2Q 2025 Financial Report

To the General Assembly of Polisan Holding A.Ş.

Introduction

We have reviewed the accompanying consolidated statement of financial position of Polisan Holding A.Ş. (the "Company") and its subsidiaries (collectively referred to as the "Group") as at 30 June 2025 and the consolidated statements of profit or loss and other comprehensive income, consolidated changes in equity and consolidated cash flows for the six-month period then ended and summary of significant accounting policies and other explanatory notes. The management of the Group is responsible for the preparation and fair presentation of this consolidated interim financial information in accordance with Turkish Accounting Standard 34 ("TAS 34") "Interim Financial Reporting". Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with the Standard on Review Engagements ("SRE") 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of consolidated interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and the objective of which is to express an opinion on the consolidated financial statements. Consequently, a review on the consolidated interim financial information does not provide assurance that the audit firm will be aware of all significant matters which would have been identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to conclude that the accompanying consolidated interim financial information do not give a true and fair view of the financial position of Polisan Holding A.Ş. as at 30 June 2025, and its financial performance and cash flows for the six-month period then ended in accordance with TAS 34.

PwC Bağımsız Denetim ve

Serbest Muhasebeci Mali Müşavirlik A.Ş.

Beste Ortaç, SMMM

Independent Auditor Istanbul, 14 August 2025

PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

Kılıçali Paşa Mah. Meclis-i Mebusan Cad. No:8 İç Kapı No:301 Beyoğlu/İstanbul

T: +90 212 326 6060, F: +90 212 326 6050, https://www.pwc.com.tr Mersis Numaramız: 0-1460-0224-0500015

Note 1. Group's organization and nature of operations 7-8

Note 2. Basis of presentation of financial information 9-14

Note 3. Segment reporting 14-18

Note 4. Cash and cash equivalents 19

Note 5. Financial borrowings 20-21

Note 6. Trade receivable and payables 22-23

Note 7. Inventories 23

Note 8. Investments accounted using the equity method 24-25

Note 9. Investment properties 26

Note 10. Right of use assets 27

Note 11. Property, plant and equipments 28

Note 12. Provisions, contingent assets and liabilities 29-31

Note 13. Assets held for sale 32

Note 14. Capital, reserves and other equity items 32-33

Note 15. Revenue and cost of sales 34

Note 16. Expenses by nature 35

Note 17. Other income and expenses from operations 35

Note 18. Income and expenses from investment activities 36

Note 19. Financial income and expenses 36

Note 20. Net monetary position gains/(losses) 37

Note 21. Liabilities related to assets held for sale and disposal groups classified as held for sale 37-38

Note 22. Income taxes (including deferred tax assets and liabilities) 39-42

Note 23. Losses per share 42

Note 24. Related party disclosures 43-44

Note 25. Nature and level of risk derived from financial instruments 44-48

Note 26. Financial instruments (fair value and hedge accounting disclosures) 48-49

Note 27. Subsequent events 49

Polisan Holding A.Ş.

Consolidated statement of changes in equity for the period between January 1- June 30, 2025 and 2024

Other accumulated comprehensive income/ expense not to be classified to profit or loss

Revaluation and measurement gain / loss

Other accumulated comprehensive income/ expense

to be classified to profit or loss Accumulated profit

The accompanying notes are an integral part of these consolidated financial information.

The accompanying notes are an integral part of these consolidated financial information.

Polisan Holding A.Ş. ("Polisan Holding" or the "Company") is established in order to maintain coordination within the companies, in which it has capital and management contribution, provide guidance and management and ensure to operate with using advanced techniques in planning, marketing and finance, fund management, legal affairs, human resources and information technologies areas for them. The Company operates in several industries particularly in commerce, industry, agriculture, tourism, real estate, mining and finance and engages in various other activities by contributing to the capital and management of domestic and foreign companies.

The Company was founded in 2000 and the Company's registered office is located in Dilovası Organize Sanayi Bölgesi 1.Kısım Liman Cad. No: 7 Dilovası/Kocaeli.

Istanbul branch of the Company is located in Hilltown AVM, Aydınevler Mah. Siteler Yolu Cad. 28 No:1/A Maltepe/İstanbul.

Subsidiaries, joint ventures and associates of the Company (altogether referred to as the "Group") are as follows:

• Polisan Kansai Boya Sanayi ve Ticaret A.Ş.

• Tintomix Pigment Pasta Sanayi A.Ş.

• Polisan Kimya Sanayii A.Ş.

• Poliport Kimya Sanayi ve Ticaret A.Ş.

• Rohm and Haas Kimyasal Ürünler Üretim Dağıtım ve Tic. A.Ş.

• Polisan Hellas S.A.

• Polisan Yapıkim Yapı Kimyasalları San. ve Tic. A.Ş.

  The Group's main operations are in Turkey and gathered under the major segments which are listed below;

• Production and sale of chemical products

• Production and sale of paint

• Production and sale of concrete chemicals

• Port, storage and warehousing services

• Service

The average number of employees of the Company, it's subsidiaries and joint ventures for the year ended June 30, 2025 is 986 (December 31, 2024: 1,109). In calculating the average numbers, the number of employees of Polisan Kansai Boya and Rohm and Haas was not weighted in proportion to the Group's share, but was taken as an integer.

