Thank you. Good morning and good afternoon, ladies and gentlemen.

Welcome to our full year 2025 financial results webcast. This presentation contains the company's financial information prepared according to TFRS, the application of IAS 29 inflation accounting provisions.

Here are the highlights of the year 2025: We generated 523.9 billion Turkish lira in revenues, reflecting a 6.6% real year-on-year decline. Nevertheless, we delivered a significant improvement in profitability through active execution, resulting in a 1.2 percentage point year-on-year improvement in gross margin and a 2.2 percentage point improvement in Q4 compared to the same quarter last year.

The EBITDA margin increased by 0.3 percentage points year-on-year, while the improvement exceeded 2.7 percentage points in the last quarter. 5.7 billion Turkish lira free cash flow was generated on the back of improving operational performance, combined with strict working capital management.

This represents a remarkable recovery compared to last year's negative figure of approximately 11.4 billion Turkish lira. We also completed most of the post-merger integration across our European operations in 2025.

The closure of dryer and cooking plants in Łódź and a refrigerator factory in Wrocław, Poland, as well as the Siena refrigeration factory in Italy at year-end, in line with the initial business plan as part of our restructuring initiatives. Even in such a transition year, we managed to sustain our leadership in the European MDA market.

Despite market headwinds and cash outflows related to restructuring efforts, major progress was made in balance sheet optimization. We delivered significant deleveraging on the back of strong free cash flow generation.

At the year-end, net leverage ratio of 3.74 times, we remained in compliance with our covenants. In 2025, our consolidated revenues declined by 6.6% year-on-year in real terms, mainly driven by unfavorable pricing, product mix in Türkiye, weak international demand, and intensified competition in Europe.

Our gross profit margin was 28.8%, reflecting a 1.2 percentage point year-on-year improvement, driven by lower raw material costs and favorable euro-dollar parity, amid pricing pressures across key markets. Higher gross profitability and savings from restructuring efforts helped achieve a 0.6 percentage point improvement in adjusted EBITDA margin, despite wage inflation pressure, which increased OPEX as a percentage of sales due to lower revenue levels.

Here you may see our revenue bridge, both for the final quarter and the full year on the left-hand side. In the last quarter, figures in euro terms reflect a 2.5% year-on-year decline.

This was driven by a slowdown in international sales, which declined by 13.3% year-on-year, mainly due to volume contraction. Revenues remained flat in Türkiye over the same period.

In real Turkish lira terms, international sales declined by 15.5%, while sales in Türkiye recorded 0.9% growth. However, the full-year comparison indicates better consolidated sales performance, with a 0.4% growth in euro terms, supported by the inorganic contribution of Whirlpool legacy entities in the first quarter.

International sales remained flat in euro terms, while Türkiye recorded 1.3% sales growth year-on-year. Pricing remained a headwind across international markets and in Türkiye, while volume decline was the main challenge throughout the year in international markets.

On the right-hand side, our regional sales breakdown is presented. Türkiye's share of total revenues stood at 32% in 2025, unchanged year-on-year.

Europe's contribution remained slightly below half of consolidated revenues, in line with last year. Western Europe's share increased by 1 percentage point to 35%, while the share of the CIS and Eastern Europe declined by 2 percentage points to 13%.

Representing 10% of consolidated revenues, the APAC region's share decreased by 1 percentage point, while the Africa and Middle East region continued to increase its contribution to 8% of consolidated revenues. Diversified revenue streams reduced dependence on any single macroeconomic cycle, while access to high-return pockets such as Africa, MENA, and South Asia, as well as after-sales and consumer-facing operations.

In addition, we're implementing a segmented and brand strategy to address a broader market and strengthen our market position with differentiated products, with each brand playing a distinctive role in portfolio growth. You may see the trend in sales volumes across the main product categories compared to market figures on the left-hand side.

