Annual / Quarterly Financial Statement • Mar 11, 2025
Annual / Quarterly Financial Statement
Open in ViewerOpens in native device viewer
Consolidated Financial Statements For the Year Ended 31 December 2024 and Independent Auditor's Report
(Convenience translation of a report and financial statements originally issued in Turkish)
Güney Bağımsız Denetim ve SMMM A.Ş. Maslak Mah. Eski Büyükdere Cad. Orjin Maslak İş Merkezi No: 27 Daire: 57 34485 Sarıyer İstanbul - Türkiye
Tel: +90 212 315 3000 Fax: +90 212 230 8291 ey.com Ticaret Sicil No : 479920 Mersis No: 0-4350-3032-6000017
We have audited the consolidated financial statements of Aydem Yenilenebilir Enerji Anonim Şirketi (the Company) and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with the Turkish Financial Reporting Standards (TFRS).
We conducted our audit in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and Independent Auditing Standards (InAS) which are part of the Turkish Auditing Standards as issued by the Public Oversight Accounting and Auditing Standards Authority of Turkey (POA). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics for Independent Auditors (Code of Ethics) as issued by the POA, and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
| Key Audit Matter | How our audit addressed the key audit matter |
|---|---|
| Valuation of power plants | |
| Power plants comprises 79% of total assets of the Group as at 31 December 2024. The Group measures power plants using the revaluation method as stated in Note 2.8 in the consolidated financial statements; therefore, management makes estimates and uses assumptions to determine those fair values. The fair value is measured, as explained in Note 2.8 to the consolidated financial statements, based on appraisal reports by independent and external appraisers. For the valuations, estimates are made of the expected future cash flows taking into account the related risks. Detailed explanations on property, plant and equipment are provided in Note 2.8 and Note 9.1 to the consolidated financial statements. Since the valuation of power plants is complex and highly dependent on estimates and assumptions, and also given the magnitude of the amounts involved, we consider the valuation of power plants as a key audit matter. |
Among the other audit procedures we performed, we assessed the qualifications, competencies and independence of the professional appraisers engaged by the management. We have evaluated the appropriateness of the information and assumptions used in the valuations. These include the estimates by the external appraisal firms (such as the market price, production volume and discount rate). For this assessment, we involved valuation experts from another entity that we have engagemed with to support our audit. We assessed whether the valuation methods as applied by appraisers are acceptable for the valuation of the power plants. In addition, we have assessed the appropriateness of the disclosures in the consolidated financial statements and notes regarding the above mentioned accounting policy, estimates used and the valuation methodology and their conformity to TFRS. |
| Key Audit Matter | How our audit addressed the key audit matter |
|---|---|
| Cash Flow Hedge Transaction | |
| As stated in Note 2.9, As of 31 December 2024, the Group used its bond amounting to USD 574.107.000 as a hedging instruments to hedge against the exchange rate risk resulting from the highly probable sales income earned in the scope of Renewable Energy Sources Support Mechanism ("YEKDEM") and bilateral agreements, and implemented cash flow hedge accounting for highly-probable YEKDEM and bileteral agreement sales as a result of efficiency tests carried out within this scope. The criteria for the application of the hedge accounting include defining, documenting and regularly testing the effectiveness of the hedge accounting transactions. Due the fact that hedge accounting has complicated structure and requires complex calculations, we considered this to be one of the key audit matters. |
Among the other audit procedures we performed, we assessed the qualifications, competencies and independence of the professional appraisers engaged by the management. We have evaluated the appropriateness of the information and assumptions used in the valuations. These include the estimates by the external appraisal firms (such as the market price, production volume and discount rate). For this assessment, we involved valuation experts of a firm which is in our audit network to support our audit. We assessed whether the valuation methods as applied by appraisers are acceptable for the valuation of the power plants. In addition, we have assessed the appropriateness of the disclosures in the consolidated financial statements and notes regarding the above mentioned accounting policy, estimates used and the valuation methodology and their conformity to TFRS. |
| Key Audit Matter | How our audit addressed the key audit matter |
|---|---|
| Application of the hyperinflationary accounting |
|
| As stated in Note 2.2 to the consolidated financial statements, the Group has started to apply "TAS 29 Financial Reporting in Hyperinflation Economies" since the functional currency of the Group (Turkish Lira) is the currency of a hyperinflationary economy as per TAS 29 as of December 31, 2023. In accordance with TAS 29, consolidated financial statements and corresponding figures for previous periods have been restated for the changes in the general purchasing power of Turkish Lira and, as a result, are expressed in terms of purchasing power of Turkish Lira as of the reporting date. In accordance with the guidance in TAS 29, the Group utilised the Turkey consumer price indices to prepare inflation adjusted financial statements. The principles applied for inflation adjustment is explained in Note 2.1. Given the significance of the impact of TAS 29 on the reported result and financial position of the Group, we have assessed the hyperinflation accounting as a key audit matter. |
Our audit procedures included the following; • We inquired management responsible for financial reporting on the principles, which they have considered during the application of TAS 29, identification of non monetary accounts and tested TAS 29 models designed, • We have tested the inputs and indices used, to ensure completeness and accuracy of the calculations, • We have audited the restatements of corresponding figures as required by TAS 29, • We assessed the adequacy of the disclosures in inflation adjusted financial statements for compliance with TAS 29. |
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
In an independent audit, our responsibilities as the auditors are:
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and InAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and InAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The name of the engagement partner who supervised and concluded this audit is Onur Ünal.
11 March 2025 İstanbul, Türkiye
Consolidated Statement of Financial Position Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flow Notes to the Consolidated Financial Statements
Consolidated statement of financial position as at 31 December 2024
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Audited | Audited | ||
|---|---|---|---|
| Notes | 31 December 2024 | 31 December 2023 | |
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | 3 | 1,744,596,487 | 2,011,698,240 |
| Financial investments | 27 | 1,628,681,336 | 904,719,422 |
| Trade receivables | 3,161,663,600 | 2,889,128,164 | |
| - Due from related parties | 5 | 3,131,654,175 | 2,784,914,519 |
| - Due from third parties | 6 | 30,009,425 | 104,213,645 |
| Other receivables | 155,067,728 | 947,077,097 | |
| - Due from related parties | 5 | 109,766,904 | 926,252,068 |
| - Due from third parties | 7 | 45,300,824 | 20,825,029 |
| Inventories | 8 | 20,405,704 | 30,422,646 |
| Prepaid expenses | 26 | 107,075,232 | 58,104,084 |
| Other current assets | 13.1 | 156,844 | 61,487 |
| Total current assets | 6,817,646,931 | 6,841,211,140 | |
| Non-current assets: | |||
| Other receivables | 5,396,665 | 4,709,745 | |
| - Due from third parties | 7 | 5,396,665 | 4,709,745 |
| Property, plant and equipment | 9.1 | 46,553,720,961 | 70,180,914,792 |
| Right of use assets | 9.2 | 335,480,580 | 366,896,612 |
| Intangible assets | 10 | 2,384,219,886 | 2,449,232,654 |
| Prepaid expenses | 26 | 288,225,069 | 393,454,785 |
| Other non-current assets | 13.2 | 36,873,586 | 47,974,011 |
| Total non-current assets | 49,603,916,747 | 73,443,182,599 | |
| Total assets | 56,421,563,678 | 80,284,393,739 |
Consolidated statement of financial position as at 31 December 2024
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Audited | Audited | ||
|---|---|---|---|
| Notes | 31 December 2024 | 31 December 2023 | |
| LIABILITIES | |||
| Current liabilities: | |||
| Short-term portion of long-term financial | 23.1 | 6,337,816,887 | 2,158,530,424 |
| liabilities | |||
| Lease liabilities | 23.2 | 32,230,199 | 24,003,392 |
| Trade payables | 229,450,690 | 582,137,987 | |
| - Due to related parties | 5 | 42,222,472 | 16,510,831 |
| - Due to third parties | 6 | 187,228,218 | 565,627,156 |
| Liabilities for employee benefits | 12 | 12,520,061 | 16,985,904 |
| Other payables | 236,740 | 340,841 | |
| - Due to third parties | 7 | 236,740 | 340,841 |
| Current provisions | 102,704,474 | 83,642,402 | |
| - Provisions for employee benefits | 11.1 | 87,203,840 | 63,818,505 |
| - Other short-term provisions | 11.1 | 15,500,634 | 19,823,897 |
| Other current liabilities | 13.3 | 108,369,687 | 147,137,604 |
| Total current liabilities | 6,823,328,738 | 3,012,778,554 | |
| Non-current liabilities: | |||
| Financial liabilities | 23.1 | 17,958,797,217 | 26,859,640,646 |
| Lease liabilities | 23.2 | 42,307,373 | 54,673,615 |
| Other payables | - | 72,770,079 | |
| - Due to related parties | 5 | - | 72,770,079 |
| Non-current provisions | 88,504,467 | 98,987,807 | |
| - Provisions for employee benefits | 11.4 | 88,504,467 | 98,987,807 |
| Deferred tax liabilities | 22 | 4,143,548,414 | 8,863,219,543 |
| Total non-current liabilities | 22,233,157,471 | 35,949,291,690 | |
| Total liabilities | 29,056,486,209 | 38,962,070,244 |
Consolidated statement of financial position as at 31 December 2024
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Audited | Audited | ||
|---|---|---|---|
| 31 December | 31 December | ||
| Notes | 2024 | 2023 | |
| EQUITY | |||
| Paid-in capital | 14 | 705,000,000 | 705,000,000 |
| Adjustment to share capital | 14 | 6,560,967,699 | 6,560,967,699 |
| Share premiums | 14 | 761,686,001 | 761,686,001 |
| Treasury shares | 14 | (169,191,401) | (172,523,256) |
| Restricted reserves | 14 | 237,952,730 | 199,118,506 |
| Other comprehensive income that will not be | |||
| reclassified to profit or loss in subsequent periods | 100,878,943 | 1,937,959,219 | |
| - Gains on revaluation of property, plant and | |||
| equipment | 196,061,828 | 2,022,347,324 | |
| - Actuarial losses on defined benefit plans | (95,182,885) | (84,388,105) | |
| Other comprehensive income that may be | |||
| reclassified to loss or profit it subsequent periods | (17,730,537,690) | (17,643,886,282) | |
| - Reserve of losses on cash flow hedge | (17,730,537,690) | (17,643,886,282) | |
| Retained earnings | 48,668,599,552 | 50,822,195,039 | |
| Net (loss) / profit for the period | (11,770,278,365) | (1,848,193,431) | |
| Equity attributable to equity holders of the | |||
| parent | 27,365,077,469 | 41,322,323,495 | |
| Total equity | 27,365,077,469 | 41,322,323,495 | |
| Total equity and liabilities | 56,421,563,678 | 80,284,393,739 |
Consolidated statement of profit or loss and other comprehensive income for the year period ended 31 December 2024
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Audited | Audited | ||
|---|---|---|---|
| 1 January – | 1 January – | ||
| Notes | 31 December 2024 | 31 December 2023 | |
| LOSS OR PROFIT STATEMENT | |||
| Revenue | 15 | 6,583,577,587 | 9,180,783,497 |
| Cost of sales | 16 | (4,977,046,462) | (5,213,430,269) |
| Gross profit | 1,606,531,125 | 3,967,353,228 | |
| General administrative expenses | 17 | (643,674,813) | (911,791,458) |
| Other operating income | 19 | 989,376,988 | 1,519,909,913 |
| Other operating expenses | 19 | (17,312,659) | (161,211,658) |
| Operating profit | 1,934,920,641 | 4,414,260,025 | |
| Income from investing activities | 21 | 72,837,321 | 441,355,938 |
| Expense from investing activities | 21 | (19,085,752,527) | (5,289,447,370) |
| (Loss) / Profit before finance income/(expense) | (17,077,994,565) | (433,831,407) | |
| Finance income | 20 | ||
| Finance expenses | 20 | 948,134,890 | 1,507,182,208 |
| Gains/(losses) on net monetary position | 29 | (7,088,688,620) | (19,048,931,971) |
| (Loss)/Gain before tax | 7,330,445,969 (15,888,102,326) |
13,686,945,664 (4,288,635,506) |
|
| Tax income/(expense) | 4,117,823,961 | 2,440,442,075 | |
| - Deferred tax income/(expenses) | 22 | 4,117,823,961 | 2,440,442,075 |
| Net profit/(loss) for the period | (11,770,278,365) | (1,848,193,431) | |
| (Loss)/Gain attributable to | |||
| Equity holders of the parent | (11,770,278,365) | (1,848,193,431) | |
| (Loss)/Gain earnings per share | |||
| - (Loss)/Gain earnings per share | 25 | (16.84) | (2.64) |
| OTHER COMPREHENSIVE INCOME/(LOSS) STATEMENT |
|||
| Other comprehensive income that will not be | |||
| reclassified to profit or loss | (1,718,890,095) | 195,383,323 | |
| - Increases/(decreases) in property, plant and | (2,277,460,420) | 309,253,147 | |
| equipment revaluation - Total tax on revaluation increases on property, |
|||
| plant and equipment | 569,365,105 | (77,313,287) | |
| - Actuarial losses on defined benefit plans | 11.4 | (14,393,040) | (48,742,049) |
| - Total tax on remeasurement losses / gains on defined benefit plans |
3,598,260 | 12,185,512 | |
| Other comprehensive income that will be | |||
| reclassified to profit or loss | (86,651,408) | 812,553,707 | |
| - Reserve of losses on cash flow hedge | 23.1 | (115,535,211) | 1,083,404,943 |
| - Tax related to other comprehensive income that | |||
| will be reclassified to profit or loss | 28,883,803 | (270,851,236) | |
| Other comprehensive (loss) / income | (1,805,541,503) | 1,007,937,030 | |
| Total comprehensive (loss) / income | (13,575,819,868) | (840,256,401) |
Consolidated statement changes in equity for the year period ended 31 December 2024
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Other comprehensive income that will not be reclassified to (loss) or profit |
Other comprehensive income that will be reclassified to (loss) or profit |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Paid-in capital |
Adjustment to share capital |
Share premiums |
Treasury shares |
Restricted reserves |
Gain/(loss) on revaluation of property, plant and equipment |
Actuarial (loss)/gain on defined benefit plans |
Reserve of (losses)/gains on cash flow hedge |
Retained earnings |
Net profit/ (loss) for the period |
Total equity | |
| Balance as of 1 January 2023 | 705,000,000 | 6,560,967,699 | 761,686,001 | - | 26,595,250 | 1,866,157,021 | (47,831,568) | (18,456,439,989) | 43,738,978,404 | 7,179,990,334 | 42,335,103,152 |
| Transfers | - | - | - | - | - | - | - | - | 7,179,990,334 | (7,179,990,334) | - |
| Net profit/(loss) for the period | - | - | - | - | - | - | - | - | - | (1,848,193,431) | (1,848,193,431) |
| Other comprehensive income/(loss) | - | - | - | - | - | 231,939,860 | (36,556,537) | 812,553,707 | - | - | 1,007,937,030 |
| Total comprehensive income/(loss) | - | - | - | - | - | 231,939,860 | (36,556,537) | 812,553,707 | - | (1,848,193,431) | (840,256,401) |
| Transactions with own shares * | - | - | - | (172,523,256) | 172,523,256 | - | - | - | (172,523,256) | - | (172,523,256) |
| Depreciation transfers related to revaluation of property, plant and equipment |
- | - | - | - | - | (75,749,557) | - | - | 75,749,557 | - | - |
| Balance as of 31 December 2023 | 705,000,000 | 6,560,967,699 | 761,686,001 | (172,523,256) | 199,118,506 | 2,022,347,324 | (84,388,105) | (17,643,886,282) | 50,822,195,039 | (1,848,193,431) | 41,322,323,495 |
| Balance as of 1 January 2024 | 705,000,000 | 6,560,967,699 | 761,686,001 | (172,523,256) | 199,118,506 | 2,022,347,324 | (84,388,105) | (17,643,886,282) | 50,822,195,039 | (1,848,193,431) | 41,322,323,495 |
| Transfers | - | - | - | - | - | - | - | - | (1,848,193,431) | 1,848,193,431 | - |
| Dividends | - | - | - | 3,331,855 | 38,834,224 | - | - | - | (423,592,237) | - | (381,426,158) |
| Net profit/(loss) for the period | - | - | - | - | - | - | - | - | - | (11,770,278,365) | (11,770,278,365) |
| Other comprehensive income/(loss) | - | - | - | - | - | (1,708,095,315) | (10,794,780) | (86,651,408) | - | - | (1,805,541,503) |
| Total comprehensive income/(loss) | - | - | - | - | - | (1,708,095,315) | (10,794,780) | (86,651,408) | - | (11,770,278,365) | (13,575,819,868) |
| Depreciation transfers related to |
|||||||||||
| revaluation of property, plant and equipment |
- | - | - | - | - | (118,190,181) | - | - | 118,190,181 | - | - |
| Balance as of 31 December 2024 | 705,000,000 | 6,560,967,699 | 761,686,001 | (169,191,401) | 237,952,730 | 196,061,828 | (95,182,885) | (17,730,537,690) | 48,668,599,552 | (11,770,278,365) | 27,365,077,469 |
* The Company has planned to make its own share repurchase transactions in order to protect its shareholders, to contribute to the formation of a stable share price in line with its real value, and to preserve the confidence in the Company, in line with the CMB's statements on 14 February 2022, dated 21 July 2016, 25 July 2016 and 23 March 2020. It has been unanimously approved by the Board of Directors and the maximum number of shares that can be repurchased has been determined as 20,000,000 with a nominal value of TL 20,000,000. The Company Management has evaluated that it will not have any consequences against the Company and the investors and that the use of the Company's existing resources for repurchase will not affect the Company's cash needs. In this context, the fund to be allocated for repurchase has been determined as a maximum of TL 170,000,000, to be met from the cash generated from the Company's activities and its current resources.
