ARÇELİK A.Ş. — Interim / Quarterly Report 2021

Aug 9, 2021

2Q21 Financial Results

==> picture [147 x 58] intentionally omitted <==

==> picture [75 x 22] intentionally omitted <==

Sensitivity: Public

==> picture [65 x 23] intentionally omitted <==

2Q21 HIGHLIGHTS

TRY14.5bn

Revenue

9.8%

EBITDA Margin

23.0%

OPEX / Sales Ratio

1.54x[*]

Leverage

Demand remained strong, supported revenue growth together with pricing… Profitability challenged by the significant upsurge in the raw material prices…

==> picture [35 x 86] intentionally omitted <==

Robust top line growth of 86% y/y & 12% q/q

Strong demand continued in many markets following 1Q21

==> picture [34 x 34] intentionally omitted <==

Lower profitability margins on both y/y & q/q due to higher raw material prices

==> picture [34 x 34] intentionally omitted <==

Flat Working Capital / Sales ratio

==> picture [34 x 83] intentionally omitted <==

Completion of two strategic deals; Whirlpool (end of June) & Hitachi (beg. of July)

Successful issuance of EUR350m Greenbond

*Leverage calculation excludes the cash out from the acquisitions and Whirlpool’s cash on the balance sheet for like-basis. Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

KEY FACTORS SALES / MARGINS

==> picture [87 x 87] intentionally omitted <==

REVENUE GROWTH

86%

Unit growth in both Turkey & International markets

Price increases

Strong EUR & USD against TRY

==> picture [169 x 125] intentionally omitted <==

----- Start of picture text -----

14,534
12,984
7,832
TRYm
2Q20 1Q21 2Q21
----- End of picture text -----

==> picture [87 x 87] intentionally omitted <==

GROSS MARGIN

30.2%

Continued severe increase in raw material prices (q/q & y/y) Lower capacity utilization vs 1Q21 & 4Q20 Flat EUR against USD on a quarterly basis

==> picture [137 x 103] intentionally omitted <==

----- Start of picture text -----

34.5%
30.7% 30.2%
2Q20 1Q21 2Q21
----- End of picture text -----

==> picture [87 x 87] intentionally omitted <==

EBITDA MARGIN

9.8%

Lower gross profit due to higher raw material cost

Slightly higher OPEX/Sales ratio

==> picture [137 x 90] intentionally omitted <==

----- Start of picture text -----

14.6%
10.2%
9.8%
2Q20 1Q21 2Q21
----- End of picture text -----*

*EBITDA margin excluding one off items Sensitivity: Public

3

Operational Performance

==> picture [94 x 94] intentionally omitted <==

2Q21 Financial Results

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

ARÇELİK CONTINUED TO OUTPERFORM TURKISH MDA6 MARKET IN 2Q21

==> picture [809 x 355] intentionally omitted <==

----- Start of picture text -----

MDA6 AIR CONDITIONER TELEVISION
ARÇELİK ARÇELİK ARÇELİK
23% (5%) (31%)
MARKET MARKET MARKET
16% 7% (24%)
TURKISH MDA6 MARKET GROWTH vs ARÇELİK (% y/y)
ARÇELİK y/y growth (%)
TURKEY y/y growth (%) 51% 44% 54%
40%
33%
7% 11% 14% 11%
(15%) (11%) (8%) (3%) (0%) (5%)
(28%)
1Q20 Apr-20 May-20 Jun-20 1Q21 Apr-21 May-21 Jun-21
----- End of picture text -----

MDA-6 and A/C data (sell-in) is based on WGMA for 2Q21. TV market reflects the data of a retail panel market for 2Q21. Sensitivity: Public

5

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

STRONG DEMAND REMAINED IN 2Q21 HOWEVER NORMALIZING AFTER LOCKDOWN ENDS IN EUROPE

==> picture [136 x 17] intentionally omitted <==

----- Start of picture text -----

Western Europe
----- End of picture text -----

==> picture [282 x 185] intentionally omitted <==

----- Start of picture text -----

W. Europe
France
Germany
U.K.
Italy
Spain
Belgium
Austria
-25% -15% -5% 5% 15% 25% 35% 45%
YoY Unit Growth - Market QoQ Unit Growth - Market
----- End of picture text -----

