Türkiye Sise Ve Cam Fabrikalari : 2023 YE Financial Statements Report

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED

FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY - 31 DECEMBER 2023

(CONVENIENCE TRANSLATION INTO

ENGLISH OF ORIGINALLY ISSUED IN TURKISH)

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONTENTS

	PAGE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	1-2
CONSOLIDATED STATEMENT OF PROFIT OR LOSS	3
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME	4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	5
CONSOLIDATED STATEMENT OF CASH FLOWS	6-7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	8-122

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

			31 December	31 December
ASSETS	Notes	2023	2022
Current Assets
Cash and cash equivalents	6	37,759,886	41,596,612
Financial investments	7	7,093,086	6,307,414
Trade receivables	10,37	27,470,442	32,691,659
− Due from related parties	37	167,868	104,193
−	Other trade receivables	10	27,302,574	32,587,466
Other receivables	11	1,011,804	744,278
Contract assets	15	211,219	177,521
Derivative financial assets	12	660,153	1,506,464
Inventories	13	32,909,644	34,410,893
Prepayments	14	2,350,450	3,125,797
Current tax assets	35	267,663	93,881
Other current assets	27	3,123,719	3,343,785
Total current assets		112,858,066	123,998,304
Non-current assets
Financial investments	7	1,018,861	1,324,696
Trade receivables	10	35	-
Other receivables	11	25,963	167,553
Derivative financial assets	12	1,262,280	1,953,598
Investments accounted for using the equity method	16	3,854,061	3,116,458
Investment properties	17	10,954,476	9,149,114
Property, plant, and equipment	18	116,640,800	104,777,102
Right of use assets	19	2,559,797	1,865,781
Intangible assets	20,21	35,365,679	36,895,781
−	Goodwill	21	1,274,353	1,338,600
−	Other intangible assets	20	34,091,326	35,557,181
Prepayments	14	5,138,445	4,304,641
Deferred tax assets	35	1,499,230	1,427,845
Other non-current assets	27	34,150	4,373
Total non-current assets		178,353,777	164,986,942
TOTAL ASSETS		291,211,843	288,985,246

1

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF 31 DECEMBER 2023 AND 31 DECEMBER 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

			31 December	31 December
LIABILITIES	Notes	2023	2022
Current Liabilities
Short term borrowings	8	28,984,365	23,531,570
Short term portion of long-term borrowings	8	10,272,453	7,096,176
Trade payables	10,37	16,922,253	18,671,299
− Due to related parties	37	540,898	357,282
− Due to third parties	10	16,381,355	18,314,017
Liabilities for employee benefits	25	981,991	911,453
Other payables	11,37	1,321,337	1,077,579
− Due to related parties	37	53,045	80,073
− Due to third parties	11	1,268,292	997,506
Contract liabilities	15	290,101	367,208
Derivative instruments	12	1,144,385	480,456
Deferred income	14	2,013,030	2,276,076
Current income tax liabilities	35	380,422	136,263
Short term provisions	23,25	1,803,467	1,875,652
Other current liabilities	27	2,608,069	2,185,748
Total current liabilities		66,721,873	58,609,480
Non-current liabilities
Long term borrowings	8	46,018,555	46,670,914
Other payables	11	98,880	8,426
Derivative instruments	12	114,267	15,645
Deferred income	14	346,201	439,000
Long term provisions	25	5,298,655	6,114,248
Deferred tax liabilities	35	5,295,596	3,439,572
Other non-current liabilities	27	191,178	237,593
Total non-current liabilities		57,363,332	56,925,398
Total liabilities		124,085,205	115,534,878
EQUITY
Equity holders of the parent	28	142,355,121	142,797,138
Paid capital		3,063,214	3,063,214
Adjustment to share capital		26,779,430	26,779,430
Treasury shares		(120,352)	(126,797)
Share premiums (discount)		893,921	893,921
Accumulated other comprehensive income/expense
	not to be reclassified to profit or loss		17,108,659	13,770,311
−	Gains/(losses) on revaluation and remeasurement		17,108,659	13,770,311
	− Revaluation gain/(loss) on tangible assets		16,862,755	13,686,098
	− Gain/(loss) arising from defined benefit plans		245,904	84,213
Accumulated other comprehensive income/expense
	to be reclassified to profit or loss		(18,293,939)	(1,274,679)
−	Currency translation differences		(6,831,669)	(1,485,333)
−	Hedge reserves		(11,462,270)	210,654
	-Gains (Losses) on Cash Flow Hedges		(941,590)	210,654
	-Gains (Losses) on Hedges of Net Investment in Foreign Operations		(10,520,680)	-
Restricted reserves		8,517,026	8,517,026
Retained earnings		87,285,795	68,435,922
Net profit or loss for the period		17,121,367	22,738,790
Non-controlling interests	4, 28	24,771,517	30,653,230
Total equity		167,126,638	173,450,368
TOTAL LIABILITIES AND EQUITY		291,211,843	288,985,246

