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VESTEL ELEKTRONİK SANAYİ VE TİCARET A.Ş.

Interim / Quarterly Report Aug 19, 2025

5976_rns_2025-08-19_14934cea-54f0-43c6-a286-def330e6354e.pdf

Interim / Quarterly Report

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

(ORIGINALLY ISSUED IN TURKISH)

CONTENTS PAGE
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS 1-4
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME 5-6
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY 7
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 8-10
NOTE 1 GROUP'S ORGANISATION AND NATURE OF OPERATIONS 11-12
NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 12-23
NOTE 3 INTERESTS IN OTHER ENTITIES 23-25
NOTE 4 SEGMENT REPORTING 25-28
NOTE 5 CASH AND CASH EQUIVALENTS 29
NOTE 6 FINANCIAL LIABILITIES 30-34
NOTE 7 RELATED PARTY DISCLOSURES 34-38
NOTE 8 TRADE RECEIVABLES AND PAYABLES 38-39
NOTE 9 OTHER RECEIVABLES AND PAYABLES 39-40
NOTE 10 INVENTORIES 41
NOTE 11 PREPAID EXPENSES 41
NOTE 12 INVESTMENTS RECOGNIZED BY EQUITY PICKUP METHOD 42
NOTE 13 PROPERTY, PLANT AND EQUIPMENT 43-45
NOTE 14 RIGHT OF USE ASSETS 46
NOTE 15 INTANGIBLE ASSETS 47
NOTE 16 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 48-50
NOTE 17 COMMITMENTS 50
NOTE 18 EMPLOYEE BENEFITS 51
NOTE 19 CAPITAL, RESERVES AND OTHER EQUITY ITEMS 51-53
NOTE 20 SALES 53
NOTE 21 OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES 54
NOTE 22 FINANCIAL INCOME AND EXPENSES 55
NOTE 23 MONETARY GAIN / LOSS 56
NOTE 24 TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 57-59
NOTE 25 EARNINGS PER SHARE /LOSS 59
NOTE 26 DERIVATIVE INSTRUMENTS 60
NOTE 27 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 60-64
NOTE 28 SUBSEQUENT EVENTS 65

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS 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 5 2.064.871 3.173.567
Financial Assets 92.478 107.615
Trade Receivables 17.360.336 23.580.212
Trade Receivables Due from Related Parties 7 1.494.340 1.338.223
Trade Receivables Due from Third Parties 8 15.865.996 22.241.989
Other Receivables 2.500.360 2.878.895
Other Receivables Due from Related Parties 7 1.158.979 1.214.132
Other Receivables Due from Third Parties 9 1.341.381 1.664.763
Derivative Financial Instruments 26 101.884 646.555
Inventories 10 30.070.783 32.047.311
Prepaid Expenses 2.204.024 1.865.703
Prepayments to Related Parties 7 786.683 595.566
Prepayments to Third Parties 11 1.417.341 1.270.137
Current Tax Assets 24 25.908 38.226
Other Current Assets 798.366 927.637
Other Current Assets Due from Third Parties 798.366 927.637
TOTAL CURRENT ASSETS 55.219.010 65.265.721
NON-CURRENT ASSETS
Financial Assets 495.107 593.514
Associates Accounted by Using the Equity Method 12 3.814.421 5.898.971
Trade Receivables 3.729 658
Trade Receivables Due from Third Parties 8 3.729 658
Other Receivables 54.365.964 51.295.091
Other Receivables Due from Related Parties 7 54.320.866 51.176.924
Other Receivables Due from Third Parties 9 45.098 118.167
Investment Properties 1.865.179 1.865.179
Property, Plant and Equipment 13 65.543.456 66.039.342
Right of Use Assets 14 3.903.457 2.859.954
Intangible Assets 15 8.252.060 7.898.183
Prepaid Expenses 1.142.792 1.872.308
Prepayments to Related Parties 7 418.945 909.799
Prepayments to Third Parties 11 723.847 962.509
TOTAL NON-CURRENT ASSETS 139.386.165 138.323.200
TOTAL ASSETS 194.605.175 203.588.921

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS 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 6 40.933.938 43.577.633
Short Term Borrowings from Third Parties 40.933.938 43.577.633
Bank Loans 6 38.552.558 38.711.700
Lease Liabilities 6 650.933 378.309
Issued Debt Instruments 6 1.730.447 4.487.624
Current Portion of Long Term Borrowings 7.684.553 6.069.415
Current Portion of Long Term Borrowings from
Third Parties 7.684.553 6.069.415
Bank Loans 6 3.243.931 3.302.597
Issued Debt Instruments 6 4.440.622 2.766.818
Other Financial Liabilities 1.877.113 1.162.984
Trade Payables 48.677.362 50.892.074
Trade Payables to Related Parties 7 434.095 189.515
Trade Payables to Third Parties 8 48.243.267 50.702.559
Payables Related to Employee Benefits 18 3.246.352 1.386.083
Other Payables 653.327 254.929
Other Payables to Third Parties 9 653.327 254.929
Derivative Financial Liabilities 26 1.140.791 252.025
Deferred Revenue 632.392 790.773
Deferred Revenue from Third Parties 9 632.392 790.773
Current Tax Liabilities 24 54.425 20.033
Current Provisions 4.560.715 4.304.806
Other Current Provisions 16 4.560.715 4.304.806
Other Current Liabilities 2.507.260 3.179.352
Other Current Liabilities to Third Parties 2.507.260 3.179.352
TOTAL CURRENT LIABILITIES 111.968.228 111.890.107

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS 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 27.539.145 22.207.953
Long Term Borrowings from Third Parties 27.539.145 22.207.953
Bank Loans 6 7.900.323 2.259.506
Lease Liabilities 6 1.405.138 1.063.248
Issued Debt Instruments 6 18.233.684 18.885.199
Other Financial Liabilities 299.875 239.173
Trade Payables 136.609 143.446
Trade Payables to Third Parties 8 136.609 143.446
Non-current Provisions 2.795.087 3.254.809
Non-current Provisions for Employee Benefits 2.227.483 2.554.584
Other Non-current Provisions 16 567.604 700.225
Deferred Tax Liabilities 24 4.848.833 4.694.100
Other Non-current Liabilities 12.137 13.827
Other Non-current Liabilities to Third Parties 12.137 13.827
TOTAL NON-CURRENT LIABILITIES 35.631.686 30.553.308
TOTAL LIABILITIES 147.599.914 142.443.415

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS 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
EQUITY Notes 30 June 2025 31 December 2024
Equity Attributable to Owners of Parent 38.941.031 52.193.606
Share Capital 19 335.456 335.456
Adjustments to Share Capital 26.364.187 26.364.187
Other Accumulated Comprehensive Income (Loss) that will not be Reclassified to Profit
or Loss 17.041.298 17.127.203
Gains (Losses) on Revaluation and Remeasurement 17.041.298 17.127.203
Revaluation of Property, Plant and Equipment 19.533.327 19.607.176
Gains (Losses) on Remeasurement of Defined Benefit Plans (2.492.029) (2.479.973)
Other Accumulated Comprehensive Income (Loss) that will be Reclassified to Profit or
Loss 2.119.548 2.719.078
Exchange Differences on Translation 2.711.903 2.497.938
Gains (Losses) on Hedge (644.111) 148.591
Gains (Losses) on Cash Flow Hedges (644.111) 148.591
Gains (Losses) on Revaluation and Reclassification 51.756 72.549
Financial Assets Measured of Fair Value through Other Compressive Income
(Loss) 51.756 72.549
Restricted Reserves Appropriated from Profits 2.111.035 2.111.035
Legal Reserves 19 2.111.035 2.111.035
Retained Earnings 3.610.496 16.394.922
Current Period Net Profit Or (Loss) (12.640.989) (12.858.275)
Non-controlling Interests 8.064.230 8.951.900
TOTAL EQUITY 47.005.261 61.145.506
TOTAL LIABILITIES AND EQUITY 194.605.175 203.588.921

Condensed consolidated interim financial statements for the period 1 January - 30 June 2025, were approved by the Board of Directors of Vestel Elektronik Sanayi ve Ticaret A.Ş. on 19 Agust 2025.

VESTEL ELEKTRONİK 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
Notes 2025 2024 2025 2024
PROFIT OR LOSS
Revenue 20 67.964.755 81.359.286 34.613.519 42.369.241
Cost of Sales (56.439.403) (62.387.718) (29.504.035) (32.355.131)
GROSS PROFIT 11.525.352 18.971.568 5.109.484 10.014.110
General Administrative Expenses (2.498.224) (2.349.393) (1.157.390) (1.100.148)
Marketing Expenses (10.826.032) (11.331.713) (5.490.366) (5.487.072)
Research and Development Expense (1.314.884) (1.564.331) (729.347) (674.784)
Other Income from Operating Activities 21 2.223.293 2.406.391 1.243.336 1.124.623
Other Expenses from Operating Activities 21 (8.414.206) (7.604.145) (4.159.534) (2.503.362)
(LOSS) / PROFIT FROM OPERATING ACTIVITIES (9.304.701) (1.471.623) (5.183.817) 1.373.367
Share of Net Profit of Associates Accounted for Using the Equity Method (2.191.736) (1.095.476) (1.144.377) (828.408)
(LOSS) / PROFIT BEFORE FINANCING INCOME (11.496.437) (2.567.099) (6.328.194) 544.959
Finance Income 22 11.569.032 8.823.928 5.539.740 2.837.134
Finance Costs 22 (19.288.507) (13.889.954) (9.814.530) (6.754.685)
Monetary Gain / (Loss) 23 6.865.458 7.709.282 3.499.193 2.290.465
PROFIT BEFORE INCOME TAX / LOSS (12.350.454) 76.157 (7.103.791) (1.082.127)
Tax (Expense) Income, Continuing Operations (940.861) (1.353.409) (561.904) (215.712)
Current Tax Expense 24 (5.952) (24.810) (5.154) (11.469)
Deferred Tax Income / (Loss) 24 (934.909) (1.328.599) (556.750) (204.243)
PROFIT FOR THE PERIOD (13.291.315) (1.277.252) (7.665.695) (1.297.839)
Profit / (loss), attributable to
Non-controlling Interests (650.326) 336.983 (406.642) 187
Owners of Parent 25 (12.640.989) (1.614.235) (7.259.053) (1.298.026)
Earnings per share with a Kr 1 of Par Value (TL) 25 (0,3768) (0,0481) (0,2164) (0,0387)