==> picture [316 x 256] intentionally omitted <==

Eastern Europe

==> picture [250 x 185] intentionally omitted <==

----- Start of picture text -----

E. Europe
Russia
Poland
Romania
Ukraine
-20% -10% 0% 10% 20% 30% 40%
YoY Unit Growth - Market QoQ Unit Growth - Market
----- End of picture text -----*

• Demand remained high in the U.K. thanks to early vaccinations

• Strong growth continued in 2Q21 following 1Q21

• As lockdowns are eased together with positive trend in online sales, Germany recovered well after 1Q21

*Eastern Europe yearly growth data compares cumulated May-June 2021 period vs cumulated May-June 2020 period and quarterly growth data compares cumulated May-June 2021 period vs cumulated Mar-April 2021 period.Sensitivity: Public

6

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

ARÇELİK CONTINUED TO BENEFIT FROM THE STRONG DEMAND IN EUROPE

==> picture [29 x 11] intentionally omitted <==

----- Start of picture text -----

31%
----- End of picture text -----

Share in total

revenue

Arçelik Western Europe Highlights

• Strong top-line growth in EUR terms y/y thanks to unit growth & pricing

• Increased unit market share in the U.K. & Italy in 2Q21 on both q/q & y/y

• Slight improvement in price index in the U.K. & Spain compared to 1Q21 thanks to price increases

Sales Growth (EUR)

==> picture [83 x 113] intentionally omitted <==

----- Start of picture text -----

~50%
(~1%)
QoQ YoY
----- End of picture text -----

Arçelik Eastern Europe Highlights

• Double-digit top-line growth in EUR terms in 2Q21 on both q/q & y/y thanks to unit growth & price increases

• Strong leadership in Romania & Poland sustained in 2Q21 while market shares improved slightly in Ukraine (q/q) & Russia (y/y)

• Improvement in price index in Russian & Ukraine both on q/q & y/y and in Romania on q/q thanks to price increases

Sales Growth (EUR)

==> picture [82 x 106] intentionally omitted <==

----- Start of picture text -----

~40%
~10%
QoQ YoY
----- End of picture text -----

14%

Share in total revenue

7

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

RESILIENT REGIONAL PERFORMANCE UNDERLYING THE IMPORTANCE OF GEOGRAPHICAL DIVERSIFICATION

==> picture [86 x 86] intentionally omitted <==

----- Start of picture text -----

5%
----- End of picture text -----

==> picture [89 x 19] intentionally omitted <==

----- Start of picture text -----

AFRICA
----- End of picture text -----

(Share in total revenue)

• Strong unit growth resulted in more than doubled revenue growth in EUR terms in 2Q21 y/y mainly due to the low base of the last year (c.8% decline vs 1Q21 due to the lockdown in the South Africa).

• Significant market share gain in 6M21 vs a year ago.

• Defy’s export units to Sub Saharan Africa countries posted 30% growth in 2Q21 on a yearly basis while declining c.6% on a quarterly basis.

==> picture [86 x 86] intentionally omitted <==

----- Start of picture text -----

12%
----- End of picture text -----

==> picture [65 x 19] intentionally omitted <==

----- Start of picture text -----

APAC
----- End of picture text -----

(Share in total revenue)

• Higher contribution from the region vs 1Q21 with strong revenue growth in 2Q21 vs a year ago.

• Robust revenue growth of 21% q/q in PKR terms & 24% q/q in EUR terms in Pakistan thanks to price increases and continued high demand resulted in solid double-digit operating profit margin.

• Substantial revenue growth of 32% in Bangladesh in BDT terms on a quarterly basis despite declining unit performance due to lower TV & washing machine sales.

