Increase in the Share Capital

The paid-in capital of the Company has been increased from TL 600,302,645 to TL 650,302,645 with a portion of TL 50,000,000 funded by 2016 profit shares allocated in the form of share certificates in line with the 2016 yearly profit distribution proposal approved by shareholders in the Annual General Assembly held on 27 March 2017, and distribution of the bonus shares have been completed on 17 June 2016, the capital increase processes have been completed on 05 June 2017.

Annual General Assembly Held Within the Period

The Company’s 2016 Annual General Assembly has been held at the address of İş Kuleleri, 34330, İş Bankası Oditoryum Binası, 4.Levent - İstanbul on 27 March 2017. Ordinary General Assembly Meeting of 2016 was held with the presence of the shareholders representing 600,000,000 Group A and 36,664,337,784 Group B shares from 60,030,264,500 shares corresponding to the Company’s total equity of TL 600,302,645. In the meeting, the motions filed by the shareholders with respect to the agenda topics have been approved in unanimity.

Profit Distribution

According to the Profit Distribution Table submitted to and approved by the General Assembly of Shareholders within the framework of the Decision No. 2429 and dated 13.02.2017 of the Company’s Board of Directors, it has been resolved that the shareholders be distributed first dividends in the form of bonus shares worth TL 50,000 thousand out of the net distributable profit for the period in the amount of TL 99,567 thousand, which is net profit for the period forming the basis of profit distribution pursuant to the Capital Markets Board of Turkey (CMB) legislation in the amount of TL 103,657 thousand, less first legal reserves of TL 4,090 thousand calculated based on the profit figure of TL 81,800 thousand that descends in the Company’s statutory records; that deferred taxes of TL 6,112 thousand that is included in the Company’s net profit for the period according to statutory records be set off from deferred tax reserves, which are made up of the Company’s undistributed deferred tax income from previous periods, and be transferred to extraordinary reserves, and that the distribution of shares that will be distributed as profit share be commenced upon approval of the issuance document for the said shares by the CMB. Distribution of bonus shares was completed on 14 June 2017.

Changes in Articles of Association

During the period of 01.01.2017 - 31.12.2017, no amendment has been made in the Articles of Association, and in the course of increase of our Company’s share capital from TL 600,302,645 to TL 650,302,645, Article 6 “Capital and Types of Shares” of our Company’s Articles of Association has been amended, and these amendment has been registered on 22.06.2017.