Arcelik : 2019 4Q Financial Results have been announced. Please click for the summary presentation

2019 - 9 Month Financial Results

Quarter Highlights

• Top line growth of 7%
• Improvement in gross profitability
• Better raw material prices
• OPEX/Sales at 25.2% in 3Q19
• Strong free cash flow* generationin 9M19
• Flat NWC/Salesand leverage QoQ

TRY8.2bn 11.0%

RevenueEBITDA Margin*

28.3% 2.4x

NWC/SalesRatioLeverage

* Free Cash Flow calculated as Net Operating Cash Flow + CAPEX

* IFRS 16 impact included

Key Factors Sales/Margins

Revenue

Growth

Gross

Margin

EBITDA

Margin

2019 Q3 Performance Turkey

	MDA-6			Air-Conditioner			TV

Market

				Turkish MDA6 Market YoY Change
					4%					7%
-13%		-6%		-7%						-8%
		-14%			-20%
							-29%
Jan	Feb	Mar	Apr	May		Jun	Jul	Aug	Sep	Oct	Nov	Dec
							2018		2019

MDA-6 and A/C data (sell-in) is based on WGMA for 3Q19. TV market reflects the data of a retail panel market for July-August 2019

2019 Q3 International Markets

East Europe

-5.0%

0.0%

5.0%

10.0% 15.0%

1. Europe Russia Poland

Romania

Ukraine

W. Europe

United Kingdom

Germany

France

Italy

Spain

South Africa

6M 9M

West Europe

• UK had a weaker performance in 3Q19

South Africa

• Sluggish macro enviroment started to have negative impact on the market

• Romania and Poland slowed down during the quarter

Bangladesh

• Flood and several diseases curbed the demand.

Pakistan

• Contraction due to low consumer confidence and new fiscal measures.

2019 Q3 International Performance

45%	Europe		5%	Africa		11%	Asia-Pacific

2019 Q3 Singer Bangladesh Results

					Δ%
BDT mn	2019 Q3	2018 Q3	2019 Q2	Δ% YoY	QoQ	2019 9M	2018 9M	Δ% YoY
Revenue	5,439	5,199	5,244	5	4	13,460	11,740	15
Gross Profit	1,497	1,463	1,488	2	1	3,810	3,280	16
margin	27.5	28.1	28.4			28.3	27.9
EBIT	656	705	666	-7	-1	1,614	1,419	14
margin	12.1	13.6	12.7			12.0	12.1
Profit Before Tax	598	595	560	1	7	1,343	1,168	15
margin	11.0	11.4	10.7			10.0	9.9
Net Income	440	440	389	0	13	952	841	13
margin	8.1	8.5	7.4			7.1	7.2

2019 Q3 Raw Material Trends

110

140

100

130

120

90

110

80

100

70

90

60

80

50

70

40

60

Apr-16

Jul-16

Oct-16

Apr-17

Jul-17

Oct-17

Apr-18

Jul-18

Oct-18

Apr-19

Jul-19

Apr-16

Jul-16

Apr-17

Jul-17

Oct-17

Apr-18

Jul-18

Oct-18

Apr-19

Jul-19

Jan-16

Jan-17

Jan-18

Jan-19

Jan-16

Oct-16

Jan-17

Jan-18

Jan-19

3Q Average	Metals Price Index (Market)		3Q Average		Plastics Price Index (Market)

Metal Prices Index Quarterly Average - Market

4Q17	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19
90	94	93	90	85	83	82	79

Source: Steel BB, Steel Orbis

Plastic Prices Index Quarterly Average - Market

4Q17	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19
123	128	125	121	111	105	110	104

Source: ICIS - Chemical Industry News & Chemical Market Intelligence

Index includes: CRC, HRC, Galvanized Steel, Stainless Steel, Copper, Aluminium

Index includes: ABS, Polystyrene, Polyurethane, Polypropylene

2019 Q3 Other Developments

• Arçelik participated IFA in Berlin, the world's leading tradeshow for consumer electronics and home appliances, with Beko and Grundig brands, exhibiting its cutting-edgetechnologyproducts.
• Being the only Turkish industrial company to be listed in the DJSI in the Emerging Markets Category for three consecutive years, Arçelik has now been recognised as the industry leader for the first time in the Dow Jones Sustainability Index (DJSI) in HouseholdDurablesCategory.