Subsidiaries:

Polisan Kimya Sanayii A.Ş. ("Polisan Kimya"):

Operating activity of Polisan Kimya is the production and sale of formaldehyde, formaldehyde resins, construction chemicals and AUS 32.

Polisan Kimya was established in 1964 and company's registered office is located in Dilovası Organize Sanayi Bölgesi 1. Kısım Liman Cad. No: 7 Dilovası/Kocaeli.

Poliport Kimya Sanayi ve Ticaret A.Ş. ("Poliport"):

Operating activities of Poliport are bulk liquid storage services, A-type general warehouse services, loading and unloading services for dry bulk and general cargo vessels.

Poliport was established in 1971 and company's registered office is located in Dilovası Organize Sanayi Bölgesi 1. Kısım Liman Cad. No:7 Dilovası/Kocaeli.

1. Group's organization and nature of operations (Continued)

   Subsidiaries(continued):

   Polisan Hellas S.A. ("Hellas"):

   Polisan Hellas S.A. was established on July 29, 2013 in Athens, Greece. Polisan Hellas S.A. is operating in the plastic products industry. The facility engages in the production of Polyethylene Terephthalate (PET) granule and preform, which has an extensive area of use such as beverage, food, and drink containers and synthetic fiber.

   -Polisan Yapıkim Yapı Kimyasalları San. ve Tic. A.Ş. ("Polisan Yapıkim"):

   Operating activity of Polisan Kimya is construction chemicals.

   Polisan Yapıkim was established in 2022 and company's registered office is located in Dilovası Organize Sanayi Bölgesi 1. Kısım Liman Cad. No: 7 Dilovası / Kocaeli.

   Polisan Kimya's construction chemicals activities are carried out by Polisan Yapıkim Yapı Kimyasalları San. ve Tic.

   A.Ş. with the same partnership structure, as of September 30, 2022.

   Joint ventures and Associates:

   Polisan Kansai Boya Sanayi ve Ticaret A.Ş. ("Polisan Kansai Boya")

   Operating activity of Polisan Kansai Boya is the production and sale of paint, varnish, resin and other surface coating and insulation materials.

   Polisan Kansai Boya was established in 1975 and company's registered office is located in Dilovası Organize Sanayi Bölgesi 1. Kısım Liman Cad. No: 7 Dilovası/Kocaeli.

   Following the sale of 50% shares of Polisan Kansai Boya to Kansai Paint Co. Ltd. on December 21, 2016; the title

   has been changed as Polisan Kansai Boya Sanayi ve Ticaret A.Ş.

   Since this transaction is a sale of subsidiary's shares resulting in loss of control, Polisan Kansai Boya is considered

   as joint ventures after the share sale and accounted by using the equity method.

   Tintomix Pigment Pasta Sanayi A.Ş. ("Tintomix"):

   Tintomix, Polisan Kansai Boya ongoing development of the business as well as pigment pastes and operates inside and outside of Turkey.

   Tintomix was established in 2018 and company's registered office is located in Maden Mahallesi, Kasap Çayırı Mevkii Medya kent A9 No:2 Sarıyer/Istanbul.

   Rohm and Haas Kimyasal Ürünler Üretim Dağıtım ve Tic. A.Ş. ("Rohm and Haas")

   Operating activity of Rohm and Haas is purchasing, selling, marketing and trading of emulsion polymers and their raw materials.

   Rohm and Haas was established in 2004, and company's registered office is located in Içerenköy Mah. Umut Sok. No: 10/12 Kat: 3 Ataşehir/Istanbul. As of June 30, 2025 the average number of personnel employed by Rohm and Haas is 50 (December 31, 2024: 49).

   Approval of the financial statements

   The condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 14, 2025. The General Assembly has the authority to amend the condensed consolidated financial information.

2. Basis of presentation of financial information
   1. Basis of presentation
      1. Applicable financial reporting standards

         The accompanying condensed consolidated financial information is prepared in accordance with Communiqué Serial II, No: 14,1, "Principles of Financial Reporting in Capital Markets" ("the Communiqué") published in the Official Gazette numbered 28676 on June 13, 2013. According to Article 5 of the Communiqué, consolidated financial statements are prepared in accordance with the Turkish Accounting Standards issued by Public Oversight Accounting and Auditing Standards Authority ("POA/ASA"), TAS contains Turkish Accounting Standards, Turkish Financial Reporting Standards ("TFRS") and its addendum and interpretations ("IFRIC"). The consolidated financial statements of the Group are prepared as per the CMB announcement of October 4, 2022 relating to financial statements presentations.

         Polisan Holding and its Subsidiaries, Joint venture and Associate registered in Turkey maintain their books of account and prepare their statutory financial statements in accordance with regulations issued by CMB, the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. The subsidiary operating in a foreign country maintains its books of account in accordance with the laws and regulations in force in the countries in which they are registered. The consolidated financial statements have been prepared in TRY by considering certain adjustments and reclassifications for the purpose of fair presentation in accordance with the Turkish Accounting Standards issued by the POA.

         In accordance with the TAS, the entities are allowed to prepare a complete or condensed set of interim financial statements in accordance with TAS 34, "Interim Financial Reporting". In this respect, the Group has preferred to prepare condensed consolidated financial information in the interim periods.

