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2023
Activity
REPORT
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LOKMAN HEKÿM ENGÜRÜSAÿ A.ÿ.

2023 ANNUAL REPORT

Trade name : Lokman Hekim Engürüsaÿ

Health Tourism. Eg. Speed. and Cons. Commitment. Inc.

Paid-in capital : 36.000.000-TL

Registration Date in the Trade Registry : 06.08.1996

Registered Trade Registry : Ankara

Trade Registry Number : 120498

Telephone : 444 99 11

Fax : (0312) 331 71 40

Investor Relations Phone : 444 99 11/2138-2150

Corporate Website : www.lokmanhekim.com.tr

www.ir.lokmanhekim.com.tr

Exchange on which it is traded : Borsa Istanbul

Share Code : LKMNH

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04 Our Mission Our Vision 73 Pricing Policy

06 Our Core Values 73 Donation and Aid Policy

08 Our Development Process 74 Shares Repurchased

10 hospitals 76 Future Considerations

12 CEO Evaluation 76 Stock Performance

14 Financial Summaries 77 Foreign and Domestic Ratio

24 Human Resources 78 Market value

30 Members of the Board of Directors and Senior Executives

Management
78 Share Price

34 Capital and Partnership Structure 79 Investor Relations Department (YÿB)

35 Affiliates Subsidiaries 80 Compliance with Corporate Governance Principles

Report

38 Strategic Goals 96 Independent Auditor's Opinion

58 Our Other Services 98 Financial statements

62 Creating Health Awareness

Social Responsibility and Awareness

63 Projects

64 Events and Fairs

65 Creating Brand Experience

66 Sponsorship

70 Corporate Governance

CONTENTS
72 Dividend Policy
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•2023

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OUR MISSION
OUR VISION

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Our Mission
We are a healthcare organization
that aims to provide
healthcare services to humanity
with a human-oriented culture
and corporate approach, while
adhering to social and medical
ethics.

our vision
It is a follower of scientific developments,
a pioneer in the use of advanced
technology, offering excellent patient
experience with our expert staff, easily
accessible to all segments of society,
and "first of mind" in our
health services.
To become a leading
international brand.
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Security
All kinds of our
patients
safety is our main
priority.

Respect
We respect patient
rights.

Rapport
We
comply with
medical deontology,
ethics and laws.

Transparency
We attach
importance to
corporate governance
and transparency.
Society and
Environmental Awareness

We attach
Luqman
importance to our
Physician Family responsibilities towards
We care about the society and the
satisfaction of all
members of the Lokman environment and act sensitively.
Hekim family with
their working lives and
their
commitment to
the institution, and
we believe in the power
of teamwork.

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BASIS
OUR VALUES
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DEVELOPMENT S

Establishment
1996
broiler
hospital
2002
Ankara
hospital
2008

Borsa Istanbul
Bundle
IPO
Medicine
2011
Central
2016
Van Life
hospital
van 2013
hospital Erbil Tanÿ ve
2012 Views
Central
2013

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OUR PRODUCER

Luqman
Physician Mia Medicine
Akay University Central
hospital 2017 2019
2016

Ankara Hospital
Lokman Hekim
University Business
union
2020

New Meat Bowl

hospital
2020

Lokman Hekim
university
Söÿütözü Dental
hospital Istanbul
2021 hospital
Luqman
2022
Physician
Logistics
2023
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Lokman Hekim Istanbul Hospital Lokman Hekim Akay Hospital

25,000 m² Area 18,000 m² Area
200 Beds 126 Beds

Lokman Hekim Etlik Hospital Lokman Hekim Hayat Hospital

12,000 m² Area 4,500 m² Area
100 Beds 69 Beds

LHÜ Ankara Hospital Lokman Hekim Van Hospital

17.500 m² Area 12.500 m² Area

216 Beds 216 Beds

LHÜ Söÿütözü Dental Hospital Lokman Hekim Erbil Diagnostic Center

2,500 m² Area 2,000 m² Area

70 Units

Lokman Hekim Demet Medical Center

2,400 m² Area

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CEO
EVALUATION

Intense investment and

work to pioneer
technological
developments, one step
ahead of the digital
transformation era, has now
become a routine in our lives.

Süleyman Alper ÿnceöz

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Our Valuable Stakeholders,
We have left behind the
year 2023, where important
social and economic
developments took place,
social solidarity reached its peak,
and we celebrated the
100th anniversary of the
founding of our Republic.
We wish God's mercy to our citizens
who lost their lives in the
earthquakes centered in
Kahramanmaraÿ and offer our
condolences to their relatives.
We commemorate the founders
of our Republic, especially
Gazi Mustafa Kemal Atatürk,
with mercy and gratitude.
As Lokman Hekim
Health Group, we are proud to share
with you, our valued stakeholders, our
2023 financial and operational
results, which have developed as
a result of our successful
implementation of the agile management
model, in this period where
macroeconomic indicators differ
significantly from predictions and the
effect of high inflation continues.
Lokman Hekim Health Group
continues to grow by making
a superior effort to achieve value-
added services, health tourism
activities, efficiency-enhancing
studies and all these, despite the
strict regulation, pricing,
aggressive competitive
employment and investment policies
on the public private health sector.
Lokman Hekim Health Group
has been developing its
transparent, predictable
and corporate structure for 27
years since its establishment
in 1996, while simultaneously
carrying out important studies
on sustainability.
In this context, we aim to
complete the renewable energy
(SPP) investment in 2024.
Again, we aim to replace our
vehicle fleet with vehicles
powered by renewable energy
sources to reduce carbon emissions.
Intense investment and work to pioneer
technological developments, one
step ahead of the digital transformation
era, has now become a routine in
our lives.
In 2023, the service quality and patient
safety procedures of Lokman
Hekim Istanbul Hospital were
approved by the American-
based JCI (Joint Commission
International) and were entitled to
receive JCI accreditation.
We would like to share with
you that we have started working
on the establishment of Lokman
Hekim Academy in order to invest in
human resources, which is our most
important strength, to
increase service quality in 2024.
Considering the economic situation and
financial costs of our country,
a new hospital will be planned in
2024.
We would like to state that
we will continue to evaluate
purchasing opportunities.
In the high inflationary period
we are in, inflation
accounting started to be
applied again after many years.
In this context, we would like to point
out that the financial statements
we share with you are
indexed as of 31.12.2023.
Our inflation-adjusted sales
revenues and EBITDA increased
by 14.3% and 18.7%, reaching 1,896
million TL and 359 million TL,
respectively.
In 2023, we made a total investment
expenditure of 272 million TL, most
of which was spent on renewable
energy, modernization and
technological infrastructure.
Our future expectations for 2023
were realized in line with the figures
without inflation accounting.
I hope that 2024 will bring
health, peace and prosperity to
humanity, our country, our
company and our colleagues.
I would like to express my
gratitude to our
colleagues who contributed to the
emergence of this successful and
stable picture.
Kind regards,
Annual
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•2023
Süleyman Alper ÿNCEÖZ
CEO
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Profitable Growth in Health and

We Stand Out Successfully

NET PROFIT

322 Million TL
EBITDA

359 Million TL
ENDORSEMENT

1.896 Million TL

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Sales Revenues

2022 1,659 Increase

2023 1,896 14.3%

The consolidated turnover of our company after the period activities was 1,896 million TL.
It increased by 14.3% compared to the same period last year . (2022: 1.659 million TL)

Cost Cost of sales (-) Net Sales SM/NS

2022 1,454 1,659 Drop

87.7%

2023 1,631 1,896

86.1% 1.6%
The ratio of cost of sales to net sales was 1,631 million TL,
86.1% . (2022: 1,454/87.7%).

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EBITDA

2022 303 Increase

2023 359
18.7%
2023 EBITDA increased by 18.7% compared to the same period of the previous year
and reached 359 million TL (1). (2022: 303 million TL)

EBITDA Margin

2022 18.2%

2023 19.0%

2023 EBITDA margin increased by 80 bps and reached 19% . (2022: 18.2%)
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Net profit

The parent company profit for 2023 was

2022 317
322 million TL . (2022: 317 MTL)
consolidated net profit was 332 million TL . (2022:
2023 322
306 million TL)
Parent Company Profit

Profit per share is 8.95 TL. (2022; 8.80 TL)

Net Debt
Adjusted Net Debt was 341 million TL . (2) (2022: 316 million TL)
Adjusted Net Debt / EBITDA multiplier was 0.95. (3) (2022: 1.04)

Investments
Our company made a total investment expenditure of 272 million TL in
2023 . The majority of investment expenditures were made for hospital
modernization, capacity increase, machinery equipment/fixture purchases and Solar
Energy Plant (SPP) investment.

