Anadolu Efes Biracilik ve Malt Sanayii Anonim Sirketi : 4. Quarter 2023 Financial Statements

CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH

ANADOLU EFES BİRACILIK VE

MALT SANAYİİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023

TOGETHER WITH INDEPENDENT AUDITOR'S REPORT

CONVENIENCE TRANSLATION INTO ENGLISH OF

INDEPENDENT AUDITOR'S REPORT

ORIGINALLY ISSUED IN TURKISH

INDEPENDENT AUDITOR'S REPORT

To the General Assembly of Anadolu Efes Biracılık ve Malt Sanayii A.Ş.

1. Audit of the consolidated financial statements

1. Our opinion

We have audited the accompanying consolidated financial statements of Anadolu Efes Biracılık ve Malt Sanayii A.Ş. (the "Company") and its subsidiaries (collectively referred to as the "Group") which comprise the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss, the consolidated statement of other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements comprising a summary of significant accounting policies.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2023, and its financial performance and its cash flows for the year then ended in accordance with Turkish Financial Reporting Standards ("TFRS").

2. Basis for opinion

Our audit was conducted in accordance with the Standards on Independent Auditing (the "SIA") that are part of Turkish Standards on Auditing adopted within the framework of the regulations of the Capital Markets Board and issued by the Public Oversight Accounting and Auditing Standards Authority (the "POA"). Our responsibilities under these standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We hereby declare that we are independent of the Group in accordance with the Ethical Rules for Independent Auditors (including Independence Standards) (the "Ethical Rules") the ethical requirements regarding independent audit in regulations issued by the POA; the regulations of the Capital Markets Board; and other relevant legislation are relevant to our audit of the financial statements. We have also fulfilled our other ethical responsibilities in accordance with the Ethical Rules and regulations. We believe that the audit evidence we have obtained during the independent audit provides a sufficient and appropriate basis for our opinion.

PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

Kılıçali Paşa Mah. Meclis-i Mebusan Cad. No:8 İç Kapı No:301 Beyoğlu/İstanbul

T: [phone], F: [phone], www.pwc.com.tr

Mersis Numaramız: 0-1460-0224-0500015

3. Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. Key audit matters were addressed in the context of our independent audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matters	How the key audit matter was addressed in
	the audit
Impairment Testing of Goodwill and
Intangible Assets
The carrying value of bottling rights, license	We performed the following auditing procedures in
agreements, brands and goodwill which are	relation to the impairment tests of indefinite lived
accounted for under intangible assets amounted to	intangible assets and goodwill:
TRY70,491,315 thousand, TRY17,900,020,
TRY2,691,273 and TRY12,580,245 thousand,	• Evaluating the appropriateness of the Cash
respectively, in the consolidated financial statements	Generating Units ("CGUs") determined by
as of 31 December 2023. In accordance with TFRS,	management,
these indefinite-life intangible assets should be
tested for impairment annually.	• Evaluating management forecasts and future
	plans based on macroeconomic information for
Bottling rights, license agreements, brands and	each relevant CGU,
goodwill are material to the consolidated financial
statements. In addition, significant judgements and	• Comparing forecasted cash flows for each CGU
estimates are used in the impairment tests	with its historical financial performance,
performed by management. These are, for goodwill
impairment tests; earnings before interest, tax,	• Through involvement of our valuation specialists,
depreciation and amortization ("EBITDA") growth	assessing the reasonableness of key assumptions,
forecasts, long term growth rates and discount rates	including long term growth rates, discount rates
and in addition to these, royalty rates used in the	and benchmarking these against rates used in the
relief from royalty method for the brand impairment	industry,
tests. The outcome of such estimates is very sensitive
to changes in market conditions. Therefore, these	• Testing of the setup of the discounted cash flow
impairment tests are key matters for our audit.	models and their mathematical accuracy,
Please refer to notes 2 and 16 of the consolidated	• Assessing management's sensitivity analysis for
financial statements for the relevant disclosures,	key assumptions,
including the accounting policy and sensitivity
analysis.	• Testing of the disclosures in the consolidated
	financial statements in relation to indefinite-life
	intangible assets and evaluating the adequacy of
	these disclosures for TFRS' requirements.