VESTEL ELEKTRONİK 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/ (LOSS) FOR THE PERIOD OTHER COMPREHENSIVE INCOME (13.291.315) (1.277.252) (7.665.695) (1.297.839)
Other Comprehensive Income that will
not be Reclassified to Profit or Loss (16.483) (20.368) (8.980) (5.452)
Gains (Losses) on Remeasurements of Defined Benefit Plans (21.977) (27.157) (11.973) (7.269)
Taxes Relating to Components of Other Comprehensive Income
that will not be Reclassified to Profit or Loss 5.494 6.789 2.993 1.817
Taxes Relating to Remeasurements of Defined Benefit Plans 5.494 6.789 2.993 1.817
Other Comprehensive Income that will
be Reclassified to Profit or Loss (816.524) 110.356 (551.956) 918.525
Foreign Exchange Differences on Translation 106.779 (449.427) 197.976 657.418
Gains (Losses) on Remeasuring or Reclassification Adjustments on Financial Assets Through
Other Comprehensive Income (27.724) (1.712) (8.805) (5.495)
Other Comprehensive Income (Loss) Related with Cash Flow Hedges (1.346.261) 748.089 (965.663) 353.637
Gains (Losses) on Cash Flow Hedges (1.346.261) 748.089 (965.663) 353.637
Share of Other Comprehensive Income of Associates and Joint Ventures Accounted
for Using Equity Method that will be Reclassified to Profit or Loss 107.186 - (19.081) -
Taxes Relating to Components of Other Comprehensive Income
that will be Reclassified to Profit or Loss
Taxes Relating to Gains (Losses) on Remeasuring or Reclassification Adjustments on Financial
343.496 (186.594) 243.617 (87.035)
Assets Through Other Comprehensive Income 6.931 428 2.201 1.374
Taxes Relating to Cash Flow Hedges 336.565 (187.022) 241.416 (88.409)
OTHER COMPREHENSIVE INCOME / (LOSS) (833.007) 89.988 (560.936) 913.073
TOTAL COMPREHENSIVE INCOME / (LOSS) (14.124.322) (1.187.264) (8.226.631) (384.766)
Total Comprehensive Income / (Loss) Attributable to
Non-controlling Interests (871.747) 447.867 (573.770) 47.053
Owners of Parent (13.252.575) (1.635.131) (7.652.861) (431.819)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE INTERIM 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.)

Gains (Losses)
Increases Other on Remeasuring Other
(Decreases) Accumulated Financial Assets Accumulated
on Gains (Losses) Comprehensive Measured of Comprehensive
Revaluation on Remeasure Income (Loss) Gains Reserve Of Fair Value Income (Loss) Restricted
Inflation of Property, ment of Gains (Losses) that will not be Exchange (Losses) on Gains or through Other Gains (Losses) on that will be Reserves Prior Years' Current Period Equity attribut
Issued Adjustments Plant and Defined Revaluations and Reclassified to Differences on Cash Flow Losses on Compressive Revaluation and Reclassified to Appropriated Profits or Net Profit Or Retained able to owners of Non-controll
Capital on Capital Equipment Benefit Plans Remeasurements Profit or Loss Translation Hedges Hedge Income Reclassification Profit or Loss From Profits Losses Loss Earnings parent ing interests Equity
Previous Period
1 January -30 June 2024
Opening Balance 335.456 26.364.187 15.229.912 (2.165.303) 13.064.609 13.064.609 2.711.208 (278.351) (278.351) 102.474 102.474 2.535.331 2.111.035 13.864.864 2.441.928 16.306.792 60.717.410 8.112.588 68.829.998
Transfers - - (75.006) - (75.006) (75.006) - - - - - - - 2.516.934 (2.441.928) 75.006 - - -
Total Comprehensive Income /(Loss) - - - (17.974) (17.974) (17.974) (449.427) 447.789 447.789 (1.284) (1.284) (2.922) - - (1.614.235) (1.614.235) (1.635.131) 447.867 (1.187.264)
Profit (Loss) for the period - - - - - - - - - - - - - - (1.614.235) (1.614.235) (1.614.235) 336.983 (1.277.252)
Other Comprehensive Income (Loss)
- - - (17.974) (17.974) (17.974) (449.427) 447.789 447.789 (1.284) (1.284) (2.922) - - - - (20.896) 110.884 89.988
Dividends Paid - - - - - - - - - - - - - - - - - (361.429) (361.429)
Closing Balance 335.456 26.364.187 15.154.906 (2.183.277) 12.971.629 12.971.629 2.261.781 169.438 169.438 101.190 101.190 2.532.409 2.111.035 16.381.798 (1.614.235) 14.767.563 59.082.279 8.199.026 67.281.305
Current Period
1 January -30 June 2025 335.456 26.364.187 19.607.176 (2.479.973) 17.127.203 17.127.203 2.497.938 148.591 148.591 72.549 72.549 2.719.078 2.111.035 16.394.922 (12.858.275) 3.536.647 52.193.606 8.951.900 61.145.506
Opening Balance - - (73.849) - (73.849) (73.849) - - - - - - - (12.784.426) 12.858.275 73.849 - - -
Transfers
Total Comprehensive Income/(Loss) - - - (12.056) (12.056) (12.056) 213.965 (792.702) (792.702) (20.793) (20.793) (599.530) - - (12.640.989) (12.640.989) (13.252.575) (871.747) (14.124.322)
Profit (Loss) for the period - - - - - - - - - - - - - - (12.640.989) (12.640.989) (12.640.989) (650.326) (13.291.315)
Other Comprehensive Income (Loss)
-
-
-
-
-
-
(12.056)
-
(12.056)
-
(12.056)
-
- 213.965 (792.702) (792.702)
-
- (20.793)
-
(20.793)
-
(599.530)
-
-
-
-
-
-
-
-
-
- (611.586) (221.421)
(15.923)
(833.007)
(15.923)
Dividends Paid
Closing Balance
335.456 26.364.187 19.533.327 (2.492.029) 17.041.298 17.041.298 2.711.903 (644.111) (644.111) 51.756 51.756 2.119.548 2.111.035 3.610.496 (12.640.989) (9.030.493) 38.941.031 8.064.230 47.005.261

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

7

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 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
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES 4.037.512 (9.611.071)
Profit for the Period/ (Loss) (13.291.315) (1.277.252)
Profit (Loss) from Continuing Operations (13.291.315) (1.277.252)
Adjustments to Reconcile Profit for the Period/ (Loss) 5.842.046 (2.550.029)
Adjustments for Depreciation and Amortisation Expense 13 3.813.833 3.931.081
Adjustments for Impairment Loss
(Reversal of Impairment Loss) 260.773 29.078
Adjustments for Impairement Loss
(Reversal of Impairment Loss) of Receivables 8,9 (10.651) (25.199)
Adjustments for Impairment Loss
(Reversal of Impairment Loss) of Inventories 10 271.424 54.277
Adjustments for Provisions 1.510.696 1.526.013
Adjustments for (Reversal of) Provisions Related with
Employee Benefits 630.208 405.694
Adjustments for (Reversal of) Lawsuit and/or
Penalty Provisions 97.789 25.262
Adjustments for (Reversal of) Warranty Provisions net 837.449 692.043
Adjustments for (Reversal of) Other Provisions (54.750) 403.014
Adjustments for Interest (Income) Expenses 5.135.455 3.356.316
Adjustments for Interest Income 22 (3.224.492) (3.186.213)
Adjustments for Interest Expense 22 8.359.947 6.542.529
Adjustments for Unrealised Foreign
Exchange Losses (Gains) (1.564.750) (3.168.961)
Adjustments for Fair Value Losses (Gains) 87.176 511.121
Adjustments for Fair Value (Gains) Losses on
Derivative Financial Instruments 87.176 511.121
Adjustments for Gains From Investments Accounted for Using Equity Method 2.191.736 1.095.476
Adjustments for Retained Earnings of Subsidiaries 2.191.736 1.095.476
Adjustments for Tax (Income) Expenses 940.861 1.353.409
Adjustments for Losses (Gains) on Disposal of Non-Current Assets (26.274) 74.970
Adjustments for Losses (Gains) Arised from Sale of Tangible Assets (26.274) 74.970
Other Adjustments to Reconcile Profit (Loss) 5 4 7
Monetary Gain / (Loss) (6.507.464) (11.258.539)

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 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 12.088.161 (5.506.739)
Decrease (Increase) in Financial Asset 113.544 82.912
Adjustments for Decrease (Increase) in Trade Accounts Receivable 3.000.099 (4.248.121)
Decrease (Increase) in Trade Accounts Receivables from Related Parties (364.732) (455.976)
Decrease (Increase) in Trade Accounts Receivables from Third Parties 3.364.831 (3.792.145)
Adjustments for Decrease (Increase) in Other Receivables Related with Operations 162.812 223.176
Decrease (Increase) in Other Third Party Receivables Related with Operations 162.812 223.176
Adjustments for Decrease (Increase) in Inventories 1.705.104 (2.891.616)
Decrease (Increase) in Prepaid Expenses (536.274) 27.997
Adjustments for Increase (Decrease) in Trade Accounts Payable 5.445.168 (585.105)
Increase (Decrease) in Trade Accounts Payables to
Related Parties 285.247 214.626
Increase (Decrease) in Trade Accounts Payables to Third Parties 5.159.921 (799.731)
Increase (Decrease) in Employee Benefit Liabilities 2.025.506 471.266
Adjustments for Increase (Decrease) in Other Operating Payables 456.573 466.505
Increase (Decrease) in Other Operating Payables to Third Parties 456.573 466.505
Increase (Decrease) in Deferred Revenue (47.640) 1.519.374
Other Adjustments for Other Increase (Decrease) in Working Capital (236.731) (573.127)
Decrease (Increase) in Other Assets Related with Operations (8.418) 193.163
Increase (Decrease) in Other Payables Related with Operations (228.313) (766.290)
Cash Flows from (used in) Operations 4.638.892 (9.334.020)
Payments Related with Provisions for Employee Benefits (593.665) (251.752)
Income Taxes Refund (Paid) 24 (7.715) (25.299)

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS 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
2024
Notes 2025
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (4.644.435) (5.112.900)
Cash Flows Used in Obtaining Control of Subsidiaries or Other Businesses - (284.330)
Proceeds from Sales of Property, Plant, Equipment and Intangible Assets 29.459 (49.083)
Proceeds from Sales of Property, Plant and Equipment 29.459 (49.083)
Purchase of Property, Plant, Equipment and Intangible Assets (3.211.868) (4.127.969)
Purchase of Property, Plant and Equipment 13 (2.042.504) (2.295.523)
Purchase of Intangible Assets 15 (1.169.364) (1.832.446)
Cash Advances and Loans (1.462.026) (651.518)
Cash Advances and Loans Made to Related Parties (1.563.135) (253.840)
Cash Advances and Loans Made to Third Parties 101.109 (397.678)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES (48.233) 16.592.286
Proceeds from Borrowings 6 36.365.258 60.695.949
Proceeds from Loans 32.616.748 34.344.377
Proceeds from Issued Debt Instruments 3.748.510 26.351.572
Repayments of Borrowings (28.719.845) (37.332.483)
Loan Repayments 6 (25.538.141) (34.039.541)
Issued bonds repayments 6 (3.893.000) (2.058.142)
Cash Outflows from Other Financial Liabilities 711.296 (1.234.800)
Changes of Lease Liabilities (434.920) (199.849)
Interest Paid (7.272.481) (6.618.247)
Interest Received 13.755 46.916
EFFECT OF MONETARY GAIN / LOSS ON CASH AND CASH EQUIVALENTS (514.461) (822.441)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES (1.169.617) 1.045.874
Effect of Exchange Rate Changes on Cash and Cash Equivalents 60.925 55.932
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1.108.692) 1.101.806
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 5 3.173.541 3.865.411
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 2.064.849 4.967.217

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

(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 – GROUP'S ORGANISATION AND NATURE OF OPERATIONS

Vestel Elektronik Sanayi ve Ticaret Anonim Şirketi ("Vestel Elektronik" or "the Company") and its subsidiaries (together "the Group"), mainly produce and sell a range of brown goods and white goods.

