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ANADOLU EFES BİRACILIK VE MALT SANAYİİ A.Ş.

Quarterly Report May 23, 2024

5888_rns_2024-05-23_321e8a07-1dd7-4958-90be-a6bb426665c4.pdf

Quarterly Report

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CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH

ANADOLU EFES BİRACILIK VE MALT SANAYİİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024

TABLE OF CONTENTS

Page

Interim Condensed Consolidated Statement of Financial Position 1-2
Interim Condensed Consolidated Statement of Profit or Loss 3
Interim Condensed Consolidated Statement of Other Comprehensive Income 4
Interim Condensed Consolidated Statement of Changes in Equity 5
Interim Condensed Consolidated Statement of Cash Flows 6
Notes to Interim Condensed Consolidated Financial Statements 7-44
Note 1 Group's Organization and Nature of Activities 7-9
Note 2 Basis of Presentation of Interim Condensed Consolidated Financial Statements 9-12
Note 3 Business Combinations 13
Note 4 Segment Reporting 14-15
Note 5 Cash and Cash Equivalents 16
Note 6 Financial Investments 16
Note 7 Short- and Long-Term Borrowings 16-19
Note 8 Derivative Instruments 19-23
Note 9 Other Receivables and Payables 24
Note 10 Investments Accounted for Using Equity Method 24
Note 11 Right-of-Use Assets 25
Note 12 Property, Plant and Equipment 26
Note 13 Other Intangible Assets 27
Note 14 Goodwill 28
Note 15 Capital Reserves and Other Equity Items 28
Note 16 Commitments and Contingencies 29-31
Note 17 Prepaid Expenses and Deferred Income 31
Note 18 Other Assets and Liabilities 32
Note 19 Other Operating Income / Expenses 33
Note 20 Income / Expense from Investing Activities 33
Note 21 Finance Income / Expenses 34
Note 22 Tax Assets and Liabilities 35-36
Note 23 Earnings per Share 36
Note 24 Related Party Balances and Transactions 37-39
Note 25 Financial Instruments and Financial Risk Management 39-42
Note 26 Financial Instruments (Fair Value and Hedge Accounting Disclosures) 42-43
Note 27 Explanatory Information on Statement of Cash Flows 43-44
Note 28 Events After Reporting Period 44

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

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

Unaudited Audited
Notes March 31, 2024 December 31, 2023
ASSETS
Cash and Cash Equivalents 5 38.739.941 47.489.109
Financial Investments 6 652.577 432.374
Trade Receivables 26.068.072 17.697.781
- Trade Receivables from Related Parties 24 1.851.852 1.759.821
- Trade Receivables from Third Parties 24.216.220 15.937.960
Other Receivables 9 748.589 529.713
- Other Receivables from Related Parties 24 388.816 275.529
- Other Receivables from Third Parties 359.773 254.184
Derivative Financial Assets 8 197.731 190.669
Inventories 25.758.172 28.625.526
Prepaid Expenses 17 7.356.190 4.937.516
- Prepaid Expenses to Third Parties 7.356.190 4.937.516
Current Tax Assets 1.225.382 1.279.665
Other Current Assets 18 3.579.615 2.522.683
- Other Current Assets from Related Parties 300.003 -
- Other Current Assets from Third Parties 3.279.612 2.522.683
Current Assets 104.326.269 103.705.036
Financial Investments 12.520 12.520
Trade Receivables 1.272 1.495
- Trade Receivables from Third Parties 1.272 1.495
Other Receivables 9 194.981 458.302
- Other Receivables from Related Parties 24 23.055 38.286
- Other Receivables from Third Parties 171.926 420.016
Derivative Financial Assets 8 44.445 38.474
Assets Due to Investments Accounted for Using Equity
Method
10 15.880 564
Property, Plant and Equipment 12 67.675.928 66.294.244
Right-of-Use Assets 11 2.569.138 2.349.539
Intangible Assets 118.435.659 122.008.148
- Goodwill 14 13.852.462 14.475.333
- Other Intangible Assets 13 104.583.197 107.532.815
Prepaid Expenses 17 2.794.398 3.299.987
Deferred Tax Asset 22 8.203.289 6.990.102
18
Other Non-Current Assets
Non-Current Assets
1.625
199.949.135
20.871
201.474.246
TOTAL ASSETS 304.275.404 305.179.282

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

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

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

Unaudited Audited
Notes March 31, 2024 December 31, 2023
LIABILITIES
Current Borrowings 16.338.643 12.752.430
- Current Borrowings from Third Parties 16.338.643 12.752.430
- Banks Loans 7a 15.300.314 11.282.401
- Lease Liabilities 7b
7a
64 -
- Issued Debt Instruments
Current Portion of Non-Current Borrowings
1.038.265
11.911.954
1.470.029
13.468.831
- Current Portion of Non-Current Borrowings from Third Parties 11.911.954 13.468.831
- Banks Loans 7a 2.385.048 1.667.801
- Lease Liabilities 7b 648.539 736.606
- Issued Debt Instruments 7a 8.878.367 11.064.424
Other Current Financial Liabilities 7c 826.957 1.242.728
Trade Payables 37.602.838 38.039.427
- Trade Payables to Related Parties 24 1.718.119 1.425.946
- Trade Payables to Third Parties 35.884.719 36.613.481
Employee Benefit Obligations 1.341.963 1.025.293
Other Payables 9 23.264.476 19.647.196
- Other Payables to Related Parties 24 3.499.890 3.671.968
- Other Payables to Third Parties 19.764.586 15.975.228
Derivative Financial Liabilities 8 281.902 321.567
Deferred Income 17 310.404 892.028
Current Tax Liabilities
Current Provisions
1.381.191
2.065.645
680.338
2.056.838
- Current Provisions for Employee Benefits 879.886 995.314
- Other Current Provisions 1.185.759 1.061.524
Other Current Liabilities 18 141.742 195.570
Current Liabilities 95.467.715 90.322.246
Non-Current Long-Term Borrowings 39.391.625 41.744.939
- Non-current Borrowings from Third Parties 39.391.625 41.744.939
- Banks Loans 7a 3.950.078 2.270.140
- Lease Liabilities 7b 1.336.328 1.227.254
- Issued Debt Instruments 7a 34.105.219 38.247.545
Other Non-Current Financial Liabilities 7c - 98.269
Trade Payables 2.102 2.452
- Trade Payables to Third Parties 2.102 2.452
Employee Benefit Obligations 66.373 97.234
Other Payables 9 13.660 12.421
- Other Payables to Third Parties 13.660 12.421
Derivative Financial Liabilities 8 5.946 3.412
Deferred Income
Non-Current Provision
17 37.180
1.082.075
51.212
1.142.955
- Non-Current Provision for Employee Benefits 1.082.075 1.142.955
Deferred Tax Liabilities 22 21.597.409 22.260.891
Other Non-Current Liabilities 18 827 550
Non-Current Liabilities 62.197.197 65.414.335
Equity Attributable to Equity Holders of the Parent 72.837.901 74.282.697
Issued Capital 1 592.105 592.105
Inflation Adjustment on Capital 15 9.355.195 9.355.195
Share Premium (Discount) 15 1.657.675 1.657.675
Other Accumulated Comprehensive Income (Loss) that will not be (240.924) (243.420)
Reclassified in Profit or Loss
- Revaluation and Remeasurement Gain/Loss (240.924) (243.420)
Other Accumulated Comprehensive Income (Loss) that will be
Reclassified in Profit or Loss
(12.879.093) (8.291.265)
- Currency Translation Differences 24.812.296 27.642.040
- Gains (Losses) on Hedge (37.691.389) (35.933.305)
Restricted Reserves Appropriated from Profits 15 4.164.777 4.164.777
Prior Years' Profits or Losses 67.047.630 41.585.188
Current Period Net Profit or Losses 3.140.536 25.462.442
Non-Controlling Interests 73.772.591 75.160.004
Total Equity 146.610.492 149.442.701
TOTAL LIABILITIES 304.275.404 305.179.282

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

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

Notes Unaudited
January 1 - March 31
2024
January 1 - March 31
2023
Revenue 4 43.561.632 41.432.663
Cost of Sales (-) (27.961.340) (27.342.585)
GROSS PROFIT (LOSS) 15.600.292 14.090.078
General Administrative Expenses (-) (3.721.580) (3.126.133)
Sales, Distribution and Marketing Expenses (-) (8.952.940) (7.711.260)
Other Income from Operating Activities 19 1.217.578 1.022.276
Other Expenses from Operating Activities (-) 19 (1.429.182) (1.187.730)
PROFIT (LOSS) FROM OPERATING
ACTIVITIES
4 2.714.168 3.087.231
Investment Activity Income 20 51.775 56.764
Investment Activity Expenses (-) 20 (29.945) (24.536)
Share of Loss from Investments Accounted for
Using Equity Method
10 (11.075) (95.609)
PROFIT (LOSS) BEFORE FINANCING
INCOME (EXPENSE)
4 2.724.923 3.023.850
Finance Income 21 3.354.701 3.266.311
Finance Expenses (-) 21 (4.008.001) (4.191.723)
Monetary Gain / (Loss) 4.059.905 4.866.346
PROFIT (LOSS) FROM CONTINUING
OPERATIONS BEFORE TAX
4 6.131.528 6.964.784
Tax (Expense) Income, Continuing Operations 4 (986.746) (1.778.142)
- Current Period Tax Expense (-) (1.947.940) (1.823.711)
- Deferred Tax Income (Expense) 961.194 45.569
PROFIT/(LOSS) FROM
CONTINUING OPERATIONS
5.144.782 5.186.642
PROFIT/(LOSS) 5.144.782 5.186.642
Profit/(Loss) Attributable to 5.144.782 5.186.642
- Non-Controlling Interest 2.004.246 2.161.575
- Owners of Parent 3.140.536 3.025.067
Earnings / (Loss) Per Share (Full TRL) 23 5,3040 5,1090
Earnings / (Loss) Per Share
From Continuing Operations (Full
TRL)
23 5,3040 5,1090

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

INTERIM CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

Unaudited
January 1- January 1-
March 31, March 31,
2024 2023
5.144.782 5.186.642

OTHER COMPREHENSIVE INCOME

Other Comprehensive Income that will not be Reclassified to Profit or Loss 4.967 -
Gains (Losses) on Remeasurements Defined Benefit Plans 6.623 -
Taxes Relating to Components of Other Comprehensive Income that will not be
Reclassified to Other Profit or Loss
(1.656) -
- Deferred Tax Income (Expense) (1.656) -
Other Comprehensive Income that will be Reclassified to Profit or Loss (7.980.879) (16.680.315)
Currency Translation Differences (5.501.009) (16.819.289)
Other Comprehensive Income (Loss) Related with Cash Flow Hedge 68.976 1.100.210
Other Comprehensive Income (Loss) Related with Hedges of Net Investment in
Foreign Operations (Note 25)
(3.382.796) (990.031)
Taxes Relating to Components of Other Comprehensive Income that will be
Reclassified to Other Profit or Loss
833.950 28.795
- Deferred Tax Income (Expense) 833.950 28.795
OTHER COMPREHENSIVE INCOME (LOSS) (7.975.912) (16.680.315)
TOTAL COMPREHENSIVE INCOME (LOSS) (2.831.130) (11.493.673)
Total Comprehensive Income (Loss) Attributable to
- Non-Controlling Interest (1.386.334) (5.789.309)
- Owners of Parent (1.444.796) (5.704.364)

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

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

Oth
er A
mul
ated
ccu
Com
hen
sive
Inc
pre
ome
that
wil
l no
t be
lass
ified
rec
in P
rofi
t or
Lo
ss
Oth
er A
ccu
Com
hen
sive
pre
will
be
recl
assi
Los
mul
ated
Inc
tha
t
ome
fied
in P
rofi
t or
s
aine
Ret
d E
ings
arn
Issu
ed
Cap
ital
Infl
atio
n
Adj
ustm
ent
on
Cap
ital
Sha
re
Pre
miu
m/
(Dis
nt)
cou
Rev
alua
tion
and
Rem
ent
Gai
n/
easu
rem
(Lo
ss)
(*)
Cur
ren
cy
Tra
nsla
tion
Diff
eren
ces
Gai
ns
(Lo
) on
sses
Hed
ge
Res
tric
ted
Res
erve
s
App
riat
ed
rop
from
Pro
fits
Prio
r Y
'
ears
Pro
fits
or (
Los
ses)
Cur
t
ren
Per
iod
Net
Pro
fit o
r
(Lo
ss)
Equ
ity
Att
ribu
tabl
e to
Equ
ity H
olde
rs
of t
he P
t
aren
Non
-Co
ntro
llin
g
Inte
rest
s
Tot
al E
quit
y
3)
02
Beg
inni
ng B
alan
ces
592
.105
9.35
5.19
5
1.65
7.67
5
(266
)
.362
36.5
80.4
99
(25.
)
810
.912
4.08
0.38
8
30.3
63.4
33
17.7
01.6
21
74.2
53.6
42
80.7
66.2
37
155
.019
.879
, 2
d
31
io
Tran
sfer
s
- - - - - - - 17.7
01.6
21
(17.
701
.621
)
- - -
er
ch
P
ar
s
M
l Co
ehen
sive
(Lo
ss)
Tota
Inc
mpr
ome
- - - - (8.6
44)
84.5
(44.
)
887
- - 3.02
5.06
7
(5.7
64)
04.3
(5.7
09)
89.3
(11.
)
493
.673
ou
1–
vi
Prof
it (L
oss)
- - - - - - - - 3.02
5.06
7
3.
025
.067
2.1
61.5
75
5.
186
.642
ry
re
ua
P
ther
ehen
(Los
s)
O
Co
sive
Inc
mpr
ome
- - - - (8.6
44)
84.5
(44
)
.887
- - - (8.7
31)
29.4
(7.9
84)
50.8
(16.
)
680
.315
an
( J
ing
End
Bal
anc
es
592
.105
9.35
5.19
5
1.65
7.67
5
(266
.362
)
27.8
95.9
55
(25.
855
.799
)
4.08
0.38
8
48.0
65.0
54
3.02
5.06
7
68.5
49.2
78
74.9
76.9
28
143
.526
.206
Beg
inni
ng B
alan
ces
592
.105
9.35
5.19
5
1.65
7.67
5
(243
.420
)
27.6
42.0
40
(35.
933
.305
)
4.16
4.77
7
41.5
85.1
88
25.4
62.4
42
74.2
82.6
97
75.1
60.0
04
149
.442
.701
4)
02
, 2
Tran
sfer
s
- - - - - - - 25.4
62.4
42
(25.
462
.442
)
- - -
d
31
io
er
ch
l Co
ehen
sive
(Lo
ss)
Tota
Inc
mpr
ome
- - - 2.49
6
(2.8
29.7
44)
(1.7
58.0
84)
- - 3.14
0.53
6
(1.4
44.7
96)
(1.3
86.3
34)
(2.8
31.1
30)
P
ar
nt
M
re
1–
ur
ry
C
ua
an
(J
rofi
t (L
oss)
P
- - - - - - - - 3.14
0.53
6
3.1
40.5
36
2.0
04.2
46
5.1
44.7
82
O
ther
Co
ehen
(Lo
ss)
sive
Inc
mpr
ome
- - - 2.49
6
(2.8
29.7
44)
(1.7
58.0
84)
- - - (4.5
85.3
32)
(3.3
90.5
80)
(7.9
75.9
12)
Div
iden
ds
- - - - - - - - - - (1.0
79)
(1.0
79)
End
ing
Bal
anc
es
592
.105
9.35
5.19
5
1.65
7.67
5
(240
.924
)
24.8
12.2
96
(37.
691
.389
)
4.16
4.77
7
67.0
47.6
30
3.14
0.53
6
72.8
37.9
01
73.7
72.5
91
146
.610
.492

(*) Gains (Losses) on Remeasurements of Defined Benefit Plans.