2

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE PERIODS 1 JANUARY - 31 DECEMBER 2023 AND 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

		1 January-	1 January-
		31 December	31 December
	Notes	2023	2022
Revenues	29	151,994,022	170,655,164
Cost of Sales	29	(110,055,800)	(116,072,653)
Gross profit/ (loss) from trading activity		41,938,222	54,582,511
General administrative expenses	30,31	(9,892,248)	(8,640,212)
Marketing expenses	30,31	(21,110,880)	(23,429,238)
Research and development expenses	30,31	(479,304)	(566,507)
Other operating income	32	15,980,119	10,111,309
Other operating expenses	32	(11,808,980)	(7,734,154)
Share of profit (loss) from investments accounted for using equity method	16	1,091,500	581,250
Operating profit/ (loss)		15,718,429	24,904,959
Income from investing activities	33	6,773,344	9,685,824
Expense from investing activities	33	(1,303,627)	(2,116,034)
Impairment gain and reversal of impairment
loss determined	33	10,623	(111,230)
Profit (Loss) before financing income (expense)		21,198,769	32,363,519
Financial income	34	18,257,753	17,923,899
Financial expenses	34	(19,898,368)	(23,399,822)
Gains (losses) on net monetary position		4,031,790	(1,182,415)
Profit (Loss) from continuing operations, before tax		23,589,944	25,705,181
Tax (expense) income, continuing operations		(4,611,969)	(1,672,048)
− Current period tax (expense) / income	35	(2,198,117)	(2,269,383)
− Deferred tax (expense) income	35	(2,413,852)	597,335
Profit (Loss)		18,977,975	24,033,133
Attributable to:
− Non-controlling interest	28	1,856,608	1,294,343
− Equity holders of the parent	28	17,121,367	22,738,790
Earnings per share	36	5.8457	7.7704

3

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE PERIODS OF 1 JANUARY - 31 DECEMBER 2023 AND 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

		1 January-	1 January-
		31 December	31 December
	Notes	2023	2022
Profit / (loss) for the Period	28	18,977,975	24,033,133
Other Comprehensive Income:
Items that will not be reclassified to profit or loss	28	3,377,213	8,355,113
Gains (Losses) on revaluation of property, plant, and equipment		4,928,173	9,460,719
Gain / (loss) arising from defined benefit plans		254,557	192,037
Share of other comprehensive income of investments accounted for using
equity method that will not be reclassified to profit or loss		9,502	6,006
Taxes on items that will not be reclassified to profit or loss		(1,815,019)	(1,303,649)
Items that will be reclassified to profit or loss	28	(20,569,464)	(13,150,098)
Currency translation differences		(7,607,338)	(14,673,412)
Other Comprehensive Income (Loss) Related with Cash Flow Hedges		(2,717,543)	1,625,650
Other Comprehensive Income (Loss) Related with
Hedges of Net Investments in Foreign Operations		(14,027,573)	-
Taxes on items that will be reclassified to profit or loss		3,782,990	(102,336)
Other comprehensive income/ (loss)		(17,192,251)	(4,794,985)
Total Comprehensive Income/ (Loss)		1,785,724	19,238,148
Attributable to:
− Non-controlling interest	4	(1,662,032)	(2,933,718)
− Equity holders of parent		3,447,756	22,171,866
Earnings per share	36	1.1772	7.5766

