- Cloud. BeST offers 4G LTE services in all regions and major cities of Belarus, with 4G geographical coverage of 89.2% and population coverage of 98.7%. The share of 4G subscribers reached 86% of the 3-month active data subscriber base in 2024. The increasing penetration of 4G services resulted in average monthly data consumption per user reaching 20.0 GB. The 4G network carried 85% of total data traffic as of the end of 2024. BeST continues its transformation from a communications service provider to a digital operator, converting its subscrib- ers into 4G users. Accelerating digital subscriptions and increasing its share in subscriber acquisition, enhancing self-service capabilities through mobile applications and web channels, expand- ing digital service portfolio and penetra- tion are the key initiatives that continued to drive the digitalization journey in 2024. By bringing together connectivity and content to enrich customers' digital ex- perience, BeST is driving ARPU growth through data services and a diversified digital services portfolio in line with Turk- cell's strategy. Accordingly, BeST provides music, video, games, security, digital pub- lication and digital education platforms within its digital services portfolio. By the end of 2024, 56% of 3-month active sub- scribers used at least one digital service and solution. BeST continues to develop its self-service mobile application with new services and features. The mobile application al- lows customers to make payments and transfers using their mobile balances, sign up for various insurance policies, collect bonuses through gamification mechan- ics, purchase equipment within a diverse product portfolio and create friends & family groups to benefit from loyalty discounts. These services enhance the seamless digital experience for custom- ers, and increase customer engagement and loyalty. BeST is the first mobile operator in Belar- us to launch a digital SIM card activation service via a mobile application using facial recognition technology based on machine learning algorithms in 2020. The service has been successfully developed by Lifetech, a wholly owned subsidiary of BeST. Lifetech was established in 2012 to provide services in telecommunications and infrastructure solutions, information and communication technologies, soft- ware development and security systems. Lifetech successfully provides IT-based solutions to Turkcell Group and other clients, and carries out software devel- opment projects both in Belarus and abroad. Kuzey Kıbrıs Turkcell Kuzey Kıbrıs Turkcell was founded in 1999 as a wholly-owned subsidiary of Turkcell. It operates as the leading operator in the TRNC, with an active subscriber market share of 59% excluding telemetry and an infrastructure that covers almost the entire population, according to the third quarter data of 2024 published by the Information and Communication Technologies Au- thority. Lifecell Digital Ltd., which entered the fixed internet market in the TRNC in 2018, continues to successfully provide ser- vices in this sector. Kuzey Kıbrıs Turkcell became the first op- erator to launch 4.5G in the Turkish Re- public of Northern Cyprus on September 7, 2023, having received the widest fre- quency band in the 4G/5G tender. Thus, with 99.6% population coverage, Turkcell launched this service in Northern Cyprus within 10 months, providing its customers with up to 10 times faster internet infra- structure in comparison to 3G. As the first company to receive 5G authorisation within Turkcell Group, Kuzey Kıbrıs Turkcell started 5G demos on the island in 2024 and provided 5G speed to its customers in many regions. Turkcell Global Bilgi Turkcell Global Bilgi is a trusted business partner, offering innovative technological solutions that combine 25 years of expe- rience in customer experience with digital transformation. Turkcell Global Bilgi is a strategic business partner to brands, with a focus on enhancing customer experience and boosting revenue for over 115 compa- nies, including Turkcell. The company deliv- ers customised solutions that are tailored to the specific needs of each client. Providing employment to 15,460 people, Turkcell Global Bilgi creates value by leading the sector with 11,182 female em- ployees, who make up 72% of the total workforce. Turkcell Global Bilgi, a leading IT compa- ny in Türkiye, provides a range of services including digital technologies, techno- logical support services, consultancy services and call center services. Turkcell Global Bilgi implements its own digital projects at its R&D center, offering com- panies digital services such as robotic process automation (RPA), cloud-based switchboard infrastructure, digital help desk, digital assistant, voice and text an- alytics, video calls, etc. Global Tower Global Tower, Türkiye's leading tower company, currently operates in four coun- tries. The company provides a range of services, including tower leasing, build-sell and maintenance, to a diverse client base, including telecom operators, radio-TV broadcasters, internet service providers, energy companies and public institutions. 26 Not all of our subsidiaries are included in the Subsidiaries section. Information on all our subsidiaries can be found in Note 1 of the CMB report attached to our Integrated An- nual Report. APPENDIX-6: Absolute Gross GHG Emissions of Turkcell subsidiaries Total 10,654.99 453,087.63 Turkcell İletişim Hizmetleri A.Ş. 4,470.79 333,731.26 Global Bilgi Pazarlama Danışmanlık ve Çağrı Servisi Hizmetleri A.Ş. ("Turkcell Global Bilgi") 1,507.50 1,352.99 Kıbrıs Mobile Telekomünikasyon Kuzey Kıbrıs Türk Ltd 326.48 3,075.79 Belarusian Telecommunications Network 2,994.04 9,042.43 Atmosware Teknoloji Eğitim ve Danışmanlık A.Ş. Atmosware 234.80 12,070.01 Boyut Grup Enerji Elektrik Üretim İnşaat San. Ve Tic. A.Ş. Boyut Grup Enerji 8.07 - Turkcell Dijital İş Servisleri A.Ş. DBS 18.66 574.20 Lifecell Dijital Servisler ve Çözümler A.Ş. DSS 2.39 7.34 Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş. Enerjı 7.93 14.30 Lifecell Müzik Yayın Ve İletim A.Ş. FIZY 1.71 5.25 Turkcell Gayrimenkul Hizmetleri A.Ş. Gayrımenkul 0.17 0.52 Kule Hizmet Ve İşletmecilik A.Ş. Global Tower 113.89 44.30 Lifecell Bulut Çözümleri A.Ş. Lifebox 1.71 5.25 Turkcell Ödeme Hizmetleri A.Ş. Mobil Finans / Töhaş 134.03 273.71 Turkcell Satış A.Ş. TSATIŞ 0.08 2.33 Superonline İletişim Hizmetleri A.Ş. Superonlıne 129.11 91,744.52 Turkcell Dijital Sigorta A.Ş. TDS 11.73 73.72 Turkcell Finansman A.Ş. TFS 43.38 176.33 Turkcell Sigorta Aracılık Hizmetleri A.Ş. TSAH 0.06 7.00 Category 1 (tCO2e) Category 2 (tCO2e) Turkcell Teknoloji Araştırma ve Geliştirme A.Ş. TTECH 198.61 851.38 Lifecell Tv Yayın Ve İçerik Hizmetleri A.Ş. TV+ 3.07 9.44 Lifecell İletişim Teknolojileri Ve Dijital Servisler A.Ş. Bip İletişim Teknolojileri Ve Dijital Servisler A.Ş. 2.43 12.01 Rehberlik Hizmetleri Servisi A.Ş. 100% 0.08 9.34 Artel Bilişim Servisleri A.Ş. 100% - - TDC Veri Hizmetleri A.Ş. 100% - - Dijital Eğitim Teknolojileri A.Ş. 100% (Detek) - - Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. 100% 1.37 4.20 Beltower LLC 0.04 - East Asian Consortium B.V. - - Lifecell Digital Communication Technologies B.V - - Lifecell Digital Limited 0.24 - lifetechl LLC 1.55 - Paycell Europe GMBH 0.01 - Paycell LLC 0.04 - Re Pie Portföy Yönetim A.Ş Turkcell Yeni Teknolojiler Gir. Ser. - - Turktell Bilişim Servisleri A.Ş. - - Türkiye'nin Otomobil Girişim Grubu Sanayi ve Ticaret A.Ş. - - Ultia Teknoloji Yazılım ve Uygulama Geliştirme Ticaret A.Ş. 9.38 - Lifecell Ventures B.V. 0.01 - Turkcell Dijital Teknolojileri Limited 161.63 - Yaani Digital B.V - - Category 1 (tCO2e) Category 2 (tCO2e) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 213 212 | TURKCELL 2024 INTEGRATED ANNUAL REPORT In addition to its traditional services, Glob- al Tower has recently expanded its offer- ing to include satellite services, further strengthening its end-to-end solutions for customers. The company currently offers closed circuit satellite services at over two thousand points through its own infra- structure with geographical redundancy, and aims to increase its product range and service diversity by following the trends in the satellite industry. The breakdown of Global Tower's tow- er portfolio of 10.387 units as of the end of 2024 is as follows: —Türkiye: 9,436 (owned: 5,004, right to use: 2,175, contract management: 2,257) —Belarus: 836 (right to use) —KKTC: 115 (right to use) Superonline İletişim Hizmetleri A.Ş. Turkcell Superonline was established in 2009 through the merger of our subsidi- ary Tellcom (established in 2004 as Bilişim Telekomunikasyon and rebranded as Tellcom in 2006) and Superonline, which was acquired from Çukurova Group. It provides telecommunication services to individual, corporate and operator cus- tomers under the Turkcell Superonline brand. Turkcell Superonline is authorised by the Information and Communication Technologies Authority (ICTA) to provide Internet Service Provider, Fixed Telephone Service, Infrastructure Operation Service, Satellite Communication Service, Cable Broadcasting Service and Virtual Mobile Network Service. As of the end of 2024, Turkcell Superon- line had 3.2 million broadband internet customers, 2.5 million of whom were on its own fiber infrastructure, and 1.5 million IPTV customers under the TV+ brand. As of the same date, Turkcell Superonline provides fiber access at speeds of up to 10 Gbps to 5.8 million households in 28 cit- ies with a fiber length of 65 thousand km. In addition to its direct services, Turkcell Superonline provides fixed broadband internet services to more households through contracts signed with other in- frastructure operators in the sector, while enabling some operators to offer broad- band internet services to their customers through Turkcell Superonline infrastruc- ture. In line with its vision of transforming the Silk Road into the Fiber Road and making Türkiye an internet hub, a goal which it has been implementing since 2008, it has been serving with 13 border connection. Turkcell Finansman A.Ş. – Financell Turkcell Finansman A.Ş. is a key player in the Turkish financing sector, providing fi- nancing loan solutions in areas such as GES loans (solar energy systems financing loans), second-hand vehicles, furniture, white goods, as well as technological product and service needs of corporate and individual customers under the 'Fi- nancell' brand. Financell has maintained its leading po- sition in the financing sector by providing services in 1,009 Turkcell stores, 2,313 DSN+ (Digital Point of Sale) stores and digital sales channels all over Türkiye. The com- pany has the highest number of customers of any player in the sector. Turkcell Finansman A.Ş. has provided ap- proximately TRY 18 million and TRY 56 bil- lion worth of loans to date, and in 2021 the company began to offer corporate loans as part of a digital transformation initia- tive. Furthermore, the Company's success in managing credit risk is attributable to the credit risk infrastructure and digital transformation projects carried out in 2021. Financell commenced the provision of fi- nancing services to Corporate and Super- online customers in 2021 and began oper- ating in non-Turkcell channels with new products such as digital holiday loans and vehicle loans in 2022. In 2023, Finan- cell's strategic focus was on green ener- gy financing, offering favorable loans for SPP projects, particularly for sustainability initiatives in earthquake-prone areas. Fur- thermore, Financell expanded its portfo- lio to include Used Car Loans, Corporate Loans and Shopping Loans, which it had initiated in 2022. In 2023, Financell expand- ed its services to include supplier financ- ing for corporate clients. Finally, in 2024, with a project that improved customer segmentation, Financell launched a loan model offering personalised interest rates. Turkcell Dijital Sigorta A.Ş. Turkcell Dijital Sigorta A.Ş. (Wiyo) is pri- marily engaged in device insurance and holds licenses in Accident, Sickness/ Health, General Damages, General Lia- bility, Financial Losses, Legal Protection, Fire and Natural Disasters. Turkcell Sigorta Aracılık Hizmetleri A.Ş. Turkcell Sigorta Aracılık Hizmetleri A.Ş. is a trusted provider of brokerage ser- vices in the field of corporate insurance. Its product portfolio includes 'Executive and Manager Liability Insurance', which provides comprehensive coverage for the liabilities of Turkcell Group executives in the performance of their duties, and 'Elementary Group Policies', designed to safeguard the assets of Turkcell and group companies against a range of risks and liabilities, including fire, earthquake, flood, storm, and more. In addition, the Company serves as the agency of Turk- cell Dijital Sigorta A.Ş. (Wiyo) for individual products. Turkcell Ödeme Hizmetleri ve Elektronik Para Hizmetleri – Paycell In 2017, Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. (TÖHAŞ) obtained an E-Money license in addition to its 2016 payment services license from the BRSA. While a rapid techfin transformation has been taking place in the world over the past 10 years, the Turkish market also shows a high potential for the expansion of techfin services with its attractive inter- nal dynamics. Key factors contributing to this growth include the high proportion of young people, the rapid uptake of smart devices, the estimated 30 million potential users without a bank account, the ongo- ing high cash usage in shopping, and the increasing e-commerce volume. Since early 2020, this transformation has ac- celerated considerably with the impact of the global pandemic. Changing living conditions and needs have led customers to show more interest in digital platforms. The e-commerce sector has been one of the most positively affected. In response to these evolving needs and shifting be- haviors, our vision at Paycell has been to empower more users to seamlessly access financial services through our secure, cutting-edge payment solutions, which seamlessly integrate technology and financial services. We are proud to continue leading the techfin sector, achieving record trans- action volumes across a wide range of products. In 2024, the number of Paycell 3-months active users reached 7.4 mil- lion, while the number of Paycell appli- cation downloads exceeded 30 million with the new functions added. By the close of 2024, the total transaction vol- ume through Paycell had reached TRY 101 billion. Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş.27 Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. was established as a joint venture in 2018 and began commercial activities in 2019. The company provides services in the field of employee meal vouchers and non-salary employee benefits. The Paye Kart brand is present in more than 9 thousand member work- places across Türkiye. On October 21, 2024, Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş. complet- ed the acquisition of all shares in Sofra. ('TÖHAŞ'). It provides a convenient digi- tal payment service with its contactless payment feature, which saves time for customers when making meal payments to their employees. Paye Kart facilitates swift and straightforward payment via a mobile application using the QR meth- od at contracted merchants and market chains utilizing the Paycell QR payment infrastructure. In addition, the Paye Kard Online payment option offers conve- nience and time savings through home delivery for online purchases made from contracted points. The Paye meal card stands out as the first meal card that can also be used in transportation. 27 We have 100% shareholding in the Company Turkcell Teknoloji Araştırma ve Geliştirme A.Ş. Since 2007, Turkcell Teknoloji has been contributing to the development of the technological infrastructure of Turkcell, Türkiye's leading company in the tele- communications sector. The company has a strategy of expanding its products and services in international markets and making its unique solutions available to operators abroad. In line with this strate- gy, Turkcell Teknoloji aims to develop new digital and ICT services on a global scale in line with the latest technology and market requirements and to expand the regions where Turkcell Group provides services. Turkcell continues to make significant progress in the field of technological studies. With the ambition of achieving numerous firsts in Türkiye and globally, Turkcell Technology is expanding to be- come Türkiye's largest and most compet- itive R&D structure, with a workforce of 1,052 research engineers by 2023. Turkcell Technology's strategic objective is to 'de- velop innovative technologies in the field of communication and impact' and to 'be a pioneer, leader and example by mak- ing the best use of domestic labor force' in R&D. The company is expanding its scope from being a technology-oriented network provider to a service-oriented experience provider, and becoming an R&D center in national and international markets with the innovative solutions it develops. The information and communication sector is characterised by dynamism and competitiveness, necessitating sub- stantial infrastructure and technological investments. In Türkiye, this sector has his- torically relied on foreign investments to finance R&D activities, primarily through foreign acquisitions. Since its establishment, Turkcell Teknoloji has provided import substitution for li- cense fees of over TRY 2 billion. Through strategic collaborations and joint proj- ects with our business partners, we have ensured that the foreign currency amount, which is much higher than our own technology production volume, re- mains in Türkiye and Turkcell engineers produce high value-added products. Turkcell Teknoloji's areas of focus include big data processing, business intelligence applications, smart cloud platform and solutions developed on the platform, geographic information systems, custom- er relationship management and solu- tions, network management solutions, next generation value added services, mobile financial systems, music and en- tertainment services, IPTV services, mo- bile marketing solutions, network infra- structure and solutions, projects for 5G and beyond infrastructure, mobile com- munication solutions, campaign manage- ment systems, smart SIM card solutions, digital identity technologies, image and video processing, text and natural lan- guage analysis (NLP), recommendation engines, voice analytics, robot assistants, robotic process automation, mobile an- alytical platforms, hospital management solutions, business application solu- tions, CDN (Content Delivery Network) Solutions, Over-the-Top (OTT), AIOps/ DevOps, blockchain, quantum technolo- gies and cyber security infrastructure and solutions. Since 2007, Turkcell Teknoloji has been a leading player in its field in Türkiye, with a portfolio of 4,969 national and 280 in- ternational patent applications, and 1,104 registered patents. Turkcell Technology has played an instrumental role in the dis- semination of technology by producing 30 academic and 347 technical publica- tions on national and international plat- forms in 2024. In addition, the Company has intensified its product promotion, conference participation and training activities across multiple channels to en- hance the technology experience of the ecosystem. Lifecell Ventures Lifecell Ventures, a 100% owned subsidi- ary of Turkcell established in the Nether- lands, aims to offer digital communication, content-based entertainment, music, TV applications and many technology solu- tions developed by Turkcell Group com- panies and technology business part- ners to the global market. These include TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 215 214 | TURKCELL 2024 INTEGRATED ANNUAL REPORT performance and network monitoring tools, and a customer value management platform. In 2017, the Company launched its first international digital solution part- nership with the revenue sharing model in Moldcell, an Eastern European operator, with 'BiP' and 'lifebox' products. Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş. In addition to the telecommunications sector, Turkcell Enerji Çözümleri ve Elektrik Satış Ticaret A.Ş., which began its oper- ations under the 'Enerjicell' brand in 2018, is responsible for the management of energy costs and coordination of oper- ations in order to provide Turkcell Group companies with the most advantageous electricity supply. Turkcell Enerji Çözüm- leri is expanding its portfolio in the energy sector with its investments and projects in the field of renewable energy generation and aims to increase its share in the sec- tor in both generation and supply. As part of these activities, the Compa- ny was the first to implement renewable energy investments using the self-con- sumption model in Turkcell-owned build- ings and completed rooftop solar energy projects, particularly at the Ankara Data Center . Turkcell Energy Solutions, which added an 18 MW wind power plant to its portfolio in 2021, commissioned an in- stalled capacity of 8.2 MW in 2024 within the scope of the 300 MW SPP project. In the coming periods, Turkcell Energy Solu- tions aims to continue its renewable ener- gy investments and transform Turkcell into a company that supplies and generates electricity from environmentally friendly sources with zero carbon emissions. Dijital İş Servisleri A.Ş. (DBS) As one of Türkiye's leading companies in terms of investment in human resources and technologies, our primary objective is to serve as a reliable technology partner, providing end-to-end, turnkey solutions to our clientele. Turkcell Dijital İş Servis- leri A.Ş. was established to support our customers in their digital transformation journey and to act as their strategic tech- nology partner in this field. We enable our customers to move forward with the most appropriate financial model in their new technology investment plans, so that they can focus more on their own business. Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. (Togg) Recent developments have led to a strengthening of the relationship be- tween Türkiye's Automobile Initiative Group Industry and Trade Inc. (Togg) and Turkcell. Turkcell continues to con- tribute to the provision of the most ad- vanced vehicle and fleet technologies that ensure the safety of vehicles and employees with e-mobility solutions of- fered within the scope of digital busi- ness services. Togg, in which Turkcell has a 23% stake, began mass production of its C-segment SUV model T10X in 2022 at the Gemlik Togg Technology Campus. To date, over 15 thousand T10Xs have been deployed on Turkish roads, with projec- tions indicating a further increase by the end of the year. Within the ecosystem to be created around the smart and con- nected device, new services, new user experiences and new business models are being developed in mobility. In this regard, a strategic cooperation agree- ment was signed with Paycell in 2022 to integrate innovative payment systems and digital financial solutions into the mobility ecosystem. In 2023, Togg's col- laboration with fizy, our digital music platform, began, providing Togg users with music. In 2024, we took this expe- rience one step further and integrated music and podcasts into Togg tools. We also integrated our cloud storage ser- vice Lifebox with Togg tools to ensure fast and secure backup of files. This col- laboration enhances the driving expe- rience for Togg users, allowing them to enjoy more quality time in their vehicles. As Turkcell, we provide critical informa- tion to municipalities and airline compa- nies in the field of transport planning. Our transport data matrices aid urban traffic planning and enable citizens to use pub- lic transport systems more efficiently. Si- multaneously, we contribute to the reduc- tion of carbon emissions by decreasing traffic density. Our data facilitates more accurate analysis of passenger flows be- tween cities and seasonal effects for air- line companies, enhancing the efficiency of their operations. In this way, we also contribute to effective transport planning in terms of energy efficiency and savings. Atmosware Teknoloji Eğitim ve Danışmanlık A.Ş. Atmosware was established in 2021 with the aim of creating innovative products in the field of software development, train- ing expert software developers in this field and providing services both locally and internationally. Since its establishment, Atmosware has organized a training program called 'In- vesting in Youth, Software for the Future' in collaboration with Turkcell Academy on an annual basis. To date, nearly 150 software developers have successful- ly completed the program. By adopting a master-apprentice relationship, it has also offered employment opportunities to experienced software developers and increased its staff in the field of informa- tion technologies to over 400. Atmosware is involved in the software product development process both in- house and by providing services to other technology companies in the ecosystem. Adopting the remote working model, At- mosware operates in 52 different cities of Türkiye with its employees. Statement Of Compliance With Corporate Governance Principles Turkcell İletişim Hizmetleri A.Ş. (“Turkcell” or the “Company”) is aware of its responsibilities to- wards its stakeholders, with the belief that high standards of corporate governance are key to maintain successful business practic- es and to provide long-term economic value to the company’s shareholders. Within this framework, having adopted the principles of “equality,” “transparency,” “accountability” and “responsibility” that constitute the basis of corporate governance in its activities, the Company exercises due diligence with re- gard to compliance with the Capital Markets Law (“CML”) and the secondary regulations and resolutions of the Capital Markets Board (“CMB”). In parallel with corporate governance efforts established with the creation of the Investor Relations Department at the time of the IPO, and gained momentum in 2003, corporate governance mechanisms are being imple- mented in line with the corporate gover- nance principles. Turkcell İletişim Hizmetleri A.Ş. places a great importance on the full compliance with Cor- porate Governance Principles. Although full compliance with non-mandatory corporate governance principles provided in the relevant legislation is aimed, it has yet to be achieved due to the challenges in the implementation of certain principles, the incompatibilities be- tween some principles and the current struc- ture of the Company and the market. Besides, an utmost care is given to compliance with mandatory corporate governance principles. In the activity period that ended as of De- cember 31, 2024, in the annual report’s fol- lowing sections, compliance to the corpo- rate governance principles annexed to the Communiqué on Corporate Governance is disclosed along with the necessary expla- nations given for the principles that are yet to complied with: (i) the Corporate Governance Compliance Report (“CGCR”) and (ii) the Cor- porate Governance Fact Sheet (“CGFS”) and (iii) other relevant sections. Within this frame- work: Considering the regulation and global best practices, board of directors’ performance evaluation forms were created as a result of the below process and implementation de- signed by the Corporate Governance and Capital Markets Compliance Directorate within the recommendation of the Corporate Governance Committee and with the guid- ance of Board of Directors. Accordingly, since 2021 each Board member completes “the Board of Directors Performance Evaluation” for the company's activities: 1. The scope of the evaluation process consists of the below set of questions in which the answers are measured within a certain scale. 2. Information provided to the Board before and during the meetings: The set of ques- tion contained in this section addresses issues such as whether there was timely, clear and comprehensive information re- garding the meeting agenda items, wheth- er financial information highlights important issues and trends, and the effectiveness and impartiality of the meetings. 3. Board Composition and Function: The set of question contained in this section ad- dresses issues such as whether the mem- bers have the necessary qualifications, experience and skills, whether a sufficient number of meetings are held, and the functioning of the committees. 4. Board Dynamics: The set of question con- tained in this section addresses the main issues such as the effectiveness of the over- sight, adequacy of annual business plan reviews and whether the Company’s value, mission, strategy, business plans are reflect- ed on important issues, and whether finan- cial indicators are followed up properly. 5. Board Members’ standards of conduct: The set of question contained in this sec- tion addresses issues such as conflict of interest and adequacy of contribution. 6. Within the above methodology, each Board Member have made separate evaluations. 7. Feedbacks of the Board Members have been reviewed. 8. Actions to improve the processes have been identified as a result of the reviewed and analyzed feedback. In line with the aim of using the improvement areas identified after the performance eval- uation process as the basis for advanced corporate governance practices, various actions were taken at corporate level. In 2024, improvement areas identified during the Board of Directors' performance evalu- ation process in 2023 were addressed, and focus areas were determined in collabora- tion with the relevant departments within the company. In this scope, studies were carried out to develop the qualitative and quantita- tive information packages provided prior to the meetings of the Board of Directors and Committees; to organize a joint session be- tween the Early Risk Detection Committee and the Strategy and Digitalization Com- mittee on Cybersecurity issues; to ensure that developments in the ESG field and the company’s ESG commitments are regular- ly monitored at the Board of Directors and Committees level; and to improve communi- cation channels among Board and Commit- tee members outside of scheduled meetings. Within the scope of NYSE’s listing rules re- garding clawback policy that are applicable to our company, which entered into force on October 2, 2023, it was obligated for public companies to recoup/recover erroneously awarded performance-based compensa- tions from defined executive persons under certain criteria if the Company is required to prepare a restatement of incomplete, inac- curate or misleading financial tables. In this context, our Company’s Board of Directors adopted Clawback Policy with a resolution dated November 7, 2023. Audit Committee, consisting of independent members, is desig- nated for the administration of the Clawback Policy. In 2024, secondary regulations regard- ing the implementation of the rules accept- ed by the Board of Directors and the Audit Committee at the policy level were prepared, and compliance studies were carried out in coordination with the Human and Business Support Function. In this context, covered in- dividuals within the scope of the Clawback Policy were identified, and their explicit con- sent declarations, confirming their accep- tance of the Clawback Policy, were taken. Disclosures regarding other issues, within the framework of the relevant legislation, particularly CMB legislation and Turkish Commercial Code are given below: — No extraordinary general assembly was held in 2024. — No administrative or judicial sanctions were imposed on our Company’s upper management. — Company's Articles of Association is not amended in 2024. — Turkish Commercial Code Article 376 is not applicable as the Company made profits in 2024. — There are no cross-ownership subsidiary in which the direct contribution to the capital exceeds 5%. — Information regarding the changes in the Board of Directors in 2024 is included in the ordinary general assembly meeting minutes, which was held on May 2, 2024. — The Company's CEO holds Group A signa- tory authority, while the Executive Vice Pres- idents hold Group B signatory authority. Considering the developments and best practices, studies will be carried out to im- prove our corporate governance practices and ensure better operation of the mech- anisms designed for the implementation of corporate governance principles. Should the CGCR or CGFS be amended with- in the activity period, a material event disclo- sure will be made, and such amendments will be included in the interim activity reports. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 217 216 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Corporate Governance Principles Compliance Report Company Compliance Status Yes Partial No Exemp ted Not Ap- plicable Explanation Corporate Governance Compliance Report 1.1. FACILITATING THE EXERCISE OF SHAREHOLDER RIGHTS 1.1.2 Uptodate information and disclosures which may affect the exercise of shareholder rights are available to investors at the corporate website. X 1.2. RIGHT TO OBTAIN AND REVIEW INFORMATION 1.2.1 Management did not enter into any transaction that would complicate the conduct of special audit. X 1.3. GENERAL ASSEMBLY 1.3.2 The company ensures the clarity of the General Assembly agenda, and that an item on the agenda does not cover multiple topics. X 1.3.7 Insiders with privileged information have informed the board of directors about transactions conducted on their behalf within the scope of the company's activities in order for these transactions to be presented at the General Shareholders' Meeting. X No information regarding this kind of activities were received from such person following the routine information requests made before the general assembly meetings. 1.3.8 Members of the board of directors who are concerned with specific agenda items, auditors, and other related persons, as well as the officers who are responsible for the preparation of the financial statements were present at the General Shareholders' Meeting. X 1.3.10 The agenda of the General Shareholders' Meeting included a separate item detailing the amounts and beneficiaries of all donations and contributions. X Donations and charities are included seperately on the general assembly agenda; but information regarding the amount and beneficiaries of these donations and charities are given seperately in the general assembly meeting within the scope of shareholders' right to obtain information. 1.3.11 The General Shareholders' Meeting was held open to the public, including the stakeholders, without having the right to speak. X Results of general assembly meeting has been shared with the media through press release. 1.4. VOTING RIGHTS 1.4.1 There is no restriction preventing shareholders from exercising their shareholder rights. X 1.4.2 The company does not have shares that carry privileged voting rights. X Please see AoA: Article 7.2. and 7.3. https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/ yatirimci-iliskileri/documents/pdf/TURKCELL-ANA- SOZLESME-ENG-13092023.pdf 1.4.3The company withholds from exercising its voting rights at the General Shareholders' Meeting of any company with which it has crossownership, in case such cross ownership provides management control. X There are no mutual participation. 1.5. MINORITY RIGHTS 1.5.1 The company pays maximum diligence to the exercise of minority rights. X 1.5.2 The Articles of Association extend the use of minority rights to those who own less than one twenthieth of the outstanding shares, and expand the scope of the minority rights. X Tresholds determined by the respective legislation are in effect. 1.6. DIVIDEND RIGHT 1.6.1 The dividend policy approved by the General Shareholders' Meeting is posted on the company website. X 1.6.2 The dividend distribution policy comprises the minimum information to ensure that the shareholders can have an opinion on the procedure and principles of dividend distributions in the future. X 1.6.3 The reasons for retaining earnings, and their allocations, are stated in the relevant agenda item. X Turkcell distributed dividend in 2024. 1.6.4 The board reviewed whether the dividend policy balances the benefits of the shareholders and those of the company. X 1.7. TRANSFER OF SHARES 1.7.1 There are no restrictions preventing shares from being transferred. X Without prejudice to Capital Markets Law 137/3, due to Article 7.5 of the AoA we ticked the "Partial" box. This partial restriction stems from regulations specific to the telecommunications sector in which the company operates. 2.1. CORPORATE WEBSITE 2.1.1. The company website includes all elements listed in Corporate Governance Principle 2.1.1. X 2.1.2 The shareholding structure (names, privileges, number and ratio of shares, and beneficial owners of more than 5% of the issued share capital) is updated on the website at least every 6 months. X 2.1.4 The company website is prepared in other selected foreign languages, in a way to present exactly the same information with the Turkish content. X Corporate web site related to public is available in English, Arabic and Russian language in addition to that Investor Relations page is provided both in Turkish and in English. 2.2. ANNUAL REPORT 2.2.1 The board of directors ensures that the annual report represents a true and complete view of the company's activities. X 2.2.2 The annual report includes all elements listed in Corporate Governance Principle 2.2.2. X 3.1. CORPORATION'S POLICY ON STAKEHOLDERS 3.1.1 The rights of the stakeholders are protected pursuant to the relevant regulations, contracts and within the framework of bona fides principles. X 3.1.3 Policies or procedures addressing stakeholders' rights are published on the company's website. X 3.1.4 A whistleblowing program is in place for reporting legal and ethical issues. X 3.1.5 The company addresses conflicts of interest among stakeholders in a balanced manner. X 3.2. SUPPORTING THE PARTICIPATION OF THE STAKEHOLDERS IN THE CORPORATION'S MANAGEMENT 3.2.1 The Articles of Association, or the internal regulations (terms of reference/manuals), regulate the participation of employees in management. X Employees' participation to the management is facilitated through internal regulations of the company and various company practices. 3.2.2 Surveys/other research techniques, consultation, interviews, observation method etc. were conducted to obtain opinions from stakeholders on decisions that significantly affect them. X 3.3. HUMAN RESOURCES POLICY 3.3.1 The company has adopted an employment policy ensuring equal opportunities, and a succession plan for all key managerial positions. X 3.3.2 Recruitment criteria are documented. X 3.3.3 The company has a policy on human resources development, and organizes trainings for employees. X 3.3.4 Meetings have been organized to inform employees on the financial status of the company, remuneration, career planning, education and health. X 3.3.5 Employees, or their representatives, were notified of decisions impacting them. The opinion of the related trade unions was also taken. X Our employees' rights to 'Assembly, Freedom of Association, and Unionizing' as expressed in the Constitution of the Republic of Türkiye are respected. In addition to this, as of 2024, there has been no written application made to Turkcell by any authorized labor union. Company Compliance Status Yes Partial No Exemp ted Not Ap- plicable Explanation TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 219 218 | TURKCELL 2024 INTEGRATED ANNUAL REPORT 3.3.6 Job descriptions and performance criteria have been prepared for all employees, announced to them and taken into account to determine employee remuneration. X 3.3.7 Measures (procedures, trainings, raising awareness, goals, monitoring, complaint mechanisms) have been taken to prevent discrimination, and to protect employees against any physical, mental, and emotional mistreatment. X 3.3.8 The company ensures freedom of association and supports the right for collective bargaining. X 3.3.9 A safe working environment for employees is maintained. X 3.4. RELATIONS WITH CUSTOMERS AND SUPPLIERS 3.4.1 The company measured its customer satisfaction, and operated to ensure full customer satisfaction. X 3.4.2 Customers are notified of any delays in handling their requests. X 3.4.3 The company complied with the quality standards with respect to its products and services. X 3.4.4 The company has in place adequate controls to protect the confidentiality of sensitive information and business secrets of its customers and suppliers. X 3.5. ETHICAL RULES AND SOCIAL RESPONSIBILITY 3.5.1 The board of the corporation has adopted a code of ethics, disclosed on the corporate website. X https://www.turkcell.com.tr/en/aboutus/investor- relations/corporate-governance/code-of-ethics 3.5.2The company has been mindful of its social responsibility and has adopted measures to prevent corruption and bribery. X 4.1. ROLE OF THE BOARD OF DIRECTORS 4.1.1 The board of directors has ensured strategy and risks do not threaten the long term interests of the company, and that effective risk management is in place. X 4.1.2 The agenda and minutes of board meetings indicate that the board of directors discussed and approved strategy, ensured resources were adequately allocated, and monitored company and management performance. X 4.2. ACTIVITIES OF THE BOARD OF DIRECTORS 4.2.1The board of directors documented its meetings and reported its activities to the shareholders. X 4.2.2 Duties and authorities of the members of the board of directors are disclosed in the annual report. X 4.2.3The board has ensured the company has an internal control framework adequate for its activities, size and complexity. X 4.2.4 Information on the functioning and effectiveness of the internal control system is provided in the annual report. X 4.2.5 The roles of the Chairman and Chief Executive Officer are separated and defined. X 4.2.7The board of directors ensures that the Investor Relations department and the corporate governance committee work effectively. The board works closely with them when communicating and settling disputes with shareholders. X 4.2.8 The company has subscribed to a Directors and Officers liability insurance covering more than 25% of the capital. X https://www.kap.org.tr/en/Bildirim/1381885 4.3. STRUCTURE OF THE BOARD OF DIRECTORS 4.3.9 The board of directors has approved the policy on its own composition, setting a minimal target of 25% for female directors. The board annually evaluates its composition and nominates directors so as to be compliant with the policy. X The Diversity Policy on the Board of Directors has been adopted. Within the framework of Board Diversity Policy, the target of having at least two female board members was achieved. 4.3.10 At least one member of the audit committee has 5 years of experience in audit/accounting and finance. X 4.4. BOARD MEETING PROCEDURES 4.4.1Each board member attend the majority of the board meetings in person or via an electronic board meeting system X 4.4.2 The board has formally approved a minimum time by which information and documents relevant to the agenda items should be supplied to all board members. X 4.4.3 The opinions of board members that could not attend the meeting, but did submit their opinion in written format, were presented to other members. X There has been no situation where opinions were communicated in writing. 4.4.4 Each member of the board has one vote. X 4.4.5 The board has a charter/written internal rules defining the meeting procedures of the board. X 4.4.6 Board minutes document that all items on the agenda are discussed, and board resolutions include director's dissenting opinions if any. X 4.4.7There are limits to external commitments of board members. Shareholders are informed of board members' external commitments at the General Shareholders' Meeting. X There is no rule which restricts board member to serve outside the company. The board members' duties outside the company are published in the Public Disclosure Platform (KAP) and in the annual report. 4.5. BOARD COMMITTEES 4.5.5 Board members serve in only one of the Board's committees. X Due to the number of the board of members, they are serving as a committee member in more than one comittee. 4.5.6 Committees have invited persons to the meetings as deemed necessary to obtain their views. X 4.5.7 If external consultancy services are used, the independence of the provider is stated in the annual report. X No service has been received from an outside counsel in 2024. 4.5.8 Minutes of all committee meetings are kept and reported to board members. X 4.6. FINANCIAL RIGHTS 4.6.1The board of directors has conducted a board performance evaluation to review whether it has discharged all its responsibilities effectively. X Information regarding Board of Directors' performance evaluation can be found in the annual report. 