ZORLU ENERJİ ELEKTRİK ÜRETİM A.Ş.

Quarterly Report • Aug 29, 2024

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

	Reviewed	Audited
ASSETS	30 June 2024	31 December 2023
Current assets:
Cash and cash equivalents	1,237,205	2,412,066
Financial assets	402,231	497,777
Trade receivables	6,144,026	7,468,156
- Trade receivables from related parties	919,781	1,539,598
- Trade receivables from third parties	5,224,245	5,928,558
Other receivables	2,398,364	1,612,854
- Other receivables from related parties	1,880,406	1,430,687
- Other receivables from third parties	517,958	182,167
Receivables from service concession arrangements	2,442,635	2,161,534
Inventories	807,722	662,792
Prepaid expenses	94,427	130,812
- Prepaid expenses to third parties	94,427	130,812
Other current assets	815,261	1,066,276
- Other current assets from third parties	815,261	1,066,276
Total	14,341,871	16,012,267
Assets held for sale	-	8,718,999
Total current assets	14,341,871	24,731,266
Non-current assets:
Financial assets	2,436	2,436
- Other financial assets	2,436	2,436
Trade receivables	385,139	465,397
- Trade receivables from third parties	385,139	465,397
Other receivables	10,986,532	15,411,464
- Other receivables from related parties	10,983,955	15,017,052
- Other receivables from third parties	2,577	394,412
Contract assets	800,107	375,127
Other contract assets -	800,107	375,127
Receivables from service concession arrangements	7,712,405	9,214,824
Equity accounted investees	4,909,134	5,571,318
Property, plant and equipment	49,875,422	50,426,372
Right of use assets	782,597	753,696
Intangible assets	9,317,578	9,556,129
Derivative financial instruments	650,730	428,659
Prepaid expenses	11,970	13,816
- Prepaid expenses to third parties	11,970	13,816
Deferred tax assets	6,950,698	5,922,892
Other non-current assets	3,095	3,861
- Other non-current assets related to third parties	3,095	3,861
Total non-current assets	92,387,843	98,145,991
Total assets	106,729,714	122,877,257

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

	Reviewed	Audited
LIABILITIES	30 June 2024	31 December 2023
Current liabilities:
Short term borrowings	2,082,961	2,067,056
Short term borrowings from third parties	2,082,961	2,067,056
- Bank borrowings	1,444,889	1,528,990
- Issued debt instruments	638,072	538,066
Short term portions of long-term borrowings	12,768,134	19,017,754
Short term portions of long-term borrowings
from third parties	12,768,134	19,017,754
- Bank borrowings	8,075,500	14,285,104
- Issued debt instruments	4,584,599	4,576,750
- Lease liabilities	108,035	155,900
Trade payables	4,373,566	4,840,098
- Trade payables due to related parties	271,853	291,903
- Trade payables due to third parties	4,101,713	4,548,195
Payables related to employee benefits	91,611	61,034
Other payables	1,895,108	1,528,495
- Other payables due to related parties	40,623	45,382
- Other payables due to third parties	1,854,485	1,483,113
Deferred income	2,553,964	2,347,168
- Deferred income from third parties	122,672	-
- Deferred income from related parties	2,431,292	2,347,168
Taxes on income	249,050	132,444
Short term provisions	110,178	92,017
Provisions for employee benefits -	85,993	65,380
Other short term provisions -	24,185	26,637
Other current liabilities	395,731	531,856
- Other current liabilities due to third parties	395,731	531,856
Total	24,520,303	30,617,922
Liabilities related to asset held for sale	-	8,747,159
Total current liabilities	24,520,303	39,365,081
Non-current liabilities:
Long term borrowings	24,472,993	31,920,235
Long term borrowings from third parties	24,472,993	31,920,235
- Bank borrowings	17,336,182	22,598,072
- Lease liabilities	304,106	370,063
- Issued debt instruments	6,832,705	8,952,100
Other payables	13,593	13,929
- Other payables due to related parties	13,593	13,929
Long term liabilities	395,817	357,262
- Provisions for employment termination benefits	395,817	357,262
Deferred tax liabilities	3,353,503	3,232,773
Total non-current liabilities	28,235,906	35,524,199
Total liabilities	52,756,209	74,889,280

