BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 174 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 30. NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS a) Capital Risk Management While trying to ensure the continuity of its activities in capital management, the Group also aims to increase its profits by using the debt and equity balance in the most efficient way. The Group’s capital structure consists of cash and cash equivalents and equity items including capital and retained earnings. The Group’s cost of capital and risks associated with each capital class are evaluated by the board of directors and senior management. In line with the aforementioned assessments, it is aimed to keep the capital structure in balance by making decisions about capital increase or the Group’s acquisition of new debt. As of the 31 December 2022 and 2021, The Ratio of Net Debts to Equity is as follows; 31 December 2022 31 December 2021 Total Financial and Trade Payables 605.805.148 369.716.907 Minus: Cash and Cash Equivalents (356.356.085) (180.095.042) Net Debt 249.449.063 189.621.865 Total Equity 551.551.090 342.414.967 Debt/Capital Ratio 0,45 0,55 b) Financial Risk Factors The Group’s finance department; Responsible for identifying, measuring and proactively managing the financial risk that the Group is exposed to. For this purpose, it is responsible for ensuring regular access to domestic and foreign financial markets and monitoring and managing the financial risks faced by companies related to their activities through risk reports that show the analysis according to the level and size. These risks are; market risk (including currency risk, interest rate risk and price risk) includes credit risk, liquidity risk and cash flow interest rate risk. The Group does not trade financial instruments including derivative financial instruments for speculative reasons.