The Company's head office is located at Levent 199, Büyükdere Caddesi No: 199, 34394 Şişli / Istanbul. The Group's production facilities are located in Manisa Organized Industrial Zone, İzmir Aegean Free Zone.

The ultimate controller of the Company is Zorlu Holding.

Vestel Elektronik is registered to Capital Market Board ("CMB") and its shares have been quoted to Borsa Istanbul ("BİST") since 1990. As of 30 June 2025, 47,23% of the Company's shares are publicly traded (31 December2024: 47,23%).

As of 30 June 2025 the number of personnel employed at Group is 16.948 (31 December 2024: 19.509).

The Company's subsidiaries and associates are as follows:

Subsidiaries Country Nature of operations
Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. Turkey Production
Vestel Mobilite Sanayi ve Ticaret A.Ş. (*) Turkey Production
Vestel Ticaret A.Ş. Turkey Sales
Vestel CIS Ltd. Russia Sales
Vestel Electronica SRL Romania Sales
Vestel Holland B.V. Iberia Branch Office Spain Sales
Vestel France SA France Sales
Vestel Holland BV Holland Sales
Vestel Holland B.V. Germany Branch Office Germany Sales
Cabot Communications Ltd. UK Software
Vestel UK Ltd. UK Sales
Vestel Holland B.V. UK Branch Office UK Sales
Vestek Elektronik Araştırma Geliştirme A.Ş. Turkey Software
Vestel Trade Ltd. Russia Sales
Vestel Electronics Shanghai Trading Co. Ltd China Service
Intertechnika LLC Russia Service
Vestel Central Asia LLP Kazakhstan Sales
Vestel Ventures Ar-ge A.Ş. Turkey Service
Vestel Holland B.V. Poland Branch Office Poland Sales
Vestel Electronics Gulf DMC UAE Sales
Vestel U.S.A. United States Sales
Levent Baza Gayrimenkul Yatırım A.Ş. Turkey Real estate
Vestel Trade India Private Ltd. India Sales
Vestel Hong Kong Ltd. China Sales
Gruppo Industriale Vesit S.p.A. (*) Italy Sales
Cylinda AB Sweden Sales

(*) It has been resolved that wholly owned subsidiary Vestel Holland B.V., based in the Netherlands, shall acquire the entire 120.000 shares, each with a nominal value of EUR 1, of Gruppo Industriale Vesit S.p.A. with all rights and liabilities for a total price of EUR 120.000, to be paid in cash. Gruppo Industriale Vesit S.p.A. is established under Italian law with its registered address at Via Polidoro da Caravaggio n6, Milan, Italy, and registered with trade number 06681090962 REA MI-1907603, currently engaged in the sale and distribution of Vestel products and services in Italy. A share purchase agreement has been executed for this purpose, and the share transfer was completed on January 9, 2025. This statement was translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.

(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 – GROUP'S ORGANISATION AND NATURE OF OPERATIONS (Cont'd)

Associates Country Nature of operations
Lentatek Uzay Havacılık ve Teknoloji A.Ş. Turkey Production/ Sales
Aydın Yazılım Elektronik ve Sanayi A.Ş. Turkey Software
Meta Nikel Kobalt Madencilik San. ve Tic. A.Ş. ("Meta") Turkey Mining
Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. ("TOGG") Turkey Automotive

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 ("IAS" / "IFRS") and its addendum and interpretations ("IFRIC") issued by the Public Oversight Accounting and Auditing Standards Authority ("POAASA or POA") Turkish Accounting Standards Board.

The Group and its subsidiaries operating in Turkey maintains its accounting records and prepares its statutory financial statements in accordance with the Turkish Commercial Code ("TCC"), tax legislation and the uniform chart of accounts issued by the Ministry of Finance. The consolidated financial statements, except for land, buildings and land improvements and the financial assets and liabilities presented with their fair values, are maintained under historical cost conversion in TL.

The Group prepared its condensed interim financial statements for the period ended 30 June 2025 in accordance with ("IAS") 34 "Interim Financial Reporting" in the framework of the Communiqué Serial II, No: 14.1, and its related announcement. The condensed interim financial statements and its accompanying notes are presented in compliance with the format recommended by CMB including its mandatory information.

Enterprises are free to prepare interim financial statements as a full set or as a summary in accordance with the IAS 34 standard. In this context, the Group has chosen to prepare summary financial statements in the interim periods. Financial statements are presented in accordance with the formats determined in the "Announcement on IFRS Taxonomy" published by the POA and in the Financial Statement Samples and User Guide published by the CMB.

(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)

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 at December 31, 2024.

Consolidated subsidiaries operating in foreign countries have prepared their financial statements in accordance with the laws and regulations of the countries in which they operate with the required adjustments and reclassifications reflected in accordance with CMB Financial Reporting Standards. These financial statements are based on the statutory records which are maintained under historical cost conversion, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with the IFRS.

2.1.2 Financial reporting in high-inflation economies

Since the cumulative three-year inflation rate has risen to above 100% as of March 2022, based on the Turkish nation-wide consumer price indices announced by the Turkish Statistical Institute ("TURKSTAT"), Turkey should be considered a hyperinflationary economy under ASon Economies" Standard, based on the announcement made by the POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published. In accordance with the said standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date, and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for the purpose of comparison in the financial statements of the previous period. For this reason, the group has presented its financial statements as of 30 June 2024 and December 31, 2024, on the basis of purchasing power as of June 30, 2025.

The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index of Turkiye (CPI) published by the Turkish Statistical Institute ("TURKSTAT").

(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)

2.1.2 Financial reporting in high-inflation economies (Cont'd)

As of 30 June 2025, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

Date Index Correction Coefficient Three-Year Compound
Inflation Rate
30 June 2025 3.132,17 1,000 220%
31 December 2024 2.684,55 1,1667 291%
30 June 2024 2.319,29 1,3505 324%

The main elements of the Group's adjustment for financial reporting purposes in high-inflation economies are as follows:

  • Current period financial statements prepared in TL are expressed in purchasing power at the balance sheet date, and amounts from previous reporting periods are also expressed by adjusting according to the purchasing power at the end of the reporting period.
  • Monetary assets and liabilities are not adjusted as they are currently expressed in current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of nonmonetary items exceed the recoverable amount or net realizable value, the provisions of IAS 36 and IAS 2 were applied, respectively.
  • Non-monetary assets and liabilities and equity items that are not expressed in current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
  • All items included in the statement of comprehensive income, except for non-monetary items in the balance sheet that have an impact on the statement of comprehensive income, are indexed with coefficients calculated over the periods in which the income and expense accounts are first reflected in the financial statements.
  • The effect of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary position gains/(losses) account in the consolidated income statement.

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

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

2.1 Basis of presentation (Cont'd)

2.1.3 Currency used

i) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("functional currency"). The consolidated financial statements are prepared and presented in Turkish Lira ("TL"), which is the functional currency of the parent company.

ii) Transactions and balances

Transactions in foreign currencies have been translated into functional currency at the exchange rates prevailing at the date of the transaction. Exchange gains or losses arising from the settlement and translation of monetary assets and liabilities denominated in foreign currency at the exchange rates prevailing at the balance sheet dates are included in consolidated comprehensive income, except for the effective portion of foreign currency hedge of cash flow and net investment which are included under shareholders' equity.

iii)Translation of financial statements of subsidiaries operating in foreign countries

Assets and liabilities of subsidiaries operating in foreign countries are translated into TL at the exchange rates prevailing at the balance sheet dates. Comprehensive income items of those subsidiaries are translated into TL using average exchange rates for the period (if the average exchange rates for the period do not reasonably reflect the exchange rate fluctuations, transactions are translated using the exchange rates prevailing at the date of the transaction)

For subsidiaries and associates whose functional currency is not TL, differences arising between the average exchange rates and the exchange rates at the balance sheet date are recognized in 'currency translation reserve' under equity.

The assets and liabilities of subsidiaries operating in foreign countries are translated into TL at the exchange rates ruling at the balance sheet date. Items of comprehensive income of these subsidiaries are translated into TL quarterly at average exchange rates (where average exchange rates do not reasonably reflect fluctuations in foreign exchange rates, transactions are translated at the rates of exchange prevailing at the dates of the transactions) and then restated in accordance with IAS 29 using the adjustment factor derived from the Turkish Consumer Price Index ('CPI') published by TURKSTAT.

(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)

2.1.3 Currency used (Cont'd)

Exchange differences arising from the use of average and balance sheet date exchange rates are included in 'foreign currency translation differences' under equity.

2.1.4 Basis of consolidation

The consolidated financial statements include the accounts of the Company, and its subsidiaries from the date on which the control is transferred to the Group until the date that the control ceases. The financial statements of the companies included in the scope of consolidation have been prepared as of the date of the consolidated financial statements and have been prepared in accordance with IFRS and accounting policies applied by the Group.

a) Subsidiaries

The Group has power over an entity when it has existing rights that give it the current ability to direct the relevant activities, i.e. the activities that significantly affect the entity's returns. On the other hand, the Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

In order to be consistent with accounting policies accepted by the Group, accounting policies of the subsidiaries are modified where necessary.

The balance sheet and statement of income of the subsidiaries are consolidated on a line-by-line basis and all material intercompany payable /receivable balances and sales / purchase transactions are eliminated. The carrying value of the investment held by Vestel Elektronik and its subsidiaries is eliminated against the related shareholders' equity.

The non-controlling share in the net assets and results of subsidiaries for the period are separately classified as "non-controlling interest" in the consolidated statements of comprehensive income and the consolidated statements of changes in shareholders' equity.

As of the balance sheet date, consolidated companies and the proportion of ownership interest of Vestel Elektronik in these subsidiaries are disclosed in note 3.

Financial assets in which the Group has direct or indirect voting rights equal to or above 50% which are immaterial to the Group financial results or over which a significant influence is not exercised by the Group are carried at cost less any provisions for impairment.

