Doğuş Holding Anonim Şirketi and its Subsidiaries

Doğuş Holding Anonim Şirketi and its Subsidiaries Consolidated Financial Statements As at and for the Year Ended 31 December 2015 With Independent Auditor s Report 31 March 2016 This report includes 2 pages of independent auditor s report and 135 pages of consolidated financial statements together with their explanatory notes and 5 pages of supplementary information.

Table of Contents Independent Auditor s Report Consolidated Statement of Financial Position Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Appendix: Supplementary Information - Convenience Translation to US Dollar

As at 31 December 2015 Consolidated Statement of Financial Position Notes 31 December 2015 31 December 2014 ASSETS Current assets: Cash and cash equivalents 14 2.397.242 1.683.888 Other investments, including derivatives 15 84 84 Trade receivables 17 2.576.864 1.762.706 - Due from related parties 38 828.707 585.190 - Due from third parties 1.748.157 1.177.516 Inventories 18 1.466.955 755.233 Prepayments 28 209.353 160.584 Other current assets 28 762.162 427.720 Subtotal 7.412.660 4.790.215 Assets held for sale 23 77.530 4.271.948 Total current assets 7.490.190 9.062.163 Non-current assets: Trade receivables 17 205.475 214.845 - Due from related parties 38 -- -- - Due from third parties 205.475 214.845 Other investments, including derivatives 15 158.486 108.399 Investments in equity accounted investees 16 4.929.207 3.976.954 Investment property 19 5.494.098 4.384.644 Property and equipment 20 7.485.773 6.113.610 Intangible assets and goodwill 21 2.433.687 2.099.004 - Goodwill 908.232 914.591 - Intangible assets 1.525.455 1.184.413 Prepayments 29 388.946 171.998 Deferred tax assets 22 234.881 323.373 Other non-current assets 29 590.498 399.011 Total non-current assets 21.921.051 17.791.838 TOTAL ASSETS 29.411.241 26.854.001 The accompanying notes form an integral part of these consolidated financial statements. 1

As at 31 December 2015 Consolidated Statement of Financial Position (continued) LIABILITIES Notes 31 December 2015 31 December 2014 Current liabilities: Short term loans and borrowings 25 2.249.951 1.312.025 Short term portion of long term loans and borrowings 25 1.928.622 1.756.739 Other financial liabilities -- 15.435 Trade payables 17 1.447.050 857.444 - Due to related parties 38 47.031 9.913 - Due to third parties 1.400.019 847.531 Current tax liabilities 22 10.708 12.255 Provisions 27 131.178 122.218 - Employee benefits 38.338 31.312 - Other provisions 92.840 90.906 Other current liabilities 30 468.433 834.097 Total current liabilities 6.235.942 4.910.213 Non-current liabilities: Loans and borrowings 25 10.239.746 9.538.763 Trade payables 17 340 20.793 - Due to related parties -- -- - Due to third parties 340 20.793 Provisions 27 111.141 88.386 - Employee benefits 85.559 65.563 - Other provisions 25.582 22.823 Deferred tax liabilities 22 386.695 468.960 Other non-current liabilities 31 672.118 469.123 Total non-current liabilities 11.410.040 10.586.025 TOTAL LIABILITIES 17.645.982 15.496.238 EQUITY Equity attributable to owners of the Company: Share capital 856.027 856.027 Adjustments to share capital 1.510.464 1.510.464 Capital stock held by subsidiaries (-) (94.531) (94.531) Share premium 167.384 167.384 Other comprehensive income items that will never be classified to profit or loss 2.258.623 1.550.697 Other comprehensive income items that are or may be classified to profit or loss 256.006 196.892 Restricted reserves 2.723.377 2.851.559 Retained earnings 3.748.436 3.527.312 (Loss) / profit for the year (432.841) 60.739 Total equity attributable to owners of the Company 32 10.992.945 10.626.543 Non-controlling interests Şahenk family 170.344 165.233 Other 601.970 565.987 Total non-controlling interests 32 772.314 731.220 TOTAL EQUITY 11.765.259 11.357.763 TOTAL EQUITY AND LIABILITIES 29.411.241 26.854.001 The accompanying notes form an integral part of these consolidated financial statements. 2

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2015 PROFIT OR LOSS Notes 31 December 2015 31 December 2014 Revenue 6 14.782.598 10.372.853 Cost of sales (-) 7 (13.263.399) (9.187.437) Gross profit 1.519.199 1.185.416 Administrative expenses (-) 8 (1.184.205) (886.260) Selling, marketing and distribution expenses (-) 8 (462.147) (395.275) Other operating income 12 577.045 410.062 Other operating expenses (-) 12 (247.553) (233.498) Share of profit of equity accounted investees 16 223.991 946.800 Operating profit 426.330 1.027.245 Gains from investing activities 9 1.317.379 28.333 Losses from investing activities (-) 9 (8.230) (9.479) Profit before net finance cost 1.735.479 1.046.099 Finance income 10 829.634 316.648 Finance cost (-) 11 (2.845.637) (1.067.243) (Loss) / profit before tax (280.524) 295.504 Tax income (expense) / income - Current tax expense 22 (106.378) (49.881) - Deferred tax income / (expense) 22 25.098 (121.887) (Loss) / profit for the year (361.804) 123.736 Profit attributable to: Non-controlling interests 32 71.037 62.997 - Şahenk family 23.793 25.665 - Other 47.244 37.332 Owners of the Company (432.841) 60.739 Net (loss) / profit for the year (361.804) 123.736 Earnings per share (Full TL) 13 (0,51) 0,07 The accompanying notes form an integral part of these consolidated financial statements. 3

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2015 (continued) Notes 31 December 2015 31 December 2014 OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss: 790.451 317.806 Revaluation of property and equipment 32 468.524 306.811 Remeasurements of defined benefit liability 27 (808) 3.447 Tax on items that will not be reclassified to profit or loss: - Deferred tax 22 (23.264) (16.030) Other comprehensive income from equity accounted investees, net of tax 16 345.999 23.578 Items that are or may be reclassified to profit or loss: 94.046 187.864 Foreign currency translation differences for foreign operations 77.345 11.842 Changes in fair value of available for sale financial assets 3.045 910 Effective portion of changes in fair value of cash flow hedges 9.962 (9.961) Net investment hedge for foreign operations 32 (140.052) 25.816 Tax on items that are or may be reclassified to profit or loss: - Current tax 22 28.010 (5.163) - Deferred tax 22 (1.992) 1.992 Other comprehensive income from equity accounted investees, net of tax 16 117.728 162.428 OTHER COMPREHENSIVE INCOME 884.497 505.670 TOTAL COMPREHENSIVE INCOME 522.693 629.406 Total comprehensive income attributable to: Non-controlling interests 64.862 88.615 - Şahenk Family 23.979 27.843 - Other 40.883 60.772 Owners of the Company 457.831 540.791 522.693 629.406 The accompanying notes form an integral part of these consolidated financial statements. 4

Consolidated Statement of Changes in Equity For the Year Ended 31 December 2015 Paid-in capital Adjustment to share capital Capital stock held by subsidiaries Share premium Revaluation surplus Other comprehensive income that will never be classified to profit or loss Remeasurements of defined benefit liability Translation reserve Other comprehensive income that are or may be classified to profit or loss Retained earnings Fair value reserve for available for sale financial assets Hedging reserve Restricted reserves Retained earnings Net profit/ (loss) for the period Total equity attributable to owners of the Company Balances at 1 January 2014 856.027 1.510.464 (94.531) 167.384 1.319.253 (8.742) 265.530 (125.033) (129.551) 3.358.734 3.338.876 127.591 10.586.002 485.996 11.071.998 Total comprehensive income -- -- -- -- 268.416 (6.120) 24.243 140.635 20.997 (659) 32.540 60.739 540.791 88.615 629.406 Dividends paid -- -- -- -- -- -- -- -- -- (126.132) (350.339) (476.471) (61.938) (538.409) Change in non-controlling interests in consolidated subsidiaries without a change in control -- -- -- -- 3.652 -- 19 1 51 -- (32.758) -- (29.035) 32.149 3.114 Sale of shares of subsidiary -- -- -- -- (25.762) -- -- -- -- (1.033) 26.970 -- 175 (470) (295) Acquisition of non-controlling interests through business combinations -- -- -- -- -- -- -- -- -- -- -- -- -- 99.622 99.622 Adjustment of goodwill previously recognised as provisional (Note 36) -- -- -- -- -- -- -- -- -- -- -- -- -- 7.222 7.222 Capital injection and establishment of subsidiaries -- -- -- -- -- -- -- -- -- -- -- -- 80.024 80.024 Change in equity of joint ventures (Note 16) -- -- -- -- -- -- -- -- -- 5.081 5.081 -- 5.081 Transfers -- -- -- -- -- -- -- -- (379.351) 506.942 (127.591) -- -- -- Noncontrolling interests Total equity Balances at 31 December 2014 856.027 1.510.464 (94.531) 167.384 1.565.559 (14.862) 289.792 15.603 (108.503) 2.851.559 3.527.312 60.739 10.626.543 731.220 11.357.763 Balances at 1 January 2015 856.027 1.510.464 (94.531) 167.384 1.565.559 (14.862) 289.792 15.603 (108.503) 2.851.559 3.527.312 60.739 10.626.543 731.220 11.357.763 Total comprehensive income -- -- -- -- 794.220 3.227 244.309 (40.568) (111.205) 689 -- (432.841) 457.831 64.862 522.693 Dividends paid -- -- -- -- -- -- -- -- -- -- -- -- -- (71.720) (71.720) Transfer of depreciation -- -- -- -- (18.345) -- -- -- -- -- 18.345 -- -- -- -- Sale of shares of joint venture -- -- -- -- (71.176) -- (52.234) (12.612) 31.424 -- 71.176 -- (33.422) -- (33.422) Change in non-controlling interests in consolidated subsidiaries without a change in control -- -- -- -- -- -- -- -- -- -- (61.373) -- (61.373) (61.027) (122.400) Acquisition of non-controlling interests through business combinations (Note 36) -- -- -- -- -- -- -- -- -- -- -- -- -- 90.932 90.932 Adjustment of goodwill previously recognised as provisional -- -- -- -- -- -- -- -- -- -- -- -- -- (28.424) (28.424) Sale of shares of subsidiary -- -- -- -- -- -- -- -- -- -- -- -- -- (425) (425) Capital injection and establishment of subsidiaries -- -- -- -- -- -- -- -- -- -- 3.366 -- 3.366 46.896 50.262 Transfers -- -- -- -- -- -- -- -- -- (128.871) 189.610 (60.739) -- -- -- Balances at 31 December 2015 856.027 1.510.464 (94.531) 167.384 2.270.258 (11.635) 481.867 (37.577) (188.284) 2.723.377 3.748.436 (432.841) 10.992.945 772.314 11.765.259 The accompanying notes form an integral part of these consolidated financial statements. 5

Consolidated Statement of Cash Flows For the Year Ended 31 December 2015 Notes 31 December 2015 31 December 2014 A. Cash flows from operating activities (Loss) / profit for the year (361.804) 123.736 Adjustments for Depreciation and amortisation 20,21 411.752 267.192 Impairment loss on property and equipment 5 (9.498) (26.188) Provision for and reversal of employee severance indemnity, net 26.2 35.568 20.534 Warranty provision 5 75.486 59.908 Other provisions 11.211 7.338 Interest expense 5 88.520 (5.972) Fair value change in investment property 19 (393.687) (162.013) Loss on write-off of property and equipment 5 42.441 Taxation 22 81.280 171.768 Share of profit of equity accounted investees 16 (223.991) (946.800) (Gain) / loss on sale of subsidiaries 9 (109.459) 2.719 Gain on sale of subsidiary/ joint venture (1.193.298) -- Loss on sale of associates 9 -- 460 Bargain purchase gain recognised on acquisition 36 -- (18.311) Gain on sales of property and equipment 9.199 (24.565) Foreign currency differences of loans and borrowings, net 10,11 1.333.862 305.804 Other investing and financing activities -- 15.435 Foreign currency differences of cash and cash equivalents, net (206.550) (180.142) Change in working capital Trade receivables (748.538) (356.741) Inventories (709.980) (79.597) Trade payables 459.059 132.630 Other assets and liabilities (925.368) (190.010) Cash flows from operations Dividends received from equity accounted investees 16 195.271 127.883 Contribution to share capital increase of equity accounted investees 16 (144.653) (81.681) Purchase of equity accounted investees 16 (293.774) (172.776) Proceeds from sale of equity accounted investees 16 5.356.381 1.460 Employee severance indemnity paid 26.2 (17.948) (8.014) Warranty expense paid (73.410) (60.347) Recoveries from doubtful receivables 17 298 3.584 Taxes paid 22.2 (79.915) (43.596) Proceeds from sale of investment property -- 2.287 Acquisition of investment property 19 (176.399) (1.641.040) Cash flows provided from / (used in) operating activities 2.432.056 (2.755.055) B. Cash flows from investing activities Proceeds from sales of subsidiaries 164.335 77.397 Acquisition of subsidiaries 36 (320.034) (268.114) Proceeds from sale of property and equipment and intangible assets 162.511 125.962 Acquisition of property and equipment and intangible assets (949.956) (1.029.906) Cash flows provided from / (used in) investing activities (943.144) (1.094.661) C. Cash flows from financing activities Change in loans and borrowings, net 151.419 4.458.055 Change in non-controlling interests in consolidated subsidiaries without a change in control (122.400) 3.114 Interest paid (693.710) (505.209) Dividends paid (317.417) (292.762) Cash flows from financing activities (982.108) 3.663.198 Net increase / (decrease) in cash and cash equivalents before the effects of foreign currency differences (A+B+C) 506.804 (186.518) D. Effects of foreign currency differences on cash and cash equivalents 206.550 180.142 Net increase / (decrease) in cash and cash equivalents (A+B+C+D) 713.354 (6.376) E. Cash and cash equivalents at 1 January 14 1.683.888 1.690.264 Cash and cash equivalents at 31 December (A+B+C+D+E) 14 2.397.242 1.683.888 The accompanying notes form an integral part of these consolidated financial statements. 6

Notes Description Pages 1 Reporting entity 8 2 Basis of accounting 18 3 Functional and presentation currency 18 4 Use of estimates and judgments 18 5 Operating segments 22 6 Revenue 30 7 Cost of sales 30 8 Administrative, selling, marketing and distribution expenses 31 9 Gains and losses from investing activities 32 10 Finance income 32 11 Finance cost 32 12 Other operating income and expenses 33 13 Earnings per share 33 14 Cash and cash equivalents 34 15 Other investments, including derivatives 34 16 Investments in equity accounted investees 35 17 Trade receivables and trade payables 40 18 Inventories 42 19 Investment property 42 20 Property and equipment 44 21 Intangible assets and goodwill 46 22 Taxation 54 23 Assets held for sale 60 24 Due from/due to customers for contract work 61 25 Loans and borrowings 62 26 Commitments and contingencies 63 27 Provisions 64 28 Other current assets and prepayments 66 29 Other non-current assets and prepayments 66 30 Other current liabilities 67 31 Other non-current liabilities 67 32 Capital and reserves 68 33 Financial instruments Fair values and risk management 71 34 Group enterprises 84 35 Significant events 93 36 Acquisition of subsidiaries and non-controlling interests 96 37 Interests in other entities 107 38 Related party disclosures 107 39 Subsequent events 110 40 Basis of measurement 111 41 Changes in accounting policies and reclassifications 111 42 Significant accounting policies 111 Appendix: Supplementary information 7

1 Reporting entity Doğuş Holding Anonim Şirketi ( Doğuş Holding or the Company ) was established in 1975 to invest in and coordinate the activities of companies operating in different industries, including banking and finance, automotive, construction, tourism, media, real estate, energy, food and beverage and entertainment and is registered in. Doğuş Holding is owned and managed by the members of Şahenk Family. As at 31 December 2015, the principal shareholders and their respective shareholding rates in Doğuş Holding are stated in note 32. The address of the registered office of Doğuş Holding is as follows: Huzur Mahallesi Ayazağa Caddesi, No: 2 34396 Sarıyer / İstanbul- As at 31 December 2015, Doğuş Holding has 181 (31 December 2014: 163) subsidiaries ( the Subsidiaries ), 60 (31 December 2014: 83) joint arrangements ( the Joint Arrangements ) and 42 (31 December 2014: 17) associates ( the Associates ) (referred to as the Group or Doğuş Group herein and after). The consolidated financial statements of Doğuş Group as at and for the year ended 31 December 2015 comprises Doğuş Holding and its subsidiaries and the Group s interest in associates and joint arrangements. As explained in more detail in this note, Doğuş Holding holds controlling interest directly or indirectly via other companies owned and/or exercising the control over the voting rights of the shares held by the members of Şahenk Family, in all its subsidiaries included in the Group. The Group operates partnerships and has distribution, management and franchise agreements with internationally recognised brand names, such as Banco Bilbao Vizcaya Argentaria S.A. ( BBVA ), Volkswagen AG, Volkswagen Financial Services AG, Audi AG, Dr.Ing.h.c. F.Porsche Aktiengesellshaft, Bentley Motors Limited, Seat SA, Scania CV AB, F.X. Meiller Fahrzeug&Maschinenfabrik-GMBH&Co KG, Automobili Lamborghini S.p.A., Thermo King, Hyatt International Ltd., HMS International Hotel GMBH, Soho House, Eden Rock St. Barths, Chenot, Bodyism, Crate and Barrel, Messika Group S.A, Emporio Armani, Gucci, Loro Piana, Arnold&Son S.A. Porsche Design, Capritouch, Armani Jeans, Giorgio Armani, Armani Junior, Kiko, Under Armour, Hublot, Arnold&Son S.A., Bell and Ross, M Missoni, HYT, Döttling, Condé Nast ( Vogue-GQ-Traveller ), National Geographic Society ( NG-NG Kids ), Curtco Robb Media LLC ( Robb Report ), Armani Ristorante, Toms Deli, Tom s Kitchen, Kitchenette, Zuma, Roka, Mezzaluna, Mezzaluna Express, Coya, Oblix, La Petite Maison and L Atelier. The number of employees of the Group at 31 December 2015 is approximately 44.744 (31 December 2014: 40.738). As explained in more detail in note 5, The Group is organised mainly in under 8 core operating segments: Banking and finance Construction Automotive Tourism and Services Media Others (Energy, Real Estate, Food & Beverage and Entertainment and Others) 8

1 Reporting entity (continued) The subsidiaries, the joint ventures, joint operations and the associates included in the consolidation scope of Doğuş Holding, their country of incorporation, nature of business and their respective operating segments are as follows: 1.1 Entities in banking and finance segment Below entities are first consolidated under Türkiye Garanti Bankası A.Ş. ( Garanti Bank ); then equity-accounted under the Group in accordance with IAS 28 Investments in Associates and Joint Ventures. Associates Nature of business Country of incorporation G Netherlands B.V. ( G Netherlands ) Finance The Netherlands Garanti Bank Banking Garanti Bank International NV ( GBI ) Banking The Netherlands Garanti Bank Moscow ( GB Moscow ) Banking Russia Garanti Bank S.A. Banking Romania Garanti Bilişim Teknolojisi ve Ticaret A.Ş. ( Garanti Bilişim ) (1) IT services Garanti Diversified Payment Rights Finance Company ( Garanti DPR ) Special purpose entity for securitisation transaction Garanti Emeklilik ve Hayat A.Ş. ( GEHAŞ ) Life insurance Garanti Faktoring Hizmetleri A.Ş. ( Garanti Faktoring ) Factoring Garanti Filo Sigorta Aracılık Hizmetleri A.Ş. ( Garanti Filo Sigorta ) (1) Fleet management, insurance Garanti Filo Yönetimi Hizmetleri A.Ş. ( Garanti Filo ) (1) Fleet management Garanti Finansal Kiralama A.Ş. ( Garanti Leasing ) Leasing Garanti Hizmet Yönetimi Organizasyon ve Danışmanlık A.Ş. ( Garanti Hizmet ) (2) Service activities for fund management and operations Garanti Holding B.V. Holding company The Netherlands Garanti Konut Finansmanı Danışmanlık Hizmetleri A.Ş. Mortgage marketing ( Garanti Konut ) (2) Garanti Kültür A.Ş. ( Garanti Kültür ) (2) Cultural activities Garanti Ödeme Sistemleri A.Ş. ( GÖSAŞ ) (2) Credit card operational services Garanti Portföy Yönetimi A.Ş. ( Garanti Portföy ) Fund management Garanti Yatırım Menkul Kıymetler A.Ş. ( Garanti Yatırım ) Brokerage and investment banking Garanti Yatırım Ortaklığı A.Ş. ( Garanti Yatırım Ortaklığı ) Portfolio management Motoractive IFN S.A. ( Motoractive ) Leasing Romania Ralfi IFN S.A. ( Ralfi ) Consumer finance Romania RPV Company Special purpose entity for securitisation transaction Trifoi Real Estate Company (2) Real estate investment Romania (1) These companies are subsidiaries of Garanti Bank and are operating in businesses other than banking and/or finance. They are included within the banking and finance segment for the purposes of Doğuş Holding s consolidated financial statements since Garanti Bank owns their controlling interests. (2) These companies are not consolidated in the accompanying consolidated financial statements as they do not currently have material operations compared to the consolidated performance of the Group. 9

1 Reporting entity (continued) 1.2 Entities in construction segment Below entities are first consolidated under Doğuş İnşaat ve Ticaret A.Ş. ( Doğuş İnşaat ); then consolidated under the Group. Subsidiaries Nature of business Country of incorporation Ayson Geoteknik ve Deniz İnşaat A.Ş. ( Ayson ) Drilling Ayson Sondaj Limited Ukraine ( Ayson Sondaj ) A non-operating company Ukraine Dogus Construction LLC Construction Qatar Doğus Maroc SARL Construction Morocco Doğuş EOOD Construction Bulgaria Doğuş İnşaat Construction Doğuş İnşaat Limited (Ukraine) ( Doğuş İnşaat Limited ) Construction Ukraine Dogus Oman LLC Construction Oman Teknik Mühendislik ve Müşavirlik A.Ş. ( Teknik Mühendislik ) Civil engineering Joint operations Nature of business Country of incorporation Doğuş Alarko YDA İnşaat ( Doğuş Alarko ) Construction Doğuş Gülsan Adi Ort. ( Kazakistan ) Construction Kazakhistan Doğuş Gülsan Adi Ort. ( Kömürhan ) Construction Doğuş Polat Adi Ortaklığı ( Doğuş Polat ) Construction Doğuş YDA Adi Ortaklığı ( Doğuş YDA ) Construction Gülermak-Doğuş Adi Ortaklığı ( Gülermak Doğuş ) Construction Kazakhistan Joint Venture ( Doğuş Prestige ) Construction Kazakhistan Yapı Merkezi-Doğuş-Yüksel-Yenigün-Belen Adi Ortaklığı ( YMDYYB ) Construction 1.3 Entities in automotive segment Below entities are first consolidated under Doğuş Otomotiv Servis ve Ticaret A.Ş. ( DOAŞ ); then consolidated under the Group. Country of incorporation Subsidiaries Nature of business DOAŞ Automotive distribution Doğuş Auto Mısır JS A non-operating company Egypt Doğuş Auto Mısır LLC A non-operating company Egypt D-Auto Suisse SA Automotive retail Switzerland Doğuş Oto Pazarlama ve Ticaret A.Ş. ( Doğuş Oto ) Automotive retail D-Auto Limited Liability Company ( Doğuş Auto Iraq ) Automotive retail Iraq Doğuş Sigorta Aracılık Hizmetleri A.Ş. ( Doğuş Sigorta ) Insurance agency Country of incorporation Joint ventures Nature of business Meiller Doğuş Damper Sanayi ve Ticaret Limited Şirketi Production ( Meiller Doğuş ) TÜVTURK Kuzey Taşıt Muayene İstasyonları Yapım ve Vehicle inspection station İşletim A.Ş. ( TÜVTURK Kuzey ) TÜVTURK Güney Taşıt Muayene İstasyonları Yapım ve Vehicle inspection station İşletim A.Ş. ( TÜVTURK Güney ) TÜVTURK İstanbul Taşıt Muayene İstasyonları Yapım ve Vehicle inspection station İşletim A.Ş. ( TÜVTURK İstanbul ) TÜV SÜD Doğuş Ekspertiz ve Danışmanlık Hizmetleri Limited Şirketi ( TÜV SUD Doğuş Ekspertiz ) Valuation services 10

1 Reporting entity (continued) 1.3 Entities in automotive segment (continued) Associates Nature of business Country of incorporation VDF Faktoring Hizmetleri A.Ş. ( VDF Faktoring ) Factoring VDF Sigorta Aracılık Hizmetleri A.Ş. ( VDF Sigorta ) Agency/brokerage VDF Servis ve Ticaret A.Ş. ( VDF Servis Holding ) Investment company Volkswagen Doğuş Finansman A.Ş. ( VDF Tüketici ) Consumer finance Yüce Auto A.Ş. ( Yüce Auto ) Automotive distribution 1.4 Entities in tourism segment Subsidiaries Nature of business Country of incorporation Alantur Turizm ve Ticaret A.Ş. ( Alantur ) Hospitality Anadolu Göcek Marina Turizm Yatırımları A.Ş. Marina operation ( D Marin Göcek ) Antur Turizm A.Ş. ( Antur ) Hospitality and travel agency Arena Otel Lokanta ve Eğlence Yerleri İşletmeciliği ve Hospitality and café Turizm Yatırım A.Ş. ( Arena ) management Argos Turizm Yatırım ve Ticaret A.Ş. ( Argos in Hospitality Cappadocia ) BMK Turizm ve Otelcilik Hizmetleri A.Ş. ( BMK ) Hospitality D Marina İşletmeciliği Turizm ve Yönetim Hizmetleri A.Ş. Marina management ( D Marina ) D Marine Investments Holding Coöperatief U.A. Investments company The Netherlands D Marine Investments Holding B.V. Investments company The Netherlands D Otel Göcek Turizm Yatırımları ve İşletmeciliği A.Ş. Hospitality ( D Otel Göcek ) D Otel Plaj İşletmeciliği A.Ş. ( D Otel Plaj, formerly named Restaurant and cafe as D Otel Bodrum Sağlıklı Yaşam Hizmetleri Ticaret A.Ş.) management, hospitality D Otel Marmaris Turizm İşletmeciliği Ticaret ve Sanayi Hospitality A.Ş. ( D Otel ) D Saat ve Mücevherat Ticaret A.Ş. ( D Saat ) Retail and distribution of luxury watches Dogus Avenue BV ( Doğuş Avenue BV ) Investments company The Netherlands Doğuş Avenu Dış Ticaret ( Doğuş Avenu ) Retail services Dogus Avenue Holding Coop U.A. ( Doğuş Avenue Coop ) Investments company The Netherlands Dogus Avenue LLC ( Dogus Avenue LLC ) Retail services Russia Dogus Croatia d.o.o. ( Doğuş Croatia, formerly named as Investments company Croatia Dogus Marine Croatia d.o.o.) Doğuş Dalaman Marina İşletmeciliği Turizm Ticaret A.Ş. A non-operating company ( Doğuş Dalaman ) (1) Doğuş Didim Marina İşletmeleri ve Ticaret A.Ş. Marina operation ( Doğuş Didim ) Dogus Hellas SA. ( Dogus Hellas ) Marina management Greece Doğuş Montenegro Investments Holding B.V. Investments company The Netherlands Doğuş Marina Hoteli d.o.o. ( D Resort Sibenik ) Hotel management Croatia Doğuş Marina Upravljanje d.o.o. ( Marina Upravljanje ) A non-operating company Croatia Doğuş Razvitak I Upravljanje d.o.o. ( Doğuş Razvitak ) A non-operating company Croatia 11

1 Reporting entity (continued) 1.4 Entities in tourism segment (continued) Country of Subsidiaries Nature of business incorporation Doğuş Otel İşletmeciliği ve Yönetim Hizmetleri A.Ş. Hotel management ( Doğuş Otel İşletmeciliği ) Doğuş Otel Yatırımları ve Turizm İşletme A.Ş. Investments company ( Doğuş Otel ) Doğuş Perakende Satış, Giyim ve Aksesuar Ticaret A.Ş. Retail services ( Doğuş Perakende ) Doğuş Turgutreis Marina İşletmeciliği Turizm ve Ticaret Marina operation A.Ş. ( Doğuş Turgutreis ) Dogus Upravljanje d.o.o ( Sibenik Upravljanje ) A non-operating company Croatia Doğuş Zhenfa Kozmetik Ticaret A.Ş. ( Doğuş Zhenfa ) Investments company Garanti Turizm Yatırım ve İşletme A.Ş. ( Garanti Turizm ) Hospitality Gouvia Marina S.A. Marina operasyonu Greece Göktrans Turizm ve Ticaret A.Ş. ( Göktrans Turizm ) Hospitality Hospitality d.o.o ( Hospitality, formerly named as Tenos Hospitality Croatia Turizam d.o.o) K&G Medmarinas Management S.A. Marina management Greece King of the Rib Investments company Spain Lefkas Marina S.A. Marina operation Greece Marina Barcelona 92 S.A. Ship maintenance/repair Spain Marina Borik d.o.o ( Marina Borik ) Marina operation Croatia Marina Dalmacija d.o.o ( Marina Dalmacija ) Marina operation Croatia Marina Sibenik d.o.o. ( Marina Sibenik ) Marina operation Croatia MK Holding A.Ş. ( MK Holding ) Investments company Panther Marina Limited ( Panther Marina ) Marina operation British Virgin Islands Şahintur Şahinler Otelcilik Turizm Yatırım İşletmeciliği Hospitality A.Ş. ( Şahintur ) Villa Dubrovnik d.d. Hospitality Croatia Voyager Mediterranean Turizm Endüstrisi ve Ticareti Hospitality A.Ş. ( Voyager ) West Mediteranean Holding Limited ( West Mediternean ) Investments company Malta Zadar Resort d.o.o ( Zadar, formerly named as Tenos d.o.o.) Investments company Croatia Zea Marina S.A. Marina operation Country of Joint ventures Nature of business incorporation Acropolis S.P.A Hospitality Italy Argos Bağcılık ve Şarapçılık San.Tic. A.Ş. ( Argos Viticulture Bağcılık ) Argos Kültür Sanat Tanıtım Organizasyon Tic. A.Ş. Culture, art, promotion ( Argos Kültür ) Chenot Cosmetique S.a.g.l. Cosmetics retail Switzerland Chenot Cosmetic S.R.L. Cosmetics retail Italy Chenot Dietetique S.a.g.l Retail distribution Switzerland Corpera Turizm Yatırımları A.Ş. ( Corpera ) Hospitality HC Biontis S.R.L. Healthy life consultancy Italy HC International S.A. Investments company Luxemburg HC Trademarks S.a.r.l. Healthy life consultancy Luxemburg Gestin Turizm Yatırım İşletmeleri İnşaat ve Ticaret A.Ş. Investments company ( Gestin ) Lamda Dogus Holding and Development of Marinas S.A. Investment company Greece ( Lamda Dogus ) Lamda Flisvos Holding ( Lamda Flisvos ) Investment company Greece Lamda Flisvos Marina ( Lamda Marina ) Marina operation Greece Uzunetap Tanıtım Organizasyon Tic. A.Ş. ( Uzunetap ) Promotion, organization 12

1 Reporting entity (continued) 1.4 Entities in tourism segment (continued) Associates Nature of business Country of incorporation Adelia Ltd Hospitality Cyprus Afternoon Tea SCI Hospitality St Barths Island Eden Rock SARL Hospitality St Barths Island Eden Rock Villa Rental SAS Hospitality St Barths Island Kiko Kozmetik Ürünleri Ticaret A.Ş. ( Kiko ) Cosmetics retail Solid Rock Property SAS Hospitality St Barths Island (1) Doğuş Dalaman was established to build and operate yachting marina in seaside resort towns in Mediterranean coasts of. However, Doğuş Dalaman has not yet started its operations and accordingly was noted as non-operating. 1.5 Entities in media segment Subsidiaries Nature of business Country of incorporation A Yapım Televizyon Programcılık A.Ş. ( A Yapım ) Media Doğuş Dijital Hizmetler A.Ş. ( Doğuş Dijital ) Media Doğuş Media Group GmbH ( Doğuş Media ) Media Germany Doğuş Video ve Dijital Yayıncılık A.Ş. ( Doğuş Video ) Producing social websites and digital games Doğuş Yayın Grubu A.Ş. ( Doğuş Yayın Grubu ) Media HD Yayıncılık ve Medya Hizmetleri A.Ş. ( HD Media Yayıncılık ) Işıl Televizyon Yayıncılık A.Ş. ( Star TV ) Media Kral Pop Avrupa Radyo ve Televizyon Yayıncılığı A.Ş. Media ( Kral Pop Avrupa ) Kral TV Radyo ve Televizyon Yayıncılığı A.Ş. ( Kral TV Media Radyo ) (formerly, named as HD-E Radyo ve Televizyon Yayıncılığı A.Ş.) Kral Pop Medya Hizmetleri A.Ş. ( Kral Pop ) Media NTV Batı Medya Hizmetleri A.Ş. ( NTV Batı ) Media NTV Radyo ve Televizyon Yayıncılığı A.Ş. ( NTV Radyo ) Media Sportif Radyo ve Televizyon Yayıncılık A.Ş. ( Sportif Media Radyo ) Star Avrupa Radyo ve Televizyon Yayıncılığı A.Ş. ( Star Media Avrupa ) Uydu Dijital İnternet Teknolojileri A.Ş. ( Uydu Dijital ) Media Yonca Radyo ve TV Yayıncılık A.Ş. ( Yonca Radyo ) Media Country of Associates World Wide Entertainment Medya Ticaret A.Ş. ( World Wide ) 1.6 Entities in other segment Nature of business Media incorporation Subsidiaries Nature of business Country of incorporation Ad Yiyecek İçecek Ticari Sanayi A.Ş. ( AD Yiyecek ) Restaurant establishment Afiyet Olsun Turizm İşletmeleri A.Ş. ( Afiyet Olsun ) Restaurant establishment A.L.E. Gıda Turizm ve Ticaret A.Ş. ( A.L.E. Gıda ) Restaurant establishment Alperen Gayrimenkul Yatırım ve İşletme A.Ş. ( Alperen ) Real estate development Altınhan Turizm ve Ticaret A.Ş. ( Altınhan ) Restaurant establishment Altın Mecralar İnteraktif Medya ve Pazarlama ve Teknoloji E-mail marketing Hizmetleri Ticaret Limited Şirketi ( Altın Mecralar ) Aresta Gıda Ticaret ve Sanayi A.Ş. ( Aresta ) Restaurant establishment 13