Within the scope of the share buyback transactions initiated by the decision of the Board of Directors, 6,105,026 shares have been bought back in the amount of TL 172,523,256 by our Company for the period ended 31 December 2023. The total amount of purchases provided from the internal resources of the company is 172,523,256 TL and its share in the Company's capital is 0.8660%. The Company has shown TL 172,523,256 in the "Repurchased Shares (-)" account, which was paid in connection with the repurchase of shares.
In accordance with Article 520 of the Law No. 6102, the Company has set aside a reserve fund for the shares bought back in an amount that meets the acquisition value. Since these reserves are dissolved when the repurchased shares are transferred or cancelled, they are shown in the "Restricted Reserves Set aside from Profit" item.
Consolidated statement of cash flows for the year period ended 31 December 2024
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Audited | Audited | ||
|---|---|---|---|
| 1 January | 1 January | ||
| 31 December | 31 December | ||
| Notes | 2024 | 2023 | |
| A. CASH FLOWS FROM OPERATING ACTIVITIES | 3,632,587,702 | 6,368,196,105 | |
| Net profit/(loss) for the period | (11,770,278,365) | (1,848,193,431) | |
| Net profit/(loss) for the period adjustment to reconcile | 15,054,639,767 | 8,782,150,470 | |
| Adjustment related to amortization and depreciation | 9, 10 | 3,008,793,094 | 3,074,825,826 |
| Adjustment related to other provisions | 6 | 19,442 | (181,818) |
| Adjustment related to provisions for employee benefits | 11 | 78,089,699 | 65,177,080 |
| Adjustment related to provisions for ligitations Adjustment related to incomes of interest |
11 20 |
1,989,177 (455,520,383) |
2,183,378 (527,874,303) |
| Adjustment related to expenses of interest | 23 | 2,198,126,762 | 2,524,836,353 |
| Adjustment related to tax income / expense | 22 | (4,117,823,961) | (2,440,442,075) |
| Adjustment related to unrealized foreign exchange loss | 23.1 | 4,711,387,089 | 10,417,804,502 |
| Adjustment related to gains of sales of tangible and intangible assets, net | 4,722,543 | 106,579,804 | |
| Adjustment to related party to interest incomes / expenses from related | |||
| parties | 20 | (148,334,404) | (121,125,742) |
| Adjustments related to fair value loss | 18,647,937,382 | 4,963,694,772 | |
| Other adjustments to reconcile net income / expense | 477,478,434 | 17,520,787 | |
| Monetary gains/(losses) on net monetary position | (9,352,225,107) | (9,300,848,094) | |
| Changes in working capital | 364,493,078 | (554,678,252) | |
| Related to increase / decrease in restricted accounts | (22,698,542) | 75,189,696 | |
| Related to increase / decrease in trade receivables from third parties | 74,184,778 | 66,536,082 | |
| Related to increase / decrease in trade receivables from related parties | (198,405,252) | 146,928,531 | |
| Related to increase / decrease in other receivables | 897,420,309 | (236,609,143) | |
| Related to increase / decrease in the inventories | 10,016,942 | (347,739) | |
| Related to increase / decrease in trade payables to third parties | (378,398,938) | (546,423,146) | |
| Related to increase / decrease in trade payables to related parties Related to increase / decrease in other payables |
25,711,641 (38,872,017) |
(1,864,715) (67,146,398) |
|
| Related to increase / decrease in liabilities for employee benefits | (4,465,843) | 9,058,580 | |
| Taxes paid | - | - | |
| Employee termination benefit paid | 11.4 | (16,266,778) | (11,082,682) |
| B. CASH FLOWS FROM INVESTING ACTIVITIES | (831,418,587) | (2,375,900,563) | |
| Interest received Inflow related to sales of tangible and intangible assets |
9, 21 | 466,428,590 93,037,742 |
612,499,805 435,875,977 |
| Outflow related to purchase of tangible and intangible assets | (690,447,141) | (3,132,043,218) | |
| Cash inflows arising from sale of shares or debt instruments of other | |||
| businesses or funds | 218,686,799 | 1,135,553,661 | |
| Cash outflows arising from acquisition of shares or debt instruments of | |||
| other businesses or funds | (919,124,577) | (1,427,786,788) | |
| C. CASH FLOWS FROM FINANCING ACTIVITIES | (2,403,229,961) | (3,718,158,702) | |
| Cash inflow related to proceeds from borrowings Cash outflow related to lease liabilities |
23.1 23.2 |
- (51,557,437) |
(1,205,063,868) (59,545,584) |
| Dividends paid | (381,426,158) | - | |
| Cash inflows for the sale of own shares | - | - | |
| Cash outflows for the acquisition of own shares | - | (172,523,256) | |
| Interest paid | 23.1 | (1,970,246,366) | (2,281,025,994) |
| NET INCREASE/(DECREASE) IN CASH AND CASH | |||
| EQUIVALENTS (A+B+C) | 397,939,154 | 274,136,840 | |
| D. EFFECT OF NET MONETARY POSITION DIFFERENCES GAINS (LOSSES) ON CASH AND CASH EQUIVALENTS |
(665,040,907) | (1,340,335,336) | |
| E. CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD | 2,011,698,240 | 3,077,896,736 | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE | |||
| PERIOD (A+B+C+D+E) | 1,744,596,487 | 2,011,698,240 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Aydem Yenilenebilir Enerji Anonim Şirketi ("Aydem Yenilenebilir" or "the Company") was established on 6 July 1995 as Bereket Enerji Üretim Otoprodüktör Grubu Sanayi ve Ticaret Anonim Şirketi. The Company first changed its corporate name to Bereket Enerji Üretim Anonim Şirketi on 21 May 2004 and then on 27 December 2019, the Company changed again its corporate name to Aydem Yenilenebilir Enerji Anonim Şirketi. In 2019, the Company has been restructured in a way that it operates solely in renewable energy generation business. In relation to the restructuring process, Aydem Yenilenebilir has merged with all of its subsidiaries which are operating in renewable energy generation business and disposed the non-relevant operations and subsidiaries and became a pure renewable energy generation Company. The Company has started to be traded on Borsa Istanbul as of 29 April 2021.
In these consolidated financial statements, Aydem Yenilenebilir, its subsidiaries and its associate are referred to together as "the Group".
Aydem Yenilenebilir generates electricity from local renewable sources. The Group installed its first hydroelectric power plant ("HPP") on the Bereket Çayı stream and continues to generate electricity with hydro, wind ("WPP"), solar power plant ("SPP") and geothermal ("GPP") in different regions of the country.
The address of the registered office of the Company is as follows:
Adalet Mah. Hasan Gönüllü Bulvarı No:15/1 Merkezefendi, Denizli.
As of 31 December 2024 and 31 December 2023, the Group's subsidiaries ("subsidiaries") and their main business activities are as follows:
| Ownership Percentage | ||||
|---|---|---|---|---|
| Subsidiaries | Location | Main Activities | 31 December | 31 December |
| 2024 | 2023 | |||
| Ey-Tur Enerji Elektrik Üretim ve | ||||
| Ticaret Ltd. Şti. ("Ey-tur") /HPP | Kağızman/Kars | Electricity generation by hydropower | 100% | 100% |
| Başat Elektrik Üretim ve Ticaret | ||||
| Ltd. Şti. ("Başat") / HPP | Üzümlü/Erzincan Electricity generation by hydropower | 100% | 100% | |
| Sarı Perakende Enerji Satış ve | ||||
| Ticaret A.Ş. ("Sarı Perakende") | İzmir | Trading of electricity | 100% | 100% |
| Akköprü Yenilenebilir Enerji A.Ş. | ||||
| ("Akköprü HPP") * | Muğla | Electricity generation by hydropower | 100% | 100% |
* Akköprü HPP was established on 15 October 2021. The Group was awarded the Akköprü HPP with a capacity of 115 MW in the tender held by The Republic of Turkey Prime Ministry Privatization administration on 23 September 2021. However, the tender was cancelled on 19 January 2022 with the President's Decision and this decision was notified to Company on 24 January 2022.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 31 December 2023, the number of employees of the Company and its subsidiaries and its associate are as shown in the table below:
| The Company and its subsidiaries | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Aydem Yenilenebilir | 553 | 567 |
| Sarı Perakende | - | - |
| Ey-Tur | - | - |
| Başat | - | - |
| Akköprü | - | - |
| Total | 553 | 567 |
The Group is subject to the regulation and board decisions communiques issued by the Energy Market Regulatory Authority (EMRA) and obliged to carry out electricity generation and sales activities in accordance with the Electricity Market Law No.6446 dated 14 March 2013 which entered into force with the Official Gazzette No.28603 dated 30 March 2013.
As of 31 December 2024 and 2023, the composition of shareholders and their respective percentage of ownership can be summarized as follows:
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Shareholders | TL | % | TL | % |
| Aydem Enerji Yatırımları A.Ş.* |
574,975,680 | 81.56% | 574,975,680 | 81.56% |
| Publicly traded | 130,000,000 | 18,44% | 130,000,000 | 18,44% |
| Others | 24,320 | 0.00% | 24,320 | 0.00% |
| Total paid in capital | 705,000,000 | 100% | 705,000,000 | 100% |
| Adjustment to share | ||||
| capital ** | 6,560,967,699 | 6,560,967,699 | ||
| Total capital | 7,265,967,699 | 7,265,967,699 |
* Aydem Enerji Yatırımları A.Ş. is controlled by Aydem Holding A.Ş.
** Adjustment to share capital represents the restatement effect of cash and cash equivalent contributions to share capital restated for the effects of inflation. Adjustment to share capital is not available for any other use except to be added to share capital.
As of 29 April 2021, the company started to be traded on Borsa Istanbul - Star Market.
Consolidated financial statements prepared as of 31 December 2024 were approved for publication by the Board of Directors on 11 March 2025. The General Assembly have the right to amend the consolidated financial statements.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The accompanying consolidated financial statements are prepared in accordance with Turkish Financial Reporting Standards ("TFRS") published by Public Oversight Accounting and Auditing Standards Authority ("POA") as set out in the Communiqué numbered II-14.1 "Communiqué on Principles of Financial Reporting in Capital Markets" published in the Official Gazette. TFRSs consist of standards and interpretations which are published as Turkish Accounting Standards ("TAS"), Turkish Financial Reporting Standards, interpretations of TAS and interpretations of TFRS.
The consolidated financial statements are presented in accordance with the TFRS Taxonomy developed based on the Illustrative Financial Statements and User Guide published in the Official Gazette numbered 31973 on 4 October 2022.
The Group and its subsidiaries and associate maintain their books of accounts and prepare their statutory financial statements in accordance with the Turkish Commercial Code ("TCC"), tax legislation, the Uniform Chart of Accounts issued by the Ministry of Finance.
With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on November 23, 2023, entities applying TFRSs have started to apply inflation accounting inaccordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after December 31, 2023
TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy.
According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of December 31, 2023, on the purchasing power basis as of December 31, 2024.
Pursuant to the decision of the Capital Markets Board (CMB) dated December 28, 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29 starting from their annual financial reports for the periods ending on December 31, 2023.
The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute (TÜİK). As of December 31, 2024, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Financial reporting in hyperinflationary economy (continued)
| Three-year cumulative | |||
|---|---|---|---|
| Date | Index | Adjustment coefficients | inflation rates |
| 31 December 2024 | 2,684.55 | 1.00000 | %291 |
| 31 December 2023 | 1,859.38 | 1.44379 | %268 |
| 31 December 2022 | 1,128.45 | 2.37897 | %156 |
The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows:
Current period consolidated financial statements prepared in TRY are expressed in terms of the purchasing power at the balance sheet date, and amounts from previous reporting periods are also adjusted and expressed in terms of the purchasing power at the end of the reporting period.
Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed their recoverable amount or net realizable value, the provisions of IAS 36 "Impairment of Assets" and IAS 2 "Inventories" are applied, respectively.
Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements.
The impact of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary gain/(loss) account in the consolidated income statement. (Note 29)
The Group has presented its consolidated financial statements in TL, which is the functional currency of the Company and its subsidiaries as well as its associate.
The preparation of the Group's consolidated financial statements, transactions in foreign currencies (currencies other than TL) are recorded based on the exchange rates on the transaction date. Monetary assets and liabilities indexed to foreign currency in the consolidated statement of financial position are translated into TL using the exchange rates valid on the date of the statement of financial position. Nonmonetary items recorded in foreign currency that are monitored at fair value are translated into TL using the exchange rates on the date the fair value is determined. Non-monetary items in foreign currency measured in terms of historical cost are not subject to re-translation. Income or expense arising from the adjustments or translations of items in foreign currency are included in the statement of profit or loss and other comprehensive income.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Consolidated financial statements include the financial statements of the company and its subsidiaries as of 31 December 2024. Subsidiaries are companies over which the Group has direct or indirect control over their operations. Control is provided if the Group meets the following conditions:
• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
If a situation or event occurs that could cause a change in at least one of the criteria listed above, the Group re-evaluates whether it has control over its investment.
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
• Events and conditions that may indicate whether the Group has the power to decide on management of operations (including voting at previous general assembly meetings)
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of TFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in accordance with TFRS 9. Other contingent consideration that is not within the scope of TFRS 9 is measured at fair value at each reporting.
Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. Associates are accounted for equity method in the consolidated financial statements. Under equity method, investment in an associate is initially recognised at cost. After initial recognition, Group's share of the profit or loss of the investee, is recorded to the financial statements by increasing or decreasing the net book value. Group's share of the profit or loss and other comprehensive income of equity-accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.
In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate or joint venture.
When the Group's share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, including any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.
The aggregate of the Group's share of profit or loss of an associate is shown on the face of the statement of profit or loss within operating profit when the associate's main course of business is renewable energy generation and represents profit or loss after tax.
The financial statements of the associate are prepared for the same reporting period as the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognises the loss within 'Share of profit of an associate' in the statement of profit or loss.
For each business combination, the Group elects to measure any non-controlling interests in the acquiree either:
Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners in their capacity as owners. Accordingly, in the case of additional share purchases from and sales to non-controlling interests, the difference between the acquisition cost and the carrying amount of the net assets of the subsidiary in proportion to the acquired interest is recognized in equity. No adjustments are made to goodwill and no gain or loss is recognised in profit or loss.
For the accounting of business combinations under common control, assets and liabilities subject to business combination are included in the consolidated financial statements with carrying values of historical TFRS financial statements, which were prepared for the purpose of consolidation of the ultimate parents' consolidated financial statements. The financial statements of the acquired entities have been consolidated from the beginning of the financial year in which the business combination occurs. Prior period financial statements have been restated in the same manner for comparability purposes. As a result of these transactions, no goodwill or negative goodwill has been calculated. Any difference between the consideration paid and the share capital of the acquired entity are accounted under equity as "Share Premium / Discount".
During the preparation of the consolidated financial statements, unrealized gains and losses arising from intra-group transactions between entities included in the consolidated financial statements, intra-group balances and intra-group transactions are eliminated. Gains and losses arising from the transactions between the associate and the parent company and the consolidated subsidiaries of the parent company and jointly controlled entities are offset against the parent company's interest in the associate. Unrealized losses are eliminated in the same manner as unrealized gains, unless there is evidence of impairment.
