Arçelik Anonim Sirketi : 2023 3 Month Financial Statements

(CONVENIENCE TRANSLATION OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

ARÇELİK ANONİM ŞİRKETİ

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD JANUARY 1 - MARCH 31, 2023

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ARÇELİK ANONİM ŞİRKETİ
CONTENTS	PAGES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION	1-3
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS	4
CONDENSED CONSOLIDATED STATEMENTS OF
OTHER COMPREHENSIVE INCOME……………………………………………………………..5
CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS' EQUITY……………………………………………………….6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS………………….……….7
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS…………8-56
NOTE 1 - GROUP'S ORGANISATION AND NATURE OF OPERATIONS	8
NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS	10
NOTE 3 - BUSINESS COMBINATION	15
NOTE 4 - SEGMENT REPORTING	17
NOTE 5 - CASH AND CASH EQUIVALENTS	18
NOTE 6 - FINANCIAL INVESTMENTS	18
NOTE 7 - BORROWINGS	19
NOTE 8 - DERIVATIVE INSTRUMENTS	25
NOTE 9 - TRADE RECEIVABLES AND PAYABLES	25
NOTE 10 - OTHER PAYABLES	27
NOTE 11 - INVENTORIES	27
NOTE 12 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD	28
NOTE 13 - PROPERTY, PLANT AND EQUIPMENT	29
NOTE 14 - OTHER INTANGIBLE ASSETS	30
NOTE 15 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES	31
NOTE 16 - OTHER PROVISIONS	32
NOTE 17 - PREPAID EXPENSES	32
NOTE 18 - CURRENT INCOME TAX ASSETS	33
NOTE 19 - EMPLOYEE BENEFIT OBLIGATIONS	33
NOTE 20 - OTHER ASSETS AND LIABILITIES	33
NOTE 21 - EQUITY	34
NOTE 22 - OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES	37
NOTE 23 - INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES	37
NOTE 24 - FINANCIAL INCOME	38
NOTE 25 - FINANCIAL EXPENSES	38
NOTE 26 - TAX ASSETS AND LIABILITIES	38
NOTE 27 - EARNINGS PER SHARE	40
NOTE 28 - RELATED PARTY DISCLOSURES	41
NOTE 29 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT	44
NOTE 30 - FINANCIAL INSTRUMENTS	53
NOTE 31 - SUPPLEMENTARY CASH FLOW INFORMATION	56
NOTE 32 - EVENTS AFTER BALANCE SHEET DATE	56
NOTE 33 - OTHER SUBJECTS	56

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

ARÇELİK ANONİM ŞİRKETİ

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2023, AND DECEMBER 31, 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated.)

		Unaudited	Audited
		March	December
	Notes	31, 2023	31, 2022
ASSETS
Current assets:
Cash and cash equivalents	5	29,347,464	24,529,219
Trade receivables
-Due from related parties	28	518,858	420,397
-Trade receivables, third parties	9	39,105,096	33,772,657
Derivative instruments	8	59,437	232,043
Inventories	11	30,796,963	29,237,120
Prepaid expenses	17	1,309,242	1,147,473
Current income tax assets	18	538,358	709,474
Other current assets	20	1,953,210	1,937,931
Total current assets		103,628,628	91,986,314
Non-current assets:
Financial investments	6	32,307	38,956
Trade receivables
- Trade receivables, third parties	9	42,446	42,387
Investments accounted for using the equity method	12	1,136,996	1,148,453
Property, plant and equipment	13	21,484,716	20,822,336
Intangible assets
-Goodwill		4,281,477	3,781,614
-Other intangible assets	14	9,804,791	9,755,086
Prepaid expenses	17	1,135,002	612,155
Deferred tax assets	26	5,081,756	4,055,377
Total non-current assets		42,999,491	40,256,364
Total assets		146,628,119	132,242,678

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

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Sensitivity: Public

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

ARÇELİK ANONİM ŞİRKETİ

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2023, AND DECEMBER 31, 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated.)

		Unaudited	Audited
		March	December 31,
	Notes	31, 2023	2022
LIABILITIES
Current liabilities:
Short-term borrowings	7	30,333,541	18,981,337
Short-term portion of long-term borrowings	7	13,796,524	16,248,013
Trade payables
-Due to related parties	28	2,419,933	2,742,413
-Trade payables, third parties	9	30,939,020	28,185,125
Derivative instruments	8	91,205	179,692
Employee benefit obligations	19	2,052,993	1,638,321
Other payables
- Other payables, third parties	10	3,297,127	1,756,300
Current income tax liabilities	26	143,986	50,265
Provisions
-Other provisions	16	4,590,350	3,867,197
Other current liabilities	20	5,781,727	5,710,781
Total current liabilities		93,446,406	79,359,444
Non-current liabilities:
Long-term borrowings	7	17,746,707	16,209,793
Provisions
-Provision for employee benefits		2,464,491	2,619,763
-Other provisions	16	702,442	571,317
Deferred tax liabilities	26	1,967,938	2,043,930
Other non-current liabilities	20	4,173,066	4,332,751
Total non-current liabilities		27,054,644	25,777,554
Total liabilities		120,501,050	105,136,998

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

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Sensitivity: Public

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

ARÇELİK ANONİM ŞİRKETİ

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2023 AND DECEMBER 31, 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated.)

		Unaudited	Audited
		March	December
	Notes	31, 2023	31, 2022
EQUITY
Paid-in capital	21	675,728	675,728
Adjustment to share capital	21	468,811	468,811
Treasury shares	21	(3,098,160)	(3,098,160)
Share premium/discount		889	889
Other accumulated comprehensive income and expense not to be
reclassified to profit or loss
Gains/ losses on revaluation and remeasurement
-Gain/loss arising from defined
benefit plans		(1,528,089)	(1,411,039)
-Revaluation/ remeasurement of intangible assets		14,079	14,079
-Other gains/ losses on revaluation and remeasurement		12,307	18,888
Other accumulated comprehensive income and expense to be
reclassified to profit or loss
Currency translation differences		16,974,890	17,420,552
Gains/ losses on hedge
-Gains/ losses on hedges of net investment
in foreign operations		(2,389,124)	(2,363,383)
-Gains/ losses on cash flow hedges		12,769	5,012
Balancing account for merger capital		14,507	14,507
Restricted reserves	21	3,488,026	3,800,517
Retained earnings		8,097,085	5,076,450
Net income for the period		1,074,457	4,324,672
Equity holders of the parent		23,818,175	24,947,523
Non-controlling interest		2,308,894	2,158,157
Total equity		26,127,069	27,105,680
Total liabilities and equity		146,628,119	132,242,678

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

3

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