Vestel Elektronik Sanayi ve Ticaret Anonim Sirketi : announced its financials for 1H22

VESTELELEKTRONİKSANAYİVE TİCARET ANONİM ŞİRKETİ

CONVENIENCETRANSLATION INTOENGLISHOF CONDENSEDCONSOLIDATED FINANCIAL STATEMENTSFOR THE INTERIM PERIOD

1 JANUARY- 30 JUNE2022(TOGETHERWITH

INDEPENDENT AUDITOR'SLIMITED REVIEWREPORT)

(ORIGINALLY ISSUEDIN TURKISH)

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ

NOTES TO THE CONDENSED CONSOLIDATED FINANCIALSTATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 30 JUNE 2022

CONTENTS	PAGE
CONDENSED CONSOLIDATEDINTERIM BALANCE SHEETS ............................................................	1-5
CONDENSED CONSOLIDATEDINTERIM STATEMENTS OFPROFIT ORLOSS AND
OTHER COMPREHENSIVE INCOME...............................................................................................................	6-7
bbCONDENSED CONSOLIDATED INTERIM STATEMENTSOFCHANGESIN
SHAREHOLDERS' EQUITY................................................................................................................................	8
CONDENSED CONSOLIDATEDINTERIM STATEMENTS OFCASH FLOWS ....................................	9-11

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY- 30 JUNE 2022

NOTE 1	GROUP'S ORGANISATION AND NATURE OF OPERATIONS..................................................	12-13
NOTE 2	BASIS OF PRESENTATION OF CONSOLIDATEDFINANCIAL STATEMENTS.....................	13-33
NOTE 3	INTERESTSIN OTHER ENTITIES................................................................................................	34-35
NOTE 4	SEGMENTREPORTING.................................................................................................................	36-37
NOTE 5	CASH ANDCASH EQUIVALENTS.................................................................................................	38
NOTE 6	FINANCIAL ASSETS........................................................................................................................	38-39
NOTE 7	FINANCIAL LIABILITIES...............................................................................................................	39-41
NOTE 8	RELATED PARTY DISCLOSURES.................................................................................................	42-45
NOTE 9	TRADE RECEIVABLES AND PAYABLES.....................................................................................	45-46
NOTE 10	OTHER RECEIVABLES...................................................................................................................	47
NOTE 11	INVENTORIES..................................................................................................................................	47-48
NOTE 12	PREPAID EXPENSES......................................................................................................................	48
NOTE 13	INVESTMENTS RECOGNIZED BY EQUITY PICKUP METHOD...............................................	49
NOTE 14	PROPERTY, PLANTANDEQUIPMENT......................................................................................	50-52
NOTE 15	RIGHTOF USEASSETS..................................................................................................................	53
NOTE 16	INTANGIBLE ASSETS.....................................................................................................................	54-55
NOTE 17	PROVISIONS, CONTINGENTASSETS AND LIABILITIES.........................................................	55-58
NOTE 18	COMMITMENTS..............................................................................................................................	58
NOTE 19	EMPLOYEE BENEFITS...................................................................................................................	59-60
NOTE 20	OTHER ASSETSAND LIABILITIES..............................................................................................	60-61
NOTE 21	CAPITAL, RESERVES AND OTHER EQUITY ITEMS.................................................................	61-63
NOTE 22	SALES................................................................................................................................................	64
NOTE 23	EXPENSES BYNATURE.................................................................................................................	64
NOTE 24	GENERALADMINISTRATIVE EXPENSES,MARKETINGEXPENSES,RESEARCH
	AND DEVELOPMENT EXPENSES................................................................................................	65
NOTE 25	OTHER INCOME AND EXPENSESFROMOPERATINGACTIVITIES.....................................	66
NOTE 26	FINANCIAL INCOME AND FINANCIAL EXPENSES..................................................................	67
NOTE 27	TAXES ONINCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)...............	67-71
NOTE 28	EARNINGS / (LOSS)PER SHARE.................................................................................................	71
NOTE 29	DERIVATIVE INSTRUMENTS.......................................................................................................	72
NOTE 30	FINANCIAL INSTRUMENTS ANDFINANCIAL RISK MANAGEMENT..................................	72-76
NOTE 31	SUBSEQUENT EVENTS..................................................................................................................	76

1

VESTEL ELEKTRONİKSANAYİVE TİCARETANONİMŞİRKETİ

CONDENSED CONSOLIDATEDINTERIM BALANCE SHEETS AS OF 30 JUNE 2022 AND 31 DECEMBER 2021

(Amountsexpressedinthousandsof TurkishLira ("TL")unlessotherwise indicated.)