1 Reporting entity (continued) 1.6 Entities in other segment (continued) Subsidiaries Nature of business Country of incorporation Arjantin Et Ürünleri Gıda Lokantacılık Turizm Ticaret A.Ş. Restaurant establishment ( Arjantin Et ) Ataşehir Restoran İşletmeleri Gıda Turizm Ticaret A.Ş. Restaurant establishment ( Ataşehir Restoran ) Bal Turizm ve Gıda Pazarlama A.Ş. ( Bal Turizm ) Restaurant establishment Boğaziçi Borsa Lokantacılık İşl. San. ve Tic. A.Ş. ( Borsa ) Restaurant establishment Başkent Yiyecek İçecek A.Ş. ( Başkent ) Restaurant establishment Büke Turizm ve Lokantacılık Ticaret A.Ş. ( Büke Turizm ) Restaurant establishment Bomonti Kültür ve Eğlence Merkezi Yönetimi A.Ş. Entertainment and ( Bomonti ) organization Çankaya Grup Lokantacılık Gıda Turizm A.Ş. ( Çankaya Restaurant establishment Grup ) Çukurambar Lokantacılık Gıda Turizm A.Ş. Restaurant establishment ( Çukurambar Lokanta ) D Eğlence Bar Restoran İşletmeciliği ve Yatırım A.Ş. ( D Establishment and Eğlence ) management of restaurants and cafes D Enerji Üretim ve Yatırım A.Ş. ( D Enerji ) Energy D Et ve Et Ürünleri Gıda Pazarlama Ticaret A.Ş. ( D Et ) Establishment and management of restaurants and cafes D-Et International Holding Coöperatif U.A. Investments company The Netherlands D-Et International Holding BV Investments company The Netherlands D Koruma ve Güvenlik Hizmetleri A.Ş. ( D Koruma ) Security and protection activities Dafne Yayıncılık Turizm ve Gıda Pazarlama Ticaret A.Ş. Restaurant and catering ( Dafne Yayıncılık ) Darphane Lokantaları İşletmeleri San. ve Tic. A.Ş. Restaurant and café ( Darphane ) establishment Darüşşafaka Sportif Yatırımlar ve Ticaret A.Ş. Sports activities ( Darüşşafaka Spor ) Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri Investment company A.Ş. ( Doğuş Arge ) Doğuş Bilgi İşlem ve Teknoloji Hizmetleri A.Ş. Software development ( Doğuş Bilgi İşlem ) Doğuş Enerji Toptan Elektrik Ticaret A.Ş. Purchasing and selling of ( Doğuş Enerji Toptan ) electricity Doğuş Enerji Üretim ve Ticaret A.Ş. ( Doğuş Enerji ) Electricity generation Doğuş Finance Ukraine A non-operating company Ukraine Doğuş Fotoğraf ve Kamera Ekipmanları A.Ş. ( Doğuş Fotoğraf ) Retail sale services Doğuş Gayrimenkul Yatırım ve İşletme A.Ş. Real estate development ( Doğuş Gayrimenkul ) Doğuş Gayrimenkul Yatırım Ortaklığı A.Ş. ( Doğuş GYO ) Real estate investment fund Doğuş International Limited ( Doğuş International ) Construction equipment United Kingdom Dogus Leisure and Entertainment ( Dogus Leisure ) Investments company United Kingdom Dogus Management Services Limited ( Dogus Management ) Business and financial U.A.E. investments Doğuş Nakliyat ve Ticaret A.Ş. ( Doğuş Nakliyat ) A non-operating company Doğuş SA A non-operating company Switzerland Doğuş Sağlıklı Yaşam ve Danışmanlık Hizmetleri Healthcare counseling Ticaret A.Ş. ( Doğuş Sağlıklı Yaşam ) Doğuş Spor Kompleksi Yatırım ve İşletme A.Ş. ( Doğuş Spor ) Sports activities 14

1 Reporting entity (continued) 1.6 Entities in other segment (continued) Subsidiaries Nature of business Country of incorporation Doğuş Spor Moda ve Media Hizmetleri ve Ticaret A.Ş. Sport academy establishment ( Doğuş Spor Moda ) and management Doğuş Sportif Faaliyetler A.Ş. ( Doğuş Sportif ) Sports activities Doğuş Tarımsal Projeler Araştırma Geliştirme A.Ş. ( Doğuş Agricultural research and Tarım ) development activities Doğuş Telekomünikasyon Hizmetleri A.Ş. ( Doğuş A non-operating company Telekom ) Doğuş Turizm Sağlık Yatırımları ve İşletmeciliği Real estate development Sanayi ve Ticaret A.Ş. ( Doğuş Turizm ) Doğuş Varlık Kiralama A.Ş. A non-operating company Doğuş Müşteri Sistemleri A.Ş. ( DMS ) Loyalty management Doors Akademi Eğitim ve Danışmanlık Hizmetleri A.Ş. Academy ( Doors Akademi ) Doors Holding A.Ş. ( Doors Holding ) Investment company Doors Uluslararası Yönetim Danışmanlığı Ticaret A.Ş. A non-operating company ( Doors Uluslararası Yönetim ) Dream International B.V. Investments company The Netherlands Dream International Coöperatif U.A. Investments company The Netherlands Etiler Kebapçılık Restoran A.Ş. ( Etiler Kebapçılık ) Restaurant establishment Etiler Turistik Tesisler İşletmeciliği Ticaret A.Ş. ( Etiler Restaurant and café Turistik ) establishment and management Euromessage Deutschland GmbH ( Euromessage E-mail marketing Deutschland ) Genoto Otomotiv Pazarlama ve Ticaret A.Ş. ( Genoto ) A non-operating company Günaydın İdealtepe Gurme Gıda Sanayi ve Ticaret A.Ş. Restaurant and café ( Günaydın İdealtepe ) establishment and management Günaydın Et Sanayi ve Ticaret A.Ş. ( Günaydın Et ) Restaurant and café establishment and management Günaydın Et Şarküteri Ürünleri Gıda Sanayi ve Ticaret A.Ş. ( Günaydın Et Şarküteri ) Günaydın İstanbul Merkez Gıda Turizm Ticaret A.Ş. ( Günaydın İstanbul ) Restaurant and café establishment and management Restaurant and café establishment and management Günaydın Antalya Restoran Gıda Turizm Ticaret A.Ş. Restaurant and café ( Günaydın Antalya ) establishment Havana Yayıncılık Turizm ve Gıda Pazarlama Ticaret A.Ş. Restaurant, food and ( Havana Yayıncılık ) beverage production Havana International B.V. Investment company The Netherlands Havana International Coöperatif U.A. Investment company The Netherlands Havana Doors Restaurant Management Ltd ( Havana Doors ) Restaurant establishment The Netherlands Hedef Medya Tanıtım Interaktif Medya Pazarlama A.Ş. E-mail marketing ( Hedef Medya ) İstinye Park Gayrimenkul Yatırım ve İşletme A.Ş. Shopping mall ( İstinye Park Gayrimenkul ) administration Kadıköy Tepe Restoran Gıda Turizm Tic.A.Ş. Restaurant establishment ( Kadıköy Tepe ) Kivahan Turizm Ticaret A.Ş. ( Kivahan ) Restaurant establishment 15

1 Reporting entity (continued) 1.6 Entities in other segment (continued) Subsidiaries Nature of business Country of incorporation Köprü Restoran Işletmeciliği Ticaret A.Ş. ( Köprü ) Restaurant establishment Körfez Havacılık Turizm ve Ticaret A.Ş. ( Körfez Hava ) Air transportation Lacivert Turizm A.Ş. ( Lacivert ) Restaurant establishment London Doors Restaurant Group Ltd Investment company United Kingdom LPM İstanbul Restoran İşl. ve Yatırım A.Ş. ( LPM İstanbul ) Restaurant establishment Masa Restaurant Grup İşletmeleri San. ve Tic. A.Ş. ( Masa ) Restaurant establishment Mezzaluna Gıda İşletmecilik Sanayi ve Ticaret A.Ş. ( Mezzaluna ) Establishment and management of Meto Turizm İşletmeciliği Ve Tasarım Dekorasyon Ticaret A.Ş. ( Meto Turizm ) restaurants and cafes Establishment and management of restaurants and cafes Mora Turizm Otelcilik Rest. İşl. San. ve Tic. A.Ş. ( Mora ) Restaurant establishment Nahita Restoran İşletmeciliği ve Yatırım A.Ş. ( Nahita ) Establishment and management of restaurants and cafes Nusret Limited Investment company Dubai / U.A.E Nusret Restaurant L.L.C. ( Nusret Dubai ) Restaurant establishment Dubai / U.A.E Oran Gurme Et Lokantacılık Gıda Turizm Ticaret A.Ş. Restaurant establishment ( Oran Gurme ) Popülist Yiyecek İçecek Sanayi ve Ticaret A.Ş. ( Popülist ) Restaurant establishment Portakal Yazılım Danışmanlık Reklamcılık ve Yayıncılık San. E-mail marketing ve Tic A.Ş. ( Portakal Yazılım ) Pozitif Arena Konser Salon İşletmeleri A.Ş. ( Pozitif Arena ) Entertainment and event management Pozitif Müzik Yapım A.Ş. ( Pozitif Yapım ) Entertainment and event management Pozitif Müzik A.Ş. ( Pozitif Müzik ) Entertainment and event management Sait Restoran Turizm İşletmeciliği İnş. Emlak ve Tic.A.Ş. ( Sait ) Restaurant establishment Salıpazarı Liman İşletmeciliği ve Yatırımları A.Ş. ( Salıpazarı ) Real estate development Sititur Turizm Yatırım ve Danışmanlık Hizmetleri A.Ş. A non-operating company ( Sititur ) Soya Restoran İşletmeciliği ve Ticaret A.Ş. ( Soya ) Restaurant establishment Toms Kitchen Restaurant Holdings Limited (eski adı ile Tag Investments company United Kingdom Restaurants Holdings Ltd ) Tansaş Gıda ve Sanayi Turizm A.Ş. ( Tansaş Gıda ) A non-operating company The Tom Aikens Group Ltd Restaurant establishment United Kingdom Tiendes Turizm İşletmeleri A.Ş. ( Tiendes ) Restaurant establishment Tom Aikens Ltd Restaurant establishment United Kingdom Tom's Kitchen Ltd Restaurant establishment United Kingdom Well Body Holding B.V. Investments company The Netherlands Vitapark Spor Turizm Hizmet İnşaat ve Ticaret A.Ş. ( Vitapark ) Golf resort 16

1 Reporting entity (continued) 1.6 Entities in other segment (continued) Joint ventures Nature of business Country of incorporation Aslancık Elektrik Üretim A.Ş. ( Aslancık ) Electricity generation Azumi Limited Establishment and United Kingdom management of restaurant and cafes Bodyism Global Holdings 2014 Limited ( Bodyism Global Investment company United Kingdom Holdings 2014 ) Bodyism Global Limited Healthy life United Kingdom Bodyfood Limited ( Bodyfood ) Healthy life United Kingdom Bodywear Limited ( Bodywear ) Sportswear United Kingdom Boyabat Elektrik Üretim ve Ticaret A.Ş. ( Boyabat ) Electricity generation Doğuş Planet Elektronik Ticaret ve Bilişim Hizmetleri A.Ş. E-commerce ( Doğuş Planet ) Doğuş SK Girişim Sermayesi Yatırım Ortaklığı A.Ş. ( Doğuş Private equity SK Girişim ) Ege Turizm ve Gayrimenkul Yatırımları A.Ş. ( Ege Turizm ) Real estate development Kanlıca Turizm Sanayi A.Ş. ( Kanlıca Turizm ) Restaurant and hotel Mad Atelier International B.V. ( Mad Atelier ) Investment company The Netherlands Mad Atelier S.A.S ( L Atelier ) Restaurant establishment France Orta Konak Gayrimenkul Yatırım Yönetimi ve Turizm A.Ş. Real estate development ( Orta Konak ) Robata Rest Ltd Restaurant establishment United Kingdom Roka Mayfair Ltd Restaurant establishment United Kingdom Roka Aldwych Ltd Restaurant establishment United Kingdom Taddeo Trading Ltd. Investment company British Virgin Islands Taraneete International Ltd. Restaurant establishment Hong Kong TDB Sigorta Brokerliği A.Ş. ( TDB Sigorta ) Insurance agency Time Result International Ltd Restaurant establishment British Virgin Islands Wildfire Entertainment Ltd Restaurant establishment United Kingdom Zuma Bangkok Ltd Restaurant establishment Thailand Zuma Club Llc Restaurant establishment U.A.E Zuma Japanese Restaurant INC Investment company U.S.A Zuma Japanese Restaurant Miami Llc Restaurant establishment U.S.A Zuma NY LLC Restaurant establishment U.S.A Zuma Restaurant LLC Abu Dhabi ( Abu Dhabi ) Restaurant establishment U.A.E Zuma Turizm ve Gıda Pazarlama Ticaret A.Ş. ( Zuma Restaurant establishment Turizm ) Zuma USA LLC Investment company U.S.A Zuma Las Vegas LLC Restaurant establishment U.S.A Zuma Rome Restaurant establishment Italy Associates Nature of business Country of incorporation Coya Dubai Restaurant establishment U.A.E. Coya London Restaurant establishment United Kingdom Coya Restaurants LLC ( Coya Miami ) Restaurant establishment U.S.A İstinye Yönetim Hizmetleri A.Ş. ( İstinye Yönetim Shopping mall Hizmetleri ) administration Reidin FZ-LLC ( Reidin ) Real estate research U.A.E Zingat Gayrimenkul Bilgi Sistemleri A.Ş. ( Zingat ) Real estate development 17

2 Basis of accounting Statement of compliance Doğuş Group entities operating in maintain their books of account and prepare their statutory financial statements in Turkish Lira ( TL ) in accordance with the accounting principles and instructions as promulgated by the Banking Regulatory and Supervision Agency ( BRSA ) applicable to Garanti Bank, Turkish insurance legislation and accounting principles applicable to insurance business, and accounting principles per Turkish Uniform Chart of Accounts, Turkish Commercial Code and per Capital Market Board of applicable to entities operating in other businesses. Doğuş Group s foreign entities maintain their books of account and prepare their statutory financial statements in accordance with the generally accepted accounting principles and the related legislation applicable in the countries they operate. The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRSs ). The consolidated financial statements were authorised for issue by Doğuş Holding s management on 31 March 2016. The Doğuş Holding s General Assembly and the other reporting bodies have the power to amend the consolidated financial statements after their issue. 3 Functional and presentation currency These consolidated financial statements are presented in TL which is Doğuş Holding s functional currency. All financial information presented in TL has been rounded to the nearest thousand, except when otherwise indicated. 4 Use of estimates and judgments The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Management discusses with the Audit Committee the development, selection and disclosure of the Group s critical accounting policies and estimates, and the application of these policies and estimates. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: 1- Group amortises and depreciates its intangible assets and property and equipment over useful lives that are disclosed in note 42, 2- Assumptions are used in projections of discounted cash flow method and impairment test of non-financial assets, see note 21, 3- Fair value of derivative instruments are estimated through market price or use of discounted cash flow method, see note 33, 4- Liabilities that may occur due to ongoing cases and probability of loss from cases are estimated by Group Management considering the view of Group Legal Counsel and experts. Group Management assesses lawsuit provision thereon, see note 27, 18

4 Use of estimates and judgments (continued) (a) 5- The data in the discounted price list are used to calculate inventory impairment. If expected net realizable value is less than cost, the Group allocates provisions for inventory impairment, see note 18, 6- The warranties on automobiles sold by the Group are issued by the original equipment manufacturers ( OEM ). The Group acts as an intermediary between the customers and OEM. The claims of customers from the Group are recognised as warranty expense. The Group recognises the amount claimed from the OEM s as warranty income and offset against warranty expense. The Group incurs the cost that is not paid by the manufacturers. Accordingly, the Group recognises the estimated liability for the difference between possible warranty claims of customers and possible warranty claims based on historical service statistics, see note 27, 7- Deferred tax asset is recognised to the extent that taxable profit will be available against which the deductible temporary differences can be utilised. When taxable profit is probable, deferred tax assets is recognised for all temporary differences. For the year ended 31 December 2015, since the assumptions related to the Group s future taxable profit generation are considered adequate, deferred tax asset is recognised, see note 22, 8- In the calculations of provision for employee benefits, actuarial assumptions related to turnover ratio, discount rate and salary increase are used. Calculation details are disclosed in note 27.1, 9- Investment property is measured at fair value, which is appraised by independent third party appraisers. Investment property under construction is carried at cost. For assumptions used in the appraisals see note 19, 10- Group monitors recoverability of its accounts receivable considering the past experience and recognise allowance for doubtful receivables for probable losses. Subsequently, if the allowance for doubtful receivable is recovered fully or partially, the amount is reversed from allowance and recognised in profit or loss, see note 17. Determination of fair values A number of the Group s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. Property and equipment The fair value of property and equipment recognised as a result of a business combination is the estimated amount for which a property could be exchanged based on market values. The fair value of property is the estimated amount for which a property could be exchanged on the date of valuation between market participants in an orderly transaction where the participants act in their best economic interest and are knowledgeable. The Group reflects land and buildings at their fair values as appraised by independent third party appraisers. The fair values of land and buildings are determined based on the discounted cash flow method, depreciable replacement cost or market prices for similar items. 19

4 Use of estimates and judgments (continued) (b) (c) (d) (e) (f) (g) Determination of fair values (continued) Intangible assets The fair values of intangible assets, which comprise the broadcasting rights, concession rights, customer relationship, content library, franchise network, sponsorship contracts and brand names acquired in business combinations, are based on the discounted cash flows expected to be derived from the use and eventual sale of the assets. Investment property External, independent valuation companies, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group s investment property portfolio every year. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm s length transaction after proper marketing wherein the parties had each acted knowledgeably and willingly. In the absence of current prices in an active market, the valuations are prepared by considering the aggregate of the estimated cash flows expected to be received from renting out the property. A yield that reflects the specific risks inherent in the net cash flows then is applied to the net annual cash flows to arrive at the property valuation. Valuations reflect, when appropriate; the type of tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting vacant accommodation, the allocation of maintenance and insurance responsibilities between the Group and the lessee; and the remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that all notices and when appropriate counter-notices have been served validly and within the appropriate time. Inventories The fair value of inventories acquired in a business combination is determined based on its estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories. Investments in equity and debt securities The fair value of financial assets at fair value through profit or loss, held-to-maturity investments and available-for-sale financial assets is determined by reference to their quoted bid price at the reporting date. The fair value of held-to-maturity investments is determined for disclosure purposes only. Trade and other receivables The fair value of trade and other receivables, excluding construction work in progress, is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. The fair value is determined for disclosure purposes or when such assets are acquired through a business combination. Derivatives The fair values of forward exchange contracts, options and other derivative contracts are based on their listed market prices, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). 20

4 Use of estimates and judgments (continued) (g) (h) (i) Determination of fair values (continued) Derivatives (continued) The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity and counterparty when appropriate. Contingent consideration The fair value of contingent consideration is measured based on discounted cash flow model. The valuation model considers the present value of expected payment, discounted using a riskadjusted discount rate. The expected payment is determined by considering the possible scenarios of forecast EBITDA or other variables defined on the share purchase agreement, the amount to be paid under each scenario and the probability of each scenario. Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases, the market rate of interest is determined by reference to similar lease agreements. 21

5 Operating segments The Group has six reportable segments, as described below, which are largely organised and managed separately according to nature of products and services provided, distribution channels and profile of customers. Almost each entity included in the Group operates in one specific industry. Accordingly, all the financial statement components of an entity concerned are considered related only to its specific industry. The Group s main segments are as follows: Banking and finance: Entities operating in the banking and finance segment are mainly involved in retail and investment banking, insurance, leasing and factoring businesses. Construction: Entities operating in the construction segment are mainly involved in the constructions of buildings, infrastructure and related civil engineering businesses. Automotive: Entities operating in the automotive segment are exclusively involved in the importation, distribution and retailing of Volkswagen, Audi, Seat, Porsche, Bentley, Scania, Lamborghini and Meiller brand motor vehicles and spare parts and after sales services, and vehicle inspection services in. Tourism: Entities operating in the tourism segment are involved in hotel and marina investments, hotel management, retail services, ticket sales, hotel reservation, and tour/conference organisation services. Media: Entities operating in media segment are involved in broadcasting through TV channels, radios, digital and printed media. Others: Entities operating in other operations segment are mainly involved in real estate, energy, food and beverage and entertainment and several service businesses. Doğuş Holding is included in the other segment. 22

5 Operating segments (continued) 5.1 Geographical segments The Group operates principally in, but also has operations in the Netherlands, Russia, Ireland, Turkish Republic of Northern Cyprus, Malta, Luxembourg, Switzerland, Germany, France, Romania, Morocco, Ukraine, Bulgaria, Libya, Italy, Greece, United Kingdom, Hong Kong, United States, Oman, Qatar, Dubai, Saudi Arabia, Thailand, Iraq, Spain and Croatia. In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the assets. As at and for the years ended 31 December, total geographical sector risk concentrations, both on and off statement of financial position, are presented below: 31 December 2015 Total assets Total liabilities Capital expenditure 23.778.318 14.018.996 982.662 The Netherlands 958.723 348.299 68.739 Malta 80.548 -- -- Switzerland 55.309 70.876 7.782 United Kingdom 459.040 1.127.925 -- Germany 2.043 150.748 -- Croatia 921.181 297.114 77.765 Others 3.156.079 1.632.024 460.181 29.411.241 17.645.982 1.597.129 31 December 2014 Total assets Total liabilities Capital expenditure 24.414.315 12.959.742 1.628.285 The Netherlands 13.580 24.402 8.245 Malta 144.416 -- -- Switzerland 75.485 83.399 8.555 United Kingdom 393.677 1.701.757 4.563 Germany 1.771 119.685 -- Croatia 657.399 227.628 157.379 Others 1.153.358 379.625 22.882 26.854.001 15.496.238 1.829.909 5.2 Major customers As at 31 December 2015 and 2014, there is not any single external customer which comprises more than 10 percent of the Group s consolidated revenue. 23

5 Operating segments (continued) 5.3 Information about the segments The financial information of the joint ventures was included in the segment results, prepared within the reporting framework of the Group s managerial approach, by combined method (as 100%). The below information about the segments was prepared as combined financial information and before consolidation adjustments and eliminations. Banking and 31 December 2015 finance Construction Automotive Tourism Media Others Total Revenue 22.597.859 1.893.086 10.889.161 833.486 650.735 1.647.088 38.511.415 Gross profit 12.948.495 45.103 1.108.563 282.205 17.918 719.888 15.122.172 Operating profit / (loss) (*) 4.761.329 (23.621) 490.001 (79.681) (137.520) 4.121.838 9.132.346 Operating profit / (loss) before net finance cost (*) 4.761.329 (24.336) 536.877 (54.106) 2.468 4.227.420 9.449.652 Profit / (loss) for the period attributable to the owners of the Company excluding non-controlling interests 3.773.207 (90.827) 302.921 (220.594) (342.937) 2.697.423 6.119.193 Other information Total assets 274.837.997 2.523.200 3.979.903 6.346.266 1.677.358 27.361.702 316.726.426 Total liabilities 242.832.307 2.233.679 2.617.020 1.781.698 828.649 11.574.981 261.868.334 31 December 2014 Banking and finance Construction Automotive Tourism Media Others Total Revenue 20.175.430 1.279.605 7.692.702 656.974 749.936 1.016.688 31.571.335 Gross profit 11.201.919 76.835 872.988 234.663 44.735 472.056 12.903.196 Operating profit / (loss) (*) 4.881.558 31.406 391.852 (22.411) (113.337) 71.955 5.241.023 Operating profit / (loss) before net finance cost (*) 4.881.558 32.231 419.675 40.526 (115.441) 187.902 5.446.451 Profit / (loss) for the period attributable to the owners of the Company excluding non-controlling interests 3.814.788 37.975 251.635 (33.645) (306.046) (144.071) 3.620.636 Other information Total assets 243.907.093 1.841.082 2.827.257 4.212.059 1.497.483 21.719.993 276.004.967 Total liabilities 216.651.465 1.494.168 1.590.922 1.349.982 1.636.499 10.973.992 233.697.028 (*) For banking and finance segment, it represents profit before tax. 24

5 Operating segments (continued) 5.3 Information about the segments (continued) The reconciliations of the combined financial information to the amounts reported in the accompanying consolidated financial statements for the years ended 31 December were presented separately as follows: a) Revenue 2015 2014 Combined 38.511.415 31.571.335 Joint ventures (22.815.535) (20.361.296) Consolidation elimination and adjustments (913.282) (837.186) Consolidated 14.782.598 10.372.853 b) Gross profit 2015 2014 Combined 15.122.172 12.903.196 Joint ventures (13.060.831) (11.292.150) Consolidation elimination and adjustments (542.142) (425.630) Consolidated 1.519.199 1.185.416 c) Operating profit 2015 2014 Combined 9.132.346 5.241.023 Joint ventures (4.245.873) (3.661.988) Consolidation elimination and adjustments (4.460.143) (551.790) Consolidated 426.330 1.027.245 d) Profit before net finance cost 2015 2014 Combined 9.449.652 5.446.451 Joint ventures (4.942.403) (2.888.197) Consolidation elimination and adjustments (2.771.770) (1.512.155) Consolidated 1.735.479 1.046.099 e) Profit for the period attributable to the owners of the Company excluding non-controlling interests 2015 2014 Combined 6.119.193 3.620.636 Joint ventures (3.354.802) (2.851.236) Consolidation elimination and adjustments (3.197.232) (708.661) Consolidated (432.841) 60.739 25

5 Operating segments (continued) 5.3 Information about the segments (continued) f) Total assets 31 December 2015 31 December 2014 Combined 316.726.426 276.004.967 Joint ventures (276.023.628) (245.354.135) Consolidation elimination and adjustments (11.291.557) (3.796.831) Consolidated 29.411.241 26.854.001 g) Total liabilities 31 December 2015 31 December 2014 Combined 261.868.334 233.697.028 Joint ventures (243.161.097) (217.191.200) Consolidation elimination and adjustments (1.061.255) (1.009.590) Consolidated 17.645.982 15.496.238 26

5 Operating segments (continued) 5.3 Information about the segments (continued) The below information were prepared on the basis of appropriate accounting policies applied for the subsidiaries, associates and joint ventures. 31 December 2015 Banking and finance Construction Automotive Tourism Media Others Total Revenue Total external revenue -- 1.863.678 10.892.064 664.103 650.735 1.443.376 15.513.956 Intersegment revenue -- 268.210 995 54.006 2.136 406.011 731.358 Net segment revenue -- 1.595.468 10.891.069 610.097 648.599 1.037.365 14.782.598 Gross profit / (loss) -- 75.509 1.110.472 148.851 24.015 160.352 1.519.199 Operating profit / (loss) 369.383 11.883 564.700 (121.392) (119.305) (278.939) 426.330 Operating profit / (loss) before net finance cost 369.383 11.168 600.191 (121.204) (11.926) 887.867 1.735.479 Profit / (loss) for the period attributable to owners of the Company 359.121 (59.680) 270.687 (272.866) (269.846) (460.257) (432.841) Other information Segment assets -- 2.444.333 3.445.211 4.213.986 1.674.877 12.703.627 24.482.034 Investments in equity accounted investees 3.295.202 -- 215.013 711.197 -- 707.795 4.929.207 Total assets 3.295.202 2.444.333 3.660.224 4.925.183 1.674.877 13.411.422 29.411.241 Segment liabilities -- 2.208.643 2.605.755 1.518.412 585.123 10.728.049 17.645.982 Capital expenditure -- 154.966 181.273 790.638 19.389 769.493 1.915.759 Depreciation -- 62.196 37.863 96.279 29.786 108.376 334.500 Non-cash expenses other than depreciation -- (8.903) 116.000 45.826 (10.031) (260.730) (117.838) 27

5 Operating segments (continued) 5.3 Information about the segments (continued) 31 December 2014 Banking and finance Construction Automotive Tourism Media Others Total Revenue Total external revenue -- 1.279.605 7.695.133 520.901 749.936 867.687 11.113.262 Intersegment revenue -- 479.000 361 40.019 3.253 217.776 740.409 Net segment revenue -- 800.605 7.694.772 480.882 746.683 649.911 10.372.853 Gross profit -- (10.949) 875.058 133.833 48.688 138.786 1.185.416 Operating profit / (loss) 923.092 (51.643) 459.862 (21.483) (98.641) (183.942) 1.027.245 Operating profit / (loss) before net finance cost 923.092 (50.818) 469.597 (6.769) (103.276) (185.727) 1.046.099 Profit / (loss) for the period attributable to owners of the Company 912.497 (54.021) 226.436 (68.474) (252.728) (702.971) 60.739 Other information Segment assets 4.148.551 1.675.571 2.315.067 2.999.161 1.498.397 10.240.30 22.877.047 Investments in equity accounted investees 2.915.355 -- 223.230 199.892 -- 638.477 3.976.954 Total assets 7.063.906 1.675.571 2.538.297 3.199.053 1.498.397 10.878.77 26.854.001 Total liabilities -- 1.484.717 1.599.332 972.159 1.232.778 10.207.25 15.496.238 Capital expenditure -- 141.664 127.116 477.244 14.419 1.069.466 1.829.909 Depreciation -- 40.334 30.360 70.353 29.931 55.395 226.373 Non-cash expenses other than depreciation -- (61.535) 78.477 (2.822) 22.812 (110.857) (73.925) 28

5 Operating segments (continued) 5.4 Non-cash (income) / expenses other than depreciation Non-cash (income)/expenses other than depreciation for the year ended 31 December 2015 were as follows: Construction Automotive Tourism Media Others Total Warranty provision -- 75.486 -- -- -- 75.486 Accrued interest and other accruals (15.435) 25.780 1.567 (9.267) 85.875 88.520 Amortisation of other intangible assets 1.944 11.309 24.921 8.845 30.233 77.252 Loss on write-off of property and equipment -- -- 42.441 -- -- 42.441 Provision for and reversal of employee severance indemnity 7.545 2.411 3.324 4.000 18.288 35.568 Provision for doubtful receivables -- 282 1.865 1.315 162 3.624 Reversal of impairment in property and equipment -- (54) (2.246) -- (7.198) (9.498) Fair value change in investment property -- -- (21.895) -- (371.792) (393.687) Recoveries of doubtful receivables -- -- (266) (214) 182 (298) Others (2.957) 786 (3.885) (14.710) (16.480) (37.246) Total (8.903) 116.000 45.826 (10.031) (260.730) (117.838) Non-cash (income)/expenses other than depreciation for the year ended 31 December 2014 were as follows: Construction Automotive Tourism Media Others Total Warranty provision -- 59.908 -- -- -- 59.908 Accrued interest and other accruals (56.873) 10.204 1.961 2.348 36.388 (5.972) Amortisation of other intangible assets 777 8.098 4.161 8.132 19.651 40.819 Provision for and reversal of employee severance indemnity 3.801 2.270 1.957 4.392 8.114 20.534 Provision for doubtful receivables -- -- 742 7.684 784 9.210 Impairment and reversal of impairment in property and equipment -- (5.702) (418) -- (20.068) (26.188) Fair value change in investment property -- -- (9.333) -- (152.680) (162.013) Recoveries of doubtful receivables -- (673) (2.229) (603) (79) (3.584) Others (9.240) 4.372 337 859 (2.967) (6.639) Total (61.535) 78.477 (2.822) 22.812 (110.857) (73.925) 29

6 Revenue For the years ended 31 December, revenue comprised the following: 2015 2014 Domestic sales 13.829.622 10.074.772 Foreign sales 952.976 298.081 14.782.598 10.372.853 7 Cost of sales For the years ended 31 December, cost of sales comprised the following: 2015 2014 Cost of merchandise sold 9.878.418 6.893.085 Cost of construction 1.477.566 775.200 Personnel expenses 457.772 303.567 Broadcasting costs 387.865 467.149 Cost of electricity sold 130.707 89.852 Others 931.071 658.584 13.263.399 9.187.437 30

8 Administrative, selling, marketing and distribution expenses For the years ended 31 December, general and administrative expenses comprised the following: 2015 2014 Personnel expenses 559.611 443.458 Depreciation and amortisation 165.229 142.366 Grants and donations expenses 96.472 13.598 Maintenance and repair expenses 51.612 36.953 Audit and consultancy expenses 44.104 45.304 Rent expenses 32.839 19.903 Taxes and duties other than taxes on income 25.609 18.334 Insurance expenses 11.656 10.903 Provision for employee severance indemnity 10.702 13.090 Executive expenses 9.174 7.022 Electronic data processing expenses 7.921 7.394 Travel expenses 6.468 5.913 Telecommunication expenses 5.723 4.812 Utility expenses 4.832 4.533 Litigation expenses 3.399 6.806 Cleaning expenses 2.927 2.432 Stationery expenses 2.751 2.931 Gasoline expenses 1.141 969 Others 142.035 99.539 1.184.205 886.260 For the years ended 31 December, selling, marketing and distribution expenses comprised the following: 2015 2014 Personnel expenses 131.044 102.114 Advertising and promotion expenses 111.352 110.855 Distribution expenses 97.667 57.777 Rent expenses 37.340 34.312 Customer service expenses 10.239 10.981 Commission expense 1.884 5.270 Others 72.621 73.966 462.147 395.275 31