      2. Financial reporting in hyperinflationary economy

With the announcement made by the Public Oversight Accounting and Auditing Standards Authority (POA) on November 23, 2023, entities applying TFRSs have started to implement inflation accounting in accordance with IAS

29 Financial Reporting in Hyperinflationary Economies in their financial statements for annual reporting periods ending on or after December 31, 2024. IAS 29 is applied to the financial statements, including the consolidated financial statements, of entities whose functional currency is that of a hyperinflationary economy. The accompanying financial statements, except for financial investments and derivative instruments measured at fair value and land, land improvements, buildings, port facility and investment properties measured at revalued amounts, have been prepared on the historical cost basis. These financial statements, together with all comparative amounts from prior periods, have been restated to reflect the changes in the general purchasing power of the Turkish Lira in accordance with IAS 29 and are expressed in terms of the purchasing power of the Turkish Lira as of June 30, 2025. Accordingly, the Group has also presented its consolidated financial statements as of June 30, 2024 and December 31, 2024 on the basis of purchasing power as of June 30, 2025.

In accordance with the decision numbered 81/1820 dated 28 December 2023, of the Capital Markets Board ("CMB"), it has been decided to apply the provisions of TMS 29 starting from the annual financial reports of issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards as of December, 31 2023, and for subsequent financial periods, in order to implement inflation accounting.

1. Basis of presentation of financial information (Continued)
   1. Basis of presentation (continued)
      1. Financial reporting in hyperinflationary economy (continued)

         On the application of TAS 29, the entity used the conversion coefficient derived from the Customer Price Indexes (CPI) published by Turkey Statistical Institute according to directions given by POA. The CPI for current and previous year periods and corresponding conversion factors since the time when the Turkish lira previously ceased to be considered currency of hyperinflationary economy were as follow:

         Date	Index	Correction Coefficient	3-Year Compound Inflation Rate
         30 June 2025	3132.17	1	220%
         31 December 2024	2684.55	1.16674	291%
         30 June 2024	2319.29	1.35049	324%

         The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows:

         • Current period consolidated financial statements prepared in TRY are expressed in terms of the purchasing power at the balance sheet date, and amounts from previous reporting periods are also adjusted and expressed in terms of the purchasing power at the end of the reporting period.

         • Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed their recoverable amount or net realizable value, the provisions of TAS 36 "Impairment of Assets" and TAS 2 "Inventories" are applied, respectively.

         • Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.

         • All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements.

         • The effect of inflation on the Group's net monetary asset position in the current period is recorded in the monetary gain/loss account in the consolidated income statement.

         • Revaluation increase related to tangible assets and other reserves items were transferred to Retained earnings and balanced to zero in the statement of financial position dated January 1, 2022, when TMS 29 was first applied.

           1. Basis of presentation of financial information (Continued)
              1. Basis of presentation (continued)
      2. Functional and presentation currency

         The functional and presentation currency of the Company and its subsidiaries registered in Turkey is Turkish Lira

         ("TRY").

         The functional currency of Rohm and Haas, associate of the Group is USD.

         The functional currency of Polisan Hellas S.A., a subsidiary of the Group operating in Greece is EURO.

         The financial and operational results of each company are presented in TRY, which is the functional currency of the Company and the presentation currency of the consolidated financial statements.

      3. Financial statements of subsidiaries operating in countries other than Turkey

         Financial statements of subsidiary operating abroad Turkey are adjusted to the TAS/TFRS promulgated by the POA to reflect the proper presentation and content. Related subsidiary's assets and liabilities are translated into TRY from the foreign exchange rate at the reporting date and income and expenses are translated into TRY at the average foreign exchange rate. Exchange differences arising from using of period end and average rates are included in the "currency translation difference" account under the shareholders' equity.

   2. The new standards, amendments and interpretations

The accounting policies adopted in preparation of the condensed consolidated financial statements as at June 30, 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRIC interpretations effective as of January 1, 2025. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.

1. Standards, amendments, and interpretations applicable as of 30 June 2025:

   • Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.

2. Standards, amendments, and interpretations that are issued but not effective as of 30 June 2025:

• Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:

  • clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

  • clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

  • add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and

  • make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).

1. 1. The new standards, amendments and interpretations (Continued)
      • Annual improvements to IFRS - Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:

        • IFRS 1 First-time Adoption of International Financial Reporting Standards;

        • IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;

        • IFRS 9 Financial Instruments;

        • IFRS 10 Consolidated Financial Statements; and

        • IAS 7 Statement of Cash Flows.

      • Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.

      • IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

        • the structure of the statement of profit or loss;

        • required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and

        • enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

      • IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:

        • it does not have public accountability; and

        • it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

   2. Changes in Accounting Policies, Estimates and Errors

      Any change in accounting policies resulting from the first time adoption of a new TAS/TFRS is made either retrospectively or prospectively in accordance with the transition requirements of TAS/TFRS. Changes without any transition requirement, material changes in accounting policies or material errors are corrected, retrospectively by restating the prior period consolidated financial statements.

      If changes in accounting estimates are related to only one period, they are recognized in the period when the changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and in future periods prospectively. There has been no change in the Group's accounting policies and estimates in the current period.