4

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS 1 JANUARY - 31 DECEMBER 2023 AND 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

					Other	Other
					Comprehensive	Comprehensive
		Inflation		Share	Income	Income
		Adjustments		Premiums	will not be	will be reclassified				Attributable to	Non
	Issued	on	Treasury	or	reclassified	to profit	Restricted	Retained	Net Profit	Equity holders	Controlling
	Capital	Capital	Shares	Discounts	to profit or loss	or loss	Reserves	Earnings	or loss	of the parent	Interests	Equity
Balance at 1 January 2022	3,063,214	26,779,430	(124,807)	893,921	5,530,392	7,533,317	8,517,026	70,348,382	-	122,540,875	35,571,703	158,112,578
Total comprehensive income / (loss)	-	-	-	-	8,239,919	(8,807,996)	-	1,153	22,738,790	22,171,866	(2,933,718)	19,238,148
Dividends paid	-	-	-	-	-	-	-	(2,681,989)	-	(2,681,989)	(1,984,755)	(4,666,744)
Increase (decrease) through treasury
share transactions	-	-	(1,990)	-	-	-	-	768,376	-	766,386	-	766,386
Balance at 31 December 2022	3,063,214	26,779,430	(126,797)	893,921	13,770,311	(1,274,679)	8,517,026	68,435,922	22,738,790	142,797,138	30,653,230	173,450,368
					Other	Other
					Comprehensive	Comprehensive
		Inflation		Share	Income	Income
		Adjustments		Premiums	will not be	will be reclassified				Attributable to	Non
	Issued	on	Treasury	or	reclassified	to profit	Restricted	Retained	Net Profit	Equity holders	Controlling
	Capital	Capital	Shares	Discounts	to profit or loss	or loss	Reserves	Earnings	or loss	of the parent	Interests	Equity
Balance at 1 January 2023	3,063,214	26,779,430	(126,797)	893,921	13,770,311	(1,274,679)	8,517,026	68,435,922	22,738,790	142,797,138	30,653,230	173,450,368
Transfer	-	-	-	-	-	-	-	22,738,790	(22,738,790)	-	-	-
Total comprehensive income / (loss)	-	-	-	-	3,337,578	(17,011,189)	-	-	17,121,367	3,447,756	(1,662,032)	1,785,724
Dividends paid	-	-	-	-	-	-	-	(3,069,128)	-	(3,069,128)	(2,102,674)	(5,171,802)
Increase (decrease) through treasury
share transactions	-	-	6,445	-	-	-	-	(180,853)	-	(174,408)	-	(174,408)
Transaction wih non-controlling shareholders	-	-	-	-	770	(8,071)	-	(638,936)	-	(646,237)	(2,117,007)	(2,763,244)
Balance at 31 December 2023	3,063,214	26,779,430	(120,352)	893,921	17,108,659	(18,293,939)	8,517,026	87,285,795	17,121,367	142,355,121	24,771,517	167,126,638

5

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY - 31 DECEMBER 2023 AND 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

