Slide 1: 2Q24 Financial Results
2Q24 Financial Results July 30, 2024 Arçelik Investor Relations Sensitivity: Internal / Non-Personal Data
Slide 2: Disclaimer
Disclaimer With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions. Ac
Slide 3: Beko & Whirlpool Europe Transactions
BEKO & WHIRLPOOL Europe TRANSACTIONS ▪ Arçelik's and Whirlpool’s production, sales, and marketing subsidiaries operating in Europe was On January 17, 2023*, Arçelik A.Ş. and transferred under a structure where Arçelik will control a 75% majority stake, Arçelik's wholly- Whirlpool signed an agreement
Slide 4: Beko Europe
Beko Europe Number one player in Europe, with the launch of Beko Europe! Transaction: Facilities: Beko Europe has transferred Whirlpool Europe’s Subsidiaries: Beko Europe owns 11 production facilities, of white goods production, sales and marketing which 9 production facilities (14 plants) obtained
Slide 5: Beko Europe
Beko Europe Beko Europe’s consolidated sales revenue is EUR 1.26 bn in 2Q24. Europe transaction has contributed to Beko Europe’s total revenue by ≈ EUR 0.72 bn in 2Q24. 2Q24 Sales in EUR by Brand: 2Q24 Sales in EUR by Region: Leading Positions & Brands: UK & Ireland Eastern With a wide range of bran
Slide 6: 2Q24 Highlights
2Q24 Normalization of demand in Türkiye, slowdown in APAC & inorganic growth in challenging international markets with the contribution of HIGHLIGHTS Whirlpool transactions. TRY 101.6bn Consolidated revenues grew by 23.0% y/y in real terms. Revenue (7.6% lower w/o the acquisition impact) 27.7% Whole
Slide 7: Key Factors Sales/Margins
Key Factors Sales/Margins REVENUE GROWTH GROSS MARGIN ADJ. EBITDA MARGIN 23.0% 27.7% 4.8% Inorganic growth due to Whirlpool Challenging pricing environment Lower gross margin transactions Higher raw material costs Higher OPEX Consumer demand normalization in Türkiye Production transformation costs W
Slide 8: Operational Performance
Operational Performance 2Q24 Financial Results Sensitivity: Internal / Non-Personal Data
Slide 9: Sales Bridge and Sales Breakdown by Geography
Sales Bridge Sales Breakdown by Geography 2Q24 1H24 23.0% y/y 120.000 28% 1.1% 11.8%* 32% 100.000 y/y y/y 22% 34% 22% 36% 25.266 80.000 39% 39% 356 5.897 69.539 2Q23 1H23 50.170 60.000 14% 14% 1% 40. 000 3% 1% 3% 1% 3% 4% 17% 1% 4% 16% 15% 4% 32.401 32.045 20.000 4% TRY m 16% 4% - 12% 12% 2Q23 TR Sa
Slide 10: Normalization in consumer demand and sustained strong leadership in Türkiye
Normalization in consumer demand and sustained strong leadership in Türkiye MDA6* Türkiye Revenue Growth ARÇELİK y/y growth (%) TÜRKİYE y/y growth (%) -1% 18,1% 17,5% 15,7% 13,2% 32.401 32.045 No unit growth in MDA6 Unit growth in A/C 1Q24 5M24 Unit decline in TV AIR CONDITIONER** TRYmn ARÇELİK y/y
Slide 11: Significant improvement in Western Europe whereas demand continues to grow in Eastern Europe
Significant improvement in Western Europe whereas demand continues to grow in Eastern Europe 34% 16% Share in total revenue Western Europe Eastern Europe Share in total revenue y/y market growth in unit terms y/y market growth in unit terms MDA6 Market MDA6 Market 5M24 1Q24 5M24 1Q24 • Substantial r