Sales Growth (EUR)

==> picture [83 x 107] intentionally omitted <==

----- Start of picture text -----

~110%
(~8%)
QoQ YoY
----- End of picture text -----

Sales Growth (EUR)

==> picture [83 x 119] intentionally omitted <==

----- Start of picture text -----

~83%
(~5%)
QoQ YoY
----- End of picture text -----

APAC sales excludes Bangladesh for organic comparison Sensitivity: Public

8

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

THE UPWARD TREND IN RAW MATERIAL PRICES STILL CONTINUES

Average Metal Prices Index - Market

Average Plastic Prices Index - Market

==> picture [353 x 164] intentionally omitted <==

----- Start of picture text -----

2Q21 134,7
1Q21 108,3
2020 79,1
4Q20 90,2
3Q20 77,3
2Q20 71,6
----- End of picture text -----

==> picture [384 x 164] intentionally omitted <==

----- Start of picture text -----

2Q21 171,5
1Q21 139,6
Info-Text
2020 98,7
4Q20 108,5
3Q20 96,6
2Q20 88,5
----- End of picture text -----

• 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

• High consumer demand for the products of industries such as automotive, furniture and white goods, & disposable products, force major reasons of suppliers, logistic crisis

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

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

9

Sensitivity: Public

Sales Performance

==> picture [94 x 94] intentionally omitted <==

2Q21 Financial Results

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

STRONG & BALANCED GROWTH CONTRIBUTION FROM DOMESTIC & INTERNATIONAL MARKETS

==> picture [880 x 281] intentionally omitted <==

----- Start of picture text -----

TRYm
2Q21
2,397
Turkey
2,761 Info-Text 5,4%
52.3% 3,4%
Western Europe
y/y 9,745 5,0%
1,544 60.2% 3,1%
5,2%
3,2% 2,6%
y/y 1,9% 33,0% CIS&Eastern Europe
47.6% 5,3% 3,5%
y/y 41,6% Africa
4,587 14,2% 2Q20
Middle East
14,2%
4,789
3,245 Pakistan
28,1%
2Q20 TR INT INT 2Q21 Bangladesh
Organic Organic FX Impact 30,6%
Other
International Turkey
----- End of picture text -----

11

Sensitivity: Public

Financial Performance

==> picture [94 x 94] intentionally omitted <==

2Q21 Financial Results

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

SUMMARY FINANCIALS

SUMMARY FINANCIALS 2Q21 Financial Results	SUMMARY FINANCIALS 2Q21 Financial Results	SUMMARY FINANCIALS 2Q21 Financial Results	SUMMARY FINANCIALS 2Q21 Financial Results	SUMMARY FINANCIALS 2Q21 Financial Results	SUMMARY FINANCIALS 2Q21 Financial Results	SUMMARY FINANCIALS 2Q21 Financial Results
TRYm 2Q21 2Q20 Δ y/y 1Q21 Δ q/q 6M21 6M20 Δ y/y
	Δ y/y		Δ q/q		Δ y/y
Revenue 14,534 7,832	86%	12,984	12%	27,518 15,600	76%
Gross Profit 4,393 2,408	82%	4,483	(2%)	8,876 4,876	82%
EBIT 1,047 572	83%	1,545	(32%)	2,591 1,161	123%
Profit Before Tax 584 526	11%	1,294	(55%)	1,878 834	125%
Net Income 541 409	32%	1,100	(51%)	1,641 668	146%
EBITDA 1,427 869	64%	1,890	(24%)	3,317 1,739	91%
EBITDA –exc. one-offs 1,427 801	78%	1,890	(24%)	3,317 1,455	128%
Gross Profit Margin 30.2% 30.7%	(52 bps)	34.5%	(430 bps)	32.3% 31.3%	100 bps
EBIT Margin 7.2% 7.3%	(10 bps)	11.9%	(470 bps)	9.4% 7.4%	197 bps
Net Profit Margin 3.7% 5.2%	(149 bps)	8.5%	(475 bps)	6.0% 4.3%	168 bps
EBITDA Margin 9.8% 11.1%	(127 bps)	14.6%	(473 bps)	12.1% 11.2%	90 bps
EBITDA Margin –ex. one-offs 9.8% 10.2%	(46 bps)	14.6%	(473 bps)	12.1% 10.2%	273 bps