(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)

2.1.4 Basis of consolidation (Cont'd)

b) Investments in associates

Investments in associates are accounted for by the equity method and are initially recognized at cost. These are entities in which the Group has an interest which is more than 20% and less than 50% of the voting rights or over which a significant influence is exercised. Unrealized gains on transactions between the Group and its associate are eliminated to the extent of the Group's interest in the associates, whereas unrealized losses are eliminated unless they do not address any impairment of the asset transferred. Net increase or decrease in the net asset of associates is included in the consolidated statements of comprehensive income in regards with the Group's share.

The Group ceases to account the associate using the equity method if it loses the significant influence or the net investment in the associate becomes nil, unless it has entered to a liability or a commitment. After the Group's interest in the associates becomes nil, additional losses are provided for, and a liability recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports profits, the Group resumes including its share of those profits only after its share of the profits equals the share of net losses not recognized.

The carrying amounts of the investments accounted for using the equity method are reviewed whether there is any indication of impairment at each reporting date. If such an indicator exists, the recoverable amount of the asset is estimated.

The recoverable amount of the investments accounted for using the equity method refers to the higher of value-in-use or fair value less cost to sell. Value-in-use is the present value of future cash flows expected to be generated from an asset or cash generating unit.

If the carrying amount of the investments accounted for using the equity method exceeds the recoverable amount, the impairment is accounted for. Impairments are recognized in profit and loss accounts. Impairments are recorded in the statement of profit or loss and other comprehensive income.

(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)

2.1.4 Basis of consolidation (Cont'd)

b) Investments in associates (Cont'd)

In investments accounted for using the equity method, impairments allocated in previous periods are reevaluated in each reporting period in the event that impairment decreases or there are indicators that impairment is not valid. Impairment is reversed in case of changes in the estimates used when determining recoverable amount. The increase in the carrying amount of the investments due to the reversal of the impairment loss is accounted in such a way that it does not exceed the carrying amount determined if the impairment loss has not been included in the consolidated financial statements in the previous years.

Financial assets in which the Group's total direct and indirect shareholding is below 20% or in which the Group does not have significant influence, traded in organized markets and whose fair value can be determined reliably are financial assets whose fair value difference is reflected in other comprehensive income in the consolidated financial statements. are classified as financial assets.

Shares of shareholders with non-controlling interests in the net assets and operating results of Subsidiaries are shown as "non-controlling interests" in the consolidated statement of financial position and consolidated statement of profit or loss.

2.2 Netting / offsetting

All items that are significant in terms of content and amount are shown separately in the financial statements, even if they are similar in nature. Amounts that are not material are shown by aggregating items that are similar in terms of their principles or functions. As a result of the nature of the transaction and event requiring offsetting, showing this transaction and event over their net amounts or monitoring the assets at their amounts after deducting impairment is not considered a violation of the non-offsetting rule. Income obtained by the Group as a result of transactions carried out in the normal course of business, other than the income defined in the section titled "Revenue", are shown at their net value, provided that they comply with the essence of the transaction or event.

(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)

2.3 Comparative information

Financial statements of the Group have been prepared comparatively with the preceding financial period, in order to enable determination of trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to changes in presentation in the financial statements.

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

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 8.634.713 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".

2.4 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.

(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 Amendments in Turkey Financial Reporting Standards

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

Amendment to IAS 21 – Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange 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; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). 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:

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

(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 Amendments in Turkey Financial Reporting Standards (Cont'd)

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

  • IFRS 1 First-time Adoption of International Financial Reporting Standards;
  • IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
  • 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 naturedependent 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.

(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 Amendments in Turkey Financial Reporting Standards (Cont'd)

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

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:

• 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.

2.6 Going Concern

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

2.7 Summary of significant accounting policies

Summary financial statements for the interim period ending on June 30, 2025 have been prepared in accordance with the IAS 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 December 31, 2024.

2.8 Significant accounting estimates and assumptions

The frequency of revaluations depends on the change in the fair value of the items of property, plant and equipment and investment property. 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.

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

(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)

2.8 Significant accounting estimates and assumptions (Cont'd)

In this context, as a result of the assessments made by the Group 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.

On the other hand, as a result of the assessments made by the Group 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 31 March and the CPI change in the related interim period.

NOTE 3 – INTERESTS IN OTHER ENTITIES

Subsidiaries:

As of 30 June 2025 and 31 December 2024 the Group's significant subsidiaries are as follows:

30 June 2025 31 December 2024
Functional Voting Effective Voting Effective
Consolidated subsidiaries Currency rights ownership rights ownership
Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. TL 77,3 77,3 77,3 77,3
Vestel Mobilite Sanayi ve Ticaret A.Ş. TL 100 100 100 100
Vestel Ticaret A.Ş. TL 100 100 100 100
Vestel CIS Ltd. RUB 100 100 100 100
Vestel Holland B.V. Iberia Branch Office EUR 100 100 100 100
Vestel France SA EUR 100 100 100 100
Vestel Holland B.V. EUR 100 100 100 100
Vestel Holland B.V. Germany Branch Office EUR 100 100 100 100
Cabot Communications Ltd. GBP 90,8 90,8 90,8 90,8
Vestel UK Ltd. GBP 100 100 100 100
Vestel Holland B.V. UK Branch Office GBP 100 100 100 100
Vestek Elektronik Araştırma Geliştirme A.Ş. TL 100 100 100 100
Vestel Trade Ltd. RUB 100 100 100 100
Intertechnika LLC RUB 99,9 99,9 99,9 99,9
Vestel Central Asia LLP KZT 100 100 100 100
Vestel Holland B.V. Poland Branch Office PLN 100 100 100 100
Vestel Electronics Gulf DMC AED 100 100 100 100
Vestel Electronics Shanghai Trading Co. Ltd. CNY 100 100 100 100
Vestel Electronica SRL RON 100 100 100 100
Vestel USA USD 100 100 100 100
Vestel Ventures Ar-ge A.Ş. USD 100 100 100 100
Levent Baza Gayrimenkul Yatırım A.Ş. TL 100 100 100 100
Vestel Trade India Private Ltd. INR 100 100 100 100
Vestel Hong Kong Ltd. CNY 100 100 100 100
Gruppo Industriale Vesit S.p.A. EUR 100 100 - -
Cylinda AB SEK 100 100 100 100

(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 – INTERESTS IN OTHER ENTITIES (Cont'd)

Financial information of Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. which is not wholly owned by the Group and has significant non-controlling interests is as follows.

30 June 2025 31 December 2024
Accumulated non-controlling interests 8.064.230 8.951.900
As of June 30, 2025 - 2024 Comprehensive income /
(expense) attributable to non-controlling interests (871.747) 447.867

The financial statements of the subsidiary is adjusted to include the effects of revaluation of land, buildings and land improvements in accordance with the Group's accounting policies applied in preparation of the consolidated financial statements.

Condensed balance sheet:

30 June 2025 31 December 2024
Current assets 37.680.356 36.650.658
Non-current assets 46.798.364 46.854.762
Current liabilities (42.597.984) (37.452.788)
Non-current liabilities (6.308.481) (6.564.765)
Net assets 35.572.255 39.487.867

Condensed statement of comprehensive income:

1 January - 1 January -
30 June
30 June
2025 2024
Net sales 35.901.692 43.134.019
Income / (loss) before tax (2.739.282) 891.648
Tax benefit / (expense) (129.380) 11.891
Net income / (loss) for the period (2.868.662) 903.539
Total comprehensive income / (expense) (3.845.374) 1.392.663

(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 – INTERESTS IN OTHER ENTITIES (Cont'd)

Condensed statement of cash flows:

1 January - 1 January -
30 June 2025 30 June 2024
Operating activities:
Changes in working capital 2.332.436 158.719
Net cash provided by operating activities 1.728.154 1.283.189
Investing activities:
Net cash used in investing activities (4.910.169) 508.443
Financing activities:
Proceeds from bank borrowings 14.244.167 4.952.013
Repayment of bank borrowings (8.877.000) (3.355.142)
Net cash (used in) / provided by financing activities 2.175.829 (2.604.445)
Cash and cash equivalents at the beginning of the period 1.274.215 1.228.891
Cash and cash equivalents at the end of the period 85.927 172.384

Other financial information of Group's subsidiaries are not presented on the grounds of materiality.

NOTE 4 - SEGMENT REPORTING

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

Considering the fact that the Group's risks and rate of returns are dissimilar between product types and between geographical areas, The Group management uses industrial segments as primary reporting format and geographical segments as secondary reporting format.

(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 - SEGMENT REPORTING (Cont'd)

Industrial segments

Consumer
electronics, Household
mobility and other appliances Total
1 January -30 June 2025
Revenue 20.117.825 47.846.930 67.964.755
Cost of sales (18.382.216)
(38.057.187)
(56.439.403)
Gross profit 1.735.609 9.789.743 11.525.352
Depreciation and amortization 1.966.179 1.847.654 3.813.833
1 January -30 June 2024
Revenue 28.307.114
53.052.172
81.359.286
Cost of sales (24.368.701) (38.019.017) (62.387.718)
Gross profit 3.938.413
15.033.155
18.971.568
Depreciation and amortization 2.133.597 1.797.484 3.931.081

(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 - SEGMENT REPORTING (Cont'd)

Industrial segments (Cont'd)

Consumer
electronics, Household
mobility and other appliances Total
1 April -30 June 2025
Revenue 10.551.695 24.061.824 34.613.519
Cost of sales (10.316.296)
(19.187.739)
(29.504.035)
Gross profit 235.399 5.109.484
Depreciation and amortization 924.889 806.870 1.731.759
1 April -30 June 2024
Revenue 14.870.931 27.498.310 42.369.241
Cost of sales (12.112.480)
(20.242.651)
(32.355.131)
Gross profit 2.758.451 7.255.659 10.014.110
Depreciation and amortization 826.165 817.123 1.643.288

Section Investment Expenditure:

Consumer
electronics, Household
mobility and other appliances Total
1 January -30 June 2025 1.359.553 1.852.315 3.211.868
1 January -30 June 2024 1.664.749 2.463.220 4.127.969

(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 - SEGMENT REPORTING (Cont'd)

Revenue by Geographic Location:

1 January - 1 January - 1 April - 1 April -
30 June 30 June 30 June 30 June
2025 2024 2025 2024
Turkey 31.571.642 37.964.580 16.364.878 18.555.597
Europe 34.732.485 40.485.081 17.157.381 22.307.223
Other 9.105.353 9.954.473 4.883.660 4.765.810
Gross segment sales 75.409.480 88.404.134 38.405.919 45.628.630
Discounts (-) (7.444.725) (7.044.848) (3.792.400) (3.259.389)
Revenue 67.964.755 81.359.286 34.613.519 42.369.241

The amount of export for the period 1 January - 30 June 2025 is TL 43.837.838 (1 January – 30 June 2024: TL 50.439.554). Export sales are denominated in EUR, USD and other currencies as 69%, 23%, and 8% of total exports respectively. (1 January – 30 June 2024: 72% EUR, 19 % USD, 9 % other)

The carrying value of segment assets and costs incurred in order to obtain these assets are not separately disclosed since significant portion of assets of the Group are located in Turkey.

