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VESTEL BEYAZ EŞYA SANAYİ VE TİCARET A.Ş.

Annual / Quarterly Financial Statement Aug 8, 2025

5975_rns_2025-08-08_e04ee933-e2ae-4e71-a1c0-25efa45fcf37.pdf

Annual / Quarterly Financial Statement

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CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 JUNE 2025 (TOGETHER WITH INDEPENDENT AUDITOR'S LIMITED REVIEW REPORT)

(ORIGINALLY ISSUED IN TURKISH)

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY - 30 JUNE 2025

CONTENTS PAGE

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 1-4
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 5-6
STATEMENTS OF CHANGES IN EQUITY 7
STATEMENTS OF CASH FLOWS 8-10

NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 JUNE 2025

NOTE 1 COMPANY'S ORGANISATION AND NATURE OF OPERATIONS 11
NOTE 2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 12-19
NOTE 3 SEGMENT REPORTING 20
NOTE 4 CASH AND CASH EQUIVALENTS 21
NOTE 5 FINANCIAL LIABILITIES 22-24
NOTE 6 RELATED PARTY DISCLOSURES 25-28
NOTE 7 TRADE RECEIVABLES AND PAYABLES 29
NOTE 8 OTHER RECEIVABLES AND PAYABLES 30
NOTE 9 INVENTORIES 31
NOTE 10 PREPAID EXPENSES 31
NOTE 11 PROPERTY, PLANT AND EQUIPMENT 32-33
NOTE 12 RIGHT OF USE ASSETS 34
NOTE 13 INTANGIBLE ASSETS 35
NOTE 14 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 36-38
NOTE 15 COMMITMENTS 39
NOTE 16 EMPLOYEE BENEFITS 39
NOTE 17 CAPITAL, RESERVES AND OTHER EQUITY ITEMS 39-41
NOTE 18 SALES 41
NOTE 19 OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES 42
NOTE 20 FINANCIAL INCOME AND FINANCIAL EXPENSE 42
NOTE 21 MONETARY (LOSS) / GAIN 43
NOTE 22 TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 43-47
NOTE 23 EARNINGS / (LOSSES) PER SHARE 48
NOTE 24 DERIVATIVE INSTRUMENTS 48
NOTE 25 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 48-52
NOTE 26 FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) 52-53
NOTE 27 OTHER FINANCIAL LIABILITIES 53
NOTE 28 SUBSEQUENT EVENTS 53

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Audited
Notes 30 June 2025 31 December 2024
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents 4 85.949 1.274.241
Financial Assets 28.125 28.388
Trade Receivables 15.539.310 16.975.875
Trade Receivables Due from Related Parties 6 14.929.321 16.364.930
Trade Receivables Due from Third Parties 7 609.989 610.945
Other Receivables 9.137.005 5.629.026
Other Receivables Due from Related Parties 6 8.394.953 4.445.956
Other Receivables Due from Third Parties 8 742.052 1.183.070
Derivative Financial Instruments 24 30.053 400.736
Inventories 9 11.926.559 11.497.707
Prepaid Expenses 866.133 720.073
Prepayments to Related Parties 6 458.460 419.035
Prepayments to Third Parties 10 407.673 301.038
Current Tax Assets 22 1.762 11.917
Other Current Assets 65.460 112.695
Other Current Assets Due from Third Parties 65.460 112.695
TOTAL CURRENT ASSETS 37.680.356 36.650.658
NON-CURRENT ASSETS
Other Receivables 11.621 14.936
Other Receivables Due from Third Parties 11.621 14.936
Property, Plant and Equipment 11 42.081.370 42.188.509
Right of Use Assets 12 1.049.939 840.808
Intangible Assets 13 2.995.687 2.818.283
Prepaid Expenses 659.747 992.226
Prepaid Expenses to Related Parties 6 238.454 536.519
Prepayments to Third Parties 10 421.293 455.707
TOTAL NON-CURRENT ASSETS 46.798.364 46.854.762
TOTAL ASSETS 84.478.720 83.505.420

The accompanying notes are an integral part of these financial statements.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Audited
Notes 30 June 2025 31 December 2024
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 14.758.965 11.495.120
Short Term Borrowings from Related Parties 6.677 4.956
Lease Liabilities 5,6 6.677 4.956
Short Term Borrowings from Third Parties 14.752.288 11.490.164
Bank Loans 5 13.272.606 8.693.177
Lease Liabilities 5 201.359 5.010
Issued Debt Instruments 5 1.278.323 2.791.977
Current Portion of Long Term Borrowings 1.555.448 483.598
Current Portion of Long Term Borrowings from
Third Parties 1.555.448 483.598
Bank Loans 5 427.856 483.598
Issued Debt Instruments 5 1.127.592 -
Other Financial Liabilities 27 83.511 75.241
Trade Payables 23.581.939 24.445.962
Trade Payables to Related Parties 6 1.301.787 2.088.092
Trade Payables to Third Parties 7 22.280.152 22.357.870
Payables Related to Employee Benefits 16 484.223 459.769
Other Payables 70.238 109.874
Other Payables to Related Parties 6 54.315 109.874
Other Payables to Third Parties 8 15.923 -
Derivative Financial Liabilities 24 991.033 35.220
Deferred Revenue 798.188 94.034
Deferred Revenues from Related Parties 6 796.653 91.834
Deferred Revenue from Third Parties 8 1.535 2.200
Current Provisions 47.025 31.462
Other Current Provisions 14 47.025 31.462
Other Current Liabilities 227.414 222.508
Other Current Liabilities to Third Parties 227.414 222.508
TOTAL CURRENT LIABILITIES 42.597.984 37.452.788

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Audited
Notes 30 June 2025 31 December 2024
NON-CURRENT LIABILITIES
Long Term Borrowings 1.383.951 1.429.999
Long Term Borrowings from Related Parties 198.917 159.606
Lease Liabilities 5,6 198.917 159.606
Long Term Borrowings from Third Parties 1.185.034 1.270.393
Bank Loans 5 1.008.251 1.263.354
Lease Liabilities 5 176.783 7.039
Other Financial Liabilities 27 299.875 239.150
Trade Payables 136.609 143.446
Trade Payables to Third Parties 136.609 143.446
Non-current Provisions 1.014.668 1.080.382
Non-current Provisions for Employee Benefits 1.014.668 1.080.382
Deferred Tax Liabilities 22 3.463.590 3.659.781
Other Non-current Liabilities 9.788 12.007
Other Non-current Liabilities to Third Parties 9.788 12.007
TOTAL NON-CURRENT LIABILITIES 6.308.481 6.564.765
TOTAL LIABILITIES 48.906.465 44.017.553

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Audited
Notes 30 June 2025 31 December 2024
EQUITY
Equity Attributable to Owners of Parent 35.572.255 39.487.867
Issued Capital 17 1.600.000 1.600.000
Adjustments on Capital 17 11.591.649 11.591.649
Other Accumulated Comprehensive Income (Loss) that will not be
Reclassified to Profit or Loss 9.639.228 9.661.975
Gains (Losses) on Revaluation and Remeasurement 9.639.228 9.661.975
Increases on Revaluation of
Property, Plant and Equipment 10.786.243 10.789.463
Losses on Remeasurement of Defined Benefit Plans (1.147.015) (1.127.488)
Other Accumulated Comprehensive Income (Loss) that will be
Reclassified to Profit or Loss (774.689) 182.496
Losses on Hedge (774.689) 182.496
Losses on Cash Flow Hedges (774.689) 182.496
Restricted Reserves 2.389.149 2.389.149
Legal Reserves 17 2.389.149 2.389.149
Prior Years' Profits 13.995.580 13.752.446
Current Period Net Profit (2.868.662) 310.152
TOTAL EQUITY 35.572.255 39.487.867
TOTAL LIABILITIES AND EQUITY 84.478.720 83.505.420

Financial statements for the period 1 January – 30 June 2025 were approved by the Board of Directors of Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. on 08 August 2025.

The accompanying notes are an integral part of these financial statements.

CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODS 1 JANUARY – 30 JUNE 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Reviewed
1 January - 1 January - 1 April - 1 April -
30 June 30 June 30 June 30 June
Notes 2025 2024 2025 2024
PROFIT OR LOSS
Revenue 18 35.901.692 43.134.019 19.055.896 22.676.850
Cost of Sales 18 (33.056.157) (37.719.745) (17.533.325) (20.391.401)
GROSS PROFIT 2.845.535 5.414.274 1.522.571 2.285.449
General Administrative Expenses (686.948) (453.263) (321.125) (209.630)
Marketing Expenses (1.680.116) (1.856.446) (861.628) (924.077)
Research and Development Expense (487.323) (502.946) (231.884) (227.929)
Other Income from Operating Activities 19 2.490.367 1.826.086 1.343.261 790.954
Other Expenses from Operating Activities 19 (4.042.365) (2.891.988) (2.289.047) (866.535)
PROFIT/(LOSS) FROM OPERATING ACTIVITIES (1.560.850) 1.535.717 (837.852) 848.232
PROFIT/(LOSS) BEFORE FINANCING INCOME (1.560.850) 1.535.717 (837.852) 848.232
Finance Income 20 2.242.571 838.908 1.194.262 213.487
Finance Costs 20 (5.362.303) (4.181.520) (3.018.781) (2.311.531)
Monetary Gain 21 1.941.300 2.698.543 726.220 1.292.645
PROFIT FROM CONTINUING OPERATIONS, BEFORE TAX (2.739.282) 891.648 (1.936.151) 42.833
Tax (Expense) Income, Continuing Operations (129.380) 11.891 142.405 (42.014)
Current Tax Expense 22 - (2.842) - 260
Deferred Tax Income 22 (129.380) 14.733 142.405 (42.274)
PROFIT FOR THE PERIOD (2.868.662) 903.539 (1.793.746) 819
Earnings per 100 share with a Kr 1 of Par Value (TL) 23 (1,79) 0,56 (1,12) 0,00

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODS 1 JANUARY – 30 JUNE 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Reviewed
1 January - 1 January - 1 April - 1 April -
30 June
30 June 30 June 30 June
2025 2024 2025 2024
PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME (2.868.662) 903.539 (1.793.746) 819
Other Comprehensive Income that will
not be Reclassified to Profit or Loss (19.527) (10.559) (10.490) (3.739)
Gains (Losses) on Remeasurements of Defined Benefit Plans (26.036) (14.079) (13.987) (4.986)
Taxes Relating to Components of Other Comprehensive Income
that will not be Reclassified to Profit or Loss 6.509 3.520 3.497 1.247
Taxes Relating to Remeasurements of Defined Benefit Plans 6.509 3.520 3.497 1.247
Other Comprehensive Income that will
be Reclassified to Profit or Loss (957.185) 499.683 (726.730) 210.480
Other Comprehensive Income (Loss) Related with Cash Flow Hedges (1.276.247) 666.244 (968.973) 280.640
Taxes Relating to Components of Other Comprehensive Income
that will be Reclassified to Profit or Loss 319.062 (166.561) 242.243 (70.160)
Other Comprehensive Income (Loss) Related with Cash Flow Hedges, Tax Effect 319.062 (166.561) 242.243 (70.160)
OTHER COMPREHENSIVE INCOME (976.712) 489.124 (737.220) 206.741
TOTAL COMPREHENSIVE INCOME (3.845.374) 1.392.663 (2.530.966) 207.560

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE PERIODS 1 JANUARY – 30 JUNE 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Other
Increases Accumulated Other
(Decreases) on Comprehensive Accumulated
Revaluation of Gains (Losses) on Income That Will Reserve Of Comprehensive Restricted Equity
Inflation Property, Remeasurement of Gains (Losses) Not Be Gains or Income That Will Reserves Prior Years' attributable to
Issued Adjustments Plant and Defined Benefit Revaluations and Reclassified To Cash Flow Losses on Be Reclassified Appropriated Profits or Net Profit or Retained owners of
Capital on Capital Equipment Plans Remeasurements Profit Or Loss Hedges Hedge To Profit Or Loss From Profits Losses Loss Earnings parent Equity
Previous Period
1 January -30 June 2024
Beginning of Period 1.600.000 11.591.649 6.807.687 (976.264) 5.831.423 5.831.423 (313.965) (313.965) (313.965) 2.018.595 7.682.343 7.958.452 15.640.795 36.368.497 36.368.497
Transfers - - (38.253) - (38.253) (38.253) - - - - 7.996.705 (7.958.452) 38.253 - -
Total Comprehensive Income (Loss) - - - (10.559) (10.559) (10.559) 499.683 499.683 499.683 - - 903.539 903.539 1.392.663 1.392.663
Profit for the period (Losses) - - - - - - - - - - - 903.539 903.539 903.539 903.539
Other Comprehensive Income (Loss) - - - (10.559) (10.559) (10.559) 499.683 499.683 499.683 - - - - 489.124 489.124
Dividends Paid - - - - - - - - - 370.554 (1.964.858) - (1.964.858) (1.594.304) (1.594.304)
End of Period 1.600.000 11.591.649 6.769.434 (986.823) 5.782.611 5.782.611 185.718 185.718 185.718 2.389.149 13.714.190 903.539 14.617.729 36.166.856 36.166.856
Current Period
1 January -30 June 2025
Beginning of Period 1.600.000 11.591.649 10.789.463 (1.127.488) 9.661.975 9.661.975 182.496 182.496 182.496 2.389.149 13.752.446 310.152 14.062.598 39.487.867 39.487.867
Transfers - - (3.220) - (3.220) (3.220) - - - - 313.372 (310.152) 3.220 - -
Total Comprehensive Income (Loss) - - - (19.527) (19.527) (19.527) (957.185) (957.185) (957.185) - - (2.868.662) (2.868.662) (3.845.374) (3.845.374)
Profit for the period (Losses) - - - - - - - - - - - (2.868.662) (2.868.662) (2.868.662) (2.868.662)
Other Comprehensive Income (Loss) - - - (19.527) (19.527) (19.527) (957.185) (957.185) (957.185) - - - - (976.712) (976.712)
Dividends Paid - - - - - - - - - - (70.238) - (70.238) (70.238) (70.238)
End of Period 1.600.000 11.591.649 10.786.243 (1.147.015) 9.639.228 9.639.228 (774.689) (774.689) (774.689) 2.389.149 13.995.580 (2.868.662) 11.126.918 35.572.255 35.572.255

The accompanying notes are an integral part of these financial statements.

CONDENSED INTERIM STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY- 30 JUNE 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Reviewed
1 January -
30 June
2024
1 January -
30 June
Notes 2025
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES 1.728.154 1.283.189
Profit (Loss) for the Period (2.868.662) 903.539
Profit (Loss) from Continuing Operations (2.868.662) 903.539
Adjustments to Reconcile Profit 2.430.128 333.561
Adjustments for Depreciation and Amortisation Expense 11,12,13 1.697.091 1.792.489
Adjustments for Impairment Loss
(Reversal of Impairment Loss) 65.844 63.782
Adjustments for Impairement Loss
(Reversal of Impairment Loss) of Receivables (7.784) (978)
Adjustments for Impairment Loss
(Reversal of Impairment Loss) of Inventories 9 73.628 64.760
Adjustments for Provisions 257.229 188.710
Adjustments for (Reversal of) Provisions Related with
Employee Benefits 241.666 186.621
Adjustments for (Reversal of) Lawsuit and/or
Penalty Provisions 14 15.563 2.089
Adjustments for Interest (Income) Expenses 2.453.930 2.397.568
Adjustments for Interest Income 20 (958.246) (144.625)
Adjustments for Interest Expense 20 3.412.176 2.542.193
Adjustments for Unrealised Foreign
Exchange Losses (Gains) (218.606) (334.538)
Adjustments for Fair Value Losses (Gains) 50.249 48.771
Adjustments for Fair Value (Gains) Losses on
Derivative Financial Instruments 50.249 48.771
Adjustments for Tax (Income) Expenses 22 129.380 (11.891)
Adjustments for Losses (Gains) on Disposal of
Non-Current Assets (2.996) (2.764)
Adjustments for Losses (Gains) Arised from
Sale of Tangible Assets (2.996) (2.764)
Other Adjustments to Reconcile Profit (Loss) 4 4 7
Monetary Loss/Gain (2.001.997) (3.808.573)

The accompanying notes are an integral part of these financial statements.