*
Within the scope of TFRS 16 Leases Standard, it is "classified as operating lease" and depreciation and financing expenses are
calculated for these leases. Additionally, due to this regulation, an additional liability of 88.4 million TL was reported under Short
and Long-term Liabilities in the Balance Sheet. (31.12.2022: 192.1 million TL)

(1) Consists of EBITDA = Gross Profit - Operating Expenses (GYG+PSDG) + Depreciation expenses (including TFRS 16 rental
depreciations).
(2) Adjusted Net debt = KV+UV Financial Liabilities - (TFRS 16 KV&UV Lease Obligations + Cash + Financial Investments +
Sevgi Foundation Affiliation Advance + Repurchased Shares)
(3) Adjusted Net debt / Annual EBITDA

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For Green Future

Sustainable Today
Health

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In 2023
Strong Financial
Performance

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Return on Equity (Million TL)

Summary Balance Sheet 2022 2023 Change

(Million TL)
Rotating 535.5 592.9 11th%

assets

Fixed Assets 1,608.7 1,694.0 5%

2022 1,086
Total 2,144.2 2,286.9 7%
assets
2023 1,318
Short term 662.0 658.2 -one%

Obligations
ROE: 28%
Long-term 396.5 311.2 -22%
Obligations

Equity 1,085.7 1,317.5 21%

Our company's return on equity in 2023 was 21%.

Asset Profitability (Million TL)

Summary Income 2022 2023 Change

(Million TL)
Revenues 1,658.7 1,895.5 14%

Gross profit 204.7 264.1 29%

Main Activity 126.0 177.5 41%

2022 2,144 Wife

Financing 174.5 144.7 -17%

2023 2,287 Expense

Pre-tax 294.1 291.7 -one%

ROA: 15% Snow

Period Profit 306.0 332.2 9%

Parent Partnership 316.9 322.2 2%

Shares

The asset size of our company in 2023 increased by 7% compared to the previous year and
reached 2,287 million TL.
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Revenues by Activities 2023 2022 Change

health income 1,674,228,737 1,472,482,532 13.7%

Livestock, milk, feed sales 46,373,883 27,727,667 67.2%

Hospital rental income 124,498,902 128,982,359 -3.5%

E-Health revenues 4,574,259 7,986,996 -42.7%

Logistics revenues 39,997,993 16,577,293 141.3%

Other Income 5,871,849 4,948,540 18.7%

Total 1,895,545,623 1,658,705,387 14.3%

DISTRIBUTION OF HEALTH SERVICE REVENUES BY PAYMENT TYPE

2022

45.6% 26.6% 15.6% 12.2%

Out of Pocket Payments SSI Contracted Institutions Health tourism

2023

48% 25.5% 16.2% 10.3%

Out of Pocket Payments SSI Contracted Institutions Health tourism

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While Building the Future

Our Most Valuable
Resource; Our employees

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Kariyer.net 2023
Respect for Humanity Award

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As in previous years, we were entitled to receive the Kariyer.net Respect

for People Award, one of Turkey's most prestigious and well-established human
resources awards. We would like to thank all our colleagues who contributed
to this success.
Annual
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•2023

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CORPORATE DEVELOPMENT TRAINING PROGRAMS

Thanks to our training workshop, we contribute to the development of thousands of our staff through the
training we provide, and at the same time, we organize activities for the development of the institution, being
aware of the importance of education.

While contributing to the training of our personnel, we ensure the continuity of the training by standardizing the
presentation contents of in-service training in accordance with the current literature in accordance with the Health
Quality Standards.

The trainings also aim to strengthen internal communication. In this regard, body language training is also provided
in addition to verbal and written communication training.

To monitor our station work activity

Annual
Report
•2023

You can scan the QR code on your mobile device.

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BOARD OF DIRECTORS
MEMBERS and TOP MANAGEMENT
Dr. Mustafa SARIOÿLU
Chairman of the Board
1990 Ankara University Faculty of Medicine
1995 Ankara University Faculty of Medicine Internal
Medicine Specialization
2002 Ankara University Faculty of Medicine
Gastroenterology Residency
2003-Private Lokman Hekim Hospital Internal
Medicine and Gastroenterology
professional
2002-2009 Engürüsaÿ A.ÿ. Vice Chairman of the
Board of Directors
2009- Lokman Hekim Engürüsaÿ A.ÿ.
Chairman of the Board of Directors
2014- Lokman Hekim Van A.ÿ.
Chairman of the Board of Directors
2014- Lokman Hekim Engürüsaÿ A.ÿ.
General manager
2016- Lokman Hekim Medical Center A.ÿ.
Chairman of the Board of Directors
2017- Lokman Hekim University
Member of the Board of Trustees
2019- Heryerde Saÿlÿk A.ÿ. Chairman of the
Board of Directors
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Dr. Mehmet ALTUÿ
Vice Chairman of the Board of Directors
Ankara University Medicine Department in 1995
Faculty
1995-2003 Ministry of Health, Medicine
doctor
1996- Lokman Hekim Engürüsaÿ
Founding and Board Membership
1998-2000 Lokman Hekim Polyclinic
Directorate
2002-2006 Lokman Hekim Etlik
Hospital Chief Physician
2008-2011 Lokman Hekim Sincan
Hospital Chief Physician
2003- Private Hospitals Platform
Association Presidency
2014- Lokman Hekim Engürüsaÿ A.ÿ.
Vice Chairman of the Board of Directors
2016- Lokman Hekim Medical Center A.ÿ.
board member
2017- Lokman Hekim University
Chairman of the Board of Trustees
2024- DEIK/Health Business Council
Presidency
Prof. Dr. Celil GöÇER
board member
1996 Hacettepe University Medicine
Faculty, General Practitioner
2000 Ankara Education and Research
Hospital, Ear Nose and Throat
professional
2001 Ankara Numune Training and
Research Hospital, Chief Assistant
2002 USA, Los Angeles, House Ear
At the Institute, Observer
2010 Ministry of Health Derince Training and
Research Hospital, ENT Clinic Chief
2011-2014 Lokman Hekim Ankara
Hospital, Chief Physician
2014-2016 TR Prime Ministry Health
Coordinatorship and Chief Advisor to
the Prime Minister
2015-2018 25th and 26th Term TBMM Tokat
Deputy, Deputy Chairman of the Health,
Family, Labor and Social Affairs Commission
European Security and Cooperation
Member of the Turkish Grand National Assembly in the Organization (OSCE)
2014- Lokman Hekim Engürüsaÿ A.ÿ.
board member
He speaks English and German.
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ÿrfan GÜVENDÿ
board member
1991 Ankara University Political Sciences
Faculty of Information
2002 Sworn Blue Consultant
2006 Selçuk University Master's Degree
2022 Yÿldÿrÿm Beyazÿt University
Doctoral Education Continue
1992 Court of Accounts Auditor Assistant
2003-2009 Türkiye Agricultural Credit
Cooperative Deputy General Manager
2003-2007 Güven Sigorta Board of Directors Chairman
Deputy/President
2003-2009 Gübre Factories Inc.
Deputy Chairman of the Board of Directors
2009-2014 Lokman Hekim General
Manager and Chairman of the Board
deputy
2014-2016 Türkiye Agricultural Credit
Cooperative General Manager
2014-2016 Gübre Factories Inc.
Chairman of the Board
2014-2016 Groupama Insurance Management
Deputy Chairman of the Board
2016-2020 Court of Accounts Expert
auditor
2021 Lokman Hekim Engürüsaÿ Aÿ.
board member
2021 Heryerde Saÿlÿk Aÿ Management
Deputy Chairman of the Board
2021 Orçay A.ÿ. Independent Board Member
2022 Pacific GYO A.ÿ. Independent
Board Member
Nazÿm BÿLGEN
board member
1994- Bilgen Construction Ltd.ÿti. Partner/
General manager
1996 Gazi University Communication
Faculty
2002-2014 Lokman Hekim Engürüsaÿ
Inc. board member
2005-2010 Lokman Hekim Engürüsaÿ
A.ÿ General Manager
2017- Lokman Hekim University
Member of the Board of Trustees
2020- Lokman Hekim Engürüsaÿ A.ÿ.
board member
2021 Lokman Hekim Van A.ÿ. board member
Basic ÜNLÜ
board member
Ankara University Health Services
Vocational School
Anadolu University Faculty of Economics
1989 Presidency of Religious Affairs
Zonguldak province Devrek District
Civil service in the Mufti's Office
Emin Paz in 1992-1993. LTD ÿTÿ Electronics
and White Goods Marketing,
Ankara University in 1993-2005
University Optical Examination Center
in the Department of Biostatistics
Responsibility and Cebeci Hospitals
Chief Physician's Office
2005-2008 Yenimahalle Bel. Vice President,
Purchasing and Tender Department
2009-2014 General Directorate of Foundations
Department of Health Services,
(Foundation Gureba Education and Research
Hospital Management and transfer processes to
Bezmialem Vakÿf University)
2014-2020 General Directorate of Foundations
Ankara, Bolu, Çankÿrÿ, Kÿrÿkkale and
Ankara, to which Düzce provinces are affiliated
Regional Directorate
2011-2020 Vakÿf ÿnÿaat ve Restorasyon A.ÿ.
Audit and Board Membership
1996 Founding of Lokman Hekim
2020- Lokman HekimManagement
Services Director
2021- Lokman Hekim Engürüsaÿ A.ÿ Board
Membership
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Hunting. Ömer GÖKTAÿ
board member
2003 Baÿkent University Law
Faculty
2004 Notary Certificate
2019 Mediation Certificate
2018- World Energy Council Turkish National
Committee Member
2014- Turkish Energy Foundation Trustee
Deputy Chairman of the Delegation
2020- Muÿla Natural Assets Protection
Board Member
2016- Lokman Hekim Engürüsaÿ A.ÿ.
board member
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Mehmet ALDANMAZ
Independent Board Member
1996 Bursa Uludaÿ University, Department of
Business Administration
Ülker Regional Sales between 1995-2005
inspectorate
2006-2009 Yön A.ÿ. deputy general manager
2009-2012 Birgür Design General
Directorate
2013- Türk Telekom Türk Telekom HR
Projects Coordinator
2021- Lokman Hekim Engürüsaÿ A.ÿ.
Independent Board Member
2023- ASÿL Association Board of Directors
President
Yusuf TÜLEK
Independent Board Member
1983-1994 Turkish Electricity Authority
Engineer
1994-1996 Çukurova Elektrik A.ÿ. Project Manager
1996-1998 Rumeli Holding A.ÿ. deputy general
manager
1998-2000 ASNA Holding A.ÿ. Electrical
Projects Coordinator
2000-2003 Ensida Ltd. Ltd. Advisor
2003-2004 Türkiye Electricity Trade Contracting
Inc. Member of the Board of Directors, Deputy
General Manager
2004-2010 Energy Market Regulatory Authority
2nd President, Board Member
2010-Present TB Enerji Yatÿrÿmlarÿ
Danÿÿmanlÿk Ltd. Sti., Ankara Founding Partner
2019-Present TG Denizli ÿnÿaat A.ÿ.
Vice Chairman of the Board of Directors, Founding
Partner
2020-Present ION Çevre Teknolojileri A.ÿ. Ankara
Chairman of the Board, Founding Partner
2021-Current Lokman Hekim Engürüsaÿ
A.ÿ., Ankara Independent Board Member
2022-Current AKFEN Renewable Energy Inc.
Ankara Independent Board Member
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SENIOR MANAGEMENT