(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 - CASH AND CASH EQUIVALENTS

30 June 2025 31 December 2024
Cash 33.263 11.185
Bank deposits
- Demand deposits 1.875.893 2.554.733
- Time deposits - 313.072
Cheques and notes 50.512 197.858
Other 105.181 96.693
2.064.849 3.173.541
Blocked deposits 22 26
Cash and cash equivalents 2.064.871 3.173.567

Effective interest rates

30 June 2025 31 December 2024
TL - %44,85
KZT - %12,50

As of 30 June 2025, the Group has no time deposits. (31 December 2024: 311.932 TL and 14.500 KZT)

The credit risks of the banks where the Group has deposits are evaluated based on independent data and no significant credit risk is expected. The fair values of cash and cash equivalents approximate their carrying values, including accrued income, at the balance sheet date.

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

NOTE 6 – FINANCIAL LIABILITIES

30 June 2025 31 December 2024
Short term financial liabilities
Short term bank loans 38.552.558 38.711.700
Short term portion of long term bank loans 3.243.931 3.302.597
Short term portion of long term issued bonds (*) 4.440.622 2.766.818
Short term portion of long term lease liabilities 650.933 378.309
Short term issued bonds (*) 1.730.447 4.487.624
48.618.491 49.647.048
Long term financial liabilities
Long term bank loans 7.900.323 2.259.506
Long term lease liabilities 1.405.138 1.063.248
Long term issued bonds (*) 18.233.684 18.885.199
27.539.145 22.207.953

* The Group issued a bond with a fixed interest payment coupon every 6 months, quoted on the Irish Stock Exchange, amounting to a total of USD 500 million, USD 450 million and USD 50 million on 15 May 2024. The maturity of the bond is 15 May 2029 and the coupon interest rate is 9,75%. Vestel Mobilite Sanayi ve Ticaret A.Ş and Vestel Ticaret A.Ş are guarantors in issued bonds.

* The maturity date of the bond with the ISIN code TRSVSTL62616, amounting to TL 35.050, with a maturity of 394 days, quarterly payment, issued to qualified investors on 27 May 2025 is 25 June 2026 and the annual simple interest rate of the coupon has been determined as 54%.

* The maturity date of the bond with the ISIN code TRFVSTLK2517, amounting to TL 96.910, with a maturity of 183 days, a single coupon payment, issued to qualified investors on 27 May 2025 is 26 November 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 6 – FINANCIAL LIABILITIES (Cont'd)

* The maturity date of the bond with the ISIN code TRSVSTLA2514, amounting to TL 340.000, with a maturity of 379 days and semi-annually payment, issued to qualified investors on 05 December 2024 is 19 December 2025 and the annual simple interest rate of the coupon has been determined as 49,5%.

* The maturity date of the bond with the ISIN code TRFVSTLK2525, amounting to TL 162.480, with a maturity of 166 days, a single coupon payment, issued to qualified investors on 13 December 2025 is 26 November 2025 and the annual simple interest rate of the coupon has been determined as 53%.

* The maturity date of the bond with the ISIN code TRSVSTL22610, amounting to TL 750.000, with a maturity of 379 days, quarterly payment, issued to qualified investors on 29 January 2025 is 12 February 2026 and the annual simple interest rate of the coupon has been determined as 46%.

* 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 01 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, quarterly 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 TRFVSTL82512, amounting to TL 160.000, with a maturity of 180 days, a single coupon payment, issued to qualified investors on 26 February 2025 is 25 August 2025 and the annual simple interest rate of the coupon has been determined as 43%.

* The maturity date of the bond with the ISIN code TRSVSTL42618, amounting to TL 270.000, with a maturity of 401 days, quarterly payment, issued to qualified investors on 26 February 2025 is 03 April 2026 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 TRSVEST42613, amounting to TL 175.000, with a maturity of 370 days, quarterly 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%.

(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 – FINANCIAL LIABILITIES (Cont'd)

* 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%.

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

30 June 2025 31 December 2024
Currency Weighted
average of
effective
interest
Original
currency
TL Equivalent Weighted
average of
effective
interest
Original
currency
TL Equivalent
- USD 9,64% 311.365 12.396.188 9,10% 290.887 11.995.307
- EUR 8,87% 139.583 6.517.312 8,33% 180.988 7.771.409
- TL 36,39% 19.584.397 19.584.397 34,56% 18.893.136 18.893.136
- GBP 7,50% 1.000 54.661 7,50% 1.000 51.848
38.552.558 38.711.700

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

Weighted
average of Weighted
effective average of
interest Original effective Original
Currency currency TL Equivalent interest currency TL Equivalent
- USD 9,37% 67.270 2.678.180 10,40% 67.608 2.787.952
- TL 25,57% 469.585 469.585 26,06% 514.645 514.645
- CNY 5,10% 17.209 96.166 - - -
Short term portion 3.243.931 3.302.597
- USD 11,23% 17.862 711.129 12,54% 24.157 996.163
- EUR 7,50% 42.112 1.966.264 - - -
- TL 41,79% 3.383.361 3.383.361 20,65% 1.263.343 1.263.343
- CNY 5,10% 329.194 1.839.569 - - -
Long term portion 7.900.323 2.259.506
11.144.254 5.562.103

(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 – FINANCIAL LIABILITIES (Cont'd)

Total amount of Group's floating bank loans is TL 21.316.525 (31 December 2024: TL 20.813.042).

The maturity schedule of Group's long term bank loans is given below:

Uzun vadeli finansal borçların ödeme planı 30 June 2025 31 December 2024
One to two years 2.451.749 917.995
Two years and more 5.448.574 1.341.511
7.900.323 2.259.506

The analysis of Group's bank loans in terms of periods remaining to contractual re-pricing dates is as follows:

30 June 2025 31 December 2024
3 months or less 6.722.685 4.282.921
Between 3-6 months 7.578.835 6.651.331
Between 6-12 months 7.015.005 9.878.790
21.316.525 20.813.042

Guarantees given for the bank loans obtained are presented in note 16.

Fair values of short-term bank borrowings are considered to approximate their carrying values due to immateriality of discounting. Fair values are determined using average effective annual interest rates.

(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 – FINANCIAL LIABILITIES (Cont'd)

As of 30 June 2025 and 2024, the Group's net financial debt reconciliation is shown below:

30 June 2025 30 June 2024
Net financial debt as of 1 January 68.681.460 45.692.981
Cash inflows from loans and issued bonds 36.365.258 60.695.949
Cash outflows from loan and bonds payments (29.431.141) (36.097.683)
Changes of lease liabilities 820.528 (199.849)
Unrealized exchange gain/loss 4.611.831 1.518.910
Changed interest 640.861 (275.052)
Change in cash and cash equivalents 1.108.692 (1.101.805)
Monetary gain / (loss) (8.704.702) (9.198.368)
Net financial debt at the end of the period 74.092.787 61.035.083

NOTE 7 – RELATED PARTY DISCLOSURES

a) Short term trade receivables from related parties

30 June 2025 31 December 2024
ZES Dijital Ticaret A.Ş. (1) 247.356 256.051
Zorlu Enerji Elektrik Üretim A.Ş. (1) 516.304 504.544
Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. (4) 631.907 502.844
Other related parties 98.773 74.784
1.494.340 1.338.223

(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 – RELATED PARTY DISCLOSURES (Cont'd)

b) Short term trade payables to related parties

30 June 2025 31 December 2024
ABH Turizm Temsilcilik ve Ticaret A.Ş. (1) 28.459 15.224
Zorlu Holding A.Ş. (2) 170.195 77.403
Other related parties 235.441 96.888
434.095 189.515

c) Other short term receivables from related parties

30 June 2025 31 December 2024
1.158.979 1.214.132
1.158.979 1.214.132

The Company's interest rate of short term other receivables as of 30 June 2025 in USD is 9% and TL 47,5% (31 December 2024: USD 9% and TL 50%).

d) Other long term receivables from related parties

30 June 2025 31 December 2024
Zorlu Holding A.Ş. (2) 15.736.757 16.224.503
Lentatek Uzay Havacılık ve Teknoloji A.Ş. (4) 21.923.427 19.665.063
Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A. Ş. (4) 16.660.682 15.287.358
54.320.866 51.176.924

The Company's interest rate of long term other receivables as of 30 June 2025 in USD is 9%, TL 47,5% and EUR 7.5%. (31 December 2024: in USD 9% and TL 50%).

(1) Zorlu Holding Group Company, (2) Parent (3) Subsidiary (4) Associates

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

NOTE 7 – RELATED PARTY DISCLOSURES (Cont'd)

e) Short term prepayments to related parties

30 June 2025 31 December 2024
Zorlu Yenilenebilir Enerji A.Ş. (1) 768.393 575.754
Other related parties 18.290 19.812
786.683 595.566

f) Long term prepayments to related parties

30 June 2025 31 December 2024
Zorlu Enerji Elektrik Üretim A.Ş. (1) 418.945 866.437
Other - 43.362
418.945 909.799

(*) Rotor Elektrik Üretim A.Ş. was transferred to Zorlu Yenilenebilir Enerji A.Ş. on 24.02.2025 with all its assets and liabilities. All short- and long-term prepaid expenses from Rotor Elektrik Üretim A.Ş. have been transferred to Zorlu Yenilenebilir Enerji A.Ş.

g) Transactions with related parties

1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Sales
ZES Dijital Ticaret A.Ş. (1) 85.990 733.470 51.719 199.204
Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. (4) 1.150.442 938.626 684.521 374.224
Other related parties 25.603 40.648 15.0970 17.2140
1.262.035 1.712.744 751.337 590.642

(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 – RELATED PARTY DISCLOSURES (Cont'd)

g) 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
Operating expenses
Zorlu Holding A.Ş. (2) 563.812 387.109 289.516 208.874
ABH Turizm Temsilcilik ve Ticaret A.Ş. (1) 64.996 125.641 33.618 59.556
Other related parties 117.437 99.721 65.718
0
50.255
0
746.245 612.471 388.852 318.685
1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Financial income
Zorlu Holding A.Ş. (2) 3.112.931 2.991.922 1.671.551 991.777
Lentatek Uzay Havacılık ve Teknoloji A.Ş. (4) 3.623.867 2.955.426 1.675.291 923.839
Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A.Ş. (4) 2.720.526 2.103.692 1.277.688 676.542
9.457.324 8.051.040 4.624.530 2.592.158

Financial income from related parties consists of interest income and foreign exchange differences arising from financial liabilities.

