Interim report
Page 1
GALATA WIND ENERJI ANONIM SIRKETI CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD AT 1 JANUARY - 30 JUNE 2026 ( ORIGINALLY ISSUED IN TURKISH )
Page 2
DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. Maslak no1 Plaza Eski Büyükdere Caddesi Maslak Mahallesi No:1 Maslak, Sarıyer 34485 İstanbul, Türkiye Tel : +90 (212) 366 6000 Fax : +90 (212) 366 6010 www.deloitte.com.tr Mersis No: 0291001097600016 Ticari Sicil No : 304099 Deloitte refers to a Deloitte member firm, one of its related entities, or Deloitte Touche Tohmatsu Limited (“DTTL”). Each Deloitte member firm is a separate legal entity and a member of DTTL. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more about. © 2026. For information, contact Deloitte Türkiye, Member of Deloitte Touche Tohmatsu Limited. (CONVENIENCE TRANSLATION OF THE REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION ORIGINALLY ISSUED IN TURKISH) REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION To the General Assembly of Galatawind Enerji A.Ş. Introduction We have reviewed the accompanying condensed consolidated statement of financial position of Galatawind Enerji A.Ş. (“the Company”) and its subsidiaries (together will be referred as “the Group”) as of 30 June 20 26 and the related condensed consolidated statements of profit or loss and other comprehensive income , changes in equity and cash flows for the six-month period then ended. Management Group management is responsible for the preparation and fair presentation of this consolidated interim financial information in accordance with Turkish Accounting Standards 34 “Interim Financial Reporting” (“TAS 34”) . 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 Independent Auditing Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Ind ependent 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 Independent Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be 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 believe that the accompanying consolidated interim financial information is not prepared, in all material respects, in accordance with TAS 34 “Interim Financial Reporting”. DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU LIMITED Koray Öztürk Partner İstanbul, August 10, 2026
Page 3
CONTENTS PAGE INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ......................................................................................................................................................... 1 - 2 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .......................................................................... 3 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUIT Y ......................................................................................................................................................... 4 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW ............... 5 - 6 INTERIM CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................................................................................................... 7 - 42
Page 4
GALATA WIND ENERJI ANONIM SIRKETI INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 1 Reviewed Audited Current Period Prior Period ASSETS Notes 30 June 2026 31 December 2025 Current assets 1,658,221,586 2,578,860,487 Cash and cash equivalents 3 340,916,508 1,397,968,699 Financial investments 19 802,737,230 769,879,165 Trade receivables - Due from third parties 243,639,585 334,926,753 Other receivables - Due from third parties 75,178 48,575 Inventories 4,721,056 5,192,603 Prepaid expenses 9 40,607,915 69,417,178 Other current assets 225,524,114 1,427,514 Non-current assets 21,964,113,260 21,371,874,079 Derivative instruments 106,966,282 138,183,607 Financial investments 19 1,608,975 1,608,975 Other receivables - Due from third parties 1,413,956 1,665,073 Property, plant and equipment 5 13,604,505,255 13,527,624,201 Intangible assets - Licenses 6 7,286,239,216 6,840,915,580 - Goodwill 291,666,602 291,666,602 - Other 6 44,473,025 47,803,085 Right of use assets 7 484,832,903 373,200,681 Prepaid expenses 9 142,407,046 149,206,275 TOTAL ASSETS 23,622,334,846 23,950,734,566 The consolidated financial statements as of and for the period ended 3 0 June 2026 have been approved by the Board of Directors on 10 August 2026. The accompanying notes form an integral part of these consolidated financial statements .
Page 5
GALATA WIND ENERJI ANONIM SIRKETI INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 2 Reviewed Audited Current Period Prior Period LIABILITIES Notes 30 June 2026 31 December 2025 Current liabilities 1,323,725,071 1,042,892,086 Short-term portion of long-term borrowings Short-term portion of long-term borrowings from third parties - Bank borrowings 4 789,273,836 831,475,851 - Lease liabilities 4 5,790,440 1,500,902 - Short-term portion of long-term borrowings from related parties - Lease liabilities 4,18 1,039,051 719,797 Trade payables - Due to related parties 18 5,575,225 7,223,689 - Due to third parties 54,466,713 64,649,610 Other payables - Due to related parties 10 400,000,000 - - Due to third parties 32,091,824 73,823,869 Payables related to employee benefits 6,390,240 31,065,317 Provision for period income tax 17 - 8,152,451 Short-term provisions - Other short-term provisions 8 717,242 646,341 - Short-term provisions for employment benefits 28,380,500 23,634,259 Non-current liabilities 4,323,936,948 6,269,309,081 Long-term borrowings - Long-term borrowings from third parties - Bank borrowings 4 2,294,938,642 2,909,735,603 - Lease liabilities 4 189,748,351 180,795,714 - Long-term borrowings from related parties - Lease liabilities 4,18 297,746 350,625 Long-term provisions - Long-term provisions for employment benefits 15,614,241 15,832,824 Deffered Tax Liabilities 17 1,823,337,968 3,162,594,315 EQUITY 17,974,672,827 16,638,533,399 Equity attributable to equity holders of the parent company 17,974,672,827 16,638,533,399 Share capital 10 540,000,000 540,000,000 Inflation Adjustments on Capital 5,856,275,075 5,856,275,075 Repurchased shares (-) 10 (28,047,231) - Share premiums/(discounts) 10 32,788,019 32,788,019 Other comprehensive income (losses) that will not be reclassified in profit or loss - Actuarial gains (losses) on defined benefit plans 10 (11,557,110) (11,557,110) Accumulated other comprehensive income/(expense) to be reclassified to profit or loss - Foreign currency conversion differences (9,648,235) (7,084,988) - Gains on revaluation and classification of available-for-sale financial assets 521,768 521,768 Restricted reserves 10 772,847,346 683,242,462 Retained earnings or accumulated losses 9,043,874,647 8,548,773,469 Net profit or loss for the period 1,777,618,548 995,574,704 TOTAL EQUITY AND LIABILITIES 23,622,334,846 23,950,734,566 The accompanying notes form an integral part of these consolidated financial statements.
Page 6
GALATA WIND ENERJI ANONIM SIRKETI INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 3 Reviewed Unaudited Reviewed Unaudited Current Period Current Period Prior Period Prior Period 1 January - 1 April - 1 January - 1 April - 30 June 30 June 30 June 30 June Notes 2026 2026 2025 2025 PROFIT OR LOSS Revenue 11 1,107,446,977 367,363,889 1,578,015,562 799,281,632 Cost of sales (-) 11 (764,868,939) (377,303,915) (849,488,505) (461,668,315) GROSS PROFIT/ (LOSS) 342,578,038 (9,940,026) 728,527,057 337,613,317 General administrative expenses (-) 12 (141,227,355) (72,340,961) (140,874,682) (69,736,887) Marketing expenses (-) 12 (11,491,722) (7,081,426) (9,900,918) (5,195,474) Other operating income 14 386,721,915 213,697,629 352,114,786 148,990,219 Other operating expenses (-) 14 (28,401,722) (1,595,122) (21,431,844) (1,813,964) OPERATING PROFIT/ (LOSS) 548,179,154 122,740,094 908,434,399 409,857,211 OPERATING PROFIT/ (LOSS) BEFORE FINANCE (EXPENSE)/ INCOME 548,179,154 122,740,094 908,434,399 409,857,211 Finance expenses (-) 15 (388,295,319) (205,637,009) (229,827,377) (93,311,985) Monetary Gain/(Loss) 16 278,478,366 169,276,082 147,449,039 68,076,083 PROFIT/ (LOSS) BEFORE TAXATION FROM CONTINUED OPERATIONS 438,362,201 86,379,167 826,056,061 384,621,309 Tax income/(expense) from continued operations 1,339,256,347 1,515,578,932 (281,292,603) (27,210,841) Tax income/ (expense) for the period 17 - 37,949,653 (104,147,221) (36,612,779) Deferred tax income/ (expense) 17 1,339,256,347 1,477,629,279 (177,145,382) 9,401,938 PROFIT/ (LOSS) FOR THE PERIOD 1,777,618,548 1,601,958,099 544,763,458 357,410,468 Earning/(Loss) Per Share Attributable to Equity Holders of the Parent Company 20 3.292 2.967 1.009 0.662 OTHER COMPREHENSIVE INCOME That will not be reclassified as profit or loss Actuarial gains (losses) on defined benefit plans Taxes related to other comprehensive income that will not be reclassified as profit or loss Tax effect of actuarial gains (losses) on defined benefit plans Other Comprehensive Income That Will Be Reclassified to Profit or Loss - Foreign currency conversion differences (2,563,247) (2,682,068) (1,152,612) (210,670) Gains on revaluation and classification of available- for-sale financial assets OTHER COMPREHENSIVE INCOME (LOSS) (2,563,247) (2,682,068) (1,152,612) (210,670) TOTAL COMPREHENSIVE INCOME (LOSS) 1,775,055,301 1,599,276,031 543,610,846 357,199,798 Allocation of Total Comprehensive Income/(Loss) Attributable to non-controlling interests - - - - Attributable to equity holders of the parent company 1,775,055,301 1,599,276,031 543,610,846 357,199,798 The accompanying notes form an integral part of these consolidated financial statements.
Page 7
GALATA WIND ENERJİ ANONİM ŞİRKETİ INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS 1 JANUARY – 30 JUNE 2026 AND 2025 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 4 Other comprehensive income or expense not to be reclassified Other comprehensive income or expense not to be reclassified to profit or loss to profit or loss Retained earnings Share Capital Adjustment Repurchased shares (-) Share premium/ Actuarial gain/ (loss)on defined Foreign currency conversion Gains on revaluation and classification of available for sale financial Restricted Retained earnings or Profit (Loss) Equity attributable to equity holders of Non- controlling capital Differences discounts benefit plans Differences Assets reserves accumulated loss for Period parent company interest Total equity Balance at 1 January 2025 540,000,000 5,856,275,075 - 32,788,019 (14,057,440) (257,288) 521,768 607,557,964 7,808,771,180 1,286,148,691 16,117,747,969 - 16,117,747,969 Transfers - - - - - - - 75,684,498 1,210,464,193 (1,286,148,691) - - - Dividends - - - - - - - - (470,461,904) - (470,461,904) - (470,461,904) Advance dividend paid during the period - - - - - - - - - - - - - Total comprehensive income - - - - - (1,152,612) - - - 544,763,458 543,610,846 - 543,610,846 -Other comprehensive income/ (expense) - - - - - (1,152,612) - - - - (1,152,612) - (1,152,612) - Net profit/ (loss) for the period - - - - - - - - - 544,763,458 544,763,458 - 544,763,458 Balance at 30 June 2025 540,000,000 5,856,275,075 - 32,788,019 (14,057,440) (1,409,900) 521,768 683,242,462 8,548,773,469 544,763,458 16,190,896,911 - 16,190,896,911 Balance at 1 January 2026 540,000,000 5,856,275,075 - 32,788,019 (11,557,110) (7,084,988) 521,768 683,242,462 8,548,773,469 995,574,704 16,638,533,399 - 16,638,533,399 Transfers - - - - - - - 89,604,884 905,969,820 (995,574,704) - - - Increase/Decrease arising from share repurchased transactions - - (28,047,231) - - - - - - - (28,047,231) - (28,047,231) Dividends - - - - - - - - (410,868,642) - (410,868,642) - (410,868,642) Total comprehensive income - - - - - (2,563,247) - - - 1,777,618,548 1,775,055,301 - 1,775,055,301 -Other comprehensive income/ (expense) - - - - - (2,563,247) - - - - (2,563,247) - (2,563,247) - Net profit/ (loss) for the period - - - - - - - - - 1,777,618,548 1,777,618,548 - 1,777,618,548 Balance at 30 June 2026 540,000,000 5,856,275,075 (28,047,231) 32,788,019 (11,557,110) (9,648,235) 521,768 772,847,346 9,043,874,647 1,777,618,548 17,974,672,827 - 17,974,672,827 The accompanying notes form an integral part of these consolidated financial statements.
