Interim / Quarterly Report • Nov 8, 2024
Interim / Quarterly Report
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VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ
CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY– 30 SEPTEMBER 2024
(ORIGINALLY ISSUED IN TURKISH)
| CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS | 1-4 |
|---|---|
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS AND | |
| OTHER COMPREHENSIVE INCOME | 5-6 |
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN | |
| SHAREHOLDERS' EQUITY | 7 |
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS | 8-10 |
| NOTE 1 | GROUP'S ORGANISATION AND NATURE OF OPERATIONS | 11-12 |
|---|---|---|
| NOTE 2 | BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 12-22 |
| NOTE 3 | INTERESTS IN OTHER ENTITIES 23-25 | |
| NOTE 4 | SEGMENT REPORTING 26-28 | |
| NOTE 5 | CASH AND CASH EQUIVALENTS | 29 |
| NOTE 6 | FINANCIAL LIABILITIES 30-34 | |
| NOTE 7 | RELATED PARTY DISCLOSURES 35-38 | |
| NOTE 8 | TRADE RECEIVABLES AND PAYABLES | 39 |
| NOTE 9 | OTHER RECEIVABLES AND PAYABLES | 40 |
| NOTE 10 | INVENTORIES | 41 |
| NOTE 11 | PREPAID EXPENSES | 42 |
| NOTE 12 | INVESTMENTS RECOGNIZED BY EQUITY PICKUP METHOD | 42-43 |
| NOTE 13 | PROPERTY, PLANT AND EQUIPMENT | 44-46 |
| NOTE 14 | RIGHT OF USE ASSETS | 47 |
| NOTE 15 | INTANGIBLE ASSETS | 48 |
| NOTE 16 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES | 49-51 |
| NOTE 17 | COMMITMENTS | 51 |
| NOTE 18 | EMPLOYEE BENEFITS 52-53 | |
| NOTE 19 | OTHER ASSETS AND LIABILITIES | 54 |
| NOTE 20 | CAPITAL, RESERVES AND OTHER EQUITY ITEMS 54-55 | |
| NOTE 21 | SALES | 56 |
| NOTE 22 | OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES | 56 |
| NOTE 23 | FINANCIAL INCOME AND EXPENSES | 57 |
| NOTE 24 | TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)……………………………………………… 57-62 | |
| NOTE 25 | (LOSS) / EARNINGS PER SHARE | 62 |
| NOTE 26 | DERIVATIVE INSTRUMENTS | 63 |
| NOTE 27 | FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 63-67 | |
| NOTE 28 | SUBSEQUENT EVENTS | 67 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| Audited | |||
|---|---|---|---|
| 30 September | 31 December | ||
| Notes | 2024 | 2023 | |
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash and Cash Equivalents | 5 | 4.747.455 | 3.117.564 |
| Financial Assets | 56.672 | 48.001 | |
| Trade Receivables | 21.683.858 | 24.218.331 | |
| Trade Receivables Due from Related Parties | 7 | 767.707 | 620.260 |
| Trade Receivables Due from Third Parties | 8 | 20.916.151 | 23.598.071 |
| Other Receivables | 2.496.080 | 3.064.426 | |
| Other Receivables Due from Related Parties | 7 | 1.010.937 | 1.208.224 |
| Other Receivables Due from Third Parties | 9 | 1.485.143 | 1.856.202 |
| Derivative Financial Instruments | 26 | 68.342 | 254.203 |
| Inventories | 10 | 32.111.904 | 31.942.063 |
| Prepaid Expenses | 1.325.220 | 2.070.394 | |
| Prepayments to Third Parties | 11 | 1.325.220 | 2.070.394 |
| Current Tax Assets | 24 | 16.134 | 18.855 |
| Other Current Assets | 488.329 | 622.893 | |
| Other Current Assets Due from Third Parties | 19 | 488.329 | 622.893 |
| TOTAL CURRENT ASSETS | 62.993.994 | 65.356.730 | |
| NON-CURRENT ASSETS | |||
| Financial Assets | 286.177 | 392.536 | |
| Associates Accounted by Using the Equity Method | 12 | 6.371.052 | 7.957.708 |
| Trade Receivables | 266 | 1.116 | |
| Trade Receivables Due from Third Parties | 8 | 266 | 1.116 |
| Other Receivables | 38.789.982 | 39.129.794 | |
| Other Receivables Due from Related Parties | 7 | 38.728.208 | 39.083.999 |
| Other Receivables Due from Third Parties | 9 | 61.774 | 45.795 |
| Property, Plant and Equipment | 13 | 46.991.604 | 47.063.939 |
| Right of Use Assets | 14 | 1.895.293 | 1.672.554 |
| Intangible Assets | 15 | 6.746.695 | 5.317.288 |
| Prepaid Expenses | 3.406.509 | 3.180.387 | |
| Prepayments to Related Parties | 7 | 2.573.482 | 2.692.903 |
| Prepayments to Third Parties | 11 | 833.027 | 487.484 |
| TOTAL NON-CURRENT ASSETS | 104.487.578 | 104.715.322 | |
| TOTAL ASSETS | 167.481.572 | 170.072.052 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
| DECEMBER 2023 | |||
|---|---|---|---|
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September | |||
| 2024 unless otherwise stated.) | |||
| Audited | |||
| 30 September | 31 December | ||
| Notes | 2024 | 2023 | |
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Short Term Borrowings | 6 | 32.493.767 | 30.155.095 |
| Short Term Borrowings from Third Parties | 32.493.767 | 30.155.095 | |
| Bank Loans | 6 | 28.776.740 | 27.555.174 |
| Lease Liabilities | 6 | 264.115 | 313.786 |
| Issued Debt Instruments | 6 | 3.452.912 | 2.286.135 |
| Current Portion of Long Term Borrowings | 5.016.820 | 6.374.463 | |
| Current Portion of Long Term Borrowings from | |||
| Third Parties | 5.016.820 | 6.374.463 | |
| Bank Loans | 6 | 1.615.120 | 3.837.597 |
| Issued Debt Instruments | 6 | 3.401.700 | 2.536.866 |
| Other Financial Liabilities | 1.534.154 | 1.711.434 | |
| Trade Payables | 44.794.552 | 57.014.843 | |
| Trade Payables to Related Parties | 7 | 230.689 | 152.879 |
| Trade Payables to Third Parties | 8 | 44.563.863 | 56.861.964 |
| Payables Related to Employee Benefits | 18 | 1.111.274 | 1.239.661 |
| Other Payables | 162.474 | 19.246 | |
| Other Payables to Third Parties | 9 | 162.474 | 19.246 |
| Derivative Financial Liabilities | 26 | 249.416 | 850.975 |
| Deferred Revenue | 2.110.112 | 1.458.016 | |
| Deferred Revenue from Related Parties | - | 5.464 | |
| Deferred Revenue from Third Parties | 9 | 2.110.112 | 1.452.552 |
| Current Tax Liabilities | 24 | 25.725 | 21.287 |
| Current Provisions | 3.467.487 | 4.037.982 | |
| Other Current Provisions | 16 | 3.467.487 | 4.037.982 |
| Other Current Liabilities | 2.125.229 | 3.274.995 | |
| Other Current Liabilities to Third Parties | 19 | 2.125.229 | 3.274.995 |
| TOTAL CURRENT LIABILITIES | 93.091.010 | 106.157.997 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| TOTAL LIABILITIES | 117.003.521 | 114.558.285 | |
|---|---|---|---|
| TOTAL NON-CURRENT LIABILITIES | 23.912.511 | 8.400.288 | |
| Other Non-current Liabilities to Third Parties | 5.991 | 17.440 | |
| Other Non-current Liabilities | 5.991 | 17.440 | |
| Deferred Tax Liabilities | 24 | 3.322.790 | 1.729.164 |
| Other Non-current Provisions | 16 | 548.576 | 474.370 |
| Non-current Provisions for Employee Benefits | 18 | 1.767.401 | 2.147.753 |
| Non-current Provisions | 2.315.977 | 2.622.123 | |
| Trade Payables to Third Parties | 8 | 173.673 | 242.068 |
| Trade Payables | 173.673 | 242.068 | |
| Other Financial Liabilities | 256.221 | 349.181 | |
| Issued Debt Instruments | 6 | 16.026.295 | - |
| Lease Liabilities | 6 | 692.445 | 903.152 |
| Bank Loans | 6 | 1.119.119 | 2.537.160 |
| Long Term Borrowings from Third Parties | 17.837.859 | 3.440.312 | |
| Long Term Borrowings | 17.837.859 | 3.440.312 | |
| NON-CURRENT LIABILITIES | |||
| Notes | 2024 | 2023 | |
| 30 September | 31 December | ||
| Audited |
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ | |||
|---|---|---|---|
| CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS AS OF 30 SEPTEMBER 2024 AND 31 | |||
| DECEMBER 2023 | |||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September | |||
| 2024 unless otherwise stated.) | |||
| Audited | |||
| 30 September | 31 December | ||
| Notes | 2024 | 2023 | |
| EQUITY | |||
| Equity Attributable to Owners of Parent | 44.017.314 | 48.970.797 | |
| Share Capital | 20 | 335.456 | 335.456 |
| Adjustments to Share Capital | 21.199.309 | 21.199.309 | |
| Other Accumulated Comprehensive Income (Loss) that will not be Reclassified to | |||
| Profit or Loss | 10.415.835 | 10.536.878 | |
| Gains (Losses) on Revaluation and Remeasurement | 10.415.835 | 10.536.878 | |
| Revaluation of Property, Plant and Equipment | 20 | 12.188.309 | 12.283.240 |
| Gains (Losses) on Remeasurement of Defined Benefit Plans | (1.772.474) | (1.746.362) | |
| Other Accumulated Comprehensive Income (Loss) that will be Reclassified to Profit or | |||
| Loss | 1.428.019 | 2.044.796 | |
| Exchange Differences on Translation | 1.452.462 | 2.186.646 | |
| Gains (Losses) on Hedge | (85.649) | (224.497) | |
| Gains (Losses) on Cash Flow Hedges | (85.649) | (224.497) | |
| Gains (Losses) on Revaluation and Reclassification | 61.206 | 82.647 | |
| Financial Assets Measured of Fair Value through Other Compressive Income | 20 | 61.206 | 82.647 |
| Restricted Reserves Appropriated from Profits | 1.702.593 | 1.702.593 | |
| Legal Reserves | 20 | 1.702.593 | 1.702.593 |
| Retained Earnings | 13.246.696 | 11.182.300 | |
| Current Period Net Profit Or (Loss) | (4.310.594) | 1.969.465 | |
| Non-controlling Interests | 6.460.737 | 6.542.970 | |
| TOTAL EQUITY | 50.478.051 | 55.513.767 | |
| TOTAL LIABILITIES AND EQUITY | 167.481.572 | 170.072.052 |
Condensed consolidated interim financial statements for the period 1 January - 30 September 2024, were approved by the Board of Directors of Vestel Elektronik Sanayi ve Ticaret A.Ş. on 8 November 2024.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January - | 1 January - | 1 July - | 1 July - | ||
|---|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | ||
| Notes | 2024 | 2023 | 2024 | 2023 | |
| PROFIT OR LOSS | |||||
| Revenue | 21 | 99.152.986 | 112.522.184 | 33.535.036 | 40.256.249 |
| Cost of Sales | 21 | (75.611.206) | (88.968.467) | (25.294.218) | (30.898.572) |
| GROSS PROFIT | 23.541.780 | 23.553.717 | 8.240.818 | 9.357.677 | |
| General Administrative Expenses | (2.920.340) | (2.931.760) | (1.025.505) | (948.067) | |
| Marketing Expenses | (13.722.976) | (14.726.333) | (4.583.715) | (5.290.319) | |
| Research and Development Expense | (1.766.237) | (2.108.112) | (504.572) | (675.597) | |
| Other Income from Operating Activities | 22 3.011.204 | 3.663.594 | 1.070.399 | 129.695 | |
| Other Expenses from Operating Activities | 22 | (8.795.507) | (14.950.697) | (2.662.607) | (2.110.569) |
| (LOSS) / PROFIT FROM OPERATING ACTIVITIES | (652.076) | (7.499.591) | 534.818 | 462.820 | |
| Share of Net Profit /(Loss) of Associates Accounted for Using | |||||
| the Equity Method | (1.593.627) | (837.683) | (710.103) | 54.993 | |
| (LOSS) / PROFIT BEFORE FINANCING INCOME / | |||||
| (EXPENSE) | (2.245.703) | (8.337.274) | (175.285) | 517.813 | |
| Finance Income | 23 | 10.138.340 | 18.871.405 | 3.021.659 | 4.147.416 |
| Finance Expenses | 23 | (17.247.893) | (19.424.116) | (6.045.357) | (4.904.525) |
| Monetary Gain | 7.218.625 | 11.742.319 | 1.000.929 | 5.265.337 | |
| PROFIT / (LOSS) BEFORE INCOME TAX | (2.136.631) | 2.852.334 | (2.198.054) | 5.026.041 | |
| Tax Expense, Continuing Operations | (1.996.941) | (3.411.611) | (905.389) | (3.038.403) | |
| Current Tax Expense | 24 | (30.034) | (434.473) | (10.024) | (28.599) |
| Deferred Tax Expense | 24 | (1.966.907) | (2.977.138) | (895.365) | (3.009.804) |
| PROFIT / (LOSS) FOR THE PERIOD | (4.133.572) | (559.277) | (3.103.443) | 1.987.638 | |
| Profit / (loss), attributable to | 177.022 | 1.084.831 | (94.763) | 883.436 | |
| Non-controlling Interests | |||||
| Owners of Parent | 25 | (4.310.594) | (1.644.108) | (3.008.680) | 1.104.202 |
| 6 | ||||
|---|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE INTERIM PERIODS 1 JANUARY- 30 SEPTEMBER 2024 AND 2023 (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) |
||||
| 1 January - 30 September 2024 |
1 January - 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
| PROFIT / (LOSS) FOR THE PERIOD OTHER COMPREHENSIVE | ||||
| INCOME | (4.133.572) | (559.277) | (3.103.443) | 1.987.638 |
| Other Comprehensive Income / (Expense) that will not be Reclassified to Profit or Loss |
(31.015) | (239.086) | (14.587) | 11.522 |
| Losses on Remeasurements of Defined Benefit Plans | (41.353) | (318.782) | (19.450) | (5.522) |
| Taxes Relating to Components of Other Comprehensive | ||||
| Income that will not be Reclassified to Profit or Loss | 10.338 | 79.696 | 4.863 | 17.044 |
| Taxes Relating to Remeasurements of Defined Benefit | ||||
| Plans | 10.338 | 79.696 | 4.863 | 17.044 |
| Other Comprehensive Income / (Expense) that will | ||||
| be Reclassified to Profit or Loss | (579.630) | 1.428.405 | (668.634) | 408.610 |
| Foreign Exchange Differences on Translation | (734.184) | 738.181 | (371.712) | (29.010) |
| Gains (Losses) on Remeasuring or Reclassification Adjustments on | ||||
| Financial Assets Through Other Comprehensive Income | (28.588) | (76.863) | (27.207) | 27.473 |
| Other Comprehensive Income (Expense) Related with Cash Flow | 234.660 | 997.161 | (368.689) | 577.070 |
| Hedges | ||||
| Gains (Losses) on Cash Flow Hedges | 234.660 | 997.161 | (368.689) | 577.070 |
| Taxes Relating to Components of Other Comprehensive Income / (Expense) |
(51.518) | (230.074) | 98.974 | (166.923) |
| Taxes Relating to Gains (Losses) on Remeasuring or Reclassification Adjustments on Financial Assets Through Other |
7.147 | 19.216 | 6.802 | (1.651) |
| Comprehensive Income | ||||
| Taxes Relating to Cash Flow Hedges | (58.665) | (249.290) | 92.172 | (165.272) |
| OTHER COMPREHENSIVE INCOME / (EXPENSE) | (610.645) | 1.189.319 | (683.221) | 420.132 |
| TOTAL COMPREHENSIVE INCOME / (EXPENSE) | (4.744.217) | 630.042 | (3.786.664) | 2.407.770 |
| Total Comprehensive Income Attributable to | ||||
| Non-controlling Interests | 209.266 | 1.160.036 | (151.948) | 917.262 |
| Owners of Parent | (4.953.483) | (529.994) | (3.634.716) | 1.490.508 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| Gains on | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Other | Remeasuring | ||||||||||||||||||
| Accumulated | Financial Assets | Other | |||||||||||||||||
| Increases on | Losses on | Gains | Comprehensive | Measured of | Accumulated | ||||||||||||||
| Revaluation | Remeasure- | Revaluations | Income that will | Exchange | Gains | Reserve Of | Fair Value | Comprehensive | Restricted | Current | Equity | ||||||||
| Inflation | of Property, | ment of | and | not be | Differences | (Losses) on | Gains or | through Other | Gains on | Income that will | Reserves | Prior Years' | Period Net | attribut-able | |||||
| Issued | Adjustments | Plant and | Defined | Remeasurem | Reclassified to | on | Cash Flow | Losses on | Compressive | Revaluation and | be Reclassified | Appropriated | Profits or | Profit Or | Retained | to owners of | Non-controll | ||
