Enka Insaat ve Sanayi : Financial Report March 31, 2023

ENKA İNŞAAT VE SANAYİ

ANONİM ŞİRKETİ

AND ITS SUBSIDIARIES

Condensed Consolidated Interim Financial

Statements as at and for the Three-Months

Period Ended

31 March 2023

TABLE OF CONTENTS

PAGE

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION	1-2
CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS	3
CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME	4
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY	5
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS	6
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS	7-27
NOTE 1	ORGANIZATIONS AND OPERATIONS OF THE GROUP	7
NOTE 2	BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED
	FINANCIAL STATEMENTS	8-13
NOTE 3	CHANGES IN OPERATIONAL SEASON	13
NOTE 4	SEGMENTAL INFORMATION	14-16
NOTE 5	CONSTRUCTION CONTRACTS	17
NOTE 6	INVESTMENT PROPERTY	17
NOTE 7	PROPERTY, PLANT AND EQUIPMENT	17
NOTE 8	COMMITMENTS	18
NOTE 9	RELATED PARTY BALANCES AND TRANSACTIONS	19
NOTE 10	SHARE CAPITAL AND RESERVES	19
NOTE 11	INVESTMENT INCOME / EXPENSES	20
NOTE 12	FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES	21-24
NOTE 13	FINANCIAL INSTRUMENTS - FAIR VALUE EXPLANATIONS AND
	ACCOUNTING POLICY FOR HEDGING FINANCIAL RISK	25-26
NOTE 14	SUBSEQUENT EVENTS	26

ENKA İNŞAAT VE SANAYİ A.Ş. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2023

(Amounts are expressed in thousands of U.S. Dollars ("USD") unless otherwise stated.)

			31 March		31 December
ASSETS	Note		2023		2022
Current Assets		3,513,231	3,536,158
Cash and cash equivalents		1,059,241	1,026,291
Financial investments	13	1,470,711	1,478,120
Trade receivables		278,753	312,974
Other receivables
Other receivables from related parties		-	-
Other receivables from third parties		7,399	7,146
Inventories		336,705	372,327
Prepaid expenses		264,011	232,137
Costs and estimated earnings in excess of billings
on uncompleted contracts	5	27,204	28,255
Other current assets			54,193		62,375
		3,498,217	3,519,625
Assets held for sale		15,014	16,533
Non-Current Assets		5,012,432	5,044,379
Financial investments	13	2,176,320	2,092,693
Investment properties	6	1,929,060	2,028,224
Property, plant and equipment		804,687	819,799
Right of use assets		59,066	59,524
Intangible assets
Other intangible assets		15,933	16,487
Deferred tax assets		22,455	21,563
Prepaid expenses		4,813	6,021
Other non-current assets		98	68
TOTAL ASSETS		8,525,663	8,580,537

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

1

ENKA İNŞAAT VE SANAYİ A.Ş. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2023

(Amounts are expressed in thousands of U.S. Dollars ("USD") unless otherwise stated.)

			31 March		31 December
LIABILITIES	Note		2023		2022
Current Liabilities		1,324,078	1,481,853
Short-term borrowings		48,664	56,347
Current portion of long-term borrowings		4,525	4,908
Trade payables		335,255	451,180
Payables to employees		26,688	17,427
Other payables
Payables to related parties		6	7
Payables to third parties		18,180	18,546
Billings in excess of costs and estimated earnings
on uncompleted contracts	5	397,068	423,591
Deferred income		347,717	358,784
Taxation on income		58,052	59,001
Provisions
Provisions for employee benefits		9,343	9,621
Other provisions		41,848	42,676
Other current liabilities		36,732	39,765

Non-Current Liabilities	516,351	552,246
Long-term borrowings	118,229	127,189
Other payables	22,742	24,674
Deferred income	2,144	4,528
Provisions for employee benefits	21,214	19,218
Deferred tax liabilities	352,022	376,637

EQUITY		6,685,234	6,546,438
Equity Attributable to Equity Holders of the Parent		6,608,258	6,471,053
Share capital	10	2,751,959	2,751,959
Treasury Shares	10	(126,701)	(127,194)
Revaluation surplus		195,438	195,343
Currency translation difference		(1,421,008)	(1,381,980)
Other reserves		(7,561)	(5,933)
Legal reserves and accumulated profit		5,216,131	5,038,858
Non-Controlling Interests		76,976	75,385
TOTAL LIABILITIES AND EQUITY		8,525,663	8,580,537

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

2

ENKA İNŞAAT VE SANAYİ A.Ş. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 MARCH 2023

(Amounts are expressed in thousands of U.S. Dollars ("USD") unless otherwise stated.)

			1 January-		1 January-
			31 March		31 March
	Note	2023	2022
CONTINUING OPERATIONS
Revenue	4	927,570	822,848
Cost of revenues (-)	4		(746,350)		(628,454)
GROS S PROFIT		181,220	194,394
Administrative expenses (-)	4	(68,753)	(22,094)
M arketing, selling and distribution expenses (-)	4	(6,314)	(6,807)
Other operating income	4	21,930	6,431
Other operating expenses (-)	4		(9,289)		(10,259)
PROFIT FROM OPERATIONS		118,794	161,665
Income from investing activities	4,11	233,530	69,455
Expenses from investing activities (-)	4,11	(103,788)	(264,304)
OPERATING PROFIT
BEFORE FINANCE EXPENS ES		248,536	(33,184)
Financial income	4	10,729	34,785
Financial expenses (-)	4		(25,268)		(9,343)

PROFIT BEFORE TAX

FROM CONTINUING OPERATIONS

Current tax expense (-)

Deferred tax income / (expense)

NET PROFIT (LOS S ) FOR THE PERIOD

233,997(7,742)

(29,055)(41,637)

6,34913,495

211,291(35,884)

Attributable to:
Non-controlling interest	9,008	(619)
Equity holders of the parent	202,283		(35,265)
	211,291	(35,884)
Earning / (Loss) per share from continuing operations
- ordinary share certificate (full USD)	0.03	(0.01)
Weighted average number of shares
(1 dollar weighted average shares)	5,862,743,582	5,862,743,582

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

3