Upon the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any noncontrolling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained.
The consolidated financial statements have been prepared in accordance with the going concern principle.
The accompanying consolidated financial statements are prepared comparatively to present the tendency in the financial position, financial performance and cash flows of the Group. If necessary, in order to meet the consistency with the presentation of the financial statements in the current period, comparative information is reclassified and material differences are explained in related notes.
As of 31 December 2023, the Group reclassified its tax expense amounting to TL 6,969,516,462 to monatery gain loss
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The accounting policies adopted in preparation of the consolidated financial statements as of 31 December 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2024 and thereafter. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.
In March 2020 and January 2023, POA issued amendments to TAS 1 to specify the requirements for classifying liabilities as current or non-current. According to the amendments made in January 2023 if an entity's right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period ("future covenants"), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period. In addition, January 2023 amendments require an entity to provide disclosure when a liability arising from a loan agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance with future covenants within twelve months. This disclosure must include information about the covenants and the related liabilities. The amendments clarify that the requirement for the right to exist at the end of the reporting period applies to covenants which the entity is required to comply with on or before the reporting date regardless of whether the lender tests for compliance at that date or at a later date. The amendments also clarified that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. The amendments must be applied retrospectively in accordance with TAS 8. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In January 2023, POA issued amendments to TFRS 16. The amendments specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. In applying requirements of TFRS 16 under "Subsequent measurement of the lease liability" heading after the commencement date in a sale and leaseback transaction, the seller lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee determining 'lease payments' that are different from the general definition of lease payments in TFRS 16. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with TAS 8. A seller-lessee applies the amendments retrospectively in accordance with TAS 8 to sale and leaseback transactions entered into after the date of initial application of TFRS 16.
The amendments issued by POA in September 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by TFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective.
In December 2017, POA postponed the effective date of this amendment made to TFRS 10 and TAS 28 indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. Certain changes in the estimates of future cash flows and the risk adjustment are also recognised over the period that services are provided. Entities will have an option to present the effect of changes in discount rates either in profit and loss or in OCI. The standard includes specific guidance on measurement and presentation for insurance contracts with participation features. In accordance with amendments issued by POA in December 2021, entities have transition option for a "classification overlay" to avoid possible accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented on initial application of TFRS 17.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
In addition, according to the amendments published by the POA in December 2021, businesses have the transition option to "overlap the classification" in order to eliminate possible accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented when IFRS 17 is first applied.
The mandatory effective date of the Standard for the following entities has been postponed to accounting periods beginning on or after January 1, 2026 with the announcement made by the POA:
POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. The mandatory effective date of the Standard postponed to accounting periods beginning on or after January 1, 2026 with the announcement made by the POA.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In May 2024, POA issued amendments to TAS 21. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted but will need to be disclosed. When applying the amendments, an entity cannot restate comparative information.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In September 2023, POA issued amendments to TAS 12, which introduce a mandatory exception in TAS 12 from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that TAS 12 applies to income taxes arising from tax laws enacted or substantively enacted to implement the Pillar Two Model Rules published by the Organization for Economic Cooperation and Development (OECD). The amendments also introduced targeted disclosure requirements for entities affected by the tax laws. The temporary exception from recognition and disclosure of information about deferred taxes and the requirement to disclose the application of the exception apply immediately and retrospectively upon issue of the amendments.
The following two amendments to IFRS 9 and IFRS 7 and Annual Improvements to IFRS Accounting Standards as well as IFRS 18 and IFRS 19 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Group will make the necessary changes to its consolidated financial statements after the amendments and new Standard are issued and become effective under TFRS.
In May 2024, IASB issued amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7). The amendment clarifies that a financial liability is derecognised on the 'settlement date'. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of non-recourse assets and contractually linked instruments. Additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income are added with the amendment.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards – Volume 11, amending the followings:
IFRS 1 First-time Adoption of International Financial Reporting Standards – Hedge Accounting by a First-time Adopter: These amendments are intended to address potential confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge accounting in IFRS 9.
IFRS 7 Financial Instruments: Disclosures – Gain or Loss on Derecognition: The amendments update the language on unobservable inputs in the Standard and include a cross reference to IFRS 13.
IFRS 9 Financial Instruments – Lessee Derecognition of Lease Liabilities and Transaction Price: IFRS 9 has been amended to clarify that, when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply derecognition requirement of IFRS 9 and recognise any resulting gain or loss in profit or loss. IFRS 9 has been also amended to remove the reference to 'transaction price".
IFRS 10 Consolidated Financial Statements – Determination of a 'De Facto Agent': The amendments are intended to remove the inconsistencies between IFRS 10 paragraphs.
IAS 7 Statement of Cash Flows – Cost Method: The amendments remove the term of "cost method" following the prior deletion of the definition of 'cost method'.
In December 2024, the Board issued Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7). The amendment clarifies the application of the "own use" requirements and permits hedge accounting if these contracts are used as hedging instruments. The amendment also adds new disclosure requirements to enable investors to understand the effect of these contracts on a company's financial performance and cash flows.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In April 2024, IASB issued IFRS 18 which replaces IAS 1. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards, such as IAS 7, IAS 8 and IAS 34
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In May 2024, IASB issued IFRS 19, which allows eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. Unless otherwise specified, eligible entities that elect to apply IFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards. An entity that is a subsidiary, does not have public accountability and has a parent (either ultimate or intermediate) which prepares consolidated financial statements, available for public use, which comply with IFRS accounting standards may elect to apply IFRS 19.
A related party is a person or entity that is related to the entity that is preparing its financial statements.
a) A person or a close member of that person's family is related to a reporting entity if that person:
i. has control or joint control over the reporting entity.
ii. has significant influence over the reporting entity.
iii. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
b) An entity is related to a reporting entity if any of the following conditions applies:
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The Group, has adopted the revaluation method in accordance with TAS 16 for its entire power plants. Power plants are measured at fair value less accumulated depreciation and impairment losses recognised after the date of revaluation. Other tangible assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Construction in progress is also stated at cost, net of accumulated impairment losses, if any. An investment in a power plant is classified as construction in progress during the physical construction process; when completed, it is transferred to the power plant class (Note 9.1) and recognized at fair value.
The frequency of revaluations depends on the changes in the fair values of property, plant and equipment subject to revaluation. The Group revalued the property, plant and equipment consisting of the power plant as of 31 December 2024 and performed a detailed impairment analysis as of 31 December 2024. The Renewable Energy Group consist of power plants below:
Çırakdamı HPP, Dereli HPP , Bereket I-II HPP, Dalaman I-V HPP, Gökyar HPP, Feslek HPP, Koyulhisar HPP, Mentaş HPP, Toros HPP, Göktaş I-II HPP, Aksu HPP, Akıncı HPP Uşak WPP, Yalova WPP, Söke WPP and Uşak SPP.
A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss, the increase is recognised in profit and loss. A revaluation deficit is recognised in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognised in the asset revaluation surplus.
An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset's original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred to retained earnings.
Depreciation is calculated using the straight-line method over property, plant and equipment. Land is not depreciated on the basis that it has an indefinite life. Purchase costs are accounted by separating the land and building components in the purchases of buildings, including land.
The estimated useful lives of the significant property, plant and equipment as of 31 December 2024 are as follows:
Years
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognised.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. Repair and maintenance costs are recognised in profit or loss as incurred.
A class of power plant is a grouping of assets of a similar nature and used in an entity's operations and contains land, buildings, machinery and equipment, furniture and fixtures.
Expenses for the repair of property, plant and equipment are normally charged as expense. They are, however, capitalized if they result in an enlargement or substantial improvement of the respective assets.
Intangible assets are carried at cost less accumulated depreciation and impairment losses. Intangible assets are carried at cost less accumulated depreciation and impairment losses. Intangible assets comprise rights to operate licenses and computer software.
The Adıgüzel HPP and Kemer HPP operating licences which has been obtained through Transfer of Operating Rights Agreement ("Agreement") with the Privatization Administration and the Electricity Generation Corporation ("EÜAŞ") are accounted as intangible assets.
Computer software are recognized at acquisition cost and amortized on a straight-line basis over their estimated useful lives of 3-15 years. Where an indication of impairment exists, the carrying amount of any intangible assets is assessed and written down immediately to its recoverable amount.
Subsequent costs are capitalized only if they have an impact that increases the future economic benefits of the intangible assets to which they relate. All other expenditures are recognized in profit or loss when incurred.
Intangible assets are recognized in profit or loss on a straight-line basis over their estimated useful lives starting from the date they are ready for use.
Amortization methods, useful lives and residual values are reviewed at each reporting date and, where appropriate, adjusted.
The estimated useful lives in the current periods are as follows:
| Years | |
|---|---|
| Right to Operate Licences | 12-49 |
| Computer Software | 3-15 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Non-derivative financial liabilities of the Group comprised of "borrowings", "trade payables" and "other payables" in the statement of financial position
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.
Borrowings are derecognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
If financing costs arising from the loans are associated with acquisition or construction of qualifying assets, they are included in cost value of qualifying assets. Qualifying assets refer to assets which require a long time to be available for use or sales as intended. Other borrowing costs are accounted in statement of profit or loss in the period they occur.
Trade and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
For a hedge of foreign currency risk, the foreign currency component of a non-derivative financial asset or liability may be designated, as a hedging instrument. The foreign currency risk component of a nonderivative financial instrument is determined in accordance with TAS 21.
Accordingly, starting from 20 March 2021, the Company hedge the spot risk of highly probable forecast sales that are denominated in USD with its financial liability in the same foreign currency.
While the Company's functional currency is TRY, the company is exposed to FX risks due to its finances and operations. The Company has outstanding USD debt due to power plant investments. The company also generates significant sales revenue in USD.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The source of USD denominated revenue is sales of electricity generated via renewable power plants. Such production is incentivized in Turkey through a feed‐in tariff mechanism (Council of Ministers Decree No.2013/5625). The kWh sale price of generated electricity is guaranteed in USD prices, whereas the amount of future renewable generation remains uncertain and depends on climate conditions and/or operational risks. The feed‐in tariff ("FIT") revenues are calculated on a daily basis, and are aggregated at monthly intervals. This enables the Company to classify expected future revenues as a monthly stream of forecasted USD cash inflows for risk management purposes.
The Company's foreign currency risk management objective is to rely on natural currency hedges due to operations. It achieves this feat by aligning its forecasted USD inflows and its USD bond payments. Moreover, the forecasted USD inflows vs scheduled USD bond repayments constitute a hedged portfolio that allows a Cash Flow Hedge Accounting relationship to reduce the Company's income statement volatility. In particular, the Company associates its forecasted future USD cash inflows due to renewable‐ generated electricity sales, with its outstanding USD bonds. The Company is implementing Hedge Accounting under TFRS 9 to reflect its economic hedges onto financial reporting:
| Hedge Accounting Component | Definition |
|---|---|
| Hedged Item | Forecasted future USD cash inflows due to FIT incentive |
| Hedging Instrument | USD denominated financial borrowings |
| Foreign exchange risk of forecasted future USD cash inflows due to FIT | |
| Hedged Risk | incentive |
As of 31 December 2024, the amount of forecasted revenue under FIT and bilateral agreements are USD 204,215,028 whereas the total notional of the outstanding USD denominated bonds is USD 674,107,000. The Group designates USD 574,107,000 of this amount as part of its rebalanced hedge accounting relationship, per TFRS 9 6.2.4 (c). Due to under‐hedged nature of the hedged‐item, the Company achieves 1:1 hedge ratio with the hedging instrument at all times by way of re‐balancing, in line with TFRS 9, 6.4.1.c.iii.
The maturity breakdown of the designated layer of the hedging instrument notional as of 31 December 2024 is provided below;
| Payment Date | Principal Payment Amount |
|---|---|
| February 2025 | 57,410,700 |
| August 2025 | 57,410,700 |
| February 2026 | 57,410,700 |
| August 2026 | 57,410,700 |
| February 2027 | 344,464,200 |
| Total | 574,107,000 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The accounting treatment applied with respect to the cash flow hedge is as follows:
As of 31 December 2024, the hedge relationship has been measured as 33.03% effective. As a result of the sensitivity analysis performed on the forecasted revenue figures, the Group concluded that the 10% increase/decrease in the forecasts do not have a significant effect on the evaluation of the hedge effectiveness tests.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The preparation of consolidated financial statements in conformity with TFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements:
Note 5 – Trade receivables Note 9 – Property, plant and equipment Note 11 – Provisions Note 2.7 – Cash flow hedge transactions Note 22 – Taxation on income
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. The assumptions underlying estimates and estimates are constantly monitored. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.
The Group's power plants (Çırakdamı HPP, Dereli HPP, Bereket I-II HPP, Dalaman I-V HPP, Gökyar HPP, Feslek HPP, Koyulhisar HPP, Mentaş HPP, Toros HPP, Göktaş I-II HPP, Aksu HPP, Akıncı HPP, Uşak WPP, Yalova WPP, Söke WPP, Uşak SPP) under property, plant and equipment are accounted for at fair value in accordance with revaluation model.
The Group has chosen the revaluation method as an accounting policy among measurment approaches allowed under TAS 16 for power plants.
As of 31 December 2024 and 2023 the Group obtained valuation report from an independent valuation company and revalued its power plants to its fair values. As of 31 December 2024 and 2023, the power plants are carried at the fair values at the measurement dates less the accumulated depreciation in the consolidated financial statements.
The related revaluation studies are carried out by using "income approach - discounted cash flow analysis". In accordance with discounted cash flows method, the estimation of long-term electricity sale prices (or market clearing price "MCP") is one of the the most important estimates, so an independent consultant was employed to support the management in making such estimates. In determining long-term electricity sale prices, the most important inputs in the model are; demand in the coming years, renewable energy capacity and capacity factor development, electricity export & import development. Other than long-term electricity sale prices, the most important assumptions of discounted cash flow method are; projected generation amount, weighted average cost of capital (discount rate) and US Dollar/TL foreign exchange rates.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The parameters applied in the valuation and the valuation methods used are summarized below:
| Power Plants | Valuation Date | Valuation Method |
Weighted Average Cost of Capital |
Average MCP for Next Year (USD) |
Gross Generation Volume Realized in 2024 (MWh/Year) |
Expected Future Gross Generation Volume (MWh/ Year) |
|---|---|---|---|---|---|---|
| Dalaman I-V HPP | 10 December 2024 | DCF * | 10.7% | 73 | 74,642 | 79,785 |
| Akıncı HPP | 10 December 2024 | DCF * | 10.7% | 73 | 354,796 | 377,451 |
| Aksu HPP | 10 December 2024 | DCF * | 10.7% | 73 | 70,239 | 88,920 |
| Gökyar HPP | 10 December 2024 | DCF * | 10.7% | 73 | 19,533 | 22,499 |
| Toros HPP | 10 December 2024 | DCF * | 10.7% | 73 | 89,041 | 175,886 |
| Feslek HPP | 10 December 2024 | DCF * | 10.7% | 73 | 6,337 | 9,602 |
| Koyulhisar HPP | 10 December 2024 | DCF * | 10.7% | 73 | 222,557 | 214,982 |
| Mentaş HPP | 10 December 2024 | DCF * | 10.7% | 73 | 63,707 | 96,645 |
| Bereket I-II HPP | 10 December 2024 | DCF * | 10.7% | 73 | 7,961 | 9,907 |
| Göktaş HPP | 10 December 2024 | DCF * | 10.7% | 73 | 364,820 | 621,754 |
| Çırakdamı HPP | 10 December 2024 | DCF * | 10.7% | 73 | 64,098 | 106,135 |
| Dereli HPP | 10 December 2024 | DCF * | 10.7% | 73 | 52,258 | 106,303 |
| Yalova WPP | 10 December 2024 | DCF * | 10.3% | 73 | 142,046 | 142,170 |
| Söke WPP | 10 December 2024 | DCF * | 10.3% | 73 | 208,917 | 208,532 |
| Uşak WPP | 10 December 2024 | DCF * | 10.3% | 73 | 252,787 | 344,816 |
| Uşak SPP | 10 December 2024 | DCF * | 10.9% | 73 | 127,493 | 130,080 |
| Power Plants | Valuation Date | Valuation Method |
Weighted Average Cost of Capital |
Average MCP for Next Year (USD) |
Gross Generation Volume Realized in 2023 (MWh/Year) |
Expected Future Gross Generation Volume (MWh/ Year) |
|---|---|---|---|---|---|---|
| Dalaman I-V HPP | 13 March 2024 | DCF * | %11.2 | 89 | 61,354 | 79,692 |
| Akıncı HPP | 13 March 2024 | DCF * | %11.1 | 89 | 419,585 | 367,316 |
| Aksu HPP | 13 March 2024 | DCF * | %11.1 | 73 | 112,435 | 91,199 |
| Gökyar HPP | 13 March 2024 | DCF * | %11.2 | 89 | 19,856 | 23,173 |
| Toros HPP | 13 March 2024 | DCF * | %11.1 | 89 | 113,657 | 186,389 |
| Feslek HPP | 13 March 2024 | DCF * | %11.2 | 89 | 5,642 | 10,882 |
| Koyulhisar HPP | 13 March 2024 | DCF * | %11.2 | 89 | 243,691 | 211,299 |
| Mentaş HPP | 13 March 2024 | DCF * | %11.1 | 89 | 78,388 | 98,802 |
| Bereket I-II HPP | 13 March 2024 | DCF * | %11.3 | 89 | 9,636 | 10,328 |
| Göktaş HPP | 13 March 2024 | DCF * | %11.1 | 89 | 454,710 | 685,212 |
| Çırakdamı HPP | 13 March 2024 | DCF * | %11.1 | 89 | 132,616 | 114,241 |
| Dereli HPP | 13 March 2024 | DCF * | %11.1 | 73 | 138,576 | 116,542 |
| Yalova WPP | 13 March 2024 | DCF * | %10.5 | 73 | 140,618 | 136,960 |
| Söke WPP | 13 March 2024 | DCF * | %10.5 | 73 | 151,991 | 207,348 |
| Uşak WPP | 13 March 2024 | DCF * | %10.6 | 73 | 180,293 | 256,562 |
| Uşak SPP | 13 March 2024 | DCF * | %11.6 | 73 | 87,872 | 135,507 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Deferred tax liabilities are recognized for all taxable temporary differences, while deferred tax assets resulting from deductible temporary differences are recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilized.