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

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

Unaudited
Notes January 1-
March 31, 2024
January 1-
March 31, 2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (3.596.251) (1.592.167)
Profit/ (Loss) from Continuing Operation for the Period 5.144.782 5.186.642
Adjustments to Reconcile Profit (Loss) (183.885) (94.149)
Adjustments for Depreciation and Amortization Expense 4 2.415.498 2.434.084
Adjustments for Impairment Loss (Reversal) 27 64.117 41.499
Adjustments for Provisions 447.267 214.423
- Adjustments for Provision/(Reversal) for Employee Benefits 27 316.114 226.344
- Adjustments for Other Provisions/(Reversals) 131.153 (11.921)
Adjustments for Interest (Income) Expenses 27 1.949.215 1.143.410
Adjustments for Foreign Exchange Losses (Gains) (1.324.950) 405.362
Adjustments for Fair Value (Gains) Losses 27 (66.695) (127.448)
Adjustments for Undistributed Profits of Investments Accounted for Using Equity
Method
10 11.075 95.609
Adjustments for Tax (Income) Expenses 986.746 1.778.142
Adjustments for Losses (Gains) on Disposal of Non-Current Assets 20 (22.857) (47.163)
Other Adjustments to Reconcile Profit (loss) 2.776 (9.057)
Adjustments for Monetary (Gain) Loss (4.646.077) (6.023.010)
Change in Working Capital (6.931.721) (5.117.136)
Adjustments for Decrease (Increase) in Accounts Receivables (8.464.274) (6.214.874)
Adjustments for Decrease (Increase) in Other Receivables Related with Operations (2.933.488) (1.661.398)
Adjustments for Decrease (Increase) in Inventories 3.930.997 814.003
Adjustments for Increase (Decrease) in Trade Accounts Payable (1.937.687) 1.540.769
Adjustments for Increase (Decrease) in Other Operating Payables 2.472.731 404.364
Cash Flows from (used in) Operations (1.970.824) (24.643)
Payments Related with Provisions for Employee Benefits (129.053) (188.359)
Income Taxes (Paid) Return (1.496.371) (1.254.974)
Other Provisions (Paid) (3) (124.191)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (3.283.122) (4.073.056)
Cash Outflows Arising from Purchase of Shares or Capital Increase of
Associates and/or Joint Ventures 10 (16.616) -
Proceeds from Sales of Property, Plant, Equipment 666.949 143.398
Cash Outflows Arising from Purchase of Property, Plant, Equipment and Intangible
Assets
12,13 (3.119.043) (3.349.050)
Cash (Outflows)/Inflows Related to Purchases for Obtaining Control of Subsidiaries 27 (814.412) -
Advances and Funds Given to Related Parties - (867.404)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES (900.059) 1.902.840
Proceeds from Borrowings 7a 13.573.479 9.180.799
Repayments of Borrowings 7a (11.391.132) (6.025.307)
Payments of Lease Liabilities 7b (261.706) (158.788)
Cash Inflows from Settlement of Derivative Instruments (Trading) - 56.402
Cash Outflows from Settlement of Derivative Instruments (Trading) (23.938) -
Dividend Paid (1.079) -
Interest Paid 7a (2.989.118) (1.509.963)
Interest Received 577.351 312.958
Other Inflows (Outflows) of Cash 27 (383.916) 46.739
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS
BEFORE CURRENCY TRANSLATION DIFFERENCES (7.779.432) (3.762.383)
Effect of Currency Translation Differences on Cash and Cash Equivalents (255.697) (1.858.902)
MONETARY LOSS ON CASH AND CASH EQUIVALENTS (692.048) (675.545)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (8.727.177) (6.296.830)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 5 47.399.692 45.157.780
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 5 38.672.515 38.860.950

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

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 1. GROUP'S ORGANIZATION AND NATURE OF ACTIVITIES

General

Anadolu Efes Biracılık ve Malt Sanayii A.Ş. (Anadolu Efes, the Company) was established in İstanbul in 1966. Certain shares of Anadolu Efes are listed on the Borsa İstanbul (BIST).

The registered office of the Company is located at the address "Fatih Sultan Mehmet Mahallesi, Balkan Caddesi No:58, Buyaka E Blok, Tepeüstü, Ümraniye - İstanbul".

The Company, its subsidiaries and joint ventures will be referred to as the "Group". The average number of permanent personnel employed in the Group is 18.770 (December 31, 2023 – 19.051).

The interim condensed consolidated financial statements of the Group approved by the Board of Directors of the Company and signed by the Chief Financial Officer, Gökçe Yanaşmayan and Finance Director, Kerem İşeri were issued on May 23, 2024. General Assembly and specified regulatory bodies have the right to make amendments to statutory financial statements after issue.

Nature of Activities of the Group

The operations of the Group consist of production, bottling, selling and distribution of beer under a number of trademarks and also production, bottling, distribution and selling of sparkling and still beverages with The Coca- Cola Company (TCCC) trademark.

The Group owns and operates twenty-one breweries; three in Türkiye, eleven in Russia and seven in other countries (December 31, 2023 - twenty-one breweries; three in Türkiye, eleven in Russia and seven in other countries). The Group makes production of malt in two locations in Türkiye and three locations in Russia (December 31, 2023 – production of malt in two locations in Türkiye and three locations in Russia). Entities carrying out the relevant activities will be referred as "Beer Operations".

The Group operates ten facilities in Türkiye, twenty-one facilities in other countries for sparkling and still beverages production and three facilities for fruit processing. (December 31, 2023 - ten facilities in Türkiye, twenty facilities in other countries and three facilities for fruit processing). Entities carrying out the relevant activities will be referred as "Soft Drink Operations".

The Group also has joint control over Syrian Soft Drink Sales & Dist. LLC (SSDSD), which undertakes distribution and sales of sparkling and still beverages in Syria. In addition, the Company participates in Malty Gıda A.Ş., which produces, distributes, and sells healthy snacks in Türkiye and Trendbox Innovative Solutions Inc., which operates in computer programming.

List of Shareholders

As of March 31, 2024, and December 31, 2023, the composition of shareholders and their respective percentage of ownership can be summarized as follows:

March 31, 2024 December 31, 2023
Amount
(%)
Amount (%)
AG Anadolu Grubu Holding A.Ş. 254.891 43,05 254.891 43,05
AB Inbev Harmony Ltd. 142.105 24,00 142.105 24,00
Publicly traded and other 195.109 32,95 195.109 32,95
592.105 100,00 592.105 100,00

The Company is controlled by AG Anadolu Grubu Holding A.Ş., the parent company. AG Anadolu Grubu Holding A.Ş. is controlled by AG Sınai Yatırım ve Yönetim A.Ş. and AG Sınai Yatırım ve Yönetim A.Ş. which is ultimately managed by the Süleyman Kamil Yazıcı Family and the Özilhan Family in accordance with equal representation and equal management principle and manages AG Anadolu Grubu Holding A.Ş.'s subsidiaries.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 1. GROUP'S ORGANIZATION AND NATURE OF ACTIVITIES (continued)

List of Subsidiaries, Joint Ventures, and Associates

The subsidiaries, joint ventures and associates included in the consolidation and their effective shareholding rates at March 31, 2024 and December 31, 2023 are as follows:

Effective Shareholding
Country Principal Activity Segment And Voting Rights %
March 31,
December
2024 31, 2023
Subsidiaries:
Efes Breweries International B.V. (EBI) The Netherlands Managing foreign investments in breweries Beer Group 100,00 100,00
JSC FE Efes Kazakhstan Brewery (Efes Kazakhstan) Kazakhstan Production and marketing of beer Beer Group 100,00 100,00
International Beers Trading LLP (IBT) Kazakhstan Marketing of beer Beer Group 100,00 100,00
Efes Vitanta Moldova Brewery S.A. (Efes Moldova) Moldova Production and marketing of beer and low alcoholic drinks Beer Group 96,87 96,87
JSC Lomisi (Efes Georgia) Georgia Production and sales of beer and carbonated soft drinks Beer Group 100,00 100,00
PJSC Efes Ukraine (Efes Ukraine) Ukraine Production and marketing of beer Beer Group 99,94 99,94
Efes Trade BY FLLC (Efes Belarus) Belarus Marketing and distribution of beer Beer Group 100,00 100,00
Efes Holland Technical Management
Consultancy B.V. (EHTMC)
The Netherlands Leasing of intellectual property and similar products Beer Group 100,00 100,00
AB InBev Efes B.V. (AB InBev Efes) The Netherlands Investment company Beer Group 50,00 50,00
JSC AB Inbev Efes (1) Russia Production and marketing of beer Beer Group 50,00 50,00
PJSC AB Inbev Efes Ukraine (1) Ukraine Production and marketing of beer Beer Group 49,36 49,36
LLC Vostok Solod (2) Russia Production of malt Beer Group 50,00 50,00
LLC Bosteels Trade (2) Russia Selling and distribution of beer Beer Group 50,00 50,00
LLC Inbev Trade (2) Russia Production of malt Beer Group 50,00 50,00
Euro-Asien Brauerein Holding GmbH (Euro-Asien) (1) (5) Germany Investment company Beer Group 50,00 50,00
Bevmar GmbH (Bevmar) (1) (5) Germany Investment company Beer Group 50,00 50,00
Efes Pazarlama ve Dağıtım Ticaret A.Ş. (Ef-Pa) (3) Marketing and distribution company of the Group in
Türkiye Türkiye Beer Group 100,00 100,00
Cypex Co. Ltd. (Cypex) Northern Cyprus Marketing and distribution of beer Beer Group 99,99 99,99
Efes Deutschland GmbH (Efes Germany) Germany Marketing and distribution of beer Beer Group 100,00 100,00
Blue Hub Ventures B.V. (Blue Hub) The Netherlands Investment company Beer Group 100,00 100,00
Efes Brewery S.R.L. (Efes Romania) Romania Marketing and distribution of beer Beer Group 100,00 100,00
Coca-Cola İçecek A.Ş. (CCİ) (4) Türkiye Production and sales of fruit juice concentrates and sales of
purees and fresh fruit sales
Soft Drinks 50,26 50,26
Coca-Cola Satış ve Dağıtım A.Ş. (CCSD) Türkiye Production of Coca-Cola products Soft Drinks 50,25 50,25
J.V. Coca-Cola Almaty Bottlers LLP (Almaty CC) Kazakhstan Distribution and selling of Coca-Cola, Doğadan and
Mahmudiye products
Soft Drinks 50,26 50,26
Azerbaijan Coca-Cola Bottlers LLC (Azerbaijan CC) Azerbaijan Production, distribution and selling of Coca Cola products Soft Drinks 50,19 50,19
Coca-Cola Bishkek Bottlers CJSC (Bishkek CC) Krygyzstan Production, distribution and selling of Coca Cola products Soft Drinks 50,26 50,26
CCI International Holland B.V. (CCI Holland)
The Coca-Cola Bottling Company of Jordan Ltd.
Jordan The Netherlands Production, distribution and selling of Coca Cola products
Investment company of CCİ
Soft Drinks
Soft Drinks
50,26
50,26
50,26
50,26
(Jordan CC)
Turkmenistan Coca-Cola Bottlers Ltd.
Turkmenistan Production, distribution and selling of Coca Cola products Soft Drinks 29,90 29,90
(Turkmenistan CC) (6)
Sardkar for Beverage Industry Ltd. (SBIL) Iraq Production, distribution and selling of Coca Cola products Soft Drinks 50,26 50,26
Waha Beverages B.V. The Netherlands Production, distribution and selling of Coca Cola products Soft Drinks 50,26 50,26
Coca-Cola Beverages Tajikistan LLC
(Coca Cola Tacikistan)
Tajikistan Investment company of CCİ Soft Drinks 50,26 50,26
Al Waha for Soft Drinks, Juices, Mineral Water, Plastics,
and Plastic Caps Production LLC (Al Waha)
Iraq Production, distribution and selling of Coca Cola products Soft Drinks 50,26 50,26
Coca-Cola Beverages Pakistan Ltd (CCBPL) Pakistan Production, distribution and selling of Coca Cola products Soft Drinks 49,92 49,92
Coca-Cola Bottlers Uzbekistan Ltd. (CCBU)
CCI Samarkand Limited LLC (Samarkand)
Uzbekistan
Uzbekistan
Production, distribution and selling of Coca Cola products
Production, distribution and selling of Coca Cola products
Soft Drinks
Soft Drinks
50,26 50,26
50,26
CCI Namangan Limited LLC (Namangan) Uzbekistan Production and sales of fruit juice concentrates and sales of
purees and fresh fruit sales
Soft Drinks 50,26
50,26
50,26
Anadolu Etap Penkon Gıda ve İçecek Ürünleri San.
ve Tic. A.Ş. (Anadolu Etap İçecek)
Türkiye Production and sales of purees and fresh fruit sales Soft Drinks 55,92 55,92
Anadolu Etap Dış Ticaret Anonim Şirketi
CCI Bangladesh Limited (CCBB) (Note 3)
Türkiye
Bangladesh
Production and sales of purees and fresh fruit sales
Production, distribution and selling of Coca Cola products
Soft Drinks
Soft Drinks
55,92
50,26
55,92
-
Anadolu Etap Penkon Gıda ve Tarım Ürünleri San.
ve Tic. A.Ş. (Anadolu Etap)
Türkiye Production and sales of purees and fresh fruit sales Other 78,58 78,58
Joint Ventures:
Syrian Soft Drink Sales & Dist. LLC (SSDSD) Syria Distribution and sales of Coca-Cola products Soft Drinks 25,13 25,13
Associates:
Malty Gıda A.Ş. (Malty) Türkiye Production, distribution and sales of healthy snack Beer Group 25,00 25,00
Trendbox Innovative Solutions A.Ş. (Trendbox) (7) Türkiye Computer programming Beer Group 20,00 -

(1) Subsidiaries that AB Inbev Efes B.V. directly participates.

(2) Subsidiaries of JSC AB Inbev Efes. (3) The Company's beer operations in Türkiye form the Türkiye Beer Operations together with Ef-Pa.

(4) Shares of CCİ are currently traded on BIST.

(5) Liquidation process of Euro-Asien and Bevmar initiated with the BOD decision of AB Inbev Efes B.V. dated December 22, 2021.

(6) Turkmenistan CC is controlled by CCI and is fully consolidated in accordance with TFRS as the Company has control over CCI

(7)Blue Hub has acquired a 20,00% stake in Trendbox Innovative Solutions Inc. by participating the capital increase as of January 15, 2024.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 1. GROUP'S ORGANIZATION AND NATURE OF ACTIVITIES (continued)

Work Environments and Economic Conditions of Subsidiaries and Joint Ventures in Foreign Countries

Certain countries, in which consolidated subsidiaries and joint ventures operate, have undergone substantial political and economic changes in recent years. Accordingly, such markets do not possess well-developed business infrastructures and the Group's operations in such countries might carry risks, which are not typically associated with those in more developed markets. Uncertainties regarding the political, legal, tax and/or regulatory environment, including the potential for adverse changes in any of these factors, could significantly affect the commercial activities of subsidiaries and joint ventures.

