ARÇELİK A.Ş. — Interim / Quarterly Report 2021

Oct 21, 2021

TRY18.1bn

Revenue

9.8%

EBITDA Margin

21.1%

OPEX / Sales

26.1%

NWC / Sales

2.0x

Leverage

Sensitivity: Public *OPEX/Sales includes the impact of acquisitions, if excluded the ratio was 22.1%. Operational efficiency & price increases drove better EBITDA margin vs 2Q21 (LFL).. Demand was normalized & raw material cost was climbed further, as expected..

Strong top line growth of 52% y/y & 25% q/q, the organic growth was 29% y/y & 6% q/q

Demand was normalized across regions as expected

Improved EBITDA margin of 10.4% vs 2Q21 exc. the impact of acquisitions, while it was flattish as 9.8% inc. the impact of acquisitions

Working Capital / Sales was 26.1%

2.0x leverage including share buyback impact of 0.12x, 26.6mn (3.9% of equity) shares have been acquired as of 3Q21 with weighted average price of TRY32.12

KEY FACTORS SALES / MARGINS

Operational Performance

3Q21 Financial Results

CYCLING A STRONG GROWTH A YEAR AGO, TURKISH MDA6 MARKET WAS NORMALIZED IN 3Q21 AS IT WAS EXPECTED

MDA6*	AIR CONDITIONER*	TELEVISION**
ARÇELİK	ARÇELİK	ARÇELİK
(9%)	18%	(27%)
MARKET	MARKET	MARKET
(11%)	25%	(21%)

TURKISH MDA6 MARKET GROWTH vs ARÇELİK (% y/y)

GROWTH IN EUROPE SLOWED DOWN IN JULY-AUGUST PERIOD, MAINLY ATTRIBUTABLE TO THE HIGH BASE

Western Europe Eastern Europe

• All countries in E.Europe region delivered growth at a varying degrees in both July & August 2021 yet the growth was lower vs previous quarters

• Consumer demand in the majority of the W.European countries declined on a yearly basis in both July & August 2021
• The U.K. impacted negatively from the supply chain disruptions and driver shortages

ADDITIONAL UNITS FROM ACQUISITION & PRICE INCREASES RESULTED IN STRONG PERFORMANCE IN EUROPEAN MARKETS

Arçelik Western Europe Highlights

30% Share in total revenue

• Robust top-line growth in EUR terms in 3Q21 on both y/y and q/q thanks to unit growth (mainly additional units from Whirlpool Manisa Factory acquisition) & price increases
• Beko strengthened its leadership position in the U.K. in 9M21 led by strong 3Q21
• Except for Germany, Arçelik Group's share in the U.K., France, Spain and Italy has been increased in 8M21 on y/y

Arçelik Eastern Europe Highlights

• Top-line growth at high-teens in EUR terms in 3Q21 on q/q thanks to unit growth & and midsingle digit growth on y/y thanks to price increases
• 13% Share in total revenue
• Beko & Arctic brands continued to lead the market in Romania in July & August, sustained providing the Group a strong leadership
• Improvement in price index in Russia both in July and August compared to 2Q21 and last year without deterioration in market share
• Improvement in market share and price index in Ukraine in 8M21 vs 6M21

Sales Growth (EUR)

QoQ YoY

Sales Growth (EUR)

QoQ YoY

APAC GAINING MORE SHARE WITH ARÇELİK-HITACHI WHILE AFRICA CYCLING A STRONG BASE

5% AFRICA (Share in total revenue)

• Defy had double-digit unit growth on a quarterly basis resulted in doubledigit revenue growth in EUR terms in 3Q21, while, on a yearly basis, units sold and revenue was declined mainly due to the strong base of 3Q20.
• Strong leadership position has been maintained in South Africa as of 9M21.
• Defy's export units to Sub Saharan Africa countries was up by c.10% on q/q while contracted by c.13% mainly due to the strong base.

Sales Growth (EUR)

• In line with our growth strategy, Arçelik-Hitachi synergy resulted in increasing presence in APAC region with 60% share in APAC's revenue.
• Robust revenue growth of 25% y/y in PKR terms (26% in EUR terms) in Pakistan in 3Q21 thanks to continued price increases and strong demand while 4 th wave of COVID-19 caused lower sales on q/q
• In Bangladesh, net sales contracted by 26% y/y in BDT terms in 3Q21 mainly due to government-imposed country wide strict restrictions during Jul-Aug when all shops were completely closed for consecutive 34 days.

