Türk Traktör ve Ziraat Makineleri : 31.03.2023 Independent Audit Report

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS FOR THE PERIOD

1 JANUARY - 31 MARCH 2023

(ORIGINALLY ISSUED IN TURKISH)

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

FINANCIAL STATEMENTS AS OF 31 MARCH 2023

CONTENTS	PAGE
STATEMENT OF FINANCIAL POSITION	1 - 2
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME	3
STATEMENT OF CHANGES IN EQUITY	4 - 5
STATEMENT OF CASH FLOWS	6
EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS	7 - 49
NOTE 1	ORGANISATION AND NATURE OF OPERATIONS OF THE COMPANY	7
NOTE 2	BASIS OF PRESENTATION OF FINANCIAL STATEMENTS	7	- 11
NOTE 3	SEGMENT REPORTING	11
NOTE 4	CASH AND CASH EQUIVALENTS	12
NOTE 5	FINANCIAL INVESTMENT	12
NOTE 6	FINANCIAL LIABILITIES	13	- 15
NOTE 7	TRADE RECEIVABLES AND PAYABLES	15	- 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	22
NOTE 13	PREPAID EXPENSES AND DEFERRED INCOME	22	- 23
NOTE 14	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES	23	- 27
NOTE 15	EMPLOYEE BENEFITS	28
NOTE 16	EQUITY	28	- 30
NOTE 17	REVENUE AND COST OF SALES	30
NOTE 18	OTHER INCOME/EXPENSE FROM OPERATING ACTIVITIES	31
NOTE 19	FINANCIAL INCOME	31
NOTE 20	FINANCIAL EXPENSE	31
NOTE 21	TAX ASSETS AND LIABILITIES	32	- 34
NOTE 22	EARNINGS PER SHARE	34
NOTE 23	RELATED PARTY EXPLANATIONS	35	- 39
NOTE 24	FINANCIAL INSTRUMENTS AND NATURE AND EXTENT OF RISKS ARISING FROM
	FINANCIAL INSTRUMENTS	40	- 49
NOTE 27	SUBSEQUENT EVENTS	49

TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2023

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

			Current	Prior
			period	period
			unaudited	audited
			31 March	31 December
		Notes	2023	2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents	4	4,514,535,584	4,416,872,941
Financial investments	5	113,846,752	420,033,225
Trade receivables:
-	Trade receivables from related parties	7, 25	890,580,809	1,274,066,993
-	Trade receivables from third parties	7	1,753,916,461	827,840,777
Inventories	8	3,070,542,182	3,614,962,987
Prepaid expenses	13	21,782,587	15,168,023
Current tax assets	23	-	3,069
Other current assets	12	939,701,009	1,008,138,837
TOTAL CURRENT ASSETS		11,304,905,384	11,577,086,852
NON - CURRENT ASSETS
Trade receivables
-	Trade receivables from third parties	7	109,458	109,458
Other receivables:
-	Other receivables from third parties		412,385	393,753
Property, plant and equipment	9	1,003,336,854	931,097,842
Right of use assets	10	86,568,996	93,425,351
Intangible assets	11	662,880,108	621,820,738
Prepaid expenses	13	123,885,309	90,815,165
Deferred tax assets	23	746,203,556	481,193,003
TOTAL NON - CURRENT ASSETS		2,623,396,666	2,218,855,310
TOTAL ASSETS		13,928,302,050	13,795,942,162

The financial statements prepared as at and for the period ended 31 March 2023 have been approved by the Board of Directors on 26 April 2023. These financial statements will be finalised following their approval in the General Assembly.

The accompanying notes form an integral part of these financial statement

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TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2023