Page 8
GALATA WIND ENERJİ ANONİM ŞİRKETİ INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY – 30 JUNE 2026 AND 2025 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 5 Reviewed Reviewed Current Period Prior Period 1 January - 1 January - 30 June 30 June Notes 2026 2025 A. NET CASH FROM OPERATING ACTIVITIES 385,929,006 1,089,046,841 Net profit (loss) for the period 1,777,618,548 544,763,458 Adjustments regarding reconciliation of net profit (loss) for the period: (1,430,447,910) 621,644,398 Adjustments related to depreciation and amortization 5,6,7 418,594,034 527,845,527 Adjustments related to provisions -Long-term employee benefits 1,330,985 3,877,907 -Short-term employee benefits 8,310,630 15,408,059 - Adjustments related to other provisions (reversals) 70,898 337,790 Adjustments related to interest (income) and expenses - Adjustments related to interest income 14 (226,939,020) (214,840,199) - Adjustments related to interest expenses 15 134,313,845 43,021,762 Adjustments related to fair value (gains) losses 31,217,325 (20,217,037) Adjustments related to tax (income)/expense 17 (1,339,256,347) 281,292,603 Adjustments related to changes in unrealised foreign exchange differences 4 113,139,820 314,150,377 Adjustments related to gains and losses on monetary positions (571,230,080) (329,232,391) Changes in working capital (181,542,587) (195,818,683) Adjustments for decreases/(increases) in inventories 471,547 2,693,840 Adjustments for decrease/ (increase) in trade receivables -Decrease/ (increase) in trade receivables from non-related parties 91,287,168 (76,534,755) Increase/ (decrease) in payables due to employee benefits (24,675,077) (29,825,349) Adjustments regarding decrease/ (increase) in other receivables on operations (Increase)/ decrease in other receivables regarding operations with non-related parties (26,603) 36,372 Adjustments regarding increase (decrease) in trade payables - Increase/ (decrease) in trade payables to related parties (1,648,464) (3,205,751) - Increase/ (decrease) in trade payables to non-related parties (10,182,897) (154,514,640) Adjustments regarding increase (decrease) in other payables on operations - Increase/(decrease) in other payables regarding operations with non-related parties (41,732,045) (27,860,322) Adjustments for other increase (decrease) in working capital - (Increase)/ decrease in other assets regarding operations (195,036,216) 93,391,922 Net cash from operating activities 165,628,051 970,589,173 Income tax refunds / (payments) 17 (8,152,451) (108,268,606) Interest received 228,651,823 227,842,274 Payment of provisions for employee benefits (198,417) (1,116,000) The accompanying notes form an integral part of these consolidated financial statements.
Page 9
GALATA WIND ENERJİ ANONİM ŞİRKETİ INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY – 30 JUNE 2026 AND 2025 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 6 Reviewed Reviewed Current Period Prior Period 1 January - 1 January - 30 June 30 June Notes 2026 2025 B. NET CASH FROM INVESTING ACTIVITIES (1,008,309,670) (1,286,989,553) Cash inflows / (outflows) from the acquisition of shares or debt instruments of other enterprises or funds (32,858,065) (302,371,530) Cash outflows from purchase of property, plant, equipment and intangible assets Cash outflows from purchase of property, plant, equipment 5 (388,638,736) (632,849,962) Cash outflows from purchase of intangible assets 6 (477,783,348) (504,936,072) Cash advance given 6,799,229 237,775,848 Other cash inflows (115,828,750) (84,607,837) C. NET CASH FROM FINANCING ACTIVITIES (538,183,778) (787,677,577) Cash outflows on debt payments - Cash outflows due to payments of bank borrowings 4 (354,894,006) (682,323,746) Cash outflows due to payments of lease liabilities 4 (51,635,891) (42,326,087) Interest paid 4,15 (131,653,881) (63,027,744) D. INFLATION EFFECT ON CASH AND CASH EQUIVALENTS (16,113,750) (197,453,894) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE FOREIGN CURRENCY TRANSLATION DIFFERENCES (A+B+C+D) (1,176,678,192) (1,183,074,183) E. EFFECT OF CURRENCY TRANSLATION DIFFERENCES ON CASH AND CASH EQUIVALENTS 121,338,803 109,868,469 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D+E) (1,055,339,389) (1,073,205,714) F.CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 3 1,396,245,629 2,018,580,333 G. CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D+E+F) 3 340,906,240 945,374,619 The accompanying notes form an integral part of these consolidated financial statements.
Page 10
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 7 NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS Galata Wind Enerji Anonim Şirketi (“Galata Wind” or the “Company”) was acquired and taken over from the İbrahimağaoğlu Family on 29 June 2012 as a Doğan Holding subsidiary. While the Company operated as a subsidiary of Doğan Enerji Yatırımları Sanayi ve Ticaret A.Ş. (“Doğan Enerji”) as part of Doğan Şirketler Grubu Holding A.Ş., it started to operate directly as a subsidiary of Doğan Şirketler Grubu Holding A.Ş. after the merger of Doğan Şirketler Grubu Holding A.Ş. and Doğan Enerji Yatırımları Sanayi ve Ticaret A.Ş. under Doğan Şirketler Grubu Holding A.Ş. on 2 March 2021. The ultimate joint shareholders of the Company are Aydın Doğan and Doğan Family (Işıl Doğan, Arzuhan Yalçındağ, Vuslat Sabancı, Hanzade V. Doğan Boyner and Y. Begümhan Doğan Faralyalı). Galata Wind is subject to Capital Markets Legislation and Capital Markets Board (“CMB”) regulations. Its shares have been traded on Borsa İstanbul A.Ş. (“Borsa İstanbul”) since 22 April 2021. As per CMB Principle Decision No. 31/1059 dated 30 Oct ober 2014 and Principle Decision No. 21/655 dated 23 July 2010, and according to the records of Central Securities Depository (“CSD”) , as of 10 August 2026, shares corresponding to 29.76% of Galata Wind’s capital are accepted as being in circulation. The main activities of the Company are establishing, operating and managing power plants and generating and selling electricity. In the scope of this purpose and field, the Company generates electricity using sustainable energy sources and sells this electricity to the Turkey Interconnected Grid. The Company owns three wind power plants (WPP) and two solar power plants (SPP). Total installed capacity of these plants is 354.2 MW, 283.9 MW of which is comprised of WPPs, and 70.3 MW of which is comprised of SPPs . All power plants, except Mersin WPP and Şah WPP, sell the electricity generated to the feed-in-tariff system, within the scope of the Support Mechanism for Renewable Energy Sources (“YEKDEM”). As of June 2026, a total of 454,720 MWh of electricity was generated, 430,909 MWh from WPPs and 23,811 MWh from SPPs. The WPPs with 49 -year generation licenses are Şah WPP, Taşpınar WPP and Mersin WPP. The 105 MW Şah WPP in Bandırma/Balıkesir has been in operation since 2011, while the 99.9 MW Mersin WPP in Mut/Mersin has been in operation since 2010. The Şah WPP and the Mersin WPP changed hands following the takeover of the company by the Doğan Group and have been operated by the Doğan Group since June 2012. The 79 MW Taşpınar power plant in Nilüfer/Bursa is a project developed by the company and was commissioned in October 2020 with a preliminary partial acceptance. By the end of 2020, the installation of 10 turbines was completed and the project was commissioned at full capacity in March 2021. In total, the company has 77 wind turbines, including 35 Vestas turbines in Bandirma, 16 Nordex turbines in Taspinar and 26 Vestas turbines in Mersin.
Page 11
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 8 NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS (Continued) "SPPs" operating within the scope of unlicensed power generation were commissioned with an installed capacity of 9.4 MW in Merkez/Çorum and 24.7 MW in Aziziye -Hınıs-Karayazı/Erzurum on 19 December 2017 and 31 December 2018, respectively. Electricity sales prices are as follows: • Şah WPP exited YEKDEM at the end of 2021. In this context, it sold the electricity generated in 2021 for the last time at a price of 73 USD/MWh. Since January 2022, it has been selling generated electricity through bilateral agreements. • The YEKDEM period for Taşpınar WPP began in 2021 and will continue until the end of 2030. Taşpınar WPP will once again utilize YEKDEM in 202 5. When YEKDEM expires, it will sell electricity at the spot price or through bilateral agreements. • Mersin WPP, whose YEKDEM term expired at the end of 2020, has been selling its electricity since January 2021 through bilateral agreements. • For SPPs, the 10-year YEKDEM period has begun from the date of operations. Çorum SPP will sell the electricity it generates until the end of 2027 and Erzurum SPP until the end of 2028 at a selling price of 133 USD/MWh through the distribution companies in the regions inwhich they operate. Pursuant to the resolution of the Board of Directors of the Company dated December 31, 2020, all registered shares of Sunflower Solar Güneş Enerjisi Sistemleri Ticaret A.Ş. ("Sunflower"), which is 100% owned by Doğan Enerji, were purchased and taken over by the company with a nominal value of TRY 1,000,000. As of December 31, 2020, the corresponding share transfers are included in Sunflower's share register and as of December 31, 2020, control of Sunflower has been transferred to Galata Wind. The ultimate shareholder of Sunflower is Doğan Şirketler Grubu Holding A.Ş., and the share transfer is considered a transaction between entities under common control. The company's field of activity is the design and installation of all types of renewable energy sources, sunlight-to-energy conversion systems and sunlight-to-energy generation systems in all types of residences, housing estates, hotels, hospitals, factories, tourism facilities, vacation villages and similar facilities, sites and buildings. The company will continue its activities in the field of rooftop solar energy projects and energy storage in the future. A Share Purchase and Sale Agreement dated 23 September 2022 was entered into between the Company and Şık Mehmet Aslan to acquire all registered shares corresponding to 100% of the capital of Gökova Elektrik Üretim ve Ticaret A.Ş. ("Gökova") at a price of TRY 38,265,698. The subject of the purchase is the wind power plant project ("Alapınar WPP Project"), which will operate within the borders of Muğla Province, has an installed capacity of 9 MWm / 6.8 MWe and a generation license number EÜ/3519-37/2164. As of 23 September 2022, corresponding share transfers are registered in the share register of Gökova. On 23 September 2022, control of Gökova was transferred to Galata Wind. The company has completed the establishment of a new company/subsidiary based in the Netherlands with the name Galata Wind Energy Global BV, with a capital of EUR 1,000,000 in which it will hold 100% of the capital, for the purpose of consolidating and effectively coordinating potential investments abroad, as of 25 July 2023.
