3Q 2024 Financial Report

CONTENTS

Pages

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

1-2

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS

3

INTERIM CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

4

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

… 5

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

6

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

7-50

Note 1.

Group's organization and nature of operations

7-8

Note 2.

Basis of presentation of financial information

9-15

Note 3.

Segment reporting

16-20

Note 4.

Cash and cash equivalents

21

Note 5.

Financial borrowings

22-23

Note 6.

Trade receivable and payables

24-25

Note 7. Inventories ……………………

25

Note 8.

Investments accounted using the equity method

26-27

Note 9.

Investment properties

28

Note 10. Right of use assets …………………….……………………………………………………………………. ......29

Note 11. Property, plant and equipments

30

Note 12. Provisions, contingent assets and liabilities

31-33

Note 13. Derrivative instruments

34

Note 14. Assets held for sale

34

Note 15. Capital, reserves and other equity items

35-36

Note 16. Revenue and cost of sales

37

Note 17. Expenses by nature

38

Note 18. Other income and expenses from operations

38

Note 19. Income and expenses from investment activities ……………………………………………………

…..39

Note 20. Financial income and expenses

39

Note 21. Income taxes (including deferred tax assets and liabilities)

40-43

Note 22. Losses per share

43

Note 23. Related party disclosures

44-45

Note 24. Nature and level of risk derived from financial instruments

45-49

Note 25. Financial instruments (fair value and hedge accounting disclosures)

49-50

Note 26. Subsequent events

50

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power

of the TRY at

September 30, 2024 unless otherwise indicated.)

Current period

Prior period

Reviewed

Audited

Assets

Notes 30 September 2024

31 December 2023

Current assets

2,696,935,609

2,830,298,980

Cash and cash equivalents

4

166,607,994

571,036,175

Trade receivables

6

1,294,747,153

1,306,982,482

- Trade receivables from related parties

23

10,753,930

40,837,456

- Trade receivables from third parties

6

1,283,993,223

1,266,145,026

Other receivables

67,551,827

94,096,997

- Other receivables from third parties

67,551,827

94,096,997

Inventories

7

799,251,687

394,201,762

Derivative assets

13

-

17,156

Prepaid expenses

49,985,146

133,818,194

Current income tax assets

27,399,883

32,253,839

Other current assets

168,357,523

297,892,375

Sub-total

2,573,901,213

2,830,298,980

Assets held for sale

14

123,034,396

-

Non-current assets

15,819,448,803

16,105,356,428

Other receivables

1,024,693

1,321,878

- Other receivables from third parties

1,024,693

1,321,878

Investments accounted using the equity method

8

4,028,368,082

4,362,094,696

Investment properties

9

4,024,979,429

4,029,449,234

Tangible assets

11

6,507,540,805

6,545,147,585

Intangible assets

18,250,133

18,756,935

Right of use assets

10

411,712,347

361,674,146

Prepaid expenses

439,848,830

409,538,944

Deferred tax assets

21

387,724,484

377,373,010

Total assets

18,516,384,412

18,935,655,408

Current period

Prior period

Reviewed

Audited

Liabilities

Notes

30 September 2024

31 December 2023

Current liabilities

2,644,747,001

2,550,966,977

Short-term borrowings

5

1,247,335,113

483,793,918

Short-term portion of long-term borrowings

5

228,924,709

484,260,409

Derivative liabilities

13

-

1,184,848

Trade payables

6

1,010,344,698

1,326,591,887

- Trade payables to related parties

23

623,206

4,915,434

- Trade payables to third parties

1,009,721,492

1,321,676,453

Employee benefit obligations

31,832,005

41,942,276

Other payables

14,432,708

16,949,778

- Other payables to third parties

14,432,708

16,949,778

Deferred income

-

41,458,931

Current income tax liability

23,863,948

78,532,710

Short-term provisions

12

22,651,663

44,906,078

- Short-term provisions for employee benefits

19,006,032

41,235,197

- Other short-term provisions

3,645,631

3,670,881

Other current liabilities

65,362,157

31,346,142

Non-current liabilities

1,156,120,328

1,086,152,173

Long-term borrowings

5

213,810,329

383,371,600

Long-term provisions

12

77,181,783

51,764,845

- Provisions for employee termination benefits

77,181,783

51,764,845

Deferred income

Deferred tax liabilities

21

865,128,216

651,015,728

Equity

14,715,517,083

15,298,536,258

Equity holders of the parent

14,715,517,083

15,298,536,258

Paid-in share capital

15

758,500,000

758,500,000

Adjustment to share capital

15

7,510,099,275

7,510,099,275

Share premium/discounts

15

170,093,541

170,093,541

Other comprehensive income/expense not to be reclassified to

profit or loss

821,744,888

867,620,295

- Revaluation and measurement gain / loss

821,744,888

867,620,295

Defined benefit plans re-measurement loss

(157,240,014)