| Capital | on Capital | Equipment | Benefit Plans | ents | Profit or Loss | Translation | Hedges | Hedge | Income | Reclassification | to Profit or Loss | From Profits | Losses | Loss | Earnings | parent | ing interests | Equity | |
| Previous Period | |||||||||||||||||||
| 1 January -30 September 2023 | |||||||||||||||||||
| Opening Balance | 335.456 21.199.309 3.745.575 (1.452.340) 2.293.235 | 2.293.235 1.604.183 | (289.602) | (289.602) | 111.989 | 111.989 | 1.426.570 1.702.593 10.386.603 | (151.261) 10.235.342 37.192.505 3.875.256 41.067.761 | |||||||||||
| Transfers | - | - | (115.597) | - | (115.597) | (115.597) | - | - | - | - | - | - | - | (35.664) | 151.261 | 115.597 | - | - | - |
| Total Comprehensive Income | - | - | - | (240.072) (240.072) | (240.072) | 738.181 673.652 673.652 | (57.647) | (57.647) | 1.354.186 | - | - | (1.644.108) (1.644.108) | (529.994) 1.160.036 | 630.042 | |||||
| Profit (Loss) for the period Other Comprehensive Income |
- | - | - | - | - | - | - | - | - | - | - | - | - | - | (1.644.108) (1.644.108) (1.644.108) 1.084.831 (559.277) | ||||
| (Loss) | - | - | - | (240.072) | (240.072) | (240.072) | 738.181 | 673.652 | 673.652 | (57.647) | (57.647) | 1.354.186 | - | - | - | - | 1.114.114 | 75.205 | 1.189.319 |
| Dividends Paid | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (155.357) | (155.357) |
| Transactions with non-controlling | - | - | (690) | 23.067 | 22.377 | 22.377 | - | (3.158) | (3.158) | - | - | (3.158) | (59.387) | 852.682 | - | 852.682 | 812.514 359.755 1.172.269 | ||
| Closing Balance | 335.456 21.199.309 3.629.288 (1.669.345) 1.959.943 | 1.959.943 | 2.342.364 380.892 380.892 | 54.342 | 54.342 | 2.777.598 1.643.206 11.203.621 (1.644.108) 9.559.513 37.475.025 | 5.239.690 42.714.715 | ||||||||||||
| Current Period | |||||||||||||||||||
| 1 January -30 September 2024 | |||||||||||||||||||
| Opening Balance | 335.456 21.199.309 | 12.283.240 (1.746.362) 10.536.878 | 10.536.878 2.186.646 (224.497) (224.497) | 82.647 | 82.647 | 2.044.796 1.702.593 11.182.300 1.969.465 13.151.765 48.970.797 6.542.970 55.513.767 | |||||||||||||
| Transfers | - | - | (94.931) | - | (94.931) | (94.931) | - | - | - | - | - | - | - | 2.064.396 (1.969.465) | 94.931 | - | - | - | |
| Total Comprehensive | - | - | - | (26.112) | (26.112) | (26.112) (734.184) 138.848 138.848 | (21.441) | (21.441) | (616.777) | - | - | (4.310.594) (4.310.594) (4.953.483) 209.266 (4.744.217) | |||||||
| Profit (Loss) for the period | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (4.310.594) (4.310.594) (4.310.594) | 177.022 (4.133.572) | |||
| Other Comprehensive Income | |||||||||||||||||||
| (Loss) | - | - | - | (26.112) | (26.112) | (26.112) | (734.184) | 138.848 | 138.848 | (21.441) | (21.441) | (616.777) | - | - | - | - | (642.889) | 32.244 | (610.645) |
| Dividends Paid | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | (291.499) | (291.499) |
| Closing Balance | 335.456 21.199.309 12.188.309 (1.772.474) 10.415.835 | 10.415.835 1.452.462 (85.649) (85.649) | 61.206 | 61.206 | 1.428.019 1.702.593 13.246.696 (4.310.594) 8.936.102 44.017.314 6.460.737 50.478.051 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
7
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE INTERIM PERIODS | |||
|---|---|---|---|
| 1 JANUARY – 30 SEPTEMBER 2024 AND 2023 | |||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 | |||
| unless otherwise stated.) | |||
| 1 January - | 1 January - | ||
| 30 September | 30 September | ||
| Notes | 2024 | 2023 | |
| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | (4.712.401) | 9.150.025 | |
| Loss for the Period | (4.133.572) | (559.277) | |
| Loss from Continuing Operations | (4.133.572) | (559.277) | |
| Adjustments to Reconcile Profit for the Period | 9.257.714 | 4.492.888 | |
| Adjustments for Depreciation and Amortisation Expense | 13 | 3.978.686 | 4.886.603 |
| Adjustments for Impairment Loss | |||
| (Reversal of Impairment Loss) | 27.968 | (55.997) | |
| Reversal of Impairment Loss of Receivables | 8,9 | (17.193) | (181.079) |
| Adjustments for Impairment Loss | |||
| of Inventories | 10 | 45.161 | 125.082 |
| Adjustments for Provisions | 1.254.708 | 1.512.521 | |
| Adjustments for Provisions Related with | |||
| Employee Benefits | 18 | 475.237 | 270.127 |
| Adjustments for (Reversal of) Lawsuit and/or | |||
| Penalty Provisions | 1.552 | (1.649) | |
| Adjustments for Warranty Provisions | 751.974 | 726.361 | |
| Adjustments for Other Provisions | 25.945 | 517.682 | |
| Adjustments for Interest Expenses | 4.450.306 | 2.821.137 | |
| Adjustments for Interest Income | 23 | (3.776.057) | (2.944.072) |
| Adjustments for Interest Expense | 23 | 8.226.363 | 5.765.209 |
| Adjustments for Unrealised Foreign | |||
| Exchange Gains | (2.852.248) | (8.211.209) | |
| Adjustments for Fair Value Gains | (181.038) | (322.440) | |
| Adjustments for Fair Value Gains on | |||
| Derivative Financial Instruments | (181.038) | (322.440) | |
| Adjustments for Gains From Investments Accounted for Using Equity Method | 1.593.627 | 837.683 | |
| Adjustments for Tax Expenses | 1.996.941 | 3.411.611 | |
| Adjustments for Losses (Gains) on Disposal of Non-Current Assets | 81.895 | (40.462) | |
| Adjustments for Losses (Gains) Arised from Sale of Tangible Assets | 81.895 | (40.462) | |
| Other Adjustments to Reconcile Profit | 5 | 8 | 16 |
| Monetary Gain | (1.093.139) | (346.575) | |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January - | 1 January - | ||
|---|---|---|---|
| 30 September | 30 September | ||
| Notes | 2024 | 2023 | |
| Changes in Working Capital | (9.467.562) | 6.042.856 | |
| Decrease (Increase) in Financial Asset | 97.688 | (96.815) | |
| Adjustments for Increase in Trade Accounts Receivable | (4.310.385) | (5.401.050) | |
| Increase in Trade Accounts Receivables from Related Parties | (349.111) | (408.820) | |
| Increase in Trade Accounts Receivables from Third Parties | (3.961.274) | (4.992.230) | |
| Adjustments for Decrease (Increase) in Other Receivables Related with Operations | (149.362) | 337.145 | |
| Decrease (Increase) in Other Third Party Receivables Related with Operations | (149.362) | 337.145 | |
| Adjustments for Increase in Inventories | (9.694.984) | (15.912.207) | |
| Decrease (Increase) in Prepaid Expenses | 222.924 | (954.570) | |
| Adjustments for Increase in Trade Accounts Payable | 3.178.687 | 26.144.301 | |
| Increase in Trade Accounts Payables to | |||
| Related Parties | 132.571 | 182.483 | |
| Increase in Trade Accounts Payables to Third Parties | 3.046.116 | 25.961.818 | |
| Increase (Decrease) in Employee Benefit Liabilities | 223.067 | 1.038.901 | |
| Adjustments for Increase in Other Operating Payables | 166.394 | 39.001 | |
| Increase in Other Operating Payables to Third Parties | 166.394 | 39.001 | |
| Increase in Deferred Revenue | 1.163.392 | 169.180 | |
| Other Adjustments for Other Increase (Decrease) in Working Capital | (364.983) | 678.970 | |
| Increase in Other Assets Related with Operations | (37.178) | (631.453) | |
| Increase (Decrease) in Other Payables Related with Operations | (327.805) | 1.310.423 | |
| Cash Flows from (used in) Operations | (4.343.420) | 9.976.467 | |
| Payments Related with Provisions for Employee Benefits | 18 | (337.485) | (692.644) |
| Income Taxes Paid | 24 | (31.496) | (133.798) |
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ | |||
|---|---|---|---|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE INTERIM PERIODS | |||
| 1 JANUARY – 30 SEPTEMBER 2024 AND 2023 | |||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 | |||
| unless otherwise stated.) | |||
| 1 January - | 1 January - | ||
| 30 September | 30 September | ||
| Notes | 2024 | 2023 | |
| CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | (7.941.183) | (8.807.193) | |
| Proceeds from sales of Shares Without | - | 1.172.269 | |
| Change in Control of Subsidiaries or Other Businesses | |||
| Cash Flows Used in Obtaining Control of Subsidiaries or | (232.020) | - | |
| Other Businesses | |||
| Cash Outflows Arising from Purchase of Shares or Capital | (60) | (231.920) | |
| Increase of Associates | |||
| Proceeds from Sales of Property, Plant, Equipment and Intangible Assets | (65.068) | 47.050 | |
| Proceeds from Sales of Property, Plant and Equipment | (65.068) | 47.050 | |
| Purchase of Property, Plant, Equipment and Intangible Assets | (5.266.010) | (6.100.798) | |
| Purchase of Property, Plant and Equipment | 13 | (3.098.430) | (4.107.135) |
| Purchase of Intangible Assets | 15 | (2.167.580) | (1.993.663) |
| Cash Advances and Loans | (2.378.025) | (3.693.794) | |
| Cash Advances and Loans Made to Related Parties | (2.213.969) | (3.563.887) | |
| Cash Advances and Loans Made to Third Parties | (164.056) | (129.907) | |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | 15.106.364 | (416.793) | |
| Proceeds from Borrowings | 6 | 65.160.661 | 29.665.000 |
| Proceeds from Loans | 42.786.161 | 26.124.576 | |
| Proceeds from Issued Debt Instruments | 22.374.500 | 3.540.424 | |
| Repayments of Borrowings | (41.974.688) | (24.851.354) | |
| Loan Repayments | 6 | (37.960.027) | (23.421.740) |
| Issued bonds repayments | 6 | (3.767.570) | (1.429.614) |
| Cash Outflows from Other Financial Liabilities | (247.091) | - | |
| Changes of Lease Liabilities | (293.380) | (302.639) | |
| Interest Paid | (7.548.094) | (4.881.171) | |
| Interest Received | 53.364 | 108.728 | |
| EFFECT OF MONETARY GAIN / LOSS ON CASH AND CASH EQUIVALENTS | (979.023) | (1.203.634) | |
| NET INCREASE (DECREASE) IN CASH AND CASH | |||
| EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES Effect of Exchange Rate Changes on Cash and |
1.473.757 | (1.277.595) | |
| Cash Equivalents | 156.142 | 47.458 | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1.629.899 | (1.230.137) | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 5 | 3.117.534 | 3.475.195 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 4.747.433 | 2.245.058 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| NOTE 1 – GROUP'S ORGANISATION AND NATURE OF OPERATIONS | ||
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret Anonim Şirketi ("Vestel Elektronik" or "the Company") and its subsidiaries (together "the Group"), mainly produce and sell a range of brown goods and white goods. |
||
| The Company's head office is located at Levent 199, Büyükdere Caddesi No: 199, 34394 Şişli / Istanbul. The Group's production facilities are located in Manisa Organized Industrial Zone and İzmir Aegean Free Zone. |
||
| The ultimate controller of the Company is Zorlu Holding. | ||
| Vestel Elektronik is registered to Capital Market Board ("CMB") and its shares have been quoted to Borsa Istanbul ("BİST") since 1990. As of 30 September 2024, 47,23% of the Company's shares are publicly traded (31 December 2023: 44,31%). |
||
| As of 30 September 2024 the number of personnel employed at the Group is 19.500 (31 December 2023: 19.304). | ||
| The Company's subsidiaries and associates are as follows: | ||
| Nature of | ||
| Subsidiaries | Country | operations |
| Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. | Turkey | Production |
| Vestel Mobilite Sanayi ve Ticaret A.Ş. (*) | Turkey | Production |
| Vestel Ticaret A.Ş. | Turkey | Sales |
| Vestel CIS Ltd. | Russia | Sales |
| Vestel Electronica SRL | Romania | Sales |
| Vestel Holland B.V. Iberia Branch Office | Spain | Sales |
| Vestel France SA | France | Sales |
| Vestel Holland BV | Holland | Sales |
| Vestel Holland B.V. Germany Branch Office | Germany | Sales |
| Cabot Communications Ltd. | UK | Software |
| Vestel UK Ltd. | UK | Sales |
| Vestel Holland B.V. UK Branch Office | UK | Sales |
| Vestek Elektronik Araştırma Geliştirme A.Ş. | Turkey | Software |
| Vestel Trade Ltd. | Russia | Sales |
| Vestel Electronics Shanghai Trading Co. Ltd | China | Service |
| Intertechnika LLC | Russia | Service |
| Vestel Central Asia LLP | Kazakhstan | Sales |
| Vestel Ventures Ar-ge A.Ş. | Turkey | Service |
| Vestel Holland B.V. Poland Branch Office | Poland | Sales |
| Vestel Electronics Gulf DMC | UAE | Sales |
| Vestel U.S.A. | United States | Sales |
| Cylinda AB (**) | Sweden | Sales |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| NOTE 1 – GROUP'S ORGANISATION AND NATURE OF OPERATIONS (Cont'd) | ||
|---|---|---|
| (*) Vestel Ticaret A.Ş, which is Group's subsidiary, transferred all of its 6.886.735 shares, each with a nominal value | ||
| of 1 Turkish Lira, which is the owner of Vestel Mobilite Sanayi ve Ticaret A.Ş which is Group's subsidiary, to Vestel | ||
| Elektronik Sanayi ve Ticaret A.Ş for a consideration of 1.442.000 TL on 28 June 2024. | ||
| (**) As of 31 May 2024, by making adjustments for financial and commercial liabilities the acquisition and transfer of all shares held by Elektroskandia Sverige AB in Cylinda AB, representing Cylinda AB's share capital of 25.000 |
||
| Swedish Krona (SEK), each with nominal value of 1 Swedish Krona (SEK) totaling 25.000 shares, for a total consideration of 69.464.282 Swedish Krona (SEK) (6,08 million EUR) by Group's subsidiary, Vestel Holland B.V. |
||
| through payment of the share purchase price in cash and upfront are completed on 4 June 2024. | ||
| Nature of | ||
| Associates | Country | operations |
| Lentatek Uzay Havacılık ve Teknoloji A.Ş. | Turkey | Production/ Sales |
| Aydın Yazılım Elektronik ve Sanayi A.Ş. | Turkey | Software |
| Meta Nikel Kobalt Madencilik San. ve Tic. A.Ş. ("Meta") | Turkey | Mining |
| Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. ("TOGG") | Turkey | Automotive |
The accompanying condensed consolidated interim financial statements are prepared in accordance with the Communiqué Serial II, No: 14.1, "Principals of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. According to the article 5 of the Communiqué, consolidated financial statements are prepared in accordance with Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS" / "TFRS") and its addendum and interpretations ("IFRIC") issued by the Public Oversight Accounting and Auditing Standards Authority ("POAASA" or "POA") Turkish Accounting Standards Board.
