Penalty for Koç Holding subsidiary

Otokar, one of Koç Holding's prominent companies in the automotive sector, had drawn attention in recent years with its new facility established in Romania as part of its expansion into the European market. The process regarding the agreement for the production of 1,059 4x4 armored tactical wheeled vehicles (TTZA) to be delivered to the Romanian Armed Forces has been brought to the public agenda through official statements.

In accordance with the contract previously signed with the Romanian government, it was stated that 278 vehicles would be produced in Turkey in the first phase of the agreement, while the remaining vehicles would roll off the production lines at the factory in Romania. However, it was alleged that the schedule determined in the contract terms was not met due to delays that occurred during deliveries, and compensation was demanded from Otokar by Romtehnica, the company responsible for Romania's military procurement.

In a statement made by the company to the Public Disclosure Platform (KAP), it was stated that a penalty of approximately 1 billion 880 million TL, equivalent to a total of 191 million 847 thousand 899.70 Romanian Leu, was imposed. It was noted that this amount has been paid as of today, but that an application has been made to the court for the cancellation of the penalty within the scope of legal processes.

Additionally, it was reported that there were delays in the first batch distribution of the 194 vehicles completed and delivered to date, and as a result, additional compensation worth 7 million 295 thousand 974.66 Romanian Leu (approximately 72 million TL) was demanded by Romtehnica. It was stated that this payment would also be made within January, with legal rights reserved.

The statement included the following remarks:

"It is anticipated that the relevant amounts will be cleared and expensed through deduction from our company's progress payments within the scope of the contract for the year 2025. While there is a possibility that the delays and disputes currently being experienced could negatively affect the continuation of the project and lead to additional compensation claims, efforts are ongoing to resolve the disputes and continue the fulfillment of our contractual obligations.

Considering that the public disclosure of the matters specified in the payment requests received from Romtehnica on 17.12.2025 and 24.12.2025 could harm our company's legitimate interests in the negotiations to be conducted between the parties, and that the disclosure of conditions that may change depending on the outcome of the negotiations between the parties could mislead investors, it was decided to postpone the disclosure until the completion of the negotiation process within the framework of the Capital Markets Board's Communiqué on Material Events. As confidentiality can no longer be maintained at this stage, this statement is being made due to the disappearance of the conditions for postponement. Significant developments regarding the process will be disclosed to the public."