(111,364,607)

Revaluation increase related to tangible assets

978,984,902

978,984,902

Other comprehensive expense to be reclassified to profit/(loss)

(248,256,939)

(217,516,399)

- Currency translation differences

(248,256,939)

(217,516,399)

Restricted reserves

15

566,422,485

564,747,089

Retained earnings

5,540,325,260

4,629,097,088

(Loss)/ profit for the period

(403,411,427)

1,015,895,369

Total liabilities and equity

18,516,384,412

18,935,655,408

Current

Prior period

Current

Prior

period

period

period

Reviewed

Reviewed

Not

Not

reviewed

reviewed

January 1-

January 1-

July 1-

July 1-

September

September

September

September

Notes

30,2024

30, 2023

30, 2024

30, 2023

Profit and loss

Revenue

16

4,523,631,449

6,078,788,208

1,647,667,065

1,846,783,182

Cost of sales (-)

16

(3,419,658,881)

(4,945,090,628)

(1,264,786,680) (1,303,903,408)

Gross profit from commercial activities

1,103,972,568

1,133,697,580

382,880,385

542,879,774

General administrative expenses (-)

(519,133,835)

(463,483,373)

(154,626,804)

(168,347,682)

Marketing expenses (-)

(64,404,123)

(62,178,911)

(21,897,714)

(20,394,650)

Research and development expenses (-)

(42,264,148)

(37,366,137)

(15,382,400)

(12,298,672)

Other operating income

18

96,778,072

181,373,851

18,046,622

36,921,320

Other operating expenses (-)

18

(138,125,192)

(281,464,851)

(38,205,991)

(19,500,602)

Profit/(loss) from investments accounted

using the equity method

8

(303,738,308)

(123,896,551)

(210,461,845)

50,534,415

Operating profit/(loss)

133,085,034

346,681,608

(39,647,747)

409,793,903

Income from investment activities

19

2,758,162

30,662,059

1,271,080

8,897,112

Expense from investment activities (-)

19

(24,113,804)

(8,006,204)

(7,105,182)

(6,977,823)

Operating profit/(loss) before financial

income/expense

111,729,392

369,337,463

(45,481,849)

411,713,192

Financial income

20

86,355,166

248,319,335

15,700,212

26,136,059

Financial expenses (-)

20

(207,577,452)

(324,427,029)

(73,652,928)

(60,302,728)

Monetary (loss)/gain

(143,060,073)

(165,376,488)

(111,823,764)

(7,240,723)

Profit/(loss) before tax from continuing

operations

(152,552,967)

127,853,281

(215,258,329)

370,305,800

Continuing operations tax

income/expense

(250,858,460)

(261,170,268)

(60,934,695)

(326,601,493)

- Current tax income/(expense)

21

(38,825,480)

(156,884,503)

(38,825,480)

(82,634,041)

- Deferred tax income/(expense)

21

(212,032,980)

(104,285,765)

(22,109,215)

(243,967,452)

Loss for the period from continuing

operations

(403,411,427)

(133,316,987)

(276,193,024)

43,704,307

Loss for the period

(403,411,427)

(133,316,987)

(276,193,024)

43,704,307

Attributable to:

Non-controlling interests

-

-

-

-

Equity holders of the parent

(403,411,427)

(133,316,987)

(276,193,024)

43,704,307

Loss per share

22

-Loss per share from continuing operations

(0,532)

(0,176)

(0,364)

0,058

Current

Prior

Current

Prior

period

period

period

period

Not

Not

Reviewed

Reviewed

reviewed

reviewed

January 1 -

January 1 -

July 1-

July 1-

September

September

September

September

Notes

30, 2024

30, 2023

30,2024

30,2023

Loss for the period

(403,411,427) (133,316,987) (276,193,024)

43,704,307

Other comprehensive income:

Items not to be reclassified to profit or loss

(45,875,407)

(53,148,480)

(10,278,800)

(11,941,155)

- Defined benefit plans re-measurement loss

12

(33,087,866)