      2. Basis of presentation of financial information (Continued)
   3. Summary of significant accounting policies Group accounting

      1. The consolidated financial statements include the accounts of the parent company Polisan Holding, its Subsidiaries, Joint Ventures and Associates on the basis set out in sections (b) to (d) below. The financial statements of the companies included in the scope of consolidation have been prepared as of the date of the consolidated financial statements with adjustments and reclassifications for the purpose of fair presentation in accordance with "TAS/TFRS" and the application of uniform accounting policies and presentation.

      2. Subsidiaries are companies on which the Company has rights or exposed to variable returns from its involvement with the investee and at the same time it has the power to affect these returns through its power over the investee by constituting the power to control the activities of these companies. Subsidiaries are consolidated from the date on which the control is transferred to the Group and are no longer consolidated from the date that the control ceases. The statement of financial position and the statement of profit or loss of the subsidiaries are consolidated on a line-by-line basis and the carrying value of the subsidiaries held by the Company is eliminated against the related equity of the Subsidiaries. Intercompany transactions and balances between the Company and its Subsidiaries are eliminated during the consolidation. The nominal amount of the shares held by the Company in its Subsidiaries and the associated dividends are eliminated from equity and income for the period, respectively.

         As of June 30, 2025 and December 31, 2024 the Group's proportion of ownership interests of subsidiaries has been

         shown in the following table:

         Title of the subsidiary	Shares owned by the Group (%)		Effective ownership rate (%)
         	June 30, 2025 December 31, 2024		June 30, 2025 December 31, 2024
         Polisan Kimya	100.00	100.00	100.00	100.00
         Poliport	100.00	100.00	100.00	100.00
         Polisan Hellas	100.00	100.00	100.00	100.00
         Polisan Yapıkim	100.00	100.00	100.00	100.00

      3. Joint ventures and Associates are accounted using the equity method. Associates are companies in which the Group has voting power between 20% and 50% or the Group has power to participate in the financial and operating policy decisions but not control them. Unrealized gains or losses arising from transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group's interest in the joint ventures and associates.

         Investment in Associate and Joint venture is recognized at cost, and the carrying amount is increased or decreased to recognize the Company's share of the profit or loss after the date of acquisition. Any impairment losses are also deducted from the carrying value of investment.

         The table below sets out ownership interests of the Group in its joint ventures and associates included as of June 30, 2025 and December 31, 2024:

         Title of the ownership Type of ownership Shares owned directly and indirectly by the Group (%) Effective ownership rate (%)

         		June 30,	December 31,	June 30,	December
         		2025	2024	2025	31, 2024
         Polisan Kansai Boya	Joint venture	50.00	50.00	50.00	50.00
         Tintomix	Joint venture	51.00	51.00	25.50	25.50
         Rohm and Haas	Associate	40.00	40.00	40.00	40.00

      4. The companies, in which the total voting rights of the Group is below 20%, or above 20% but the Group does not exercise a significant influence, or considered as not significant to the consolidated financial statements are classified as available-for-sale financial assets in the consolidated financial statements. Available-for-sale financial assets which have quoted market prices in organized markets and whose fair values can be measured reliably are carried at fair value in the consolidated financial statements. Available-for-sale financial assets that do not have quoted market prices in active markets and whose fair values cannot be reliably measured are carried at cost less any accumulated impairment loss in the consolidated financial statements.

      2. Basis of presentation of financial information (Continued)
   4. Comparative information and restatement of prior year financial statements

      Following the decisions made on March 12, 2025 and June 18, 2025, the Group decided to start talks to sell Polisan Hellas' shares due to the ongoing drop in demand in the PET sector. The Group also decided to end the employment of Polisan Hellas staff, halt its production activities, and provide support to reduce the company's debts, as the remaining inventory was sold and the effects of the lower demand continued.

      As a result of this decision, as of June 30, 2025, the assets of the said subsidiary have been classified under non-current assets held for sale, and the liabilities have been classified under liabilities related to assets held for sale. The subsidiary's activities during the interim period from January 1 to June 30, 2025 have been classified as discontinued operations. Accordingly, the Group has presented the relevant activities as discontinued operations in the consolidated income statement and related notes, as well as in the consolidated cash flow statement for the interim period from January 1 to June 30, 2024, to ensure comparability with the presentation of the current period consolidated financial statements.

      The accompanying consolidated financial statements are prepared on a comparative basis with the prior period to enable the assessment of the Group's financial position, performance, and cash flow trends. When the presentation or classification of items in the financial statements changes, the prior period consolidated financial statements are reclassified accordingly to ensure comparability, and explanations regarding these changes are provided.

   5. Netting / Offsetting

      All items that are material in terms of content and amount, even with similar characteristics, are presented separately in the financial statements. Insignificant amounts are summed up by items that are similar in terms of principles and functions. Assets and liabilities are shown in net when there is a necessary legal right, there is an intention to make a net use of the assets and liabilities, or when the assets are acquired and the liabilities are fulfilled simultaneously.

   6. Seasonality in operations

      Operations of the companies within the consolidation may show increase or decrease as of periods. Thus, the results of the six months' period ended June 30, 2025 may not be an indicator for the whole year.