Page 12
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 9 NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS (Continued) As of 3 0 June 2026, the main operations of the subsidiary of the Company (the Company and the subsidiary shall be together referred to as the “Group”) and the country in which it operates are as follows: Subsidiary Main operation Country registered Sunflower Solar Güneş Enerjisi Sistemleri Ticaret A.Ş. (“Sunflower”) Energy Turkiye Gökova Elektrik Üretim ve Ticaret A.Ş. ("Gökova") Energy Turkiye Galata Wind Energy Global BV (“Galata Wind Global”) Energy Netherlands Nova Grup Enerji Yatırımları A.Ş. ("Nova") Energy Turkiye Avrupa Grup Enerji Yatırımları A.Ş. ("Avrupa") Energy Turkiye Sunspark GmbH (“Sunspark”) Energy Germany Lumensun Energy GmbH (“Lumensun”) Energy Germany HelioNova Energy GmbH (“HelioNova”) Energy Germany Mila Energy GmbH (“Mila”) Energy Germany Solevento Srl. (“Solevento”) Energy Italy Montescaglioso 1 Srl. (“M1”) Energy Italy Ferrandina 14 Srl. (“F14”) Energy Italy Greenspark S.R.L. (“Greenspark”) Energy Italy Skywatt Energy S.R.L. (“Skywatt”) Energy Italy Suncetta S.R.L. (“Suncetta”) Energy Italy Alloro Energia S.R.L. (“Alloro”) Energy Italy Plantano Energia S.R.L. (“Plantano”) Energy Italy Salice Energia S.R.L. (“Salice”) Energy Italy Ulivo Energia S.R.L. (“Ulivo”) Energy Italy The Group had 70 employees as of 30 June 2026 (31 December 2025: 67). The registered address of the group is as follows: Burhaniye Mah. Kısıklı Cad. No: 65 34676 Üsküdar/Istanbul NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 2.1 Basis of Presentation 2.1.1 Preparation and Presentation of Financial Statements Adopted Financial Reporting Standards The consolidated financial statements of the Group have been prepared in accordance with the Capital Markets Board's (“CMB”) Communiqué Serial II, 14.1 “Principles of Financial Reporting in Capital Markets” (“Communiqué”) published in the Official Gazette dated 13 June 2013 and numbered 28676. Turkish Financial Reporting Standards and their ann exes and comments (“TFRSs”) published by the Public Oversight Accounting and Auditing Standards Authority (“KGK”) in accordance with Article 5 of the Communiqué. The consolidated financial statements have been prepared in accordance with the formats specified in the “Announcement on TFRS Taxonomy” published by POA on July 3, 2024 and the Financial Statement Examples and User Guide published by the CMB. The Group maintains their legal books of accounts in Turkish Lira in accordance with the Tax Legislation, and the Uniform Chart of Accounts (General Communiqué on Accounting System Implementation) issued by the Ministry of Finance. These consolidated financial statements, except for the financial assets that are presented at fair value, are prepared on the basis of historical cost. The Group has prepared its condensed consolidated financial statements for the interim period ending 30 June 2026 in accordance with IFRS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not contain all the information required to be included in the annual financial statements and should be read in conjunction with the Group’s annual financial statements prepared as at 31 December 2025.
Page 13
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 10 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.1 Preparation and Presentation of Financial Statements (Continued) Financial reporting in hyperinflationary econimics Pursuant to the decision of the Capital Markets Board (“CMB”) dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting / Financial Reporting Standards shall comply with the provisions of 2023, shall apply the provisions of TAS 29 "Financial Reporting Standard in High Inflation Economies" starting with their annual financial reports for the accounting periods ending on that date. The Group has decided to apply inflation accounting. The Group has decided to apply inflation accoun ting in accordance with the aforementioned CMB decision, the announcement made by the KGK on November 2023 and the “Application Guide on Financial Reporting in High Inflationary Economies” updated on 16 January 2025 has prepared its consolidated financial statements as of 30 June 2026, and for the year then ended, by applying TAS 29. In accordance with this standard, financial statements prepared based on the currency of a high inflation economy must be prepared at the purchasing power of that currency on the balance sheet date, and previous period financial statements must also be restated in the current measurement unit at the end of the reporting period. The Group has therefore presented its consolidated financial statements as of 31 December 2025, based on purchasing power parity as of 30 June 2026. In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations implementing Turkish Accounting/Financial Reporting Standards shall comply with the provis ions of TAS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2023. It was decided to apply inflation accounting. Rearrangements made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index in Turkey (“CPI”) published by the Turkish Statistical Institute (“TURKSTAT”). As of June 30, 2026, the indices and correction coefficients used in the correction of consolidated financial statements are as follows: Date Index Adjustment Coefficient Three Years Compound Inflation Rate 30 June 2026 4,137.93 1.00000 206% 31 December 2025 3,513.87 1.17760 211% 30 June 2025 3,132.17 1.32111 220% The main elements of the Group's adjustment for financial reporting purposes in high -inflation economies are as follows: - The current period consolidated financial statements prepared in TRY are expressed with the purchasing power at the balance sheet date, and the amounts from previous reporting periods are also expressed by adjusting according to the purchasing power at the end of the reporting period. - Monetary assets and liabilities are not adjusted as they are currently expressed with current purchasing power at the balance sheet date. In cases where the inflation -adjusted values of non -monetary items exceed the recoverable amount or net realizable v alue, the provisions of TAS 36 and TAS 2 were applied, respectively. - Non-monetary assets and liabilities and equity items that are not expressed in current purchasing power at the balance sheet date have been corrected using the relevant correction coefficients.
Page 14
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 11 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.1 Preparation and Presentation of Financial Statements (Continued) Financial reporting in hyperinflationary economics (Continued) All items in the statement of comprehensive income, except those that affect the statement of comprehensive income of non -monetary items in the balance sheet, are indexed with coefficients calculated over the periods when the income and expense accounts ar e 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 net monetary position loss account in the income statement. Functional and Presentation Currency Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Turkish Lira, which is the functional and presentation currency of Group. 2.1.2 Consolidation Principles (a) Subsidiaries Subsidiaries comprise of the companies directly or indirectly controlled by Galata Wind. Control is achieved when the Group: • Has power over the company/asset; • Is exposed, or has rights, to variable returns from its involvement with the company/asset; and • Has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are indicators of a situation or an event that may cause any changes to at least one of the elements of control listed above. When the Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in the relevant investee are sufficient to give it power, including: • The size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; • Potential voting rights held by the Group, other vote holders or other parties; • Rights arising from other contractual arrangements; and • Any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities (including voting patterns at previous shareholders’ meetings). Subsidiaries are consolidated by the date the Group takes control and from the date the control is over, subsidiaries are excluded from the consolidation scope. Proportion of ownership interest represents the effective shareholding of the Group through the shares held by Galata Wind and/or indirectly by its subsidiaries.
Page 15
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 12 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.2 Consolidation Principles (Continued) (a) Subsidiaries (Continued) Intercompany transactions and balances are eliminated on consolidation. The dividends arising from shares held by Group in its subsidiary are eliminated from equity and income for the period. Subsidiaries acquired or disposed of during the accounting period are included in the consolidation from the date at which the control of operations are transferred to the Group and excluded from the consolidation when the control is lost. Even if non-controlling interests result in a deficit balance, total comprehensive income is attributed to the owners and to the non-controlling interests. Income and expense of a subsidiary acquired or disposed of the during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary. Changes in ownership interests The Group assesses transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their indirect interests in the subsidiary. Any difference between the amount of adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity. As of 30 June 2026, Sunflower, Gökova and Galata Wind Global, are the subsidiaries consolidated. The voting rights and effective ownership rates for Sunflower, Gökova and Galata Wind Global are shown below. Lumensun, HelioNova, Mila Energy, Greenspark, Skywatt, Suncetta, Alloro, Plantano, Salice and Ulivo were established in 2026 and have not been included in the consolidation as their financial figures are not material. Direct voting Proportion of effective Rights (%) Ownership interest (%) 30 June 31 December 30 June 31 December Subsidiaries 2026 2025 2026 2025 Sunflower 100 100 100 100 Gökova 100 100 100 100 Galata Wind Global 100 100 100 100 Nova 100 100 100 100 Avrupa 100 100 100 100 Sunspark 100 100 100 100 Lumensun 100 - 100 - HelioNova 100 - 100 - Mila Energy 100 - 100 - Solevento 100 100 100 100 Montescaglioso 1 100 100 100 100 Ferrandina 14 100 100 100 100 Greenspark 75 - 75 - Skywatt 75 - 75 - Suncetta 75 - 75 - Alloro 75 - 75 - Plantano 75 - 75 - Salice 75 - 75 - Ulivo 75 - 75 -
Page 16
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 13 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.2 Consolidation Principles (Continued) Changes in ownership interests (Continued) Summary financial information of Sunflower as of 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Current assets 1,274,458 1,424,435 Non-current assets - - Current liabilities 7,746 8,674 Shareholders equity 1,266,712 1,415,761 Net (loss)/ profit for the period (149,049) (171,552) Summary financial information of Gökova as of 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Current assets 5,323,414 4,366,560 Non-current assets 9,174,118 7,222,911 Current liabilities 502 2,998 Shareholders equity 14,497,030 11,586,473 Net (loss)/ profit for the period 285,557 658,835 Summary financial information of Galata Wind Global as of 3 0 June 2026 and 31 December 2025 are as follows: the financial information of Nova, Avrupa, Sunspark and Solevento are also shown under Galata Wind Global: 30 June 2026 31 December 2025 Current assets 338,924,447 42,237,038 Non-current assets 1,885,416,100 1,158,457,902 Current liabilities 2,330,857,202 1,243,311,588 Shareholders equity (106,516,655) (42,616,648) Net (loss)/ profit for the period (60,268,242) (35,321,777) (b) Non-Controlling Interests Non-controlling interests of shareholders over the net assets and operational results of subsidiaries are classified as non -controlling interest and non -controlling profit/loss in the consolidated statement of financial position and consolidated statement of income. 2.1.3 Offsetting Financial assets and liabilities are offset, and the net amount is reported when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. To conform to the presentation of the current period ’s consolidated financial statements, comparative information is reclassified when deemed necessary and material differences are disclosed.