The Company and its subsidiaries operating in Turkey maintains its accounting records and prepares its statutory financial statements in accordance with the Turkish Commercial Code ("TCC"), tax legislation and the uniform chart of accounts issued by the Ministry of Finance. The consolidated financial statements have been prepared in Turkish Lira on the basis of historical cost, except for land, buildings and land improvements from the tangible assets group shown at their fair value, and financial assets and liabilities shown at their fair value.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
The Group prepared its condensed consolidated interim financial statements for the period ended 30 September 2024 in accordance with ("TAS") 34 "Interim Financial Reporting" in the framework of the Communiqué Serial II, No: 14.1, and its related announcement. The condensed consolidated interim financial statements and its accompanying notes are presented in compliance with the format recommended by CMB including its mandatory information.
Enterprises are free to prepare interim financial statements as a full set or as a summary in accordance with the TAS 34 standard. In this context, the Group has chosen to prepare summary financial statements in the interim periods. The condensed consolidated interim financial statements are presented in accordance with the formats determined in the "Announcement on TFRS Taxonomy" published by the POA and in the Financial Statement Samples and User Guide published by the CMB.
The condensed consolidated interim financial statements do not include all the information required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as of 31 December 2023.
Consolidated subsidiaries operating in foreign countries have prepared their financial statements in accordance with the laws and regulations of the countries in which they operate with the required adjustments and reclassifications reflected in accordance with CMB Financial Reporting Standards. These financial statements are based on the statutory records which are maintained under historical cost conversion, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with the TAS/TFRS.
The Group has prepared its financial statements for the year dated 31 December 2023 and ending on the same date, by applying TAS 29 "Financial Reporting in High Inflation Economies" Standard, based on the announcement made by the POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published. In accordance with the said standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date, and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for the purpose of comparison in the financial statements of the previous period.
In accordance with the said standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date, and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for the purpose of comparison in the financial statements of the previous period. For this reason, the group has presented its financial statements as of 30 September 2023 and 31 December 2023 on the basis of purchasing power as of 30 September 2024.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards shall comply with the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2023. It was decided to apply inflation accounting by applying.
Rearrangements made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index in Turkey ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"). As of 30 September 2024, the indices and correction coefficients used in the correction of financial statements are as follows:
| Date | Index | Correction Coefficient | Three-Year Compound Inflation Rate |
|---|---|---|---|
| 30 September 2024 | 2.526,16 | 1,000 | 343% |
| 31 December 2023 | 1.859,38 | 1,3586 | 268% |
| 30 September 2023 | 1.691,04 | 1,4938 | 254% |
The main elements of the Group's adjustment for financial reporting purposes in high-inflation economies are as follows:
Current period financial statements prepared in TL are expressed in purchasing power at the balance sheet date, and amounts from previous reporting periods are also expressed by adjusting according to the purchasing power at the end of the reporting period.
Monetary assets and liabilities are not adjusted as they are currently expressed in current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of nonmonetary items exceed the recoverable amount or net realizable value, the provisions of TAS 36 and TAS 2 were applied, respectively.
Non-monetary assets and liabilities and equity items that are not expressed in current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
All items included in the statement of comprehensive income, except for non-monetary items in the balance sheet that have an impact on the statement of comprehensive income, are indexed with coefficients calculated over the periods in which the income and expense accounts are first reflected in the financial statements.
The effect of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary position gains/(losses) account in the consolidated income statement.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("functional currency"). The condensed consolidated interim financial statements are presented in Turkish Lira ("TL"), which is the functional currency of the parent company.
Transactions in foreign currencies have been translated into functional currency at the exchange rates prevailing at the date of the transaction. Exchange gains or losses arising from the settlement and translation of monetary assets and liabilities denominated in foreign currency at the exchange rates prevailing at the balance sheet dates are included in consolidated comprehensive income, except for the effective portion of foreign currency hedge of cash flow and net investment which are included under shareholders' equity.
Assets and liabilities of subsidiaries operating in foreign countries are translated into TL at the exchange rates prevailing at the balance sheet dates. Comprehensive income items of those subsidiaries are translated into TL using average exchange rates for the period (if the average exchange rates for the period do not reasonably reflect the exchange rate fluctuations, transactions are translated using the exchange rates prevailing at the date of the transaction).
Exchange differences arising from using average and balance sheet date rates are included in "exchange differences on translation" under the shareholders' equity.
The consolidated financial statements include the accounts of the Company and its subsidiaries from the date on which the control is transferred to the Group until the date that the control ceases. The financial statements of the companies included in the scope of consolidation have been prepared as of the date of the consolidated financial statements and have been prepared in accordance with TFRS Financial Reporting Standards by applying uniform accounting policies and presentation.
The Group has control over an entity when it has existing rights that give it the current ability to direct the relevant activities, i.e. the activities that significantly affect the entity's returns.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
On the other hand, the Group controls an entity when it is exposed, 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.
In order to be consistent with accounting policies accepted by the Group, accounting policies of the subsidiaries are modified where necessary.
The balance sheet and statement of income of the subsidiaries are consolidated on a line-by-line basis and all material intercompany payable /receivable balances and sales / purchase transactions are eliminated. The carrying value of the investment held by Vestel Elektronik and its subsidiaries is eliminated against the related shareholders' equity.
The non-controlling share in the net assets and results of subsidiaries for the period are separately classified as "noncontrolling interest" in the condensed consolidated statements of comprehensive income and the condensed consolidated statements of changes in shareholders' equity.
As of the balance sheet date, consolidated companies and the proportion of ownership interest of Vestel Elektronik in these subsidiaries are disclosed in note 3.
Financial assets in which the Group has direct or indirect voting rights equal to or above 50% which are immaterial to the Group financial results or over which a significant influence is not exercised by the Group are carried at cost less any provisions for impairment.
Investments in associates are accounted for by the equity method and are initially recognized at cost. These are entities in which the Group has an interest which is more than 20% and less than 50% of the voting rights or over which a significant influence is exercised. Unrealized gains on transactions between the Group and its associate are eliminated to the extent of the Group's interest in the associates, whereas unrealized losses are eliminated unless they do not address any impairment of the asset transferred. Net increase or decrease in the net assets of associates is included in the consolidated statements of comprehensive income in regards with the Group's share.
The Group ceases to account the associate using the equity method if it loses the significant influence or the net investment in the associate becomes nil, unless it has entered to a liability or a commitment.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
After the Group's interest in the associates becomes nil, additional losses are provided for, and a liability recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports profits, the Group resumes including its share of those profits only after its share of the profits equals the share of net losses not recognized.
The carrying amounts of the investments accounted for using the equity method are reviewed whether there is any indication of impairment at each reporting date. If such an indicator exists, the recoverable amount of the asset is estimated.
The recoverable amount of the investments accounted for using the equity method refers to the higher of value-in-use or fair value less cost to sell. Value-in-use is the present value of future cash flows expected to be generated from an asset or cash generating unit.
If the carrying amount of the investments accounted for using the equity method exceeds the recoverable amount, the impairment is accounted for. Impairments are recognized in profit and loss accounts. Impairments are recorded in the statement of profit or loss and other comprehensive income.
In investments accounted for using the equity method, impairments allocated in previous periods are reevaluated in each reporting period in the event that impairment decreases or there are indicators that impairment is not valid. Impairment is reversed in case of changes in the estimates used when determining recoverable amount. The increase in the carrying amount of the investments due to the reversal of the impairment loss is accounted in such a way that it does not exceed the carrying amount determined if the impairment loss has not been included in the consolidated financial statements in the previous years.
Financial assets in which the Group's total direct and indirect shareholding is below 20% or in which the Group does not have significant influence, traded in organized markets and whose fair value can be determined reliably are financial assets whose fair value difference is reflected in other comprehensive income in the consolidated financial statements are classified as financial assets.
Shares of shareholders with non-controlling interests in the net assets and operating results of Subsidiaries are shown as "non-controlling interests" in the consolidated statement of financial position and consolidated statement of profit or loss.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
2.1 Basis of presentation (Cont'd)
2.1.3 Basis of consolidation (Cont'd)
As of 30 September 2024, the Group's Meta Nikel Kobalt Madencilik San. ve Tic. A.Ş., Lentatek Uzay Havacılık ve Teknoloji A.Ş., Aydın Yazılım Elektronik ve Sanayi A.Ş. are recognized as zero in the consolidated balance sheet by evaluating their net asset position. (31 December 2023: Zero) The Group has not any capital completion commitment for these companies.
All items that are significant in terms of content and amount are shown separately in the financial statements, even if they are similar in nature. Amounts that are not material are shown by aggregating items that are similar in terms of their principles or functions. As a result of the nature of the transaction and event requiring offsetting, showing this transaction and event over their net amounts or monitoring the assets at their amounts after deducting impairment is not considered a violation of the non-offsetting rule. Income obtained by the Group as a result of transactions carried out in the normal course of business, other than the income defined in the section titled "Revenue", are shown at their net value, provided that they comply with the essence of the transaction or event.
Consolidated financial statements of the Group have been prepared comparatively with the preceding financial period, in order to enable determination of trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to changes in presentation in the consolidated financial statements.
Major changes in accounting policies are applied retrospectively and any major accounting errors that have been detected are corrected and the financial statements of the previous period are restated. Changes in accounting policies resulting from the initial implementation of a new standard, if any, are implemented retrospectively or prospectively in accordance with the transition provisions. If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
a) Standards, amendments, and interpretations applicable as of 30 September 2024:
Amendment to TFRS 16 – Leases on sale and leaseback; effective from annual periods beginning on or after 1 January 2024. These amendments include requirements for sale and leaseback transactions in TFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.
