Vestel Elektronik Sanayi Ve Ticaret A.s.BIST: VESTL

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

· Issued by Vestel Elektronik Sanayi Ve Ticaret A.s.

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.

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