EBIT was calculated by deducting the impact of FX gains and losses arising from trade receivables & payables, credit finance income and charges and cash discount expense and adding income & expenses from sale of property plant and equipment.Sensitivity: Public *Net income before minority

13

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

HEALTHY LEVERAGE SUSTAINED DESPITE THE CASH OUTS FROM ACQUISITIONS

==> picture [278 x 234] intentionally omitted <==

----- Start of picture text -----

2.02
Net Debt /EBITDA
1.88
1.54
1.42
2Q20 1Q21 2Q21
Net Debt (TRYm)
14,040
10,693
9,074
6,640
2Q20 1Q21 2Q21
----- End of picture text -----*

==> picture [254 x 160] intentionally omitted <==

----- Start of picture text -----

11%
1%
10%
3% Cash Profile
TRY10,7bn
20%
55%
USD EUR TL GBP RUB Other
----- End of picture text -----

Currency	Effective Interest Rate p.a. (%)	Original Currency (mn)	TL Equivalent (mn)
TL	16.2%	4,884	4,884
EUR	0.9%	248	2,567
USD	2.0%	18	154
GBP	0.7%	6	73
ZAR	5.5%	1,010	613
RUB AUD	7.4% 3.3%	66 15	8 100
PKR	8.0%	17,035	928
BDT	5.7%	6,154	633
TOTAL LOANS			9,959
USD	5.0%	506	4,403
EUR	3.4%	711	7,370
TRY	19.7%	2,064	2,064
TOTAL BOND			13,838
TOTAL			23,797

==> picture [185 x 154] intentionally omitted <==

----- Start of picture text -----

18%
38%
Debt Maturity
Profile
33% TRY23,8bn
11%
2021 2022 2023 2023+
----- End of picture text -----

*Net debt and Leverage calculation excludes the cash outs from the acquisitions and Whirlpool’s cash on the balance sheet for like-basis. If these figures included, net debt would be TRY14.040mn and the leverage would be 2.02x.Sensitivity: Public

14

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

ARÇELİK’S APPROACH OF PLACING SUSTAINABILITY AT THE CENTRE OF ITS BUSINESS REWARDED

Greenbond

Use of Proceeds

• Energy Efficient Products

EUR350mn EUR1.6bn

• Eco-efficient and/or Circular Economy Adapted Products

Amount Issued Demand

• Energy Efficiency in Production

5 Years 145

Maturity # of investors

• Green Buildings

• Renewable Energy

1[st]

3.0%

Interest p.a. Of its kind

• Sustainable Water and Wastewater Management

• Pollution Prevention and Control

15

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

THE UPSURGE IN THE RAW MATERIAL PRICES HIT EBITDA MARGIN, IMPROVED CAPEX & FLAT WC RATIO HELPED BETTER FCF vs. 1Q21

EBITDA Mar in g

==> picture [361 x 116] intentionally omitted <==

==> picture [306 x 30] intentionally omitted <==

----- Start of picture text -----

1Q21 2Q21
GP Margin OPEX/Sales Non-cash
Items
----- End of picture text -----

CAPEX / Sales**

Working Capital / Sales*

==> picture [361 x 117] intentionally omitted <==

==> picture [324 x 23] intentionally omitted <==

----- Start of picture text -----

2020 1Q21 2Q21
Receivables Inventories Payables Others
----- End of picture text -----

Free Cash Flow**

==> picture [137 x 133] intentionally omitted <==

----- Start of picture text -----

4,9%
3,5%
1Q21 2Q21
----- End of picture text -----

==> picture [357 x 155] intentionally omitted <==

----- Start of picture text -----

TRYm
1Q21 2Q21 CAPEX 2Q21
Other
EBITDA WC
----- End of picture text -----*

Working Capital / Sales ratio does not include Whirlpool’s figures for like-basis. If ıncluded the ratio would be 26.8% *CAPEX and FCF does not include the amounts paid for acquisitions for like-basis.Sensitivity: Public