Sales Growth (EUR)

3Q21 WITNESSED RELATIVELY LOWER RAW MATERIAL PRICES

Average Metal Prices Index - Market

• Supply shortage due to growing consumer demand starting from 2H20
• China's cancellation of the export incentives for steels
• Arçelik's costs has been below market prices so far thanks to divirsified supplier base & well managed contract terms

Average Plastic Prices Index - Market

• Average plastic prices came down in 3Q21 from historic high levels compared to last quarter due to supply surplus, normalization period and eased force majeures

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

Sales Performance

RESILIENT REVENUE COMPOSITION THROUGH DIVERSIFICATION

Financial Performance

SUMMARY FINANCIALS

TRYm	3Q21	3Q20	Δy/y	2Q21	Δq/q	9M21	9M20	Δy/y
Revenue	18,148	11,938	52%	14,534	25%	45,666	27,538	66%
GrossProfit	5,125	4,127	24%	4,393	17%	14,002	9,003	56%
EBIT	1,321	1,416	(7%)	1,047	26%	3,912	2,577	52%
Profit BeforeTax	770	1,285	(40%)	584	32%	2,648	2,119	25%
Net Income	716	1,041	(31%)	541	32%	2,358	1,709	38%
EBITDA	1,782	1,735	3%	1,427	25%	5,099	3,474	47%
EBITDA –exc. one-offs	1,782	1,735	3%	1,427	25%	5,099	3,474	47%
GrossProfit Margin	28.2%	34.6%	(633 bps)	30.2%	(198 bps)	30.7%	32.7%	(203 bps)
EBIT Margin	7.3%	11.9%	(458 bps)	7.2%	8 bps	8.6%	9.4%	(79 bps)
Net Profit Margin	3.9%	8.7%	(477 bps)	3.7%	22 bps	5.2%	6.2%	(104 bps)
EBITDA Margin	9.8%	14.5%	(471 bps)	9.8%	-	11.2%	12.6%	(145 bps)
EBITDA Margin–ex. one-offs	9.8%	14.5%	(471 bps)	9.8%	-	11.2%	12.6%	(145 bps)

HEALTHY LEVERAGE SUSTAINED DESPITE ACQUISITIONS & SHARE BUYBACK

Sensitivity: Public *If the value of the shares acquired as of 30.09.2021 are deducted from net debt, the leverage is calculated as 1.88x. Adding also the annualized EBITDA contribution of our recent acquisitions would bring the leverage down to 1.72x. 14

POSITIVE FCF IN 3Q21 THROUGH STRONG EBITDA, IMPROVED WORKING CAPITAL & FLAT CAPEX

Guidance

2021 GUIDANCE

32,2

MARGINS BY SEGMENTS

CLOSE WATCH ON FX RISK, PROACTIVELY TAKEN ACTIONS

• FX hedging is a strictly pursued policy in Arçelik since more than 30 currencies are actively managed in global operations.
• It is a KPI for the company management not to have a FX exposure exceeding low single-digit % of equity.

TRYm	BeforeHedge	HedgedPosition	Net Position
EUR	(900)	1,008	108
USD	(3,797)	3,818	21
GBP	1,358	(1,284)	74
Other	1,313	(1,060)	253
TOTAL	(2,026)	2,482	456
Net FX Position/ Equity			2,9%

• The primary strategy on balance sheet hedging mainly through cash, receivables, payables and financial liabilities, and the remaining part is hedged through financial derivatives.

CONTACTS

Polat Şen	Özkan Çimen	Alper Gür	Öktem Söylemez
CFO	Finance & ERM Director	Investor Relations Manager	SeniorInvestor Relations Specialist
(+90) 212 314 34 34	(+90) 212 314 39 01	(+90) 212 314 31 47	(+90) 212 705 96 81

Investor Relations App

www.arcelikglobal.com

investorrelations@arcelik.com

DISCLAIMER

This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management's current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.

Neither Arçelik nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.

Thank You!