Developments in Russia and Ukraine

The Group is closely following the developments in Russia and Ukraine, where the Group has beer operations. The Group has taken all possible precautions to ensure the safety of its employees, as well as its manufacturing facilities and infrastructure security. Accordingly, as of February 24, 2022, breweries were shut down and the sales operations were halted. In the light of the developments in the region, the brewery facilities in Chernihiv and Mykolayiv, in Ukraine restarted production as of October 2022 and May 2023, respectively.

The Group has evaluated the possible effects of the developments in Russia and Ukraine on the financial statements and reviewed the estimates and assumptions used in the preparation of the interim condensed consolidated financial statements. In this context, the Group has not made any significant changes in the estimates of possible impairment in the values of financial assets, inventories, property, plant and equipment, right-of-use assets, deferred tax assets, goodwill and brands in the interim consolidated financial statements as of March 31, 2024, compared to the end of the year.

NOTE 2. BASIS OF PRESENTATION OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2.1 Basis of Preparation and Presentation of Interim Condensed Consolidated Financial Statements

Statement of Compliance to TFRS

The consolidated financial statements are prepared in accordance with the Capital Markets Board (CMB)'s "Communiqué on Financial Reporting in Capital Market" Numbered II-14,1 (Communiqué), promulgated in the Official Gazette numbered 28676 dated June 13, 2013 and Turkish Accounting/Financial Reporting Standards (TAS/TFRS) including amendments and interpretations published by Public Oversight Authority (POA) as prescribed in the CMB Communiqué.

The consolidated financial statements are presented in accordance with the specified format in "TFRS Taxonomy Announcement", issued on October 4, 2022 by the POA, and "the Financial Statements Examples and Guidelines for Use", published by the Capital Markets Board (CMB) of Türkiye.

The Company and its Turkish subsidiaries and joint ventures maintain their books of accounts and prepare their statutory financial statements in accordance with TFRS, Turkish Commercial Code ("TCC"), tax legislation, the Uniform Chart of Accounts issued by the Ministry of Finance. The foreign subsidiaries maintain their books of account in accordance with the laws and regulations in force in the countries in which they are registered. These consolidated financial statements have been prepared under historical cost conventions except for financial assets and financial liabilities which are carried at fair value. The consolidated financial statements are based on statutory records, which are maintained under historical cost conventions in foreign operations and indexed cost conventions in domestic operations based on TAS 29, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with TFRS .

In accordance with the TAS, the entities are allowed to prepare a complete or condensed set of interim financial statements in accordance with TAS 34, "Interim Financial Reporting". In this respect, the Group has preferred to prepare condensed consolidated financial statements in the interim periods and prepared the aforementioned interim condensed consolidated financial statements in compliance with CMB Financial Reporting Standards

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 2. BASIS OF PRESENTATION OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.1 Basis of Preparation and Presentation of Interim Condensed Consolidated Financial Statements (continued)

Additionally, in accordance with the Communiqué and its explanatory announcements, the collateral, pledge, and mortgage table, the foreign exchange position table, the total export and import amounts, the tax advantages obtained under the investment incentive system, the R&D incentives, and the portion of the total foreign exchange liability that is hedged are presented in the notes to the condensed financial statements (Notes 16, 22, 25).

The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the accompanying notes for the year ended December 31, 2023.

Adjustment of financial statements in hyperinflationary periods

With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on November 23, 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after March 31, 2024. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy.

According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of March 31, 2023, and December 31, 2023 on the purchasing power basis as of March 31, 2024.

In accordance with the CMB's decision dated December 28, 2023, and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 to their annual financial statements for the accounting periods ending on December 31, 2023.

The restatements in accordance with TAS 29 have been made using the adjustment factor derived from the Consumer Price Index ("CPI") in Türkiye published by the Turkish Statistical Institute. As of March 31, 2024, the indexes and adjustment factors used in the restatement of the consolidated financial statements are as follows:

Adjustment
Dates Index Coefficent Three-Year Compound Inflation Rate
March 31, 2024 2.139,47 1,00000 211%
December 31, 2023 1.859,38 1,15064 268%
March 31, 2023 1.269,75 1,68495 152%

The main components of Company's restatement for the purpose of financial reporting in hyperinflationary economies are as follows:

  • The consolidated financial statements for the current period presented in TRL are expressed in terms of the purchasing power at the balance sheet date and the amounts for the previous reporting periods are restated in accordance with the purchasing power at the end of the reporting period.
  • Monetary assets and liabilities are not restated as they are currently expressed in terms of the purchasing power at the reporting period. Where the inflation-adjusted amounts of non-monetary items exceed the recoverable amount or net realizable value, the provisions of TAS 36 and TAS 2 have been applied, respectively.
  • Non-monetary assets, liabilities and equity items that are not expressed in the current purchasing power at the reporting period are restated by applying the relevant conversion factors.
  • All items in the statement of comprehensive income, except for the effects of non-monetary items in the statement of financial position on the statement of comprehensive income, have been restated by applying the multipliers calculated over the periods in which the income and expense accounts were initially recognized in the financial statements.
  • The effect of inflation on the Group's net monetary asset position in the current period is recognized in the consolidated statement of profit or loss in the net monetary position loss account.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

2.2 Functional and Reporting Currency

Functional and reporting currency of the Company and its subsidiaries, located in Türkiye is Turkish Lira.

Functional Currency of Significant Subsidiaries Located in Foreign Countries

Functional Currency
Subsidiary Local Currency 2024 2023
EBI European Currency (EUR) USD USD
JSC AB Inbev Efes Russian Ruble (RUR) RUR RUR
PJSC AB Inbev Efes Ukraine Ukraine Hryvnya (UAH) UAH UAH
AB InBev Efes B.V. European Currency (EUR) USD USD
Efes Kazakhstan Kazakh Tenge (KZT) KZT KZT
Efes Moldova Moldovan Leu (MDL) MDL MDL
Efes Georgia Georgian Lari (GEL) GEL GEL
EHTMC European Currency (EUR) USD USD
Efes Germany European Currency (EUR) EUR EUR
Efes Romania Romanian Leu (RON) RON RON
Efes Belarus Belarusian Ruble (BYR) BYR BYR
Almaty CC Kazakh Tenge (KZT) KZT KZT
Azerbaijan CC Azerbaijani Manat (AZN) AZN AZN
Turkmenistan CC Turkmenistan Manat (TMT) TMT TMT
Bishkek CC Kyrgyz Som (KGS) KGS KGS
TCCBCJ Jordan Dinar (JOD) JOD JOD
SIBL Iraqi Dinar (IQD) IQD IQD
CCBPL Pakistan Rupee (PKR) PKR PKR
CCI Holland European Currency (EUR) USD USD
Waha B.V. European Currency (EUR) USD USD
Al Waha Iraqi Dinar (IQD) IQD IQD
Tacikistan CC Tajikistani Somoni (TJS) TJS TJS
CCBU Uzbekistan Som (UZS) UZS UZS
CCBB Bangladeshi Taka (BDT) BDT -

2.3 Seasonality of Operations

Due to higher beverage consumption during the summer season, the interim condensed consolidated financial results may include the effects of the seasonal variations. Therefore, the results of business operations for the first three months up to March 31, 2024 may not necessarily constitute an indicator for the results to be expected for the overall fiscal year.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 2. BASIS OF PRESENTATION OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

2.4 Significant Accounting Estimates and Decisions

Preparation of consolidated financial statements requires management to make estimations and assumptions which may affect the reported amounts of assets and liabilities as of the statement of financial position date, the disclosure of contingent assets and liabilities and the reported amounts of income and expenses during the financial period. The accounting assessments, estimates and assumptions are reviewed considering past experiences, other factors, and reasonable expectations about future events under current conditions. Although the estimations and assumptions are based on the best estimates of the management's existing incidents and operations, they may differ from the actual results. There has not been any change in accounting estimates compared to year end.

2.5 Changes in Accounting Policies

Adoption of new and revised Turkish Financial Reporting Standards

Standards, amendments, and interpretations applicable as of March 31, 2024:

Amendment to TFRS 16 – Leases on sale and leaseback; effective from annual periods beginning on or after January 1, 2024. These amendments include requirements for sale and leaseback transactions in TFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.

Amendment to TAS 1 – Non-current liabilities with covenants; effective from annual periods beginning on or after January 1, 2024. These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions.

Amendments to TAS 7 and TFRS 7 on Supplier finance arrangements; effective from annual periods beginning on or after January 1, 2024. These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis.

TFRS S1, 'General requirements for disclosure of sustainability-related financial information; effective from annual periods beginning on or after January 1, 2024. This standard includes the core framework for the disclosure of material information about sustainability-related risks and opportunities across an entity's value chain.

TFRS S2, 'Climate-related disclosures'; effective from annual periods beginning on or after January 1, 2024. This is the first thematic standard issued that sets out requirements for entities to disclose information about climate-related risks and opportunities.

The Group is assessing the implications of these changes on the consolidated financial statements.

Standards, amendments, and interpretations that are issued but not effective as of March 31, 2024:

Amendments to TFRS 17, 'Insurance Contracts'; effective from annual periods beginning on or after January 1, 2023. This standard replaces TFRS 4, which permited a wide variety of practices in accounting for insurance contracts. TFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts. The implementation date of TFRS 17 has been postponed to January 1, 2025, by POA.

Amendments to TAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after January 1, 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

These changes are not expected to have a material impact on the consolidated financial statements.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 3. BUSINESS COMBINATIONS

Transactions Related to the Three-Month Period Ended in March 31, 2024

Purchase for Obtaining Control of Subsidiaries

As of February 20, 2024, the Group has acquired 100% of the share capital representing CCBB for a total enterprise value of 130 million USD, to be calculated by subtracting the estimated net financial debt as at the finalization of transaction. The share price is subject to a price adjustment mechanism, and it will be recalculated upon the finalization of CCBB's net financial debt as at the transaction date through an independent audit to be conducted.

CCBB
Net Book Value
Cash and cash equivalents 91.606
Trade receivables and payables 15.664
Inventories 956.550
Property, plant and equipment 3.725.381
Right-of-use assets 21.580
Other current and non-current assets 222.360
Total Assets 5.033.141
Deferred tax liabilities 142.648
Borrowings 2.208.631
Lease liabilities 21.580
Trade payables 724.310
Other current and non-current liabilities 399.469
Total Liabilities 3.496.638
Net assets / (liabilities) 1.536.503
Total acqusition cost(*) (1.821.463)
Net assets/(liabilities) attributable to the group's consolidated portion 1.536.503
Goodwill recognized through business combination (284.960)

(*) The purchase price has been calculated as TRL 4.009.044, and after deducting company debt of TRL 2.187.581 from this amount, the acquisition cost has been determined to be TRL 1.821.463.

Transactions related to the three-month period ended on March 31, 2023

None.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 4. SEGMENT REPORTING

The management monitors the operating results of its two business units separately for the purpose of making decisions about the resource allocation and performance assessment. The two operating segments are Beer Operations (Beer Group) and Soft Drinks Operations (Soft Drinks).

Segment performance is evaluated based on "EBITDA Before Non-Recurring Items" (EBITDA BNRI) which is calculated excluding profit from discontinued operations and the following effects from profit from continuing operations attributable to our equity holders:

(i) non-controlling interest, (ii) tax (expense)/income, (iii) share of gain/(loss) of investments accounted using equity method, (iv) financial income/(expense), (v) investment activity income/(expense) (vi) foreign exchange gains/(losses) arising from operating activities (vii) depreciation, amortization, and other non- cash items and (viii) non-recurring items associated with Profit/Loss from Operating Activities. Non-recurring items are either income or expenses which do not occur regularly as part of the normal activities of the Group.

EBITDA BNRI is not an accounting measure under TFRS accounting and does not have a standard calculation method however it has been considered as the optimum indicator for the evaluation of the performance of the operating segments by considering the comparability with the entities in the same business.

The Group's segment reporting in accordance with TFRS 8 is disclosed as follows:

January 1 – March 31, 2024 Beer Soft Other(1)and
Group Drinks Eliminations Total
Net sales 16.204.191 27.229.898 133.948 43.568.037
Inter-segment sales - (473) (5.932) (6.405)
Revenue 16.204.191 27.229.425 128.016 43.561.632
EBITDA BNRI 1.094.711 4.463.828 (46.014) 5.512.525
Impairment losses - (5.482) - (5.482)
Reversals of impairment losses - 4.455 - 4.455
Financial Income / (Expense) 507.279 (1.145.034) (15.545) (653.300)
Tax Income / (Expense) 723.077 (1.875.246) 165.423 (986.746)

Capital expenditures 832.549 2.232.146 54.348 3.119.043 (1) Presents group consolidation adjustments and the financial statement of Anadolu Etap.

Beer Soft Other(1)and
January 1 – March 31, 2023 Group Drinks Eliminations Total
Net sales 14.983.098 26.450.424 - 41.433.522
Inter-segment sales - (859) - (859)
Revenue 14.983.098 26.449.565 - 41.432.663
EBITDA BNRI 1.601.740 4.399.054 7 6.000.801
Impairment losses - (17.117) - (17.117)
Reversals of impairment losses - 2.182 - 2.182
Financial Income / (Expense) (157.497) (767.884) (31) (925.412)
Tax Income / (Expense) (353.292) (1.431.395) 6.545 (1.778.142)
Capital expenditures 1.190.473 2.158.640 (63) 3.349.050

(1) Presents group consolidation adjustments.

As of March 31, 2024, the portion of Türkiye geographical area in the consolidated net revenue and total assets is 32% and 40% respectively (March 31, 2023- 30% and 37% respectively).

As of March 31, 2024, the portion of Russia and Ukraine geographical area in the consolidated net revenue and total assets is 25% and 24% respectively (March 31, 2023- 24% and 26% respectively).

As of March 31, 2024, the portion of Kazakhstan geographical area in the consolidated net revenue and total assets is 15% and 10% respectively (March 31, 2023- 17% and 10% respectively).

As of March 31, 2024, the portion of Pakistan geographical area in the consolidated net revenue and total assets is 8% and 5% respectively (March 31, 2023- 10% and 4% respectively).

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 4. SEGMENT REPORTING (continued)

March 31, 2024 Beer
Group
Soft
Drinks
Other (1)and
Eliminations
Total
Segment assets 116.486.159 131.636.585 56.152.660 304.275.404
Segment liabilities 63.833.572 80.549.201 13.282.139 157.664.912
Investments Accounted for Using Equity
Method
15.880 - - 15.880
December 31, 2023 Beer
Group
Soft
Drinks
Other (1)and
Eliminations
Total
Segment assets 121.942.977 126.752.183 56.484.122 305.179.282
Segment liabilities 67.408.026 75.025.416 13.303.139 155.736.581
Investments Accounted for Using Equity
Method
564 - - 564

(1) Presents group consolidation adjustments and the financial statement of Anadolu Etap.