CONDENSED INTERIM STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY- 30 JUNE 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Reviewed
1 January - 1 January -
30 June 30 June
Notes 2025 2024
Changes in Working Capital 2.332.436 158.719
Adjustments for Decrease (Increase) in Trade Accounts Receivable (1.030.891) (2.327.962)
Decrease (Increase) in Trade Accounts Receivables from Related Parties (948.025) (2.199.482)
Decrease (Increase) in Trade Accounts Receivables from Third Parties (82.866) (128.480)
Adjustments for Decrease (Increase) in Other Receivables Related with
Operations 286.708 332.964
Decrease (Increase) in Other Third Party Receivables Related with Operations 286.708 332.964
Adjustments for Decrease (Increase) in Inventories 9 (502.480) (3.271.023)
Decrease (Increase) in Prepaid Expenses (261.348) (367.667)
Adjustments for Increase (Decrease) in Trade Accounts Payable 2.894.271 5.294.819
Increase (Decrease) in Trade Accounts Payables to Related Parties (512.158) 475.779
Increase (Decrease) in Trade Accounts Payables to Third Parties 3.406.429 4.819.040
Increase (Decrease) in Employee Benefit Liabilities 94.644 169.641
Adjustments for Increase (Decrease) in Other
Operating Payables 16.715 381.562
Increase (Decrease) in Other Operating Payables to Third Parties 16.715 381.562
Increase (Decrease) in Deferred Revenues 755.260 (45.372)
Other Adjustments for Other Increase (Decrease) in Working Capital 79.557 (8.243)
Decrease (Increase) in Other Assets Related with Operations 41.555 (42.794)
Increase (Decrease) in Other Payables Related with Operations 38.002 34.551
Cash Flows from (used in) Operations 1.893.902 1.395.819
Payments Related with Provisions for Employee Benefits (175.903) (123.141)
Income Taxes Refund (Paid) 22 10.155 10.511

CONDENSED INTERIM STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY- 30 JUNE 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

Reviewed Reviewed
1 January - 1 January -
30 June
2024
30 June
Notes 2025
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (4.910.169) 508.443
Proceeds from Sales of Property, Plant, Equipment and Intangible Assets 3.763 13.846
Proceeds from Sales of Property, Plant and Equipment 3.763 13.846
Purchase of Property, Plant, Equipment and Intangible Assets (1.690.594) (2.343.664)
Purchase of Property, Plant and Equipment 11 (1.319.507) (1.708.723)
Purchase of Intangible Assets 13 (371.087) (634.941)
Cash Advances and Loans Made to Other Parties (3.223.601) 2.839.686
Cash Advances and Loans Made to Related Parties (3.191.363) 3.177.757
Cash Advances and Loans Made to Third Parties (32.238) (338.071)
Other Cash Inflows (Outflows) 263 (1.425)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES 2.175.829 (2.604.445)
Proceeds from Borrowings 5 16.518.237 5.893.970
Proceeds from Loans 14.244.167 4.952.013
Proceeds from Other Financial Borrowings 2.274.070 941.957
Repayments of Borrowings 5 (11.072.000) (3.920.317)
Loan Repayments (8.877.000) (3.355.142)
Issued bonds repayments (2.195.000) (565.175)
Increase / (Decrease) in Other Payables to Related Parties (115.570) (2.024.070)
Payments of Lease Liabilities (145.073) 54.720
Interest Paid (3.013.937) (2.482.537)
Interest Received 4.172 (126.211)
INFLATION EFFECT ON CASH AND CASH EQUIVALENTS (186.012) (258.395)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES (1.192.198) (1.071.208)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 3.910 14.701
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1.188.288) (1.056.507)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 4 1.274.215 1.228.891
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 85.927 172.384

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 1 – COMPANY'S ORGANISATION AND NATURE OF OPERATIONS

Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. (the "Company" or "Vestel Beyaz Eşya") was incorporated in 1997 under the Turkish Commercial Code and its head office is located at Levent 199, Büyükdere Caddesi No: 199, 34394 Şişli / İstanbul.

The Company started its operations in 1999 and produces refrigerators, room air conditioning units, washing machines, cookers, dishwashers and water heaters. The Company's production facilities occupy 507 square meters of enclosed area located in Manisa Organized Industrial Zone on total area of 657 square meters.

The Company is a member of Vestel Group of Companies which are under the control of Zorlu Family. The Company performs its export sales and domestic sales via Vestel Ticaret A.Ş. which is also a member of Vestel Group of Companies.

The Company is registered to Capital Market Board and its shares have been quoted to Borsa Istanbul ("BİST") since 21 April 2006.

As of 30 June 2025, the number of personnel employed was 8.774 (31 December 2024: 9.628).

As of balance sheet dates, the shareholders of the Company and their percentage shareholdings were as follows:

Shareholding %
Vestel Elektronik Sanayi ve Ticaret A.Ş. 77,33
Other shareholders 22,67

100,00

As of 30 June 2025 Company have been quoted at the Borsa Istanbul (31,47% of its share capital; 31 December 2024: 31,47%).

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of presentation

2.1.1 Statement of compliance

The accompanying interim condensed 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, 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") Turkish Accounting Standards Board.

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 Company has prepared its condensed financial statements for the interim period ended 30 June 2025 in accordance with TAS 34 Interim Period Financial Reporting Standard. The condensed interim financial statements do not include all the information required in the annual financial statements and should be read in conjunction with the Company's annual financial statements as of 31 December 2024.

The Company bases its accounting records and preparation of its legal financial statements on the Turkish Commercial Code ("TTK"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance of the Republic of Türkiye. The 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.

Financial statements have been prepared by reflecting the necessary corrections and classifications in order to ensure accurate presentation in accordance with TFRS, on the legal records prepared on the historical cost basis.

Financial reporting in high-inflation economies

The Company 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.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.1 Basis of presentation (Cont'd)

2.1.1 Statement of compliance (Cont'd)

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 company has presented its financial statements as of 30 June 2024 and 31 December 2024, on the basis of purchasing power as of 30 June 2025.

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 Türkiye ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"). As of 30 June 2025, 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
June
2025
3.132,17 1 220%
31 December 2024 2.684,55 1,1667 291%
30 June
2024
2.319,29 1,3505 324%

The main elements of the Company'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.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.1 Basis of presentation (Cont'd)

2.1.1 Statement of compliance (Cont'd)

  • 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 non-monetary 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 Company's net monetary asset position in the current period is recorded in the net monetary position gains/(losses) account in the income statement (Note 21).

2.2 Comparative information and restatement of prior period financial statements

Financial statements of the Company 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 financial statements.

Comparative figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the currency in effect at the end of the reporting period. Information disclosed for previous periods is also expressed in the currency valid at the end of the reporting period.

Except for the changes mentioned in the paragraph below, consistent accounting policies have been applied in the financial statements for the periods presented and there are no significant changes in accounting policies and estimates in the current period.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.2 Comparative information and restatement of prior period financial statements (Cont'd)

In accordance with the "Implementation Guidance on Financial Reporting in Hyperinflationary Economies" published by POA, monetary position gains and losses on cash and cash equivalents are presented in the statement of cash flows, and in accordance with the 3rd approach in the implementation guidance, the effect of inflation on cash flows from operating, investing and financing activities is attributed to the relevant class of activity and the inflation effect on cash and cash equivalents is presented separately. As disclosed in the Statement of Cash Flows as of 30 June 2024, in line with the illustrative application included in the announcement titled "Update of the Inflation Accounting Implementation Guidance" published by the Public Oversight Authority (POA) on 27 September 2024, a reclassification amounting to TL 2.827.765 was made between "Changes in Working Capital" and "Adjustments Related to Reconciliation of Net Profit for the Period." The related reclassifications have been adjusted to reflect the purchasing power of the year 2025. This reclassification had no impact on the total amount reported under "Cash Flows from Operating Activities".

2.3 Restatement and errors in the accounting estimates

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.

2.4 Amendments in Türkiye Financial Reporting Standards

The accounting policies used in the preparation of financial statements for the accounting period ending 30 June 2025 are consistent with those used in the previous year, except for the new and amended Turkish Accounting Standards ("TAS")/TFRS and TAS/TFRS interpretations valid as of 1 January 2025, summarized below. has been implemented. The effects of these standards and interpretations on the financial position and performance of the Company are explained in the relevant paragraphs.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.4 Amendments in Türkiye Financial Reporting Standards (Cont'd)

a) Standards, amendments, and interpretations applicable as of 30 June 2025:

IAS 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.

b) Standards, amendments, and interpretations that are issued but not effective as of 30 June 2025:

Amendment to IFRS 9 and IFRS 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).

  • Annual improvements to IFRS – Volume 11; Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
    • IFRS 1 First-time Adoption of International Financial Reporting Standards;
    • IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.4 Amendments in Türkiye Financial Reporting Standards (Cont'd)

b) Standards, amendments, and interpretations that are issued but not effective as of 30 June 2025 (Cont'd):

  • IFRS 9 Financial Instruments;
  • IFRS 10 Consolidated Financial Statements; and
  • IAS 7 Statement of Cash Flows.
  • Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7.

These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.

  • IFRS 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 IFRS 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.
  • IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.4 Amendments in Türkiye Financial Reporting Standards (Cont'd)

b) Standards, amendments, and interpretations that are issued but not effective as of 30 June 2025 (Cont'd):

  • 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 IFRS Accounting Standards.
  • TFRS 17 Insurance Contracts; is effective for annual reporting periods beginning on or after 1 January 2023. This standard replaces TFRS 4, which currently permits a wide variety of practices. TFRS 17 will fundamentally change the accounting for all entities that issue insurance contracts and investment contracts with discretionary participation features.