Page 17
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 14 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.4 Comparative information and restatement of prior period financial statements The Group's consolidated financial statements were prepared in comparison with the previous periods to determine financial position and performance trends. The Group prepared its consolidated statement of financial position as of 30 June 2026 in comparison with the consolidated statement of financial position as of 31 December 2025. The Group prepared its consolidated statement of profit or loss and other comprehensive income, consolidated statement of cash flows and consolidated stateme nt of changes in equity for the period ending 1 January - 30 June 2026 in comparison with the consolidated financial statements for the period ending 1 January - 30 June 2025. The Group has reclassified the personnel expenses of TRY 22,544,982 and the depreciation and amortization expenses of TRY 3,010,599 which were shown under "Marketing Expenses" as of the accounting period of January 1 - June 30, 2025, under "General Administrative Expenses" in the financial statements prepared as of June 30, 2026, in order to present the relevant periods comparatively. 2.1.5 Financial statements of subsidiaries operating abroad The financial statements of subsidiaries operating abroad have been prepared in accordance with the laws and regulations of the countries in which they operate and have been prepared with adjustments made for the purpose of fair presentation in accordance with Turkish Accounting Standards. In this context, the Group's subsidiaries operating abroad prepare their financial statements in the functional currency Euro, assets and liabilities are translated into Turkish Lira at the exchange rate prevailing on the date of the consolidated balance sheet, and income and expenses are translated into Turkish Lira at the average exchange rate. Translation differences resulting from the use of closing and average rates and indexation effects resulting from the indexation of the income statements in accordance with TAS 29 are recognized in other comprehensive income and in equity under the currency translation reserve. 2.1.6 Changes in s ignificant accounting policies, accounting estimates, errors and restatement of prior period financial statements Changes of accounting policies resulting from the first -time implementation of the TAS are implemented retrospectively or prospectively in accordance with the transition provisions. Major accounting mistakes detected are applied retrospectively and the financial statements of previous period are revised. If the changes in accounting estimates only apply to one period, then they are applied in the current period when the change occurs; if the changes apply also to the future periods, they are applied in both the period of change and in the future period. Tangible fixed assets are reflected in the financial statements at their net value, calculated at acquisition cost, after deducting accumulated depreciation and, where applicable, permanent impairment. Depreciation of tangible, fixed assets is calculated using the straight-line depreciation method over the useful lives of the assets (excluding land and plots). Following a reassessment of changes in estimates, the expected useful life for wind turbines, transformers, and substations has been increased from a n average of 20 years to 30 years, starting from January 1, 2026.
Page 18
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 15 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.7 New and revised Turkish Financial Reporting Standards (“TFRS”) a) Amendments that are mandatorily effective from 2026 Amendments to TFRS 9 and TFRS 7 Classification and Measurement of Financial Instruments The amendments address matters identified during the post-implementation review of the classification and measurement requirements of TFRS 9 Financial Instruments . Amendments are effective from annual reporting periods beginning on or after 1 January 2026. Amendments to TFRS 9 and TFRS 7 Power Purchase Arrangements The amendments aim at enabling entities to include information in their financial statements that in the IASB’s view more faithfully represents contracts referencing nature-dependent electricity. Amendments are effective from annual reporting periods beginning on or after 1 January 2026. Annual Improvements to TFRSs – Volume 11 The pronouncement comprises the following amendments: • TFRS 1: Hedge accounting by a first-time adopter • TFRS 7: Gain or loss on derecognition • TFRS 7: Disclosure of deferred difference between fair value and transaction price • TFRS 7: Introduction and credit risk disclosures • TFRS 9: Lessee derecognition of lease liabilities • TFRS 9: Transaction price • TFRS 10: Determination of a ‘de facto agent’ • TAS 7: Cost method Amendments are effective from annual reporting periods beginning on or after 1 January 2026. The aforementioned standard, amendments and improvements do not have any significant effect on the Company's financial position and performance b) New and revised TFRSs in issue but not yet effective TFRS 17 Insurance Contracts TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred to insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2027.
Page 19
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 16 NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of Presentation (Continued) 2.1.7 New and revised Turkish Financial Reporting Standards (“TFRS”) (Continued) Amendments to TFRS 17 Insurance Contracts and Initial Application of TFRS 17 and TFRS 9 – Comparative Information Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the results and to facilitate the initial application. The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had been applied to that financial asset before. Amendments are effective with the first application of TFRS 17. TFRS 18 Presentation and Disclosures in Financial Statements TFRS 18 includes requirements for all entities applying TFRS for the presentation and disclosure of information in financial statements. This standard is effective from annual reporting periods beginning on or after 1 January 2027. TFRS 19 Subsidiaries without Public Accountability: Disclosures TFRS 19 specifies the disclosure requirements an eligible subsidiary is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. This standard is effective from annual reporting periods beginning on or after 1 January 2027. Amendments to TFRS 19 Subsidiaries without Public Accountability: Disclosures The amendments cover new or amended Turkish Financial Reporting Standards that were not considered when TFRS 19 was first issued. Amendments are effective from annual reporting periods beginning on or after 1 January 2027. Amendments to TAS 21 Translation to a Hyperinflationary Presentation Currency The amendments clarify how companies should translate financial statements from a non - hyperinflationary currency into a hyperinflationary one. Annual reporting periods beginning on or after 1 January 2027. Amendments to TAS 28 Amendments to the Fair Value Option for Investments in Associates and Joint Ventures The amendments provide clarity about which entities are eligible to measure investments using the fair value option in TAS 28. Annual reporting periods beginning on or after 1 January 2027.
Page 20
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 17 NOTE 3 - CASH AND CASH EQUIVALENTS 30 June 2026 31 December 2025 Banks (*) 340,916,508 1,397,968,699 - Demand deposits 69,761 2,585,621 - Time deposits (less than 3 months) 340,846,747 1,395,383,078 340,916,508 1,397,968,699 (*) As of 30 June 2026, the Group's overnight time deposits are 39% in TRL, 3% in USD and 2% in EUR (effective interest rate in EUR as of 31 December 202 5 is 2%, effective interest rate in USD as of 31 December 202 5 is 4%) and their maturities are less than 3 months. The Group has no blocked deposits as of 3 0 June 2026 (31 December 2025: None). Cash and cash equivalents included in the cash flow statements in 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 31 December 2025 30 June 2025 31 December 2024 Cash and cash equivalents 340.916.508 1,397,968,700 945,964,482 2,032,172,270 Interest accruals (-) (10.268) (1,723,070) (589,863) (13,591,937) Total 340.906.240 1,396,245,629 945,374,619 2,018,580,333 NOTE 4 - SHORT AND LONG-TERM BORROWINGS The summary on short and long-term bank borrowings is as follows: Short-term portion of long-term borrowings: 30 June 2026 31 December 2025 Short-term portion of long-term bank borrowings from third parties 789,273,836 831,475,851 Lease liabilities from third parties 5,790,440 1,500,902 Lease liabilities from related parties 1,039,051 719,797 796,103,327 833,696,550 Long-term borrowings: 30 June 2026 31 December 2025 Long-term bank borrowings from third parties 2,294,938,642 2,909,735,603 Lease liabilities from third parties 189,748,351 180,795,714 Lease liabilities from related parties 297,746 350,625 2,484,984,739 3,090,881,942
Page 21
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 18 NOTE 4 - SHORT AND LONG-TERM BORROWINGS (Continued) a) Bank borrowings Details of the bank borrowings as of 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 Interest rate Original per annum (%) currency TRY Short-term portion of long-term bank borrowings: - EUR denominated bank borrowings Libor+0.65 - 0.80 3,986,660 212,019,761 -USD denominated bank borrowings SOFR+3.80 12,371,869 577,254,075 Long term bank borrowings: - EUR denominated bank borrowings Libor+0.65 - 0.80 11,019,971 586,067,417 -USD denominated bank borrowings SOFR+3.80 36,625,000 1,708,871,225 Total bank borrowings 3,084,212,478 31 December 2025 Interest rate Original per annum (%) currency TRY Short-term portion of long-term bank borrowings: - EUR denominated bank borrowings Libor+0.65 - 0.80 3,448,363 204,568,342 -USD denominated bank borrowings SOFR+3.80 12,402,720 626,907,509 Long term bank borrowings: - EUR denominated bank borrowings Libor+0.65 - 0.80 12,623,966 748,895,531 -USD denominated bank borrowings SOFR+3.80 42,750,000 2,160,840,072 Total bank borrowings 3,741,211,454 The redemption of long-term bank borrowings as of 30 June 2026 and 31 December 2025 is as follows: 30 June 2026 31 December 2025 In 2 years 742,176,057 809,496,616 In 3 years 742,176,057 809,496,616 In 4 years 564,246,128 809,496,616 More than 5 years 246,340,400 481,245,755 2,294,938,642 2,909,735,603
Page 22
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 19 NOTE 4 - SHORT AND LONG-TERM BORROWINGS (Continued) a) Bank borrowings (Continued) As of 30 June 2026, and 31 December 202 5, the Group's financial liabilities with floating and fixed interest rates is as follows: 30 June 2026 31 December 2025 Financial borrowings with floating rates 3,084,212,478 3,741,211,454 3,084,212,478 3,741,211,454 The Group have a financial commitment to comply with its loan agreements . In accordance with the bank loan agreement, the measurement date of financial ratios is 31 December 2026. As of 3 0 June 2026, the remaining credit limit of the Group in banks is TRY 13,240,556,445 (31 December 2025: TRY 11,859,956,835). Commitments related to financial liabilities are presented in Note 8. The movement of the financial borrowings as of 30 June 2026 and 2025 is as follows: 2026 2025 1 January 3,741,211,454 3,392,357,347 Additions - - Payments (354,894,006) (682,323,746) Interest accruals 27,645,484 24,985,520 Unrealized exchange rate difference 234,478,623 424,018,846 Monetary Gain/(Loss) (564,229,077) (484,803,506) 30 June 3,084,212,478 2,674,234,461 The reconciliation of the net financial borrowings as of 30 June 2026 and 31 December 202 5 are as follows: 30 June 2026 31 December 2025 Cash and cash equivalents (Note 3) 340,916,508 1,397,968,699 Short-term borrowings (789,273,836) (831,475,851) Long-term borrowings (2,294,938,642) (2,909,735,603) Short-term lease liabilities (6,829,491) (2,220,699) Long-term lease liabilities (190,046,097) (181,146,339) Net financial (liability)/assets (2,940,171,558) (2,526,609,793)