Reconciliation of EBITDA BNRI to the consolidated Profit from Continuing Operations and its components as of March 31, 2024 and 2023 are as follows:

January 1 –
March 31, 2024
January 1 –
March 31, 2023
EBITDA BNRI 5.512.525 6.000.801
Depreciation and amortization expenses (2.415.498) (2.434.084)
Provision for retirement pay liability (82.632) (65.275)
Provision for vacation pay liability (176.598) (106.266)
Foreign exchange gain/loss from operating activities (34.477) (273.606)
Rediscount income/expense from operating activities (10.974) (30)
Non-recurring items (24.877) -
Other (53.301) (34.309)
PROFIT (LOSS) FROM OPERATING ACTIVITIES 2.714.168 3.087.231
Investment Activity Income 51.775 56.764
Investment Activity Expenses (-) (29.945) (24.536)
Income/(Loss) from Associates (11.075) (95.609)
PROFIT (LOSS) BEFORE FINANCING INCOME
(EXPENSE)
2.724.923 3.023.850
Finance Income 3.354.701 3.266.311
Finance Expenses (-) (4.008.001) (4.191.723)
Monetary Gain/ (Loss) 4.059.905 4.866.346
PROFIT (LOSS) FROM CONTINUING OPERATIONS 6.131.528 6.964.784

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 5. CASH AND CASH EQUIVALENTS

March 31,
2024
December 31,
2023
Cash on hand 30.044 38.149
Bank accounts
- Time deposits 31.122.489 39.714.028
- Demand deposits 7.343.399 7.393.157
Cheques 79.503 -
Other 97.080 254.358
Cash and cash equivalents in cash flow statement 38.672.515 47.399.692
Expected credit loss (-) (203) (234)
Interest income accrual 67.629 89.651
38.739.941 47.489.109

As of March 31, 2024, annual interest rates of the TRL denominated time deposits are between 42,00% and 50,00% and have maturity between 1-62 days (December 31, 2023 - 38,00% - 45,00%; maturity between 2-12 days). Annual interest rates of the US Dollars (USD) and, Euro (EUR), and other currency denominated time deposits vary between 0,50% and 20,50% and have maturity between 1-220 days (December 31, 2023– annual interest rates of the US Dollars (USD) and, Euro (EUR), and other currency time deposits vary between 0,01% - 20,50%; maturity between 1-79 days).

As of March 31, 2024, other items contains credit card receivables amounting to TRL 97.080 (December 31, 2023 – TRL 253.804). As of March 31, 2024, the Group has designated its bank deposits amounting to TRL 1.157.917, equivalent of thousands USD 35.000 and thousands EUR 745 for the future raw material purchases, operational and interest expense related payments. (December 31, 2023 – TRL 1.241.768, equivalent of thousands USD 35.000, thousands EUR 1.500).

NOTE 6. FINANCIAL INVESTMENTS

March 31, December 31,
2024 2023
Currency linked deposits 339.205 353.150
Time deposits with maturity more than three months 97 102
Restricted cash 283.131 79.122
Investment funds 30.144 -
652.577 432.374

The interest rate of currency linked deposit is 35,00%. (December 31, 2023 –35,00%).

As of March 31, 2024, time deposits with maturities over 3 months are composed of USD with 88 days' remaining maturity and have 2,25% interest rate for USD (As of December 31, 2023, time deposits with maturities over 3 months are composed of USD with 179 day's remaining maturity and have 2,25% interest rate for USD).

The restricted bank balance is the blocked amount held in banks for the purpose of securing letters of credit in Uzbekistan and Pakistan and for offsetting withholding tax in the Netherlands.

The fair value differences of investment funds are recognized in the consolidated statement of profit or loss.

NOTE 7. BORROWINGS

a) Bank Loans, issued debt instruments and other borrowings

March 31, December 31,
2024 2023
Current Bank Loans (Third Parties) 15.300.314 11.282.401
Current Issued Debt Instruments (Third Parties) 1.038.265 1.470.029
Current Portion of Bank Loans (Third Parties) 2.385.048 1.667.801
Current Portion of Issued Debt Instruments (Third Parties) 8.878.367 11.064.424
Non-current Bank Loans (Third Parties) 3.950.078 2.270.140
Non-current Issued Debt Instruments (Third Parties) 34.105.219 38.247.545
65.657.291 66.002.340

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 7. BORROWINGS (continued)

b) Bank Loans, issued debt instruments and other borrowings

As of March 31, 2024, total borrowings consist of principal amounting to TRL 63.841.913 (December 31, 2023 – TRL 63.703.127) and interest expense accrual amounting to TRL 1.815.378(December 31, 2023 – TRL 2.299.213). As of March 31, 2024, and December 31, 2023, total amount of borrowings and the effective interest rates are as follows:

31
202
4
Ma
rch
,
ber
31
202
3
De
cem
,
Am
nt
ou
ig
We
hte
d a
ver
age
fix
ed
rat
e
We
ig
hte
d a
ver
age
flo
ati
rat
ng
e
A m
t
oun
We
ig
hte
d a
ver
age
fix
ed
rat
e
ig
hte
d a
flo
atin
We
ate
ver
age
g r
Cu
nt
Bo
win
rre
rro
gs
TR
L d
min
d b
ing
ate
eno
orr
ow
s
1
1.
4
6
6.
8
1
1
4
6,
25
%
- 9.
0
0
9.
9
6
1
3
3
9
%
7,
-
For
eig
den
ina
ted
bo
win
(
US
D)
n c
urr
enc
y
om
rro
gs
3
17
0
6
6
%
6,
4
8
- 1.
5
6
8
%
3,
0
0
-
For
eig
den
ina
ted
bo
win
(
EU
R)
n c
urr
enc
y
om
rro
gs
8
4
1.
3
4
6
%
7,
1
2
- 1.
5
1
6.
45
4
7,
25
%
-
Fo
rei
den
ina
ted
bo
win
(
Oth
er)
gn
cur
ren
cy
om
rro
gs
3.
7
1
3.
3
5
6
1
2,
3
1
%
K
ibo
0,
0
4
%
r-
2.
2
2
4.
4
47
1
6,
6
1
%
i
bo
K
0,
0
%
r+
1
6.
3
3
8.
5
7
9
1
2.
7
5
2.
4
3
0
Cu
Po
rtio
f N
t B
ing
nt
rre
n o
on-
cur
ren
orr
ow
s
L d
min
d b
ing
TR
ate
eno
orr
ow
s
5.
25
4.
0
8
3
2
2,
3
5
%
- 5.
6
5
1.
2
8
8
1
9,
7
4
%
-
eig
den
ina
ted
bo
win
(
D)
For
US
n c
urr
enc
om
rro
gs
y
5.
0
9
1.
0
5
0
4,
25
%
L
ibo
2,
5
0
%
r+
5.
5
4
6.
7
5
1
4,
2
9
%
L
i
bo
2,
5
0
%
r+
eig
den
ina
ted
bo
win
(
R)
For
EU
n c
urr
enc
om
rro
gs
y
8
7
3.
7
1
9
- Eu
ibo
1,
7
4
%
r+
r
1.
4
47
8
9
1
- Eu
i
bo
2,
1
2
%
r+
r
eig
den
ina
ted
bo
win
(
Oth
er)
For
n c
urr
enc
om
rro
gs
y
4
4.
5
6
3
1
4,
2
6
%
- 8
6.
2
9
5
%
1
4,
27
-
1
1.
2
6
3.
4
15
1
2.
7
3
2.
2
25
To
tal
27
6
0
1.
9
9
4
25
4
8
4.
6
5
5
No
Bo
win
ent
n-c
urr
rro
gs
TR
L d
min
d b
ing
ate
eno
orr
ow
s
4.
3
0
3.
9
9
7
4
6,
6
6
%
- 4.
6
4
4.
15
8
4
6,
7
8
%
-
Fo
rei
den
ina
ted
bo
win
(
US
D)
gn
cur
ren
cy
om
rro
gs
3
2.
27
4.
9
8
4
3,
9
7
%
- 3
3.
8
3
8.
9
2
2
3,
9
7
%
-
rei
den
ina
ted
bo
win
(
R)
Fo
EU
gn
cur
ren
cy
om
rro
gs
1.
0
7
8.
6
8
1
Eu
ibo
1,
6
0
%
r+
r
-
1.
6
1
9.
2
3
8
- Eu
i
bo
1,
7
1
%
r+
r
Oth
er
3
9
7.
6
3
5
1
3,
2
1
%
- 4
15
3
6
7
1
3,
2
1
%
-
To
tal
3
8.
0
5
5.
2
9
7
4
0.
5
17
6
8
5
Gr
and
To
tal
6
5.
6
5
7.
2
9
1
6
6.
0
0
2.
3
4
0

As of March 31, 2024 and December 31, 2023, the Group has fulfilled its financial commitments arising from its borrowings.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 7. BORROWINGS (continued)

a) Bank loans, issued debt instruments and other borrowings (continued)

Maturity of non-current borrowings are scheduled as follows:

March 31, 2024 December 31, 2023
Between 1-2 years 5.009.117 5.640.070
Between 2-3 years 519.587 793.122
Between 3-4 years 345.490 301.328
Between 4-5 years 32.142.656 16.987.364
5 years and more 38.447 16.795.801
38.055.297 40.517.685

The movement of borrowings as of March 31, 2024 and 2023 is as follows:

2024 2023
Balance at January 1 66.002.340 69.519.249
Addition through subsidiary acquired (Note 3) 2.208.631 -
Proceeds from Borrowings 13.573.479 9.180.799
Repayments of Borrowings (-) (11.391.132) (6.025.307)
Interest and Borrowing Expense (Note 21) 2.483.202 1.552.051
Interest Paid (-) (2.989.118) (1.509.963)
Foreign exchange (gain)/loss 3.867.016 1.608.703
Currency Translation Differences (772.122) (1.022.473)
Monetary (gain)/loss (7.325.006) (7.154.815)
Balance at March 31 65.657.291 66.148.244

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 7. BORROWINGS (continued)

b) Lease Liabilities

March 31, 2024 December 31, 2023
Current Lease Liabilities (Third Parties) 64 -
Current Portion of Lease Liabilities (Third Parties) 648.539 736.606
Non-current Lease Liabilities (Third Parties) 1.336.328 1.227.254
1.984.931 1.963.860

The movement of lease liabilities as of March 31, 2024 and 2023 is as follows:

2024 2023
Balance at January 1 1.963.860 1.715.284
Additions 24.177 218.179
Repayments (-) (261.706) (158.788)
Disposals (-) (1.716) (8.143)
Interest expense (Note 21) 81.549 63.083
Amendments to leasing 389.660 (5.239)
Foreign exchange (gain)/loss 1.563 11.178
Addition through subsidiary acquired (Note 3) 21.580 -
Currency translation differences (85.975) (218.108)
Monetary (gain)/loss (148.061) (51.969)
Balance at March 31 1.984.931 1.565.477

c) Other Financial Liabilities

March 31, 2024 December 31, 2023
Current Credit Card Payables 826.957 1.242.728
Non-current Credit Card Payables - 98.269
826.957 1.340.997

NOTE 8. DERIVATIVE INSTRUMENTS

The book values of derivative instruments as of March 31, 2024, and December 31, 2023, are as follows:

Beer Group Soft Drinks Other Total
March 31, 2024 (52.658) 9.895 (2.909) (45.672)
December 31, 2023 27.932 (122.532) (1.236) (95.836)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 8. DERIVATIVE INSTRUMENTS

The details of derivatives instruments for Beer Operations as of March 31, 2024 is as follows:

No
mi
nal
Va
lue
Co
Am
ntr
act
nts
ou
or
Qu
itie
ant
s
Ca
ing
Am
nt
rry
ou
As
/(
Lia
bil
ity
)
set
Ac
in
the
St
of
the
nt
ate
nt
cou
me
Fin
ial
siti
Po
anc
on
He
dg
e I
nef
fec
tiv
ene
ss
niz
in
ofi
Re
ed
Pr
t o
r L
cog
oss
ity
Ma
tur
De
riv
ati
he
ld
for
he
dg
ing
ves
:
Cu
for
rds
rre
ncy
wa
:
-US
D/
TR
L
1.04
4.4
33
32,
4 m
illio
SD
n U
1.6
17
iva
tive
Der
Ins
trum
ent
s
- Ap
ril-
Au
t 20
24
gus
R/T
-EU
RL
549
.87
6
15,8
mi
llio
n E
UR
(
2.5
89)
Ap
ril -
Au
t 20
24
gus
-US
D/R
UR
5.6
00.
730
illio
173
,5 m
n U
SD
(
)
53.
180
iva
tive
Der
Ins
trum
ent
s
- ril –
ber
Ap
De
20
24
cem
R/R
-EU
UR
1.73
40
7.7
49,
9 m
illio
n E
UR
942 iva
tive
Der
Ins
trum
ent
s
- Ap
ril -
ber
20
24
De
cem
Co
odi
ty s
mm
wap
s:
- A
lum
iniu
m
439
.14
1
5.9
92
ton
s
2.6
26
iva
tive
Der
Ins
trum
ent
s
- ril –
Ap
Au
t 20
24
gus
De
riv
ati
t h
eld
fo
r h
edg
ing
ves
no
:
Cu
fo
ard
rre
ncy
rw
s:
-US
D/R
UR
134
.93
9
mi
llio
4,2
n U
SD
(
0)
1.59
iva
tive
Der
Ins
trum
ent
s
- Ap
ril –
De
ber
20
24
cem
R/R
-EU
UR
673
.58
1
19,4
mi
llio
n E
UR
(
484
)
Der
iva
tive
Ins
trum
ent
s
- Ap
ril –
ber
De
20
24
cem
10.
180
.44
0
(
52.
658
)
De
riv
ati
he
ld
for
he
dg
ing
ves
:
t in
he
dge
Ne
tm
ent
ves
- 50
0 m
illio
n U
SD
(
16.
171
.80
0)
Bor
ing
row
s
- Jun
e 20
28
Ca
sh
flo
w h
edg
e
ed
h
De
sig
nat
cas
- U
SD
/TR
L
/M
- E
UR
DL
-
-
mil
lion
35
US
D
0,7
mi
llio
n E
UR
1.12
9.9
89
25.
928
Cas
h an
d C
ash
Eq
uiv
alen
ts
h an
d C
ash
uiv
alen
Cas
Eq
ts
-
-
ber
mb
Sep
– D
er 2
024
tem
ece
Ap
ril –
Jul
202
4
y

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 8. DERIVATIVE INSTRUMENTS (continued)

The details of derivatives instruments for Soft Drink Operations as of March 31, 2024 is as follows:

No
mi
nal
Va
lue
Co
Am
ntr
act
nts
ou
or
Qu
itie
ant
s
Ca
ing
Am
nt
rry
ou
As
/(
Lia
bil
ity
)
set
Ac
in
the
St
nt
ate
nt
cou
me
of
the
Fi
nci
al P
osi
tio
na
n
He
dg
e I
nef
fec
tiv
ene
ss
Re
niz
ed
in
Pr
ofi
r L
t o
cog
oss
Ma
ity
tur
De
riv
ati
he
ld
for
he
dg
ing
ves
:
sh
flo
w h
edg
Ca
e
odi
Co
ty s
mm
wap
s:
lum
- A
iniu
m
1.79
4.8
81
23.
427
to
n
(
1.16
4)
riv
ativ
De
e In
stru
nts
me
- ril
ber
Ap
202
4 -
De
20
25
cem
- S
uga
r
1.38
9.3
00
91.
650
ton
142
.53
6
riv
ativ
De
e In
stru
nts
me
- ril
ber
Ap
202
4 -
De
20
25
cem
x f
ard
(
hed
ing
cha
e ri
sk)
F
rat
orw
g
ex
nge
3.2
28.
540
100
mi
llio
SD
n U
906
77.
riv
ativ
De
e In
stru
nts
me
- ber
Sep
20
24
tem
Fai
alu
e h
edg
/ (
liab
ilit
ies
)
ets
r v
e re
ser
ve
ass
4.8
42.
810
15
0 m
illio
n U
SD
(
209
.38
3)
De
riv
ativ
e In
stru
nts
me
- Sep
ber
20
24
tem
11.
255
.53
1
9.8
95
De
riv
ati
he
ld
for
he
dg
ing
ves
:
Ne
t in
he
dge
tm
ent
ves
- 500
mi
llio
n U
SD
(
16.
171
.80
0)
Bo
win
rro
gs
- Jan
202
9
uar
y
Ne
t in
he
dge
tm
ent
ves
- 150
mi
llio
SD
n U
(
4.8
51.
540
)
Bo
win
rro
gs
- Sep
ber
20
24
tem