However, in a letter dated 6 April, 2023, sent by the Public Oversight Authority (POA) to the Insurance Association of Turkey, it was stated that the POA concluded that the application of TFRS 17 from 1 January, 2024, would be appropriate in the consolidated and individual financial statements of insurance, reinsurance and pension companies, banks with partnerships/investments in these companies, and other companies with partnerships/investments in these companies.

On the other hand, due to the amendment of Article 13(1)(a) of the "Regulation on Financial Reporting of Insurance and Reinsurance Companies and Pension Companies" by the Insurance and Private Pension Regulation and Supervision Agency (IPRSA), changing the effective date of TFRS 17 from "1 January 2024" to "1 January 2025", the POA, in a letter dated 15 February 2024, sent to the Banks Association of Turkey, stated that the implementation date of TFRS 17 has been postponed to 1 January 2025, for the consolidated and individual financial statements of insurance, reinsurance and pension companies, banks with partnerships/investments in these companies, and other companies with partnerships/investments in these companies.

Furthermore, due to a further amendment to Article 13(1)(a) of the aforementioned Regulation by the IPRSA, changing the effective date of TFRS 17 from "1 January 2025" to "1 January 2026", the POA, in a letter dated 14 January 2025, sent to the Banks Association of Turkey, stated that the implementation date of TFRS 17 has been further postponed to 1 January 2026, for the consolidated and individual financial statements of insurance, reinsurance and pension companies, banks with partnerships/investments in these companies, and other companies with partnerships/investments in these companies.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.5 Summary of significant accounting policies

Summary financial statements for the interim period ending on 30 June 2025 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 2024.Therefore, interim financial statements should be evaluated together with the financial statements for the year ending 31 December 2024.

The frequency of revaluations

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. 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, it is assumed that the fair values of land, buildings and land improvements determined in the valuation studies performed as of 31 December 2024 will converge to their respective fair values as of 30 June 2025 after deducting current period depreciation and the CPI change in the related interim period.

2.6 Functional Currency

The Company's financial statement items have been measured in the currency of the primary economic environment in which it operates ("functional currency"). The condensed financial statements have been prepared and presented in Turkish Lira ("TL"), which is the Company's functional currency.

2.7 Going concern

The Company prepared financial statements in accordance with the going concern assumption.

2.8 Offsetting

All items with significant amounts and nature, even with similar characteristics, are presented separately in the financial statements. Insignificant amounts are grouped and presented by means of items having similar substance and function. When the nature of transactions and events necessitate offsetting, presentation of these transactions and events over their net amounts or recognition of the assets after deducting the related impairment are not considered as a violation of the rule of non-offsetting.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 3 - SEGMENT REPORTING

Operating segments are identified on the same basis as financial information is reported internally to the Company's chief operating decision maker. The Company's Board of Directors has been identified as the Company's chief operating decision maker who is responsible for allocating resources between segments and assessing their performance. The Company management determines operating segments by reference to the reports reviewed by the Board of Directors to make strategic decisions.

The Management believes that the Company operates in a single industry sector as the risks and returns for the activities do not show any material difference because the scope of activity covers only the production of white goods and the production processes and classes of customers are similar. As a result, all information related to the industrial segment has been fully presented in the attached financial statements.

The Management has decided to use geographical segments for segment reporting considering the fact that risks and returns are affected by the differences in geographical regions.

1 January - 1 January - 1 April - 1 April -
30 June 30 June 30 June 30 June
Segment revenue 2025 2024 2025 2024
Turkey 11.485.747 15.697.807 6.443.615 7.859.437
Europe 16.138.371 19.088.673 8.545.593 10.541.656
Other 8.416.986 8.494.799 4.146.048 4.319.106
Gross segment sales 36.041.104 43.281.279 19.135.256 22.720.199
Discounts (-) (139.412) (147.260) (79.360) (43.349)
Net sales 35.901.692 43.134.019 19.055.896 22.676.850

Geographical segments

The amount of exports is TL 24.555.357 for the period ended 30 June 2025. (1 January-30 June 2024: TL 27.583.472). 82,8% of the export amount was realized in EUR, 11,9% in USD and 5,3% in other foreign currencies (1 January-30 June 2024: 87,2% EUR, 9,3% USD and 3,5% other currencies).

Segment assets are not shown separately because a significant portion of the segment assets and the significant portion of the costs incurred to acquire the segment assets are incurred in Türkiye.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 4 – CASH AND CASH EQUIVALENTS

30 June 2025 31 December 2024
Cash 437 2.628
Bank deposits
- Demand deposits 85.490 981.879
- Time deposits - 289.708
85.927 1.274.215
Blocked deposits 22 26
Cash and cash equivalents 85.949 1.274.241

The effective interest rates for time deposits are as below:

30 June 2025 31 December 2024
TL - 45%

As of 31 December 2024, the average maturity of the Company's time deposits is less than 3 months.

Based on the independent data with respect to the credit risk assessment of the banks, at which the Company has deposits, the credit quality of the banks is sufficient. The market values of cash and cash equivalents approximate carrying values, including accrued income at the respective balance sheet date.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 5 –
FINANCIAL LIABILITIES
30 June 2025 31 December 2024
Short term financial liabilities
Short term bank loans 13.272.606 8.693.177
Short term portion of long term bank loans 427.856 483.598
Short-term lease liabilities 208.036 9.966
Short term issued bonds 1.278.323 2.791.977
Short-term portion of issued long-term borrowings 1.127.592 -
16.314.413 11.978.718
Long term financial liabilities
Long term bank loans 1.008.251 1.263.354
Long term lease liabilities 375.700 166.645
1.383.951 1.429.999

* The maturity date of the bond with the ISIN code TRFVEST82517, amounting to TL 350.000, with a maturity of 170 days, a single coupon payment, issued to qualified investors on 12 February 2025 is 1 August 2025 and the annual simple interest rate of the coupon has been determined as 43,5%.

* The maturity date of the bond with the ISIN code TRSVEST32614, amounting to TL 885.000, with a maturity of 399 days, every 3 months coupon payment, issued to qualified investors on 12 February 2025 is 18 March 2026 and the annual simple interest rate of the coupon has been determined as 44%.

* The maturity date of the bond with the ISIN code TRSVEST42613, amounting to TL 175.000, with a maturity of 370 days, every 3 months coupon payment, issued to qualified investors on 25 April 2025 is 30 April 2026 and the annual simple interest rate of the coupon has been determined as 51%.

* The maturity date of the bond with the ISIN code TRFVESTE2522, amounting to TL 864.070, with a maturity of 123 days, a single coupon payment, issued to qualified investors on 26 June 2025 is 27 October 2025 and the annual simple interest rate of the coupon has been determined as 53%.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 5 – FINANCIAL LIABILITIES (Cont'd)

Details of the Company's short term bank loans are given below:

30 June 2025 31 December 2024
Weighted
average of
Weighted
average of
effective Original effective Original
Currency interest currency TL Equivalent interest currency TL Equivalent
- USD 10,95% 15.492 616.774 8,59% 22.239 917.070
- EUR 9,33% 14.844 693.086 8,47% 16.303 700.032
- TL 30,64% 11.962.746 11.962.746 34,28% 7.076.075 7.076.075
13.272.606 8.693.177

Details of the Company's long term bank loans are given below:

30 June 2025 31 December 2024
Weighted
average of
Weighted
average of
effective Original effective Original
Currency interest currency TL Equivalent interest currency TL Equivalent
- TL %20,65 427.856 427.856 %20,65 483.598 483.598
Short term portion 427.856 483.598
- TL %20,65 1.008.251 1.008.251 %20,65 1.263.354 1.263.354
Long term portion 1.008.251 1.263.354
1.436.107 1.746.952

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 5 – FINANCIAL LIABILITIES (Cont'd)

The redemption schedule of the Company's long term bank loans is given below:

Uzun vadeli finansal borçların ödeme planı 30 June 2025 31 December 2024
One to two years 307.371 374.701
Two to three years 222.593 272.117
Three to four years 162.769 199.558
Over five years 315.518 416.978
1.008.251 1.263.354

Fair value 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.

Guarantees given for the bank loans obtained are disclosed in Note 14.