Sales Performance

2019 Q3 Sales by Region

+7%

8,246

7,696

+2%5,488

5,383

2,313	+19%	2,758
2018 Q3		2019 Q3
		+21%
			23,576
19,490
			15,689
12,909	+22%

6,581	+20%	7,887
2018 1H					2019 1H
		Turkey		International

2019 Q3

4.4%4.6%

2.8%
3.2%	6.7%
5.3%	3.3%	33.4%
	30.1%
7.2%
	2.5%
	2018 Q3
16.6% 17.4%
	32.8%
	29.5%

	2019 9M
	4.8%
3.1%
4.3%
2.8%	5.9%
4.7%	33.5%
6.4%
6.9%	2.3%	33.8%
15.0%	2018 9M
14.8%
	31.4%
	30.3%
Turkey		Western Europe
CIS&Eastern Europe	Africa
Middle East		Pakistan
Bangladesh		Other

2019 Q3 Sales Bridge

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

-

TL mn

445	-37	-223	365	8,246

7,696

5,488

5,383

7,881.38

2,313

2,758

2018 Q3

TR - Organic

INT - Organic

INT - FX Impact

Acquisition

2019 Q3

Turkey

International

Revenue Impact

2019 Q3	Organic	Currency Effect	Acquisition	TOTAL
Domestic Growth	19.2%	0.0%	0.0%	19.2%
International Growth	-0.7%	-4.1%	6.8%	1.9%
Total Growth	5.3%	-2.9%	4.7%	7.1%

Financial Performance

2019 Q3 Income Statement

					Δ%
TL mn	2019 Q3* 2018 Q3 2019 Q2* Δ% YoY	QoQ	2019 9M* 2018 9M Δ% YoY
Revenue	8,246	7,696	8,428	7	-2	23,576	19,490	21
Gross Profit	2,725	2,511	2,643	9	3	7,607	6,135	24
margin	33.1	32.6	31.4			32.3	31.5
EBIT **	640	603	629	6	2	1,698	1,394	22
margin	7.8	7.8	7.5			7.2	7.2
Profit Before Tax	270	332	302	-19	-11	832	679	23
margin	3.3	4.3	3.6			3.5	3.5
Net Income***	253	253	232	0	9	711	575	24
margin	3.1	3.3	2.8			3.0	2.9
EBITDA**	910	787	887	16	3	2,475	1,890	31
margin	11.0	10.2	10.5			10.5	9.7

*Only 2019 financials include IFRS-16 implementation other periods are not re-stated.

• EBIT was calculated by deducting the impactof foreign exchange gains and losses arising from trade receivables and payables, credit finance income and charges and cash discount expense and adding income and expenses from sale of property plant and equipment.
• Net income before minority

2019 Q3 Margin by Segments

6,700

6,500

6,300

6,100

5,900

5,700

5,500

					9,000							Consolidated		33.1		34.0
							32.6						8,428
					8,500									8,246		33.0
																				32.0
					8,000		7,696
																				31.0
					7,500								31.4
																30.0
					7,000
																				29.0
					6,500
																				28.0
					6,000																27.0
					5,500																26.0
					5,000																25.0
							2018 Q3	2019 Q2	2019 Q3
											Revenue				Gross Margin (%)
	White Goods								Consumer Electronics						Other
						39.0	900											799	30.0	1,400				1,324		38.0
					6,480	800						759			1,200								36.0
		6,345	35.2	37.0	700	663	25.6			25.0	35.3					34.0
					35.0								32.0
						600	24.8											967
6,161												1,000				29.3
														30.0
				33.0												22.5		873
						500											20.0
33.1																				28.0
32.5		31.0	400													800
																					27.6	26.0
						29.0
						300												15.0								24.0
																	600
						27.0	200
																										22.0
						25.0	100												10.0	400								20.0
2018 Q3	2019 Q2	2019 Q3			2018 Q3	2019 Q2	2019 Q3			2018 Q3	2019 Q2	2019 Q3
	Revenue			Gross Margin (%)							Revenue					Gross Margin (%)					Revenue			Gross Margin (%)

2019 Q3 Working Capital

	6,082					8,636					5,979			8,771
							1,065										1,228
	9,486												9,581
							6,203										5,871
	2016 - Assets	2019 6M		2016 - Liabilities				2017 1Q - Assets	2019 9M	20171Q - Liabilities
			Trade Rec.		Inventory		Other Rec.		Trade Payables			Other Pay.	Working Capital
									Working Capital / Sales
32.5%	30.9%	30.3%	30.8%		29.3%	32.2%	33.8%					35.1%
									33.5%
									30.3%	31.6%	32.7%	28.0%	27.3%	28.4%	28.3%

Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18Sep-18Dec-18Mar-19Jun-19Sep-19

2019 Q3 Cash & Financial Debt

12,000	TL mn	3.13		3.15							4.00
			2.83
												2.41	3.00
7,000						2.36	2.31	2.40
2,000												2.00
2,612	2,956		4,225	5,342	6,478	5,788	5,482	1.00
			-3,900
-3,000	-4,413		-4,687	-5,517	-5,602	-5,596	-5,772
					0.00
-8,000	-4,351	-5,029		-6,836	-6,432						-1.00
			-7,529	-7,690	-7,359
-13,000												-2.00
			18 Q1	18 Q2	18 Q3	18 Q4		19 Q1	19 Q2	19 Q3
		Cash and cash equivalent			Short term debt		Long term debt		Net Debt/EBITDA*
*All items excludeIFRS-16 adjusments for 2019 quarterly figures
	Financial Debt profile (as of Sep 30 2019)
								Effective	mn Original		TL mn
								Interest Rate p.a. (%)	Currency	Equivalent
	TRY							22.1%	4,219		4,219
	EUR							0.4%	236		1,462
	GBP							1.4%	7		45
	ZAR							9.4%	750		282
	AUD							3.3%	14		54
	RUB							9.2%	7		1
	RON							3.7%	200		259
	PKR							12.5%	14,927		536
	BDT							9.6%	2,731		183
	Total												7,040
	USD							5.1%	512		2,895
	EUR							4.0%	350		2,164
	TRY*							19.8%	1,032		1,032
	Total Bond												6,091
	Total												13,131

Cash Breakdown by Currency

5% 7% 6%

21%

6%56%

TRY USD GBP EUR RUB Diğer

Debt Maturity Profile

2023+

4% 2019

202317%

23%

2020

27%

2021

28%

*Average fixed rate at 19.1% through Interest Rate Swaps

2019 Q3 FX Hedging

400															3.9%			6.0%
300																		4.0%
200																		2.0%
100
0																		0.0%
								0.4%
-100		-1.1%								-1.2%			-1.2%				-2.0%
-200				-2.1%-2.0%
			-2.5%						-3.6%		-2.9%	-2.4%	-4.0%
-300								-3.7%
-4.1%								-5.1%
															-6.0%
-400
		-5.7%
-500	16 Q1	16 Q2	16 Q3	16 Q4		17 Q1	17 Q2	17 Q3	17 Q4	18 Q1	18 Q2	18 Q3	18 Q4	19 Q1	19 Q2	19 Q3	-8.0%
							Net FX Position		Net FX/Equity

	Before	Hedged	Net
(TRYmn)	Hedge	Position	Position
EUR	-1,187	1,080	-108
USD	-433	272	-161
GBP	627	-617	10
Other	836	-798	38
TOTAL	-157	-63	-220
Net FX Position/Equity			-2.4%

• FX hedging is a strictly pursued policy in Arçelik since more than 30 currencies are actively managed in global operations.
• It is a KPI for the company management not to have an FX exposure exceeding low single-digit % of equity.

• The primary strategy is on balance sheet hedging mainly through cash, receivables, payables and financial liabilities, and the remaining part is hedged through financial derivatives.

2019 Q3 Cash Flow

2019 9M

2018 9M

2019 Guidance

2019 Guidance

White Goods Market

Volume Growth

Revenue Growth

EBITDA Margin 2019*

EBITDA Margin

Long Term*

Global: ~2% Growth

Turkey: ~-15% Contraction

20-25% in TRY

Around 10.5%

Around 12%

*EBITDA margin calculations are inline with the methodology used in calculation of historical values and include IFRS-16implementation

Contacts for Investor Relations

Polat Şen	Hande Sarıdal	Orkun İnanbil	Kerimcan Uzun
CFO	Finance Director	Investor Relations Manager	Investor Relations Specialist
Tel: [phone]	Tel: [phone]	Tel: [phone]	Tel: [phone]

Investor Relations App

www.arcelikas.com

[e-mail]

Disclaimer

This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management's current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.

Neither Arçelik nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.

Thank You