Risk Management Policy

Corporate Risk Management: Risk map and risk management policies are created in order to systematically and comprehensively identify, evaluate, control, monitor, identify those responsible and create action plans to reduce the effects of risks and opportunities that may affect the assets, reputation and profitability of the Company.

These policies include guidance on the principles of support and positioning, risk identification, prioritization, improvement, reporting, monitoring/oversight and risk communication in order to manage risks at the highest standard within the company.

Risks are monitored and managed in accordance with the regulations and guidelines for the development of critical risk protection methods in order to measure the risks exposed to the Company and to keep them within the predicted risk tolerances.

Purpose: These policies are support and positioning in order to manage risks at the highest standard within the company, early detection of risks that may jeopardize the existence, development and continuation of the Company, implementation of necessary measures related to the identified risks and management of risk.

Risks That May Be Encountered

Interest Risk

As a result of changes in Interest Risk Interest rates, an increase in the Company's financing expenses may occur. The Company manages interest risk by creating a portfolio of financial assets and liabilities with a balanced interest structure.

In order to manage the interest risks that our company is exposed to, the stoppage is calculated based on the loan portfolio and cash flow projections and the gains/losses to be experienced in possible interest changes are measured by sensitivity analysis.

Market / Price Risks

The company is exposed to price change risks due to the fluctuations in raw material and exchange rate prices, which are the production inputs due to the sector in which it operates, the fluctuations in the product price, which is the production output, and the fact that it operates in the production of products that should be subject to rapid consumption in the retail sector.

Exchange Rate Risk

In sales, collection and payment transactions (credit repayments, supplier payments, energy payments, other payments, etc.) carried out by the Company, it is exposed to exchange rate risk if they are made with currencies other than functional currency.

The basic approach of the Company in exchange rate risk management is to manage the exchange rate risk arising from the related transactions through derivative transactions with the help of appropriate financial instruments in transactions carried out outside the functional currency.

Liquidity Risks

In order to increase its efficiency, our company makes high-cost investments to increase capacity in order to incorporate constantly developing production technologies and to meet the increasing demand. While some of these investment costs are covered by sales revenues, some of them are provided by financial markets. In the absence of proper planning, financial obligations may not be met in a timely manner, adequately and cost-effectively. For this reason, the company manages its liquidity needs by monitoring loan use and repayments and cash flow projections.

The company has established a liquidity risk management structure suitable for short, medium and long-term funding and liquidity requirements. The Company manages liquidity risk by regularly monitoring estimated and actual cash flows and ensuring the continuation of adequate funds and borrowing reserves through matching maturities of financial assets and liabilities.