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 8. DERIVATIVE INSTRUMENTS (continued)

The details of derivatives instruments for Beer Operations as of December 31, 2023 is as follows:

mi
No
nal
Va
lue
Co
ntr
act
Am
nts
ou
or
Qu
itie
ant
s
Ca
ing
Am
nt
rry
ou
As
/(
Lia
bil
ity
)
set
in
St
of
Ac
nt
the
ate
nt
the
cou
me
Fin
ial
Po
siti
anc
on
nef
fec
tiv
He
dg
e I
ene
ss
Re
niz
ed
in
Pr
ofi
r L
t o
cog
oss
Ma
ity
tur
De
riv
ati
he
ld
for
he
dg
ing
ves
:
Ca
sh
flo
w h
edg
e
for
rds
Cu
rre
ncy
wa
:
-EU
R/T
RL
1.8
19.6
95
48,
6 m
illi
EU
R
on
24.
270
De
riv
ativ
e In
stru
nts
me
- Jan
M
202
4
uar
y -
ay
D/
-US
TR
L
1.5
37.
823
illi
45,
4 m
US
D
on
(
19.9
65)
riv
ativ
De
e In
stru
nts
me
- Jan
Au
t 20
24
uar
gus
y –
Co
odi
ty s
mm
wap
s:
lum
- A
iniu
m
616
.02
8
7.7
87
ton
s
23.
627
riv
ativ
De
e In
stru
nts
me
- ber
Jan
De
20
24
uar
y -
cem
3.9
73.
546
27.
932
De
riv
ati
he
ld
for
he
dg
ing
ves
:
Ne
t in
he
dge
tm
ent
ves
- 500
mi
llio
n U
SD
(
16.9
66.
935
)
Bo
win
rro
gs
- Jun
e 2
028
Ca
sh
flo
w h
edg
e
ed
h
De
sig
nat
cas
- U
SD
/TR
L
/M
- E
UR
DL
-
-
35
mi
llio
n U
SD
illi
1,
5 m
EU
R
on
1.18
5.5
47
56.
221
Ca
sh
and
Ca
sh
Eq
uiv
ale
nts
sh
and
sh
uiv
ale
Ca
Ca
Eq
nts
-
-
Sep
ber
- D
mb
er 2
024
tem
ece
rch
uly
Ma
– J
20
24

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 8. DERIVATIVE INSTRUMENTS (continued)

The details of derivatives instruments for Soft Drink Operations as of December 31, 2023 is as follows:

No
mi
nal
Va
lue
Co
Am
ntr
act
nts
ou
or
Qu
itie
ant
s
Ca
ing
Am
nt
rry
ou
As
/(
Lia
bil
ity
)
set
Ac
in
St
nt
the
ate
nt
cou
me
of
the
Fi
nci
al P
osi
tio
na
n
nef
fec
tiv
He
dg
e I
ene
ss
Re
niz
ed
in
Pr
ofi
r L
t o
cog
oss
Ma
ity
tur
De
riv
ati
he
ld
for
he
dg
ing
ves
:
Ca
sh
flo
w h
edg
e
Co
odi
ty s
mm
wap
s:
- A
lum
iniu
m
1.8
23.
507
22.
580
ton
s
31.
677
De
riv
ativ
e In
stru
nts
me
- Jan
202
4 -
De
ber
20
25
uar
y
cem
- S
uga
r
1.4
15.
139
89.
650
ton
s
131
.97
4
De
riv
ativ
e In
stru
nts
me
- Jan
202
4 -
De
ber
20
25
uar
y
cem
x f
ard
(
hed
ing
cha
e ri
sk)
F
rat
orw
g
ex
nge
1.6
93.
639
50
mi
llio
SD
n U
14.
754
riv
ativ
De
e In
stru
nts
me
- Sep
ber
20
24
tem
Fai
alu
e h
edg
/
ets
r v
e re
ser
ve
ass
(
liab
ilit
ies
)
5.0
80.
916
150
mi
llio
n U
SD
(
300
.93
7)
De
riv
ativ
e In
stru
nts
me
- Sep
ber
20
24
tem
10.
013
.20
1
(
122
.53
2)
riv
ati
ing
De
he
ld
for
he
dg
ves
:
Ne
t in
he
dge
tm
ent
ves
- US
D 5
00
mi
llio
n
(
16.
171
.80
0)
Bo
win
rro
gs
- Jan
202
9
uar
y
Ne
t in
he
dge
tm
ent
ves
- US
D
150
mi
llio
n
(
4.8
51.
540
)
Bo
win
rro
gs
- Sep
ber
20
24
tem

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 9. OTHER RECEIVABLES AND PAYABLES

a) Other Current Receivables

March 31, 2024 December 31, 2023
Receivables from related parties (Note 24) 240.445 115.942
Sublease receivables from related parties (1) (Note 24) 148.371 159.587
Due from personnel 124.231 99.336
Receivables from government institution 119.287 48.312
Deposits and guarantees given 9.767 9.847
Other 106.488 96.689
748.589 529.713

b) Other Non-Current Receivables

March 31, 2024 December 31, 2023
Deposits and guarantees given 156.138 155.774
Sublease receivables from related party (Note 24) (1) 23.055 38.286
Receivables from government institution 15.788 264.242
194.981 458.302

(1) Subleases from related parties has been recorded according to TFRS 16 which are related with the management building and leased on behalf of the parent company AG Anadolu Group A.Ş. and the subsidiaries.

c) Other Current Payables

March 31, 2024 December 31, 2023
Taxes other than income taxes 8.909.056 6.595.709
Other current payables to related parties (Note 24) 3.499.890 3.671.968
Deposits and guarantees taken 3.056.048 2.273.678
Dividends payable 265.053 318.524
Payables related to acquisitions at obtaining control of subsidiaries 915.441 -
Payables related to share changes in subsidiaries that do not result in loss of
control
6.457.080 6.774.554
Other 161.908 12.763
23.264.476 19.647.196

d) Other Non-Current Payables

March 31, 2024 December 31, 2023
Deposits and guarantees taken 13.660 12.421
13.660 12.421

NOTE 10. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

March 31, 2024 December 31, 2023
Ownership Carrying Value Ownership Carrying Value
SSDSD (1) 25,13% - 25,13% -
Malty Gıda A.Ş. 25,00% 477 25,00% 564
Trendbox 20,00% 15.403 - -
15.880 564

The movement of investments accounted for using equity method as of March 31, 2024 and 2023 are as follows:

2024 2023
Balance at January 1 564 508.196
Gain/(loss) from equity method investment (11.075) (95.609)
Share acquisition 16.616 -
Other 9.775 15.899
Balance at March 31 15.880 428.486

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 11. RIGHT-OF-USE ASSETS

For the three-month periods ended March 31, 2024 and 2023, movement on right use of asset are as follows:

Ad
d
it
ion
hr
h
t
ou
g
Ne
t
Bo
k V
lue
o
a
Am
dm
ts
en
en
id
iar
ire
bs
d
su
ac
q
y
u
Cu
ion
tra
lat
rre
nc
ns
y
Ne
t
Bo
k V
lue
o
a
Cu
nt
rre
ea
r
y
1,
2
0
2
4
Ja
nu
ary
Ad
it
ion
d
s
ing
to
Le
as
isp
D
ls,
t
osa
ne
Am
iza
ion
ort
t
(
3
)
No
te
i
f
fer
d
et
en
ces
, n
3
1,
2
0
2
4
M
h
ar
c
La
nd
1.
1
3
3.
6
7
6
5.
0
6
8
3
8
2.
5
2
9
(
1.
3
4
3
)
(
1
3.
5
0
3
)
- (
2.
0
8
7
)
1.
5
0
4.
3
4
0
Bu
ild
ing
s
6
8
9.
7
2
0
3.
8
4
6
7.
1
3
1
- (
4
1.
2
0
6
)
2
1.
5
8
0
(
4
7.
3
6
8
)
6
3
3.
7
0
3
M
h
ine
d e
ip
nt
ac
ry
an
q
u
me
4
6.
8
1
6
- - - (
9.
2
5
9
)
- (
2.
8
3
8
)
3
4.
7
1
9
Ve
h
ic
les
4
7
8.
5
2
5
1
5.
2
6
3
- (
5
2
3
)
(
7
0.
7
0
2
)
- (
2
6.
8
5
7
)
3
9
5.
7
0
6
Ot
he
r
8
0
2
- - - (
8
5
)
- (
4
7
)
6
7
0
2.
3
4
9.
5
3
9
2
4.
1
7
7
3
8
9.
6
6
0
(
1.
8
6
6
)
(
1
3
4.
7
5
5
)
2
1.
5
8
0
(
7
9.
1
9
7
)
2.
5
6
9.
1
3
8
Ne
Bo
k V
lue
t
o
a
Am
dm
ent
en
s
A
d
d
it
ion
hro
h
t
ug
Cu
lat
ion
tra
rre
nc
ns
y
Ne
Bo
k V
lue
t
o
a
iou
Pre
s y
ear
v
1,
2
0
2
3
Jan
ua
ry
A
d
d
it
ion
s
ing
Le
to
as
isp
ls,
D
t
osa
ne
Am
iza
ion
ort
t
bs
i
d
iar
ire
d
su
acq
y
u
d
i
f
fer
t
enc
es,
ne
h
3
1,
2
0
2
3
Ma
rc
d
La
n
2
2
2.
5
9
7
5
9.
6
6
6
- - (
3.
0
5
5
)
- (
3
2.
2
3
9
)
2
4
6.
9
6
9
Bu
i
l
d
ing
s
6
3
1.
9
3
8
1
3
9.
6
4
7
9.
1
2
7
(
1.
3
0
)
5
(
3
3
0
8
)
7.
- (
9.
4
2
1
)
7
6
6
3.
2
1
8
h
ine
d e
ip
Ma
nt
c
ry
an
qu
me
6
2.
5
1
5
- - - (
8.
9
5
9
)
- (
9.
4
6
9
)
4
4.
0
8
7
Ve
h
ic
les
7
3
0.
9
8
1
1
8.
8
6
6
(
)
1
4.
9
5
1
(
)
6
6
4
(
)
7
5.
5
9
5
- (
)
4
8.
0
8
3
6
1
0.
5
5
4
he
Ot
r
(
6.
4
1
9
)
- - - (
2
0
8
)
- (
3
1
)
(
6.
6
5
8
)
1.
6
4
1.
6
1
2
2
1
8.
1
7
9
(
)
5.
2
3
9
(
)
2.
0
1
4
(
)
1
2
5.
1
2
5
- (
)
1
6
9.
2
4
3
1.
5
5
8.
1
7
0

Interest income from sub-leases is TRL 16.231 (2023: TRL 4.733) (Note 24).

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 12. PROPERTY, PLANT AND EQUIPMENT

For the three-month periods ended March 31, 2024 and 2023, movement on property, plant and equipment are as follows:

Ad
d
it
ion
hr
h
t
ou
g
bs
id
iar
su
y
Cu
rre
nc
y
Im
irm
/
t
p
a
en
Ne
Bo
k V
lue
t
o
a
D
isp
ls,
osa
ire
d
ac
q
u
lat
ion
tra
ns
(
Im
irm
t
p
a
en
Tr
fer
an
s
s,
Ne
Bo
k V
lue
t
o
a
Cu
nt
rre
y
ea
r
Ja
1,
2
0
2
4
nu
ary
Ad
d
it
ion
s
De
iat
ion
p
rec
t
ne
(
No
3
)
te
d
i
f
fer
et
en
ces
, n
l
),
t
rev
ers
a
ne
t
ne
M
h
3
1,
2
0
2
4
ar
c
La
nd
d
lan
d
im
ts
an
p
rov
em
en
4.
5
1
9.
6
6
3
5
5
(
2
7.
4
1
3
)
(
2
3
2.
7
0
9
)
1
6
8.
5
8
1
(
1
5
6.
2
4
3
)
- 2
2.
0
8
1
4.
2
9
4.
0
1
5
ild
ing
Bu
s
1
2
6
2
8.
5
7.
5
9.
3
0
0
(
2
0
0
)
7.
5
5
(
2
2
6.
0
3
)
5
4
9.
4
0
1
5
(
6
6.
6
4
)
7
5
- 2
4
1.
3
9
3
1
9
4
1
6
7.
7.
5
M
h
ine
d e
ip
nt
ac
ry
an
q
u
me
2
2.
6
0
0.
7
5
6
2
7
2.
0
6
4
(
8
5
8.
2
4
9
)
(
1
1
3.
1
1
6
)
8
9
6.
8
8
2
(
8
1
3.
4
9
8
)
2.
0
3
4
1.
2
1
9.
0
2
4
2
3.
2
0
5.
8
9
7
Ve
h
ic
les
6
2
4.
6
4
2
2
6.
8
4
0
(
3
9.
7
3
7
)
(
1
4
2
)
- (
3
3.
7
8
3
)
- 1.
9
0
1
5
7
9.
7
2
1
Ot
he
ib
les
(
*)
r t
an
g
1
3.
4
0
2.
4
9
2
5
1
0.
8
4
7
(
9
9
8.
1
3
2
)
(
7
2.
0
7
2
)
6
6
7.
5
8
7
(
4
0
1.
5
7
9
)
2.
4
2
1
7
8.
2
0
4
1
3.
1
8
9.
7
6
8
io
ica
B
log
l a
ts
sse
1.
3
3
4.
1
5
7
3
0
1
5.
7
(
3
4
)
7.
7
5
- - 3
0.
2
3
7
- - 1.
3
6
2.
3
0
5
Le
ho
ld
im
ts
ase
p
rov
em
en
3
1.
2
9
4
3.
7
2
3
(
1.
2
8
6
)
- 1.
7
1
9
(
3.
5
6
1
)
- - 3
1.
8
8
9
Co
ion
in
nst
ct
ru
p
ro
g
res
s
5.
5
2
3.
2
5
5
2.
1
2
3.
5
4
4
- - 1.
4
4
1.
2
1
1
(
4
1.
)
5
8
8
8
(
5.
4
8
2
)
(
1.
5
6
5.
8
6
8
)
7.
0
6
4.
7
7
2
6
6.
2
9
4.
2
4
4
2.
9
8
1.
4
4
4
(
2.
1
6
9.
7
9
7
)
(
6
4
4.
0
9
2
)
3.
7
2
5.
3
8
1
(
2.
5
0
6.
9
6
0
)
(
1.
0
2
7
)
(
3.
2
6
5
)
6
7.
6
7
5.
9
2
8
A
d
d
it
ion
hro
h
t
ug
Cu
rre
nc
y
irm
/
Im
ent
p
a
Ne
Bo
k V
lue
t
o
a
isp
ls,
D
osa
bs
i
d
iar
su
y
lat
ion
tra
ns
(
irm
Im
ent
p
a
fer
Tr
an
s
s,
k V
lue
Ne
Bo
t
o
a
iou
Pre
s y
ear
v
1,
2
0
2
3
Jan
ua
ry
A
d
d
it
ion
s
iat
ion
De
p
rec
t
ne
ire
d
acq
u
d
i
f
fer
t
enc
es,
ne
l
),
t
rev
ers
a
ne
t
ne
h
3
1,
2
0
2
3
Ma
rc
d a
d
lan
d
im
La
ent
n
n
p
rov
em
s
3.
7
0
3.
9
3
3
2
7.
3
1
5
(
2
4.
2
1
8
)
(
3
9
)
- (
3
1
3.
0
6
0
)
- (
1.
8
8
2
)
3.
3
9
2.
0
4
9
Bu
i
l
d
ing
s
1
9.
7
0
8.
7
6
4
1
1.
7
6
9
(
)
2
1
1.
6
9
9
(
)
1.
4
4
2
- (
)
2.
2
4
1.
4
0
1
- 2
0
2.
6
6
7
1
7.
4
6
8.
6
5
8
h
ine
d e
ip
Ma
nt
c
ry
an
qu
me
2
4.
8
8
6.
3
9
1
5
3
0.
4
9
8
(
9
0
1.
1
3
0
)
(
1
1.
3
8
4
)
- (
2.
9
3
6.
2
3
9
)
- (
2
9
0.
0
6
8
)
2
1.
2
7
8.
0
6
8
Ve
h
ic
les
4
9
8.
1
0
3
6
0.
1
7
8
(
)
3
5.
5
5
6
(
)
2.
1
8
7
- (
)
5
0.
9
5
3
2
8
0
1.
3
4
8
4
7
1.
2
1
3
(*)
he
i
b
les
Ot
r ta
ng
1
3.
1
3
3.
9
4
3
9
2
4.
6
5
5
(
9
9
4.
2
6
0
)
(
7
8.
2
2
9
)
- (
1.
0
2
4.
7
2
1
)
(
1
5.
2
1
5
)
4
9
1.
8
3
9
1
2.
4
3
8.
0
1
2
B
io
log
ica
l a
ts
sse
- - - - - - - - -
ho
l
d
im
Le
ent
ase
p
rov
em
s
1
3.
5
8
2
- (
2.
2
8
8
)
- - 8.
0
7
4
- 1
9
0
1
9.
5
5
8
Co
ion
in
nst
t
ruc
p
rog
res
s
3.
5
8
1.
9
4
9
1.
7
1
3.
7
9
1
- (
)
2.
9
5
4
- (
)
4
8
4.
6
7
1
- (
)
1.
1
9
2.
0
4
3
3.
6
1
6.
0
7
2
6
5.
5
2
6.
6
6
5
3.
2
6
8.
2
0
6
(
)
2.
1
6
9.
1
5
1
(
)
9
6.
2
3
5
- (
)
7.
0
4
2.
9
7
1
(
)
1
4.
9
3
5
(
)
7
8
7.
9
4
9
5
8.
6
8
3.
6
3
0