		Reviewed	Audited
	Footnotes	30 June 2022	31 December 2021
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	5	1.393.331	2.089.143
Financial Investments		68.065	1.710
Time Deposits		68.065	1.710
Trade Receivables		9.031.187	6.674.282
Trade Receivables Due from Related Parties	8, 9	12.397	14.133
Trade Receivables Due from Third Parties	9	9.018.790	6.660.149
Other Receivables		1.779.716	1.461.021
Other Receivables Due from Related Parties	8, 10	1.075.599	848.275
Other Receivables Due from Third Parties	10	704.117	612.746
Derivative Financial Assets		529.566	288.768
Derivative Financial Assets Held for Trading	29	65.465	14.151
Derivative Financial Assets Held for Hedging	29	464.101	274.617
Inventories	11	14.058.190	9.528.703
Prepaid Expense	12	1.136.492	611.717
Prepayments to Related Parties	8	143.779	-
Prepayments to Third Parties	12	992.713	611.717
Current Tax Assets	27	7.738	7.987
Other Current Assets	20	212.381	215.323
Other Current Assets Due from			215.323
Third Parties	20	212.381
TOTAL CURRENT ASSETS		28.216.666	20.878.654

The accompanyingnotes are an integral part of these condensed consolidated interim financial statements.

2

VESTEL ELEKTRONİKSANAYİVE TİCARETANONİMŞİRKETİ

CONDENSED CONSOLIDATEDINTERIM BALANCE SHEETS AS OF 30 JUNE 2022 AND 31 DECEMBER 2021

(Amountsexpressedinthousandsof TurkishLira ("TL")unlessotherwise indicated.)

		Reviewed	Audited
	Footnotes	30 June 2022	31 December 2021
NON-CURRENT ASSETS
Financial Investments	6	75.184	73.085
Investments in subsidiaries, joint ventures
and associates	13	1.827.378	1.406.812
Trade Receivables	9	296	468
Trade Receivables Due from Third Parties	9	296	468
Other Receivables		14.273.696	10.843.955
Other Receivables Due from Related Parties	8	14.249.448	10.717.782
Other Receivables Due from Third Parties	10	24.248	126.173
Property, Plant and Equipments		9.054.980	7.426.989
Land and Premises	14	1.772.283	1.724.691
Land Improvements	14	260.220	203.884
Buildings	14	3.964.854	3.241.874
Machinery and Equipments	14	2.458.028	2.092.530
Vehicles	14	6.377	6.936
Fixtures and Fittings	14	134.575	70.832
Leasehold Improvements	14	17.236	4.110
Construction in Progress	14	441.407	82.132
Right of Use Assets	15	192.017	179.618
Intangible Assets and Goodwill		1.233.282	1.107.011
Goodwill		196.568	196.568
Other Rights	16	23.124	24.901
Capitalized Development Costs	16	891.761	789.738
Other Intangible Assets	16	121.829	95.804
Prepayments	12	612.005	371.314
Deferred Tax Asset	27	1.266.617	795.193
Other Non-current Assets	20	25.231	9.590
TOTAL NON-CURRENT ASSETS		28.560.686	22.214.035
TOTAL ASSETS		56.777.352	43.092.689

The accompanyingnotes are an integral part of these condensed consolidated interim financial statements.

3

VESTEL ELEKTRONİKSANAYİVE TİCARETANONİMŞİRKETİ

CONDENSED CONSOLIDATEDINTERIM BALANCE SHEETS AS OF 30 JUNE 2022 AND 31 DECEMBER 2021

(Amountsexpressedinthousandsof TurkishLira ("TL")unlessotherwise indicated.)

		Reviewed	Audited
	Footnotes	30 June 2022	31 December 2021
LIABILITIES
CURRENT LIABILITIES
Current Borrowings		14.990.088	4.982.710
Current Borrowings from Third Parties		14.990.088	4.982.710
Bank Loans	7	14.225.833	4.344.893
Issued debt instruments	7	764.255	637.817
Current Portion of Non-current Borrowings		1.571.789	6.089.194
Current Portion of Non-current Borrowings from		12.138	11.423
Related Parties
Lease Liabilities	7, 8	12.138	11.423
Current Portion of Non-current Borrowings from
Third Parties		1.559.651	6.077.771
Bank Loans	7	1.482.667	6.014.337
Lease Liabilities	7	76.984	63.434
Trade Payables		20.306.335	16.026.589
Trade Payables to Related Parties	8	5.667	66.009
Trade Payables to Third Parties	9	20.300.668	15.960.580
Payables Related to Employee Benefit	19	307.726	279.503
Other Payables		125.522	10.752
Other Payables to Third Parties		125.522	10.752
Derivative Financial Liabilities		368.914	531.887
Derivative Financial Liabilities Held for Trading	29	244.610	490.901
Derivative Financial Liabilities Held for Hedging	29	124.304	40.986
Deferred Income		416.665	-
Deferred Income from Third Parties		416.665	-
Current Provisions	17	1.399.222	1.240.635
Other Current Liabilities	20	2.266.199	1.448.827
TOTAL CURRENT LIABILITIES		41.752.460	30.610.097

The accompanyingnotes are an integral part of these condensed consolidated interim financial statements.