Net : 31.03.2024 Financial Statements

NET HOLDİNG ANONİM ŞİRKETİ

AND IT'S SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD ENDED AT 31 MARCH 2024

(CONVENIENCE TRANSLATION OF THE REPORT, THE FINANCIAL STATEMENTS

AND THE EXPLANATORY NOTES ORIGINALLY ISSUED IN TURKISH)

CONTENTS		PAGE
Consolidated Balance Sheets………………………………………………………………………………………	1-2
Consolidated Statements of Income ………………………………………………………………………………	3
Consolidated Statements of Other Comprehensive Income………………………………………………………	4
Consolidated Statements of Change in Shareholder's Equity …………………………………………………	5
Consolidated Statements of Cash Flow ……………………………………………………………………………	6-7
Notes to the Consolidated Financial Statements …………………………………………………………………	8-97
NOTE 1	Organization and Nature Of Activities……………………………………………………………….	8
NOTE 2	Basis of the Consolidated Financial Statement………………………………………………………	9-32
NOTE 3	Business Mergers and Subject to Joint Control and Joint Ventures…………………………………	32
NOTE 4	Shares in Other Companies……………………………………………………………………………	33-38
NOTE 5	Report by Segments……………………………………………………………………………………	38-43
NOTE 6	Related Party Disclosures……………………………………………………………………………	43-46
NOTE 7	Cash And Cash Equivalents……………………………………………………………………………	46-48
NOTE 8	Financial Investments, net……………………………………………………………………………	48-49
NOTE 9	Financial Borrowings, net……………………………………………………………………………	50
NOTE 10	Trade Receivables and Payables………………………………………………………………………	51-53
NOTE 11	Receivables and Payables from Finance Sector Activities……………………………………………	53
NOTE 12	Other Receivables and Payables………………………………………………………………………	53-56
NOTE 13	Payables from Employee Benefits……………………………………………………………………	56
NOTE 14	Inventories……………………………………………………………………………………………	56-57
NOTE 15	Prepaid Expenses and Deferred Income………………………………………………………………	57-58
NOTE 16	Investments Consolidated by Equity Pick Up Method………………………………………………	58
NOTE 17	Right of Use Assets……………………………………………………………………………………	59
NOTE 18	Investment Properties…………………………………………………………………………………	60
NOTE 19	Tangible Fixed Assets…………………………………………………………………………………	61
NOTE 20	Intangible Fixed Assets, net……………………………………………………………………………	62
NOTE 21	Government Incentives and Grants……………………………………………………………………	63
NOTE 22	Commitments, Contingent Assets and Liabilities ……………………………………………………	64-65
NOTE 23	Commitments…………………………………………………………………………………………	65
NOTE 24	Provisions for Employee Benefits……………………………………………………………………	66
NOTE 25	Other Assets……………………………………………………………………………………………	66-67
NOTE 26	Shareholders' Equity…………………………………………………………………………………	67-70
NOTE 27	Sales and Cost of Sales………………………………………………………………………………	71
NOTE 28	General Administrative Expenses and Marketing Expenses…………………………………………	71-72
NOTE 29	Expenses According to Qualifıcations…………………………………………………………………	73
NOTE 30	Other Operating Income / Expenses…………………………………………………………………	74
NOTE 31	Investment Activities Income / Expenses……………………………………………………………	75
NOTE 32	Financial Income / (Expenses)…………………………………………………………………………	75-76
NOTE 33	Current Assets Held for Sale and Discontinued Operations…………………………………………	76
NOTE 34	Tax Assets and Liabilities (Including Deferred Tax Assets and Liabilities)…………………………	77-82
NOTE 35	Earnings Per Share……………………………………………………………………………………	82
NOTE 36	Exposure to Financial Risks Due to Financial Instrument……………………………………………	83-90
NOTE 37	Financial Instruments (Fair Value Disclosures and Hedge Accounting Disclosures)…………	91-93
NOTE 38	Other Issues Affecting the Consolidated Financial Statements Significantly or Required to be
	Disclosed for Clear, Understandable and Interpretable Presentation	93-96
NOTE 39	Post Balance Sheet Events……………………………………………………………………………	97

NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2024 AND 31 DECEMBER 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