The operations of the Group entities are regulated under Electricity Market Law No. 6446, the Regulation on Electricity Market License of EMRA, the Electricity Market Balancing and Settlement Regulation ("BSR") and other related legislative provisions.
Electricity sales is recognised as revenue at the time of electricity delivery, on an accrual basis. In the case of revenue from feed-in-tariff ("FIT"), sale of electricity is recorded based upon output delivered at rates specified under FIT. In the case of revenue from other than FIT, sale of electricity is again recorded based upon output delivered but at market rates.
With EMRA's board decision dated March 17, 2022 and numbered 10866, "Procedures and Principles Regarding the Determination and Implementation of Resource Based Support Fee" was published. Pursuant to this decision, the Maximum Settlement Price (MSP) has been determined for the resource types used in the generation of electricity and is applied as a ceiling price in the electricity sales price for power plants not covered by FIT. The MSP is updated on a monthly basis by taking into account the commodity prices that are inputs to energy production and other parameters deemed appropriate by the Board in addition to one or more of the inflation and exchange rate parameters.
The MSP mechanism has been expired on 1 October 2023.
The company, related parties Gediz Elektrik Perakende A.Ş. ("Gediz EPSAŞ") and Aydem Elektrik Perakende A.Ş. ("Aydem EPSAŞ") sells electricity to companies within the scope of bilateral agreements. Bilateral agreements are commercial agreements made between real or legal persons, subject to the provisions of private law, regarding the purchase and sale of electrical energy or capacity and not subject to the approval of the Energy Market Regulatory Board. In bilateral agreements, conditions related to the supply of electrical energy such as unit price, price commitment, security fee conditions, contract duration are determined and signed.
The Group's activities are not subject to seasonal fluctuations.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of December 31, 2024 and 2023, cash and cash equivalents are as follows:
| 31 December 2024 |
31 December 2023 |
|
|---|---|---|
| Cash at banks - Time deposits - Demand deposits Other cash and cash equivalents |
1,744,252,833 1,741,138,315 3,114,518 343,654 |
2,011,698,240 2,010,612,368 1,085,872 - |
| 1,744,596,487 | 2,011,698,240 |
As of 31 December 2024, the interest rate of the Group's term TL denominated time deposits amounting is between 40% to 48,5%, average maturity 3 days. (31 December 2023: between 20% and 41%, average maturity 20 days). US Dollars denominated time deposits amounting interest rate is between 0.01% to 2,25%, average maturity 4 days. (31 December 2023: between 2% and 4%, average maturity 9 days). Euro denominated time deposits amounting interest rate is 1%, average maturity 3 days. (31 December 2023: 1,5%, average maturity 3 days).
As of 31 December 2024, the Group's blocked deposit amount is TL 10,042,000 and USD 2,843,000. (December 31, 2023: USD 3,864,317).
Financial information is provided on a power plant-by-power plant basis to members of executive management, which collectively comprise the chief operating decision maker. The information provided to the members of the executive management includes results or operation, valuation gains and losses on power plants, assets and liabilities of each power plant. The individual properties are also monitored based on type of power plants such as Hydro, Wind, Geothermal and Solar. The Group management considers that it is appropriate to report the segments based on this aggregation, to monitor the financial performance.
Group management assesses segment performance over earnings before interest, tax, depreciation and amortization ("EBITDA"). EBITDA is calculated by adjusting the operating income by depreciation and amortization expenses.
Company management preferred to use EBITDA in the evaluation of department performances in terms of comparability with companies in the same sector. EBITDA is not a measure of financial performance defined in TFRS. It may not be comparable to similar indicators defined by other companies.
The accounting policies adopted by each of the reportable segments are consistent with TFRS' used in preparation of consolidated financial statements of the Group. The detailed information regarding the reporting segments of Group is presented below:
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| 31 December 2024 |
Hydro Power Plants | Wind Power Plants | Geothermal Power Plant | Solar Power Plant | Other | Unallocated * | Consolidated |
|---|---|---|---|---|---|---|---|
| Segment assets | 37,249,520,158 | 9,485,347,161 | - | 2,004,871,114 | 198,202,414 | 7,483,622,831 | 56,421,563,678 |
| Segment liabilities | 16,589,320,686 | 2,046,006,716 | - | 1,697,287,589 | - | 8,723,871,218 | 29,056,486,209 |
| 31 December 2023 | Hydro Power Plants | Wind Power Plants | Geothermal Power Plant | Solar Power Plant |
Other | Unallocated * | Consolidated |
|---|---|---|---|---|---|---|---|
| Segment assets | 56,473,061,853 | 12,531,743,468 | - | 3,391,459,629 | 233,882,496 | 7,654,246,293 | 80,284,393,739 |
| Segment liabilities | 19,813,120,606 | 2,443,606,861 | - | 2,027,121,203 | - | 14,678,221,574 | 38,962,070,244 |
* Includes assets and liabilities which are not attributable to a reportable segment such as cash, trade receivables, other assets, trade payables, other liabilities, tax assets and liabilities, etc.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| 1 January | Hydro Power | Wind Power | Geothermal | Solar Power |
Total Renewable | ||
|---|---|---|---|---|---|---|---|
| 31 December 2024 |
Plants | Plants | Power Plant | Plant | Energy | Unallocated * | Consolidated |
| Revenues - Revenues from Feed in Tariff (FIT) - Other than FIT |
4,245,561,416 355,477,731 3,890,083,685 |
1,895,436,747 1,895,436,747 - |
39,518,956 - 39,518,956 |
403,060,468 403,060,468 - |
6,583,577,587 2,653,974,946 3,929,602,641 |
- - - |
6,583,577,587 2,653,974,946 3,929,602,641 |
| Cost of Sales Operational Expenses/Income (incl. Other Expense and Income) |
(3,124,541,533) - |
(1,516,688,148) - |
(36,223,177) - |
(193,711,197) - |
(4,871,164,055) - |
(105,882,407) 328,389,516 |
(4,977,046,462) 328,389,516 |
| Earnings Before Interest and Taxes (EBIT) | 1,121,019,883 | 378,748,599 | 3,295,779 | 209,349,271 | 1,712,413,532 | 222,507,109 | 1,934,920,641 |
| Add-back, Depreciation & Amortization Expenses | 1,894,874,650 | 857,062,245 | - | 139,211,339 | 2,891,148,234 | 117,644,860 | 3,008,793,094 |
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) ** |
3,015,894,533 | 1,235,810,844 | 3,295,779 | 348,560,610 | 4,603,561,766 | 340,151,969 | 4,943,713,735 |
| Gains from Investing Activities Expenses from investing activities Finance Income Finance Expense Monetary gain/(loss) Tax Expense Depreciation & Amortization Expenses |
- - - - - - (1,894,874,650) |
- - - - - - (857,062,245) |
- - - - - - - |
- - - - - - (139,211,339) |
- - - - - - (2,891,148,234) |
72,837,321 (19,085,752,527) 948,134,890 (7,088,688,620) 7,330,445,969 4,117,823,961 (117,644,860) |
72,837,321 (19,085,752,527) 948,134,890 (7,088,688,620) 7,330,445,969 4,117,823,961 (3,008,793,094) |
| Net Loss for the Period |
(11,770,278,365) |
* Includes head office costs and expenses which is not attributable to a reportable segment. Operational expenses mainly consist of personnel expenses. Operational income is mainly composed of foreign exchange income related to trading activities.
** EBITDA is calculated by adjusting the operating income by depreciation and amortization expenses.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Total | |||||||
|---|---|---|---|---|---|---|---|
| 1 January | Hydro Power | Wind Power | Geothermal | Solar Power |
Renewable | ||
| 31 December 2023 |
Plants | Plants | Power Plant | Plant | Energy | Unallocated* | Consolidated |
| Revenues | 6,924,634,778 | 1,878,336,809 | 47,404,060 | 330,407,850 | 9,180,783,497 | - | 9,180,783,497 |
| - Revenues from Feed in Tariff (FIT) |
1,615,455,464 | 1,112,816,563 | - | - | 2,728,272,027 | - | 2,728,272,027 |
| - Other than FIT |
5,309,179,314 | 765,520,246 | 47,404,060 | 330,407,850 | 6,452,511,470 | - | 6,452,511,470 |
| Cost of Sales | (3,497,383,585) | (1,391,388,020) | (48,655,485) | (187,265,877) | (5,124,692,967) | (88,737,302) | (5,213,430,269) |
| Operational Expenses/Income (incl. Other Expense and Income) | - | - | - | - | - | 446,906,797 | 446,906,797 |
| Earnings Before Interest and Taxes (EBIT) | 3,427,251,193 | 486,948,789 | (1,251,425) | 143,141,973 | 4,056,090,530 | 358,169,495 | 4,414,260,025 |
| Add-back, Depreciation & Amortization Expenses | 2,075,845,621 | 717,999,337 | - | 127,099,341 | 2,920,944,299 | 153,881,527 | 3,074,825,826 |
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) ** |
5,503,096,814 | 1,204,948,126 | (1,251,425) | 270,241,314 | 6,977,034,829 | 512,051,022 | 7,489,085,851 |
| Gains from Investing Activities Expenses from investing activities |
- | - | - | - | - - |
441,355,938 (5,289,447,370) |
441,355,938 (5,289,447,370) |
| Finance Income | - | - | - | - | - | 1,507,182,208 | 1,507,182,208 |
| Finance Expense | - | - | - | - | - | (19,048,931,971) | (19,048,931,971) |
| Monetary gain/(loss) | - | - | - | - | - | ||
| Tax Expense | - | - | - | - | - | 13,686,945,664 | 13,686,945,664 |
| Depreciation & Amortization Expenses | (2,075,845,621) | (717,999,337) | - | (127,099,341) | (2,920,944,299) | 2,440,442,075 | 2,440,442,075 |
| (153,881,527) | (3,074,825,826) | ||||||
| Net Loss for the Period | (1,848,193,431) |
* Includes head office costs and expenses which is not attributable to a reportable segment. Operational expenses mainly consist of personnel expenses. Most of operational income is composed of foreign exchange income related to trading activities.
** EBITDA is calculated by adjusting the operating income by depreciation and amortization expenses.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Aydem Holding A.Ş. ("Aydem Holding") is the ultimate parent company and controlling party of the Group.
Transactions with related parties are classified according to the following groups and include all related party disclosures in this note.
Since the transactions between the Group and its subsidiaries, which are related parties of the Group, are eliminated during consolidation, they are not disclosed in this note.
The shareholders, key management personnel and members of the Board of Directors, their families and partners and entities controlled by the ultimate shareholders are considered and referred to as related parties in the consolidated financial statements. The Group companies have carried out various transactions with related parties during their operations.
Trade receivables from related parties generally arise from sale of electricity. Trade payables to related parties generally arise from the electricity purchases. The company, related parties Gediz Elektrik Perakende A.Ş. ("Gediz EPSAŞ") and Aydem Elektrik Perakende A.Ş. ("Aydem EPSAŞ") sells electricity to companies within the scope of bilateral agreements. Bilateral agreements are commercial agreements made between real or legal persons, subject to the provisions of private law, regarding the purchase and sale of electrical energy or capacity and not subject to the approval of the Energy Market Regulatory Board. In bilateral agreements, conditions related to the supply of electrical energy such as unit price, price commitment, security fee conditions, contract duration are determined and signed.
Other receivables from related parties arise from sale of subsidiary shares and amounts arisen from operational activities. At the end of each quarter period for other receivables and payables interest is accrued using market interest rates, which are determined using the Group external cost of borrowing.
As of 31 December 2024 and 2023, short-term trade receivables due from related parties are as follows:
| 31 December 2024 | 31 December 2023 |
|---|---|
| 2,454,352,636 | |
| 329,896,482 | |
| - | 665,401 |
| 2,784,914,519 | |
| 2,421,554,330 710,099,845 3,131,654,175 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, short-term other receivables due from related parties are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Aydem Holding A.Ş. ("Aydem Holding") (1) * Aydem EPSAŞ (1) |
109,766,904 - |
124,968,966 801,283,102 |
| 109,766,904 | 926,252,068 |
* Mainly consists of receivables related to the sale of 50% shares belonging to Yalova Karacabey.
As of 31 December 2024 and 2023, short-term trade payables due to related parties are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Aydem Holding (1) | 32,479,228 | 10,086,598 |
| GDZ Enerji Yatırımları A.Ş. ("GDZ Enerji") (1) | 6,603,772 | 4,322,223 |
| Adm EDAŞ (1) | 2,400,668 | 1,970,297 |
| Other | 738,804 | 131,713 |
| 42,222,472 | 16,510,831 |
As of 31 December 2024 and 2023, long-term other payables to related parties are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Aydem EPSAŞ (1) | - | 72,770,079 |
| - | 72,770,079 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
For the period ended 31 December 2024 and 2023, income and expense transactions with related parties are as follows:
| Electricity Sales and Other Sales | 1 January 31 December 2024 |
1 January 31 December 2023 |
|---|---|---|
| Gediz EPSAŞ (1) Aydem EPSAŞ (1) Parla Solar (1) Other |
3,159,554,348 1,466,583,270 - 536,409 |
7,097,964,147 3,571,719,284 152,060,805 2,231,051 |
| 4,626,674,027 | 10,823,975,287 |
* Consists of electricity sales within the bilateral agreements.