Süleyman Alper ÿNCEÖZ

CEO

Ali Haydar YAKUT

Business Development and Marketing Director / CMO

Hakan SÜSLÜ
Foreign Relations and International Services
Director

Basic ÜNLÜ
Director of Management Services

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CAPITAL AND
PARTNERSHIP STRUCTURE

The issued capital of the company is 36,000,000 The distribution of issued capital among share
TL (Thirty-Six Million Turkish Liras). groups is as follows:
divided into 36,000,000 (Thirty-Six Million)
shares, each with a nominal value of 1 TL Share Group Share Amount “TL”
(One Turkish Lira).
A. 289,811.33
Our company's registered capital ceiling
amount, valid for the years 2021-2024, B. 35,710,188.67
It is 200 million TL.
Total 36,000,000.00

Our company increased its capital of 11.13 MTL to 24 MTL with a 25% (2,782,500 units) public offering
in 2011, a 15% (2,087,500 units) free capital increase in the same year, and a 50% (8,000,000 units) free
capital increase in 2014. Increasing the issued capital of 24,000,000 TL as of 11.06.2021 by 12,000,000
TL (50%) free of charge within the scope of profit distribution to 36,000,000 TL and amendment of Article
6 of the Company's Articles of Association titled "Capital and Privileges" occurred during the period.

Natural and Legal Persons Holding a Direct Share or Voting Rights of 5% or More in the Capital as of the
Report Publication Date: None, according to the data announced by MKK.

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AFFILIATES
SUBSIDIARIES

Lokman Hekim Van Health

Services and
Construction Contracting Inc.
Field of Activity:
Health care
Participation Rate (%): 51.00

Lokman Hekim
Engürüsaÿ General
Istanbul Health
Trade Ltd. Ltd. (Erbil)
Investments Inc. Field of Activity:
Field of Activity:
Health care
Health care
Participation Rate (%): 95.00
Participation Rate (%): 100.00

Lokman Hekim
*
Medical Centers Inc.
Field of Activity:
Health care
Participation Rate (%): 100.00

Her Yerde Saÿlÿk ve HYS Insurance

Elektronik Ticaret A.ÿ. Brokerage Services Inc. (HYSS)
Field of Activity:
(HYSET)
Field of Activity: Insurance and Brokerage
Electronic trade Services
Participation Rate (%): 100.00 Participation Rate (%): 100.00

Lokman Hekim
**
Logistics Inc.
Field of Activity:
Logistics Services
Participation Rate (%): 100.00
Annual
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•2023

(*) Our company has been granted the privilege of a minimum of 66% in management representation and 100% in dividends, and the right to pre-
empt non-privileged shares at
nominal value. (**) It was established on 28.07.2023.
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With Strategic Steps

More and more
Forward
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STRATEGIC OBJECTIVES

LOKMAN health investments

scattered in Anatolia
Collecting and growing
under the HEKÿM brand

Increasing service quality and

efficiency with our cooperation with
Lokman Hekim University

Increasing the share of health

tourism revenues in turnover

Increasing the share of

home care and health services
revenues in turnover

To achieve sustainable growth

and high profitability through strategic
investments or partnerships.

To carry forward the advantages

we provide in corporate
management, efficiency and cost.

Developing new projects in

the digital field with e-Health
applications.

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In 15 Different Languages

With Translator Support

On Your Health Journey
We are with you

We are with You on Health Journey

with the Support of Translators in 15
Different Languages!

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•2023

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ISTANBUL
HOSPITAL

The 7-storey hospital,

established on a closed area of
approximately 25,000 m² in the
Kurtköy district of Istanbul,
has 500 employees, 70 physicians,
35 intensive care beds and
165 service beds, and has been
providing services in 25 different
branches with a total capacity
of 200 beds as of 01.04.2022.

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ANKARA
HOSPITAL

The 8-storey hospital in Ankara's

Sincan district has 6 fully
equipped operating rooms and a helipad
to accept patients arriving by Air
Ambulance.

The hospital has a 51-bed General

Intensive Care Unit, a 6-bed
cardiovascular intensive care
unit, a 4-bed coronary intensive care unit,
a neonatal intensive care unit
with 21 incubators and 134 service beds,
with a total capacity of 216 beds. As of
01.01.2023, Lokman Hekim Ankara
Hospital's lease of all fixed assets,
including real estate, to Lokman Hekim
University Health Application
and Research Center has been
extended for 3 years.
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MEATLIC
HOSPITAL

In addition to the Etlik

Hospital building, which
started operating in Ankara
Etlik district in 2002, it operates
in 2021 with an additional
hospital building built on an
area of approximately 9,000 m²,
with 9 floors and a parking lot for
100 vehicles, on a total area of
12,000 m², with a bed capacity
of 100.

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AKAY
HOSPITAL

The 11-storey hospital, built

on a closed area of approximately
18,000 m² in Ankara's Çankaya
district, has 101 service
beds, including a 3-bed
internal medicine unit, a 4-bed
coronary unit, a 3-bed surgical
intensive care unit, a 6-
bed neonatal intensive care unit, a
9-bed CVD intensive care
unit. It has a total capacity
of 126 beds.

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VAN
HOSPITAL

The 9-storey hospital, built on

a closed area of approximately
12,500 m² in the center
of Van, has 5 full-
fledged operating rooms, a 31-bed
general intensive care unit,
a 5-bed cardiovascular
intensive care unit, a 17-
bed coronary intensive
care unit, a neonatal intensive
care unit with 64 incubators and
99 service beds. It has a total
capacity of 216 beds.