Amendment to TAS 1 – Non-current liabilities with covenants; effective from annual periods beginning on or after 1 January 2024. These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions.
Amendments to TAS 7 and TFRS 7 on Supplier finance arrangements; effective from annual periods beginning on or after 1 January 2024. These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis.
TFRS S1, 'General requirements for disclosure of sustainability-related financial information; effective from annual periods beginning on or after 1 January 2024.This standard includes the core framework for the disclosure of material information about sustainability-related risks and opportunities across an entity's value chain.
TFRS S2, 'Climate-related disclosures'; effective from annual periods beginning on or after 1 January 2024. This is the first thematic standard issued that sets out requirements for entities to disclose information about climate-related risks and opportunities.
On 29 December 2023, the Public Oversight Authority (POA) published a Board Decision in the Official Gazette, announcing that certain businesses will be subject to mandatory sustainability reporting starting from 1 January 2024. The companies included in the scope of the sustainability application are determined in order to identify the businesses that will be subject to sustainability reporting within the scope of the "Board Decision on the Determination of Businesses Subject to Sustainability Reporting Within the Scope of the Application of Turkey Sustainability Reporting Standards (TSRS)" dated 5 January 2024.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
2.5 Amendments in Turkish Financial Reporting Standards (Cont'd)
b) Standards, amendments, and interpretations that are issued but not effective as of 30 September 2024:
Amendments to TAS 21 Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is affected when it has a transaction or activity in a foreign currency that is not convertible into another currency at a particular measurement date for a particular purpose. A currency can be exchanged when the ability to obtain another currency is available (with a normal administrative delay) and the transaction occurs through a market or clearing mechanism that creates enforceable rights and obligations.
Amendment to TFRS 9 and TFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:
• clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
• make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).
TFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in TFRS 18 relate to:
• the structure of the statement of profit or loss;
• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and
• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
b) Standards, amendments, and interpretations that are issued but not effective as of 30 September 2024 (Cont'd):
TFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. Earlier application is permitted. This new standard works alongside other TFRS Accounting Standards. An eligible subsidiary applies the requirements in other TFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in TFRS 19.
TFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. TFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:
• it does not have public accountability; and
• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with TFRS Accounting Standards.
The Company prepared financial statements in accordance with the going concern assumption.
Summary financial statements for the interim period ending on 30 September 2024 have been prepared in accordance with the TAS 34 standard for the preparation of interim financial statements. The significant accounting policies used in preparing the summary financial statements are consistent with the accounting policies explained in detail in the financial statements dated 31 December 2023. Therefore, interim financial statements should be evaluated together with the financial statements for the year ending 31 December 2023.
The frequency of revaluations is determined to ensure that the carrying amounts of the revalued items of property, plant and equipment are not materially different from their fair values at the end of the reporting period. The frequency of revaluations depends on the change in the fair value of the items of property, plant and equipment.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Where the fair value of a revalued asset is considered to be materially different from its carrying amount, the revaluation is required to be repeated and this is done for the entire asset class in which the revalued asset is included as of the same date. On the other hand, it is not considered necessary to repeat the revaluation of property, plant and equipment whose fair value changes are insignificant.
In this context, as a result of the assessments made by the Company management and received from an independent real estate appraisal firm, it is assumed that the fair values of land, buildings and land improvements determined in the valuation studies performed as of 31 December 2023 will converge to their respective fair values as of 30 September 2024 after deducting current period depreciation and the CPI change in the related interim period.
The Company management takes into consideration the guarantees received from customers, past collection performances, maturity analysis, disputes or lawsuits regarding receivables while evaluating the recoverability of trade receivables. As a result of all these evaluations, the determination of doubtful receivables and the determination of the amount of provisions allocated for these receivables also includes the assumptions and estimates of the management.
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD |
|||||
|---|---|---|---|---|---|
| 1 JANUARY – 30 SEPTEMBER 2024 (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September |
|||||
| 2024 unless otherwise stated.) | |||||
| NOTE 3 – INTERESTS IN OTHER ENTITIES | |||||
| Subsidiaries: | |||||
| As of 30 September 2024 and 31 December 2023 the Group's significant subsidiaries are as follows: | |||||
| 30 September 2024 | 31 December 2023 | ||||
| Voting | Effective | Voting | Effective | ||
| Consolidated subsidiaries | Currency | rights | ownership | rights | ownership |
| Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. | TL | 77,3 | 77,3 | 77,3 | 77,3 |
| Vestel Mobilite Sanayi ve Ticaret A.Ş. | TL | 100 | 100 | 100 | 100 |
| Vestel Ticaret A.Ş. | TL | 100 | 100 | 100 | 100 |
| Vestel CIS Ltd. | RUB | 100 | 100 | 100 | 100 |
| Vestel Holland B.V. Iberia Branch Office | EUR | 100 | 100 | 100 | 100 |
| Vestel France SA | EUR | 100 | 100 | 100 | 100 |
| Vestel Holland B.V. | EUR | 100 | 100 | 100 | 100 |
| Vestel Holland B.V. Germany Branch Office | EUR | 100 | 100 | 100 | 100 |
| Cabot Communications Ltd. | GBP | 90,8 | 90,8 | 90,8 | 90,8 |
| Vestel UK Ltd. | GBP | 100 | 100 | 100 | 100 |
| Vestel Holland B.V. UK Branch Office | GBP | 100 | 100 | 100 | 100 |
| Vestek Elektronik Araştırma Geliştirme A.Ş. | TL | 100 | 100 | 100 | 100 |
| Vestel Trade Ltd. | RUB | 100 | 100 | 100 | 100 |
| Intertechnika LLC | RUB | 99,9 | 99,9 | 99,9 | 99,9 |
| Vestel Central Asia LLP | KZN | 100 | 100 | 100 | 100 |
| Vestel Holland B.V. Poland Branch Office | PLN | 100 | 100 | 100 | 100 |
| Vestel Electronics Gulf DMC | AED | 100 | 100 | 100 | 100 |
| Vestel Electronics Shanghai Trading Co. Ltd. | CNY | 100 | 100 | 100 | 100 |
| Vestel Electronica SRL | RON | 100 | 100 | 100 | 100 |
| Vestel USA | USD | 100 | 100 | 100 | 100 |
| Vestel Ventures Ar-ge A.Ş. | USD | 100 | 100 | 100 | 100 |
| Cylinda AB | SEK | 100 | 100 | - | - |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Financial information of Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş which is not wholly owned by the Group and has significant non-controlling interests is as follows.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Accumulated non-controlling interests | 6.460.737 | 6.542.970 |
| 1 January - | 1 January - | |
| 30 September 2024 | 30 September 2023 | |
| Comprehensive income attributable to | ||
| non-controlling interests | 209.266 | 1.160.036 |
The financial statements of the subsidiary are adjusted to include the effects of revaluation of property, plant and equipment in accordance with the Group's accounting policies applied in preparation of the consolidated financial statements.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Current assets | 32.312.882 | 35.996.675 |
| Non-current assets | 34.147.635 | 33.175.295 |
| Current liabilities | (33.243.081) | (34.252.479) |
| Non-current liabilities | (4.718.376) | (5.587.544) |
| Net assets | 28.499.060 | 29.331.947 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| NOTE 3 – INTERESTS IN OTHER ENTITIES (Cont'd) | ||
|---|---|---|
| Condensed statement of comprehensive income: | ||
| 1 January - | 1 January - | |
| 30 September | 30 September | |
| 2024 | 2023 | |
| Net sales | 54.048.804 | 62.989.601 |
| Income before tax | 278.198 | 6.768.946 |
| Tax benefit / (expense) | 32.521 | (1.629.795) |
| Net income for the period | 310.719 | 5.139.151 |
| Total comprehensive income | 452.951 | 5.383.075 |
| Condensed statement of cash flows: | ||
| 1 January - | 1 January - | |
| 30 September 2024 | 30 September 2023 | |
| Operating activities: | ||
| Changes in working capital | (1.044.976) | 1.700.543 |
| Net cash provided by operating activities | 3.269.636 | 7.246.745 |
| 1 January - | 1 January - | |
|---|---|---|
| Operating activities: | ||
| Changes in working capital | (1.044.976) | 1.700.543 |
| Net cash provided by operating activities | 3.269.636 | 7.246.745 |
| Investing activities: | ||
| Net cash used in investing activities | (3.174.458) | (3.028.237) |
| Financing activities: | ||
| Proceeds from bank borrowings | 8.068.522 | 4.026.078 |
| Repayment of bank borrowings | (3.139.803) | (6.243.340) |
| Net cash used in financing activities | (618.090) | (4.637.275) |
| Cash and cash equivalents at the beginning of the period | 991.125 | 1.295.601 |
| Cash and cash equivalents at the end of the period | 206.598 | 445.787 |
Other financial information of Group's subsidiaries are not presented on the grounds of materiality.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Operating segments are identified on the same basis as financial information is reported internally to the Group's chief operating decision maker. The Group Board of Directors has been identified as the Group's chief operating decision maker who is responsible for allocating resources between segments and assessing their performances. The Group management determines operating segments by reference to the reports reviewed by the Board of Directors to make strategic decisions.
Considering the fact that the Group's risks and rate of returns are dissimilar between product types and between geographical areas, The Group management uses industrial segments as primary reporting format and geographical segments as secondary reporting format. Gross profitability is taken into account in the performance of the segments.
| Consumer and | |||
|---|---|---|---|
| mobility | Household | ||
| electronics | appliances | Total | |
| 1 January -30 September 2024 | |||
| Revenue | 33.789.450 | 65.363.536 | 99.152.986 |
| Cost of sales | (28.086.011) | (47.525.195) | (75.611.206) |
| Gross profit | 5.703.439 | 17.838.341 | 23.541.780 |
| Depreciation and amortization | 2.050.244 | 1.928.442 | 3.978.686 |
| 1 January -30 September 2023 | |||
| Revenue | 39.061.819 | 73.460.365 | 112.522.184 |
| Cost of sales | (34.658.082) | (54.310.385) | (88.968.467) |
| Gross profit | 4.403.737 | 19.149.980 | 23.553.717 |
| Depreciation and amortization | 2.825.310 | 2.061.293 | 4.886.603 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| Consumer and | |||
|---|---|---|---|
| mobility | Household | ||
| electronics | appliances | Total | |
| 1 July-30 September 2024 | |||
| Revenue | 10.959.176 | 22.575.860 | 33.535.036 |
| Cost of sales | (8.432.149) | (16.862.069) | (25.294.218) |
| Gross profit | 2.527.027 | 5.713.791 | 8.240.818 |
| Depreciation and amortization | 329.454 | 478.734 | 808.188 |
| 1 July-30 September 2023 | |||
| Revenue | 16.761.868 | 23.494.381 | 40.256.249 |
| Cost of sales | (15.128.533) | (15.770.039) | (30.898.572) |
| Gross profit | 1.633.335 | 7.724.342 | 9.357.677 |
| Depreciation and amortization | 499.684 | 596.288 | 1.095.972 |
| Consumer and | Household | ||
|---|---|---|---|
| mobility electronics | appliances | Total | |
| 1 January -30 September 2024 | 1.967.353 | 3.298.657 | 5.266.010 |
| 1 January -30 September 2023 | 2.353.606 | 3.747.192 | 6.100.798 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Geographical segments:
| 1 January - | 1 January - | 1 July- | 1 July | |
|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |
| 2024 | 2023 | 2024 | 2023 | |
| Turkey | 45.693.426 | 45.339.063 | 15.074.206 | 15.995.370 |
| Europe | 50.609.688 | 62.215.834 | 17.957.631 | 23.129.128 |
| Other | 11.899.461 | 13.892.070 | 3.870.972 | 4.289.389 |
| Gross segment sales | 108.202.575 | 121.446.967 | 36.902.809 | 43.413.887 |
| Discounts (-) | (9.049.589) | (8.924.783) | (3.367.773) | (3.157.638) |
| Revenue | 99.152.986 | 112.522.184 | 33.535.036 | 40.256.249 |
The amount of export for the period 1 January - 30 September 2024 is TL 62.509.149 (1 January – 30 September 2023: TL 76.107.904). Export sales are denominated in EUR, USD and other currencies as 70%, 20%, and 10% of total exports respectively (1 January – 30 September 2023: 70% EUR, 22% USD, 8% other).
The carrying value of segment assets and costs incurred in order to obtain these assets are not separately disclosed since significant portion of assets of the Group are located in Turkey.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| TL | %35,00 | %34,45 |
| RUB | - | %10,00 |
| EUR | %23,00 | - |
The Group has time deposits amounting to TL 180.266 and EUR 3.000 (31 December 2023: TL 75.250 and RUB 48.500). As of 30 September 2024 and 31 December 2023 the Group's time deposits have an average maturity of less than 3 months.
The credit risks of the banks where the Group has deposits are evaluated based on independent data and no significant credit risk is expected. The fair values of cash and cash equivalents approximate their carrying values, including accrued income, at the balance sheet date.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short term financial liabilities | ||
| Short term bank loans | 28.776.740 | 27.555.174 |
| Short term portion of long term bank loans | 1.615.120 | 3.837.597 |
| Short term portion of long term issued bonds (*) | 3.401.700 | 2.536.866 |
| Short term portion of long term lease liabilities | 264.115 | 313.786 |
| Short term issued bonds (*) | 3.452.912 | 2.286.135 |
| 37.510.587 | 36.529.558 | |
| Long term financial liabilities | ||
| Long term bank loans | 1.119.119 | 2.537.160 |
| Long term lease liabilities | 692.445 | 903.152 |
| Long term issued bonds (*) | 16.026.295 | - |
| 17.837.859 | 3.440.312 |
* The maturity of the commercial papers with the ISIN code TRSVSTLK2421, with a maturity of 379 days and a payment every 3 months, amounting to 460.000 TL, which was issued by the Group to qualified investors on 19 October 2023, is 1 November 2024 and the annual simple interest rate of the coupon has been determined as 56%.