In the period ending on 31 December 2024, since the spot electricity market price was higher than MSP and the sales price of FIT, the difference was paid to Enerji Piyasaları İşletme A.Ş. ("EPİAŞ").
| Purchase of Electricity and Services | 1 January 31 December |
1 January 31 December |
|---|---|---|
| 2024 | 2023 | |
| Aydem Holding (1) | 185,108,890 | 400,691,948 |
| Aydem EPSAŞ (1) | 235,698,652 | 367,411,006 |
| Gediz EPSAŞ (1) | 56,743,477 | 125,950,417 |
| GDZ Enerji (1) | 63,997,293 | 46,607,287 |
| Adm EDAŞ (1) | 26,355,215 | - |
| Other | 4,928,793 | 7,634,539 |
| 572,832,320 | 948,295,197 |
| Other Income, net | 1 January 31 December 2024 |
1 January 31 December 2023 |
|---|---|---|
| Aydem EPSAŞ (1) * Gediz EPSAŞ (1) * |
473,644,749 295,791,470 |
1,126,101,757 468,808,735 |
| Aydem Holding (1) | 87,508,714 | 25,525,784 |
| Parla Solar (1) | 35,706,177 | - |
| 892,651,110 | 1,620,436,276 |
* Consists of net foreign exchange income and late interest income regarding trade receivables.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Financial Income | 1 January 31 December 2024 |
1 January 31 December 2023 |
|---|---|---|
| Aydem EPSAŞ (1) Gediz EPSAŞ (1) Aydem Holding (1) Aydem Enerji Yatırımları (1) |
107,002,536 22,087,794 11,442,371 7,751,994 |
88,236,416 24,841,637 8,047,689 - |
| 148,284,695 | 121,125,742 |
The executive management of the Group is comprised of general manager and directors. For the period ended 31 December 2024 and 2023, the sum of short-term benefits, such as remuneration and attendance fees, provided to key management executives personnel is as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Benefits to key management personnel | 47,376,422 | 53,960,540 |
| 47,376,422 | 53,960,540 |
As of 31 December 2024 and 2023, the Group's short-term trade receivables are as follows:
| 31 December 2024 |
31 December 2023 |
|
|---|---|---|
| Trade receivables due from related parties (Note 5) Trade receivables due from third parties |
3,131,654,175 37,105,992 |
2,784,914,519 114,409,277 |
| 3,168,760,167 | 2,899,323,796 | |
| Less: Expected credit loss | (7,096,567) | (10,195,632) |
| 3,161,663,600 | 2,889,128,164 |
As of December 31, 2024, the average maturity of trade receivables is 45 days (December 31, 2023: 45 days).
As of 31 December 2024 and 2023 short-term receivables consist of the following items:
| 31 December 2024 |
31 December 2023 |
|
|---|---|---|
| Trade receivables related to electricity sales Income accruals related to electricity sales * Doubtful trade receivables Allowances for doubtful trade receivables |
3,161,313,664 349,936 7,096,567 (7,096,567) |
2,814,452,712 74,675,452 10,195,632 (10,195,632) |
| 3,161,663,600 | 2,889,128,164 |
* Consists of electricity sales and ancillary income within the bilateral agreements.
** Consists of the Group's unbilled receivables arising from the electricity sales.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of December 31, 2024 and 2023, The Group has overdue trade receivables and that receivables have not been impaired. The aging of trade receivables is as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Not overdue | 970,125,686 | 607,479,027 |
| 1-30 days past due | 430,058,197 | 243,223,962 |
| 1-3 months past due | 859,123,039 | 764,456,534 |
| 3-12 months past due | 902,356,678 | 1,273,968,641 |
| 3,161,663,600 | 2,889,128,164 |
The liquidity and exchange rate risk that the Group is exposed in relation with trade receivables are explained under Footnote 24
The movement of expected credit loss for the period ended 31 December 2024 and 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 10,195,632 | 17,028,107 |
| Current provision | 283,785 | - |
| Provisions no longer required | (264,343) | (181,818) |
| Inflation effect | (3,118,507) | (6,650,657) |
| Closing balance (31 December) | 7,096,567 | 10,195,632 |
As of 31 December 2024 and 2023, the Group's short-term trade payables are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Trade payables from third parties | 187,228,218 | 565,627,156 |
| Trade payables due from related parties (Note 5) | 42,222,472 | 16,510,831 |
| 229,450,690 | 582,137,987 |
As of 31 December 2024 and 2023, short-term trade payables from third parties consist of the following items:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Trade payables | 136,083,295 | 475,526,316 |
| Expense accruals | 51,144,923 | 90,072,945 |
| Other trade payables | - | 27,895 |
| 187,228,218 | 565,627,156 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, the Group's short-term other receivables are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Other receivables due from related parties (Note 5) Other receivables due from third parties |
109,766,904 45,300,824 |
926,252,068 20,825,029 |
| 155,067,728 | 947,077,097 |
As of 31 December 2024 and 2023, short-term other receivables from third parties consist of the following items:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Receivables from tax administration | 45,122,746 | 20,679,259 |
| Deposits & guarantees given | 178,078 | 145,770 |
| 45,300,824 | 20,825,029 |
As of 31 December 2024 and 2023, other long-term receivables from third parties consist of the following items:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Other receivables due from third parties | 5,396,665 | 4,709,745 |
| 5,396,665 | 4,709,745 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, the Group's short-term other payables are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Other payables due to third parties | 236,740 | 340,841 |
| 236,740 | 340,841 |
As of 31 December 2024 and 2023, other short-term payables to third parties consist of the following items:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Deposits and guarantees taken | 235,709 | 340,321 |
| Other payables | 1,031 | 520 |
| 236,740 | 340,841 |
As of 31 December 2024 and 2023, inventories are composed of spare parts for property, plant and equipment:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Spare parts * | 20,405,704 | 30,422,646 |
| 20,405,704 | 30,422,646 | |
* Inventories consist of spare parts used in the maintenance of power plants and consumable materials.
As of 31 December 2024, there is no insurance coverage on the Group's inventories (31 December 2023: None).
As of 31 December 2024, there are no inventories presented as collateral for liabilities (31 December 2023: None).
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The ending 31 December 2024 and 2023, movements of property, plant and equipment are as follows:
| Construction in | |||||
|---|---|---|---|---|---|
| Land | Power plants | progress * | Other | Total | |
| Cost or valuation as of 1 January 2024 | 50,698,287 | 97,842,019,822 | 1,798,048,320 | 289,432,774 | 99,980,199,203 |
| Additions | - | 112,946,283 | 554,046,387 | 19,950,362 | 686,943,032 |
| Disposals | - | (106,275,226) | (433,355,413) | (145,046) | (539,775,685) |
| Transfers | - | 95,797,068 | (95,797,068) | - | - |
| Impairment** | (31,471,303,291) | (31,471,303,291) | |||
| Cost or valuation as of 31 December 2024 | 50,698,287 | 66,473,184,656 | 1,822,942,226 | 309,238,090 | 68,656,063,259 |
| Accumulated depreciation as of 1 January | |||||
| 2024 | - | (29,587,542,634) | - | (211,741,777) | (29,799,284,411) |
| Additions | - | (2,836,651,895) | - | (21,768,053) | (2,858,419,948) |
| Disposals | - | 49,516,475 | - | 113,412 | 49,629,887 |
| Impairment** | - | 10,505,732,174 | - | - | 10,505,732,174 |
| Accumulated depreciation as of 31 | |||||
| December 2024 | - | (21,868,945,880) | - | (233,396,418) | (22,102,342,298) |
| Net book value as of 31 December 2024 | 50,698,287 | 44,604,238,776 | 1,822,942,226 | 75,841,672 | 46,553,720,961 |
* An application was made to the Energy Market Regulatory Authority for the termination of the production licenses of Ey-Tur and Başat, subsidiaries of Aydem Yenilenebilir Enerji A.Ş. The termination request was approved by the board decision dated June 13, 2024. Based on the decision, the amount of TL 492,431,338 in the construction in progress account was recognized under expenses from investment activities. (Note 21)
| Construction in | |||||
|---|---|---|---|---|---|
| Land | Power plants | progress * | Other | Total | |
| Cost or valuation as of 1 January 2023 | 50,698,287 | 102,784,890,388 | 1,985,207,485 | 269,549,657 | 105,090,345,817 |
| Additions | - | 138,551,500 | 2,949,884,900 | 20,015,641 | 3,108,452,041 |
| Disposals | - | (652,588) | (437,026,402) | (132,524) | (437,811,514) |
| Transfers * | - | 2,700,017,663 | (2,700,017,663) | - | |
| Value increase | - | 1,690,576,475 | - | - | 1,690,576,475 |
| Impairment** | - | (9,471,363,616) | - | - | (9,471,363,616) |
| Cost or valuation as of 31 December 2023 | 50,698,287 | 97,842,019,822 | 1,798,048,320 | 289,432,774 | 99,980,199,203 |
| Accumulated depreciation as of 1 January 2023 | - | (29,836,041,291) | - | (192,050,139) | (30,028,091,430) |
| Additions | - | (2,878,000,119) | - | (19,747,980) | (2,897,748,099) |
| Disposals | - | 153,262 | - | 56,342 | 209,604 |
| Value increase | - | (492,647,944) | - | - | (492,647,944) |
| Impairment** | - | 3,618,993,458 | - | - | 3,618,993,458 |
| Accumulated depreciation as of 31 December | |||||
| 2023 | - | (29,587,542,634) | - | (211,741,777) | (29,799,284,411) |
| Net book value as of 31 December 2023 | 50,698,287 | 68,254,477,188 | 1,798,048,320 | 77,690,997 | 70,180,914,792 |
* Mainly consists of investments regarding hybrid solar and capacity increase.
As of 31 December 2024, there are pledges and mortgages on property, plant and equipment of the Group amounting to USD 1,248,750,000 in original currencies (31 December 2023: USD 1,248,750,000 in original currencies) in favor of lenders.
Total depreciation expense of property, plant and equipment amounting to TL 2,836,651,895 (31 December 2023: TL 2,878,000,119) has been reflected to cost of sales and amounting to TL 21,768,053 (31 December 2023: TL 19,747,980) has been reflected to general administration expense.
**One of the most important reasons for the impariment is the negative gap between the USD/TL exchange rate and the CPI, which became significant with inflation accounting, a practice specific to the relevant period. While the USD/TL parity, which is the basis for the Turkish Lira equivalent of power plant assets valued in US Dollars, increased by 20% compared to the previous year, the CPI used to update the previous year's valuation in inflation accounting was 44%. Another reason is the fluctuations in macroeconomic assumptions and energy prices. There was a negative difference between the energy prices and expectations that were the basis for the valuation studies used in the financial statements of December 31, 2023, and the energy prices and expectations in the current year. Energy prices, which were high worldwide, especially in Europe, due to cyclical developments in the past period, moved downwards in the period on which the valuation report used in the financial statements of December 31, 2024, was based, and this situation negatively affected the power plant value.
The Group determined that the power plants constitute a separate class of property, plant and equipment, based on the nature, characteristics and risks of the property and as also mentioned in Note 2, elected to use revaluation method for such assets.
The Company applied the "Income Reduction Method- DCF Analysis" in its valuation and impairment studies. Given that long-term electricity market prices are the most important factor in the "DCF Analysis," the Company collaborated with an independent consultant providing services to companies operating in the energy market. When determining long-term electricity prices, the most important inputs in the model were the forecasted trends in demand, capacity, capacity factor development, electricity export & import trends, and coal prices. The most important assumptions in the income reduction method are, respectively, electricity prices, projected production volume, weighted average cost of capital, discount rate, and exchange rates. The Company does not expect significant changes in the forecasts and assumptions used in the valuation reports. In the income reduction method, the Company discounted its estimated revenues based on the useful life of the power plants.
The results of the sensitivity calculation for a possible 1% decrease or increase in the estimated electricity prices for the company are as follows:
| 31.12.2024 | 31.12.2023 | |
|---|---|---|
| Value of power plant assets | 44,604,238,776 | 68,254,477,188 |
| Total value with 1% decrease in electricity prices Rate of change |
41,906,248,774 (6.0%) |
64,371,328,723 (5.7%) |
| Total value with 1% increase in electricity prices Rate of change |
47,098,155,090 5.6% |
72,217,717,369 5.8% |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The results of the sensitivity calculation for a possible 1% decrease or increase in the weighted average cost of capital (WACC) for the company are as follows:
| 31.12.2024 | 31.12.2023 | |
|---|---|---|
| Value of power plant assets | 44,604,238,776 | 68,254,477,188 |
| Total value with 1% decrease in WACC | 42,748,427,161 | 65,214,578,551 |
| Rate of change | (4.2%) | (4.5%) |
| Total value with 1% increase in WACC |
46,478,242,593 | 71,506,225,327 |
| Rate of change | 4.2% | 4.8% |
The Group has lease contracts for various items of plant, machinery, vehicles, land right of use and other equipment used in its operations.
For the period then ended as of 31 December 2024, movements of right of uses is as follows:
| Cost as of 1 January 2024 | 597,413,322 |
|---|---|
| Additions | 50,440,237 |
| Cost as of 31 December 2024 | 647,853,559 |
| Accumulated depreciation as of 1 January 2024 | (230,516,710) |
| Additions | (81,856,269) |
| Accumulated depreciation as of 31 December 2024 | (312,372,979) |
| Net book value as of 31 December 2024 | 335,480,580 |
For the period then ended as of 31 December 2023, movements of right of uses is as follows:
| Cost as of 1 January 2023 | 498,403,507 |
|---|---|
| Additions | 99,009,815 |
| Cost as of 31 December 2023 | 597,413,322 |
| Accumulated depreciation as of 1 January 2023 | (123,784,672) |
| Additions | (106,732,038) |
| Accumulated depreciation as of 31 December 2023 | (230,516,710) |
| Net book value as of 31 December 2023 | 366,896,612 |
Total depreciation expense of right of uses amounting to TL 59,653,628 (31 December 2023: 83,783,431) has been reflected to cost of sales and amounting to TL 22,202,641 (31 December 2023: TL 22,948,607) has been reflected to general administration expense.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 5 May 2017, the Company has signed a Transfer of Operating Rights Agreement ("Agreement") with the Privatization Administration and the Electricity Generation Corporation ("EÜAŞ") for Adıgüzel and Kemer Hydroelectric Plants. According to the agreement, the Company obtained the operating rights of the plants for 49 years and is responsible for the transfer of EÜAŞ at the end of the period in a complete and a functional state. During the contract period, the Company has to carry out all the maintenance, repairs and improvements which are necessary to ensure the convenience and efficiency of the plants for the generation activity, at their own expense. The Company is responsible for any damages and losses that may occur in the generation facilities in general referred as "Power Plants". During the contact period; the Company has to perform all kinds of additional facilities, the investment for rehabilitation and development in accordance with the legislation, and will obtain the approval of EÜAŞ during the works and procedures to be carried out within this framework. In addition, the company must obtain approval from EÜAŞ in case it wants to make investments and transactions for capacity changes.
As of the transfer date, it is EÜAŞ's responsibility to monitor and solve the administrative, legal disputes regarding the ownership of the immovable on which plants are located and the immovable in use, that are available now or will arise after the transfer date and all responsibilities and obligations arising from this matter.
Intangible assets related to agreements are amortized until the end of the related contract period.
Although the Company has the right to obtain substantially all of the economic benefits from use of the asset, it does not have the right to manage the use of power plants according to Article 7 of the contract signed with the EÜAŞ. Therefore, the contract has not been considered as a lease contract under TFRS 16, On the other hand, the Agreement is not accounted within the scope of TFRIC 12 Service Concession Agreements because although the residual interest of the power plants belongs to EÜAŞ, EÜAŞ does not control at what price electricity will be sold.
Licences Operating rights Softwares Total
| Cost as of 1 January 2024 | 53,828,415 | 2,801,141,802 | 38,802,859 | 2,893,773,076 |
|---|---|---|---|---|
| Additions | 3,504,109 | - | - | 3,504,109 |
| Cost as of 31 December 2024 | 57,332,524 | 2,801,141,802 | 38,802,859 | 2,897,277,185 |
| Accumulated depreciation as of 1 January 2024 | (34,305,991) | (381,107,728) | (29,126,703) | (444,540,422) |
| Additions | (9,875,805) | (57,166,162) | (1,474,910) | (68,516,877) |
| Accumulated depreciation as of 31 December 2024 | (44,181,796) | (438,273,890) | (30,601,613) | (513,057,299) |
| Net book value as of 31 December 2024 | 13,150,728 | 2,362,867,912 | 8,201,246 | 2,384,219,886 |
| Licences | Operating rights | Softwares | Total | |
| Cost as of 1 January 2023 | 44,940,608 | 2,801,141,802 | 37,683,638 | 2,883,766,048 |
| Additions | 8,887,807 | - | 1,119,221 | 10,007,028 |
| Cost as of 31 December 2023 | 53,828,415 | 2,801,141,802 | 38,802,859 | 2,893,773,076 |
| Accumulated depreciation as of 1 January 2023 | (23,001,800) | (323,941,566) | (27,251,367) | (374,194,733) |
| Additions | (11,304,191) | (57,166,162) | (1,875,336) | (70,345,689) |
| Accumulated depreciation as of 31 December 2023 | (34,305,991) | (381,107,728) | (29,126,703) | (444,540,422) |
As of 31 December 2024 and 2023, movements of intangible assets are as follows:
Amortization expense of intangible assets amounting to TL 57,166,160 (31 December 2023: TL 57,166,160) has been reflected to cost of sales and amounting to TL11,350,715 (31 December 2023: TL 13,179,527) has been reflected to general administrative expenses.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, the breakdown of short-term provisions are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Short-term provisions for employee benefits | 87,203,840 | 63,818,505 |
| Provision for litigations | 15,500,634 | 19,823,897 |
| 102,704,474 | 83,642,402 |
Short-term provisions for employee benefits consist of unused vacation days provisions and premium provisions.