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VAN HOSPITAL
LIFE

Located in the center of Van,

on a closed area of
approximately 4,500 m²,
at hospital , there is a 5-
storey internal and surgical
intensive care unit with
13 beds, a neonatal intensive
care unit with 26 incubators and
30 service beds, with a
total capacity of 69 beds.

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BUNDLE
MEDICAL CENTER

It started its operations in 2016

to provide outpatient
treatment and health services in
a 2,400 m² closed area in the
Demetevler district of Ankara's
Yenimahalle district.

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ERBIL
DIAGNOSIS CENTER

The diagnosis and

imaging center, which
started operating in
Erbil, Iraq in 2013,
operates in a closed area
of approximately 2,000 m

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OUR OTHER SERVICES

Health Everywhere HYS Insurance

Health Everywhere is a healthcare comparison platform
established to provide access to qualified and reliable healthcare
services in the easiest and most transparent way.
healthineverywhere.com publishes different offers for various
services of Turkey's leading healthcare institutions, allowing users
to choose the services that best suit them.
Carrying its customer-oriented and innovative
vision forward with sustainable steps, HYS Sigorta
specializes in special solutions especially for the
healthcare sector. It uses its experience and
knowledge in this field to offer the right solutions to its
customers and stakeholders and to provide a positive
experience.

It has activated its first product, Cana Can Pregnancy and Birth
Policy, as of November 2022. Studies on increasing the number
Health Everywhere is not just a website or organization that of contracted institutions and developing new products, which
aims to manage typical health tourism. It is a holistic are determined as the primary target, continue rapidly.
approach that decides on health care, based on an
understanding that aims to fulfill all the requirements of e-
commerce, digital marketing and customer satisfaction,
which makes a difference in health tourism, and paves
the way for the new generation of health tourism. By
comparing the qualifications and conditions of all service
providers, it helps clients provide safe and transparent
consultancy services by receiving support in their
native language through call centers and communication
channels, as well as other services that clients demand
and need, in addition to health care.

Lokman Hekim Logistics (LHL)

Lokman Hekim Logistics; industrial laundry services,
cleaning services, catering services and cafeteria
management services, construction project and
contracting services, biomedical and technical services, hospital
hotel textile/
is a service provider that offers furnishing services,
cleaning products production services, medical consumable
production and import services, and security services.
With our many years of experience and specialized
HAYSUT
team, we aim to facilitate the operation of businesses,
The "HAYSÜT" brand within our group operates in animal
protect the environment, and provide a better experience
husbandry and milk production in Haymana and Bala
for your employees and customers.
districts of Ankara. It has freehold enterprise status and milk
production and livestock breeding are carried out in
With our customer satisfaction and quality-oriented service
accordance with European standards.
approach, we continue to improve the functioning of businesses
and make their daily lives more comfortable.

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TURQUALITY

As a result of our Company's application to the

Ministry of Commerce, the Company's "Lokman
Hekim Engürüsaÿ" brand has been approved by TURQUALITY®
It was deemed appropriate to be included in the Brand Support
Program. Within this framework, expenditures and activities to
be carried out as of 26.04.2022 will be supported.

JCI (Joint Commission International)

We are proud to certify that the reliable and quality

healthcare service we provide complies with
international standards. Our Lokman Hekim Istanbul
Hospital was entitled to receive the international quality
certificate issued by Joint Commission International (JCI), a
globally recognized and accepted independent accreditation
organization.
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Healthy Information
Healthy Society

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Creating Health Awareness

As Lokman Hekim Health Group, we believe that information and awareness are the
basic elements in health. Based on this idea, we organize trainings on health issues
and share warning, preventive and informative posts in order to increase health awareness.
We actively use social media and other communication channels to increase health
awareness. In the content we share, we emphasize topics such as prevention of diseases,
the importance of early diagnosis, vaccines, and healthy life recommendations. At the same time,
we help the public make informed decisions by answering their health-related questions in
videos such as "What is it?" and "It's not what you know?" We aim to raise society's health
awareness through methods such as conveying health-related issues in an understandable
way, sharing information obtained from reliable sources and answering people's questions.

Patient Information Seminars Social Media Information Sharing

Social Media Information Sharing Seminars/Conferences

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Social Responsibility and Awareness Projects

As Lokman Doktor health group, we attach great importance to awareness projects in

order to increase health awareness. We carry out various social sharing activities to raise
public awareness on special days and during important health campaigns. In these projects and
sharings, we aim to increase the knowledge and level of society by focusing on health-related
issues.

Seminars/Conferences Social Media Shares

Videos Awareness Projects

Annual
Report
•2023

In-Hospital Activities Special Day Activities

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Events and Fairs

As Lokman Hekim Health Group, we take part in various events and fairs to reach
new people and potential investors with our brand every day. We aim to reach more
people with our health services through the work we do to both raise public awareness and
position our place in the health sector.

Teknofest - Ankara

100th Anniversary of our Republic Events

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Health Tourism Expo Berlin Health Tourism Conference

ETHEXPO Istanbul B2B Encounters Antalya

Creating Brand Experience

We act with the feedback from our patients in order to detect possible negative perceptions
about the Lokman Hekim brand and make improvements in the operational process, and we strive
to be reachable for every suggestion, request and complaint.
We evaluate the feedback from social media, website, websites and suggestion, request and
complaint boxes in our hospitals and make the necessary improvements so that our patients
can have the best experience. Annual
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SPONSORSHIPS

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As Lokman Hekim
Health Group, in 2023 and
currently, Ankaragücü in
the Super League

We continue our football

team health sponsorship.

As Lokman Hekim
Health Group, we continue
our health sponsorship of
Pendikspor Club in
the Super League in 2023 .
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As Lokman Hekim Health

Group , we continue our health
sponsorship with Türk
Telekom Sports Club
in the Basketball Super League
in 2023 .

As Lokman Hekim
Health Group, we continue
our health sponsorship with
Van Spor FK in the TFF 2nd
League in 2023 .

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As Lokman Hekim Health

Group , we continue our health
sponsorship with 365
Sports Games , which
organizes sports competitions
in 2023 .

As Lokman Hekim Health

Group , we continue our health
sponsorship in 2023 with
Tek Pota High School , an
inter-high school basketball
tournament.
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Institutional
Management

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DIVIDEND
POLICY
Within the framework of its compliance with Corporate
Governance Principles, our company has determined its
profit distribution policy for the following years, taking
into account the obligations of public companies regarding
profit distribution, and disclosed it to the public on our
website. In implementing
its dividend policy, the company takes into account the
company's investment activities and current financing
structure to ensure that its investors obtain income from
dividends as well as stock returns. The amount of dividends
that our company will distribute to its partners is
calculated based on the distributable profit based on
the financial statements. The dividend to be distributed for the
relevant accounting period will be determined in accordance
with the applicable legislation. The Board of Directors
decides whether to distribute the profit and, if so, the
amount of the profit and the date of distribution.
The proposal regarding this issue is discussed and decided
at the General Assembly.
There is no privilege regarding participation in the
company's profits. The distribution of profit is carried out
within the framework of the applicable Turkish
Commercial Code, Capital Markets Law, Tax Procedure
Law and other relevant legislative provisions and the
relevant articles of the Company's Articles of
Association. At the general assembly meeting of our
company held on 21.05.2023; It has been decided that
by adding the Net Distributable Period Profit of 2022 and
extraordinary reserves, the gross amount of
16,500,000.00 TL will be distributed as cash dividend,
and the dividend to be distributed in cash will be paid in two
equal installments on 29.09.2023 and 30.11.2023.
Dividend payment was paid on 29.09.2023 and 30.11.2023
during the period.