(*) Other tangibles consist of coolers, returnable containers, and their complementary assets.

As of March 31, 2024, there is a pledge on property, plant, and equipment of TRL 97.766 (March 31, 2023– TRL 97.725) for loans of Soft Drink Operations. This amount is disclosed in Commitments and Contingencies note under guarantees, pledges, and mortgages (GPMs) table (Note 16).

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 13. OTHER INTANGIBLE ASSETS

For the three-month periods ended March 31, 2024 and 2023, movement on other intangible assets are as follows:

Cu
nt
rre
y
ea
r
Ne
Bo
k V
lue
t
o
a
Ja
1,
2
0
2
4
nu
ary
Ad
d
it
ion
s
Am
iza
ion
ort
t
D
isp
ls, ne
osa
t
Ad
d
it
ion
hr
h
t
ou
g
bs
id
iar
su
y
ire
d
ac
q
u
(
No
3
)
te
Cu
rre
nc
y
lat
ion
tra
ns
d
i
f
fer
et
en
ces
, n
Im
irm
/
t
p
a
en
(
Im
irm
t
p
a
en
l
),
t
rev
ers
a
ne
Tr
fer
et
an
s
s, n
Ne
Bo
k V
lue
t
o
a
M
h
3
1,
2
0
2
4
ar
c
ing
Bo
tt
l
ntr
act
co
s
8
1.
1
1
0.
1
3
9
- - - - (
1.
25
8.
8
9
)
7
- - 9.
8
1.
3
0
7
5
5
ice
L
nts
nc
e a
g
ree
me
2
0.
9
6.
47
9
5
- - - - (
1.
3
3.
6
6
3
)
5
- - 1
9.
0
6
2.
8
1
6
Br
ds
an
3.
0
9
1
2
9
7.
- - - - (
2
15
9
2
0
)
- - 2.
8
8
1.
2
0
9
ig
R
hts
3
1.
27
7
7
15
6
(
3
8.
4
8
0
)
- - (
1
3.
9
0
1
)
- 25
1
0
6
3
4
4.
6
0
8
Co
ion
in
nst
ct
ru
p
ro
g
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s
5
0
6.
7
4
1
7
8.
9
7
0
- - - - - (
8
6.
3
1
6
)
4
9
9.
3
9
5
Ot
he
int
ib
le
ets
r
an
g
ass
1.
8
5
0.
6
0
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5
8.
47
3
(
7
4.
8
9
4
)
- - 4
4.
8
0
4
- 6
4.
8
3
6
1.
9
4
3.
8
1
9
1
0
7.
5
3
2.
8
15
1
3
7.
5
9
9
(
1
1
3.
3
7
4
)
- - (
2.
9
7
7.
4
6
9
)
- 3.
6
2
6
1
0
4.
5
8
3.
1
9
7
Pre
iou
v
s y
ear
Ne
Bo
k V
lue
t
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a
Jan
1,
2
0
2
3
ua
ry
A
d
d
it
ion
s
Am
iza
ion
ort
t
D
isp
ls, ne
osa
t
A
d
d
it
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hro
h s
bs
i
d
iar
t
ug
u
y acq
ire
d
u
Cu
y tra
rre
nc
lat
ion
ns
d
i
f
fer
t
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es,
ne
Im
irm
/
ent
p
a
(
Im
irm
ent
p
a
l
),
t
rev
ers
a
ne
Tr
fer
et
an
s
s, n
Ne
Bo
k V
lue
t
o
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Ma
h
3
1,
2
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2
3
rc
Bo
l
ing
tt
ntr
act
co
s
8
2.
6
3
0.
9
2
9
- - - - (
2.
7
1
2.
6
5
3
)
- - 7
9.
9
1
8.
27
6
ice
L
nts
nc
e a
g
ree
me
27
4
8
3.
4
6
0
- - - - (
4.
6
3.
2
0
3
)
5
- - 2
2.
8
3
0.
25
7
ds
Br
an
3.
9
6
3.
2
47
- - - - (
9
3.
2
0
)
5
5
- - 3.
3
0.
0
4
2
7
ig
hts
R
4
1.
5
7
7
7
- (
6
1.
4
8
)
5
- - (
1.
2
4
4
)
5
- 6.
6
7
5
7
0
2
5
5.
5
5
Co
ion
in
nst
t
ruc
p
rog
res
s
1
4
9.
27
0
2
3.
0
6
7
- - - - - (
1
6.
6
6
2
)
15
6.
3
1
4
he
int
i
b
le
Ot
ets
r
an
g
ass
1.
7
4
8.
7
6
7
5
7.
1
3
8
(
)
6
2.
7
8
8
- - (
)
1
2
9.
1
9
2
- (
)
6
0.
0
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1.
5
5
3.
8
8
0
1
1
6.
5
17
45
0
8
0.
8
4
4
(
)
1
2
4.
3
3
6
- - (
)
8.
1
3
9.
4
9
7
- (
)
1
4
0
1
0
8.
3
3
4.
3
2
1

As of March 31, 2024, there is no pledge on intangible assets (March 31, 2023: None).

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 14. GOODWILL

For the three-month period ended March 31, 2024 and 2023, movements of the goodwill during the period are as follows:

2024 2023
At January 1 14.475.333 18.911.200
Additions (Note 3) 284.960 -
Currency translation differences (907.831) (3.149.055)
At March 31 13.852.462 15.762.145

NOTE 15. CAPITAL RESERVES AND OTHER EQUITY ITEMS

The legal reserves consist of first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of the statutory net income at the rate of 5%, until the total reserve reaches a maximum of 20% of the Company's issued capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the Company's issued capital. The legal reserves are not available for distribution unless they exceed 50% of the issued capital, other than that legal reserves cannot be used.

Public companies distribute dividends in accordance with the Dividend Communiqué No. II-19.1 of the Capital Markets Board, which came into effect on February 1, 2014, and the announcement made pursuant to the decision of the Board's Decision-Making Body dated March 7, 2024, and numbered 14/382.

Companies distribute dividend within the framework of the profit distribution policies determined by the general assemblies and in accordance with the related legislation by the decision of the general assembly. Within the scope of the communiqué, a minimum distribution ratio has not been determined. Companies pay dividends as specified in articles of incorporation and in profit distribution policies.

The positive differences from the inflation adjustment of the paid-in capital can be used in bonus issue of shares. Restricted reserves appropriated from profits and extraordinary reserves can be used in bonus issue of shares, cash dividend distributions, or offsetting losses.

For March 31, 2024, nominal amounts, equity index differences and indexed value of equity are as follows:

March 31, 2024
Statutory Amounts
Indexed per PPI
Statutory Amounts
Indexed per CPI
Amounts Presented in Prior
Years' Profits
Inflation Adjustments on Capital 13.839.314 9.355.195 4.484.119
Share Premium (Discount) - 1.657.675 (1.657.675)
Restricted Reserves Appropriated from Profits 6.305.362 4.164.777 2.140.585
Extraordinary reserves 83.203 211.167 (127.964)

As of March 31, 2023, the amount of Prior Years' Profits or Losses without inflation accounting applied was TRL9.582.148, while the amount of Prior Years' Profits or Losses with inflation accounting applied was TRL48.065.054.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 16. COMMITMENTS AND CONTINGENCIES

Parent Company (Anadolu Efes) and Subsidiaries Included in Consolidation

As of March 31, 2024, and December 31, 2023 guarantees, pledges, and mortgages (GPMs) given in favor of the parent company and subsidiaries included in full consolidation are as follows:

March 31, 2024
Total TRL
Equivalent
Original
Currency
TRL
Original
Currency
Thousand
USD
Original
Currency
Thousand
EUR
Original
Currency
Thousand
UAH
Original
Currency
Thousand
PKR
Other Foreign
Currency TRL
Equivalent
A. GPMs given on behalf of the Company's
legal personality
2.844.793 2.134.894 8.385 6.823 57.468 162.152 135.595
B. GPMs given in favor of subsidiaries included in
full consolidation (1)
10.758.382 829.006 76.263 54.667 - 16.800.000 3.613.121
C. GPMs given by the Company for the liabilities of
3rd parties in order to run ordinary course of
business
- - - - - - -
D. Other GPMs - - - - - - -
i. GPMs given in favor of parent company - - - - - - -
ii. GPMs given in favor of group companies not in
the scope of B and C above
- - - - - - -
iii. GPMs given in favor of third party companies not
in the scope of C above
- - - - - - -
Total 13.603.175 2.963.900 84.648 61.490 57.468 16.962.152 3.748.716
Ratio of other GPMs over the Company's equity (%) -
December 31, 2023
Original Original Original Original
Original Currency Currency Currency Currency Other Foreign
Total TRL Currency Thousand Thousand Thousand Thousand Currency TRL
Equivalent TRL USD EUR UAH PKR Equivalent
A. GPMs given on behalf of the Company's
legal personality
2.518.071 1.770.973 9.573 5.879 49.343 162.152 138.994
B. GPMs given in favor of subsidiaries included in
full consolidation (1)
11.925.496 272.212 76.263 79.195 400.000 16.800.000 3.725.885
C. GPMs given by the Company for the liabilities of
3rd parties in order to run ordinary course of - - - - - - -
business
D. Other GPMs - - - - - - -
i. GPMs given in favor of parent company - - - - - - -
ii. GPMs given in favor of group companies not in
the scope of B and C above - - - - - - -
iii. GPMs given in favor of third party companies
not in the scope of C above - - - - - - -
Total 14.443.567 2.043.185 85.836 85.074 449.343 16.962.152 3.864.879
Ratio of other GPMs over the Company's equity (%) -

(1) Consists of the GPMs given in favor of subsidiaries included in full consolidation for their borrowings. These financial liabilities are included in short-term and long-term borrowings in consolidated financial statements.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 16. COMMITMENTS AND CONTINGENCIES (continued)

Murabaha

CCBPL has signed Murabaha facility agreements with Habib Bank Limited and Standard Chartered Bank (Banks). Based on these agreements, the Banks and CCBPL agree that they shall enter into a series of sugar and resin purchase transactions from time to time on the dates and in the amounts to be agreed between them subject to the terms of this agreement. As of March 31, 2024, CCBPL have USD 77,9 million and USD 42,9 million purchase commitments to the banks for sugar and resin until June 30, 2024 and until September 30, 2024, respectively (December 31, 2023- USD 74,1 million sugar and resin until March 31, 2024 and USD 37,6 million sugar and resin until June 30, 2024).

Tax and Legal Matters

Legislation and regulations regarding taxation and foreign currency transactions in most of the territories in which the Group operates out of Türkiye continue to evolve as a result of the transformation from command to market oriented economy managed by the government. The various legislation and regulations are not always clearly written and the interpretation related with the implementation of these regulations is subject to the opinions of the local, regional and national tax authorities, the Central Bank and Ministry of Finance. Tax declarations, together with other legal compliance areas (as examples, customs and currency control) are subject to review and investigation by a number of authorities, who are enabled by law to impose significant fines, penalties and interest charges. These facts may create tax risks in the territories in which the Group operates substantially more so than typically found in countries with more developed tax systems.

Litigations against the Group

Beer Group

As of March 31, 2024, according to the legal opinion obtained by the management in response to the 103 lawsuits filed against Beer Operations, in the event of loss the estimated compensation will be million TRL 80.202. In the opinion given by the legal counsel of the Group, it is stated that there is low probability of losing the cases and so no provision has been made in the financial statements. (December 31, 2023 - estimated compensation TRL76.432).

Soft Drink

CCİ and subsidiaries in Türkiye are involved on an ongoing basis in 231 litigations arising in the ordinary course of business as of March 31, 2024 with an amount of TRL 31.853. (December 31, 2023 – TRL22.171). According to the legal opinion obtained by the management no court decision has been granted yet as of March 31, 204.

As of March 31, 2024, CCBPL has various tax litigations. If the claims are resulted against CCBPL, the tax liability would be TRL92.839 (PKR 839 million) (December 31, 2023 – TRL 96.249 (PKR 839 million)).

As per the change in governing law in Pakistan, "Capacity Tax" was started to be applied as of July 9, 2013, replacing "Sales and Excise Tax". CCBPL fulfilled all the obligations as per the new law and change in regulations.

As of May 2014, "Capacity Tax" application was cancelled by the constitutional court and the law has been reverted to "Sales and Excise Tax". After this withdrawal, CCBPL fulfilled all the obligations again according to "Sales and Excise Tax" system.

The Pakistan tax authority, citing the cancellation decision, has requested additional taxes from CCBPL (Coca-Cola Beverages Pakistan Limited) by arguing for the retrospective application of the "Sales and Excise Taxes" system before its cancellation. The company management, based on the principle of non-retroactivity of constitutional court decisions and also asserting that the obligations under the "Capacity Tax" regime in force during the relevant period were fully complied with, has objected to this request and taken the matter to court. As of March 31, 2024, the issue has been resolved between the company and the tax authority. (December 31, 2023 – TRL 461.380 (PKR 3.389 million)).