The movement table of unused vacation days provisions is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 22,081,952 | 17,882,236 |
| Net change in provision within the period | 12,052,016 | 15,195,734 |
| Inflation effect | (8,560,066) | (10,996,018) |
| Closing balance (31 December) | 25,573,902 | 22,081,952 |
The movement table of premium provisions is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 41,736,553 | 35,877,098 |
| Net change in provision within the period | 38,364,840 | 27,014,227 |
| Inflation effect | (18,471,455) | (21,154,772) |
| Closing balance (31 December) | 61,629,938 | 41,736,553 |
Other short-term provisions consist of provisions for ongoing litigations of the Group,
The movement table is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 19,823,897 | 29,643,054 |
| Net change in provision within the period | 1,989,177 | 2,183,378 |
| Inflation effect | (6,312,440) | (12,002,535) |
| Closing balance (31 December) | 15,500,634 | 19,823,897 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, the Group's collateral/pledge/mortgage ("CPM") balances are as follows:
| 31 December 2024 | 31 December 2023 | ||
|---|---|---|---|
| Currency | TL Amount | TL Amount | |
| A, Guarantees given in the name of its own legal | TL | - | - |
| personality* | US Dollars | 44,056,274,625 | 53,075,011,220 |
| B, Guarantees given on behalf of the fully | TL | - | - |
| consolidated companies C, Total amount of CPM's given to other 3rd parties for the purpose of carrying out their |
TL | - | - |
| ordinary commercial activities | |||
| D, Other guarantees i, Guarantees given on behalf of the majority shareholder |
TL | - - |
- - |
| ii, Guarantees given to on behalf of other group companies which are not in scope of B and C, |
TL | - | - |
| iii, Guarantees given on behalf of third parties which are not in scope of C, |
- | - | |
| Total | 44,056,274,625 | 53,075,011,220 |
* On 2 December 2021, within the scope of the Eurobond, movable pledge was established on the Company's movable assets to form the guarantee of the bond issuance.
The Company are subject to litigation and regulatory proceedings in the normal course of the business. From time to time, The Company may be a party to legal proceedings, including, but not limited to, personal injury claims, commercial disputes, regulatory or administrative actions and employment matters. These proceedings may be brought by, among others, current, former or prospective employees, suppliers, governmental agencies or other third parties.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Within the scope of the authority granted by the Electricity Market Law, EMRA has decided on the Procedures and Principles Regarding the Determination and Implementation of Resource Based Support Fee ("Procedures and Principles") dated 17 March 2022 and numbered 10866. With the Board Decision dated 29 March 2022 and numbered 10887, amendments were made to the Procedures and Principles. Accordingly, it has been ruled that fixed price and approved bilateral agreements entered into the market management system, which is an operating system where all contracts in the market are entered for 1 February and later, before 8 March 2022 may be exempted if they are submitted to Enerji Piyasaları İşletme A.Ş. ("EPİAŞ") together with the information and documents specified in the Procedures and Principles. According to the regulation, the bilateral agreements that are included in the scope of exemption will not be subject to the support price debt amount application. Following the Company's exemption application, which was duly submitted in due time within the scope of the Procedures and Principles, after the necessary information and documents were examined by EPİAŞ, the Company was notified by official letter that the Company's exemption application was accepted. In the following period, the Company performed the bilateral agreement transactions regarding the exemption in accordance with the relevant Procedures and Principles. At the end of the first 6-month implementation period of April - September 2022, with EMRA's Board Decision dated 29 September 2022 and numbered 11269, paragraph 1 of Article 7 of the Procedures and Principles was amended to enter into force on 1 October 2022. With the amended version of the article, the term "fixed price bilateral agreements" has been extended to include agreements up to the final consumer. On 13 January 2023, EMRA Board Decision dated 12 January 2023 and numbered 11574-13 was notified to the Company. In the aforementioned Board Decision, it was stated that it was determined that the Company had unjustly failed to pay the support fee debt amounts amounting to (not inflation accounted applied) TL 264,859,740 in the April-September 2022 period and it was decided to collect these amounts. Taking into account the precedent decisions in this regard, the Company reserves its legal rights with the assessment that if this retroactive decision is cancelled, the unlawful administrative action will be eliminated retroactively. In accordance with the agreements, the Company will reflect the additional costs that may arise regarding the transactions made within the scope of bilateral agreements to Gediz Elektrik Perakende Satış A.Ş., one of the group companies.
As of 31 December 2023, in accordance with the EMRA Board Decision dated 12 January 2023 and numbered 11574-13, the Company has made refund to EPİAŞ amounting to (not inflation accounted applied) TL 437,451,586 (including late fee and VAT) and reflected the same amount to Gediz EPSAŞ in accordance with the bilateral agreement. There is no impact on the financial statements related to this issue.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| 31 December 2024 | 31 December 2023 | ||
|---|---|---|---|
| Currency | TL equivalent | TL equivalent | |
| Guarantees given * | TL | 403,979,856 | 396,159,646 |
| Total | 403,979,856 | 396,159,646 |
* Guarantees given, in general, are comprised of the letters of guarantees given to the several institutions and organizations within the operations of the Group (to Energy Market Regulatory Authority ("EMRA"), Turkish Electricity Transmission Company ("TEİAŞ"), privatization administration and to the judicial authorities for some of the on-going lawsuits.
| 31 December 2024 | 31 December 2023 | ||
|---|---|---|---|
| Currency | TL equivalent | TL equivalent | |
| Guarantees received * | TL | 30,582,098 | 23,553,603 |
| Guarantees received * | EURO | 7,268,257 | 9,103,652 |
| Guarantees received ** | US Dollars | 4,112,176,592 | 5,305,997,032 |
| 4,150,026,947 | 5,338,654,287 |
* Guarantees received against the risk of failure to provide the services to be received from suppliers.
** Letters of guarantees received from Aydem EPSAŞ and Gediz EPSAŞ for electricity trade and regarding power plant investments.
As of 31 December 2024 and 2023, the long-term provisions are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Provisions for retirement pay liability | 88,504,467 | 98,987,807 |
| 88,504,467 | 98,987,807 |
As of 31 December 2024 and 2023, movements of provisions for retirement pay liability are as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 98,987,807 | 82,650,770 |
| Service cost | 7,718,633 | 9,175,273 |
| Interest cost | 19,954,210 | 13,791,846 |
| Retirement payments paid | (16,266,778) | (11,082,682) |
| Actuarial loss/(gain) | 14,393,040 | 48,742,049 |
| Inflation effect | (36,282,445) | (44,289,449) |
| Closing balance (31 December) | 88,504,467 | 98,987,807 |
TFRS require actuarial valuation methods to be developed to estimate the enterprise's obligation under defined benefit plans. Accordingly, the following actuarial assumptions have been used in the calculation of the total liability. Related rates have been presented by considering the weighted average of actuarial assumptions of the subsidiaries within the scope of consolidation.
The main actuarial assumptions used as of 31 December 2024 and 2023 are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Expected interest in the coming years % | 27.15 | 25 |
| Expected inflation in the coming years % | 21.95 | 21 |
| Expected probability of leaving without compensation in the coming years % |
4.26 | 3.56 |
The sensitivity analysis of the important assumptions used in the calculation of the provision for employee termination benefits is as follows:
| Discount rate | Possibility of separation | |||
|---|---|---|---|---|
| %0,50 increase | %0,50 decrease | %0,50 increase | %0,50 decrease | |
| 31 December 2024 | (4,281,139) | 4,673,492 | 1,193,581 | (1,150,814) |
| 31 December 2023 | (3,096,447) | 3,380,275 | 829,700 | (798,048) |
As of 31 December 2024 and 2023, short-term payables related to employee benefits are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Social security withholdings payable | 11,421,814 | 16,597,336 |
| Payables to personnel | 1,098,247 | 388,568 |
| 12,520,061 | 16,985,904 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, other current assets are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Advances to personnel | 136,740 | 42,356 |
| Short-term deferred value added tax (''VAT'') | 20,104 | 19,131 |
| 156,844 | 61,487 |
As of 31 December 2024 and 2023, other non-current assets are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Long-term deferred VAT | 36,873,586 | 47,974,011 |
| 36,873,586 | 47,974,011 |
As of 31 December 2024 and 2023, other liabilities are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Taxes and funds payable | 108,245,493 | 142,383,660 |
| Other | 124,194 | 4,753,944 |
| 108,369,687 | 147,137,604 |
The Company adopter the registered share capital system available to companies registered to the CMB and set a limit on its registered share capital representing registered type shares with a nominal value of kurus1, Registered and issued share capital of the Company is a follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Limit on registered share capital | 2,000,000,000 | 2,000,000,000 |
| Issued share capital in nominal value | 705,000,000 | 705,000,000 |
| Adjustment to share capital | 6,560,967,699 | 6,560,967,699 |
Companies in Turkey may exceed the limit on registered share capital in the event of the issuance of bonus shares to existing shareholders.
As of 31 December 2024, the Group's paid-in capital is divided into 705,000,000 shares (31 December 2023: 705,000,000 shares), each with a nominal value of TL 1. The ultimate shareholder of the Group is Aydem Holding Anonim Şirketi, whose controlling individual shareholder is Ceyhan Saldanlı. Shareholding structure is given in Note 1.
According to the Turkish Commercial Code ("TCC"), legal reserves are comprised of first and second legal reserves. The first legal reserves are generated by annual appropriations amounting to 5 percent of income disclosed in the Company's statutory accounts until it reaches 20 percent of paid-in share capital. If the dividend distribution is made in accordance with Dividend Distribution Communiqué II-19.1, a further 1/10 of dividend distributions, in excess of 5 percent of paid-in capital is to be appropriated to increase second legal reserves. If the dividend distribution is made in accordance with statutory records, a further 1/11 of dividend distributions, in excess of 5 percent of paid-in capitals are to be appropriated to increase second legal reserves. Under the TCC, the legal reserves can be used only to offset losses and are not available for any other usage unless they exceed 50 percent of paid-in capital. At 31 December 2024, legal reserves of the Group amounted to TL 237,952,730 (31 December 2023: TL 199,118,506).
Companies distribute their profits in accordance with their dividend policy determined by the General Assembly and with General Assembly resolution in accordance with provisions of the relevant legislation. According to the Turkish commercial code, legal reserves can only be distributed as dividends after they reached 50% of the company's paid in capital or issued share capital. Accordingly the Group determined its dividend distribution policy in line with the communique. Companies pay dividends according to their articles of association or dividend distribution policy. In addition, dividends may be paid in equal or different amount of installments, and cash dividend advances may be distributed over profit for the year period presented in financial statements.
Excess amount of selling price and nominal value for each share was recorded as share premium in equity.
As of December 31, 2022, the Company has gained TL 94,753,311 from the block sale of 5,733,502 shares purchased within the scope of the share buyback program with a price of TL 24.76 per share on December 23, 2022 at Borsa Istanbul. The inflation adjusted value of the related amount is TL 225,415,394.
5,000,000 shares of the Company with a nominal value of 1 TL were offered to the public on 29 April 2021 and were sold at TL 9.9 per share. The amount of TL 5,000,000 was used in the capital increase and the remaining TL 40,098,520 was recorded in the "Share Premium/(Discounts)" account. Expenses amounting to TL 4,401,480 incurred within the scope of initial public offering was deducted from "Share Premium/(Discount)" within the scope of TAS 32. The inflation adjusted value of the related amount is TL 202,221,374.
On April 16, 2019, in accordance with EMRA permission dated April 16, 2019, a total of 1,200 Düzce Aksu shares of Aydem Elektrik Perakende A.Ş. with a total value of TL 120,000,000 were taken over and the amount of TL 49,474,498 resulting from the transaction was recorded in the "Share Premium/(Discount)" account. The inflation adjusted value of the related amount is TL 324,235,929.
On December 31, 2020, the Company signed a share sale agreement to sell its 50% shares in Yalova RES Elektrik Üretim A.Ş. to Aydem Holding A.Ş. for TL 38,316,320. The Company has recognized the difference amounting to TL 1,845,320 between the value of the subsidiary disposed of and the fair value determined by independent valuation experts in equity. The inflation adjusted value of the related amount is TL 9,813,304.
As of December 31, 2023, within the scope of the share buyback program, shares were repurchased at an average price of TL 13.66 TL 83,423,193 related to the transaction was recorded under "Treasury Shares" account. The inflation adjusted value of the related amount is TL 169,191,401.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As at the end of December 31, 2024 and 2023, the comparative amounts of equity items prepared in accordance with Tax Procedural Law and TAS/TFRS are as follows:
| Inflation | |||
|---|---|---|---|
| 31 December 2024 | Historical value | Indexed value | adjustment effect |
| Paid-in capital | 705,000,000 | 7,265,967,699 | 6,560,967,699 |
| Share premium / discount | 186,171,649 | 761,686,001 | 575,514,352 |
| Treasury shares | (80,091,338) | (169,191,401) | (89,100,063) |
| Restricted reserves | 123,781,283 | 237,952,730 | 114,171,447 |
| 934,861,594 | 8,096,415,029 | 7,161,553,435 | |
| Inflation | |||
| 31 December 2023 | Historical value | Indexed value | adjustment effect |
| Paid-in capital | 705,000,000 | 7,265,967,699 | 6,560,967,699 |
| Share premium / discount | 186,171,649 | 761,686,001 | 575,514,352 |
| Treasury shares | (83,423,193) | (172,523,256) | (89,100,063) |
| Restricted reserves | 84,947,059 | 199,118,506 | 114,171,447 |
| 892,695,515 | 8,054,248,950 | 7,161,553,435 |
Details of revenue for the year ended 31 December 2024 and 2023 are as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Revenues from electricity sales | 6,583,577,587 | 9,180,783,497 |
| - Revenues from feed in tariff (FIT) | 2,653,974,946 | 2,728,272,027 |
| - Other than FIT | 3,929,602,641 | 6,452,511,470 |
| 6,583,577,587 | 9,180,783,497 |
Management monitor revenues into two categories due to its risk group: FIT and Other than FIT.
Details of the cost of sales for the year ended 31 December 2024 and 2023 are as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Cost of energy sales and generation | (4,977,046,462) | (5,213,430,269) |
| - Depreciation and amortization expenses | (2,955,778,327) | (3,018,949,714) |
| - Cost of energy sales and generation * | (2,021,268,135) | (2,194,480,555) |
| (4,977,046,462) | (5,213,430,269) |
* Cost of energy generation mainly includes costs of energy sales and generation, system usage and transmission costs, maintenance and repair expenses and personnel expenses.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The details of general administrative expenses for the year ended 31 December 2024 and 2023 are as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Administrative expenses * | (185,219,577) | (395,285,652) |
| Personnel expenses | (274,220,923) | (328,185,038) |
| Depreciation and amortization expenses | (53,014,767) | (55,876,112) |
| Consultancy expenses | (67,783,427) | (49,563,812) |
| Tax, duties and fees expenses | (21,767,461) | (13,613,109) |
| Maintenance and repair expenses | (8,123,132) | (7,078,686) |
| Insurance charges | (1,657,697) | (2,516,997) |
| License and dues expenses | (1,970,098) | (2,409,329) |
| Other | (29,917,731) | (57,262,723) |
| (643,674,813) | (911,791,458) |
* Consists of expenses related to shared services received from Aydem Holding.