Dividend Date Cash Dividend Cash Dividend Cash Dividend

Gross Rate (%) Gross TL Net Rate (%)

30.11.2023 (2022 Profit - 2nd Installment) 45.83 8,250,000 41.25

29.09.2023 (2022 Profit - 1st Installment) 45.83 8,250,000 41.25

28.12.2022 (2021 Profit - 2nd Installment) 19.44 7,000,000 17.49

28.09.2022 (2021 Profit - 1st Installment) 19.44 7,000,000 17.49

22.11.2021 (2020 Profit - 2nd Installment) 11,11 4,000,000 9.44

20.09.2021-(2020 Profit - 1st Installment) 11,11 4,000,000 9.44

04.01.2021 (2019 Profit - 2nd Installment) 11.76 2,824,488 10.00

28.09.2020 (2019 Profit - 1st Installment) 8.24 1,975,511 7.00

26.11.2019 5.00 1,200,000 4.25

17.09.2018 10.00 2,400,000 8.50

20.07.2017 16.67 4,000,000 14,17

20.06.2016 11.76 2,823,529 10.00

13.07.2015 5.00 1,200,000 4.25

30.06.2014 6.06 969,600 5.15

30.05.2013 12.5 2,000,000 10.63

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PRICING
POLICY
This policy document defines the company's
pricing system and practices and the principles and rules
necessary for structuring, monitoring and controlling these
practices.
The Remuneration Policy defines the basic
principles of the company's remuneration
approach, reflects the company's mission, strategy and
values used in this approach, and underlines the
needs for compliance with the governance principles for
remuneration practices.
Wage Policy; It covers managers and employees at all
levels working in the company.
A fixed salary is determined every year at the
ordinary general assembly meeting, valid for all
members of the Board of Directors.
Fixed wages are paid in fixed amounts regularly
and continuously at certain periods of the year, regardless
of performance.
DONATION and HELP
POLICY
Lokman Hekim may provide assistance and donations
to social foundations, associations, universities and similar
organizations and public legal entities within the principles
determined by the Capital Markets Board.
Compliance with Lokman Hekim's corporate social
responsibility policies is taken into account when
choosing the form and amount of the donation and
the real or legal person to whom it will be made.
cash payments made. Such wages are determined by taking
into account the financial situation of the
company and are paid essentially to all employees according
to the working period, title and nature of the work
performed. It is essential that the fixed salaries to be
paid to the Board Members, Senior Management and
employees of the company are compatible with the
company's ethical values, internal balance and strategic
goals and are not associated with short-term performance.
The ultimate authority and responsibility for ensuring that
the company's remuneration practices are effectively
carried out and managed within the framework of the relevant
legislation and this policy belongs to the company's
Board of Directors. The Board of Directors ensures the
effectiveness of the policy by reviewing it at least once a
year. The company's senior management is responsible
to the Board of Directors for ensuring that the company's
remuneration practices are effectively carried out and managed
within the framework of the relevant legislation and this
policy.
A decision of the Board of Directors is required for donations
and aid with a total annual amount of over 20,000 TL.
All kinds of donations and aid made during the year
are presented to the shareholders at the Company's
Annual Ordinary General Assembly. The amount of
donations and aid made in 2023 is 19,703,323 TL.
(2022: 18,054,567-TL)
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Reclaimed
Shares

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Purpose of buyback; To prevent the share price
traded on the "BIST" from being negatively
affected by market conditions and serious losses in
value due to fluctuations that may occur in Turkish and
world markets, to protect shareholders, to ensure
that the share price is stable and in line with its
real value, and to maintain confidence in the company.
Accordingly, with the authority received at the
general assembly meeting dated March 27, 2021,
the company's board of directors was
authorized to purchase shares at the upper price
limit of 30 TL for 3 years until it reached 10%
of the capital. At the meeting of our company's
Board of Directors dated 02.11.2022, the current
buyback
It was decided that the share repurchase upper price
limit of 20 TL (30 TL before the capital increase)
determined in the program would be updated to 50
TL, and the decisions taken and transactions made
within this scope would be submitted to the information
and approval of the shareholders at the first general
assembly meeting.
All shares (1,880,455 units) owned by our company and
our subsidiary within the framework of the buyback
program were sold at a price of 20.10 TL on 02.11.2022.
A profit of 16 Million TL was made from the share sale.
The profit obtained is classified under equity
in the Independent Audit Report.

Current share information as of the reporting date within the scope of our company's share buyback;

Lokman Hekim Engürüsaÿ A.ÿ. owns: 363.257 Units 1.01%

Share Buyback
Purchase Sale

1,000
762 934 832
Thousand
TL

435 583
500 335 366
152
55
0
2015 2016 2017 2018 2019 2020 2021 2022 2023

-500
-600
-one thousand -832
-1.143
-1500

-1.880
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FOR THE FUTURE

REVIEWS
Our company's future evaluation for 2023;

Explanation 2022 Projected 2023 Realized in 2023

Revenues 845 MTL 1.250-1.350 MTL 1.895 MTL

EBITDA 173 MTL 270-310 MTL 359 MTL

EBITDA Margin 20.5% 21-23% 19.0%

Our consolidated turnover forecast is
affected by the significant impact of
inflation accounting introduced this year.
As a result of the Health Implementation
Communiqué (SUT), institutional agreements
and our work in the field of health tourism,
the performance was slightly above our expectations,
while inflation accounting was not implemented.
Due to the start-up, the EBITDA margin
was partially below our forecast.
The decrease of approximately 2 points in the EBIT
margin was in line with our expectations, as
Lokman Hekim Istanbul Hospital has not yet reached
the desired rate and for the reasons explained below.

SHARE
PERFORMANCE

Capital : 36-MTL Closing : 64.70-TL

Current Actual Circulation Rate: 71.13% Market value : 2.329-MTL

Lowest : 17.13-TL Transaction Volume : 5.747-MTL

Highest : 67.00-TL Transaction Volume (day/avg.) : 23-MTL

76 |
 200.00
250.00

100.00
150.00

50.00

0.00
30-12-2022

Foreign
06-01-2023

12.44%
13-01-2023

20-01-2023

27-01-2023

03-02-2023

17-02-2023

24-02-2023

03-03-2023

2022
10-03-2023
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17-03-2023

Foreign and Domestic Ratio

24-03-2023
LKMNH-BIST 100 “%” Change

31-03-2023

07-04-2023

14-04-2023

24-04-2023

02-05-2023

09-05-2023

16-05-2023

24-05-2023

31-05-2023

87.56%
07-06-2023

Local
14-06-2023

OF THE YEAR .
21-06-2023

LKMNH
03-07-2023

10-07-2023

17-07-2023

24-07-2023

BIST 100
31-07-2023

07-08-2023

14-08-2023

Foreign
5.1%
28-08-2023
21-08-2023

2023 YEAR-END SHARE PRICE

05-09-2023

12-09-2023

19-09-2023

26-09-2023

03-10-2023

10-10-2023
LKMNH

17-10-2023

2023
24-10-2023

31-10-2023
REACHED 64.70 TL FROM 34.14 TL, PROVIDING

07-11-2023

Local
89.51% RETURN COMPARED TO THE BEGINNING

14-11-2023

21-11-2023

28-11-2023

05-12-2023

12-12-2023

19-12-2023

26-12-2023

94.9%
Foreign
BIST100

Local

| 77
135.6
189.51

•2023
Report
Annual
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Market value

Million TL
2400 2,329

2200

2000

1800

1600

1400
1,242

1200

one thousand

800

600
474

400
258

200 140 136

89 105

0
2016 2017 2018 2019 2020 2021 2022 2023

million USD
79
80

70 66

60

50

40 37 37
35
30 25
20 23
20

10

0
2016 2017 2018 2019 2020 2021 2022 2023

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INVESTOR RELATIONS
DEPARTMENT (YIB)

The Investor Relations Department was established
in order to respond to shareholders' questions accurately
and in a timely manner. This unit plays an active role
in protecting and facilitating the exercise of shareholder
rights, especially the right to obtain and review information.
Capital Markets Board's Corporate Governance
Communiqué numbered II.17-1
Within the scope of Article 11, our company's Financial
Affairs Manager Ömer EKER has been appointed as
Investor Relations Department Manager and Corporate
Governance Committee member to fulfill the duties
of the Investor Relations Department. At the same
time, Financial Affairs Officer Ali Ertürk was appointed as
Investor Relations Officer.

In accordance with the relevant communiqué, information regarding Investor Relations officials is below.

