Kardemir Analyst Meeting Notes

• In line with global developments and rapid increases in commodity prices, high increases are seen in product prices. This trend may continue in the short term, however there is a risk of a partial correction in the next period.

• Kardemir produces 64% of its electricity needs largely by using blast furnace gas and steam gas, which impacts the margins positively due to the cost advantage.

• Despite the fact that coal is imported to a large extent from Russia and Ukraine and the high increase in coal prices, Kardemir stated that it has coal inventory until the beginning of August. The Company is also negotiating with different suppliers against the risk of raw material shortages.

• Kardemir stated that it can meet some of the excess demand of iron-steel (billet) arising from the situation in Ukraine. In addition, in the meeting held with the Ministry of Commerce, the goal of closing the gap that may occur in case of an interruption of exports of Russia, which is a larger player in the iron and steel sector, was also evaluated.

• The Company's planned maintenance works continue within the scope of the current program. Due to the crack in the furnace no. 4, which was put into maintenance last year, the furnace can be taken into maintenance in the June-July period. Accordingly, it seems likely that the annual production target will be decreased from 2.4-2.5 million tons to 2.35-2.4 million tons.

Despite the increase in raw material costs, we estimate that high profitability may be maintained due to strong demand and attractive pricing environment. Considering the Company's transition from a net debt to a net cash position last year and its dividend decision, we maintain our fundamentally positive view.