Dividend Policy

The Dividend Policy is determined by considering the mid-and long-term strategies, investment, and financial plans of ŞOK Marketler. The Company intends to distribute at least 30% of the Company’s distributable net profit for the period as cash dividends, for each accounting year starting from the earnings in the year 2018, upon the recommendation of the Board and subject to the approval of the General Assembly, any relevant amendments that might be undertaken, and the applicable law in Turkey, provided that the Company’s cash flow requirements are considered.

The dividend policy will be subject to the Company’s cash projections, future expectations on operations, investment plans, and conditions in the capital markets. Additionally, this policy shall be reviewed annually by the Board of Directors in the event of any negative situations regarding national and global economic conditions, and according to the current projects and Company’s financial resources. If an amendment to the Dividend Policy is requested, the Board of Directors decision for such change, along with the justification thereof, is announced to the public in line with the CMB regulations regarding the disclosure of material events.

Equal payment of dividends is aimed to be completed within a maximum of 30 days, following approval by the General Assembly of the dividend decision, regardless of all of the existing dividends, the issue, and acquisition date thereof, while the distribution date is determined by the General Assembly. Dividends may be distributed as lump sums or in installments.

Unless reserves required to be reserved by law, and dividends for shareholders as determined in the Articles of Association, are reserved, further reserves may not be reserved; profits may not be transferred to the following year and dividends may not be distributed to the Members of the Board and partnership employees, and no profit distribution may be made to such persons unless the determined amount of dividends is paid.

The General Assembly may transfer the net profit, either partially or wholly, to the extraordinary reserves, provided that the reserves required by law and dividends for shareholders as determined in the Articles of Association are reserved. If the Board of Directors proposes to the General Assembly that dividends are not distributed, shareholders are informed of the basis for this proposal, as well as of the use of non-distributed dividends, at the Ordinary General Assembly Meeting.

The Company’s Articles of Association include a provision on the advance dividend distribution while it is possible to distribute advance dividends, provided the procedures and rules stipulated in the principles and procedures set forth in the provisions of applicable regulations are observed.