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

			Current	Prior
			period	period
			unaudited	audited
		Notes	31 March	31 December
			2023	2022
LIABILITIES
CURRENT LIABILITIES
Short-term financial liabilities
Short-term financial liabilities to other parties
-	Bank borrowings	6	2,082,412,244	2,432,320,224
Short-term portion of long-term financial liabilities
Short-term portion of long-term financial liabilities from
	related parties		41,302,464	24,918,517
-	Lease liabilities	6
Short-term portion of long-term financial liabilities from
	third parties		825,136,748	848,288,136
-	Bank borrowings	6
-	Lease liabilities	6	12,334,953	7,441,898
Trade payables
- Trade payables to related parties	7, 25	184,668,572	271,784,705
-	Trade payables to third parties	7	5,388,034,320	4,653,430,244
Payables related to employee benefits	15	304,258,710	149,120,886
Other payables
-	Other payables to third parties		225,301,049	124,654,842
Government incentives and aids	12	3,321,575	3,321,575
Deferred income	13	546,834,283	566,700,564
Tax liability for the period	23	507,822,432	-
Short - term provision
-	Short term provision for employee benefits	14	24,588,399	13,328,665
-	Other short term provisions	14	128,728,374	120,401,000
TOTAL CURRENT LIABILITIES		10,274,744,123	9,215,711,256
NON - CURRENT LIABILITIES
Long-term financial liabilities
Long-term financial liabilities from related parties		39,690,535	68,144,904
-	Lease liabilities	6
Long-term financial liabilities from third parties		286,610,375	507,427,245
-	Bank borrowings	6
-	Lease liabilities	6	962,555	1,652,616
Long - term provisions
-	Long term provision for employee benefits	14	236,014,904	256,458,270
-	Other long term provisions	14	133,951,900	108,334,042
TOTAL NON-CURRENT LIABILITIES		697,230,269	942,017,077
EQUITY		2,956,327,658	3,638,213,829
Paid-in share capital	16	53,369,000	53,369,000
Adjustments to share capital	16	39,014,356	39,014,356
Merger reserve		(5,569,000)	(5,569,000)
Restricted profit reserves		448,435,448	238,702,293
Other accumulated comprehensive income and
expense not to be reclassified to profit or loss
- Actuarial loss arising from		(184,787,928)	(194,390,177)
defined benefit plans
Other accumulated comprehensive income and
expense to be reclassified to profit or loss
-	Gain/(Losses) on cash flow hedging		69,403,177	58,947,006
Retained earnings		1,138,407,196	477,121,790
Net profit for the year		1,398,055,409	2,971,018,561
TOTAL LIABILITIES		13,928,302,050	13,795,942,162

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

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TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD 31 MARCH 2023 AND 2022

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

		Current	Prior
		period	period
		unaudited	unaudited
		1 January -	1 January -
	Notes	31 March	31 March
		2023	2022
Revenue	17	9,523,667,947	3,987,989,777
Cost of sales (-)	17	(7,305,214,958)	(3,265,327,729)
GROSS PROFIT		2,218,452,989	722,662,048
Marketing expenses	18	(269,275,877)	(111,068,503)
General administrative expenses	18	(177,293,483)	(67,441,917)
Research and development expenses	18	(31,515,104)	(16,967,990)
Other income from operating activities	20	449,910,744	398,351,511
Other expenses from operating activities	20	(569,746,376)	(462,321,676)
OPERATING PROFIT		1,620,532,893	463,213,473
Income from investment activities		1,972,134	-
OPERATING INCOME BEFORE FINANCIAL		1,622,505,027	463,213,473
INCOME
Financial income	21	333,798,629	163,049,368
Financial expenses	22	(306,322,416)	(89,323,161)
PROFIT BEFORE TAXATION ON INCOME		1,649,981,240	536,939,680
Taxes on income (-)	23	(521,950,989)	(129,614,879)
Deferred tax income/(expense)	23	270,025,158	69,270,350
NET PROFIT FOR THE PERIOD		1,398,055,409	476,595,151
Earnings per share (TRY)	24	0.2620	0.0893
Other comprehensive income/(expense)
Not to be reclassified to profit or loss:
Actuarial loss arising from defined benefits plans	14	12,002,811	129,122
Other comprehensive expense not to be reclassified
to profit or loss, tax effect
Actuarial gain/ loss arising from defined benefit	23	(2,400,562)	(25,824)
plans, tax effect
To be reclassified to profit or loss:
Profit/(Losses) on cash flow hedging		13,070,214	(29,050,081)
Other comprehensive expense to be reclassified
to profit or loss, tax effect
Losses on		(2,614,043)	6,681,519
cash flow hedging, tax effect	23
Other comprehensive income/(expense)		20,058,420	(22,265,264)
TOTAL COMPREHENSIVE INCOME		1,418,113,829	454,329,887

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

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