As of 30 June 2025 and 30 June 2024, reconciliation of net financial debt is as below:

30 June 2025 30 June 2024
Net financial debt as of 1 January 12.134.502 6.501.627
Cash inflows from loans and issued bonds 16.518.237 5.893.970
Cash outflows from loan and bonds payments (11.072.000) (3.920.317)
Payments of lease liabilities 432.364 54.720
Unrealized exchange 134.550 133.829
Accrued interest 192.742 105.689
Change in cash and cash equivalents 1.188.288 1.056.509
Monetary gain / (loss) (1.916.246) (2.072.604)
Net financial debt at the end of the period 17.612.437 7.753.423

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 6 – RELATED PARTY DISCLOSURES

a) Short term trade receivables from related parties

30 June 2025 31 December 2024
Vestel Ticaret A.Ş. (1) 14.929.156 16.364.662
Other related parties 165 268
14.929.321 16.364.930

The receivables result from the Company's foreign and domestic sales performed via Vestel Ticaret A.Ş. which is also a member of Vestel Group Companies.

b) Short term trade payables to related parties

30 June 2025
31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 346.839 1.567.363
Vestel Ticaret A.Ş. (1) 562.618 492.984
Vestel Holland B.V. (1) 272.806 4.224
Other related parties 132.980 37.373
1.315.243 2.101.944
Deferred finance income (-) (13.456) (13.852)
1.301.787 2.088.092

The Company's short-term payables to related parties consist of purchases of goods and services

c) Other short term receivables from related parties

30 June 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 8.394.953 4.445.956
8.394.953 4.445.956

As of 30 June 2025, the Company's interest rate of other short-term receivables is in TL 47,5%, in USD 9% and in EUR 7,5% ( As of 31 December 2024 the Company's interest rate of other receivables is in USD 9% and EUR 7,5%)

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 6 – RELATED PARTY DISCLOSURES (Cont'd)

d) Other short term liabilities from related parties

30 June 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 54.315 109.874
54.315 109.874

As of 30 June 2025, the Company's short-term payables to related parties are entirely comprised of dividend payables pertaining to the 2024 profit distribution to Vestel Elektronik Sanayi ve Ticaret A.Ş. (Note 17).

e) Short-term prepaid expenses to related parties

30 June 2025 31 December 2024
Zorlu Yenilenebilir Enerji A.Ş. (3) 429.299 326.270
Vestel Holland B.V. (1) 25.355 88.218
Other related parties 3.806 4.547
458.460 419.035

f) Long-term prepaid expenses to related parties

30 June 2025 31 December 2024
Zorlu Yenilenebilir Enerji A.Ş. (3) 238.454 493.157
Other related parties - 43.362
238.454 536.519

On 24 February 2025, Rotor Elektrik Üretim A.Ş. was transferred to Zorlu Yenilenebilir Enerji A.Ş. along with all its assets and liabilities. All short-term and long-term prepaid expenses of Rotor Elektrik Üretim A.Ş. were transferred to Zorlu Yenilenebilir Enerji A.Ş. following the transfer transactions. As of 30 June 2025, the Company's shortterm and long-term prepaid expenses from Zorlu Yenilenebilir Enerji A.Ş. consist of amounts arising from these transfer transactions.

g) Deferred income from related parties

30 June 2025 31 December 2024
Vestel Ticaret A.Ş. (1) 796.653 91.834
796.653 91.834

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 6 – RELATED PARTY DISCLOSURES (Cont'd)

h) Lease liabilities to related parties

30 June 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 205.594 164.562
205.594 164.562

As of 30 June 2025, the Company's short term lease liabilities to Vestel Elektronik Sanayi ve Ticaret A.Ş. are amounted to TL 6.677 and long term lease liabilities are amounted to TL 198.917 (31 December 2024: short term TL 4.956 and long term TL 159.606)

i) Transactions with related parties

1 January - 1 January - 1 April - 1 April -
30 June 30 June 30 June 30 June
2025 2024 2025 2024
Sales
Vestel Ticaret A.Ş. (1) 34.129.519 40.774.267 18.333.540 20.722.622
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 286.165 299.561 145.599 145.205
Other related parties - 739.605 - 703.721
34.415.684 41.813.433 18.479.139 21.571.548
Operating expenses
Vestel Holland B.V. (1) 2.391.453 2.369.418 1.262.206 1.135.938
Vestel Ticaret A.Ş. (1) 772.185 1.006.064 403.146 484.998
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 1.411.426 2.194.346 724.605 1.029.682
Other related parties 354.603 303.693 170.542 83.696
4.929.667 5.873.521 2.560.499 2.734.314

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 6 – RELATED PARTY DISCLOSURES (Cont'd)

i) Transactions with related parties (Cont'd)

1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Other income from operating activities
Vestel Ticaret A.Ş. (1) 2.208.567 1.332.732 1.250.950 602.076
Other related parties 158.541 286.766 54.487 92.938
2.367.108 1.619.498 1.305.437 695.014
Other expense from operating activities
Vestel Ticaret A.Ş. (1) 273.944 576.439 217.498 477.438
Vestel Holland B.V. (1) 42.388 92.772 20.565 21.279
Other related parties 52.391 91.687 21.826 33.617
368.723 760.898 259.889 532.334
Financial income
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 1.380.785 564.987 782.060 65.161
Other related parties 330 - - -
1.381.115 564.987 782.060 65.161
Financial expense
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 2.884 1.276.959 2.884 682.499
2.884 1.276.959 2.884 682.499
Dividend payment to non-controlling interests
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 54.315 1.232.875 54.315 1.232.875
54.315 1.232.875 54.315 1.232.875

The total dividend payables restated to 30 June 2025 purchasing power amounting to 70.238 TL consists of 54.315 TL payable to Vestel Elektronik Sanayi ve Ticaret A.Ş., and 15.923 TL payable to the publicly traded portion.

Guarantees received from and given to related parties are disclosed in note 14.

j) Compensation paid to key management including directors, the Chairman of Board of Directors, general managers and assistant general managers.

Compensation paid to key management for the six months period ended 30 June 2025 is TL 53.258 (1 January -30 June 2024: TL 43.950).

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 7 – TRADE RECEIVABLES AND PAYABLES

30 June 2025 31 December 2024
Short term trade receivables
Trade receivables
- Related parties (Note 6) 14.929.321 16.364.930
- Other parties 660.040 668.780
15.589.361 17.033.710
Allowance for doubtful receivables (-) (50.051) (57.835)
Total short term trade receivables 15.539.310 16.975.875

The Company has recognized a provision for doubtful receivables, based on historical experience, for accounts deemed uncollectible.

The Company's management recognizes provisions by taking into account its historical experience in the collection of trade receivables and forward-looking estimates. In accordance with the expected credit loss model under TFRS 9, the management has assessed the provision and, as of 30 June 2025, has not identified any significant additional risk related to doubtful trade receivables.

30 June 2025 31 December 2024
Short term trade payables
Trade payables
- Related parties (Note 6) 1.315.243 2.101.944
- Other parties 22.431.735 22.549.154
23.746.978 24.651.098
Unearned interest income (-)
- Related parties (Note 6) (13.456) (13.852)
- Other parties (151.583) (191.284)
Total short term trade payables 23.581.939 24.445.962

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 8 – OTHER RECEIVABLES AND PAYABLES

30 June 2025 31 December 2024
Other short-term receivables from third parties
Receivables from public institutions 694.170 1.140.942
Deposits and guarantees given 16.075 22.743
Other receivables 31.807 19.385
Total short term other receivables 742.052 1.183.070
30 June 2025 31 December 2024
Short term other payables
Related parties (Note 6) 54.315 109.874
Other payables 15.923 -
70.238 109.874
30 June 2025 31 December 2024
Deferred revenue
Related parties (Note 6) 796.653 91.834
Other parties 1.535 2.200
798.188 94.034

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 9 – INVENTORIES

30 June 2025 31 December 2024
Raw materials 8.154.234 7.441.829
Work in process 230.033 197.813
Finished goods 3.656.640 3.898.489
Merchandise - 296
12.040.907 11.538.427
Provision for impairment on inventories (-) (114.348) (40.720)
11.926.559 11.497.707

As of 30 June 2025, the Company does not have inventories pledged as security for liabilities (31 December 2024: None).

