New Risk • Jun 09
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₺2.7b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₺2.7b free cash flow). Share price has been highly volatile over the past 3 months (15% average weekly change). Negative equity (-₺991m). Earnings have declined by 66% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₺3.89b market cap, or US$84.3m). New Risk • Apr 16
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Turkish stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₺2.7b free cash flow). Share price has been highly volatile over the past 3 months (10% average weekly change). Negative equity (-₺991m). Earnings have declined by 66% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₺3.67b market cap, or US$82.0m). New Risk • Mar 22
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₺2.7b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₺2.7b free cash flow). Negative equity (-₺991m). Earnings have declined by 66% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.7% average weekly change). Market cap is less than US$100m (₺1.96b market cap, or US$44.3m). New Risk • Nov 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₺4.00b (US$94.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 61% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (₺4.00b market cap, or US$94.2m). New Risk • Nov 13
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₺3.5b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₺3.5b free cash flow). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 61% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (9.9% average weekly change). Reported Earnings • Nov 13
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: ₺2.15b (up 7.7% from 3Q 2024). Net loss: ₺438.5m (loss widened 99% from 3Q 2024). New Risk • Sep 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₺4.12b (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 56% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (9.1% average weekly change). Market cap is less than US$100m (₺4.12b market cap, or US$99.7m). New Risk • Jun 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Turkish stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.4x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 45% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.9% average weekly change). Announcement • May 22
Borlease Otomotiv A.S., Annual General Meeting, Jun 16, 2025 Borlease Otomotiv A.S., Annual General Meeting, Jun 16, 2025. Location: inkilap mahallesi, kucuksu caddesi no:58, oryapark 34768 umraniye / istanbul, istanbul Turkey Reported Earnings • Mar 12
Full year 2024 earnings released: ₺9.33 loss per share (vs ₺3.02 profit in FY 2023) Full year 2024 results: ₺9.33 loss per share (down from ₺3.02 profit in FY 2023). Revenue: ₺6.84b (up 115% from FY 2023). Net loss: ₺1.57b (down 410% from profit in FY 2023). New Risk • Nov 10
New major risk - Revenue and earnings growth Earnings have declined by 1.2% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.1x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 1.2% per year over the past 5 years. Reported Earnings • Nov 10
Third quarter 2024 earnings released: ₺1.31 loss per share (vs ₺0.83 profit in 3Q 2023) Third quarter 2024 results: ₺1.31 loss per share (down from ₺0.83 profit in 3Q 2023). Revenue: ₺1.99b (up 190% from 3Q 2023). Net loss: ₺220.6m (down 288% from profit in 3Q 2023). Reported Earnings • Sep 27
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: ₺1.26b (up 41% from 2Q 2023). Net loss: ₺124.9m (loss narrowed 42% from 2Q 2023). Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₺34.72, the stock trades at a trailing P/E ratio of 21.5x. Average trailing P/E is 22x in the Transportation industry in Turkey. New Risk • Sep 13
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 8.6% Last year net profit margin: 18% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). High level of non-cash earnings (66% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (8.6% net profit margin). Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₺40.64, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 20x in the Transportation industry in Turkey. New Risk • May 26
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). High level of non-cash earnings (98% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Short dividend paying track record (less than a year of continuous dividend payments). Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₺37.12, the stock trades at a trailing P/E ratio of 15.4x. Average trailing P/E is 13x in the Transportation industry in Turkey. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₺29.82, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 10x in the Transportation industry in Turkey. 