(1) Zorlu Holding Group Company, (2) Parent (3) Subsidiary (4) Associates

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

NOTE 7 – RELATED PARTY DISCLOSURES (Cont'd)

h) Guarantees received from and given to related parties are disclosed in note 16.

j) Compensation paid to key management including directors, the Chairman and members of Board of Directors, general managers and assistant general managers for the three months period ended 30 June 2025 is TL 175.614 (1 January – 30 June 2024: TL 140.373).

NOTE 8 – TRADE RECEIVABLES AND PAYABLES

30 June 2025 31 December 2024
Short term trade receivables
Trade receivables
- Related
(Note
7)
parties
1.494.340 1.338.223
- Other
parties
15.002.563 21.333.879
Cheques and notes receivables 1.365.145 1.405.995
Other 77.173 90.235
17.939.221 24.168.332
Allowance for doubtful receivables (-) (578.885) (588.120)
Total short term trade receivables 17.360.336 23.580.212
Long term trade receivables
Cheques and notes receivables 3.729 658
Total long term trade receivables 3.729 658

(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 – TRADE RECEIVABLES AND PAYABLES (Cont'd)

30 June 2025 31 December 2024
Short term trade payables
Trade payables
- Related parties (Note 7) 434.095 189.515
- Other parties 48.230.919 50.692.401
Other 12.348 10.158
Total short term trade payables 48.677.362 50.892.074
Long term trade payables
Trade payables
- Other parties 136.609 143.446
Total long term trade payables 136.609 143.446

NOTE 9 – OTHER RECEIVABLES AND PAYABLES

30 June 2025 31 December 2024
Short term other receivables
Receivables from public institutions 755.959 1.171.847
Receivables from related parties (Note 7) 1.158.979 1.214.132
Deposits and guarantees given 317.915 264.170
Other 267.718 228.992
2.500.571 2.879.141
Allowance for doubtful receivables (-) (211) (246)
2.500.360 2.878.895

(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 – OTHER RECEIVABLES AND PAYABLES (Cont'd)

30 June 2025 31 December 2024
Long term other receivables
Deposits and guarantees given 41.048 42.418
Receivables from related parties (Note 7) 54.320.866
51.176.924
Other 12.328 85.408
54.374.242 51.304.750
Allowance for doubtful receivables (-) (8.278) (9.659)
54.365.964 51.295.091
Short term other payables
Other payables
- Other parties 653.327 254.929
653.327 254.929
Deferred revenue
- Other parties 632.392 790.773
632.392 790.773

(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 10 – INVENTORIES

30 June 2025 31 December 2024
Raw materials 15.148.541 16.025.044
Work in process 934.624 808.836
Finished goods 12.870.595 13.762.919
Merchandise 1.674.205 1.818.422
Other 137.554 55.402
30.765.519 32.470.623
Provision for impairment on inventories (-) (694.736) (423.312)
30.070.783 32.047.311

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

NOTE 11 – PREPAID EXPENSES

30 June 2025 31 December 2024
Prepaid expenses in current assets
Order advances given 344.162 373.061
Prepaid expenses 1.063.786 891.464
Business advances given 9.393 5.612
1.417.341 1.270.137
Prepaid expenses in non-current assets
Advances given for fixed asset purchases 468.101 614.999
Prepaid expenses 255.746 347.510
723.847 962.509

(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 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

30 June 2025 31 December 2024
% Amount % Amount
Subsidiaries
Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş. %23 3.814.421 %23 5.898.971
3.814.421 5.898.971

Within the framework of Turkey's Automobile Project, following the work undertaken by the Joint Initiative Group, to which Group's controlling shareholder, Zorlu Holding AŞ was a party, Vestel Elektronik Sanayi ve Ticaret AŞ decided to participated with 19% share in "Türkiye'nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş.", which was planned to be established to produce mainly electric passenger cars and carry out supporting activities.

In this respect, the Shareholders Agreement and Articles of Association have been signed on 31 May 2018. Establishment of the new Group was completed on 28 June 2018.

Within the scope of the decision taken at the Annual General Meeting of TOGG which was held on 31 May 2021, the Group's stake in TOGG has reached to 23%.

The movements of TOGG, an investment accounted for using the equity method, for the periods 1 January - 30 June 2025 and 2024 are as follows:

1 January - 1 January -
30 June 2025 30 June 2024
Balance at 1 January 5.898.971 9.866.713
Shares from profit / (loss) (2.191.736) (1.095.476)
Shares from other comprehensive income / (expense) 107.186 (21.320)
Capital Increase - 74
Balances at 30 June 2025 3.814.421 8.749.991

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD

1 JANUARY – 30 JUNE 2025

(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 – PROPERTY, PLANT AND EQUIPMENT

Currency
translation
30 June
1 January
2025 Additions Disposals differences Transfers 2025
Cost or revaluation
Land 30.083.298 - - (17.099) - 30.066.199
Land improvements 709.966 - - 3.963 134 714.063
Buildings 20.400.296 12.395 (3.005) 140.775 59.686 20.610.147
Leasehold improvements 1.217.193 99.052 - (25.979)
-
1.290.266
Plant and machinery 57.800.639 1.031.841 (1.455.666) 170.879
345.465
57.893.158
Motor vehicles 105.778 46 (1.003) 145
-
104.966
Furniture and fixtures 10.323.888 82.562 (12.551) (156.775) 37.796 10.274.920
Other tangible assets 23.295 - - 121 - 23.416
Construction in progress 595.074 816.608 - - (444.291) 967.391
121.259.427 2.042.504 (1.472.225) 116.030 (1.210) 121.944.526
Accumulated depreciation
Land improvements 45.013 15.349 - (26) - 60.336
Buildings 540.974 466.404 (3.005) 83.239 - 1.087.612
Leasehold improvements 964.401 107.192 - (26.978) - 1.044.615
Plant and machinery 44.516.695 1.619.189 (1.455.666) 143.872 - 44.824.090
Motor vehicles 89.684 2.777 (1.003) 178 - 91.636
Furniture and fixtures 9.040.023 398.522 (9.366) (159.814) - 9.269.365
Other tangible assets 23.295 - - 121 - 23.416
55.220.085 2.609.433 (1.469.040) 40.592 - 56.401.070
Net book value 66.039.342 65.543.456

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD

1 JANUARY – 30 JUNE 2025

(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 – PROPERTY, PLANT AND EQUIPMENT (Cont'd)

Currency
1 January translation 30 June
2024 Additions Disposals differences Transfers 2024
Cost or revaluation
Land 23.078.595 - - (14.282) - 23.064.313
Land improvements 727.145 - - (18.981) 1.318 709.482
Buildings 16.891.898 19.921 (136) (247.269) 57.182 16.721.596
Leasehold improvements 2.333.460 5.163 (172) (6.900) 358 2.331.909
Plant and machinery 56.279.855 913.411 (402.016) (57.934) 246.117 56.979.433
Motor vehicles 108.288 49 (2.556) (656) 19 105.144
Furniture and fixtures 9.682.184 113.622 (7.243) (19.984) 18.030 9.786.609
Other tangible assets 23.295 - - - - 23.295
Construction in progress 2.990.973 1.243.357 (11.957) (976) (329.000) 3.892.397
112.115.693 2.295.523 (424.080) (366.982) (5.976) 113.614.178
Accumulated depreciation
Land improvements 54.996 18.304 - (5.327) - 67.973
Buildings 660.194 566.555 (136) (68.940) - 1.157.673
Leasehold improvements 1.913.611 39.513 (172) (4.977) - 1.947.975
Plant and machinery 42.374.289 1.808.454 (391.264) (81.999) - 43.709.480
Motor vehicles 86.118 3.663 (1.315) (245) - 88.221
Furniture and fixtures 8.648.905 307.943 (5.811) (17.263) - 8.933.774
Other tangible assets 23.295 - - - - 23.295
53.761.408 2.744.432 (398.698) (178.751) - 55.928.391
Net book value 58.354.285 57.685.787

(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 – PROPERTY, PLANT AND EQUIPMENT (Cont'd)

Allocation of current year depreciation and amortization expenses is as follows:

1 January - 1 January -
30 June
30 June
2025 2024
Cost of sales 2.093.541 2.127.117
Research and development expenses 730.256 952.353
Marketing, selling and distribution expenses 898.586 750.894
General administrative expenses 91.450 100.717
3.813.833 3.931.081
30 June 2025 Level 1 Level 2 Level 3
Tangible Assets
Lands - 30.066.199 -
Buildings and land improvements - 21.324.210 -
31 December 2024 Level 1 Level 2 Level 3
Tangible Assets
Lands - 30.083.298 -
Buildings and land improvements - 21.110.262 -

As of 30 June 2025, the mortgages on property, plant and equipment are disclosed in Note 16.

(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 – RIGHT OF USE ASSETS

1 January 30 June
2025 Additions Disposals 2025
Cost
Land and buildings 5.318.757 1.133.278 (35.622) 6.416.413
Motor vehicles 855.699 328.103 (477) 1.183.325
6.174.456 1.461.381 (36.099) 7.599.738
Accumulated amortization
Land and buildings 2.594.009 310.560 (6.966) 2.897.603
Motor vehicles 720.493 78.249 (64) 798.678
3.314.502 388.809 (7.030) 3.696.281
Net book value 2.859.954 3.903.457
1 January 30 June
2024 Additions Disposals 2024
Cost
Land and buildings 3.990.042 875.298 - 4.865.340
Motor vehicles 791.070 25.806 - 816.876
4.781.112 901.104 - 5.682.216
Accumulated amortization
Land and buildings 2.049.820 446.037 - 2.495.857
Motor vehicles 657.503 48.898 - 706.401
2.707.323 494.935 - 3.202.258

Net book value 2.073.789 2.479.958

(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 – INTANGIBLE ASSETS

Currency
1 January translation 30 June
2025 Additions Disposals differences Transfers 2025
Cost
Rights 1.002.126 113 - 2.719 - 1.004.958
Development cost 21.822.168 1.108.407 - - - 22.930.575
Other intangible assets 3.440.298 60.844 - (3.926) 1.210 3.498.426
26.264.592 1.169.364 - (1.207) 1.210 27.433.959
Accumulated amortization
Rights 880.420 21.604 - 2.738 - 904.762
Development cost 15.021.751 664.621 - - - 15.686.372
Other intangible assets 2.464.238 129.366 - (2.839) - 2.590.765
18.366.409 815.591 - (101) - 19.181.899
Net book value 7.898.183 8.252.060
Currency
1 January translation 30 June
2024 Additions Disposals differences Transfers 2024
Cost
Rights 1.011.339 296 - (6.330) - 1.005.305
Development cost 20.125.327 1.551.600 (132.385) (15.108) - 21.529.434
Other intangible assets 3.123.892 280.550 (505) (7.376) 5.976 3.402.537
24.260.558 1.832.446 (132.890) (28.814) 5.976 25.937.276
Accumulated amortization
Rights 849.490 27.399 - (6.257) - 870.632
Development cost 14.522.604 552.156 (132.385) (13.746) - 14.928.629
Other intangible assets 2.295.592 112.159 - (7.880) - 2.399.871
17.667.686 691.714 (132.385) (27.883) - 18.199.132
Net book value 6.592.872 7.738.144

Development costs, incurred by the Group on development projects relating to television and electronic devices, refrigerators, split air conditioners, washing machines, cookers, drying machines and dish washers are capitalized as intangible assets.