NOTE 10 – PREPAID EXPENSES

30 June 2025 31 December 2024
Short-term prepaid expenses to third parties
Order advances given 113.261 78.382
Prepaid expenses 294.412 222.656
407.673 301.038
30 June 2025 31 December 2024
Long-term prepaid expenses to third parties
Advences given for purchase of fixed assets 413.799 449.909
Prepaid expenses 7.494 5.798
421.293 455.707

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 11 – PROPERTY, PLANT AND EQUIPMENT

1 January 30 June
2025 Additions Disposals Transfer 2025
Cost or revaluation
Land 17.297.570 - - - 17.297.570
Land improvements 324.299 - - - 324.299
Buildings 12.803.507 10.255 - 33.065 12.846.827
Leasehold improvements 5.543 - - - 5.543
Plants, machinery and equipment 36.896.335 832.166 (123.957) 121.931 37.726.475
Motor vehicles 12.274 - (202) - 12.072
Furniture and fixtures 1.819.290 9.839 (134) 10.007 1.839.002
Construction in progress (*) 446.905 467.247 - (165.003) 749.149
69.605.723 1.319.507 (124.293) - 70.800.937
Accumulated depreciation
Land improvements - 5.982 - - 5.982
Buildings - 261.116 - - 261.116
Leasehold improvements 4.189 163 - - 4.352
Plants, machinery and equipment 26.067.111 1.097.196 (123.190) - 27.041.117
Motor vehicles 9.183 580 (202) - 9.561
Furniture and fixtures 1.336.731 60.842 (134) - 1.397.439
27.417.214 1.425.879 (123.526) - 28.719.567
Net book value 42.188.509 42.081.370

(*) A significant portion of the construction in progress pertains to ongoing investments in machinery.

As of 30 June 2025, there are no mortgages on property, plant and equipment (31 December 2024: None).

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

1 January 30 June
2024 Additions Disposals Transfer 2024
Cost or revaluation
Land 11.938.652 - - - 11.938.652
Land improvements 267.788 - - - 267.788
Buildings 9.369.726 13.220 - 6.442 9.389.388
Leasehold improvements 4.308 1.236 - - 5.544
Plants, machinery and equipment 35.635.863 537.930 (161.320) 240.942 36.253.415
Motor vehicles 12.274 - - - 12.274
Furniture and fixtures 1.626.406 31.538 (3.213) 17.051 1.671.782
Construction in progress 2.943.515 1.124.799 - (264.435) 3.803.879
61.798.532 1.708.723 (164.533) - 63.342.722
Accumulated depreciation
Land improvements 6.289 - - 6.289
Buildings 309.091 - - 309.091
Leasehold improvements 3.900 109 - - 4.009
Plants, machinery and equipment 24.204.119 1.169.790 (150.271) - 25.223.638
Motor vehicles 7.738 731 - - 8.469
Furniture and fixtures 1.229.322 56.371 (3.180) - 1.282.513
25.445.079 1.542.381 (153.451) - 26.834.009
Net book value 36.353.453 36.508.713

Allocation of period depreciation and amortization expenses of tangible and intangible assets and right of use assets is as follows:

1 January - 1 January -
30 June
30 June
2025 2024
Cost of sales 1.261.702 1.473.261
Research and development expenses 318.725 301.656
Marketing, selling and distribution expenses 107.930 5.236
General administrative expenses 8.734 12.336
1.697.091 1.792.489

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 12 – RIGHT OF USE ASSETS

1 January 30 June
2025 Additions 2025
Cost
Land and buildings 1.623.150 136.672 1.759.822
Motor vehicles 362.864 149.988 512.852
1.986.014 286.660 2.272.674
Accumulated amortization
Land and buildings 877.033 35.142 912.175
Motor vehicles 268.173 42.387 310.560
1.145.206 77.529 1.222.735
Net book value 840.808 1.049.939
1 January 30 June
2024 Additions 2024
Cost
Land and buildings 1.631.062 127.250 1.758.312
Motor vehicles 359.508 - 359.508
1.990.570 127.250 2.117.820
Accumulated amortization
Land and buildings 598.390 58.707 657.097
Motor vehicles 261.587 3.214 264.801
859.977 61.921 921.898
Net book value 1.130.593 1.195.922

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 13 – INTANGIBLE ASSETS

1 January 30 June
2025 Additions 2025
Cost
Rights 176.331 - 176.331
Development cost 6.002.067 357.753 6.359.820
Other intangible assets 468.155 13.334 481.489
6.646.553 371.087 7.017.640
Accumulated amortization
Rights 175.630 82 175.712
Development cost 3.393.107 173.630 3.566.737
Other intangible assets 259.533 19.971 279.504
3.828.270 193.683 4.021.953
Net book value 2.818.283 2.995.687
1 January 30 June
2024 Additions 2024
Cost
Rights 176.332 - 176.332
Development cost 5.164.681 605.851 5.770.532
Other intangible assets 410.210 29.090 439.300
5.751.223 634.941 6.386.164
Accumulated amortization
Rights 175.453 90 175.543
Development cost 3.030.958 168.665 3.199.623
Other intangible assets 220.618 19.432 240.050
3.427.029 188.187 3.615.216
Net book value 2.324.194 2.770.948

Development costs, incurred by the Company on development projects relating to refrigerators, split air conditioners, washing machines, cookers and dish washers are capitalized as intangible assets since it is highly probable that it will derive economic benefit from these projects and the economic benefits and expenditures made during the development process can be reliably measured.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 14 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Provisions

30 June 2025 31 December 2024
Short term provisions
Provision for lawsuit risks 47.025 31.462
47.025 31.462

b) Guarantees received by the Company

30 June 2025 31 December 2024
Guarantee letters 415.621 481.054
Cheques and notes 650 758
Collaterals and pledges 78.031.970 52.838.450
78.448.241 53.320.262

Vestel Elektronik Sanayi ve Ticaret A.Ş., Vestel Mobilite Sanayi ve Ticaret A.Ş. and Vestel Ticaret A.Ş. has given guarantees to various banks on behalf of the Company for its forward contracts and bank borrowings.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 14 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Cont'd)

c) Collaterals, pledges and mortgages ("CPMB's") given by the Company are as follows:

USD EUR
CPMB's given by the Group ('000) ('000) TL TL Equivalent
30 June 2025
A. CPMB's given on behalf of its own legal entity 16.395 2.000 10.206.941 10.953.048
B. CPMB's given on behalf of fully consolidated
subsidiaries - - - -
C. CPMB's given on behalf of third parties for
ordinary course of business
- - - -
D. Total amount of other CPMB's given 500.742 - 277.439 20.213.180
i. Total amount of CPMB's given on behalf of the
parent company 380.820 - 155.076 15.316.434
ii. Total amount of CPMB's given to on behalf of
other group companies which are not in scope of
B and C. 119.922 - 122.363 4.896.746
iii.Total amount of CPMB's given on behalf of
third parties which are not in scope of C. - - - -
Total 517.137 2.000 10.484.380 31.166.228

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 Company.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 14 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Cont'd)

USD EUR
CPMB's given by the Group ('000) ('000) TL TL Equivalent
31 December 2024
A. CPMB's given on behalf of its own legal entity - 2.000 6.303.497 6.389.375
B. CPMB's given on behalf of fully consolidated
subsidiaries - - - -
C. CPMB's given on behalf of third parties for
ordinary course of business - - - -
D. Total amount of other CPMB's given 500.742 - 323.699 20.972.797
i. Total amount of CPMB's given on behalf of the
parent company 380.820 - 180.933 15.884.808
ii. Total amount of CPMB's given to on behalf of
other group companies which are not in scope of
B and C. 119.922 - 142.766 5.087.989
iii.Total amount of CPMB's given on behalf of
third parties which are not in scope of C. - - - -
Total 500.742 2.000 6.627.196 27.362.172

The Company has given collaterals to various banks on behalf of Vestel Elektronik Sanayi and Ticaret A.Ş. and Vestel Ticaret A.Ş. for their forward contracts and bank loans obtained.

Proportion of other CPMB's given by the Company to its equity 57% as of 30 June 2025. (31 December 2024: 53%).

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 15 – COMMITMENTS

As of the balance sheet date the Company has committed to realize exports amounting to USD 1.083.927 thousand (31 December 2024: USD 1.119.701 thousand) due to the export and investment incentive certificates obtained.

As of 30 June 2025 the Company has forward foreign currency purchase contract that amounts to EUR 25.559 thousand, PLN 7.302 thousand ,GBP 3.223 thousand and USD 402.914 thousand, SEK 25.366 thousand and 4.214.325 TL against forward foreign currency sales contract that amounts to EUR 358.965 thousand, GBP 3.620 thousand, PLN 6.781 thousand, USD 123.916 thousand and SEK 128.942 thousand (31 December 2024 : The Company has forward foreign currency sales contract of EUR 95.197 thousand, PLN 11.401 thousand, GBP 2.272 thousand, USD 383.643 thousand, SEK 96.848 thousand and 2.264.058 TL against forward foreign currency sales contract that amounts to EUR 351.173 thousand, GBP 10.584 thousand, PLN 17.853 thousand, USD 136.707 thousand and , SEK 177.648 thousand).