9 Gains and losses from investing activities For the years ended 31 December, gains from investing activities comprised the following: 2015 2014 Gain on sales of associate / joint venture (*) 1.193.298 -- Gain on sales of subsidiary 110.358 -- Gain on sales of property and equipment 12.541 28.333 Dividend income 1.182 -- 1.317.379 28.333 (*) Gain on sale of shares of associate / joint venture include sale 14,23% of Garanti Bank, 49 % of LPD Holding and Krone. For the years ended 31 December, losses from investing activities comprised the following: 2015 2014 Loss on sales of property and equipment (3.342) (3.768) Goodwill impairment (2.509) (2.532) Loss on sale of subsidiary (899) (2.719) Loss on sale of associates -- (460) Other (1.480) -- (8.230) (9.479) 10 Finance income For the years ended 31 December, finance income comprised the following: 2015 2014 Foreign exchange gains 751.992 256.230 Interest income on bank deposits 46.291 43.502 Other interest and similar items 31.351 16.916 829.634 316.648 11 Finance cost For the years ended 31 December, finance cost comprised the following: 2015 2014 Foreign exchange losses (2.085.854) (562.034) Interest expense on borrowings (693.710) (450.128) Other interest and similar items (66.073) (55.081) (2.845.637) (1.067.243) 32

12 Other operating income and expenses For the years ended 31 December, other operating income comprised the following: 2015 2014 Fair value gain on investment property 393.687 179.931 Service income 27.522 21.440 Foreign exchange gains on trade receivables and payables 23.101 8.340 Commission income 22.026 27.217 Rental income 9.042 13.256 Insurance claim income 8.345 23.909 Reversal of provision for litigation 3.455 11.057 Bargain purchase gain recognised on acquisition 327 18.311 Interest income on trade receivables -- 244 Others 89.540 106.357 577.045 410.062 For the years ended 31 December, other operating expenses comprised the following: 2015 2014 Warranty provision 75.486 59.908 Loss on write-off of property and equipment 42.441 -- Foreign exchange losses on trade receivables and payables 36.452 18.073 After sales services expense 13.172 14.821 Service expenses 9.605 8.512 Legal provision expenses 5.360 9.643 Impairment loss 3.600 14.819 Interest expense on trade receivables 3.183 -- Insurance claim expenses 2.399 20.742 Compensation expenses 500 5.364 Provision expenses 75 474 Decrease in fair value of investment properties -- 17.918 Others 55.280 63.224 247.553 233.498 13 Earnings per share The calculation of basic earnings per share at 31 December 2015 and 2014 was based on the (loss) / profit attributable to ordinary shareholders of TL (432.841) thousand and profit of TL 60.739 thousand and a weighted average number of ordinary shares outstanding of 856.027.050 (31 December 2014: 856.027.050), as follows: 2015 2014 Weighted average number of shares 856.027.050 856.027.050 Profit for the year attributable to owners of the Company ( TL) (432.841) 60.739 Basic profit per share (full TL) (0,51) 0,07 Weighted average number of ordinary shares 856.027.050 856.027.050 33

14 Cash and cash equivalents At 31 December, cash and cash equivalents comprised the following: 2015 2014 Cash at banks 2.385.192 1.674.379 Other liquid assets and cheques 5.077 7.302 Cash on hand 6.973 2.207 2.397.242 1.683.888 15 Other investments, including derivatives As at 31 December, other investments including derivatives comprised the following: 2015 Short-term Long-term Total Financial investments at fair value through profit or loss (*) -- 129.250 129.250 Available-for-sale financial investments 84 29.236 29.320 84 158.486 158.570 2014 Short-term Long-term Total Financial investments at fair value through profit or loss (*) -- 77.582 77.582 Available-for-sale financial investments 84 30.817 30.901 84 108.399 108.483 (*) As of 31 December 2015, the portion of TL 127.472 thousand (31 December 2014: TL 75.726 thousand) of financial investments at fair value through profit or loss comprise investment funds. Available-for-sale financial investments As at 31 December, available-for-sale financial investments comprised the following: 2015 2014 Equity securities 27.442 22.668 Private sector debt securities 1.878 8.233 29.320 30.901 34

16 Investments in equity accounted investees Investments in equity-accounted associates and joint ventures and the Group s share of control are as follows: 31 December 2015 31 December 2014 Associates-equity accounted Carrying value % of ownership Carrying value % of ownership Garanti Bankası (1) 3.295.202 10,00 2.915.355 24,23 VDF Tüketici 89.214 49,00 95.013 49,00 Hedef Medya (2) -- -- 22.026 40,00 Solid Rock 163.563 33,33 -- -- VDF Servis 42.154 49,00 26.425 49,00 Other 17.297 15.676 Joint ventures-equity accounted Azumi Limited 454.272 50,01 350.779 50,01 Ege Turizm 130.987 50,00 130.189 50,00 Boyabat (3) -- 34,00 -- 34,00 Acropolis S.P.A. 130.239 51,00 112.193 51,00 Doğuş Planet 25.007 50,00 24.113 50,00 Krone Doğuş (4) -- -- 20.616 49,00 TÜVTURK Kuzey Güney Consolidated 60.354 33,33 60.464 33,33 Aslancık 14.715 33,33 36.940 33,33 Corpera 336.131 50,00 42.508 50,00 Sele Restaurant Group (2) -- -- 42.012 51,00 L'atelier 48.057 60,00 -- -- HC International SA 63.162 51,00 -- -- Gestin Turizm 11.955 50,00 -- -- Others 46.898 82.645 Total 4.929.207 3.976.954 (1) Group and BBVA have entered into a share purchase agreement dated 19 November 2014 for the sale of shares of Garanti Bank representing 14,23% of the paid-up share capital. At 31 December 2014, shares of the Garanti Bank representing 14,23% has been reclassified as asset held for sale (Note 23). Share transfer has been finalised on 27 July 2015. (2) Please see Note 36. (3) The Group s share of losses in Boyabat, a joint venture of the Group, exceeds its interest in Boyabat, the carrying amount of the investment is reduced below zero and the total carrying value of the investment and share of losses in Boyabat has been reclassified as other non-current liability amounting to TL 128.848 thousand (31 December 2014: TL 47.693 thousand) (4) As a result of share purchase agreement signed between the Group, holding 49% of total share capital of Krone Doğuş Treyler Sanayi ve Ticaret A.Ş. and Fahrzeugwerk Bernard Krone GmbH on 29 January 2015 and necessary legal permissions were acquired and sales transaction has been completed on 8 April 2015. 35

16 Investments in equity accounted investees (continued) The movements in investments in equity accounted investees were as follows: 2015 2014 Balance at 1 January 3.976.954 6.813.426 Share of profit of equity accounted investees 223.991 946.800 Share of other comprehensive income 463.727 186.006 Dividend (195.271) (127.883) Transfer to asset held for sale -- (4.213.292) Changes in equity of joint ventures -- 5.081 Transfer to subsidiaries, net (99.103) (214) Transfer from subsidiary 12.250 -- Rate change effect -- 66.340 Loss making associate classified as non-current liability 128.848 47.693 Sale of shares (4) (20.616) (1.460) Purchase during the year (5) 293.774 172.776 Increase in paid-in capital 144.653 81.681 Balance at 31 December 4.929.207 3.976.954 (4) Sales of shares of Krone Doğuş Treyler Sanayi ve Ticaret A.Ş. and En-moda E Alışveriş ve Ticaret A.Ş. owned the Group representing 49% and 23% of the shares respectively, has been finalized on 8 April 2015 and 11 November 2014. (5) Doğuş Holding has purchased an additional 51% of HC International S.A. on 14 April 2015, 60% of Mad Atelier International B.V. on 6 July 2015 and 33,33% of Solid Rock Property SAS on 7 December 2015. On 16 January 2014, 50% of Ege Turizm and on 18 November 2014, %50 of Corpera have been purchased. 36

16 Investments in equity accounted investees (continued) Share of profit / (loss) of equity accounted investees For the years ended 31 December, share of profit/(loss) of investments in equity accounted investees comprised the following: 2015 2014 Garanti Bank 369.383 923.092 Azumi Limited 37.881 28.900 TÜVTURK Kuzey-Güney Consolidated 31.981 22.460 VDF Servis 15.729 7.899 Acropolis S.P.A (2.501) 389 VDF Tüketici (6.398) 29.265 Aslancık (24.922) (6.764) Doğuş Planet (38.456) (37.335) Boyabat (162.539) (47.693) LPD Holding -- 31.139 Hedef Medya -- 1.927 Krone Doğuş -- (5.742) Sele Restaurant Group -- (2.059) Others 3.833 1.322 Total 223.991 946.800 Share of other comprehensive income / (expense) of equity accounted investees For the years ended 31 December, share of other comprehensive income / (expense) of investments in equity accounted investees comprised the following: 2015 2014 Corpera 194.160 -- Garanti Bank 147.823 121.875 Azumi Limited 86.103 47.165 Boyabat 33.710 -- Acropolis S.P.A 16.006 19.824 Aslancık 1.203 (6) TÜVTURK Kuzey-Güney Consolidated (7.906) (1) Krone Doğuş -- (608) LPD Holding -- (2.234) Others (7.372) (9) Total 463.727 186.006 Dividend income For the years ended 31 December, dividend income comprised the following: 2015 2014 Garanti Bank (137.359) (102.959) Others (57.912) (24.924) Total (195.271) (127.883) 37

16 Investments in equity accounted investees (continued) The table below presents the financial information of the joint ventures and the associates as adjusted to comply with accounting policies adopted by the Group; which is applied before consolidating to the Group with the equity method: 31 December 2015 31 December 2015 Other comprehensive income Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Total revenue Net profit/(loss) Garanti Bank 137.326.242 137.533.767 274.860.009 206.692.422 36.139.885 242.832.307 23.052.767 3.694.657 1.520.818 Azumi Limited 239.153 573.548 812.701 57.535 128.579 186.114 302.941 53.333 172.171 Boyabat 63.452 2.140.629 2.204.081 328.880 2.248.464 2.577.344 288.989 (478.057) 99.147 Acropolis S.P.A 14.442 103.724 118.166 45.752 28.155 73.907 51.902 985 31.383 VDF Tüketici 5.402.289 42.215 5.444.504 5.234.780 466 5.235.246 363.360 31.569 -- Doğuş Planet 90.157 39.441 129.598 79.162 422 79.584 86.350 (76.912) -- TÜVTURK Kuzey- Güney Consolidated 222.631 813.823 1.036.454 207.343 666.628 873.971 1.326.513 95.942 (23.717) Aslancık 16.470 453.839 470.309 113.674 310.393 424.067 62.931 (74.773) 3.609 VDF Servis 319.937 6.823 326.760 249.087 131 249.218 63.533 23.652 -- Corpera 19.379 608.700 628.079 28.891 21.458 50.349 44.201 28 388.319 Others 246.085 326.828 572.913 257.934 46.571 304.505 794.402 15.415 665 31 December 2014 31 December 2014 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Total revenue Net profit/(loss) Other comprehensive income Garanti Bank 118.103.765 126.438.766 244.542.531 177.032.202 39.649.567 216.681.769 20.577.553 3.810.009 508.872 Azumi Limited 64.469 573.770 638.239 74.340 106.883 181.223 188.255 40.109 94.311 Boyabat 75.665 2.140.775 2.216.440 383.663 1.827.077 2.210.740 249.772 (140.270) -- Acropolis S.P.A 8.536 89.311 97.847 32.683 31.509 64.192 47.184 762 38.871 VDF Tüketici 4.146.733 43.148 4.189.881 4.011.939 394 4.012.333 369.974 43.701 333 Doğuş Planet 80.334 27.935 108.269 59.102 941 60.043 49.607 (74.671) 486 TÜVTURK Kuzey- Güney Consolidated 150.135 835.540 985.675 226.260 603.942 830.202 1.166.449 67.615 -- Aslancık 25.245 459.869 485.114 60.275 311.913 372.188 33.728 (20.294) (18) Krone Doğuş 25.072 57.531 82.603 41.194 -- 41.194 61.553 (11.678) (1.241) Hedef Medya 8.422 3.174 11.596 2.323 123 2.446 17.502 4.810 (1.815) VDF Servis 237.628 5.801 243.429 189.462 95 189.557 59.590 16.068 -- Sele Restaurant Group 26.921 8.873 35.794 34.893 3.670 38.563 57.352 (4.037) (2.261) Corpera 33.316 156.949 190.265 177.216 -- 177.216 769 223 -- Others 127.854 387.969 515.823 223.537 47.021 270.558 750.329 3.428 (814) 38

16 Investments in equity accounted investees (continued) The following table summarizes cash and cash equivalents, depreciation and amortisation expenses, interest income and interest expenses of significant joint ventures before the consolidation of eliminations and adjustments: 31 December 2015 Cash and cash equivalents Depreciation and amortisation Interest income Interest expense Garanti Bank 6.802.108 346.837 18.944.036 8.714.031 Azumi Limited 74.058 12.563 116 42 31 December 2014 Cash and cash equivalents Depreciation and amortisation Interest income Interest expense Garanti Bank 6.596.475 307.236 16.519.493 8.169.806 Azumi Limited 34.708 4.322 97 36 Financial Information regarding Garanti Bank and its subsidiaries The following table summarizes the reconciliation of investments in equity of Garanti Bank and its subsidiaries: 2015 2014 Total equity attributable to equity holders of Garanti Bank 31.779.073 27.061.895 Total equity attributable to equity holders of Garanti Bank based on the equity interest of the Group (10,00%) 3.177.907 6.557.097 Goodwill 177.604 424.475 Revaluation surplus and other adjustments -- 144.312 Other consolidation adjustments (60.309) (61.978) Transferred to assets held for sale -- (4.148.551) Investment in equity accounted investees 3.295.202 2.915.355 Financial Information regarding Azumi Limited and its subsidiaries The following table summarizes the reconciliation of investments in equity of Azumi Limited and its subsidiaries: 2015 2014 Total equity attributable to equity holders of Azumi Limited 587.203 452.294 Total equity attributable to equity holders of Azumi Limited based on the equity interest of the Group (50,01%) 293.660 226.192 Goodwill 160.612 124.587 Investment in equity accounted investees 454.272 350.779 39

16 Investments in equity accounted investees (continued) Other significant matters regarding the Joint Ventures are as follows: Impairment testing for goodwill The recoverable amount of goodwill related with Garanti Bank is determined based on their quoted share prices. The valuation of the fair value of equity for Azumi Limited and Acropolis S.P.A. is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Azumi Limited and Acropolis S.P.A. Five-year business plan prepared by management is used for valuation. Key assumptions used in discounted cash flow projections Key assumptions used in calculation of recoverable amounts are average discount rates and terminal growth rates. These assumptions are as follows: Currency Discount rate Terminal growth rate Acropolis S.P.A EUR 5,54 percent 2,00 percent Azumi Limited USD 10,95 percent 2,00 percent 17 Trade receivables and trade payables Short-term trade receivables As at 31 December, short-term trade receivables comprised the following: 2015 2014 Account receivables 1.584.094 1.187.418 Due from customers for contract work (Note 24) 491.591 367.879 Contracts receivable 393.195 107.519 Doubtful receivables 57.779 52.775 Allowance for doubtful receivables (-) (57.779) (52.775) Notes receivables 34.825 41.316 Post dated cheques 49.824 19.809 Other receivables 23.335 38.765 2.576.864 1.762.706 40

17 Trade receivables and trade payables (continued) Long-term trade receivables As at 31 December, long-term trade receivables comprised the following: 2015 2014 Due from customers for contract work (Note 24) 106.108 97.176 Contracts receivable 99.367 91.071 Doubtful receivables 200.000 159.512 Allowance for doubtful receivables (-) (200.000) (159.512) Other receivables -- 26.598 205.475 214.845 As at 31 December 2015, the Group held letters of guarantee amounting to TL 69.408 thousand (31 December 2014: TL 49.253 thousand) as collateral against its receivables. Movements in the allowance for doubtful receivables during the years ended 31 December were as follows: 2015 2014 Balance at the beginning of the year 212.287 195.103 Provision for the year 3.624 9.210 Acquired through business combinations 67 55 Recoveries (298) (3.584) Write-offs (363) (453) Exchange rate differences on foreign currency balances 42.462 11.956 Balance at the end of the year 257.779 212.287 Short-term trade payables As at 31 December, short-term trade payables comprised the following: 2015 2014 Account payables 1.376.464 818.631 Payables related to employee benefits 19.946 16.197 Due to customers for contract work (Note 24) 25.590 2.102 Notes payable 239 148 Others 24.811 20.366 1.447.050 857.444 Long-term trade payables As at 31 December, long-term trade payables comprised the following: 2015 2014 Account payables -- 17.415 Others 340 3.378 340 20.793 41

18 Inventories As at 31 December, inventories comprised the following: 2015 2014 Trading goods 616.179 300.679 Goods in transit 564.317 240.545 Spare parts 137.305 108.764 Raw materials (*) 108.228 60.326 Trading property, net of impairment 1.901 1.901 Other inventory 45.068 49.474 Provision for impairment in the value of inventories (-) (6.043) (6.456) 1.466.955 755.233 (*) As at 31 December 2015 and 2014, raw materials are mainly composed of construction materials in various construction projects of Doğuş İnşaat and food and beverage inventories of the companies of food and beverage segment. The Group has provided provision for damaged and slow-moving items in inventories. The current year inventory provision is included in cost of sales. For the years ended 31 December, movement of provision for diminution in the carrying value of inventories is as follows: 2015 2014 Balance at the beginning of the year 6.456 3.565 Increase during the period 92 2.098 Currency translation differences 24 (9) Reversal of provisions (529) 802 End of the period 6.043 6.456 19 Investment property As at 31 December, investment properties comprised the following: 2015 2014 Investment property 3.186.244 2.525.045 Investment property under construction 2.307.854 1.859.599 5.494.098 4.384.644 19.1 Investment property As at 31 December, the movements of investment property were as follows: 2015 2014 Balance at the beginning of the year 2.525.045 2.311.190 Fair value changes recognised in profit or loss (Note 12) 393.687 162.013 Additions 60.112 31.780 Disposals -- (2.287) Transfer from trading property (Note 18) (*) -- 32.109 Transfer from property and equipments (Note 20) (**) 234.503 -- Transfer to property and equipments (Note 20) (27.103) (9.760) End of the period 3.186.244 2.525.045 (*) Land with undetermined future use which was previously classified as trading property and which was carried at cost has been reassessed in 2014 and reclassified as investment property. (**)As at 31 December 2015, land with undetermined future use which was previously classified as property and equipment was reclassified as investment property. 42

19 Investment property (continued) 19.2 Investment property under construction As at 31 December, the movements of investment property under construction were as follows: 2015 2014 Balance at the beginning of the year 1.859.599 110.560 Additions (*) 116.287 1.609.260 Capitalized interest expense 85.193 60.370 Capitalized foreign currency differences 246.775 80.492 Transfer to investment property in use -- (1.083) End of the period 2.307.854 1.859.599 (*) On 16 May 2013, Doğuş Holding won the tender for privatization of Salıpazarı Port Area. On 18 July 2013, Competition Board decided that Doğuş Holding's acquisition of the Salıpazarı Cruise Harbor, which was previously owned by Denizcilik İşletmeleri Anonim Şirketi, within the scope of its privatization via the "transfer of operating rights" method for a period of 30 years was not subject to authorisation of the Board. Total amount of the tender was paid on 13 February 2014 as TL 1.539.169 thousand (equivalent of USD 702 million). 2015 Level 1 Level 2 Level 3 Total Investment property -- 1.366.261 1.819.983 3.186.244 Total -- 1.366.261 1.819.983 3.186.244 2014 Level 1 Level 2 Level 3 Total Investment property -- 607.410 1.917.635 2.525.045 Total -- 607.410 1.917.635 2.525.045 As at 31 December, fair value of the investment properties is calculated by using the discounted cash flow method and a peer comparison by independent appraisal. Peer comparison method (Level 2) determines recently listed or sold properties in market and takes into consideration of other factors for the adjustment of value based on size of land of property with current condition and location. For current market outlook the appraisers contact with the property sale intermediaries. The following table shows the discounted cash flow valuation technique (Level 3) used in measuring the fair value of investment property, as well as the significant unobservable inputs used. Valuation technique Discounted cash flows: The valuation model considers the present value of net cash flows to be generated from the property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other costs not paid by tenants. The expected net cash flows are discounted using risk-adjusted discount rates. Among other factors, the discount rate estimation considers the quality of a building and its location (prime vs secondary), tenant credit quality and lease terms. Significant unobservable inputs Expected market rental growth, 2,5-6% Occupancy rate (90-100%) Risk-adjusted discount rates (6,8-10%). 43

20 Property and equipment Movements of property and equipment and related accumulated depreciation during the year ended 31 December 2015 were as follows: Acquired through business combinations Transfer to assets held for sale Transfer to assets held for sale Effects of movements in exchange rates Net revaluation change Transfers Sale of 31 Cost 1 January Additions (****) Disposals (**) subsidiary December Land and buildings (*) 4.001.015 55.644 233.154 (22.251) (234.089) 27.103 185.272 47.958 486.948 (30.384) (21) 4.750.349 Furniture and equipment 1.117.104 221.832 24.157 (41.775) -- -- 197.365 14.032 -- -- (14.438) 1.518.277 Leasehold improvements 590.015 318.530 14.431 (17.380) -- -- 1.461.435 10.039 -- -- (1.460) 2.375.610 Motor vehicles 335.890 129.256 893 (106.614) -- -- 75.715 4.891 -- -- (148) 439.883 Construction in progress 1.517.736 584.795 -- (820) -- -- (1.826.160) 7.104 -- (12.057) -- 270.598 Others 15.414 6.210 132 (317) -- -- (1.740) 831 -- -- -- 20.530 Total cost 7.577.174 1.316.267 272.767 (189.157) (234.089) 27.103 91.887 84.855 486.948 (42.441) (16.067) 9.375.247 Acquired through business combinations Transfer to assets held for sale Transfer to assets held for sale (**) Effects of movements in exchange rates Net revaluation change Less: Accumulated depreciation 1 January Additions Disposals Transfers Sale of subsidiary 31 December Buildings (539.384) (64.366) (59.070) 1.698 (414) -- (31.060) (9.442) (18.424) -- 7 (720.455) Furniture and equipment (627.765) (145.245) (14.867) 18.571 -- -- 1.459 (7.926) -- -- 8.352 (767.421) Leasehold improvements (211.284) (74.751) (5.459) 11.988 -- -- (3.013) (1.338) -- -- 226 (283.631) Motor vehicles (64.393) (48.896) (592) 20.893 -- -- (13.884) (454) -- -- 117 (107.209) Others (7.164) (1.242) -- 2 -- -- 1.884 (162) -- -- -- (6.682) Total accumulated depreciation (1.449.990) (334.500) (79.988) 53.152 (414) -- (44.614) (19.322) (18.424) -- 8.702 (1.885.398) Net book value 6.127.184 981.767 192.779 (136.005) (234.503) 27.103 47.273 65.533 468.524 (42.441) (7.365) 7.489.849 Less: Impairment in value (13.574) -- -- 7.252 -- -- -- -- 2.246 -- (4.076) Net carrying value 6.113.610 981.767 192.779 (128.753) (234.503) 27.103 47.273 65.533 468.524 (40.195) (7.365) 7.485.773 (*) As at 31 December 2015, fair value of land and buildings of the Group is appraised by independent third party appraisers using peer comparison and discounted cash flow method. (**) Transfer is mainly comprised of motor vehicle belonging to Körfez Havacılık amounting to TL 41.687 thousand which was previously classified as assets held for sale and which was reclassified property and equipment during the current year. (***) As of 31 December 2015, there are capitalized interest and foreign exchange expenses amount to TL 241.258 thousand in additions related to construction in progress (31 December 2014: TL 150.756 thousand). (****) Includes property and equipment acquired through business combination as disclosed in Note 36 and land belonging to West Mediteranean Holding amounting to TL 37.271 thousand which was accounted as asset purchase. Writenoff on asset Writenoff on asset 44

20 Property and equipment (continued) Movements of property and equipment and related accumulated depreciation during the year ended 31 December 2014 were as follows: Acquired through business combinations Effects of movements in exchange rates Net revaluation change Transfer to assets held Cost 1 January Additions Disposals for sale (**) Transfers (***) 31 December Land and buildings (*) 3.401.828 78.115 203.971 (63.456) -- 95.229 (7.174) 292.502 4.001.015 Furniture and equipment 930.608 177.976 18.709 (28.385) -- 18.765 (569) -- 1.117.104 Leasehold improvements 480.759 90.976 16.326 (18.378) -- 23.031 (2.699) -- 590.015 Motor vehicles 139.958 89.855 4.307 (36.446) (12.768) 149.299 1.685 -- 335.890 Construction in progress 806.681 792.600 46.838 (3.365) -- (124.770) (248) -- 1.517.736 Others 11.788 4.938 368 (1.644) -- 13 (49) -- 15.414 Total cost 5.771.622 1.234.460 290.519 (151.674) (12.768) 161.567 (9.054) 292.502 7.577.174 Acquired through business combinations Effects of movements in exchange rates Net revaluation change Less: Accumulated depreciation 1 January Additions Disposals Transfer to assets held for sale Transfers 31 December Buildings (494.127) (56.592) (6.529) 2.200 -- (57) 1.412 14.309 (539.384) Furniture and equipment (540.978) (101.247) (7.989) 22.292 -- (21) 178 0 (627.765) Leasehold improvements (168.756) (47.293) (6.442) 10.374 -- -- 833 0 (211.284) Motor vehicles (54.464) (20.446) (2.405) 13.460 -- 68 (606) 0 (64.393) Others (8.236) (795) (146) 1.951 -- 10 52 0 (7.164) Total accumulated depreciation (1.266.561) (226.373) (23.511) 50.277 -- 1.869 14.309 (1.449.990) Net book value 4.505.061 1.008.087 267.008 (101.397) (12.768) 161.567 (7.185) 306.811 6.127.184 Less: Impairment in value (39.762) -- -- 26.188 -- -- -- -- (13.574) Net carrying value 4.465.299 1.008.087 267.008 (75.209) (12.768) 161.567 (7.185) 306.811 6.113.610 (*) As at 31 December 2014, fair value of land and buildings of the Group is appraised by independent third party appraisers using peer comparison method. (**) The Group has transferred one airplane from motor vehicle account to assets held for sale account. (***)Transfers are mainly comprised of Automative and Tourism investments amounting to TL 67.550 thousand and TL 73.910 thousand. The Group s land and buildings are revalued for the purpose of the consolidated financial statements. Independent third party appraisers conduct the appraisals periodically on the basis of fair market value. As at 31 December 2015, the revaluation surplus, net of non-controlling interests and deferred taxes, amounting to TL 2.270.258 thousand including the fair value differences of investment and trading properties till the date of the use of property change from own use and the fair value differences of land and buildings until reclassified as asset held for sale (31 December 2014: TL 1.565.559 thousand) was recognised in other comprehensive income, and presented in revaluation surplus account within the equity. 45

20 Property and equipment (continued) Had there been no revaluation on land and buildings, the balances of land and buildings as at 31 December would have been as follows: Historical cost Accumulated Net Book Value 31 December 2015 3.226.796 (471.505) 2.755.291 31 December 2014 2.747.889 (324.432) 2.423.457 21 Intangible assets and goodwill As at 31 December, intangible assets and goodwill comprised the following: 2015 2014 Goodwill 908.232 914.591 Intangible assets 1.525.455 1.184.413 2.433.687 2.099.004 21.1 Goodwill As at 31 December, the movements in goodwill were as follows: 2015 2014 Balance at the beginning of the year 914.591 754.833 Acquisition during the year (Note 36) 51.639 190.928 Adjustment of goodwill previously recognised as provisional (*) 81.792 (28.134) Lacivert -- (839) Pozitif 306 (28.887) Sait -- 1.592 Günaydın 69.930 -- Tenos 5.493 -- Villa Dubrovnik 6.063 -- Transfer to intangible assets (**) (104.635) -- Dalmacija and Borik (89.509) -- D Marin Göcek (14.498) -- Marina Sibenik (628) -- Disposals (31.206) -- Itsumi (1.106) -- Enformasyon (30.100) -- Goodwill impairment Star TV (*) (formerly, named as Kapital Radyo) (5.041) -- Adjustments for currency translation 1.092 (3.036) Balance at the end of the year 908.232 914.591 (*) Based on revision works on the independent valuation report regarding the fair value of intangible assets are revised in the current period. (**)Considering that marinas operated by the Group have concessions for a limited number of years, the Group has reclassified goodwill amounting to TL 104.635 thousand related with D Marin Göcek, Dalmacija, Marina Sibenik and Borik to other intangible assets and began to recognise amortisation over the total of respective concession periods. 46

21 Intangible assets and goodwill (continued) 21.1 Goodwill (continued) As at 31 December, goodwill comprised the following: 47 Shares acquired % Cumulative adjustment for currency translation 31 December 2015 net amount 31 December 2014 net amount Entity Acquisition cost Net asset fair value Purchase date Group share Günaydın 318.518 94.941 Aug 2014 70,00 66.459 -- 252.059 182.129 Star TV 596.234 405.110 Nov 2011 99,93 404.810 -- 191.424 191.424 Doors Holding 259.929 159.558 Dec 2012 74,25 118.472 2.933 144.389 143.297 NTV Radyo 98.877 12.081 Apr 2004 97,00 11.719 -- 87.158 87.158 Maça Kızı 58.236 15.926 Nov 2013 60,00 9.556 -- 48.680 48.680 Sele Restaurant Group 54.625 24.061 Apr 2015 67,00 16.121 -- 38.504 -- Pozitif Companies 46.598 22.173 Aug 2013 80,00 17.738 -- 28.860 28.554 Doğuş İnşaat 89.076 1.491.894 Dec 2006 4,09 61.093 -- 27.983 27.983 Etiler Turistik 28.112 15.182 Aug 2013 75,00 11.386 -- 16.726 16.726 D Et 21.859 15.179 Apr 2012 51,00 7.741 -- 14.118 14.118 Tenos 67.657 55.845 May 2014 100,00 55.845 -- 11.812 6.319 Hedef Medya 43.267 55.010 Mar 2015 60,00 33.006 -- 10.261 -- Villa Dubrovnik 80.425 82.780 Apr 2014 88,17 72.987 -- 7.437 1.374 Sait Balıkçılık 8.061 5.062 Dec 2013 60,00 3.037 -- 5.024 5.024 Meto Turizm 8.385 4.897 Aug 2013 75,00 3.673 -- 4.712 4.712 Lacivert 9.145 5.971 May 2013 75,00 4.478 -- 4.667 4.667 Star TV (*) (formerly, named as Kapital Radyo) 9.246 72 Dec 2007 97,00 70 -- 4.135 9.176 LPM 1.461 (1.413) Feb 2015 100,00 (1.413) -- 2.874 -- Kivahan 3.619 1.509 Apr 2012 51,00 770 -- 2.849 2.849 DOAŞ 2.735 -- Dec 2006 50,00 -- -- 2.735 2.735 Aresta 5.207 5.637 Dec 2012 60,00 3.382 -- 1.825 1.825 Dalmacija 127.175 53.399 Apr 2012 100,00 53.399 -- -- 89.057 Enformasyon 40.091 10.783 July 2003 70,00 7.548 -- -- 30.100 D Marin Göcek 54.867 40.369 Dec 2010 100,00 40.369 -- -- 14.498 Itsumi 2.230 2.247 Jan 2014 50,00 1.124 -- -- 1.106 Marina Sibenik 16.914 45.239 July 2011 36,00 16.286 -- -- 628 Borik 2.834 2.384 Apr 2012 100,00 2.384 -- -- 452 2.933 908.232 914.591 (*) Kapital Radyo merged with Star TV on 29 June 2012.

