ARÇELİK A.Ş.

Earnings Release • Jul 30, 2024

2Q24 Financial Results

July 30, 2024

Arçelik Investor Relations

Disclaimer

With the Capital Markets Board of Turkey's Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions.

Accordingly, this presentation on the second quarter 2024 financial results contain the Company's financial information prepared according to Turkish Accounting / Financial Reporting Standards by application of IAS 29 inflation accounting provisions, in accordance with CMB's decision dated 28.12.2023.

This presentation does contain forward-looking statements and figures that reflect the Company management's current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable under current conditions, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ. Neither Arçelik nor any of its directors, managers, or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.

BEKO & WHIRLPOOL TRANSACTIONS

On January 17, 2023* , Arçelik A.Ş. and Whirlpool signed an agreement for the establishment of a new company, «Beko Europe», where Arçelik will control the majority stake, which includes European operations in its scope. Parties also agreed on the acquisition of Whirlpool companies by Beko, operating in the Middle East and North Africa.

Both transactions were completed and share transfers were made on April 1, 2024** , after obtaining competition authority clearances.

Europe

• Arçelik's and Whirlpool's production, sales, and marketing subsidiaries operating in Europe was transferred under a structure where Arçelik will control a 75% majority stake, Arçelik's whollyowned subsidiary Beko B.V.
• Revenue generated by acquired entities at the end of 2023 was approximately EUR 3.0 bn.
• Arçelik's net sales from the region was around EUR 2.4 bn for FY23.
• Total revenue in the region adds up to EUR 5.4 billion on annual basis.

MENA

• Arçelik acquired full ownership of Whirlpool's MENA operations, including UAE and Morocco entities for EUR 20 M (subject to adjustments for net indebtedness and net working capital) and manages Whirlpool's MDA business operations in the MENA region.
• The consolidated net revenue of the subsidiaries acquired in the MENA transaction for the year 2023 was approximately EUR 121 M.

* https://www.kap.org.tr/tr/Bildirim/1102748 **https://www.kap.org.tr/en/Bildirim/1265248

Beko Europe

Number one player in Europe, with the launch of Beko Europe!

Transaction:

Beko Europe has transferred Whirlpool Europe's white goods production, sales and marketing subsidiaries in Europe, by way of in-kind capital contribution.

Ownership:

75% of the capital of Beko Europe was allocated to Beko and 25% to Whirlpool. The ultimate partnership structure will be determined based on the closing adjustment mechanism based on the closing financial statements.

*Arçelik fully consolidates Beko Europe's financials.

Subsidiaries:

Beko Europe now includes 69 subsidiaries, of which 39 subsidiaries were transferred by Whirlpool and the remaining 30 subsidiaries were transferred by Beko B.V.

Beko Europe now has around 19k employees in total of which approximately 13k comes with the transaction, based on 2023 actual information.

Employees:

Facilities:

▪ United Kingdom*

Beko legacy facilities).

• Slovakia: 1 Plant 1 Facility
• Italy: 6 Plants 4 Facilities ▪ Poland: 6 Plants – 3 Facilities : 1 Plant – 1 Facility
• Romania: 2 Plant 2 Facilities

* Consultations have been initiated regarding the closure of the factory in UK. https://www.kap.org.tr/tr/Bildirim/1307013

Beko Europe owns 11 production facilities, of which 9 production facilities (14 plants) obtained with the transaction, located in Italy, Poland, Slovakia and the United Kingdom and Romania (2

Beko Europe

Beko Europe's consolidated sales revenue is EUR 1.26 bn in 2Q24. Europe transaction has contributed to Beko Europe's total revenue by ≈ EUR 0.72 bn in 2Q24.

Leading Positions & Brands:

With a wide range of brands, Beko Europe now has the leading positions in:

• Europe (WE & EE)
• UK & Ireland
• France
• Italy
• Belgium
• Romania
• Ukraine

With the transaction, Beko Europe has acquired brands such as Whirlpool* Hotpoint, Indesit, Bauknecht, Privileg, and Ignis in addition to current brands as Beko, Grundig, Arctic, Elektrabregenz, Flavel and Leisure.

* Licensee limited to certain jurisdictions.

2Q24 HIGHLIGHTS

TRY 101.6bn

Revenue

27.7%

Gross Margin

4.8%

Adj. EBITDA Margin*

26.6%

OPEX**/Sales

22.1%

NWC/Sales

3.45x

Leverage

Normalization of demand in Türkiye, slowdown in APAC & inorganic growth in challenging international markets with the contribution of Whirlpool transactions.

Consolidated revenues grew by 23.0% y/y in real terms. (7.6% lower w/o the acquisition impact)

Wholesale & retail demand in Türkiye has almost remained flattish y/y, while the demand in international markets was substantially weaker.