Page 23
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 20 NOTE 4 - SHORT AND LONG-TERM BORROWINGS (Continued) a) Bank borrowings (Continued) Long Cash and Net and short-term Lease cash financial borrowings liabilities equivalent (asset)/liabilities 1 January 2026 3,741,211,454 183,367,038 (1,397,968,699) 2,526,609,793 Cash flow effect (354,894,006) (11,630,748) 1,192,791,942 826,267,188 Foreign currency adjustment 234,478,623 - (121,338,803) 113,139,820 Interest accruals 27,645,484 24,454,959 1,712,802 53,813,245 Monetary Gain/(Loss) (564,229,077) 684,339 (16,113,750) (579,658,488) 30 June 2026 3,084,212,478 196,875,588 (340,916,508) 2,940,171,558 Long Cash and Net and short-term Lease cash financial Borrowings liabilities equivalent (asset)/liabilities 1 January 2025 3,392,357,347 139,797,057 (2,032,172,271) 1,499,982,133 Cash flow effect (682,323,746) 25,432,673 1,148,253,053 491,361,980 Foreign currency adjustment 424,018,846 - (109,868,469) 314,150,377 Interest accruals 24,985,520 17,914,020 13,002,075 55,901,615 Monetary Gain/(Loss) (484,803,506) (1,136,009) 34,821,130 (451,118,385) 30 June 2025 2,674,234,461 182,007,741 (945,964,482) 1,910,277,720 b) Lease liabilities Details of the lease liabilities as of 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 Interest rate Original per annum (%) Currency TRY Short-term portion of long-term lease liabilities: TRY denominated lease borrowings from third parties 18.79 – 22.55 5,790,440 5,790,440 TRY denominated lease liabilities from related parties 18.00 1,039,051 1,039,051 Total short-term portion of long-term lease liabilities: 6,829,491 Long-term lease liabilities: TRY denominated lease liabilities from third parties 18.79 – 22.55 189,748,351 189,748,351 TRY denominated lease liabilities from related parties 18.00 297,746 297,746 Total long-term lease liabilities 190,046,097 Total lease liabilities 196,875,588
Page 24
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 21 NOTE 4 - SHORT AND LONG-TERM BORROWINGS (Continued) b) Lease liabilities (Continued) 31 December 2025 Interest rate Original per annum (%) Currency TRY Short-term portion of long-term lease liabilities: TRY denominated lease liabilities from third parties 18.79 – 22.55 1,500,902 1,500,902 TRY denominated lease liabilities from related parties 18.00 719,797 719,797 Total short-term portion of long-term lease liabilities: 2,220,699 Long-term lease liabilities: TRY denominated lease liabilities from third parties 18.79 – 22.55 180,795,714 180,795,714 TRY denominated lease liabilities from related parties 18.00 350,625 350,625 Total long-term lease liabilities 181,146,339 Total lease liabilities 183,367,038 The movement of the lease liabilities as of 30 June 2026 and 2025 are as follows: 2026 2025 1 January 183,367,038 139,797,057 Additions 40,005,143 67,758,761 Payments (51,635,891) (42,326,088) Interest expense 24,454,959 17,914,020 Monetary Gain/(Loss) 684,339 (1,136,010) 30 June 196,875,588 182,007,740
Page 25
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 22 NOTE 5 - PROPERTY, PLANT AND EQUIPMENT Movements of the property, plant and eq uipment for the periods ended 3 0 June 2026 and 2025 are as follows: 1 January 2026 Additions Transfers Disposals Foreign Currency Difference 30 June 2026 Cost Land and land improvements 423,810,851 - - - - 423,810,851 Buildings 127,053,808 - - - - 127,053,808 Wind turbines, transformer and switchyard 18,744,349,639 9,724,676 - - - 18,754,074,315 Motor vehicles 69,536,448 2,352,864 - - - 71,889,312 Furniture and fixtures 335,168,949 2,345,944 - - - 337,514,893 Construction in progress 775,176,704 369,905,085 - - 8,529,129 1,153,610,918 Special costs 160,717,406 4,310,167 - - - 165,027,573 Total cost 20,635,813,805 388,638,736 - - 8,529,129 21,032,981,670 Accumulated depreciation Land and land improvements (119,606,562) (11,003,873) - - - (130,610,435) Buildings (27,846,472) (1,305,683) - - - (29,152,155) Wind turbines, transformer and switchyard (6,765,166,436) (288,950,826) - - - (7,054,117,262) Motor vehicles (25,316,118) (6,514,287) - - - (31,830,405) Furniture and fixtures (163,615,157) (10,645,715) - - - (174,260,872) Special costs (6,638,859) (1,866,427) - - - (8,505,286) Total accumulated depreciation (7,108,189,604) (320,286,811) - - - (7,428,476,415) Net book value 13,527,624,201 13,604,505,255 As of 30 June 2026, there are no capitalized borrowing costs in property, plant and equipment (31 December 2025: None). As of June 30, 2026, there were no mortgages on property, plant and equipment (December 31, 202 5: None). The Group has no property, plant and equipment acquired through finance leases.
Page 26
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 23 NOTE 5 - PROPERTY, PLANT AND EQUIPMENT (Continued) 1 January 2025 Additions Transfers Disposals 30 June 2025 Cost Land and land improvements 295,219,693 356,545 126,286,057 - 421,862,295 Buildings 120,593,305 6,460,502 - - 127,053,807 Wind turbines, transformer and switchyard 14,668,522,172 83,070,417 3,956,467,746 - 18,708,060,335 Motor vehicles 59,246,766 4,707,583 - - 63,954,349 Furniture and fixtures 314,238,198 4,814,092 - - 319,052,290 Construction in progress 4,401,766,423 524,849,071 (4,207,396,840) - 719,218,654 Special costs 42,434,916 8,591,752 109,351,034 - 160,377,702 Total cost 19,902,021,473 632,849,962 (15,292,003) - 20,519,579,432 Accumulated depreciation Land and land improvements (98,795,817) (9,812,868) - - (108,608,685) Buildings (25,277,350) (1,263,439) - - (26,540,789) Wind turbines, transformer and switchyard (5,874,039,340) (408,674,609) - - (6,282,713,949) Motor vehicles (13,078,288) (5,939,701) - - (19,017,989) Furniture and fixtures (144,623,348) (9,079,056) - - (153,702,404) Special costs (3,680,007) (1,126,481) - - (4,806,488) Total accumulated depreciation (6,159,494,150) (435,896,154) - - (6,595,390,304) Net book value 13,742,527,323 13,924,189,128 NOTE 6 - INTANGIBLE ASSETS Movements of the intangible assets for the periods ended 30 June 2026 and 2025 are as follows: 1 January 2026 Additions Transfers Disposals Foreign Currency Difference 30 June 2026 Cost Rights (*) 70,027,854 - - - - 70,027,854 Licenses (**) 8,952,097,894 477,783,348 - - 44,812,372 9,474,693,614 Total cost 9,022,125,748 477,783,348 - - 44,812,372 9,544,721,468 Accumulated amortization Rights (22,224,769) (3,330,060) - - - (25,554,829) Licenses (2,111,182,314) (77,272,084) - - - (2,188,454,398) Total accumulated amortization (2,133,407,083) (80,602,144) - - - (2,214,009,227) Net book value 6,888,718,665 7,330,712,241 (*) As of 30 June 2026, there are 1,744,910 tons of carbon credit sales rights. (31 December 2025: 1,313,750 tons) (**) The investment consists of the license fees for 9 MW, 20 MW, and 22 MW projects in Germany and 10 MW in Italy, respectively, undertaken by SunSpark GmbH, a wholly owned subsidiary of Galata Wind Energy Global BV (established to coordinate renewable energy investments in Europe), and Solevento Investments Srl., as well as the project development costs undertaken under Solevento Investment Srl.
Page 27
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 24 NOTE 6 - INTANGIBLE ASSETS (Continued) 1 January 2025 Additions Transfers Disposals Foreign Currency Difference 30 June 2025 Cost Rights 54,735,851 - 15,292,003 - - 70,027,854 Licenses 7,544,092,713 504,936,072 - - 101,416,734 8,150,445,519 Total cost 7,598,828,564 504,936,072 15,292,003 - 101,416,734 8,220,473,373 Accumulated amortization Rights (16,005,875) (2,948,292) - - - (18,954,167) Licenses (1,956,638,146) (77,272,084) - - - (2,033,910,230) Total accumulated amortization (1,972,644,021) (80,220,376) - - - (2,052,864,397) Net book value 5,626,184,543 6,167,608,976 NOTE 7 - RIGHT OF USE ASSETS 1 January 2026 Additions Disposals 30 June 2026 Cost: Land 409,833,402 129,541,353 - 539,374,755 Motor vehicles 7,135,652 (204,052) - 6,931,600 Offices 20,616,052 - - 20,616,052 437,585,106 129,337,301 - 566,922,407 Accumulated amortization: Land (47,791,774) (15,469,608) - (63,261,382) Motor vehicles (6,532,666) (863,724) - (7,396,390) Offices (10,059,985) (1,371,747) - (11,431,732) (64,384,425) (17,705,079) - (82,089,504) Net book value 373,200,681 484,832,903 1 January 2025 Additions Disposals 30 June 2025 Cost: Land 242,768,381 126,287,047 - 369,055,428 Motor vehicles 12,502,155 - (4,101,586) 8,400,569 Offices 20,345,698 531,474 - 20,877,172 275,616,234 126,818,521 (4,101,586) 398,333,169 Accumulated amortization: Land (28,220,819) (9,002,048) - (37,222,867) Motor vehicles (8,754,286) (1,355,202) 4,101,586 (6,007,902) Offices (7,316,492) (1,371,747) - (8,688,239) (44,291,597) (11,728,997) 4,101,586 (51,919,008) Net book value 231,324,637 346,414,161
Page 28
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 25 NOTES 8 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES a) Other short-term provisions: 30 June 2026 31 December 2025 Provision for lawsuit 717,242 646,344 717,242 646,344 b) Conditional Liabilities, Guarantee, Pledge, Mortgage, Bail and other Collateral, Pledge and Mor tgage (“CPM”) positions as of 30 June 2026 and 31 December 2025 are presented below: 30 June 2026 TRY equivalent TRY EUR A. GPM’s given for companies’ own legal personality - Guarantee (1) 316,203,513 91,755,505 4,227,960 - Pledge - - - - Mortgage - - - B. GPM’s given on behalf of fully consolidated companies - - - C. GPM’s given for continuation of its economic activities on behalf of third parties - - - D. Total amount of other GPM’s i, Total amount of GPM’s given on behalf of the majority shareholder - - - ii, Total amount of GPM’s given to on behalf of other group companies which are not companies which are not in scope of B and C - - - iii, Total amount of GPM’s given on behalf of third parties which are not in scope of C - - - Total 316,203,513 91,755,505 4,227,960 31 December 2025 TRY equivalent TRY EUR A. GPM’s given for companies’ own legal personality - Guarantee (1) 398,408,900 111,324,921 4,831,954 - Pledge - - - - Mortgage - - - B. GPM’s given on behalf of fully consolidated companies - - - C. GPM’s given for continuation of its economic activities on behalf of third parties - - - D. Total amount of other GPM’s i, Total amount of GPM’s given on behalf of the majority shareholder - - - ii, Total amount of GPM’s given to on behalf of other group companies which are not companies which are not in scope of B and C - - - iii, Total amount of GPM’s given on behalf of third parties which are not in scope of C - - - Total 398,408,900 111,324,921 4,831,954 (1) Represents the guarantee letters provided. The Group provided guarantee letters to the Energy Market Regulation Authority and financial institutions.
