ZORLU ENERJİ ELEKTRİK ÜRETİM A.Ş.

Quarterly Report • Nov 11, 2024

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Audited
	30 September	31 December
ASSETS	2024	2023
Current assets:
Cash and cash equivalents	1.665.780	2.627.211
Financial investments	403.393	542.176
Trade receivables	6.451.541	8.134.280
Trade receivables from related parties -	1.355.484	1.676.923
Trade receivables from third parties -	5.096.057	6.457.357
Other receivables	2.586.937	1.756.714
Other receivables from related parties -	2.085.504	1.558.298
Other receivables from third parties -	501.433	198.416
Receivables from service concession arrangements	2.660.507	2.354.333
Inventories	536.584	721.905
Prepaid expenses	163.024	142.479
-Prepaid expenses to third parties	163.024	142.479
Other current assets	926.158	1.161.383
Other current assets from third parties -	926.158	1.161.383
Assets held for sale	-	9.496.694
Total current assets	15.393.924	26.937.175
Non-current assets:
Financial investments	2.653	2.653
- Other financial investments	2.653	2.653
Trade receivables	574.025	506.909
- Trade receivables from third parties	574.025	506.909
Other receivables	11.756.085	16.786.096
- Other receivables from related parties	11.753.538	16.356.504
- Other receivables from third parties	2.547	429.592
Contract assets	1.155.177	408.586
Other contract assets -	1.155.177	408.586
Receivables from service concession arrangements	7.735.189	10.036.744
Equity accounted investees	5.560.080	6.068.254
Tangible assets	54.281.681	54.924.173
Right of use assets	832.498	820.923
Intangible assets	10.013.181	10.408.492
Derivative financial assets	297.023	466.894
Prepaid expenses	12.696	15.048
Prepaid expenses to third parties -	12.696	15.048
Deferred tax assets	7.602.632	6.451.187
Other non-current assets	3.095	4.205
- Other non-current assets to third parties	3.095	4.205
Total non-current assets	99.826.015	106.900.164
Total assets	115.219.939	133.837.339

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Audited
	30 September	31 December
LIABILITIES	2024	2023
Current liabilities:
Short-term borrowings	2.034.112	2.251.428
Short-term borrowings from third parties	2.034.112	2.251.428
Bank borrowings -	1.525.880	1.665.369
Issued debt instruments -	508.232	586.059
Short-term portion of long-term borrowings	14.235.019	20.714.050
Short-term portion of long-term borrowings from third parties	14.235.019	20.714.050
Bank borrowings -	8.013.506	15.559.270
Lease liabilities -	101.268	169.805
Issued debt instruments -	6.120.245	4.984.975
Trade payables	4.816.082	5.271.812
Trade payables to related parties -	688.065	317.939
Trade payables to third parties -	4.128.017	4.953.873
Payables related to employee benefits	130.819	66.478
Other payables	2.076.820	1.664.830
Other payables to related parties -	42.745	49.430
Other payables to third parties -	2.034.075	1.615.400
Deferred income	2.882.310	2.556.525
Deferred income from related parties -	2.671.339	2.556.525
Deferred income from third parties -	210.971	-
Current tax liabilities	189.644	144.258
Short-term provisions	103.016	100.224
Short-term provisions for employee benefits -	86.344	71.211
Other short-term provisions -	16.672	29.013
Other current liabilities	570.419	579.295
Other current liabilities to third parties -	570.419	579.295
Liabilities related to assets held for sale	-	9.527.365
Total current liabilities	27.038.241	42.876.265
Long-term borrowings	24.128.936	34.767.373
Long-term borrowings from third parties	24.128.936	34.767.373
Bank borrowings -	16.545.879	24.613.716
Lease liabilities -	282.805	403.070
Issued debt instruments -	7.300.252	9.750.587
Other payables	14.637	15.172
Other payables to related parties -	14.637	15.172
Long-term provisions	452.652	389.128
Long-term provisions for employee benefits -	452.652	389.128
Deferred tax liabilities	3.835.356	3.521.121
Total non-current liabilities	28.431.581	38.692.794
Total liabilities	55.469.822	81.569.059