Key Audit Matters	How the key audit matter was addressed in
	the audit
Application of TAS 29 - Financial Reporting
in Hyperinflationary Economies
The Group has applied TAS 29 "Financial reporting	We performed the following auditing procedures in
in hyperinflationary economies" ("TAS 29") in its	relation to the application of TAS 29:
consolidated financial statements as at and for the
year ending 31 December 2023.	• Understanding and evaluating the process and
	controls related to the implementation of TAS 29
TAS 29 requires financial statements to be restated	designed and implemented by management,
at the current purchasing power at the end of the
reporting period. Therefore, transactions in 2023	• Verifying whether the determination of monetary
and non-monetary balances at the end of the period	and non-monetary items made by the
were restated to reflect the changes in the price	management is in compliance with TAS 29,
index as of the balance sheet date,
31 December 2023. The application of TAS 29 has a	• Obtaining detailed lists of non-monetary items
pervasive and material impact on the consolidated	and testing the original entry dates and amounts
financial statements. Considering the risk of	on a sample basis,
inaccurate or incomplete data used in the
application of TAS 29 and the additional associated	• Evaluating the calculation methods used by
audit effort, the application of TAS 29 has been	management and verifying whether they are
identified as a key audit matter for our audit.	consistently used consistently in all periods,
Disclosures regarding the application of TAS 29 are	• Verifying the general price index rates used in
provided in Note 2.	calculations with the coefficients obtained from
	the Consumer Price Index in Turkey published by
	the Turkish Statistical Institute,
	• Testing the mathematical accuracy of non-
	monetary items, income statement, and cash flow
	statement adjusted for inflation effects,
	• Evaluating the adequacy of disclosures related to
	the application of TAS 29 in the notes to the
	consolidated financial statements in accordance
	with TFRS,

4. Responsibilities of management and those charged with governance for the consolidated financial statements

The Group management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

5. Auditor's responsibilities for the audit of the consolidated financial statements

Responsibilities of independent auditors in an independent audit are as follows:

Our aim is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an independent auditor's report that includes our opinion. Reasonable assurance expressed as a result of an independent audit conducted in accordance with SIA is a high level of assurance but does not guarantee that a material misstatement will always be detected. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an independent audit conducted in accordance with SIA, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Assess the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our independent auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence. We also communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

1. Other responsibilities arising from regulatory requirements

1. No matter has come to our attention that is significant according to subparagraph 4 of Article 402 of
   Turkish Commercial Code ("TCC") No. 6102 and that causes us to believe that the Anadolu Efes
   Biracılık ve Malt Sanayii A.Ş.'s bookkeeping activities concerning the period from 1 January to 31
   December 2023 period are not in compliance with the TCC and provisions of the Company's articles of association related to financial reporting.
2. In accordance with subparagraph 4 of Article 402 of the TCC, the Board of Directors submitted the necessary explanations to us and provided the documents required within the context of our audit.
3. In accordance with subparagraph 4 of Article 398 of the TCC, the auditor's report on the early risk identification system and committee was submitted to the Company's Board of Directors on
   21 March 2024.

PwC Bağımsız Denetim ve

Serbest Muhasebeci Mali Müşavirlik A.Ş.