* The maturity of the commercial papers with the ISIN code TRSVSTLK2413, with a maturity of 395 days and a quarterly payment, in the amount of 300.000 TL, which was issued to qualified investors on 3 October 2023, is 1 November 2024 and the annual simple interest rate of the coupon has been determined as 59%.
* The maturity of the bond with the ISIN code TRSVSTLA2415, with a maturity of 379 days and a quarterly payment amounting to 517.000 TL, which was issued to qualified investors on 22 November 2023, is 5 December 2024 and the annual simple interest rate of the coupon has been determined as 56%.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
* The maturity date of the bond with the ISIN code TRFVSTL2418, with a maturity of 167 days, a single coupon payment and an amount of 400.000 TL, which was issued to qualified investors on 6 June 2024, is 20 November 2024 and the annual simple interest rate of the coupon has been determined as 55%.
* The maturity of the bond with the ISIN code TRSVSTL22511, with a maturity of 384 days and a quarterly payment, amounting to 370.000 TL, which was issued to qualified investors on 7 February 2024, is 26 February 2025 and the annual simple interest rate of the coupon has been determined as 56%.
* The maturity date of the bond with the ISIN code TRFVSTLK2426, amounting to TL 360.000, with a maturity of 139 days, a single coupon payment, issued to qualified investors on 4 July 2024 is 20 November 2024 and the annual simple interest rate of the coupon has been determined as 52%.
* The maturity date of the bond with the ISIN code TRFVESTA2419, with a maturity of 295 days and a quarterly payment, amounting to 556.430 TL, which was issued to qualified investors on 21 February 2024, is 12 December 2024 and the annual simple interest rate of the coupon has been determined as 56%.
* The maturity date of the bond with the ISIN code TRFVESTK2417, amounting to TL 455.000, with a maturity of 113 days, a single coupon payment, issued to qualified investors on 17 July 2024 is 7 November 2024 and the annual simple interest rate of the coupon has been determined as 53%.
* The maturity date of the bond with the ISIN code TRFVEST22513, amounting to TL 200.000, with a maturity of 175 days, a single coupon payment, issued to qualified investors on 21 August 2024 is 12 February 2025 and the annual simple interest rate of the coupon has been determined as 52%.
* The maturity date of the bond with the ISIN code TRFVSTL12519, amounting to TL 209.000, with a maturity of 161 days, a single coupon payment, issued to qualified investors on 21 August 2024 is 29 January 2025 and the annual simple interest rate of the coupon has been determined as 52%.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
* The maturity date of the bond with the ISIN code TRFVSTL12527, amounting to TL 220.000, with a maturity of 161 days, a single coupon payment, issued to qualified investors on 21 August 2024 is 29 January 2025 and the annual simple interest rate of the coupon has been determined as 52%.
* The maturity date of the bond with the ISIN code TRFVSTL22521, amounting to TL 800.000, with a maturity of 147 days, a single coupon payment, issued to qualified investors on 18 September 2024 is 12 February 2025 and the annual simple interest rate of the coupon has been determined as 53%.
| Weighted average of effective interest %9,32 %8,19 %31,91 - |
Details of the Group's short term bank loans are given below: 30 September 2024 Original currency 264.149 158.235 13.696.529 - |
TL Equivalent 9.029.273 6.050.938 13.696.529 - |
Weighted average of effective interest %10,48 %10,12 %37,80 %7,96 |
31 December 2023 Original currency 317.322 105.507 9.338.183 145.484 |
The Group has fulfilled its financial commitments arising from its borrowings as of 30 September 2024 and 2023. TL Equivalent 12.714.134 4.677.628 9.338.183 825.229 |
|---|---|---|---|---|---|
| Vestel Ticaret A.Ş are guarantors in issued bonds. | |||||
| maturity of the bond is 15 May 2029 and the coupon interest rate is 9,75%. Vestel Mobilite Sanayi ve Ticaret A.Ş and | |||||
| The Group issued a bond with a fixed interest payment coupon every 6 months, quoted on the Irish Stock Exchange, amounting to a total of USD 500 million, USD 450 million on 15 May 2024 and USD 50 million on 6 June 2024. The |
| 1 JANUARY – 30 SEPTEMBER 2024 | ||||||
|---|---|---|---|---|---|---|
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September | ||||||
| 2024 unless otherwise stated.) | ||||||
| NOTE 6 – FINANCIAL LIABILITIES (Cont'd) | ||||||
| Details of the Group's long term bank loans are given below: | ||||||
| 30 September 2024 | 31 December 2023 | |||||
| Weighted | Weighted | |||||
| average of | average of | |||||
| effective | Original | effective | Original | |||
| Currency | interest | currency | TL Equivalent | interest | currency | TL Equivalent |
| - USD | %10,66 | 36.030 | 1.231.595 | %11,03 | 28.587 | 1.145.395 |
| - EUR | - | - | - | %10,96 | 14.190 | 629.111 |
| - TL | %22,41 | 383.525 | 383.525 | %29,96 | 2.063.091 | 2.063.091 |
| Short term portion | 1.615.120 | 3.837.597 | ||||
| - USD | - | - | - | %11,21 | 15.690 | 628.651 |
| - EUR | - | - | - | %10,96 | 6.135 | 271.994 |
| - TL | %20,65 | 1.119.119 | 1.119.119 | %20,65 | 1.636.515 | 1.636.515 |
| Long term portion | 1.119.119 | 2.537.160 | ||||
| 2.734.239 | 6.374.757 |
Total amount of Group's floating bank loans is TL 15.591.457 (31 December 2023: TL 17.321.901).
A significant portion of long-term loans consists of loans used within the approval of the Investment Committed Advance Loan (YTAK) with a fixed interest rate, originating from the Central Bank.
The maturity schedule of Group's long term bank loans is given below:
| Uzun vadeli finansal borçların ödeme planı | 30 September 2024 | 31 December 2023 |
|---|---|---|
| One to two years | 327.723 | 1.338.387 |
| Two years and more | 791.396 | 1.198.773 |
| 1.119.119 | 2.537.160 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Guarantees given for the bank loans obtained are presented in note 16.
Fair values of short-term bank borrowings are considered to approximate their carrying values due to immateriality of discounting. Fair values are determined using average effective annual interest rates. Long term bank borrowings and long term issued bonds are stated at amortized cost using effective interest rate method and their fair values are considered to approximate their carrying values since loans usually have a re-pricing period of six months.
As of 30 September 2024 and 2023, the Group's net financial debt reconciliation is shown below:
| 30 September 2024 | 30 September 2023 | |
|---|---|---|
| Net financial debt as of 1 January | 36.852.336 | 44.511.002 |
| Cash inflows from loans and issued bonds | 65.160.661 | 29.665.000 |
| Cash outflows from loan and bonds payments | (41.727.597) | (24.851.354) |
| Changes of lease liabilities | (260.378) | (302.639) |
| Unrealized exchange gain | 2.201.378 | 3.715.928 |
| Changed interest | (568.802) | (795.290) |
| Change in cash and cash equivalents | (1.629.899) | 1.230.138 |
| Monetary loss | (9.426.686) | (14.551.402) |
| Net financial debt at the end of the period | 50.601.013 | 38.621.383 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| ZES Dijital Ticaret A.Ş. (1) | 29.116 | 34.169 |
| Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. (4) | 285.120 | 523.569 |
| Other related parties | 453.471 | 62.522 |
| 767.707 | 620.260 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| ABH Turizm Temsilcilik ve Ticaret A.Ş. (1) | 30.477 | 23.770 |
| Zorlu Holding A.Ş. (2) | 80.112 | 54.841 |
| Other related parties | 120.100 | 74.268 |
| 230.689 | 152.879 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Lentatek Uzay Havacılık ve Teknoloji A.Ş. (4) | 1.010.937 | 1.208.224 |
| 1.010.937 | 1.208.224 |
As of 30 September 2024, the Company's interest rate of short term other receivables in USD is 9%, and in TL is 55% (31 December 2023: in USD 8% and TL 50%).
(1) Zorlu Holding Group Company, (2) Parent (3) Subsidiary (4) Associates
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Zorlu Holding A.Ş. (2) | 13.388.796 | 15.395.106 |
| Lentatek Uzay Havacılık ve Teknoloji A.Ş. (4) | 14.211.657 | 13.666.556 |
| Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A. Ş. (4) | 11.127.755 | 10.022.337 |
| 38.728.208 | 39.083.999 |
As of 30 September 2024, the Company's interest rate of other receivables in USD is 9%, and in TL is 55% (31 December 2023: in USD 8% and TL 50%).
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Zorlu Enerji Elektrik Üretim A.Ş. (1) | 2.538.510 | 2.556.525 |
| Other | 34.972 | 136.378 |
| 2.573.482 | 2.692.903 |
| 1 January - 30 September 2024 |
1 January - | 1 July- 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| 30 September | ||||
| 2023 | ||||
| Sales | ||||
| ZES Dijital Ticaret A.Ş. (1) | 692.321 | 293.951 | 100.763 | 248.788 |
| Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. (4) | 1.061.991 | 521.660 | 304.970 | 394.824 |
| Other related parties | 44.600 | 47.367 | 11.817 | 15.209 |
| 1.798.912 | 862.978 | 417.550 | 658.821 |
(1) Zorlu Holding Group Company, (2) Parent (3) Subsidiary (4) Associates
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January - 30 September |
1 January - 30 September |
1 July- 30 September |
1 July 30 September |
|
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Operating expenses | ||||
| Zorlu Holding A.Ş. (2) | 507.394 | 393.403 | 195.183 | 120.977 |
| ABH Turizm Temsilcilik ve Ticaret A.Ş. (1) | 159.553 | 126.156 | 58.221 | 48.398 |
| Other related parties | 133.094 | 141.182 | 52.667 | 43.2820 |
| 800.041 | 660.741 | 306.071 | 212.657 | |
| 1 January - | 1 January - | 1 July- | 1 July | |
| 30 September | 30 September | 30 September | 30 September | |
| 2024 | 2023 | 2024 | 2023 | |
| Financial income | ||||
| Zorlu Holding A.Ş. (2) | 2.922.706 | 6.336.847 | 509.659 | 1.235.546 |
| Lentatek Uzay Havacılık ve Teknoloji A.Ş. (4) | 3.419.961 | 5.688.869 | 1.036.348 | 1.204.074 |
| Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A.Ş. (4) | 2.449.889 | 4.016.108 | 753.218 | 816.484 |
| Other related parties | - | 758.056 | - | 113.244 |
| 8.792.556 | 16.799.880 | 2.299.225 | 3.369.348 |
Financial income from related parties consists of interest income and foreign exchange differences arising from financial liabilities.
| 1 January - 30 September |
1 January - 30 September 2023 |
1 July- 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| 2024 | ||||
| Financial expense | ||||
| Other related parties | 4.029 | 5.154 | 1.293 | 2.238 |
| 4.029 | 5.154 | 1.293 | 2.238 |
(1) Zorlu Holding Group Company, (2) Parent (3) Subsidiary (4) Associates
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January - 30 September |
1 January - 30 September 2023 |
1 July- 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| 2024 | ||||
| Other income from operating activities | ||||
| Other related parties | 885.533 | 712.553 | 398.124 | 138.287 |
| Other expense from operating activities | ||||
| Other related parties | 21.052 | 21.177 | 11.700 | 11.824 |
g) Guarantees received from and given to related parties are disclosed in note 16.
h) Compensation paid to key management including directors, the Chairman and members of Board of Directors, general managers and assistant general managers for the nine months period ended 30 September 2024 is TL 198.568 (1 January - 30 September 2023: TL 242.280).
i) Financing income from related parties consists of interest income arising from loans given for financing purposes.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short term trade receivables | ||
| Trade receivables | ||
| - Related parties (Note 7) | 767.707 | 620.260 |
| - Other parties | 19.993.039 | 21.345.956 |
| Cheques and notes receivables | 1.007.527 | 2.313.556 |
| Other | 73.077 | 110.184 |
| 21.841.350 | 24.389.956 | |
| Allowance for doubtful receivables (-) | (157.492) | (171.625) |
| Total short term trade receivables | 21.683.858 | 24.218.331 |
| Long term trade receivables | ||
| Cheques and notes receivables | 266 | 1.116 |
| Total long term trade receivables | 266 | 1.116 |
| 30 September 2024 | 31 December 2023 |
| Short term trade payables | ||
|---|---|---|
| Trade payables | ||
| - Related parties (Note 7) | 230.689 | 152.879 |
| - Other parties | 44.556.387 | 56.854.098 |
| Other | 7.476 | 7.866 |
| Total short term trade payables | 44.794.552 | 57.014.843 |
| Long term trade payables | ||
| Trade payables | ||
| - Other parties | 173.673 | 242.068 |
| Total long term trade payables | 173.673 | 242.068 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short term other receivables | ||
| Receivables from public institutions | 1.289.972 | 1.518.390 |
| Receivables from related parties (Note 7) | 1.010.937 | 1.208.224 |
| Deposits and guarantees given | 162.420 | 310.601 |
| Other | 32.962 | 27.513 |
| 2.496.291 | 3.064.728 | |
| Allowance for doubtful receivables (-) | (211) | (302) |
| 2.496.080 | 3.064.426 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Long term other receivables | ||
| Deposits and guarantees given | 29.538 | 28.010 |
| Receivables from related parties (Note 7) | 38.728.208 | 39.083.999 |
| Other | 40.514 | 29.032 |
| 38.798.260 | 39.141.041 | |
| Allowance for doubtful receivables (-) | (8.278) | (11.247) |
| 38.789.982 | 39.129.794 | |
| Short term other payables | ||
| Other payables | ||
| - Other parties | 162.474 | 19.246 |
| 162.474 | 19.246 | |
| Deferred revenue | ||
| - Other parties | 2.110.112 | 1.452.552 |
| 2.110.112 | 1.452.552 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Raw materials | 15.762.369 | 16.315.822 |
| Work in process | 663.711 | 784.204 |
| Finished goods | 14.723.861 | 13.766.085 |
| Merchandise | 1.423.709 | 1.514.773 |
| Other | 74.790 | 41.672 |
| 32.648.440 | 32.422.556 | |
| Provision for impairment on inventories (-) | (536.536) | (480.493) |
| 32.111.904 | 31.942.063 | |
Cost of the inventory included in the consolidated statement of comprehensive income in the period 1 January – 30 September 2024 is TL 62.784.594 (1 January – 30 September 2023: TL 76.471.070).