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

	Reviewed	Audited
EQUITY	30 June 2024	31 December 2023
Equity attributable to owners of the Company	53,972,858	47,900,216
Share capital	5,000,000	5,000,000
Adjustment to share capital	21,144,694	21,144,694
Share premium	40,591	40,591
Other comprehensive income/(expenses) not to
be reclassified to profit or (loss)	6,887,607	6,577,223
Revaluation and measurement losses/(gains)	6,887,607	6,577,223
- Revaluation of property, plant and equipment	7,220,007	6,898,814
- Actuarial losses	(332,400)	(321,591)
Other comprehensive expenses that are or may
be reclassified to profit or (loss)	(28,125,002)	(30,776,890)
- Foreign currency translation differences	2,921,113	2,402,740
- Hedge reserves	(31,046,115)	(33,179,630)
Legal reserves	125,513	125,513
Retained earnings	46,400,244	32,166,409
Net profit for the period	2,499,211	13,622,676
Non-controlling interests	647	87,761
Total equity	53,973,505	47,987,977
Total liabilities and equity	106,729,714	122,877,257

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024

(Amounts expressed in thousands of Turkish Lira (TRL) in terms of the purchasing power of the TRL at 30 June 2024, otherwise indicated.)

		Not		Not
	Reviewed	Reviewed	Reviewed	Reviewed
	1 January -	1 April -	1 January -	1 April -
	30 June	30 June	30 June	30 June
	2024	2024	2023	2023
Revenue	10,880,120	5,224,011	18,899,295	9,260,660
Cost of sales (-)	(9,682,004)	(4,678,753)	(15,134,622)	(7,326,483)
Gross profit	1,198,116	545,258	3,764,673	1,934,177
General and administrative expenses (-)	(873,079)	(417,685)	(868,953)	(460,037)
Marketing and selling expenses (-)	(110,285)	(55,827)	(110,062)	(56,790)
Other operating income	1,477,642	666,630	1,924,052	1,305,708
Other operating expense (-)	(1,282,142)	(609,443)	(1,347,932)	(1,001,494)
Operating profit	410,252	128,933	3,361,778	1,721,564
Income from investment activities	4,007,577	-	5,278,514	2,171,595
Shares of gains/(losses) on equity
accounted investees	207,558	217,688	67,119	(8,180)
Operating profit before financial income/(expenses)	4,625,387	346,621	8,707,411	3,884,979
Gains on net monetary position	741,382	205,913	3,762,285	790,664
Finance income	2,792,090	721,227	7,738,133	6,759,273
Finance expenses (-)	(9,051,986)	(3,542,262)	(15,963,968)	(11,927,979)
Profit/(loss) before tax from continued operations	(893,127)	(2,268,501)	4,243,861	(493,063)
Tax income/(expense) from continued operations	1,593,937	891,523	(52,630)	855,879
Current income tax expense (-)	(302,575)	(112,580)	(435,931)	(215,798)
Deferred tax income	1,896,512	1,004,103	383,301	1,071,677
PROFIT/(LOSS) FROM CONTINUED OPERATIONS	700,810	(1,376,978)	4,191,231	362,816
PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS	1,798,036	64,893	(6,848)	(602,626)
NET PROFIT / (LOSS) FOR THE PERIOD	2,498,846	(1,312,085)	4,184,383	(239,810)
Income/(loss) attributable to:
Non-controlling interest	(365)	(179)	31	4
Equity holders of the parent	2,499,211	(1,311,906)	4,184,352	(239,814)

Profit/(loss) per share (TL)

From continued operations	0.14	(0.28)	1.68	0.15
From discontinued operations	0.36	0.01	(0.00)	(0.24)

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024

		Not		Not
	Reviewed	reviewed	Reviewed	reviewed
	1 January -	1 April -	1 January -	1 April -
	30 June	30 June	30 June	30 June
	2024	2024	2023	2023
Net Profit/(loss) for the period	2,498,846	(1,312,085)	4,184,383	(239,810)
Items that will not to be reclassified to profit or loss	834,794	1,352,857	(106,644)	1,685
Gains on revaluation of property, plant and equipment	1,193,349	1,778,938	-	-
Changes in actuarial losses on employment benefit obligations	(80,291)	(14,169)	(133,305)	2,107
Items that will not to be reclassified to profit or loss
Taxes on other comprehensive income	(278,264)	(411,912)	26,661	(422)
Tangible assets revaluation increases/(decreases), tax effect	(298,337)	(415,454)	-	-
Changes in actuarial losses on employment benefit
obligations, tax effect	20,073	3,542	26,661	(422)
Items that are or may be reclassified to profit or loss	2,651,888	888,122	(1,070,196)	(2,252,887)
Foreign currency translation differences -	518,373	(545,603)	1,256,106	1,417,255
Losses from foreign currency translation differences	518,373	(545,603)	1,256,106	1,417,255
Hedge reserves -	2,844,687	1,911,634	(2,907,878)	(4,587,678)
Items that are or may be reclassified to profit or loss
Taxes on other comprehensive income	(711,172)	(477,909)	581,576	917,536
Hedge reserves, tax effect	(711,172)	(477,909)	581,576	917,536
Other comprehensive income / (loss)	3,486,682	2,240,979	(1,176,840)	(2,251,202)
Total comprehensive income / (loss)	5,985,528	928,894	3,007,543	(2,491,012)
Total comprehensive income
attributable to:
Non-controlling interests	(365)	(179)	31	4
Equity holders of the parent	5,985,893	929,073	3,007,512	(2,491,016)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024