2. Segment reporting

   The Group's operations consist of production and sales of paint, manufacturing and sale of chemical products, sale of services, port management and real estate. The Group's reporting segments are as follows:

   As of June 30, 2025 and December 31, 2024, total assets and liabilities are as follows:

   Assets	June 30, 2025	December 31, 2024
   Chemical products	7,676,361,267	7,373,552,035
   Port	10,279,191,570	10,299,313,221
   Services	12,013,783,949	11,069,320,995
   Combined	29,969,336,786	28,742,186,251
   Add: Carrying values of Joint Ventures (Note 8)	4,435,062,908	4,760,280,001
   Less: Eliminations	(13,032,152,221)	(10,803,579,233)
   Consolidated	21,372,247,473	22,698,887,019
   Liabilities
   Chemical products	1,682,932,916	3,373,098,877
   Port	1,346,948,949	1,552,810,286
   Services	1,219,644,274	242,094,099
   Combined	4,249,526,139	5,168,003,262
   Less: Eliminations	(376,273,884)	(476,804,925)
   Consolidated	3,873,252,255	4,691,198,337

   3.	Segment reporting (Continued)
   Statement of profit or loss reporting for the period between January 1 - June 30, 2025:
   		Chemical				Plus: Joint venture sharing profits and	Consolidation
   		products	Port	Services	Combined	loses	adjustments	Consolidated
   Revenue		1,734,465,090	1,161,979,135	358,410,406	3,254,854,631	-	(431,808,959)	2,823,045,672
   -	Intra segment revenue	1,618,719,865	1,120,988,123	203,200,243	2,942,908,231	-	(119,862,559)	2,823,045,672
   -	Inter segment revenue	115,745,225	40,991,012	155,210,163	311,946,400	-	(311,946,400)	-
   Cost of sales (-)		(1,553,638,631)	(712,439,082)	(330,985,511)	(2,597,063,224)	-	424,844,207	(2,172,219,017)
   Gross profit		180,826,459	449,540,053	27,424,895	657,791,407	-	(6,964,752)	650,826,655
   Operational expenses		(226,882,295)	(133,870,090)	(79,204,088)	(439,956,473)	-	3,182,190	(436,774,283)
   Other income/expense from operating activities, net Share of profit/loss of investments accounted for using the equity method		(17,661,335) -	17,440,657 -	2,293,423 -	2,072,745 -	- (322,357,619)	- -	2,072,745 (322,357,619)
   Operating profit		(63,717,171)	333,110,620	(49,485,770)	219,907,679	(322,357,619)	(3,782,562)	(106,232,502)
   Income / expenses from investment activities, net		16,228,576	(2,629,771)	135,639	13,734,444	-	-	13,734,444
   Operating profit before financial income/expense		(47,488,595)	330,480,849	(49,350,131)	233,642,123	(322,357,619)	(3,782,562)	(92,498,058)
   Financial income/(expenses),net		(154,628,981)	719,559	14,260,165	(139,649,257)	-	-	(139,649,257)
   Monetary (Loss)/Gain		(25,834,380)	(32,571,066)	(6,195,103)	(64,600,549)	-	89,135,271	24,534,722
   Profit before tax from continuing operations		(227,951,956)	298,629,342	(41,285,069)	29,392,317	(322,357,619)	85,352,709	(207,612,593)
   Tax income/(expense), net		80,166,264	(107,057,601)	8,368,159	(18,523,178)	-	2,287,583	(16,235,595)
   Profit for the period from continuing operations		(147,785,692)	191,571,741	(32,916,910)	10,869,139	(322,357,619)	87,640,292	(223,848,188)
   Depreciation and amortization		66,101,440	202,491,239	15,735,136	284,327,815	-	(10,495,412)	273,832,403
   Investment expenditures		108,164,907	257,385,794	10,324,249	375,874,950	-	-	375,874,950
   Finance income		8,240,432	26,290,992	21,717,707	56,249,131	-	(21,168,275)	35,080,856
   Finance expense		67,022,270	26,638,189	8,453,364	102,113,823	-	(21,168,275)	80,945,548