			1 January-	1 January-
			31 December	31 December
		Notes	2023	2022
A. CASH FLOWS FROM OPERATING ACTIVITIES		37,758,301	20,901,032
Net profit/(loss) for the period	28	18,977,975	24,033,133
Adjustments to reconcile profit/ (loss)		11,064,074	5,735,819
− Adjustments for depreciation and amortisation expense	18,19,20	10,271,220	11,830,993
− Adjustments for Impairment Loss (Reversal of Impairment Loss)		(146,272)	396,231
−	Adjustments for provisions	23,25	1,704,536	1,915,177
− Adjustments for bargain purchase gain	33	-	(106,323)
− Adjustments for Interest (Income) Expenses	32,33,38	5,201,361	1,457,978
− Adjustments for unrealised foreign exchange losses (gains)		(5,212,100)	(975,143)
− Adjustments for fair value losses (gains)		(3,555,239)	(8,714,900)
− Adjustments for Undistributed Profits of Investments
	accounted for Using Equity Method	16	(1,091,500)	(581,250)
− Adjustments for Tax (Income) Expenses	35	4,611,969	1,672,048
− Adjustments for losses (gains) on disposal of non-current assets	33	(25,761)	27,702
− Other adjustments to reconcile profit (loss)		(604,984)	(58,872)
− Gains (losses) on net monetary position		(89,156)	(1,127,822)
Changes in working capital		9,979,696	(4,988,658)
− (Increases)/decreases in trade receivables adjustments		16,793,059	475,645
−	(Increases)/decreases in other receivables adjustments		(107,173)	572,614
− (Increases)/decreases in contract assets adjustments		(33,698)	152,361
− (Increases)/decreases in derivative financial assets		164,953	4,598,275
− (Increases)/decreases in inventories adjustments		1,607,879	(10,165,754)
− (Increases)/decreases in trade payables adjustments		(10,906,727)	(860,906)
− (Increases)/decreases in contract liabilities adjustments		(77,107)	67,150
− (Increases)/decreases in other payables adjustments		50,421	1,313,262
− Other (increases)/decreases in net working capital adjustments		2,488,089	(1,141,305)
Cash flows from operating activities		40,021,745	24,780,294
−	Interest received		777,149	1,280,884
− Payments for the provisions for employee benefits	25	(670,409)	(206,701)
− Taxes received / (paid)	35	(2,370,184)	(4,953,445)

6

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY - 31 DECEMBER 2023 AND 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

			1 January-	1 January-
			31 December	31 December
		Notes	2023	2022
B. CASH FLOWS FROM INVESTING ACTIVITIES		(20,611,188)	(11,003,997)
−	Cash Flows Used in Obtaining Control of Subsidiaries
	or Other Businesses	3	-	(493,988)
-	Cash Outflows from Purchase of Additional Shares of Subsidiaries		(2,763,244)	-
−	Cash Outflows Arising From Purchase of Shares or
	Capital Increase of Associates and/or Joint Ventures	16	(238,375)	(31,857)
−	Cash Receipts from Sales of Equity or Debt Instruments of Other Entities	7	3,592,386	6,435,402
−	Cash Payments to Acquire Equity or Debt Instruments of Other Entities	7	(584,488)	(2,226,487)
−	Proceeds from sales of tangible and intangible assets		2,002,365	1,828,744
−	Purchase of tangible and intangible assets		(20,991,172)	(12,899,566)
−	Cash inflows from sales of investment property		-	304,937
−	Cash advances made to other parties		(3,517,955)	(3,760,263)
−	Repayments of advances given		3,016,688	1,331,255
−	Dividends received	16,27	459,624	594,924
−	Interest received		2,087,440	1,507,247

• Cash Outflows From Participation (Profit) Shares

− or Other Financial Instruments		(3,178,941)	(3,252,276)
−	Other inflows (outflows) of cash		(495,516)	(342,069)
C.	CASH FLOWS FROM FINANCING ACTIVITIES		(8,545,789)	4,298,502
−	Payments to Acquire Entity's Shares or Other Equity Instruments	28	(1,025,038)	(2,353,789)
−	Cash Inflows from Sale of Acquired Entity's Shares	28	850,631	3,120,168
−	Proceeds from borrowings	8	40,212,734	54,943,129
−	Payments of borrowings	8	(34,680,855)	(41,445,097)
−	Payments of lease liabilities	8	(796,000)	(717,748)
−	Dividends paid		(5,171,802)	(4,666,744)
−	Interest paid		(7,935,459)	(4,581,417)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
BEFORE CURRENCY TRANSLATION DIFFERENCES (A+B+C)		8,601,324	14,195,537
D. EFFECT OF NET MONETARY POSITION DIFFERENCES GAINS (LOSSES)
ON CASH AND CASH EQUIVALENTS		(16,351,801)	(13,566,469)
E	EFFECT OF CURRENCY TRANSLATION DIFFERENCES ON CASH AND CASH
EQUIVALENTS		3,908,752	6,253,167
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D+E)	(3,841,725)	6,882,235
F. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	6	41,589,928	34,707,693
CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD (A+B+C+D+E+F)	6	37,748,203	41,589,928