(43,032,678)

(7,270,692)

(7,251,813)

- Defined benefit plans re-measurement loss,

tax effect

21

8,271,966

8,606,536

1,817,673

1,450,363

- Defined benefit plans re- measurement loss

of investment accounted by equity method

8

(28,079,342)

(23,402,922)

(6,434,375)

(7,674,631)

- Defined benefit plans re- measurement loss

of investment accounted by equity method, tax

effect

8

7,019,835

4,680,584

1,608,594

1,534,926

Items to be reclassified to profit or loss

(30,740,540)

2,327,839

(8,044,620)

(16,156,567)

- Currency translation differences

(21,811,741)

(27,622,802)

(5,425,233)

(13,914,016)

- Cash flow hedging gains of investments

valued by equity method

8

-

8,732,680

-

-

-Currency translation differences gains of

investments accounted using equity method

8

(8,928,799)

22,964,497

(2,619,387)

(2,242,551)

-Cash flow hedging gains of investments

valued by equity method, tax effect

8

-

(1,746,536)

-

-

Other comprehensive loss

(76,615,947)

(50,820,641)

(18,323,420)

(28,097,722)

Total comprehensive loss

(480,027,374) (184,137,628) (294,516,444)

15,606,585

Attributable to:

Non-controlling interest

-

-

-

-

Equity holders of the parent

(480,027,374) (184,137,628) (294,516,444)

15,606,585

Other accumulated

comprehensive income/

expense not to be

classified to profit or loss

Other accumulated

comprehensiveincome/ expense to be

Revaluation gain/(losses)

classified to profit or loss

Accumulated profit

Defined benefit

Adjustment

Share

plans

Revaluation

Paid in share

to share

premium/

remeasurement

increase related to

Currency translation

Restricted

Retained

Equity holders of the

capital

capital

discounts

losses

tangible assets

differences

Hedge reserves

reserves

earnings

Net profit/(loss)

parent

Balance at January 1, 2023

758,500,000

7,510,099,275

170,093,541

(63,634,425)

-

(178,295,763)

(6,986,144)

519,826,029

2,293,048,210

2,963,912,004

13,966,562,727

Dividends

-

-

-

-

-

-

-

-

(582,942,063)

-

(582,942,063)

Transfers

-

-

-

-

-

-

-

45,249,741

2,918,662,263

(2,963,912,004)

-

Total comprehensive loss

-

-

-

(53,148,480)

-

(4,658,305)

6,986,144

-

-

(133,316,987)

(184,137,628)

- Loss for the period

-

-

-

-

-

-

-

-

-

(133,316,987)

(133,316,987)

- Other comprehensive loss

-

-

-

(53,148,480)

-

(4,658,305)

6,986,144

-

-

-

(50,820,641)

Balance at September 30, 2023

758,500,000

7,510,099,275

170,093,541

(116,782,905)

-

(182,954,068)

-

565,075,770

4,628,768,410

(133,316,987)

13,199,483,036

Balance at January 1, 2024

758,500,000

7,510,099,275

170,093,541

(111,364,607)

978,984,902

(217,516,399)

-

564,747,089

4,629,097,088

1,015,895,369

15,298,536,258

Dividends

-

-

-

-

-

-

-

-

(102,991,801)

-

(102,991,801)

Transfers

-

-

-

-

-

-

-

1,675,396

1,014,219,973

(1,015,895,369)

-

Total comprehensive loss

-

-

-

(45,875,407)

-

(30,740,540)

-

-

-

(403,411,427)

(480,027,374)

- Loss for the period

-

-

-

-

-

-

-

-

-

(403,411,427)

(403,411,427)

- Other comprehensive loss

-

-

-

(45,875,407)

-

(30,740,540)

-

-

-

-

(76,615,947)

Balance at September 30, 2024

758,500,000

7,510,099,275

170,093,541

(157,240,014)

978,984,902

(248,256,939)

-

566,422,485

5,540,325,260

(403,411,427)

14,715,517,083

(Amounts expressed in Turkish Lira ("TRY") in terms of purchasing power of

the TRY at

September 30, 2024 unless otherwise indicated.)