   3.	Segment reporting (Continued)
   Statement of profit or loss reporting for the period between January 1 - June 30, 2024:
   		Chemical				Plus: Joint venture sharing profits and	Consolidation
   		products	Port	Services	Combined	loses	adjustments	Consolidated
   Revenue		2,117,912,382	1,209,271,461	279,118,825	3,606,302,668	-	(360,881,880)	3,245,420,788
   -	Intra segment revenue	2,017,042,506	1,181,873,538	205,269,584	3,404,185,628	-	(158,764,840)	3,245,420,788
   -	Inter segment revenue	100,869,876	27,397,923	73,849,241	202,117,040	-	(202,117,040)	-
   Cost of sales (-)		(1,807,992,539)	(637,356,573)	(258,505,958)	(2,703,855,070)	-	387,023,497	(2,316,831,573)
   Gross profit		309,919,843	571,914,888	20,612,867	902,447,598	-	26,141,617	928,589,215
   Operational expenses		(239,954,940)	(141,344,440)	(53,180,610)	(434,479,990)	-	(33,988,710)	(468,468,700)
   Other income/expense from operating activities, net Share of profit/loss of investments accounted for using the equity method		(31,385,048) -	10,185,729 -	(6,368,812) -	(27,568,131) -	- (115,653,198)	- -	(27,568,131) (115,653,198)
   Operating profit		38,579,855	440,756,177	(38,936,555)	440,399,477	(115,653,198)	(7,847,093)	316,899,186
   Income / expenses from investment activities, net		(17,446,731)	(1,037,141)	(761,240)	(19,245,112)	-	-	(19,245,112)
   Operating profit before financial income/expense		21,133,124	439,719,036	(39,697,795)	421,154,365	(115,653,198)	(7,847,093)	297,654,074
   Financial income/(expenses),net		(63,799,376)	11,417,832	11,430,912	(40,950,632)	-	-	(40,950,632)
   Monetary (Loss)/Gain		(29,121,695)	(66,191,402)	(7,056,935)	(102,370,032)	-	63,640,230	(38,729,802)
   Profit before tax from continuing operations		(71,787,947)	384,945,466	(35,323,818)	277,833,701	(115,653,198)	55,793,137	217,973,640
   Tax income/(expense), net		(87,120,891)	(136,578,458)	(3,294,978)	(226,994,327)	-	3,472,601	(223,521,726)
   Profit for the period from continuing operations		(158,908,838)	248,367,008	(38,618,796)	50,839,374	(115,653,198)	59,265,738	(5,548,086)
   Depreciation and amortization		86,468,372	179,521,926	22,615,858	288,606,156	-	-	288,606,156
   Investment expenditures		60,151,020	217,716,125	153,830,466	431,697,611	-	(111,310,694)	320,386,917
   Finance income		19,332,855	26,352,892	8,397,797	54,083,544	-	(19,859,571)	34,223,973
   Finance expense		46,188,743	30,150,262	8,161,666	84,500,671	-	(19,859,571)	64,641,100

   3.	Segment reporting (Continued)
   Statement of profit or loss reporting for the period between April 1 - June 30, 2025:
   	Chemical				Plus: Joint venture sharing profits and	Consolidation
   	products	Port	Services	Combined	loses	adjustments	Consolidated
   Revenue	909,636,541	595,771,873	165,512,039	1,670,920,453	-	(195,203,087)	1,475,717,366
   -	Intra segment revenue	853,791,339	574,111,611	89,851,058	1,517,754,008	- (42,036,642)	1,475,717,366
   -	Inter segment revenue	55,845,202	21,660,262	75,660,981	153,166,445	- (153,166,445)	-
   Cost of sales (-)	(799,954,596)	(363,460,739)	(152,989,792)	(1,316,405,127)	-	176,084,294	(1,140,320,833)
   Gross profit	109,681,945	232,311,134	12,522,247	354,515,326	-	(19,118,793)	335,396,533
   Operational expenses	(110,359,316)	(63,124,941)	(31,543,293)	(205,027,550)	-	532,296	(204,495,254)
   Other income/expense from operating activities, net Share of profit/loss of investments accounted for using the equity method	(11,579,130) -	7,143,337 -	2,646,356 -	(1,789,437) -	- (159,764,030)	- -	(1,789,437) (159,764,030)
   Operating profit	(12,256,501)	176,329,530	(16,374,690)	147,698,339	(159,764,030)	(18,586,497)	(30,652,188)
   Income / expenses from investment activities, net	13,773,434	(2,616,434)	486,704	11,643,704	-	-	11,643,704
   Operating profit before financial income/expense	1,516,933	173,713,096	(15,887,986)	159,342,043	(159,764,030)	(18,586,497)	(19,008,484)
   Financial income/(expenses),net	(87,774,741)	(2,573,797)	(3,845,319)	(94,193,857)	-	-	(94,193,857)
   Monetary (Loss)/Gain	(60,351,351)	(4,613,562)	2,342,657	(62,622,256)	-	67,095,204	4,472,948
   Profit before tax from continuing operations	(146,609,159)	166,525,737	(17,390,648)	2,525,930	(159,764,030)	48,508,707	(108,729,393)
   Tax income/(expense), net	76,220,214	(20,613,992)	4,128,401	59,734,623	-	(726,262)	59,008,361
   Profit for the period from continuing operations	(70,388,945)	145,911,745	(13,262,247)	62,260,553	(159,764,030)	47,782,445	(49,721,032)
   Depreciation and amortization	33,756,860	105,168,537	6,262,246	145,187,643	-	(10,276,278)	134,911,365
   Investment expenditures	61,436,840	121,993,321	9,695,399	193,125,560	-	-	193,125,560
   Finance income	1,085,255	14,561,631	3,379,241	19,026,127	-	(13,306,335)	5,719,792
   Finance expense	39,504,222	13,128,401	8,432,542	61,065,165	-	(13,306,335)	47,758,830