Name and surname Mission License Document Type License Document Number Mail

Omer Eker Financial Affairs and Capital Market Forward 206113-701799 oeker@lokmanhekim.com.tr

Investor Relations Level and Institutional

Manager Management Rating

License

Ali Erturk - -
Investor Relations aerturk@lokmanhekim.com.tr
Responsible

All questions that are not trade secrets are answered by Financial statements were made available to the public
YÿB, observing the principle of equality, and company on a quarterly basis within the legal period through
management and shareholders are ensured to be in the Public Disclosure Platform.
constant communication. specified in the legislation
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CORPORATE GOVERNANCE PRINCIPLES
COMPLIANCE REPORT
Compliance with Corporate Governance Principles
Declaration
The corporate governance principles included in the
Capital Markets Board's Communiqué on Determination
and Implementation of Corporate Governance Principles
are adopted by our company and these principles
are largely implemented. Our company's work is
carried out within the framework of the responsibility of
these principles.
Structure and Formation of the Board of Directors
The company consists of Chairman of the Board of
Directors Mustafa SARIOÿLU, Vice Chairman Mehmet
ALTUÿ, Member Celil GÖÇER, Member Ömer
GÖKTAÿ, Member Nazÿm BÿLGEN, Member ÿrfan
GÜVENDÿ, Member Temel ÜNLÜ, Independent Member
Mehmet ALDANMAZ and Independent Member Yusuf TÜLEK.
Members of the Board of Directors are elected by the
General Assembly for a maximum of three years in
accordance with the articles of association. Board members
whose term of office has expired may be re-elected. The
affairs and administration of the company are
managed by the board of directors, consisting of at
least 7 or 9 people, the majority of whom are non-executive,
elected by the general assembly. Of the board of
directors to be elected by the general assembly, 5
people if it consists of 7 people and 6 people if it
consists of 9 people must be elected by the general
assembly from among the candidates jointly nominated
by the partners holding at least 51% of Group A shares.
In order for shareholders who hold management control,
members of the board of directors, senior managers and
their spouses and relatives by blood or marriage
up to the second degree to engage in transactions
that may cause a conflict of interest and compete with the
company or its subsidiaries, prior approval must be given by
the general assembly and they must have the say. If the
transactions in question have been carried out,
information regarding the transactions is given at
the general assembly.
80 |
Principles of Activity of the Board of Directors
The board of directors carries out its activities in a
transparent, accountable, fair and responsible manner.
The board of directors meets as often as possible to
effectively fulfill its duties.
The chairman of the board of directors determines the
agenda of the board of directors meetings in consultation
with other board members and the chief executive officer/
general manager. Members take care to attend every
meeting and express their opinions.
Each member of the board of directors has one vote.
The related board member does not vote on related party
transactions in related board meetings.
The provisions of the Turkish Commercial Code, Capital
Markets Law and other relevant legislation are complied
with regarding the ceremony of the Board of Directors
meetings. Board of directors meetings can also be held
electronically when deemed necessary. The Board
of Directors meets with the majority of the total number of
members and takes decisions with the majority of the
members present at the meeting. In case of a tie in votes,
the issue is postponed to the next meeting. If there is a tie
in votes on the same issue at the next meeting, the
motion is deemed rejected.
Unless a general assembly decision regarding important
transactions is required in accordance with
the relevant legislation, the approval of the majority of
independent members is required in order to execute the
board of directors' decision regarding such
transactions.
Created by the Board of Directors
Number, Structure and Independence of Committees
By appointing our independent members to the Audit
Committee, which was previously established within our
Board of Directors, with the decision taken at the meeting
dated 09.04.2012,
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The desired structuring has been created in accordance
with the Corporate Governance Principles Communiqué.
The Early Detection of Risk Committee has been
established, and the Corporate Governance
Committee has been established to also perform the duties
of the Nomination Committee and Remuneration Committee.
Risk Management and Internal Control Mechanism
The board of directors elects the Early Detection of Risk
Committee to monitor and control the risks faced by
the company and takes the necessary measures by
evaluating its work. An internal control system has
been established to control all transactions and
operations of our company in order to ensure that its
activities are effective and efficient, to prepare financial
reports reliably, to carry out in accordance with
legal regulations, to take the necessary precautions,
to establish new systems for the healthy progress of the
operation, and to ensure the necessary coordination. The
internal control system helps the company management to
protect company assets, prevent resource and income
losses, make correct and purposeful decisions, and
prevent and detect fraud and fraud. In our internal
control system, all process-related units, their duties, rules
and what needs to be done have been determined. In global
competition, company management examines and
evaluates the reports produced by the weekly and
monthly internal control system on regularly determined
days and organizes the road map in line with the company
goals.
General Assembly Meetings
Announcement of the general assembly meeting is
made at least three weeks in advance of the date of the
general assembly meeting, in addition to the procedures
stipulated by the legislation, by all means of
communication, including electronic communication, to
reach the largest number of shareholders possible. The
general assembly agenda is also published in any
newspaper with high circulation, and the general
assembly invitation and general assembly information
documents are disclosed to the public through KAP and
our website. Our company's board of directors' activity
report and financial statements are also presented to
our investors at our company headquarters.
Our General Assembly invitation e-mail addresses
We tried to reach as many shareholders as
possible by sending e-mails to our shareholders and
repeating the invitation by calling them twice by phone.
The Ordinary General Assembly convenes within three months
from the end of the company's accounting period and at
least once a year.
The provisions of the Turkish Commercial Code and
the Capital Markets Law apply to the convocation of the
General Assembly for Ordinary and Extraordinary meetings.
At the General Assembly meetings, shareholders may have
themselves represented by other shareholders or by
a proxy appointed from outside, in accordance with
the provisions of the capital markets legislation. A copy of the
power of attorney has been presented to our
shareholders' attention both on our website and in the
annex to the meeting agenda.
Our company's 2022 ordinary general assembly
meeting was held with the presence of a sufficient number
of partners in person and by proxy.
In order for shareholders holding management control,
members of the board of directors, senior managers and their
spouses and relatives by blood and marriage up to
the second degree to engage in transactions that
may cause a conflict of interest with the company or its
subsidiaries and to compete, it must be made open to the
public, including the media. There is no regulation.
We have not received any requests from our shareholders
in this regard.
In our articles of association, stakeholders and
responsible officials and auditors were present at
the general assembly meetings without having
the right to speak, in order to provide the necessary
information and answer questions, but since the person
who asked the question was not a shareholder,
no recorded situation occurred.
In line with the policy approved by the general assembly,
the partners were informed about the amount and
beneficiaries of all donations and aid made during the period
and the policy changes in a separate agenda item at the
general assembly meeting.
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CORPORATE GOVERNANCE PRINCIPLES

COMPLIANCE REPORT
1.1. FACILITATING THE EXERCISE OF SHAREHOLDERS' RIGHTS

1.1.2 - Information and disclosures that may affect the exercise of shareholder rights are made available to
investors on the corporate website of the partnership.

1.2. RIGHT TO RECEIVE INFORMATION AND REVIEW

1.2.1- Company management has avoided taking any action that would make it difficult to conduct a special audit.

1.3. GENERAL ASSEMBLY

1.3.2 - The Company has ensured that the agenda of the General Assembly is clearly expressed and each proposal is
given under a separate heading.

1.3.7 - Persons who have privileged access to partnership information have informed the board of directors about the
transactions carried out on their behalf within the scope of the partnership's field of activity to be added to the agenda
in order to provide information at the general assembly.

1.3.8 - Members of the board of directors, other relevant persons, officials and auditors responsible for the preparation of the
financial statements were present at the general assembly meeting regarding the issues of special importance on the
agenda.

1.3.10 - In the agenda of the general assembly, the amounts of all donations and aid and the beneficiaries are included
in a separate item.

1.3.11 - The General Assembly meeting was held open to the public, including stakeholders and the media, without
the right to speak.

1.4. SUFFRAGE

1.4.1 - There are no restrictions or practices that make it difficult for shareholders to exercise their voting rights.

1.4.2 - The company does not have shares with privileged voting rights.

1.4.3 - The Company has not exercised its voting rights in the General Assembly of any partnership with which it has a
mutual participation relationship, which brings with it a dominance relationship.

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Yes Partially No Exempt Irrelevant Explanation

There is no transaction in this scope

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1.5. MINORITY RIGHTS

1.5.1- The company has paid utmost attention to ensuring that minority rights are exercised.

1.5.2 - Minority rights are also granted to those who own less than one twentieth of the capital, and the scope of
minority rights are regulated and expanded in the articles of association.

1.6. RIGHT TO DIVIDEND

1.6.1 - The profit distribution policy approved by the general assembly is disclosed to the public on the corporate
website of the partnership.

1.6.2 - The profit distribution policy contains minimum information that is clear enough to enable shareholders to predict
the procedures and principles of distribution of profits that the partnership will obtain in future periods.

1.6.3 - The reasons for not distributing profits and the way the undistributed profits will be used are stated in
the relevant agenda item.

1.6.4 - The board of directors has reviewed whether balance is achieved between the interests of the shareholders
and the partnership interest in the profit distribution policy.

1.7. TRANSFER OF SHARES

1.7.1 - There are no restrictions that make it difficult to transfer shares.

2.1. CORPORATE WEBSITE

2.1.1 - The company's corporate website contains all the elements included in the corporate governance principle
numbered 2.1.1.

2.1.2-Share ownership structure (names, privileges, number of shares and ratio of real person shareholders holding
more than 5% of the issued capital) is updated on the corporate website at least every 6 months.

2.1.4 - The information on the company's corporate website has been prepared in foreign languages selected
according to need, with exactly the same content as Turkish.

