Tekfen Anonim Sirketi : Financial Statement

TEKFEN HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH INTERIM PERIOD

ENDED 30 JUNE 2023 TOGETHER WITH REVIEW REPORT

(Translated into English from the report originally issued in Turkish)

Independent Auditor's Report on Review of Interim Financial Information

To the Board of Directors of Tekfen Holding Anonim Şirketi

Introduction

We have reviewed the accompanying condensed consolidated statement of financial position of Tekfen Holding Anonim Şirketi (the ''Company'') and its subsidiaries (the "Group") as at 30 June 2023, and the 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 notes to the interim financial information ("the condensed consolidated interim financial information"). Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with Turkish Accounting Standard 34 Interim Financial Reporting ("TAS 34") issued by the Public Oversight Accounting and Auditing Standards Authority ("POA"). Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Scope of Review

We conducted our review in accordance with Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed consolidated interim 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 the Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be 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 believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with TAS 34.

Additional paragraph for convenience translation to English:

The accounting principles summarized in Note 2, differ from the accounting principles generally accepted in countries in which the accompanying consolidated financial statements are to be distributed and International Financial Reporting Standards ("IFRS"). Accordingly, the accompanying consolidated financial statements are not intended to present the financial position and results of operations in accordance with accounting principles generally accepted in such countries of users of the consolidated financial statements and IFRS.

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

Alper Güvenç, SMMM

Partner

9 August 2023 İstanbul, Türkiye

CONTENT		PAGE
CONDENSED CONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
AS AT 30 JUNE 2023	1-2
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTH
INTERIM PERIOD ENDED 30 JUNE 2023	3
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR
THE SIX MONTH INTERIM PERIOD ENDED 30 JUNE 2023	4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX
MONTH INTERIM PERIOD ENDED 30 JUNE 2023	5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH
INTERIM PERIOD ENDED 30 JUNE 2023	6
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX
MONTH INTERIM PERIOD ENDED 30 JUNE 2023	7-42
NOTE 1	ORGANIZATION AND OPERATIONS OF THE GROUP	7
NOTE 2	BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED
	FINANCIAL STATEMENTS	7
NOTE 3	ADOPTION OF NEW AND REVISED STANDARDS	8
NOTE 4	EVENTS AND TRANSACTIONS MATERIALLY AFFECTING THE CONDENSED
	CONSOLIDATED FINANCIAL STATEMENTS	8-11
NOTE 5	SIGNIFICANT CHANGES IN EQUITY	11
NOTE 6	SEGMENT REPORTING	12-19
NOTE 7	CASH AND CASH EQUIVALENTS	20
NOTE 8	TRADE RECEIVABLES AND PAYABLES	20-21
NOTE 9	CONTRACT ASSETS AND LIABILITIES ARISING FROM ONGOING
	CONSTRUCTION WORKS	21-22
NOTE 10	INVENTORIES	22
NOTE 11	INVESTMENTS VALUED BY EQUITY METHOD	23-25
NOTE 12	PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS,
	INVESTMENT PROPERTY AND RIGHT-OF-USE ASSETS	26-28
NOTE 13 SHORT AND LONG-TERM BORROWINGS	29
NOTE 14 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES	29-31
NOTE 15	COMMITMENTS	31-32
NOTE 16	SIGNIFICANT RELATED PARTY TRANSACTIONS	32
NOTE 17	EQUITY	33
NOTE 18	EARNINGS PER SHARE	33
NOTE 19	OTHER OPERATING INCOME AND EXPENSES	34
NOTE 20	FINANCIAL INCOME AND EXPENSES	34
NOTE 21	DERIVATIVE INSTRUMENTS	35
NOTE 22	FOREIGN CURRENCY POSITION	36-38
NOTE 23	FINANCIAL INSTRUMENTS	39-42
NOTE 24	SUBSEQUENT EVENTS	42

TEKFEN HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2023

(Amounts are expressed in thousands of Turkish Lira ("TL") unless otherwise stated.)

		Reviewed	Audited
		30 June	31 December
ASSETS	Notes	2023	2022
Current Assets		22.764.271	22.403.234
Cash and cash equivalents	7	2.573.119	4.151.531
Financial investments	4	2.033.121	1.769.033
Trade receivables	8	4.948.800	4.152.329
- Related party receivables		67.355	66.136
- Trade receivables		4.881.445	4.086.193
Other receivables		138.294	109.294
- Related party receivables		785	-
- Other receivables		137.509	109.294
Contract assets arising from ongoing construction works	9	3.726.123	2.355.436
Derivative instruments	21	290.820	8.528
Inventories	10	6.735.679	7.930.873
Prepaid expenses		944.963	624.229
- Prepaid expenses		944.963	624.229
Assets related to current tax		199.017	428.389
Other current assets		658.751	500.317
- Other current assets		658.751	500.317
		22.248.687	22.029.959
Assets classified as held for sale		515.584	373.275
Non-Current Assets		13.081.509	9.784.131
Financial investments	4,23	2.870.950	2.063.412
Trade receivables	8	822.612	353.134
- Trade receivables		822.612	353.134
Other receivables		86.741	59.399
- Other receivables		86.741	59.399
Investments valued by equity method	11	1.446.101	1.054.172
Investment property	12	287.493	230.733
Property, plant and equipment	12	5.536.401	4.455.013
Right-of-use assets	12	358.825	106.019
Intangible assets	12	188.831	165.607
- Goodwill		125.714	107.395
- Other intangible assets		63.117	58.212
Prepaid expenses		54.771	46.948
- Prepaid expenses		54.771	46.948
Deferred tax assets		1.338.591	1.163.260
Other non-current assets		90.193	86.434
- Other non-current assets		90.193	86.434
TOTAL ASSETS		35.845.780	32.187.365

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

Translated into English from the report originally issued in Turkish.

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