Group management does not expect any adverse consequences related with these litigations that would materially affect Group's operation results or financial status.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 17. PREPAID EXPENSES AND DEFERRED INCOME

a) Short Term Prepaid Expenses

March 31, 2024 December 31, 2023
Advances given to suppliers 2.462.946 1.680.411
Prepaid sales expenses 3.598.733 2.309.321
Prepaid insurance expenses 227.110 275.639
Prepaid rent expenses 40.448 12.686
Prepaid other expenses 1.026.953 659.459
7.356.190 4.937.516

b) Long Term Prepaid Expenses

March 31, 2024 December 31, 2023
Prepaid sales expenses 1.193.921 1.775.050
Advances given to suppliers 886.935 1.176.956
Prepaid rent expenses 489 621
Prepaid other expenses 713.053 347.360
2.794.398 3.299.987

c) Short Term Deferred Income (Deferred Income Other Than Contract Liabilities)

March 31, 2024 December 31, 2023
Advances taken 228.308 845.242
Deferred income 82.096 46.786
310.404 892.028

d) Long Term Deferred Income (Deferred Income Other Than Contract Liabilities)

March 31, 2024 December 31, 2023
Deferred income 37.180 51.212
37.180 51.212

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 18. OTHER ASSETS AND LIABILITIES

a) Other Current Assets

March 31, 2024 December 31, 2023
Value Added Tax (VAT) deductible or to be transferred 2.728.806 2.000.624
Other Current Assets from related parties (Anadolu Efes Spor
Kulübü)
300.003 -
Deferred VAT and other taxes 41.309 45.944
Prepaid taxes (other than income tax and VAT) 92.583 67.594
Other 416.914 408.521
3.579.615 2.522.683

b) Other Non-Current Assets

March 31, 2024 December 31, 2023
Deferred VAT and other taxes 1.019 1.673
Other 606 19.198
1.625 20.871

c) Other Current and Non-Current Liabilities

As of March 31, 2024, and December 31, 2023, other current liabilities are as follows:

March 31, 2024 December 31, 2023
Put option liability 76.194 79.940
Deferred VAT and other taxes 46.034 51.542
Other 19.514 64.088
141.742 195.570

As of March 31, 2024, and December 31, 2023, other non- current liabilities are as follows:

March 31, 2024 December 31, 2023
Deferred VAT and other taxes 802 522
Other 25 28
827 550

As of March 31, 2024, the obligation of TRL 76.194 results from the put option carried, for the purchase of %12,5 of Turkmenistan CC shares from Day Investment Ltd., with a consideration of USD 2.360 thousand. USD amount is converted with the official USD purchase rate announced by Central Bank of Republic of Türkiye and resulting TRL amount is reflected under other current liabilities (December 31, 2023 – TRL 79.940).

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 19. OTHER INCOME / EXPENSES FROM OPERATING ACTIVITIES

a) Other Income from Operating Activities

January 1 – January 1 –
March 31, 2024 March 31, 2023
Foreign exchange gains arising from operating activities 628.097 595.532
Income from scrap and other materials 299.262 70.252
Reversal of provision for inventory obsolescence 97.526 47.291
Insurance compensation income 11.763 4.485
Rent income 9.181 8.657
Reversal of provision for expected credit loss 5.791 7.417
Other 165.958 288.642
Provision for expected credit loss 1.217.578 1.022.276

b) Other Expense from Operating Activities

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Foreign exchange losses arising from operating activities (662.574) (869.138)
Expense from scrap and other materials (187.687) (2.268)
Provision for expected credit loss (129.529) (4.716)
Provision for inventory obsolescence (36.878) (76.556)
Donations (347) (28.394)
Other (412.167) (206.658)
(1.429.182) (1.187.730)

NOTE 20. INVESTMENT ACTIVITY INCOME / EXPENSE

a) Investment activity income

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Gain on disposal of PPE
Provision for impairment on PPE no longer required
47.320
4.455
54.582
2.182
51.775 56.764

b) Investment activity expense

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Loss on disposal of PPE
Provision for impairment on intangible assets
(24.463)
(5.482)
(7.419)
(17.117)
(29.945) (24.536)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 21. FINANCE INCOME / EXPENSE

a) Finance Income

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Foreign exchange gain 2.635.520 2.130.847
Interest income 599.305 466.991
Gain on derivative transactions 103.477 654.549
Interest income from sub-lease receivables 16.231 4.733
Gain arising from the termination of lease agreements 168 6.327
Other - 2.864
3.354.701 3.266.311

b) Finance Expense

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Interest and borrowing expense (2.483.202) (1.552.051)
Foreign exchange loss (889.261) (1.945.967)
Bank commission and fees (509.551) (177.255)
Interest expenses related to leases (81.549) (63.083)
Loss on derivative transactions (44.423) (453.339)
Gain arising from the termination of lease agreements (15) (28)
(4.008.001) (4.191.723)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 22. TAX ASSETS AND LIABILITIES

The Group is subject to taxation in accordance with the tax regulations and the legislation effective in the countries in which the Group companies operate.

Corporate tax rates of subsidiaries are as follows:

March 31, 2024 December 31, 2023
Türkiye 25% 25%
The Netherlands 25% 25%
Russia 20% 20%
Kazakhstan 20% 20%
Moldova 12% 12%
Georgia - -
Ukraine 18% 18%
Azerbaijan 20% 20%
Krygyzstan 10% 10%
Pakistan 39% 39%
Iraq 15% 15%
Jordan 21% 20%
Turkmenistan 8% 8%
Tajikistan 18% 18%
Uzbekistan 15% 15%
Bangladesh 27,5% -

In Türkiye, with the law titled "Law on the Introduction of Additional Motor Vehicle Tax to Compensate for the Economic Losses Caused by the Earthquakes on February 6, 2023, and on the Amendment of Some Laws and Decree Law No. 375" published in the Official Gazette dated July 15, 2023, and numbered 32249, the Corporate Tax rate increased from 20% to 25%.

As of March 31, 2024 and December 31, 2023 consolidated deferred tax assets and liabilities calculated by using effective tax rates are summarized as below:

March 31, 2024 December 31, 2023
Deferred tax asset 8.203.289 6.990.102
Deferred tax liability (21.597.409) (22.260.891)
(13.394.120) (15.270.789)
Asset Liability Net
March 31,
2024
December 31,
2023
March 31,
2024
December 31,
2023
March 31,
2024
December 31,
2023
PP&E and intangible assets
and right of use assets
- - (20.677.670) (20.640.710) (20.677.670) (20.640.710)
Inventories 156.226 - - (79.130) 156.226 (79.130)
Carry forward losses 3.650.301 3.840.405 - - 3.650.301 3.840.405
Retirement pay liability and
other employee benefits
191.233 268.111 - - 191.233 268.111
Other provisions and
accruals
2.279.674 479.601 - - 2.279.674 479.601
Unused investment discounts 950.384 1.042.907 - - 950.384 1.042.907
Derivative financial
instruments
55.732 - - (181.973) 55.732 (181.973)
7.283.550 5.631.024 (20.677.670) (20.901.813) (13.394.120) (15.270.789)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 22. TAX ASSETS AND LIABILITIES (continued)

Tax advantages obtained under the investment incentive system

The Group's earnings from investments tied to an incentive certificate are subject to corporate tax at discounted rates, starting from the accounting period in which the investment is partially or fully operational, until the investment contribution amount is reached. In this context, tax advantage amounting to TRL 950.384 (December 31, 2023: TRL 1.042.907) that the Group's will benefit from in the foreseeable future as of March 31, 2024 is reflected in the consolidated financial statements as a deferred tax asset. As a result of the recognition of the said tax advantage as of March 31, 2024, deferred tax income / (expense) amounting to TRL (92.523) has been realized in the consolidated profit or loss statement for the period from January to March 31, 2024.

According to the tax incentive certificates summarized above, the current period corporate tax provision TRL 1.832 (March 31, 2023: None) discounted corporate tax advantage has been used and this amount has been deducted from the deferred tax asset.

Deferred tax assets are recognized when it is determined that taxable income is likely to occur in the coming years. In cases where taxable income is likely to occur, deferred tax assets are calculated over deductible temporary differences, tax losses and tax advantages vested in indefinite-lived investment incentives that allow reduced corporate tax payments. In this context, the Group's bases the reflection of deferred tax assets arising from investment incentives in the consolidated financial statements on long-term plans and evaluates the recoverability of deferred tax assets related to these investment incentives as of each balance sheet date, based on business models that include taxable profit estimations. It is foreseen that the deferred tax assets in question will be recovered within 5 years from the balance sheet date.

In the sensitivity analysis carried out as of March 31, 2024, when the inputs in the basic macroeconomic and sectoral assumptions that make up the business plans are increased/decreased by 10%, the recovery period of deferred tax assets regarding investment incentives, which is foreseen as 5 years, has not changed.

R&D incentives

The Group capitalizes the R&D expenditures it has made within the scope of the law numbered 5746 in its tax books. The Group makes calculations over the R&D expenditures in accordance within the framework of the relevant legislation and take benefits from the R&D discount according to law's permission. As of March 31, 2024, the Group took advantage of R&D deduction amounting to TRL 1.484 (March 31, 2023: None).

NOTE 23. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net income for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Weighted average number of shares represents the number of shares as a result of capital increase and adjusted number of shares at the beginning period multiplied with the time-weighting factor. Time weighting factor is calculated by dividing the number of days that the shares are available by the total number of days of the period. The Group has no dilutive instruments.

Following table illustrates the net income and share figures used in earnings per share calculation:

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Weighted average number of shares (full value) 592.105.263 592.105.263
Profit/ (loss) for the owners of parent 3.140.536 3.025.067
Earnings/ (losses) per share (full TRL) 5,3040 5,1090
Profit/ (loss) for the owners of parent 3.140.536 3.025.067
Profit/ (loss) from continuing operations 3.140.536 3.025.067
Earning/ (losses) per share from continuing operations (full TRL) 5,3040 5,1090

There have been no other transactions involving ordinary shares or potential ordinary shares between the financial statement date and the date of approval of these financial statements.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 24. RELATED PARTY BALANCES AND TRANSACTIONS

a) Balances with Related Parties

Due from Related Parties and Other Receivables

Trade Receivables Other Receivables
March 31, 2024 December 31,2023 March 31, 2024 December 31,2023
Migros Group Companies(2) 1.464.828 1.349.492 106.170 -
AB InBev Group Companies(3) 335.732 360.142 134.275 115.942
(1) (*)
AG Anadolu Grubu Holding A.Ş.
1.344 55 171.426 197.873
Other 49.948 50.132 - -
1.851.852 1.759.821 411.871 313.815

(*) As of March 31, 2024, TRL 171.426 accounted for in accordance with TFRS 16 includes other receivables related to sublease (December 31, 2023 – TRL 197.873).

Due to Related Parties and Other Payables

Trade Payables Other Payables
March 31, 2024 December 31,2023 March 31, 2024 December 31,2023
AB InBev Group Companies (3) 1.353.916 1.269.938 3.499.890 3.671.968
Anadolu Efes Spor Kulübü 300.003 - - -
Oyex Handels GmbH (2) 18.093 47.851 - -
(1)
AG Anadolu Grubu Holding A.Ş.
30.746 101.474 - -
Other 15.361 6.683 - -
1.718.119 1.425.946 3.499.890 3.671.968

(1) The shareholder of the Group

(2) Related party of AG Anadolu Grubu Holding A.Ş. (a shareholder)

(3) Related parties of AB Inbev Harmony Ltd. (a shareholder)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 24. RELATED PARTY BALANCES AND TRANSACTIONS (continued)

b) Transactions with Related Parties

Purchases of Goods, Services and Donations

Nature of transaction January 1 –
March 31, 2024
January 1 –
March 31, 2023
AB InBev Group Companies (3) Service and Purchase of Trade Goods 648.108 786.942
Anadolu Efes Spor Kulübü Service 112.933 193.734
Oyex Handels GmbH (2) Purchase of Materials and Fixed Assets 48.790 85.907
AG Anadolu Grubu Holding A.Ş. (1) Consultancy Service 51.294 35.792
Anadolu Eğitim ve Sosyal Yardım Vakfı (2) Travel and Accommodation - 227
Other 1.953 1.004
863.078 1.103.606

Financial Income and Expense

Nature of transaction January 1 –
March 31, 2024
January 1 –
March 31, 2023
AG Anadolu Grubu Holding A.Ş. (1) Interest income from subleases 16.231 4.733
16.231 4.733

Revenue and Other Income / (Expenses)

Nature of transaction January 1 –
March 31, 2024
January 1 –
March 31, 2023
Migros Group Companies (2) Sales Income 1.107.236 1.104.486
AB Inbev Group Companies (3) Other Income 24.105 11.870
Other Other Income 617 1.601
1.131.958 1.117.957

(1) The shareholder of the Group

(2) Related party of AG Anadolu Grubu Holding A.Ş. (a shareholder)

(3) Related parties of AB Inbev Harmony Ltd. (a shareholder)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 24. RELATED PARTY BALANCES AND TRANSACTIONS (continued)

Director's Remuneration

As of March 31, 2024 and 2023, total benefits to Anadolu Efes Board of Directors, remuneration and similar benefits received by total executive members of the Board of Directors and executive directors are as follows:

January 1 –
March 31, 2024
January 1 –
March 31, 2023
Board of Executive Board of Executive
Directors Directors Directors Directors
Short-term employee benefits 504 103.084 425 101.468
Post-employment benefit plans - - - -
Other long-term benefits - 9.678 - 4.539
Termination benefits - 3.057 - -
Share based payments - - - -
504 115.819 425 106.007

NOTE 25. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

The Group's principal financial instruments comprise bank borrowings, leases, cash and short-term deposits. The main purpose of these financial instruments is to raise funds for the Group's operations. Besides, The Group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.

The main risks arising from the Group's financial instruments can be identified as interest rate risk, foreign currency risk, foreign currency hedge risk of net investments in foreign operations, liquidity risk, price risk, credit risk and capital risk. The Group management reviews and agrees policies for managing each of these risks. The Group also monitors the market price risk arising from all financial instruments.

a) Interest Rate Risk

The Group is exposed to interest rate risk through the impact of rate changes on interest bearing assets and liabilities. The Group manages interest rate risk by using natural hedges that arise from offsetting interest rate of assets and liabilities or derivative financial instruments.