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

NOTE 16 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Provisions

30 June 2025 31 December 2024
Short term provisions
Warranty and assembly provision 2.529.623 1.982.875
Other provisions 1.822.226 2.186.899
Provision for lawsuit risks 208.866 135.032
4.560.715 4.304.806
Long term provisions
Warranty and assembly provision 567.604 700.225
567.604 700.225

As of 30 June 2025, the amount of provision provided for the cases for which the probability of losing the case is assessed to be high by the Group management and legal advisors is TL 208.866 (31 December 2024: TL 135.032).

b) Guarantees received by the Group

30 June 2025 31 December 2024
Guarantee letters 6.195.161 6.469.774
Cheques and notes 3.732.053 3.801.651
Collaterals and pledges 8.049.826 8.225.546
17.977.040 18.496.971

The table above has been prepared based on the lower of the limits used or the amounts of guarantees received by the Group.

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

b) Guarantees received by the Group (Cont'd)

USD EUR GBP
CPMB's given by the Group ('000) ('000) ('000) TL TL Equivalent
30 June 2025
A. CPMB's given on behalf of its own legal entity 739.610 5.315 - 3.363.959 33.057.772
B. CPMB's given on behalf of fully consolidated
subsidiaries (*) 2.552.127 620.507 53.791 28.505.493 162.024.353
C. CPMB's given on behalf of third parties for
ordinary course of business - - - - -
D. Total amount of other CPMB's given 59.579 - - 15.916 2.387.899
i. Total amount of CPMB's given on behalf of the
parent company - - - - -
ii. Total amount of CPMB's given to on behalf of
other group companies which are not in scope of
B and C. 59.579 - - 15.916 2.387.899
iii.Total amount of CPMB's given on behalf of
third parties which are not in scope of C. - - - - -
Total 3.351.316 625.822 53.791 31.885.368 197.470.024

Collaterals, pledges, mortgages and bails ("CPMB's") given by the Group

(*) Fully consolidated subsidiaries have given collaterals to various financial institutions on behalf of each other for their forward contracts and for the total amount of loans utilized.

(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 16

PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Cont'd)
USD EUR GBP
CPMB's given by the Group ('000) ('000) ('000) TL TL Equivalent
31 December 2024
A. CPMB's given on behalf of its own legal entity 518.359 2.135 - 7.744.823 29.212.067
B. CPMB's given on behalf of fully consolidated
subsidiaries (*) 2.572.245 193.450 52.611 26.032.256 143.138.176
C. CPMB's given on behalf of third parties for
ordinary course of business - - - - -
D. Total amount of other CPMB's given 59.579 - - 18.514 2.475.373
i. Total amount of CPMB's given on behalf of the
parent company - - - - -
ii. Total amount of CPMB's given to on behalf of
other group companies which are not in scope of
B and C. 59.579 - - 18.514 2.475.373
iii.Total amount of CPMB's given on behalf of
third parties which are not in scope of C. - - - - -
Total 3.150.183 195.585 52.611 33.795.593 174.825.616

As of 30 June 2025, proportion of other CPMB's given by the Group to its equity is 5% (31 December 2024: 3%).

NOTE 17 – COMMITMENTS

As of the balance sheet date the Group has committed to realize exports amounting to 2.450.747 thousand USD (31 December 2024: 2.633.587 thousand USD) due to the export and investment incentive certificates obtained.

As of 30 June 2025, the Group has forward foreign currency purchase contract that amounts to, USD 510.188 thousand, EUR 52.670 thousand, GBP 76.625 thousand, PLN 12.494 thousand, SEK 26.418 thousand and TRY 4.214.325 against forward foreign currency sales contract that amounts to USD 255.132 thousand, EUR 413.088 thousand, GBP 36.808 thousand, PLN 17.060 thousand and SEK 130.045 thousand (31 December 2024: purchase contract that amounts to USD 695.839 thousand, EUR 335.927 thousand, GBP 139.822 thousand, PLN 26.121 thousand, SEK 100.568 thousand, TL 2.264.000 against forward foreign currency sales contract that amounts to USD 589.656 thousand, EUR 507.886 thousand, GBP 90.040 thousand, PLN 47.893 thousand, RUB 953.771 and SEK 181.368 thousand).

(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 18 – EMPLOYEE BENEFITS

30 June 2025 31 December 2024
Due to personnel 864.164 762.582
Social security payables 2.382.188 623.501
3.246.352 1.386.083

NOTE 19 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS

a) Paid in capital

30 June 2025 31 December 2024
Shares of par value Kr 1 each
limit on registered share capital 2.000.000 2.000.000
Issued share capital 335.456 335.456

As of 30 June 2025 and 31 December 2024 the shareholding structures are as follows:

Share Amount
30 June 31 December 30 June 31 December
2025 2024 2025 2024
Zorlu Holding A.Ş. 52,77% 52,77% 177.019 177.019
Other shareholders (Publicly Listed) 47,23% 47,23% 158.437 158.437
100% 100% 335.456 335.456

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

NOTE 19 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Cont'd)

b) Adjustment to share capital

Adjustment to share capital (restated to 30 June 2025 purchasing power of money) is the difference between restated share capital and historical share capital.

c) Share premium

Share premium account refers the difference between par value of the company's shares and the amount the company received for newly issued shares. The share premium account is disclosed under equity as a separate line item and may not be distributed. It may be used in capital increase.

d) 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 2.111.035 2.111.035
PPI-Indexed Legal CPI Indexed
Differences Tracked in Past
Records Amounts Years Profits/Losses
Capital Adjustment Gains/Losses 36.144.457 26.364.187 9.780.270
Appropriated Retained Earnings 2.825.827 2.111.035 714.792

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

e) Revaluation reserve

30 June 2025 31 December 2024
Fair value gains on financial assets 51.756 72.549
Revaluation of property, plant and equipment 19.533.327 19.607.176
19.585.083 19.679.725

NOTE 20 – SALES

1 January - 1 January - 1 April - 1 April -
30 June 30 June 30 June 30 June
2025 2024 2025 2024
Domestic sales 31.571.642 37.964.580 16.364.878 18.555.597
Export sales 43.837.838 50.439.554 22.041.041
-
27.073.033
-
Gross sales 75.409.480 88.404.134 38.405.919
-
45.628.630
-
Sales discounts (-) (7.444.725) (7.044.848) (3.792.400)
-
(3.259.389)
-
Net sales 67.964.755 81.359.286 34.613.519
-
42.369.241
-
Cost of sales (56.439.403) (62.387.718) (29.504.035)
0
(32.355.131)
0
Gross profit 11.525.352 18.971.568 5.109.484 10.014.110

(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 – OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES

a) Other income from operating activities:

1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Overdue interest charges 165.346 818.056 143.528 449.984
Foreign exchange gains arising from trading activities 1.593.705 1.008.268 842.733 640.520
Other income 464.242 580.067 257.075 34.119
2.223.293 2.406.391 1.243.336 1.124.623

b) Other expense from operating activities:

1 January -
30 June
1 January -
30 June
1 April -
30 June
1 April -
30 June
2025 2024 2025 2024
Interest expense on term purchases 1.919.502 1.486.090 930.959 753.161
Foreign exchange expenses arising from trading activities 5.605.593 5.591.612 2.815.012 1.528.607
Other expenses 889.111 526.443 413.563 221.594
8.414.206 7.604.145 4.159.534 2.503.362

(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 – FINANCIAL INCOME AND FINANCIAL EXPENSE

a) Financial income:

1 January -
30 June
1 January -
30 June
1 April -
30 June
1 April -
30 June
2025 2024 2025 2024
Foreign exchange gains 6.558.042 4.968.637 3.137.750 854.097
Gains on derivative financial instruments 1.786.498 669.078 757.270 467.832
Interest income 3.224.492 3.186.213 1.644.720 1.515.205
11.569.032 8.823.928 5.539.740 2.837.134

b) Financial expense:

1 January -
30 June
2025
1 January -
30 June
2024
1 April -
30 June
2025
1 April -
30 June
2024
Foreign exchange losses 6.734.597 3.489.484 3.248.262 840.958
Losses on derivative financial instruments 2.495.142 2.628.276 1.490.462 1.858.097
Interest expense 8.359.947 6.542.529 4.131.272 3.408.248
Commission and other finance expenses 1.698.821 1.229.665 944.534
-
647.382
-
19.288.507 13.889.954 9.814.530 6.754.685

(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- MONETARY GAIN / LOSS

Non monetary items 30 June 2025
Balance sheet items 3.256.449
Inventory 2.529.102
Investments Valued by Equity Method, Financial Investments, Subsidiaries 38.725
Tangible and Intangible Fixed Assets 8.130.824
Right of Use Assets 1.042.788
Capital Adjustment Differences (3.815.659)
Accumulated Other Comprehensive Income (Expense) Not to Be Reclassified to Profit or Loss (474.445)
Restricted Reserves Allocated from Profit (301.689)
Retained Earnings or Losses (3.893.197)
Income statement items 3.609.009
Revenue (3.576.936)
Cost of Goods Sold 5.869.600
General Administrative Expenses 119.712
Marketing Expenses 444.644
Research and Development Expenses 27.499
Other Operating Income 4.772
Other Operating Expenses 389.738
Finance Income (694.047)
Finance Expenses 1.024.027
Net monetary gain 6.865.458

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

30 June 2025 31 December 2024
Corporation and income taxes 54.425 20.033
Prepaid taxes (-) (25.908) (38.226)
Current income tax liabilities - net 28.517 (18.193)
Deferred tax liabilities (4.848.833) (4.694.100)
Deferred tax liabilities - net (4.848.833) (4.694.100)

Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, tax liabilities, as reflected in these consolidated financial statements, have been calculated on a separate-entity basis.

In Turkey, the corporate tax rate is 25% as of 30 June 2025 (31 December 2024: 25%). Corporate tax is payable at a rate applicable to the net corporate income of the companies after adjusting for certain disallowable expenses and deducting certain exemptions and deductions.

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 (5.952) (24.810)
Deferred tax income / (loss) (934.909) (1.328.599)
Total tax expense (940.861) (1.353.409)

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

The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between their financial statements prepared in accordance with CMB Communiqué II, No. 14.1 and their statutory financial statements. These temporary differences usually result from the recognition of revenue and expenses in different reporting periods for the Communiqué and tax purposes.