4.6.4 The company did not extend any loans to its board directors or executives, nor extended their lending period or enhanced the amount of those loans, or improve conditions thereon, and did not extend loans under a personal credit title by third parties or provided guarantees such as surety in favour of them. X 4.6.5 The individual remuneration of board members and executives is disclosed in the annual report. X In the Ordinary General Assembly Dated May 2, 2024, it was decided that the Chairman and each member of the Board of Directors have a monthly compensation of TRY 150 thousand during the term of office and to increase the aforementioned remuneration at the rate of the average salary increase to be made to the company employees. In parallel with the common practice, aggregate amount of the executive remuneration is disclosed in the annual report. Company Compliance Status Yes Partial No Exemp ted Not Ap- plicable Explanation Company Compliance Status Yes Partial No Exemp ted Not Ap- plicable Explanation TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 221 220 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Corporate Governance Information Form 1. SHAREHOLDERS 1.1. Facilitating the Exercise of Shareholders Rights The number of investor meetings (conference, seminar/etc.) organized by the company during the year In 2024, Investor Relations Department attended 6 investor conferences and 3 roadshow meetings, organized 1 group meeting with asset management companies and 2 group meetings with analysts, conducted a total of 223 one-on- one meetings. 1.2. Right to Obtain and Examine Information The number of special audit request(s) 0 The number of special audit requests that were accepted at the General Shareholders' Meeting 0 1.3. General Assembly Link to the PDP announcement that demonstrates the information requested by Principle 1.3.1. (ad) https://www.kap.org.tr/en/Bildirim/1268984 Whether the company provides materials for the General Shareholders' Meeting in English and Turkish at the same time Provided in English as well. The links to the PDP announcements associated with the transactions that are not approved by the majority of independent directors or by unanimous votes of present board members in the context of Principle 1.3.9 No transaction has been executed in the context of Principle 1.3.9 The links to the PDP announcements associated with related party transactions in the context of Article 9 of the Communique on Corporate Governance (II17.1) No related party transactions has been executed above the tresholds. The links to the PDP announcements associated with common and continuous transactions in the context of Article 10 of the Communique on Corporate Governance (II17.1) No related party transactions has been executed above the treshold. The name of the section on the corporate website that demonstrates the donation policy of the company https://www.turkcell.com.tr/en/aboutus/investor- relations/corporate-governance/donation-policy The relevant link to the PDP with minute of the General Shareholders' Meeting where the donation policy has been approved https://kap.org.tr/en/Bildirim/517918 The number of the provisions of the articles of association that discuss the participation of stakeholders to the General Shareholders' Meeting Not available. Identified stakeholder groups that participated in the General Shareholders' Meeting, if any Not available. 1.4. Voting Rights Whether the shares of the company have differential voting rights There are voting privileges In case that there are voting privileges, indicate the owner and percentage of the voting majority of shares. Please see AoA: Article 7.2. and 7.3. https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/ yatirimci-iliskileri/documents/pdf/TURKCELL-ANA- SOZLESME-ENG-13092023.pdf The percentage of ownership of the largest shareholder 26.2% 1.5. Minority Rights Whether the scope of minority rights enlarged (in terms of content or the ratio) in the articles of the association No If yes, specify the relevant provision of the articles of association. Not available. 1.6. Dividend Right The name of the section on the corporate website that describes the dividend distribution policy https://www.turkcell.com.tr/en/aboutus/investor- relations/corporate-governance/dividend-policy Minutes of the relevant agenda item in case the board of directors proposed to the general assembly not to distribute dividends, the reason for such proposal and information as to use of the dividend. Dividends are distributed in 2024. PDP link to the related general shareholder meeting minutes in case the board of directors proposed to the general assembly not to distribute dividends Dividends are distributed in 2024. General Assembly Meetings General Meeting Date 2/5/2024 The number of information requests received by the company regarding the clarification of the agenda of the General Shareholders' Meeting 0 Shareholder participation rate to the General Shareholders' Meeting 64.69% Percentage of shares directly present at the GSM 0.61% Percentage of shares represented by proxy 64.08% Specify the name of the page of the corporate website that contains the General Shareholders' Meeting minutes, and also indicates for each resolution the voting levels for or against https://www.turkcell.com.tr/en/aboutus/investor-relations/ corporate-governance/general-assembly-information Specify the name of the page of the corporate website that contains all questions asked in the general assembly meeting and all responses to them https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/ yatirimci-iliskileri/documents/pdf/2023-GK-Minutes.pdf The number of the relevant item or paragraph of General Shareholders' Meeting minutes in relation to related party transactions As the capital markets legislation imposes liability to report the related party transactions depending on the specified thresholds, this obligation is observed. The number of declarations by insiders received by the board of directors 0 The link to the related PDP general shareholder meeting notification https://www.kap.org.tr/en/Bildirim/1280793 2. DISCLOSURE AND TRANSPARENCY 2.1. Corporate Website Specify the name of the sections of the website providing the information requested by the Principle 2.1.1. https://www.turkcell.com.tr/en/aboutus/investor- relations If applicable, specify the name of the sections of the website providing the list of shareholders (ultimate beneficiaries) who directly or indirectly own more than 5% of the shares. https://www.turkcell.com.tr/en/aboutus/investor- relations/corporate-governance/shareholder-structure List of languages for which the website is available Turkish, English, Arabic (Partial) and Russian (Partial) 2.2. Annual Report The page numbers and/or name of the sections in the Annual Report that demonstrate the information requested by principle 2.2.2. a) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on the duties of the members of the board of directors and executives conducted out of the company and declarations on independence of board members Information provided in the Annual Report under Roles of Turkcell Board Members at Other Companies section. b) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on committees formed within the board structure Information provided in our website under "Investor Relations>Corporate Governance>Board Committees" heading and in the Corporate Governance Information Filings under section 4 which is attached to our annual report. c) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on the number of board meetings in a year and the attendance of the members to these meetings Information provided in the Corporate Governance Information Filings, which is attached to our annual report, under Section 4. ç) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on amendments in the legislation which may significantly affect the activities of the corporation Information provided in the Annual Report under Our Companies and Sector Developments. d) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on significant lawsuits filed against the corporation and the possible results thereof Information provided under note 20 of CMB report which is attached to our Annual Report. e) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on the conflicts of interest of the corporation among the institutions that it purchases services on matters such as investment consulting and rating and the measures taken by the corporation in order to avoid from these conflicts of interest Invesment consultancy services are not received. Measures taken for conflicts of interest in rating services are included in Financial Capital section. f) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on the cross ownership subsidiaries that the direct contribution to the capital exceeds 5% Information provided under note 1 of CMB report which is attached to our Annual Report. g) The page numbers and/or name of the sections in the Annual Report that demonstrate the information on social rights and professional training of the employees and activities of corporate social responsibility in respect of the corporate activities that arises social and environmental results Information provided in the Annual Report under section Social Capital. 3. STAKEHOLDERS 3.1. Corporation’s Policy on Stakeholders The name of the section on the corporate website that demonstrates the employee remedy or severance policy It is not disclosed on the Company's website. The number of definitive convictions the company was subject to in relation to breach of employee rights 2 receivables lawsuits have been partially accepted in our favor. The position of the person responsible for the alert mechanism (i.e. whistleblowing mechanism) Ethics Committee The contact detail of the company alert mechanism E-mail : ethicscommittee@turkcell.com.tr Address : Turkcell İletişim Hizmetleri A.Ş. Etik Kurulu Aydınevler Mah. İnönü Cad. No.20, Küçükyalı / İstanbul 3.2. Supporting the Participation of the Stakeholders in the Corporation’s Management Name of the section on the corporate website that demonstrates the internal regulation addressing the participation of employees on management bodies Not available. Corporate bodies where employees are actually represented Not available. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 223 222 | TURKCELL 2024 INTEGRATED ANNUAL REPORT 3.3. Human Resources Policy The role of the board on developing and ensuring that the company has a succession plan for the key management positions Board of Directors, when necessary, get involved in the procees through Nomination Committee within the framework of the Committee's roles&responsibilities. https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/ yatirimci-iliskileri/documents/pdf/Nomination-Committe-Charter.pdf The name of the section on the corporate website that demonstrates the human resource policy covering equal opportunities and hiring principles. Also provide a summary of relevant parts of the human resource policy. Turkcell is an equal opportunity employer and considers all qualified applicants for employment regardless of disability, race, color, religion, gender, national origin, ethnicity, age, physical appearance or status, marital status, military service status. Hiring process is carried out by taking Equal Opportunities Policy into consideration under the responsibility of the HR Department. During the hiring process objective criteria such as; a.Being Turkish citizen or having work permit in Türkiye b.Not to be deprived from civil rights c.Not to have a disease that will prevent him/her from working or pose a threat to the environment d.Not to be sentenced for an infamous crime e.Not under obligation of an involuntary servitude f.To have a graduate degree g.To have required skills determined specifically to the title and role (such as experience, field of graduation, certificate etc.) h.”Close Relatives” (Spouses, brothers/sisters, children, father, mother, uncle, maternal aunt, paternal aunt) of people working in Turkcell Group companies may not be employed in Turkcell Group Companies. Employees with no past experience are assessed within the special hiring programs such as GnçYtnk. External candidate applications are made through My Career www.turkcell.com.tr The link to the relevant section on equal opportunities on the corporate website is as follows (in Turkish): https://www.turkcell.com.tr/tr/hakkimizda/insan-kaynaklari/firsat-esitligi-politikamiz The section containing the human resources policy including recruitment criteria; Information for all career opportunities, including positions and recruitment criteria, are publicly available at the link below(in Turkish): https://kariyerim.turkcell.com.tr/kariyer-firsatlari Whether the company provides an employee stock ownership program There isn't any employee stock ownership program The name of the section on the corporate website that demonstrates the human resource policy covering discrimination and mistreatments and the measures to prevent them. Also provide a summary of relevant parts of the human resource policy. https://www.turkcell.com.tr/todiek/english.html The number of definitive convictions the company is subject to in relation to health and safety measures We have no finalized workplace accident lawsuits ruled against us. 3.5. Ethical Rules and Social Responsibility The name of the section on the corporate website that demonstrates the code of ethics https://www.turkcell.com.tr/todiek/english.html The name of the section on the company website that demonstrates the corporate social responsibility report. If such a report does not exist, provide the information about any measures taken on environmental, social and corporate governance issues. https://www.turkcell.com.tr/en/aboutus/corporate-social-responsibility/ sustainability Any measures combating any kind of corruption including embezzlement and bribery For our Company it is essential to carry out its activities in a fair, honest, legal and ethical manner. Turkcell Group Anti-Bribery and Corruption (“ABC”) Policy demonstrates and reflects our Company’s Board of Director’s commitment to the highest prevailing national and international anti-corruption and bribery standards. Turkcell expects the same degree of commitment from group companies as well. Within the main framework of the ABC Policy; in April 2018 Corporate Governance & ABC Program Office has been established and an ABC program which provides necessary risk based trainings and establishes internal communication, and takes necessary preventive measures to ensure compliance with the rules has been initiated. With the establishment of the ABC Office, direct and efficient channels have been designed to access the Board of Directors, its committees and Senior Management with respect to ABC compliance related matters. ABC Office is the first contact point so that values and processes set by the ABC Program to be understood well and set these in motion along with Company’s dynamics. (Please see https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/anti-bribery-and-corruption-policy to obtain more information on our ABC Policy). Starting from January 1, 2021, Corporate Governance & ABC Program Office continues its activities under the title of ""Corporate Governance & Capital Markets Compliance Directorate"" with the same direct reporting to board and autonomous structure. 4.2. Activity of the Board of Directors Date of the last board evaluation conducted The performance evaluation made with the coordination of Corporate Governance & Capital Markets Compliance unit is concluded in December 2024 upon Board Members' fulfillment of the evaluation forms. Whether the board evaluation was externally facilitated No Whether all board members released from their duties at the GSM Yes Name(s) of the board member(s) with specific delegated duties and authorities, and descriptions of such duties There are no executive members on the Board of Directors, and all board members have Group A signing authority. Number of reports presented by internal auditors to the audit committee or any relevant committee to the board 19 Specify the name of the section or page number of the annual report that provides the summary of the review of the effectiveness of internal controls Information provided in the Annual Report under Efficient Risk and Crisis Management section. Name of the Chairman Şenol Kazancı Name of the CEO Ali Taha Koç, PhD If the CEO and Chair functions are combined: provide the link to the relevant PDP annoucement providing the rationale for such combined roles CEO and Chair functions are not combined. Link to the PDP notification stating that any damage that may be caused by the members of the board of directors during the discharge of their duties is insured for an amount exceeding 25% of the company's capital https://www.kap.org.tr/en/Bildirim/1381885 The name of the section on the corporate website that demonstrates current diversity policy targeting women directors Board of Directors Diversity Policy was adopted. https://ffo3gv1cf3ir.merlincdn.net/DeviceDocumentLibrary/bireysel/Diger/ yonetim-kurulu-cesitlilik-politikasi-eng.pdf The number and ratio of female directors within the Board of Directors There are 2 members. Ratio to the total number of members is 22.22%. Composition of Board of Directors Name, Surname of Board Member Whether Executive Director Or Not Whether Independent Director Or Not The First Election Date To Board Link to PDP Notification That Includes The Independency Declaration Whether the Independent Director Considered By The Nomination Committee Whether She/He is the Director Who Ceased to Satisfy The Independence or Not Whether The Director Has At Least 5 Years’ Experience On Audit, Accounting And/Or Finance Or Not Şenol Kazancı Non-Executive Board Member Not An Independent Board Member April 15, 2021 Not Considered. No No Serdar Çetin Non-Executive Board Member Independent Board Member June 14, 2022 https://www.kap.org. tr/tr/Bildirim/1280793 https://www.kap.org. tr/en/Bildirim/1280793 Considered No Yes Mehmet Naci İnci Non-Executive Board Member Independent Board Member May 2, 2024 https://www.kap.org. tr/tr/Bildirim/1280793 https://www.kap.org. tr/en/Bildirim/1280793 Considered No No Nail Olpak Non-Executive Board Member Not An Independent Board Member March 6, 2020 Considered No Yes İdris Sarısoy Non-Executive Board Member Independent Board Member May 2, 2024 https://www.kap.org. tr/tr/Bildirim/1280793 https://www.kap.org. tr/en/Bildirim/1280793 Considered No No Figen Kılıç Non-Executive Board Member Not An Independent Board Member January 29, 2021 Not Considered. No No Salim Arda Ermut Non-Executive Board Member Not An Independent Board Member May 2, 2024 Not Considered. No Yes Ayşe Nur Bahçekapılı Non-Executive Board Member Not An Independent Board Member September 14, 2023 Not Considered. No No Melikşah Yasin Non-Executive Board Member Not An Independent Board Member September 13, 2023 Not Considered. No No 4. BOARD OF DIRECTORSI TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 225 224 | TURKCELL 2024 INTEGRATED ANNUAL REPORT 4. BOARD OF DIRECTORS-II 4.4. Meeting Procedures of the Board of Directors Number of physical or electronic board meetings in the reporting period 7 Director average attendance rate at board meetings 100.00% Whether the board uses an electronic portal to support its work or not No electronic portal. Number of minimum days ahead of the board meeting to provide information to directors, as per the board charter Within the framework of our actions to enhance Corporate Governance practices and improve the board of directors' access to information, the previous deadline of "5 days before the meeting" has been updated as "reasonable time" The name of the section on the corporate website that demonstrates information about the board charter Article 11 of the Company's Articles of Association and the Board of Directors' Internal Directive of Turkcell İletişim Hizmetleri Anonim Şirketi specify how the Board of Directors meetings will be conducted. https://ffo3gv1cf3ir.merlincdn.net/SiteAssets/Hakkimizda/yatirimci-iliskileri/ documents/pdf/TURKCELL-ANA-SOZLESME-ENG-13092023.pdf https://s.turkcell.com.tr//SiteAssets/Hakkimizda/yatirimci-iliskileri/documents/pdf/ bod-working-principles-v2.pdf Number of maximum external commitments for board members as per the policy covering the number of external duties held by directors We do not have such policy. 4.5. Board Committees Page numbers or section names of the annual report where information about the board committees are presented Information provided in our website under "Investor Relations>Corporate Governance>Board Committees" heading and in the Corporate Governance Information Filings under section 4 which is attached to our annual report. Link(s) to the PDP announcement(s) with the board committee charters https://www.kap.org.tr/en/Bildirim/1215095 https://www.kap.org.tr/en/Bildirim/1186832 Composition of Board Committees-I Names Of The Board Committees Name-Surname of Committee Members Whether Committee Chair Or Not Whether Board Member Or Not Audit Committee İdris Sarısoy Yes Board Member Audit Committee Serdar Çetin No Board Member Audit Committee Mehmet Naci İnci No Board Member Corporate Governance Committee Serdar Çetin Yes Board Member Corporate Governance Committee Melikşah Yasin No Board Member Corporate Governance Committee Özlem Yardım No Non Board Member Corporate Governance Committee Emre Alpman No Non Board Member Nomination Committee İdris Sarısoy Yes Board Member Nomination Committee Şenol Kazancı No Board Member Nomination Committee Melikşah Yasin No Board Member Early Detection of Risk Committee Mehmet Naci İnci Yes Board Member Early Detection of Risk Committee Figen Kılıç No Board Member Early Detection of Risk Committee Ayşe Nur Bahçekapılı No Board Member Remuneration Committee İdris Sarısoy Yes Board Member Remuneration Committee Şenol Kazancı No Board Member Remuneration Committee Nail Olpak No Board Member Strategy and Digitalization Commiittee Mehmet Naci İnci Yes Board Member Strategy and Digitalization Commiittee Şenol Kazancı No Board Member Strategy and Digitalization Commiittee Serdar Çetin No Board Member Strategy and Digitalization Commiittee Tolga Kılıç No Non Board Member Strategy and Digitalization Commiittee Mustafa Demirhan No Non Board Member 4. BOARD OF DIRECTORS-III 4.5. Board CommitteesII Specify where the activities of the audit committee are presented in your annual report or website (Page number or section name in the annual report/website) Please see: https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/board-committees Specify where the activities of the corporate governance committee are presented in your annual report or website (Page number or section name in the annual report/website) Please see: https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/board-committees Specify where the activities of the nomination committee are presented in your annual report or website (Page number or section name in the annual report/website) Please see: https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/board-committees Specify where the activities of the early detection of risk committee are presented in your annual report or website (Page number or section name in the annual report/website) Please see: https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/board-committees Specify where the activities of the remuneration committee are presented in your annual report or website (Page number or section name in the annual report/website) Please see: https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/board-committees 4.6. Financial Rights Specify where the operational and financial targets and their achievement are presented in your annual report (Page number or section name in the annual report) Information provided in the Annual Report under Turkcell Group: 2024 Financial & Operational Review Specify the section of website where remuneration policy for executive and non executive directors are presented. https://www.turkcell.com.tr/en/aboutus/investor-relations/corporate- governance/compensation-policy Specify where the individual remuneration for board members and senior executives are presented in your annual report (Page number or section name in the annual report) Information provided under note 37 of CMB report which is attached to our Annual Report. Composition of Board Committees-II Names Of The Board Committees The Percentage Of Non- executive Directors The Percentage Of Independent Directors In The Committee The Number Of Meetings Held In Person The Number of Reports on its Activities Submitted to the Board Audit Committee 100% 100% 7 7 Corporate Governance Committee 50% 25% 2 2 Nomination Committee 100% 33% 0 2 Early Detection of Risk Committee 100% 33% 6 6 Remuneration Committee 100% 33% 2 2 Strategy and Digitalization Committee 60% 40% 3 2 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 227 226 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Board Member Name-Surname Duties Outside the Group: Company Name Duties Outside the Group: Title/Position Still Working in the Related Company Şenol Kazancı - - - Nail Olpak PAK YATIRIM İnşaat Sanayi ve Ticaret A.Ş. Chairman of the Board Yes NORA Elektrik Malzemeleri Sanayi ve Ticaret A.Ş. Chairman of the Board Yes ANDEVA Özel Eğitim Inşaat ve Özel Sağlık Hizmetleri A.Ş. NONE No GİRİŞİM KİTLE FONLAMA Platformu A.Ş. NONE No AVRUPA OTOYOLU Yatırım ve İşletme A.Ş. Member of the Board Yes KMO Anadolu Otoyol İşletmesi A.Ş. Member of the Board Yes MARMARA OTOYOLU Yatırım ve İşletme A.Ş. Member of the Board Yes MARMARA OTOYOL İnşaatı Adi Ortaklığı Ticari İşletmesi Member of the Board Yes KRP Otoyol Inşaati Adi Ortaklığı Ticari İşletmesi Member of the Board Yes NARKARA Elektrik Üretim Sanayi ve Ticaret A.Ş Member of the Board Yes HMN İnşaat Enerji Sanayi ve Ticaret A.Ş. NONE No PAK YATIRIM VENTURES Teknoloji Yatırımları San. ve Tic. A.Ş. NONE No PAK YATIRIM ENERJİ Sanayi ve Ticaret A.Ş. NONE No PAK YATIRIM TARIM Hayvancılık Sanayi ve Ticaret A.Ş. NONE No STARTUP A.Ş NONE No TURKCELL İletişim Hizmetleri A.Ş. Member of the Board Yes TURK EXIMBANK A.Ş. Member Yes Melikşah Yasin Istanbul University Faculty of Law Prof. Dr. Faculty Member Yes Ayşe Nur Bahçekapılı Presidential Legal Policy Board Member Yes Salim Arda Ermut Türkiye Wealth Fund General Manager General Manager Yes Türkiye Wealth Fund Board Member Member of the Board Yes Türkiye Participation Insurance Inc. Board Member Member of the Board Yes Türkiye Participation Life Inc. Board Member Member of the Board Yes Figen Kılıç Istanbul Chamber of Commerce Council Member Yes Technopark Istanbul Member of the Board Yes TUBITAK TEYDEB Bilteg Advisory Board Membership Jury Member / Referee Yes Mehmet Naci İnci Bogazici University Prof. Dr. Rector Yes Serdar Çetin Purple Crest Investments LLP Partner Yes İdris Sarısoy Marmara University, Faculty of Political Sciences, Depart- ment of Political Science and Public Administration. Prof. Dr. Faculty Member Yes 01.01.2024 - 31.12.2024 Fiscal Year Conclusion of the Report on the relationship among the Parent Company and the subsidiaries as per Article 199 of the Turkish Commercial Code: Details of the legal transactions of our Company with TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. and its subsidiaries during the fiscal year 2024 are given in the above tables. There is nei- ther any legal transaction made in favor of TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş or one of its subsidiaries nor any action taken or avoided in favor of TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. or one of its subsidiaries upon directive by TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. Details of services provided and/or fixed asset purchases/sales performed under operational activities carried out between our Company and TVF Bilgi Teknolojileri İletişim Hizmetleri Yat. San. ve Tic. A.Ş. and/or its subsidiaries that are fully in conformity with the market during the fiscal year 2024 are included in this Report. Roles of Turkcell Board Members at Other Companies Conclusion of the Subsidiary Report Our annual consolidated financial statements including our consolidated statements of financial position as of December 31, 2024 and 2023 and our consolidated statements of profit and loss, comprehensive income, changes in equity and cash flows for the three years in the period ended December 31, 2024 and the related notes included in this annual report have been prepared in accordance with Inter- national Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Report”). The following financial and operational overview focuses principally on the developments and trends in our business in the full year 2024 and should be read in conjunction with the IFRS report. This consolidated financial statement contains the Company’s financial information prepared in ac- cordance with International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies (“IAS29"). This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, Section 21E of the U.S. Securities Exchange Act of 1934, and the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. This includes, in particular, and without limitation, our targets for consolidated revenue growth, data center and cloud revenue growth, EBITDA margin, and operational capex over sales ratio for the full year 2025. The figures are expressed in Turkish Liras (TRY) unless otherwise stated. A year on year comparison of key indicators is provided and figures in parentheses following the operational and financial results for the year end 2024 refer to the same item for the year end of 2023 unless otherwise stated. In the tables totals may not foot due to rounding differences. The same applies to the calculations in the text. Turkcell Group: Financial Summary Year Profit & Loss Statement (TRY million) 2023 2024 y/y% Revenue 154,653.0 166,671.4 7.8% Cost of revenue1 (76,692.6) (77,979.6) 1.7% Cost of revenue1/Revenue (49.6%) (46.8%) 2.8pp Gross Margin1 50.4% 53.2% 2.8pp Administrative expenses (4,951.5) (6,919.9) 39.8% Administrative expenses/Revenue (3.2%) (4.2%) (1.0pp) Selling and marketing expenses (8,204.1) (10,948.7) 33.5% Selling and marketing expenses/Revenue (5.3%) (6.6%) (1.3pp) Net impairment losses on financial and contract assets (1,455.6) (1,021.2) (29.8%) EBITDA2 63,349.2 69,802.0 10.2% EBITDA Margin 41.0% 41.9% 0.9pp Depreciation and amortization (45,189.1) (47,563.0) 5.3% EBIT3 18,160.1 22,239.0 22.5% EBIT Margin 11.7% 13.3% 1.6pp Net finance income / (costs) (4,982.6) (796.9) (84.0%) Finance income 18,283.7 10,378.4 (43.2%) Finance costs (28,777.0) (17,025.9) (40.8%) Monetary gain / (loss) 5,510.8 5,850.5 6.2% Other income / (expenses) (6,880.4) (2,326.5) (66.2%) Non-controlling interests 31.4 8.6 (72.6%) Share of profit of equity accounted investees 2,202.0 (3,162.6) (243.6%) Income tax expense 6,751.0 (4,866.0) (172.1%) Net Income 18,125.3 23,523.4 29.8% (1) Excluding depreciation and amortization expenses. (2) EBITDA is a non-GAAP financial measure. See page 16 on our FY2024 Press Release for the explanation of how we calculate Adjusted EBITDA and its reconciliation to net income. (3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses. Turkcell Group: 2024 Financial & Operational Review TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 229 228 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Consolidated Balance Sheet Data (at period end) (TRY million) 2023 2024 Change (%) Cash and cash equivalents 72,158.7 68,934.3 (4.5%) Total assets 356,735.9 344,275.6 (3.5%) Long term debt 83,662.7 52,435.2 (37.3%) Total debt 121,399.7 104,340.3 (14.1%) Total liabilities 180,254.7 157,309.1 (12.7%) Total shareholders’ equity / Net Assets 176,481.2 186,966.5 5.9% Summary Consolidated Cash Flow Statement (TRY million) 2023 2024 Change (%) Net cash inflow from operating activities 60,237.0 63,257.1 5.0% Net cash outflow from investing activities (30,183.5) (37,100.1) 22.9% Net cash (outflow)/inflow from financing activities 9,773.5 (9,784.2) (200.1%) Effects of exchange rate changes on cash and cash equivalents (23,825.9) (25,430.4) 6.7% Cash and Cash Equivalents 72,158.7 68,934.3 (4.5%) Profitability and Solvency Ratios (%) 2023 2024 Change% Gross Profit Margin1 50.4% 53.2% 2.8pp EBITDA Margin2 41.0% 41.9% 0.9pp EBIT Margin3 11.7% 13.3% 1.6pp Net income Margin 11.7% 14.1% 2.4pp Total Liability / Equity Ratio 102.1% 84.1% (18.0pp) Net Debt / EBITDA Multiple 0.5x 0.1x (0.4x) (1) Excluding depreciation and amortization expenses. (2) EBITDA is a non-GAAP financial measure. See page 16 on our FY2024 Press Release for the explanation of how we calculate Adjusted EBITDA and its recon- ciliation to net income. (3) EBIT is a non-GAAP financial measure and is equal to EBITDA minus depreciation and amortization expenses. Explanations: Revenue: of the Group increased by 7.8% year-on-year in FY24. This was driven mainly by the higher postpaid customer base of Turkcell Türkiye and price adjustments. Additionally, solid momentum in the techfin business supported Group revenue growth. For the full year, Turkcell Türkiye revenues, comprising 86% of Group revenues, grew 8.3% to TRY 143,772 million (TRY 132,760 million). —Consumer business rise4 was the main driver of Turkcell Türkiye’s performance, achieving 13.0% growth through price adjust- ments, net additions both in mobile and fixed segments, and upsell efforts. —Corporate revenues4 declined by 3.5%. The challenging economic climate, which led to restrained demand, adversely af- fected the hardware revenues of digital business services, resulting in a 35% contraction. Meanwhile, service revenues re- corded 14% growth. —Wholesale revenues were down 9.2% to TRY 8,443 million (TRY 9,298 million). (4) Following the change in the organizational structure, the revenues from sole proprietorship subscribers that we define as Merchant, which were previously managed under the Corporate segment, are being reported under the Consumer segment as of and from the third quarter of 2023. Within this scope, past data has been revised for comparative purposes. Turkcell International1 revenues, comprising 2% of Group revenues, rose 5.9% to TRY 4,015 million (TRY 3,791 million). Techfin segment revenues, accounting for 5% of Group revenues, grew by 30.9% to TRY 8,634 million (TRY 6,596 million), exceeding the decline in the Other segment. Please refer to the Techfin section for details. Other subsidiaries’ revenues, comprising 6% of Group revenues, which mostly include non-group call center and energy business revenues and consumer electronics sales revenues, decreased by 10.9% to TRY 10,251 million (TRY 11,506 million). Cost of revenue (excluding depreciation and amortization) decreased to 46.8% (49.6%) as a percentage of revenues for the full year of 2024. This was driven mainly by the decline in cost of goods sold (2.7pp), interconnection cost (1.0pp), energy cost (0.8pp), and other cost items (0.4pp), despite the increase in personnel expenses (1.4pp) and cost of funding (0.7pp) as a percentage of revenues for the full year. Administrative expenses increased to 4.2% (3.2%) as a percentage of revenues for the full year. The primary driver of this increase was the rise in personnel expenses. Selling and marketing expenses increased to 6.6% (5.3%) as a percentage of revenues in FY24. The rise in personnel expenses (0.6pp) and marketing expenses (0.6pp) as a percentage of revenues was the main driver of this increase while selling expenses grew in parallel with group revenues. Net impairment losses on financial and contract assets were at 0.6% (0.9%) as a percentage of revenues in FY24. EBITDA2 grew by 10.2% year-on-year in FY24 leading to an EBITDA margin of 41.9% with a 0.9pp improvement (41.0%). — Turkcell Türkiye EBITDA increased 13.2% to TRY 66,447 million (TRY 58,709 million), leading to an EBITDA margin of 46.2% (44.2%). — Turkcell International EBITDA rose 4.9% to TRY 1,473 million (TRY 1, 405 million), with a slight 0.4pp dilution in the EBITDA margin to 36.7% in FY24. — Techfin segment EBITDA declined 6.3% to TRY 2,174 million (TRY 2,321 million) with a 10pp contraction in EBITDA margin to 25.2% (35.2%). Higher funding costs only led to an 8.6pp drop in the EBITDA margin. — The EBITDA of other subsidiaries was at minus TRY 293 million (TRY 914 million). Depreciation and amortization expenses increased by 5.3% year-on-year for the full year Net finance costs decreased to TRY 797 million (TRY 4,983 million) in FY24, including a TRY 5.9 billion monetary gain and net FX losses of TRY 5.5 billion. This decrease can be primarily attributed to a lower net FX loss due to a shrinking derivative portfolio. The derivative portfolio was reduced primarily due to cash inflows from Ukrainian asset sales and the advantage of holding Turkish Lira over derivative instruments, espe- cially given the TRY's stability against foreign currencies. Other expenses decreased to TRY 2,326 million (TRY 6,880 million) for the full year. Please recall that a donation was made in response to the devastating earthquake centered in Kahramanmaraş in 2023. In the same year, higher litigation expenses were also recorded. Income tax expense: The income tax expense of TRY 4,866 million (positive TRY 6,751 million) was reported. This variance can be attributed to two key factors: the reversal of deferred tax income, which had a positive impact in the previous year, and an increase in corporate tax expense. The higher corporate tax expense is primarily a consequence of the company's statutory financials reflecting a tax-paying position in FY24. Profit /(loss) from discontinued operations of TRY 12,428 million (TRY 2, 844 million) was recorded for this year. This figure includes Ukrainian asset sales. Net income of the Group increased by 29.8% to TRY 23.523 million (TRY 18.125 million) in FY24. Strong revenue and EBITDA performance, along with proceeds from the sale of our Ukrainian assets, positively impacted net income, while income tax expense, partially offset by lower net finance costs, had a negative impact. (1) As per our Company’s announcement on September 9, 2024, we no longer hold any shares in companies operating in Ukraine as of Q324. (2) EBITDA is a non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to net income, see page 16 of the 2024 Press Release. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 231 230 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Total cash & debt: Consolidated cash as of December 31, 2024, decreased to TRY 68,934 million compared to TRY 72,159 million as of December 31, 2023. This decrease reflects the TRY 6.3 billion dividend payment made on December 5, 2024. We also strategically invested in instruments classified under financial assets in the balance sheet to enhance the utilization of our cash. Excluding FX swap transactions, 51% of our cash is in USD, 22% in EUR, 3% in CNY, and 24% in TRY. Consolidated debt as of December 31, 2024, decreased to TRY 104,340 million from TRY 121,400 million as of December 31, 2023. Please note that TRY 4,823 million of our consolidated debt is comprised of lease obligations. Note, too, that 43% of our consolidated debt is in USD, 32% in EUR, 4% in CNY, and 20% in TRY. Net debt1, as of December 31, 2024, decreased to TRY 9,975 million from TRY 34,367 million as of December 31, 2023, with a net debt to EBITDA ratio of 0.14x. Turkcell Group had a short net FX position of USD 124 million at the end of the year (Please note that this figure takes hedging portfolio and advance payments into account). The short FX position of USD 124 million is in line with our FX neutral definition, which is between -USD 200 million and +USD 200 million. Capital expenditures: Capital expenditures, including non-operational items, were at TRY 54,818 million in FY24. For the full year, operational capital expenditures (excluding license fees) at the Group level were at 22.8% of total revenues. Capital expenditures (TRY million) Year FY232 FY243 Operational Capex 30,940.8 38,000.8 License and Related Costs 5,245.1 26.5 Non-operational Capex (Including IFRS15 & IFRS16) 12,830.8 16,791.2 Total Capex 49,016.7 54,818.5 (1) The net debt calculation includes "financial assets” reported under current and non-current assets. Required reserves held in CBRT balanc- es are also considered in net debt calculation. We believe that these assets are highly liquid and can be easily converted to cash without significant change in value. (2) Including Ukraine operations (3) Excluding Ukraine operations Turkcell Türkiye's subscriber base reached 43.1 million in 2024, with a net increase of 578 thousand. We have achieved 3.7 million net subscriber additions over the past three years thanks to our superior infrastructure, a wide range of solutions tailored to customer preferences, and our pioneering campaigns designed to simplify their lives, as well as the unique customer experience provided and our analytical capabilities. In FY24, our mobile postpaid subscriber base experienced substantial growth, reaching 29.1 million with a remarkable 1.9 million net additions—the highest in 15 years. Accordingly, postpaid subscribers account for 76.0% (71.5%) of our mobile segment as of the end of 2024. The growth in postpaid subscribers is one of the key drivers of mobile ARPU growth, as these customers typically generate higher revenue than prepaid subscribers. Concurrently, our prepaid subscriber base decreased to 9.2 million, primarily driven by the widespread usage of alternative data solutions (e-SIM) and the routine disconnection of inactive prepaid sub- scribers during the quarter, in line with our churn policy. The competitive environment, which intensified in May and peaked in December, drove the MNP market to unprecedented highs. While our mobile churn rate in the fourth quarter of the year exceeded that of the same period last year, the annual churn rate remained stable at 2% throughout the year thanks to our successful subscriber retention strategy. Our mobile ARPU (excluding M2M) rose 10.4% year-on-year in FY24. This performance is primarily attributable to price adjustments, upsell efforts and the expansion of our postpaid subscriber base. On the fixed front, the demand for our high-speed and pure fiber service resulted in 168 thousand subscriber net additions for the full year. The growing interest in high-speed internet packages continued this quarter, with the proportion of residential fiber subscribers opting for 100 Mbps or faster tariffs increasing by 12 percentage points year-over-year, exceeding 41%. Starting in the fourth quarter, we began offering fiber tariffs over the incumbent’s infrastructure in addition to DSL. As of this quarter, we will categorize our fixed broadband subscribers as “Turkcell Fiber” and “Resell Fixed Broadband.” Residential fiber ARPU recorded 13.6% growth on a yearly basis, supported by the expansion of 12-month contracts to 85% of residential fiber customers, higher demand for packages of 100 Mbps and above, and our price adjustments. Average monthly mobile data usage per user rose 7.1% year-on-year to 18.2 GB, with the increasing number and data consumption of 4.5G users in FY24. Accord- ingly, the average mobile data usage of 4.5G users reached 19.2 GB in FY24. By the end of 2024, total smartphone penetration on our network had reached 91%. Ninety-five percent of those smartphones were 4.5G compatible. Summary of Operational Data Year 2023 2024 Change (%) Number of subscribers1 (million) 42.5 43.1 1.4% Mobile Postpaid (million) 27.2 29.1 7.0% Mobile M2M (million) 4.5 5.0 11.1% Mobile Prepaid (million) 10.8 9.2 (14.8%) Turkcell Fiber2 (thousand) 2,286.7 2,454.5 7.3% Resell Fixed Broadband2 (thousand) 803.5 779.0 (3.0%) ADSL (thousand) 760.7 738.2 (3.0%) Cable (thousand) 38.5 35.5 (7.8%) Fiber (thousand) 4.4 5.3 20.5% Superbox (thousand)3 719.9 680.3 (5.5%) IPTV (thousand) 1,409.2 1,462.8 3.8% Churn (%)4 Mobile Churn (%) 2.0% 2.0% - Fixed Churn (%) 1.5% 1.5% - Average mobile data usage per user (GB/user) 17.0 18.2 7.1% Year ARPU (Average Monthly Revenue per User) (TRY) 2023 2024 Change (%) Mobile ARPU, blended 224.7 244.5 8.8% Mobile ARPU, blended (excluding M2M) 250.8 276.8 10.4% Postpaid 262.3 280.2 6.8% Postpaid (excluding M2M) 309.3 334.0 8.0% Prepaid 138.6 147.1 6.1% Fixed Residential ARPU, blended 274.3 310.0 13.0% Residential Fiber ARPU 277.3 315.0 13.6% (1) Including mobile, fixed broadband, IPTV, and wholesale (MVNO&FVNO) subscribers. (2) As of the fourth quarter of 2024, our fixed broadband subscriber reporting has been revised. Turkcell Fiber refers to customers served entirely through our own fiber infrastructure, while Turkcell Resell includes DSL, Cable, and Fiber sales provided through infrastructures of other ISPs. Accordingly, historical subscrib- er figures have been revised to ensure comparability. (3) Superbox subscribers are included in mobile subscribers. (4) Churn figures represent average monthly churn figures for the respective years. Operational Review of Turkcell Türkiye TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 233 232 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Forward Looking Statements 2025 Guidance1; revenue growth target of between 7%-9% data center and cloud revenue growth target of between 32%-34% EBITDA margin target of between 41%-42% operational capex over sales ratio2 target of around 24% (1) Our expectations for 2025 incorporate the effects of inflation accounting under IAS 29. These projections are based on assumptions regarding factors beyond our control, including key macroeconomic indicators such as inflation. Our 2025 expectations are based specifically on an assumed annual inflation rate of 30.5% (year-end). This paragraph contains forward-looking statements that reflect our current estimates and expectations regarding market conditions across all of our businesses. However, there can be no assurance that these forward-looking statements will occur as anticipated. For a discussion of the various factors that could impact the outcome of these forward-looking statements, please refer to our 2023 annual report on Form 20-F filed with the SEC, specifically the risk factors section. (2) Excluding license fees Sectoral and Financial Information Developments in our sector Electronic Communication Sector in Türki̇ ye According to the 3rd Quarterly Market Data Report for 2024, published by the Information and Communication Tech- nologies Authority (ICTA), the regulatory authority for our sector, there are cur- rently 444 operators operating within the Turkish electronic communications sector, and 815 authorisations have been granted to these operators. In the first three quarters of 2024, the to- tal revenues of mobile operators Turkcell İletişim Hizmetleri A.