		Current Period	Prior Period
		Non-Reviewed	Audited
	Footnote
	References	31.03.2024	31.12.2023
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	7	1.212.487	2.352.066
Financial Investments	8	763	991
Trade Receivables		114.753	139.715
- Trade receivables from related parties	10	12.146	13.831
- Trade receivables from other parties	10	102.607	125.884
Other Receivables		248.042	171.323
- Other receivables from related parties	12	2.761	162
- Other receivables from other parties	12	245.281	171.161
Inventories	14	345.220	357.326
Prepaid Expenses	15	242.806	156.024
Assets Relevant to Current Period Taxes	34	461.602	450.738
Other Current Assets	25	153.230	77.523
TOTAL CURRENT ASSETS		2.778.903	3.705.706
NON-CURRENT ASSETS
Financial Investments	8	18.343	18.343
Other Receivables		11.080	9.811
- Other receivables from related parties	12	5.399	5.329
- Other receivables from other parties	12	5.681	4.482
Right of Use Assets	17	2.989.103	3.184.964
Investment Properties	18	15.246.514	15.248.439
Tangible Fixed Assets	19	42.769.727	38.349.854
Intangible Fixed Assets	20	462.353	460.657
Prepaid Expenses	15	2.057.173	1.753.756
Deferred Tax Assets	34	562.062	702.435
Other Non-Current Assets	25	10.343	48.355
TOTAL NON-CURRENT ASSETS		64.126.698	59.776.614
TOTAL ASSETS		66.905.601	63.482.320

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2024 AND 31 DECEMBER 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

		Current Period	Prior Period
		Non-Reviewed	Audited
	Footnote
	References	31.03.2024	31.12.2023
LIABILITIES
CURRENT LIABILITIES
Financial Borrowings	9	453.995	521.147
Current Installment of Long Term Financial
Borrowings	9	2.050.402	2.132.125
Trade Payables		1.664.139	1.422.892
Employee Benefit Liabilities	13	241.901	177.562
Other Payables		531.199	514.373
- Other payables due to related parties	12	168	714
- Other payables due to other parties	12	531.031	513.659
Deferred Income	15	1.721.023	2.139.152
- Deferred Income due to related parties	6	3.050	2.766
- Deferred Income due to other parties	15	1.717.973	2.136.386
Current Tax Liabilities	34	9.211	13.465
Current Provisions		101.944	82.649
- Provision for employee benefits	24	101.357	82.070
- Other current provisions	22	587	579
TOTAL CURRENT LIABILITIES		6.773.814	7.003.365
NON-CURRENT LIABILITIES
Financial Borrowings	9	5.357.024	3.713.831
Trade Payables	10	1.389	409
Other Payables	12	2.271	2.393
Deferred Income	15	562	1.748
Non-Current Provisions		38.322	31.234
- Provision for employee benefits	24	38.322	31.234
Deferred Tax Liabilities	34	12.628.425	11.746.739
TOTAL NON-CURRENT LIABILITIES		18.027.993	15.496.354
TOTAL LIABILITIES		24.801.807	22.499.719
SHAREHOLDERS' EQUITY
Parent Company's Equity		39.295.556	38.470.530
Paid In Capital	26.1	563.876	563.876
Inflationary Adjustments of Shareholder's Equity	26.1	7.589.507	7.589.507
Treasury Shares	26.9	(1.213.445)	(1.213.445)
Share Premiums (Discounts)	26.2	(275.729)	(275.729)
Other Comprehensive Income or Expense
- Gain (Losses) on Remeasurements on Defined
Benefit Plans	26.6	(3.006)	(3.724)
- Revaluation of Tangible Fixed Assets
Increases (Decreases)	26.8	20.082.508	19.274.309
Other Comprehensive Income or Expense
To Be Reclassified on Profit or Loss
- Foreign Currency Conversion Differences	26.4	(283.345)	(222.798)
Restricted Reserves	26.3	1.440.137	1.440.137
Retained Earnings or Losses	26.7	11.180.325	8.752.056
Net Profit or Loss for the Period	35	214.728	2.566.341
Minority Interests	26.5	2.808.238	2.512.071
TOTAL SHAREHOLDERS' EQUITY		42.103.794	40.982.601
TOTAL LIABILITIES		66.905.601	63.482.320

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE INTERIM PERIODS ENDED AT 31 MARCH 2024 AND 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