16

Guidance

==> picture [94 x 94] intentionally omitted <==

2Q21 Financial Results

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

2021 GUIDANCE

==> picture [45 x 45] intentionally omitted <==

Revenue

• Turkey (in TRY) c.30% growth

==> picture [45 x 37] intentionally omitted <==

==> picture [45 x 45] intentionally omitted <==

==> picture [45 x 37] intentionally omitted <==

• International (in FX)

• c.35% growth

• Consolidated (in TRY)

• c.50% growth

EBITDA Mar in c.11.0% g

WC/Sales

• c.25%

• c.220 mio EUR

CAPEX

18

Sensitivity: Public

Appendix

==> picture [94 x 94] intentionally omitted <==

2Q21 Financial Results

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

MARGINS BY SEGMENTS

Consolidated

==> picture [337 x 193] intentionally omitted <==

----- Start of picture text -----

25.000
34,5
35,0
20.000 30,7 30,2
30,0
14.534
15.000
12.984 25,0
10.000 7.832 20,0
5.000 15,0
2020 Q2 2021 Q1 2021 Q2
Revenue Gross Margin (%)
----- End of picture text -----

White Goods

==> picture [288 x 193] intentionally omitted <==

----- Start of picture text -----

36,5
33,6
17.484 35,0
31,4
15.484
30,0
13.484
11.148
11.484 9.947
25,0
9.484
7.484
5.458 20,0
5.484
3.484 15,0
2020 Q2 2021 Q1 2021 Q2
Revenue Gross Margin (%)
----- End of picture text -----

Consumer Electronics

==> picture [33 x 11] intentionally omitted <==

----- Start of picture text -----

Other
----- End of picture text -----

==> picture [621 x 193] intentionally omitted <==

----- Start of picture text -----

1.984
1.784 21,7 20,6 21,3 22,021,0 3.432 32,9 35,0
1.584 20,0 2.932 29,0 30,0
1.384 19,0 25,8 2.283
1.159 2.432
1.184 1.103 18,0 1.878 25,0
914 1.932
984 17,0 1.460 20,0
784 16,0 1.432
584 15,0 932 15,0
2020 Q2 2021 Q1 2021 Q2 2020 Q2 2021 Q1 2021 Q2
Revenue Gross Margin (%) Revenue Gross Margin (%)
----- End of picture text -----

20

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

CLOSE WATCH ON FX RISK, PROACTIVELY TAKEN ACTIONS

==> picture [494 x 255] intentionally omitted <==

----- Start of picture text -----

400 6,0%
3,9%
4,0%
200
2,0%
0
0,0%
0,7%
-200 0,4% 0,3%0,3%
-0,5%
-1,1% -1,2% -1,2% -1,2% -2,0%
-400 -2,1%-2,0% -3,6% -2,4%
-2,5% -2,9% -3,2% -4,0%
-3,7%
-4,1% -5,1%
-600
-4,1% -6,0%
-5,7%
-800 -8,0%
Net FX Position Net FX/Equity
16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2 20 Q3 20 Q4 21 Q1 21 Q2
----- End of picture text -----

TRYm	Before Hedge	Hedged Position	Net Position
EUR	(2,383)	2,533	150
USD	(3,774)	3,542	(232)
GBP	1,398	(1,356)	43
Other	1,080	(996)	84
TOTAL	(3,679)	3,724	45
Net FX Position / Equity			0,3%

• 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.

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

21

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

CONTACTS

Polat Şen

Özkan Çimen

Alper Gür

Öktem Söylemez

Investor Relations Manager Senior Investor Relations Specialist (+90) 212 314 31 47 (+90) 212 705 96 81

CFO Finance & ERM Director Investor Relations Manager (+90) 212 314 39 01 (+90) 212 314 31 47

(+90) 212 314 34 34

Investor Relations App

==> picture [149 x 46] intentionally omitted <==

==> picture [149 x 44] intentionally omitted <==

www.arcelikglobal.com investorrelations@arcelik.com

22

Sensitivity: Public

2Q21 Financial Results

==> picture [65 x 23] intentionally omitted <==

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.

23

Sensitivity: Public

Thank You!

==> picture [147 x 58] intentionally omitted <==

==> picture [75 x 22] intentionally omitted <==

Sensitivity: Public