21 Intangible assets and goodwill (continued) 21.1 Goodwill (continued) Impairment testing for goodwill The Group performs annual impairment tests for goodwill and other intangible assets that have indefinite useful life, together in each entity. The recoverable amount of goodwill related with DOAŞ are determined based on their quoted share prices. The valuations of the fair value of equities of NTV Radyo is performed internally. The income approach (discounted cash flow method) is used to determine the fair value of equities. 5-year business plan prepared by management is used for valuation of NTV Radyo. The valuation of the fair value of equity for Doğuş İnşaat is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Doğuş İnşaat. 7-year business plan prepared by management is used for valuation. The Group considers business plans developed during the life of the construction contracts in progress is more appropriate for valuation. The valuation of the fair value of equity for Star TV is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Star TV. 5-year business plan prepared by management is used for valuation. The valuation of the fair value of equity for Doors Holding is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Doors Holding. 5-year business plan prepared by management is used for valuation. The valuations of the fair value of equities of Kivahan, D-Et, Aresta, Mezzaluna, Lacivert, Sait Balıkçılık, Etiler Turistik, Meto Turizm and Afiyet Olsun are performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equities of Kivahan, D-Et, Aresta, Mezzaluna, Lacivert, Sait Balıkçılık, Etiler, Meto and Afiyet Olsun. 5-year business plan prepared by management is used for valuations. The valuation of the fair value of equity for Pozitif companies is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Pozitif Arena. 43-year business plan prepared by management is used for valuation. Group finds more appropriate to use of business plans prepared during the life of the concession rights which Pozitif Arena is the owner for determining the forward estimates. 10-year business plan prepared by the management has been used for the valuation of Pozitif Müzik and Pozitif Yapım. The valuation of the fair value of equity for Maça Kızı companies is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Maçakızı 9-year business plan prepared by management is used for valuation. The valuation of the fair value of equity for Günaydın companies is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Günaydın 5-year business plan prepared by management is used for valuation. The valuation of the fair value of equity for Villa Dubrovnik companies is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Villa Dubrovnik 9-year business plan prepared by management is used for valuation. 48

21 Intangible assets and goodwill (continued) 21.1 Goodwill (continued) Impairment testing for goodwill (continued) The valuation of the fair value of equity for Argos in Cappadocia companies is performed by an independent valuation company. The income approach (discounted cash flow method) is used to determine the fair value of equity of Argos in Cappadocia 9-year business plan prepared by management is used for valuation. The fair value of Hedef Medya, LPM, K&G Medmarinas Management S.A., Sele Restaurant Group and Marina Barcelona 92 S.A. have been determined provisionally pending completion of valuation. Key assumptions used in discounted cash flow projections Key assumptions used in calculation of recoverable amounts are average discount rates and terminal growth rates. Discount rates were determined by currency used in discounted cash flow. These assumptions are as follows: Currency Discount rate Terminal growth rate Doğuş İnşaat USD percent 8.57 percent 2.00 Kapital Radyo TL percent 13.99 percent 4.00 NTV Radyo USD percent 10.87 percent 2.00 Star TV TL percent 13.99 percent 1.00 Doors Holding TL percent 15.52 percent 2.00 Kivahan TL percent 16.50 percent 2.00 D-Et USD percent 5.40 percent 2.00 Aresta TL percent 11.40 percent 2.00 Mezzaluna TL percent 11.40 percent 2.00 Lacivert TL percent 13.50 percent 2.00 Sait Balıkçılık TL percent 14.40 percent 2.00 Etiler Turistik, Meto Turizm and Afiyet Olsun TL percent 13.70 percent 2.00 Maça Kızı USD percent 11.00 percent 2.00 Pozitif Arena USD percent 6.00 -- Pozitif Yapım USD percent 11.01 percent 2.00 Pozitif Müzik USD percent 5.50 percent 2.00 Günaydın TL percent 16.40 percent 1.00 Villa Dubrovnik EUR percent 6.16 percent 2.00 Argos in Cappadocia USD percent 6.78 percent 2.00 Discount rates used in discounted cash flows are the weighted average cost of capital ( WACC ) of the relevant entities. As a result of the impairment testing on entity basis, no impairment loss is recognised during the year ended 31 December 2015. 49

21 Intangible assets and goodwill (continued) 21.2 Intangible assets other than goodwill Movements of intangible assets other than goodwill and related accumulated amortisation during the year ended 31 December 2015 were as follows: Acquired through business combinations Disposals Transfers Effects of movements in exchange rates Sale of 31 Cost 1 January Additions subsidiary December Concession rights 94.743 -- 228.500 -- 113.794 18.094 -- 455.131 Concession rights-d Marin Göcek (a) 20.454 -- -- -- 14.498 -- -- 34.952 Concession rights- Dalmacija and Borik (c) 60.465 -- -- -- 89.509 17.131 -- 167.105 Concession rights Pozitif Arena (h) 13.824 -- -- -- -- -- -- 13.824 Concession rights K&G (Note 36.3) -- -- 34.113 -- 9.159 963 -- 44.235 Concession rights Marina Sibenik -- -- -- -- 628 -- -- 628 Concession rights MB 92 (Note 36.5) -- -- 194.387 -- -- -- -- 194.387 Customer relationship 7.136 -- 56.981 -- -- 571 -- 64.688 Customer relationship-d Marin Göcek (a) 1.890 -- -- -- -- -- -- 1.890 Customer relationship Dalmacija and Borik (c) 4.512 -- -- -- -- 571 -- 5.083 Customer Relationship-Maça Kızı 734 -- -- -- -- -- -- 734 Customer Relationship-Hedef Medya (Note 36.1) -- -- 56.981 -- -- -- -- 56.981 Brand name 655.828 -- 33.536 -- (118.435) -- (2.658) 568.271 Brand name - Star TV 232.429 -- -- -- -- -- -- 232.429 Brand name - Nusr-et (d) 17.207 -- -- -- -- -- -- 17.207 Brand name - Kivahan (e) 1.677 -- -- -- -- -- -- 1.677 Brand name - Go Mongo (g) 6.509 -- -- -- -- -- -- 6.509 Brand name - Kitchenette (f) 60.443 -- -- -- -- -- -- 60.443 Brand name - Da Mario (f) 13.804 -- -- -- -- -- -- 13.804 Brand name - Gina (f) 11.341 -- -- -- -- -- -- 11.341 Brand name - Vogue (f) 11.483 -- -- -- -- -- -- 11.483 Brand name - Anjelique (f) 9.645 -- -- -- -- -- -- 9.645 Brand name - Tom's Kitchen (f) 9.884 -- -- -- -- -- -- 9.884 Brand name - Mezzaluna 5.887 -- -- -- -- -- -- 5.887 Brand name - Lacivert 7.385 -- -- -- -- -- -- 7.385 Brand name - Ulus 29 (i) 12.976 -- -- -- -- -- -- 12.976 Brand name - Çubuklu 29 (i) 4.217 -- -- -- -- -- -- 4.217 Brand name - Maki 29, Alaçatı 29 (i) 2.839 -- -- -- -- -- -- 2.839 Brand name - Maça Kızı 2.955 -- -- -- -- -- -- 2.955 Brand name - Sait 4.053 -- -- -- -- -- -- 4.053 Brand name Itsumi (Note 36.6) 2.658 -- -- -- -- -- (2.658) -- Brand name Villa Dubrovnik (Note 36.7) 7.332 -- -- -- -- -- -- 7.332 Brand name Argos in Cappadocia (Note 36.8) 3.121 -- -- -- -- -- -- 3.121 Brand name Günaydın (Note 36.10) 210.727 -- -- -- (118.435) -- -- 92.292 Brand name Pozitif (h) 17.256 -- -- -- -- -- -- 17.256 Brand name Sele Group (Note 36.4) -- -- 33.536 -- -- -- -- 33.536 Broadcasting rights 277.111 -- -- -- 2.532 -- 18 279.661 Broadcasting rights - A Yapım (b) 139.236 -- -- -- -- -- -- 139.236 Broadcasting rights - Star TV 137.875 -- -- -- 2.532 -- 18 140.425 Content library (movies and series) - Star TV 20.365 -- -- -- -- -- -- 20.365 Franchise network - Kitchenette (f) 6.913 -- -- -- -- -- -- 6.913 Sponsorship contract (f ) 74.887 -- -- -- -- -- -- 74.887 Other intangible assets 148.124 116.205 6.993 (4.504) -- 1.176 (5.278) 262.716 Total cost 1.285.107 116.205 326.010 (4.504) (2.109) 19.841 (7.918) 1.732.632 50

21 Intangible assets and goodwill (continued) 21.2 Intangible assets (continued) Current year amortisation Acquired through business combinations Disposals Transfers Effects of movements in exchange rates Sale of 31 Less: Accumulated amortisation 1 January subsidiary December Concession rights 6.199 7.748 34.071 -- -- -- -- 48.018 Concession rights-d Marin Göcek (a) 1.334 830 -- -- -- -- -- 2.164 Concession rights- Dalmacija and Borik (c) 4.001 4.654 -- -- -- -- -- 8.655 Concession rights - Pozitif Arena (h) 864 691 -- -- -- -- -- 1.555 Concession rights- Marina Sibenik - K&G -- 1.573 1.985 -- -- -- -- 3.558 Concession rights- MB 92 (Note 36.5) -- 32.086 -- -- -- -- 32.086 Customer relationship 2.125 6.200 -- -- -- -- -- 8.325 Customer relationship-d Marin Göcek (a) 1.248 64 -- -- -- -- -- 1.312 Customer relationship-dalmacija and Borik (c) 730 291 -- -- -- -- -- 1.021 Customer Relationship-Maça Kızı 147 147 -- -- -- -- -- 294 Customer Relationship Hedef Medya (Note 36.1) -- 5.698 -- -- -- -- -- 5.698 Content library (movies and series) - Star TV 12.219 4.073 -- -- -- -- -- 16.292 Franchise network - Kitchenette (f) 1.402 701 -- -- -- -- -- 2.103 Sponsorship contracts (f) 14.242 7.576 -- -- -- -- -- 21.818 Other intangible assets 64.507 50.954 4.075 -- (4.315) -- (4.600) 110.621 Total accumulated amortisation 100.694 77.252 38.146 -- (4.315) -- (4.600) 207.177 Net carrying value 1.184.413 38.593 287.864 (4.504) 2.206 19.841 (3.318) 1.525.455 51

21 Intangible assets and goodwill (continued) 21.2 Intangible assets (continued) Movements of intangible assets other than goodwill and related accumulated amortisation during the year ended 31 December 2014 were as follows: Acquired through business combinations Effects of movements in exchange rates 31 December Cost 1 January Additions Disposals Impairment Concession rights 63.700 -- 22.021 -- 9.022 -- 94.743 Concession rights-d Marin Göcek (a) 20.454 -- -- -- -- -- 20.454 Concession rights- Dalmacija and Borik (c) 43.246 -- 8.197 -- 9.022 -- 60.465 Concession rights Pozitif Arena (h) -- -- 13.824 -- -- -- 13.824 Customer relationship 6.357 -- -- -- 779 -- 7.136 Customer relationship-d Marin Göcek (a) 1.890 -- -- -- -- -- 1.890 Customer relationship-dalmacija and Borik (c) 3.733 -- -- -- 779 -- 4.512 Customer Relationship-Maça Kızı 734 -- -- -- -- -- 734 Brand name 414.734 -- 241.094 -- -- -- 655.828 Brand name - Star TV 232.429 -- -- -- -- -- 232.429 Brand name - Nusr-et (d) 17.207 -- -- -- -- -- 17.207 Brand name - Kivahan (e) 1.677 -- -- -- -- -- 1.677 Brand name - Go Mongo (g) 6.509 -- -- -- -- -- 6.509 Brand name - Kitchenette (f) 60.443 -- -- -- -- -- 60.443 Brand name - Da Mario (f) 13.804 -- -- -- -- -- 13.804 Brand name - Gina (f) 11.341 -- -- -- -- -- 11.341 Brand name - Vogue (f) 11.483 -- -- -- -- -- 11.483 Brand name - Anjelique (f) 9.645 -- -- -- -- -- 9.645 Brand name - Tom's Kitchen (f) 9.884 -- -- -- -- -- 9.884 Brand name - Mezzaluna 5.887 -- -- -- -- -- 5.887 Brand name - Lacivert 7.385 -- -- -- -- -- 7.385 Brand name - Ulus 29 (i) 12.976 -- -- -- -- -- 12.976 Brand name - Çubuklu 29 (i) 4.217 -- -- -- -- -- 4.217 Brand name - Maki 29, Alaçatı 29 (i) 2.839 -- -- -- -- -- 2.839 Brand name - Maça Kızı 2.955 -- -- -- -- -- 2.955 Brand name - Sait 4.053 -- -- -- -- -- 4.053 Brand name Itsumi (Note 36.6) -- -- 2.658 -- -- -- 2.658 Brand name Villa Dubrovnik (Note 36.7) -- -- 7.332 -- -- -- 7.332 Brand name Argos in Cappadocia (Note 36.8) -- -- 3.121 -- -- -- 3.121 Brand name Günaydın (Note 36.10) 210.727 -- 210.727 Brand name Pozitif (h) -- -- 17.256 -- -- -- 17.256 Broadcasting rights 279.643 -- -- -- -- (2.532) 277.111 Broadcasting rights - A Yapım (b) 139.236 -- -- -- -- -- 139.236 Broadcasting rights - Star TV 140.407 -- -- -- -- (2.532) 137.875 Content library (movies and series) - Star TV 20.365 -- -- -- -- -- 20.365 Franchise network - Kitchenette (f) 6.913 -- -- -- -- -- 6.913 Sponsorship contract (f) and (Note 36.12) 62.747 -- 12.140 -- -- -- 74.887 Other intangible assets 96.656 52.211 975 (2.237) 519 -- 148.124 Total cost 951.115 52.211 276.230 (2.237) 10.320 (2.532) 1.285.107 Less: Accumulated amortisation Concession rights 3.332 2.488 -- -- 379 -- 6.199 Concession rights-d Marin Göcek (a) 1.248 86 -- -- -- -- 1.334 Concession rights- Dalmacija and Borik (c) 2.084 1.538 -- -- 379 -- 4.001 Concession rights- Pozitif Arena (h) -- 864 -- -- -- -- 864 Customer relationship 1.088 965 -- -- 72 -- 2.125 Customer relationship-d Marin Göcek (a) 710 538 -- -- -- -- 1.248 Customer relationship-dalmacija and Borik (c) 378 280 -- -- 72 -- 730 Customer Relationship-Maça Kızı -- 147 -- -- -- -- 147 Content library (movies and series) - Star TV 7.283 4.936 -- -- -- -- 12.219 Franchise network - Kitchenette (f) 524 878 -- -- -- -- 1.402 Sponsorship contracts (f) 4.758 9.484 -- -- -- -- 14.242 Other intangible assets 44.819 22.068 734 (3.072) (42) -- 64.507 Total accumulated amortisation 61.804 40.819 734 (3.072) 409 100.694 Net carrying value 889.311 11.392 275.496 835 9.911 (2.532) 1.184.413 52

21 Intangible assets and goodwill (continued) 21.2 Intangible assets (continued) a) According to share transfer agreement dated 27 October 2009, the Group decided to purchase D Marin Göcek from Turkon Holding Anonim Şirketi. On 7 December 2010, the share transfer was finalised with a closing agreement and the Group obtained control by acquiring 100 percent of shares and voting rights in D Marin Göcek. Under IFRS 3, customer relationships amounting to TL 1.890 thousand and concession rights amounting to TL 20.454 thousand were recognised as intangible assets arising from the acquisition of D Marin Göcek at the date of acquisition. During the year 2015, TL 14.438 thousand which was previously classified as goodwill has been reclassified as other intangible assets. b) Following the tender organised by Saving Deposits Insurance Fund on 18 June 2008; the transfer of the commercial and economic assets of Kral TV and Kral FM to A Yapım Televizyon Programcılık A.Ş. ( A Yapım ), a consolidated entity operating in media business, was started and Competition Authority approvals were obtained. Radio Television Supreme Council approved the process and A Yapım took over Kral TV and Kral FM on 16 October 2008 and recognised the amounts paid as broadcasting rights under intangible assets. c) With the share purchase agreement dated 20 April 2012, the Group has decided to purchase 100 percent of shares in Marina Dalmacija d.o.o. and Marina Borik d.o.o. from International Seaport AG. On 30 April 2012, the share transfer was finalised. According to IFRS 3, TL 3.733 thousand and concession rights amounting to TL 43.246 thousand were recognised as intangible assets arising at the date of acquisition with purchase. During the year 2015, TL 89.509 thousand which was previously classified as goodwill has been reclassified as other intangible assets. d) With the share transfer agreement dated 17 April 2012, the Group purchased 51 percent of shares of D Et from CNG Turizm Gıda İthalat İhracat Limited Şirketi and the Group obtained control and 51 percent voting rights in D Et. According to IFRS 3, brand name, amounting to TL 17.207 thousand has been recognised as an intangible asset at the acquisition date. e) With the share transfer agreement dated 13 April 2012, the Group has decided to purchase 51 percent of shares at Kivahan. On 17 April 2012, the share transfer was finalised and the Group obtained control by acquiring 51 percent of shares and voting rights in Kivahan. According to IFRS 3, brand name, amounting to TL 1.677 thousand has been recognised as an intangible asset at the acquisition date. f) On 14 November 2012, the Group signed a share purchase agreement to acquire 74.25 percent shares of Doors Holding A.Ş. On 26 December 2012, the share transfer was finalised and the Group obtained control and 74.25 percent voting rights in Doors Holding A.Ş. According to IFRS 3, TL 186.743 thousand worth of Kitchenette, Da Mario, Gina, Vogue, Anjelique and Tom's Kitchen brands, sponsorship contracts and Kitchenette franchise network values at the acquisition date have been recognized as intangible asset. g) On 16 October 2012, the Group signed a share purchase agreement to purchase 60 percent of shares in Aresta Gıda. On 5 December 2012, the share transfer was finalised and the Group obtained control and 60 percent voting rights in Aresta Gıda. According to IFRS 3, brand name, amounting to TL 6.509 thousand has been recognised as an intangible asset at the acquisition date. h) On 28 August 2013, the Group signed a share purchase agreement to purchase 80 percent of shares in Pozitif Müzik, Pozitif Yapım ve Pozitif Arena. According to IFRS 3, Babylon brand name, amounting to TL 17.256 thousand, sponsorship contract, amounting to TL 12.140 thousand and concession right Arena (VW Arena), amounting to TL 13.824 thousand has been recognised as an intangible asset at the acquisition date. i) On 2 August 2013, the Group signed a share purchase agreement to purchase 75 percent of shares in Meto Turizm, Etiler Turistik ve Afiyet Olsun. According to IFRS 3, brand name, amounting to TL 20.032 thousand has been recognised as an intangible asset at the acquisition date. 53

22 Taxation In, corporate income tax is levied at the rate of 20 percent (31 December 2014: 20 percent) on the statutory corporate income tax base, which is determined by modifying accounting income for certain exclusions and allowances for tax purposes. According to the Corporate Tax Law, 75 percent of the capital gains arising from the sale of properties and investments owned for at least two years are exempted from corporate tax on the condition that such gains are reflected in the equity until the end of the fifth year following the sale. The remaining 25 percent of such capital gains are subject to corporate tax. There is also a withholding tax on the dividends paid and is accrued only at the time of such payments. The withholding tax rate on the dividend payments other than the ones paid to the nonresident institutions generating income in through their operations or permanent representatives and the resident institutions is 15 percent. In applying the withholding tax rates on dividend payments to the non-resident institutions and the individuals, the withholding tax rates covered in the related Double Tax Treaty Agreements are taken into account. Appropriation of retained earnings to capital is not considered as profit distribution and therefore is not subject to withholding tax. The transfer pricing law is covered under Article 13 disguised profit distribution via transfer pricing of the Corporate Tax Law. The General Communiqué on disguised profit distribution via transfer pricing dated 18 November 2007 sets details about implementation. If a tax payer enters into transactions regarding sale or purchase of goods and services with related parties, where the prices are not set in accordance with arm s length basis, then related profits are considered to be distributed in a disguised manner through transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as a tax deductible for corporate income tax purposes. In, the tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, provision for taxes shown in the consolidated financial statements reflects the total amount of taxes calculated on each entity that are included in the consolidation. Under the Turkish taxation system, tax losses can be carried forward to be offset against future taxable income for up to five years. Tax losses cannot be carried back. In, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns within four months following the close of the accounting year to which they relate. Tax returns are open for five years from the beginning of the year that follows the date of filing during which time the tax authorities have the right to audit tax returns, and the related accounting records on which they are based, and may issue re-assessments based on their findings. Tax applications for foreign subsidiaries and joint ventures of the Group The Netherlands In the Netherlands, corporate income tax is levied at the rate of 20 percent (31 December 2014: 20 percent) for tax profits up to Euro 200.000 and 25 percent (31 December 2014: 25 percent) for the excess part over this amount on the worldwide income of resident companies, which is determined by modifying accounting income for certain exclusions and allowances for tax purposes for the related year. A unilateral decree for the avoidance of double taxation provides relief for resident companies from Dutch tax on income, such as foreign business profits derived through a permanent establishment abroad, if no tax treaty applies. There is an additional dividend tax of 5 percent computed only on the amounts of dividend distribution at the time of such payments. 54

22 Taxation (continued) Tax applications for foreign subsidiaries and joint ventures of the Group (continued) The Netherlands (continued) Under the Dutch taxation system, tax losses can be carried forward for nine years to offset against future taxable income. Tax losses can be carried back to one prior year. Companies must file their tax returns within nine months following the end of the tax year to which they relate, unless the company applies for an extension (normally an additional nine months). Tax returns are open for five years from the date of final assessment of the tax return during which time the tax authorities have the right to audit tax returns, and the related accounting records on which they are based, and may issue re-assessments based on their findings. Iraq As at 31 December 2015, enacted corporation tax rate is 15 percent (31 December 2014: 15 percent) for the entities registered in Iraq according to local tax law. Switzerland As at 31 December 2015, enacted corporation tax rate is 22,8 percent (31 December 2014: 22,8 percent) for the subsidiaries registered in Switzerland according to local tax law. According to the Tax Procedural Law in Switzerland, statutory losses can be carried forward maximum for seven years. Qatar As at 31 December 2015, enacted corporation tax rate is 10 percent (31 December 2014: 10 percent) for the subsidiaries registered in Qatar according to local tax law. Morocco The applicable corporate tax rate in Morocco is 30 percent (31 December 2014: 30 percent). Tax losses can be carried forward to offset against future taxable income for five years. Where the loss includes a claim for depreciation, that portion can be carried forward for indefinitely. Saudi Arabia As at 31 December 2015, enacted corporation tax rate is 20 percent for the entities registered in Saudi Arabia according to local tax law (31 December 2014: 20 percent). Croatia As at 31 December 2015, enacted corporation tax rate is 20 percent for the entities registered in Croatia according to local tax law (31 December 2014: 20 percent). Greece As at 31 December 2015, enacted corporation tax rate is 29 percent for the entities registered in Greece according to local tax law (31 December 2014: 26 percent). United Kingdom As at 31 December 2015, enacted corporation tax rate is 20 percent for the entities registered in the United Kingdom according to local tax law (31 December 2014: 21 percent). 55

Doğuş Holding Anonim Şirketi ve Bağlı Ortaklıkları 31 December 2015 Tarihi İtibariyle ve Aynı Tarihte Sona Eren Yıla Ait Konsolide Finansal Tablolara Ait Dipnotlar (Tutarlar aksi belirtilmedikçe bin Turkish Lira ( TL ) olarak ifade edilmiştir). 22 Taxation (continued) 22.1 Tax recognised in profit or loss Income tax expense for the years ended 31 December comprised the following items: 2015 2014 Current corporation and income taxes 106.378 49.881 Deferred tax (benefit) / expense (25.098) 121.887 Total income tax expense 81.280 171.768 Reconciliation of effective tax rate The reported income tax expense for the years ended 31 December are different than the amounts computed by applying statutory tax rate to profit before tax as shown in the following reconciliation: 2015 2014 Amount % Amount % Reported profit before taxation (280.524) 295.504 Taxes on reported profit per statutory tax rate 56.105 (20,00) (59.101) (20,00) Permanent differences: Disallowable expenses (34.297) (12,00) (13.718) (4,64) Tax exempt income 10.142 (4,00) 6.156 2,08 Effect of share of profit of equity-accounted investees 44.798 16,00 189.360 64,08 Current-year losses for which no deferred tax asset is recognised (215.565) 77,00 (115.503) (39.09) Reversal of tax effect of previously recognised tax losses (31.854) (11,00) (50.235) (17,00) Differences related to investment property exemption 51.850 (18,00) 2.133 0,72 Deferred tax related to assets held for sale -- -- (136.558) (46,21) Others, net 37.541 41,00 5.698 1,93 Tax (expense) / benefit (81.280) (171.768) 22.2 Taxes payable on income In accordance with the tax legislation in, tax payments that are made in advance during the year are being deducted from the total final tax liability of the fiscal year. Accordingly, the taxation charge on income is not equal to the final tax liability appearing on the consolidated statement of financial position. Taxes payable on income as at 31 December comprised the following: 2015 2014 Total tax expense / (benefit) 81.280 171.768 Add: Taxes carried forward 12.255 807 Add: Current taxes recognised in other comprehensive income (28.010) 5.163 Add: Deferred taxes on taxable temporary differences 25.098 (121.887) Less: Corporation taxes paid in advance (79.915) (43.596) Taxes payable on income 10.708 12.255 As at 31 December 2015 the Group's current tax assets that can not be offset from the current year tax liability amounting to TL 110.519 thousand consist of prepaid taxes (31 December 2014: TL 69.857 thousand). 56

22 Taxation (continued) 22.3 Deferred tax assets and liabilities Deferred tax is provided in respect of taxable temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, except for the differences relating to goodwill not deductible for tax purposes and the initial recognition of assets and liabilities which affect neither accounting nor taxable profit. Unrecognised deferred tax assets and liabilities As at 31 December 2015, deferred tax assets amounting to TL 440.114 thousand (31 December 2014: TL 358.781 thousand) have not been recognised with respect to the statutory tax losses carried forward and deductible temporary differences amounting to TL 421.448 thousand and TL 18.666 thousand, respectively (31 December 2014: TL 326.617 thousand and TL 32.164 thousand, respectively). Such losses carried forward expire until 2020. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom. Recognised deferred tax assets and liabilities Deferred tax assets and deferred tax liabilities at 31 December are attributable to the items detailed in the table below: 2015 2014 Asset Liability Asset Liability Revaluation on land and buildings -- (96.462) -- (73.036) Provisions 17.626 -- 13.774 -- Effect of percentage of completion method 75.171 (61.847) 43.904 (41.223) Employee severance indemnity and short term employee benefits 16.437 -- 14.539 -- Pro-rata basis depreciation expense 70.712 -- 25.216 -- Fair value gain from investment property -- (153.182) -- (109.897) Valuation difference of financial assets and liabilities 20.147 -- 13.374 -- Differences arising on business combinations and intangible assets 15.189 (166.577) 11.563 (156.321) Deferred tax related to assets held for sale -- -- -- (144.656) Other temporary differences 6.238 (48.392) 9.436 (28.096) Subtotal 221.520 (526.460) 131.806 (553.229) Tax losses carried forward 153.126 -- 275.836 -- Total deferred tax assets/(liabilities) 374.646 (526.460) 407.642 (553.229) Set off of tax (139.765) 139.765 (84.269) 84.269 Deferred tax assets/(liabilities), net 234.881 (386.695) 323.373 (468.960) According to the Tax Procedural Law in, statutory losses can be carried forward maximum for five years. Consequently, 2020 is the latest year for recovering the deferred tax assets arising from such tax losses carried forward. The Group management forecasted to generate taxable income during 2015 and the years thereafter and based on this forecast, it has been assessed as probable that the deferred tax assets resulting from tax losses carried forward in the amount of TL 765.630 thousand (31 December 2014: TL 1.379.180 thousand) will be realisable; hence, such realisable deferred tax assets in the amount of TL 153.126 thousand (31 December 2014: TL 275.836 thousand) are recognised in the consolidated financial statements. 57

22 Taxation (continued) 22.3 Deferred tax assets and liabilities (continued) Movements in temporary differences during the year Movements in deferred tax assets / (liabilities) were as follows: Balance at 1 January 2015 Recognised in other comprehensive income Acquired through business combinations Adjustment of goodwill previously recognised as provisional Balance at 31 December 2015 Recognised in profit or loss Sale of subsidiary Other Revaluation on land and buildings (73.036) -- (23.426) -- -- -- -- (96.462) Provisions 13.774 5.108 -- (1.232) -- -- (24) 17.626 Effect of percentage of completion method 2.681 6.190 -- -- -- -- 4.453 13.324 Employee severance indemnity 14.539 1.736 162 -- -- -- -- 16.437 Fair value gain from investment property (109.897) (43.285) -- -- -- -- -- (153.182) Pro-rata basis depreciation expense 25.216 43.380 -- 1.307 -- -- 809 70.712 Valuation difference on financial assets and liabilities 13.374 9.075 (1.992) (11) -- -- (299) 20.147 Differences arising on business combinations and intangible assets (144.758) (1.324) -- -- (28.993) 23.687 -- (151.388) Deferred tax related to assets held for sale (144.656) 144.656 -- -- -- -- -- -- Other temporary differences (18.660) (19.624) -- 4.825 -- -- (8.695) (42.154) Tax losses carried forward 275.836 (120.814) -- (1.898) -- -- 2 153.126 Total deferred tax assets/(liabilities) (145.587) 25.098 (25.256) 2.991 (28.993) 23.687 (3.754) (151.814) 58

Doğuş Holding Anonim Şirketi ve Bağlı Ortaklıkları 31 December 2015 Tarihi İtibariyle ve Aynı Tarihte Sona Eren Yıla Ait Konsolide Finansal Tablolara Ait Dipnotlar (Tutarlar aksi belirtilmedikçe bin Turkish Lira ( TL ) olarak ifade edilmiştir). 22 Taxation (continued) 22.3 Deferred tax assets and liabilities (continued) Balance at 1 January 2014 Recognised in other comprehensive income Acquired through business combinations Balance at 31 December 2014 Recognised in profit or loss Sale of subsidiary Other Revaluation on land and buildings (61.350) -- (17.949) 6.263 -- -- (73.036) Provisions 24.356 (10.582) -- -- -- -- 13.774 Effect of percentage of completion method 6.626 (3.945) -- -- -- -- 2.681 Employee severance indemnity 10.880 4.348 (689) -- -- -- 14.539 Fair value gain from investment property (81.258) (28.639) -- -- -- -- (109.897) Pro-rata basis depreciation expense 20.843 4.373 -- -- -- -- 25.216 Valuation difference on financial assets and liabilities 10.633 749 1.992 -- -- -- 13.374 Differences arising on business combinations and intangible assets (67.834) 1.580 -- -- (69.860) (8.644) (144.758) Deferred tax related to assets held for sale (8.098) (136.558) -- -- -- -- (144.656) Other temporary differences (11.196) (3.856) 2.608 -- -- (6.216) (18.660) Tax losses carried forward 225.193 50.643 -- -- -- -- 275.836 Total deferred tax assets/(liabilities) 68.795 (121.887) (14.038) 6.263 (69.860) (14.860) (145.587) 59

23 Assets held for sale As at 31 December, assets held for sale comprised the following: 2015 2014 Garanti Bankası (*) -- 4.148.551 LPD Holding (**) -- 64.741 Assets held for sale (***) 66.936 54.455 Others (****) 10.594 4.201 77.530 4.271.948 (*) The Group and BBVA have entered into a share purchase agreement dated 19 November 2014 for the sale of shares of the Bank representing 14,23% of the paid-up share capital with a total face value of TL 597.469.389. The parties agreed that the purchase price for the shares being sold would be TL 5.251.756 thousand with a purchase price per share of TL 8,79. In addition, the parties have agreed that the Group would be entitled to receive up to TL 0,11 of the dividend distributed per share sold with respect to distributable profit for the year 2014. Following the completion of the share transfers, Group s stake in Garanti Bank will be 10%. The transfer of title for the shares sold from the Group to BBVA has been finalized on 27 July 2015. Gain arising from this share sale transaction amounting to TL 1.167.858 thousand (after partial disposal of goodwill previously recognised as a result of acquisition of 4.65 percent shares from GE Araştırma Müşavirlik Anonim Şirketi in Garanti Bank in December 2007) is recognised under gains from investing activities in profit or loss in the accompanying consolidated financial statements. The shareholders agreement dated 1 November 2010 relating to governance and management of Garanti Bank signed between the Group and BBVA has been also amended on 19 November 2014. The revised shareholders agreement shall become effective simultaneously with the consummation of the share transfers referred to above, following the approval of all necessary regulators. Under the revised shareholders agreement the Group and BBVA have agreed that: (i) the board of directors of Garanti Bank would comprise of ten members; (ii) seven of the board members would be nominated by BBVA at the general assembly of two of these seven members would also be the members of the audit committee of the Bank whom, in line with the applicable regulations, shall be deemed as independent board members; (iii) two member would be nominated by the Group at the general assembly and (iv) the last independent member would be jointly nominated by the shareholders at the general assembly. The call option previously granted by the Group to BBVA with respect to acquisition of further shares of Garanti Bank by BBVA representing 1% of the share capital has been revoked. (**)As a result of share purchase agreement signed between the Group who had 49% of total share capital of LPD Holding A.Ş. and LeasePlan Corporation N.V. on 5 November 2014, necessary legal permissions acquired and sales transaction has been completed on 16 February 2015. Gain on sale of shares of associate amounting to TL 21.805 thousand has been classified reclassified as income from investing activities. (***) As at 31 December 2015, property and equipment classified as held for sale comprise airplanes amounting to TL 66.936 thousand (31 December 2014: TL 54.455 thousand). (****) Other comprised of the apartments, villas and flats obtained through barter transactions with construction companies in exchange for advertising service provided from Doğuş Yayın Grubu. 60

24 Due from/due to customers for contract work As at 31 December, the details of uncompleted contracts were as follows: 2015 2014 Total costs incurred on uncompleted contracts 5.044.642 2.600.558 Estimated earnings 267.685 244.357 Total estimated revenue on uncompleted contracts 5.312.327 2.844.915 Less: Billings to date (4.740.218) (2.381.962) Net amounts due from customers for contract work 572.109 462.953 Due from customers for contract work and due to customers for contract work were included in the accompanying consolidated statement of financial position under the following captions: 2015 2014 Due from customers for contract work (Note 17) 597.699 465.055 Due to customers for contract work (Note 17) (25.590) (2.102) 572.109 462.953 61