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 (2.227.483) (2.554.584) 556.871 638.646
Investment incentive - - 1.201.998 1.402.417
Warranty provision (3.097.227) (2.683.100) 774.307 670.775
Provision for doubtful receivables (578.885) (588.120) 144.721 147.030
Net difference between book values and tax bases of property,
plant and equipment and intangible asset
45.331.240 45.241.664 (9.463.168) (9.426.057)
Net difference between book values and tax bases of
inventories
1.483.172 2.733.124 (370.793) (683.281)
Provision for derivative instruments (1.038.907) 394.530 259.727 (98.633)
Deferred tax calculated on financial loss - - 174.853 204.008
R&D incentives - - 1.894.955 1.727.632
Other 89.216 (2.893.439) (22.304) 723.363
Deferred tax assets / (liabilities) - net (4.848.833) (4.694.100)

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

Tax Advantages Obtained within the Scope of Investment Incentive System:

The Group's earnings from investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or fully until the investment contribution amount is reached.

Furthermore, financial statements consist of the deferred tax effect of the temporary differences accounted by the adjustments made regarding inflation accounting together with the notification of the Corporate Tax Law dated 30 December 2023 and numbered 32415.

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

The Group 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 10% increase or decrease in the related estimates does not have a material impact on the recoverability of the related deferred tax assets.

1 January - 1 January -
30 June
30 June
2025 2024
Net income / (loss) attributable to equity holders
of the parent (12.640.989) (1.614.235)
Weighted number of ordinary shares with a Kr 1 of par
value (hundred shares) 33.545.600 33.545.600
Earnings per share (0,3768) (0,0481)

NOTE 25 – EARNINGS PER SHARE /LOSS

(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– 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 10.853.543 100.463 7.016.131 66.401
Cash flow hedge
Forward foreign currency transactions 163.993 1.421 16.914.128 580.154
Derivative financial liabilities:
Held for trading
Forward foreign currency transactions 3.483.929 (54.220) 24.704.838 (247.805)
Cash flow hedge
Forward foreign currency transactions 16.865.296 (1.086.571) 329.915 (4.220)
31.366.761 (1.038.907) 48.965.012 394.530

NOTE 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

Foreign currency risk:

The Group is exposed to exchange rate risk due to its foreign currency denominated transactions. The main principle of foreign currency risk management is to maintain foreign exchange position at the level that minimizes the impact of foreign exchange fluctuations.

Derivative instruments are used in foreign currency risk management where necessary. In this respect the Group mainly prefers using foreign exchange forward contracts.

(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 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

USD
EUR
(TL
(Thousand)
(Thousand)
Equivalent) TL Equivalent
30 June 2025
79.797
228.376
953.153
1. Trade receivables
2a. Monetary financial assets (including
14.768.361
928.445
-
16.415
4.867
49.262
cash and cash equivalents)
-
-
-
2b. Non-monetary financial assets
58.471
1.815
-
3. Other
2.408.277
154.683
235.058
1.002.415
4. Current assets (1+2+3)
18.105.083
-
-
-
5. Trade receivables
-
-
-
-
6a. Monetary financial assets
-
-
-
-
6b. Non-monetary financial assets
-
1.103.954
140.776
-
7. Other
50.433.218
1.103.954
140.776
-
8. Non-current assets (5+6+7)
50.433.218
1.258.637
375.834
1.002.415
9. Total assets (4+8)
68.538.301
690.796
209.417
78.594
10. Trade payables
37.358.793
430.449
141.372
96.167
11. Financial liabilities
23.834.217
2.392
1.572
-
12a. Other monetary liabilities
168.630
-
-
-
12b. Other non-monetary liabilities
-
1.123.637
352.361
174.761
13. Current liabilities (10+11+12)
61.361.640
-
2.925
-
14. Trade payables
136.572
475.852
48.535
1.839.567
15. Financial liabilities
23.050.539
-
-
-
16a. Other monetary liabilities
-
-
-
-
16b. Other non-monetary liabilities
-
475.852
51.460
1.839.567
17. Non-current liabilities (14+15+16)
23.187.111
1.599.489
403.821
2.014.328
18. Total liabilities (13+17)
84.548.751
-
-
-
19. Off-balance sheet derivative instruments
-
255.056
(360.418)
1.687.298
net asset / (liability) position (19a+19b) (*)
(5.027.644)
510.188
52.670
4.424.397
19a. Hedged total assets
27.154.488
(255.132)
(413.088) (2.737.099)
19b. Hedged total liabilities
(32.182.132)
20. Net foreign currency asset/ (liability)
(85.796)
(388.405)
675.385
position (9-18+19)
(21.038.094)
21. Net foreign currency monetary asset/
(liability) position
(340.852)
(27.987)
(1.011.913) (16.010.450)
(=1+2a+3+5+6a+7-10-11-12a-14-15-16a)
22. Fair value of financial instruments used
-
-
-
in foreign currency hedging
(1.038.907)
201.146
558.532
2.627.648
23. Export
43.837.838
495.788
61.928
27.785
24. Import
22.657.794

(*) The net asset / (liability) positions of derivative instruments in foreign currency are included outside the statement of financial position.

(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 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

Other
USD EUR (TL TL Equivalent
31 December 2024 (Thousand) (Thousand) Equivalent) (Historic Date) TL Equivalent
1. Trade receivables 138.209 248.494 1.356.827 15.361.607 17.922.991
2a. Monetary financial assets (including - - - - -
cash and cash equivalents) 16.274 18.480 5.725 1.258.762 1.468.647
2b. Non-monetary financial assets - - - - -
3. Other 94.101 2.125 - 3.397.976 3.964.552
4. Current assets (1+2+3) 248.584 269.099 1.362.552 20.018.345 23.356.190
5. Trade receivables - - - - -
6a. Monetary financial assets - - - - -
6b. Non-monetary financial assets - - - - -
7. Other 1.163.262 8.966 - 41.369.609 48.267.549
8. Non-current assets (5+6+7) 1.163.262 8.966 - 41.369.609 48.267.550
9. Total assets (4+8) 1.411.846 278.065 1.362.552 61.387.954 71.623.739
10. Trade payables 708.949 234.192 81.036 33.756.815 39.385.403
11. Financial liabilities 408.492 182.740 - 21.162.930 24.691.622
12a. Other monetary liabilities 2.490 1.282 - 135.187 157.728
12b. Other non-monetary liabilities - - - - -
13. Current liabilities (10+11+12) 1.119.931 418.214 81.036 55.054.932 64.234.753
14. Trade payables - 3.340 - 122.920 143.416
15. Financial liabilities 482.124 5.570 - 17.245.084 20.120.517
16a. Other monetary liabilities - - - - -
16b. Other non-monetary liabilities - - - - -
17. Non-current liabilities (14+15+16) 482.124 8.910 - 17.368.004 20.263.932
18. Total liabilities (13+17) 1.602.055 427.124 81.036 72.422.936 84.498.687
19. Off-balance sheet derivative instruments - - - - -
net asset / (liability) position (19a+19b) 106.183 (171.959) 1.504.244 (1.137.773) (1.327.484)
19a. Hedged total assets 695.839 335.927 10.281.454 47.171.544 55.036.894
19b. Hedged total liabilities (589.656) (507.886) (8.777.210) (48.309.317) (56.364.379)
20. Net foreign currency asset/ (liability)
position (9-18+19) (84.026) (321.018) 2.785.760 (12.172.755) (14.202.432)
21. Net foreign currency monetary asset/
(liability) position
(=1+2a+3+5+6a+7-10-11-12a-14-15-16a) (190.209) (149.059) 1.281.516 (11.034.982) (12.874.946)
22. Fair value of financial instruments used
in foreign currency hedging - - - 338.147 394.529
23. Export 324.690 1.026.778 4.727.281 92.959.206 108.459.159
24. Import 1.275.441 165.953 64.106 51.250.506 59.795.980

(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 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

As of 30 June 2025 and 31 December 2024 sensitivity analysis of foreign exchange rates is presented in below tables. Secured portions include impact of off-balance sheet derivative instruments.

Gain / Loss Equity
Foreign Foreign Foreign Foreign
30 June 2025 exchange
appreciation
exchange
depreciation
exchange
appreciation
exchange
depreciation
USD net asset / liability (1.366.025) 1.366.025 (1.366.025) 1.366.025
Secured portion from USD risk (-) (429.725) 429.725 321.211 (321.211)
USD net effect (1.795.750) 1.795.750 (1.044.814) 1.044.814
+/- 10% fluctuation of EUR rate:
EUR net asset / liability (133.827) 133.827 (133.827) 133.827
Secured portion from EUR risk (-) (182.074) 182.074 (1.129.385) 1.129.385
EUR net effect (315.901) 315.901 (1.263.212) 1.263.212
+/- 10% fluctuation of other currency rates:
Other currencies net asset / liability (101.191) 101.191 (101.191) 101.191
Secured portion from other currency risk (-) 231.238 (231.238) 367.460 (367.460)
Other currency net effect 130.047 (130.047) 266.269 (266.269)

(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 27 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

Gain / Loss Equity
Foreign Foreign Foreign Foreign
31 December 2024 exchange
appreciation
exchange
depreciation
exchange
appreciation
exchange
depreciation
USD net asset / liability (794.824) 794.824 (794.824) 794.824
Secured portion from USD risk (-) (889.187) 889.187 (271.406) 271.406
USD net effect (1.684.011) 1.684.011 (1.066.230) 1.066.230
+/- 10% fluctuation of EUR rate:
EUR net asset / liability (642.188) 642.188 (642.188) 642.188
Secured portion from EUR risk (-) 453.200 (453.200) (320.604) 320.604
EUR net effect (188.988) 188.988 (962.792) 962.792
+/- 10% fluctuation of other currency rates:
Other currencies net asset / liability 149.520 (149.520) 149.520 (149.520)
Secured portion from other currency risk (-) 252.339 (252.339) 425.246 (425.246)
Other currency net effect 401.859 (401.859) 574.766 (574.766)

(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 28 – SUBSEQUENT EVENTS

On July 11, 2025 , a Share Subscription Agreement was signed between our 100% indirect subsidiary, Vestel Holland B.V. ("Vestel Holland") and Vidaa (Netherlands) International Holdings B.V. ("Vidaa B.V.") for the purchase of 842.602 newly issued shares as part of a capital increase in Vidaa B.V. together with a Shareholders' Agreement executed among the parties, and the share purchase price will be paid with deferred payments under the guarantee of Vestel Holland.

Furthermore, a platform revenue agreement has been signed between our Company and Vidaa USA, Inc., a whollyowned subsidiary of Vidaa B.V., for sharing of platform revenues of Vidaa to be generated from the sales of TVs with Vidaa platform with our Company.

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