ZORLU ENERJİ ELEKTRİK ÜRETİM A.Ş.

Quarterly Report • Jul 2, 2024

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Audited
	31 March	31 December
ASSETS	2024	2023
Current assets:
Cash and cash equivalents	1.011.248	2.225.053
Financial investments	402.938	459.183
Trade receivables	7.395.211	6.889.132
Trade receivables from related parties -	1.819.930	1.420.229
Trade receivables from third parties -	5.575.281	5.468.903
Other receivables	3.243.152	1.487.807
Other receivables from related parties -	2.752.658	1.319.763
Other receivables from third parties -	490.494	168.044
Receivables from service concession arrangements	1.993.941	1.993.946
Inventories	691.238	611.407
Prepaid expenses	93.183	120.670
	93.183	120.670
-Prepaid expenses to third parties
Other current assets	781.483	983.605
Other current assets from third parties -	781.483	983.605
Assets held for sale	-	8.042.994
Total current assets	15.612.394	22.813.797
Non-current assets:
Financial investments	2.247	2.247
- Other financial investments	2.247	2.247
Trade receivables	370.765	429.314
- Trade receivables from third parties	370.765	429.314
Other receivables	10.107.118	14.216.576
- Other receivables from related parties	10.106.962	13.852.744
- Other receivables from third parties	156	363.832
Contract assets	486.008	346.042
Other contract assets -	486.008	346.042
Receivables from service concession arrangements	8.001.896	8.500.377
Equity accounted investees	4.851.707	5.139.360
Tangible assets	44.921.852	46.516.697
Right of use assets	668.806	695.260
Intangible assets	8.704.766	8.815.220
Derivative financial assets	649.123	395.424
Prepaid expenses	11.076	12.744
Prepaid expenses to third parties -	11.076	12.744
Deferred tax assets	6.110.765	5.463.676
Other non-current assets	3.095	3.561
- Other non-current assets to third parties	3.095	3.561
Total non-current assets	84.889.224	90.536.498
Total assets	100.501.618	113.350.295

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Audited
	31 March	31 December
LIABILITIES	2024	2023
Current liabilities:
Short-term borrowings	1.808.496	1.906.793
Short-term borrowings from third parties	1.808.496	1.906.793
Bank borrowings -	1.257.293	1.410.444
Issued debt instruments -	551.203	496.349
Short-term portion of long-term borrowings	12.962.590	17.543.262
Short-term portion of long-term borrowings from third parties	12.962.590	17.543.262
Bank borrowings -	8.627.278	13.177.546
Lease liabilities -	96.517	143.812
Issued debt instruments -	4.238.795	4.221.904
Trade payables	3.562.210	4.464.834
Trade payables to related parties -	321.284	269.271
Trade payables to third parties -	3.240.926	4.195.563
Payables related to employee benefits	54.847	56.302
Other payables	1.682.856	1.409.988
Other payables to related parties -	50.305	41.864
Other payables to third parties -	1.632.551	1.368.124
Deferred income	2.340.993	2.165.187
Deferred income from related parties -	163.984	-
Deferred income from third parties -	2.177.009	2.165.187
Current tax liabilities	202.919	122.176
Short-term provisions	87.550	84.883
Short-term provisions for employee benefits -	70.322	60.311
Other short-term provisions -	17.228	24.572
Other current liabilities	323.814	490.620
Other current liabilities to third parties -	323.814	490.620
Liabilities related to assets held for sale	-	8.068.971
Total current liabilities	23.026.275	36.313.016
Long-term borrowings	25.264.300	29.445.384
Long-term borrowings from third parties	25.264.300	29.445.384
Bank borrowings -	16.865.681	20.845.990
Lease liabilities -	306.801	341.371
Issued debt instruments -	8.091.818	8.258.023
Other payables	12.842	12.849
Other payables to related parties -	12.842	12.849
Long-term provisions	368.376	329.563
Long-term provisions for employee benefits -	368.376	329.563
Deferred tax liabilities	2.897.890	2.982.128
Total non-current liabilities	28.543.408	32.769.924
Total liabilities	51.569.683	69.082.940