In Türkiye, demand in the MDA 6 market was under pressure, particularly in the first half of the year, while modest demand was supported by discounts and sales promotions throughout the year. Despite a 3% decline in sales volume in the MDA 6 market in 2025, we managed to keep our sales volumes flat year-on-year, thereby outperforming the market.

Despite strong volume growth in the last quarter, real growth remained limited, reflecting approximately 1% real revenue growth amid unfavorable price and product mix. As a result, full-year figures marked a 6.6% real decline in 2025.

Please note that scope of market data for the AC and TV segments was revised starting in July to include sales from discount retailers and supermarket chains. Following the scope change, our performance in the AC category reflects significant growth.

Competition remained intense in the AC segment, with 45 brands in IAC, some of which attract price-conscious consumers. We closed the year with record market share in 2025 in Türkiye.

With a strong start to 2026, we expect to outperform the market this year as well, especially when it comes to dryers, air conditioners, and cooling products. In Europe, recovery in MDA demand slowed in 2025, with limited volume increases and no growth in euro terms due to pricing pressure stemming from intense competition.

In Western Europe, recovery continued in some key markets such as the UK, Italy, Spain, Netherlands, and Belgium, whereas there was contraction in demand in France, Germany, and Austria. Overall market growth in Western Europe for MDA 6 stood at 1.6% in the first 11 months of 2025.

We preserved its market leadership and stabilized the loss of market share in the final months of the year. Meanwhile, demand in Eastern European markets remained relatively strong over the same period.

However, growth pace decelerated in some key markets such as Romania and Ukraine, compared to growth of over 10% in 2024. Romania recorded modest volume growth, while robust recovery continued in Ukraine.

Similarly, growth in euro terms remained limited. Overall, 49% of consolidated revenues were generated in Europe, with flattish revenues in euro terms, including the inorganic contribution of the Europe transaction.

Following the progress in ramp-up of new product launches, Europe's second-half market share gains signal a renewed growth path. Increasing share of higher gross margin new product launches has been supportive of margin generation and market share gains, particularly in major countries and key core categories.

We will continue to focus on optimized marketing and media investments to drive the success of new products and enhance brand appeal. In particular, Whirlpool and Bauknecht brands will be elevated through new [fit-feel?]

and niche fascia investments. Revenues generated in the Africa and Middle East region constituted 8% of consolidated revenues in 2025.

Revenues in euro terms grew by almost 10% year-on-year, driven by robust growth in the Africa region. Defy's sales volume growth exceeded 10% in 2025, with nearly 15% growth in the last quarter.

Growth in euro terms remained below 7% year-on-year, due to price decreases across major categories. Demand in South Africa was steady in the last quarter, while growth in export markets outpaced local markets.

Defy succeeded in maintaining stable pricing and sustained solid market leadership. In the Middle East, Arçelik Hitachi JV delivered 7% growth in dollar terms amid persistent geopolitical instability, supported by channel expansion and effective sales promotions.

Operating in one of the key markets of the region, Beko Egypt increased sales volume by over 13% in 2025, resulting in a 9% year-on-year increase in sales revenues in dollar terms. Achieved multi-brand growth through Whirlpool legacy brands and Hitachi, supporting market growth in the MENA region.

The increasing contribution of the Egypt factory further supported performance in this region. Representing 10% of consolidated revenues, the APAC region continued to face a prolonged economic slowdown, driven by a rise in cost of living and political instability.

Sales revenues in the region declined by over 5% year-on-year in euro terms. Substantial growth in Taiwan, Pakistan, and Bangladesh limited the decline resulting from the sharp slowdown in China and weak demand in key markets such as Thailand, Japan, Indonesia, Malaysia, and Singapore.

In Pakistan, Dawlance sales volume growth exceeded 10%, resulting in euro-denominated revenue growth of over 8% year-on-year, marking another successful year. In Bangladesh, Singer's net sales increased by over 3% in euro terms, supported by significant volume growth across major product categories despite the economic slowdown and political challenges.