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited 30 September	Audited 31 December
	2024	2023
EQUITY
Equity attributable to owners of the Company	59.749.228	52.172.691
Paid-in capital	5.000.000	5.000.000
Adjustments to share capital	23.476.680	23.476.680
Share premium	44.211	44.211
Other comprehensive income not to be reclassified in profit or loss	7.936.738	7.163.882
Gains on revaluation and remeasurement -	7.936.738	7.163.882
Increases on revaluation of property. plant and equipment	8.250.675	7.514.157
Actuarial losses	(313.937)	(350.275)
Other comprehensive expense to be reclassified in profit or loss	(29.394.003)	(33.522.048)
Currency translation difference -	2.991.777	2.617.053
Losses on hedging transactions -
Losses on cash flow hedges	(32.385.780)	(36.139.101)
Restricted reserves appropriated from profits	136.706	136.706
Legal reserves -	136.706	136.706
Retained earnings	50.832.736	35.035.504
Current period profit	1.716.160	14.837.756
Non-controlling interests	889	95.589
Total equity	59.750.117	52.268.280
Total liabilities and equity	115.219.939	133.837.339

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Unaudited	Unaudited	Unaudited
	1 January-	1 July-	1 January-	1 July
	30 September	30 September	30 September	30 September
	2024	2024	2023	2023
PROFIT/(LOSS)
Revenue	20.236.486	8.385.909	30.229.235	9.644.210
Cost of sales (-)	(17.630.686)	(7.085.092)	(24.918.485)	(8.433.924)
GROSS PROFIT	2.605.800	1.300.817	5.310.750	1.210.286
General administrative expenses (-)	(1.427.553)	(476.599)	(1.281.093)	(334.633)
Marketing expenses (-)	(179.869)	(59.747)	(176.740)	(56.861)
Other income from operating activities	2.424.188	847.423	3.168.441	1.072.772
Other expenses from operating
activities (-)	(1.913.387)	(549.560)	(2.279.203)	(811.042)
Profit from operating activities	1.509.179	1.062.334	4.742.155	1.080.522
Income from investment activities	4.365.035	-	5.749.333	-
Loss from investment activities	-	-	(14.372)	(14.372)
Share of gain on equity accounted
investees	561.816	335.745	193.485	120.379
PROFIT BEFORE
FINANCE INCOME/(EXPENSE)	6.436.030	1.398.079	10.670.601	1.186.529
Monetary gain/(loss)	1.060.369	252.859	6.047.705	1.949.841
Finance income	3.679.681	638.549	10.716.088	2.287.749
Finance expense (-)	(13.652.236)	(3.792.854)	(22.097.896)	(4.710.015)
PROFIT (LOSS) FROM CONTINUING
OPERATIONS. BEFORE TAX	(2.476.156)	(1.503.367)	5.336.498	714.104
Tax (expense) from continuing	2.226.088	489.979	(2.832.927)	(2.775.603)
operations
Current period tax expense -	(408.179)	(78.616)	(800.905)	(326.091)
Deferred tax income/(expense) -	2.634.267	568.595	(2.032.022)	(2.449.512)
PROFIT (LOSS) FROM CONTINUING
OPERATIONS	(250.068)	(1.013.388)	2.503.571	(2.061.499)
PROFIT/LOSS FROM DISCONTINUED	1.966.010	7.597	(297.530)	(290.071)
OPERATIONS FOR THE PERIOD
PROFIT (LOSS) FOR THE PERIOD	1.715.942	(1.005.791)	2.206.041	(2.351.570)
Profit attributable to:
Non-controlling interests	(218)	180	121	87
Equity holders of the Parent	1.716.160	(1.005.971)	2.205.920	(2.351.657)
Income per share (TL)
- Income/(loss) per share from
continuing operations	(0.05)	(0.20)	0.82	(1.01)
- Income/(loss) per share from
discontinuing operations	0.39	0.00	(0.10)	(0.09)

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited 1 January - 30 September 2024	Unaudited 1 July - 30 September 2024	Unaudited 1 January - 30 September 2023	Unaudited 1 July - 30 September 2023
OTHER COMPREHENSIVE INCOME/(LOSS)
CURRENT PERIOD NET PROFIT	1.715.942	(1.005.791)	2.206.041	(2.351.570)
Other comprehensive income/(loss) not to be
reclassified to profit or loss	1.637.850	728.597	(150.562)	(34.406)
-Gains on revaluation of property.
plant and equipment	2.207.104	907.314	-	-
-Actuarial losses	(23.304)	64.149	(188.203)	(43.008)
Taxes relating to components of other comprehensive income/(loss) not to be
reclassified to profit or loss	(545.950)	(242.866)	37.641	8.602
Taxes relating to gains on revaluation -
of property. plant and equipment	(551.776)	(226.829)	-	-
Taxes relating to actuarial losses -	5.826	(16.037)	37.641	8.602
Other comprehensive loss to be
reclassified to profit or loss	4.128.045	1.239.621	4.289.075	5.454.727
- Exchange differences on translation of foreign
operations.net of tax	374.724	(189.885)	611.980	(756.165)
Gains on exchange differences on translation
of foreign operations.net of tax	374.724	(189.885)	611.980	(756.165)
- Other comprehensive income (loss) relating to cash flow hedges	5.004.428	1.906.008	4.596.369	7.763.616
Taxes relating to components of other
comprehensive loss to be
reclassified to profit or loss	(1.251.107)	(476.502)	(919.274)	(1.552.724)
-Taxes relating to cash flow hedges	(1.251.107)	(476.502)	(919.274)	(1.552.724)
OTHER COMPREHENSIVE INCOME/(LOSS)	5.765.895	1.968.218	4.138.513	5.420.321
TOTAL COMPREHENSIVE INCOME/(LOSS)	7.481.837	962.427	6.344.554	3.068.751
Total comprehensive income/(loss)
attributable to
Non-controlling interests	(218)	180	121	87
Equity holders of the Parent	7.482.055	962.247	6.344.433	3.068.664

