CarrefourSA Carrefour Sabanci Ticaret Merkezi : Financial Statements and Notes as of 31 December 2021 Dosyayı indirmek için tıklayınız.

CARREFOURSA CARREFOUR

SABANCI TİCARET MERKEZİ A.Ş.

CONVENIENCE TRANSLATION INTO ENGLISH OF

YEAR END FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY - 31 DECEMBER 2021

(ORIGINALLY ISSUED IN TURKISH)

18 February 2022

This report contains 7 pages of the independent

auditors' report and 75 pages of financial statements and notes.

CONVENIENCE TRANSLATION OF THE INDEPENDENT AUDITOR'S REPORT ORIGINALLY PREPARED AND ISSUED IN TURKISH TO ENGLISH

To the Shareholders of CarrefourSA Carrefour Sabancı Ticaret Merkezi Anonim Şirketi

1. Audit of the Financial Statements Opinion

We have audited the financial statements of CarrefourSA Carrefour Sabancı Ticaret Merkezi Anonim Şirketi ("the Company"), which comprise the statement of financial position as at 31 December 2021, the statements of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2021, and its financial performance and its cash flows for the year then ended in accordance with Turkish Financial Reporting Standards ("TFRS").

Basis for Opinion

We conducted our audit in accordance with standards on auditing issued by Capital Markets Board of Turkey ("CMB") and Standards on Auditing which is a component of the Turkish Auditing Standards published by the Public Oversight Accounting and Auditing Standards Authority ("POA") ("Standards on Auditing issued by POA"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We declare that we are independent of the Company in accordance with the Code of Ethics for Auditors issued by POA (including Independence Standards) ("POA's Code of Ethics") and the ethical requirements in the regulations issued by POA that are relevant to audit of financial statements, and we have fulfilled our other ethical responsibilities in accordance with the POA's Code of Ethics and regulations. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

Revenue recognition and accounting of revenues from suppliers

Refer to Note 2.6.2 to the financial statements for summary of significant accounting policies and significant accounting estimates and assumptions for revenue recognition and accounting of revenues from suppliers.

The key audit matter

The Company's revenue is mainly comprise of retail sales and income from sublease.

There exist inherent control risk related to the accuracy of retail sales revenue recognized in the financial due to the processing of large volumes of data in invoice process.

The Company's income generated from its suppliers are based on the trade agreements with suppliers and the contents of these agreements consist of commitments to purchase amounts, promotions and marketing activities, and various types of discounts. These commitments can vary depending on the turnover and for the sum of purchases made during that period or for certain products within those purchases as of periods.

Therefore, the Company's retail sales revenues and revenues from its suppliers has been the focus area in audit.

How the matter was addressed in our audit

We have performed the following audit procedures to be responsive to retail sales revenue:

• Assessing the compliance of the Company's accounting policy with respect to accounting for revenue in accordance with TFRS 15 and the adequacy of disclosures related to the Company's revenue;
• Assessing, with the assistance of our internal IT specialists, the design, implementation and operating effectiveness of the below controls;

•key internal controls over the general IT environment in which the business systems operate, including access to program controls, program change controls, program development controls and computer operation controls; and

•internal IT controls over the completeness and accuracy of pricing and billing process and the end-to-end reconciliation controls from pricing and billing process to the accounting system.

• Reconciliation of retail sales revenues recognized throughout the year with cash and credit card collections verified from relevant bank documents;
• Substantive testing on a sample of non- systematic transactions which are outside of the normal retail process;
• Testing, on a sample basis, sales returns accepted subsequent to the year end in order to assess whether the sales returns are properly

accounted for in the appropriate financial period.

• Evaluation of high-risk journal entries that the Company has accounted for during the year.

We have performed the following audit procedures to be responsive to revenue from suppliers:

• Testing the fulfillment of contract conditions, turnover premium rates and relevant conditions for significant turnover premiums income to ensure that turnover premiums income received from suppliers are accounted for in accordance with the terms of the relevant contracts in the correct period and in the correct amount;
• Controlling the subsequent period realizations (invoices) of turnover premiums income recognized as accruals
• Verification of current accounts related to the suppliers, which a significant portion of turnover premiums income are generated, through external confirmations;
• Analyzing the current contracts with suppliers and evaluating the suitability and appropriateness of accounting policies and the adequacy and relevance of relevant disclosures in terms of elements to be generated in the current period.

Recoverability of deferred tax assets

Refer to Note 2.6.17, 2.7.3 and Note 25 to the financial statements for summary of significant accounting policies and significant accounting estimates and assumptions for recoverability of deferred tax assets.

The key audit matter

As of and for the year ended 31 December 2021, the Company has recognized deferred tax assets for deductible temporary differences and unused tax losses that it believes are recoverable.

The recoverability of the deferred tax asset depends on the Company's ability to generate taxable profits that it can use in the future deductible temporary differences and prior year financial losses (before expiration). Therefore, accounting and recoverability of deferred tax assets requires significant management judgment.

This issue has been identified as one of the key audit matters, as estimating the amounts and timings for the realization of future taxable profits and temporary differences involves natural uncertainty.

How the matter was addressed in our audit

We have performed the following audit procedures to be responsive to this area:

• Evaluating and questioning the assumptions and judgments, which are used to determine future taxable earnings estimates by analyzing the assumptions made by the management;
• Reconciliation of the estimates and assumptions used with the amounts in future business plans approved by the Board of Directors;
• Considering the historical accuracy of forecasts of future taxable profits made by the management by comparing the actual taxable profits for the current year with management's estimates in the forecasts made in the previous year and assessing whether there were any indicators of management bias in the selection of key assumptions;
• Considering the impact of changes in legislation where applicable;
• Reconciling unused previous year tax losses and its expiry dates with tax statements; and
• Assessing whether the disclosures in the financial statements for the application of the judgments used in the estimation of deferred tax assets that are reflected or not reflected in the Company's financial statements are appropriately reflecting the deferred tax position in accordance with TFRS provisions.