Driven by factors such as weak global demand, slowing growth, and ample capacity, average raw material prices declined significantly year-on-year. On the metal side, market prices were slightly higher in the last quarter.

Thanks to contracts with favorable pricing, no major impact is anticipated in the first half from rising metal prices. However, average metal raw material costs are projected to increase slightly year-on-year in 2026.

On the plastics side, market prices were substantially lower both year-on-year and quarter-on-quarter. We expect favorable cost conditions in the first half.

However, a slight increase is anticipated in the second half, with prices remaining broadly flat on average in 2026. We are expanding our outsourcing activities to support competitiveness and reducing cost base to the maximum extent.

With that, I pass on to Mine Hanım to cover the summary financials.

Thank you, Barış Bey. Here is a summary of our 2025 full-year financial results as per inflation accounting, both in yearly and quarterly comparison.

We recorded 523.9 billion Turkish lira consolidated revenues, reflecting an approximately 7% real decline for the full year and a 1% year-on-year decline in the last quarter. Gross profitability improved by 125 basis points year-on-year and by 215 basis points in Q4 compared to the same period of last year.

Operating expenses remained flat in real terms in 2025 due to wage inflation pressure. However, Q4 reflects a 32 basis points improvement compared to the same period of last year, driven by the lagging impact of deceleration of inflation.

Further positive impact is expected to become visible in the upcoming quarters. Other income from operating activities made a positive contribution of over 1 billion Turkish lira to the bottom line, mainly driven by an approximately 3 billion Turkish lira provision reversal following changes to the initial redundancy plan.

Net financial expenses decreased significantly in the final quarter, resulting in a 27% decline for the full year and a 56% year-on-year decrease in the same quarter. This improvement was driven by decline in Turkish lira interest rates, higher interest income from increased Turkish lira cash deposit, change in our net FX position that reduced hedging needs, and the expansion of our hedging policy to include subsidiaries.

Overall, we booked net financial expenses of approximately 27.6 billion Turkish lira in 2025. Our net monetary position decreased by 28% year-on-year to 15 billion Turkish lira.

Consequently, we recorded 4.7 billion Turkish lira loss before tax and 9.8 billion Turkish lira net loss before minority interest for the full year, corresponding to -1.9% net margin in 2025. Finally, with a margin of 5.9%, we recorded adjusted EBITDA of 30.7 billion Turkish lira for the year, reflecting a substantial year-on-year improvement.

Please note that one-off restructuring expenses related to restart activities are excluded. The EBITDA adjustment amounted to 439 million Turkish lira in 2025 and 196 million Turkish lira in Q4.

Including the adjustment for inventory-related monetary gains and net monetary position attributable to income and expense items optimizing EBITDA, our EBITDA margin stands at 7.1% in 2025. Also note that, following completion of PPA, Q4 2024 figures have been restated under IFRS 3, with bargain purchase gain allocated back to Q2 2024 and only transaction costs remaining in Q4 2024.

As of December-end, our adjusted leverage stood at 3.74 times, marking a substantial improvement compared to the peak level of 4.5 times recorded in the first half. Deleveraging accelerated on the back of EBITDA recovery and robust free cash flow generation, while disciplined debt management reduced net debt to €2.8 billion.

As usual, we utilized receivables factoring and early collection tools at year-end. The amount of factoring and early collections stood at €723 million and €87 million, respectively, in the last quarter, defining a €193 million increase in total compared to Q3.

As consistently communicated, we delivered deleveraging and closed the year comfortably below the covenant level of 3.8 times. You may find the details of our debt structure breakdown and the effective interest rates of our loan and bond portfolio in the right-hand part.

Total borrowings amounted to 235.9 billion Turkish lira, with an average maturity of 1.2 years. Our average effective funding rate, including loans and bonds, were 43.8% for Turkish lira, 4.5% for euro, and 8.5% for dollars.