25 Loans and borrowings As at 31 December, loans and borrowings comprised the following: 2015 2014 Non-current liabilities Long-term bank borrowings 10.219.749 9.447.150 Finance lease liabilities 19.997 91.613 10.239.746 9.538.763 Current liabilities Short-term portion of long term bank borrowings 1.928.622 1.756.739 Short-term bank borrowings 2.212.349 1.234.973 Finance lease liabilities 37.602 77.052 4.178.573 3.068.764 As at 31 December, the Group's total bank borrowings and finance lease liabilities are as follows: 2015 2014 Bank borrowings 14.360.720 12.438.862 Finance lease liabilities 57.599 168.665 14.418.319 12.607.527 Terms and debt repayment schedule As at 31 December, the terms and conditions of outstanding loans and borrowings were as follows: 2015 Nominal Year of Face Carrying Currency interest rate maturity value amount Secured bank borrowings USD (Libor + 0,65% - Libor + 5,35%)-3-5,5 2016-2026 6.826.222 6.837.940 Secured bank borrowings Euro (Euribor + 2,81% - Euribor 5,5%)-2-5,5 2016-2027 2.807.726 2.809.008 Secured bank borrowings Other 2-14,75 2016-2017 151.417 151.420 Unsecured bank borrowings USD (Libor + 1,5% - Libor + 5,35%)-1,95-4,7 2016-2020 1.175.032 1.186.497 Unsecured bank borrowings Euro (Euribor + 1,45% - Euribor 4,50%)-1,94-10,45 2016-2022 1.172.956 1.178.328 Unsecured bank borrowings Other 2-19,05 2016-2019 2.133.635 2.197.527 Finance lease liabilities USD 4,34-5,89 2016-2016 1.919 1.919 Finance lease liabilities Euro 3,3-12,58 2016-2020 41.866 41.958 Finance lease liabilities Other 4,11-20,65 2016-2017 13.487 13.722 2014 14.324.260 14.418.319 Nominal Year of Face Carrying Currency interest rate maturity value amount Secured bank borrowings USD (Libor + 0,65-5,50)- 2,19-7,15 2015-2026 7.307.584 7.330.966 Secured bank borrowings Euro (Euribor + 3,00-5,50)- 4-6,75 2015-2027 1.288.847 1.298.245 Secured bank borrowings Other 3,75-14,28 2015-2017 149.308 149.308 Unsecured bank borrowings USD (Libor + 2,00-5,50)- 2,44-5,50 2016-2020 1.391.436 1.397.196 Unsecured bank borrowings Euro (Euribor + 2,90-4,75)- 3,07-10,45 2015-2020 1.050.536 1.056.642 Unsecured bank borrowings Other 2,73 14,00 2015-2017 1.201.655 1.206.505 Finance lease liabilities USD 3,68-6,25 2015-2016 80.871 81.675 Finance lease liabilities Euro 1,64-17,80 2015-2019 49.993 50.466 Finance lease liabilities Other 10,01-18,79 2015-2017 36.090 36.524 12.556.320 12.607.527 62

25 Loans and borrowings (continued) Redemption schedules of the Group's bank borrowings and finance lease liabilities according to original maturities as at 31 December are as follows: 2015 2014 2015 -- 3.068.764 2016 4.178.573 3.261.853 2017 4.435.436 2.404.122 2018 1.590.078 1.045.653 2019 and over 4.214.232 2.827.135 14.418.319 12.607.527 Finance lease liabilities As at 31 December 2015, finance lease liabilities are payable as follows: 2015 Present value of Minimum lease payments Interest minimum lease payments Less than one year 38.412 (810) 37.602 Between one and five years 21.343 (1.346) 19.997 59.755 (2.156) 57.599 As at 31 December 2014, finance lease liabilities are payable as follows: 2014 Present value of Minimum lease payments Interest minimum lease payments Less than one year 82.512 (5.460) 77.052 Between one and five years 99.248 (7.635) 91.613 181.760 (13.095) 168.665 26 Commitments and contingencies Commitments and contingent liabilities arising in the ordinary course of company comprised the following items as at 31 December: Letters of guarantee 2015 2014 Obtained from banks and given to government organisations 1.864.130 1.596.124 Given to suppliers 957.327 996.324 Given to banks 132.638 120.255 Given to customs administrations 60.200 58.140 Given to others 243.679 52.552 Total letters of guarantee 3.257.974 2.823.395 Sureties given 61.851 50.541 The Group, as a guarantor, has given its equity holdings in some group companies with a total nominal amount of TL 1.697.055 thousand (31 December 2014: TL 1.682.359 thousand) and property equipment at an amount of TL 1.540.559 thousand (equivalent of USD 1.026.674 thousand, EUR 443.885 thousand and TL 70.000 thousand) (31 December 2014: TL 1.448.912 thousand, equivalent of USD 1.015.910 thousand and EUR 363.002 thousand and TL 70.000 thousand) as collateral. In terms of the related borrowing agreements, one of the tourism segment consolidated subsidiaries profit from hotels has been attached. 63

26 Commitments and contingencies (continued) Litigation and claims On 27 April 2010 Alstom Marubeni- Doğuş Consortium (Consortium) terminated the Marmaray CR1 contract signed with DLH General Management which is connected to Ministry of Transport. The Group incurred a loss amounting to TL 15.405 thousand for the aforementioned contract in 2010. On 13 July 2010 Consortium carried the dispute to International Chamber of Commerce Secreteriet for recovery of the losses related with the termination of the contract. In the Partial Award received on 19 December 2014 even if some of the claims of the Consortium has been accepted, Tribunal founded the termination of Consortium wrongful and parties have been invited to calculate their material damages in second phase (Quantum Phase) of the arbitration. As of the date of this report second phase of arbitration continues. ICC Tribunal declared its decision on 6 September 2013 and distributed Final Award (ICC Award) related with the case about the Doğuş Insaat s bridge project in Kiev. ICC Tribunal decided Respondent South West Railways (SWR) to pay Dogus Insaat USD 23.438 thousand remuneration and USD 3.346 thousand arbitration costs in total USD 26.784 thousand. In addition for the balance of USD 20.059 thousand Tribunal decided to impose %3 interest from the date of award until full payment. SWR appealed this decision in Swiss Federal Court (SCC) and Swiss Federal Court approved ICC decision and dismissed SWR s appeal. Enforcement procedure for the ICC award continues in Ukraine. 26.1 Commitments and contingent liabilities As at 31 December 2015, commitment for uncalled capital of subsidiaries amounting to TL 27.084 thousand (31 December 2014: TL 206.372 thousand). 27 Provisions Short-term provisions As at 31 December, short-term provisions comprised the following items: 2015 2014 Provision for litigation 44.624 44.516 Warranty provision 35.617 33.541 Vacation pay liability 31.045 24.040 Other short-term provisions 19.892 20.121 131.178 122.218 Long-term provisions As at 31 December, long-term provisions comprised the following items: 2015 2014 Long-term provisions related to employee benefits 85.559 65.563 Reserve for severance payments 85.559 65.563 Provision for litigation 1.125 1.097 Other long-term provisions 24.457 21.726 111.141 88.386 64

27 Provisions (continued) 27.1 Reserve for severance payments In accordance with the existing labour law in, the Group entities operating in are required to make lump-sum payments to employees who have completed one year of service and whose employment is terminated without cause or who retire (age of 58 for women, age of 60 for men) or completed service years of 20 for women or 25 for men, are called up for military service or die. According to change of regulation, dated 8 September 1999, there are additional liabilities for the integration articles. For the years ended 31 December, the movements in the reserve for severance payments were as follows: 2015 2014 Balance at the beginning of the year 65.563 56.337 Provision for the year 18.811 6.444 Interest cost 4.472 3.882 Cost of services 9.218 7.752 Paid during the year (17.948) (8.014) Acquired through business combinations 1.568 153 Termination costs 3.067 2.456 Actuarial difference 808 (3.447) Balance at the end of the year 85.559 65.563 The reserve has been calculated by estimating the present value of future probable obligation of the Group arising from the retirement of the employees. Statistical valuation methods were developed to estimate the Group s obligation under defined benefit plans. Accordingly, the following statistical assumptions were used in the calculation of the total liability: 2015 2014 % % Discount rate 4,30 4,14 Interest rate 7,0-11,6 5,2-9,4 Expected rate of salary/limit increase 1,5-8,0 1,5-8,0 The range of turnover rate to estimate the probability retirement 1,0-8,0 1,0-8,0 The computation of the liability is predicated upon retirement pay ceiling announced by the Government. As at 31 December 2015, the ceiling amount was TL 3.828 (full TL) (31 December 2014: TL 3.438 (full TL)). 65

28 Other current assets and prepayments As at 31 December, other current assets comprised the following: 2015 2014 Value Added Tax ( VAT ) receivables 249.685 145.224 Accrued income 167.862 107.899 Deposits and guarantees given 124.494 53.680 Prepaid taxes 28.904 18.573 Others (*) 191.217 102.344 762.162 427.720 (*) As at 31 December 2015, others comprised restricted cash and cash equivalents amounting to TL 57.409 thousand (31 December 2014: TL 34.380 thousand). As of 31 December, short-term prepayments consist of the following: 2015 2014 Advances given for inventory 108.119 49.290 Prepaid expenses 54.420 46.406 Others 46.814 64.888 209.353 160.584 29 Other non-current assets and prepayments As at 31 December, other non-current assets comprised the following: 2015 2014 VAT receivables 336.644 297.915 Prepaid taxes 81.615 51.284 Deposits and guarantees given 596 24.684 Others (*) 171.643 25.128 590.498 399.011 (*) As at 31 December 2015, others comprised restricted cash and cash equivalents amounting to TL 54.915 thousand (31 December 2014: TL 17.169 thousand). As at 31 December, long-term prepayments comprised the following: 2015 2014 Advances given for property and equipment 109.870 59.138 Prepaid expenses 41.568 22.652 Other advances given 237.508 90.208 388.946 171.998 66

30 Other current liabilities As at 31 December, other current liabilities comprised the following: 2015 2014 Taxes and duties payable other than on income 147.975 135.959 Deposits and guarantees received 108.097 126.986 Accrued expenses 82.816 65.180 Deferred income 80.336 44.452 Employee benefit 15.366 8.049 Other (*) (**) 33.843 453.471 468.433 834.097 (*) According to the decision of the extraordinary general meeting dated 17 December 2014, the Company decided to distribute dividends to its shareholders amounting to TL 245.647 thousand. (**) The balance at 31 December 2014 includes the payable amounting to TL 156.800 thousand in relation to the purchase of Günaydın Group shares. 31 Other non-current liabilities As at 31 December, other non-current liabilities comprised the following: 2015 2014 Advances received 462.592 398.626 Deffered income 11.983 10.824 Deposits and guarantees received 13.402 10.794 Other (*) 184.141 48.879 672.118 469.123 (*) The Group s share of losses in Boyabat, a joint venture of the Group, exceeds its interest in Boyabat, the carrying amount of the investment is reduced below zero and the total carrying value of the investment and share of losses in Boyabat has been reclassified as other non-current liability amounting to TL 175.279 thousand (31 December 2014: TL 47.693 thousand). 67

32 Capital and reserves 32.1 Share capital As at 31 December 2015, the share capital of Doğuş Holding amounted to TL 856.027 thousand (31 December 2014: TL 856.027 thousand). The paid-in capital of Doğuş Holding comprises 856.027.050 shares (31 December 2014: 856.027.050 shares) of TL 1 each. At 31 December, the shareholding structure of Doğuş Holding based on the number of shares is presented below: 2015 2014 Thousands of shares % Thousands of shares % Ferit Şahenk 278.383 32,52 278.383 32,52 Filiz Şahenk 260.534 30,44 260.534 30,44 Deniz Şahenk 148.053 17,30 148.053 17,30 Doğuş Arge 87.873 10,27 87.873 10,27 Garanti Turizm 40.098 4,68 40.098 4,68 DOAŞ 31.575 3,69 31.575 3,69 Doğuş Sigorta 4.618 0,54 4.618 0,54 Antur 3.848 0,45 3.848 0,45 Doğuş Turizm 770 0,09 770 0,09 Others 275 0,02 275 0,02 856.027 100,00 856.027 100,00 32.2 Restricted reserves The details of the restricted reserves are as follows: 2015 2014 Legal reserves 369.865 543.075 Special reserves 2.353.512 2.308.484 2.723.377 2.851.559 According to article 519 of Turkish Commercial Code, exceptions are defined for holding companies which aims to invest in other entities regarding the legal reserves. Accordingly, the legal reserves are generated by annual appropriations amounting to 5 percent of income disclosed in the Group s statutory accounts until it reaches 20 percent of paid-in share capital (first legal reserve). Within the scope of the Exemption for Sale of Participation Shares, the 75% portion of gains in statutory financial statements arising from the sale of investments held in the past at least for two years was classified under Restricted Reserves. 32.3 Dividend In 2014, the Company distributed dividends to the shareholders amounting to TL 230.824 thousand. According to the decision of the extraordinary general meeting dated 17 December 2014, the Company decided to distribute dividends to its shareholders amounting to TL 245.647 thousand. As of 31 December 2014 related dividend has not been paid yet and recognised under other current liabilities in the consolidated financial statements. 68

32 Capital and reserves (continued) 32.4 Revaluation surplus For the years ended 31 December, the movements of revaluation surplus were as follows: 2015 2014 Balance at the beginning of the year 1.565.559 1.319.253 Revaluation increase in land and building 814.533 345.195 Deferred taxes on revaluation surplus (20.313) (8.384) Non-controlling interest portion of revaluation changes -- (26.647) Sale of subsidiary, gross of taxes -- (31.318) Transfer of revaluation from due to partial disposal of Garanti Bank shares, net of tax (71.176) -- Depreciation effect on revaluation surplus (18.345) (32.540) Balance at the end of the year 2.270.258 1.565.559 32.5 Remeasurements of defined benefit liability As a result of the adoption of IAS 19 (2011), all actuarial differences are recognised immediately in other comprehensive income. 32.6 Non-controlling interests For the year ended 31 December, movements of the non-controlling interests were as follows: 2015 2014 Balance at the beginning of the year 731.220 485.996 Acquisition of non-controlling interests through business combinations (Note 36) 90.932 99.622 Effect of share capital increase 34.491 16.354 New establishments 12.405 63.670 Changes of non controlling interest in consolidated subsidiaries (61.027) 32.149 Actuarial differences (349) (1.029) Release of non-controlling interests through dividend distribution (71.720) (61.938) Sale of subsidiary (425) (470) Non-controlling interest of changes in revaluation surplus 2.276 26.647 Update of provisionally accounted goodwill (28.424) 7.222 Foreign curreny translation effect (8.102) -- Non-controlling interest of profit for the year 71.037 62.997 Balance at the end of the year 772.314 731.220 32.7 Translation reserve The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations into TL. 69

32 Capital and reserves (continued) 32.8 Capital stock held by subsidiaries Capital stock held by subsidiaries is used to present share capital at the amount of statutory records of the Company due to the purchase of shares of the Company by a subsidiary (Note 32.1). 32.9 Accounting in net investment hedge Group, designated some portion of its EUR and CHF denominated bank borrowings as a hedging instrument in order to hedge its foreign currency risk arising from the translation of net assets of its subsidiaries, joint ventures, associates and joint operations operating in foreign countries from EUR and CHF to Turkish Lira. As at 31 December 2015, bank borrowings amounting to EUR 383 million and CHF 9 million were designated as a net investment hedging instrument. Net foreign exchange losses before tax recognised in the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 is TL 140.052 thousand related to the net investment hedging transactions (31 December 2014 Net foreign exchange gains: TL 25.816). 70

33 Financial instruments Fair values and risk management (a) (i) Financial risk management Overview The Group has exposure to the following risks from its use of financial instruments: credit risk liquidity risk market risk This note presents information about the Group s exposure to each of the above risks, the Group s objectives, policies and processes for measuring and managing risks, and the Group s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements. Risk management framework Enterprise Risk Management ( ERM ) efforts have been initiated by Doğuş Group since 2006 and these efforts have been executed by Doğuş Holding Risk Management Department. Risk Management activities are conducted by a realistic organizational structure and it is fully supported with the commitment of top level management, so that the Group is pioneer in risk management activities in Turkish business environment. Group acts proactively in terms of risk management in order to ensure that its business operations in different industries and regions are not adversely affected as a result of market, liquidity and counterparty risks. Risk Management and Internal Audit departments within each sector and at the Group level provide and maintain awareness for different types of risks, including emerging risks, and ensure that appropriate risk management mechanisms are in place. In 2010, by the Risk and Audit Committee decision, Group companies created their own Risk Management departments. Doğuş Holding Risk Management Department works closely with the Group companies Risk Management departments to obtain accurate information on time and to assess and evaluate the risk taking processes. In addition to establishing an independent reporting infrastructure for Group companies, group-wide awareness for different types of risks and risk management strategies is ensured by periodical risk roundtables, workshops, dashboards and reports throughout the organization. Risk Committee meetings are held on regular basis and valuable and relevant risk information is generated discussed and escalated if deemed necessary. ERM is applied in Group companies so that risks are managed effectively within the Group in accordance with the defined risk management framework. This framework is customised according to the needs and structure of the Group s businesses. 71

33 Financial instruments Fair values and risk management (continued) (a) (i) Financial risk management (continued) Risk management framework (continued) ERM activities are executed in the following fields: Determining risk management standards and policies, Developing group-wide culture and capabilities, Conducting risk analysis of existing and potential investments, Determining risk levels, limits and action plans, Supporting the implementation of these action plans, Enhancing strategic processes with a risk management approach. Doğuş Holding s CEO has the ultimate responsibility for ERM and Doğuş Holding s Risk Management Department is under the supervision of Doğuş Holding s CEO and the Risk and Audit Committee which functions under the Board of Directors. The Risk and Audit Committee is responsible for assessing the risk appetite of the shareholders and the investors. Many sectors has its own risk committee. Furthermore, internal audit activities performed by Doğuş Holding Internal Audit Department are also planned and implemented on a risk-based perspective. Automotive DOAŞ s risk management approach can be defined as minimizing the threats towards the organization, personnel and assets using reasonable, justifiable and clearly documented methods and improving the efficiency of oversight activities. In the frame of this approach, authorised by the Board of Directors, the Committee of Early Identification of Risks ensures that the risk management is handled effectively in a fair, transparent, responsible consistent, and accountable nature and in compliance with the Committee Directive. This group conducts studies towards an effective management of risk by proactively detecting the potential outcomes, which may endanger the presence, development and continuation of the DOAŞ and by putting the necessary precautions and measures into effect. Construction The Board of Doğuş İnşaat has established a Risk Committee in 2009 to have a better view over risks and implement the enterprise-wide risk management process within the construction group. The Risk Committee is accountable to the Board and advises the Board on risk management, aiming to manage risks in a more systematic manner and foster a risk culture within the company. The management of the company has the overall responsibility for the establishment and oversight of the risk management framework. In January 2010, Doğuş İnşaat Risk Management Department has been established and assigned to managing risk management processes. 72

33 Financial instruments Fair values and risk management (continued) (a) (i) Financial risk management (continued) Risk management framework (continued) Construction (continued) Risk management vision of Doğuş İnşaat is defined as, identifying and monitoring risks and opportunities that will impact the corporate objectives, managing risks and uncertainties in the most effective and efficient manner and in line with the shareholders risk appetite, and proactively implementing the most appropriate response to risk. Doğuş İnşaat s risk management policies and procedures are established to identify and analyse the risks faced by the company, to set up appropriate risk limits and controls, and to monitor risks, responses, and adherence to such limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Doğuş İnşaat s activities. Risks are identified and managed at three levels: i) corporate level ii) business process level and iii) project level. Risks are discussed at monthly Risk Committee meetings with management and monitored by regular reports. Media The Board of Directors has overall responsibility for establishment and oversight of the Media Group s risk management framework. The Risk Committee is accountable to the Board on risk management, aiming to manage risks in more systematic manner and foster risk culture. In January 2010, Internal Audit and Risk Management Department was established with the decision of the Board. This will strengthen focus on corporate risk management throughout the Media Group by developing methodology as well as centralising risk management operations. Tourism Doğuş Tourism Group developed a risk management process to strengthen the internal controls and focus on risk assessment at the strategic level of the business. Within this perspective, Doğuş Tourism Group has selected an internationally accepted internal control model and built a risk management framework to operationalise the selected model in the organisation. The risk management framework consists of five interrelated components derived from the way management runs the business process: control environment, risk assessment, control activities, information and communication and monitoring. Real Estate, Energy, Food and Beverage, Entertainment and other segment Doğuş Holding s Risk Management Department gives support to ensure the application of risk management processes in the Real Estate, Energy, Food and Beverage, Entertainment and other businesses.. 73

33 Financial instruments Fair values and risk management (continued) (a) (ii) Financial risk management (continued) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group s receivables from customers and investment securities. Trade receivable The Group s exposure to credit risk is influenced mainly by the characteristics of each customer of the segments other than banking and finance. The demographics of the Group s customer base, including the default risk of the industry and country in which customers operate has an influence on credit risk. Since the Group mainly operates in construction, automotive, media, real estate, energy, entertainment and tourism businesses, geographically the concentration of credit risk for the Group s entities operating in the mentioned businesses are mainly in. Majority of accounts receivable in the automotive business segment is due from dealers. Entities operating under automotive business segment have set an effective control mechanism to follow up and limit the risk for each counter party and obtain letters of guarantee from its dealers against its receivables for vehicle and spare part sales. The companies operating under the segments other than automotive segment have set a credit policy under which each new customer is analysed individually for the creditworthiness before each company s standard payment and delivery terms and conditions are offered. In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are a dealer, tourism agency, retail or end-user customer, geographic location, industry, aging profile, maturity and existence of previous financial difficulties. The Group establishes an allowance for impairment losses that represent its estimate of incurred losses in its receivables portfolio. The Group sets impairment for its receivables if there is objective evidence that the Group will not be able to collect all amounts due. The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of all cash flows, including amounts recoverable from guarantees and collateral discounted based on the original effective interest rate of the originated receivables at inception. Guarantees In general terms, the Group s policy is to provide guarantees to its Group entities in terms of sureties, letters of guarantee in the nature of the businesses that each entity operates. 74

33 Financial instruments Fair values and risk management (continued) (a) (ii) Financial risk management (continued) Credit risk (continued) Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows: 2015 2014 Cash and cash equivalents (*) 2.390.269 1.681.681 Trade receivables - due from third parties 1.953.632 1.392.361 Trade receivables - due from related parties 828.707 585.190 Other current assets (**) 531.076 293.266 Other non-current assets (**) 175.494 150.655 Other investments, including derivatives 158.570 108.483 6.037.748 4.211.636 (*) Cash on hand is excluded from cash and cash equivalents. (**) Non-financial instruments such as advances given, taxes and funds to be refunded, VAT receivables and prepaid expenses and similar items are excluded from other current assets and other non-current assets. The maximum exposure to credit risk for trade receivables at the reporting date by type of customer was as follows: 2015 2014 Contract receivables 1.858.399 1.233.020 Retailers 339.800 242.129 Advertising agencies 259.263 237.191 End-users 124.049 94.530 Other 200.828 170.681 2.782.339 1.977.551 The maximum exposure to credit risk for trade receivables at the reporting date by geographic concentration was as follows: Carrying amount 2015 2014 2.291.554 1.695.095 Libya 205.535 188.233 Ukraine 3.714 3.784 Morocco 670 624 Euro zone 48 - Other 280.818 89.815 2.782.339 1.977.551 75

33 Financial instruments Fair values and risk management (continued) (a) (ii) (iii) Financial risk management (continued) Credit risk (continued) Impairment losses The aging of trade receivables at the reporting date was: 2015 2014 Gross Impairment Gross Impairment Not past due 2.494.327 -- 1.584.817 -- Past due 0-30 days 20.894 -- 168.856 -- Past due 31-120 days 45.903 -- 23.826 -- Past due 121-365 days 15.681 -- 3.505 -- More than one year 463.313 (257.779) 408.834 (212.287) Total 3.040.118 (257.779) 2.189.838 (212.287) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group s reputation. Typically, the Group entities ensure that they have sufficient cash on demand to meet expected operational expenses in terms of the relevant characteristics of the businesses they operate, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. For the entities operating under automotive business segment, risk of funding current and potential requirements is mitigated by ensuring the availability of adequate number of creditworthy lending parties. Entities operating under automotive business segment, in order to minimise liquidity risk, hold adequate cash and available line of credit (including factoring capacity). 76

33 Financial instruments Fair values and risk management (continued) (a) (iii) Financial risk management (continued) Liquidity risk (continued) As at 31 December, the following tables provide an analysis of monetary assets and monetary liabilities of the Group into relevant maturity groupings based on the remaining periods to repayment: Up to 1 month 1 to 3 months 2015 3 to 12 months Over 1 year Monetary assets Total Turkish Lira Other non-current asset -- -- -- 874.197 874.197 Trade receivables - due from third parties 553.138 25.118 544.974 -- 1.123.230 Trade receivables - due from related parties 129.064 630.876 24.594 -- 784.534 Other current assets 461.269 72.292 112.466 -- 646.027 Cash and cash equivalents 253.979 5.856 12.245 -- 272.080 Total TL monetary assets 1.397.450 734.142 694.279 874.197 3.700.068 Foreign Currency Other investments, including derivatives -- -- 84 158.486 158.570 Other non-current assets -- -- -- 105.247 105.247 Trade receivables - due from third parties 371.647 74.733 178.547 205.475 830.402 Trade receivables - due from related parties 1.479 37.734 4.960 -- 44.173 Other current assets 265.331 1.240 58.917 -- 325.488 Cash and cash equivalents 990.601 918.429 216.132 -- 2.125.162 Total foreign currency monetary assets 1.629.058 1.032.136 458.640 469.208 3.589.042 Total monetary assets 3.026.508 1.766.278 1.152.919 1.343.405 7.289.110 Up to 1 month 1 to 3 months 2015 3 to 12 months Over 1 year Monetary liabilities Total Turkish Lira Loans and borrowings 61.656 385.729 162.722 1.671.179 2.281.286 Other non-current liabilities -- -- -- 290.846 290.846 Trade payables - due to third parties 297.691 317.693 183.103 340 798.827 Trade payables - due to related parties 35.607 2.927 2.411 -- 40.945 Other current liabilities 249.498 51.786 163.590 -- 464.874 Total TL monetary liabilities 644.452 758.135 511.826 1.962.365 3.876.778 Foreign Currency Loans and borrowings 1.351.531 214.875 2.002.060 8.568.567 12.137.033 Other non-current liabilities -- -- -- 492.413 492.413 Trade payables - due to third parties 573.626 22.820 5.086 -- 601.532 Trade payables - due to related parties 4.977 -- 1.109 -- 6.086 Other current liabilities 78.440 -- 56.297 -- 134.737 Total foreign currency monetary liabilities 2.008.574 237.695 2.064.552 9.060.980 13.371.801 Total monetary liabilities 2.653.026 995.830 2.576.378 11.023.345 17.248.579 Liquidity (gap)/position 373.482 770.448 (1.423.459) (9.679.940) (9.959.469) 77

33 Financial instruments Fair values and risk management (continued) (a) (iii) Financial risk management (continued) Liquidity risk (continued) Monetary assets Up to 1 month 2014 1 to 3 months 3 to 12 months Over 1 year Turkish Lira Other investments, including derivatives -- -- 84 19.961 20.045 Other non-current assets -- -- -- 467.682 467.682 Trade receivables - due from third parties 84.541 154.912 264.885 123.201 627.539 Trade receivables - due from related parties 500.994 1.360 38.437 -- 540.791 Other current assets 68.992 85.706 114.343 -- 269.041 Cash and cash equivalents 184.698 69.919 144.717 -- 399.334 Total TL monetary assets 839.225 311.897 562.466 610.844 2.324.432 Foreign Currency Other investments, including derivatives -- -- -- 88.438 88.438 Other non-current assets -- -- -- 103.327 103.327 Trade receivables - due from third parties 553.776 58.056 61.346 91.644 764.822 Trade receivables - due from related parties 1.948 31.015 11.436 -- 44.399 Other current assets 128.717 76.778 113.768 -- 319.263 Cash and cash equivalents 977.780 21.260 285.514 -- 1.284.554 Total foreign currency monetary assets 1.662.221 187.109 472.064 283.409 2.604.803 Total monetary assets 2.501.446 499.006 1.034.530 894.253 4.929.235 Total 2014 Monetary liabilities Up to 1 month 1 to 3 months 3 to 12 months Over 1 year Total Turkish Lira Loans and borrowings 898.914 163.594 284.896 -- 1.347.404 Other non-current liabilities -- -- -- 146.089 146.089 Trade payables - due to third parties 358.532 118.767 87.285 2.822 567.406 Trade payables - due to related parties 541 1.045 331 -- 1.917 Other current liabilities 434.686 79.071 296.359 -- 810.116 Total TL monetary liabilities 1.692.673 362.477 668.871 148.911 2.872.932 Foreign Currency Loans and borrowings 979.164 41.893 700.303 9.538.763 11.260.123 Other non-current liabilities -- -- -- 411.420 411.420 Trade payables - due to third parties 123.661 47.824 111.462 17.971 300.918 Trade payables - due to related parties 72 56 7.868 -- 7.996 Other current liabilities 40.553 36.408 84.673 -- 161.634 Total foreign currency monetary liabilities 1.143.450 126.181 904.306 9.968.154 12.142.091 Total monetary liabilities 2.836.123 488.658 1.573.177 10.117.065 15.015.023 Liquidity (gap)/position (334.677) 10.348 (538.647) (9.222.812) (10.085.788) 78

33 Financial instruments Fair values and risk management (continued) (a) (iii) Financial risk management (continued) Liquidity risk (continued) The following tables are the contractual maturities of financial liabilities, including interest payments and excluding the impact of netting agreements: Carrying amount Contractual cash flows 6 months or less 31 December 2015 6-12 months 1-2 years 2-5 years More than 5 years Non-derivative financial liabilities Secured bank borrowings 9.798.368 10.503.149 845.511 861.716 2.019.213 3.166.826 3.609.883 Unsecured bank borrowings 4.562.352 4.628.847 443.193 2.067.969 1.464.212 617.886 35.587 Finance lease liabilities 57.599 59.755 15.696 14.176 24.024 2.516 3.343 Trade payables 1.447.390 1.447.302 1.129.509 317.793 -- -- -- 15.865.709 16.639.053 2.433.909 3.261.654 3.507.449 3.787.228 3.648.813 Carrying amount Contractual cash flows 31 December 2014 6 months or less 6-12 months 1-2 years 2-5 years More than 5 years Non-derivative financial liabilities Secured bank borrowings 8.778.519 9.423.856 663.393 980.998 1.159.614 3.482.255 3.137.596 Unsecured bank borrowings 3.660.343 3.709.532 940.097 219.536 918.757 1.504.850 126.292 Finance lease liabilities 168.665 175.938 20.600 12.061 32.968 110.309 -- Trade payables 878.237 884.737 691.648 137.388 55.701 -- -- Derivative financial liabilities Forward contracts (*) 15.435 (3.151) 8.496 (11.647) -- -- -- 13.501.199 14.190.912 2.324.234 1.338.336 2.167.040 5.097.414 3.263.888 (*) Carrying amount of forward contracts represents fair value of forward contracts. Contractual cash flows represent net of cash inflows and outflows defined on the contracts. 79

33 Financial instruments Fair values and risk management (continued) (a) (iv) Financial risk management (continued) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Group s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Interest rate risk Profile As at 31 December, the interest rate profile of the Group s interest-bearing financial instruments was as follows: 2015 2014 Fixed rate instruments Financial assets 1.660.587 1.224.700 Financial liabilities 3.516.939 2.756.681 Variable rate instruments Financial assets 18.560 34.114 Financial liabilities 10.901.380 9.850.846 Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased / (decreased) equity and profit or loss before tax by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. This analysis is performed on the same basis for 2014. Profit or loss Equity 100 bp 100 bp 31 December 2015 increase decrease increase decrease Variable rate instruments (44.430) 44.430 7.115 (7.115) Cash flow sensitivity (net) (44.430) 44.430 7.115 (7.115) Profit or loss Equity 100 bp 100 bp 31 December 2014 increase decrease increase decrease Variable rate instruments (22.846) 22.845 23 (24) Cash flow sensitivity (net) (22.846) 22.845 23 (24) 80

33 Financial instruments Fair values and risk management (continued) (a) (iv) Financial risk management (continued) Market risk (continued) Currency risk The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of Group entities, primarily USD, but also Euro, Swiss Francs ( CHF ), Sterling ( GBP ), Libyan Dinar ( LYD ), Japanese Yen ( JPY ), Croatian Kuna ( HRK ), Romanian Leu ( RON ), Emirati Dirham ( AED ), Qatar Riyal ( QAR ), Kazakstani Tenge ( KZT ) and Ukranian Hryvnia ( UAH ). The currencies in which these transactions primarily are denominated are TL, Euro and USD. In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. The Group is exposed to currency risk through the impact of rate changes on the translation of foreign currency denominated payables and bank borrowings from financial institutions. Such risk is monitored by the Board of Directors and limited through taking positions within approved limits as well as using derivative instruments where necessary. To minimise risk arising from foreign currency denominated statement of financial position items, the Group sometimes utilises derivative instruments as well as keeping part of its idle cash in foreign currencies. Due to its funding structure, Group aims to minimise its exposure to changes in interest rates. Derivative financial instruments are used to manage the potential earnings impact of interest rate and foreign currency movement. Several types of derivative financial instruments are used for this purpose, including interest rate swaps and currency swaps, options, futures, forward contracts and other derivative instruments. At 31 December, the currency risk exposures of the Group in TL thousand equivalents are as follows: 2015 USD EURO Others Total Foreign currency monetary assets Other investments, including derivatives 129.314 -- 29.256 158.570 Other non-current assets 1.663 54.894 48.690 105.247 Trade receivables - due from third parties 273.787 309.367 247.248 830.402 Trade receivables - due from related parties 29.076 12.551 2.546 44.173 Other current assets 84.376 57.295 183.817 325.488 Cash and cash equivalents 656.190 1.369.179 99.793 2.125.162 Total foreign currency monetary assets 1.174.406 1.803.286 611.350 3.589.042 Foreign currency monetary liabilities Loans and borrowings 8.026.356 4.029.294 81.383 12.137.033 Other non-current liabilities 22.939 12.846 456.628 492.413 Trade payables - due to third parties 86.742 405.212 109.578 601.532 Trade payables - due to related parties -- 210 5.876 6.086 Other current liabilities 9.922 42.962 81.853 134.737 Total foreign currency monetary liabilities 8.145.959 4.490.524 735.318 13.371.801 Gross statement of financial position exposure (6.971.553) (2.687.238) (123.968) (9.782.759) Off balance sheet exposure -- -- -- -- Net exposure (6.971.553) (2.687.238) (123.968) (9.782.759) 81