As of 30 September 2024, the Group does not have inventories pledged as security for liabilities (31 December 2023: None).
Movement of provision for impairment on inventories is as follows:
| 1 January - | 1 January - | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Opening balance, 1 January | 480.493 | 522.888 |
| Current year additions | 94.850 | 203.715 |
| Realised due to sale of inventory | (49.689) | (78.633) |
| Currency translation differences | 10.882 | 69.290 |
| Balances at 30 September 2024 | 536.536 | 717.260 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Prepaid expenses in current assets | ||
| Order advances given | 556.535 | 1.653.866 |
| Prepaid expenses | 756.799 | 404.735 |
| Business advances given | 11.886 | 11.793 |
| 1.325.220 | 2.070.394 | |
| Prepaid expenses in non-current assets | ||
| Advances given for fixed asset purchases | 448.860 | 405.387 |
| Prepaid expenses | 384.167 | 82.097 |
| 833.027 | 487.484 |
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| % | Amount | % | Amount | |
| Subsidiaries | ||||
| Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. | %23 | 6.371.052 | %23 | 7.957.708 |
| 6.371.052 | 7.957.708 |
Within the framework of Turkey's Automobile Project, following the work undertaken by the Joint Initiative Group, to which Group's controlling shareholder, Zorlu Holding AŞ was a party, Vestel Elektronik Sanayi ve Ticaret AŞ decided to participated with 19% share in "Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş.", which was planned to be established to produce mainly electric passenger cars and carry out supporting activities. In this respect, the Shareholders Agreement and Articles of Association have been signed on 31 May 2018. Establishment of the new Group was completed on 28 June 2018.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Within the scope of the decision taken at the Annual General Meeting of TOGG which was held on 31 May 2021, the Group's stake in TOGG has reached to 23%.
The movements of TOGG, which is an investment accounted for using the equity method during the period 1 January – 30 September 2024 and 2023 is as follows:
| 1 January - | 1 January - | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Balance at 1 January | 7.957.708 | 5.130.486 |
| Shares from profit / (loss) | (1.593.627) | 5.884 |
| Shares from other comprehensive income | 6.911 | 56.220 |
| Capital Increase | 60 | 231.920 |
| Balances at 30 September 2024 | 6.371.052 | 5.424.510 |
| NOTE 13 – PROPERTY, PLANT AND EQUIPMENT | ||||||||
|---|---|---|---|---|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 SEPTEMBER 2024 (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) |
||||||||
| Currency | ||||||||
| 1 January | translation | 30 September | ||||||
| 2024 | Additions | Disposals | differences | Transfers | 2024 | |||
| Cost or revaluation | ||||||||
| Land | 18.613.365 | 33.182 | - | (18.118) | - | 18.628.429 | ||
| Land improvements | 586.457 | - | - | (27.529) | 1.202 | 560.130 | ||
| Buildings | 13.623.666 | 28.550 | (171) | (349.336) | 48.437 | 13.351.146 | ||
| Leasehold improvements | 1.881.984 | 5.591 | (138) | (1.791) | 366 | 1.886.012 | ||
| Plant and machinery | 45.390.869 | 1.066.108 | (421.307) | (119.901) | 328.790 | 46.244.559 | ||
| Motor vehicles | 87.336 | 1.252 | (5.154) | (759) | 16 | 82.691 | ||
| Furniture and fixtures | 7.808.880 | 412.502 | (10.723) | (19.555) | 19.154 | 8.210.258 | ||
| Other tangible assets | 18.787 | - | - | - | - | 18.787 | ||
| Construction in progress | 2.412.284 | 1.551.245 | - | (788) | (401.964) | 3.560.777 | ||
| 90.423.628 | 3.098.430 | (437.493) | (537.777) | (3.999) | 92.542.789 | |||
| Accumulated depreciation | ||||||||
| Land improvements | 44.356 | 19.150 | - | (8.264) | - | 55.242 | ||
| Buildings | 532.460 | 552.051 | (171) | (112.016) | - | 972.324 | ||
| Leasehold improvements | 1.543.367 | 71.597 | (138) | (4.524) | - | 1.610.302 | ||
| Plant and machinery | 34.175.742 | 1.929.102 | (408.565) | (129.718) | - | 35.566.561 | ||
| 69.456 | 5.374 | (3.639) | 1.628 | - | 72.819 | |||
| Motor vehicles | 306.233 | (9.333) | (17.271) | - | 7.255.150 | |||
| Furniture and fixtures | 6.975.521 | |||||||
| Other tangible assets | 18.787 | - | - | - | - | 18.787 | ||
| 43.359.689 | 2.883.507 | (421.846) | (270.165) | - | 45.551.185 |
| 45 | |||||||
|---|---|---|---|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 SEPTEMBER 2024 (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) |
|||||||
| NOTE 13 – PROPERTY, PLANT AND EQUIPMENT (Cont'd) | |||||||
| 1 January | Currency translation |
30 September | |||||
| 2023 | Additions | Disposals | differences | Transfers | 2023 | ||
| Cost or revaluation | |||||||
| Land | 7.151.297 | - | - | (20.859) | - | 7.130.438 | |
| Land improvements | 622.557 | 624 | - | (34.869) | - | 588.312 | |
| Buildings | 11.535.981 | 58.660 | - | (406.406) | 41.534 | 11.229.769 | |
| Leasehold improvements | 1.745.691 | 117.435 | - | (1.924) | 8.675 | 1.869.877 | |
| Plant and machinery | 42.463.956 | 1.684.281 | (647.394) | (240.694) | 244.645 | 43.504.794 | |
| Motor vehicles | 80.052 | 5.620 | (478) | (1.029) | - | 84.165 | |
| Furniture and fixtures | 7.411.728 | 252.062 | (18.092) | (13.777) | 42.412 | 7.674.333 | |
| Other tangible assets | 18.787 | - | - | - | - | 18.787 | |
| Construction in progress | 4.483.313 | 1.988.453 | - | (865) | (340.992) | 6.129.909 | |
| 75.513.362 | 4.107.135 | (665.964) | (720.423) | (3.726) | 78.230.384 | ||
| Accumulated depreciation | |||||||
| Land improvements | 41.520 | 22.975 | - | (8.421) | - | 56.074 | |
| Buildings | 578.077 | 459.584 | - | (107.028) | - | 930.633 | |
| Leasehold improvements | 1.470.207 | 69.843 | - | (1.341) | - | 1.538.709 | |
| Plant and machinery | 32.646.582 | 2.373.856 | (642.816) | (232.831) | - | 34.144.791 | |
| Motor vehicles | 66.932 | 4.323 | (478) | (910) | - | 69.867 | |
| Furniture and fixtures | 6.645.206 | 308.482 | (17.430) | (13.684) | - | 6.922.574 | |
| Other tangible assets | 18.787 | - | - | - | - | 18.787 | |
| 41.467.311 | 3.239.063 | (660.724) | (364.215) | - | 43.681.435 | ||
| Net book value | 34.046.051 | 34.548.949 |
| 46 | |||
|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 SEPTEMBER 2024 (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) |
|||
| NOTE 13 – PROPERTY, PLANT AND EQUIPMENT (Cont'd) | |||
| Allocation of current year depreciation and amortization expenses is as follows: | |||
| 1 January - | 1 January - | ||
| 30 September | 30 September | ||
| 2024 | 2023 | ||
| Cost of sales | 2.237.679 | 2.787.210 | |
| Operational expenses | 1.723.316 | 2.083.903 | |
| Other operating expense (idle capacity depreciation expense) | 17.691 | 15.490 | |
| 3.978.686 | 4.886.603 | ||
| 30 September 2024 | Level 1 | Level 2 | Level 3 |
| Tangible Assets | |||
| Lands | - | 18.628.429 | - |
| Buildings and land improvements | - | 13.911.276 | - |
| 31 December 2023 | Level 1 | Level 2 | Level 3 |
| Tangible Assets | |||
| Lands | - | 18.613.365 | - |
Buildings and land improvements - 14.210.123 -
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January | 30 September | |||
|---|---|---|---|---|
| 2024 | Additions | Disposals | 2024 | |
| Cost | ||||
| Land and buildings | 3.218.052 | 514.983 | - | 3.733.035 |
| Motor vehicles | 638.015 | 27.388 | - | 665.403 |
| 3.856.067 | 542.371 | - | 4.398.438 | |
| Accumulated amortization | ||||
| Land and buildings | 1.653.223 | 261.344 | - | 1.914.567 |
| Motor vehicles | 530.290 | 58.288 | - | 588.578 |
| 2.183.513 | 319.632 | - | 2.503.145 | |
| Net book value | 1.672.554 | 1.895.293 | ||
| 1 January | Additions | 30 September | ||
| 2023 | Disposals | 2023 | ||
| Cost | ||||
| Land and buildings | 2.482.191 | 539.305 | (15.140) | 3.006.356 |
| Motor vehicles | 591.242 | 53.608 | - | 644.850 |
| 3.073.433 | 592.913 | (15.140) | 3.651.206 | |
| Accumulated amortization | ||||
| Land and buildings | 1.268.858 | 459.977 | (3.105) | 1.725.730 |
| Motor vehicles | 460.469 | 63.105 | - | 523.574 |
| 1.729.327 | 523.082 | (3.105) | 2.249.304 | |
| Net book value | 1.344.106 | 1.401.902 |
| 48 | ||||||
|---|---|---|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ | ||||||
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD | ||||||
| 1 JANUARY – 30 SEPTEMBER 2024 | ||||||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) |
||||||
| NOTE 15 – INTANGIBLE ASSETS | ||||||
| Currency | ||||||
| 1 January | translation | 30 September | ||||
| 2024 | Additions | Disposals | differences | Transfers | 2024 | |
| Cost | ||||||
| Rights | 815.666 | 274 | - | (5.096) | - | 810.844 |
| Development cost | 16.231.493 | 1.912.035 | (153.183) | 15.044 | - | 18.005.389 |
| Other intangible assets | 2.519.484 | 255.271 | (1.461) | (5.987) | 3.999 | 2.771.306 |
| 19.566.643 | 2.167.580 | (154.644) | 3.961 | 3.999 | 21.587.539 | |
| Accumulated amortization | ||||||
| Rights | 685.131 | 27.461 | - | (13.143) | - | 699.449 |
| Development cost | 11.712.781 | 626.130 | (153.183) | (11.087) | - | 12.174.641 |
| Other intangible assets | 1.851.443 | 121.956 | (281) | (6.364) | - | 1.966.754 |
| 14.249.355 | 775.547 | (153.464) | (30.594) | - | 14.840.844 | |
| Net book value | 5.317.288 | 6.746.695 | ||||
| Currency | ||||||
| 1 January | translation | 30 September | ||||
| 2023 | Additions | Disposals | differences | Transfers | 2023 | |
| Cost | ||||||
| Rights | 815.539 | 1.401 | - | (1.546) | - | 815.394 |
| Development cost | 14.312.482 | 1.861.537 | - | - | - | 16.174.019 |
| Other intangible assets | 2.341.620 | 130.725 | (1.347) | (9.983) | 3.726 | 2.464.741 |
| 17.469.641 | 1.993.663 | (1.347) | (11.529) | 3.726 | 19.454.154 | |
| Accumulated amortization | ||||||
| Rights | 653.639 | 27.367 | - | (1.416) | - | 679.590 |
| Development cost | 10.576.499 | 1.016.759 | - | - | - | 11.593.258 |
| Other intangible assets | 1.772.357 | 80.332 | - | (10.884) | - | 1.841.805 |
| 13.002.495 | 1.124.458 | - | (12.300) | - | 14.114.653 | |
| Net book value | 4.467.146 | 5.339.501 |
Development costs incurred by the Group on development projects relating to television and electronic devices, refrigerators, split air conditioners, washing machines, cookers, drying machines and dish washers are capitalized as intangible assets.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short term provisions | ||
| Warranty and assembly provision | 1.661.095 | 1.617.107 |
| Other provisions | 1.728.506 | 2.316.939 |
| Provision for lawsuit risks | 77.886 | 103.936 |
| 3.467.487 | 4.037.982 | |
| Long term provisions | ||
| Warranty and assembly provision | 548.576 | 474.370 |
| 548.576 | 474.370 |
As of 30 September 2024, the amount of provision provided for the cases for which the probability of losing the case is assessed to be high by the Group management and legal advisors is TL 77.886 (31 December 2023: TL 103.936).
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Guarantee letters | 4.858.904 | 4.961.072 |
| Cheques and notes | 2.949.529 | 2.807.285 |
| Collaterals and pledges | 6.405.643 | 6.102.060 |
| 14.214.076 | 13.870.417 |
The table above has been prepared based on the lower of the limits used or the amounts of guarantees received regarding the guarantees given by the Group.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| USD | EUR | GBP | |||
|---|---|---|---|---|---|
| CPMB's given by the Group | ('000) | ('000) | ('000) | TL | TL Equivalent |
| 30 September 2024 | |||||
| A. CPMB's given on behalf of its own legal entity | 509 | 2.135 | - | 5.823.007 | 5.922.049 |
| B. CPMB's given on behalf of fully consolidated subsidiaries | |||||
| (*) | 2.593.284 | 181.237 | 60.400 | 20.493.383 | 118.840.246 |
| C. CPMB's given on behalf of third parties for ordinary | |||||
| course of business | - | - | - | - | - |
| D. Total amount of other CPMB's given | 21.248 | - | - | 16.894 | 743.204 |
| i. Total amount of CPMB's given on behalf of the parent | |||||
| company | - | - | - | - | - |
| ii. Total amount of CPMB's given to on behalf of other | |||||
| group companies which are not in scope of B and C. | 21.248 | - | - | 16.894 | 743.204 |
| iii.Total amount of CPMB's given on behalf of third parties | |||||
| which are not in scope of C. | - | - | - | - | - |
| Total | 2.615.041 | 183.372 | 60.400 | 26.333.284 | 125.505.499 |
(*) Fully consolidated subsidiaries have given collaterals to various financial institutions on behalf of each other for their forward contracts and for the total amount of loans utilized.