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Yes Partially No Exempt Irrelevant Explanation

Other Group A shareholders

have pre-emption rights in the
transfer of Group A shares,
which are privileged and not traded
on the stock exchange.
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2.2. ACTIVITY REPORT

2.2.1 - The board of directors ensures that the annual activity report fully and accurately reflects
the company's activities.

2.2.2 - The annual activity report includes all the elements specified in principle 2.2.2.

3.1. COMPANY POLICY REGARDING STAKEHOLDERS

3.1.1- The rights of stakeholders are protected within the framework of relevant regulations,
contracts and good faith rules.

3.1.3 - Policies and procedures regarding the rights of stakeholders are published on the company's
corporate website.

3.1.4 - Necessary mechanisms have been established for stakeholders to report transactions
that are contrary to legislation and unethical.

3.1.5 - The company handles conflicts of interest among stakeholders in a balanced manner.

3.2. SUPPORTING THE PARTICIPATION OF STAKEHOLDERS IN COMPANY MANAGEMENT

3.2.1 - Employee participation in management is regulated by the articles of association or

internal regulations.

3.2.2 - Methods such as surveys/consultation have been applied to obtain the opinions of
stakeholders in important decisions that have consequences for stakeholders.

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Yes Partially No Exempt Irrelevant Explanation

This information is not published

within the scope of the law.

In order for employees to

participate in
management, meetings
are held with all department
and unit heads that make up the
organizational structure,
and activities such as situation
assessment, strategy development,
planning, quality, etc. are held.
Issues related to the activity are discussed.
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3.3. HUMAN RESOURCES POLICY OF THE COMPANY

3.4.1 - The company measured customer satisfaction and operated with the understanding of
unconditional customer satisfaction.

3.3.2 - Criteria for personnel recruitment are determined in writing.

3.3.3 - The company has a Human Resources Development Policy and organizes training for employees
within this scope.

3.3.4 - Meetings were held to inform employees about issues such as the company's financial situation,
remuneration, career planning, education and health.

3.3.5 - Decisions that may affect employees are notified to them and their representatives.
The opinions of the relevant unions were also taken on these issues.

3.3.6 - Job descriptions and performance criteria have been prepared in detail for all employees,
announced to them and used in remuneration decisions.

3.3.7 - Measures such as procedures, training, awareness raising, targets, monitoring and complaint
mechanisms have been taken to prevent discrimination among employees and to protect employees against
physical, mental and emotional mistreatment within the company.

3.3.8 - The company supports the freedom of association and the effective recognition of the right to collective
bargaining.

3.3.9 - A safe working environment is provided for employees.

3.1. COMPANY POLICY REGARDING STAKEHOLDERS

3.4.1 - The company measured customer satisfaction and operated with the understanding of
unconditional customer satisfaction.

3.4.2 - If there is a delay in processing the customer's requests for the goods and services purchased,
this situation is notified to the customers.

3.4.3 - The company adheres to quality standards regarding goods and services.

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Yes Partially No Exempt Irrelevant Explanation

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3.4.4 - The company has controls to protect the confidentiality of sensitive trade secret information of customers and
suppliers.

3.5. CODE OF ETHICS AND SOCIAL RESPONSIBILITY

3.5.1 - The board of directors determined the Code of Ethical Conduct and published it on the company's corporate
website.

3.5.2 - The partnership is sensitive to social responsibility. It has taken measures to prevent corruption and bribery.

4.1. FUNCTION OF THE BOARD OF DIRECTORS

4.1.1 - The board of directors ensures that strategies and risks do not threaten the long-term interests of the company and
that effective risk management is implemented.

4.1.2 - The meeting agenda and minutes reveal that the board of directors discusses and approves the company's
strategic goals, determines the resources needed and monitors the performance of the management.

4.2. ACTIVITY PRINCIPLES OF THE BOARD OF DIRECTORS

4.2.1 - The board of directors has documented its activities and submitted them to the information of the shareholders.

4.2.2 - The duties and powers of the board members are explained in the annual activity report.

4.2.3 - The board of directors has established an internal control system appropriate to the scale of the company
and the complexity of its activities.

4.2.4 - Information on the functioning and effectiveness of the internal control system is given in the annual activity
report.

4.2.5 - The duties of the chairman of the board of directors and the chief executive (general manager) are separated and
defined.

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Yes Partially No Exempt Irrelevant Explanation

Although the job descriptions of

the General Manager and the

Chairman of the Board of Directors have
been determined separately, the current
Chairman of the Board of Directors
has not been separated as there is
Annual
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•2023

no legal obstacle for him to carry

out the duties of the Executive Board.
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4.2.7-The board of directors ensures that the investor relations department and corporate
governance committee work effectively and works in close cooperation with the investor relations
department and corporate governance committee in resolving disputes between the company and
shareholders and in communicating with shareholders.

4.2.8 - The Company has taken out director liability insurance for an amount exceeding 25% of the capital,
regarding the damage that may be caused to the company by the members of the board of directors due to
their faults during the performance of their duties.

4.3. STRUCTURE OF THE BOARD OF DIRECTORS

4.3.9 - A policy has been established to achieve this goal by setting a minimum target of 25% for the
female member rate in the company's board of directors. The structure of the board of directors is
reviewed annually and the candidate selection process is carried out in accordance with this policy.

4.3.10 - At least one of the members of the audit committee has 5 years of experience in auditing/
accounting and finance.

4.4. FORM OF BOARD MEETINGS

4.4.1 - All board members physically participated in most board meetings.

4.4.2 - The board of directors has defined a minimum period for sending information and documents
regarding the issues on the agenda to all members before the meeting.

4.4.3 - The opinions of the member who could not attend the meeting but submitted his opinions in writing to the
board of directors were presented to the information of other members.

4.4.4 - Each member of the board of directors has one vote.

4.4.5 - The manner in which the board of directors meetings will be held is written down in internal
company regulations.

4.4.6 - The board of directors meeting minutes show that all items on the agenda were discussed
and the decision minutes are prepared to include dissenting opinions.

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Yes Partially No Exempt Irrelevant Explanation

The matter is reviewed

regularly. Director liability
insurance is not
provided.

A specific policy on the

subject has not been
established and there is no
application to the
nomination committee. Although
our company pays utmost
attention to the issue, it
will be evaluated if appropriate conditions exis

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4.4.7 - Board members are restricted from taking on other duties outside the company.
The duties of the board members outside the company were presented to the shareholders at the general
assembly meeting.

4.5. COMMITTEES ESTABLISHED WITHIN THE BOARD OF DIRECTORS

4.5.5 - Each board member serves on only one committee.

4.5.6 - The committees invited the people they deemed necessary to the meetings and received their opinions.

4.5.7 - Information about the independence of the person/organization from which the Committee receives consultancy
services is included in the annual activity report.

4.5.8 - A report on the results of the committee meetings was prepared and presented to the board
members.

4.6. FINANCIAL RIGHTS PROVIDED TO MEMBERS OF THE BOARD OF DIRECTORS AND

MANAGERS WITH ADMINISTRATIVE RESPONSIBILITIES

4.6.1 - The board of directors carried out a performance evaluation to evaluate whether it fulfills its
responsibilities effectively.

4.6.4 - The Company has not extended loans to any of the members of the board of directors or managers with
administrative responsibilities, extended the duration of the lent debt, improved the conditions, provided
loans under a personal loan title through third parties, or provided guarantees such as surety in their favor.

4.6.5 - Remunerations paid to board members and managers with administrative responsibilities are disclosed
on an individual basis in the annual activity report.

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Yes Partially No Exempt Irrelevant Explanation

There is no limitation in this

regard.

Committee members mostly

consist of independent
members. The same independent
board member can also serve in
other committees.

It is not specified because the committee

does not receive external
consultancy services.

Information regarding the

payments made is stated in
group headings.
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CONCERNING THE ANNUAL ACTIVITY REPORT OF THE BOARD OF DIRECTORS

INDEPENDENT AUDITOR'S REPORT

LOKMAN HEKÿM ENGÜRÜSAÿ HEALTH, TOURISM, EDUCATION SERVICES AND CONSTRUCTION COMMITMENT
INCORPORATED COMPANY

To the General Assembly

Opinion

Since we have audited the consolidated financial statements of LOKMAN HEKÿM ENGÜRÜSAÿ SAÿLIK,
TOURISM, EÿÿTÿM HÿZMETLERÿ VE ÿNÿAAT TAAHÜT ANONÿM ÿÿRKETÿ and (“Company”) for the accounting
period of 01.01.2023-31.12.2023, we have also audited the annual activity report for this accounting period.

In our opinion, the full set of consolidated financial information included in the annual activity report of the Board of Directors and the
analysis of the Board of Directors about the Company's situation are consistent, in all material respects, with the audited financial
statements and the information we obtained during the independent audit and reflect the truth.