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

					Items that will not be		Items that are or may be
				reclassified to profit or loss			reclassified to profit or loss
	Share capital	Adjustments to share capital	Share premium	Revaluation of property plant and equipment	Actuarial losses	Foreign currency translation differences	Hedge reserves	Legal reserves	Retained earnings	Net profit for the period	Equity of the parent company	Non controlling interests	Total equity
Balance at 1 January 2023	2.500.000	22.064.544	13.532	23.471.379	(190.992)	2.963.761	(36.823.974)	136.706	19.967.783	12.897.907	47.000.646	(100.929)	46.899.717
Shareholders' additional capital contributions	2.500.000	1.166.777	30.678	-	-	-	-	-	-	-	3.697.455	-	3.697.455
Acquisition or disposal of subsidiary	-	-	-	-	432	10.807	-	-	(11.239)	-	-	-	-
Transactions with the non controlling parties	-	-	-	-	-	-	-	-	-	-	-	125.201	125.201
Transfers	-	-	-	(1.786.526)	-	-	-	-	14.684.433	(12.897.907)	-	-	-
Total comprehensive income	-	-	-	-	(150.562)	611.980	3.677.095	-	-	2.205.920	6.344.433	121	6.344.554
-Net profit for the period	-	-	-	-	-	-	-	-	-	2.205.920	2.205.920	121	2.206.041
-Total comprehensive loss	-	-	-	-	(150.562)	611.980	3.677.095	-	-	-	4.138.513	-	4.138.513
30 September 2023	5.000.000	23.231.321	44.210	21.684.853	(341.122)	3.586.548	(33.146.879)	136.706	34.640.977	2.205.920	57.042.534	24.393	57.066.927
Balance at 1 January 2024	5.000.000	23.476.680	44.211	7.514.157	(350.275)	2.617.053	(36.139.101)	136.706	35.035.504	14.837.756	52.172.691	95.589	52.268.280
Acquisition or disposal of subsidiary	-	-	-	-	53.816	-	-	-	40.666	-	94.482	(94.482)	-
Transfers	-	-	-	(918.810)	-	-	-	-	15.756.566	(14.837.756)	-	-	-
Total comprehensive income	-	-	-	1.655.328	(17.478)	374.724	3.753.321	-	-	1.716.160	7.482.055	(218)	7.481.837
-Net profit for the period	-	-	-	-	-	-	-	-	-	1.716.160	1.716.160	(218)	1.715.942
-Total comprehensive income	-	-	-	1.655.328	(17.478)	374.724	3.753.321	-	-		5.765.895		5.765.895
30 September 2024	5.000.000	23.476.680	44.211	8.250.675	(313.937)	2.991.777	(32.385.780)	136.706	50.832.736	1.716.160	59.749.228	889	59.750.117

