Arçelik Anonim Sirketi : 2022 Q4 Financial Results Presentation

4Q22 Financial Results

January 25, 2023

4Q22

HIGHLIGHTS

TRY39.2bn

Revenue

9.1%

EBITDA Margin

22.2%

OPEX / Sales

21.0%

NWC / Sales

2.26x

Leverage

Solid revenue growth momentum on track as further eased material costs contributed margin expansion..

Robust revenue growth of 74% y/y driven by price increases, higher units sold in Turkey and TRY depreciation. Organically, annual growth was 67%. On a quarterly basis, the revenue growth was 14% while organic growth were stood at 11%.

Sell-out and sell-in were positive in Turkey mainly thanks to pull forward demand, while contraction in consumer demand continued in both West & East Europe.

Eased costs, price increases and further improved OPEX/Sales ratio resulted in 42 bps q/q EBITDA margin expansion.

Net Working Capital/Sales was 21.0% thanks to decreasing inventories and strong collection.

Leverage was 2.26x, down by 0.42x compared to 3Q22 thanks to strong cash generation in the quarter.

A new business partnership with Whirlpool in Europe and acquisition of Whirlpool's MENA subsidiaries has been announced.

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Overview of recent corporate actions;	4Q22	Financial Results
Beko Europe & acquisition of Whirlpool's MENA subsidiaries

75%*	The NEWCO	25%*
Stake	'Beko Europe'	Stake

•	A new company (NEWCO) named 'Beko Europe' has been established.
• 24 million annual production capacity in total for European business.
•	Arçelik will have the control of the NEWCO and fully consolidate.

25 European Subsidiaries / Country Offices

~ 6,000 Employees

2 Factories in Romania

Brands to be owned by the NEWCO;

Grundig, Arctic, Elektrabregenz, Flavel and Leisure

Brands to be licensed to the NEWCO; Beko, Altus, Blomberg

38 European Subsidiaries / Country Offices

~ 14,400 Employees

14 Factories in Italy, Poland, Slovakia and

The UK

Brands to be owned by the NEWCO;

Hotpoint, Indesit, Bauknecht, Privileg and Ignis

Brands to be licensed to the NEWCO; Whirlpool

• Around EUR6bn and EUR4.3bn combined revenues as of FY21 and 9M22,

respectively.

• Over EUR200mn cost synergies expected from footprint optimization,

procurement and logistics.

• Apart from the NEWCO for European business, Arçelik will acquire

Whirlpool's MENA subsidiaries at an EV amount of EUR20mn subject to

net working capital and net debt adjustment at closing date.

• Around EUR182mn revenue of Whirlpool's MENA subsidiaries, as of FY21.

• Conditions: Subject to approval from regulatory authorities

• Expected closing: Second half of 2023.

*The final ownership ratio will be determined by taking into account the EBITDA and net fixed asset value in the FY22	3
financials and based on net debt and net working capital after the closing financial statements are prepared.

Key Factors Sales / Margins	4Q22	Financial Results

REVENUE GROWTH

74%*

Price increases on both quarterly & yearly basis

Significant TRY depreciation on a yearly basis Increased unit sales in Turkey on a yearly basis

		39,192
	34,255
22,519
TRYmn
4Q21	3Q22	4Q22

GROSS MARGIN

29.0%

Eased raw material costs

Appreciated EUR against USD

Lower capacity utilisation on both quarterly & yearly basis

28.8% 28.8% 29.0%

4Q21 3Q22 4Q22

EBITDA MARGIN

9.1%

Lower OPEX/Sales on a quarterly basis thanks to lower marketing and logistics expenses

9.4%	8.7%	9.1%

4Q21 3Q22 4Q22

*Includes inorganic revenue contribution of Indesit International JSC and Whirlpool RUS LLC acquisition. Organically, annual and quarterly revenue growth was 67% and 11% in 4Q22, respectively.

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Operational Performance

4Q22 Financial Results