Current period

Prior period

Reviewed

Reviewed

January 1 -

January 1 -

Notes

September 30, 2024

September 30, 2023

A. Cash flows from operating activities:

(67,815,439)

1,012,433,974

Profit/(loss) for the period

(403,411,427)

(133,316,987)

- Profit/(loss) for the period from continuing operations

(403,411,427)

(133,316,987)

Adjustment for reconciliation of profit/(loss) for the period

919,215,427

1,024,077,691

Adjustments for depreciation and amortization expenses

17

364,119,252

398,291,734

Adjustments related to provisions

26,023,640

30,663,109

- Adjustments related to provisions (cancellations) for benefits provided to employees

12

24,797,262

30,663,109

-Adjustments related to other provisions

12

1,226,378

-

Adjustments related to impairment (cancellations)

(38,217,535)

(34,018,260)

- Adjustments related to impairment of trade receivables (cancellations)

6

(1,044,378)

(3,130,678)

- Adjustments related to impairment of inventories (cancellations)

7

(37,173,157)

(30,887,582)

Adjustments for interest income and expense

88,876,320

11,263,181

- Adjustments related to interest income

20

(31,612,268)

(116,602,166)

- Adjustments related to interest expenses

20

97,611,836

132,499,765

-Deferred finance expense arising from forward purchases

18

23,707,962

-

-Deferred financial income from deferred payment sale

(831,210)

(4,634,418)

Adjustments related to undistributed profit/losses of investments accounted using the equity method

8

303,738,308

123,896,551

Adjustments to tax expense/income

21

250,858,460

261,170,268

Adjustments for profit/loss on sale of tangible assets

19

1,866,124

(8,172,227)

Adjustments for profit/loss related to sale of investment property

19

197,817

(20,442,844)

Adjustment related to unrealized foreign currency translation differences

500,048,691

490,711,943

Monetary gain/(loss)

(578,295,650)

(229,285,764)

Changes in working capital

(471,047,602)

392,774,240

Adjustments for increase/decrease in trade receivables

13,718,147

347,037,605

Adjustments for increase/decrease in inventories

(358,012,195)

671,397,177

Adjustments for increase/decrease in trade payables

(315,415,979)

(676,385,527)

Adjustments for increase/decrease in deferred income

(41,458,931)

(9,417,243)

Adjusments for increase/decrease in derivative liabilities

(1,167,691)

5,562,565

Adjustments for increase/decrease in prepaid expenses

53,523,165

49,716,641

Adjustments for increase/decrease in other assets related to operations

129,534,852

(35,268,189)

Adjustments for increase in other other receivables

26,842,355

(40,223,775)

Adjustments for increase in other other payables

(2,517,069)

(294,574)

Adjustments for increase/decrease in other liabilities

34,016,015

(57,047,751)

Adjustments for increase / decrease in financial investments

-

136,799,058

Adjustments for increase/decrease in employee benefit obligations

(10,110,271)

898,253

Cash flows from operating activities

44,756,398

1,283,534,944

Tax payments/refunds

(88,640,288)

(178,002,129)

Employee termination benefits paid

12

(23,763,930)

(90,379,396)

Other Cash Outflows

12

(167,619)

(2,719,445)

B. Cash flows from investing activities

(323,951,258)

(101,161,441)

Proceeds from sale of tangible assets

253,731

9,855,099

Cash outflows related to purchase of tangible and intangible assets

(360,089,244)

(292,434,644)

Cash inflows from the sale of investment properties

4,271,987

64,815,938

Interest received

31,612,268

116,602,166

Current period

Current period

Reviewed

Reviewed

January 1 -

January 1 -

Notes

September 30, 2024

September 30, 2023

C. Cash flows from financing activities

138,063,532

(817,421,002)

Cash inflows from borrowings obtained

5

1,642,526,315

619,505,119

Cash outflows related to loan repayments

5

(1,272,487,959)

(748,571,558)

Cash outflows related to debt payments arising from lease agreements

5

(67,319,078)

(18,359,746)

Interest paid

(61,663,945)

(87,052,754)

Dividends paid

(102,991,801)

(582,942,063)

Net increase/decrease in cash and cash equivalents before the impact of currency translation

differences(A+B+C)

(253,703,165)

93,851,531

D. Impact of currency translation differences on cash and cash equivalents

-

-

Net increase/(decrease) in cash and cash equivalents (A+B+C+D)

(253,703,165)

93,851,531

E. Cash and cash equivalents at the beginning of the period

4

571,036,175

1,063,689,641

F. Inflation Effect on Cash and Cash Equivalents

(150,725,016)

(588,546,697)

Cash and cash equivalents at the end of the period (A+B+C+D+E+F)

4

166,607,994

568,994,475