On the bottom left-hand side, we may see our cash currency breakdown, totaling 97.9 billion Turkish lira, with well-diversified cash holdings across currencies: 41% of our total cash is denominated in euro, 7% in dollars, and 31% in Turkish lira. Euro-denominated borrowings constituted 55% of our total borrowings, while US dollar- and Turkish lira-denominated borrowings account for 15% and 20%, respectively.

In terms of debt maturity profile, long-term borrowings account for 37% of total borrowings, reflecting the upcoming maturity of the €350 million green bond in May and the tactical preference for shorter-term instruments amid expectations of further policy rate cuts. We have €3 million euro equivalent liquidity coming on stream.

Following the redemption of the green bond and the utilization of additional facilities, we expect the maturity profile to normalize to approximately 55% to 45% split between short- and long-term debt. Excluding the notional cash pool and company credit card balances, the share of long-term borrowings would increase to around 55%.

We're actively working on additional long-term facilities to further extend the maturity profile by year-end. At the upper left corner, you may find our adjusted EBITDA margin bridge.

Higher gross margin and increased depreciation impact after transactions are the main drivers behind 0.2 percentage point recovery in the margin, whereas higher operating expenses had a negative impact amid wage inflation pressure. At the upper right corner, you may see our net working capital to sales ratio.

As of year-end, the net working capital to sales ratio was 21.8%, slightly above the level in 2024. At the lower left corner, you can see our CAPEX to sales ratio, at 2.4%, including capitalized amortization expenses, reflecting a significant decrease year-on-year, thanks to tight control on capital expenditure.

Finally, at the lower right corner, you may see our free cash flow figures. Robust cash generation from operations in the second half and reversal of working capital seasonality, our free cash flow at the year-end was 5.7 billion Turkish lira, outperforming our prior neutral cash flow expectations for the year-end.

Here you may see our guidance and actual figures for 2025. Against backdrop of weak demand in the final quarter, revenues came below guidance, while the adjusted EBITDA margin slightly missed the low end of the guided range.

We met our year-end guidance for the net working capital to sales ratio, closing at 21.8%. CAPEX came in at around €205 million, well below the guided levels, reflecting strict capital expenditure discipline.

I leave the floor to Barış Bey to walk us through our guidance for 2026. Thank you.

Ongoing global economic uncertainty and a weak demand environment continue to weigh on global growth expectations, with projections for 2026 remaining below the 2025 level. That said, macroeconomic expectations revised over the course of the year point to more moderate and gradual normalization.

According to OECD estimates, global growth is expected to reach 3.2% in 2025, ease to 2.9% in 2026, and reaccelerate to 3.1% in 2027, indicating that global growth momentum, while softer, remains intact. In Europe, overall growth expectations remain broadly in line with 2025 levels.

However, the outlook for Germany and France, both countries are expected to see only modest GDP growth at best, has turned more constructive. This improvement is expected to support consumer confidence, particularly through the release of pent-up demand in these markets.

That backdrop provides supportive conditions for our international revenue outlook. In addition, a potential Russia-Ukraine ceasefire scenario could represent a significant upside to the European outlook.

In Türkiye, macroeconomic conditions remain challenging as consumer demand continues to face pressure, while signs of a meaningful recovery remain gradual. As such, a broadly flat volume performance in MDA appears to be a reasonable base case scenario.

Nevertheless, should policy rate cuts continue throughout the year and more supportive demand environment could emerge, particularly in the second half, presenting future upside potential. These factors will serve as catalysts for a potential upward revision to expectations over the course of the year.

Against this backdrop, for the year ahead, we are guiding for broadly flat real revenue growth performance in Türkiye, reflecting the continued pressure on consumer demand. For our international operations, we expect low single-digit growth in revenues on euro basis, supported by the gradual normalization in European markets.