						Items that will not be		Items that are or may be
						reclassified to profit or loss		reclassified to profit or loss
	Share capital	Adjustments to share capital	Additional capital contribution of shareholders	Share premium	Revaluation of property plant and equipment	Actuarial losses	Foreign currency translation differences	Hedge reserves	Legal reserves	Retained earnings	Net profit for the period	Equity of the parent company	Non controlling interests	Total equity
Balance at 1 January 2023	2,500,000	20,052,928	-	12,424	21,549,282	(175,351)	2,721,056	(33,808,418)	125,513	18,332,600	11,841,683	43,151,717	(92,664)	43,059,053
Acquisition or disposal of subsidiary	-	-	-	-	-	432	10,807	-	-	(11,239)	-	-	-	-
Shareholders' additional capital contributions Transactions with the non	-	-	3,635,476	-	-	-	-	-	-	-	-	3,635,476	-	3,635,476
controlling parties	-	-	-	-	-	-	-	-	-	-	-	-	219,425	219,425
Transfers	-	-	-	-	(996,665)	-	-	-	-	12,838,348	(11,841,683)	-	-	-
Total comprehensive income	-	-	-		- -	(106,644)	1,256,106	(2,326,302)	-	-	4,184,352	3,007,512	31	3,007,543
-Net profit for the period	-	-	-	-	-	-	-	-	-	-	4,184,352	4,184,352	31	4,184,383
-Total comprehensive loss	-	-	-	-	-	(106,644)	1,256,106	(2,326,302)	-	-	-	(1,176,840)	-	(1,176,840)
30 June 2023	2,500,000	20,052,928	3,635,476	12,424	20,552,617	(281,563)	3,987,969	(36,134,720)	125,513	31,159,709	4,184,352	49,794,705	126,792	49,921,497
Balance at 1 January 2024	5,000,000	21,144,694	-	40,591	6,898,814	(321,591)	2,402,740	(33,179,630)	125,513	32,166,409	13,622,676	47,900,216	87,761	47,987,977
Acquisition or disposal of subsidiary	-	-	-	-	-	49,409	-	-	-	37,340	-	86,749	(86,749)	-
Transfers	-	-	-	-	(573,819)	-	-	-	-	14,196,495	(13,622,676)	-	-	-
Total comprehensive income	-	-	-	-	895,012	(60,218)	518,373	2,133,515	-	-	2,499,211	5,985,893	(365)	5,985,528
-Net profit for the period	-	-	-	-	-	-	-	-	-	-	2,499,211	2,499,211	(365)	2,498,846
-Total comprehensive income	-	-	-	-	895,012	(60,218)	518,373	2,133,515	-	-	-	3,486,682	-	3,486,682
30 June 2024	5,000,000	21,144,694	-	40,591	7,220,007	(332,400)	2,921,113	(31,046,115)	125,513	46,400,244	2,499,211	53,972,858	647	53,973,505

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024

(Amounts expressed in thousands of Turkish Lira ("TL") with the purchasing power of 30 June 2024 unless otherwise stated.)