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Audited
	31 March	31 December
	2024	2023
EQUITY
Equity attributable to owners of the Company	48.931.170	44.186.399
Paid-in capital	5.000.000	5.000.000
Adjustments to share capital	19.117.634	19.117.634
Share premium	37.444	37.444
Other comprehensive income not to be reclassified in	5.195.905	6.067.276
profit or loss
Gains on revaluation and remeasurement -	5.195.905	6.067.276
Increases on revaluation of property, plant and equipment	5.492.730	6.363.933
Actuarial losses	(296.825)	(296.657)
Other comprehensive expense to be reclassified in profit
or loss	(26.763.670)	(28.390.686)
Currency translation difference -	3.197.933	2.216.450
Losses on hedging transactions -
Losses on cash flow hedges	(29.961.603)	(30.607.136)
Restricted reserves appropriated from profits	115.782	115.782
Legal reserves -	115.782	115.782
Accumulated income	42.712.443	29.672.471
Current period profit	3.515.632	12.566.478
Non-controlling interests	765	80.956
Total equity	48.931.935	44.267.355
Total liabilities and equity	100.501.618	113.350.295

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Unaudited
	1 January-	1 January
	31 March	31 March
	2024	2023
PROFIT/(LOSS)
Revenue	5.217.578	8.891.329
Cost of sales (-)	(4.615.337)	(7.202.756)
GROSS PROFIT	602.241	1.688.573
General administrative expenses (-)	(420.086)	(377.212)
Marketing expenses (-)	(50.236)	(49.142)
Other income from operating activities	748.132	570.402
Other expenses from operating activities (-)	(620.543)	(319.578)
Profit from operating activities	259.508	1.513.043
Income from investment activities	3.696.860	2.866.032
Share of gain on equity accounted investees	(9.345)	69.461
PROFIT BEFORE
FINANCE INCOME/(EXPENSE)	3.947.023	4.448.536
Monetary gain	493.953	2.741.224
Finance income	1.910.304	902.967
Finance expense (-)	(5.082.542)	(3.723.069)
PROFIT BEFORE TAX FROM CONTINUING
OPERATIONS	1.268.738	4.369.658
Tax income/ (expense) from continuing operations	647.954	(838.071)
Current period tax expense -	(175.264)	(203.066)
Deferred tax income/(expense) -	823.218	(635.005)
PROFIT FROM CONTINUING
OPERATIONS	1.916.692	3.531.587
PROFIT FROM DISCONTINUED OPERATIONS	1.598.768	549.586
PROFIT FOR THE PERIOD	3.515.460	4.081.173
Profit attributable to:
Non-controlling interests	(172)	25
Equity holders of the Parent	3.515.632	4.081.148
Income per share (TL)
- Income per share from continuing operations	0,38	1,41
- Income per share from discontinued operations	0,32	0,22

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

(Amounts expressed in thousands of Turkish Lira ("TL") as adjusted for the effects of inflation in TL units current at 31 March 2024 pursuant to IAS 29.)

	Unaudited 1 January - 31 March 2024	Unaudited 1 January - 31 March 2023
OTHER COMPREHENSIVE INCOME/(LOSS)
CURRENT PERIOD NET PROFIT	3.515.460	4.081.173
Other comprehensive loss not to be
reclassified to profit or loss	(477.896)	(99.930)
Loss on revaluation of property, -
plant and equipment	(540.187)	-
-Actuarial losses	(60.995)	(124.913)
Taxes relating to components of other comprehensive income/(loss) not to be
reclassified to profit or loss	123.286	24.983
Taxes relating to losses on revaluation -
of property, plant and equipment	108.037	-
Taxes relating to actuarial losses -	15.249	24.983
Other comprehensive loss to be
reclassified to profit or loss	1.627.016	1.090.994
- Exchange differences on translation of foreign operations , net of tax	981.483	(148.655)
Losses on exchange differences on translation of foreign operations , net of tax	981.483	(148.655)
- Other comprehensive loss relating to cash flow hedges	860.711	1.549.561
Taxes relating to components of other comprehensive loss to be
reclassified to profit or loss	(215.178)	(309.912)
-Taxes relating to cash flow hedges	(215.178)	(309.912)
OTHER COMPREHENSIVE INCOME	1.149.120	991.064
TOTAL COMPREHENSIVE INCOME	4.664.580	5.072.237