Ş. (Turkcell), Voda- fone Telekomünikasyon A.Ş. (Vodafone), TT Mobil İletişim Hizmetleri A.Ş. (TT Mo- bil) and Türk Telekomünikasyon A.Ş. (Türk Telekom) totalled approximately TRY 220 billion, while the revenue of other opera- tors totalled TRY 62.8 billion. In the same period, total investments made by Turk- cell, Türk Telekom, TT Mobil and Voda- fone amounted to TRY 39.2 billion. Mobile Market As of Q3 2024, the number of mobile sub- scribers in Türkiye was 94.5 million, indi- cating an approximate penetration rate of 110.7% (excluding M2M and the 0-9 years old population: 115%). In Q3 2024, the number of 4.5G subscrib- ers reached 87.5 million, while the num- ber of 3G subscribers was 4.6 million. The combined total of 3G and 4.5G services saw the number of mobile broadband subscribers receiving internet services from mobile computers and mobiles rose to 76.3 million. As of Q3 2024, 76.4% of mobile subscrib- ers were on postpaid tariffs, while 23.6% were on prepaid tariffs. The total number of prepaid and postpaid mobile broad- band subscribers was 15.7 million and 59.3 million, respectively, while the number of M2M subscribers reached approximately 10 million. In the first three quarters of 2024, the number of mobile number porting trans- actions stood at 8.2 million. By September 30, 2024, a total of 185.6 million mobile number porting transactions had been executed. In terms of subscriber numbers, Turkcell, Vodafone and TT Mobil have 41%, 30.5% and 28.6% shares, respectively. In terms of revenues generated from subscribers, Turkcell's market share was 43%, Voda- fone's 31.2% and TT Mobil's 25.7%. The breakdown of mobile subscribers shows that approximately 83.1% are indi- vidual customers and 16.9% are corporate subscribers. The average monthly data usage in mobile broadband was 17.5 GB. In Q3 2024, total mobile voice traffic vol- ume increased by 0.8% compared to the same period of the previous year, reach- ing 83.2 billion minutes. Broadband Internet Market The number of broadband internet sub- scribers increased from around 6 million in 2008 to 96.4 million by the end of Q3 2024, (19.4 million fixed, 77 million mobile broadband subscribers). This represents a 1% increase compared to the same period in the previous year. xDSL sub- scribers reached 10.2 million, while fiber subscribers reached 7.6 million. The total fiber length of operators exceeded 588 thousand km. In the first 3 quarters of 2024, total rev- enues of internet service providers reached TRY 43.9 billion. Average month- ly data usage of fixed broadband in- ternet subscribers reached 279.5 GB. Furthermore, it is notable that approx- imately 67.9% of fixed broadband sub- scribers express a preference for pack- ages offering 16-50 Mbit/s connection speeds. TV Market As of the 3rd quarter of 2024, there are 16 operators authorised to provide Cable Broadcasting Services (CBS). Türksat has 1.84 million cable TV subscribers, while Superonline (TV+) and TTNet (Tivibu), op- erators of IPTV services, have 1,484 thou- sand and 1,019 thousand subscribers, re- spectively. Among the operators authorised to pro- vide satellite platform services, Digital Platform Teknoloji Hizmetleri A.Ş. (Digitürk), Andromeda TV Dijital Platform İşletme- ciliği A.Ş. (DSmart) and TTNET A.Ş. (Tivibu) continue their operations actively. Fixed Voice Market As of the end of the 3rd quarter of 2024, there were 9.2 million fixed voice subscrib- ers in Türkiye, and the penetration rate of this service was approximately 11%. Legal and Regulatory Developments Relevant to Our Sector and Companies Removal of Asymmetry in Mobile Interconnection Charges Following the Board Decision dat- ed June 2021, the ICTA has decided to update the Mobile Call Termination Charges and to completely remove the asymmetry in the charges as of January 1, 2024. In accordance with the Board Decision, Mobile Call Termi- nation Charges were set at 2.39 kr/min for Turkcell as of January 1, 2022 and 2.25 kr/min as of January 1, 2023. As of January 1, 2024, mobile call termination rates were equalised at 2.1 kr/min for all operators, thereby bringing an end to the asymmetric practice in mobile call termination rates, which has been in favour of Turkcell since 2006. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 235 234 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Removal of the Obligation to Set Cost-Based Tariffs for SMS Termination Services In accordance with the Market Analysis published with the Board Decision dated 08.09.2020 and numbered 2020/IKSD/258, the ICTA has decided to remove the obli- gation to be subject to tariff control (cost- based tariff setting) for SMS call termina- tion services as of 01.10.2021. The Board Decision dated 12.12.2021 and numbered 2021/UKETD/390 set the SMS call termination fees of mobile operators at 0.80 Kr/piece as of 01.04.2022, 1.00 Kr/piece as of 01.01.2023 and 1.20 Kr/piece as of 01.01.2024. Updating Fixed Interconnection Charges Following the Board Decision of Decem- ber 14, 2021, ICTA has decided to adopt a single-tier fee structure for Fixed Call Ter- mination Charges as of January 1, 2022, in line with the transition to IP interconnection technology. As of January 1, 2022, the rele- vant rates for Superonline were 2.8 kr/min and 2.2 kr/min, which will increase to 2.8 kr/ min and 2.2 kr/min as of January 1, 2023. As of January 1, 2024, a decision was taken to equalise the termination fees of all opera- tors at 1.47 kr/dk and to eliminate the asym- metry in the sector. Maximum Fee Tariff for Mobile Electronic Communication Services The maximum prices of the services (do- mestic/overseas voice and SMS, name/ title change, line transfer, number change, SIM card change, opening and closing, de- tailed invoice, unknown numbers service, etc.) included in the Maximum Fee Tariff for Mobile Electronic Communication Services published by ICTA are updated every six months. As of 01.04.2024, the fees in the tar- iff were increased by approximately 27.5%. As of 01.10.2024, only the fees for interna- tional services were increased by approx- imately 18%. Instalment Arrangements for Mobile Devices Pursuant to the 'Banking Regulation and Supervision Board Decision No. 10479', pub- lished on the website of the Banking Regula- tion and Supervision Agency on 05.01.2023; —The instalment period for purchases made by credit card without any amount limit for the purchase of mobile phones that are 'refurbished products' provided that they are 'refurbishment centers' or 'authorised dealers' was set as 12 months. With the ‘Banking Regulation and Supervi- sion Board Decision No. 11022’ published on 05.12.2024 on the website of the Banking Regulation and Supervision Agency; —The maturity limit for consumer loans ex- tended for the purchase of mobile phones is set as 12 months for mobile phones with a price of 20,000 Turkish Liras or less and 3 months for mobile phones with a price above 20,000 Turkish Liras; for the pur- chase of mobile phones that are refur- bished products, the maturity limit is set as 12 months for mobile phones with a price of 25,000 Turkish Liras or less and 3 months for mobile phones with a price above 25,000 Turkish Liras. In accordance with the Regulation Amend- ing the Regulation on Principles and Rules to be Applied in Retail Trade, the maturity limit has been set at 3 months for the sale of re- furbished mobile phones priced above TRY 25,000, and at 12 months for devices priced below TRY 25,000. Within the scope of the aforementioned regulation, the maturity limit for sales of mobile phones with a price above TRY 20,000 for devices that are not refurbished products is 3 months, and the maturity limit for sales of mobile phones with a price of TRY 20,000 and below is 12 months. Regulation on M2M Subscriber Notifications Following the Board Decision dated 08.10.2024 and numbered 2024/DK-SYD/397, the ICTA has introduced obligations for op- erators providing mobile electronic commu- nication services. These obligations include ensuring that M2M subscriptions, declared exempt from radio fees, are used only with certain devices by performing IMEI-IMSI matching. The ICTA has also decided that these lines should be closed to general in- ternet access by defining a special access point (APN) for M2M lines. Furthermore, it was decided to immediately suspend the service in the event of any use in violation of Law No. 5809, to pay the radio license and usage fee together with the overdue inter- est from the date of commencement of the improper use, and to complete the IMEI-IM- SI mapping of the existing M2M lines within one year. Earthquake Investigation in Kahramanmaraş A formal investigation was initiated by the ICTA into our Company in the wake of the earthquakes in Kahramanmaraş and Pazarcık on February 6, 2023. As part of this investigation, the audit committee has is- sued an inspection query, including deter- minations of violation. We have submitted our written defences regarding these de- terminations to the ICTA. Subsequently, an oral defence meeting was held on Novem- ber 5, 2024 before the Chairman and Board Members of the ICTA Board. Litigation Processes Regarding the Rejection of Domestic Goods Obligation Exemption Requests and ICTA's R&D SME Audit The exemption applications made by our Company for the period 27.10.2015-26.10.2019 and the exemption application for the av- erage of the first four-year period covering the years 2015-2019 regarding the domes- tic product investment obligation included in the IMT Authorisation Document were rejected. The application made in 2022 to revoke the decisions rejecting the exemp- tion request regarding the obligation to use domestic goods for the 2019-2020 and 2020-2021 investment periods was implicitly rejected. Furthermore, as a consequence of the audit conducted by ICTA for the 2013- 2017 period, administrative sanctions have been imposed on our Company. Our Com- pany has initiated legal proceedings to cancel the aforementioned Board Decisions and related transactions, and the legal pro- cess regarding most of the filed lawsuits is ongoing. Furthermore, for the periods 27.10.2018- 26.10.2019, 27.10.2019-26.10.2020 and 27.10.2020-26.10.2021, the ICTA is conducting an audit to ensure that our obligations re- garding R&D, SME and/or domestic goods investment obligations, criteria for R&D Cen- ters and R&D Projects and criteria for SMEs are being met. Litigation Process Regarding the Amendment to the Procedures and Principles Regarding the Examination and Audit of R&D Investments Following the decision of the Information and Communication Technologies Au- thority dated 16.11.2021 and numbered 2021/ DK-YED/361, the 'Procedures and Principles Regarding the Examination and Inspection of Hardware and Software Investments to be Used in Operators' Networks' have been updated. The new regulation includes issues such as not exceeding 50% of the total investments per supplier in an invest- ment period, informing the ICTA before the investments to be made in critical network elements and complying with a possible no- tification, defining the national product, and introducing obligations regarding R&D proj- ects carried out in R&D centers. Our Compa- ny's application for the revocation of the rel- evant Board Decision in 2022 was rejected and a lawsuit was filed by our Company for the cancellation of the relevant transactions and the legal process is ongoing. The lawsuit filed by TT Mobil against ICTA regarding the 'Multiplying Campaign' administrative fine imposed on our Company, in which our Company is an intervener The administrative fine of TRY 25,245,561.8 imposed by the 1st, 2nd, 3rd and 4th articles of the ICTA's decision dated 16.03.2021 and numbered 2021/LIK-THD/76 due to our Com- pany's application under the name of 'Multi- plying Campaign' was paid by our Compa- ny with a discount (TRY 18,934,173.9). During the process, an application was made by TT Mobil requesting that the amount of the administrative fine imposed by the ICTA on our Company be increased and that the decision be amended to include a refund to subscribers. Following the rejection of this request, a lawsuit was filed against the ICTA for the cancellation of the said rejec- tion. Our Company is an intervener in this lawsuit alongside ICTA. The legal process is ongoing. Amendments to the Zoning Law Following the decision of the Constitution- al Court on October 18, 2023, the approval process for above-building stations, which account for almost 70% of the infrastructure, was terminated and certain exemptions were revoked (with the exception of the 2004-2009 period). To address this, the Zoning Law was amended by Articles 8 and 10 of the 'Law on the Amendment of the Village Law and Certain Laws', and the law came into effect after its publication in the Official Gazette dated 12.12.2024 and numbered 32750. These amendments, which fall under Additional Article 9 and Provisional Article 24 of the Zoning Law, have led to a reorganization of the article on stations on buildings, in line with the Constitutional Court's decision. It is estimated that the amendments and addi- tions will facilitate the operational process- es for infrastructure installations. Corporate Law Developments Concerning Our Company and its Subsidiaries The Establishment of TDC Veri Hizmetleri A.Ş. and Artel Bilişim Servisleri A.Ş. TDC Veri Hizmetleri A.Ş. was established on July 11, 2024 with an initial capital of TRY 250,000 to operate in the fields of data pro- cessing, data analysis, data storage, server hosting, server rental, cloud solutions and computer programming. Artel Bilişim Ser- visleri A.Ş. was established on August 16, 2024 with an initial capital of TRY 250,000 to research, develop, produce and operate all kinds of software, hardware and other products for telecommunication, communi- cation and informatics or for general pur- poses. Turkcell Dijital İş Servisleri A.Ş.'s acquisition of 49% of Şahinkaya Özel Eği̇ ti̇ m Kurumları A.Ş.'s shares in DETEK Şahinkaya Özel Eği̇ti̇m Kurumları A.Ş.'s 49% stake in DETEK was acquired by Turkcell Di- jital İş Servisleri A.Ş. for TRY 38,000,000 + VAT. The notification regarding the sole share- holding of Turkcell Dijital İş Servisleri A.Ş. was registered on August 2, 2024. Turkcell Ödeme ve Elektronik Para Hizmetleri A.Ş.'s Acquisition of 33.3% of PTT's Shares in Sofra Posta ve Telgraf Teşkilatı A.Ş.'s 33.3% share in Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. was acquired by Turkcell Ödeme ve Elek- tronik Para Hizmetleri A.Ş. for a consideration of TRY 5.196.000. Share Transfer of Lifecell LLC, Ukrtower LLC and Global Bilgi LLC On September 9, 2024, all shares of our Com- pany's subsidiaries, Lifecell LLC, Global Bil- gi LLC and Ukrtower LLC, were transferred to DVL Telecom in consideration of USD 524,300,000, together with all rights and ob- ligations in accordance with the share trans- fer agreement signed on December 29, 2023. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 237 236 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Significant Developments After the Activity Period 13.01.2025 Announcement Regarding Investor Roadshow Plan for Debt Instrument Our Company plans to issue debt instru- ments, including sustainable and conven- tional bonds, under the U.S. legislation "Rule 144A" and non-U.S. legislation "Regulation S" formats, to be sold to qualified investors out- side Türkiye. In this context, investor meetings are scheduled to be held in the United King- dom and the United States of America com- mencing on January 13, 2025, organized by the authorized banks and with the partici- pation of our Company's executives. The final decision regarding the issuance of bonds, including the issue amount and terms, will be determined based on market developments following the meetings. The debt instruments are planned to be listed on the Irish Stock Exchange (Euronext Dublin) and traded on its Global Exchange Market (GEM). The debt instruments are expected to be assigned a 'BB' credit rating from S&P Global and a 'BB-' credit rating from Fitch Ratings. 16.01.2025 Announcement Regarding the Renewal of Directors & Officers Liability Insurance Pursuant to Article 4.2.8 of the annex of the Capital Markets Board's Corporate Gover- nance Communiqué; the existing "Directors & Officers Liability Insurance" for the members of our Company's Board of Directors, senior executives and senior executives of group companies has been renewed to be valid until October 1, 2025. The total liability limit of the insurance exceeds 25% of the Compa- ny's capital. 16.01.2025 Announcement Regarding Eurobond Issuance-Pricing With reference to our Company's an- nouncement dated January 13, 2025, the book-building process for the issuance of bonds, planned to be sold by our Company under 144A/Reg S regulations and expected to be listed on the Irish Stock Exchange (Eu- ronext Dublin/Global Exchange Market), has been completed. The nominal value of the conventional bond has been determined as USD 500 million, with a coupon rate of 7.45% and a maturity of 5 years, while the nominal value of the sustainable bond has been de- termined as USD 500 million, with a coupon rate of 7.65% and a maturity of 7 years. 21.01.2025 Announcement Regarding Merger Through Acquisition in Our Subsidiaries With reference to our announcement dated August 5, 2024, the merger process between our subsidiaries, through the acquisition of Dijital Eğitim Teknolojileri A.Ş. ("Dijital Eğitim") by Turkcell Dijital İş Servisleri A.Ş. ("Turkcell Dijital"), has been completed and registered. 24.01.2025 Announcement Regarding Completion of Debt Instrument Issuance The sale process of the sustainable bond issuance of our Company with a nominal amount of USD 500 million, 7-year maturi- ty, a redemption date of January 24, 2032, a fixed annual coupon rate of 7.65%, and a sales price of 100% of the nominal value, to qualified investors abroad was complet- ed on January 24, 2025. The subscription agreement for the issuance was signed on January 22, 2025. The sustainable bond is listed on the Irish Stock Exchange (Euronext Dublin). The proceeds were transferred to our Company's accounts. 27.01.2025 Announcement Regarding the Acquisition of Lifecell Bulut and the Liquidation of Paycell LLC It has been resolved that our Company's wholly owned subsidiary, Lifecell Dijital Ser- vis ve Çözümler A.Ş., will merge with Lifecell Bulut Çözümleri A.Ş. ("Lifecell Bulut") through a simplified merger, acquiring all of its assets and liabilities as a whole. Additionally, our wholly owned subsidiary, Paycell LLC, which is incorporated in Ukraine, will be liquidated. 30.01.2025 Announcement Regarding the Financing Bond Issuance Within the scope of the issue limit of TRY 8,000,000,000 approved by the Capital Markets Board; the book building of the fi- nancing bond issuance of our Company with a maturity date of 09.05.2025, an annual sim- ple interest of 43.50% with a nominal amount of TRY 2,000,000,000 to qualified investors within Türkiye, without a public placement was completed, and the securities will be transferred to the investor accounts on Jan- uary 30, 2025. The issuance was advised by Ziraat Yatırım Menkul Değerler A.Ş. 30.01.2025 Announcement Regarding the Redemption of the Bond with ISIN Code TRFTCEL12519 Within the scope of our Company's an- nouncement dated October 10, 2024, the redemption payment of the financing bond with ISIN code TRFTCEL12519 with a nomi- nal amount of TRY 1,870,000,000, a maturity of 112 days and an annual simple interest of 49.50% was made on January 30, 2025. 07.02.2025 Announcement Regarding the Capital Increase in BeST The capital of our Company's subsidiary, CJSC Belarusian Telecommunications Net- work ("BeST"), has been increased by BYN 40,906,138.50 from BYN 1,322,959,530 to BYN 1,363,865,668.50. Our Company's pre-emp- tion rights with respect to the capital in- crease have been fully paid. 27.02.2025 Announcement Regarding the Amendment of Articles of Association Our Company's Board of Directors has de- cided that necessary actions will be taken to obtain the approval of the Capital Mar- kets Board and the Ministry of Trade, for amendment of the Articles of Association, in accordance with the principles of Capital Markets Law, the Turkish Commercial Code, and related legislation. Amendment of Arti- cles of Association is subject to approval of the General Assembly. 04.03.2025 Announcement Regarding Kıbrıs Telekom Capital Increase The capital of our Company's whol- ly-owned subsidiary, Kıbrıs Mobile Tele- komünikasyon Limited ("Kıbrıs Telekom"), has been increased by TRY 100,000,000 to TRY 422,724,863. Our Company's pre-emption rights with respect to the capital increase is fully paid. TURKCELL ILETISIM HIZMETLERI AS CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) Notes 31 December 2024 31 December 2023 Assets Property, plant and equipment 12 104,625,744 96,228,806 Right-of-use assets 16 10,173,872 8,859,214 Intangible assets 13 81,872,362 84,478,038 Investment properties 15 187,334 205,545 Trade receivables 19 328,034 470,476 Receivables from financial services 20 367,149 856,960 Contract assets 21 165,004 146,228 Financial assets at fair value through other comprehensive income 24 11,852,172 153,075 Financial assets at fair value through profit or loss 24 5,961,731 781,797 Deferred tax assets 18 2,537,878 1,629,674 Investments in equity accounted investees 40 5,294,025 8,474,482 Other non-current assets 17 7,217,678 6,396,589 Total non-current assets 230,582,983 208,680,884 Inventories 22 674,611 780,377 Trade receivables 19 16,463,247 15,774,312 Due from related parties 246,529 247,426 Receivables from financial services 20 7,142,345 8,434,770 Contract assets 21 5,200,448 4,608,194 Derivative financial instruments 34 2,043,112 2,952,207 Financial assets at amortized cost 24 1,065,899 - Financial assets at fair value through other comprehensive income 24 2,241,429 - Financial assets at fair value through profit or loss 24 3,573,688 12,806,149 Cash and cash equivalents 23 68,934,333 72,158,656 Other current assets 17 6,106,995 5,595,793 Subtotal 113,692,636 123,357,884 Assets held for sale 3 - 24,697,101 Total current assets 113,692,636 148,054,985 Total assets 344,275,619 356,735,869 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 239 238 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) Notes 31 December 2024 31 December 2023 Equity Share capital 25 46,684,221 46,684,221 Share premium 41,937 11,093 Treasury shares 25 (1,328,153) (1,070,296) Reserves 2,210,127 8,049,087 Remeasurements of defined benefit plan (3,088,502) (2,955,739) Retained earnings 142,446,900 125,781,534 Total equity attributable to equity holders of Turkcell Iletisim Hizmetleri AS (“the Company”) 186,966,530 176,499,900 Non-controlling interests - (18,703) Total equity 186,966,530 176,481,197 Liabilities Borrowings 28 52,435,164 83,662,659 Trade and other payables 168,819 1,603,615 Due to related parties 253 55,350 Employee benefit obligations 29 3,032,078 2,963,122 Provisions 32 1,918,775 1,991,611 Deferred tax liabilities 18 5,249,745 3,300,735 Contract liabilities 31 2,152,853 1,723,399 Other non-current liabilities 27 1,517,404 1,607,611 Total non-current liabilities 66,475,091 96,908,102 Borrowings 28 51,905,095 37,737,089 Current tax liabilities 1,120,707 308,067 Trade and other payables 33 29,672,414 29,751,011 Due to related parties 959,896 797,619 Deferred revenue 30 507,561 358,064 Provisions 32 4,650,358 2,852,265 Contract liabilities 31 1,522,500 1,894,999 Derivative financial instruments 34 495,467 511,635 Subtotal 90,833,998 74,210,749 Liabilities directly associated with the assets held for sale 3 - 9,135,821 Total current liabilities 90,833,998 83,346,570 Total liabilities 157,309,089 180,254,672 Total equity and liabilities 344,275,619 356,735,869 TURKCELL ILETISIM HIZMETLERI AS CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) Represented Represented Notes 31 December 2024 31 December 2023 31 December 2022 Revenue 6 158,854,007 148,656,399 130,238,756 Revenue from financial services 6 7,817,357 5,996,632 4,736,403 Total revenue 166,671,364 154,653,031 134,975,159 Cost of revenue 11 (120,434,191) (118,737,471) (116,023,760) Cost of revenue from financial services 11 (5,108,423) (3,144,251) (1,906,161) Total cost of revenue (125,542,614) (121,881,722) (117,929,921) Gross profit 38,419,816 29,918,928 14,214,996 Gross profit from financial services 2,708,934 2,852,381 2,830,242 Total gross profit 41,128,750 32,771,309 17,045,238 Other income 7 251,419 1,274,549 503,315 Selling and marketing expenses 11 (10,948,678) (8,204,102) (6,631,018) Administrative expenses 11 (6,919,862) (4,951,496) (3,724,122) Net impairment losses on financial and contract assets 11 (1,021,230) (1,455,575) (898,004) Other expenses 7 (2,577,904) (8,154,995) (2,031,367) Operating profit 19,912,495 11,279,690 4,264,042 Finance income 9 10,378,433 18,283,669 5,714,055 Finance costs 9 (17,025,890) (28,777,024) (17,252,049) Monetary gain (loss) 9 5,850,537 5,510,752 11,214,047 Net finance costs (796,920) (4,982,603) (323,947) Share of (loss)/ profit of equity accounted investees 40 (3,162,643) 2,202,029 753,977 Profit before income tax 15,952,932 8,499,116 4,694,072 Income tax (expense)/ benefit 10 (4,866,033) 6,750,994 4,021,332 Profit from continuing operations 11,086,899 15,250,110 8,715,404 Profit from discontinued operations 3 12,427,963 2,843,793 1,216,203 Profit for the year 23,514,862 18,093,903 9,931,607 Profit for the year is attributable to: Owners of the Company 23,523,425 18,125,305 9,933,888 Non-controlling interests (8,563) (31,402) (2,281) Total 23,514,862 18,093,903 9,931,607 Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) 26 10.79 8.31 4.55 Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) 26 5.09 7.00 3.99 Basic and diluted earnings per share for profit from discontinued operations attributable to owners of the Company (in full TL) 26 5.70 1.30 0.56 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 241 240 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME For the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) Notes 31 December 2024 31 December 2023 31 December 2022 Profit for the period 23,514,862 18,093,903 9,931,607 Items that will not be reclassified to profit or loss: Remeasurements of defined termination benefit 29 (176,940) (216,218) (2,634,730) Income tax relating to remeasurements of defined termination benefit 44,177 219,713 525,362 (132,763) 3,495 (2,109,368) Other comprehensive income/(expense): Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations (7,293,767) 4,129,565 (1,080,920) Fair value reserve 100,930 215,993 (176,141) Cash flow hedges (514,553) 2,271,364 3,301,693 Cost of hedging reserve 1,511,265 (562,159) (3,133,985) Hedges of net investments in foreign operations 1,632,047 (3,382,331) (752,112) Income tax relating to these items 10 (688,664) 1,421,293 (96,396) - Income tax relating to exchange differences - (708,985) (1,280,907) - Income tax relating to cash flow hedges 34 122,397 36,819 (129,706) - Income tax relating to cost of hedging reserve (377,816) 395,647 626,797 - Income tax relating to fair value reserve (25,233) (7,961) 51,959 - Income tax relating to hedges of net investments (408,012) 1,705,773 635,461 (5,252,742) 4,093,725 (1,937,861) Other comprehensive income/(loss) for the year, net of income tax (5,385,505) 4,097,220 (4,047,229) Total comprehensive income for the year 18,129,357 22,191,123 5,884,378 Total comprehensive income for the year is attributable to: Owners of the Company 18,137,920 22,222,525 5,886,659 Non-controlling interests (8,563) (31,402) (2,281) Total 18,129,357 22,191,123 5,884,378 TURKCELL ILETISIM HIZMETLERI AS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Share capital Treasury shares Additional paid-in capital Share premium Legal reserves (*) Fair value reserve (*) Hedges of net investments in foreign operations (*) Hedging reserve (*) Cost of hedging reserve (*) Foreign currency translation reserve (*) Remeasurement of defined benefit plan Retained earnings Reserve of disposal group held for sale Total Non-controlling interests Total equi Balance at 1 January 2022 46,684,221 (1,052,713) 137,360 11,093 34,182,534 (213,810) (6,198,667) 620,014 (8,028,252) (15,977,840) (849,866) 106,188,621 - 155,502,695 (801) 155,501,89 Profit/ (loss) for the year - - - - - - - - - - - 9,933,888 - 9,933,888 (2,281) 9,931,60 Other comprehensive income, net of income tax - - - - - (124,182) (116,651) 3,171,987 (2,507,188) (2,361,827) (2,109,368) - - (4,047,229) - (4,047,22 Total comprehensive income - - - - - (124,182) (116,651) 3,171,987 (2,507,188) (2,361,827) (2,109,368) 9,933,888 - 5,886,659 (2,281) 5,884,37 Transfers to legal reserves - - - - 1,023,919 - - - - - - (1,023,919) - - - Dividend paid (Note 25) - 26,515 - - - - - - - - - (3,452,867) - (3,426,352) - (3,426,35 Other - - (137,360) - - - - - - - - 83,618 - (53,742) 12,353 (41,38 Balance at 31 December 2022 46,684,221 (1,026,198) - 11,093 35,206,453 (337,992) (6,315,318) 3,792,001 (10,535,440) (18,339,667) (2,959,234) 111,729,341 - 157,909,260 9,271 157,918,53 Balance at 1 January 2023 46,684,221 (1,026,198) - 11,093 35,206,453 (337,992) (6,315,318) 3,792,001 (10,535,440) (18,339,667) (2,959,234) 111,729,341 - 157,909,260 9,271 157,918,53 Profit/ (loss) for the year - - - - - - - 18,125,305 18,125,305 (31,402) 18,093,90 Other comprehensive income, net of income tax - - - - - 208,032 (1,676,558) 2,308,183 (166,512) 3,420,580 3,495 - 4,097,220 - 4,097,22 Total comprehensive income - - - - - 208,032 (1,676,558) 2,308,183 (166,512) 3,420,580 3,495 18,125,305 - 22,222,525 (31,402) 22,191,12 Transfers to legal reserves - - - - 485,325 - - - - - - (485,325) - - - Acquisition of treasury shares (-) - (73,279) - - - - - - - - - - - (73,279) (73,27 Acquisition of subsidiary - - - - - - - - - - - - - - 3,428 3,42 Dividend paid (Note 25) - 29,181 - - - - - - - - - (3,587,787) - (3,558,606) - (3,558,60 Discontinued operations (Note 41) - - - - - - - - (8,865,132) - 8,865,132 - - Balance at 31 December 2023 46,684,221 (1,070,296) - 11,093 35,691,778 (129,960) (7,991,876) 6,100,184 (10,701,952) (23,784,219) (2,955,739) 125,781,534 8,865,132 176,499,900 (18,703) 176,481,19 Balance at 1 January 2024 46,684,221 (1,070,296) - 11,093 35,691,778 (129,960) (7,991,876) 6,100,184 (10,701,952) (23,784,219) (2,955,739) 125,781,534 8,865,132 176,499,900 (18,703) 176,481,19 Profit/ (loss) for the year - - - - - - 23,523,425 - 23,523,425 (8,563) 23,514,86 Other comprehensive income, net of income tax - - - - - 75,697 1,224,035 (392,156) 1,133,449 1,571,365 (132,763) - (8,865,132) (5,385,505) - (5,385,50 Total comprehensive income - - - - - 75,697 1,224,035 (392,156) 1,133,449 1,571,365 (132,763) 23,523,425 (8,865,132) 18,137,920 (8,563) 18,129,35 Transfers to legal reserves - - - - 844,008 - - - - - - (844,008) - - - Dividend paid (Note 25) - 70,139 - - (1,430,226) - - - - - - (5,954,534) - (7,314,621) - (7,314,62 Acquisiton of treasury shares - (327,996) - - - - - - - - - - (327,996) - (327,99 Acquisition of subsidiary - - - 30,844 - - - - - - - - - 30,844 - 30,84 Transactions with non controlling interests - - - - - - - - - - (59,517) - (59,517) 21,517 (38,00 Other - - - - - - - - - - - - - - 5,749 5,74 Balance at 31 December 2024 46,684,221 (1,328,153) - 41,937 35,105,560 (54,263) (6,767,841) 5,708,028 (9,568,503) (22,212,854) (3,088,502) 142,446,900 - 186,966,530 - 186,966,53 (*) Included in Reserves in the consolidated statement of financial position. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 243 242 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) Note 31 December 2024 31 December 2023 31 December 2022 Cash flows from operating activities: Profit for the year 11,086,899 15,250,110 8,715,404 Discontinued operations 12,427,963 2,843,793 1,216,203 Profit for the year including discontinued operations 23,514,862 18,093,903 9,931,607 Adjustments for: Depreciation and impairment of property, plant and equipment and investment properties 12-15 19,176,624 17,284,249 21,706,362 Amortization of intangible assets and right of use assets 13-16 28,249,539 31,035,204 29,107,757 Impairment on property, plant and equipment and intangible asset 12-13 136,867 (2,052) 565,410 Net finance expense 5,213,120 3,905,964 4,944,842 Fair value adjustments to derivatives 3,057,354 (1,897,127) 3,504,162 Income tax expense 10 5,186,490 (6,329,447) (3,842,745) Gain on sale of property, plant and equipment 34,857 23,070 51,257 Effects of exchange rate changes and inflation adjustments (1,958,557) 15,117,256 8,350,002 Provisions 7,377,812 6,784,907 3,980,635 Share of (profit)/loss of equity accounted investees 3,162,643 (2,202,029) (753,976) Fair value adjustments to financial assets through profit or loss (1,706,465) (6,648,585) (2,510,354) Gain on sale of subsidiary 3 (8,821,192) - - Non-cash other adjustments 211,147 5,359 286,985 82,835,101 75,170,672 75,321,944 Change in operating assets/liabilities Change in trade receivables (1,105,560) (201,391) 1,004,000 Change in due from related parties 1,555 (56,796) 502,969 Change in receivables from financial services 1,647,048 (826,023) (5,143) Change in inventories 145,465 (142,301) 376,631 Change in other current assets (581,400) (1,795,133) (208,825) Change in other non-current assets (71,662) 1,134,781 (155,006) Change in due to related parties 103,028 (559,642) (460,587) Change in trade and other payables (231,561) 1,351,307 (2,539,207) Change in other non-current liabilities (137,069) 61,101 62,893 Change in employee benefit obligations (408,583) (814,329) (160,647) Change in contract asset (618,365) (88,584) 229,739 Change in deferred revenue 233,352 187,671 (201,680) Change in contract liability (73,640) 456,641 (89,552) Changes in other working capital (2,578,760) (2,206,974) (2,123,416) Cash generated from operations 79,158,949 71,671,000 71,554,113 Interest paid (13,750,356) (10,620,700) (8,580,901) Income tax paid (2,151,453) (813,328) (1,928,242) Net cash inflow from operating activities 63,257,140 60,236,972 61,044,970 Cash flows from investing activities: Acquisition of property, plant and equipment 12 (30,698,851) (20,525,914) (22,207,092) Acquisition of intangible assets 13 (20,230,939) (22,071,268) (16,102,219) Proceeds from sale of property, plant and equipment 1,908,099 488,559 1,675,784 Payment for acquisition of subsidiary, net of cash acquired 30,844 - - Contribution of increase of share capital in joint ventures/associates (68) (784,491) (1,464,404) Cash inflows from sale of shares or borrowing instruments of other enterprises or funds 38,699,081 22,100,620 3,115,854 Cash outflows from purchase of shares or borrowing instruments of other enterprises or funds (60,178,590) (23,267,140) (5,140,818) Cash inflows financial assets at fair value through profit or loss 15,311,139 20,275,204 (2,299) Cash outflows financial assets at fair value through profit or loss (6,712,350) (14,809,730) (8,897,255) Change in other cash advances given (703,013) - - Proceeds from disposal of subsidiary, net of cash disposed 3 13,719,342 - - Interest received 11,755,169 8,410,644 5,755,791 Net cash outflow from investing activities (37,100,137) (30,183,516) (45,785,494) Cash flows from financing activities: Proceeds from derivative instruments 41 5,417,456 11,188,868 8,607,172 Repayments of derivative instruments 41 (5,791,757) (6,867,708) (7,601,168) Proceeds from issues of loans and borrowings 51,431,455 90,510,753 76,721,840 Proceeds from issues of bonds 14,870,998 11,296,562 6,457,040 Repayments of borrowings (47,027,783) (79,106,241) (64,470,101) Transactions with non controlling interests (38,000) - - Repayments of bonds (15,280,501) (7,636,411) (5,146,248) Dividends paid to shareholders 25 (7,314,621) (3,587,782) (3,452,867) Dividends paid to non-controlling interest in subsidiaries (327,996) (73,279) - Payments of lease liabilities (5,723,476) (5,951,279) (6,223,564) Net cash (outflow)/inflow from financing activities (9,784,225) 9,773,483 4,892,104 Net increase in cash and cash equivalents 16,372,778 39,826,939 20,151,580 Cash and cash equivalents at 1 January 77,711,693 61,710,669 72,765,126 Effects of exchange rate changes on cash and cash equivalents and inflation adjustment (25,430,408) (23,825,915) (31,206,037) Cash and cash equivalents at 31 December 23 68,654,063 77,711,693 61,710,669 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) Notes to the consolidated financial statements Page 1. Reporting entity 8 2. Basis of preparation and summary of material accounting policies 10 3. Discontinued operations 42 4. Financial risk management 44 5. Segment information 47 6. Revenue 50 7. Other income and expense 52 8. Employee benefit expenses 52 9. Finance income and costs 53 10. Income tax expense 54 11. Expenses by nature 57 12. Property, plant and equipment 59 13. Intangible assets 61 14. Impairment of non-financial assets 63 15. Investment properties 64 16. Right-of-use assets 66 17. Other assets 67 18. Deferred tax assets and liabilities 67 19. Trade receivables 68 20. Receivables from financial services 69 21. Contract assets 69 22. Inventories 69 23. Cash and cash equivalents 70 24. Financial assets 71 25. Equity 74 26. Earnings per share 75 27. Other non-current liabilities 76 28. Loans and borrowings 76 29. Employee benefits 78 30. Deferred revenue 79 31. Contract liabilities 79 32. Provisions 79 33. Trade and other payables 81 34. Derivative financial instruments 81 35. Financial instruments 88 36. Guarantees and purchase obligations 98 37. Commitments and Contingencies 98 38. Related parties 103 39. Subsidiaries 108 40. Investments accounted for using the equity method 109 41. Cash flow information 110 42. Subsequent events 110 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 245 244 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 1. Reporting entity Turkcell Iletisim Hizmetleri Anonim Sirketi (the “Company” or “Turkcell”) was incorporated in Turkiye on 5 October 1993 and commenced its operations in 1994. The address of the Company’s registered office is Maltepe Aydinevler Mahallesi Inonu Caddesi No: 20, Kucukyali Ofispark/Istanbul. It is engaged in establishing and operating a Global System for Mobile Communications (“GSM”) network in Turkiye and regional states. In April 1998, the Company signed a license agreement (the “2G License”) with the Ministry of Transport and Infrastructure of Turkiye (the “Turkish Ministry”), under which it was granted a 25-year GSM license in exchange for a license fee of USD 500,000. The License permits the Company to operate as a stand-alone GSM operator and releases it from some of the operating constraints in the Revenue Sharing Agreement, which was in effect prior to the 2G License. Under 2G license, the Company pays in cash the Undersecretariat of the Treasury (the “Turkish Treasury”) a monthly tax levy, namely a 'treasury share' equal to 15% of the Company's gross revenue from Turkish GSM operations. The Company continues to build and operate its GSM network and is authorized to, among other things, set its own tariffs within certain limits, charge peak and off-peak rates, offer a variety of service and pricing packages, issue invoices directly to subscribers, collect payments and deal directly with subscribers. Following the 3G tender held by the Information Technologies and Communications Authority (“ICTA”) regarding the authorization for providing IMT-2000/UMTS services and infrastructure, the Company has been granted the A-Type license (the “3G License”) providing the widest frequency band, at a consideration of EUR 358,000 (excluding Value Added Tax (“VAT”)). Payment of the 3G license was made in cash, following the necessary approvals, on 30 April 2009. On 7 April 2023, the Company and ICTA agreed for the extension the 2G License (which was valid until 27 April 2023). With this extension, 2G License validity has been extended to 30 April 2029 for a consideration of EUR 120 million (plus EUR 21.6 million of value-added taxes). The initial payment which includes the down payment for the extension fee and total amount of value-added taxes, amounting to EUR 81.6 million has been paid in Turkish Lira at the amount of TRY 1.7 billion during 2023. On April 2024, approximately half of the remaining installments amounting to EUR 31.1 million have been paid in Turkish Lira at the amount of TRY 1.1 billion. The remaining amount will be paid within a year. On 26 August 2015, “Authorization Tender on IMT Services and Infrastructure” publicly known as “4.5G license” tender, was held by the ICTA and the Company was awarded with a total frequency band of 172.4 MHz for 13 years. The tender price is EUR 1,623,460 (excluding VAT of 18%). IMT authorization period expires on 30 April 2029 and operators were able to commence service delivery for 4.5G starting from 1 April 2016. 2x1.4 MHz frequency band in 900MHz spectrum and 2 units of 2x5 MHz frequency bands in 2100 MHz spectrum were commenced on 1 December 2015, while remaining packages were commenced on 1 April 2016. The Company is obliged to pay the ICTA a monthly treasury shares equal to 90% of 15% of gross revenue and 10% is paid for a universal service fund. In addition, the Company pays annual contributions in an amount equal to 0.35% of net revenue to the ICTA’s expenses and 5% of net revenue to ICTA as a frequency fee (TRx). TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 1. Reporting entity (continued) As of 31 December 2024, the capital shares and voting rights of TVF Bilgi Teknolojileri Iletisim Hizmetleri Yatırım Sanayi ve Ticaret Anonim Sirketi (“TVF BTIH”) and IMTIS Holdings S.a r l. (“IMTIS Holdings”) in the Company are 26.2% and 19.8%, respectively since 22 October 2020. The proportion of the Company’s shares that are traded in domestic and foreign stock exchanges are 53.95% (Note 25). The Group’s immediate and ultimate parents are TVF BTIH, wholly owned by Turkiye Varlik Fonu (“TVF”), as of 31 December 2024. TVF has been established with the Law No. 6741 and published in the Official Gazette dated 26 August 2016. 15% of the total issued shares of Turkcell, owned by TVF BTIH, have been re-classified as a separate class of Group A Shares (the “Group A Shares”); (i) A nomination privilege has been created on the Group A Shares, allowing the holders thereof to nominate four candidates for appointment of five members of the board of directors of the Company; a voting privilege has been created on the Group A Shares, allowing the holders thereof to cast six votes for each Group A Share in respect of the appointment of a. five members of the board of directors of the Company, and b. the chairman of the presiding committee of the general assembly of shareholders; (ii) All shareholders of the Company (including the holders of Group A Shares) are entitled to cast one vote per share on all other matters submitted to a vote of Turkcell’s shareholders, including the appointment of the residual four members of the board of directors of Turkcell (including independent ones); (iii) The chairman of the board of directors shall be elected among the members of the board of directors elected through the exercise of the privileges granted to Group A Shares; (iv) The meeting quorum requirement of the board of directors requires five members constituting the majority of full number of its members, and the decision quorum requires the affirmative vote of at least five members present in the meeting; and (v) So long as the above-mentioned privileges are in effect, unlimited authority to represent and bind Turkcell regulated under Article 370 of Turkish Commercial Code shall be exercised by two members of the board of directors of the Company, including at least one member of the board of directors of the Company appointed through the exercise of the said privileges by the holders of Group A Shares. The Company’s board of directors consists of a total of nine non-executive members including three independent members as of 31 December 2024. The consolidated financial statements of the Company as at and for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associate and a joint venture. Subsidiaries of the Company, their locations and their nature of operations are disclosed in Note 39. The Company’s and each of its subsidiaries’, associate’s and joint venture’s financial statements are prepared as at and for the year ended 31 December 2024. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 247 246 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies This note provides a list of the material accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already been disclosed in the other notes below. These policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial statements are for the Group consisting of the Company and its subsidiaries and the Group’s interest in an associate and a joint venture. The accompanying consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS as issued by the IASB. The financial statements have been prepared on a historical cost basis, except for the following measured at fair value: - Derivative financial instruments, - Financial asset at fair value through profit or loss and other comprehensive income. (a) Compliance with IFRS The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRICs”) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). The accounting policies, presentation and methods of computation are consistent with those of the previous financial year and corresponding reporting period, unless otherwise stated. The General Assembly has the power to amend and reissue the financial statements. The consolidated financial statements as at and for the year ended 31 December 2024 were authorized for issue by the Board of Directors on 27 February 2025. (b) Restatement of financial statements during the hyperinflationary periods The financial statements of the Company and those of the subsidiaries, associates and joint ventures located in Turkiye and Turkish Republic of Northern Cyprus for the year ended 31 December 2024 were restated for the changes in the general purchasing power of Turkish Lira, which is their functional currency, based on International Accounting Standard No. 29 (“IAS 29”) “Financial Reporting in Hyperinflationary Economies”. IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and that corresponding figures for previous periods be restated in the same terms. One characteristic that necessitates the application of IAS 29 is a cumulative three-year inflation rate approaching or exceeding 100%. Cumulative three-year inflation rate in Turkiye reached 290.8% as at 31 December 2024, based on the Turkish nation-wide Consumer Price Index (“CPI”) announced by the Turkish Statistical Institute (“TSI”). However, IAS 29 does not establish the rate of 100% as an absolute rate at which hyperinflation is deemed to arise. It is a matter of judgment when restatement of financial statements in accordance with IAS 29 becomes necessary. Moreover, hyperinflation is also indicated by characteristics of the economic environment of a country. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (b) Restatement of financial statements during the hyperinflationary periods (continued) The financial statements of the Company and those of the subsidiaries, associates and joint ventures located in Turkiye and Turkish Republic of Northern Cyprus for the year ended 31 December 2024 were restated for the changes in the general purchasing power of Turkish Lira, which is their functional currency, based on International Accounting Standard No. 29 (“IAS 29”) “Financial Reporting in Hyperinflationary Economies”. IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and that corresponding figures for previous periods be restated in the same terms. The table below shows the evolution of CPI in the last three years and as of 31 December 2024: 2024 2023 2022 2021 Annual Index 2,684.55 1,859.38 1,128.45 686.95 Average Index 2,360.03 1,488.91 967.71 561.61 Yearly Inflation 44.4% 64.8% 64.3% 36.1% Cumulative Inflation (last three years) 290.8% 268.3% 156.2% 74.4% In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. The gain or loss on the net monetary position is included in the statement of profit or loss as monetary gain (loss) item. The Company restated all the non-monetary items in order to reflect the impact of the inflation restatement reporting in terms of the measuring unit current as of 31 December 2024. Consequently, the main items restated were Property, Plant and Equipment, Intangible assets, Right-of-Use Assets, Inventories Investments in Equity Accounted Associate and Joint Venture and the Equity items. Monetary items have not been restated because they are stated in terms of the measuring unit current as of 31 December 2024. Comparative figures must also be presented in the current currency of 31 December 2024 and are restated using the general price index of the current year. Therefore, all comparative figures for the previous reporting periods have been restated, including foreign subsidiaries, by applying a general price index, so that the resulting comparative financial statements are presented in terms of the current unit of measurement as of the closing date of the reporting period. In the statement of profit or loss, except for depreciation and amortization which is calculated using inflation adjusted asset basis, items are restated from the dates when the items of income and expense were initially recorded. The Group uses monthly general price index for this purpose. Similar to statement of profit or loss, all items in the statement of other comprehensive income are expressed in terms of the measuring unit current at balance sheet date. Therefore, all amounts are restated by applying the change in the general price index from the dates when the items of income and expenses were initially recorded in the financial statements. Impact of inflation accounting on hedging reserve and cost of hedging reserve is transferred to retained earnings when hyperinflation accounting is ceased. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 249 248 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (b) Restatement of financial statements during the hyperinflationary periods (continued) All items except those arising from foreign operations in the statement of cash flows are expressed in a measuring unit current at the balance sheet date. The subsidiaries that use functional currencies other than Turkish Lira (foreign companies with economies that are not considered to be hyperinflationary), do not apply IAS 29 (except for the adjustment of inflation for comparative presentation). The Group restates all comparative consolidated results and financial position in terms of the measuring unit current at the reporting date. The effect arising from the restatement of the beginning of the period net assets of the subsidiaries operating in the related foreign countries to the current period-end purchasing power for presentation purposes due to inflation accounting is reflected in foreign currency translation differences. (c) Functional and presentation currency (i) Transactions and balances Transactions denominated in foreign currencies are translated into the functional currency using the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency using the exchange rates at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency using the exchange rates at the date when the fair value was determined. Exchange differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Foreign exchange gains and losses are recognized in profit or loss, except: • For capitalized foreign exchange differences relating to borrowings to the extent that they are regarded as an adjustment to interest costs eligible for capitalization. • Foreign exchange differences are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. • Foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within finance income or finance costs. (ii) Foreign operations The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet, • Equity for each balance sheet presented is translated at historic cost at the date of transaction, • Income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average monthly exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions) and • All resulting exchange differences are recognized in other comprehensive income and accumulated in the foreign currency translation reserve, in equity. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (c) Functional and presentation currency (continued) (ii) Foreign operations (continued) • On consolidation, exchange differences arising from the translation of borrowings designated as hedges of any net investment in foreign entities are recognized in other comprehensive income. When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. • Foreign currency translation differences reclassified to the statement of profit or loss on disposal of a subsidiary are foreign currency translation differences arising on the conversion from the functional currency of the subsidiary sold to TL, which is the functional currency of the Group. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. (d) Use of estimates and judgments The preparation of the consolidated financial statements requires the use of accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Alterations to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are described below: Allowance for doubtful receivables For trade receivables and contract assets the Group applies the simplified approach to providing for expected credit losses (ECL) prescribed in IFRS 9, which requires the use of the lifetime expected loss provision. The Group performed the calculation of ECL rates separately for individual, corporate and wholesale customers. The ECLs were calculated based on actual credit loss experience over the past years. Exposures within each group were segmented based on common credit risk characteristics such as delinquency status. Future collection performance of receivables is estimated by considering general economic conditions to incorporate forward looking information to the expected credit loss calculations. The Group also applies the general approach defined in IFRS 9 for the recognition of impairment losses on receivables from financial services, carried at amortized cost. Group appropriately classifies its financial instruments considering common risk factors (such as the type of the instrument, credit risk rating, guarantees, time to maturity and sector) to determine whether the credit risk on a financial instrument has increased significantly and to account appropriate amount of credit losses in the consolidated financial statements. Capitalization and useful lives of assets The Group evaluates the nature of the capitalized asset for its property, plant and equipment and intangible assets within the scope of IAS 16 and IAS 38 standards, and accordingly, the related assets are depreciated from the date at which the assets are ready for use. The useful lives of such assets depend on management’s view, considering historical experience with similar products as well as anticipation of future events which may impact their life such as changes in technology. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 251 250 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (d) Use of estimates and judgments (continued) Capitalization and useful lives of assets (continued) The useful lives and residual values of the Group’s assets are estimated by management at the time the asset is acquired and regularly reviewed for appropriateness. The Group defines useful lives of its assets in terms of the assets’ expected utility to the Group. This judgment is based on the experience of the Group with similar assets. In determining the useful life of an asset, the Group also follows technical and/or commercial obsolescence arising on changes or improvements from a change in the market. The useful lives of the telecommunication licenses are based on the duration of the license agreements. Gross versus net presentation of revenue When the Group sells goods or services as a principal, revenue and operating costs are recorded on a gross basis. When the Group sells goods or services as an agent, revenue and operating costs are recorded on a net basis, representing the net margin earned. Whether the Group is considered to be acting as principal or agent in the transaction depends on management’s analysis described below and such judgments impact the amount of reported revenue and operating costs but do not impact reported assets, liabilities or cash flows: Indicators that an entity is a principal: • The entity is primarily responsible for fulfilling the promise to provide the specified good or service, • The entity has inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer, • The entity has discretion in establishing the price for the specified good or service. Contracted handset sales The Company, the distributors and dealers offer joint campaigns to the subscribers which may include the sale of device by the dealer and/or distributor and a communication service to be provided by the Company. The Company recognizes revenue on net basis, representing the net margin earned, for the device in these transactions by considering the factors below: - The Company is not the primary obligor for the sale of handset, - The Company does not have control over the sale prices of handsets, - The Company has no inventory risk. In all other cases, where above factors do not exist, the Company recognizes revenue gross. Multiple performance obligations and price allocation In arrangements which include multiple elements where the Group acts as principal, the Group considers that a good or service is distinct if both of the following criteria are met: • The good or service is capable of being distinct, which is considered present if it is frequently sold on standalone basis by the Group or other third parties, • The promise to transfer the good or service is distinct within the context of the contract, which is considered present if there is no significant integration that combines the goods or services. Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation. The transaction price is allocated between the identified obligations according to the relative standalone selling prices of the obligations. The determination of standalone selling prices for the telecommunications services that are regularly sold on an individual basis by the Group, are not considered to be a critical accounting judgement since the Group uses the actual standalone price of similar services sold by itself in similar circumstances. However, in cases where the identical goods or services are not sold by the Group, stand-alone selling prices for similar goods and services sold by third parties are observed for the estimation purpose. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (d) Use of estimates and judgments (continued) Income taxes The calculation of income taxes involves a degree of estimation and judgment in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through formal legal process. As part of the process of preparing the consolidated financial statements, the Group is required to estimate the income taxes in each of the jurisdictions and countries in which it operates. This process involves estimating the actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue and reserves for tax and accounting purposes. The recognition of deferred tax assets is based upon whether it is probable that future taxable profits will be available against which unrecognized tax losses and temporary differences can be utilized. Recognition, therefore, involves judgment regarding the future financial performance of the particular legal entity in which the deferred tax asset has been recognized. Provisions, contingent liabilities and contingent assets As detailed and disclosed in Note 32, the Group is involved in a number of investigations and legal proceedings (both as a plaintiff and as a defendant) arising in the ordinary course of business. All these investigations and litigations are evaluated by the Group Management and when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation, they are accounted for in the consolidated financial statements. For ongoing investigations, Group Management considers the following in determining if a provision should be recognized and the amount of provision needed; i) actual results of investigations in similar nature, ii) information gathered from investigating regulators during oral defense or other meetings, iii) publicly available information about developments at similar investigations completed by the investigating authority. Future results or outcome of these investigations and litigations might differ from these Group Management’s expectations. All significant investigations and litigations are disclosed unless possibility of outflow is considered remote (and where information concerning provisions are very sensitive, and full disclosure could prejudice the outcome of cases). As at the reporting date, the Group Management believes that appropriate recognition criteria and measurement basis are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount by considering current conditions and circumstances. Asset Retirement Obligation The Group recognize dismantling cost for towers and base stations and provision for site restoration in the cost of an item of property, plant and equipment where the company has such a legal or constructive obligation. The dismantling costs are calculated according to best estimate of future expected payments discounted at a discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. Net present value of dismantling cost is recognized as cost of the item of property, plant and equipment in non-current assets and as a long-term provision in non-current liability. Depreciation is calculated by using the same useful life relating to that asset and discount interest expense is recognized under finance cost in the statement of profit or loss. The Group expects that the obligations for dismantling, removing and site restoration will not be realized before the associated assets’ end of useful life. Obligations for dismantling, removing and site restoration are discounted using a discount rate of 9.5% –31.2% at 31 December 2024 (31 December 2023: 11.5% –29.6%) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 253 252 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (d) Use of estimates and judgments (continued) Floating rate loans and borrowings For floating–rate loans and borrowings, The Group calculates the effective interest rate(“EIR”) based on a market–derived yield curve applicable for the entire life of the instrument. While applying this approach, the calculated EIR is applied until estimated future cash flows are revised, at which point a new EIR is calculated based on the revised cash flow expectations and the current carrying amount. (e) Changes in accounting policies Other than the adoption of the new and revised standards as explained in Note 2(z), the Group did not make any significant changes to its accounting policies during the current year. (f) Changes in accounting estimates If the application of changes in the accounting estimates affects the financial results of a specific period, the changes in the accounting estimates are applied in that specific period, if they affect the financial results of current and following periods; the accounting estimate is applied prospectively in the period in which such change is made. A change in the measurement basis applied is a change in an accounting policy, and is not a change in an accounting estimate. The Company does not have significant changes in accounting estimates during the year. (g) Comparative information and revision of prior period financial information The consolidated financial statements of the Group are prepared comparatively with the previous period in order to enable comparability of the financial position and performance trends. In order to comply with the presentation of the current period consolidated financial statements, comparative information is reclassified when deemed necessary and significant differences are disclosed. Significant changes in accounting policies and significant accounting errors are applied retrospectively and prior period financial statements are restated. During 2024, the Group has discontinued the application of cash flow hedge accounting for significant counts of instruments (Note 34), where reclassifications from other comprehensive income to profit or loss frequently occur. Following this, the Group has reassessed their presentation of line items in the statement of other comprehensive income and considered that combining line items presenting movements of the same nature would be more relevant. As a result, the Group now present single lines for each of foreign currency translation differences, cash flow hedges, and cost of hedges as net in the consolidated statement of other comprehensive income, which includes the amounts reclassified to profit or loss. This combined presentation is presented for the year ended 31 December 2024, 2023 and 2022. This change has not affected the total amount of other comprehensive income or expenses. Amounts reclassified to profit or loss cand be found in the related footnotes (Note 9 and Note 3). (h) Principles of consolidation and equity accounting (i) Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination comprises: • The fair value of the assets transferred, • Liabilities incurred to the former owners of the acquired business, • Equity interests issued by the Group, • The fair value of any asset or liability resulting from a contingent consideration arrangement, and • The fair value of any pre-existing equity interest in the subsidiary. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (h) Principles of consolidation and equity accounting (continued) (i) Business combinations (continued) Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. Goodwill is measured as the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss. (ii) Subsidiaries Subsidiaries comprise all entities over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement of financial position, respectively. (iii) Changes in ownership interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to the non-controlling and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 255 254 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (h) Principles of consolidation and equity accounting (continued) (iv) Business combinations under common control Business combinations between entities or businesses under common control are excluded from the scope of IFRS 3. In a business combination under common control, assets and liabilities of the acquired entity are stated at predecessor carrying values. Any difference between the consideration given and the aggregate book value of the assets and liabilities of the acquired entity at the date of the transaction is recognized in equity. The acquired entity’s results and financial position are incorporated as if both entities (acquirer and acquiree) had always been combined, or using the results from the date when either entity joined the Group, where such a date is later. (v) Investments in associates and joint ventures An associate is an entity over which the Group has significant influence, but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Investments in associates and joint ventures are accounted for using the equity method of accounting after initially being recognized at cost. The accounting policies of both companies are aligned with those of the Group. Therefore, no adjustments are made when measuring and recognizing the Group’s share of the profit or loss of the investees after the date of acquisition. There is no significant goodwill included in the carrying value of associate or joint venture. Under the equity method of accounting, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. The carrying amount of equity-accounted investments is tested for impairment if impairment indicators exist. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (i) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial Assets The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortized cost or fair value through other comprehensive income, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held to collect contractual cash flows while financial assets classified and measured at fair value through other comprehensive income are held to collect contractual cash flows and selling. i) Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through other comprehensive income with recycling of cumulative gains and losses (debt instruments) • Financial assets designated at fair value through other comprehensive income with no recycling of cumulative gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss (ii) Financial assets at amortized cost (debt instruments) Financial assets at amortized cost are subsequently measured using EIR method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost includes time deposits with maturity more than three months. For more information, refer to Note 24. (iii) Financial assets at fair value through other comprehensive income (debt instruments) For debt instruments at fair value through other comprehensive income, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in other comprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycled to profit or loss. The Group’s debt instruments at fair value through other comprehensive income includes investments in listed debt securities. For more information, refer to Note 24. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 257 256 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (i) Financial instruments (continued) Financial Assets (continued) (iv) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. This category includes investment funds, and currency protected time deposits which the Group were irrevocably designated at fair value through profit or loss. When an investment in an associate or a joint venture is held by, or is held indirectly through, an entity that is a venture capital organization, or a mutual fund, unit trust and similar entities including investment-linked insurance funds, the entity may elect to measure that investment at fair value through profit or loss in accordance with IFRS 9.Thus, the Group elect to measure all investments held by RE-PIE Portfoy Yonetim A.S Turkcell Yeni Teknolojiler Girisim Sermayesi (“Turkcell GSYF”) at fair value through profit or loss. For more information, refer to Note 24. (v) Impairment The Group assesses on a forward-looking basis ECL associated with its debt instruments carried at amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Loss allowances are measured on either of the following bases. • 12 month expected credit losses (ECLs): these are ECLs that result from possible default events within the 12 months after the reporting date and • Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument. All Group companies apply simplified lifetime ECL measurement for trade receivables and contract assets except Turkcell Finansman which applies the general approach for trade receivable and contract assets. Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (i) Sale and Repurchase Agreements Securities purchased under agreements to resell (“Reverse Repo”) are classified and measured at amortized cost with the objective to collect contractual cash flows that are SPPI. Reverse repo transactions are recognized as cash and cash equivalents because they have short-term maturity and is readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. Central Bank Accounts According to the “Regulation on Required Reserves (Issue: 2013/15)” published in the Official Gazette No. 31818 on 23April 2022, the required reserve ratio for assets subject to required reserves has been set at 20% as of 31 December 2024. As for the liabilities subject to required reserves, the rates for Turkish lira required reserves are between 3% and 8% depending on the maturity structure, while the rates for foreign currency required reserves are between 5% and 26%, depending on the maturity structure. (As of 31 December 2023: 5% - 21%). Required reserves are reported as restricted cash under other current assets (Note 17) TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (i) Financial instruments (continued) Trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection of the amounts is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. Current trade receivables that do not contain a significant financing component are measured at the transaction price, less provision for impairment. When the period between the transfer of the promised good or service and the payment is one year or less, the Group applies the practical expedient and does not adjust the consideration for the effects of a significant financing component. However, non-current trade receivables are recognized initially at fair value and subsequently measured at amortized cost using EIR method, less provision for impairment. See Note 35 for a description of the Group’s impairment policies. Related parties A related party is a person or entity that is related to the Group. (a) A person or a close member of that person’s family is related to the Group if that person: (i) has control or joint control of the Group (ii) has significant influence over the Group; or (iii) is a member of the key management personnel of the Group or of a parent of the Group. (b) An entity is related to the Group if any of the following conditions applies: (i) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. If the Group is itself such a plan, the sponsoring employers are also related to the Group. (vi) The entity is controlled or jointly controlled by a person identified in (a). (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 259 258 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (i) Financial instruments (continued) Financial liabilities All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and borrowings, and derivative financial instruments. (i) Subsequent measurement For purposes of subsequent measurement, financial liabilities are classified in two categories: • Financial liabilities at fair value through profit or loss • Financial liabilities at amortized cost (loans and borrowings) (ii) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. (iii) Financial liabilities at amortized cost (loans and borrowings) After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss. For more information, refer to Note 28. (iv) Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (i) Financial instruments (continued) Offsetting financial assets and financial liabilities Financial assets and liabilities are offset and the net amount presented in the statement of financial position where the Group has a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously. (j) Derivative financial instruments and hedge accounting Derivative instruments are initially recognized at the acquisition cost reflecting the fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. The derivative instruments of the Group mainly consist of participating cross currency swap contracts which is a cross- currency swap product featuring both buy and sell option structures, cross currency /interest rate swap contracts, foreign currency swap contracts and currency forward contracts instruments. These derivative transactions, even though providing effective economic hedges under the Group risk management position, do not generally qualify for hedge accounting under the specific rules and are therefore treated as derivatives held for trading in the consolidated financial statements. The fair value changes for these derivatives are recognized in the consolidated income statement. Fair values of foreign exchange forwards, interest rate and foreign exchange swaps (IRS, Cross Currency Swaps etc.) and options are calculated with market levels of interest rates and Central Bank of Republic of Turkiye (“CBRT”) exchange rates via valuation methods and pricing instruments correspondent with market standards. If market levels are not available for valuation date, fair value for forward contracts will be the value of the discounted future value of the difference between contract price level and forward value of CBRT exchange rate with risk free rates for the period. Interest rate and currency swaps will be valued with the difference of the discounted cash flows of each leg of the swaps using risk free rates and CBRT exchange rates. Option transactions will be valued with option pricing models using risk free rates and CBRT exchange rates. At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. The hedging transactions of the Group that qualify for hedge accounting are accounted for as follows: (i) Fair value hedge Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of hedged asset or liability attributable to the hedged risk is recorded as part of the carrying value of the hedged asset or liability during the effective hedging relationship. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item, for which the effective interest method is used, is amortized using a recalculated effective interest rate. Fair value hedge accounting has not been applied as of 31 December 2024 and 2023. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 261 260 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (j) Derivative financial instruments and hedging accounting (continued) (ii) Cash flow hedge Hedges of exposures to variability in cash flows that are attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction and could affect profit and loss are designated as cash flow hedges by the Group in accordance with IFRS 9 hedge accounting requirement. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. Gains or losses relating to the effective portion of the change in intrinsic value of the options are recognized in the cash flow hedge reserve within equity. The changes in the time value of the options that relate to the hedged item (“aligned time value”) are recognized within other comprehensive income in the costs of hedging reserve within equity. Amounts accumulated in equity are reclassified in the periods when the hedged item affects profit or loss, as follows: - Where the hedged item subsequently results in the recognition of a non-financial asset, both the deferred hedging gains and losses and the deferred time value of the option contracts or deferred forward points, if any, are included within the initial cost of the asset. The deferred amounts are ultimately recognized in profit or loss as the hedged item affects profit or loss. - The gain or loss relating to the effective portion of the interest rate swaps hedging variable rate borrowings is recognized in profit or loss within finance cost at the same time as the interest expense on the hedged borrowings. The new effectiveness test model may be qualitative depending on the complexity of hedging relationship provided that it is prospective only. The 80-125% range in IAS 39 is replaced by an objectives-based test that focuses on the economic relationship between the hedged item and the hedging instrument, and the effect of credit risk on that economic relationship. Under IFRS 9, at inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. Hedging relationship is discontinued in its entirety when as a whole it ceases to meet the qualifying criteria after considering the rebalancing of the hedging relationship. Voluntary discontinuation is not done, as its prohibited by IFRS 9. Hedge accounting is discontinued when the risk management objective for the hedging relationship has changed, the hedging instrument expires or is sold, terminated or exercised, there is no longer an economic relationship between the hedged item and hedging instrument or when the effect of credit risk starts dominating the value changes that result from the economic relationship. When the Group discontinues hedge accounting for a cash flow hedge it accounts for the amount that has been accumulated in the cash flow hedge reserve as follows; -If the hedged future cash flows are still expected to occur, that amount shall remain in the cash flow hedge reserve until the future cash flows occur. That amount shall be reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the expected future cash flows affect profit or loss. - If the hedged future cash flows are no longer expected to occur, that amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment - If cash flow hedge accounting is discontinued for a time-period related hedge relationship for which change in time value of options is recognized in the costs of hedging, the amount recognized in cost of hedging reserve in equity immediately reclassified to profit or loss as a reclassification adjustment. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) Derivative financial instruments and hedging accounting (continued) (iii) Foreign currency hedge of net investments in foreign operations Foreign exchange gains or losses on the hedging instrument relating to the effective portion of the foreign currency hedge of net investments in foreign operations are recognized in other comprehensive income while any gains or losses relating to the ineffective portion is recognized in the income statement. Tax effects of foreign exchange gains or losses on the hedging instrument relating to the effective portion of the foreign currency hedge of net investments in foreign operations is recognized under other comprehensive income as well (Note 34). (k) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes cost of materials and direct labor, any other costs directly attributable to bringing the asset to a working condition for its intended use and the costs of dismantling and removing the items and restoring the site on which they are located, if any. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in profit or loss. Changes in the obligation to dismantle, remove assets on sites and to restore sites on which they are located, other than changes deriving from the passing of time, are added or deducted from the cost of the assets in the period in which they occur. The amount deducted from the cost of the asset cannot exceed the balance of the carrying amount on the date of change, and any excess balance is recognized immediately in profit or loss. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. (ii) Subsequent costs Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. (iii) Depreciation Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. Land is not depreciated. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 263 262 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (k) Property, plant and equipment (continued) (iii) Depreciation (continued) The ranges of estimated useful lives are as follows: Mobile network infrastructure 4–20 years Fixed network infrastructure 3–25 years Call center equipment 4–8 years Buildings 21–25 years Equipment, fixtures and fittings 2–10 years Motor vehicles 4 – 6 years Electricity power plant 20 years Leasehold improvements 3 – 5 years Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. (iv) Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred. (l) Intangible assets (i) Telecommunication licenses Separately acquired telecommunication licenses are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization and impairment losses. Amortization Amortization is recognized in the statement of profit or loss on a straight-line basis by reference to the license period. The range of estimated useful life for telecommunication licenses are as follows: Telecommunications licenses 3 – 25 years The Company has been granted the 2G, 3G and 4.5G licenses on 27 April 1998 (The 2G license has been extended until 30 April 2029 on 7 April 2023) 30 July 2009 and 26 August 2015, respectively. The licenses are effective for 31, 20 and 13 years, respectively. (ii) Computer software Acquired computer software licenses are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization and impairment losses. Acquired computer software licenses are capitalized based on the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognized as intangible assets when the following criteria are met: • It is technically feasible to complete the software such that it will be available for use, • Management intends to complete the software and use or sell it, TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (I) Intangible assets (continued) (ii) Computer software (continued) • There is an ability to use or sell the software, • It can be demonstrated how the software will generate probable future economic benefits, • Adequate technical, financial and other resources to complete the development and to use or sell the software are available and • The expenditure attributable to the software during its development can be reliably measured. Directly attributable costs that are capitalized as part of the software include employee costs and an appropriate portion of relevant overheads. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use. Amortization Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives. The range of estimated useful life for computer software are as follows: Computer software 3 – 8 years Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. (iii) Other intangible assets Other intangible assets that are acquired by the Group which have finite useful lives are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less amortization and impairment losses. Indefeasible Rights of Use (“IRU”) are rights to use a portion of an asset’s capacity granted for a fixed period of time. IRUs are recognized as intangible asset when the Group has specific indefeasible rights to use an identified portion of an underlying asset and the duration of the right is for the major part of the underlying asset's useful economic life. IRUs are amortized over the shorter of the underlying asset's useful economic life and the contract term. Amortization Amortization is recognized in the statement of profit or loss on a straight-line basis over the estimated useful lives. The ranges of the estimated useful lives for other intangible assets are as follows: Indefeasible right-of-use 15 years Transmission line software 5–10 years Brand name 9–10 years Customer base 2–15 years Subscriber acquisition cost 2–6 years Electricity production license 20 years Amortization methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. Useful lives of subscriber acquisition cost are determined based on expected subscriber lifetimes. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 265 264 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (I) Intangible assets (continued) Goodwill Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired. It is carried at cost adjusted for the effects of inflation during the hyperinflationary period (when it is arising from acquisition of a business whose functional currency is hyperinflationary), less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. (m) Investment properties Recognition and measurement Investment properties are properties held for rental yields and/or for capital appreciation (including property under construction for such purposes). Investment properties are stated at historical cost adjusted for the effects of inflation during the hyperinflationary period, where applicable, less depreciation and impairment losses. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized. Depreciation Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. The ranges of estimated useful lives are as follows: Investment Property 25-45 years Depreciation methods, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period. (n) Inventories Inventories are stated at the lower of cost, which is adjusted for the effects of inflation during the hyperinflationary period, where applicable, and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Cost of inventory is determined using the weighted average method and comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. At 31 December 2024 and 2023, inventories mainly consisted of mobile phone and its accessories, tablet, sim-cards, tower construction materials and other electronic products. (o) Impairment of non-financial assets The Group assesses, at each reporting period, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s (“CGU”) fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (o) Impairment of non-financial assets (continued) For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. (p) Employee benefits (i) Short-term obligations Liabilities for salaries including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as employee benefit obligations in the statement of financial position. (ii) Post-employment benefits In accordance with the labor law in Turkiye, the Company and its subsidiaries in Turkiye are required to make lump-sum payments to employees who have completed one year of service and whose employment is terminated without cause or who retire, are called up for military service or die. Such payments are considered as being part of defined benefit plans in accordance with IAS 19 Employee Benefits (“IAS 19”). Thus, the Group has recognized the retirement pay liability provision which is calculated by estimating the present value of future probable obligation of the Company and its subsidiaries in Turkiye arising from retirement of employees. Provision for retirement pay liability is calculated by independent actuaries using the projected unit credit method. The calculated actuarial gains and losses are all recognized in other comprehensive income. For Turkish legal entities, the provision is calculated based on 30 days' pay up to a maximum full TL 35.1 as at 31 December 2024 (31 December 2023: TL 23.5), per year of employment, which is adjusted for future increases due to inflation applicable at the date of retirement. Discount rate used for calculating retirement pay liability as of 31 December 2023 is 2.2% (31 December 2023: 2.5%). (iii) Share-based payments The Group provides a cash-settled share-based payment plan for selected employees in return for their services. For cash-settled share-based payment transactions, the Group measures services received and the liability incurred at the fair value of the liability. Liabilities for cash-settled share-based payment plan are recognized as employee benefit expense over the relevant service period. The fair value of the liability is re-measured at each reporting date and at the settlement date. Any changes in fair value are recognized in profit or loss for the period. (iv) Personnel bonus Provision for bonus is provided when the bonus is a legal obligation, or past practice would make the bonus a constructive obligation and the Group is able to make a reliable estimate of the obligation. (v) Defined contribution plans For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 267 266 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (q) Provisions A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of management’s best estimate of the outflow required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense. Dismantling, removal and restoring sites obligation The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. (r) Revenue Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. Revenue is recognized when control is transferred to the customer. Revenue from telecommunication services includes postpaid and prepaid revenue from voice, data, messaging and value-added services, fixed internet services, interconnect revenue, and roaming revenue. The Group generally recognizes telecommunication revenue over time as it transfers services to its customer because the subscriber simultaneously receives and consumes the benefits provided by the Group, as the Group performs. For certain contracts, the Group recognizes revenue for the products and services early within the contract term, where the collection is made in deferred terms. Collection under these contracts, are considered probable as the Group has contractual right to collect, it has a firm policy and practice to enforce its contractual rights and has a historic pattern of collection. With respect to contract liability, the Group generally collects cash in advance by selling prepaid top up to distributors. In such cases, the Group does not recognize revenue until subscribers use the telecommunication services. Services may be bundled with other products and services and these bundled elements involve consideration in the form of a fixed fee or a fixed fee coupled with a continuing payment stream. A good or service is distinct if both of the following criteria are met: • The good or service is capable of being distinct, which is considered present if it is frequently sold on standalone basis by the Group or other third parties, • The promise to transfer the good or service is distinct within the context of the contract, which is considered present if there is no significant integration that combines the goods or services. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (r) Revenue (continued) The arrangement consideration is allocated to each performance obligation identified in the contract on a relative standalone selling price. If an element of a transaction is not distinct, then it is accounted for as an integral part of the remaining elements of the transaction. Revenue from device sales is recognized when control of the device has been transferred, being the time when delivered to the end customer. For device sales, revenue is recognized at the time when control of the device has been transferred, being when the products are delivered. The Group, its distributors and dealers offer joint campaigns to subscribers (mainly corporate subscribers) which may include the sale of device by the dealer and/or the distributor and the sale of communication service by the Group. In certain campaigns, dealers make the handset sales to the subscribers with deferred payment terms. Instalment of these handset sales are collected by the Group through letters of undertaking (a formal document transferring right to collect) signed by all parties. The Group pays the distributor the net present value of the installments to be collected from the subscribers and recognizes “contracted receivables” (those that are transferred by the dealers/distributors) in its statement of financial position. The undue (not collected) portion of these contracted receivables which were paid upfront to the distributors/dealers by the Group is classified as “undue assigned contracted receivables” in trade receivables (Note 19). When monthly installment is invoiced to the subscriber, related portion is reclassified as “receivables from subscribers”. The Group collects the contracted receivables in installments during the contract period and recognize revenue for the handset, based on the gross versus net presentation criteria explained at note (d). The Group and distributors offer subscribers to buy a device through consumer financing loan, which will be collected by Turkcell Finansman. The Group carries a risk of collection in these transactions. Turkcell Finansman collects the purchased credit from the subscriber during the contract period and does not record revenue related to the device when it does not act as principal for the sale of device. This is classified as revenue from financial services and it represents interest income generated from consumer financing activities. Interest income is recognized as it accrues, using the effective interest method. The Group also generate revenue from mobile payment services, classified as revenue from financial services, provided by Turkcell Odeme. The revenue mainly consists of commission income from mobile payment activities, and recognized when customers use the service, make transactions and the service provided. Monthly fixed fees represent a fixed amount charged to postpaid subscribers on a monthly basis without regard to the level of usage. Fixed fees are recognized on a monthly basis when billed. Monthly fixed fees are included in telecommunication services revenues. Call center revenues are recognized at the time services are rendered during the contractual period. The revenue recognition policy for other revenues is to recognize revenue as services are provided. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 269 268 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (s) Revenue (continued) When one of the parties performs the contract, based on the relationship between the Group’s performance and the customer’s payment, the Group recognizes the contract as either a contract asset or a contract liability in the financial position statement. The Group presents its unconditional rights to the consideration as a receivable separately. Before transferring a good or service to the customer, if the customer is required to pay the consideration or the Group has an unconditional right to receive the consideration (in other words, has a receivable), the Group recognizes the contract as a contract liability on the date the payment is made or the payment due date (whichever is earlier). A contract liability represents the Group's obligation to transfer goods or services to the customer in exchange for the consideration that it has received (or has the right to collect) from the customer. In cases where the Group performs its obligation by transferring goods or services to the customer before the customer makes the payment or before the payment due date, the Group recognizes the contract as a contract asset (excluding amounts presented as receivables). A contract asset represents the Group's right to receive the consideration for the goods or services it has transferred to the customer. The Group evaluates the contract asset for impairment in accordance with IFRS 9. The impairment of a contract asset is measured, presented, and disclosed according to the same principles as a financial asset under IFRS 9. Contract costs eligible for capitalization as incremental costs of obtaining a contract comprise commission on sale relating to prepaid and postpaid contracts with acquired or retained subscribers. Contract costs are capitalized in the month of service activation if the Group expects to recover those costs. Contract costs comprise sales commissions to dealers and to own salesforce which can be directly attributed to an acquired or retained contract. Contract costs are classified as intangible assets in the consolidated financial statements. The asset is amortized on a straight-line basis over the customer lifetime, consistent with the pattern of recognition of the associated revenue. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (t) Income taxes The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Income tax expense is recognized in the statement of profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, based on amounts expected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and tax losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Companies within the Group may be entitled to claim special tax exemptions for capital investments in qualifying assets or in relation to qualifying expenditure (e.g., the Research and Development Tax Incentive regime in Turkiye or other investment allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognized for unclaimed tax credits that are carried forward as deferred tax assets. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 271 270 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (u) Earnings per share The Group does not have any potential ordinary shares in issue, therefore basic and diluted earnings per share (“EPS”) are equal. Since basic and diluted EPS are equal, the Group presents both basic and diluted EPS on one line described as “Basic and diluted EPS”. Basic EPS is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted-average number of ordinary shares outstanding during the financial year, excluding treasury shares. In Türkiye, entities can increase their share capital by distributing “Bonus share” to shareholders from retained earnings. In computing earnings per share, such “Bonus share” distributions are treated as issued shares. Accordingly, the retrospective effect for such share distributions is taken into consideration when determining the weighted-average number of shares outstanding. (v) Non-current assets held for sale and discontinued operations On 29 December 2023, the Group publicly announced the decision of its Board of Directors to sell Lifecell, UkrTower and Global LLC, which as a whole represent Ukrainian geography operations. The sale of Ukrainian operations is expected to be completed within a year from the reporting date. The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Assets and liabilities of Ukrainian operations are presented at carrying amounts, as carrying amount is lower than fair value less costs to sell. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial position. Ukrainian operations are presented as a discontinued operation and were classified as held for sale since it represents a separate major geographical area of operations. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit or loss. Additional disclosures are provided in Note 3. All other notes to the financial statements include amounts for continuing operations, unless indicated otherwise. (w) Equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back plan, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of the Company as treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the Company (Note 25). TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (x) Dividends Liability is recognized for any dividend declared, being appropriately authorized and no longer at the discretion of the Company, on or before the end of the reporting period but not distributed at the end of the reporting period. (y) Leases At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, The Group assesses whether: - The contract involved the use of an identified asset - this may be specified explicitly or implicitly; - The asset should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, the asset is not identified; - The Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of use and - The Group has the right to direct use of the asset. The Group has the right when it has the decision-making rights that are most relevant to changing the how and for what purpose the asset is used. If these decisions are predetermined; Ͳ The Group has the right to operate the asset or, Ͳ The Group designed the asset in a way that predetermines how and for what purpose it is used. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Right-of-use asset The Group recognizes a right-of use asset and a lease liability at the lease commencement date. The right-of-use asset is initially recognized at cost which is adjusted for the effects of inflation during the hyperinflationary period, where applicable, comprising of: - Amount of the initial measurement of the lease liability, - Any lease payments made at or before the commencement date, less any lease incentives received, - Any initial direct costs incurred by the Group and - An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The lessee incurs the obligation for those costs either at the commencement date or as a consequence of having used the underlying asset during a particular period. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end date of the useful life of the right-of-use asset or the end date of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability (Note 16). Lease Liability The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 273 272 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (x) Leases (continued) - Fixed payments, including in-substance fixed payments, - Variable lease payments that depend on an index or a rate, initially measured using the index or rate at the commencement date, - Amounts expected to be payable under a residual value guarantee and - The exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewable period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease if the Group is reasonably certain to terminate early. After initial recognition, the lease liability is measured (a) increasing the carrying amount to reflect interest on lease liability; (b) reducing the carrying amount to reflect the lease payments made, and (c) remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. Where, (a) there is a change in the lease term as a result of reassessment of certainty to exercise an extension option, or not to exercise a termination option as discussed above; or (b) there is a change in the assessment of an option to purchase the underlying asset, assessed considering the events and circumstances in the context of a purchase option, the Group remeasures the lease liabilities to reflect changes to lease payments by discounting the revised lease payments using a revised discount rate. The Group determines the revised discount rate as the interest rate implicit in the lease for the remainder of the lease term, or the its incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined. Where, (a) there is a change in the amounts expected to be payable under a residual value guarantee; or (b) there is a change in the future lease payments resulting from a change in an index or a rate used to determine those payments, including change to reflect changes in market rental rates following a market rent review, the Group remeasures the lease liabilities by discounting the revised lease payments using an unchanged discount rate, unless the change in lease payments results from a change in floating interest rates. In such case, the Group uses the revised discount rate that reflects changes in the interest rate. The Group recognizes the amount of the remeasurement of lease liability as an adjustment to the right-of- use asset. Where the carrying amount of the right-of-use asset is reduced zero and there is further reduction in the measurement of the lease liability, the Group recognizes any remaining amount of the remeasurement in profit or loss. The Group accounts for a lease modification as a separate lease if both: - The modification increases the scope of the lease by adding the right to use one or more underlying assets and - The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. The Group as a Lessor When the Group acts an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use-asset arising from the head lease, not with reference to the underlying asset. If an arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the consideration in the contract. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (y) New standards and interpretations i) The new standards, amendments and interpretations which are effective as of 1 January 2024 are as follows: Amendments to IAS 1- Classification of Liabilities as Current and Non-Current Liabilities In January 2020 and October 2022, IASB issued amendments to IAS 1 to specify the requirements for classifying liabilities as current or non-current. According to the amendments made in October 2022 if an entity’s right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period (“future covenants”), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period. In addition, October 2022 amendments require an entity to provide disclosure when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months. This disclosure must include information about the covenants and the related liabilities. The amendments clarify that the requirement for the right to exist at the end of the reporting period applies to covenants which the entity is required to comply with on or before the reporting date regardless of whether the lender tests for compliance at that date or at a later date. The amendments also clarified that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. The amendments must be applied retrospectively in accordance with IAS 8. The amendments did not have a significant impact on the financial position or performance of the Group. Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback In September 2022, the Board issued amendments to IFRS 16. The amendments specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. In applying requirements of IFRS 16 under “Subsequent measurement of the lease liability” heading after the commencement date in a sale and leaseback transaction, the seller lessee determines ‘lease payments’ or ‘revised lease payments’ in such a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee determining ‘lease payments’ that are different from the general definition of lease payments in IFRS 16. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with IAS 8. A seller-lessee applies the amendments retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application of IFRS 16. The amendments did not have a significant impact on the financial position or performance of the Group. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 275 274 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (y) New standards and interpretations (continued) i) The new standards, amendments and interpretations which are effective as of 1 January 2024 are as follows: (continued) Amendments to IAS 7 and IFRS 7 - Disclosures: Supplier Finance Arrangements The amendments issued in May 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by IFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose. The amendments did not have a significant impact on the financial position or performance of the Group. ii) Standards, amendments and interpretations that are issued but not yet effective: Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the interim condensed consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective. Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture In December 2015, IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted. The Group will wait until the final amendment to assess the impacts of the changes. Amendments to IAS 21 - Lack of exchangeability In August 2023, the Board issued amendments to IAS 21. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted but will need to be disclosed. When applying the amendments, an entity cannot restate comparative information. The Group expects no significant impact on its balance sheet and equity. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (y) New standards and interpretations (continued) ii) Standards, amendments and interpretations that are issued but not yet effective: (continued) Amendments to IFRS 9 and IFRS 7 – Classification and measurement of financial instruments In May 2024, the Board issued amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7). The amendment clarifies that a financial liability is derecognised on the ‘settlement date’. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of non-recourse assets and contractually linked instruments. Additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income are added with the amendment. The amendment will be effective for annual periods beginning on or after 1 January 2026. Entities can early adopt the amendments that relate to the classification of financial assets plus the related disclosures and apply the other amendments later. The new requirements will be applied retrospectively with an adjustment to opening retained earnings. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group. Annual Improvements to IFRS Accounting Standards – Volume 11 In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards – Volume 11, amending the followings: - IFRS 1 First-time Adoption of International Financial Reporting Standards – Hedge Accounting by a First-time Adopter: These amendments are intended to address potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9. - IFRS 7 Financial Instruments: Disclosures – Gain or Loss on Derecognition: The amendments update the language on unobservable inputs in the Standard and include a cross reference to IFRS 13. - IFRS 9 Financial Instruments – Lessee Derecognition of Lease Liabilities and Transaction Price: IFRS 9 has been amended to clarify that, when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply derecognition requirement of IFRS 9 and recognise any resulting gain or loss in profit or loss. IFRS 9 has been also amended to remove the reference to 'transaction price”. - IFRS 10 Consolidated Financial Statements – Determination of a 'De Facto Agent': The amendments are intended to remove the inconsistencies between IFRS 10 paragraphs. - IAS 7 Statement of Cash Flows – Cost Method: The amendments remove the term of “cost method” following the prior deletion of the definition of 'cost method'. Improvements are effective for annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted for all. The amendments are not expected to have a significant impact on the Group’s consolidated financial statements. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 277 276 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (y) New standards and interpretations (continued) ii) Standards, amendments and interpretations that are issued but not yet effective: (continued) Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity In December 2024, the Board issued Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7). The amendment clarifies the application of the “own use” requirements and permits hedge accounting if these contracts are used as hedging instruments. The amendment also adds new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows. The amendment will be effective for annual periods beginning on or after 1 January 2026. Early adoption is permitted but will need to be disclosed. The clarifications regarding the ‘own use’ requirements must be applied retrospectively, but the guidance permitting hedge accounting have to be applied prospectively to new hedging relationships designated on or after the date of initial application. The Group expects no significant impact on its balance sheet and equity. IFRS 18 – The new Standard for Presentation and Disclosure in Financial Statements In April 2024, IASB issued IFRS 18 which replaces IAS 1. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards, such as IAS 7, IAS 8 and IAS 34. IFRS 18 and the related amendments are effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted. IFRS 18 will be applied retrospectively. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group. IFRS 19 – Subsidiaries without Public Accountability: Disclosures In May 2024, the Board issued IFRS 19, which allows eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. Unless otherwise specified, eligible entities that elect to apply IFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards. An entity that is a subsidiary, does not have public accountability and has a parent (either ultimate or intermediate) which prepares consolidated financial statements, available for public use, which comply with IFRS accounting standards may elect to apply IFRS 19. IFRS 19 is effective for reporting periods beginning on or after 1 January 2027 and earlier adoption is permitted. If an eligible entity chooses to apply the standard earlier, it is required to disclose that fact. An entity is required, during the first period (annual and interim) in which it applies the standard, to align the disclosures in the comparative period with the disclosures included in the current period under IFRS 19. The standard is not applicable for the Group TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 2. Basis of preparation and summary of material accounting policies (continued) (y) New standards and interpretations (continued) iii) The amendments which are effective immediately upon issuance Amendments to IAS 12 - International Tax Reform – Pillar Two Model Rules In May 2023, the Board issued amendments to IAS 12, which introduce a mandatory exception in IAS 12 from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that IAS 12 applies to income taxes arising from tax laws enacted or substantively enacted to implement the Pillar Two Model Rules published by the Organization for Economic Cooperation and Development (OECD). The amendments also introduced targeted disclosure requirements for entities affected by the tax laws. The temporary exception from recognition and disclosure of information about deferred taxes and the requirement to disclose the application of the exception apply immediately and retrospectively upon issue of the amendments. Based on management’s assessments, as of 31 December 2024, the amendments due to Pillar Two did not have an impact on its consolidated financial statements. However, the Company will continue to monitor upcoming legislation changes on this matter, in Turkey and in other countries that the Group operates. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 279 278 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 3. Discontinued operations As per the Group's Board of Directors' decision dated 20 December 2023; a share transfer agreement was signed on 29 December 2023 for the transfer of all shares, along with all rights and debts, of Lifecell LLC, Global LLC, and Ukrtower, which are the Group's wholly owned subsidiaries. As of 9 September 2024, cash amounting to TL 17,777,962, was received by the Group in accordance with the share purchase agreement. Assets and liabilities were reclassified as held for sale in relation to the discontinued operation as at 31 December 2023: 31 December 2023 Assets Property, plant and equipment 8,370,924 Right-of-use assets 1,916,539 Intangible assets 4,764,218 Trade receivables 389,675 Deferred tax assets 1,899,846 Other non current asset 219,127 Financial assets at amortized cost 1,062,879 Cash and cash equivalents 5,800,335 Other current asset 273,558 Assets held for sale 24,697,101 Liabilities Borrowings 6,532,277 Employee benefit obligations 50,143 Current tax liabilities 6,064 Trade and other payables 1,287,061 Other non current liabilities 7,705 Deferred revenue 25,705 Contract liabilities 664,495 Provisions 562,371 Liabilities directly associated with the assets held for sale 9,135,821 Net assets directly associated with disposal group 15,561,280 Amounts included in accumulated OCI: Foreign currency translation reserve 8,865,132 Reserve of disposal group classified as held for sale 8,865,132 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 3. Discontinued operations (continued) The profit or loss and cash flow statements of disposal group are as follows: 1 January- 1 January- 1 January- 9 September 2024 31 December 2023 31 December 2022 Revenue 7,397,469 11,170,614 11,436,893 Cost of revenue (2,729,496) (6,877,968) (8,187,441) Gross profit 4,667,973 4,292,646 3,249,452 Selling and marketing expenses (428,437) (640,822) (642,087) Administrative expenses (272,194) (367,032) (373,746) Other operating income/(expense), net 25,793 278,344 220,028 Operating profit 3,993,135 3,563,136 2,453,647 Net finance costs / income (65,907) (297,796) (1,058,857) Profit before income tax 3,927,228 3,265,340 1,394,790 Tax benefit /(expense) (320,457) (421,547) (178,587) Profit for the year from discontinued operations 3,606,771 2,843,793 1,216,203 Gain on sale of disposal of subsidiaries 8,821,192 - Ͳ Total 12,427,963 2,843,793 1,216,203 The net cash flows incurred by the disposal group are, as follows: 9 September 2024 31 December 2023 31 December 2022 Cash flows from operating activities 2,896,417 7,043,237 5,951,420 Cash flows from/(used in) investing activities 411,906 (2,660,062) (4,567,695) Cash flows (used in)/ from financing activities (3,537,035) (1,193,887) (1,134,367) Net cash (outflow)/inflow (228,712) 3,189,288 249,358 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 281 280 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 3. Discontinued operations (continued) The carrying amounts of assets and liabilities as of 9 September 2024 as follows: Assets 9 September 2024 Property, plant and equipment 7,640,376 Right-of-use assets 2,465,789 Intangible assets 3,908,724 Trade receivables 377,483 Deferred tax assets 1,094,417 Cash and cash equivalent 4,058,620 Other assets 444,975 Assets directly associated with the assets held for sale 19,990,384 Liabilities Borrowings 2,461,113 Trade and other payables 1,141,715 Provisions 370,759 Other liabilities 822,161 Liabilities directly associated with the assets held for sale 4,795,748 Net assets directly associated with disposal group 15,194,636 Details of the sale of the disposal group as follows: Consideration received: Cash received 17,777,962 Deferred payment 677,553 Total disposal consideration 18,455,515 Carrying amount of net assets sold (15,194,636) Reclassification of foreign currency translation reserve 5,560,313 Gain on sale of disposal of subsidiary 8,821,192 The Company’s main discontinued operations are through a subsidiary whose functional currency, is not hyper inflationary. Therefore, the net assets and liabilities related to discontinued operations as of 9 September 2024, as well as the consideration from the sale, reflect amounts converted at the exchange rate of that date and are not expressed in terms of the purchasing power of the Turkish Lira as of 31 December 2024. The profit or loss statement and cash flow information for the current period reflect amounts that are converted at the average exchange rate or the exchange rate at the transaction date, in line with general practice. Comparative amounts for discontinued operations are presented in terms of the purchasing power of the Turkish Lira as of 31 December 2024, which is consistent with the presentation of foreign subsidiaries. Lifecell has recognized a deferred tax asset amounting to TL 1,699,803 as of 31 December 2023 (31 December 2022: TL 1,511,666). The aforementioned tax losses are unlimited in duration. In determining the amount of the deferred tax asset that can be used, the Group has used the business plans for the following years, and it has been assessed that the accumulated losses will be utilized within 4 years as of 31 December 2023. 4. Financial risk management This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s future financial performance. Current year profit and loss information has been included where relevant to add further context. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 4. Financial risk management (continued) The Group’s risk management policies are set to determine and analyze the risks faced, to establish the appropriate risk limits and to observe the commitment to those limits. These policies are constantly reviewed to make sure they reflect the Group’s operations and the changes in market conditions. Credit risk At the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents, financial asset at fair value through other comprehensive income, financial asset at fair value through profit or loss, financial asset at amortized cost, derivative financial instruments, contract assets, trade receivables, receivables from financial services, due from related parties and other current and non-current assets (Note 35). Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Group may require collateral in respect of financial assets. Also, the Group may demand letters of guarantee from third parties related to certain projects or contracts. The Group may also demand certain pledges from counterparties, if necessary, in return for the credit support it gives related to certain financings (Note 19). In monitoring customer credit risk, customers are grouped according to whether they are subscribers, financial services customers, other corporate customers and aging profile, maturity and existence of previous financial difficulties. Trade receivables and contract assets are mainly related to the Group’s subscribers. The Group’s exposure to credit risk on trade receivables and contract assets is influenced mainly by the individual payment characteristics of postpaid subscribers. The Group establishes a provision for impairment losses based on its historical events and future expectations in respect of trade receivables and contract assets. The receivables from financial sector activities consist of contractual assignments from subscribers related to consumer financing activities of Turkcell Finansman, receivables related to payment services and electronic money services of Turkcell Ödeme and Paycell LLC, and receivables related to insurance agency services of Turkcell Sigorta. These receivables are accounted for using the effective interest rate method at amortized cost. Investments are preferred to be in liquid securities. The counterparty limits are set monthly depending on their ratings from the most credible rating agencies and the amount of their paid-in capital and/or shareholders equity. Policies are in place to review the paid-in capital and rating of counterparties periodically to ensure credit worthiness. The Group signs local and international derivate agreements in order to be able to execute financial derivative transactions with financial institutions that are believed to have sufficient credit ratings. The Group’s policy is to provide financial guarantees only to subsidiaries. At 31 December 2024, guarantees of TL11,164,743 were outstanding (31 December 2023: TL 12,758,470). Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. At the end of the reporting period the Group held demand deposits of TL 4,602,532 (31 December 2023: TL 6,086,542) that are expected to readily generate cash inflows for managing liquidity risk. Due to the dynamic nature of the underlying businesses, the Group Treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Group’s liquidity reserve (Note 35) and cash and cash equivalents (Note 23) on the basis of expected cash flows. In addition, the Group’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 283 282 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 4. Financial risk management (continued) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. The Group uses derivatives in order to manage market risks. All such transactions are carried at within the guidelines set by the Group Treasury. (i) Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EUR and RMB. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the functional currency of the relevant Group entity. The Group holds a significant portion of its cash and cash equivalent in foreign currencies in order to manage foreign exchange risk. In addition, derivative financial instruments are used to manage exposure to fluctuations in foreign exchange rates and since 1 July 2018 the Company applies hedge accounting. Details of the Company’s foreign exchange risk is disclosed in Note 35. (ii) Interest rate risk The Group’s exposure to interest rate risk is related to its financial assets and liabilities. The Group manage its financial liabilities by providing an appropriate distribution between fixed and floating rate loans. Floating rate exposures can be changed to fixed rate exposures based on short-term and long-term market expectations via financial derivatives. The use of financial derivatives is governed by the Group Treasury’s policies approved by the Audit Committee, which provide written principles on the use of derivatives. The Group’s borrowings and receivables are carried at amortized cost. The borrowings are periodically contractually repriced (Note 35) and are also exposed to the risk of future changes in market interest rates. In calculating the change in fair value attributable to the hedged risk of the floating-rate debt, the Group has made the following assumptions that reflect its current expectations: - Considering the Group's 'Possible' requirements, the USD LIBOR interest rate on which its hedging liabilities are based has not changed as a result of the IBOR reform. - As a result of the IBOR reform, the USD LIBOR interest rate, on which the cash flows of the debt for hedging purposes are carried out, and the swap interest rate on which the hedging transactions are based, have not changed as a result of the IBOR reform. - The group has not retroactively changed its cash flow hedging reserve for the period expected for the implementation of the reforms. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 5. Segment information In accordance with its integrated communication and technology services strategy, Group has reportable segments which are Turkcell Turkiye, Turkcell International and Techfin. While some of these strategic segments offer the same types of services, they are managed separately because they operate in different geographical locations and are affected by different economic conditions. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker function is carried out by the Board of Directors, however Board of Directors may transfer the authorities, other than recognized by the law, to the General Manager and other directors. Turkcell Turkiye reportable segment includes mobile, fixed telecom, digital services and digital business services operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri A.S. (“Turkcell Superonline”), Turkcell Satis A.S’s (“Turkcell Satis”) digital business services, Turkcell Dijital Is Servisleri A.S. (“Turkcell Dijital”), group call center operations of Global Bilgi Pazarlama Danismanlik ve Cagri Servisi Hizmetleri A.S. (“Turkcell Global Bilgi”), Turktell Bilisim Servisleri A.S. (“Turktell”), Atmosware Teknoloji Egitim ve Danismanlik A.S (“Atmosware Teknoloji”), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (“Turkcell Teknoloji”), Ultia Teknoloji Yazilim ve Uygulama Gelistirme Ticaret A.S. (“Ultia”), Kule Hizmet ve Isletmecilik A.S. (“Global Tower”), Rehberlik Hizmetleri Servisi A.S. (“Rehberlik”), Turkcell Gayrimenkul Hizmetleri A.S. (“Turkcell Gayrimenkul”), Lifecell Dijital Servisler ve Cozumler A.S. (“Lifecell Dijital Servisler”), Lifecell Bulut Cozumleri A.S. (“Lifecell Bulut”), Lifecell TV Yayin ve Icerik Hizmetleri A.S. (“Lifecell TV”), Lifecell Muzik Yayin ve Iletim A.S. (“Lifecell Muzik”) and BiP Iletisim Teknolojileri ve Dijital Servisler A.S. (“BiP A.S.”). Turkcell International reportable segment includes telecom and digital services related operations of CJSC Belarusian Telecommunications Network (“BeST”), Kibris Mobile Telekomunikasyon Limited Sirketi (“Kibris Telekom”), East Asian Consortium B.V. (“Eastasia”), Lifecell Ventures Cooperatief U.A (“Lifecell Ventures”), Lifetech LLC (“Lifetech”), Beltower LLC (“Beltower”), Lifecell Digital Limited (“Lifecell Digital”), Yaani Digital BV (“Yaani”) and BiP Digital Communication Technologies B.V (“BiP B.V.”). Techfin reportable segment includes all financial services operations of Turkcell Finansman, Turkcell Odeme, Paycell, Paycell Europe, Turkcell Sigorta and Turkcell Dijital Sigorta. The operations of these legal entities aggregated into one reportable segment as the nature of services are similar and most of them share similar economic characteristics. Other reportable segment mainly comprises of non-group call center operations of Turkcell Global Bilgi, Turkcell Enerji, Boyut Enerji, Turkcell GSYF, Turkcell Dijital Egitim Teknolojileri A.S. (“Dijital Egitim”). W3 Labs Yeni Teknolojiler A.S. ("W3") and Turkcell Satis’s other operations. The Board primarily uses adjusted EBITDA to assess the performance of the operating segments. Adjusted EBITDA definition includes revenue, cost of revenue excluding depreciation and amortization, selling and marketing expenses and administrative expenses. Adjusted EBITDA is not a financial measure defined by IFRS as a measurement of financial performance and may not be comparable to other similarly-titled indicators used by other companies. Reconciliation of Adjusted EBITDA to the consolidated profit for the year is included in the accompanying notes. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 285 284 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2023 unless otherwise stated.) 5. Segment information (continued) 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Total segment revenue 143,771,701 132,760,385 4,014,854 3,790,933 8,633,753 6,596,195 13,443,380 14,671,415 (3,192,324) (3,165,897) 166,671,364 154,653,031 Inter-segment revenue (1,242,115) (1,129,650) (138,877) (218,173) (816,397) (599,563) (994,935) (1,218,511) 3,192,324 3,165,897 - - Revenues from external customers 142,529,586 131,630,735 3,875,977 3,572,760 7,817,356 5,996,632 12,448,445 13,452,904 - - 166,671,364 154,653,031 Adjusted EBITDA 66,447,440 58,709,420 1,473,181 1,404,598 2,174,255 2,320,938 152,667 1,281,881 (445,533) (367,600) 69,802,010 63,349,237 IFRS 9 impairment loss provision (816,347) (1,328,887) (5,361) (8,742) (198,699) (118,363) (823) 417 - - (1,021,230) (1,455,575) Consolidated Turkcell Turkiye Turkcell International Techfin Other Intersegment Eliminations 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Total segment revenue 132,760,385 112,545,775 3,790,933 3,859,327 6,596,195 5,118,775 14,671,415 19,575,574 (3,165,897) (6,124,292) 154,653,031 134,975,159 Inter-segment revenue (1,129,650) (599,381) (218,173) (344,930) (599,563) (382,373) (1,218,511) (4,797,608) 3,165,897 6,124,292 - - Revenues from external customers 131,630,735 111,946,394 3,572,760 3,514,397 5,996,632 4,736,402 13,452,904 14,777,966 - - 154,653,031 134,975,159 Adjusted EBITDA 58,709,420 47,313,804 1,404,598 1,286,695 2,320,938 2,525,944 1,281,881 1,874,517 (367,600) (147,166) 63,349,237 52,853,794 IFRS 9 impairment loss provision (1,328,887) (804,984) (8,742) (7,223) (118,363) (82,785) 417 (3,012) - - (1,455,575) (898,004) Turkcell Turkiye Turkcell International Techfin Other Intersegment Eliminations Consolidated TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 5. Segment information (continued) 31 December 2024 31 December 2023 31 December 2022 Profit for the period 11,086,899 15,250,110 8,715,404 Add/(Less): Income tax expense 4,866,033 (6,750,994) (4,021,332) Finance income (10,378,433) (18,283,669) (5,714,055) Finance costs 17,025,890 28,777,024 17,252,049 Other income (251,419) (1,274,549) (503,315) Other expenses 2,577,904 8,154,995 2,031,367 Monetary (gain) loss (5,850,537) (5,510,752) (11,214,047) Depreciation and amortization 47,563,030 45,189,101 47,061,700 Share of loss/(gain) of equity accounted investees 3,162,643 (2,202,029) (753,977) Consolidated adjusted EBITDA 69,802,010 63,349,237 52,853,794 Geographical information In presenting the information based on geographical segments, segment revenue is based on the geographical location of operations and segment assets are based on the geographical location of the assets. 31 December 2024 31 December 2023 31 December 2022 Revenues Turkiye 162,795,387 151,080,271 131,460,764 Belarus 2,176,452 1,999,047 2,223,565 Turkish Republic of Northern Cyprus 1,663,255 1,527,751 1,234,531 Netherlands 36,270 45,962 56,299 166,671,364 154,653,031 134,975,159 31 December 2024 31 December 2023 Non-current assets Turkiye 225,084,618 202,561,786 Belarus 1,067,959 1,077,448 Turkish Republic of Northern Cyprus 2,474,577 4,400,398 Unallocated non-current assets 1,955,829 641,252 230,582,983 208,680,884 Prior to classification to asset held for sale and discontinued operations, Ukrainian entities revenues and non- current assets were presented within above tables. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 287 286 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 6. Revenue 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Telecommunication services 137,233,847 124,213,915 3,644,353 3,300,434 - - - - (215,323) (289,815) 140,662,877 127,224,534 Equipment revenues 4,915,963 7,192,829 205,107 264,350 - - 8,717,473 9,118,647 (110,063) (124,245) 13,728,480 16,451,581 Revenue from financial services - - - - 8,633,753 6,596,195 - - (816,396) (599,563) 7,817,357 5,996,632 Other 1,621,891 1,353,641 165,394 226,149 - - 4,725,907 5,552,768 (2,050,542) (2,152,274) 4,462,650 4,980,284 Total 143,771,701 132,760,385 4,014,854 3,790,933 8,633,753 6,596,195 13,443,380 14,671,415 (3,192,324) (3,165,897) 166,671,364 154,653,031 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Telecommunication services 124,213,915 105,968,139 3,300,434 3,286,225 - - - - (289,815) (247,076) 127,224,534 109,007,288 Equipment revenues 7,192,829 5,947,208 264,350 255,552 - - 9,118,647 9,943,083 (124,245) (55,958) 16,451,581 16,089,885 Revenue from financial services - - - - 6,596,195 5,118,775 - - (599,563) (382,372) 5,996,632 4,736,403 Other 1,353,641 630,428 226,149 317,550 - - 5,552,768 9,632,491 (2,152,274) (5,438,886) 4,980,284 5,141,583 Total 132,760,385 112,545,775 3,790,933 3,859,327 6,596,195 5,118,775 14,671,415 19,575,574 (3,165,897) (6,124,292) 154,653,031 134,975,159 Turkcell Turkiye Turkcell International Techfin Other Intersegment Eliminations Consolidated Consolidated Turkcell Turkiye Turkcell International Techfin Other Intersegment Eliminations Revenue from financial services comprise of interest income generated from consumer financing activities, The Group has interest income amounting to TL 4,167,844, TL 2,922,027 and TL 2,232,764, for the years ended 31 December 2024, 2023 and 2022, respectively. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 6. Revenue (continued) Turkcell Turkiye Turkcell International Techfin Other Intersegment eliminations Consolidated Telecommunication Services 137,233,847 3,644,353 - - (215,323) 140,662,877 At a point in time 887,950 72,178 - - - 960,128 Over time 136,345,897 3,572,175 - - (215,323) 139,702,749 Equipment Related 4,915,963 205,107 - 8,717,473 (110,063) 13,728,480 At a point in time 4,281,719 205,107 - 8,717,473 (110,063) 13,094,236 Over time 634,244 - - - - 634,244 Revenue from financial operation - - 8,633,753 - (816,396) 7,817,357 At a point in time - - 4,347,028 - (751,860) 3,595,168 Over time - - 4,286,725 - (64,536) 4,222,189 Other 1,621,891 165,394 - 4,725,907 (2,050,542) 4,462,650 At a point in time 4,714 37,084 - 329,063 (3,650) 367,211 Over time 1,617,177 128,310 - 4,396,844 (2,046,892) 4,095,439 Total 143,771,701 4,014,854 8,633,753 13,443,380 (3,192,324) 166,671,364 At a point in time 5,174,383 314,369 4,347,028 9,046,536 (865,573) 18,016,743 Over time 138,597,318 3,700,485 4,286,725 4,396,844 (2,326,751) 148,654,621 31 December 2024 Turkcell Turkiye Turkcell International Techfin Other Intersegment eliminations Consolidated Telecommunication Services 124,213,915 3,300,434 - - (289,815) 127,224,534 At a point in time 2,102,697 96,637 - - (152) 2,199,182 Over time 122,111,218 3,203,797 - - (289,663) 125,025,352 Equipment Related 7,192,829 264,350 - 9,118,647 (124,245) 16,451,581 At a point in time 6,451,674 264,350 - 9,118,647 (124,245) 15,710,426 Over time 741,155 - - - - 741,155 Revenue from financial operation - - 6,596,195 - (599,563) 5,996,632 At a point in time - - 3,211,743 - (543,020) 2,668,723 Over time - - 3,384,452 - (56,543) 3,327,909 Other 1,353,641 226,149 - 5,552,768 (2,152,274) 4,980,284 At a point in time 543 45,013 - 167,627 (75) 213,108 Over time 1,353,098 181,136 - 5,385,141 (2,152,199) 4,767,176 Total 132,760,385 3,790,933 6,596,195 14,671,415 (3,165,897) 154,653,031 At a point in time 8,554,914 406,000 3,211,743 9,286,274 (667,492) 20,791,439 Over time 124,205,471 3,384,933 3,384,452 5,385,141 (2,498,405) 133,861,592 31 December 2023 Turkcell Turkiye Turkcell International Techfin Other Intersegment eliminations Consolidated Telecommunication Services 105,968,139 3,286,225 - - (247,076) 109,007,288 At a point in time 911,193 113,330 - - (331) 1,024,192 Over time 105,056,946 3,172,895 - - (246,745) 107,983,096 Equipment Related 5,947,208 255,552 - 9,943,083 (55,958) 16,089,885 At a point in time 5,308,868 255,552 - 9,943,083 (55,958) 15,451,545 Over time 638,340 - - - - 638,340 Revenue from financial operation - - 5,118,775 - (382,372) 4,736,403 At a point in time - - 2,341,457 - (382,360) 1,959,097 Over time - - 2,777,318 - (12) 2,777,306 Other 630,428 317,550 - 9,632,491 (5,438,886) 5,141,583 At a point in time 17,101 9,700 - 96,573 (13,143) 110,231 Over time 613,327 307,850 - 9,535,918 (5,425,743) 5,031,352 Total 112,545,775 3,859,327 5,118,775 19,575,574 (6,124,292) 134,975,159 At a point in time 6,237,162 378,582 2,341,457 10,039,656 (451,792) 18,545,065 Over time 106,308,613 3,480,745 2,777,318 9,535,918 (5,672,500) 116,430,094 31 December 2022 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 289 288 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 7. Other income and expense Recognized in the statement of profit or loss: 31 December 2024 31 December 2023 31 December 2022 Depositary reimbursement 88,917 157,173 150,923 Insurance compensation - 395,371 - Income from equipment donations - 296,042 - Rent income 8,979 38,271 55,932 Non-interest income from banks - 1,287 24,824 Other 153,523 386,405 271,636 Other income 251,419 1,274,549 503,315 Revaluation tax expense - (2,166) (599,665) Distributor restructuring cost (**) (1,207,319) - - Donation expenses (*) (734,465) (5,659,025) (386,734) Litigation expenses (155,435) (1,065,903) (225,257) Loss on cancellation of lease contract (222,958) (211,606) (248,920) Loss on sale of fixed assets (35,598) (23,072) (51,257) Restructuring cost (38,248) (668,099) (17,494) Other (183,881) (525,124) (502,040) Other expense (2,577,904) (8,154,995) (2,031,367) (*) The donation expenses mainly relate to the donation payment made on 6 February 2023, following the devastating earthquake disaster centered in Kahramanmaraş. This donation payment was made in accordance with the opportunity granted by the Capital Markets Board's decision dated 9 February 2023. (**) Expenses resulting from company's restructuring of distributors across Turkey, the number of distributors has been reduced from two to one. 8. Employee benefit expenses 31 December 2024 31 December 2023 31 December 2022 Wages and salaries (*) 26,106,217 19,977,254 13,992,302 Defined benefit plan (**) 374,072 442,776 200,457 Defined contribution plans 95,366 109,007 152,990 26,575,655 20,529,037 14,345,749 (*) Wages and salaries include compulsory social security contributions, bonuses and share based payments. (**) Remeasurements of defined benefit plans for the years ended 31 December 2024, 2023 and 2022 amounting to TL 176,940, TL 216,217 and TL 2,634,729 respectively are reflected in other comprehensive income. Employee benefit expenses are recognized in cost of revenue, selling and marketing expenses and administrative expenses. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 9. Finance income and costs Recognized in the statement of profit or loss: 31 December 2024 31 December 2023 31 December 2022 Interest income 7,539,961 4,502,121 3,070,183 Income from financial assets carried at fair value 1,706,465 6,648,585 2,510,355 Cash flow hedges – reclassified to profit or loss (*) - 4,746,542 - Net fair value gains on derivative financial instruments and interest - 1,652,279 - Other 1,132,007 734,142 133,517 Finance income 10,378,433 18,283,669 5,714,055 Net foreign exchange losses (3,753,432) (20,236,739) (10,330,380) Net interest expenses for financial assets and liabilities measured at amortized cost (11,456,857) (8,427,797) (6,164,873) Net fair value losses on derivative financial instruments and interest (1,148,598) - (9,501,159) Cash flow hedges – reclassified to profit or loss (*) (613,555) - 9,028,985 Other (53,448) (112,488) (284,622) Finance costs (17,025,890) (28,777,024) (17,252,049) Monetary gain (loss) 5,850,537 5,510,752 11,214,047 Net finance costs (796,920) (4,982,603) (323,947) (*) Reclassification adjustments relating to cash flow hedge are TL 142,580, TL 5,317,587 and TL 10,292,928 and reclassification adjustments relating to cost of hedging reserve are TL (756,135), TL (571,045) and TL (1,263,943) for the years ended 31 December 2024, 2023, 2022 respectively. Net foreign exchange losses mainly include foreign exchange losses on borrowings, bonds issued and foreign exchange gains on cash and cash equivalents. Interest income and expense on financial assets and liabilities measured at amortized cost are shown as netted on consolidated statement of profit or loss. The Group has gross interest income on financial assets measured at amortized cost and fair value through other comprehensive income and interest expense on financial liabilities measured at amortized cost amounting to TL 1,662,613, TL (13,119,470), TL 1,116,928, TL (9,544,725), and TL 1,767,578, TL (7,932,451) for the years ended 31 December 2024, 2023 and 2022, respectively. Foreign exchange gains and losses are shown as netted on consolidated statement of profit or loss. The company has gross foreign exchange gains and losses amounting to TL 11,389,863, TL (15,143,295), TL 30,445,505 TL (50,682,245) and TL 22,785,893, TL (33,116,273) for the years ended 31 December 2024, 2023 and 2022, respectively. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 291 290 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 10. Income tax expense 31 December 2024 31 December 2023 31 December 2022 Current income tax expense (3,302,541) (986,192) (1,248,214) Deferred income tax expense (1,563,492) 7,737,186 5,269,546 Total income tax expense (4,866,033) 6,750,994 4,021,332 Income tax relating to each component of other comprehensive income 31 December 2024 Before tax Tax (expense) / benefit Net of tax Foreign currency translation differences (7,293,767) - (7,293,767) Change in cash flow hedge reserve (514,553) 122,397 (392,156) Change in cost of hedging reserve 1,511,265 (377,816) 1,133,449 Fair value reserve 100,930 (25,233) 75,697 Hedges of net investments in foreign operations 1,632,047 (408,012) 1,224,035 Remeasurements of defined benefit plan (176,940) 44,177 (132,763) (4,741,018) (644,487) (5,385,505) 31 December 2023 Before tax Tax (expense) / benefit Net of tax Foreign currency translation differences 4,129,565 (708,985) 3,420,580 Change in cash flow hedge reserve 2,271,364 36,819 2,308,183 Change in cost of hedging reserve (562,159) 395,647 (166,512) Fair value reserve 215,993 (7,961) 208,032 Hedges of net investments in foreign operations (3,382,331) 1,705,773 (1,676,558) Remeasurements of defined benefit plan (216,218) 219,713 3,495 2,456,214 1,641,006 4,097,220 31 December 2022 Before tax Tax (expense) / benefit Net of tax Foreign currency translation differences (1,080,920) (1,280,907) (2,361,827) Change in cash flow hedge reserve 3,301,693 (129,706) 3,171,987 Change in cost of hedging reserve (3,133,985) 626,797 (2,507,188) Fair value reserve (176,141) 51,959 (124,182) Hedges of net investments in foreign operations (752,112) 635,461 (116,651) Remeasurements of defined benefit plan (2,634,730) 525,362 (2,109,368) (4,476,195) 428,966 (4,047,229) TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 10. Income tax expense (continued) Reconciliation of income tax expense 31 December 2024 31 December 2023 31 December 2022 Profit from continuing operations before income tax expense 15,952,932 8,499,116 4,694,072 Profit before income tax expense 15,952,932 8,499,116 4,694,072 Tax at the Turkiye’s tax rate (3,988,233) (2,124,779) (1,079,637) Difference in overseas tax rates 110,336 147,241 211,550 Effect of exemptions (*) 3,130,417 2,849,329 1,793,820 Effect of amounts which are not deductible and permanent differences 3,544,601 (909,418) (633,510) Change in unrecognized deferred tax assets (**) (3,242,154) 308,452 (333,765) Adjustments for current tax of prior years (50,230) 120,388 23,038 Effect of increase in corporate tax rate in Turkiye - (1,540,146) 560,340 Tax effect of investment in associate and joint venture 546,025 (592,708) (112,923) Tax effect of Law No 7440 (***) - (407,988) - Inflation adjustments (4,847,375) 8,895,367 3,597,035 Other (69,420) 5,256 (4,616) Total income tax expense (4,866,033) 6,750,994 4,021,332 (*) Effect of exemptions mainly consist of R&D discounts and exemptions due to capital investments. (**) Net deferred tax assets not reflected in the statement of financial position mainly consist of unused current period losses on which no deferred tax asset has been recognized. (***) In accordance with the Law No. 7440 on the “Restructuring of Certain Receivables and Amending Certain Laws” published in the Official Gazette on 12 March 2023, it has been decided that an additional tax of 10% should be calculated over the deduction amounts (included in 2022 tax returns) and tax bases subject to reduced corporate tax. An amendment to Turkey's Corporate Tax Law (No. 5520) was submitted on July 5, 2023, and published in the Official Gazette on July 15, 2023. According to this; the corporate tax rate has been increased from 20% to 25% for companies, 25% to 30% for banks, and companies within the scope of Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies. New tax rates became effective starting from the declarations that was submitted as of 1 October 2023 but it is applied for the annual taxable income. Previously, corporate tax rates in Türkiye were 23% for the year 2022 and 25% for the year 2021. These corporate rates were enacted with a temporary article that was added to the Turkiye’s Corporate Tax Law No. 5220 on 22 April 2021. This Law increased the corporate tax rate under Corporate Tax Law from 20% to 25% for the tax year 2021 and to 23% for the tax year 2022. Based on this Law, corporate tax rate would continue with 20% starting 1 January 2023 so as of 31 December 2021 and 2022, for temporary difference that are expected to be reversed in 2023 onwards 20% tax rate was used to recognised deferred taxes. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 293 292 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 10. Income tax expense (continued) In addition, with the publication of the Law No. 7394 in the Official Gazette on 15 April 2022, corporate tax rates of banks, consumer finance companies, factoring and financial leasing companies, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies has been permanently increased to 25%, which became effective immediately for 2022 annual taxable income.In accordance with the "General Communiqué on Tax Procedure Law No: 555" published in the Official Gazette on 30 December 2023 and the repeated article 298 of the Tax Procedure Law No: 213, it is declared that the (tax base) financial statements of the entities operating in Turkiye should be subject to inflation adjustment as of 31 December 2023. The inflation adjusted (tax base) financial statements will constitute an opening balance sheet base for tax returns to be prepared starting from 1 January 2024 and opening balance sheet inflation effects will not be taken into consideration in the calculation of 2023 corporate tax charge In Turkiye, the transfer pricing provisions have been stated under Article 13 of Corporate Tax Law with the heading of “disguised profit distribution via transfer pricing”. The General Communiqué on disguised profit distribution via Transfer Pricing, dated 18 November 2007 sets out the details of implementation. If a taxpayer enters into transactions regarding the sale or purchase of goods and services with related parties, where the prices are not set in accordance with arm's length principle, then related profits are considered to be distributed in a disguised manner through transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as tax deductible for corporate income tax purposes. The deduction of 100% of the research and development expenses is allowed when the taxpayers made these expenditures exclusively for new technology and information researches. Dividend payments of Turkish resident corporations to Turkish real persons, foreign corporations and foreign real persons are subject to 10% withholding tax. It is possible to apply reduced withholding tax rate for dividend payments made to abroad, under the scope of provisions of an applicable double taxation treaty. On the other hand, dividend payments made to Turkish resident companies are not subject to withholding tax. Dividend income of Turkish taxpayers received from other Turkish taxpayers is exempted from corporate tax. However, dividends received from participation shares and stocks of fund and investment partnerships cannot utilize from this exemption. 75% of the gains from the sale of equity shares held by corporations for at least two years, as well as founder shares, usufructuary rights, and pre-emptive rights held for the same period, are exempt from corporate tax. 50% of the gains from the sale of immovable properties held in the assets of corporations for two years are also exempt from corporate tax. With the publication of Law No. 7456 in the Official Gazette on 15 July 2023, the rate has been reduced to 25% for immovable properties held in the assets before 15 July 2023, and the exemption application has been terminated for real estate acquired after 15 July 2023. To benefit from the exemption, the gain must be kept in a fund account on the liabilities side and not withdrawn from the business for 5 years. The sale price must be collected by the end of the second calendar year following the sale. The Group has applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 11. Expenses by nature Breakdown of expenses by nature for the years ended 31 December 2024, 2023 and 2022 is as follows: Cost of revenue: 31 December 2024 31 December 2023 31 December 2022 Depreciation and amortization (*) (47,563,030) (45,189,101) (47,061,700) Cost of goods sold (12,182,412) (15,441,587) (15,521,569) Share of Turkish Treasury (14,821,032) (13,413,178) (11,247,895) Employee benefit expenses (15,414,658) (12,196,530) (8,670,401) Interconnection and termination expenses (4,491,621) (5,710,941) (7,495,929) Energy expenses (4,464,183) (5,308,700) (6,598,219) Radio expenses (2,090,696) (1,976,264) (1,436,111) Frequency expenses (5,440,768) (4,944,635) (4,122,272) Transmission expenses (1,925,475) (2,115,653) (2,216,304) Roaming expenses (1,513,595) (1,638,439) (1,584,388) Universal service fund (1,953,063) (1,793,768) (1,566,928) Cost of revenue from financial services (**) (4,501,493) (2,672,321) (1,538,422) Maintenance and repair expenses (1,194,426) (1,063,895) (1,058,016) Internet expense (1,507,043) (1,712,690) (1,808,639) Datacenter expenses (13,386) (59,857) (948,903) Others (6,465,733) (6,644,163) (5,054,225) (125,542,614) (121,881,722) (117,929,921) (*) As at 31 December 2024, depreciation and amortization expenses include depreciation and amortization expenses related to the financial services amounting to TL 606,930 (31 December 2023: TL 471,929 and 31 December 2022: TL 367,739). (**) As at 31 December 2024, cost of revenue from financial services includes employee benefit expenses related to the financial services amounting to TL 330,210 (31 December 2023: TL 269,069 and 31 December 2022: TL 190,993). Selling and marketing expenses: 31 December 2024 31 December 2023 31 December 2022 Employee benefit expenses (5,837,216) (4,532,805) (3,045,683) Marketing expenses (4,133,666) (2,843,881) (2,598,652) Selling expenses (527,125) (442,832) (524,475) Others (450,671) (384,584) (462,208) (10,948,678) (8,204,102) (6,631,018) Administrative expenses: 31 December 2024 31 December 2023 31 December 2022 Employee benefit expenses (4,993,571) (3,530,633) (2,438,672) Consultancy expenses (327,385) (297,541) (329,147) Service expenses (266,841) (227,629) (198,849) Maintenance and repair expenses (105,056) (103,594) (126,193) Collection expenses (301,800) (186,048) (130,001) Travel and entertainment expenses (172,857) (120,415) (90,750) Utility expenses (9,548) (11,558) (56,895) Others (742,804) (474,078) (353,615) (6,919,862) (4,951,496) (3,724,122) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 295 294 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 11. Expenses by nature (continued) Net impairment losses on financial and contract assets: 31 December 2024 31 December 2023 31 December 2022 Net impairment losses on financial and contract assets (1,021,230) (1,455,575) (898,004) (1,021,230) (1,455,575) (898,004) TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 12. Property, plant and equipment Cost Balance at 1 January 2024 Additions Disposals Transfers Asset Held for Sale Impairment expenses/ (reversals) Transfer to investment property Effects of movements in exchange rates Balance at 31 December 2024 Network infrastructure (All operational) 262,524,269 6,661,908 (6,928,047) 14,215,645 - - - (1,652,429) 274,821,346 Land and buildings 16,554,828 1,575,790 (32,410) 3,071,341 - - - (230,093) 20,939,456 Equipment, fixtures and fittings 17,282,003 1,741,655 (709,955) 409,490 - - - (654,412) 18,068,781 Motor vehicles 272,091 15,630 (25,244) - - - - (7,786) 254,691 Leasehold improvements 5,463,625 74,651 (1,114) 22,109 - - - (195) 5,559,076 Electricity production power plant 489,643 4,546 - - - - - 19 494,208 Construction in progress 3,520,523 19,287,242 (83,315) (17,682,695) - - - (25,189) 5,016,566 Total 306,106,982 29,361,422 (7,780,085) 35,890 - - - (2,570,085) 325,154,124 Accumulated depreciation Network infrastructure (All operational) 183,042,029 17,105,348 (5,638,083) - - 16,611 - (2,466,196) 192,059,709 Land and buildings 4,127,782 775,368 - - - - - (125,484) 4,777,666 Equipment, fixtures and fittings 17,521,935 1,832,636 (153,228) - - 2 - (1,162,731) 18,038,614 Motor vehicles 257,078 26,288 (22,177) - - - - (43,147) 218,042 Leasehold improvements 4,905,519 443,277 (21) - - - - 1,467 5,350,242 Electricity production power plant 23,833 25,321 - - - - - 34,953 84,107 Total 209,878,176 20,208,238 (5,813,509) - - 16,613 - (3,761,138) 220,528,380 Net book value 96,228,806 9,153,184 (1,966,576) 35,890 - (16,613) - 1,191,053 104,625,744 Depreciation expenses for the years ended 31 December 2024 and 2023 amounting to TL 20,224,851 and TL 17,235,704 respectively include impairment losses and are recognized in cost of revenue. Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments. Gain from impairment losses reversal on property, plant and equipment for the year ended 31 December 2024 is TL 16,613 and is recognized under depreciation expenses (31 December 2023 impairment loss: TL 35,796). TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 297 296 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 12. Property, plant and equipment (continued) Cost Balance at 1 January 2023 Additions Disposals Transfers Asset Held for Sale Impairment expenses/ (reversals) Transfer to investment property Effects of movements in exchange rates Balance at 31 December 2023 Network infrastructure (All operational) 272,692,565 7,807,662 (3,963,934) 10,742,609 (21,562,779) - - (3,191,854) 262,524,269 Land and buildings 14,440,765 2,173,950 (32,572) 75,698 (143,545) - 204,167 (163,635) 16,554,828 Equipment, fixtures and fittings 16,322,521 1,694,639 (257,563) 464,988 (249,176) - - (693,406) 17,282,003 Motor vehicles 250,342 44,319 (12,044) 295 (3,572) - - (7,249) 272,091 Leasehold improvements 5,401,828 102,035 (788) (3) (36,366) - - (3,081) 5,463,625 Electricity production power plant (Note 3) 489,643 - - - - - - - 489,643 Construction in progress 5,515,742 10,417,845 (132,938) (12,038,902) (529,600) 1,262 - 287,114 3,520,523 Total 315,113,406 22,240,450 (4,399,839) (755,315) (22,525,038) 1,262 204,167 (3,772,111) 306,106,982 Accumulated depreciation Network infrastructure (All operational) 187,851,459 13,111,126 (3,925,764) - (13,834,432) (34,198) - (126,162) 183,042,029 Land and buildings 2,861,457 980,232 (11,903) - (101,293) (316) 163,899 235,706 4,127,782 Equipment, fixtures and fittings 16,022,790 3,057,392 (183,416) - (183,352) (20) - (1,191,459) 17,521,935 Motor vehicles 233,069 45,352 (11,428) - (2,970) - - (6,945) 257,078 Leasehold improvements 4,886,988 52,718 - - (32,067) - - (2,120) 4,905,519 Electricity production power plant (Note 3) 34,912 24,680 - - - - - (35,759) 23,833 Total 211,890,675 17,271,500 (4,132,511) - (14,154,114) (34,534) 163,899 (1,126,739) 209,878,176 Net book value 103,222,731 4,968,950 (267,328) (755,315) (8,370,924) 35,796 40,268 (2,645,372) 96,228,806 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 13. Intangible assets Cost Balance at 1 January 2024 Additions Disposals Transfers Acquisition through business combination Impairment expenses/ (reversals) Effects of movements in exchange rates Balance at 31 December 2024 Telecommunication licenses 98,620,686 1,026 (62,746) - - - 14,376 98,573,342 Computer software 149,697,122 10,551,603 (32,933) 292,253 - - 888,707 161,396,752 Transmission line software 1,520,659 1,119 (506) - - - 17,288 1,538,560 Indefeasible right of usage 1,466,364 110,686 - - - - - 1,577,050 Brand name 15,547 - - - - - (3,402) 12,145 Customer base 56,445 - - - - - (6,764) 49,681 Goodwill 588,963 - - - - - - 588,963 Subscriber acquisition cost 55,611,955 7,374,968 - - - - 337,050 63,323,973 Electricity production license 964,442 - - - - - (93,340) 871,102 Others 1,800,954 282,042 (1,989) (35,890) - - 68,348 2,113,465 Construction in progress 378,599 293,744 (1,632) (292,253) - - (14,440) 364,018 Total 310,721,736 18,615,188 (99,806) (35,890) - - 1,207,823 330,409,051 Accumulated amortization Telecommunication licenses 69,428,856 5,688,680 (14,921) - - - 159,167 75,261,782 Computer software 115,515,868 8,552,534 (10,454) - - 118,174 534,620 124,710,742 Transmission line software 1,506,223 32,121 - - - - 13,617 1,551,961 Indefeasible right of usage 927,884 74,573 (1,369) - - - (810) 1,000,278 Brand name 14,170 - - - - - (11,395) 2,775 Customer base 40,920 631 - - - - (15,568) 25,983 Subscriber acquisition cost 37,496,661 7,460,472 - - - - (537,653) 44,419,480 Electricity production license 75,717 43,678 - - - - 17,972 137,367 Others 1,237,399 223,594 (1,764) - - 773 (33,681) 1,426,321 Total 226,243,698 22,076,283 (28,508) - - 118,947 126,269 248,536,689 Net book value 84,478,038 (3,461,095) (71,298) (35,890) - (118,947) 1,081,554 81,872,362 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 299 298 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 13. Intangible assets (continued) Cost Balance at 1 January 2023 Additions Disposals Transfers Acquisition through business combination Impairment expenses/ (reversals) Effects of movements in exchange rates Balance at 31 December 2023 Telecommunication licenses 101,284,877 5,216,431 (86,334) 262,501 (7,434,755) - (622,034) 98,620,686 Computer software 138,268,118 11,418,517 (250,178) 654,440 (1,963,228) - 1,569,453 149,697,122 Transmission line software 1,488,153 1,403 (5,325) - - - 36,428 1,520,659 Indefeasible right of usage 1,462,116 4,249 - - - - (1) 1,466,364 Brand name 16,303 77 (71) 271 (886) - (147) 15,547 Customer base 70,698 - - - - - (14,253) 56,445 Goodwill 606,037 - - - - (10,361) (6,713) 588,963 Subscriber acquisition cost 49,237,523 7,263,978 (180,615) - (830,279) - 121,348 55,611,955 Electricity production license 1,024,900 - - - - - (60,458) 964,442 Others 1,614,237 238,131 (1,242) (33,294) (232) - (16,646) 1,800,954 Construction in progress 109,604 536,249 (191,947) (128,603) (1,255) - 54,551 378,599 Total 295,182,566 24,679,035 (715,712) 755,315 (10,230,635) (10,361) 1,061,528 310,721,736 Accumulated amortization Telecommunication licenses 68,226,836 6,172,793 (6,881) - (4,611,507) - (352,385) 69,428,856 Computer software 105,290,313 9,277,415 (195,150) - (295,352) 22,691 1,415,951 115,515,868 Transmission line software 1,465,803 37,976 (5,325) - - - 7,769 1,506,223 Indefeasible right of usage 837,147 91,395 - - - - (658) 927,884 Brand name 23,840 94 (30) - (491) - (9,243) 14,170 Customer base 50,607 2,895 - - - - (12,582) 40,920 Subscriber acquisition cost 29,407,136 9,214,832 (180,615) - (558,856) - (385,836) 37,496,661 Electricity production license 14,348 43,555 - - - - 17,814 75,717 Others 1,075,416 188,860 (1,185) - (212) 689 (26,169) 1,237,399 Total 206,391,446 25,029,815 (389,186) - (5,466,418) 23,380 654,661 226,243,698 Net book value 88,791,120 (350,780) (326,526) 755,315 (4,764,217) (33,741) 406,867 84,478,038 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 13. Intangible assets (continued) Amortization expenses for the years ended 31 December 2024 and 2023 amounting to TL 22,195,230 and TL 25,063,556, respectively include impairment losses and are recognized in cost of revenue. Impairment losses on intangible assets for the years ended 31 December 2024 and 2023 are TL 118,947 and TL 33,741, respectively and are recognized in amortization expenses. Computer software includes capitalized software development costs that meet the definition of an intangible asset. The amount of capitalized development costs is TL 3,085,043 for the year ended 31 December 2024 (31 December 2023: TL 2,373,151). Research and development expenses for the years ended 31 December 2024 and 2023 amounting to TL 191,497 and TL 190,994, respectively are recognized in cost of revenue. The carrying amounts of Turkcell’s 2G, 3G and 4.5G licenses are TL 3,764,773, TL 2,620,164 and TL 16,389,670, respectively (31 December 2023: TL 4,650,619, TL 3,275,205 and TL 20,494,839, respectively). 14. Impairment of non-financial assets The Group evaluates whether there is any indication of impairment for an asset on the relevant reporting date. If such an indication exists, the asset's recoverable amount is estimated. If the recoverable amount of the asset or any cash-generating unit (“CGU”) to which the asset belongs exceeds its carrying amount, no impairment loss is recognized. As of 31 December 2024, and 2023, no indication of impairment was found in any CGU of the Group and no impairment test was performed. As explained at Note 3, the Company classified Ukrainian CGU as held-for-sale as of 31 December 2023. Prior to classification to assets held for sale, the Company performed an assessment and did not identify an indication of impairment for Ukrainian CGU. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 301 300 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 15. Investment properties Cost 31 December 2024 31 December 2023 Opening balance 1,716,010 1,920,177 Transfer from property, plant and equipment - (204,167) Closing balance 1,716,010 1,716,010 Accumulated depreciation Opening balance 1,510,465 1,661,616 Transfer from property, plant and equipment - (163,899) Depreciation and impairment charges during the year 18,211 12,748 Closing balance 1,528,676 1,510,465 Net book value 187,334 205,545 Depreciation expenses amounting TL 18,211 for the year ended 31 December 2024 (31 December 2023: TL 12,748) are recognized under cost of revenue. Determination of the fair values of the Group’s investment properties. The Group engages qualified external experts, authorized by the Capital Markets Board of Turkiye, to perform the valuation of investment properties. Management works closely with the qualified external experts to establish the appropriate valuation techniques and inputs to the model. The fair values of these investment properties were determined using a variety of valuation methods: income capitalization approach and market approach. In estimating the fair values of the properties, the highest and best use of the property is its current use. Rent income from investment properties during the year ended 31 December 2024 is TL 6,104 (31 December 2023: TL 34,746). There are no direct operating expenses for investment properties during the year ended 31 December 2024 (31 December 2023: None). TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 15. Investment properties (continued) The Group’s investment properties and their fair values at 31 December 2024 and 2023 are as follows: 31 December 2024 Level 1 Level 2 Level 3 Valuation Method Investment properties in Gebze free zone - - 195,000 Discounted cash flow Investment properties in Ankara - 138,900 - Market approach Investment properties in Adana - 47,000 - Market approach Investment properties in Aydın - 27,000 - Market approach Total - 212,900 195,000 31 December 2023 Level 1 Level 2 Level 3 Valuation Method Investment properties in Gebze free zone - - 236,781 Discounted cash flow Investment properties in Ankara - 139,614 - Market approach Investment properties in Adana - 35,373 - Market approach Investment properties in Aydın - 23,101 - Market approach Total - 198,088 236,781 Significant unobservable inputs and sensitivity of fair values of respective investment properties are as follows: In the “income capitalization” approach, a significant increase/(decrease) in rentals will cause a significant increase/(decrease) in the fair value. In addition, a slight decrease/(increase) in risk premium and discount rate which are calculated by considering current market conditions will cause a significant increase/(decrease) in the fair value. In the “market approach”, a significant increase/(decrease) in the market value of any properties which are located in similar areas with similar conditions will cause a significant increase/(decrease) in the fair value. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 303 302 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 16. Right-of-use assets Closing balances of right-of-use assets as of 31 December 2024 and 31 December 2023 and depreciation and amortization expenses for the years ended 31 December 2024 and 31 December 2023 are as follows: Site Rent Building Network equipment Vehicles Other Tangible Total Right of way License Intangible Total Total Balance at 1 January 2024 5,581,357 1,839,066 296,117 208,800 324,113 8,249,453 608,681 1,080 609,761 8,859,214 Depreciation and amortization charge for the year (2,370,122) (586,709) (1,270,748) (316,959) (303,557) (4,848,095) (146,913) (129,730) (276,643) (5,124,738) Balance at 31 December 2024 5,216,199 1,890,705 251,298 1,580,773 488,143 9,427,118 718,028 28,726 746,754 10,173,872 Site Rent Building Network equipment Vehicles Other Tangible Total Right of way License Intangible Total Total Balance at 1 January 2023 6,703,258 1,647,369 327,389 433,893 485,478 9,597,387 520,448 1,510,871 2,031,319 11,628,706 Depreciation and amortization charge for the year (3,078,463) (453,882) (1,454,769) (257,664) (400,579) (5,645,357) (115,299) (244,734) (360,033) (6,005,390) Balance at 31 December 2023 5,581,357 1,839,066 296,117 208,800 324,113 8,249,453 608,681 1,080 609,761 8,859,214 Tangible Intangible Tangible Intangible As at 31 December 2024, the Company has additions to right-of-use assets amounting to TL 6,841,866 (31 December 2023: TL 5,761,599) and interest expense on lease liabilities amounting to TL 1,146,344 (31 December 2023: TL 1,200,653). Depreciation and amortization expenses amounting to TL 5,124,738 (31 December 2023: TL 6,005,390) are recognized in cost of revenues. As at 31 December 2023, a right of use assets amounting to 1,916,539 TL has been classified as assets held for sale. (Note 3) TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 17. Other assets Other non-current assets 31 December 2024 31 December 2023 Advances given for property, plant and equipment 5,579,973 4,876,960 Deposits and guarantees given 781,399 865,074 Prepaid expenses 269,916 538,810 VAT receivable 378,752 115,525 Others 207,638 220 7,217,678 6,396,589 Other current assets 31 December 2024 31 December 2023 VAT receivable 1,708,430 1,776,387 Prepaid expenses 2,155,974 1,545,878 Prepaid taxes 207,005 567,554 Restricted cash 736,054 1,133,069 Receivables from the Ministry of Transport and Infrastructure of Türkiye - 109,576 Advances given to suppliers 214,192 144,715 Receivables from tax office 280,645 168,796 Others (*) 804,695 149,818 6,106,995 5,595,793 (*) The amount of 677,553 TL consists of deferred receivables related to the subsidiaries disposed of, as presented in Note 3 18. Deferred tax assets and liabilities Recognized deferred tax assets and liabilities Deferred tax assets and liabilities at 31 December 2024 and 2023 are attributable to the following: 2024 2023 2024 2023 2024 2023 Property, plant and equipment and intangible assets 845,181 1,952,945 (10,807,405) (10,229,249) (9,962,224) (8,276,304) Derivative instruments 38,637 56,026 (448,951) (891,094) (410,314) (835,068) Reserve for defined benefit plan and provisions 2,194,978 2,041,197 (569) (42,375) 2,194,409 1,998,822 Tax losses carried forward 1,058,535 2,364,929 - - 1,058,535 2,364,929 Tax allowances 2,111,083 834,428 - - 2,111,083 834,428 Other assets and liabilities (*) 3,650,676 2,481,626 (1,354,032) (239,494) 2,296,644 2,242,132 Deferred tax assets/(liabilities) 9,899,090 9,731,151 (12,610,957) (11,402,212) (2,711,867) (1,671,061) Offsetting (7,361,212) (8,101,477) 7,361,212 8,101,477 - - Net deferred tax assets/(liabilities) 2,537,878 1,629,674 (5,249,745) (3,300,735) (2,711,867) (1,671,061) Assets Liabilities Net (*) Mainly comprises of loans, bonds, prepaid expenses and lease liabilities’ deferred tax effects. Movement in deferred tax assets/ (liabilities) for the years ended 31 December 2024 and 2023 were as follows: 2024 2023 Opening balance, net (1,671,061) (9,036,191) Income statement charge (1,563,492) 7,737,186 Tax charge relating to components of other comprehensive income (644,487) 1,641,006 Transferred to assets held for sale ( Note 3) - (1,899,846) Exchange differences 1,167,173 (113,216) Closing balance, net (2,711,867) (1,671,061) TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 305 304 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 18. Deferred tax assets and liabilities (continued) The Group did not recognize deferred income tax assets of TL 2,434,217 (31 December 2023: TL 2,621,286) in respect of tax losses amounting to TL 12,390,777 (31 December 2023: TL 12,320,113) that can be carried forward against future taxable income because it is not probable that future taxable profits will be available against which unrecognized tax losses can be utilized. The unused tax losses were incurred mainly by BeST. Unused tax losses will expire at the following dates: Expiration Date Amount 2025 4,261,550 2026 179,663 2027 2,423,491 2028 633,291 2029 4,237,579 2030 271,319 2031 337,133 Indefinite 46,751 Total 12,390,777 19. Trade receivables 31 December 2024 31 December 2023 Receivables from subscribers 11,486,814 10,035,178 Undue assigned contracted receivables 1,061,568 902,077 Accounts and notes receivable 3,914,865 4,837,057 16,463,247 15,774,312 Trade receivables are shown net of provision for impairment amounting to TL 622,519 as at 31 December 2024 (31 December 2023: TL 805,115). Movements in provision for impairment of trade receivables and due from related parties are disclosed in Note 35. The accounts and notes receivable represent receivables from distributors and roaming receivables. The Group’s exposure to currency risk and credit risk arising from trade receivables are disclosed in Note 35. Letters of guarantee received with respect to the accounts and notes receivable amounted to TL 2,524,051 and TL 1,483,974 at 31 December 2024 and 2023, respectively. The undue assigned contracted receivables are the remaining portion of the assigned receivables from the distributors related to the handset campaigns which will be collected from subscribers by the Company in instalments. When the monthly instalment is billed to the subscriber, that portion is transferred to “Receivables from subscribers”. The Company measures the undue assigned contracted receivables at amortized cost, bears the credit risk and recognizes interest income throughout the contract period. The undue assigned contracted receivables related to handset campaigns, which will be billed after one year amounted to TL 160,699 (31 December 2023: TL337,022) is presented under non-current trade receivable amounted to TL 328,034 (31 December 2023: TL 470,476). TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 20. Receivables from financial services 31 December 2024 31 December 2023 Non-current receivables from financial services 367,149 856,960 Current receivables from financial services 7,142,345 8,434,770 7,509,494 9,291,730 Movements in provision for impairment of receivables from financial services are disclosed in Note 35. The Group and its distributors have offered handset campaigns where subscribers can buy handsets using loans placed by Turkcell Finansman. The Group assumes credit risk in these transactions. Turkcell Finansman collects the loan from the subscriber during the contract period and the Group does not recognize handset revenue unless it is acting as principal in the handset sale. 21. Contract assets 31 December 2024 31 December 2023 Non-current contract assets 165,004 146,228 Current contract assets 5,200,448 4,608,194 5,365,452 4,754,422 The contract assets represent contract assets from subscribers. Contract asset is recorded when revenue is recognized in advance of the Group’s right to bill and receive consideration. The contract asset will decrease as services are provided and billed. Contract assets also include contracted receivables related to handset campaigns, and the portion which will be billed after one year is presented under non-current contract assets. 22. Inventories As of 31 December 2024, inventories amounting to TL 674,611 which consist of mainly mobile phone and its accessories, tablet, sim-cards, tower construction materials and other electronic products (31 December 2023: TL 780,377). TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 307 306 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 23. Cash and cash equivalents 31 December 2024 31 December 2023 Cash in hand 496 483 Banks 63,671,048 72,225,583 - Demand deposits 4,606,177 6,086,541 - Time deposits 46,690,906 66,139,042 - Receivables from reverse repo 12,373,965 - Impairment loss provision (9,790) (67,410) Other (*) 5,272,579 - 68,934,333 72,158,656 (*) It consists of US Treasury Bills with a maturity on 16 January 2025 and 23 January 2025. As of 31 December 2024, the average effective interest rates of TL, USD, EUR and RMB time deposits are 47.4%, 2.7%, 2.7% and 0.3% (31 December 2023: 42.2%, 4.1%, 3.7% and 0.7%) respectively. As of 31 December 2024, average maturity of time deposits is 35 days (31 December 2023: 39 days). As of 31 December 2024, the effective interest rates of USD receivables from reverse repo are 4.0%. As of 31 December 2024, maturity of receivables from reverse repo is 3 January 2025. Reconciliation of cash and cash equivalents in consolidated statement of cash flows: 31 December 2024 31 December 2023 Cash and cash equivalents 68,934,333 72,158,656 Interest accrual of cash and cash equivalents (280,270) (247,298) Asset held for sale (Note 3) - 5,800,335 Total 68,654,063 77,711,693 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 24. Financial assets The details of financial assets as of 31 December 2024 and 2023 are as follows: Non-current Current Non-current Current Amortized cost - 1,065,899 - - - Time deposits with maturity of more than three months - 1,065,899 - - Fair value through profit or loss 5,961,731 3,573,688 781,797 12,806,149 - Currency protected time deposits (*) - 3,573,688 - 12,806,149 - Investment funds (**) 5,961,731 - 781,797 - Fair value through other comprehensive income 11,852,172 2,241,429 153,075 - - Listed debt securities (***) 11,852,172 2,241,429 153,075 - 17,813,903 6,881,016 934,872 12,806,149 31 December 2024 31 December 2023 (*) In order to prioritize the TL in deposit preferences of savers and to increase the share of TL in banks’ balance sheets, the foreign currency protected deposit and participation account (“CPTD”) scheme was introduced in December 2021 by Ministry of Treasury and Finance of Turkiye (“MoTF”). The CPTD scheme consists of TL accounts to be opened under the support of the MoTF and conversions from foreign currency (FX) deposits to TL accounts to be supported by the CBRT. Savings of TL depositors are hedged against the exchange rate risk with the CPTD scheme supported by the MoTF. The CBRT-supported scheme enables FX deposit account holders to switch to TL deposit accounts. Depositors switching to TL accounts from their foreign currency accounts under the support of the CBRT will be able to continue to hedge their savings against the exchange rate risk by using the MoTF supported scheme at the end of the maturity period. Currency-protected time deposit accounts are classified as financial assets at fair value through profit or loss. The Group has converted its foreign currency deposit account amounting to USD 68,474 and EUR 15,000 into “Currency Protected TL Time Deposit Accounts”. Maturity of currency protected time deposit accounts is 1 year. (**) Investment funds mainly consist of free market funds and Turkcell Venture Capital Investment Fund (GSYF), established by Re-Pie Portfolio Management Inc., as well as the shares and financial assets related to this fund. These funds are measured at fair value, and the corresponding changes in value are recognized in profit or loss. (***) Listed debt securities are classified as financial assets at fair value through other comprehensive income. 31 December 2024 31 December 2023 Fair value hierarchy Valuation technique Financial assets at fair value through other comprehensive income 14,093,601 153,075 Level 1 Pricing models based on quoted market prices at the end of the reporting period, Financial assets at fair value through profit or loss 5,427,500 118,840 Level 1 Pricing models based on quoted market prices at the end of the reporting period, Financial assets at fair value through profit or loss 3,573,688 12,806,149 Level 2 Forward exchange rates at the reporting date Financial assets at fair value through profit or loss 534,231 662,957 Level 3 Pricing models based on discounted cash flow 23,629,020 13,741,021 Fair Values The movement of the financial assets which is shown in Level 3 are as follows: 2024 2023 Opening balance 662,957 567,730 Addition 153,467 27,058 Disposal (137,288) - Remeasurement recognised in profit or loss (144,905) 68,169 Closing balance 534,231 662,957 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 309 308 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 24. Financial assets (continued) As of 31 December 2024, and 2023, the notional and fair value amounts of listed debt securities are as follows: Currency Notional amount (original currency) Fair value (in TL) Maturity USD 135,000 4,712,855 15 May 2034 USD 54,500 2,109,168 16 October 2028 TRY 988,000 1,108,232 12 August 2026 TRY 1,001,000 1,066,790 12 September 2029 EUR 24,500 985,303 21 May 2030 USD 22,500 852,843 12 November 2026 USD 20,000 723,456 23 January 2025 USD 15,000 565,800 1 October 2025 USD 13,000 468,617 12 December 2025 USD 11,500 426,300 5 October 2034 USD 11,000 416,006 16 January 2029 USD 10,000 354,485 3 December 2025 USD 4,500 174,675 19 October 2028 USD 3,620 129,071 31 March 2025 Total listed debt securities 14,093,601 31 December 2024 Currency Notional amount (original currency) Fair value (in TL) Maturity TRY 73,426 153,075 Indefinite Total listed debt securities 153,075 31 December 2023 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 24. Financial assets (continued) As of 31 December 2024, and 2023, the notional and fair value amounts of currency protected time deposits are as follows: Currency Notional amount (original currency) Fair value (in TL) Maturity TRY 1,644,192 2,204,151 25 April 2025 TRY 505,259 650,212 26 February 2025 TRY 246,418 318,588 21 February 2025 TRY 155,895 200,435 28 February 2025 TRY 155,646 200,302 27 February 2025 Total currency protected time deposits 3,573,688 31 December 2024 Currency Notional amount (original currency) Fair value (in TL) Maturity TL 1,191,635 2,501,231 22 February 2024 TL 1,071,635 2,486,610 26 February 2024 TL 955,742 1,668,658 27 February 2024 TL 599,368 1,032,389 26 April 2024 TL 972,020 721,410 10 May 2024 TL 207,853 604,290 12 February 2024 TL 700,000 1,123,365 28 February 2024 TL 428,045 684,812 31 July 2024 TL 269,857 470,494 16 August 2024 TL 274,462 467,039 28 August 2024 TL 229,780 365,499 2 October 2024 TL 140,639 245,793 1 April 2024 TL 94,501 217,423 15 April 2024 TL 94,501 217,136 24 October 2024 Total currency protected time deposits 12,806,149 31 December 2023 During the year, the following gains (losses) were recognized in other comprehensive income. 31 December 2024 31 December 2023 Gains / (Losses) recognized in other comprehensive income Related to financial assets 100,930 215,993 Related to financial assets, tax effect (25,233) (7,961) 75,697 208,032 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 311 310 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 25. Equity Share capital As at 31 December 2024, share capital represents 2,200,000,000 (31 December 2023: 2,200,000,000) authorized, issued and fully paid shares with a par value of TL 1 each. In this respect, share capital presented in the consolidated financial statements refers to nominal amount of registered share capital. Each holder of shares is entitled to receive dividends as declared and their vote entitlements are determined as explained in Note 1. Companies with their shareholding percentage are as follows: (%) TL (%) TL Public Share 53.95 1,187,004 53.95 1,187,004 TVF BTIH 26.20 576,400 26.20 576,400 IMTIS Holdings 19.80 435,600 19.80 435,600 Other 0.05 996 0.05 996 Total 2,200,000 2,200,000 Inflation adjustment to share capital 44,484,221 44,484,221 Inflation adjusted capital 46,684,221 46,684,221 31 December 2024 31 December 2023 As at 31 December 2024, total number of shares pledged as security is 995,509 (2023: 995,509). Legal reserves The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code (“TCC”). The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of a company’s paid-in share capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash dividends in excess of 5% of the paid-in share capital. Under the TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid-in share capital. The Treasury shares In 2024, in accordance with the Board of Directors' share buy-back decisions on 27 July 2016 and the following dates, the Company purchased a total of 1,398 shares at a price level of TRY 98.05 per share on 5 August 2024 and a total of 3,000,000 shares at an average price level of TRY 99.87 per share on 21 August 2024 Treasury shares are recognized by deducting from equity. The amounts are historical amounts that have not been indexed for the purpose of this disclosure. Dividends Turkcell: At the general assembly held on May 2, 2024, it was decided that a portion of the Company's distributable profit for the period ending 31 December 2024, amounting to a gross nominal 6,276,998 TL, would be distributed to shareholders in cash as a gross 2.8532 TL per share with a nominal value of 1 TL, on 5 December 2024. The amount was paid to the shareholders on the relevant date. The total dividend, calculated based on purchasing power parity as of 31 December 2024, is 7,384,360 TL. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 26. Earnings per share 31 December 2024 31 December 2023 31 December 2022 Numerator: Profit attributable to owners of the Company 23,523,425 18,125,305 9,933,888 Denominator: Weighted average number of shares (*) 2,181,023,660 2,182,106,193 2,183,106,193 Basic and diluted earnings per share for profit attributable to owners of the Company (in full TL) 10.79 8.31 4.55 Numerator: Profit from continuing operations attributable to owners of the Company 11,095,462 15,281,512 8,717,685 Denominator: Weighted average number of shares (*) 2,181,023,660 2,182,106,193 2,183,106,193 Basic and diluted earnings per share for profit from continuing operations attributable to owners of the Company (in full TL) 5.09 7.00 3.99 Numerator: Profit from discontinuing operations attributable to owners of the Company 12,427,963 2,843,793 1,216,203 Denominator: Weighted average number of shares (*) 2,181,023,660 2,182,106,193 2,183,106,193 Basic and diluted earnings per share for profit from discontinued operations attributable to owners of the Company (in full TL) 5.70 1.30 0.56 (*) Refer to Note 25 - Treasury shares TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 313 312 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 27. Other non-current liabilities 31 December 2024 31 December 2023 Liabilities to BeST investment agreement 1,304,706 1,482,852 Deferred revenue 212,698 124,759 1,517,404 1,607,611 (*) The transfer of ownership of BeST's 20% share in the Republic of Belarus was completed on 9 December 2022. On 30 November 2022, an agreement was signed between the Republic of Belarus, BeST and the Company for the development of telecommunications infrastructure, which covers the years 2022-2032 and involves a USD 100,000 obligation to be paid over a period of 10 years based on a minimum of 50% of the IFRS net profit earned by BeST, with the entire amount being paid by the Company to the Republic of Belarus if the specified amount is not reached at the end of the 10-year period. The liability recorded in the consolidated financial statements for the BeST investment agreement reflects the amortized cost value of future payments at the balance sheet date. The total future payments to be made is USD 100,000 (equivalent to TL 3,522,330 as of 31 December 2024) and will be paid depending on the financial performance of BeST. A discount rate of 14.99% was used in the amortized cost calculation. BeST expects the payment to be made in installments between 2027- 2032 and changes in expected timing of payments is accounted within net interest expenses for financial assets and liabilities measured at amortized cost. 28. Loans and borrowings Long-term borrowings 31 December 2024 31 December 2023 Unsecured bank loans 25,595,454 36,809,354 Secured bank loans 6,600,324 5,703,670 Lease liabilities 3,777,631 2,390,599 Debt securities issued 16,461,755 38,759,036 52,435,164 83,662,659 Short-term borrowings 31 December 2024 31 December 2023 Unsecured bank loans 28,982,083 28,254,091 Secured bank loans 1,222,252 1,117,148 Lease liabilities 1,044,893 1,114,322 Debt securities issued 20,655,867 7,251,528 51,905,095 37,737,089 The Company has obtained approval from CMB on 28 June 2024 for issuance of debt securities to 8,000,000 TL, the Company has issued debt securities up on 10 October 2024, amounting 1,870,000 TL with the maturity of 30 January 2025. Turkcell Superonline obtained approval from the CMB on 21 December 2023, for the issuance of sukuk up to 3,000,000 TL. In the fourth quarter of 2024, two lease certificates, each worth TL 300,000, were issued in November and December 2024, with maturities in April and May 2025, respectively. Turkcell Finansman A.Ş. has redeemed corporate bonds on 11 November 2024, with a nominal value of TRY 160,300. The Company's issuance limit amounting to TRY 1,000,000, which was obtained for one year on 1 December 2023, has expired and no new issuance limit application has been made as of 31 December 2024. Turkcell Ödeme obtained approval from CMB on 21 November 2024 for the issuance of sukuk up to TL 1,500,000. During December 2024, Turkcell Ödeme issued several sukuks, each with in 2025 maturity for a total amount of TL 300,000. As of 31 December 2024, the outstanding issuance limit is TL 300,000. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 28. Loans and borrowings (continued) Terms and conditions of outstanding loans are as follows: Currency Interest rate type Payment period Nominal interest rate Carrying amount Payment period Nominal interest rate Carrying amount Unsecured Bank Loans EUR Floating 2025-2030 Euribor+2%-Euribor+4,0% 31,951,968 2024-2028 Euribor+2,0%-Euribor+4,0% 37,272,708 Unsecured Bank Loans TRY Fixed 2025-2027 24.4%-67.3% 14,419,059 2024-2025 11.5%-58.9% 17,241,862 Unsecured Bank Loans USD Floating 2026-2029 Sofr+ 2.2% 5,111,643 2024-2028 Sofr 2.2% 6,472,710 Unsecured Bank Loans CNY Fixed 2026-2028 5.2%-5.5% 2,570,134 2024-2028 5.2%-5.5% 3,265,249 Unsecured Bank Loans EUR Fixed 2025 5.0% 370,134 2024 6% 498,729 Unsecured Bank Loans USD Fixed 2026 2.6% 154,599 2024-2026 3% 289,293 Unsecured Bank Loans BYR Fixed - - - 2024 14% 22,894 Secured bank loans USD Fixed 2029-2033 1.5%-3.8% 4,142,583 2024-2033 1.5%-3.8% 5,591,030 Secured bank loans USD Floating 2026-2028 Sofr+0.6% & Sofr+1.6% 788,460 2024-2028 Sofr+0.6% & Libor+1.6% 1,229,788 Secured bank loans EUR Floating 2036 Euribor+0.7% 1,125,022 - - - Secured bank loans CNY Fixed 2034 4.0% 1,766,511 - - - Debt securities issued USD Fixed 2025-2028 5.8% 34,114,065 2024-2028 6% 41,047,910 Debt securities issued TRY Fixed 2025 42.0%-49.5% 3,003,557 2024 29.5%-45.0% 4,962,654 Lease liabilities TRY Fixed 2025-2069 7.5%-62.3% 3,959,814 2024-2057 9.8%-45.0% 2,266,451 Lease liabilities GBP Fixed 2025 2.7%-5.9% 61 - - Lease liabilities EUR Fixed 2025-2034 2.9%-10.3% 350,365 2024-2034 1.0%-11.0% 588,931 Lease liabilities BYN Fixed 2025-2037 10.8%-20.0% 464,845 2024-2037 10.8%-20.0% 599,980 Lease liabilities USD Fixed 2025-2037 4 %-11.6% 47,439 2024-2052 3.9%-11.6% 49,559 104,340,259 121,399,748 31 December 2024 31 December 2023 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 315 314 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 29. Employee benefits 31 December 2024 31 December 2023 Retirement pay liability provision 2,402,432 2,432,042 Unused vacation provision 629,646 531,080 3,032,078 2,963,122 Provision for defined benefit plans Movements in provision for retirement pay liability are as follows: 2024 2023 Balance at 1 January 2,432,042 3,784,363 Service cost 493,885 511,033 Past service cost - 3,354 Remeasurements 176,940 216,218 Interest expense 532,145 235,215 Benefit payments (408,583) (814,327) Inflation adjustment (823,997) (1,503,814) Balance at 31 December 2,402,432 2,432,042 The sensitivity of provision for retirement pay liability to changes in the significant actuarial assumptions is: 31 December 2024 Sensitivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption -14.20% 17.2% 6.6% -22.7% Impact on provision for defined benefit plans (341,145) 412,978 158,561 (545,352) Interest Rate Inflation Rate 31 December 2023 Sensitivity Level 1% increase 1% decrease 1% increase 1% decrease Change in assumption (14,1%) 17.0% 17.2% (14,4%) Impact on provision for defined benefit plans (342,918) 413,204 419,284 (350,214) Interest Rate Inflation Rate The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. Defined contribution plans Obligations for contribution to defined contribution plans are recognized as an expense in the consolidated statement of profit or loss as incurred. The Group is obliged to contribute a certain percentage of personnel wages to pension plans. The Group incurred TL 95,366 and TL 109,007 in relation to the defined contribution retirement plan for the years ended 31 December 2024 and 2023 respectively. Share based payments The Group has a share performance-based payment plan (cash settled incentive plan) in order to build a common interest with its shareholders, support sustainable success, and ensure loyalty of key employees. The KPIs of the plan are; the total shareholder return in excess of weighted average cost of capital (WACC), and ranking of total shareholder return in comparison with BIST-30 and peer group. Bonus amount is determined according to these evaluations, and it is distributed over a three-year payment plan. As of 31 December 2024, the Group recognized expenses of TL 1,388,603 regarding this plan (31 December 2023: TL 290,398) TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 30. Deferred revenue Deferred revenue primarily consists of rent income that are accounted with the scope of IFRS 16 and it is classified as current at 31 December 2024 and 2023. The amount of deferred revenue is TL 507,561 and TL 358,064 as at 31 December 2024 and 2023, respectively. 31. Contract liabilities 31 December 2024 31 December 2023 Long-term contract liabilities 2,152,853 1,723,399 Short-term contract liabilities 1,522,500 1,894,999 3,675,353 3,618,398 Contract liabilities primarily consists of telecommunication service for infrastructure usage and top-up made by prepaid subscribers. Revenue recognized in the current reporting period relating to carried forward contract liabilities is TL1,894,999 (2023: TL 2,023,712). The following table shows unsatisfied performance obligation result as of 31 December 2024; 31 December 2024 31 December 2023 Telecommunications service 2,338,217 3,032,965 Equipment revenues 1,453,999 1,348,376 3,792,216 4,381,341 Management expects that 49% of the transaction price allocated to the unsatisfied contracts as of 31 December 2024 will be recognized as revenue during 2025. The remaining 51% will be recognized in next years. 32. Provisions Non-current provisions: Legal claims Obligations for dismantling, removing and site restoration Total Balance at 1 January 2024 159,679 1,831,932 1,991,611 Provisions recognized 223,229 19,131 242,360 Payments - (26,535) (26,535) Unwinding of discount - 281,789 281,789 Transfers to current provisions (83,117) - (83,117) Remeasurements - 176,581 176,581 Effect of changes in exchange rates - 19,715 19,715 Inflation adjustment (66,019) (617,610) (683,629) Balance at 31 December 2024 233,772 1,685,003 1,918,775 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 317 316 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 32. Provisions (continued) Legal claims Obligations for dismantling, removing and site restoration Total Balance at 1 January 2023 113,460 2,191,118 2,304,578 Provisions recognized 179,870 104,757 284,627 Payments - (32,674) (32,674) Unwinding of discount - 160,070 160,070 Transfers to current provisions (66,452) - (66,452) Remeasurements - 394,089 394,089 Transfers to asset held for sale (294,614) (294,614) Effect of changes in exchange rates - 295,301 295,301 Inflation adjustment (67,199) (986,115) (1,053,314) Balance at 31 December 2023 159,679 1,831,932 1,991,611 Provision for legal claims is recognized for the probable cash outflows related to legal disputes. Refer to Note 37. The Group is required to incur certain costs in respect of a liability to dismantle and remove assets and to restore sites on which the assets were located. The dismantling costs are calculated according to best estimate of future expected payments discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. 32. Provisions (continued) Current provisions: Legal claims (**) Bonus (*) Total Balance at 1 January 2024 649,603 2,202,662 2,852,265 Provisions recognized (29,560) 5,546,720 5,517,160 Payments (198,164) (2,364,447) (2,562,611) Transfers from non-current provisions 83,117 - 83,117 Effect of changes in exchange rates - 4,362 4,362 Inflation adjustment (182,192) (1,061,743) (1,243,935) Balance at 31 December 2024 322,804 4,327,554 4,650,358 Legal claims (**) Bonus (*) Total Balance at 1 January 2023 75,821 1,717,983 1,793,804 Provisions recognized 739,276 3,836,212 4,575,488 Payments (34,060) (2,140,239) (2,174,299) Transfers from non-current provisions 66,452 - 66,452 Transfers to asset held for sale (14,460) (253,298) (267,758) Effect of changes in exchange rates 131 55,261 55,392 Inflation adjustment (183,557) (1,013,257) (1,196,814) Balance at 31 December 2023 649,603 2,202,662 2,852,265 (*) Includes share-based payment (Note 29). (**) Refer to Note 37. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 33. Trade and other payables Short-term trade and other payables 31 December 2024 31 December 2023 Payables to suppliers 20,358,995 18,300,375 Taxes payable 4,051,266 3,942,708 Accrued treasury share, universal service fund contribution and contributions to the ICTA’s expenses 2,878,900 2,541,937 Accrued selling and marketing expenses 394,087 240,822 Payables related with donation 3,145 2,526,628 Others 1,986,021 2,198,541 29,672,414 29,751,011 Payable to suppliers arises in the ordinary course of business. Taxes payables include VAT payables, special communications taxes payable, frequency usage fees payable to the ICTA and personnel income taxes payable. Accrued selling and marketing expenses mainly result from services received from third parties related to the marketing activities of the Group, but not yet invoiced. 34. Derivative financial instruments The fair value of derivative financial instruments at 31 December 2024 and 2023 are attributable to the following: Assets Liabilities Assets Liabilities Held for trading 1,964,325 501,322 877,115 453,068 Derivatives used for hedge accounting - - 1,884,713 70,181 1,964,325 501,322 2,761,828 523,249 31 December 2024 31 December 2023 At 31 December 2024, short-term derivative assets of TL 2,043,112 also include a net accrued interest income of TL 78,787 and the short-term derivative liabilities of TL 495,467 also includes a net accrued interest expense of TL 5,855. At 31 December 2023, the short-term derivative assets of TL 2,952,207 also include a net accrued interest expense of TL 190,379 and the short-term derivative liabilities of TL 511,635 also includes a net accrued interest income of TL 11,614. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 319 318 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 34. Derivative financial instruments (continued) Derivatives used for hedging The notional amount and the fair value of derivatives used for hedging contracts at 31 December 2024 and 2023 are as follows: Currency Notional value in original currency Fair value Notional value in original currency Fair value Maturity date Hedge ratio Change in intrinsic value of outstanding hedging instruments since 1 January 2024 Change in intrinsic value of outstanding hedging instruments since 1 January 2023 Participating cross currency swap contracts EUR Contracts - - 167,000 374,358 October 2025 01:01 - (6,087) EUR Contracts - - 38,057 35,393 April 2026 01:01 - (277) USD Contracts - - 124,186 818,486 April 2026 01:01 - (970) Cross currency swap contracts RMB Contracts - - 81,162 447,275 April 2026 01:01 - 190,846 Interest rate swap contracts USD Contracts - - 90,135 139,020 April 2026 01:01 - - Derivatives used for hedge accounting - 1,814,532 31 December 2024 31 December 2023 EUR 120,440 (2023: EUR 191,036) participating cross currency swap contracts includes TL 415,930 (2023: TL 1,438,151) guarantees after the CSA agreement. As a result of the recent changes in the market due macroeconomic measures, the hedge accounting designated by the Company within the scope of its risk management has been ceased as of 1 July 2024 because the economic relationship between the hedged item and the hedging instrument no longer exists. With the discontinuation of cash flow hedge accounting for certain instruments, the nominal amounts related to changes in the time value of options held in the funds immediately transferred to the profit and loss accounts, while the nominal amounts related to cash flow hedge losses or gains held in the fund will be reflected in the profit or loss statement in future periods using the amortization method. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 34. Derivative financial instruments (continued) Held for trading The notional amount and the fair value of derivatives used held for trading contracts at 31 December 2024 and 2023 are as follows: Currency Notional value in original currency Fair value Maturity Notional value in original currency Fair value Maturity Cross currency swap contracts USD Contracts 4,000 113,643 November 2025 8,000 267,255 November 2025 RMB Contracts 67,141 273,946 April 2026 19,425 102,561 April 2026 Currency forward contracts USD Contracts 405,000 (61,287) January-December 2025 334,900 (178,088) March 2024 EUR Contracts 20,000 (796) November 2025 10,000 (28,740) January 2024 FX swap contracts RMB Contracts 290,949 26,277 February 2025 - - - EUR Contracts 10,103 (9,598) January 2025 - - - USD Contracts - - - 353,972 (214,564) February 2024 USD Contracts 91,894 484,368 November 2025 - April 2026 18,000 104,680 November 2025 EUR Contracts 156,539 563,282 October 2025 - April 2026 40,060 362,496 April 2026 Interest rate swap contracts USD Contracts 108,911 73,168 April 2026- April 2033 64,655 34,234 April 2026 TL Contracts - - - 600,000 (25,787) October 2026 Derivatives held for trading 1,463,003 424,047 Participating cross currency swap contracts 31 December 2024 31 December 2023 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 321 320 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 34. Derivative financial instruments (continued) Fair value of derivative instruments and risk management Fair value This section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication of the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level is as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability. Fair Value hierarchy Valuation Techniques a) Participating cross currency swap contracts Level 2 Pricing models based on discounted cash present value of the estimated future cash flows based on observable yield curves and end period FX rates b) FX swap, currency, interest swap and option contracts Level 2 Present value of the estimated future cash flows based on observable yield curves and end period FX rates c) Currency forward contracts Level 2 Forward exchange rates at the balance sheet date In the valuation of participating cross currency swap contracts, the Group uses bid prices in the bid- ask price range that were considered the most appropriate instead of mid prices. Using bid prices instead of mid ranges, has no impact on carried values as of 31 December 2024. (31 December 2023: None) TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 34. Derivative financial instruments (continued) Fair value of derivative instruments and risk management (continued) Fair value (continued) Movements in the participating cross currency swap contracts for the years ended 31 December 2024 and 2023 are stated below, and participating cross currency swap contracts are transferred to Level 2 from Level 3 as of 31 December 2023. 31 December 2024 31 December 2023 Opening balance - 2,727,971 Cash flow effect - (3,185,616) Total gain/loss: - Gains recognized in profit or loss - 3,285,098 Inflation adjustments - (1,132,040) Transfer to Level 2 - (1,695,413) Closing balance - - The Group transferred participating cross currency swap contracts from Level 3 to Level 2 hierarchy because the use of bid prices in the bid-ask price ranges in valuation are not considered significant unobservable input anymore, based on market data. As a policy, the Group makes transfers between fair value hierarchy levels at the end of the reporting period. As of 31 December 2024, the Company has no financial assets and liabilities carried at fair value on a non-recurring basis. Net off / Offset The Company signed a Credit Support Annex (CSA) against the default risk of parties in respect of a EUR 167,000 participating cross currency swap transaction executed on 15 July 2016 and restructured respectively on 26 May 2017 and 9 August 2018. Additionally, in the 25 June 2019, The Company signed a new CSA to EUR 24,036 participating cross currency swap transaction. As per the CSA, the swap’s current (mark-to-market) value will be determined on the 10th and 24th calendar day of each calendar month, and if the mark-to-market value is positive and exceeds a certain threshold, the bank will be posting cash collateral to the Company which will be equal to an amount exceeding the threshold (i.e. if the mark-to-market value is negative, the Company would be required to post collateral to the bank by an amount exceeding the threshold). With respect to valuations, on a bi-weekly basis, a transfer will take place between the parties only if the mark-to-market value changes by at least EUR 1,000. Following the execution of CSA, the bank transferred to the Company EUR 344,829 as collateral (31 December 2024: TL 12,670,017) which was the amount exceeding the threshold (EUR 10,000) and the Company transferred EUR 333,509 as collateral to the bank (31 December 2024: TL 12,254,088) which was the amount exceeding the threshold (EUR 10,000). The Company clarified this with the derivative assets included in the statement of financial position because it has the legal right to offset the collateral amount TL 415,929 (31 December 2023: TL 1,441,934) that it recognizes under the borrowings and intends to pay according to the net fair value, this amount was netted from the borrowings and deducted from the derivative instruments in the balance sheet. As of 31 December 2024, if this transaction was not conducted, derivative financial instruments assets, liabilities and borrowings would have been TL 2,273,548 (31 December 2023: TL 4,144,206), TL 309,975 (31 December 2023: TL 261,701) and TL 52,321,024 (31 December 2023: TL 43,849,703) respectively. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 323 322 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 34. Derivative financial instruments (continued) Fair value of derivative instruments and risk management (continued) Market risk The Group uses various types of derivatives to manage market risks. All such transactions are carried out within the guidelines set by the treasury and risk management department. Generally, the Group seeks to apply hedge accounting to manage volatility in profit or loss. Currency risk The Group’s risk management policy is to hedge its estimated foreign currency exposure in respect of borrowing payments with various maturities at any point in time. The Group uses participating cross currency contracts to hedge its currency risk, mostly with a maturity of over one year from the reporting date. These contracts are generally designated as cash flow hedges. The Company started to apply hedge accounting as of 1 July 2018 for existing participating cross currency swap and cross currency swap transactions in accordance with IFRS 9 hedge accounting requirement. The Group designates the hedge ratio, between the amount of the hedged item and the hedging instrument is 1:1 to hedge its currency risk. The time value of options in participating cross currency swap contracts are included in the designation of the hedging instrument and are separately accounted for as a cost of hedging, which is recognized in equity in a cost of hedging reserve. The Group’s policy is for the critical terms of the participating cross currency contracts to align with the hedged item. The Group determines the existence of an economic relationship between the hedging instruments and hedged item based on the currency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. In these hedge relationships, the main sources of ineffectiveness are; - The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of the hedged risk and associated credit risk considered to be very low at inception in the fair value of the hedged cash flows attributable to the change in exchange rates; - The entire fair value of the derivative contracts including currency basis was designated as the hedging instrument in cash flow hedge. The hypothetical derivative is modelled to exclude the impact of currency basis. The Company’s bank loans are designated as hedging instruments against the spot foreign exchange rate risk (USD/TL) associated with highly probable electricity sales. In this context, the Group started to apply cash flow hedge accounting effective from 10 September 2021. The amount of loans associated within this scope amounted to USD 6,582 as of 31 December 2024. The after tax foreign exchange gain and loss recognized under “cash flow hedges” in the statement of other comprehensive income of 2024. The Company’s lease liabilities are designated as hedging instruments against the spot foreign exchange rate risk (EUR/TL) associated with highly probable EUR telecommunication revenues. In this context, the Group started to apply cash flow hedge accounting effective from 1 October 2021. The amount of lease liabilities associated within this scope amounted to EUR 59,086 as of 31 December 2024. The after tax foreign exchange gain and loss recognized under “cash flow hedges” in the statement of other comprehensive income of 2024. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 34. Derivative financial instruments (continued) Fair value of derivative instruments and risk management (continued) Currency risk (continued) The Company designated EUR 56,576 of bank loan, as hedging instruments in order to hedge the foreign currency risk arising from the translation of net assets of the subsidiaries operating in Europe from EUR to Turkish Lira. Foreign exchange gains/losses of the related loans are recognized under equity as “gains/(losses) on net investment hedges” in order to offset the foreign exchange gains/(losses) arising from the translation of the net assets of investments in foreign operations to Turkish Lira. The after-tax foreign exchange loss recognized under “hedges of net investments in foreign operation” in the statement of other comprehensive income of 2024 in the scope of net investment hedge amounted to TL 1,224,035 (2023: TL (1,676,558)) Interest rate risk The Group adopts a policy of ensuring that its interest rate risk exposure is at a fixed rate. This is achieved partly by entering into fixed-rate instruments and partly by borrowing at a floating rate and using cross currency and interest rate swaps as hedges of the variability in cash flows attributable to movements in interest rates. The Group applies a hedge ratio of 1:1. The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the reference interest rates, tenors, repricing dates and maturities and the notional or par amounts. The Group assesses whether the derivative designated in each hedging relationship is expected to be effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. In these hedge relationships, the main sources of ineffectiveness are: - The effect of the counterparties’ credit risk on the fair value of the swap contracts, which is not part of the hedged risk and associated credit risk considered to be very low at inception in the fair value of the hedged cash flows attributable to the change in interest rates; Cash flow sensitivity analysis for variable-rate instruments A reasonable potential change of 100 basis points in interest rates and 10% change in foreign exchange currency at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease 31 December 2024 Participating cross currency swap contracts - - - - Cross currency swap contracts - - - - Cash Flow sensitivity (net) - - - - 31 December 2023 Participating cross currency swap contracts (74,274) 18,587 802,499 826,454 Cross currency swap contracts 199,299 186,282 (11,074) (12,539) Cash Flow sensitivity (net) 125,025 204,869 791,425 813,915 Profit or Loss Equity, net of tax TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 325 324 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments Credit risk Exposure to credit risk: The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is: Notes 31 December 2024 31 December 2023 Trade receivables 19 16,791,281 16,244,788 Contract assets 21 5,365,452 4,754,422 Receivables from financial services 20 7,509,494 9,291,730 Cash and cash equivalents (*) 23 68,933,837 72,158,173 Derivative financial instruments 34 2,043,112 2,952,207 Other current & non-current assets (**) 17 1,574,144 1,032,929 Financial assets at amortized cost 24 1,065,899 - Financial assets at fair value through profit or loss 24 9,535,419 13,587,946 Financial assets at fair value through other comprehensive income 24 14,093,601 153,075 Due from related parties 246,529 247,426 127,158,768 120,422,696 (*) Cash in hand is excluded from cash and cash equivalents. (**) Prepaid expenses, VAT receivable, receivable from the Ministry of Transport and Infrastructure of Turkiye and advances given are excluded from other current assets and other non-current assets. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Credit risk (continued) Credit quality: The maximum exposure to credit risk for trade receivables, other assets and cash and cash equivalent arising from sales transactions, including those classified as due from related parties at the reporting date by type of customer is: Other assets at 31 December 2024 (*) Not Due Less Than 30 Days Past Due Less Than 60 Days Past Due Less Than 90 Days Past Due Less Than 120 Days Past Due Less Than 150 Days Past Due Less Than 3 years Past Due Less Than 4 years Past Due Less Than 5 years Past Due Total Gross Carrying Amount 110,985,804 1,545,456 315,159 200,441 163,139 278,217 1,065,717 265,058 123,443 114,942,434 Loss Allowance 128,504 39,809 12,336 9,641 12,499 11,917 210,105 182,562 51,239 658,612 (*) Other Assets includes trade receivables, derivative financial instruments, financial assets, other current and non-current assets, cash and cash equivalent and due from related parties, As of 31 December 2024, the total amount of derivative financial instruments, financial assets, other assets and cash and cash equivalent included in gross carrying amount is TL 97,242,368. TL and out of this total balance TL 97,232,578 is included within “not due” column with a total loss allowance of TL 9,790. Total overdue balance associated with these assets amounts to TL 157,821. Remaining balances represents trade receivables. Contract assets at 31 December 2024 Not Due Less Than 30 Days Past Due Less Than 60 Days Past Due Less Than 90 Days Past Due Less Than 120 Days Past Due Less Than 150 Days Past Due Less Than 3 years Past Due Less Than 4 years Past Due Less Than 5 years Past Due Total Gross Carrying Amount 5,370,915 - - - - - - - - 5,370,915 Loss Allowance 5,463 - - - - - - - - 5,463 Other assets from financial services at 31 December 2024 (**) Not Due Less Than 30 Days Past Due Less Than 60 Days Past Due Less Than 90 Days Past Due Less Than 120 Days Past Due Less Than 150 Days Past Due Less Than 3 years Past Due Less Than 4 years Past Due Less Than 5 years Past Due Total Gross Carrying Amount 5,810,498 1,150,837 306,997 150,378 73,566 29,922 140,447 1,542 6,798 7,670,985 Loss Allowance 11,894 3,230 1,016 2,003 30,093 17,036 87,730 1,547 6,942 161,491 (**) Other Assets includes receivables from financial services, TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 327 326 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Credit risk (continued) Credit quality (continued): Other assets at 31 December 2023 (*) Not Due Less Than 30 Days Past Due Less Than 60 Days Past Due Less Than 90 Days Past Due Less Than 120 Days Past Due Less Than 150 Days Past Due Less Than 3 years Past Due Less Than 4 years Past Due Less Than 5 years Past Due Total Gross Carrying Amount 103,420,211 1,205,275 280,259 187,635 135,722 125,027 1,240,427 423,662 232,141 107,250,359 Loss Allowance 115,419 20,825 12,907 9,545 9,802 10,531 265,920 301,470 127,397 873,816 (*) Other Assets includes trade receivables, derivative financial instruments, financial assets, other current and non-current assets, cash and cash equivalent and due from related parties, Contract assets at 31 December 2023 Not Due Less Than 30 Days Past Due Less Than 60 Days Past Due Less Than 90 Days Past Due Less Than 120 Days Past Due Less Than 150 Days Past Due Less Than 3 years Past Due Less Than 4 years Past Due Less Than 5 years Past Due Total Gross Carrying Amount 4,759,315 - - - - - - - - 4,759,315 Loss Allowance 4,893 - - - - - - - - 4,893 Other assets from financial services at 31 December 2023 (**) Not Due Less Than 30 Days Past Due Less Than 60 Days Past Due Less Than 90 Days Past Due Less Than 120 Days Past Due Less Than 150 Days Past Due Less Than 3 years Past Due Less Than 4 years Past Due Less Than 5 years Past Due Total Gross Carrying Amount 8,473,931 651,486 120,539 30,901 37,716 13,186 164,149 2,989 9,000 9,503,897 Loss Allowance 48,342 5,023 1,862 2,153 14,893 6,816 121,101 2,979 8,998 212,167 (**) Other Assets includes receivables from financial services. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Impairment losses Movements in the provision for trade receivables, contract assets, other assets and due from related parties are as follows: Contract Assets Trade Receivable & Other Assets Opening balance 4,893 873,816 Provision for impairment recognized during the year 2,359 1,244,121 Amounts collected - (434,224) Transfer to asset held for sale - Receivables written off during the year as uncollectible - (764,786) Effect of changes in exchange rates - 15,617 Inflation adjustment (1,789) (275,932) Closing balance 5,463 658,612 31 December 2024 Contract Assets Trade Receivable & Other Assets Opening balance 17,476 1,574,960 Provision for impairment recognized during the year (7,135) 1,724,550 Amounts collected - (421,358) Receivables written off during the year as uncollectible - (1,374,926) Transfer to asset held for sale - (128,858) Effect of changes in exchange rates - 130,225 Inflation adjustment (5,448) (630,777) Closing balance 4,893 873,816 31 December 2023 Movements in the provision for impairment of receivables from financial services are as follows: 31 December 2024 31 December 2023 Opening balance 212,167 213,910 Provision for impairment recognized during the year 413,530 233,277 Amounts collected (211,129) (120,687) Receivables transferred with receivables transfer contract (*) (185,863) (9,753) Inflation adjustment (67,214) (104,580) Closing balance 161,491 212,167 (*) Turkcell Finansman signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the years 2016 and 2022. Transferred doubtful receivables comprise of balances for which Turkcell Finansman initiated legal proceedings. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 329 328 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Liquidity risk The table below analyses the Group’s financial liabilities by considering relevant maturity groupings based on their contractual maturities for: - all non-derivative financial liabilities, and - gross settled derivative financial instruments for which contractual maturities are essential for an understanding of the timing of the cash flows, Carrying Amount Contractual cash flows 6 months or less 6 - 12 Months 1 - 2 years 2 - 5 years More than 5 years Carrying Amount Contractual cash flows 6 months or less 6 - 12 Months 1 - 2 years 2 - 5 years More than 5 years Non-derivative financial liabilities Secured bank loans 7,822,576 (9,525,187) (631,143) (616,730) (1,209,845) (3,293,947) (3,773,522) 6,820,818 (9,006,197) (1,656,178) (630,472) (1,230,874) (3,401,684) (2,086,989) Unsecured bank loans 54,577,537 (60,072,310) (21,423,967) (9,172,079) (11,050,680) (17,781,180) (644,404) 65,063,445 (71,879,595) (19,842,525) (10,659,577) (16,613,808) (24,763,685) - Debt securities issued 37,117,622 (42,058,710) (4,644,736) (17,490,618) (1,009,218) (18,914,138) - 46,010,564 (53,874,373) (6,365,080) (1,181,693) (22,286,903) (24,040,697) - Lease liabilities 4,822,524 (8,472,645) (1,324,092) (1,103,511) (2,074,779) (2,910,862) (1,059,401) 3,504,921 (6,101,031) (966,971) (785,877) (1,000,757) (1,865,739) (1,481,687) Trade and other payables (*) 20,527,814 (20,527,814) (20,256,183) - - - (271,632) 19,903,990 (19,903,990) (19,695,803) - - (208,187) Due to related parties 960,149 (960,149) (950,321) (9,574) - (253) - 852,969 (852,969) (797,619) - (55,350) - - Consideration payable in relation to acquisition of Belarusian Telecom and Boyut Enerji (Note 27) 1,304,706 (3,522,330) - - - (173,859) (3,348,471) 1,482,853 (4,271,293) - - (21,042) (415,285) (3,834,966) Derivative financial liabilities Participating Cross Currency Swap and FX swap contracts 495,467 (367,296) 47,738 (74,258) (96,862) (243,914) - 511,635 (260,155) 423,229 (78,276) (231,535) (373,573) - Buy - (4,547,999) (2,917,288) (185,693) (182,674) (1,262,344) - - (35,198,892) (32,233,094) (276,745) (507,968) (2,181,085) - Sell - 4,180,703 2,965,026 111,435 85,812 1,018,430 - - 34,938,737 32,656,323 198,469 276,433 1,807,512 - TOTAL 127,628,395 (145,506,441) (49,182,704) (28,466,770) (15,441,384) (43,318,153) (9,097,430) 144,151,195 (166,149,603) (48,900,947) (13,335,895) (41,440,269) (54,860,663) (7,611,829) 31 December 2024 31 December 2023 (*) Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Foreign exchange risk The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows: USD EUR RMB Foreign currency denominated assets Other non-current assets 69 11 - Financial asset at fair value through other comprehensive income 442,921 43,369 - Due from related parties - current 103 - - Trade receivables and contract assets 39,575 23,748 - Other current assets 7,806 2,552 2 Cash and cash equivalents 1,045,260 429,728 213,952 1,535,734 499,408 213,954 Foreign currency denominated liabilities Loans and borrowings - non-current (198,028) (581,532) (773,392) Debt securities issued - non-current (467,354) - - Lease obligations - non-current (1,287) (8,264) - Other non-current liabilities (37,041) - - Loans and borrowings - current (91,476) (340,089) (130,358) Debt securities issued - current (501,154) - - Lease obligations - current (60) (1,272) - Other current liabilities - (9,247) - Trade and other payables - current (194,302) (72,107) (257,317) Due to related parties (1,457) - - (1,492,159) (1,012,511) (1,161,067) Financial liabilities defined as hedging instruments 6,582 115,662 - Exposure related to derivative instruments (23,572) (12,240) 358,090 250,000 - - Net exposure 276,585 (409,681) (589,023) Participating cross currency swap and FX swap contracts Currency forward contracts 31 December 2024 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 331 330 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Foreign exchange risk (continued) USD EUR RMB Foreign currency denominated assets Other non-current assets 69 11 - Financial asset at fair value through other comprehensive income 156,278 75,622 - Due from related parties - current 1,059 - - Trade receivables and contract assets 11,566 15,857 - Other current assets 2,340 3,184 56 Cash and cash equivalents 534,318 639,362 257,156 705,630 734,036 257,212 Foreign currency denominated liabilities Loans and borrowings - non-current (234,458) (631,844) (473,134) Debt securities issued - non-current (911,923) - - Lease obligations - non-current (1,063) (9,425) - Other non-current liabilities (34,889) - - Loans and borrowings - current (85,119) (201,955) (75,635) Debt securities issued - current (53,853) - - Lease obligations - current (103) (3,097) - Other current liabilities (848) (2,160) - Trade and other payables - current (134,540) (87,414) (323,677) Due to related parties (5,870) - - (1,462,666) (935,895) (872,446) Financial liabilities defined as hedging instruments 10,097 329,890 - Exposure related to derivative instruments Participating cross currency swap and FX swap contracts 361,971 (325,000) 100,586 Currency forward contracts 601,360 10,000 - Net exposure 216,392 (186,969) (514,648) 31 December 2023 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Exposure to currency risk Sensitivity analysis The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies; the analysis excludes net foreign currency investments. A 10% strengthening/weakening of the USD, UAH, BYN, EUR against the following currencies as at 31 December 2024 and 31 December 2023 would have increased/(decreased) profit or loss before by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. Appreciation of foreign currency Depreciation of foreign currency Appreciation of foreign currency Depreciation of foreign currency 1- USD net asset/liability 974,224 (974,224) - - 2- Hedged portion of USD risk (-) - - (23,185) 23,185 3- USD net effect (1+2) 974,224 (974,224) (23,185) 23,185 4- EUR net asset/liability (1,505,287) 1,505,287 - - 5- Hedged portion of EUR risk (-) - - (217,098) 217,098 6- EUR net effect (4+5) (1,505,287) 1,505,287 (217,098) 217,098 7- Other foreign currency net asset/liability (RMB) (282,643) 282,643 - - 8- Hedged portion of other foreign currency risk (-) (RMB) - - - - 9- Other foreign currency net effect (7+8) (282,643) 282,643 - - Total (3+6+9) (813,706) 813,706 (240,283) 240,283 Appreciation of foreign currency Depreciation of foreign currency Appreciation of foreign currency Depreciation of foreign currency 1- USD net asset/liability 913,412 (913,412) - - 2- Hedged portion of USD risk (-) - - (42,915) 42,915 3- USD net effect (1+2) 913,412 (913,412) (42,915) 42,915 4- EUR net asset/liability (883,116) 883,116 - - 5- Hedged portion of EUR risk (-) - - (46,476) 46,476 6- EUR net effect (4+5) (883,116) 883,116 (46,476) 46,476 7- Other foreign currency net asset/liability (RMB) (306,223) 306,223 - - 8- Hedged portion of other foreign currency risk (-) (RMB) - - 2,132 (2,132) 9- Other foreign currency net effect (7+8) (306,223) 306,223 2,132 (2,132) Total (3+6+9) (275,927) 275,927 (87,259) 87,259 31 December 2023 Sensitivity analysis 31 December 2024 Profit/(Loss) Equity Sensitivity analysis Profit/(Loss) Equity TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 333 332 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Interest rate risk As at 31 December 2024 and 2023 the interest rate profile of the Group’s variable rate interest-bearing financial instruments are as follows: Note Effective Interest Rate Carrying Amount Effective Interest Rate Carrying Amount Variable rate instruments USD floating rate loans 28 5.8% (5,900,103) 3.2% (7,702,498) EUR floating rate loans 28 4.5% (33,076,990) 2.2% (37,272,708) 31 December 2024 31 December 2023 Sensitivity analysis Cash flow sensitivity analysis for variable rate instruments: An increase/decrease of interest rates by 100 basis points would have (decreased)/increased equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign exchange rates, remain constant. The analysis is performed on the same basis at 31 December 2024 and 2023: 100 bps increase 100 bps decrease 100 bps increase 100 bps decrease 31 December 2024 Variable rate instruments (financial liability) 1,418,256 (1,418,256) - - Cash flow sensitivity (net) 1,418,256 (1,418,256) - - 31 December 2023 Variable rate instruments (financial liability) (2,720,152) 2,720,152 - - Cash flow sensitivity (net) (2,720,152) 2,720,152 - - Profit or loss Equity Fair value As of 31 December 2024, and 2023, the Group’s does not have financial assets or financial liabilities that are measured at fair value using unobservable inputs within level 3. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 35. Financial instruments (continued) Financial assets: Carrying values of a significant portion of financial assets do not differ significantly from their fair values due to their short-term nature. Fair values of financial assets are presented in Note 24. Financial liabilities: As at 31 December 2024 and 31 December 2023; for the majority of the borrowings, the fair values are not materially different to their carrying amounts since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature. The carrying amounts and fair values of non-current borrowings and current portion of non-current borrowings are as follows: Carrying amount Fair value As at 31 December 2024: Bank loans 8,890,170 8,882,444 Debt securities 34,114,065 33,913,271 Carrying amount Fair value As at 31 December 2023: Bank loans 9,251,180 9,037,496 Debt securities 41,047,910 40,179,080 The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 of fair value hierarchy due to the use of unobservable inputs. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 335 334 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 36. Guarantees and purchase obligations At 31 December 2024, outstanding purchase commitments with respect to property, plant and equipment, inventory, advertising and sponsorship amount to TL 4,282,294 (31 December 2023: TL 7,305,345). Payments for these commitments will be made within 4 years. The Group is contingently liable in respect of letters of guarantee obtained from banks and given to public institutions and private entities, and financial guarantees provided to subsidiaries amounting to TL 20,511,888 at 31 December 2024 (31 December 2023: TL 25,830,970). BeST has an investment commitment that covers the years 2022-2032 with a total investment amount of not less than USD 100,000, in accordance with the agreement which is signed between the Republic of Belarus, BeST and the Company on 30 November 2022. As of 31 December 2024, the remaining investment commitment is amounting to USD 76,997 (TL equivalent of 2,712,095). 37. Commitments and Contingencies The amounts related to the investigations and lawsuits shared below are disclosed at their nominal values as of 31 December 2024. Disputes on Special Communication Tax Restructuring Act Compensation Lawsuit regarding the SCT for the term 2011 The Large Taxpayers Office levied Special Communication Tax (SCT) and tax penalty on the Company for the term 2011, the Company filed application for restructuring the tax assessment, the application has been rejected. The lawsuit filed against the rejection act, was finalized in favor of the Company. As a result of this case, the Company, filed a lawsuit for the collection of TL 47,405 principal receivable and TL 36,000 damage accrued with a deferment interest. The Court decided to return TL 47,269 principal receivable together with the deferred interest to be calculated as of the collection date. Regional Administrative Court rejected the appeal requests. The lawsuit is ongoing in the appeal stage. Disputes regarding the Law on the Protection of Competition The Competition Board evaluated Articles 4 and 6 of Law No. 4054 regarding the Company and imposed an administrative fine of TL 91,942 in June 2011 on the ground that the Company violated Article 6. The Company filed a lawsuit for the cancellation of the Board decision regarding the parts against itself but the case was finalized against the Company in both the first-instance court and appeal stage. The Company made an individual application to the Constitutional Court, against the respective decision within due time. The Constitutional Court process is pending. Also, the Large Taxpayers Office issued a payment order regarding the aforementioned administrative fine. The Company filed a lawsuit for the cancellation of the payment order but that case also was finalized against the Company. TL 47,780 part of the administrative fine has been deducted from the receivables that the Company has earned as a result of another lawsuit. The remaining TL 44,162 part of the administrative fine was paid in April 2022. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 37. Commitments and Contingencies (continued) Disputes regarding the Law on the Protection of Competition (continued) On the other hand three private companies filed a lawsuits against the Company in relation with this case claiming in total of TL 112,084 for its material damages by reserving its rights for surpluses allegedly. Among these cases, in the case filed for the compensation of total TL 110,484 material damages together with compensation amounting to three times of the damage and interest, a settlement was reached through mediation on 19 April 2024, and TL 130,000 was paid by the Company on 3 May 2024. Accordingly, in the lawsuit between the parties, the court decided that there was no need to decide on the merits of the lawsuit that was not subject to mediation and the decision became final. Among these cases, in the case filed for the compensation of total TL 500 material damages, the Company objected to expert the report and the files has been sent to a new expert committee. The expert report has been submitted to the case file. The parties have duly filed objections to the expert report within the specified timeframe. In accordance with the parties objections, the court has resolved to obtain an additional report from the same expert panel. The case file is currently undergoing expert examination. The other case was finalized in favor of the Company. On the other hand, a third party filed a lawsuit for the cancellation of the part of the Competition Board stating that the Company did not violated Article 4 and the Council of State cancelled this part of the decision. Thereafter Competition Board launched a new investigation and as a result of it the Competition Board decided to apply administrative fine amounting to TL 91,942 in 2019, on the ground that the Company violated Article 4. Afterwards, The Competition Authority accepted some of the objections and reduced the administrative fine to TL 61,294 with its decision. The aforementioned fine that amount of TL 61,294 was paid discount, in the amount of TL 45,971. A decision was made against the Company at the first instance and appeal stages in the lawsuit that filed for cancellation of the fine. The appeal process is pending. Disputes regarding the Law on the Protection of Competition – Investigation on gentleman's agreements for the labour market The Competition Authority initiated an investigation to ascertain whether there was a breach of Article 4 of Law No. 4054 through the establishment of gentleman's agreements within the labor market. The Investigation Report was formally served to the Company on 7 May 2023. In response, the Company submitted its written defense concerning the findings and conclusions, and an oral defense hearing was conducted on 13 February 2024. Following the investigation, it was resolved on 27 February 2024 to impose an administrative fine of TL 57,301 on the Company. This amount has been recognized as a liability in the consolidated financial statements dated 31 December 2024 and will be remitted subsequent to the notification of the reasoned decision. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 337 336 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 37. Commitments and Contingencies (continued) ICTA Investigation Regarding the R&D Obligations ICTA conducts annual investigations to examine whether the company fulfills its obligations arising from the relevant legislation regarding the provision of a certain portion of its investments in the electronic communication network and communication services from suppliers with R&D centers in Turkey, a certain portion from products manufactured in Turkey by SME suppliers established to develop products or systems in Turkey, and a certain portion from products determined to be certified as domestic goods within the framework of the relevant legislation. As a result of the audits carried out for the 2013-2018 period, a total of TL 95,487 administrative fines were imposed on the company, and these fines were paid in the amount of TL 71,615 by taking advantage of the early payment discount, but the legal processes initiated for the cancellation of the fines are ongoing. In addition, ICTA conducts routine investigations regarding 3G and 4.5G investment obligations. This review process is ongoing for the periods 2018-2021. Refunds Investigation ICTA examined whether the refund transactions to subscribers were in compliance with the Board Decisions regulating the refund procedures for postpaid and prepaid subscribers. As a result of the investigation, the Board imposed various administrative fines on the Company for the periods 2010-2018. The related administrative fines were paid in the previous years and the amount stated to be underpaid to the subscribers was paid on 18 May 2023 in the amount of TRY 98,333 together with late payment interest. The legal process initiated by the company, requesting the cancellation of the relevant transaction and the fine, is pending in the appeal stage. Turkcell and Superonline are currently undergoing refund investigations on a similar matter and Turkcell is currently undergoing an ongoing investigation on the Return of Remaining TRY on Prepaid Lines (1March 2019-30 April 2021 Period). The verbal defense meeting for the ongoing Investigation on Return of Remaining TRY on Prepaid Lines regarding Turkcell was held on 18 February 2025. On the other hand, the Investigation on Return of TRY Remaining on Prepaid Lines for the next period (1 May 2021-30 September 2022 Period) has been initiated for our Turkcell. Investigation Regarding the Subscription Agreements (Anonymous Lines) The ICTA initiated an investigation to examine whether the obligations regarding the establishment and implementation of subscription agreements and open lines were fulfilled and as a result of this investigation, the ICTA imposed an administrative fine of TL 99,132 on the Company. The administrative fine was paid on 31 January 2024 as TL 74,349 with early payment discount. The Company filed five separate lawsuits in total for the cancellation of the administrative fines and related transactions. The cases are pending. The examination process of a similar investigations about Number Porting (Turkcell) Subscription Agreements (Superonline) are also ongoing. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 37. Commitments and Contingencies (continued) ICTA – Investigation on Idendity Verification Regulation The ICTA stated that Turkcell and Superonline failed to comply with the face-to-face verification procedures of the Identity Verification Regulation and recorded biometric data in their subscription processes. It was assessed that administrative fines could be imposed on Turkcell and Superonline for four separate violations. On the other hand, the ICTA has also stated that may be take necessary measures for the scope of provision "...national security, public order or the proper execution of public service and the implementation of the provisions introduced by laws, to take over the facilities in return for compensation when necessary, to cancel the authorisation granted in case of non-payment of the authorisation fee within the specified period or in case of gross negligence.". The Company’s written defenses were submitted to the ICTA on 11 March 2024. The investigations are ongoing. Within the scope of the investigation, a verbal defense meeting was held on 3 December 2024. Investigation of Violation of the Board Decision (412 SKK-Netgsm) An investigation was initiated against the Company for not providing services (In violation of the relevant legislation and the Board Decision No. 2024/UK-ETD/412) to Netgsm's subscribers who want to receive services from the Company’s network through new subscription or number portability within the scope of the Virtual Mobile Network Service (VMMS) authorization. Within the scope of the investigation, the Company’s written explanations regarding the violation were prepared and submitted to the ICTA. On 14 January 2025, a verbal defense meeting was held. A lawsuit has been filed for the annulment of Board Decision No. 2024/UK-ETD/412, and no decision has been made yet. Other Investigations Conducted by ICTA The ICTA may carry out routine or specific investigations to determine whether the relevant legislation is being complied with, and a summary of the content of the investigations that have already been concluded is presented below. a) Investigation of compliance with the criteria and target values defined in the legislation regarding 3N and 4.5N Mobile Communication Systems, b) Investigation of compliance with the obligation regarding mobile service quality notifications, c) Investigation on whether the Company fulfills its obligations in relation to Value Added Electronic Communication Services, d) Investigation of compliance with the legislation regarding subscription termination processes, e) Investigation of compliance with Network and Information Security regulations in the Electronic Communications Sector f) Investigation Regarding the Non-Blocking of Calling Line Identification (CLI) in Violation of the Relevant Provisions of the Principles and Procedures for the Use of Calling Line Information as CLI All administrative fines imposed as a result of routine or specific inspections conducted by ICTA have been paid with early payment discount, and legal proceedings initiated for some of them in line with the opinions of the legal counsel for their cancellation are ongoing. The total amount of the related administrative fines is TL 30,515. . TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 339 338 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 37. Commitments and Contingencies (continued) Other Investigations Conducted by ICTA (continued) The ICTA may carry out routine or specific investigations to determine whether the relevant legislation is being complied with, and a summary of the content of the investigations that have not been concluded is presented below. a) Investigation regarding the compliance of the works and transactions carried out in the processes from the submission to the finalization of the facility sharing request with the relevant legislation, b) Investigation of whether the obligations defined in the Regulation on Consumer Rights in the Electronic Communications Sector and other relevant legislation regarding committed subscriptions are fulfilled. Other ongoing lawsuits and tax investigations Probability of an outflow of resources embodying economic benefits for 2018 and 2019 fiscal years with regards to notification of Information and Communication Technologies Authority for radio fee related to 2018 fiscal year was considered by the Company management. In this respect, TL 128,429 was paid in November 2019 by reserving right to take legal actions and legal actions were taken for 2018 fiscal year. The Court rejected the cases. The Company appealed the decisions before the Regional Administrative Court. The Regional Administrative Court rejected the appeal request. The Company appealed the decision in due time. The appeal process is pending. On the other hand, additional TL 13,465 for December 2018 was paid with reservation on 29 January 2021 with regards to notification of Information and Communication Technologies Authority for the same reason. The process is ongoing. General Assessment of Ongoing Litigation and Investigation Based on the management opinion, an outflow of resources embodying economic benefits is deemed as probable on some of the aforementioned lawsuits and investigations, thus, TL 249,519 provision is recognized in the consolidated financial statements as at and for the period ended 31 December 2024 (31 December 2023: TL 379,519). The provision allocated for ongoing investigations, inquiries, lawsuits, and audits represents the Company Management's best estimate; however, the results of these proceedings may differ from the Group's assessments. TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 38. Related parties Transactions with key management personnel Key management personnel comprise the Group's members of the Board of Directors and chief officers. There are no loans to key management personnel as of 31 December 2024 and 2023. The Group provides additional benefits to key management personnel and contributions to retirement plans based on a pre-determined ratio of compensation. 31 December 2024 31 December 2023 Short-term benefits 338,944 529,358 Long-term benefits 371 3,529 Termination benefits 664 986 Share based payments 365,860 42,097 705,839 575,970 The following transactions occurred with related parties: Revenue from related parties 31 December 2024 31 December 2023 Türk Telekom Mobil Iletisim Hizmetleri A.S. (“TT Mobil”) (*) 1,116,059 1,559,659 Türk Hava Yolları A.S. (“THY”) (*) 429,967 433,375 Enerji Piyasaları İşletme A.S. (“EPIAS”)(*) 371,836 378,272 Gunes Express Havacilik A.S. (“Sun Express”) (*) 251,654 224,997 Ziraat Bankası A.S. (“Ziraat Bankası”) (*) 199,168 1,066,995 Turksat Uydu Haberlesme Kablo TV ve Isletme A.S.(“Turksat”)(*) 169,652 113,441 Turk Telekomunikasyon A.S. (“TT”)(*) 135,516 171,596 Türkiye Sigorta A.Ş. ("Türkiye Sigorta")(*) 81,041 510,470 TOGG 77,976 22,525 Turkiye Hayat ve Emeklilik A.S.(*) 77,122 44,401 Turkiye Halk Bankası A.S. (“Halkbank”) (*) 43,518 37,328 Turkiye Vakiflar Bankası TAO (“Vakifbank”)(*) 39,454 105,835 TVF IFM Gayrimenkul Insaat ve Yonetim A.S. (*) 23,509 117,975 Ziraat Katilim Bankasi A.S. (“Ziraat Katilim”)(*) 10,996 107,139 BIST (*) 7,277 24,270 Other 76,627 48,124 3,111,372 4,966,402 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 341 340 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 38. Related parties (continued) Related party expenses 31 December 2024 31 December 2023 Türk Telekomünikasyon A.S (*) 2,083,003 2,026,342 TT Mobil (*) 1,079,552 1,661,860 EPIAS (*) 756,455 1,145,205 Istanbul Takas ve Saklama Bankasi A.S. ("Takasbank") (*) 551,925 549,566 PTT (*) 132,375 103,921 Boru Hatları ile Petrol Tasıma A.S. (“BOTAS”) (*) 87,634 83,949 Turksat (*) 66,682 103,293 Others 1,288,981 569,791 6,046,607 6,243,927 (*) Related parties, which TVF directly and / or indirectly has control or joint control or significant influence. TVF becomes the largest shareholder of Turk Telekom with 61.68% of the shares as of 31 March 2022. Therefore, companies of Turk Telekom have been reported as related party as of 31 March 2022. Transactions between the Group and Turk Telekom are related with telecommunication services. Details of the financial assets and liabilities with related parties as of 31 December 2024 and 2023 are as follows: 31 December 2024 31 December 2023 Banks - Time deposits 25,646,258 45,290,997 Banks - Demand deposits 811,532 1,040,412 Currency protected time deposit 3,132,293 8,913,765 Receivables from reverse repo 1,695,149 - Bank borrowings (9,652,466) (10,199,160) Debt securities issued (925,603) (1,381,581) Lease liabilities (111,972) (210,833) Impairment loss provision (3,721) (46,032) 20,591,470 43,407,568 As of 31 December 2024, the amounts of letters of guarantee given to the related parties is TL 585,510 (31 December 2023:TL 481,654). Details of the time deposits at related parties as of 31 December 2024 and 2023 are as follows: 31 December 2024 31 December 2023 Ziraat Bankasi 6,312,053 11,665,907 Halkbank 6,367,808 16,374,759 Vakifbank 8,757,588 12,524,783 Ziraat Katilim Bankasi A.S. 4,208,809 4,725,548 25,646,258 45,290,997 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 38. Related parties (continued) Details of the time deposits at related parties Amount in Original Currency Currency Effective Interest Rate Maturity 31 December 2024 233,940 USD 2.1% January 2025 8,241,594 196,070 EUR 2.3% January 2025 7,210,579 9,828,355 TL 47.4% January - May 2025 10,194,085 25,646,258 Amount in Original Currency Currency Effective Interest Rate Maturity 31 December 2023 342,372 USD 4.4% January - February 2024 14,569,081 455,757 EUR 3.7% January - February 2024 21,482,276 6,376,563 TL 40.7% January 2024 9,239,638 45,290,995 Details of the bank borrowings at related parties Principle Amount Currency Effective Interest Rate Maturity 31 December 2024 7,297,000 TL 44.0% - 56.0% January - June 2025 8,663,215 680,000 TL 47.1% - 47.6% January 2025 682,648 285,000 TL 53.1% - 58.0% January 2025 - August 2027 294,044 11,981 TL 28.8% - 29.3% April 2025 12,559 9,652,466 Principle Amount Currency Effective Interest Rate Maturity 31 December 2023 4,673,500 TL 12.2% - 54.4% February - October 2024 7,167,928 553,450 TL 19.8% - 55.2% January - September 2024 801,896 1,349,880 TL 41.7% - 42.3% January 2024 1,958,601 72,206 TL 28.8% - 49.8% August 2024 - April 2025 111,574 104,860 TL 34.80% February 2024 159,161 10,199,160 TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 343 342 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 38. Related parties (continued) Details of the debt securities issued at related parties Principle Amount Currency Effective Interest Rate Maturity 31 December 2024 900,000 TL 42,0% - 44.5% March - May 2025 925,603 925,603 Principle Amount Currency Effective Interest Rate Maturity 31 December 2023 900,000 TL 39.0% - 44.5% January 2024 - March 2024 1,381,581 1,381,581 Details of the lease liabilities at related parties Currency Effective Interest Rate Payment Period 31 December 2024 TL 12.5% - 62.0% 2024 - 2033 111,972 111,972 Currency Effective Interest Rate Payment Period 31 December 2023 EUR 0.3% - %3.7% 2023 - 2025 88,435 TL 12.5% - 55.25% 2023 - 2036 122,399 210,834 Interest income from related parties: 31 December 2024 31 December 2023 31 December 2022 Vakifbank 3,703,418 3,080,795 1,192,791 Ziraat Bankasi 1,094,589 485,791 505,431 Halkbank 884,857 708,380 447,613 Ziraat Katilim 135,267 204,458 86,230 Other 32,824 419 118 5,850,955 4,479,843 2,232,183 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 38. Related parties (continued) Interest expense to related parties: 31 December 2024 31 December 2023 31 December 2022 Vakifbank 1,843,714 930,256 741,697 Ziraat Bankasi 92,767 232,383 160,395 Halk Varlık Kiralama A.S. ("Halk Varlık Kiralama") 327,904 384,601 143,660 Halkbank 17,586 20,776 5,537 Other 4,929 12,941 2,663 2,286,900 1,580,957 1,053,952 Revenue from related parties is generally related to telecommunication, call center and other miscellaneous services. Transactions between the Group and EPIAS are related to the energy services; transactions between the Group and Sofra are related to meal coupon services; transactions between the Group and BOTAS are related to infrastructure services; transactions between the Group and Halkbank, Ziraat Bankasi and Vakifbank are related to banking services; transactions between the Group and PTT are related to cargo transportation; transactions between the Group and Turksat are related to telecommunication services and transactions between the Group and BIST are related to stock market services. Receivables from related parties are not collateralized. TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 345 344 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 39. Subsidiaries The Group’s ultimate parent company is TVF, while subsidiaries, associates and a joint venture of the Company as at 31 December 2024 and 31 December 2023 are as follows: Effective Ownership Interest Subsidiaries Country of 31 December 31 December Name Incorporation Business 2024 (%) 2023 (%) Turktell Türkiye Information technology, value added GSM services and entertainment investments 100 100 Turkcell Superonline Türkiye Telecommunications, television services and content services 100 100 Turkcell Dijital Türkiye Digitalization services and products 100 100 Dijital Egitim (**) Türkiye Dijital educations 100 51 Turkcell Satis Türkiye Sales, delivery and digital sales services 100 100 Turkcell Teknoloji Türkiye Research and development 100 100 Turkcell Gayrimenkul Türkiye Property investments 100 100 Turkcell Enerji Türkiye Electricity energy trade and wholesale and retail electricity sales 100 100 Boyut Enerji Türkiye Electricity energy trade and wholesale and retail electricity sales 100 100 Turkcell Finansman Türkiye Consumer financing services 100 100 Turkcell Sigorta Türkiye Insurance agency activities 100 100 Turkcell Dijital Sigorta Türkiye Dijital agency activities 100 100 Turkcell Odeme Türkiye Payment services and e-money license 100 100 Lifecell Dijital Servisler Türkiye Development and providing of digital services and products 100 100 Lifecell Bulut Türkiye Cloud solutions services 100 100 Lifecell TV Türkiye Online radio, television and on-demand streaming services 100 100 Lifecell Muzik Türkiye Radio, television and on-demand streaming services 100 100 Global Tower Türkiye Telecommunications infrastructure business 100 100 Atmosware Teknoloji Türkiye Develop software products and services, training software developers 100 100 UkrTower (*) Ukraine Telecommunications infrastructure business - 100 Beltower Republic of Belarus Telecommunications infrastructure business 100 100 Eastasia Netherlands Telecommunications investments 100 100 Kibris Telekom Turkish Republic of Northern Cyprus Telecommunications 100 100 Lifecell Digital Turkish Republic of Northern Cyprus Telecommunications 100 100 Turkcell Dijital Technologies Turkish Republic of Northern Cyprus Electronic payment services 100 100 Turkcell Global Bilgi Türkiye Customer relations and human resources management 100 100 Global LLC (*) Ukraine Customer relations management - 100 Rehberlik Türkiye Directory assistance 100 100 Lifecell Ventures Netherlands Telecommunications investments 100 100 Lifecell (*) Ukraine Telecommunications - 100 Paycell LLC Ukraine Consumer financing services 100 100 Paycell Europe Germany Payment services and e-money 100 100 Yaani Netherlands Internet search engine and browser services 100 100 BiP B.V. Netherlands Providing digital services and products 100 100 BiP A.S. Türkiye Providing digital services and products 100 100 BeST Republic of Belarus Telecommunications 100 100 Turkcell GSYF Türkiye Venture capital investment fund 100 100 W3 Türkiye Information technology - 100 Sofra (***) Türkiye Meal coupons and cards 100 66 TDC (****) Türkiye Data processing 100 - Lifetech Republic of Belarus Information technology, programming and technical support 100 100 Effective Ownership Interest Associates Country of 31 December 31 December Name Incorporation Business 2024 (%) 2023 (%) TOGG Türkiye Electric passenger car development, production and trading activities 23 23 (*) UkrTower, Global LLC and Lifecell have been sold on 9 September 2024. (**) The registration regarding the acquisition of shares of Dijital Eğitim Teknolojileri A.Ş. ("Dijital Eğitim") was completed on 2 August 2024. (***) On 21 October 2024, the Group acquired the remaining 33.3% of shares in Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. (“Sofra”), which was previously a joint venture, resulting in the transfer of control of Sofra to the Group. (****) TDC Veri Hizmetleri A.Ş was established on 11 July 2024 TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 40. Investments accounted for using the equity method The details of carrying values of investments accounted for using the equity method are as follows: a) Joint Ventures 31 December 2024 31 December 2023 Sofra - 17,826 b) Associates TOGG 5,294,025 8,456,656 The movement of investments accounted for using the equity method is as follows: 31 December 2024 31 December 2023 Opening balance 8,474,482 5,487,963 Shares of profit / (loss) (3,162,643) 2,202,029 Transfer from equity pickup to subsidiary (17,882) - Contribution to capital increase 68 784,490 Closing balance 5,294,025 8,474,482 The group holds an interest in a joint venture, Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş.(“Sofra”), and an interest in an associate, Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş(“TOGG”). The financial statements of Sofra and TOGG are prepared for the same reporting period as the Group. On 21 October 2024, the Group acquired the remaining 33.3% of shares in Sofra Kurumsal ve Ödüllendirme Hizmetleri A.Ş. (“Sofra”), which was previously a joint venture, resulting in the transfer of control of Sofra to the Group TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 347 346 | TURKCELL 2024 INTEGRATED ANNUAL REPORT TURKCELL ILETISIM HIZMETLERI AS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at and for the year ended 31 December 2024 (All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units and are expressed in terms of purchasing power of Turkish Lira as of 31 December 2024 unless otherwise stated.) 41. Cash flow information Net financial liabilities reconciliation: Debt securities issued Loans and Borrowings Lease liabilities Total Derivative İnstruments, net Total Balance at 1 January 2024 (46,010,564) (71,884,263) (3,504,921) (121,399,748) 2,440,572 (118,959,176) Cash inflows (14,870,998) (49,117,214) - (63,988,212) 5,417,456 (58,570,756) Cash outflows 19,756,028 50,156,380 5,024,425 74,936,833 (5,791,757) 69,145,076 Other non-cash movements (10,856,573) (15,362,228) (7,732,764) (33,951,565) 309,117 (33,642,448) Inflation adjustment 14,864,485 23,807,212 1,390,736 40,062,433 (827,743) 39,234,690 Balance at 31 December 2024 (37,117,622) (62,400,113) (4,822,524) (104,340,259) 1,547,645 (102,792,614) Debt securities issued Loans Lease liabilities Total Derivative Assets, net Total Balance at 1 January 2023 (45,528,562) (75,321,078) (7,268,306) (128,117,946) 4,476,015 (123,641,931) Cash inflows (11,296,562) (90,510,753) - (101,807,315) 11,188,868 (90,618,447) Cash outflows 10,637,336 85,599,452 5,951,279 102,188,067 (6,867,708) 95,320,359 Other non-cash movements (22,293,415) (32,720,676) (8,029,646) (63,043,737) (7,643,357) (70,687,094) Transfer to asset held for sale - 3,961,827 2,570,450 6,532,277 - 6,532,277 Inflation adjustment 22,470,639 37,106,965 3,271,302 62,848,906 1,286,754 64,135,660 Balance at 31 December 2023 (46,010,564) (71,884,263) (3,504,921) (121,399,748) 2,440,572 (118,959,176) 42. Subsequent events The sale process of the sustainable bond issuance of the Company with a nominal amount of USD 500 million, 7-year maturity, a redemption date of 24 January 2032, a fixed annual coupon rate of 7.65%, and a sales price of 100% of the nominal value, to qualified investors abroad was completed on 24 January 2025. The subscription agreement for the issuance was signed on 22 January 2025. The sustainable bond is listed on the Irish Stock Exchange (Euronext Dublin). The sale process of the conventional bond issuance of the Company with a nominal amount of USD 500 million, 5-year maturity, a redemption date of 24 January 2030, a fixed annual coupon rate of 7.45%, and a sales price of 100% of the nominal value, to qualified investors abroad was completed on 24 January 2025. The subscription agreement for the issuance was signed on 22 January 2025. The bond is listed on the Irish Stock Exchange (Euronext Dublin). Within the scope of the issue limit of TRY 8 billion approved by the Capital Markets Board; the book building of the financing bond issuance of the Company with a maturity date of 9 May 2025, an annual simple interest of 43.50% with a nominal amount of TRY 2 billion to qualified investors within Türkiye, without a public placement was completed, and the securities transferred to the investor accounts on 30 January 2025. The capital of the Company's subsidiary, CJSC Belarusian Telecommunications Network ("BeST"), has been increased by BYN 40,906 from BYN 1,322,960 to BYN 1,363,866. The Company's pre-emption rights with respect to the capital increase have been fully paid. Our Offices Location Address ADANA PLAZA Turhan Cemal Berikel Bulvarı No: 212 Seyhan - Adana SAKARYA NDC Bahçelievler Mah.Cumhuriyet Cad. Kamelya Sok. No:14 Sakarya - Adapazarı ANKARA PLAZA Eskişehir Yolu 9.Km No:264 Pk.06510 Söğütözü - Ankara BAŞKENT NDC Başkent İvedik Mah. 1323. Cadde No:37 Yenimahalle - Ankara ANTALYA PLAZA Kızıltoprak Mah. 915 Sok.No:3 Muratpaşa-Antalya BURSA PLAZA Organize Sanayi Bölge Müd. Kırmızı Cad. No:4 Nilüfer - Bursa DİYARBAKIR PLAZA Bağcılar Mahallesi Urfa Bulvarı Turkcell Plaza Apt. No:151 Bağlar- Diyarbakır EDİRNE NDC Şükrü Paşa Mah. Kıyık Cad. Hilly Otel Yanı No:254 Edirne ERZURUM PLAZA Ilıca yolu Organize Sanayi Bölgesi 4.Sok Erzurum GAZİANTEP PLAZA Kocaoğlan Mah. Demokrasi Bulvarı No:185 / 1 Şahinbey - Gaziantep HATAY NDC Güzelbirlik Mah. Yunus Emre Cad. No:11-B Güzelburç Hatay KÜÇÜKYALI PLAZA / HEAD OFFICE Aydınevler Mahallesi İnönü Caddesi No:20 B Blok 34854 Maltepe - İstanbul TEPEBAŞI PLAZA Meşrutiyet Cad.No:71 Tepebaşı 34430 İstanbul MAHMUTBEY NDC Mahmutbey Mah İnönü Caddesi No:89 Bağcılar - İstanbul İZMİR PLAZA Kazım Dirik Mah. 367/7 Sokak No:12 Bornova - İzmir İZMİT PLAZA Yahya Kaptan Mah. Bahçeşehir Sok. No: 30 İzmit-Kocaeli KAYSERİ PLAZA Kayseri Organize Sanayi Bölgesi 13. Cadde No:16 Melikgazi- Kayseri KONYA OFFICE Parsana Mh. Zümrütova Sok.Selçuker Merkez Kat:8 No:1 Selçuklu/Konya KONYA NDC 1.Org.San. Sıhhiye Sok.Selçuklu/ Konya MALATYA NDC Hoca Ahmet Yesevi Mah. Mahfuz Sok. No: 35/A Yeşilyurt - Malatya MERSİN PLAZA Portakal Mah. 80050 Sok. No:3 Toroslar - Mersin MUĞLA PLAZA Musluhittin Mahallesi Atatürk Bulvarı No:61 Muğla SAMSUN PLAZA Mimar Sinan Mah. 160.sok.No:18 PK:55200 Atakum - Samsun TRABZON PLAZA Mısırlı Mah. Hasan Turfanda yolu No:3 Çukurçayır - Trabzon VAN PLAZA İpek yolu 8 km Yeni Mah. Sahil Sok. No: 27 Edremit - Van KARTAL DATA CENTER Topselvi Mahallesi Dipçik Sokak No:31 Kartal - İstanbul ANKARA DATA CENTER Veri Merkezi Anadolu Osb. 12 Cd. No:15 Malıköy Sincan- Ankara GEBZE DATA CENTER Gebze OSB, Tembelova Mevkii Mah. 3300 Sok. No: 3314 Gebze-Kocaeli İZMİR DATA CENTER 10005. Sk. No:37 İTOB OSB Tekeli Menderes -İzmir AVRUPA DATA CENTER Karaağaç OSB Mh.48.Sok.No: 1/1 Kale Kilit Fab. yanı Kapaklı-Tekirdağ TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 349 348 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Abbreviation Description Glossary Abbreviation Description 3G A third generation mobile telecommunication system established according to IMT-2000/UMTS standards, or standards developed based on these standards 4.5G A generation containing technologies of more advanced features than standard 4G technology 5G A generation containing technologies having more advanced features than standard 4G technology ADS American Depositary Share OSCE PA Organization for Security and Co-operation in Europe Parliamentary Assembly ARPU Average monthly revenue generated per mobile or fixed broadband subscriber Base Station A fixed transceiver device in each cell of a mobile communications network enabling communication between mobile phones and radio signals within the cell Beacon A location-based data provider utilized in My Dream Companion project BİST Borsa İstanbul IT Tools for generating, collecting, accumulating, processing, recovering, disseminating, protecting, and assisting ICTA Information Communication Technologies Authority CELTIC EUREKA Cluster focusing on the Information and Communications Technology and Telecommunications CİMER The Presidential Communication Center Roaming A mobile communication feature that allows subscribers of one network to use their own mobile phones and numbers within the coverage area of another operator. DSS Digital Service Provider EMS Emergency Mobile Services ER Integrated Reporting Framework ESG Environmental, Social, Governance ETSI European Telecommunications Standards Institute EUREKA (Exceptional Unconventional Research Enabling Knowledge Acceleration) It is an intergovernmental R&D organization financed by governments of more than forty countries FCPA Foreign Corrupt Practices Act Gbps A data transmission speed GRI Global Reporting Initiative GSM This is a digital mobile communication system, standardized by the European Communications Standards Institute and based on digital transmission with roaming and the cellular network structure being used in Europe, Japan and various other countries GSMA (The GSM Association - Global System for Mobile Communications) The GSM Association is a community consisting of mobile operators and telecom-related companies with the aim of standardizing and developing the Mobile Telecommunications Sector HTK Communication Technology Cluster IDC (International Data Corporation) American market research company examine the development of technology IIRC International Integrated Reporting Council IMS (IP multimedia subsystem) Platform to provide a new generation of wired, wireless service providers IoT (Internet of Things) The mobilization, interpretation and communication/interaction of the data received through sensors ITEA EUREKA Cluster program supporting innovative, industry-driven, pre-competitive R&D projects in the area of Software-intensive Systems & Services IVR Interactive Voice Response KEP Registered E-mail KPI Key Performance Indicator LTE Technology that ensures to achieve very high speeds by combining carriers in the same or different frequency bands LTE-Advanced A mobile communications standard comprising advanced features such as carrier coupling, which enables mobile broadband speed of over 150 MBps in LTE m-TOD Association of Mobile Telecommunication Operators M2M Machine to Machine is the general name of the technology that allows devices to exchange information and conduct transactions without human intervention MHz (Megahertz) A frequency unit MSCI ESG Morgan Stanley Capital International Environmental, Social, Governance Index NB-IoT A technology defined by 3GPP for Internet of Things NFVI Network Infrastructure Virtualization Infrastructure NGMN An organization (Next Generation Mobile Networks Association), of which Turkcell is a member, and which several operators, suppliers and universities in the world are a part of, giving direction to technology standards and technology producing companies in relation to operator requirements NPS (Net Promoter Score) The score that measures whether or not customers recommend the products they use to others NYSE New York Stock Exchange OFAC Office of Foreign Assets Control OIC-CERT The Organization of the Islamic Cooperation – Computer Emergency Response Team OSS Operational Support System RPA Robotic Process Automation RTM (Real Time Monitoring) 24/7 monitoring and reporting system on the system ABC Anti-Bribery and Anti-Corruption Sarbanes-Oxley (SOX) Corporate and Auditing Accountability, Responsibility, and Transparency Act SBTi Science Based Targets Initiative Scratch Scratch is a programming language developed by MIT (Massachusetts Institute of Technology), which has a user-friendly interface, designed for the use of children between the ages 8 and 16 SD-WAN Acronym for software-defined networking in a wide area network (WAN) SDG Sustainable Development Goals SEC U.S. Securities and Exchange Commission SingleRAN Radio network equipment that can support technologies of different generations (2G, 3G, 4G and 5G) at the same time SKD Sustainable Development Association of Türkiye SMS A mobile communication system allowing users to receive and send messages that can be constituted of both alphabetic and numerical characters of up to 160 characters, to and from mobile phones through a short message service SOAR Security Orchestration Automation and Response SOC Service Operations Center CMB Capital Markets Board NGO Non-Governmental Organizations Carrier Aggregation A technique allowing more bandwidth and consequently higher speeds to be obtained by joining frequencies called carriers Tbps (TeraBytes Per Second) One trillion bits or bytes per second TÇM Consumer Solution Center TODİEK Turkcell Common Values and Code of Business Ethics Togg Türkiye's Automobile Joint Venture Group Inc. TTK Turkish Code of Commerce IFRS International Financial Reporting Standards UN United Nations UN WEPs UN Women’s Empowerment Principles UNGC United Nations Global Compact WBCSD World Business council for Sustainable Development WEF World Economic Forum TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 351 350 | TURKCELL 2024 INTEGRATED ANNUAL REPORT Contact Legal Disclaimer The sustainability section of our integrated report has been prepared in accordance with the principles of the Global Reporting Initiative (GRI), the United Nations Global Compact, and the United Nations Women’s Empowerment Principles. Sustainability data has been provided for informational purposes only and is not intended to form the basis of any investment decision. The publication of this data does not consti- tute an offer or invitation to sell Turkcell shares or any part of an offer or invitation to such a sale process. The information and related docu- ments provided in this section are accurate, made in good faith, and based on reliable sources as of the date of this report. However, Turkcell does not make any statements, warranties, or promises regarding this data. Turkcell İletişim Hizmetleri A.Ş. Turkcell Küçükyalı Plaza, Aydınevler Mahallesi İnönü Caddesi No:20 Küçükyalı B Blok Ofispark - Maltepe / İSTANBUL Registration No: 304844 www.turkcell.com.tr dahaiyibirdunya@turkcell.com.tr Reporting Advisor & Design: www.kiymetiharbiye.com TURKCELL CREATING VALUE ABOUT TURKCELL STRONG CORPORATE GOVERNANCE FINANCIAL CAPITAL HUMAN CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL CAPITAL NATURAL CAPITAL APPENDICES TURKCELL 2024 INTEGRATED ANNUAL REPORT | 353 352 | TURKCELL 2024 INTEGRATED ANNUAL REPORT