	Reviewed	Reviewed
	1 January-	1 January
	30 June 2024	30 June 2023
CASH FLOWS FROM OPERATING ACTIVITIES:	4,490,345	7,068,144
Net profit for the period	2,498,846	4,184,383
-Net profit for the period from continued operations	700,810	4,191,231
-Net profit/(loss) for the period from discontinued operations	1,798,036	(6,848)
Adjustments related to period net profit/(loss) reconciliation	(4,535,977)	(1,847,122)
Adjustments related to depreciation and amortization	2,061,787	2,527,377
Adjustments for provisions	37,261	31,492
-Adjustments for provisions related with employee benefits	19,100	39,302
-Adjustments for (reversal of) other provisions	18,161	(7,810)
Adjustments related to interest (income) and expense	3,645,727	3,530,520
-Adjustments related to interest (income)	(1,501,522)	(1,241,881)
-Adjustments related to interest expense	5,147,249	4,772,401
Adjustments related to unrealized foreign exchange losses / (gains)	4,613,558	8,288,103
Adjustments related to fair value gains	(344,593)	(1,851,932)
-Adjustments related to fair value losses (gains)
on derivative financial instruments	(344,593)	(358,066)
-Other adjustments related to fair value losses (gains)	-	(1,493,866)
Adjustments for undistributed profits of investments
Accounted for using equity method	(207,558)	(67,119)
-Adjustments for undistributed profits of joint ventures	(207,558)	(67,119)
Adjustments related to tax (income) expense	(1,593,937)	52,631
Adjustments related to gains from disposals of fixed assets	(2,363)	(7,189)
-Adjustments related to gains resulting from disposal
of tangible assets	(2,363)	(7,189)
Adjustments related to monetary gains and losses	(8,812,165)	(10,745,481)
Adjustments related to gains from disposals
of subsidiaries or joint operations	(4,005,214)	(3,777,459)
Other adjustment to reconcile profit (loss)	71,520	171,935
Net cash generated from operating activities
before changes in working capital	6,749,153	5,006,321
Changes in trade receivables	1,938,443	3,245,790
-Changes in trade receivables from related parties	618,732	11,314
-Changes in trade receivables from third parties	1,319,711	3,234,476
Changes in other receivables	4,783,429	3,675,122
-Changes in other receivables from related parties	4,728,590	3,202,917
-Changes in other receivables from third parties	54,839	472,205
Changes in receivables from service concession arrangement	1,221,318	993,962
Changes in inventories	(144,930)	(389,662)
Changes in trade payables	(1,389,562)	(2,594,345)
-Changes in trade payables to related parties	(20,050)	(145,908)
Changes in trade payables to third parties -	(1,369,512)	(2,448,437)
Changes in other payables	371,372	114,749
Changes in other payables to third parties -	371,372	114,749
Changes in other liabilities	187,267	(116,010)
Changes in other assets -	292,815	(441,176)
Changes in other liabilities -	(105,548)	325,166
Changes in assets arising from customer contracts	(424,980)	(290,037)
Changes in other contract assets -	(424,980)	(290,037)
Changes in deferred income	206,796	366,752
Net cash generated from operating activities	4,712,022	7,343,582
Payments related with provisions for employee benefits	(32,904)	(42,943)
Income taxes paid	(188,773)	(232,495)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024

(Amounts expressed in thousands of Turkish Lira ("TL") with the purchasing power of 30 June 2024 unless otherwise stated.)

	Reviewed	Reviewed
	1 January-	1 January
	30 June 2024	30 June 2023
CASH FLOWS FROM INVESTING ACTIVITIES	3,788,923	1,510,534
Cash inflows from losing control of subsidiaries	3,991,320	3,930,518
Cash outflows related to capital advance payments of subsidiaries and/or
joint ventures	-	(2,088,526)
Cash inflows from the sale
of tangible and intangible assets	9,223	69,718
-Cash inflows from the sale of property, plant and equipment	9,223	69,718
Cash outflows from purchases
of property, plant and equipment and intangible assets	(341,488)	(401,176)
-Cash outflows from the sale of property, plant and equipment	(324,439)	(399,091)
-Cash outflows from the sale of intangible assets	(17,049)	(2,085)
Dividend received	129,868	-
CASH FLOW FROM FINANCING ACTIVITIES	(8,942,647)	(8,622,462)
Cash inflows from issuance
of shares and other equity instruments	-	1,598,556
Cash inflows from borrowing	2,030,511	2,577,369
-Cash inflows from bank loans	65,376	74,933
-Cash inflows from issued debt instruments	1,965,135	2,502,436
Cash outflows related to debt payments	(7,790,016)	(9,533,514)
-Cash outflows related to loan repayments	(6,852,852)	(7,412,803)
Cash outflows from repayments of issued debt instruments -	(937,164)	(2,120,711)
Decrease in other payables to related parties	(5,095)	(407,657)
Payment of lease liabilities	(47,672)	(45,879)
Interest paid	(4,234,232)	(3,637,278)
Interest received	751,506	341,840
Cash inflows from derivative instruments	344,593	358,067
Other cash inflows	7,758	126,034
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
BEFORE EFFECT OF CURRENCY TRANSLATION DIFFERENCES	(663,379)	(43,784)
Effect of currency translation differences in cash and cash
equivalents	(43,922)	(350,242)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(707,301)	(394,026)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	2,400,958	4,714,103
INFLATION EFFECT ON CASH AND CASH EQUIVALENTS	(476,786)	(778,272)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	1,216,871	3,541,805