We are guiding for an adjusted EBITDA margin in the range of 6.0% to 6.5%, underpinned by disciplined cost management and operational efficiency initiatives. We expect the net working capital to sales ratio to be maintained at around 22%, reflecting continued focus on working capital discipline.

Capital expenditures are guided at approximately €250 million, in line with our prudent capital allocation framework. With that, we can proceed to the Q&A session.

Thank you for the presentation. My first question is about the revenue drivers.

I see that in fourth quarter, you had volume growth, but you didn't have much real growth. Could you elaborate on China and European platforms?

You just tried to increase volume for and a tick pass for some commodity should be with that way. For this year, when you expect a flattish, you mean in real.

Try to expect a volume increase or price increase in 2026? What are the indications in early January, at least in the first month of the year?

Regarding the international side, again, when do you think we will see some recovery considering the seasonality in your international operations? Fourth quarter was weak, and that was possibly the reason behind deviation.

What should be happened ahead for you to become more optimistic? Or being 3% to 5% growth, as you mentioned, for low single-digit growth, is it a ambitious, or it's a reasonable growth for you?

What about your leverage going forward? That's my questions, and thank you.

Thank you. Starting with the first one.

As Q4, especially in Europe, is a high-demand period, Black Friday, etc. There is a pressure on pricing, it was mainly characterized by volume growth.

This is mainly the characteristics of the quarter as well. We didn't do anything special.

As this is the period where you're cleaning up your inventories and getting prepared for the next season. The strongest season is usually the transition between Q3 and Q4, which we enjoyed increased both in volume and pricing.

Especially in Europe, the last quarter, over like the last couple of months of the year, we observed a flattening of the pressure that is coming from Chinese, and us gaining significant market share in some key markets. The market share loss that was experienced during the year, especially in the first half, was quenched to some extent over the last couple of months of 2025, which is encouraging.

As usually I'm usually alluding to this new product introductions, etc., which is added the essence and the main source of cost synergies in Europe due to the plant relocations, etc. The new products have arrived the market, and we are benefiting one by one, gradually from this initiative.

For your second question, in 2026 in Türkiye, yes, we guided real growth as the guidance relatively flat. Pricing growth in line with inflation.

Having said that, we are especially optimistic for the second half of the year. As the interest rate decline cycle is continued in Türkiye.

In 2025, there was a one-off incident happened in back in March, which derailed the whole process a little bit. Barring such an incident, in 2026, we expect at least a better season over the second half.

In Europe, there is a carryover that is coming from new product introductions especially that would boost the volume, but we also expect uplift in pricing, as due to brand segmentation that we do especially on the Whirlpool brand and all the marketing investments. We aim to enhance and increase the marketing spend, especially through sales in Europe for this year to boost the sales in the newly introduced products.

It's it'll be driven both volume and pricing in Europe. For the remaining markets, as we have young plants that are in ramp-up period, such as Egypt and Bangladesh.

We are quite profitable in all these markets, including Pakistan, Bangladesh, and Africa, etc. Their high growth and profitability emanating from our market-leading positions are expected to continue in these markets.

January started. January is a relatively weak month seasonally.

Having said that, we started in line with our budgets, especially in key categories, both in Türkiye and in Europe. It provides us with a clear silver lining for the rest of the year.

It's too early to make a call, given the quasi-holiday period, especially at the beginning of January in Europe, as you well know. The last question: the growth rates that we provided is more on the conservative side for Türkiye, whereas it's more of a base case in Europe.

Yes, we expect single-digit growth, and we definitely expect a recovery in consumer sentiment because it has been like almost three years now since the consumer discretionary industry demand in Europe has stalled. We see early signs, especially in some key markets and in Continental Europe as well.

Some markets like Northern Europe and Iberia, etc., they will recover further more, but especially in the UK and France, Nordics, and Eastern Europe, we see encouraging signs, including us starting to gain market share. Thank you.