NOTE 16 – EMPLOYEE BENEFITS

Liabilities for employee benefits:

30 June 2025 31 December 2024
Due to personnel 309.339 304.576
Social security payables 174.884 155.193
484.223 459.769

NOTE 17 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS

a) Paid in capital

30 June 2025 31 December 2024
Shares of par value Kr 1 each
Issued share capital 1.600.000 1.600.000

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 17 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Cont'd)

As of 30 June 2025 and 31 December 2024, the shareholding structure is as follows:

Shareholding Amount
30 June 31 December 30 June 31 December
2025 2024 2025 2024
Vestel Elektronik Sanayi ve Ticaret AŞ 77,33'% 77,33'% 1.237.302 1.237.302
Stocks traded on BIST 22,67'% 22,67'% 362.698 362.698
100% 100% 1.600.000 1.600.000

b) Adjustments to share capital

Adjustment to share capital is the difference between the share capital recalculated to adjust the effects of inflation and historical share capital.

30 June 2025 31 December 2024
Adjustments to share capital 11.591.649 11.591.649

c) Restricted reserves ("Legal reserves")

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 June 2025 31 December 2024
Legal reserves 2.389.149 2.389.149

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 17 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Cont'd)

The differences arising as a result of converting the following inflation-adjusted amounts in the company's legal records into CPI-adjusted amounts within the scope of TAS 29 are accounted under the Retained Earnings item.

Differences Tracked in
PPI-Indexed Legal CPI Indexed Past Years
Records Amounts Profits/Losses
Capital Adjustment Gains/Losses 12.893.380 11.591.649 1.301.731
Appropriated Retained Earnings 3.220.161 2.389.149 831.012

d) Dividend distribution

In accordance with the provisions of the Turkish Commercial Code and the Tax Procedure Law, the Company paid TL 70.238 to the shareholders in cash as dividend for the 2024 accounting period on 24 July 2025 (gross TL 0,0439, net TL 0,0373 for each share with a nominal value of TL 1,00).

NOTE 18 – SALES

1 January - 1 January - 1 April -
30 June
1 April -
30 June 30 June 30 June
2025 2024 2025 2024
Domestic sales 11.485.747 15.697.807 6.443.615 7.859.437
Overseas sales 24.555.357 27.583.472 12.691.641 14.860.762
Gross sales 36.041.104 43.281.279 19.135.256 22.720.199
Sales discounts (-) (139.412) (147.260) (79.360) (43.349)
Net sales 35.901.692 43.134.019 19.055.896 22.676.850
Cost of sales (33.056.157) (37.719.745) (17.533.325) (20.391.401)
Gross profit 2.845.535 5.414.274 1.522.571 2.285.449

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 19 – OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES

a) Other Operating Income:

1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Credit finance gains arising from trading activities 39.048 262.868 397 118.409
Foreign exchange gains arising from trading activities 2.435.259 1.556.182 1.337.345 668.357
Other income 16.060 7.036 5.519 4.188
2.490.367 1.826.086 1.343.261 790.954
b)
Other Operating Expense:
1 January - 1 January - 1 April - 1 April -
30 June 30 June 30 June 30 June
2025 2024 2025 2024
Debit finance charges and interest income arising from
trading activities 350.711 1.221 350.340 478
Foreign exchange expenses arising from trading activities 3.480.715 2.823.889 1.788.016 826.621
Other expenses 210.939 66.878 150.691 39.436
4.042.365 2.891.988 2.289.047 866.535

NOTE 20 – FINANCIAL INCOME AND FINANCIAL EXPENSE

a) Financial income:

1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Foreign exchange gains 458.731 438.791 186.227 20.296
Gains on derivative financial instruments 825.594 255.492 398.517 141.202
Interest income 958.246 144.625 609.518 51.989
2.242.571 838.908 1.194.262 213.487

b) Financial expense:

1 January -
30 June
1 January -
30 June
1 April -
30 June
1 April -
30 June
2025 2024 2025 2024
Foreign exchange losses 361.820 301.535 204.312 57.233
Losses on derivative financial instruments 1.280.262 956.837 948.873 627.185
Interest expense 3.412.176 2.542.193 1.773.150 1.455.981
Commission and other finance expenses 308.045 380.955 92.446 171.132
5.362.303 4.181.520 3.018.781 2.311.531

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 21 – MONETARY (LOSS) / GAIN

Non-monetary items 30 June 2025
Balance sheet items (210.618)
Inventories 1.044.664
Prepaid expenses 46.833
Tangible and intangible assets 5.557.771
Right of use assets 125.535
Inflation adjustments on capital (1.885.225)
Other comprehensive income (expenses) that will not be reclassified to profit/(losses) (1.986.804)
Other comprehensive income (expenses) that will be reclassified to profit/(losses) (26.080)
Restricted reserves (341.434)
Prior years' profits or loss (2.745.878)
Profit and loss items 2.151.918
Sales (1.590.233)
Cost of sales 3.192.004
General administration expenses 37.394
Marketing expenses 138.974
Research and development expenses 162.846
Other income from operating activities (108.996)
Other expenses from operating activities 230.331
Financial income (99.077)
Financial expense 188.675
Net monetary position gains 1.941.300

NOTE 22 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)

30 June 2025 31 December 2024
Prepaid taxes (-) (1.762) (11.917)
Provision for corporation tax - net (1.762) (11.917)
Deferred tax liabilities - net (3.463.590) (3.659.781)

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 22 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

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;

  • Full taxpayer real persons,
  • For non-income and corporate taxpayers,
  • For those exempt from income tax,
  • Limited taxpayer real persons,
  • Limited taxpayers exempt from income tax,
  • Institutions exempt from corporate tax,
  • To limited taxpayer corporations or limited taxpayers exempt from corporate tax, except for those who obtain dividends through a place of business or permanent representative in Türkiye,

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.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 22 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

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.

For the periods 30 June 2025 and 30 June 2024, tax expenses recognized in the statement of comprehensive income are as follows;

1 January - 1 January -
30 June 2025 30 June 2024
Current period tax expense - (2.842)
Deferred tax income / (expense) (129.380) 14.733
Total tax income / (expense) (129.380) 11.891

Due to modernization, plant extension and investments incentive documents in Manisa Organized Industrial Zone, the Company has reduced rate of corporate tax advantage.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 22 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

Deferred tax assets and liabilities

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 June 31 December 30 June 31 December
2025 2024 2025 2024
Deferred tax assets/(liabilities)
Employment termination benefits (1.014.668) (1.080.382) 253.667 270.095
Invesment incentive - - 1.201.998 1.402.418
Şüpheli alacak karşılığı - - 174.853 204.008
Net difference between recorded values and tax bases of tangible and
intangible assets 23.853.408 24.225.229 (4.882.254) (4.975.209)
Net difference between registered values of stocks and tax bases 2.043.825 2.508.359 (510.956) (627.090)
Derivative financial instruments (960.980) 365.516 240.245 (91.379)
Other (235.428) (629.498) 58.857 157.376
(3.463.590) (3.659.781)

The Company'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.

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 for deductible temporary differences, tax losses and investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.

As of June 30, 2025, the expiration years of the deductible tax losses for which deferred tax assets have been recognized are as follows:

30 June 31 December
2025 2024
2029 699.412 816.031
699.412 816.031

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 22 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

Deferred tax assets and liabilities (Cont'd)

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.

As of 30 June 2025, the tax advantage amounting to TL 1.201.998 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 5.507.404 that the Company is entitled to use has not been recognized in deferred tax assets in accordance with the precautionary principle of accounting.

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.