The details of expenses incurred for the year ended 31 December 2024 and 2023 are as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Depreciation and amortization expenses | (3,008,793,094) | (3,074,825,826) |
| Costs of energy sales and generation | (1,318,206,769) | (1,618,099,650) |
| Personnel expenses | (750,852,212) | (714,760,039) |
| Administrative expenses | (185,219,577) | (395,285,652) |
| Consulting expenses | (85,848,296) | (62,409,007) |
| License and dues expenses | (26,739,768) | (39,296,568) |
| Other | (245,061,559) | (220,544,985) |
| (5,620,721,275) | (6,125,221,727) |
Details of other operating income for the year ended 31 December 2024 and 2023 are as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Foreign exchange income arising from operating activities, net | 345,363,372 | 1,197,956,074 |
| Interest income from commercial trasactions | 476,153,609 | 289,005,198 |
| Reversal of ECL provisions | 264,343 | 181,818 |
| Compensation from insurances | 122,988,848 | - |
| Other | 44,606,816 | 32,766,823 |
| 989,376,988 | 1,519,909,913 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Details of other operating expenses for the year ended 31 December 2024 and 2023 are as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Donations | (2,221,614) | (109,884,916) |
| Litigation expenses | (1,989,177) | (32,036,792) |
| Interest expense on trade transactions | (11,685,684) | (17,520,786) |
| Expenses related to allowance for trade receivables | (283,785) | - |
| Other | (1,132,399) | (1,769,164) |
| (17,312,659) | (161,211,658) |
The details of finance income for the year ended 31 December 2024 and 2023 are as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Foreign exchange income arising from financing activities | 345,162,309 | 1,014,089,036 |
| Income arising from Eurobond buy-back | - | 188,135,438 |
| Interest income | 454,630,019 | 157,095,506 |
| Interest income from related parties | 148,334,404 | 121,125,742 |
| Income from derivative transactions | - | 19,886,859 |
| Other | 8,158 | 6.849.627 |
| 948,134,890 | 1,507,182,208 |
The details of financial expenses for the year ended 31 December 2024 and 2023 are as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Foreign exchange losses arising from financing activities | (3,429,646,588) | (9,334,399,559) |
| Foreign exchange losses transferred from equity | (1,281,740,501) | (7,134,090,358) |
| Bond interest expenses | (2,175,758,502) | (2,540,045,149) |
| Bank commission and other expenses | (35,190,545) | (21,994,204) |
| Unwinding of discount on long term payables | (143,984,224) | - |
| Right of use obligations interest expenses (Note 23) | (22,368,260) | (18,402,701) |
| (7,088,688,620) | (19,048,931,971) |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The details of gains from investing activities for the year ended 31 December 2024 and 2023 are as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Currency protected deposit income | 882,206 | 344,042,311 |
| Income from sale of investment properties | - | 64,067,272 |
| Securities sales income | 30,917,826 | 25,930,873 |
| Gains on financial investments presented at fair value | 40,173,314 | - |
| Gains on sales of tangible fixed assets | 534,190 | 5,904,900 |
| Gains from investing rent | 329,785 | 1,011,796 |
| Gains on scrap sales | - | 398,786 |
| 72,837,321 | 441,355,938 |
The details of losses from investing activities for the year ended 31 December 2024 and 2023 are as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Impairment of fixed asset Losses arising from impairment of investments in progress* |
(18,688,110,281) (392,385,512) |
(5,112,895,394) - |
| Loss on sale of property, plant and equipment | (5,256,734) | (176,551,976) |
| (19,085,752,527) | (5,289,447,370) |
*An application was made to the Energy Market Regulatory Authority for the termination of the production licenses of Ey-Tur and Başat, subsidiaries of Aydem Yenilenebilir Enerji A.Ş. The termination request was approved by the board decision dated June 13, 2024. Based on the decision recognized under expenses from investment activities.
The Group is subject to corporation tax applicable in Turkey. The corporate tax rate is generally 25%, Corporate tax rate to be accrued on the taxable corporate income is determined by adding the expenses that cannot be deducted from the tax base in the determination of the commercial income and deducting gains from the tax, non-taxable income and other discounts (previous year losses, if any, and investment discounts used, if preferred).
In Turkey, provisional tax is calculated and accrued on a quarterly basis. The provisional tax rate that should be calculated on corporate earnings during the taxation phase of 2023 corporate earnings as of temporary tax periods is 25% (31 December 2023: 25%).
Losses can be carried forward for a maximum of 5 years to be deducted from future taxable profits. However, losses cannot be deducted retrospectively from the profits of previous years.
There is no clear and definitive agreement on tax assessment procedures in Turkey. Companies file their tax returns between 1-25 April following the close of the accounting year to which they relate. These declarations and the accounting records that are the basis of these declarations can be examined and changed by the Tax Office within 5 years.
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between its financial statements as reported for TFRS purposes and its statutory tax financial statements. These differences usually result in the recognition of revenue and expenses in different reporting periods for TFRS and tax purposes.
There is a withholding tax liability on dividend distributions and this withholding tax liability is accrued in the period in which the dividend payment is made. Dividend payments other than those made to nonresident corporations which have a place of business or permanent representative in Turkey and resident corporations are subject to withholding tax at the rate of 15%. In the application of withholding tax rates for dividend payments to non-resident corporations and real persons, the withholding tax rates in the related Double Tax Treaty Agreements are also taken into consideration. Allocation of retained earnings to capital is not considered as profit distribution and therefore not subject to withholding tax.
In Turkey, the transfer pricing provisions of the Corporate Tax Law "disguised profit distribution via transfer pricing" is stated in Article 13 entitled. The communiqué of 18 November 2007 on disguised profit distribution through transfer pricing regulates the details of the application.
If the taxpayer purchases or sells goods or services at a price or price that they determine in contradiction with the principle of conformity with peers, the gain is deemed to be completely or partially distributed implicitly through transfer pricing. Disguised profit distribution through such transfer pricing is considered an unacceptable expense for corporate tax.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Transfer pricing is disclosed in the 13th clause of the Corporate Tax Law under the heading "veiled shifting of profit" via transfer pricing. The application details are stated in the "general communiqué regarding veiled shifting of profits via transfer pricing" published on 18 November 2007. Veiled shifting of profits via transfer pricing will not be deducted from tax assessment for the purposes of corporate tax.
The provisions on disguised capital are regulated under Article 12 of the Corporate Tax Law and accordingly, the portion of all kinds of debts obtained directly or indirectly from shareholders or persons related to shareholders and used in the enterprise exceeding three times the beginning-of-period equity capital of the corporation at any time during the accounting period is considered as disguised capital for the relevant accounting period.
In order for the debts used in the enterprise to be considered as implicit capital;
The income tax for the years ended 31 December 2024 and 2023 are as follows:
| 1 January 31 December 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Deferred tax income/(expense) | 4,117,823,961 | 2,440,442,075 |
| 4,117,823,961 | 2,440,442,075 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, the reported tax provision is different from the amount calculated using the statutory tax rate on profit before tax. The reconciliation of tax expense / income is as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Period profit / loss | (11,770,278,365) | (1,848,193,431) |
| Tax income/(expenses) | 4,117,823,961 | 2,440,442,075 |
| Profit/(Loss) before taxation | (15,888,102,326) | (4,288,635,506) |
| Tax calculated with the company's legal tax rate | 3,972,025,582 | 1,072,158,877 |
| Non-taxable inflation adjustments | (2,291,520,141) | (4,160,526,217) |
| Effect of use of different tax rate | - | (638,151,807) |
| Non-deductible expenses | (48,742,207) | (215,358,216) |
| Tax exemption | 255,109,253 | 70,524,401 |
| The effect of tax losses which no deferred tax recognized | (320,885,239) | (132,870,129) |
| The reversal effect of tax losses which were previosly | ||
| recognized | (1,211,747,031) | - |
| In accordance with the provisions of the TPL, inflation | ||
| arising from inflation accounting deferred tax effect of | ||
| temporary differences | - | 2,362,209,714 |
| Monetary gain or loss and other | 3,763,583,744 | 4,082,455,452 |
| Tax income/(expense) | 4,117,823,961 | 2,440,442,075 |
As of 31 December 2024 and 2023, the movement of deferred tax liability is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 8,863,219,543 | 10,967,682,607 |
| Recognized in other comprehensive income | (601,847,168) | 335,979,011 |
| Recognised in profit or loss | (4,117,823,961) | (2,440,442,075) |
| Closing balance (31 December) | 4,143,548,414 | 8,863,219,543 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, the breakdown of deferred tax liabilities and assets is as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Increase / decrease in value of tangible assets | (5,484,812,612) | (12,066,431,656) |
| Property, plant and equipment and intangible assets | (5,412,231) | (133,033,138) |
| Amortized cost adjustment for financial borrowings | (42,480,420) | (104,219,950) |
| Rediscount on payables | 29,595,447 | (5,755,072) |
| Provision for litigation | 3,875,160 | 4,955,976 |
| Provisions for retirement pay liability | 26,870,343 | 27,886,273 |
| Expensing of foreign exchange differences related to | ||
| prepaid expenses | 47,754,497 | 48,648,815 |
| Expensing capitalized borrowing costs | 1,312,051,268 | 1,602,478,630 |
| Deferred tax asset from carry forward tax losses | - | 1,749,505,476 |
| Other | (30,989,866) | 12,745,103 |
| Deferred tax liabilities | (4,143,548,414) | (8,863,219,543) |
The breakdown of the unused tax loss carryforwards of the Group and its subsidiaries are as follows:
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Deferred tax | Deferred tax | |||
| Recognized | Not recognized | Recognized | Not recognized | |
| Expire in 2024 | - | - | 26,293,295 | - |
| Expire in 2025 | - | 59,159,030 | 59,159,030 | - |
| Expire in 2026 | - | 2,406,815,885 | 2,406,815,885 | - |
| Expire in 2027 | - | 156,512,065 | 156,512,065 | - |
| Expire in 2028 | - | 2,488,404,904 | 2,198,207,840 | - |
| Expire in 2029 | - | 1,283,540,958 | - | - |
| - | 6,394,432,842 | 4,846,988,115 | - |
The Group has not recognized deferred tax asset over the unused tax loss carryforwards as of 31 December 2024 due to the significant uncertainities in the projection of the taxable profits in under the Tax Provision Law.
As of 31 December 2024 and 2023, terms and conditions of financial liabilities are as follows:
| 31 December 2024 | |||||
|---|---|---|---|---|---|
| Currency | Effective interest rate |
Maturity for the latest payment |
Original currency amount |
Short-term | Long-term |
| USD | 8.63% | 2027 | 687,436,385 | 6,337,816,887 | 17,958,797,217 |
| 6,337,816,887 | 17,958,797,217 | ||||
| 31 December 2023 | |||||
| Currency | Effective interest rate |
Maturity for the latest payment |
Original currency amount |
Short-term | Long-term |
| USD | 8.63% | 2027 | 682,740,150 | 2,158,530,424 | 26,859,640,646 |
| 2,158,530,424 | 26,859,640,646 |
The Group on the Irish Stock Exchange issued USD 750,000,000 with a maturity of 5.5 years, coupon payments every 6 months, principal and coupon payments at maturity, annual fixed interest rate of 7.75%, on 2 August 2021. With the amount obtained through the bond issuance, the entire loan debt of the Company to the banks has been repaid, and the remaining amount is going to be used for the investments in line with the Company's growth strategy.
Between 11 May 2022 and 31 October 2023, USD 75,893,000 of the said bond was buyback transactions and the related amount was accounted for by deducting the amortized cost using the effective interest rate and the total bond amount.
The repayments of the bond and debt instruments agreements according to their original maturities as of 31 December 2024 and 2023 are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| To be paid within 3 months | 3,280,046,510 | 1,101,843,524 |
| To be paid within 3-12 months | 3,057,770,377 | 1,056,686,900 |
| To be paid in 1-2 year | 5,498,883,302 | 7,006,387,115 |
| To be paid in 2-3 year | 12,459,913,915 | 6,078,955,240 |
| To be paid in 3-4 year | - | 13,774,298,291 |
| 24,296,614,104 | 29,018,171,070 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The movement of financial liabilities for the period ended 31 December 2024 and 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance (1 January) | 29,018,171,070 | 31,371,999,481 |
| Repayment of financial liabilities * | - | (1,205,063,868) |
| Interest accrued in the period | 2,175,758,502 | 2,506,433,652 |
| Interest paid | (1,970,246,366) | (2,281,025,994) |
| Exchange rate differences accrued in the period | 4,711,387,089 | 10,417,804,502 |
| Exchange rate differences subjected to cash flow | ||
| hedge, accounted in OCI | 115,535,211 | (1,083,404,943) |
| Inflation effect | (9,753,991,402) | (10,708,571,760) |
| Closing balance (31 December) | 24,296,614,104 | 29,018,171,070 |
* Repurchase amount related to bond issuance.
The repayments of the lease liabilities according to their original maturities as of 31 December 2024 and 2023 are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| To be paid within a year | 32,230,199 | 24,003,392 |
| To be paid in 1-5 years | 15,105,437 | 15,227,083 |
| To be paid over 5 years | 27,201,936 | 39,446,532 |
| 74,537,572 | 78,677,007 |
For the period then ended as of 31 December 2024 and 2023, movements of lease of uses is as follows:
| 2024 | 2023 | |
|---|---|---|
| Lease Liabilities (1 January) | 78,677,007 | 72,742,077 |
| Additions | 50,440,237 | 99,009,815 |
| Accretion of interest | 22,368,260 | 18,402,701 |
| Payments | (51,557,437) | (59,545,584) |
| Inflation effect | (25,390,495) | (51,932,002) |
| Lease Liabilities (31 December) | 74,537,572 | 78,677,007 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The Group may be exposed to the following risks depending on the use of financial instruments:
This note provides information on the Group's exposure to the risks outlined above, the Group's objectives, policies and processes for measuring and managing risk, and the Group's management of capital.
Credit risk is the risk that a customer or a counterparty will fail to fulfil its obligations under the contract and is mainly attributable to customer receivables. The carrying values of financial assets represent the maximum exposure to credit risk.
The maximum credit risk the Group is exposed to as of 31 December 2024 and 2023 are as follows:
| Receivables | |||||
|---|---|---|---|---|---|
| 31 December 2024 | Trade receivables | Other receivables | Cash and cash | ||
| Related parties | Other parties |
Related parties |
Other parties |
equivalents | |
| Maximum exposure to credit risk as of reporting date (A+B+C+D+E) |
3,131,654,175 | 30,009,425 | 109,766,904 | 50,697,489 | 1,744,596,487 |
| - Secured part of the maximum credit risk exposures via collateral etc. |
3,131,654,175 | - | - | - | - |
| A. Net book value of financial assets those are neither overdue nor impaired |
940,116,261 | 30,009,425 | 109,766,904 | 50,697,489 | 1,744,596,487 |
| B. Net book value of assets that are overdue but not impaired |
2,191,537,914 | - | - | - | - |
| C. Net book value of impaired financial assets |
- | - | - | - | - |
| - Overdue (gross carrying amount) |
- | 7,096,567 | - | - | - |
| - Impairment amount (-) | - | (7,096,567) | - | - | - |
| - Secured portion covered with guarantees, etc |
- | - | - | ||
| - Overdue (gross carrying amount) |
- | - | - | - | - |
| - Impairment amount (-) | - | - | - | - | - |
| - Secured portion covered with guarantees, etc |
- | - | - | - | - |
| D. Off-balance sheet items including risk |
- | - | - | - | - |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| Receivables | |||||
|---|---|---|---|---|---|
| 31 December 2023 | Cash and cash equivalents |
||||
| Trade receivables | Other receivables | ||||
| Related parties | Other parties |
Related parties |
Other parties |
||
| Maximum exposure to credit risk as of reporting date (A+B+C+D+E) |
2,784,914,519 | 104,213,645 | 926,252,068 | 25,534,774 | 2,011,698,240 |
| - Secured part of the maximum credit risk exposures via collateral etc. |
2,784,914,519 | - | - | - | - |
| A. Net book value of financial assets those are neither overdue nor impaired |
503,265,382 | 104,213,645 | 926,252,068 | 25,534,774 | 2,011,698,240 |
| B. Net book value of assets that are overdue but not impaired |
2,281,649,137 | - | - | - | - |
| C. Net book value of impaired | - | - | - | - | - |
| financial assets | |||||
| - Overdue (gross carrying amount) |
- | 10,195,632 | - | - | - |
| - Impairment amount (-) | - | (10,195,632) | - | - | - |
| - Secured portion covered | - | - | - | ||
| with guarantees, etc | |||||
| - Overdue (gross carrying | - | - | - | - | - |
| amount) | |||||
| - Impairment amount (-) | - | - | - | - | - |
| - Secured portion covered | - | - | - | - | - |
| with guarantees, etc | |||||
| D. Off-balance sheet items including risk |
- | - | - | - | - |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
Liquidity risk is the risk that the Group will not be able to meet its financial liabilities in the future. The Group's liquidity risk is managed by providing sufficient financing facilities from various financial institutions in a way that does not harm or damage the Group's reputation in order to fund the current and future debt requirements under normal conditions or in crisis situations.