7

TÜRKİYE ŞİŞE VE CAM FABRİKALARI A.Ş.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY - 31 DECEMBER 2023

(Amounts expressed in thousands of Turkish Lira ("TRY") in the terms of purchasing power of the TRY at 31 December 2023 unless otherwise indicated.)

1. In Group's Organization and Nature of Operations

Türkiye Şişe ve Cam Fabrikaları A.Ş. Group (the "Group") consists of a holding company, Türkiye Şişe ve Cam Fabrikaları A.Ş. (the "Company"), 56 subsidiaries, 1 joint venture 3 associates and 2 joint activities.

The Group consists of six operating segments including companies operating in architectural glass, industrial glass (automotive, white goods glasses, glass fiber) , glass packaging, glassware, chemicals ,energy and others (import, export, packaging waste recovery and non-hazardous waste recovery, production and sale of cast AZS refractory block for glass production, holding activities and insurance brokerage services), The Group's main area of activity is glass production, and it deals with complementary industrial and commercial operations for glass production, Additionally, the Group participates in management of various industrial and commercial companies.

The Group was established 87 years ago by Türkiye İş Bankası A.Ş. ("İş Bankası") in Turkey, being one of the largest Turkish private commercial banks, as of Türkiye Şişe ve Cam Fabrikaları A.Ş. Sosyetesi was founded with the title and registered with the trade registry on January 23, 1936. And the establishment was announced in the trade registry gazette on February 5, 1936.

Company's title has been registered as of Türkiye Şişe ve Cam Fabrikaları A.Ş. on April 25, 1973 and published in the trade registry gazette on May 10, 1973. The shares of the Company have been publicly traded on the Borsa İstanbul A.Ş. ("BIST"), formerly named as Istanbul Stock Exchange ("ISE"), since January 3, 1986, As of December 31, 2023, İş Bankası holds

51,06% of the shares and retains the control of the Group.

The Head Office and the Shareholder Structure of the Company

The shareholder structure of the Company is disclosed in Note 28.

The Company is registered in Turkey and the contact information is as presented below:

Address	:	İçmeler Mahallesi D-100 Karayolu Cad, No:44 A 34947, Tuzla / İstanbul / Türkiye
Telephone	:	+ 90 850 206 50 50
Fax	:	+ 90 850 206 40 40
E-mail adress	:	[e-mail]
Registered e-mail address (KEP)	:	[e-mail]
E-mail address	:	[e-mail]
National electronic notification address	:	25999-48162-55656
Website	:	http://www.sisecam.com
Address Code	:	3640907410
Trade Registery Information of the Company
Registered at	:	Istanbul Registry of Commerce Office
Registry no		:21599
Central Legal Entity Information System		:0-8150-0344-7300016
Nace Code	:	70.10.01 primary and additionally 23.11.01, 23.13.01, 20.13.07, 35.11.19, 74.10.02
Legal Entity Identifier (LEI)	:	789000KWOK751Q6R8875
Tax Authority	:	Büyük Mükellefler
Tax Authority number	:	8150034473
Personnel structure of the Group
		31 December	31 December
		2023	2022
Personnel (monthly paid)		9,500	8,859
Personnel (hourly paid)		15,632	16,072
		25,132	24,931

1,004 employees included in the Group's total personnel structure is consisted of the personnel of joint ventures accounted under equity method (31 December 2022: 962 employees.).

8