Slide 12: Robust demand in Africa & Middle East region whereas Asia-Pacific facing challenges
Robust demand in Africa & Middle East region whereas Asia-Pacific facing challenges 7% 12% Africa & Middle East Asia-Pacific Share in total Share in total revenue revenue • Revenues generated from Africa & Middle East grew by 36% y/y in • APAC home appliance landscape faces continued challenges caus
Slide 13: Increasing raw material costs in 2Q24
Increasing raw material costs in 2Q24 Average Metal Prices Index - Market Average Plastic Prices Index - Market 2Q24 102 2Q24 167 1Q24 100 1Q24 155 2023 103 2023 147 4Q23 98 4Q23 146 3Q23 99 3Q23 141 2Q23 105 2Q23 147 1Q23 111 1Q23 154 2022 122 2022 175 • Metal raw material prices slightly contracte
Slide 14: Financial Performance
Financial Performance 2Q24 Financial Results Sensitivity: Internal / Non-Personal Data
Slide 15: Summary Financials
Summary Financials TRYmn 2Q24* 2Q23* y/y 1Q24* q/q 6M24* 6M23* y/y Revenue 101.584 82.571 23% 78.339 30% 179.923 157.337 14% Gross Profit 28.117 25.646 10% 23.250 21% 51.367 47.156 9% EBIT 1.616 5.727 (72%) 3.461 (53%) 5.078 8.408 (40%) Adj. EBIT 978 5.727 (83%) 3.461 (72%) 4.527 8.408 (46%) Net Fin
Slide 16: Higher leverage due to increasing net debt and weaker Adj. EBITDA
Higher leverage due to increasing net debt and weaker Adj. EBITDA Net Debt* & Leverage** Debt Currency & Rates Breakdown *** Currency Effective Interest Rate Original Currency TRY Equivalent p.a. (mn) (mn) 90.000 3,45 3,50 TRY 45,1% 22.175 22.175 EUR 5,1% 1.128 39.640 USD 8,3% 266 8.717 80.000 3,00
Slide 17: Key Performance Indicators
Key Performance Indicators Adj. EBITDA Margin Working Capital/Sales* 26,9% 22,1% 2Q23 Operating Non-cash One-off 2Q24 2Q23 2Q24 GP Margin Income Items Adj. CAPEX/Sales** Free Cash Flow 4,5% 3,4% -13.797 TRY mn -17.128 6M23 6M24 2Q23 2Q24 * NWC period end / annualized 6M sales ** 6M CAPEX / 6M sales
Slide 18: Guidance
Guidance 2Q24 Financial Results Sensitivity: Internal / Non-Personal Data
Slide 19: 2024 Guidance
2024 Guidance Initial New Guidance Guidance* Revenue Türkiye (in TRY) Flattish Flattish International (in FX) ≈ 2% ≈ 50% EBITDA Margin ≈ 8% ≈ 6.5%** NWC/Sales < 25% c.22% CAPEX ≈ EUR 300 m ≈ EUR 350 m*** * Whirlpool transactions impact is included. ** Excluding net income from investments and one-of
Slide 20: Efficiency improvements to deliver long-term sustainable growth and profitability
Efficiency improvements to deliver long-term sustainable growth and profitability Investing in technology and AI tools to work in ▪ Driving productivity through organizational restructuring, an agile manner and drive efficiency in all our process integration and optimization operations around the wo
Slide 21: Q&A
Q&A 2Q24 Financial Results Arçelik Investor Relations Sensitivity: Internal / Non-Personal Data
Slide 22: Contacts
Contacts Özkan Çimen Mine Şule Yazgan Delal Alver Sezer Ercan Chief Financial Officer Finance & ERM Capital Markets Compliance Investor Relations (+90) 212 314 34 34 Executive Director Senior Lead Senior Lead (+90) 212 314 30 60 (+90) 212 314 39 56 (+90) 212 705 96 81 www.arcelikglobal.com investorr
Slide 23: Thank You!
Thank You! Investor Relations Sensitivity: Internal / Non-Personal Data