		Current Period	Prior Period
		Non-Reviewed	Non-Reviewed
	Footnote	01.01.-	01.01.-
	References	31.03.2024	31.03.2023
OPERATING ACTIVITIES
Sales	27.1	3.204.602	1.872.099
Cost of Sales	27.2	(2.249.052)	(2.284.591)
GROSS PROFIT (LOSS)		955.550	(412.492)
General Administrative Expenses	28.1	(375.332)	(312.839)
Marketing Expenses	28.2	(43.999)	(35.465)
Other Operating Income	30.1	243.926	165.036
Other Operating Expenses	30.2	(412.991)	(163.506)
OPERATING PROFIT (LOSS)		367.154	(759.266)
Investment Activities Income	31.1	4.123	143.328
Investment Activities Expenses	31.2	(1.647)	(17.094)
OPERATING ACTIVITY PROFIT (LOSS)
BEFORE FINANCIAL INCOME (EXPENSE)		369.630	(633.032)
Financial Income	32.1	569.675	210.939
Financial Expenses	32.2	(1.023.023)	(590.650)
Monetary Gain/Loss		452.622	3.617.750
OPERATING ACTIVITY PROFIT / (LOSS)
BEFORE TAXATION		368.904	2.605.007
Operating Activity Tax Income / (Expense)		35.674	(2.114.056)
Current Tax (Expense) Income	34	(9.211)	(3.580)
Deferred Tax (Expense) Income	34	44.885	(2.110.476)
OPERATING ACTIVITY PROFIT / (LOSS)
FOR THE PERIOD		404.578	490.951
DISCONTINUED OPERATIONS PROFIT (LOSS)
FOR THE PERIOD		-	114
PROFIT (LOSS) FOR THE PERIOD		404.578	491.065
Distribution of Profit (Loss) for the Period
Minority Interests	26.5	189.849	24.635
Parent Company's Share	35	214.729	466.430
Earnings Per Share		0,3808	0,8272

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE INTERIM PERIODS ENDED AT 31 MARCH 2024 AND 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

		Current	Prior
		Period	Period
		Non-	Non-
		Reviewed	Reviewed
	Footnote	01.01.-	01.01.-
	References	31.03.2024	31.03.2023
PROFIT (LOSS) FOR THE PERIOD		404.578	491.065
OTHER COMPREHENSIVE INCOME (LOSS)
Not to Be Reclassified on Profit or Loss		618.486	632.291
Actuarial gain (loss) from retirement pay provision	24	250	(54)
Revaluation of Tangible Fixed Assets	19	808.199	826.585
Taxes in Other Comprehensive Income
Not to Be Classified to Profit or Loss
- Deferred Tax Expense / Income	34	(189.963)	(194.240)
To be Reclassified to Profit or Loss		129.571	(437.275)
Foreign Currency Conversion Differences	26.5	129.571	(437.275)
OTHER COMPREHENSIVE INCOME (EXPENSE)		748.057	195.016
TOTAL COMPREHENSIVE INCOME (EXPENSE)		1.152.635	686.081
Distribution of Total Comprehensive Income / (Expense)
Minority Interest		189.849	24.091
Parent Company's Shares		962.786	661.990

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE INTERIM PERIOD ENDED AT 31 MARCH 2024 AND 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