The table above has been prepared based on the lower of the limits used or the amounts of guarantees given regarding the guarantees given by the Group.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| USD | EUR | GBP | |||
|---|---|---|---|---|---|
| CPMB's given by the Group | ('000) | ('000) | ('000) | TL | TL Equivalent |
| 31 December 2023 | |||||
| A. CPMB's given on behalf of its own legal entity | 509 | 2.135 | - | 4.102.177 | 4.217.226 |
| B. CPMB's given on behalf of fully consolidated subsidiaries | |||||
| (*) | 2.182.426 | 148.778 | 60.346 | 19.212.571 | 116.337.547 |
| C. CPMB's given on behalf of third parties for ordinary | |||||
| course of business | - | - | - | - | - |
| D. Total amount of other CPMB's given | 36.565 | - | - | 27.308 | 1.492.355 |
| i. Total amount of CPMB's given on behalf of the parent | |||||
| company | - | - | - | - | - |
| ii. Total amount of CPMB's given to on behalf of other | |||||
| group companies which are not in scope of B and C. | 36.565 | - | - | 27.308 | 1.492.355 |
| iii.Total amount of CPMB's given on behalf of third parties | |||||
| which are not in scope of C. | - | - | - | - | - |
| Total | 2.219.500 | 150.913 | 60.346 | 23.342.056 | 122.047.128 |
As of 30 September 2024, proportion of other CPMB's given by the Group to its equity is 1% (31 December 2023: 3%).
As of the balance sheet date the Group has committed to realize exports amounting to USD 3.106.545 thousand (31 December 2023: USD 3.121.967 thousand) due to the export and investment incentive certificates obtained.
As of 30 September 2024, the Group has forward foreign currency purchase contract that amounts to, EUR 190.960 thousand, USD 364.321 thousand, SEK 13.556 thousand, GBP 88.012 thousand, PLN 7.399 thousand and TL 2.561.894, against forward foreign currency sales contract that amounts to EUR 250.719 thousand, GBP 68.876 thousand, PLN 38.508 thousand, RUB 828.225 thousand, USD 372.656 thousand, SEK 54.305 and TL 115.658 (31 December 2023: purchase contract that amounts to USD 1.068.802 thousand, EUR 227.544 thousand, GBP 135.899 thousand, PLN 21.625 thousand and CNY 156.580 thousand against forward foreign currency sales contract that amounts to USD 419.731 thousand, EUR 704.294 thousand, GBP 142.433 thousand, PLN 60.525 thousand, RUB 987.000, TL 4.029.267).
| 52 VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 SEPTEMBER 2024 (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) NOTE 18 – EMPLOYEE BENEFITS Liabilities for employee benefits: 30 September 2024 31 December 2023 Due to personnel 702.250 694.463 Social security payables 409.024 545.198 1.111.274 1.239.661 Long term provisions for employee benefits: 30 September 2024 31 December 2023 |
||
|---|---|---|
| Provision for employment termination benefits 1.767.401 2.147.753 |
Under Turkish law, the Group is required to pay employment termination benefits to each employee whose employment is terminated without due cause. In addition, under the existing Social Security Law No.506, clause No. 60, amended by the Labor Laws dated 6 March 1981, No.2422 and 25 August 1999, No.4447, the Group is also required to pay termination benefits to each employee who has earned the right to retire by receiving termination indemnities.
The amount payable is the equivalent of one month's salary for each year of service and is limited to a maximum of 41.828,42 TL/year as of 30 September 2024 (31 December 2023: 23.489,83 TL/year - at 31 December 2023 purchasing power).
Provision for employment termination benefits is not subject to any funding.
The provision is calculated by estimating the present value of the future obligation of the Group arising from retirement of employees. TAS 19 ("Employee Benefits") requires actuarial valuation methods to be developed to estimate the enterprise's obligation under defined employee plans. Accordingly actuarial assumptions were used in the calculation of the total liability which are described below:
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. An expected inflation rate and appropriate discount rate should both be determined, the net of these being real discount rate. Consequently, in the accompanying financial statements as of 31 December 2023 the provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. As of 30 September 2024, provision is calculated based on real discount rate of 3,72% assuming 23,60% annual inflation rate and 49,25% discount rate. (31 December 2023: 23,60% inflation rate, 49,25% real discount rate, 3,72% discount rate)
The main assumption is that the seniority ceiling for each year of service increases in line with inflation. Thus, the discount rate applied represents the actual rate adjusted for the expected effects of inflation. The maximum liability is revised every six months, the maximum amount of TL 41.828,42 effective from 1 July 2024 has been taken into consideration in the calculation of provision for employment termination benefits as of 31 December 2023 and 30 September 2024.
The movement in the provision for employment termination benefit is as follows:
| 1 January - | 1 January - | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Balance at 1 January | 2.147.753 | 2.775.891 |
| Increase during the year | 199.590 | 142.467 |
| Payments during the year | (337.485) | (692.644) |
| Actuarial loss | 41.353 | 318.782 |
| Interest expense | 275.647 | 127.660 |
| Monetary loss | (559.457) | (842.295) |
| Balance at 30 September | 1.767.401 | 1.829.861 |
| 54 | ||
|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ | ||
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 SEPTEMBER 2024 |
||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.) |
||
| NOTE 19 – OTHER ASSETS AND LIABILITIES | 30 September 2024 | 31 December 2023 |
| Other current assets | ||
| VAT carried forward Rebates from suppliers and incentives income accruals |
255.653 177.462 |
64.876 190.678 |
| Other | 55.214 | 367.339 |
| 488.329 | 622.893 | |
| 30 September 2024 | 31 December 2023 | |
| Other current liabilities | ||
| Taxes payables | 951.126 | 1.682.592 |
| Other | 1.174.103 | 1.592.403 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Shares of par value Kr 1 each | ||
| limit on registered share capital | 2.000.000 | 2.000.000 |
| Issued share capital | 335.456 | 335.456 |
As of 30 September 2024 and 31 December 2023 the shareholding structures are as follows:
| 30 September 31 December 30 September 31 December |
|---|
| 2024 2023 2024 2023 |
| Zorlu Holding A.Ş. %52,77 %55,69 177.019 186.815 |
| Other shareholders (Publicly Listed) %47,23 %44,31 158.437 148.641 |
| %100 %100 335.456 335.456 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Adjustment to share capital is the difference between restated share capital and historical share capital.
Share premium account refers the difference between par value of the company's shares and the amount the company received for newly issued shares. The share premium account is disclosed under equity as a separate line item and may not be distributed. It may be used in capital increase.
The legal reserves consist of first and second legal reserves appropriated in accordance with the Turkish Commercial Code ("TCC"). The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the Company's share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the Company's share capital. Under TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid in share capital.
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Legal reserves | 1.702.593 | 1.702.593 | ||
| PPI - Indexed | CPI Indexed | Differences Tracked in Past | ||
| Legal Records | Amounts | Years Profits / Losses | ||
| Capital Adjustment Gains / Losses | 30.463.337 | 21.199.309 | 9.264.028 | |
| Appropriated Retained Earnings | 2.385.753 | 1.702.593 | 683.160 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Fair value gains on financial assets | 61.206 | 82.647 |
| Revaluation of property, plant and equipment | 12.188.309 | 12.283.240 |
| 12.249.515 | 12.365.887 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January - | 1 January - | 1 July - 30 September |
1 July - | |
|---|---|---|---|---|
| 30 September | 30 September | 30 September | ||
| 2024 | 2023 | 2024 | 2023 | |
| Domestic sales | 45.693.426 | 45.339.063 | 15.074.206 | 15.995.370 |
| Export sales | 62.509.149 | 76.107.904 | 21.828.603 - |
27.418.517 - |
| Gross sales | 108.202.575 | 121.446.967 | 36.902.809 | 43.413.887 |
| Sales discounts (-) | (9.049.589) | (8.924.783) | (3.367.773) | (3.157.638) |
| Net sales | 99.152.986 | 112.522.184 | 33.535.036 - |
40.256.249 - |
| Cost of sales | (75.611.206) | (88.968.467) | (25.294.218) 0 |
(30.898.572) 0 |
| Gross profit | 23.541.780 | 23.553.717 | 8.240.818 | 9.357.677 |
| 1 January - | 1 January - | 1 July - 30 September |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| 30 September | 30 September | |||
| 2024 | 2023 | 2024 | ||
| Overdue interest charges | 1.257.476 | 531.861 | 597.697 | 20.404 |
| Foreign exchange gains arising from trading activities | 1.215.965 | 2.780.597 | 352.777 | 34.663 |
| Other income | 537.763 | 351.136 | 119.925 | 74.628 |
| 3.011.204 | 3.663.594 | 1.070.399 | 129.695 |
| 1 January - | 1 January - 30 September 2024 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| 30 September | ||||
| Interest expense on term purchases | 1.844.174 | 1.116.594 | 645.612 | 466.123 |
| Foreign exchange expenses arising from trading activities | 6.395.020 | 13.023.120 | 1.885.269 | 1.336.751 |
| Other expenses | 556.313 | 810.983 | 131.726 | 307.695 |
| 8.795.507 | 14.950.697 | 2.662.607 | 2.110.569 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 1 January - | 1 January - | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September | 30 September 2023 |
30 September 2024 |
30 September 2023 |
|
| 2024 | ||||
| Foreign exchange gains | 5.421.802 | 12.691.028 | 1.414.494 | 1.913.544 |
| Gains on derivative financial instruments | 940.481 | 3.236.305 | 400.855 | 1.191.068 |
| Interest income | 3.776.057 | 2.944.072 | 1.206.310 | 1.042.804 |
| 10.138.340 | 18.871.405 | 3.021.659 | 4.147.416 |
| 1 January - | 1 January - | 1 July - 30 September 2024 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| 30 September | 30 September | |||
| 2024 | 2023 | |||
| Foreign exchange losses | 4.460.710 | 7.324.793 | 1.646.369 | 1.042.982 |
| Losses on derivative financial instruments | 2.972.409 | 5.284.175 | 852.650 | 1.766.023 |
| Interest expense | 8.226.363 | 5.765.209 | 2.949.678 | 1.724.179 |
| Commission and other finance expenses | 1.588.411 | 1.049.939 | 596.660 - |
371.341 - |
| 17.247.893 | 19.424.116 | 6.045.357 | 4.904.525 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Corporation and income taxes | 38.655 | 193.074 |
| Prepaid taxes (-) | (29.064) | (190.642) |
| Current income tax liabilities - net | 9.591 | 2.432 |
| Deferred tax liabilities | (3.322.790) | (1.729.164) |
| Deferred tax liabilities - net | (3.322.790) | (1.729.164) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
Pursuant to paragraph 1 of Article 6 of the Corporate Tax Law No. 5520, corporate tax is calculated on the net corporate income of the taxpayers for an accounting period. Pursuant to paragraph 2 of the same article, by taking into account the provisions of Income Tax Law No. 193 on commercial income, pure corporate income is calculated by adding legally unacceptable expenses to the commercial income and deducting the exempt earnings and discounts from the commercial income.
With the amendment made to Article 32 of the Corporate Tax Law No. 5520 with Article 21 of the Law No. 7456, corporate taxpayers other than banks, companies within the scope of the Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies are subject to corporate tax at the rate of 25% on their net corporate earnings in 2024 and the following taxation periods.
In addition to the corporate tax levied on corporate income, withholding income/corporate tax burden may arise if all or part of the profits of corporations are subject to profit distribution. By full taxpayer corporations;
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
In case of dividend distribution, 10% withholding income/corporate tax is payable. According to the Turkish tax legislation, capitalization of profit is not considered as dividend distribution.
Corporations are exempt from corporate tax on 75% of the gains arising from the sale of participation shares included in their assets for at least two full years and 25% of the gains arising from the sale of immovables included in their assets on 15 July 2023 for the same period. As of 15 July 2023, corporate tax exemption is not applied to the gains arising from the sale of immovables taken into assets.
Under Turkish tax legislation, tax losses carried forward can be carried forward to offset against future taxable income for up to 5 years. However, tax losses cannot be offset against retained earnings.
However, tax authorities may examine the accounting records within five years and the amount of tax payable may change if incorrect transactions are detected.
Earnings from the Company's investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or completely until the investment contribution amount is reached.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized in respect of deductible temporary differences, tax losses and tax advantages arising from investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
For the periods 30 September 2024 and 2023, tax expenses recognized in the statement of comprehensive income are as follows;
| 1 January - | 1 January - | ||
|---|---|---|---|
| 30 September 2024 | 30 September 2023 | ||
| Current period tax expense | (30.034) | (434.473) | |
| Deferred tax expense | (1.966.907) | (2.977.138) | |
| Total tax expense | (1.996.941) | (3.411.611) |
Due to modernization, plant extension and investments incentive documents in Manisa Organized Industrial Zone, the Group has reduced rate of corporate tax advantage.
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between their financial statements prepared in accordance with CMB Communiqué II, No. 14.1 and their statutory financial statements. These temporary differences usually result from the recognition of revenue and expenses in different reporting periods for the Communiqué and tax purposes.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
The breakdown of cumulative temporary differences and the resulting deferred tax assets and liabilities provided using principal tax rate as of the balance sheet dates is as follows:
| Cumulative | |||||
|---|---|---|---|---|---|
| temporary differences | Deferred tax | ||||
| 30 September 31 December |
30 September | 31 December | |||
| 2024 | 2023 | 2024 | 2023 | ||
| Deferred tax assets / (liabilities) | |||||
| Employment termination benefits | (1.767.401) | (2.147.753) | 441.850 | 536.938 | |
| Investment incentive | - | - | 859.044 | 1.007.787 | |
| Warranty provision | (2.209.671) | (2.091.477) | 552.418 | 522.869 | |
| Provision for doubtful receivables | (157.492) | (171.625) | 39.373 | 42.906 | |
| Net difference between book values and tax bases of | |||||
| property, plant and equipment and intangible asset | 28.339.910 | 24.428.324 | (5.927.471) | (4.642.132) | |
| Net difference between book values and tax bases of | |||||
| inventories | 1.751.416 | 2.435.264 | (437.854) | (608.816) | |
| Provision for derivative instruments | (181.074) | (596.772) | 45.269 | 149.194 | |
| R&D incentives | - | - | 1.312.005 | 1.187.107 | |
| Other | 829.696 | (299.931) | (207.424) | 74.983 | |
| Deferred tax assets / (liabilities) - net | (3.322.790) | (1.729.164) |
The Group's earnings from investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or fully until the investment contribution amount is reached.
