[CONSOLIDATION_METHOD_TITLE] [CONSOLIDATION_METHOD]
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The following statement is shared in response to the questions received from our investors regarding the carbon border adjustment mechanism.

Our company, which exported 77% of its total sales to 140 different countries on 6 continents in 2022, has been carrying out necessary efforts and working on reporting and verification studies (ISO 14064) for the carbon border adjustment mechanism that will start as of January 2026 and impact companies exporting to EU countries. We will be making our official reporting to our stakeholders starting from 2024.

The management of energy and greenhouse gas emissions is one of the fundamental elements of our sustainability strategy, and we aim to be a pioneer in our sector in this field. We currently reduce our carbon emissions by meeting approximately 33% of our electrical energy consumption from renewable sources with our rooftop Solar Power Plants. We expect that the entire electricity need of Kocaer Çelik will be met with approximately 20% of the electricity generated through the 24 MW geothermal power plant investment together with a 24 MW hybrid solar power plant planned in our geothermal license area in Aydın province, owned by Kocaer Enerji (our 99% subsidiary).

In line with our company's carbon neutral targets, we plan to create carbon credits that will prevent greenhouse gas emissions equivalent to 80,500 tons of CO2 per year with our targeted net electricity production after our Geothermal Power Plant 1st phase 24 MW investment. We calculate that with the Aydın Solar Power Plant which is planned to be operative for the geothermal power plant's own internal consumption, we will create carbon credits that will prevent greenhouse gas emissions equivalent to 22,700 tons of CO2 per year.

Following the completion of these investments, we aim to become a company that neutralizes Scope 1 and Scope 2 greenhouse gas emissions while becoming fully independent in energy, turning into a company that offers carbon credits to the market.

It is announced to the public with respect.