33 Financial instruments Fair values and risk management (continued) (a) (iv) Financial risk management (continued) Market risk (continued) Currency risk (continued) USD EURO Others Total Foreign currency monetary assets Other investments, including derivatives 77.562 10.876 -- 88.438 Other non-current assets 73.690 12.299 17.338 103.327 Trade receivables - due from third parties 94.080 489.412 181.330 764.822 Trade receivables - due from related parties 27.995 16.404 -- 44.399 Other current assets 122.346 146.202 50.715 319.263 Cash and cash equivalents 1.083.059 131.588 69.907 1.284.554 Total foreign currency monetary assets 1.478.732 806.781 319.290 2.604.803 Foreign currency monetary liabilities Loans and borrowings 8.809.837 2.405.353 44.933 11.260.123 Other non-current liabilities -- 6.041 405.379 411.420 Trade payables - due to third parties 49.859 206.918 44.141 300.918 Trade payables - due to related parties -- 2.083 5.913 7.996 Other current liabilities 18.498 78.892 64.244 161.634 Total foreign currency monetary liabilities 8.878.194 2.699.287 564.610 12.142.091 Gross statement of financial position (7.399.462) (1.892.506) (245.320) (9.537.288) exposure Off balance sheet exposure -- (90.124) -- (90.124) Net exposure (7.399.462) (1.982.630) (245.320) (9.627.412) For the purposes of the evaluation of the table above, the figures represent the TL equivalent of the related hard currencies. Sensitivity analysis A 10 percent weakening of TL against the following currencies at 31 December 2015 would have increased / (decreased) profit or loss before tax and equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2014. Equity Profit or loss 31 December 2015 USD 3.830 (701.002) EURO (98.627) (170.097) Others (867) (11.530) 31 December 2014 USD (1.396) (738.551) EURO (62.033) (136.230) Others -- (24.532) A 10 percent of strengthening of TL against the above currencies at 31 December would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant. 2014 82

33 Financial instruments Fair values and risk management (continued) (b) Fair value information Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale of liquidation, and is best evidenced by a quoted market price. The estimated fair values of financial instruments have been determined using available market information by the Group, and where it exists, using appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to determine the estimated fair value. While the management of the Group has used available market information in estimating the fair values of financial instruments, the market information may not be fully reflective of the value that could be realised in the current circumstances. The following methods and assumptions are used to estimate the fair values of financial instruments. Financial assets Carrying values of significant portion of cash and cash equivalents and trade receivables are assumed to reflect their fair values due to their short-term nature. Financial liabilities Fair values of short term borrowings and trade payables are assumed to approximate their carrying values due to their short-term nature. The table below analyses financial instruments carried at fair value as at 31 December, by valuation method: 2015 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss 1.778 127.472 -- 129.250 Financial assets available-for-sale 29.320 -- -- 29.320 Financial assets at fair value 31.098 127.472 -- 158.570 Derivative financial liabilities -- -- -- -- Financial liabilities at fair value -- -- -- -- Level 1 Level 2 Level 3 Total 2014 Financial assets at fair value through profit or loss 1.856 75.726 -- 77.582 Financial assets available-for-sale 30.901 -- -- 30.901 Financial assets at fair value 32.757 75.726 -- 108.483 Derivative financial liabilities -- 15.435 -- 15.435 Financial liabilities at fair value -- 15.435 -- 15.435 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 83

34 Group enterprises 34.1 List of subsidiaries The table below sets out all consolidated subsidiaries and shows shareholding structure of the subsidiaries at 31 December: Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 A Yapım 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 AD Yiyecek 60,00 60,00 -- -- 60,00 60,00 60,00 60,00 A.L.E. Gıda 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Afiyet Olsun 75,00 75,00 -- -- 75,00 75,00 75,00 75,00 Alantur 100,00 100,00 -- -- 100,00 100,00 99,82 99,82 Alperen 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Altınhan 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Altın Mecralar (2) 99,00 99,00 -- -- 99,00 99,00 59,40 39,60 Antur 99,99 99,99 -- -- 99,99 99,99 99,82 99,82 Arena 100,00 100,00 -- -- 100,00 100,00 99,03 99,03 Aresta 60,00 60,00 -- -- 60,00 60,00 59,97 59,97 Argos in Cappadocia 80,00 80,00 -- -- 80,00 80,00 80,00 80,00 Arjantin Et 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 Ataşehir Restoran 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 Ayson 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 Ayson Sondaj 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 Bal Turizm 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Başkent 100,00 100,00 -- -- 100,00 100,00 59,97 59,97 BMK (1) 100,00 100,00 -- -- 100,00 100,00 60,00 60,00 Bomonti 100,00 100,00 -- -- 100,00 100,00 99,00 90,20 Borsa (7) 67,00 51,00 -- -- 67,00 51,00 67,00 51,00 Büke Turizm 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Çankaya Grup 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 Çukurambar Lokanta 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 D-Auto Suisse SA 100,00 100,00 -- -- 100,00 100,00 73,00 73,00 D Eğlence 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 D Enerji 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 D Et 51,00 51,00 -- -- 51,00 51,00 51,00 51,00 D-Et International Holding Coöperatif U.A. 51,00 -- -- -- 51,00 -- 51,00 -- D-Et International Holding BV 100,00 -- -- -- 100,00 -- 51,00 -- D Koruma 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 D Marina 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 D Marin Göcek 100,00 100,00 -- -- 100,00 100,00 100,00 99,99 D Marine Investment Holding B.V. 100,00 100,00 -- -- 100,00 100,00 99,99 99,99 D Marine Investment Holding Coöperatief U.A 100,00 100,00 -- -- 100,00 100,00 99,99 99,99 84

34 Group enterprises (continued) 34.1 List of subsidiaries (continued) Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 D Otel 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 D Otel Plaj 100,00 100,00 -- -- 100,00 100,00 100,00 99,99 D Otel Göcek 100,00 100,00 -- -- 100,00 100,00 99,78 99,78 D Resort Sibenik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 D Saat 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Dafne Yayıncılık 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Darphane (7) 67,00 51,00 -- -- 67,00 51,00 67,00 51,00 Darüşşafaka Sportif 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 DMS 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 DOAŞ 75,20 75,20 -- -- 75,20 75,20 73,00 73,00 Dogus Croatia 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Arge 92,72 92,72 7,28 7,28 100,00 100,00 92,72 92,72 Doğuş Auto Mısr JS 100,00 100,00 -- -- 100,00 100,00 73,01 73,01 Doğuş Auto Mısr LLC 99,00 99,00 -- -- 99,00 99,00 72,28 72,28 Doğuş Auto Iraq 100,00 100,00 -- -- 100,00 100,00 73,00 73,00 Dogus Avenue BV 100,00 100,00 -- -- 100,00 100,00 98,12 98,12 Dogus Avenue Coop 98,12 98,12 -- -- 98,12 98,12 98,12 98,12 Dogus Avenue LLC 100,00 100,00 -- -- 100,00 100,00 98,12 98,12 Dogus Avenu 99,39 99,39 -- -- 99,39 99,39 99,39 99,39 Doğuş Bilgi İşlem 100,00 100,00 -- -- 100,00 100,00 87,58 87,58 Doğuş Cennet Koyu -- 80,00 -- -- -- 80,00 -- 80,00 Dogus Construction LLC 49,00 49,00 -- -- 49,00 49,00 49,00 49,00 Doğuş Dalaman 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Didim 100,00 100,00 -- -- 100,00 100,00 99,65 99,65 Doğuş Dijital 100,00 -- -- -- 100,00 -- 100,00 -- Doğuş Enerji 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Enerji Toptan 100,00 100,00 -- -- 100,00 100,00 99,98 99,98 Doğuş EOOD 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Finance Ukraine 99,00 99,00 -- -- 99,00 99,00 99,00 99,00 Doğuş Fotoğraf 100,00 -- -- -- 100,00 -- 100,00 -- Doğuş GYO 97,97 97,97 -- -- 97,97 97,97 95,93 96,25 Doğuş Gayrimenkul 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Hellas 100,00 -- -- -- 100,00 -- 99,99 -- Doğuş Hoteli d.o.o. -- 100,00 -- -- -- 100,00 -- 100,00 Doğuş İnşaat 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş İnşaat Limited 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş International 100,00 100,00 -- -- 100,00 100,00 92,72 92,72 Doğuş Leisure 100,00 -- -- -- 100,00 -- 100,00 -- Doğuş Management 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Maroc SARL 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Media 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Dogus Montenegro B.V. 100,00 100,00 -- -- 100,00 100,00 99,99 99,99 Dogus Montenegro Coöperatif U.A. -- 100,00 -- -- -- 100,00 -- 99,99 Doğuş Nakliyat 90,50 90,50 -- -- 90,50 90,50 90,46 90,46 85

34 Group enterprises (continued) 34.1 List of subsidiaries (continued) Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries 86 Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 Dogus Oman LLC 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 Doğuş Otel İşletmeciliği 100,00 100,00 -- -- 100,00 100,00 99,76 99,76 Doğuş Otel Yatırımları 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Oto Pazarlama 100,00 100,00 -- -- 100,00 100,00 74,02 74,02 Doğuş Perakende 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Razvitak 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Sağlıklı Yaşam 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş SA 100,00 100,00 -- -- 100,00 100,00 95,30 95,30 Doğuş Sigorta 100,00 100,00 -- -- 100,00 100,00 88,66 88,66 Doğuş Spor 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Spor Moda 100,00 50,00 -- -- 100,00 50,00 100,00 50,00 Doğuş Sportif 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Tarım 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Telekom 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Turgutreis 100,00 100,00 -- -- 100,00 100,00 98,28 98,28 Doğuş Turizm 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Varlık 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Doğuş Video 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Doğuş Yayın Grubu 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Doğuş Zhenfa 67,00 -- -- -- 67,00 -- 67,00 -- Doors Akademi 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Doors Holding 74,25 74,25 -- -- 74,25 74,25 74,25 74,25 Doors Uluslararası Yönetim 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Dream International B.V. 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Dream International Coöperatif U.A. 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 E Elektronik (4) -- 100,00 -- -- -- 100,00 -- 99,96 Enformasyon (6) -- 100,00 -- -- -- 100,00 -- 99,96 Etiler Kebapçılık 75,00 -- -- -- 75,00 -- 75,00 -- Etiler Turizm 75,00 75,00 -- -- 75,00 75,00 75,00 75,00 Euromessage Deutschland (2) 100,00 100,00 -- -- 100,00 100,00 60,00 40,00 Garanti Turizm 100,00 100,00 -- -- 100,00 100,00 99,22 99,22 Genoto 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Gouvia Marina S.A. (3) 100,00 100,00 -- -- 100,00 100,00 89,99 68,24 Göktrans 100,00 100,00 -- -- 100,00 100,00 99,76 99,76 Günaydın Antalya 60,00 -- -- -- 60,00 -- 42,00 -- Günaydın Et Sanayi 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 Günaydın Et Şarküteri 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 Günaydın İdealtepe 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 Günaydın İstanbul 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 Havana Doors 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Havana International B.V. 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 Havana International Coöperatif U.A. 100,00 100,00 -- -- 100,00 100,00 74,25 74,25

34 Group enterprises (continued) 34.1 List of subsidiaries (continued) Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 Havana Yayıncılık 100,00 100,00 -- -- 100,00 100,00 74,25 74,25 HD Yayıncılık 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Hedef Medya 60,00 40,00 -- -- 60,00 40,00 60,00 40,00 İstinye Park Gayrmenkul 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Itsumi (5) -- 50,00 -- -- -- 50,00 -- 50,00 Kadıköy Tepe 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 King of the Rib 100,00 -- -- -- 100,00 -- 99,99 -- Kivahan 100,00 51,00 -- -- 100,00 51,00 100,00 50,96 Köprü 100,00 100,00 -- -- 100,00 100,00 100,00 50,96 Körfez Hava 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Kral Pop 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Kral Pop Avrupa 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Kral TV Radyo 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 K&G Medmarinas Management S.A. 90,00 68,24 -- -- 90,00 68,24 89,99 68,24 Lacivert 100,00 75,00 -- -- 100,00 75,00 100,00 75,00 Lefkas Marina S.A. (3) 100,00 100,00 -- -- 100,00 100,00 89,99 68,24 London Doors Restaurant Group 79,00 79,00 -- -- 79,00 79,00 58,66 58,66 LPM Istanbul 100,00 52,78 -- -- 100,00 52,78 100,00 52,78 Marina Barcelona 70,01 -- -- -- 70,01 -- 70,01 -- Marina Borik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Marina Dalmacija 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Marina Sibenik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Marina Upravljanje 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Masa (7) 67,00 51,00 -- -- 67,00 51,00 67,00 51,00 Meto Turizm 75,00 75,00 -- -- 75,00 75,00 75,00 75,00 Mezzaluna 70,00 70,00 -- -- 70,00 70,00 70,00 70,00 MK Holding 60,00 60,00 -- -- 60,00 60,00 60,00 60,00 Mora (7) 67,00 51,00 -- -- 67,00 51,00 67,00 51,00 Nahita 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 NTV Batı 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 NTV Radyo 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Nusret Dubai 100,00 100,00 -- -- 100,00 100,00 51,00 51,00 Nusret Limited 100,00 100,00 -- -- 100,00 100,00 51,00 51,00 Oran Gurme 100,00 100,00 -- -- 100,00 100,00 70,00 70,00 Panther Marina 100,00 100,00 -- -- 100,00 100,00 99,99 99,99 Populist 60,00 60,00 -- -- 60,00 60,00 60,00 60,00 Portakal Yazılım (2) 60,00 60,00 -- -- 60,00 60,00 36,00 24,00 Pozitif Arena 80,00 80,00 -- -- 80,00 80,00 80,00 80,00 Pozitif Müzik A.Ş. 80,00 80,00 -- -- 80,00 80,00 80,00 80,00 Pozitif MüzikYapım A.Ş. 80,00 80,00 -- -- 80,00 80,00 80,00 80,00 Sait 60,00 60,00 -- -- 60,00 60,00 60,00 60,00 Salıpazarı 81,00 81,00 -- -- 81,00 81,00 81,00 81,00 Sibenik Upravljanje 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Sititur 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 87

34 Group enterprises (continued) 34.1 List of subsidiaries (continued) Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 Soya 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Sportif Radyo 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Star Avrupa 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Star TV 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Şahintur 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Toms Kitchen Restaurant Holdings Limited 74,00 74,00 -- -- 74,00 74,00 43,41 43,41 Tansaş Gıda 99,87 99,87 -- -- 99,87 99,87 99,87 99,87 Teknik Mühendislik 99,90 99,90 -- -- 99,90 99,90 99,90 99,90 Zadar 100,00 60,00 -- -- 100,00 60,00 100,00 60,00 Hospitality 100,00 100,00 -- -- 100,00 100,00 100,00 60,00 The Tom Aikens Group Ltd 100,00 100,00 -- -- 100,00 100,00 43,41 43,41 Tom Aikens Ltd 100,00 100,00 -- -- 100,00 100,00 43,41 43,41 Tiendes 74,96 74,96 -- -- 74,96 74,96 52,47 52,47 Tom's Kitchen Ltd 100,00 100,00 -- -- 100,00 100,00 43,41 43,41 Uydu Dijital 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Villa Dubrovnik 88,17 86,80 -- -- 88,17 86,80 88,17 86,80 Vitapark 100,00 70,00 -- -- 100,00 70,00 100,00 70,00 Voyager 100,00 100,00 -- -- 100,00 100,00 100,00 100,00 Well Body Holding B.V. 100,00 100,00 -- -- 100,00 100,00 99,99 99,99 West Mediternean 100,00 -- -- -- 100,00 -- 99,99 -- Well Body Holding Coöperatief U.A. -- 100,00 -- -- -- 100,00 -- 99,99 Yonca Radyo 100,00 100,00 -- -- 100,00 100,00 99,96 99,96 Zea Marina S.A. (3) 75,00 56,25 -- -- 75,00 56,25 67,50 38,38 (1) Consolidated under MK Holding. (2) Consolidated under Hedef Medya. (3) Consolidated under K&G medmarinas Management S.A. (4) Sale of shares of E Elektronik has been finalised on 21 April 2015, (5) Sale of shares of Itsumi has been finalised on 13 July 2015. (6) Sale of shares of Enformasyon has been finalised on 7 October 2015. (7) These companies which were classified as joint venture in preivous years, have been consolidated as subsidiaries in 2015 after acquisitions of additional shares. 88

34 Group enterprises (continued) 34.2 List of associates The table below sets out the associates and shows the shareholding structure of the associates at 31 December: Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 Adelia LTD 100,00 -- -- -- 100,00 -- 33,33 -- Coya Dubai 28,00 28,00 -- -- 28,00 28,00 28,00 28,00 Coya London 20,00 20,00 -- -- 20,00 20,00 20,00 20,00 Coya Miami 20,00 20,00 -- -- 20,00 20,00 20,00 20,00 İstinye Yönetim Hizmetleri 42,00 42,00 -- -- 42,00 42,00 42,00 42,00 Garanti Bank 10,00 24,23 -- 0,66 10,00 24,89 9,72 23,95 Garanti Bank SA 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Bilişim 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Faktoring 81,84 81,84 -- -- 81,84 81,84 7,96 19,60 Garanti Filo 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Filo Sigorta 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Holding B.V. 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Hizmet 99,40 99,40 -- -- 99,40 99,40 9,66 23,80 Garanti Konut 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Kültür 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Leasing 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Portföy 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Yatırım 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Garanti Yatırım Ortaklığı (3) 3,30 3,30 -- -- 3,30 3,30 0,32 0,79 G Netherlands 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 GBI 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 GB Moscow 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 GEHAŞ 84,91 84,91 -- -- 84,91 84,91 8,26 20,33 GÖSAŞ 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Kiko 49,00 -- -- -- 49,00 -- 32,83 -- Leaseplan (1) -- 100,00 -- -- -- 100,00 -- 38,68 LPD Holding (1) -- 49,00 -- -- -- 49,00 -- 38,68 Motoractive 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Ralfi 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 Reidin 30,00 30,00 -- -- 30,00 30,00 30,00 30,00 SARL Eden Rock 100,00 -- -- -- 100,00 -- 33,33 -- SAS Eden Rock Villa Rental 100,00 -- -- -- 100,00 -- 33,33 -- SCI Afternoon Tea 100,00 -- -- -- 100,00 -- 33,33 -- Solid Rock Property SAS 33,33 -- -- -- 33,33 -- 33,33 -- Trifoi Real Estate Company 100,00 100,00 -- -- 100,00 100,00 9,72 23,95 VDF Faktoring (2) 100,00 100,00 -- -- 100,00 100,00 38,68 38,68 VDF Tüketici 49,00 49,00 -- -- 49,00 49,00 36,04 36,04 VDF Servis 49,00 49,00 -- -- 49,00 49,00 38,68 38,68 VDF Sigorta (2) 100,00 100,00 -- -- 100,00 100,00 38,69 38,69 World Wide 30,00 30,00 -- -- 30,00 30,00 29,99 29,99 Yüce Auto 50,00 50,00 -- -- 50,00 50,00 36,50 36,50 Zingat 100,00 -- -- -- 100,00 -- 30,00 -- 89

34 Group enterprises (continued) 34.2 List of associates (continued) (1) Sale of shares of LPD Holding and Leaseplan has been finalised on 16 Februrary 2015. (2) Consolidated under VDF Servis Holding. (3) Although the ownership rate of Garanti Bank in this company is less than 50%. Garanti Bank has the controlling power on the operations and financial policies of this company. 34.3 List of joint ventures / joint operations The table below sets out the joint ventures and joint operations and shows the shareholding structure of the joint ventures and joint operations as at 31 December: Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries 90 Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 Abu Dhabi 90,00 90,00 -- -- 90,00 90,00 45,01 45,01 Acropolis S.P.A 51,00 51,00 -- -- 51,00 51,00 51,00 51,00 Argos Bağcılık 100,00 -- -- -- 100,00 -- 50,00 -- Argos Kültür 90,00 -- -- -- 90,00 -- 45,00 -- Aslancık 33,33 33,33 -- -- 33,33 33,33 33,33 33,33 Azumi Limited 50,01 50,01 -- -- 50,01 50,01 50,01 50,01 Bodyism Global Holdings 2014 50,01 50,01 -- -- 50,01 50,01 50,01 50,01 Bodyism Global Limited 100,00 100,00 -- -- 100,00 100,00 50,01 50,01 Bodyfood 100,00 100,00 -- -- 100,00 100,00 50,01 50,01 Bodywear 100,00 100,00 100,00 100,00 50,01 50,01 Boyabat 34,00 34,00 -- -- 34,00 34,00 33,97 33,97 Chenot Cosmetique S.a.g.l. (3) 100,00 -- -- -- 100,00 -- 50,99 -- Chenot Cosmetic S.R.L. (3) 100,00 -- -- -- 100,00 -- 50,99 -- Chenot Dietetique S.a.g.l (3) 100,00 -- -- -- 100,00 -- 50,99 -- Doğuş Alarko (1) 37,50 37,50 -- -- 37,50 37,50 37,50 37,50 Doğuş SK Girişim 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Doğuş Planet 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Doğuş Polat (1) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Doğuş Prestige (1) 60,00 60,00 -- -- 60,00 60,00 60,00 60,00 Doğuş YDA (1) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Ege Turizm 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Gestin Turizm 50,00 -- -- -- 50,00 -- 50,00 -- Gülermak Doğuş (1) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 HC Biontis S.R.L. (3) 100,00 -- -- -- 100,00 -- 50,99 -- HC International S.A. 50,99 -- -- -- 50,99 -- 50,99 -- HC Trademarks S.a.r.l. (3) 100,00 -- -- -- 100,00 -- 50,99 -- Kanlıca Turizm 49,00 49,00 -- -- 49,00 49,00 36,38 36,38 Kazakistan Yol Total 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Kömürhan Köprüsü 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Krone Doğuş (4) -- 49,00 -- -- -- 49,00 -- 36,04 Lamda Dogus 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Lamda Flisvos (2) 83,39 70,00 -- -- 83,39 70,00 41,69 35,00 Lamda Marina (2) 77,23 77,23 -- -- 77,23 77,23 32,20 27,03 L atelier 100,00 -- -- -- 100,00 -- 60,00 -- Mad Atelier 60,00 -- -- -- 60,00 -- 60,00 -- Meiller Doğuş 49,00 49,00 -- -- 49,00 49,00 35,77 35,77

34 Group enterprises (continued) 34.3 List of joint ventures / joint operations (continued) Direct and indirect ownership interest held by Doğuş Holding and its subsidiaries Ownership interest through shares held by Şahenk Family Proportion of ownership interest Proportion of effective interest of Doğuş Holding and its subsidiaries 2015 2014 2015 2014 2015 2014 2015 2014 Ortakonak Gayrimenkul 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Robata Rest Ltd 90,00 90,00 -- -- 90,00 90,00 50,01 50,01 Roka Mayfair Ltd 85,00 85,00 -- -- 85,00 85,00 42,51 42,51 Roka Aldwych Ltd 100,00 100,00 -- -- 100,00 100,00 50,01 50,01 Corpera 50,00 50,00 -- -- 50,00 50,00 50,00 50,00 Taddeo Trading Ltd 100,00 100,00 -- -- 100,00 100,00 50,01 50,01 Taraneete International Ltd 73,76 73,76 -- -- 73,76 73,76 50,01 50,01 TDB Sigorta 33,33 -- -- -- 33,33 -- 33,33 -- Time Result Investments Ltd 62,51 62,51 -- -- 62,51 62,51 50,01 50,01 Turnwise Enterprices Ltd -- 30,00 -- -- -- 30,00 -- 15,00 TÜVTURK İstanbul 100,00 100,00 -- -- 100,00 100,00 24,34 24,34 TÜVTURK Kuzey 33,33 33,33 -- -- 33,33 33,33 24,34 24,34 Tüv Süd Doğuş Ekspertiz 49,95 49,95 -- -- 49,95 49,95 49,95 49,95 TÜVTURK Güney 33,33 33,33 -- -- 33,33 33,33 24,34 24,34 Uzunetap 90,00 -- -- -- 90,00 -- 45,00 -- Wildfire Entertainment Ltd. 40,00 40,00 -- -- 40,00 40,00 20,00 20,00 YMDYYB (1) 26,00 26,00 -- -- 26,00 26,00 26,00 26,00 Zuma Bangkok Ltd 49,00 49,00 -- -- 49,00 49,00 24,50 24,50 Zuma Club LLC 75,01 75,01 -- -- 75,01 75,01 50,01 50,01 Zuma Japanese Restaurant INC 100,00 100,00 -- -- 100,00 100,00 50,01 50,01 Zuma Japanese Restaurant Miami LLC 90,00 90,00 -- -- 90,00 90,00 50,01 50,01 Zuma Las Vegas LLC 100,00 -- -- -- 100,00 -- 50,01 -- Zuma NY LLC 100,00 100,00 -- -- 100,00 100,00 45,01 45,01 Zuma Rome 100,00 -- -- -- 100,00 -- 50,01 -- Zuma Turizm 90,00 90,00 -- -- 90,00 90,00 57,13 57,13 Zuma USA LLC 90,00 90,00 -- -- 90,00 90,00 45,01 45,01 (1) The joint operations are proportionately consolidated under the Group in accordance with IFRS 11 Joint Arrangements (2) Consolidated under Lamda Doğuş. (3) Consolidated under HC International S.A. (4) Sale of shares of Krone has been finalised on 8 April 2015. 91

34 Group enterprises (continued) The major changes in Group enterprises for the year ended 31 December 2015 are summarised in the following paragraphs: 34.4 Establishment of new entities On 23 January 2015, Nahita has established Etiler Kebapçılık Restoran A.Ş. The area of operation of the entity is restaurant establishment. On 2 April 2015, Gestin Turizm Yatırım İşletmeleri İnşaat ve Ticaret A.Ş. has been established. The area of operation of the entity is hospitality. On 15 April 2015, Zingat Gayrimenkul Bilgi Sistemleri A.Ş. has been established. The area of operation of the entity is real estate research. On 17 April 2015, Nahita has established Günaydın Antalya Restoran Gıda Turizm Ticaret A.Ş.. The area of operation of the entity is restaurant establishment. On 7 May 2015, the Group has established Dogus Leisure & Entertainment Investment Limited. The entity is an investment company. On 12 May 2015, the Group has established Doğuş Zhenfa Kozmetik Ticaret A.Ş.. The area of operation of the entity is cosmetic retail services. On 21 July 2015, the Group has established Kiko Kozmetik Ürünleri Ticaret A.Ş.. The area of operation of the entity is cosmetic retail services. On 23 July 2015, the Group has established TDB Sigorta Brokerlık A.Ş.. The area of operation of the entity is insurance agency. On 19 October 2015, the Group has established Doğuş Fotoğraf ve Kamera Ekipmanları A.Ş.. The area of operation of the entity is camera equipment sales. On 21 October and 22 October 2015, the Group has established respectively, D-Et International Holding Coöperatif U.A. and D-Et International Holding B.V.. These entitites are investment companies. On 17 November 2015, the Group has established Doğuş Dijital Hizmetler A.Ş.. The area of operation of the entity is digital media services. In 2015, the Group has established Zuma Las Vegas LLC and Zuma Rome. The area of operation of the entities is restaurant establishment. 34.5 Sale of entities Sale of LPD Holding A.Ş. to LeasePlan Corporation N.V. has been finalised on 16 February 2015. On 8 April 2015, sale of shares of Krone Doğuş Treyler Sanayi ve Ticaret A.Ş. owned by Doğuş Group companies representing 49% of the paid-in share capital of the Company in accordance with the share purchase agreement signed between Doğuş Group and Fahrzeugwerk Bernard Krone GmbH dated 29 January 2015 has been finalised. On 21 April 2015, E-Elektronik Bahis Oyunları A.Ş., which operates in digital media sector named as Oley.com, is sold to Ages Bilişim Teknolojileri San. ve Tic. A.Ş. in accordance with the approval of Spor Toto Teşkilat Başkanlığı. On 13 July 2015, Nahita has sold all shares of Ryo-Tei Itsme Company. 92

34 Group enterprises (continued) 34.5 Sale of entities (continued) On 27 July 2015, in accordance with the terms of the agreement between BBVA and Doğuş Group which was previously disclosed on 19 November 2014, sale of shares representing 14,23% of the share capital of T. Garanti Bankası A.Ş. ("Garanti Bank") with a nominal value of TL 597.469.389 by Doğuş Group to BBVA have been completed. Following the acquisition, BBVA s stake in Garanti Bank has now reached 39,9%. Doğuş Group's interest in Garanti Bank has decreased to 10% of the share capital. The purchase price paid on the transfer date by BBVA is TL 8,765 per share. In addition, the sellers have already received the dividend paid to Garanti Bank s shareholders in April 2015 amounting to 0,135 Turkish Liras per share and accordingly the total purchase price reached TL 8,90 per share. On 30 July 2015, the Group signed business partnership contracts in order to execute sales representation of Discovery Communications TV channels operating in. The shares were transferred on 7 October 2015. 34.6 Liquidation / merger of entities Doğuş Auto Mısr LLC, Doğuş Auto Mısır JS, Doğuş Finance Ukraine, Doğuş Prestige and Doğuş Varlık Kiralama A.Ş. are under liquidation. Dogus Montenegro Coöperatif U.A. and Well Body Holding Coöperatief U.A. have merged under D Marine Investments Holding Coöperatief U.A. Doğuş Cennet Koyu Sağlıklı Yaşam Hizm.A.Ş. has merged with D Otel Plaj İşletmeciliği A.Ş.. Dogus Hoteli d.o.o has merged with Dogus Marine Croatia. 34.7 Change in structure/ title D Otel Bodrum Sağlıklı Yaşam Hizmetleri Ticaret A.Ş. changed its legal name as D Otel Plaj İşletmeciliği A.Ş. Dogus Marine Croatia d.o.o changed its legal name as Dogus Croatia d.o.o. Tenos d.o.o changed its legal name as Zadar Resort d.o.o. Tenos Turizam d.o.o changed its legal name as Hospitality d.o.o. Doğuş Hoteli Sibenik d.o.o changed its legal name as Doğuş Marina Upravljanje d.o.o. MK Mykonos SA changed its legal name as Doğuş Hellas SA. Tag Restaurants Holdings Ltd changed its legal name as Toms Kitchen Restaurant Holdings Limited. IMG Doğuş Spor Moda ve Medya Hizmetleri ve Ticaret A.Ş. changed its legal name as Doğuş Spor Moda ve Medya Hizmetleri ve Ticaret A.Ş. 35 Significant events Group has acquired concession right for the Volkswagen Arena premises for 44 years. On 4 February 2015, the Group has purchased an additional 21,76% shares of K&G Medmarinas Management S.A., increasing its shareholding to 90%. On 15 February 2015, Nahita has purchased remaining shares of LPM İstanbul A.Ş., increasing its shareholding to 100%. On 24 March 2015, Doğuş Holding has purchased an additional 20% shares of Hedef Medya Tanıtım İnteraktif Medya Pazarlama A.Ş. 93

35 Significant events (continued) On 2 April 2015, Nahita has increased its ownership rate in Sele Restaurant Group from 51% to 67% by acquiring additional shares. On 14 April 2015, the Group has acquired 51% of the shares of HC International S.A., a société anonyme incorporated under the laws of Luxembourg, pursuant to the terms of a share sale and purchase agreement dated 19 January 2015. On 2 June 2015, Doğuş Holding has purchased an additional 30% shares of Vitapark Spor Turizm Hizmet İnşaat ve Ticaret A.Ş. and an additional 20% shares of Doğuş Cennet Koyu Sağlıklı Yaşam Hizmetleri Ticaret A.Ş., increasing its shareholding to 100%. On 6 July 2015, Dream International BV has purchased a 60% interest in the shares of Mad Atelier International B.V. On 30 July 2015, K&G Medmarinas Management S.A. has purchased additional shares in Zea Marina S.A. thereby increasing its shareholding to 75%. The Group, has purchased an additional 30% of Zadar Resort, increasing its shareholding to 100%. In 2015, Doğuş Tourism Group has opened three new hotels / beaches, Murat Reis Ayvalık, and D-Resort Šibenik, Croatia and Il Riccio Restaurant and Beach Club, Bodrum. On 6 August 2015, Group has purchased remaining shares of Doğuş Spor Moda (formerly known as IMG Doğuş Spor Moda) and increased its shareholding to 100%. The name of the Company has been changed as Doğuş Spor Moda ve Medya Hizmetleri ve Ticareti A.Ş. On 9 September 2015, Nahita has purchased remaining shares of Lacivert A.Ş. and Kivahan Turizm Tic A.Ş. and increased its shareholding to 100%. On 23 September 2015, D Marine Investments Holding B.V. has purchased a 100% interest in the shares of West Mediteranean Holding Limited. On 7 December 2015, D Marine Investments Holding B.V. has acquired 33,3% of Solid Rock Property SAS. On 12 December 2015, Artvin Hydroelectric Plant has come into operation. On 21 December 2015, D Marine Investments Holding B.V. has acquired 70% of Marina Barcelona 92 S.A. In 2015, Gestin Turizm Yatırım İşletmeleri İnşaat ve Ticaret A.Ş. has acquiered 100% of Argos Bağcılık ve Şarapçılık San. Tic. A.Ş., 90% of Argos Kültür Sanat Tanıtım Organizasyon Tic. A.Ş. and 100% of Uzunetap Tanıtım Organizasyon Tic. A.Ş. Doğuş İnşaat has signed or in the process of signing contracts for the construction of the following projects RTE University (Rize) Customer : Doğuş Holding A.Ş. Contract Value : TL 50 million Contract Date : 26 January 2015 Doğuş Share : 100 % Type : Construction of RTE University s Faculty of Technology Duration : 15 months 94