Based on sensitivity analyses performed regarding the future utilization of investment incentives, it has been concluded that a 5% increase or decrease in the related estimates does not have a material 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 June 2025 30 June 2024
Opening balance, 1 January (3.659.781) (2.770.645)
Tax expense recognized in income statement (129.380) 14.733
Recognized in shareholders' equity 325.571 (163.041)
Deferred tax liabilities at the end of the period, net (3.463.590) (2.918.953)

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 23– EARNINGS / (LOSSES) PER SHARE

1 January - 1 January -
30 June 30 June
2024
2025
Net (loss) / income attributable to equity holders
of the parent (2.868.662) 903.539
Weighted number of ordinary shares with a Kr 1 of par value (hundred shares) 1.600.000.000 1.600.000.000
Losses per share (1,79) 0,56

NOTE 24 – DERIVATIVE INSTRUMENTS

30 June 2025 31 December 2024
Fair Value Fair Value
Contract Assets / Contract Assets /
amount (Liabilities) amount (Liabilities)
Derivative financial instruments:
Held for trading
Forward foreign currency transactions 5.587.977 28.631 4.338.620 25.574
Cash flow hedge
Forward foreign currency transactions 163.993 1.422 11.594.530 375.162
Derivative financial liabilities:
Held for trading
Forward foreign currency transactions 2.198.261 (32.359) 6.440.922 (30.998)
Cash flow hedge
Forward foreign currency transactions 13.828.640 (958.674) 329.915 (4.222)
21.778.871 (960.980) 22.703.987 365.516

NOTE 25 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

Foreign currency risk:

The Company 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 Company mainly prefers using foreign exchange forward contracts.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE
25

FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)
USD EUR Other (TL
30 June 2025 (Thousand) (Thousand) Equivalent) TL Equivalent
1. Trade receivables 25.588 187.071 443.612 10.179.393
2a. Monetary financial assets (including
cash and cash equivalents) 372 228 830 26.240
2b. Non-monetary financial assets - - - -
3. Other 72.538 14.189 - 3.544.031
4. Current assets (1+2+3) 98.498 201.488 444.442 13.749.664
5. Trade receivables - - - -
6a. Monetary financial assets - - - -
6b. Non-monetary financial assets - - - -
7. Other 7.389 7.478 - 642.175
8. Non-current assets (5+6+7) 7.389 7.478 - 642.175
9. Total assets (4+8) 105.887 208.966 444.442 14.391.839
10. Trade payables 253.581 193.023 292.337 19.400.500
11. Financial liabilities 15.492 16.633 - 1.393.390
12a. Other monetary liabilities - - - -
12b. Other non-monetary liabilities - - - -
13. Current liabilities (10+11+12) 269.073 209.656 292.337 20.793.890
14. Trade payables - 2.926 - 136.609
15. Financial liabilities - 6.422 - 299.852
16a. Other monetary liabilities - - - -
16b. Other non-monetary liabilities - - - -
17. Non-current liabilities (14+15+16) - 9.348 - 436.461
18. Total liabilities (13+17) 269.073 219.004 292.337 21.230.351
19. Off-balance sheet derivative instruments
net asset / (liability) position (19a+19b)(*) 278.998 (333.406) (448.528) (4.881.402)
19a. Hedged total assets 402.914 25.559 361.913 17.564.546
19b. Hedged total liabilities (123.916) (358.965) (810.441) (22.445.948)
20. Net foreign currency asset/ (liability)
position (9-18+19) 115.812 (343.444) (296.423) (11.719.914)
21. Net foreign currency monetary asset/
(liability) position
(=1+2a+3+5+6a+7-10-11-12a-14-15-16a) (163.186) (10.038) 152.105 (6.838.512)
22. Fair value of financial instruments used
in foreign currency hedging - - - (960.980)
23. Export 71.539 458.245 1.056.566 24.555.357
24. Import 241.562 56.490 27.785 11.339.080

(*) Consists of net asset/(liability) positions of off-balance sheet derivative instruments denominated in foreign currencies.

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 25 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

USD EUR Other (TL
31 December 2024 (Thousand) (Thousand) Equivalent) TL Equivalent
1. Trade receivables 43.277 214.998 377.588 11.437.106
2a. Monetary financial assets (including
cash and cash equivalents) 11.204 11.313 1.325 947.628
2b. Non-monetary financial assets - - - -
3. Other 70.925 1.330 - 2.976.485
4. Current assets (1+2+3) 125.406 227.641 378.913 15.361.219
5. Trade receivables - - - -
6a. Monetary financial assets - - - -
6b. Non-monetary financial assets - - - -
7. Other 14.113 8.875 - 961.329
8. Non-current assets (5+6+7) 14.113 8.875 - 961.329
9. Total assets (4+8) 139.519 236.516 378.913 16.322.548
10. Trade payables 259.615 208.998 34.926 19.720.618
11. Financial liabilities 22.239 18.055 - 1.692.330
12a. Other monetary liabilities - - 20 23
12b. Other non-monetary liabilities - - - -
13. Current liabilities (10+11+12) 281.854 227.053 34.946 21.412.971
14. Trade payables - 3.341 - 143.459
15. Financial liabilities - 5.570 - 239.150
16a. Other monetary liabilities - - - -
16b. Other non-monetary liabilities - - - -
17. Non-current liabilities (14+15+16) - 8.911 - 382.609
18. Total liabilities (13+17) 281.854 235.964 34.946 21.795.580
19. Off-balance sheet derivative instruments
net asset / (liability) position (19a+19b) 246.936 (255.976) (681.221) (1.620.155)
19a. Hedged total assets 383.643 95.197 507.874 20.439.932
19b. Hedged total liabilities (136.707) (351.173) (1.189.095) (22.060.087)
20. Net foreign currency asset/ (liability)
position (9-18+19) 104.601 (255.424) (337.254) (7.093.188)
21. Net foreign currency monetary asset/
(liability) position
(=1+2a+5+6a-10-11-12a-14-15-16a) (142.335) 552 343.967 (5.473.032)
22. Fair value of financial instruments used
in foreign currency hedging - - - 365.516
23. Export 152.583 1.091.070 1.411.440 60.105.043
24. Import 514.039 152.022 44.418 25.913.391

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 25 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

As of 30 June 2025 and 31 December 2024, sensitivity analysis of foreign exchange rate tables is presented below, secured portions include impact of derivative instruments.

Gain / Loss Equity
Foreign Foreign Foreign Foreign
exchange exchange exchange exchange
30 June 2025 appreciation depreciation appreciation depreciation
+/- 10% fluctuation of USD rate:
USD net asset / liability (650.441) 650.441 (650.441) 650.441
Secured portion from USD risk (-) (248.735) 248.735 960.996 (960.996)
USD net effect (899.176) 899.176 310.555 (310.555)
+/- 10% fluctuation of EUR rate:
EUR net asset / liability (48.621) 48.621 (48.621) 48.621
Secured portion from EUR risk (-) (100.359) 100.359 (1.413.445) 1.413.445
EUR net effect (148.980) 148.980 (1.462.066) 1.462.066
+/- 10% fluctuation of other currency rates:
Other currencies net asset / liability 15.211 (15.211) 15.211 (15.211)
Secured portion from other currency risk (-) (27.987) 27.987 (9.107) 9.107
Other currency net effect (12.776) 12.776 6.104 (6.104)
Total (1.060.932) 1.060.932 (1.145.407) 1.145.407

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 25 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

Gain / Loss Equity
Foreign Foreign Foreign Foreign
exchange exchange exchange exchange
31 December 2024 appreciation depreciation appreciation depreciation
+/- 10% fluctuation of USD rate:
USD net asset / liability (588.908) 588.908 (588.908) 588.908
Secured portion from USD risk (-) (123.631) 123.631 1.021.610 (1.021.610)
USD net effect (712.539) 712.539 432.702 (432.702)
+/- 10% fluctuation of EUR rate:
EUR net asset / liability (1.048) 1.048 (1.048) 1.048
Secured portion from EUR risk (-) (6.820) 6.820 (1.147.308) 1.147.308
EUR net effect (7.868) 7.868 (1.148.356) 1.148.356
+/- 10% fluctuation of other currency rates:
Other currencies net asset / liability 40.132 (40.132) 40.132 (40.132)
Secured portion from other currency risk (-) (53.593) 53.593 (20.374) 20.374
Other currency net effect (13.461) 13.461 19.758 (19.758)
Total (733.868) 733.868 (695.896) 695.896

NOTE 26– FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES)

Fair value hierarchy

The Company classifies the fair value measurement of each class of financial instruments according to the source, using the three level hierarchy, as follows:

Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)

Level 2: Other valuation techniques includes direct or indirect observable inputs

Level 3: Valuation techniques do not contain observable market inputs

(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2025 unless otherwise stated.)

NOTE 26– FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) (Cont'd)

Fair value hierarchy tables as of 30 June 2025 and 31 December 2024 are as follows:

30 June 2025 Level 1 Level 2 Level 3 Total
Financial assets / Liabilities
Derivative financial instruments - (960.980) - (960.980)
31 December 2024 Level 1 Level 2 Level 3 Total
Financial assets / Liabilities
Derivative financial instruments - 365.516 - 365.516

The Company's non-financial assets, calculated at fair value as of 30 June 2025 and 31 Dcember 2024 are as follows:

30 June 2025 Level 1 Level 2 Level 3 Total
Tangible Assets
Lands - 17.297.570 - 17.297.570
Buildings and land improvements - 12.904.028 - 12.904.028
31 December 2024 Level 1 Level 2 Level 3 Total
Tangible Assets
Lands - 17.297.570 - 17.297.570

NOTE 27– OTHER FINANCIAL LIABILITIES

The maturity date of other financial liabilities is 30 July 2030, with an interest rate of EURIBOR+ 2,5%.

NOTE 28– SUBSEQUENT EVENTS

None.

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