							Other
							Comprehensive
					Other Comprehensive Retained	Retained Earnings
					Earnings Not to be Reclassified	to be Reclassified
					to Profit or Loss	Under Profit or		Retained Earnings
					Gain/(Losses) on
		Adjustment of		Share	Remeasurements	Revaluation of	Foreign Currency		Retained	Net Profit/	Parent		Total
	Paid In Shareholder's	Treasury	Premiums	on Defined Tangible Fixed	Conversion	Restricted	Earnings or	(Loss) for	Company's	Minority	Shareholder's
Prior Period	Capital	Equity	Shares	(Discounts)	Benefit Plans	Assets	Differences	Reserves	Losses	the Period	Equity	Interests	Equity
Balances at 31 December 2022 (Beginning of the Period)	563.876	7.589.507	(1.081.254)	(275.729)	(4.134)	15.551.469	(72.691)	1.307.946	6.633.699	1.760.299	31.972.988	2.027.730	34.000.718
Transfers	-	-	-	-	-	-	-	47.668	1.712.631	(1.760.299)	-	-	-
Dividend distribution to minorities	-	-	-	-	-	-	-	-	-	-	-	(48.426)	(48.426)
Increase/ Decrease from Treasury Shares	-	-	(47.668)	-	-	-	-	-	1.301	-	(46.367)	-	(46.367)
Total Comprehensive Income / (Expense)	-	-	-	-	460	501.651	(352.441)	-	-	(46.830)	102.840	24.091	126.931
- Profit (Loss) for the Period	-	-	-	-	-	-	-	-	-	(46.830)	(46.830)	24.635	(22.195)
- Other Comprehensive Income	-	-	-	-	460	501.651	(352.441)	-	-	-	149.670	(544)	149.126
Balances at 31 March 2023 (End of the Period)	563.876	7.589.507	(1.128.922)	(275.729)	(3.674)	16.053.120	(425.132)	1.355.614	8.347.631	(46.830)	32.029.461	2.003.395	34.032.856
Current Period
Balances at 31 December 2023 (Beginning of the Period)	563.876	7.589.507	(1.213.445)	(275.729)	(3.724)	19.274.309	(222.798)	1.440.137	8.752.056	2.566.341	38.470.530	2.512.071	40.982.601
Transfers	-	-	-	-	-	-	-	-	2.566.341	(2.566.341)	-	-	-
Subsidiares Related to Share Changes not to Result in a
Loss of Control	-	-	-	-	-	-	-	-	(139.202)	-	(139.202)	139.202	-
Dividend distribution to minorities	-	-	-	-	-	-	-	-	-	-	-	(32.884)	(32.884)
Increase/ Decrease from Treasury Shares	-	-	-	-	-	-	-	-	1.130	-	1.130	-	1.130
Total Comprehensive Income / (Expense)	-	-	-	-	718	808.199	(60.547)	-	-	214.728	963.098	189.849	1.152.947
- Profit (Loss) for the Period	-	-	-	-	-	-	-	-	-	214.728	214.728	189.849	404.577
- Other Comprehensive Income	-	-	-	-	718	808.199	(60.547)	-	-	-	748.370	-	748.370
Balances at 31 March 2024 (End of the Period)	563.876	7.589.507	(1.213.445)	(275.729)	(3.006)	20.082.508	(283.345)	1.440.137	11.180.325	214.728	39.295.556	2.808.238	42.103.794
				The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE INTERIM PERIODS ENDED AT 31 MARCH 2024 AND 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

			Current	Prior
			Period	Period
			Non-	Non-
			Reviewed	Reviewed
		Footnote	01.01.-	01.01.-
		References	31.03.2024	31.03.2023
CASH FLOW FROM OPERATING ACTIVITIES		1.159.440	1.513.678
Net Profit (Loss) For the Period	35	404.578	491.064
- Operating Activity Profit (Loss) For the Period	33	404.578	490.951
- Discontinued Operatinons Profit (Loss) For the Period	33,2	-	113
Adjustments Related to Reconciliation of Profit (Loss)
Adjustments to Depreciation and Amortization Expenses	29	949.633	721.068
Adjustments to Impairment (Cancellation)
-	Adjustments to Impairment (Cancellation) in Receivables	28	15	-
-	Adjustments to Impairment in Intangible Fixed Assets	20	-	(84.993)
Adjustments to Provisions
- Adjustments to Employee Benefit Provisions	24	7.089	45
- Adjustment for Provision for Expenses and Lawsuits	22	8	(55)
Adjustments to Interest (Income) and Expenses
- Adjustments to Deferred Finance Expenses from Bargain Deposit	30	34.399	27.847
- Adjustments for Unearned Finance Income from Term Sales	30	(40.214)	(26.347)
Adjustments to Tax Income / Expense	34	145.078	194.570
Monetary Profit/Loss		589.097	1.143.327
Changes in Operating Capital
Changes in Financial Investments	8	228	1.736
Changes in Trade Receivables
- Changes in Trade Receivables From Related Parties	10	(126)	(21)
- Changes in Trade Receivables From Other Parties	10	6.797	85.849
Changes in Other Receivables Related the Operating Activities
- Changes in Other Receivables From Related Parties	12	(3.387)	(350)
- Changes in Other Receivables From Other Parties	12	(98.313)	(840)
Changes in Inventory	14	12.105	(4.096)
Changes in Prepaid Expenses	15	(390.200)	(48.411)
Changes in Trade Payables	10	55.895	(288.214)
Changes in Employee Benefit Payables	13	83.626	40.921
Changes in Other Payables Related the Operating Activities
- Changes in Other Payables Related the Operating Activities to Related Parties	12	(639)	(1.632)
- Changes in Other Payables Related the Operating Activities to Other Parties	12	(50.310)	37.142
Changes in Deferred Income	15	(419.315)	(771.461)
Other Adjustments Related to Change in Operating Capital
- Changes in Other Liabilities Related Activities	25	(8)	55
Cash Flow From Operating Activities
Dividends Paid		(122.341)	-
Tax Returns (Payments)	34	(4.255)	(3.526)