Page 29
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 26 NOTES 8 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued) b) Conditional Liabilities, Guarantee, Pledge, Mortgage, Bail and other (Continued) The details of these guarantee letters are as follows: 30 June 2026 31 December 2025 Original TRY Original TRY currency equivalent currency equivalent Letter of guarantees - TRY 91,755,505 91,755,505 111,324,921 111,324,921 Letter of guarantees - EUR 4,227,960 224,448,008 4,831,954 287,083,979 Total 316,203,513 398,408,900 c) Letters of guarantee and collateral bills received The letters of guarantee and collateral bills received consist of guarantee letters received from the responsible entity for imbalance and subcontractors related to Taşpınar WPP. The details of the Group’s letters of guarantee and collateral bills are as follows: 30 June 2026 31 December 2025 Original TRY Original TRY currency equivalent currency equivalent Guarantee letter – TRY 390,179,825 390,179,825 484,259,813 484,259,813 Guaranteed bill - TRY 575,000 575,000 11,776 11,776 Total 390,754,825 484,271,589 NOTES 9 - PREPAID EXPENSES Short-term prepaid expenses 30 June 2026 31 December 2025 Prepaid expenses 37,698,779 67,369,478 Advances given 2,909,136 2,047,700 40,607,915 69,417,178 Long-term prepaid expenses 30 June 2026 31 December 2025 Advances given 84,125,836 79,339,425 Prepaid expenses 58,281,210 69,866,850 142,407,046 149,206,275
Page 30
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 27 NOTE 10 - EQUITY Paid Capital: The ultimate shareholder of the Group is Doğan Family. The shareholders of the Group and the historical values of shares in equity on 30 June 2026 and 31 December 2025 are as follows: Shareholder Share (%) 30 June 2026 Share (%) 31 December 2025 Doğan Şirketler Grubu Holding A.Ş. 70.00 378,000,000 70.00 378,000,000 Publicly traded on Borsa İstanbul (1) 30.00 162,000,000 30.00 162,000,000 Nominal equity (2) 100 540,000,000 100 540,000,000 (1) In accordance with the “CMB” Resolution No: 31/1059 issued on 30 October 2014 and 21/655 issued on 23 July 2010, it is regarded that 160,719,911 shares corresponding to 29.76% of Galata Wind's capital are outstanding as of 10 August 2026 based on the Central Security Depository’s (“CSD”) records. The Group’s authorized share capital consists of 540,000,000 shares with a nominal value of 1 TRY per share (31 December 2025: 540,000,000 shares / 1 TRY). Repurchased shares By the decision of the Group Board of Directors dated March 24, 2026, and in accordance with the Capital Markets Board's Principle Decision No. i -SPK.22.9 (dated March 19, 2025, and numbered 16/531), it has been decided to initiate a "Share Repurchased Program" to contribute to healthy and stable price formation in the company's stock market. The maximum number of shares that can be repurchased under this "Share Buyback Program" is determined as 7,300,000, and the maximum amount of funds that can be use d from the company's resources is determined as 225,000,000 TL. The "Share Repurchase Program" will be terminated upon reaching the maximum number of shares that can be repurchased or the maximum amount of funds that can be used, and in any case, it will remain valid until the general assembly meeting where the results of the 2026 fiscal year will be discussed. As of the balance sheet date, a total of 28,047,231 Turkish Lira worth of shares have been repurchased. Share premiums/ (discounts) This account represents the differences that occur when the carrying amount of the net assets of the entities, acquired in a business combination transaction involving entities under common control, exceeds the transferred price at the date of the merger. 30 June 2026 31 December 2025 Share premiums 32,788,019 32,788,019 Total 32,788,019 32,788,019 Restricted reserves Restricted reserves are reserved from the prior period profit due to legal or contractual obligations or for certain purposes other than the profit distribution (for example, obtaining the tax advantage of gain on sale of associates). Restricted reserves are in the scope of solo legal records in accordance with TCC and TPL. General Statutory Legal Reserves are reserved in accordance with the Article 519 of Turkish Commercial Code and used in accordance with the principles set out in this article. The afore -mentioned amounts should be classified in “Restricted Reserves” in accordance with the TAS.
Page 31
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 28 NOTE 10 - EQUITY (Continued) The details of restricted reserves as of 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Restricted Reserves 772,847,346 683,242,462 Total 772,847,346 683,242,462 Other Comprehensive Income and Losses that will not be Reclassified in Profit or Loss The Group’s actuarial losses of defined benefit plan that aren’t reclassified in accumulated other comprehensive income and expenses are summarized below: i. Actuarial gains (losses) on defined benefit plans The provision for termination benefits is calculated by estimating the present value of the Group's probable future obligation arising from the retirement of employees. The Group has recognized all actuarial gains and losses relating to the provision for t ermination benefits in other comprehensive income. The valuation losses recognized in the balance sheet as a valuation difference in equity amount to TRY 11,557,110 (December 31, 2025: TRY 11,557,110 valuation losses). Capital Reserves and Retained Earnings After the first inflation adjusted financial statements, equity items such as “Capital, Emission Premiums, General Statutory Legal Reserves, Statutory Reserves, Special Reserves and Extraordinary Reserves” are carried at carrying value in the statement of financial position and their adjusted values based on inflation are collectively presented in equity accounts group. In accordance with the CMB regulations, “Issued capital”, “Restricted Reserves” and “Share Premiums” shall be carried at their statutory amounts. The valuation differences resulted due to the inflation adjustment shall be disclosed as follows: - If the difference is due to the “Issued Capital” and has not yet been transferred to capital, it should be classified under “Capital adjustment difference”; - If the difference is due to “Restricted Reserves” and “Share Premium” and the amount has not been subject to dividend distribution or capital increase yet, it shall be classified under “Retained Earnings/(Losses)”. Other equity items are carried at the amounts valued in accordance with TAS. Capital adjustment differences have no other use than to be included to the share capital.
Page 32
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 29 NOTE 10 - EQUITY (Continued) Dividend Distribution The Group makes decisions on the distribution of dividends and distributes them in accordance with the Turkish Commercial Code ("TCC"), tax laws, other relevant legislation, the Articles of Association and the resolutions of the General Assembly. At the Group’s Annual General Meeting held on 2 April 2026, it was resolved, in accordance with the Turkish Commercial Code (“TCC”), the Corporate Income Tax Law, the Income Tax Law and other applicable legislation, as well as the relevant provisions of the Group’s Articles of Association and the rules of the Central Registry Agency Inc. (“CRA”) regarding fractional amounts in effect as of the dividend distribution date, to distribute a gross dividend of 74.07% of the issued capital, amounting to a gross total of TL 400,000,000 (TL 410,868,642 on an inflation-adjusted basis). It was further resolved that the dividend distribution would commence no later than 31 December 2026. As of the reporting date, the portion of the declared dividends that has not yet been distributed is presented under “Other Liabilities to Related Parties.” Presentation of Capital Adjustment Differences, Share-Related Premiums/Discounts and Restricted Reserves Allocated from Profit in Financial Statements in accordance with TAS 29 and TPC Statutory reserves and special reserves, etc., classified under "Legal Reserves" and "Other Reserves", including "Capital Adjustment Differences", "Premiums (Discounts) on Shares" (Emission Premium) in the financial statements prepared in accordance with t he CMB legislation, Starting from the TFRS balance sheets for the reporting period ending in 2023, it has been shown over the CPI, and in the TPC financial statements over the PPI. PPI Indexed Statutory Records CPI Indexed Amounts Difference Recorded UnderRetained Earnings Inflation Adjustments on Capital 5,179,413,767 5,856,275,075 (676,861,308) Share Premiums/Discounts - 32,788,019 (32,788,019) Restricted Reserves 572,022,454 772,847,344 (200,824,890) NOTE 11 - REVENUE AND COST OF SALES 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Electricity sales from wind energy 959,155,923 273,727,323 1,381,037,595 687,724,424 Electricity sales from solar energy 147,733,130 93,208,723 184,952,315 111,140,813 Other 557,924 427,843 12,025,652 416,395 Total Revenue 1,107,446,977 367,363,889 1,578,015,562 799,281,632
Page 33
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 30 NOTE 11 - REVENUE AND COST OF SALES 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 General production expenses (275,841,019) (136,542,637) (260,923,202) (141,206,683) Service and maintenance expenses (*) (123,664,617) (61,651,256) (126,439,950) (65,456,876) Distribution and system usage fees (**) (152,176,402) (74,891,381) (134,483,252) (75,749,807) Amortization and depreciation expense (411,538,758) (205,531,831) (521,685,081) (286,449,393) Insurance expenses (10,479,806) (5,188,616) (11,585,155) (7,248,204) Personnel expenses (24,415,491) (12,091,132) (24,648,822) (11,713,921) Security expenses (22,237,199) (8,684,083) (18,776,622) (10,280,861) Consultancy expenses (9,382,270) (4,704,264) (5,642,524) (3,858,793) Other (10,974,396) (4,561,352) (6,227,099) (910,460) Cost of sales (764,868,939) (377,303,915) (849,488,505) (461,668,315) Gross profit 342,578,038 (9,940,026) 728,527,057 337,613,317 (*) Includes annual maintenance expenses for turbines. (**) Distribution and system usage fees paid based on the annual generation at the tariff defined by EMRA NOTE 12 - OPERATING EXPENSES a) General Administrative Expenses 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Personnel expenses (88,954,286) (46,642,113) (88,687,953) (45,680,903) Consultancy expenses (*) (28,948,393) (14,465,494) (25,287,395) (12,157,704) Depreciation and amortization expenses (7,055,276) (3,589,239) (6,160,446) (3,005,303) Transportation expenses (2,043,256) (655,046) (2,933,885) (1,147,240) Other (14,226,144) (6,989,069) (17,805,003) (7,745,737) (141,227,355) (72,340,961) (140,874,682) (69,736,887) (*) Consists of foreign investment development advisory costs and holding financial consultancy expenses. b) Marketing Expenses 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Consultancy expenses (8,525,431) (5,534,928) (6,241,373) (3,282,462) Transportation expenses (1,642,581) (923,248) (1,934,323) (985,617) Other (1,323,710) (623,250) (1,725,222) (927,395) (11,491,722) (7,081,426) (9,900,918) (5,195,474)
Page 34