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

		Unaudited	Unaudited
		1 January-	1 January
	Notes	30 September 2024	30 September 2023
CASH FLOWS FROM OPERATING ACTIVITIES:		10.114.276	11.657.074
Net profit for the period		1.715.942	2.206.041
-Net profit for the period from continued operations		(250.068)	2.503.571
-Net profit/(loss) for the period from discontinued operations		1.966.010	(297.530)
Adjustments related to period net profit/(loss) reconciliation		(530.876)	1.914.725
Adjustments related to depreciation and amortization		3.380.472	4.063.586
Adjustments for provisions		151.458	43.038
-Adjustments for provisions related with employee benefits		148.666	59.405
-Adjustments for (reversal of) other provisions		2.792	(16.367)
Adjustments related to interest (income) and expense		5.073.645	4.588.500
-Adjustments related to interest (income)		(2.592.332)	(2.826.182)
-Adjustments related to interest expense		7.665.977	7.414.682
Adjustments related to unrealized foreign exchange losses / (gains)		10.784.902	19.606.124
Adjustments related to fair value gains		(11.794)	(2.087.074)
-Adjustments related to fair value losses (gains)
on derivative financial instruments		(11.794)	(459.962)
-Other adjustments related to fair value losses (gains)		-	(1.627.112)
Adjustments for undistributed profits of investments
Accounted for using equity method		(561.816)	(193.485)
-Adjustments for undistributed profits of joint ventures		(561.816)	(193.485)
Adjustments related to tax (income) expense		(2.226.088)	2.832.927
Adjustments related to gains from disposals of fixed assets		(2.574)	6.542
-Adjustments related to gains resulting from disposal
of tangible assets		(2.574)	6.542
Adjustments related to monetary gains and losses		(12.951.183)	(23.130.289)
Adjustments related to gains from disposals		(4.362.461)	(4.114.391)
of subsidiaries or joint operations
Other adjustment to reconcile profit (loss)		194.563	299.247
Net cash generated from operating activities
before changes in working capital		9.347.118	7.911.542
Changes in trade receivables		2.591.778	5.727.424
-Changes in trade receivables from related parties		324.914	179.942
-Changes in trade receivables from third parties		2.266.864	5.547.482
Changes in other receivables		6.127.904	8.673.565
-Changes in other receivables from related parties		5.937.918	8.187.127
-Changes in other receivables from third parties		189.986	486.438
Changes in receivables from service concession arrangement		1.995.381	1.636.115
Changes in inventories		185.321	(332.156)
Changes in trade payables		(1.824.285)	(5.417.162)
-Changes in trade payables to related parties		370.126	(122.639)
Changes in trade payables to third parties -		(2.194.411)	(5.294.523)
Changes in other payables		418.675	(335.936)
Changes in other payables to third parties -		418.675	(335.936)
Changes in other liabilities		273.150	(666.110)
Changes in other assets -		217.685	(966.199)
Changes in other liabilities -		55.465	300.089
Changes in assets arising from customer contracts		(746.591)	(411.304)
Changes in other contract assets -		(746.591)	(411.304)
Changes in deferred income		325.785	(962.894)
Net cash generated from operating activities		10.532.184	12.032.308
Payments related with provisions for employee benefits		(55.572)	(58.939)
Income taxes paid		(362.336)	(316.295)

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

		Reviewed	Reviewed
		1 January-	1 January
	Notes	30 September 2024	30 September 2023
CASH FLOWS FROM INVESTING ACTIVITIES		4.060.531	1.335.574
Cash inflows from losing control of subsidiaries		4.347.327	4.281.101
Cash outflows related to capital advance payments of subsidiaries and/or
joint ventures		-	(2.207.281)
Cash inflows from the sale
of tangible and intangible assets		9.412	-
-Cash inflows from the sale of property. plant and equipment		9.412	-
Cash outflows from purchases
of property. plant and equipment and intangible assets		(523.230)	(787.541)
-Cash outflows from the sale of property. plant and equipment		(495.557)	(629.090)
-Cash outflows from the sale of intangible assets		(27.673)	(158.451)
Dividend received		234.576	165.999
Other cash inflows (outflows)		(7.554)	(116.704)
CASH FLOW FROM FINANCING ACTIVITIES		(14.386.916)	(13.603.786)
Proceeds from capital advances		-	1.924.201
Cash inflows from borrowing		4.780.687	5.216.962
-Cash inflows from bank loans		657.600	171.415
-Cash inflows from issued debt instruments		4.123.087	5.045.547
Cash outflows related to debt payments		(13.027.740)	(14.596.649)
-Cash outflows related to loan repayments		(9.947.422)	(10.914.634)
Cash outflows from repayments of issued debt instruments -		(3.080.318)	(3.682.015)
Decrease in other payables to related parties		(218.601)	(569.868)
Payment of lease liabilities		(82.994)	(130.160)
Interest paid		(7.111.140)	(6.784.682)
Interest received		939.343	821.011
Cash inflows from derivative instruments		463.165	365.836
Other cash inflows		(129.636)	149.563
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
BEFORE EFFECT OF CURRENCY TRANSLATION DIFFERENCES		(212.109)	(611.138)
Effect of currency translation differences in cash and cash
equivalents		(63.488)	(45.437)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS		(275.597)	(656.575)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD		2.615.114	5.134.580
INFLATION EFFECT ON CASH AND CASH EQUIVALENTS		(690.260)	(1.697.434)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		1.649.257	2.780.571