Total comprehensive income attributable to

Non-controlling interests	(172)	25
Equity holders of the Parent	4.664.752	5.072.212

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

				Items not to be		Items to be
				reclassified to		reclassified to
				profit or loss		profit or loss
				Revaluation of		Currency						Non
Prior period		Adjustment to	Share	Property, Plant	Actuarial	Translation		Legal	Accumulated		Equity Holders	Controlling
1 January-31 March 2023	Paid-in Capital	Share Capital	Premium	and Equipment	Losses	Adjustment	Hedge Reserves	Reserves	Income/(Losses)	Net Profit	of the Parent	Interest	Equity
Opening balances	2.500.000	18.304.346	11.461	19.878.515	(161.756)	2.510.086	(31.187.172)	115.782	16.911.230	10.923.569	39.806.061	(85.479)	39.720.582
Disposal of subsidiary	-	-	-	-	432	10.807	-	-	(11.239)	-	-	-	-
Transactions with non
controlling shareholders	-	-	-	-	-	-	-	-	-	-	-	183.524	183.524
Transfers	-	-	-	(499.837)	-	-	-	-	11.423.406	(10.923.569)	-	-	-
Total comprehensive income	-	-	-	-	(99.930)	(148.655)	1.239.649	-	-	4.081.148	5.072.212	25	5.072.237
Profit of the period -	-	-	-	-	-	-	-	-	-	4.081.148	4.081.148	25	4.081.173
Other comprehensive income -	-	-	-	-	(99.930)	(148.655)	1.239.649	-	-	-	991.064	-	991.064
Ending balances	2.500.000	18.304.346	11.461	19.378.678	(261.254)	2.372.238	(29.947.523)	115.782	28.323.397	4.081.148	44.878.273	98.070	44.976.343
Current period
1 January – 31 March 2024
Opening balances	5.000.000	19.117.634	37.444	6.363.933	(296.657)	2.216.450	(30.607.136)	115.782	29.672.471	12.566.478	44.186.399	80.956	44.267.355
Disposal of subsidiary	-	-	-	-	45.578	-	-	-	34.441	-	80.019	(80.019)	-
Transfers	-	-	-	(439.053)	-	-	-	-	13.005.531	(12.566.478)	-	-	-
Total comprehensive income	-	-	-	(432.150)	(45.746)	981.483	645.533	-	-	3.515.632	4.664.752	(172)	4.664.580
Profit of the period -	-	-	-	-	-	-	-	-		3.515.632	3.515.632	(172)	3.515.460
Other comprehensive income -	-	-	-	(432.150)	(45.746)	981.483	645.533	-	-	-	1.149.120	-	1.149.120
Ending balances	5.000.000	19.117.634	37.444	5.492.730	(296.825)	3.197.933	(29.961.603)	115.782	42.712.443	3.515.632	48.931.170	765	48.931.935