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 31 NOTE 13 - EXPENSES BY NATURE Expenses are presented functionally for the periods ended 30 June 2026 and 2025, the details are given in Note 11 and Note 12. NOTE 14 - OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES a) Other income from operating activities 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Interest Income 226,939,020 110,295,188 214,840,199 48,125,991 Foreign exchange loss from operating activities 147,295,478 91,176,924 129,151,642 93,247,291 Other 12,487,417 12,225,517 8,122,945 7,616,937 386,721,915 213,697,629 352,114,786 148,990,219 b) Other expenses from operating activities 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Foreign exchange loss from operating activities (25,956,671) (1,136,909) (19,283,286) (1,382,746) Donation and grants (2,073,273) (262,382) (2,359,695) (644,076) Provision for lawsuit Expenses (371,778) (195,831) 211,137 212,858 (28,401,722) (1,595,122) (21,431,844) (1,813,964) NOTE 15 – FINANCE INCOME AND EXPENSES, NET 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Foreign exchange loss from bank borrowings (245,227,158) (143,934,207) (230,018,475) (114,529,231) Interest expense on bank borrowings (134,313,845) (60,547,972) (43,021,762) (5,754,802) Bank commission expenses (1,706,787) (789,046) (2,389,775) (1,104,739) Derivative transaction income / (expense) 5,732,412 3,845,379 56,859,817 33,714,886 Other (12,779,941) (4,211,163) (11,257,182) (5,638,099) (388,295,319) (205,637,009) (229,827,377) (93,311,985)
Page 35
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 32 NOTE 16 – EXPLANATIONS REGARDING NET MONETARY POSITION GAINS (LOSSES) Non-Monetary items 30 June 2026 30 June 2025 Statement of financial position items Inventories 393,003 (851,920) Prepaid expenses 14,532,855 (94,413,895) Investments valued by equity method, financial investments, subsidiaries 163,967 155,373 Goodwill 43,987,564 41,682,222 Property, Plant and Equipment 1,833,435,651 1,688,293,991 Intangibles 959,062,672 766,410,018 Right of use assets 135,106,960 81,999,209 Deferred tax assets (476,965,199) (397,548,169) Paid-in capital (964,651,268) (914,094,908) Legal reserves (105,413,199) (88,975,526) Share premiums/(discounts) (4,944,910) (4,685,752) Other comprehensive income (losses) that will not be reclassified in profit or loss 1,742,980 2,008,956 Retained earning (1,426,187,511) (1,284,251,420) Statement of profit or loss items Revenue (71,523,232) (68,373,328) Cost of sales 329,903,934 421,465,497 Marketing expenses 674,041 1,686,122 General administrative expense 6,352,690 5,443,541 Other income and expenses from operating activities 45,063 (1,158,367) Finance income/expense 2,762,305 (7,342,605) Monetary gain and/(loses) 278,478,366 147,449,039 NOTE 17 - TAXATION ON INCOME 30 June 2026 31 December 2025 Current income tax expense - 226,478,692 Less: Prepaid taxes - (218,326,241) Total tax (liabilities)/ asset - 8,152,451 The corporate tax rate is applied to the tax base found by adding expenses that are not deductible according to tax laws to the commercial income of the corporations, and deducting the exemptions (participation income exemptions) and discounts (such as R&D discounts) included in the tax laws. If the profit is not distributed, no other tax is paid. Companies calculate a provisional tax of 25% on their quarterly financial profits and declare it by the 14th day of the second month following that period and pay it by the evening of the 17th day. The provisional tax paid during the year is for that year and is offset from the corporate tax to be calculated on the corporate tax return to be submitted the following year. If there is a remaining amount of provisional tax paid despite the offset, this amount can be refunded in cash or offset against any other financial debt to the state.
Page 36
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 33 NOTE 17 - TAXATION ON INCOME (Continued) With the “Law on the Establishment of Additional Motor Vehicle Tax for Compensation of Economic Losses Caused by the Earthquakes Occurring on 6/2/2023 and Amendment of Certain Laws and Legislative Decree No. 375” published in the Official Gazette dated 15 July 2023 and numbered 32249, the provisional tax and corporate tax rate was increased to 25% (30% for Banks and Other Financial Institutions). It was decided that this rate would be applied to provisional and corporate tax declarations submitted after 1 October 2023 (2024: 25%). In the consolidated financial statements of the Group as of June 30, 2026, when calculating deferred tax assets and liabilities for its subsidiaries located in Turkey, the tax rate for the parts of the relevant temporary differences to be realized as of 2026 has been taken into account as 25%. There is no practice of reaching an agreement with the tax authority regarding the taxes to be paid in Turkey. Corporate tax returns are submitted to the affiliated tax office by the evening of the 25th day of the fourth month following the month in which the accounting period is closed. The authorities authorized to conduct tax audits may examine the accounting records within five years and if an erroneous transaction is detected, the amount of tax to be paid may change due to the tax assessment to be made. Under the provisional article added to the Tax Procedure Law by Law No. 7571 published in the Official Gazette dated 24 December 2025, it has been stipulated that, even if the conditions are met, no inflation adjustment based on the Consumer Price Index (C PI) shall be applied for the 2025, 2026 and 2027 accounting periods. Accordingly, inflation adjustments have not been applied in the statutory financial statements that form the basis for corporate tax returns for the mentioned periods. Deferred taxes The Group calculates deferred income tax assets and liabilities by taking into account the effects of temporary differences arising from different evaluations between the Turkish Financial Reporting Standards and tax financial statements of the financial p osition statement items. The temporary differences in question arise from the accounting of income and expenses in different reporting periods according to Turkish Financial Reporting Standards and tax laws and from the transferred financial loss. The rates to be applied for deferred tax assets and liabilities calculated according to the liability method on long-term temporary differences that will occur in future periods are the tax rates valid on the dates of the financial position statement and these rates are included in the table and explanations above.
Page 37
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 34 NOTE 17 - TAXATION ON INCOME (Continued) Deferred taxes (Continued) As of 2025, the inflation adjustment to be applied under the Tax Procedure Law has been postponed for the 2025, 2026 and 2027 accounting periods by Law No. 7571. In this context, the Group has revalued certain assets subject to depreciation in accordance with Article 298/C of the Tax Procedure Law for the relevant period; the increase in value has been recorded in the fund account in the legal records. This application is for tax purposes only and has no effect on the book values in the IFRS financial statements. The breakdown of accumulated temporary differences, deferred tax assets and liabilities as at 3 0 June 2026 and 31 December 2025, prepared using the applicable tax rates, is as follows.: Cumulative temporary differences Deferred tax assets / (liabilities) 30 June 2026 31 December 2025 30 June 2026 31 December 2025 Net differences between the tax base and carrying values of property, plant and equipment 13,383,827,136 12,354,645,399 (1,779,539,038) (3,088,661,350) Lease liabilities (196,875,588) (183,367,037) 24,609,448 45,841,759 Right of use asset 484,832,903 373,200,682 (60,604,113) (93,300,170) Derivative instrument 106,966,282 138,183,607 (13,370,785) (34,545,902) Exchange rate effects on monetary liabilities (6,300,663) (2,494,967) 787,583 623,742 Provision for employment (15,614,241) 1,951,780 termination benefits (12,499,051) 3,124,763 Exchange rate change effects on monetary assets 190,762 (1,623,745) (23,845) 405,936 Provision for lawsuit (717,242) (646,344) 89,655 161,586 Other (22,090,782) (15,021,286) 2,761,348 3,755,321 Deferred tax asset / (liabilities), net (1,823,337,967) (3,162,594,315) Conclusions of netting has been reflected to consolidated statement of financial position of Galata and its subsidiaries which are separate taxpayer companies, have booked their deferred tax assets and liabilities by netting in their financial statements t hat were prepared in accordance with the TAS. Temporary differences and deferred tax assets and liabilities shown above have been prepared based on gross values. Movements for net deferred taxes for the periods ended at 30 June 2026 and 2025 are as follows: Deferred tax liability 2026 2025 Opening balance as of 1 January (3,162,594,315) (2,781,798,062) Recognised under profit or loss statement 1,339,256,347 (177,145,382) Closing balance as of 30 June (1,823,337,968) (2,958,943,444)
Page 38
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 35 NOTE 17 - TAXATION ON INCOME (Continued) The taxes on income reflected in the statement of profit or loss for the periods ended 30 June 2026 and 2025 are summarized below: 1 January- 1 April- 1 January- 1 April- 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Income tax expense - 37,949,653 (104,147,221) (36,612,779) Deferred tax (expense)/income 1,339,256,347 1,477,629,279 (177,145,382) 9,401,938 Total tax expense 1,339,256,347 1,515,578,932 (281,292,603) (27,210,841) The reconciliation of the taxation on income in the statement of profit or loss for periods ended 30 June 2026 and 2025 and the tax calculated at the corporate tax rate based on the income before minority interests and taxation on income are as follows: 30 June 2026 30 June 2025 Profit before tax 438,362,201 826,056,061 Tax rate of 12.5% (30 June 2025: 25%) (109,590,550) (206,514,015) Exceptions and deductions 11,963,942 14,271,856 Effect of tax rate changes (**) 1,574,887,397 11,207,334 Non-deductible expenses (1,407,419) (3,618,386) Inflation accounting effects (*) (140,970,598) (94,024,771) Other 4,373,575 (2,614,621) Tax expense recognized in statement of profit or loss 1,339,256,347 (281,292,603) (*) It consists of the deferred tax effect of temporary differences resulting from the adjustments for inflation accounting, in accordance with the Communiqué No. 32415 (2nd iteration) of the Tax Procedure Act of December 30, 2023. (**) Pursuant to Law No. 7582 dated 4 June 2026, the corporate income tax rate applicable to profits earned by entities holding an industrial registry certificate and engaged in actual production activities effective from 1 January 2027 will be reduced from 25% to 12.5%. While this legal regulation does not affect the current period's tax liability, the deferred tax calculations included in the financial statements as of 30 June 2026 reflect the temporary difference based on the expected subsequent period tax rate. NOTE 18 - RELATED PARTY DISCLOSURES As of the date of consolidated statement of financial position, due from and to related parties and related party transactions for the periods ending 30 June 2026 and 31 December 2025 are disclosed below:
Page 39
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 36 NOTE 18 - RELATED PARTY DISCLOSURES (Continued) i) Related party balances 30 June 2026 31 December 2025 Receivable Payable Receivable Payable Current Short-term Current Current Short-term Current Related party balances Trade Other receivables Trade Trade Other receivables Trade Değer Merkezi Hizmetler ve Yönetim Danışmanlığı A.Ş. (1) - - 5,196,702 - - 7,207,167 Suzuki Motorlu Araçlar Pazarlama A.Ş. - - 32,522 - - - Otomobilite Motorlu Araçlar Ticaret A.Ş. - - 29,324 - - 7,815 Karel İletişim Hizmetleri A.Ş. - - 9,613 - - 8,707 Aslancık Elektrik Üretim A.Ş. - - 307,064 - - - - - 5,575,225 - - 7,223,689 (1) Financial, legal, information technology and other consultancy service purchases and overhead bills such as vehicle and office rent, cleaning, heating and building maintenance.
