BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 135 Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi Ticaret Anonim Şirketi and Its Subsidiaries (Currency in Turkish Lira (“TL”) unless otherwise stated). Notes to the Consolidated Financial Statements for the Year Ended 31 December 2022 1. ORGANIZATION AND NATURE OF OPERATIONS Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi ve Ticaret A.Ş. (the “Company”) was established in Istanbul in 2002. The Company’s fields of activity are to make and have the installations of all kinds of buildings related to heating, cooling, ventilation, air conditioning and air conditioning, and to provide consultancy and engineering services. The Company’s registered address: ‘’Dudullu Organize Sanayi Bölgesi 1.Cadde No:3 Ümraniye – İstanbul. As of 31 December 2022 the average number of personnel employed during the period is 466 (31 December 2021: 417). As of 31 December 2022 and 2021, the shareholding structure of the Company is as follows: 31 December 2022 31 December 2021 Shareholders Share Rate Share Amount Share Rate Share Amount Mesut Altan 25,98% 58.196.077,6 30,88% 31.500.000 İdris Çakır 25,98% 58.196.077,6 30,88% 31.500.000 Public Shares 48,04% 107.607.844,8 38,24% 39.000.000 Capital * 224.000.000 102.000.000 * According to the decision made by our company on September 8, 2022, the issued capital of 102.000.000 TL will be increased by 119.60784% free of charge within the registered capital ceiling of 300.000.000 TL, reaching 224.000.000 TL. The application for the amendment of the Articles of Association, regarding this increase, was made on September 14, 2022, and it was approved by the Capital Markets Board on November 17, 2022. The details of the company’s affiliated subsidiaries (collectively referred to as the “Group”) are as follows: Erde Mühendislik Sanayi ve Ticaret A.Ş. was acquired on December 10, 2013 for a total of 10.463.383 TL (Note 2). Its main activities include the implementation of electrical installations, processes, and systems, as well as providing consultancy and engineering services in these areas. Solar Santral Enerji was acquired on December 31, 2022 for a total of 28.667.645 TL (Note 3). Its main activities include the establishment, commissioning, leasing, and operation of electricity generation facilities in industrial establishments and buildings, following the procurement of necessary licenses from EPDK (Energy Market Regulatory Authority). The company also provides project, contracting, engineering, and consultancy services for all necessary facilities and transmission lines related to electricity generation, among other services. 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 2.1 Basis of presentation of the consolidated financial statements The consolidated financial statements and disclosures have been prepared in accordance with Turkish Financial Reporting Standards (TFRS) promulgated by the Public Oversight Accounting and Auditing Standards Authority (POA) as set out in the communiqué numbered II-14.1 “Communiqué on the Principles of Financial Reporting In Capital Markets” (“the Communiqué”) of POA announced by the Capital Markets Board (“CMB”) (hereinafter will be referred to as “the CMB Accounting Standards”) on 13 June 2013 which is published on Official Gazette numbered 28676. Turkish Financial Reporting Standards consist of Turkish Accounting and Financial Reporting Standards and additions and interpretations regarding these standards (“TAS/TFRS”) as adopted by the Public Oversight Accounting and Auditing Standards Authority (“POA”). The financial statements are presented in accordance with the TAS Taxonomy published by the POA and the formats specified in the Financial Statements Examples and User Guidelines published by the CMB.