Salim Alyanak, SMMM

Independent Auditor

Istanbul, 21 March 2024

Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi

CONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31, 2023
TABLE OF CONTENTS
		Page
Consolidated Statement of Financial Position	1-2
Consolidated Statement of Profit or Loss	3
Consolidated Statement of Other Comprehensive Income	4
Consolidated Statement of Changes in Equity	5
Consolidated Statement of Cash Flows	6
Notes to the Consolidated Financial Statements	7-74
Note 1	Group's Organization and Nature of Activities	7-9
Note 2	Basis of Presentation of Consolidated Financial Statements	9-28
Note 3	Business Combinations	29-30
Note 4	Information About Material Non-Controlling Interests in Subsidiaries and
	Investments Accounted for Using Equity Method	31-32
Note 5	Segment Reporting	33-34
Note 6	Cash and Cash Equivalents	35
Note 7	Financial Investments	35
Note 8	Short and Long Term Borrowings	35-38
Note 9	Derivative Instruments	38-42
Note 10 Trade Receivables and Payables	43
Note 11	Other Receivables and Payables	43-44
Note 12	Inventories	44
Note 13	Prepaid Expenses and Deferred Income	45
Note 14	Right-of-Use Assets	46-47
Note 15	Property, Plant and Equipment	48-49
Note 16	Intangible Assets	50-52
Note 17	Commitments and Contingencies	52-54
Note 18	Employee Benefits Obligations	54
Note 19 Current and Non-Current Provisions	55-56
Note 20	Other Assets and Liabilities	56-57
Note 21	Equity, Reserves and Other Equity Items	57-58
Note 22	Revenue and Cost of Sales	59
Note 23	Operating Expenses……………………………………………………............... ........................................ 59
Note 24 Expenses by Nature	60
Note 25	Other Income / Expenses from Operating Activities	60
Note 26	Investment Activity Income / Expense	61
Note 27	Finance Income / Expense	61
Note 28	Income Tax (Including Deferred Tax)	62-64
Note 29 Earnings per Share	65
Note 30	Related Party Balance and Transactions	65-66
Note 31	Financial Instruments and Financial Risk Management	67-71
Note 32	Financial Instruments (Fair Value and Hedge Accounting Disclosures)	72
Note 33	Explanatory Information on Statement of Cash Flows	73-74
Note 34	Fees for Services from Independent Audit Firms	74
Note 35	Events After Reporting Period	74

Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2023

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at December 31, 2023 unless otherwise indicated)

			Audited
	Notes		December 31, 2023	December 31, 2022
ASSETS
Cash and Cash Equivalents	6	41.271.909	39.326.756
Financial Investments	7	375.768	1.252.823
Trade Receivables	10	15.380.815	12.989.626
- Trade Receivables from Related Parties	30	1.529.428	1.362.117
- Trade Receivables from Third Parties		13.851.387	11.627.509
Other Receivables	11	460.364	1.278.724
- Other Receivables from Related Parties	30	239.457	1.180.650
- Other Receivables from Third Parties		220.907	98.074
Derivative Financial Assets	9	165.707	36.469
Inventories	12	24.877.917	23.545.932
Prepaid Expenses	13	4.291.104	4.101.595
- Prepaid Expenses to Related Parties		-	169.747
- Prepaid Expenses to Third Parties		4.291.104	3.931.848
Current Tax Assets	28	1.112.133	860.557
Other Current Assets	20	2.192.417	2.433.755
- Other Current Assets from Third Parties		2.192.417	2.433.755
Current Assets			90.128.134	85.826.237
Financial Investments		10.881	10.994
Trade Receivables	10	1.299	3.154
- Trade Receivables from Third Parties		1.299	3.154
Other Receivables	11	398.302	217.294
- Other Receivables from Related Parties	30	33.274	41.508
- Other Receivables from Third Parties		365.028	175.786
Derivative Financial Assets	9	33.437	25.093
Assets Due to Investments Accounted for Using	4	490	441.811
Equity Method
	57.615.105	56.948.154
Property, Plant and Equipment	15
Right-of-Use Assets	14	2.041.941	1.426.694
Intangible Assets		106.035.031	117.698.883
- Goodwill	16	12.580.245	16.435.415
- Other Intangible Assets	16	93.454.786	101.263.468
Prepaid Expenses	13	2.867.958	1.614.089
Deferred Tax Asset	28	6.074.969	4.029.598
Other Non-Current Assets	20	18.139	2.569
Non-Current Assets			175.097.552	182.418.333
TOTAL ASSETS		265.225.686	268.244.570