EBITDA margin is ≈200 bps weaker due to Whirlpool transaction impact.

Adj. EBITDA margin was 4.8% in 2Q24 due to higher raw material costs, production transformation costs and growing OPEX.

Improving Net Working Capital/Sales as of 2Q24, 22.1%.

Leverage was 3.45x due to growing debt and weaker EBITDA.

* Adj. EBITDA is calculated by excluding net income from investments and one-off expenses regarding Whirlpool transactions. ** OPEX is adjusted by excluding one-off expenses regarding Whirlpool transactions.

Key Factors Sales/Margins

*Adj. EBITDA is calculated by excluding net income from investments and one-off expenses regarding the Whirlpool transactions.

Operational Performance 2Q24 Financial Results

*TRY figures reflect inflation adjusted prices. Since the increase in Consumer Price Index was greater than the change in EUR/TRY FX rate international sales point out 11.8% decline in TRY terms. Decline in international sales is -1.5% in EUR terms.

Sales Bridge Sales Breakdown by Geography

Normalization in consumer demand and sustained strong leadership in Türkiye

Sensitivity: Internal / Non-Personal Data

* MDA6 is data is based on WGMA for the given periods.

** A/C data and TV market (sell-in, in unit terms) reflects the data of a retail panel market for the given period in unit terms.

Significant improvement in Western Europe whereas demand continues to grow in Eastern Europe

Robust demand in Africa & Middle East region whereas Asia-Pacific facing challenges

• Revenues generated from Africa & Middle East grew by 36% y/y in 2Q24 in EUR terms. Middle East market has surpassed the solid sales growth in the region. Acquired Whirlpool operations contributed to the growth.
• Defy's domestic unit sales and exports increased by 18% and 36% y/y respectively. In comparison with the previous quarter, domestic sales decreased by %15 whereas exports grew by 12% in unit terms.
• In EUR terms, Defy's domestic sales and exports increased by almost 10% and 23% y/y respectively. Domestic sales declined by %5 whereas exports in the region grew by 6% q/q.
• In Egypt, MDA6 market demand was substantially weaker both y/y and q/q in 2Q24 due to market instability and currency fluctuations. In EUR terms Beko Egypt's net sales decreased by 30% y/y whereas in local currency sales were up 8%.

12% Share in total Africa & Middle East Asia revenue -Pacific

• APAC home appliance landscape faces continued challenges caused by rising cost of living, political instability, and housing crisis.
• Revenues generated from APAC were down by 7% in EUR terms in 2Q24 y/y. The contraction was primarily due to ongoing weak consumer demand within the region.
• In Pakistan, net sales grew by 43% y/y in EUR terms, in 2Q24, whereas unit growth was %36 in the same period. Net sales and unit sales have grown by 53% and 39% respectively compared to previous quarter, reflecting strong growth trend in demand.
• In Bangladesh, significant revenue growth has been observed both y/y and q/q respectively by 9% and 10% in local currency which corresponds to a similar level in unit growth.

7% Share in total revenue

Increasing raw material costs in 2Q24

• Metal raw material prices slightly contracted y/y mainly due to declined global demand, increased policy rates and decreased energy & input costs whereas prices have started to reflect a minor increase in the last quarter.

Source: Steel BB, Steel Orbis Index includes CRC, HRC, Galvanized Steel, Stainless Steel, Copper, Aluminum

Average Plastic Prices Index - Market

• Plastic raw material prices increased substantially y/y. The increase in the input costs accelerated in the last quarters.

Source: ICIS - Chemical Industry News & Chemical Market Intelligence Index includes ABS, Polystyrene, Polyurethane, Polypropylene

Financial Performance 2Q24 Financial Results

Summary Financials

TRYmn	2Q24*	2Q23*	y/y	1Q24*	q/q	6M24*	6M23*	y/y
Revenue	101.584	82.571	23%	78.339	30%	179.923	157.337	14%
Gross Profit	28.117	25.646	10%	23.250	21%	51.367	47.156	9%
EBIT	1.616	5.727	(72%)	3.461	(53%)	5.078	8.408	(40%)
Adj. EBIT	978	5.727	(83%)	3.461	(72%)	4.527	8.408	(46%)
Net Financial Income/Expense	(4.831)	(4.957)	(3%)	(5.476)	(12%)	(10.307)	(8.642)	19%
Monetary Gain/Loss	1.786	1.477	21%	3.513	(49%)	5.299	4.524	17%
Profit Before Tax	(1.551)	2.286	(168%)	1.388	(212%)	(163)	4.104	(104%)
Net Income	(805)	1.942	(141%)	584	(238%)	(222)	3.497	(106%)
EBITDA	5.478	8.535	(36%)	6.234	(12%)	11.712	14.008	(16%)
Adj. EBITDA	4.840	8.535	(43%)	6.234	(22%)	11.162	14.008	(20%)
Gross Profit Margin	27,7%	31,1%	(338 bps)	29,7%	(200 bps)	28,5%	30,0%	(142 bps)
EBIT Margin	1,6%	6,9%	(534 bps)	4,4%	(283 bps)	2,8%	5,3%	(252 bps)
Adj. EBIT Margin	1,0%	6,9%	(597 bps)	4,4%	(346 bps)	2,5%	5,3%	(283 bps)
Monetary Gain(Loss)/Sales	1,8%	1,8%	(3 bps)	4,5%	(273 bps)	2,9%	2,9%	7 bps
Net Income Margin	-0,8%	2,4%	(314 bps)	0,7%	(154 bps)	-0,1%	2,2%	(235 bps)
EBITDA Margin	5,4%	10,3%	(494 bps)	8,0%	(257 bps)	6,5%	8,9%	(239 bps)
Adj. EBITDA Margin	4,8%	10,3%	(557 bps)	8,0%	(319 bps)	6,2%	8,9%	(270 bps)