As at 31 December 2024 and 2023, the maturity of financial liabilities including estimated interest payments according to the payment schedule is as follows:
| Contractual | ||||||
|---|---|---|---|---|---|---|
| 31 December 2024 | Book value | cash outflow | 0-3 months | 3-12 months | 1-5 years | > 5 years |
| Non-derivative financial liabilities | ||||||
| Financial liabilities | 24,296,614,104 | 27,518,455,950 | 3,305,788,531 | 3,213,464,729 | 20,999,202,690 | - |
| Financial lease liabilities (TFRS 16) | 74,537,572 | 201,534,600 | 10,190,097 | 47,959,779 | 51,194,125 | 92,190,599 |
| Trade payables to related parties | 42,222,472 | 42,222,472 | 42,222,472 | - | - | - |
| Trade payables to third parties | 187,228,218 | 187,228,218 | 141,354,364 | 45,873,854 | - | - |
| Total | 24,600,602,366 | 27,949,441,240 | 3,499,555,464 | 3,307,298,362 | 21,050,396,815 | 92,190,599 |
| Contractual | ||||||
| 31 December 2023 | Book value | cash outflow | 0-3 months | 3-12 months | 1-5 years | > 5 years |
| Non-derivative financial liabilities | ||||||
| Financial liabilities | 29,018,171,070 | 35,312,653,908 | 1,110,235,559 | 1,110,235,559 | 33,092,182,790 | - |
| Financial lease liabilities (TFRS 16) | 78,677,007 | 231,303,236 | 6,787,243 | 31,092,355 | 53,870,189 | 139,553,449 |
| Other long term payables to related parties | 72,770,079 | 251,694,571 | - | - | - | 251,694,571 |
| Trade payables to related parties | 16,510,831 | 16,510,831 | 16,510,831 | - | - | - |
| Trade payables to third parties | 565,627,156 | 565,627,156 | 564,131,285 | 1,495,871 | - | - |
Market risk; The risk of changes in the money market, such as exchange rates, interest rates or the prices of instruments traded in the securities markets, may change the Group's income or the value of its financial assets. Market risk management aims to optimize return while controlling market risk exposure within acceptable limits.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
While the Group's functional currency is Turkish Lira, the Group is exposed to foreign exchange risks. The Group has outstanding US Dollar debt instruments due to power plant investments. The Group also realizes significant USD indexed sales within the scope of the Feed-in Tariff.
As of 31 December 2024 and 2023, the foreign currency position of the Group arises from foreign currency assets and liabilities stated in the table below.
| 31 December 2024 | ||||
|---|---|---|---|---|
| Original Amounts | ||||
| TL Equivalent | US Dollars | EUR | ||
| Assets | ||||
| Cash and cash equivalents | 342,318,044 | 9,694,057 | 8,406 | |
| Financial investments | 787,779,816 | 22,329,170 | - | |
| Other receivables from related parties | 109,766,892 | 3,111,280 | - | |
| Trade receivables from related parties | 1,297,190,092 | 36,761,983 | 5,888 | |
| Total Asset | 2,537,054,844 | 71,896,490 | 14,294 | |
| Liabilities | ||||
| Short-term and long-term financial liabilities | (24,296,614,104) | (687,436,385) | - | |
| Short-term trade payables to third parties | (23,417,682) | (460,541) | (195,166) | |
| Total liabilities | (24,320,031,786) | (687,896,926) | (195,166) | |
| Foreign currency liability position | (21,782,976,942) | (616,000,436) | (180,872) | |
| Amounts subject to cash flow hedge accounting * | 20,254,667,192 | 574,107,000 | - | |
| Net foreign currency position after cash flow hedge | (1,528,309,750) | (41,893,436) | (180,872) | |
| 31 December 2023 | ||||
| Original Amounts | ||||
| TL equivalent (functional currency) (historical values) |
TL equivalent (functional currency) (historical values) |
US Dollars | EUR | |
| Assets | ||||
| Cash and cash equivalents | 406,475,704 | 281,534,259 | 9,303,295 | 235,219 |
| Financial investments | 904,719,425 | 626,629,120 | 21,286,258 | - |
| Trade receivables from third parties | 123,383,388 | 85,458,123 | 2,902,967 | - |
| Other receivables from related parties | 2,841,469,579 | 1,968,066,047 | 66,770,418 | 75,678 |
| Total Asset | 4,276,048,096 | 2,961,687,549 | 100,262,938 | 310,897 |
| Liabilities | ||||
| Short-term and long-term financial liabilities | (29,018,171,069) | (20,098,641,084) | (682,740,150) | - |
| Short-term trade payables to third parties | (356,309,023) | (246,787,682) | (8,197,504) | (167,862) |
| Total liabilities | (29,374,480,092) | (20,345,428,766) | (690,937,654) | (167,862) |
| Foreign currency liability position | (25,098,431,996) | (17,383,741,217) | (590,674,716) | 143,035 |
| Amounts subject to cash flow hedge accounting * | 24,400,989,362 | 16,900,676,687 | 574,107,000 | - |
| Net foreign currency position after cash flow hedge | (697,442,634) | (483,064,530) | (16,567,716) | 143,035 |
* Please refer to Note 2.8.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The Group is mainly exposed to foreign currency risk in USD Dollars. The following table details the Group's sensitivity to a 10% increase and decrease in US Dollars and Euro, 10% is the rate used to report the exchange rate risk within the Group to the executives and this rate indicates the possible change in the exchange rates expected by the management. The sensitivity analysis covers only foreign currency denominated monetary items at the end of the year and shows the effects of the 10% increase in foreign exchange rates of these items at the end of the year excluding tax effects. A positive value indicates an increase in profit or loss and other equity items.
| Exchange rate sensitivity analysis table | ||
|---|---|---|
| 31 December 2024 | ||
| Increase in value of foreign currency |
Decrease in value of foreign currency |
|
| If TL gains/losses 10% against US dollar | ||
| 1- TL net assets / liabilities | (2,173,268,017) | 2,173,268,017 |
| 2- TL hedged portion (-) | 2,025,466,719 | (2,025,466,719) |
| 3- TL net effect (1 + 2) | (147,801,298) | 147,801,298 |
| If the TL gains/losses 10% against the Euro | ||
| 4- TL net assets / liabilities | (664,455) | 664,455 |
| 5- TL hedged portion (-) | - | - |
| 6- Net effect of TL (4 + 5) | (664,455) | 664,455 |
| Total (3 + 6) | (148,465,753) | 148,465,753 |
| Exchange rate sensitivity analysis table | ||
|---|---|---|
| 31 December 2023 | ||
| Increase in value of | Decrease in value of | |
| foreign currency | foreign currency | |
| If TL gains/losses 10% against US dollar | ||
| 1- TL net assets / liabilities | (1,738,840,042) | 1,738,840,042 |
| 2- TL hedged portion (-) | 1,690,067,669 | (1,690,067,669) |
| 3- TL net effect (1 + 2) | (48,772,373) | 48,772,373 |
| If the TL gains/losses 10% against the Euro | ||
| 4- TL net assets / liabilities | 465,921 | (465,921) |
| 5- TL hedged portion (-) | - | - |
| 6- Net effect of TL (4 + 5) | 465,921 | (465,921) |
| Total (3 + 6) | (48,306,452) | 48,306,452 |
In managing capital, the Group's objectives are to maintain the Group's ability to continue to operate in order to maintain an optimal capital structure to provide returns to shareholders, benefits to other shareholders, and to reduce capital costs.
In order to maintain or adjust the capital structure, the Group determines the amount of dividend payable to shareholders.
The Group monitors capital on the basis of the net financial debt / equity ratio. Net financial debt is calculated by deducting cash and cash equivalents from total financial debt.
As of 31 December 2024 and 2023, net financial liabilities/equity ratios are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Total financial liabilities * | 24,296,614,104 | 29,018,171,070 |
| Cash and cash equivalents | (3,373,277,823) | (2,916,417,662) |
| Net financial liabilities | 20,923,336,281 | 26,101,753,408 |
| Equity | 27,365,077,469 | 41,322,323,495 |
| 76.46% | 63.17% |
* Includes issued bond liabilities (Note 23.1).
When measuring the fair value of an asset or liability, the Company uses market observable inputs. Fair value measurements are categorised into different levels of the fair value hierarchy based on the information used in the valuation techniques described below.
If the information used to measure the fair value of an asset or liability can be categorised into a different level of the fair value hierarchy, that fair value is categorised into the same level of the fair value hierarchy that includes the least significant information for the overall measurement.
The Company recognises transfers between levels in the fair value hierarchy at the end of the reporting period in which the change occurs.
Fair value is the amount that would be realised in a sale transaction between two parties willing to exchange a financial asset, other than in a forced sale or liquidation, and is most readily measurable at fair value.
The Company has generally assumed that the carrying amounts of financial instruments with short remaining maturities or financial instruments that are initially recognised close to the reporting date approximate their fair values. It is also assumed that the fair value of foreign currency assets and liabilities within financial instruments, which are translated into Turkish Lira at the year-end exchange rate, approximates their carrying value.
However, since it is necessary to use judgement to determine the estimated fair value, fair value measurements may not reflect the values that may occur in current market conditions. Therefore, apart from the aforementioned assumptions, inputs that are not based on observable market data for financial assets or liabilities (unobservable inputs), which are used by the Company management in the use of judgement in fair value analysis, have been assessed within the scope of the classification defined as level 3 of the valuation method for the comparative fair value analysis of long-term financial liabilities.
As at 31 December 2024, the Company's central assets are measured at fair value determined by an independent professional valuation company using other valuation techniques that include direct or indirect observable inputs (Level 3).
The carrying values of financial assets including cash and cash equivalents which are accounted with their costs are estimated to be their fair values since they are short term.
The carrying values of trade receivables along with the related allowances for uncollectability are estimated to be their fair values.
The carrying values of trade payables are estimated to be their fair values since they are short term and leasing liabilities are estimated to be their fair values assuming that there is no significant change in the market prices of similar leases with the same maturity.
The Company uses derivative financial instruments (mainly foreign currency forward contracts) to hedge its foreign currency risk. Derivative financial instruments are measured at fair value at the contract date and remeasured at fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are recognised in the statement of profit or loss in the period in which they arise.
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
The calculation of basic and diluted Earnings per share for the period ended 31 December 2024 and 2023 were based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares as follows:
| 31 December 2024 |
31 December 2023 |
|
|---|---|---|
| Numerator: | ||
| Income / (loss) for the period attributable to owners of the company |
(11,770,688,933) | (1,848,193,431) |
| Denominator: Weighted average number of shares |
698,894,974 | 700,788,482 |
| Basic and diluted profit /(loss) per share | (16.84) | (2.64) |
| Number of | Time weighting |
| 31 December 2024 | shares | (days) |
|---|---|---|
| Outstanding ordinary shares as of 1 January 2024 (Par Value: TL 1) | 698,894,974 | 365 |
| Weighted average for the period | 698,894,974 | 365/365 |
| Number of | Time weighting | |
|---|---|---|
| 31 December 2023 | shares | (days) |
| Outstanding ordinary shares as of 1 January 2023 (Par Value: TL 1) | 705,000,000 | 10 |
| Outstanding ordinary shares as of 11 January 2023 | 704,814,974 | 13 |
| Outstanding ordinary shares as of 24 January 2023 | 704,614,974 | 24 |
| Outstanding ordinary shares as of 17 February 2023 | 704,414,974 | 5 |
| Outstanding ordinary shares as of 22 February 2023 | 704,214,974 | 40 |
| Outstanding ordinary shares as of 3 April 2023 | 703,914,974 | 1 |
| Outstanding ordinary shares as of 4 April 2023 | 703,714,974 | 1 |
| Outstanding ordinary shares as of 5 April 2023 | 703,614,974 | 1 |
| Outstanding ordinary shares as of 6 April 2023 | 703,514,974 | 1 |
| Outstanding ordinary shares as of 7 April 2023 | 703,414,974 | 3 |
| Outstanding ordinary shares as of 10 April 2023 | 703,314,974 | 1 |
| Outstanding ordinary shares as of 11 April 2023 | 703,214,974 | 6 |
| Outstanding ordinary shares as of 17 April 2023 | 703,114,974 | 1 |
| Outstanding ordinary shares as of 18 April 2023 | 703,014,974 | 1 |
| Outstanding ordinary shares as of 19 April 2023 | 702,964,974 | 6 |
| Outstanding ordinary shares as of 25 April 2023 | 702,894,974 | 1 |
| Outstanding ordinary shares as of 26 April 2023 | 702,694,974 | 7 |
| Outstanding ordinary shares as of 3 May 2023 | 702,394,974 | 6 |
| Outstanding ordinary shares as of 9 May 2023 | 701,894,974 | 1 |
| Outstanding ordinary shares as of 10 May 2023 | 701,394,974 | 1 |
| Outstanding ordinary shares as of 11 May 2023 | 700,394,974 | 1 |
| Outstanding ordinary shares as of 12 May 2023 | 699,394,974 | 42 |
| Outstanding ordinary shares as of 21 June 2023 | 698,894,974 | 192 |
| Weighted average for the period | 700,788,482 | 365 / 365 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
As of 31 December 2024 and 2023, short term prepaid expenses as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Advances given for purchase orders | 75,255,432 | 46,293,215 |
| Prepaid expense for the following months | 31,634,478 | 11,538,094 |
| Job advances | 185,322 | 272,775 |
| 107,075,232 | 58,104,084 |
As of 31 December 2024 and 2023, long term prepaid expenses as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Advances given | 288,225,069 | 393,454,785 |
| 288,225,069 | 393,454,785 |
As of 31 December 2024 and 2023, financial investments are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Restricted accounts | 770,168,231 | 747,469,689 |
| - Interest reserve account related to Eurobond * | 770,168,231 | 747,469,689 |
| Currency protected deposits | - | 157,249,733 |
| Investment funds | 858,513,105 | - |
| 1,628,681,336 | 904,719,422 |
* The Company shall, so long as any Note remains outstanding, fund the interest reserve account on a monthly basis and maintain the required balance given the amount of upcoming interest payment. The amount standing in the account will gradually increase and finally be equal to debt service amount on the date of debt service.
The Group's explanation regarding the fees for the services received from the independent audit firms, calculated based on purchasing power parity as of December 31, 2024, which is based on the letter of POA dated August 19, 2021, the preparation principles of which are based on the Board Decision published in the Official Gazette on March 30, 2021, are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Independent audit fees related to reporting period | 5,185,110 | 2,552,212 |
| Fees related to other assurance services | 7,429,240 | 296,972 |
| 12,614,350 | 2,849,184 |
Notes to the consolidated financial statements for the year period ended 31 December 2024 (Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2024, unless otherwise indicated.)
| 1 January | |
|---|---|
| 31 December | |
| 2024 | |
| Balance sheet items | 6,839,800,779 |
| Tangible and intangible fixed assets | 22,027,579,431 |
| Right of use assets | 113,060,500 |
| Prepaid expenses | 69,029,933 |
| Paid-in capital | (2,233,394,262) |
| Restricted reserves | (61,204,529) |
| Premiums/discounts on shares | (234,125,063) |
| Treasury shares | 53,029,750 |
| Deferred tax liabilities | (2,724,353,381) |
| Accumulated other comprehensive income and expenses not to be reclassified to profit or loss | (591,260,771) |
| Accumulated other comprehensive income and expenses to be reclassified to profit or loss | 5,474,940,465 |
| Retained earnings | (15,053,501,294) |
| Profit or loss statement items | 490,645,190 |
| Revenue | (1,001,325,755) |
| Cost of sales | 582,886,178 |
| General administrative expenses | 89,818,625 |
| Other income/expenses from operating activities | (172,682,024) |
| Income/expenses from investing activities | (596,593) |
| Financing income/expenses | 992,544,759 |
| 7,330,445,969 |
On February 3, 2025, USD 93,532,346 was transferred to be transferred to the relevant investor accounts for the payment of coupon number 7 and principal payment of the bonds with a nominal value of USD 750 million and a maturity of 5.5 years.
As explained in Note 5, the Group has trade receivables from related parties of TL 2,421,554,330 from Aydem Elektrik Perakende Satış A.Ş. and TL 710,099,845 from Gediz Elektrik Perakende Satış A.Ş. as of 31 December 2024. The Group has collected TL 2,629,902,097 from Aydem Elektrik Perakende Satış A.Ş. and TL 747,094,551 from Gediz Elektrik Perakende Satış A.Ş. in the subsequent period.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.