Barış Bey, regarding your leverage, we see some decline in the fourth quarter. It's the fourth quarter 517 to 450, based on your calculations before the NPL adjustment.

Did we see any impact of this share sale to Koç Group, the Arçelik share? Was it resolved in this quarter?

I don't remember for now. Maybe you mentioned during the presentation.

May you further give some color on that side? What was the reason for this decline?

Share sale had some effect in this quarter? What should be expected for the following year, based on the assumptions you have, your guidance for the EBITDA guidance, working capital guidance, and the revenue guidance?

Where should we be going forward?

Sure. Starting with the reasoning or rationale behind the decline: as I explained in our webcast throughout the entire year, especially the last quarter of the year is where our collections and/or factoring opportunities on the back of increased receivables over Q3 and Q4 increases.

It has happened exactly as we predicted. There is a massive inventory clean up and inventory reduction, especially on the finished goods inventory side, in line with our targets throughout the year.

We started the year with a high plant utilization. As the first half of the year is usually the preparation period for cooling and air conditioning, etc., where historically and seasonally our leverage increases.

In the second half, especially in Türkiye and in Europe as well, we usually experience all the sales and collections towards the end of the year. As we have increased our factoring opportunities as well towards the year-end, which is quite a credit to our financials.

On the payables side, we have started with many initiatives such as extending further to China and utilizing the financial instruments, low-cost financing instruments that was granted out of China to extend our payable days. That has significantly enhanced our trade payable days in that respect.

On the inventory side, just to call a few numbers, the levels at the outset of the year were around €2.2 billion, which declined to around €1.8 billion towards the year-end. On net working capital, we really succeeded in line with our targets.

Of course, EBITDA, as you well know, is coming on a trailing basis, on the back of high-profitability months such as September, November, etc., the trailing EBITDA, 12-month EBITDA has also increased gradually, and we finished the full year as we anticipated. As we said, we managed to remain in line with our covenants towards the year-end, and as far as the relationship or discussion with the financial institutions are concerned, we've managed to be in line with our covenants and/or get relevant waivers, etc.

There is no issue on the leverage side whatsoever as we finished the year. Coming back to your question: yes, we concluded this transaction just before the year-end, which is around 5 billion Turkish lira and €100 million, which also contributed to the decrease in leverage with that amount.

Thank you, Barış Bey.

Thank you.

Thank you very much, Barış Bey. I just want to ask a question regarding China procurement.

What is the total share of China in your overall procurement, and what is your target here? Do you increase the procurement from China, do you expect to be more competitive against Chinese players in Europe?

This is for a more stable market share in Europe. The second question is about raw material potential inflation in 2026.

You have high exposure on raw materials. Rising raw material costs in the second half of the year, is there an alternate way to increase efficiency without price hikes on metal prices, copper or aluminium?

What is going to drive your business expectations?

Thank you. On the China procurement, as in general, including everything, is around 25% to 30%, whereas we aim towards 35% in the following years.

Having said that, we always sourced from China, but the way we utilize these financing instruments, low-cost financing instruments is expanded significantly. We rerouted some of the key outsourcing and/or raw material procurement activities towards these financing instruments, which provides around, let's say, 10 to 12 days increase for a full year in trade payables days.

Of course, there are some other compensating impacts, but we see visible improvements in trade payable days coming out of this China procurement initiatives. On the European side, yes, we have started to see some activity in growth, especially in some key regions.

More importantly, as I also noted during our face-to-face discussions, we saw encouraging signs in market share gains. As the whole year was characterized by market share loss for main markets for us, which we started to quench back in the key categories towards the year-end.

We see that this trend is continuing as we enter the year, and the whole aim is to build up on momentum as we progress throughout the year. Drivers on the margins and especially on the raw materials side: for the first quarter and the second quarter, almost the first half, we expect to benefit from the locked-in prices of last year.

