The dividends are distributed to each shareholder who hold shares as of the date of distribution equally in proportion to the number of their shares without giving consideration to the dates of issue and acquiring. No privilege is acknowledged in the distribution of dividends.

 

The resolution for the distribution of dividends is made by the shareholders general assembly upon the proposal of the board of directors taking into consideration the medium-term and long-term strategies, investment and financing plans of our company, and the conditions in the market after the end of each fiscal year.

 

When the resolution for distribution of dividends is made the balance between the interests of the shareholders and of the company is taken into consideration.

 

The whole amount of the dividends that are planned to be distributed are only distributed as long as they can be covered by the amount in the legal book records (kept according to the Tax Procedural Law).

 

In the event that the dividends to be distributed at the end of the fiscal year are less than 5% of the issued capital, they are not distributed.

 

Within this framework pursuant to the terms and conditions of the legislation by which we are bound, 5% of the calculated dividends to be distributed in the end of the fiscal year are distributed to the shareholders as first dividends within the framework indicated in our articles of association, and at most 5 % of the remaining amount is distributed in cash to the members of the board of directors and to the employees, and of the remaining amount at least 20% is distributed in cash and/or as no-par share and as a second dividend to the shareholders.

 

The dividends can be paid at one time or in installments on the condition that the resolution in this respect be made in the shareholders general assembly meeting.

The date of the distribution of the dividends is resolved by the shareholders general assembly upon the proposal of the board of directors. In the event that a resolution is made that the dividends are to be distributed at one time, this time period cannot exceed 6 months starting from the date of the shareholders general assembly meeting. In the event that a resolution is made for the payment of the dividends in installments, the first installment is paid within 45 days at the latest. The shareholders general assembly may give authorization to the board of directors in the session during which dividend distribution is discussed so that the board can make resolutions with respect to the time of the distribution of the dividends.

 

The board of directors may make a resolution for the distribution of profit share advance payments in accordance with the related legislation and the articles of association. With respect to the profit share advance payment the terms and conditions of the related legislation are applied.

 

In the event that the board of directors proposes non-distribution of dividends to the shareholders general assembly in which the distribution of dividends will be discussed, the reasons for this and for how the dividends that are not distributed will be used is indicated in the item of the agenda related to the distribution of dividends.

Yours sincerely,

IŞIKLAR  ENERJİ VE YAPI HOLDİNG A.Ş.