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE INTERIM PERIODS ENDED AT 31 MARCH 2024 AND 2023

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

		Current	Prior
		Period	Period
		Non-Reviewed	Non-Reviewed
	Footnote	01.01.-	01.01.-
	References	31.03.2024	31.03.2023
CASH FLOW FROM INVESTMENT ACTIVITIES		(3.165.598)	328.682
Cash Inflow From Sales of Tangible and Intangible Asset
- Cash Inflow from Sales of Tangible Asset	19	3.552	413.308
- Cash Inflow from Sales of Intangible Asset	20	-	2
Cash Outflow From Purchasing of Tangible and Intangible Asset
- Cash Outflow From Purchasing of Tangible Asset	19	(3.168.531)	(103.174)
- Cash Outflow From Purchasing of Intangible Asset	20	(2.544)	-
Cash Inflow From Sales of Investment Property	18	1.925	31.471
Cash Outflow From Purchasing of Investment Property	18	-	(12.925)
CASH FLOW FROM FINANCE SECTOR		1.236.527	(286.338)
Cash Inflows/(Outflows) About Company's Purchasing of Own Shares
- Cash outflow due to purchase of own shares	26	-	(47.668)
Cash Inflow From Borrowing
- Cash Inflow From Financial Borrowing	9	2.264.961	368.658
Cash Outflows Related to Dept Payments
- Cash Outflow From Borrowing Repayment	9	(750.857)	(308.841)
Cash Outflows Related to Debt Payments Arising from Rent Agreements		(52.332)	(177.347)
Interest Paid	32	(278.809)	(160.996)
Interest Earned	32	53.564	39.856
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS
BEFORE EFFECT OF EXCHANGE RATE CHANGES		(769.631)	1.556.022
EFFECT OF EXCHANGE RATES ON CASH AND CASH
EQUIVALENTS	26.5	(62.026)	(312.766)
NET INCREASE/DECREASE OF CASH AND CASH
EQUIVALENTS		(831.657)	1.243.256
INFLATION EFFECT ON CASH		(307.922)	(993.426)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD	7	2.352.066	2.102.236
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD	7	1.212.487	2.352.066

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD ENDED AT 31 MARCH 2024

(Amounts expressed in thousand Turkish Lira ("TRY") in terms of the purchasing power of the TRY at

31 March 2024, unless otherwise indicated.)

1. ORGANIZATION AND NATURE OF ACTIVITIES

Net Holding Anonim Şirketi (referred as Parent Company) was established in Istanbul on 05 January

1981 as a joint venture taking part in the management and auditing of the companies operating in tourism and other sectors; providing consultancy about financing, investment, organization, marketing and sales. Parent Company holds control of several companies, operating mainly in domestic and foreign tourism sectors. Summarized information for the subsidiaries of the Parent Company is presented in Note 4.

Well known individual shareholder of Parent Company is Besim Tibuk and he is Chairman of Board of Directors.

Net Holding Anonim Şirketi and its subsidiaries will be referred as "Net Group".

For the interim period ended at 31 March 2024, Net Group has average of 6.729 employees (01 January - 31 December 2023: 5.980).

As of 31 March 2024 and 31 December 2023 shareholding structure of Net Holding Anonim Şirketi is as following;

	31.03.2024	31.12.2023
Net Holding Anonim Şirketi	16,95%	16,95%
Public held shares and other shareholders	83,05%	83,05%
Total	100,00%	100,00%

As of report date, the registered address of the Net Holding Anonim Şirketi is as following;

Etiler Mahallesi Bade Sokak

No:9 Etiler, Beşiktaş / İstanbul

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