Higher leverage due to increasing net debt and weaker Adj. EBITDA

Net Debt* & Leverage** Debt Currency & Rates Breakdown

Currency	Effective Interest Rate***	Original Currency	TRY Equivalent
	p.a.	(mn)	(mn)
TRY	45,1%	22.175	22.175
EUR	5,1%	1.128	39.640
USD	8,3%	266	8.717
GBP	8,4%	16	655
ZAR	9,5%	1.674	3.020
AUD	6,1%	31	680
PKR	22,8%	19.949	2.340
BDT	12,4%	12.183	3.406
RUB	18,1%	4.048	1.546
RON	7,3%	195	1.370
PLN	7,0%	28	230
NOK	6,1%	97	299
DKK	5.0%	0	0
CNY	3,7%	46	205
SEK	5,4%	96	295
IDR	9,5%	95.525	192
MYR	6,0%	33	230
CZK	6,5%	82	115
THB	5,7%	835	747
TOTAL LOANS			85.862
EUR	3,0%	351	12.250
USD	8,5%	511	16.785
TRY	45,6%	6.358	6.358
TOTAL BOND			35.393
TOTAL			121.255

* Net Debt = Financial Debt + Derivatives (Net) – Cash and Cash Equivalents TRY45.3bn (EUR1.3bn) Cash Currency Breakdown TRY121.3bn (EUR3.2bn) Debt Currency Breakdown 2024 35% 2025 27% 2026 15% 2027 3% 2028 15% 2029 + 5% Debt Maturity Profile**** TRY121.3bn (EUR3.2bn) EUR 43% USD 21% TRY 24% Other EUR 13% 35% USD TRY 17% 21% Other 27%

** Periodic Adj. EBITDA data is annualized in calculation of Leverage. *** Average effective TRY, EUR, USD funding (loans + bonds) rate was 45.1%, 4.7% and 8.5%, respectively. **** The average duration of the consolidated debt portfolio was 2 years.

Key Performance Indicators

* NWC period end / annualized 6M sales

** 6M CAPEX / 6M sales

Guidance 2Q24 Financial Results

2024 Guidance

	Initial Guidance	New Guidance*
Revenue
Türkiye (in TRY)	Flattish	Flattish
International (in FX)	≈ 2%	≈ 50%
EBITDA Margin	≈ 8%	≈ 6.5%**
NWC/Sales	< 25%	c.22%
CAPEX		≈ EUR 300 m ≈ EUR 350 m***

*

**

Whirlpool transactions impact is included. Excluding net income from investments and one-off transaction costs. *** Including integration and optimization costs.

Efficiency improvements to deliver long-term sustainable growth and profitability

Investing in technology and AI tools to work in an agile manner and drive efficiency in all our operations around the world.

Ongoing and planned investments would help to create operational efficiency after the merger through;

• optimizing processes,
• maximizing resource utilization,
• executing cost saving opportunities,
• evaluating, aligning and consolidating roles,

• eliminating duplicate roles.

• Driving productivity through organizational restructuring, process integration and optimization

• Advanced AI and automation tools to streamline operations
• Leveraging analytics for more informed, strategic decisions
• Integration of systems
• Estimated EUR 140m savings through eliminating approximately 2,000 office positions over the next three years across our global operations*.

* Realized figures would be updated in the earnings presentations.

2Q24 Financial Results

Arçelik Investor Relations

Contacts

Özkan Çimen Chief Financial Officer (+90) 212 314 34 34

Mine Şule Yazgan

Finance & ERM Executive Director (+90) 212 314 30 60

Delal Alver Capital Markets Compliance Senior Lead (+90) 212 314 39 56

Sezer Ercan Investor Relations Senior Lead (+90) 212 705 96 81

www.arcelikglobal.com investorrelations@arcelik.com

Thank You!