PASHA_BANK ANNUAL REPORT 2021

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles With respect to the principle numbered 1.5.2.; Minority rights have not been recognized by the Articles of Association for those who hold less than one‑twentieth of the capital. With respect to the principle numbered 2.1.2; information about the real persons who own more than 5% of the issued capital is not published on the corporate web page. With respect to the principle numbered 3.3.1.; there is no official succession plan for the key posts. However, activities to develop an official succession plan for the key posts has continued throughout 2021 within the scope of an action plan regarding enhancement of the corporate governance processes before the controlling shareholder and the approach for succession planning of the Board and Committees’ members and chairpersons was approved by the Group ExCo. With respect to the principle numbered 3.3.8.; there is no union organization among the Bank’s employees and the Bank does not have an action plan for such arrangement in this regards. With respect to the principle numbered 4.2.8.; The limit of the directors’ and officers’ liability insurance does not exceed 25% of the paid‑up capital of the Bank, and no explanation has been made in this regard at the PDP. With respect to the principle numbered 4.3.9.; There is not yet a target rate and target time determined for the ratio of female members in the Board of Directors. As of reporting date there are two female members in the Bank’s Board of Directors. With respect to the principle numbered 4.5.3.; the roles of chair of the committees other than the Human Resources Committee and Nomination & Remuneration Committee have been conducted by independent non‑executive directors. With respect to the principle numbered 4.5.5.; Assignment to the Board Committees is carried out in line with the relevant legislation, taking into consideration the accumulated knowledge and experience of the members of the Board of Directors and some members of the Board of Directors are assigned to more than one committee. However, members assigned to more than one committee ensure communication between committees involved in related issues and increase cooperation opportunities. With respect to the principle numbered 4.6.5.; The remuneration and other benefits provided to the Board Members and senior executive directors are disclosed to the public through the annual report. However, the payments made are disclosed to the public on a collective basis in parallel to market practice, rather than an individual basis. Explanations about the activities of the Committee in charge of audit and the outcome of its meetings are included under the section “Information On Management and Corporate Governance Practices” of the Annual Report and functioning and effectiveness of the internal systems organization are included under the heading “Audit Committee’s Assessments on the Operation of Internal Systems” of the Annual Report. Corporate Governance Compliance Report and Information Form