   3.	Segment reporting (Continued)
   Statement of profit or loss reporting for the period between April 1 - June 30, 2024:
   		Chemical				Plus: Joint venture sharing profits and	Consolidation
   		products	Port	Services	Combined	loses	adjustments	Consolidated
   Revenue		1,045,385,431	588,387,197	154,235,743	1,788,008,371	-	(217,794,796)	1,570,213,575
   -	Intra segment revenue	1,007,183,240	572,527,855	128,227,211	1,707,938,306	-	(137,724,731)	1,570,213,575
   -	Inter segment revenue	38,202,191	15,859,342	26,008,532	80,070,065	-	(80,070,065)	-
   Cost of sales (-)		(890,813,159)	(295,061,119)	(142,857,638)	(1,328,731,916)	-	217,312,535	(1,111,419,381)
   Gross profit		154,572,272	293,326,078	11,378,105	459,276,455	-	(482,261)	458,794,194
   Operational expenses		(122,694,834)	(68,747,092)	(20,867,373)	(212,309,299)	-	(6,678,215)	(218,987,514)
   Other income/expense from operating activities, net Share of profit/loss of investments accounted for using the equity method		(18,736,058) -	(2,709,503) -	(6,175,344) -	(27,620,905) -	- (163,548,221)	- -	(27,620,905) (163,548,221)
   Operating profit		13,141,380	221,869,483	(15,664,612)	219,346,251	(163,548,221)	(7,160,476)	48,637,554
   Income / expenses from investment activities, net		(20,879,044)	(633,812)	(1,372,932)	(22,885,788)	-	(1,471,905)	(24,357,693)
   Operating profit before financial income/expense		(7,737,664)	221,235,671	(17,037,544)	196,460,463	(163,548,221)	(8,632,381)	24,279,861
   Financial income/(expenses),net		(46,552,952)	5,162,556	(289,937)	(41,680,333)	-	609,408	(41,070,925)
   Monetary (Loss)/Gain		3,573,621	(21,308,451)	4,710,240	(13,024,590)	-	21,223,722	8,199,132
   Profit before tax from continuing operations		(50,716,995)	205,089,776	(12,617,241)	141,755,540	(163,548,221)	13,200,749	(8,591,932)
   Tax income/(expense), net		(212,719,599)	(97,649,346)	(2,656,905)	(313,025,850)	-	13,532,824	(299,493,026)
   Profit for the period from continuing operations		(263,436,594)	107,440,430	(15,274,146)	(171,270,310)	(163,548,221)	26,733,573	(308,084,958)
   Depreciation and amortization		42,592,031	66,049,621	10,149,803	118,791,455	-	18,879,206	137,670,661
   Investment expenditures		37,684,506	130,029,526	113,966,685	281,680,717	-	(25,040,088)	256,640,629
   Finance income		6,143,798	21,237,859	3,075,539	30,457,196	-	(19,859,571)	10,597,625
   Finance expense		29,821,882	19,143,967	2,525,651	51,491,500	-	(19,859,571)	31,631,929

3. Cash and cash equivalents

   	June 30, 2025	December 31, 2024
   Cash in hand	96,454	272,451
   Banks	62,730,461	593,548,817
   - Demand deposits	17,337,043	110,073,003
   - Time deposits	45,393,418	483,475,814
   Other cash and cash equivalents	-	197,821
   Total	62,826,915	594,019,089

   No blockage exists on the cash and cash equivalents of the Group as of June 30, 2025 (December 31, 2024: None).

   As of June 30, 2025 details of time deposits are as follows:

   Currency	Average interest rate	Maturity	Foreign currency amount	TRY equivalent
   USD	3.50%	2 days	1,021,491	40,596,491
   TRY	44.00%	2 days	3,772,770	3,772,770
   EURO	0.20%	2 days	22,000	1,024,157
   Total				45,393,418

   As of December 31, 2024 details of time deposits are as follows:

   Currency	Average interest rate	Maturity	Foreign currency amount	TRY equivalent
   USD	2.29%	2 days	8,180,687	336,197,054
   TRY	46.50%	2 days	140,848,348	140,848,348
   EURO	0.01%	2 days	150,000	6,430,412
   Total				483,475,814

   5.	Financial Borrowings
   	Interest rate	June 30, 2025	Interest rate	December 31, 2024
   Short-term borrowings
   Short-term bank borrowings - TRY	22.94%	205,000,000	-	-
   - EURO	7.11%	249,116,976	5.71%	1,535,346,146
   - USD	9.09%	612,229,132	6.50%	41,096,433
   Total		1,066,346,108		1,576,442,579
   	Interest rate	June 30, 2025	Interest rate	December 31, 2024
   Short-term portion of long-term borrowings
   Bank borrowings - TRY	17.00%	6,271,181	17.00%	14,640,076
   - EURO	-	-	6.66%	210,099,491
   Financial leasings - TRY	22.50%	30,293,743	22.50%	47,312,565
   - EURO	-	-	1,9% - 5,13%	2,390,252
   Total		36,564,924		274,442,384
   	Interest rate	June 30, 2025	Interest rate	December 31, 2024
   Long-term borrowings
   Bank borrowings - EURO	7.11%	279,315,600	1,9% - 5,13%	3,102,812
   - USD	9.09%	365,630,080	-	-
   Financial leasing obligations - TRY	22.50%	137,595,318	22.50%	129,767,664
   Total		782,540,998		132,870,476

4. Financial borrowings (Continued)

   Maturities of principal and accrued interest of financial borrowings are as follows:

   Maturity-Total bank borrowings	June 30, 2025	December 31, 2024
   0 - 3 months	111,370,041	379,228,895
   Between 3 - 6 months	560,145,727	708,126,628
   Between 6 - 12 months	401,101,521	713,826,623
   More than 2 years	644,945,680	-
   Total	1,717,562,969	1,801,182,146
   Maturity- financial leasing obligations	June 30, 2025	December 31, 2024
   0 - 3 months	4,490,146	12,652,365
   Between 3 - 6 months	16,182,558	11,711,416
   Between 6 - 12 months	9,621,039	25,339,036
   Between 1 - 2 years	17,180,074	36,293,324
   More than 2 years	120,415,244	96,577,152
   Total	167,889,061	182,573,293

   Movements of financial borrowings and financial leasing obligations as of June 30, 2025 and June 30, 2024 are as follows:

   	June 30, 2025	June 30, 2024
   Total bank borrowings as of 1 January	1,801,182,146	1,464,957,858
   Cash inflows from borrowing	1,901,710,687	1,152,536,286
   Cash outflow from borrowing	(518,974,168)	(1,035,333,356)
   Loan repayments related to discontinued operations	(1,431,434,654)	-
   Interest accrual	1,278,734	(3,236,079)
   Foreign exchange and currency translation differences	419,272,047	652,349,893
   Transfers to liabilities held for sale	(177,989,003)	-
   Monetary (loss)/gain	(277,482,820)	(643,926,948)
   Total bank borrowings as of 30 June	1,717,562,969	1,587,347,654
   	June 30, 2025	June 30, 2024
   Total financial leasing obligations as of 1 January	182,573,293	210,670,958
   Additions	-	14,389,663
   Disposals	-	(1,546,184)
   Payments	(26,442,872)	(30,191,284)
   Changes in rental agreements	12,362,911	41,415,887
   Translation difference	-	(1,320,423)
   Transfers to liabilities held for sale	(8,675,055)	-
   Monetary (Loss)/Gain	8,070,784	(37,756,300)
   Total financial leasing as of 30 June	167,889,061	195,662,317

5. Trade receivable and payables

As of June 30, 2025 and December 31, 2024 the Group's trade receivables are as follows:

The nature and amount of guarantees obtained for receivables are stated in Note 12.3. Foreign currency balances of trade receivables are explained in Note 25.

Movement of provision for doubtful receivables for the periods ended June 30, 2025 and June 30, 2024 are as follows:

As of June 30, 2025 and December 31, 2024, the maturity details of trade receivables are as follows:

As of June 30, 2025 letter of guarantees amounting to TRY 80,958,016 (December 31, 2024: TRY 123,648,251) has been received for the past due but not impaired trade receivables amounting to TRY 6,486,589 (December 31, 2024: TRY 12,078,975). Doubtful receivables are not included into the maturity details.

As of June 30, 2025 and December 31, 2024 the aging of the overdue but not impaired trade receivables are as follows:

Movement of provision for impairment of inventories for the periods ended June 30, 2025 and June 30, 2024 are as follows:

As of June 30, 2025, the Group has no pledged inventory against its liabilities (December 31, 2024: None).

As of June 30, 2025 and December 31, 2024, the Group's investments accounted using equity the method are as

follows:

Polisan Holding transferred its 50% shares in Polisan Kansai Boya to Kansai on December, 21 2016. In accordance with share sales agreement, management of Polisan Kansai Boya are jointly performed by Polisan Holding and Kansai and the decisions related with company shall require the affirmative votes of the parties. Therefore, this transaction was considered as sales of shares of subsidiaries which causes loss of control and remaining interest of the Company in Polisan Kansai Boya was recognized with their fair values.

For the periods ended June 30, 2025 and December 31, 2024, the movements of the investments accounted using the equity method are as follows:

The summary financial statements of the Group's investments accounted using the equity method as of June 30, 2025 and December, 31 2024 prepared in accordance with TFRS are as follows:

The investment properties in the consolidated statement of financial position as of June 30, 2025 consist of land located next to Pendik Sabiha Gökçen Airport, buildings located in Kağıthane Merkez district, and other land and buildings.

Poliport Kimya San. ve Tic. A.Ş. ("Poliport") and DOP Yapı Mimarlık İnşaat Gıda Turizm Hizmetleri San. ve Tic. Ltd. Şti. ve DAP Yapı İnşaat San. ve Tic. A.Ş. Joint Venture ("Joint Venture") The Real Estate Sales Promise and Construction in Return for Land Share and Revenue agreement was signed on January, 24 2023, and the Flat in Return agreement dated March 5, 2015 was abolished. The contract amendment did not cause a change in the purpose of use of the real estate in question. The project planned to be carried out by the Joint Venture on the land near Pendik Sabiha Gökçen Airport has not yet started to be developed as of the balance sheet date, and the situation is going to be evaluated according to the developments in the real estate market.

The Group's investment properties of Pendik Land, Kağıthane Z-Office Building and other are appraised by Asal Gayrimenkul Değerleme ve Danışmanlık A.Ş., which is a CMB licensed real estate appraisal company in the 2023. Sales price comparison method is applied during determination of fair value of investment properties (Level 2).

Sales price comparison method is the determination of fair value of a property by applying necessary adjustments on the prices of similar properties sold recently. This comparison method contains the market price of the similar properties valuate them with a comparison approach. Generally, revaluated property is compared with the sale prices of its' similarly in an open market. Asked and bid prices can also be taken into consideration.

The movement of right-of-use assets as of June, 30 2025 and June, 30 2024 is as follows: