Dividend policy is determined by the General Assembly Meeting in accordance with the Capital Market Regulations and the Articles of Association.

Dividend policy and the annual dividend proposal covering the details stipulated in the CMB Corporate Governance Principles are set forth in the annual report, presented to the shareholders during the General Assembly Meeting, and also detailed information about the dividend history and capital increases are posted on our Company's website for the public.

Our Company conducts a dividend policy within the framework of the provisions of the TCC, Capital Markets Regulations, Tax Regulations and other relevant legislations as well as the articles of the Articles of Association governing the distribution of profits.

In determining dividend distribution, the long-term strategy of our Group, capital requirements of our Company, our affiliates and subsidiaries, investment and financing policies, profitability and cash position are taken into consideration.

In principle, 20% of the “distributable profit for the period”, calculated as per the Capital Markets Regulations and other relevant legislation, is distributed in cash or as bonus issue based on the net profit for the period as shown on the financial statements prepared as per the Capital Markets Regulations and subjected to independent audit.

If the distributable profit calculated as above is less than 5% of the issued capital, then no dividends are paid.

Dividends to be distributed as per the decision taken at the General Meeting can be paid out fully in cash or fully as bonus issue, or partially in cash and partially as bonus issue.

If dividend distribution is in cash, it is completed until the end of the fifth month following the end of the respective fiscal period, at the latest, or if it is in the form of bonus issue, it is completed until the end of sixth month, at the latest.

In accordance with the dividend policy, the dividends are allocated equally to all entitled shareholders.

Pursuant to article 32 of our Articles of Association, no less than 1% and no more than 2% of the amount remaining after the allocation of the first series of legal reserve fund, financial obligations, and dividend to be withheld under the Capital Market Regulations from the pre-tax earnings is provided to Koç Holding Pension and Assistance Foundation. Additionally, without prejudice to the first dividend established under the Capital Markets Legislation, after the first series of legal reserve fund, financial obligations and 5% of the paid-in capital are deducted from the pre-tax earnings, 3% of the remaining amount is allocated to holders of dividend-right certificates.