35 Significant events (continued) Soma Residences (Manisa) Customer : Doğuş Holding A.Ş. Contract Value : TL 60 million Contract Date : 28 February 2015 Doğuş Share : 100 % Type : Construction of 301 Residences Duration : 15 months Star Oil Refinery Dock (İzmir) Customer : TSGI Mühendislik ve İnşaat Ltd. (Tecnicas Reunidas, Saipem, GS Engineering, Itochu JV) Contract Value : USD 200 million Contract Date : 25 March 2015 Doğuş Share : 50 % Type : Construction of Onshore Structures Duration : 24 months Ergene Havzası OSD Fresh Water Treatment Plant (Çorlu) Customer : Derin Deniz Deşarj A.Ş. Contract Value : TL 69 million Contract Date : 21 April 2015 Doğuş Share : 100 % Type : Construction treatment plant and connection to water chute Duration : 24 months Adana Hacı Sabancı OIS Water Treatment Plant Customer : Adana Hacı Sabancı Organize Sanayi Bölgesi Contract Value : TL 18.6 million ve EUR 6 million Contract Date : 28 August 2015 Doğuş Share : 100 % Type : Construction of waste water treatment plant Duration : 730 days On 27 July 2015, in accordance with the terms of the agreement between BBVA and Doğuş Group which was previously disclosed on 19 November 2014, sale of shares representing 14,23% of the share capital of T. Garanti Bankası A.Ş. ("Garanti Bank") with a nominal value of TL 597.469.389 by Doğuş Group to BBVA have been completed. Following the acquisition, BBVA s stake in Garanti Bank has now reached 39,9%. Doğuş Group's interest in Garanti Bank has decreased to 10% of the share capital. The purchase price paid on the transfer date by BBVA is TL 8,765 per share. In addition, the sellers have already received the dividend paid to Garanti Bank s shareholders in April 2015 amounting to 0,135 Turkish Liras per share and accordingly the total purchase price reached TL 8,90 per share. Acquisition of 100% of Man Finansman A.Ş. by Volkswagen Doğuş Finansman A.Ş. has been completed on 6 October 2015. Following the acquisition, Man Finansman A.Ş. and Volkswagen Doğuş Finansman A.Ş. merged under Volkswagen Doğuş Finansman A.Ş. On 19 November 2015, Doğuş Otomotiv Servis ve Ticaret A.Ş. announced that production at Meiller Doğuş Damper Sanayi ve Ticaret Limited Şirketi, at which Doğuş Otomotiv has 49% shareholding, has been stopped. The distribution operations of Meiller tippers in will be carried by Dogus Otomotiv. 95

36 Acquisition of subsidiaries and non-controlling interests Acquisition in 2015 36.1 Acquisition of additional interests of Hedef Medya On 24 March 2015, the Group has purchased an additional 20 percent of shares of Hedef Medya for TL 21.263 thousand. Following the completion of the additional share purchases, Hedef Medya was considered as a Subsidiary with 60% of the voting rights held by Doğuş Holding and was included by using the full consolidation method in the consolidated financial statements of the Group dated 31 December 2015. The additional share purchase transaction was considered as change of control within the framework of the provisions of IFRS 3 Business Combinations. Accordingly, a goodwill amounting to TL 10.261 thousand resulting from the purchase of additional 20% of shares was recognised and the impairment loss amounting to TL 22 thousand resulting from the recognition of the existing 40% shares at their fair value were recognised in profit or loss in the gains and losses from investment activities account. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values and have been determined on a provisional basis. Under IFRS 3, customer relationships amounting to TL 56.981 thousand has been recognised as an intangible asset arising from the acquisition of Hedef Medya. The calculation of profit/loss resulting from the change of control and information regarding the net assets controlled are as follows: Consideration paid for additional share purchase (20%) 21.263 Fair value of shares held before purchase (40%) 22.004 Fair value of non-controlling interests (40%) 22.004 Total 65.271 Fair value of net assets controlled (100%) (55.010) Goodwill 10.261 Carrying amount of shares held before purchase (40%) 22.026 Fair value of shares held before purchase (40%) 22.004 Impairment of shares held before purchase (22) The fair values (100%) of controlled identifiable assets and liabilities following the additional share purchase in accordance with IFRS 3 are as follows: Identifiable assets acquired and liabilities assumed Property and equipment 1.623 Intangible assets 58.840 Due from related parties 9 Trade receivables 3.440 Other non current assets 12 Other current assets 336 Inventories 82 Deferred tax assets 178 Cash and cash equivalents 4.514 Trade payables (610) Other current liabilities (1.010) Other non-current liabilities (239) Non-controlling interest (769) Deferred tax liability (11.396) Total net identifiable assets 55.010 96

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.1 Acquisition of additional interests of Hedef Medya (continued) Cash consideration transferred 21.263 Cash and cash equivalents acquired (4.514) Net cash outflow arising on acquisition 16.749 The goodwill is mainly attributable to the deal rationale of the Group s ambition to to acquire a strong growing which is engaged in e-marketing. 36.2 Acquisition of additional interests of LPM On 15 February 2015, the Group has purchased an additional 47,22 percent of shares of LPM for TL 2.207 thousand. Following the completion of the additional share purchases, LPM was considered as a Subsidiary with 100% of the voting rights held by the Group and was included by using the full consolidation method in the consolidated financial statements of the Group dated 31 December 2015. The additional share purchase transaction was considered as change of control within the framework of the provisions of IFRS 3 Business Combinations. Accordingly, a goodwill amounting to TL 2.874 thousand resulting from the purchase of additional 47,22% of shares was recognised and the impairment loss amounting to TL 292 thousand resulting from the recognition of the existing 52,78% shares at their fair value, were recognised in profit or loss, in the losses from investment activities account. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values and have been determined on a provisional basis. The calculation of profit/loss resulting from the change of control and information regarding the net assets controlled are as follows: Consideration paid for additional share purchase (47,22%) 2.207 Fair value of shares held before purchase (52,78%) (746) Total 1.461 Fair value of net assets controlled (100%) 1.413 Goodwill 2.874 Carrying value of shares held before purchase (52,78%) (454) Fair value of shares held before purchase (52,78%) (746) Impairment on shares held before purchase (292) The fair values (100%) of controlled identifiable assets and liabilities following the additional share purchase in accordance with IFRS 3 are as follows: Identifiable assets acquired and liabilities assumed Property and equipment 8.300 Intangible assets 188 Trade receivables 177 Other current assets 2.011 Inventories 595 Deferred tax assets 430 Cash and cash equivalents 113 Trade payables (1.535) Other current liabilities (506) Due to related parties (2.904) Long term borrowings (8.282) Total net identifiable assets (1.413) 97

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.2 Acquisition of additional interests of LPM (continued) Cash consideration transferred 2.207 Cash and cash equivalents acquired (113) Net cash outflow arising on acquisition 2.094 The goodwill is mainly attributable to the deal rationale of the Group s ambition to penetrate a promising domestic market and acquire strong brand names which are engaged in offering highend fine dining services to A class customers. 36.3 Acquisition of additional interests of K&G Medmarinas Management S.A On 4 February 2015, the Group has purchased an additional 21,76 percent of shares of K&G for TL 16.568 thousand. Following the completion of the additional share purchases, K&G was considered as a Subsidiary with 90% of the voting rights held by the Group and was included by using the full consolidation method in the consolidated financial statements of the Group dated 31 December 2015. The additional share purchase transaction was considered as change of control within the framework of the provisions of IFRS 3 Business Combinations. Accordingly, a goodwill amounting to TL 9.159 thousand resulting from the purchase of additional 21,76% of shares was recognised and the impairment loss amounting to TL 4.364 thousand resulting from the recognition of the existing 68,24% shares at their fair value, was recognised in profit or loss, in the losses from investment activities account. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values and have been determined on a provisional basis. The calculation of profit/loss resulting from the change of control and information regarding the net assets controlled are as follows: Consideration paid for additional share purchase (21,76%) 16.568 Fair value of shares held before purchase (68,24%) 30.828 Fair value of non-controlling interests (10%) 4.518 Total 51.914 Fair value of net assets controlled (100%) (42.755) Goodwill (*) 9.159 (*) Considering that marinas operated by K&G have concession for a limited number of years goodwill amounting to TL 9.159 thousand has been reclassified to other intangible assets. Carrying value of shares held before purchase (68,24%) 35.192 Fair value of shares held before purchase (68,24%) 30.828 Impairment on shares held before purchase (4.364) The fair values (100%) of controlled identifiable assets and liabilities following the additional share purchase in accordance with IFRS 3 are as follows: Identifiable assets acquired and liabilities assumed Property and equipment 68.118 Other non-current assets 55.802 Cash and cash equivalents 18.241 Non-controlling interest (19.106) Due to related parties (23.081) Other current liabilities (49.025) Deferred tax liabilities (8.194) Total net identifiable assets 42.755 98

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.3 Acquisition of additional interests of K&G Medmarinas Management S.A (continued) Cash consideration transferred 16.568 Cash and cash equivalents acquired (18.241) Net cash inflow arising on acquisition (1.673) 36.4 Acquisition of additional interests of Sele Restaurant Group On 2 April 2015, the Group has purchased an additional 16 percent of shares of Sele Restaurant Group for TL 11.537 thousand. Following the completion of the additional share purchases, Sele Restaurant Group was considered as a Subsidiary with 67% of the voting rights held by the Group and was included by using the full consolidation method in the consolidated financial statements of the Group dated 31 December 2015. The additional share purchase transaction was considered as change of control within the framework of the provisions of IFRS 3 Business Combinations. Under IFRS 3 brand names, Mora, Masa, Darphane and Borsa amounting to TL 33.536 thousand have been recognized as intangible assets arising from the acquisition of Sele Restaurant Group. The fair values of the brand names acquired are based on the Multi-period Excess Earning Method. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values and have been determined on a provisional basis. The calculation of profit/loss resulting from the change of control and information regarding the net assets controlled are as follows: Consideration paid for additional share purchase (16%) 11.537 Fair value of shares held before purchase (51,00%) 43.088 Fair value of non-controlling interests (33%) 7.940 Total 62.565 Fair value of net assets controlled (100%) (24.061) Goodwill 38.504 The fair values (100%) of controlled identifiable assets and liabilities following the additional share purchase in accordance with IFRS 3 are as follows: Identifiable assets acquired and liabilities assumed: Property and equipment 7.527 Intangible assets 34.490 Other non-current assets 333 Trade receivables 8.259 Other current assets 1.337 Inventories 1.065 Due from related parties 14.893 Deferred tax asset 60 Cash and cash equivalents 1.368 Trade payables (6.233) Other current liabilities (1.935) Due to related parties (21.929) Short term loans and borrowings (4.796) Long term loans and borrowings (2.349) Other non-current liabilities (1.178) Deferred tax liabilities (6.851) Total net identifiable assets 24.061 99

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.4 Acquisition of additional interests of Sele Restaurant Group (continued) Cash consideration transferred 11.537 Cash and cash equivalents acquired (1.368) Net cash outflow arising on acquisition 10.169 The goodwill is mainly attributable to the deal rationale of the Group s ambition to penetrate a promising domestic market and acquire strong brand names which are engaged in offering highend fine dining services to A class customers. 36.5 Acquisition of Marina Barcelona 92 S.A. With the share transfer agreement dated 21 December 2015, the Group purchased 70 percent of shares of Marina Barcelona 92 S.A. and the Group obtained the control and 70 percent voting rights in Marna Barcelona 92 S.A. Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values and have been determined on a provisional basis. The following table summarises the major classes of consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash paid 168.503 Total purchase consideration 168.503 Identifiable assets acquired and liabilities assumed Property and equipment 69.940 Intangible assets 79.185 Trade receivables 29.770 Other non-current assets 1.084 Other current assets 20.710 Cash and cash equivalents 32.608 Short term borrowings (44.561) Trade payables (53.802) Other current liabilities (7.700) Other non-current liabilities (2.032) Deferred tax liabilities (3.220) Total net identifiable assets 121.982 Goodwil Goodwill has been recognised as a result of the acquisition as follows: Total consideration transferred 168.503 Non-controlling interest based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquire 36.595 Less: Value of net identifiable assets (121.982) Goodwill (*) 83.116 Cash consideration transferred 168.503 Cash and cash equivalents acquired (32.608) Net cash outflow arising on acquisition 135.895 100

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.5 Acquisition of Marina Barcelona 92 S.A. (continued) MB92 has a strong and known brand position with offering high quality maintenance and repairment services for customers who have up to 220 meters luxury yachts in one of the biggest maintenance facility with a strong position to realize their potential provided a basis for the goodwill. (*) MB92 has a concession right for a limited number of years and therefore goodwill has been reclassified to other intangible assets as concession right. 101

36 Acquisition of subsidiaries and non-controlling interests (continued) Acquisitions in 2014 36.6 Acquisition of Itsumi With the share transfer agreement dated 22 January 2014, the Group purchased 50 percent of shares of Ryo-Tei Itsme Gıda Ürünleri Turizm ve Ticaret A.Ş. ( Itsumi ) and the Group obtained the control and 50 percent voting rights in Itsumi. Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values. Under IFRS 3, brand name, Itsumi, amounting to TL 2.658 thousand has been recognised as an intangible asset arising from the acquisition of Itsumi. The fair value of the brand name acquired is based on the Multi-period Excess Earnings Method. The following table summarises the major classes of consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash paid 2.230 Total consideration 2.230 Identifiable assets acquired and liabilities assumed Property and equipment 161 Intangible assets 2.658 Inventories 59 Trade receivables 41 Due from related parties 6 Other current assets 2 Cash and cash equivalents 200 Trade payables (139) Loans and borrowings (1) Other current liabilities (208) Deferred tax liabilities (532) Total net identifiable assets 2.247 Goodwill Goodwill has been recognised as a result of the acquisition as follows: Total consideration transferred 2.230 Non-controlling interest based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquire 1.123 Less: Value of net identifiable assets (2.247) Goodwill 1.106 Cash consideration transferred 2.230 Cash and cash equivalents acquired (200) Net cash outflow arising on acquisition 2.030 The goodwill is mainly attributable to the deal rationale of the Group s ambition to penetrate a promising domestic market and acquire strong brand names which are engaged in offering highend fine dining services to A class customers. During the year 2015, the Group has sold the shares of Itsumi and derecognised related brand name and goodwill. 102

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.7 Acquisition of Villa Dubrovnik With the share transfer agreement dated 12 March 2014, the Group purchased 86,8 percent of shares of Villa Dubrovnik d.d. and on 11 April 2014 the Group obtained the control and 86,8 percent voting rights in Villa Dubrovnik. The group has purchased additional shares in Villa Dubrovnik d.d. thereby increasing its shareholding to 88,17%. Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values provisionally. However, in 2015 the fair value of assets, liabilities and contingent liabilities has been finalised. Under IFRS 3, brand name, Villa Dubrovnik, amounting to TL 7.332 thousand has been recognised as an intangible asset arising from the acquisition of Villa Dubrovnik. The fair value of the brand name acquired is based on the Multi-period Excess Earnings Method. The following table summarises the major classes of consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash paid 80.425 Total consideration 80.425 Identifiable assets acquired and liabilities assumed Property and equipment 120.849 Intangible assets 7.332 Inventories 369 Trade receivables 1.822 Due from related parties 131 Other current assets 449 Cash and cash equivalents 2.893 Trade payables (336) Loans and borrowings (32.020) Other current liabilities (4.282) Due to related parties (572) Deferred tax liabilities (13.855) Total net identifiable assets 82.780 Goodwill Goodwill has been recognised as a result of the acquisition as follows: Total consideration transferred 80.425 Non-controlling interest based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquire 9.792 Less: Value of net identifiable assets (82.780) Goodwill 7.437 Cash consideration transferred 80.425 Cash and cash equivalents acquired (2.893) Net cash outflow arising on acquisition 77.532 The goodwill is mainly attributable to the deal rationale of the Doğuş Tourism Group s ambition to penetrate a promising domestic market and acquire strong brand names which are engaged in offering high-end fine accommodation services to A class customers. 103

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.8 Acquisition of Argos in Cappadocia With the share transfer agreement dated 26 March 2014, the Group purchased 80 percent of shares of Argos Turizm Yatırım ve Ticaret A.Ş. ( Argos in Cappadocia ) and on 13 May 2014 the Group obtained the control and 80 percent voting rights in Argos in Cappadocia. Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values. Under IFRS 3, brand name, Argos in Cappadocia, amounting to TL 3.121 thousand has been recognised as an intangible asset arising from the acquisition of Argos in Cappadocia. The fair value of the brand name acquired is based on the Multi-period Excess Earnings Method. The following table summarises the major classes of consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash paid 37.702 Total consideration 37.702 Identifiable assets acquired and liabilities assumed Property and equipment 82.048 Intangible assets 3.220 Inventories 1.241 Trade receivables 2.742 Other current assets 713 Cash and cash equivalents 4.857 Trade payables (562) Loans and borrowings (10.260) Other current liabilities (772) Deferred tax liabilities (13.211) Total net identifiable assets 70.016 Bargain Purchase Gain Bargain purchase gain has been recognised as a result of the acquisition as follows: Total consideration transferred 37.702 Non-controlling interest based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquire 14.003 Less: Value of net identifiable assets (70.016) Bargain purchase gain (18.311) Cash consideration transferred 37.702 Cash and cash equivalents acquired (4.857) Net cash outflow arising on acquisition 32.845 The bargain purchase gain arising from the difference between consideration transferred and the recognised amounts of identifiable assets acquired and liabilities assumed at the acquisition date is recognised under other operating income in profit or loss. 104

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.9 Acquisition of Tenos d.o.o With the share transfer agreement dated 12 May 2014, the Group purchased 100 percent of shares of Tenos d.o.o ( Tenos ) and on 12 May 2014 the Group obtained the control and 100 percent voting rights in Tenos. Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values provisionally. However, in 2015 the fair value of assets, liabilities and contingent liabilities has been finalised. The following table summarises the major classes of consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash paid 67.657 Total consideration 67.657 Identifiable assets acquired and liabilities assumed Property and equipment 73.123 Other current assets 4.341 Cash and cash equivalents 92 Trade payables (109) Due to related parties (19.829) Other current liabilities (1.773) Total net identifiable assets 55.845 Goodwill Goodwill has been recognised as a result of the acquisition as follows: Total consideration transferred 67.657 Non-controlling interest based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquiree -- Less: Value of net identifiable assets (55.845) Goodwill 11.812 Cash consideration transferred 67.657 Cash and cash equivalents acquired (92) Net cash outflow arising on acquisition 67.565 The goodwill is mainly attributable to the deal rationale of the Doğuş Tourism Group s ambition to penetrate a promising domestic market and acquire strong brand names which are engaged in offering high-end fine accommodation services to A class customers in Croatia Zadar. 36.10 Acquisition of Günaydın Group With the share transfer agreement dated 13 August 2014, the Group purchased 70 percent of shares of Günaydın İstanbul, Günaydın İdealtepe, Günaydın Et Şarküteri and Günaydın Et. Günaydın İstanbul currently owns 100 percent of shares of Arjantin Et, Ataşehir Restoran, Çukurambar Lokanta, Çankaya Grup, Kadıköy Tepe, Oran Gurme and 75 percent of shares of Tiendes. The Group obtained the control and 70 percent voting rights in Günaydın Group. Pre-acquisition carrying amounts were determined based on the applicable IFRSs immediately before the acquisition. The values of assets, liabilities and contingent liabilities recognised on acquisition are their estimated fair values and have been determined on a provisional basis. Upon the completion of the final fair valuation of the value of assets, liabilities and contingent liabilities recognized on acquisition, total net identifiable assets has been changed. 105

36 Acquisition of subsidiaries and non-controlling interests (continued) 36.10 Acquisition of Günaydın Group (continued) Under IFRS 3, brand name, Günaydın, amounting to TL 92.292 thousand has been recognised as an intangible asset arising from the acquisition of Günaydın. The fair value of the brand name acquired is based on the Multi-period Excess Earnings Method. The following table summarises the major classes of consideration transferred and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash paid 308.000 Purchase price paid by other shareholders 10.518 Total consideration 318.518 Identifiable assets acquired and liabilities assumed Property and equipment 25.526 Intangible assets 92.319 Inventories 4.154 Trade receivables 5.293 Other current assets 1.614 Due from related parties 6.739 Financial investment 35.060 Cash and cash equivalents 15.007 Deferred tax asset 343 Trade payables (4.180) Loans and borrowings (3.895) Due to related parties (29.828) Other current liabilities (34.753) Deferred tax liabilities (18.458) Total net identifiable assets 94.941 Goodwill Goodwill has been recognised as a result of the acquisition as follows: Total consideration transferred 318.518 Non-controlling interest based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquire 28.482 Less: Value of net identifiable assets (94.941) Goodwill 252.059 Cash consideration transferred (*) 151.200 Cash and cash equivalents acquired (15.007) Net cash outflow arising on acquisition 136.193 (*) In 2015, TL 156.800 thousand of total consideration has been paid. The goodwill is mainly attributable to the deal rationale of the Group s ambition to penetrate a promising domestic market and acquire strong brand names which are engaged in offering highend fine dining and after dinner entertainment services to A class customers. 106

37 Interests in other entities Information regarding the DOAŞ in which the Group has major non-controlling interests is as follows: Subsidiary Noncontrolling interest Net profit attributable to noncontrolling interests Accumulated noncontrolling interests Dividend paid to noncontrolling interests 31 December 2015 27,00 % 91.170 305.847 40.500 31 December 2014 27,00 % 71.701 261.714 59.400 Consolidated financial information of DOAŞ before consolidation adjustments and eliminations are as follows: Assets 31 December 2015 31 December 2014 Cash and cash equivalents 71.870 40.621 Current trade receivables 1.103.939 744.731 Other current assets 1.313.423 656.830 Non-current assets 1.490.671 1.385.075 Total assets 3.979.903 2.827.257 Short-term loans and borrowings 1.619.581 782.265 Current trade payables 509.411 357.159 Other current liabilities 175.043 389.400 Long-term loans and borrowings 296.208 46.603 Other non-current liabilities 16.777 15.495 Total liabilities 2.617.020 1.590.922 Total equity 1.362.883 1.236.335 Total liabilities and equity 3.979.903 2.827.257 Revenue 10.889.161 7.692.702 Cost of sales (9.780.598) (6.819.714) Operating profit 456.119 326.235 Profit before tax 365.389 296.297 Profit for the year 302.444 253.078 38 Related party disclosures For the purpose of the consolidated financial statements, the shareholders, key management personnel and the Board members, and in each case, together with their families and companies controlled by/affiliated with them; and associates, investments and joint ventures are considered and referred to as the related parties. A number of transactions are entered into with the related parties in the normal course of business. Most of the related party activity is eliminated at consolidation and the remaining activity is not material to the Group. As disclosed in detail in Note 42, the Joint Ventures and Associates of the Group have been accounted for using the equity method in the consolidated financial statements. Accordingly, the transactions of Group s Subsidiaries with Joint Ventures and Associates and the balances from Joint Ventures and Associates are not subject to elimination. 107

38 Related party disclosures (continued) 38.1 Related party balances As at 31 December, the Group had the following balances outstanding from its related parties: 2015 Joint Ventures Other (*) Total Trade receivables - due from related parties 50.612 778.095 828.707 Cash and cash equivalents -- 228.158 228.158 Long-term loans and borrowings -- 1.436.000 1.436.000 Trade payables - due to related parties 685 46.346 47.031 Other current assets 1.639 -- 1.639 Letters of guarantees 2.039 16.500 18.539 2014 Joint Ventures Other Total Trade receivables - due from related parties 67.130 518.060 585.190 Cash and cash equivalents 182.615 -- 182.615 Long-term loans and borrowings 817.763 -- 817.763 Short-term loans and borrowings 106.307 -- 106.307 Trade payables - due to related parties 92 9.821 9.913 Other current liabilities -- 245.647 245.647 Letters of guarantees 2.465 152.600 155.065 (*) Mainly includes related party balances with Associates of the Group. 108

38 Related party disclosures (continued) 38.1 Related party balances (continued) As at 31 December 2015, cash and cash equivalents and loans and borrowings include balances of the Group's Subsidiaries with Garanti Bank. TL 734.162 thousand of trade receivables (31 December 2014: TL 513.343 thousand) is composed of balances due to the factoring receivables of DOAŞ from VDF factoring. TL 14.010 thousand of trade payables (31 December 2014: TL 4.407 thousand) is composed of balances due to vehicle purchases of Yüce Oto from DOAŞ. No impairment losses have been recognised against balances outstanding as at 31 December 2015 (31 December 2014: None) and no specific allowance has been made for impairment losses on balances with the related parties. 38.2 Related party transactions For the years ended 31 December, the revenues earned and expenses incurred by the Group in relation to transactions with its related parties as summarised below: 2015 Joint Ventures Other Total Revenue 9.665 39.537 49.202 Cost of sales (556) (2) (558) Administrative expenses (698) (297) (995) Selling, marketing and distribution expenses (480) (3.943) (4.423) Net finance income / (expenses) 5.450 (77.546) (72.096) Other operating income 32 24.726 24.758 Other operating expenses (36) (10.870) (10.906) 2014 Joint Ventures Other Total Revenue 63.121 -- 63.121 Cost of sales (36.968) -- (36.968) Administrative expenses (517) -- (517) Selling, marketing and distribution expenses (159) -- (159) Net finance income / (expenses) 12.609 -- 12.609 Other operating income 5.172 -- 5.172 Other operating expenses (555) -- (555) For the years ended 31 December, majority of transactions of the Group with its related parties comprises electricity sales income and expenses. For the years ended 31 December, the total amount of finance income and expenses are composed of interest expense of loans and borrowings between the Group's subsidiaries and Garanti Bank. 38.3 Transactions with key management personnel On a consolidated basis, key management costs included in administrative expenses for the year ended 31 December 2015 amounted to TL 192.090 thousand (31 December 2014: TL 165.752 thousand). 109

39 Subsequent events 39.1 On January 2016, HD Yayıncılık Anonim Şirketi shares (operating as Kralworld logo in radio sector) was transferred to MNG TV Yayınclık Anonim Şirketi. 39.2 On January 2016, foreign entertainment channel e2 has ended its TV broadcast. 39.3 In January 2016, Doğuş Holding has purchased an additional 10% shares of MK Holding A.Ş. increasing its shareholding to 70%. 39.4 On 11 January 2016, Doğuş Yayın Grubu has acquired 22% of Sekiz Medya Holding A.Ş. and 100 % of Sekiz Prodüksiyon ve Reklam A.Ş. (Operating as TV 8 logo in television sector) shares. The legal permissions of RTSC and Competetion Board are completed. 39.5 On 18 January 2016, D Marine Investments Holding B.V. has acquired 100% of Mercati S.p.a 39.6 On 12 February 2016, Nahita has purchased remaining shares of Doors Holding A.Ş and increased its shareholding to 100%. 39.7 On 16 February 2016, PIT İstanbul Otel İşletmeciliği A.Ş. has been established. The area of operation of the entity is hotel management. 39.8 On 29 February 2016, Hedef Medya Tanıtım Interaktif Medya Pazarlama A.Ş has acquired 60% of Semanticum Bilişim Sanayi ve Ticaret A.Ş. The area of operation of the entity is social media monitoring. 39.9 On 1 March 2016, D Marine Investments Holding B.V. has acquired 100% of Hotel Villa Magna, S.L.U. and 100% of Vieznada S.L.U. 39.10 On 4 March 2016, D Marine Investments Holding Coöperatief U.A. changed its legal name as Dogus International Coöperatief UA. 110

40 Basis of measurement The consolidated financial statements have been prepared on the historical cost basis as adjusted for the effects of inflation that lasted until 31 December 2005, except for the following material items in the consolidated statement of financial position: derivative financial instruments are measured at fair value, available-for-sale financial assets are measured at fair value, non-derivative financial instruments at fair value through profit and loss are measured at fair value, investment property is measured at fair value, certain classes of property and equipment are measured at fair value. The methods used to measure the fair values are discussed further in note 4. 41 Changes in accounting policies and reclassifications The accounting policies applied by the Group in these consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2014. Certain comparative amounts have been reclassified to conform with the current period s presentation. For the year ended 31 December 2014, goodwill impairment amounting to TL 2.532 thousand, previously recognised under other operating expenses, have been reclassified to losses from investing activities. 42 Significant accounting policies (a) (i) The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by Group entities. Basis of consolidation The accompanying consolidated financial statements include the accounts of the parent company, Doğuş Holding, its subsidiaries, joint arrangements and associates on the basis set out in sections below. The financial statements of the entities included in the consolidation have been prepared as at the date of the consolidated financial statements. Business combinations The Group accounts for business combinations using the acquisition method when control is transferred to the Group (see (a)(iii)). The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see (i)). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. 111

42 Significant accounting policies (continued) (a) (ii) (iii) (iv) (v) (vi) Basis of consolidation (continued) Non-controlling interests ( NCI ) Non-controlling interests are measured at their proportionate share of the acquiree s identifiable net assets at the acquisition date. Changes in the Group s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. Acquisitions from entities under common control: Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, if later, at the date that common control was established; for this purpose comparatives are restated. The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the controlling shareholder s consolidated financial statements. The components of equity of the acquired entities are added to the same components within the Group equity and any gain / loss arising is recognised directly in equity. Associates (Equity-accounted investees) Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power of another entity. Investments in associates are accounted for using the equity method and are initially recognised at cost. The cost of investments includes transaction costs. The consolidated financial statements include the Group s share of profit and loss and other comprehensive income of associates, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. 112

42 Significant accounting policies (continued) (a) (vi) (vii) (viii) Basis of consolidation (continued) Associates (Equity-accounted investees) (continued) When the Group s share of losses exceeds its interest in an associates, the carrying amount of that interest, including any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. Joint arrangements Joint arrangements are arrangements of which the Group has joint control, established by contracts requiring unanimous consent for decisions about the activities that significantly affect the arrangements returns. They are classified and accounted for as follows: Joint operation when the Group has rights to the assets, and obligations for the liabilities, relating to an arrangement, it accounts for each of its assets, liabilities and transactions, including its share of those held or incurred jointly, in relation to the joint operation. Joint venture when the Group has rights only to the net assets of the arrangements, it accounts for its interest using the equity method. The consolidated financial statements include the Group s share of the profit or loss and other comprehensive income of equity-accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, including any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. Special purpose entities Special purpose entities are entities that are created to accomplish a narrow and well defined objective such as the securitisation of particular assets, or the execution of a specific borrowing or lending transaction. Special purpose entities are consolidated when the substance of the relationship between Garanti Bank and the special purpose entity indicates that the special purpose entity is controlled by Garanti Bank. Garanti DPR and RPV Company are special purpose entities established for Garanti Bank s securitisation transactions. The Group does not have any shareholding interest in these companies. 113

42 Significant accounting policies (continued) (a) (ix) (b) (i) (ii) Basis of consolidation (continued) Transactions eliminated on consolidation Intra-group balances and transactions and any unrealised income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with investments in equity accounted investees are eliminated against the investment to the extent of the Group s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Foreign currency Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between the amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available-forsale equity instruments (except on impairment in which case foreign currency differences that have been recognised in other comprehensive income are reclassified to profit or loss), a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or qualifying cash flow hedges to the extent the hedge is effective. The foreign currency exchange rates of EURO / TL and US Dollar / TL as of the related periods are as follows: 31 December 31 December 2015 2014 EURO / TL 3,1776 2,8207 US Dollar / TL 2,9086 2,3189 Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to TL at exchange rates at the reporting date. The income and expenses of foreign operations are translated to TL at average exchange rates at the dates of the transactions. 114

42 Significant accounting policies (continued) (b) (ii) (iii) (c) (i) Foreign currency(continued) Foreign operations (continued) Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve (translation reserve) in equity. However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant proportion of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. When the settlement of a monetary item receivable from or payable to a foreign operations is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and presented within equity in the translation reserve. Hedge of net investment in foreign operation The Group applies hedge accounting to foreign currency differences arising between the functional currency of the foreign operation and the parent entity s functional currency (TL), regardless of whether the net investment is held directly or through an intermediate parent. Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign operation are recognised in other comprehensive income to the extent that the hedge is effective, and are presented within equity in the hedging reserve. To the extent that the hedge is ineffective, such differences are recognised in profit or loss. When the hedged part of net investment is disposed of, the relevant amount in the translation reserve is transferred to profit or loss as a part of the profit or loss on disposal. Financial instruments The Group classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets. The Group classifies non-derivative financial liabilities into the other financial liabilities category. Non-derivative financial assets and financial liabilities Recognition and derecognition The Group initially recognises loans and receivables on the date that they are originated. All other financial assets (including assets designated as at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. All financial liabilities are recognised initially on the trade date. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. 115

42 Significant accounting policies (continued) (c) (i) (ii) Financial instruments (continued) Non-derivative financial assets and financial liabilities Recognition and derecognition (continued) The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously Non-derivative financial assets- measurement Financial assets at fair value through profit or loss A financial asset is classified as at fair value through profit or loss if it is classified as held-fortrading or is designated as such on initial recognition. Directly attributable transaction costs are recognised in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value and changes therein, including any interest or dividend income, are recognised in profit or loss. Held to maturity financial assets If the Group has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held-to-maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, held to maturity financial assets are measured at amortised cost using the effective interest method less and impairment losses. The Company and its subsidiaries do not have any held to maturity financial assets as at 31 December 2015 and 2014. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise cash and cash equivalents, trade and other receivables, including service concession receivables, and due from related parties. Cash and cash equivalents Cash and cash equivalents comprise cash balances, bank deposits and other liquid assets with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value. 116

42 Significant accounting policies (continued) (c) (ii) (iii) (iv) Financial instruments (continued) Non-derivative financial assets-measurement (continued) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the previous categories of financial assets. The Group s investments in certain debt and equity instruments are classified as available-forsale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 42(i)) and foreign currency differences on available-for-sale equity instruments (see note 42(b)(i)), are recognised in other comprehensive income and presented within equity in the fair value reserve. When an instrument is derecognised, the gain or loss accumulated in equity is reclassified to profit or loss. Accounting for interest income and expenses is discussed in note 42 (o). Service concession arrangements The Group recognises a financial asset arising from a service concession arrangement when it has an unconditional contractual right to receive cash or another financial asset from or at the direction of the grantor for the construction or upgrade services provided. Such financial assets are measured at fair value upon initial recognition. Subsequent to initial recognition the financial assets are measured at amortised cost. If the Group is paid for the construction services partly by a financial asset and partly by an intangible asset, then each component of the consideration received or receivable is accounted for separately and is recognised initially at the fair value of the consideration received or receivable (see also note 42(e) (ii)). Other Other non derivative financial instruments are measured at amortised cost using the effective interest rate method, less any impairment losses (see accounting policy 42(i)). Non-derivative financial liabilities-measuremenet The Group has the following non-derivative financial liabilities: loans and borrowings, trade and other payables, and due to related parties. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest method. Derivative financial instruments including hedge accounting The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Derivatives are initially recognised at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in profit or loss. 117