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Unaudited
	1 January-	1 January
	31 March 2024	31 March 2023
CASH FLOWS FROM OPERATING ACTIVITIES	2.296.743	6.757.569
Profit	3.515.460	4.081.173
Profit from continuing operations -	1.916.692	3.531.587
Profit from discontinued operations -	1.598.768	549.586
Adjustments for period profit	(3.955.074)	(44.205)
Adjustments for depreciation and amortisation expense	1.168.620	1.240.991
Adjustments for provisions	16.347	8.205
Adjustments for provisions relating with employee benefits -	13.680	14.532
Adjustments for (reversal of) other provisions -	2.667	(6.327)
Adjustments for interest (income)/expenses	1.711.968	863.388
- Adjustments for interest income	(799.443)	(626.014)
Adjustments for interest expense -	2.511.411	1.489.402
Adjustments for unrealised foreign exchange losses	3.285.760	3.096.826
Adjustments for fair value losses/(gains)	(316.361)	151.015
Other adjustments for fair value losses/(gains) -	(316.361)	151.015
Adjustments for undistributed profits of investments
accounted for using equity method	9.345	(69.461)
- Adjustments for undistributed profits of associates	9.345	(69.461)
Adjustments for tax (income)/expenses	(647.954)	838.071
Adjustments for gains/(losses) on disposal of non-current assets	(2.180)	(2.286)
Adjustments for gains/(losses) on disposal of tangible assets -	(2.180)	(2.286)
Other adjustments related to non-monetary items	(5.547.020)	(4.784.202)
Adjustments for gains on disposal of subsidiaries	(3.694.680)	(1.485.703)
Other adjustments to reconcile profit/(loss)	61.081	98.951
Changes in working capital	2.842.622	2.793.449
Adjustments for decrease/(increase) in trade receivables	(106.017)	1.561.283
- Decrease (increase) in trade receivables from related parties	(283.314)	279.215
Decrease (increase) in trade receivables from third parties -	177.297	1.282.068
Adjustments for decrease/(increase) in other receivables
related with operations	3.545.476	2.844.010
- Decrease/(increase) in other related party receivables relating with operations	3.467.860	2.689.559
Decrease/(increase) in other third party receivables relating with operations	77.616	154.451
- Decrease/(increase) in receivable from service
concession agreements	498.486	508.657
Adjustments for decrease/(increase) in inventories	(79.831)	312.332
Adjustments for increase/(decrease) in trade payables	(1.374.138)	(101.166)
- Increase/(decrease) in trade payables to related parties	52.013	792.115
Increase/(decrease) in trade payables to third parties -	(1.426.151)	(893.281)
Adjustments for increase/(decrease) in other payables	264.427	(1.585.560)
- Increase/ (decrease) in other payables to third parties	264.427	(1.585.560)
Other adjustments for other increase/(decrease) in working capital	58.379	(194.745)
Decrease (increase) in other assets relating with operations -	226.640	(248.558)
Decrease (increase) in other liabilities relating with operations -	(168.261)	53.813
Adjustments for decrease/(increase) in contract assets	(139.966)	(153.317)
Decrease (increase) in other contract assets -	(139.966)	(153.317)
Increase (decrease) in deferred income	175.806	(398.045)

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2024

Convenience Translation of Consolidated Financial Statements Originally Issued in Turkish

	Unaudited	Unaudited
	1 January-	1 January
	31 March 2024	31 March 2023
Cash flows from used in operations	2.403.008	6.830.417
Payments relating with provisions for employee benefits	(16.847)	(30.193)
Taxes paid	(89.418)	(42.655)
CASH FLOWS FROM INVESTING
ACTIVITIES	3.564.239	1.217.648
Cash inflows from losing control of subsidiaries	3.568.987	1.580.554
Proceeds from sales of property, plant, equipment and intangible assets	7.933	8.750
Proceeds from sale of property, plant and equipment -	7.933	6.472
Proceeds from sale of intangible assets -	-	2.278
Repayments for purchase of property, plant, equipment and intangible assets	(142.549)	(371.656)
Repayments for purchase of property, plant and equipment -	(134.569)	(344.998)
Repayments for purchase of intangible assets -	(7.980)	(26.658)
Other cash inflows (outflows)	129.868	-
CASH FLOWS USED IN FINANCING ACTIVITIES	(7.023.147)	(9.757.582)
Proceeds from borrowings	1.015.587	2.628.837
- Proceeds from borrowings	36.959	30.051
Proceeds from issuance of debt instruments -	978.628	2.598.786
Repayments of borrowings	(5.816.507)	(9.124.664)
Borrowing repayments -	(5.323.374)	(7.064.859)
Payments of issued debt instruments -	(493.133)	(2.059.805)
Increase in other payables to related parties	-	259.755
Decrease in other payables to related parties	(67.972)	-
Payments of lease liabilities	(71.559)	(35.224)
Interest paid	(2.420.261)	(3.082.286)
Interest received	269.410	158.988
Cash inflows from derivative instruments	95.851	213.503
Other cash outflows increase/(decrease)	(27.696)	(776.491)
NET DECREASE IN CASH AND CASH EQUIVALENTS
BEFORE EFFECT OF EXCHANGE RATE CHANGES	(1.162.165)	(1.782.365)
Effect of exchange rate changes on cash and cash equivalents	(57.179)	(85.055)
Net decrease in cash and cash equivalents	(1.219.344)	(1.867.420)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	2.214.807	4.348.609
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	995.463	2.481.189