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

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Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2023

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at December 31, 2023 unless otherwise indicated)

					Audited
		Notes	December 31, 2023	December 31, 2022
LIABILITIES
Current Borrowings		11.082.902		12.217.904
- Current Borrowings from Third Parties		11.082.902		12.217.904
-	Banks Loans	8a	9.805.327		12.217.401
-	Lease Liabilities	8b	-		503
-	Issued Debt Instruments	8a	1.277.575		-
Current Portion of Non-Current Borrowings		11.705.513		7.340.808
- Current Portion of Non-Current Borrowings from Third Parties		11.705.513		7.340.808
-	Banks Loans	8a	1.449.455		1.285.908
-	Lease Liabilities	8b	640.171		453.991
-	Issued Debt Instruments	8a	9.615.887		5.600.909
Other Financial Liabilities	8c	1.080.032		115.135
Trade Payables	10	33.059.364		33.008.881
- Trade Payables to Related Parties	30	1.239.263		2.024.444
- Trade Payables to Third Parties		31.820.101		30.984.437
Employee Benefit Obligations	18	891.063		943.808
Other Payables	11	17.075.016		11.747.921
- Other Payables to Related Parties	30	3.191.240		3.150.295
- Other Payables to Third Parties		13.883.776		8.597.626
Derivative Financial Liabilities	9	279.468		502.665
Deferred Income	13	775.245		650.732
Current Tax Liabilities	28	591.269		451.539
Current Provisions		1.787.560		2.155.840
- Current Provisions for Employee Benefits	19	865.009		985.382
- Other Current Provisions	19	922.551		1.170.458
Other Current Liabilities	20	169.966		123.706
Current Liabilities		78.497.398		69.258.939
Long-Term Borrowings		36.279.757		42.350.057
- Long-term Borrowings from Third Parties		36.279.757		42.350.057
-	Banks Loans	8a	1.972.937		1.738.273
-	Lease Liabilities	8b	1.066.584		1.036.231
-	Issued Debt Instruments	8a	33.240.236		39.575.553
Other Long-Term Financial Liabilities	8c	85.404		-
Trade Payables	10	2.131		198
- Trade Payables to Third Parties		2.131		198
Employee Benefit Obligations	18	84.504		-
Other Payables	11	10.795		13.543
- Other Payables to Third Parties		10.795		13.543
Derivative Financial Liabilities	9	2.965		898.487
Deferred Income	13	44.507		90.824
Non-Current Provision	19	993.321		1.433.390
- Non-Current Provision for Employee Benefits		993.321		1.433.390
Deferred Tax Liabilities	28	19.346.530		19.464.722
Other Non-Current Liabilities	20	479		9.192
Non-Current Liabilities		56.850.393		64.260.413
Equity Attributable to Equity Holders of the Parent	21	64.557.722		64.532.601
Issued Capital	592.105		592.105
Inflation Adjustment on Capital	21	8.052.910		8.052.910
Share Premium (Discount)	21	1.440.655		1.440.655
Other Accumulated Comprehensive Income (Loss) that		(211.552)		(231.491)
will not be Reclassified in Profit or Loss
	(211.552)		(231.491)
-Revaluation and Remeasurement Gain/ (Loss)
Other Accumulated Comprehensive Income (Loss) that		(7.205.786)		9.359.672
will be Reclassified in Profit or Loss
	24.023.187		31.791.514
- Currency Translation Differences
- Gains (Losses) on Hedge	21	(31.228.973)		(22.431.842)
Restricted Reserves Appropriated from Profits	3.619.531		3.546.198
Prior Years' Profits or Losses		36.140.920		26.388.363
Current Period Net Profit or Losses		22.128.939		15.384.189
Non-Controlling Interests	4	65.320.173		70.192.617
Total Equity		129.877.895		134.725.218
TOTAL LIABILITIES		265.225.686		268.244.570

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

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