At Enerjisa Üretim, performance management, remuneration and recognition are structured as an integrated and mutually reinforcing system designed to support sustainable high performance and long-term value creation. This holistic approach ensures that individual contributions are clearly defined, fairly evaluated, consistently rewarded and continuously recognized, while strengthening ownership, collaboration and accountability across the organization. We define high performance not only through the achievement of targets, but also through the way those results are delivered. Accountability encompasses not only the level of goal achievement, but also the methods adopted in pursuing those goals, ensuring that business outcomes are achieved in safe, ethical and responsible ways. By integrating performance, reward and recognition, we seek to foster a culture that encourages ownership, collaboration and continuous improvement.
At the core of our performance management approach is the implementation of Objectives and Key Results (OKRs). OKRs translate strategic priorities into measurable and aligned goals across organizational, team and individual levels. Objectives define what needs to be achieved, while Key Results specify how success is measured through clear and quantifiable indicators. This structure helps ensure that performance is outcome-based and that every colleague understands how their contributions support the company’s strategic priorities.
All OKR processes are managed through the Perfx digital performance platform, which enables goal setting, progress tracking, mid-year and year-end evaluations and centralized reporting. The performance cycle follows a structured annual flow consisting of objective setting, a mid-year review, a second check-in and a year-end evaluation. Employees complete self-assessments followed by one-on-one discussions with their managers, reinforcing continuous dialogue, transparency and development-focused feedback.
To ensure fairness and consistency across the organization, calibration processes are conducted across teams and functions. These sessions align performance ratings, reduce inconsistencies and establish a common evaluation standard, providing important inputs for compensation and talent decisions. In 2025, goal entry rates reached 100%, overall OKR alignment reached 88%, and calibration alignment reached 98%, reflecting the maturity and effectiveness of the process.
Our remuneration approach is based on market competitiveness and internal equity. We participate in independent salary surveys twice a year and benchmark compensation against national market data and a defined peer group. Salary increases are reviewed annually, taking into consideration inflation, market positioning, budget, internal equity and performance outcomes.
In addition to base salary, performance-based bonuses are governed through a formal framework defining eligibility criteria, weighting principles and approval mechanisms. The framework also incorporates malus and clawback provisions where applicable, reinforcing responsible and sustainable performance.
To enhance transparency and strengthen awareness of the overall value proposition offered to employees, we implement a Total Reward approach. Through annual Total Reward Statements, colleagues receive a comprehensive overview of base salary, variable compensation, benefits and non-monetary rewards, supporting a clearer understanding of the overall rewards ecosystem.
Sustainability considerations are increasingly embedded into remuneration frameworks. In 2025, 10% of the CEO’s performance evaluation was directly linked and an additional 22.5% was indirectly linked to sustainability targets. In addition, at least 78% of the annual KPIs of leadership team members were associated with sustainability and climate change objectives. The CDP Climate Change score also directly influences executive performance bonuses, reinforcing accountability and encouraging sustainability-oriented decision-making.
Alongside performance outcomes, we continue to strengthen the fairness, transparency and long-term orientation of our reward approach. By balancing market competitiveness with internal equity and by progressively integrating non-financial considerations into performance and remuneration frameworks, we aim to reinforce responsible decision-making, support trust in the system and align individual incentives with sustainable value creation.
Recognition forms an integral part of our culture and extends beyond performance outcomes to include collaboration, support and everyday contributions. Through the “İyi ki Varsın” digital platform, colleagues can recognize each other in real time by sending digital reward points, known as electrons, linked to company values and redeemable through an internal marketplace. In 2025, the allocation rate of electrons reached 94%. Recognition is further supported through digital thank-you cards and appreciation tools that encourage colleagues to acknowledge meaningful contributions and reinforce positive behaviors. As part of this approach, the annual Thank You Movement promotes conscious and well-justified appreciation through a dedicated campaign period supported by clearly defined criteria. In 2025, colleagues sent 292 thank-you cards and received 287 cards. By encouraging appreciation that extends beyond the campaign period, we seek to foster a sustainable culture of gratitude, recognition and belonging.
Through an integrated approach combining performance management, remuneration and recognition, we continue to create an environment in which colleagues are empowered to perform at their best, contribute to shared success and create sustainable long-term value.