42 Significant accounting policies (continued) (c) (iv) Financial instruments (continued) Derivative financial instruments including hedge accounting (continued) Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases, the amount accumulated in equity is reclassified to profit or loss in the same period that the hedged item affects profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecast transaction is no longer expected to occur, then the balance in equity is reclassified in profit or loss and other comprehensive income. Fair value hedge A hedge of the foreign currency risk of the firm commitments are accounted for as a fair value hedge by the Group. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with the corresponding gain or loss recognised in profit or loss. The changes in the fair value of the hedging instrument are also recognised in profit or loss. When the Group enters into a firm commitment to acquire an asset or assume a liability that is a hedged item in a fair value hedge, the initial carrying amount of the asset or liability that results from the entity meeting the firm commitment is adjusted to include the cumulative change in the fair value of the firm commitment attributable to the hedged risk that was recognised in the statement of financial position. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized in profit or loss relating to the hedged item. Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised in profit or loss from that date. 118

42 Significant accounting policies (continued) (c) (iv) (v) (d) (i) Financial instruments (continued) Derivative financial instruments, including hedge accounting (continued) Other non-trading derivatives When a derivative financial instrument is not designated in a hedge relationship that qualifies for hedge accounting, all changes in its fair value are recognised immediately in profit or loss. Share capital Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. Repurchase, disposal and reissue of share capital (Treasury shares) When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is presented in share premium. Property and equipment Recognition and measurement The costs of items of property and equipment purchased before 31 December 2005 are restated for the effects of inflation in TL units current at 31 December 2005 pursuant to IAS 29. Property and equipment purchased after this date are recorded at their historical costs. Accordingly, items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any (see accounting policy 42(i)), except as explained below: In 2001, the Group started to reflect the land and buildings at their fair values as appraised by independent third party appraisers. Any increase arising on the revaluation of such land and buildings is credited to other comprehensive income, and presented in revaluation surplus in equity, except to the extent that it reverses a impairment loss for the same asset previously recognised as an expense, in which case the increase is credited to profit or loss to the extent of the decrease previously charged. A decrease in the carrying amount arising on the revaluation of such land and buildings is charged as an expense to the extent that it exceeds the balance, if any, held in the revaluation surplus relating to a previous revaluation of that asset. 119

42 Significant accounting policies (continued) (d) (i) (ii) (iii) (iv) Property and equipment (continued) Recognition and measurement (continued) Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the following: the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Cost also includes transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Any gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds from disposals and the carrying amount of the item) is recognised, net in profit or loss in gains from investing activities or losses from investing activities. When revalued assets are sold, the amounts included in the revaluation surplus reserve are transferred to retained earnings. Reclassification to investment property When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified as investment property. Property that is being constructed for future use as investment property is accounted for at fair value. Any gain arising on remeasurement is recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognised in other comprehensive income and presented in the revaluation surplus in equity. Any loss is recognised immediately in profit or loss. Subsequent expenditures Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance is expensed as incurred. Depreciation Items of property and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. Items of property and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the assets are complete and ready for use. 120

42 Significant accounting policies (continued) (d) (iv) (e) (i) (ii) (iii) (iv) Property and equipment (continued) Depreciation (continued) The estimated useful lives for the current and comparative years of significant items of property and equipment are as follows: Description Year Buildings 20-50 Furniture and equipment 4-20 Motor vehicles 5-10 Leasehold improvements are amortised over shorter of useful lives or the periods of the respective leases, also on a straight-line basis. Depreciation methods, useful lives are reviewed at each reporting date and adjusted if appropriate. Intangible assets and goodwill Goodwill Goodwill that arises upon the acquisition of subsidiaries is presented in intangible assets and goodwill account. For the measurement of goodwill at initial recognition, see note 42(a)(i). Subsequent measurement Goodwill is measured at cost less accumulated impairment losses (see accounting policy 42(i) (ii)). In respect of associates / joint ventures, the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss is allocated to the carrying amount of the associates as a whole. Service concession arrangements Concession rights acquired by the Group have finite useful lives of 37 years ( D Marin Göcek ), 35 years ( Dalmacija ), 17 years ( Borik ), 19 years ( Pozitif Arena ), 27 years ( K&G Medmarinas ) and 25 years ( MB 92 ) starting from 7 December 2010, 30 April 2012, 30 April 2012, 28 August 2013, 4 February 2015 and 21 December 2015 respectively, and are measured at cost less accumulated amortisation. Cost includes borrowing costs directly attributable to the acquisition of the concession rights. The Group capitalises the borrowing costs directly attributable to the acquisition, or construction of a qualifying asset as part of the cost of that asset. Broadcasting rights Broadcasting rights represent terrestrial broadcasting licence of Kral TV and Kral FM which are the intangible assets recognised during the acquisition of commercial and economic assets of Kral TV and Kral FM in 2008 and terrestrial broadcasting licence of Star TV which are the intangible assets recognised during the acquisition of Işıl Televizyon Yayıncılık Anonim Şirketi in 2011. Terrestrial broadcast rights have indefinite useful lives. These rights are tested for impairment annually. Brand name Brand name represents brand names of Masa, Mora, Darphane in 2015, Itsumi, Argos in Cappadocia, Villa Dubrovnik and Günaydın in 2014, Mezzaluna, Lacivert, Ulus 29, Çubuklu 29, Maki 29, Alaçatı 29, Babylon, Maçakızı and Sait acquired in 2013, Anjelique, Da Mario, Gina, Go Mongo, Kivahan, Kitchenette, Nusr-et, Tom s Kitchen and Vogue which are related to the intangible assets recognised during the acquisitions in 2012, and Star TV which is related to the intangible asset recognised during the acquisition in 2011. Brand names have indefinite useful lives and are tested for impairment annually. 121

42 Significant accounting policies (continued) (e) (v) (vi) (vii) (viii) (f) Intangible assets and goodwill (continued) Content library The content library of series and movies are related to the intangible assets recognised during the acquisition of Star TV in 2011. Ownership right of these items in the content library belongs to Star TV with unlimited transmission. The fair value of the content library on the acquisition date has been determined by an independent external expert. The content library is measured at cost less accumulated amortisation and any accumulated impairment losses. Useful lives of content library are five years from the date the content library is ready to screen on TV starting. Other intangible assets Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated amortisation and any accumulated impairment losses, if any (see accounting policy 42(i)). Subsequent expenditures Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred. Amortisation Except for goodwill, broadcasting rights and brand name recognised in business combinations, intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available for use. Amortisation of service concession rights acquired by the Group is recognised in profit or loss on a straight line basis over their respective concession periods. Amortisation of content library is based on the fair value of the asset which is acquired through business combination under scope of IFRS 3 Business Combinations. The amortisation period for all items in content library are five years period when content library is ready to screen on TV. Amortisation methods and useful lives are reviewed at each reporting date and adjusted if appropriate. Amortisation of franchise network is based on the fair value of the asset which is acquired through business combination under scope of IFRS 3 Business Combinations. The amortisation period for franchise network is ten years period. Amortisation methods and useful lives are reviewed at each reporting date and adjusted if appropriate. Amortisation of sponsorship is based on the fair value of the asset which is acquired through business combination under scope of IFRS 3 Business Combinations. The amortisation period for sponsorship is ten years period. Amortisation methods and useful lives are reviewed at each reporting date and adjusted if appropriate. Investment property Investment property is property held either to earn rental income or for capital appreciation or for both but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is measured at fair value with any change therein recognised in profit or loss. 122

42 Significant accounting policies (continued) (f) (g) (h) Investment property (continued) Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs. Investment property under construction is measured at cost when the fair value is not reliably determined. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. When an investment property that was previously classified as property and equipment is sold, any related amount included in the revaluation surplus is transferred to retained earnings. When the use of a property changes such that it is reclassified as property and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting. Inventories Inventories are measured at the lower of cost and net realisable value. Except as discussed in the following paragraphs, the cost of inventories is mainly based on the weighted average, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Cost of trading goods and trading properties are determined on specific identification basis by the entities operating in automotive and construction businesses. Trading properties comprise land and buildings that are held for trading purposes. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Construction contracts in progress Construction contracts in progress represent the gross unbilled amount expected to be collected from customers for contract work performed to date. It is measured at cost plus profit recognised to date (see note 42 (l)(i)) less progress billings and recognised losses. Cost includes all expenditures related directly to specific projects and an allocation of fixed and variable overheads incurred in the Group s contract activities based on normal operating capacity. Construction contracts in progress is presented as part of trade receivables in the consolidated statement of financial position for all contracts in which costs incurred plus recognised profits exceed progress billings. If progress billings exceed cost incurred plus recognised profits, then the difference is presented as deferred income in the consolidated statement of financial position. The asset, Due from customers for contract work represents revenue recognised in excess of amounts billed. The liability, Due to customers for contract work represents billings in excess of revenue recognised. 123

42 Significant accounting policies (continued) (i) (i) Impairment Non-derivative financial assets A financial asset not classified as at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers in the Group, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. Available-for sale financial assets Impairment losses on available-for-sale investment securities are recognised by reclassifying the cumulative loss that has been recognised in other comprehensive income, and presented in the fair value reserve in equity, to profit or loss. The cumulative loss that is reclassified from other comprehensive income and recognised in profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss previously recognised in profit or loss. Changes in cumulative impairment losses attributable to application of the effective interest method are reflected as a component of interest income. If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised, then the impairment loss is reversed, with the amount of the reversal recognised in profit or loss. However, any subsequent recovery in the fair value of an impaired available-forsale equity security is recognised in other comprehensive income. For an investment in unquoted equity instruments carried at cost because their fair value cannot be measured reliably, impairment losses is not reversed. Financial assets measured at amortised cost The Group considers evidence of impairment for financial assets measured at amortised cost (Loans and receivables and held to maturity investments) at both an individual asset and a collective level. All individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually identified. Assets that are not individually significant are collectively assessed for impairment. Collective assessment is carried out by grouping together assets with similar risk characteristics An impairment loss is calculated as the difference between an asset s carrying amount and the present value of the estimated future cash flows discounted at the asset s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss. 124

42 Significant accounting policies (continued) (i) (ii) Impairment (continued) Non-financial assets The carrying amounts of the Group s non-financial assets, other than investment property, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset s recoverable amount is estimated. Goodwill and intangible assets with indefinite lives are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit ( CGU ) exceeds its recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Subject to an operating segment ceiling test, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For the non financial other assets, impairment loss is reversed when there is a change in the estimates used in the calculation of recoverable amount. For other assets, an impairment loss is reversed only to the extent that the asset s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. 125

42 Significant accounting policies (continued) (j) (i) (ii) (iii) (k) (i) Employee benefits Reserve for employee severance indemnity Reserve for employee severance indemnity represents the present value of the estimated future probable obligation of the Group arising from the retirement of the employees and calculated in accordance with the Turkish Labour Law. It is computed and reflected in the consolidated financial statements on an accrual basis as it is earned by serving employees. IFRSs require actuarial valuation methods to be developed to estimate the entity s obligation under defined benefit plans. The principal statistical assumptions used in the calculation of the total liability in the accompanying consolidated financial statements at 31 December were as follows: 2015 2014 % % Discount rate 4,30 4,14 Turnover rate to estimate the probability of retirement 1,0-8,00 1,0-8,00 Actuarial gains/losses are comprised of adjustment of difference between actuarial assumptions and realised and change in actuarial assumptions. According to IAS 19, the Group recognised all actuarial differences in other comprehensive income. Defined benefit plan The Group is obliged to transfer certain amount of benefit on behalf of employees to Social Security Foundation (Public Institution). Except the benefit payments made by the Group, the Group does not have any other liability. These benefits are recognised directly in profit or loss in personnel expenses as they accrue. Vacation liability Liabilities from unused vacation days are recognised a liability when the right is qualified. Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Warranties A provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical warranty data and a weighting of all possible outcomes against their associated probabilities. 126

42 Significant accounting policies (continued) (k) (i) (ii) (l) (i) (ii) (iii) (iv) Provisions (continued) Warranties (continued) The warranties on vehicles sold by the Group are issued by the main producers where the Group acts as an intermediary between the customers and the producer. The claims of customers to the Group are recognised as warranty expense in profit or loss. The Group recognises the amount claims from the producers as warranty income and offset against warranty expense. The Group incurs the cost that is not paid by the manufacturers. Accordingly, the Group recognises the estimated liability for the difference between possible warranty claims of customers and possible warranty claims from producers based on historical service statistics. Onerous contracts A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with that contract (see note 42 (i)(ii)). Revenue and cost recognition Construction contracts Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and can be measured reliably. As soon as the outcome of a construction contract can be estimated reliably, contract revenue is recognised in profit or loss in proportion to the stage of completion of the contract. Contract expenses are recognised as incurred unless they create an asset related to future contract activity. The stage of completion is assessed by reference to the proportion of contract costs incurred for work performed to date to the estimated total contract costs. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable. An expected loss on a contract is recognised immediately in profit or loss. Commissions When the Group acts in the capacity of an agent rather than as the principal in a transaction, the revenue recognised is the net amount of commission made by the Group. Rental income Rental income from investment property is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Rental income from other property is recognised as other operating income. Advertisement revenue under movie sales and service revenue Movie revenue is recognised in profit or loss when the movies or advertisements are broadcasted. The revenue is recognised as the fair value of the amount received or receivable for core business activity, after deduction of discounts, returns, sales premiums and return premium given to agents. 127

42 Significant accounting policies (continued) (l) (v) (vi) (vii) (viii) Revenue and cost recognition (continued) Return premium Advertising sales made in accordance with the contract signed risturn advertising agencies depend on the volume of sales premiums covered by the advertising agency risturn premium is paid. Risturn premiums are recorded by deducting from revenue items as incurred. Revenues are recorded at fair value can be obtained or to be obtained first amount if the amount of revenue is able to be reliably measured and the economic benefits arising from the transactions. If the sales transaction is including a financing transaction, the fair value of the sales price, the amount to be obtained in the receivables is calculated by discounting the effective interest method. The interest rate used in discounting, is the interest that discounts the nominal amount of the relevant goods or services to the cash sale price ratio. Barter transactions Revenue from barter transactions is recognised at the fair value of the goods or services received, adjusted for any cash involved in the transaction. When goods or services are exchanged or swapped for goods or services which are of a similar nature and value, the exchange is not regarded as a transaction which generates revenue. When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue. Revenue is measured at the fair value of the consideration received or receivable. When the fair value of the services received cannot be measured reliably, the revenue is measured at the fair value of the services provided, adjusted by the amount of any cash or cash equivalents transferred. When the outcome of a transaction involving the rendering of services cannot be estimated reliably (e.g. the amount of revenue cannot be measured reliably), revenue should be recognised only to the extent of the expenses recognised that are recoverable. Revenue is recognised only to the extent of costs incurred that are expected to be recoverable and, as the outcome of the transactions cannot be estimated reliably, no profit is recognised. As a consequence, due to the dissimilarity among the services and goods exchanged within barter transaction and the difference in settlement term of transaction even if they are the advertisements, these exchanges were regarded as different transactions which generates revenue by the Group. Revenue from magazine and book sales Revenue from the sales of magazine and books in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised on an accrual basis when persuasive evidence exists that goods are delivered and services are rendered, that the significant risks and rewards of ownership have been transferred to the buyer; recovery of the consideration is probable; there is no continuing management involvement with the goods; and the amount of revenue can be measured reliably. If the discount can be measured reliably and probable, the discount is recognised net of revenue. Revenue from sales of cars and spare parts Revenue from the sales of cars, spare parts and services in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised on an accrual basis when persuasive evidence exists that goods are delivered and services are rendered, that the significant risks and rewards of ownership have been transferred to the buyer; recovery of the consideration is probable; there is no continuing management involvement with the goods; and the amount of revenue can be measured reliably. Significant risks and rewards are transferred to the buyer when the goods or ownership of goods passed to the buyer. 128

42 Significant accounting policies (continued) (l) (viii) (ix) (x) (xi) (m) (n) (i) Revenue and cost recognition (continued) Revenue from sales of cars and spare parts (continued) When the arrangement effectively constitutes a financing transaction, the fair value of the consideration is determined by discounting all future receipts using an imputed rate of interest. The difference between nominal value and fair value of sales amount is recognised in other operating income. Other businesses Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction of revenue as the sale is recognised. Transfers of risks and rewards vary depending on the individual terms of the contract of sale. Revenue from services rendered is recognised in profit or loss on an accrual basis at the reporting date. Research and development costs Expenditure on research activities is recognised in profit or loss when incurred. Dividend income Dividend income is recognised on the date that the Group s right to receive payment is established. Dividend payables are recognised after the dividend distribution approval in the General Assembly. Government grants Government grants are recognised initially as deferred income at fair value when there is reasonable assurance that they will be received and that the Group will comply with the conditions associated with the grant and are then recognised in profit or loss as other operating income on a systematic basis over the useful life of the asset. Grants that compensate the Group for expenses incurred are recognised in profit or loss as other operating income on a systematic basis in the same periods in which the expenses are recognised. Leases Leased assets Assets held by the Group under financial leasing contract which transfer to the Group substantially all of the risks and rewards of ownership are classified as finance leases. At initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Assets held under other leases are classified as operating leases and are not recognised in the Group s consolidated statement of financial position. 129

42 Significant accounting policies (continued) (n) (ii) (iii) (o) (p) Leases (continued) Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Lease payments within the contract of financial leasing made under finance leases are apportioned between the finance cost and the reduction of the outstanding liability. The finance cost is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Determining whether an arrangement contains a lease At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. The following two criteria must be met for a lease : the fulfilment of the arrangement is dependent on the use of a specific asset or assets; and the arrangement contains a right to use the asset(s). At inception or upon reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Group s incremental borrowing rate. Finance income and finance cost Finance income comprises interest income on funds invested, foreign currency gains (excluding those on trade receivables and payables), and gains on derivative instruments that are recognised in profit or loss. Interest income is recognised as it accrues, using the effective interest method. Finance cost comprise interest expense on borrowings, foreign currency losses (excluding those on trade receivables and payables), and losses on derivative instruments that are recognised in profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method. Borrowing costs that are directly attributable to construction of investment property is in included in the cost base of related assets. Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position. Income tax Income tax expense comprises current tax and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. 130

42 Significant accounting policies (continued) (p) (r) Income tax (continued) Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries, jointly arrangements and associates to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred taxes related to fair value measurement of available for sale assets and cash flow hedges are charged or credited to equity and subsequently recognised in profit or loss together with the deferred gains that are realised. Deferred taxes related to revaluation surplus reserve are recognised in other comprehensive income in revaluation surplus in equity on a net basis. Deferred tax asset is recognised and only limited with below mentioned conditions are met both for taxable temporary differences of Doğuş Holding and its subsidiaries: Temporary differences will reverse in a foreseable future period and there would be enough taxable income in order to utilise temporary differences. Deferred tax liability is recognised except below mentioned conditions are met both for taxable temporary differences of Doğuş Holding and its subsidiaries: Owners of the Company are able to control timing of reversal of temporary differences and temporary differences would not be reversed probably in a foreseable future period. Assets held for sale or distribution Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale or distribution rather than through continuing use, are classified as held for sale or distribution. Immediately before classification as held for sale or distribution, the assets, or components of a disposal group, are remeasured in accordance with the Group s accounting policies. Thereafter generally the assets, or disposal group, are measured at the lower of their carrying amount and fair value less costs to sell. 131

42 Significant accounting policies (continued) (r) (s) (t) Assets held for sale or distribution (continued) Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets and investment property, which continue to be measured in accordance with the Group s accounting policies. Impairment losses on initial classification as held for sale or distribution and subsequent gains and losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss. Intangible assets and property and equipment once classified as held for sale or distribution are not amortised or depreciated. In addition, equity accounting of associates ceases once classified as held for sale or distribution. Indemnification assets Initial recognition Indemnification assets are an exception to the recognition and measurement principles of IFRS 3. An acquirer recognises indemnification assets at the same time and measures them on the same basis as the indemnified item, subject to contractual limitations and adjustments for collectibility, if applicable. The Group has the right to reimburse the provision for litigation and claims brought through the acquisition of Star TV to Doğan TV Holding A.Ş. (formerly named as Alp Görsel İletişim A.Ş.), the previous shareholder of Star TV, when such legal cases end against the favor of the Group and create a possible cash outflow. Subsequent measurement Subsequent to initial recognition, the acquirer continues to measure an indemnification asset on the same basis as the related indemnified asset or liability and the revision in measurement of the provision due to the subsequent information will be recognised through the profit or loss in contrary of the effect leading the net effect on the profit or loss be equal to zero whereas the decreasing effect on the asset and liability side on the consolidated statement of financial position will be the same. The initial and subsequent accounting for indemnification assets recognised at the acquisition date applies equally to indemnified assets and liabilities that are recognised and measured under the principles of IFRS 3 and those that are subject to exceptions to the recognition or measurement principles of IFRS 3. If the amounts recognised by an acquirer for an indemnified liability and a related indemnification asset recognised at the acquisition date do not change subsequent to the acquisition and ultimately are settled at the amounts recognised in the acquisition accounting, then there will be no net effect on profit or loss providing that those amounts are the same. Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group s other components. All operating segments operating results are reviewed regularly by the CEO ( Chief Executive Officer ) and BOD members to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. 132

42 Significant accounting policies (continued) (u) (v) De-merger/ Spin off Economically a de-merger represents a division of an entity into separate parts. The result of a demerger is that the same shareholders own the same group of businesses; the shareholders structure and their ownership interests are identical both before and after the de-merger. In the absence of further guidance in IFRS, the Group has accounted the de-merger via book values. New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2015, and have not been applied in preparing these consolidated financial statements. IFRS 9 Financial Instruments IFRS 9, published in July 2014, replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The Group is in the process of assessing the impact of the standard on the consolidated financial position or performance of the Group. IFRS 15 Revenue from Contracts with customers The standard replaces existing IFRS and US GAAP guidance and introduces a new control-based revenue recognition model for contracts with customers. In the new standard, total consideration measured will be the amount to which the Group expects to be entitled, rather than fair value and new guidance have been introduced on separating goods and services in a contract and recognising revenue over time. The standard is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted under IFRS. The Group is in the process of assessing the impact of the standard on the consolidated financial position or performance of the Group. Clarification of acceptable methods of depreciation and amortisation (Amendments to IAS 16 and IAS 38) The amendments to IAS 16 Property, Plant and Equipment explicitly state that revenue-based methods of depreciation cannot be used for property, plant and equipment. The amendments to IAS 38 Intangible Assets introduce a rebuttable presumption that the use of revenue-based amortisation methods for intangible assets is inappropriate. The amendments are effective for annual periods beginning on after 1 January 2016, and are to be applied prospectively. Early adoption is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. Accounting for acquisition of interests in joint operations (Amendments to IFRS 11) The amendments clarify whether IFRS 3 Business Combinations applies when an entity acquires an interest in a joint operation that meets that standard s definition of a business. The amendments require business combination accounting to be applied to acquisitions of interests in a joint operation that constitutes a business. The amendments apply prospectively for annual periods beginning on or after 1 January 2016. Early adoption is permitted. The Group is in the process of assessing the impact of the standard on the consolidated financial position or performance of the Group. 133

42 Significant accounting policies (continued) (v) New standards and interpretations not yet adopted (continued) IFRS 14 Regulatory Deferral Accounts International Accounting Standards Board ( IASB ) has started a comprehensive project for Rate Regulated Activities in 2012. As part of the project, IASB published an interim standard to ease the transition to IFRS for rate regulated entities. The standard permits first time adopters of IFRS to continue using previous GAAP to account for regulatory deferral account balances. The interim standard is effective for financial reporting periods beginning on or after 1 January 2016, although early adoption is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. Sale or contribution of assets between an investor and its associate or joint venture (Amendments to IFRS 10 and IAS 28) The amendments address the conflict between the existing guidance on consolidation and equity accounting. The amendments require the full gain to be recognised when the assets transferred meet the definition of a business under IFRS 3 Business Combinations. The amendments apply prospectively for annual periods beginning on or after 1 January 2016. Early adoption is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group Equity method in separate financial statements (Amendments to IAS 27) The amendments allow the use of the equity method in separate financial statements, and apply to the accounting not only for associates and joint ventures, but also for subsidiaries. The amendments apply retrospectively for annual periods beginning on or after 1 January 2016. Early adoption is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. Disclosure Initiative (Amendments to IAS 1) The narrow-focus amendments to IAS 1 Presentation of Financial Statements clarify, rather than significantly change, existing IAS 1 requirements. In most cases the amendments respond to overly prescriptive interpretations of the wording in IAS 1. The amendments relate to the following: Materiality, order of the notes, subtotals, accounting policies and disaggregation. The amendments apply for annual periods beginning on or after 1 January 2016. Early adoption is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. 134

42 Significant accounting policies (continued) (v) New standards and interpretations not yet adopted (continued) Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) Before the amendment, it was unclear how to account for an investment entity subsidiary that provides investment-related services. As a result of the amendment, intermediate investment entities are not permitted to be consolidated. So where an investment entity s internal structure uses intermediates, the financial statements will provide less granular information about investment performance i.e. less granular fair values of, and cash flows from, the investments making up the underlying investment portfolio. The amendments apply retrospectively for annual periods beginning on or after 1 January 2016. Early adoption is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. Improvements to IFRSs The IASB issued Annual Improvements to IFRSs - 2012 2014 Cycle. The amendments are effective as of 1 January 2016. Earlier application is permitted. The Group does not expect that these amendments will have significant impact on the consolidated financial position or performance of the Group. Annual Improvements to IFRSs 2012 2014 Cycle IFRS 5 Non-current Assets Held for Sale and Discontinued Operations The amendments clarify the requirements of IFRS 5 when an entity changes the method of disposal of an asset (or disposal group) and no longer meets the criteria to be classified as held-fordistribution. IFRS 7 Financial Instruments: Disclosures IFRS 7 is amended to clarify when servicing arrangement are in the scope of its disclosure requirements on continuing involvement in transferred financial assets in cases when they are derecognised in their entirety. IFRS 7 is also amended to clarify that the additional disclosures required by Disclosures: Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7). IAS 19 Employee Benefits IAS 19 has been amended to clarify that high-quality corporate bonds or government bonds used in determining the discount rate should be issued in the same currency in which the benefits are to be paid. IAS 34 Interim Financial Reporting IAS 34 has been amended to clarify that certain disclosure, if they are not included in the notes to interim financial statements, may be disclosed elsewhere in the interim financial report i.e. incorporated by cross-reference from the interim financial statements to another part of the interim financial report (e.g. management commentary or risk report). The Group does not plan to adopt these standards early and the extent of the impact has not been determined yet. 135

Appendix I Doğuş Holding Anonim Şirketi and its Subsidiaries Supplementary Information Convenience Translation to US Dollar 31 December 2015 The US Dollar ("USD") amounts shown in the consolidated statement of financial position and consolidated statement of profit or loss and other comprehensive income on the following pages have been included solely for the convenience of the reader. For the current year s consolidated financial statements, USD amounts are translated from TL consolidated financial statements using the official TL exchange rate of 2,9076 TL/USD prevailing on 31 December 2015. For the prior year s consolidated financial statements, USD amounts are translated from TL consolidated financial statements using the official TL exchange rate of 2,3189 TL/USD prevailing on 31 December 2014. Such translation should not be construed as a representation that the TL amounts have been converted into USD pursuant to the requirements of IFRSs or Generally Accepted Accounting Principles in the United States of America or in any other country. 136

Appendix I.1 Doğuş Holding Anonim Şirketi and its Subsidiaries As at 31 December 2015 Consolidated Statement of Financial Position (Amounts expressed in thousands of USD) ASSETS 31 December 2015 31 December 2014 Current Assets: Cash and cash equivalents 824.474 726.158 Other investments, including derivatives 29 36 Trade receivables 886.251 760.148 - Due from related parties 285.014 252.357 - Due from third parties 601.237 507.791 Inventories 504.524 325.686 Prepayments 72.002 69.250 Other current assets 262.127 184.450 Subtotal 2.549.407 2.065.728 Assets held for sale 26.665 1.842.230 Total current assets 2.576.072 3.907.958 Non-Current Assets: Trade receivables 70.668 92.650 - Due from related parties -- -- - Due from third parties 70.668 92.650 Other investments, including derivatives 54.507 46.746 Investments in equity accounted investees 1.695.284 1.715.017 Investment property 1.889.565 1.890.829 Property and equipment 2.574.554 2.636.427 Intangible assets 837.009 905.172 - Goodwill 312.365 394.407 - Intangible assets 524.644 510.765 Prepayments 133.769 74.172 Deferred tax assets 80.782 139.451 Other non-current assets 203.088 172.069 Total non-current assets 7.539.226 7.672.533 TOTAL ASSETS 10.115.298 11.580.491 137

Appendix I.1 Doğuş Holding Anonim Şirketi and its Subsidiaries As at 31 December 2015 Consolidated Statement of Financial Position (continued) (Amounts expressed in thousands of USD) 31 December 2015 31 December 2014 LIABILITIES Current Liabilities: Short term loans and borrowings 773.817 565.796 Short term portion of long term loans and borrowings 663.304 757.574 Other financial liabilities -- 6.656 Trade payables 497.678 369.763 - Due to related parties 16.175 4.275 - Due to third parties 481.503 365.488 Current tax liabilities 3.683 5.285 Provisions 45.115 52.705 - Employee benefits 13.185 13.503 - Other provisions 31.930 39.202 Other current liabilities 161.106 359.695 Total current liabilities 2.144.703 2.117.474 Non-Current Liabilities: Loans and borrowings 3.521.718 4.113.486 Trade payables 117 8.967 - Due to related parties -- -- - Due to third parties 117 8.967 Provisions 38.224 38.115 - Employee benefits 29.426 28.273 - Other provisions 8.798 9.842 Deferred tax liabilities 132.995 202.234 Other non-current liabilities 231.159 202.305 Total non-current liabilities 3.924.213 4.565.107 TOTAL LIABİLITIES 6.068.916 6.682.581 EQUITY Equity attributable to owners of the Company: Share capital 294.410 369.152 Adjustments to share capital 519.488 651.371 Capital stock held by subsidiaries (-) (32.512) (40.765) Share premium 57.568 72.183 Other comprehensive income items that will never be classified to 776.800 profit or loss 668.721 Other comprehensive income items that are or may be classified to 88.047 profit or loss 84.907 Restricted reserves 936.641 1.229.703 Retained earnings 1.289.186 1.521.114 (Loss) / profit for the year (148.865) 26.193 Total equity attributable to owners of the Company 3.780.763 4.582.579 Non-controlling interests Şahenk family 58.586 71.255 Other 207.033 244.076 Total non-controlling interests 265.619 315.331 TOTAL EQUITY 4.046.382 4.897.910 TOTAL LIABILITIES AND EQUITY 10.115.298 11.580.491 138

Appendix I.2 Doğuş Holding Anonim Şirketi and its Subsidiaries Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2015 (Amounts expressed in thousands of USD) PROFIT OR LOSS 31 December 2015 31 December 2014 Revenue 5.084.124 4.473.178 Cost of sales (-) (4.561.631) (3.961.981) Gross profit 522.493 511.197 Administrative expenses (-) (407.279) (382.190) Selling, marketing and distribution expenses (-) (158.944) (170.458) Other operating income 198.461 176.835 Other operating expenses (-) (85.140) (100.693) Share of profit of equity accounted investees, net of tax 77.036 408.297 Operating profit 146.627 442.988 Gains from investing activities 453.081 12.218 Losses from investing activities (-) (2.831) (4.088) Profit before net finance cost 596.877 451.118 Finance income 285.333 136.551 Finance cost (-) (978.689) (460.237) (Loss) / profit before tax (96.479) 127.432 Tax income / (expense) from continuing operations - Current tax expense (36.586) (21.511) - Deferred tax income 8.632 (52.562) (Loss) / profit for the year (124.433) 53.359 Profit attributable to: Non-controlling interests 24.432 27.166 - Şahenk family 8.183 11.067 - Other 16.249 16.099 Owners of the Company (148.865) 26.193 (124.433) 53.359 Earnings per share (full USD) (0,17) 0,03 139

Appendix I.2 Doğuş Holding Anonim Şirketi and its Subsidiaries Consolidated Statement of Profit or Loss and Other Comprehensive Income (continued) For the Year Ended 31 December 2015 (Amounts expressed in thousands of USD) OTHER COMPREHENSIVE INCOME 31 December 2015 31 December 2014 Items that will not be reclassified to profit or loss: 271.857 137.050 Revaluation of property and equipment 161.138 132.309 Remeasurements of defined benefit liability (278) 1.486 Tax on items that will not be reclassified to profit or loss: - Deferred tax (8.001) (6.913) Other comprehensive income from equity accounted investees, net of tax 118.998 10.168 Items that are or may be reclassified to profit or loss: 32.344 81.014 Foreign currency translation differences for foreign operations 26.601 5.107 Changes in fair value of available for sale financial assets 1.047 392 Effective portion of changes in fair value of cash flow hedges 3.426 (4.296) Net investment hedge for foreign operations (48.168) 11.133 Tax on items that are or may be reclassified to profit or loss: - Current tax 9.633 (2.226) - Deferred tax (685) 859 Other comprehensive income from equity accounted investees, net of tax 40.490 70.045 OTHER COMPREHENSIVE INCOME 304.201 218.064 TOTAL COMPREHENSIVE INCOME 179.768 271.423 Total comprehensive income attributable to: Non-controlling interests 22.308 38.213 - Şahenk Family 8.247 12.007 - Other 14.061 26.206 Owners of the Company 157.460 233.210 179.768 271.423 140