Furthermore, financial statements consist of the deferred tax effect of the temporary differences accounted by the adjustments made regarding inflation accounting together with the notification of the Corporate Tax Law dated 30 December 2023 and numbered 32415.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
As of 30 September 2024, the tax advantage amounting to TL 859.044 that the Company will benefit from in the foreseeable future is reflected in the financial statements as deferred tax asset. In line with the precautionary principle of accounting and in line with the budget made by the Company, the tax advantage arising from the investment incentives that the Company expects to benefit from in the coming year has been recognized as deferred tax asset in the financial statements. However, the tax advantage amounting to TL 4.701.752 that the Company is entitled to use has not been recognized in deferred tax assets in accordance with the precautionary principle of accounting.
Total tax advantage arising from investment incentive certificate used in the current period is TL 55.232.
| The Company assesses the recoverability of deferred tax assets related to investment incentives based on | ||
|---|---|---|
| business models that include estimates of taxable profit. These business models include forward-looking management estimates such as sales volumes, selling prices and exchange rate expectations. As a result of |
||
| the sensitivity analyses on the forward-looking use of investment incentives, it has been concluded that a 10% | ||
| increase/decrease in the related estimates has no impact on the recoverability of the related deferred tax | ||
| assets. | ||
| The movement of net deferred tax assets and liabilities is as follows: | ||
| 1 January - | 1 January - | |
| 30 September 2024 | 30 September 2023 | |
| Opening balance, 1 January | (1.729.164) | (22.173) |
| Tax expense recognized in income statement | (1.966.907) | (2.977.138) |
| Recognized in other comprehensive income | (41.180) | (150.378) |
| Currency translation differences | 414.461 | 245.959 |
| Deferred tax liabilities | ||
| at the end of the period, net | (3.322.790) | (2.903.730) |
| NOTE 25 – (LOSS) / EARNINGS PER SHARE | ||
| 1 January - | 1 January - | |
| 30 September | 30 September | |
| 2024 | 2023 | |
| Net income / (loss) attributable to equity holders | ||
| of the parent | (4.310.594) | (1.644.108) |
| Weighted number of ordinary shares with a Kr 1 of par | ||
| value (hundred shares) | 33.545.600 | 33.545.600 |
| Earnings per share | (0,1285) | (0,0490) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Fair Value | Fair Value | ||||
| Contract | Assets / | Contract | Assets / | ||
| amount | (Liabilities) | amount | (Liabilities) | ||
| Derivative financial instruments: | |||||
| Held for trading | |||||
| Forward foreign currency transactions | 8.480.351 | 68.026 | 12.426.709 | 189.304 | |
| Cash flow hedge | |||||
| Forward foreign currency transactions | 247.191 | 316 | 10.462.800 | 64.899 | |
| Derivative financial liabilities: | |||||
| Held for trading | |||||
| Forward foreign currency transactions | 9.475.540 | (66.877) | 13.960.765 | (219.072) | |
| Cash flow hedge | |||||
| Forward foreign currency transactions | 9.717.708 | (182.539) | 23.976.822 | (631.903) | |
| 27.920.790 | (181.074) | 60.827.096 | (596.772) |
The Group is exposed to exchange rate risk due to its foreign currency denominated transactions. The main principle of foreign currency risk management is to maintain foreign exchange position at the level that minimizes the impact of foreign exchange fluctuations.
Derivative instruments are used in foreign currency risk management where necessary. In this respect the Group mainly prefers using foreign exchange forward contracts.
| 64 | ||||
|---|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ | ||||
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD | ||||
| 1 JANUARY – 30 SEPTEMBER 2024 | ||||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September | ||||
| 2024 unless otherwise stated.) | ||||
| NOTE 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd) | ||||
| USD | EUR | Other | ||
| 30 September 2024 | (Thousand) | (Thousand) | (TL Equivalent) | TL Equivalent |
| 1. Trade receivables | 125.064 | 244.330 | 1.063.525 | 14.657.252 |
| 2a. Monetary financial assets (including | ||||
| cash and cash equivalents) | 72.489 | 22.332 | 20.662 | 3.346.503 |
| 2b. Non-monetary financial assets | - | - | - | - |
| 3. Other | 32.575 | 962 | - | 1.148.212 |
| 4. Current assets (1+2+3) | 230.128 | 267.624 | 1.084.187 | 19.151.967 |
| 5. Trade receivables | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - |
| 6b. Non-monetary financial assets | - | - | - | - |
| 7. Other | 1.039.578 | 51 | - | 35.473.388 |
| 8. Non-current assets (5+6+7) | 1.039.578 | 51 | - | 35.473.388 |
| 9. Total assets (4+8) | 1.269.706 | 267.675 | 1.084.187 | 54.625.355 |
| 10. Trade payables | 800.714 | 240.203 | 110.399 | 36.666.216 |
| 11. Financial liabilities | 361.413 | 160.035 | - | 18.473.770 |
| 12a. Other monetary liabilities | 2.462 | 1.256 | - | 132.187 |
| 12b. Other non-monetary liabilities | - | - | - | - |
| 13. Current liabilities (10+11+12) | 1.164.589 | 401.494 | 110.399 | 55.272.173 |
| 14. Trade payables | - | 4.541 | - | 173.649 |
| 15. Financial liabilities | 468.845 | 7.509 | - | 16.313.440 |
| 16a. Other monetary liabilities | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - |
| 17. Non-current liabilities (14+15+16) | 468.845 | 12.050 | - | 16.487.089 |
| 18. Total liabilities (13+17) | 1.633.434 | 413.544 | 110.399 | 71.759.262 |
| 19. Off-balance sheet derivative instruments | ||||
| net asset / (liability) position (19a+19b) (*) | (8.335) | (59.759) | 154.938 | (2.450.713) |
| 19a. Hedged total assets | 364.321 | 190.960 | 4.119.511 | 23.839.718 |
| 19b. Hedged total liabilities | (372.656) | (250.719) | (3.964.573) (26.290.431) | |
| 20. Net foreign currency asset/ (liability) | ||||
| position (9-18+19) | (372.063) | (205.628) | 1.128.726 | (19.584.620) |
| 21. Net foreign currency monetary asset/ | ||||
| (liability) position | ||||
| (=1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (363.728) | (145.869) | 973.788 | (17.133.907) |
| 22. Fair value of financial instruments used | ||||
| in foreign currency hedging | - | - | - | (181.074) |
| 23. Export | 324.690 | 1.026.778 | 4.727.281 | 62.509.149 |
| 24. Import | 1.029.070 | 136.832 | 58.866 | 40.467.534 |
(*) The net asset / (liability) positions of derivative instruments in foreign currency are included outside the statement of financial position.
| 65 | |||||
|---|---|---|---|---|---|
| VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ | |||||
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD | |||||
| 1 JANUARY – 30 SEPTEMBER 2024 | |||||
| (Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September | |||||
| 2024 unless otherwise stated.) | |||||
| NOTE 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd) | |||||
| USD | EUR | Other (TL |
TL Equivalent | ||
| (Thousand) | (Thousand) | Equivalent) | (Historic Date) | TL Equivalent | |
| 31 December 2023 | 92.538 | 238.713 | 1.575.155 | 12.075.124 | 16.405.305 |
| 1. Trade receivables 2a. Monetary financial assets (including |
|||||
| cash and cash equivalents) | 27.790 | 8.261 | 2.081 | 1.089.263 | 1.479.876 |
| 2b. Non-monetary financial assets | - | - | - | - | - |
| 3. Other | 68.685 | 893 | - | 2.051.052 | 2.786.567 |
| 4. Current assets (1+2+3) | 189.013 | 247.867 | 1.577.236 | 15.215.439 | 20.671.748 |
| 5. Trade receivables | - | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - | - |
| 6b. Non-monetary financial assets | 18.643 | 3.115 | - | 650.277 | 883.469 |
| 7. Other | 819.838 | 51 | - | 24.136.218 | 32.791.548 |
| 8. Non-current assets (5+6+7) | 838.481 | 3.166 | - | 24.786.495 | 33.675.017 |
| 9. Total assets (4+8) | 1.027.494 | 251.033 | 1.577.236 | 40.001.934 | 54.346.765 |
| 10. Trade payables | 857.466 | 187.826 | 154.204 | 31.571.227 | 42.892.777 |
| 11. Financial liabilities | 345.908 | 118.528 | 599.569 | 14.668.741 | 19.929.001 |
| 12a. Other monetary liabilities | 80 | 1.415 | - | 48.528 | 65.931 |
| 12b. Other non-monetary liabilities | - | - | - | - | - |
| 13. Current liabilities (10+11+12) | 1.203.454 | 307.769 | 753.773 | 46.288.496 | 62.887.708 |
| 14. Trade payables | - | 5.460 | - | 178.174 | 242.068 |
| 15. Financial liabilities | 15.690 | 16.633 | - | 1.005.474 | 1.366.041 |
| 16a. Other monetary liabilities | - | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - | - |
| 17. Non-current liabilities (14+15+16) | 15.690 | 22.093 | - | 1.183.648 | 1.608.109 |
| 18. Total liabilities (13+17) | 1.219.144 | 329.862 | 753.773 | 47.472.144 | 64.495.817 |
| 19. Off-balance sheet derivative instruments | - | - | - | - | - |
| net asset / (liability) position (19a+19b) | 649.071 | (476.750) | 108.175 | 3.692.531 | 5.016.685 |
| 19a. Hedged total assets | 1.068.802 | 227.544 | 5.896.185 | 44.841.898 | 60.922.355 |
| 19b. Hedged total liabilities | (419.731) | (704.294) (5.788.010) | (41.149.367) (55.905.670) | ||
| 20. Net foreign currency asset/ (liability) | |||||
| position (9-18+19) | 457.421 | (555.579) | 931.638 | (3.777.679) | (5.132.367) |
| 21. Net foreign currency monetary asset/ | |||||
| (liability) position | |||||
| (=1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (210.293) | (81.943) | 823.463 | (8.120.487) (11.032.520) | |
| 22. Fair value of financial instruments used | |||||
| in foreign currency hedging | - | - | - | (439.254) | (596.772) |
| 23. Export | 541.555 | 1.533.534 | 9.851.005 | 76.246.912 | 103.589.314 |
| 24. Import | 1.404.462 | 207.252 | 542.079 | 39.158.737 | 53.201.193 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
As of 30 September 2024 and 31 December 2023 sensitivity analysis of foreign exchange rates is presented in below tables. Secured portions include impact of off-balance sheet derivative instruments.
| Gain / Loss | Equity | ||||
|---|---|---|---|---|---|
| Foreign | Foreign | Foreign | Foreign | ||
| exchange | exchange | exchange | exchange | ||
| 30 September 2024 | appreciation | depreciation | appreciation | depreciation | |
| +/- 10% fluctuation of USD rate: | |||||
| USD net asset / liability | (1.251.121) | 1.251.121 | (1.251.121) | 1.251.121 | |
| Secured portion from USD risk (-) | (666.704) | 666.704 | (740.143) | 740.143 | |
| USD net effect | (1.917.825) | 1.917.825 | (1.991.264) | 1.991.264 | |
| +/- 10% fluctuation of EUR rate: | |||||
| EUR net asset / liability | (559.647) | 559.647 | (559.647) | 559.647 | |
| Secured portion from EUR risk (-) | 333.753 | (333.753) | 219.130 | (219.130) | |
| EUR net effect | (225.894) | 225.894 | (340.517) | 340.517 | |
| +/- 10% fluctuation of other currency rates: | |||||
| Other currencies net asset / liability | 97.379 | (97.379) | 97.379 | (97.379) | |
| Secured portion from other currency risk (-) | 107.711 | (107.711) | 304.916 | (304.916) | |
| Other currency net effect | 205.090 | (205.090) | 402.295 | (402.295) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 September 2024 unless otherwise stated.)
| Gain / Loss | Equity | ||||
|---|---|---|---|---|---|
| Foreign | Foreign | Foreign | Foreign | ||
| exchange | exchange | exchange | exchange | ||
| 31 December 2023 | appreciation | depreciation | appreciation | depreciation | |
| +/- 10% fluctuation of USD rate: | |||||
| USD net asset / liability | (775.294) | 775.294 | (775.294) | 775.294 | |
| Secured portion from USD risk (-) | 7.069 | (7.069) | 1.007.891 | (1.007.891) | |
| USD net effect | (768.225) | 768.225 | 232.597 | (232.597) | |
| +/- 10% fluctuation of EUR rate: | |||||
| EUR net asset / liability | (351.487) | 351.487 | (351.487) | 351.487 | |
| Secured portion from EUR risk (-) | 215.496 | (215.496) | (1.357.055) | 1.357.055 | |
| EUR net effect | (135.991) | 135.991 | (1.708.542) | 1.708.542 | |
| +/- 10% fluctuation of other currency rates: | |||||
| Other currencies net asset / liability | 111.876 | (111.876) | 111.876 | (111.876) | |
| Secured portion from other currency risk (-) | 271.540 | (271.540) | 827.347 | (827.347) | |
| Other currency net effect | 383.416 | (383.416) | 939.223 | (939.223) |
The CMB application regarding the transfer of Vestel Elektronik Sanayi ve Ticaret AŞ (Vestel Elektronik) Automotive Business Line to Vestel Mobilite Sanayi ve Tic. AŞ through partial division through a partnership model was made on 23 October 2024.
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