Page 40
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 37 NOTE 18 - RELATED PARTY DISCLOSURES (Continued) i) Related party balances (Continued) Short-term portions of long-term lease liabilities from related parties 30 June 2026 31 December 2025 Değer Merkezi Hizmetler ve Yönetim Danışmanlığı A.Ş. (*) 1,039,051 719,797 1,039,051 719,797 (*) Represents the lease liabilities recognised in accordance with TFRS 16 standard . Long-term lease liabilities to related parties: 30 June 2026 31 December 2025 Değer Merkezi Hizmetler ve Yönetim Danışmanlığı A.Ş. (*) 297,746 350,625 297,746 350,625 (*) Represents the lease liabilities recognised in accordance with TFRS 16 standard.
Page 41
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 38 NOTE 18 - RELATED PARTY DISCLOSURES (Continued) ii) Related party transactions 1 January – 30 June 2026 1 April – 30 June 2026 Purchases of Sales of Financial Purchases of Sales of Financial Transactions with related parties Goods and services Goods and services Expenses Goods and services Goods and services Expenses Değer Merkezi Hizmetler ve Yönetim Danışmanlığı A.Ş.(1) 22,259,886 - - 11,771,485 - - Falcon Purchasing Services Limited 4,997,935 - - 2,498,968 - - Otomobilite Motorlu Araçlar Ticaret A.Ş. 125,127 - - 118,979 - - Suzuki Motorlu Araçlar Pazarlama A.Ş. 28,553 - - 28,553 - - Other 141,754 (1,396,357) - 71,567 (1,389,332) - 27,553,255 (1,396,357) - 14,489,552 (1,389,332) - (1) Financial, legal, information technology and other consultancy service purchases and overhead bills such as vehicle and office rent, cleaning, heating and building maintenance. 1 January – 30 June 2025 1 April – 30 June 2025 Purchases of Sales of Financial Purchases of Sales of Financial Transactions with related parties Goods and services Goods and services Expenses Goods and services Goods and services Expenses Değer Merkezi Hizmetler ve Yönetim Danışmanlığı A.Ş.(1) 19,837,939 - - 10,286,910 - - Doğan Trend Otomotiv Ticaret Hizmetve Teknoloji A.Ş. 2,735,663 - - - - - Otomobilite Motorlu Araçlar Ticaret A.Ş. 191,274 - - 53,104 - - Suzuki Motorlu Araçlar Pazarlama A.Ş. 603,967 - - 208,103 - - D-Market Elektronik Hizm.Tic A.Ş. 159,562 - - 159,021 - - Other - (357,046) - (348,293) - 23,528,405 (357,046) - 10,707,138 (348,293) -
Page 42
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 39 NOTE 18 - RELATED PARTY DISCLOSURES (Continued) Benefits provided for the key management The key management team of the Group is made up of members of the Board of Directors, General Manager, and Deputy General Managers. Benefits provided for the key management team within the period are as follows: 1 January - 1 April- 1 January - 1 April- 30 June 2026 30 June 2026 30 June 2025 30 June 2025 ¤ Salaries and other short-term benefits 23,621,420 11,101,750 19,327,374 9,702,733 23,621,420 11,101,750 19,327,374 9,702,733 NOTE 19 - FINANCIAL INSTRUMENTS Financial investments Short-term financial investments Group’ financial assets of the classified under short-term financial investments are as follows: Assets recorded at fair value in Statement of profit and loss: 30 June 2026 31 December 2025 - Investment funds and other short-term financial investments 802,737,230 769,879,165 Total 802,737,230 769,879,165 Long-term financial investments 30 June 2026 31 December 2025 TRY % TRY % Enerji Piyasaları İşletme A.Ş. 1,608,975 <1 1,608,975 <1 1,608,975 1,608,975 NOTE 20 - EARNING/LOSS PER SHARE 1 January - 1 April - 1 January - 1 April - 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Net profit for the period attributable to equity holders of the Parent Company 1,777,618,548 1,601,958,102 544,763,458 357,410,467 Weighted average number of shares with face value of TRY 1 each 540,000,000 540,000,000 540,000,000 540,000,000 Earning per Share 3.292 2.967 1.009 0.662
Page 43
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 40 NOTE 21 – EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION Foreign currency risk The Group is exposed to foreign currency risk due to conversion of its foreign currency denominated liabilities to local currency. This risk monitored and limited by analyzing foreign currency position. The Group is exposed to foreign exchange risk arising primarily from the USD and EUR. 30 June 2026 31 December 2025 Foreign currency assets 338,613,120 1,349,386,475 Foreign currency liabilities (3,085,509,539) (3,764,588,513) (2,746,896,419) (2,415,202,038) Net foreign currency position The table below summarizes the foreign currency position risk of the Group as of 30 June 2026 and 31 December 2025. The carrying amounts of foreign currency assets and liabilities held by the Group in terms of foreign currencies (in terms of TRY) are as follows: 30 June 2026 TRY Equivalent (Functional currency) USD EUR 1. Trade receivables - - - 2a. Monetary financial assets 338,613,120 738,619 5,730,488 2b. Non-monetary financial assets - - - 3. Other - - - 4. Current assets (1+2+3) 338,613,120 738,619 5,730,488 5. Trade receivables - - - 6a. Monetary financial assets - - - 6b. Non-monetary financial assets - - - 7. Other - - - 8. Non-current assets (5+6+7) - - - 9. Total assets (4+8) 338,613,120 738,619 5,730,488 10. Trade payables 1,297,061 27,799 - 11. Financial liabilities 789,273,836 12,371,869 3,986,660 12a. Other monetary liabilities - - - 12b. Other non-monetary liabilities - - - 13. Short term liabilities (10+11+12) 790,570,897 12,399,668 3,986,660 14. Trade payables - - - 15. Monetary liabilities 2,294,938,642 36,625,000 11,019,971 16a. Other monetary liabilities - - - 16b. Other non-monetary liabilities - - - 17. Long term liabilities (14+15+16) 2,294,938,642 36,625,000 11,019,971 18. Total liabilities (13+17) 3,085,509,539 49,024,668 15,006,631 19. Foreign Currency Derivative Instruments Net Asset / (Liability) Position (19a-19b) - - - 19a. Effect of foreign currency denominated derivatives / Off-Balance Sheet (+) - - - 19b. Effect of foreign currency denominated derivatives / Off-Balance Sheet (-) - 20. Net foreign currency position (9-18+19) (2,746,896,419) (48,286,049) (9,276,143)
Page 44
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 41 NOTE 21 - EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION (Continued) Net foreign currency position (Continued) 31 December 2025 TRY Equivalent (Functional currency) USD EUR 1, Trade receivables - - - 2a. Monetary financial assets 1,349,386,475 20,239,426 6,272,780 2b. Non-monetary financial assets - - - 3. Other - - - 4. Current assets (1+2+3) 1,349,386,475 20,239,426 6,272,780 5. Trade receivables - - - 6a. Monetary financial assets - - - 6b. Non-monetary financial assets - - - 7. Other - - - 8. Non-current assets (5+6+7) - - - 9. Total assets (4+8) 1,349,386,475 20,239,426 6,272,780 10. Trade payables 23,377,059 477,410 - 11. Financial liabilities 831,475,851 12,402,721 3,448,363 12a. Other monetary liabilities - - - 12b. Other non-monetary liabilities - - - 13. Short term liabilities (10+11+12) 854,852,910 12,880,130 3,448,363 14. Trade payables - - - 15. Monetary liabilities 2,909,735,603 42,750,000 12,623,966 16a. Other monetary liabilities - - - 16b. Other non-monetary liabilities - - - 17. Long term liabilities (14+15+16) 2,909,735,603 42,750,000 12,623,966 18. Total liabilities (13+17) 3,764,588,513 55,630,130 16,072,329 19. Foreign Currency Derivative Instruments Net Asset / (Liability) Position (19a-19b) - - - 19a. Effect of foreign currency denominated derivatives / Off-Balance Sheet (+) - - - 19b. Effect of foreign currency denominated derivatives / Off-Balance Sheet (-) - - - 20. Net foreign currency position (9-18+19) (2,415,202,038) (35,390,704) (9,799,549) The effect of the Group's foreign currency positions in Euro and US Dollars on the net profit/loss and shareholders' equity for the period, assuming a 20% appreciation and depreciation of TRY against foreign currencies and all other variables constant, are stated below: 30 June 2026 31 December 2025 USD EURO USD EURO 20% Appreciation (450,591,883) (98,665,325) (132,349,202) (39,070,602) 20% Depreciation 450,591,883 98,665,325 132,349,202 39,070,602
Page 45
GALATA WIND ENERJİ ANONİM ŞİRKETİ NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2026 (Turkish Lira (“TRY”) stated as according to purchasing power of Turkish Lira at 30 June 2026.) 42 NOTE 22 - SUBSEQUENT EVENTS Under Law No. 7582, published in the Official Gazette on 4 June 2026, the corporate income tax rate applicable to income from production and agricultural activities has been set at 12.5%, effective from 1 January 2027. Since the relevant legislative amendment was not in effect as of the balance sheet date, it did not result in any change in the measurement of the Group’s deferred tax assets and liabilities included in the statement of financial position as of 31 December 2025. However, anticipating the effe cts of the new rate on temporary differences that will reverse after the effective date and on carried -forward tax losses, the Group’s management is evaluating the potential impacts on future financial statements.