As we have around six-month duration or six- to 12-month duration for metal and plastics procurement in particular. However, as we see starting in the first quarters of the year, we see some increases in the commodity prices in metal categories like copper or aluminum.

In that respect, the jury is out whether they will be persistent or not. Honestly speaking, it is also the flip side of the coin where it also applies to competition in the sense that it will probably have an increasing impact on the pricing as well.

If commodity prices continue to remain high, the first half is largely protected. You've already locked the contracts.

As the second half, we have to see how much pricing pressure we'll get or how much raw material increase will be reflected to pricing. As pricing power is not the only source of us negating the negative impacts of raw material price increases.

We have our material improvement projects, where we are always working towards engineering and design studies to lower our production costs in that respect. As we always target somewhere around 7% to 12% improvement in material costs throughout a given year, irrespective of the level of the commodity prices and magnitude of commodity price increases.

Yeah. Thank you very much, Barış Bey.

Just to add before I forget, of course, synergies will continue in 2026, maybe not at the same level of 2025, but there is carryover that will come out of 2025, as well as new initiatives that are coming out of the recent closure of Siena and optimization initiatives in additional Italian plants such as Comunanza and Cassinetta. As Siena was closed at the year-end, and the benefits will accrue, and that includes the white-collar workers that is related to the social plan agreement that we did with the government.

Given they were concluded at the very end of the year, the benefits will accrue in 2026, especially in the first quarter. These are mainly the drivers of the margins in 2026.

Alright, thank you very much. Very clear.

China procurement, I think it's quite interesting. When you increase the share of China, you target low-cost financing right now.

You can't extend trade payable days for all trade, for 15 tons. In the meantime, I think it is also possible for driving your gross margins, right?

Absolutely. It could lower our unit procurement costs, as well as lower financing costs or increase the cash flow via extending the

trade payable

days.

What could be the goal of overall China procurement? What percentage of global capacity [unclear]?

No, I think it all depends on of course, there are some, let's say, constraints around your insurance limits or your financing lines, etc. It's of course not the only source that we will go for, but we will try to extend it as much as possible to the extent we're able to extend the payable days and benefit from the low-cost funding alternative.

These are the main drivers of the China procurement initiatives.

Alright. Thank you very clear.

The

Yes, hello, good evening. Thank you for the presentation.

I have just a few questions. For my first one, during the presentation you mentioned 7.1% EBITDA margin, but I couldn't hear properly.

Was it the margin excluding IAS 29 impact altogether, or is it adjusted for one-offs, and the metrics you use for leverage calculations? My second question is about labor costs.

Obviously, we have seen about potential strikes and disruptions on that front, would be great if you could provide more color on the labor cost side. What do you expect this year in Europe?

Thank you.

Thank you. Yes, 7.1% is adjusted for inventories and in line with inflation accounting, and the leverage metric is adjusted as well, which is aligned with the financial institutions in terms of calculation and calculation methodology.

On the labor cost side, we do not expect something that is much higher than the 2025. As we have a factory labor agreement, but in our budgets and/or guidance numbers, these are all bought into our expectations, including the pricing expectations that we are providing.

We do not expect something on the outlier side on the labor cost, but they remain relatively elevated in euro terms as compared to historical numbers of Türkiye, but it's also, as related to the depreciation of Turkish lira. Any depreciation that is slightly above inflation will bring them down, enhancing the competitiveness of Turkish manufacturing companies.

Sure, and maybe one last follow-up in terms of seasonality of your margins. I can see that in 2025, Q3 was by far the strongest in terms of margins, whereas there was a decline in Q4.

Should we expect a similar dynamic throughout 2026 in terms of quarterly volatility of margin?

Yes, it will be similar, given there is no change in the underlying seasonality dynamics of the business and the regional and product mix that we have.

Thank you. You're

welcome.

Thank you very much for attending our conference. We hope to see you in the following conferences.

Have a great year ahead.