Bizim Toptan Satis Magazalari : 2023 2Q Financial Statements and Footnotes

(CONVENIENCE TRANSLATION OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş.

AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF

1 JANUARY - 30 JUNE 2023 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT

CONVENIENCE TRANSLATION INTO ENGLISH OF INDEPENDENT

AUDITOR'S REVIEW REPORT ORIGINALLY ISSUED IN TURKISH

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION

To the General Assembly of Bizim Toptan Satış Mağazaları A.Ş.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Bizim Toptan Satış Mağazaları A.Ş. (the "Company") and its subsidiaries (collectively referred as the "Group") as at 30 June 2023 and the related interim condensed consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the six-month period then ended and other explanatory notes (Notes 1-25). The management of the Group is responsible for the preparation and fair presentation of this interim condensed consolidated financial information in accordance with Turkish Accounting Standard 34 ("TAS 34") "Interim Financial Reporting". Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of review

We conducted our review in accordance with the Standard on Review Engagements ("SRE") 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim condensed consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and the objective of which is to express an opinion on the consolidated financial statements. Consequently, a review on the interim condensed consolidated financial information does not provide assurance that the audit firm will be aware of all significant matters which would have been identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to conclude that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with TAS 34.

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

BJK Plaza, Süleyman Seba Caddesi No:48 B Blok Kat:9 Akaretler Beşiktaş 34357 İstanbul-Turkey

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

Mersis Numaramız: 0-1460-0224-0500015

Other information

Management is responsible for the other information. The other information comprises the Appendix I added to "Other information" section in the report but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our review of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the review or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Additional explanation for convenience translation into English

As disclosed in Note 2.1 to the accompanying interim condensed consolidated financial information Turkish Financial Reporting Standards differ from International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board with respect to the application of IAS 29 - Financial Reporting in Hyperinflationary Economies as of and for the 6-month period ended 30 June 2023. Therefore, the accompanying interim condensed consolidated financial information is not intended to present fairly the consolidated financial position of the Group as of 30 June 2023 and the results of its operations for the 6-month period then ended in accordance with IFRS.

PwC Bağımsız Denetim ve

Serbest Muhasebeci Mali Müşavirlik A.Ş.

Mert Tüten, SMMM

Partner

Istanbul, 10 August 2023

BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES

INDEX	............................................................................................................................................	PAGE
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION	1-2
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME	3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	4
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	5
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
INFORMATION	6-48
NOTE 1	ORGANIZATION AND OPERATIONS OF THE GROUP	6
NOTE 2	BASIS OF PREPARATION OF INTERIM CONDENSED CONSOLIDATED FINANCIAL
	INFORMATION	7-10
NOTE 3	CASH AND CASH EQUIVALENTS	10-11
NOTE 4	BORROWINGS	11-12
NOTE 5	TRADE RECEIVABLES AND PAYABLES	13
NOTE 6	OTHER RECEIVABLES AND PAYABLES	14
NOTE 7	INVENTORIES	14
NOTE 8	PREPAID EXPENSES AND DEFERRED INCOME	15
NOTE 9	TANGIBLE ASSETS AND RIGHT OF USE ASSETS	16-19
NOTE 10	INTANGIBLE ASSETS	20-21
NOTE 11	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES AND COMMITMENTS	22-24
NOTE 12	SHORT AND LONG-TERM EMPLOYEE BENEFITS	24-26
NOTE 13	OTHER ASSETS AND LIABILITIES	26
NOTE 14	SHAREHOLDERS' EQUITY	26-27
NOTE 15	REVENUE AND COST OF SALES	27-28
NOTE 16	GENERAL ADMINISTRATIVE EXPENSES,
	MARKETING, SALES AND DISTRIBUTION EXPENSES	28
NOTE 17	EXPENSES BY NATURE	28-29
NOTE 18	OTHER OPERATING INCOME/EXPENSE	29
NOTE 19	INCOME RELATED TO INVESTING ACTIVITIES	30
NOTE 20	FINANCE EXPENSE	30
NOTE 21	INCOME TAXES (DEFERRED TAX ASSETS AND LIABILITIES)	31-33
NOTE 22	EARNINGS PER SHARE	33
NOTE 23	BALANCES AND TRANSACTIONS WITH RELATED PARTIES	34-41
NOTE 24	NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS	41-45
NOTE 25	EVENTS AFTER REPORTING DATE	45
OTHER INFORMATION
APPENDIX-1 OTHER INFORMATION	46-48

BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2023

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

		Current Period		Prior Period
		30 June		31 December
ASSETS	Notes	2023	2022
Current Assets		3,433,157,300	2,967,063,613
Cash and Cash Equivalents	3	717,355,264	634,587,187
Trade Receivables		486,210,918	452,432,292
Due from Related Parties	5, 23	40,019,143	25,460,057
Due from Non-Related Parties	5	446,191,775	426,972,235
Other Receivables		16,313,360	2,677,726
Other Receivables from Non-Related Parties	6	16,313,360	2,677,726
Inventories	7	1,889,434,969	1,665,106,201
Prepaid Expenses	8	186,986,323	87,046,528
Current tax related asset	21	7,999,151	37,641,204
Other Current Assets		128,857,315	87,572,475
Non-Current Assets		1,440,302,804	1,045,317,822
Other Receivables		12,527,306	12,602,882
Other Receivables from Non-Related Parties	6	12,527,306	12,602,882
Tangible Assets	9	578,662,718	530,997,668
Right of Use Assets	9	605,663,750	285,083,277
Intangible Assets	10	51,948,561	46,142,834
Deferred Tax Assets	21	191,500,469	170,491,161
TOTAL ASSETS		4,873,460,104	4,012,381,435

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

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