Basis for Opinion

Our independent audit is in accordance with the independent auditing standards published by the Capital Markets Board ("CMB") and the
Independent Auditing Standards ("ISAs"), which are part of the Turkish Auditing Standards published by the Public Oversight, Accounting
and Auditing Standards Authority ("KGK"). was carried out appropriately. Our responsibilities under these Standards are further described
in the Independent Auditor's Responsibilities for the Independent Audit of the Annual Report section of our report. We declare that we are
independent from the Company in accordance with the Ethical Rules for Independent Auditors (“Including Independence Standards”)
published by the POA (“Ethical Rules”) and the ethical provisions contained in the legislation regarding independent auditing. Other ethics-
related responsibilities within the scope of the Code of Ethics and legislation have also been fulfilled by us. We believe that the independent
audit evidence we obtained during the independent audit provides a sufficient and appropriate basis for forming our opinion.

Our Auditor's Opinion on the Full Set Financial Statements

About the Company's full set financial statements for the accounting period 01.01.2022 - 31.12.2022 01 March 2023
We have expressed a positive opinion in our auditor's report dated 11.02.2019.

Bahçelievler Mahallesi 35.Cadde T: 312-2316111 Maltepe VD TS No: 358710 www.karardenetim.com Page

No;24/8 Çankaya/ANKARA F: 312-2316116 501 077 4136 M No: 3453132421346258 info@karardenetim.com 1/2

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Responsibility of the Board of Directors Regarding the Annual Activity Report

The company management is responsible for the following regarding the annual activity report according to Articles 514 and 516 of
the Turkish Commercial Code:

a) Prepares the annual activity report within the first three months following the balance sheet date and submits it to the general assembly.

b) Annual activity report; It prepares the Company in a way that reflects the flow of its activities for that year and its financial
situation in every aspect in an accurate, complete, straightforward, realistic and honest manner. In this report, the financial
situation is evaluated according to the financial statements. The report also states that the Company
developments and possible risks are also clearly indicated. The evaluation of the board of directors regarding these issues
is also included in the report.

c) The activity report also includes the following matters:

• Events of particular importance that occurred in the Company after the end of the operating year,

• The company's research and development activities,

• Financial benefits such as wages, premiums, bonuses paid to board members and senior managers, allowances, travel,
accommodation and representation expenses, in-kind and cash opportunities, insurance and similar guarantees.

While preparing the activity report, the board of directors also takes into account the secondary legislation regulations made by the Ministry
of Commerce and relevant institutions.

Responsibility of the Independent Auditor Regarding the Independent Audit of the Annual Activity Report

Our aim is to express an opinion on whether the financial information included in the annual activity report and the analysis made by
the Board of Directors, within the framework of the provisions of the Turkish Commercial Code, are consistent with the audited
financial statements of the Company and the information we obtained during the independent audit and whether they reflect the truth,
and to prepare a report containing our opinion.

Our independent audit was conducted in accordance with ISAs. These standards require compliance with ethical provisions and the
independent audit to be planned and carried out to obtain reasonable assurance as to whether the financial information included in
the annual report and the analysis made by the Board of Directors are consistent with the full set of financial statements and the
information obtained during the audit and whether they reflect the truth.

Ankara, 06.03.2024

DECISION BAÿIMSIZ DENETÿM VE DANIÿMANLIK A.ÿ.

Member Firm of Abacus WorldWide

Ali Osman EFLATUN

Responsible Auditor
Annual
Report

T: 312-2316111 TS No: 358710 www.karardenetim.com

•2023

Bahçelievler Mahallesi 35.Cadde Maltepe VD Page

No;24/8 Çankaya/ANKARA F: 312-2316116 501 077 4136 M No: 3453132421346258 info@karardenetim.com 2 of 2

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Footnote
No. 31.12.2023 31.12.2022
ASSETS
Current Assets
Cash and cash equivalents [4] 37,615,066 73,926,670
Commercial debts [6] 307,917,819 236,676,475

• Trade receivables from related parties • 25,413,248 25,376,627

Trade receivables from non-related parties 282,504,571 211,299,848

Other receivables [7] 93,845,751 51,497,548

• Other receivables from related parties • 60,223,712 47,532,498

Other receivables from unrelated parties 33,622,039 3,965,050

Stocks [9] 100,896,668 95,161,812

Prepaid expenses • Prepaid [10] 32,887,361 54,262,954

expenses to related parties • Prepaid expenses 15,360,197 10,524,310

to unrelated parties 17,527,164 43,738,644

Assets relevant to current tax [12] 9,318,612 10,731,453

Other current assets [13] 10,370,907 13,243,151

Total Current Assets 592,852,184 535,500,063

Fixed Assets

Other receivables [7] 308,021 614,870

living beings [14] 50,695,000 37,212,316

Investment properties [15] 21,139,469 21,139,469

Tangible fixed assets [16] 930,877,703 857,647,648
Usage Rights [17] 346,377,769 434,877,622

intangible assets [18] 210,874,521 165,496,551

Prepaid expenses [10] 8,167,971 2,355,095

Deferred tax asset [12] 125,565,954 89,327,754

Total Fixed Assets 1,694,006,408 1,608,671,325

TOTAL ASSETS 2,286,858,592 2,144,171,388

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Footnote
No. 31.12.2023 31.12.2022
RESOURCES
Short-Term Liabilities

Short term borrowings [5] 231,448,632 157,499,002

Short-term parts of long-term borrowings [5] 88,980,404 119,287,431

Other financial obligations [5] 23,363,596 46,470,569

Trade payables [6] 160,079,725 214,533,234

• Trade payables to related parties 1,074,348 5,948,688

• Trade payables to non-related parties 159,005,377 208,584,546

Liabilities within the scope of employee benefits [8] 56,298,928 50,704,993

Other debts [7] 653,628 1,071,417

Deferred revenues [10] 41,114,889 25,027,349

Period profit tax liability [12] 16,765,607 9,469,696

Short-term provisions • [11] 12,407,407 16,972,837

Short-term provisions for employee benefits • Other short-term provisions 8,809,414 12,287,298
3,597,993 4,685,539

Other short-term liabilities [13] 16,949,669 20,982,151

Total Short-Term Liabilities 648,062,485 662,018,679

Long Term Liabilities

Long term borrowings [5] 118,801,685 161,942,079

Other financial obligations [5] 65,025,012 145,640,487

Other debts [7]

ÿ

2,500,746

Deferred revenues [10] 15,251,178 6,747,379

Long term provisions [11] 112,083,862 79,655,607

Total Long-Term Liabilities 311,161,737 396,486,298

TOTAL LIABILITIES 959.224.222 1,058,504,977

Equity
Shareholders' equity of the parent 1,243,881,109 989,974,408

company Paid-in capital [20] 36,000,000 36,000,000

Capital adjustment differences [20] 274,804,653 274,804,653

Accumulated other comprehensive income (expense) that will not be [21] -66,725,152 -31,245,669

reclassified to profit or loss

Accumulated other comprehensive income (expense) to be 14,808,316 2,077,527

reclassified to profit or loss

• Foreign currency conversion differences 14,808,316 2,077,527

Restricted reserves allocated from profit [22] 44,801,940 42,619,806

Retained years' profits or losses 618,019,444 348,777,702

Net profit or loss for the period 322,171,908 316,940,389

Non-controlling interests 83,753,261 95,692,003

TOTAL EQUITY 1,327,634,370 1,085,666,411

TOTAL LIABILITIES AND EQUITY 2,286,858,592 2,144,171,388

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LHÜ ANKARA LHÜ SÖÿÜTÖZÜ AKAY BUNDLE MEATLIC ISTANBUL LIFE VAN
HOSPITAL DENTAL HOSPITAL HOSPITAL MEDICAL CENTER HOSPITAL HOSPITAL HOSPITAL HOSPITAL

Andiçen Mah. Polatlÿ 2 Söÿütözü Mah. Buklum Street Vatan Cad. No: 81 Day Dr. Tevfik Yeniÿehir Mah. Serhat Mah. Cumhuriyet Mah.
Cad. ÿdil Sokak No: 2179 Ave. No: 4 No: 4 Kavaklÿdere Demetevler Saÿlam Cad. No: 119 Kardelen St. Milli Egemenlik Cad. Zübeyde Hanÿm
44 Sincan Ankara/ Ankara/Türkiye Ankara Turkey Yenimahalle Etlik Keçiören No: 2 Pendik No: 56 Van/Türkiye Cad. No: 87
Türkiye Ankara/Türkiye Ankara/Türkiye Istanbul Turkey Van/Türkiye