Türk Traktör ve Ziraat Makineleri : 30.06.2023 Independent Audit Report

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023 TOGETHER WITH INDEPENDENT AUDITOR'S REVIEW REPORT

(ORIGINALLY ISSUED IN TURKISH)

CONVENIENCE TRANSLATION INTO ENGLISH OF

INDEPENDENT AUDITOR'S REVIEW REPORT

ORIGINALLY ISSUED IN TURKISH

REPORT ON REVIEW OF INTERIM CONDENSED

FINANCIAL INFORMATION

To the General Assembly of Türk Traktör ve Ziraat Makineleri A.Ş.

Introduction

We have reviewed the accompanying condensed statement of financial position of Türk Traktör ve Ziraat Makineleri A.Ş. (the "Company") as at 30 June 2023 and the related condensed statement of profit or loss and other comprehensive income, changes in equity and cash flows for the six-month period then ended. The management of the Company is responsible for the preparation and fair presentation of this interim condensed 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 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 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 financial statements. Consequently, a review on the interim condensed 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 financial information of Türk Traktör ve Ziraat Makineleri A.Ş.

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

Additional explanation for convenience translation into English

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 by 30 June 2023. Accordingly, the accompanying financial statements are not intended to present fairly the financial position and results of operations of the Company in accordance with IFRS.

PwC Bağımsız Denetim ve

Serbest Muhasebeci Mali Müşavirlik A.Ş.

ORIGINALLY ISSUED IN TURKISH

Aysun Gul Kılıç, SMMM

Partner

İstanbul, 27 July 2023

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONTENTS	PAGE
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION	1 - 2
CONDENSED INTERIM STATEMENTS OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME	3
CONDENSED INTERIM STATEMENTS OF
CHANGES IN EQUITY	4 - 5
CONDENSED INTERIM STATEMENTS OF CASH FLOWS	6
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS	7 - 49
NOTE 1	ORGANISATION AND NATURE OF OPERATIONS OF THE COMPANY	7
NOTE 2	BASIS OF PRESENTATION OF FINANCIAL STATEMENTS	7	- 12
NOTE 3	REPORTING BY SECTIONS	12
NOTE 4	CASH AND CASH EQUIVALENTS	12	- 13
NOTE 5	FINANCIALINVESTMENTS	13
NOTE 6	FINANCIAL LIABILITIES	13	- 15
NOTE 7	TRADE RECEIVABLES AND PAYABLES	16
NOTE 8	INVENTORIES	17
NOTE 9	PROPERTY, PLANT AND EQUIPMENT	18	- 19
NOTE 10	RIGHT OF USE ASSETS	19	- 20
NOTE 11	INTANGIBLE ASSETS	20	- 21
NOTE 12	OTHER ASSETS AND LIABILITIES	21
NOTE 13	PREPAID EXPENSES AND DEFERRED INCOME	22
NOTE 14	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES	22	- 26
NOTE 15	EMPLOYEE BENEFITS	27
NOTE 16	EQUITY	27	- 28
NOTE 17	REVENUE AND COST OF SALES	29
NOTE 18	OTHER INCOME/EXPENSE FROM OPERATING ACTIVITIES	30
NOTE 19	FINANCIAL INCOME	30
NOTE 20	FINANCIAL EXPENSE	30
NOTE 21	TAX ASSETS AND LIABILITIES	31	- 33
NOTE 22	EARNINGS PER SHARE	33	- 34
NOTE 23	RELATED PARTY EXPLANATIONS	34	- 39
NOTE 24	FINANCIAL INSTRUMENTS AND NATURE AND EXTENT OF RISKS ARISING FROM
	FINANCIAL INSTRUMENTS	39	- 49
NOTE 25	SUBSEQUENT EVENTS	49

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

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

			Reviewed	Audited
		Notes	30 June	31 December
		2023	2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents	4	6,458,362,514	4,416,872,941
Financial investments	5	7,507,228	420,033,225
Trade receivables
-	Trade receivables from related parties	7, 23	797,505,684	1,274,066,993
-	Trade receivables from third parties	7	1,546,898,060	827,840,777
Inventories	8	3,589,227,083	3,614,962,987
Prepaid expenses	13	27,785,895	15,168,023
Current income tax assets	21	-	3,069
Other current assets	12	875,167,137	1,008,138,837
TOTAL CURRENT ASSETS		13,302,453,601	11,577,086,852
NON - CURRENT ASSETS
Trade receivables		109,458
-	Trade receivables from third parties	7	109,458
Other receivables		412,390
-	Other receivables from third parties		393,753
Property, plant and equipment	9	1,126,149,136	931,097,842
Right of use assets	10	111,355,923	93,425,351
Intangible assets	11	711,498,069	621,820,738
Prepaid expenses	13	164,478,830	90,815,165
Deferred tax assets	21	792,014,157	481,193,003
TOTAL NON - CURRENT ASSETS		2,906,017,963	2,218,855,310
TOTAL ASSETS		16,208,471,564	13,795,942,162

The financial statements prepared as at and for the period ended 30 June 2023 have been approved by the Board of Directors on 27 July 2023.

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

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