Some of the interest rates associated with financial liabilities are based on prevailing market interest rates. Therefore, the Group is affected by changes in interest rates in national and international markets. The Group's exposure to market risk arising from changes in interest rates is primarily related to its debts and liabilities. The Group makes foreign currency swap transactions to hedge interest rate risk as stated in Note 8.

b) Foreign Currency Risk

Foreign currency risk generally arises from the EUR and USD denominated assets and liabilities of the Group. The Group has transactional currency exposures. Such exposures arise from sales or purchases of goods and services or borrowings of the Group in currencies other than the functional currency. The Group manages short term foreign currency risk by balancing foreign currency denominated assets and liabilities. The Group designates certain part of its bank deposits for the future raw material purchases, operational expense and interest related payments Note 5 Group's foreign currency liability consists of mainly long term liabilities. The Group also conducts foreign exchange forward transactions and cross currency swap transactions in order to hedge its foreign currency risk as stated in Note 8. Accordingly, in the short term foreign currency risk that may arise from fluctuation of foreign currencies are relatively limited.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 25. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)

b) Foreign Currency Risk (continued)

Net foreign currency exposure for the consolidated Group companies as of March 31, 2024 and December 31, 2023 are presented below:

Foreign Currency Position Table
March 31, 2024
Total TRL Thousand Total TRL Thousand Total TRL Other Foreign
Equivalent USD Equivalent EUR Equivalent Currency TRL
1. Trade Receivables and Due from Related Parties 14.621.994 438.846 14.168.336 12.934 450.145 3.513
2a. Monetary Financial Assets (Cash and cash equivalents included) 15.920.337 404.082 13.045.945 52.721 1.834.812 1.039.580
2b. Non- monetary Financial Assets 5.919 - - 170 5.919 -
3. Other 33.266 1.030 33.266 - - -
4. Current Assets (1+2+3) 30.581.516 843.958 27.247.547 65.825 2.290.876 1.043.093
5. Trade Receivables and Due from Related Parties - - - - - -
6a. Monetary Financial Assets - - - - - -
6b. Non-monetary Financial Assets - - - - - -
7. Other 563.169 752 24.279 15.484 538.878 12
8. Non-Current Assets (5+6+7) 563.169 752 24.279 15.484 538.878 12
9. Total Assets (4+8) 31.144.685 844.710 27.271.826 81.309 2.829.754 1.043.105
10.Trade Payables and Due to Related Parties (10.184.828) (214.054) (6.910.823) (89.821) (3.125.978) (148.027)
11.Short- term Borrowings and Current Portion of Long- term Borrowings (7.124.194) (167.509) (5.408.093) (49.310) (1.716.101) -
12a. Monetary Other Liabilities (204.597) (6.072) (196.036) (246) (8.561) -
12b. Non-monetary Other Liabilities (44.794) (1.387) (44.794) - - -
13. Current Liabilities (10+11+12) (17.558.413) (389.022) (12.559.746) (139.377) (4.850.640) (148.027)
14. Trade Payables and Due to Related Parties (198) - - (5) (183) (15)
15. Long-Term Borrowings (33.574.064) (1.004.329) (32.425.170) (33.012) (1.148.894) -
16 a. Monetary Other Liabilities - - - - - -
16 b. Non-monetary Other Liabilities - - - - - -
17. Non-Current Liabilities (14+15+16) (33.574.262) (1.004.329) (32.425.170) (33.017) (1.149.077) (15)
18. Total Liabilities (13+17) (51.132.675) (1.393.351) (44.984.916) (172.394) (5.999.717) (148.042)
19. Off Statement of Financial Position Derivative Items' Net Asset/(Liability) 37.425.236 1.159.200 37.425.236 - - -
Position (19a+19b)
19a. Total Hedged Assets (*) 37.425.236 1.159.200 37.425.236 - - -
19b. Total Hedged Liabilities - - - - - -
20. Net Foreign Currency Asset / (Liability) Position (9+18+19) 17.437.246 610.559 19.712.146 (91.085) (3.169.963) 895.063
21. Monetary Items Net Foreign Currency Asset / (Liability) Position (20.545.550) (549.036) (17.725.841) (106.739) (3.714.760) 895.051
(1+2a+5+6a+10+11+12a+14+15+16a)
22. Total Fair Value of Financial Instruments Used to Manage the Foreign
Currency Position
24.441 823 26.572 (61) (2.131) -
23.Total value of Hedged Foreign Currency Assets - - - - - -
Foreign Currency Position Table
December 31, 2023
Total TRL Thousand Total TRL Thousand Total TRL Other Foreign
Equivalent USD Equivalent EUR Equivalent Currency TRL
1. Trade Receivables and Due from Related Parties 16.727.676 481.193 16.299.345 11.420 428.046 285
2a. Monetary Financial Assets (Cash and cash equivalents included) 16.668.055 415.857 14.086.231 41.066 1.539.188 1.042.636
2b. Non- monetary Financial Assets 3.101 - - 83 3.101 -
3. Other 695.691 5.274 178.655 13.574 508.765 8.271
4. Current Assets (1+2+3) 34.094.523 902.324 30.564.231 66.143 2.479.100 1.051.192
5. Trade Receivables and Due from Related Parties - - - - - -
6a. Monetary Financial Assets - - - - - -
6b. Non-monetary Financial Assets - - - - - -
7. Other 88.716 170 5.758 2.211 82.870 88
8. Non-Current Assets (5+6+7) 88.716 170 5.758 2.211 82.870 88
9. Total Assets (4+8) 34.183.239 902.494 30.569.989 68.354 2.561.970 1.051.280
10.Trade Payables and Due to Related Parties (12.143.735) (217.601) (7.370.758) (124.183) (4.654.473) (118.504)
11.Short- term Borrowings and Current Portion of Long- term Borrowings (8.187.008) (164.628) (5.576.393) (69.652) (2.610.615) -
12a. Monetary Other Liabilities (15.254) (266) (8.995) (167) (6.259) -
12b. Non-monetary Other Liabilities (75.535) (2.230) (75.535) - - -
13. Current Liabilities (10+11+12) (20.421.532) (384.725) (13.031.681) (194.002) (7.271.347) (118.504)
14. Trade Payables and Due to Related Parties (251) - - (6) (235) (16)
15. Long-Term Borrowings (35.757.944) (1.003.603) (34.065.084) (45.166) (1.692.860) -
16 a. Monetary Other Liabilities - - - - - -
16 b. Non-monetary Other Liabilities - - - - - -
17. Non-Current Liabilities (14+15+16) (35.758.195) (1.003.603) (34.065.084) (45.172) (1.693.095) (16)
18. Total Liabilities (13+17) (56.179.727) (1.388.328) (47.096.765) (239.174) (8.964.442) (118.520)
19. Off Statement of Financial Position Derivative Items' Net Asset/(Liability)
Position (19a+19b) 39.265.315 1.159.200 39.265.315 - - -
19a. Total Hedged Assets (*) 39.265.315 1.159.200 39.265.315 - - -
19b. Total Hedged Liabilities - - - - - -
20. Net Foreign Currency Asset / (Liability) Position (9+18+19) 17.268.827 673.366 22.738.539 (170.820) (6.402.472) 932.760
21. Monetary Items Net Foreign Currency Asset / (Liability) Position
(1+2a+5+6a+10+11+12a+14+15+16a) (22.708.461) (489.048) (16.635.654) (186.688) (6.997.208) 924.401
22. Total Fair Value of Financial Instruments Used to Manage the Foreign 17.804 (191) (6.466) 648 24.270 -
Currency Position
23.Total value of Hedged Foreign Currency Assets - - - - - -

(*) In order to hedge foreign exchange risk arising from the translation of net investments in the subsidiaries operating in the Netherlands to Turkish Lira, the USD denominated bonds have been designated as hedges of net investment risk.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 25. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)

b) Foreign Currency Risk (continued)

The information regarding the export and import figures realized as of March 31, 2024 and 2023 is as follows:

January 1 – January 1 –
March 31, 2024 March 31, 2023
Total Export 2.051.151 1.159.679
Total Import 8.319.859 8.735.418

The following table demonstrates the sensitivity analysis of foreign currency as of March 31, 2024 and 2023:

Foreign Currency Position Sensitivity Analysis
March 31, 2024(*) March 31, 2023(*)
Income / (Loss)
Increase of Decrease of the Increase of Decrease of
the foreign foreign the foreign the foreign
currency currency currency currency
Increase / decrease in USD by 10%:
USD denominated net asset / (liability) (1.772.584) 1.772.584 (3.796.993) 3.796.993
USD denominated hedging instruments (-) 3.742.524 (3.712.821) 4.257.346 (4.257.346)
Net effect in USD 1.969.940 (1.940.237) 460.353 (460.353)
Increase / decrease in EURO by 10%:
EURO denominated net asset / (liability) (371.476) 371.476 (339.932) 339.932
EURO denominated hedging instruments (-) - - - -
Net effect in EURO (371.476) 371.476 (339.932) 339.932
Increase / decrease in other foreign currencies by 10%:
Other foreign currency denominated net asset / (liability) 89.505 (89.505) 12.020 (12.020)
Other foreign currency hedging instruments (-) - - - -
Net effect in other foreign currency 89.505 (89.505) 12.020 (12.020)
TOTAL 1.687.969 (1.658.266) 132.441 (132.441)

(*) Monetary assets and liabilities eliminated in scope of consolidation are not included except for the ones which have foreign currency gain/(loss) effects to the statement of consolidated profit or loss.

c) Foreign Currency Hedge of Net Investments in Foreign Operations

The Beer Group has designated an instrument which is amounting to USD 500 million out of USD 500 million bond issued as of June 29, 2021 to hedge its foreign currency risk arising from the translation of net assets of its subsidiary located in Netherlands, Efes Breweries International (whose main activity is facilitating foreign investments in breweries).

Soft Drink has designated two instruments, the first one amounting to USD 150 million out of USD 500 million bond issued as of September 19, 2017, and the second one amounting to USD 500 million out of USD 500 million bond issued as of January 20, 2022 as a hedging instrument in order to hedge its foreign currency risk arising from the translation of net assets of its subsidiary located in Netherlands, CCI Holland and Waha B.V.

The effective part of the change in the value of the bonds and loans designated as hedging of net investments amounting to TRL 3.382.796 (TRL 2.537.097 - including deferred tax effect) is recognized as "Gains (Losses) on Hedge" under Equity and to "Other Comprehensive Income (Loss) Related with Hedges of Net Investment in Foreign Operations" under Other Comprehensive Income (December 31, 2023 – TRL 18.835.268 (TRL 14.126.451 - including deferred tax effect), March 31, 2023 – TRL 990.031 (TRL 742.524 - including deferred tax effect)).

d) Liquidity Risk

Liquidity risk is the risk that an entity will be unable to meet its net funding requirements. The risk is mitigated by matching the cash in and out flow volume supported by committed lending limits from qualified credit institutions. The Group also reduces the risk by preferring long-term debt.

e) Price Risk

This is a combination of currency, interest and market risks which the Group manages through natural hedges that arise from offsetting the same currency receivables and payables, interest bearing assets and liabilities. Market risk is closely monitored by the management using the available market information and appropriate valuation methods.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 25. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)

f) Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Group attempts to control credit risk by limiting transactions with specific counterparties and assessing the creditworthiness of the counterparties.

Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities or activities in the same geographic region or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Group's performance to developments affecting a particular industry or geographic location.

The Group seeks to manage its credit risk exposure through diversification of sales activities to avoid undue concentrations of risks with individuals or groups of customers in specific locations or businesses. The Group keeps guarantees for a part of its receivables by means of DDS (Direct Debit System), and clearing the credit card receivables of dealers and distributors from banks. The Group also obtains guarantees from the customers when appropriate and keep considerable portion of the receivables secured with guarantees or receivable insurance.

The credit risks of the banks in which the Group has deposits are evaluated by taking into account independent data, and no significant credit risk is expected apart from the expected loss provision presented in Note 5.

g) Capital Risk Management

The Group's policy is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group periodically measures Net Debt to EBITDA BNRI ratio to maintain capital risk management. Net Debt is calculated by deducting cash and cash equivalents and deposits over three months from total borrowing.

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

Fair Value

Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm's length transaction. The optimum fair value of a financial instrument is the quoted market value, if any.

The financial assets and liabilities which are denominated in foreign currencies are evaluated by the foreign exchange rates prevailing on the date of balance sheet which approximate to market rates. The following methods and assumptions were used to estimate the fair value of each class of financial instrument of the Group for which it is practicable to estimate a fair value:

a) Financial Assets

The fair values of certain financial assets carried at cost in the consolidated financial statements, including cash and cash equivalents plus the respective accrued interest and other financial assets are considered to approximate their respective carrying values due to their short-term nature and negligible credit losses. The carrying value of trade receivables along with the related allowance for unearned income and uncollectibility are estimated to be their fair values.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

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

b) Financial Liabilities

Trade payables and other monetary liabilities are considered to approximate their respective carrying values due to their short-term nature. The bank borrowings are stated at their amortized costs and transaction costs are included in the initial measurement of loans and bank borrowings. The fair value of bank borrowings are considered to state their respective carrying values since the interest rate applied to bank loans and borrowings are updated periodically by the lender to reflect active market price quotations. The carrying value of trade payables along with the related allowance for unrealized cost is estimated to be their fair values.

Derivative Instruments, Risk Management Objectives and Policies

Derivative instruments and hedging transactions are explained in Note 5, Note 8 and Note 25.

NOTE 27. EXPLANATORY INFORMATION ON STATEMENT OF CASH FLOWS

a) Adjustments for Impairment Loss (Reversal)

January 1 – January 1 –
March 31,
March 31,
2024 2023
Adjustments for impairment loss (reversal of impairment) of inventories (Note 19) (60.648) 29.265
Adjustments for impairment loss (reversal of impairment) of property, plant, and
equipment (Note 20)
1.027 14.935
Adjustments for impairment loss (reversal of impairment) of receivables (Note 19) 123.738 (2.701)
64.117 41.499

b) Adjustments for (Reversal of) Provisions Related with Employee Benefits

January 1 –
March 31, March 31,
2024 2023
Provision for vacation pay liability 176.598 106.266
Provision for retirement pay liability 82.632 65.275
Provision for seniority bonus 56.884 54.803
316.114 226.344

c) Adjustments for Interest (Income) Expenses

January 1 – January 1 –
March 31, March 31,
2024 2023
Adjustments for interest expenses (Note 21) 2.483.202 1.552.051
Adjustments for interest expense related to leases (Note 21) 81.549 63.083
Adjustments for interest income (Note 21) (599.305) (466.991)
Adjustments for interest income income sub-lease receivables (Note 21) (16.231) (4.733)
1.949.215 1.143.410

d) Adjustments for Fair Value (Gains) Losses

January 1 –
March 31,
January 1 –
March 31,
2024 2023
Adjustments for fair value (gains) losses on derivative financial instruments (66.695) (127.448)
(66.695) (127.448)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31, 2024

(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at March 31, 2024 unless otherwise indicated)

NOTE 27. EXPLANATORY INFORMATION ON STATEMENT OF CASH FLOWS (continued)

e) Cash Flows from Purchase or Changes of Shares in Subsidiaries

January 1 – January 1 –
March 31, 2024 March 31, 2023
Cash and cash equivalents in acquired businesses (Note 3) (*) 91.606 -
Payment for business acquisition (**) (906.018) -
(814.412) -

(*) Cash and cash equivalents as of February 20, 2024, when control of Bangladesh was obtained.

(**) The amount paid on February 20, 2024, is the first installment towards the purchase of Bangladesh. The remaining payment will be made later.

f) Cash Flows from (used in) Financing Activities

January 1 – January 1 –
March 31, 2024 March 31, 2023
Income / (loss) from cash flow hedge 99.993 61.319
Change in time deposits with maturity more than three months 134.309 (115.337)
Change in currency linked deposits 7.731 (786.411)
Change in restricted cash (204.010) 116.032
Change in credit cards payables (421.939) 771.136
(383.916) 46.739

NOTE 28. EVENTS AFTER REPORTING PERIOD

The Company's profit distribution of gross 235% on its issued capital as of the end of the accounting period for January-December 2023, based on a share capital of TRL 592.105, to ensure a gross profit distribution of full TRL 2,35 (net full TRL 2,1150) per each fully paid nominal share, amounting to a total profit of TRL 1.391.447, to be paid in cash from May 28, 2024, onwards, was approved at the General Assembly held on April 17, 2024.

According to the consolidated financial statements of Soft Drink prepared in accordance with TFRS, the net profit for the year 2023 amounted to TRL 20.579.818. For fully taxable corporations and non-resident corporations obtaining dividend income through a permanent establishment or representative office in Türkiye, a gross profit of full TRL 7,8626 (net full TRL 7,8626) per each full TRL 1 nominal value share, equivalent to 100 shares, and for other shareholders, a gross profit of full TRL 7,8626 (net full TRL 7,07634) per share, totaling TRL 2.000.016, to be paid in cash from May 27, 2024, onwards, was approved at the General Assembly held on April 5, 2024.

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