ARÇELİK A.Ş. — Interim / Quarterly Report 2021

Apr 26, 2021

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Quarter Highlights

▪ Robust top line growth of 67%

TRY13.0bn

14.6%

• Strong demand in many markets

• High gross margin sustained y/y thanks to strict cost management & pricing but slightly lower q/q due to higher raw material prices

• Improvement in OPEX/Sales on both quarterly (+150bps) & yearly basis (+429 bps)

Revenue

22.7%

OPEX/Sales Ratio

EBITDA Margin 1.42x

Leverage

• Increased WC needs due to higher sales impacting receivables, inventory levels and free cash flow

Sensitivity: Public * Free Cash Flow calculated as Net Operating Cash Flow + CAPEX

Key Factors Sales/Margins

Solid unit growth in both Turkey & International markets Revenue +67% Strong EUR against TRY Growth High capacity utilization Gross 34.5% Strong EUR against USD Margin Upward trend in raw material prices (QoQ) Strong revenue growth EBITDA Lower OPEX/Sales thanks to savings compared to 1Q20 14.6% Margin

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13.335 12.984
7.768
2020 Q1 2020 Q4 2021 Q1
35,9
34,5
31,8
2020 Q1 2020 Q4 2021 Q1
14,5
14,6
11,2
2020 Q1 2020 Q4 2021 Q1
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2021 Q1 Performance Turkey

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MDA-6 Air-Conditioner TV
+48% +57% -2%
Arçelik
Market +40% +43% -17%
Turkish MDA6 Market YoY Change
59%
42%
26%
2020 2021
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Sensitivity: Public MDA-6 and A/C data (sell-in) is based on WGMA for 1Q21. TV market reflects the data of a retail panel market for January-February 2021.

2021 Q1 International Markets

East Europe

-10,0% 0,0% 10,0% 20,0% 30,0% E. Europe Russia Poland Romania Ukraine W. Europe France Germany U.K. Italy Spain Belgium Austria

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West Europe

• Volume growth led by France and Italy while Germany adversely affected by lockdowns

South Africa

• Strong recovery vs last year with double-digit growth in volumes, yet coming from a low base due to lockdown in March, 2020

• Robust growth in 2M21 in each country resulted in double-digit market growth

Bangladesh

• Strong start to the year

Pakistan

• Strong demand continued after 4Q20 supported by currency appreciation

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South Africa 2M

International Performance 2021 Q1

44%

Europe

6% Africa

10% Asia-Pacific

• Strong double-digit top-line growth in EUR terms in 1Q21 on a yearly basis

• Strong unit growth resulted in c.37% revenue growth in 1Q21 y/y

• Higher contribution from the region with almost doubled revenue in 1Q21 vs a year ago

• Highest Q1 revenue ever in UK in GBP term

• Slightly increased unit market share in both West & East in 2M21 period

• Improvement in price index in the U.K. & Spain thanks to price increases

• Slightly gained market share despite price increases

▪ Defy’s export units to Sub Saharan Africa countries posted 55% growth in 1Q21 on a yearly basis

▪ More than doubled revenue in Pakistan in PKR terms supported by new launches and recovering consumer demand despite third wave of COVID-19 together with low base effect ▪ Positive contribution from all products except TV and also low base effect led strong top line growth of 23% in Bangladesh in BDT terms despite rising COVID-19 cases

Arcelik Regional Sales Growth (YoY % in EUR)

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~46%
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~19%
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West Europe

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~42%
~17%
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S.Africa & Sub Sahara

East Europe

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APAC
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Sensitivity: Public APAC sales excludes Bangladesh for organic comparison

2021 Q1 Raw Material Trends

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140
120
100
80
60
40
1Q Average Metals Price Index (Market)
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
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140
120
100
80
Info-Text
60
40
1Q Average Plastics Price Index (Market)
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
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Metal Prices Index Quarterly Average - Market

2Q19	3Q19	4Q19	1Q20	2Q20	3Q20	4Q20	1Q21
82	79	77	77	72	77	90	108

Source: Steel BB, Steel Orbis

Index includes: CRC, HRC, Galvanized Steel, Stainless Steel, Copper, Aluminium

Plastic Prices Index Quarterly Average - Market

2Q19	3Q19	4Q19	1Q20	2Q20	3Q20	4Q20	1Q21
110	104	101	100	89	97	109	138

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

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Sales Performance

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2021 Q1 Sales by Region

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2021 Q1
+67%
2,5% [5,5%]
12.984 4,0% Turkey
2,8% 4,5%
Western Europe
2,7%
5,7% 36,1%
5,0% 2,9% CIS&Eastern Europe
+66% 35,6%
8.297
7.768
Africa
13,8% 2020 Q1
12,8% Middle East
4.999
Pakistan
+69%
4.686 32,5% Bangladesh
2.769
Other
30,6%
2020 Q1 2021 Q1
Turkey International
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2021 Q1 Sales Bridge

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14.000 12,984
12.000 1,799
1,500
10.000 1,918
8,297
7,768
8.000
6.000
4,999
4.000
4,686
2.000
2,769
-
TL mn 2020 1Q TR - Organic INT - Organic INT - FX Impact 2021 1Q
Turkey International Revenue Impact
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2021 1Q	Organic	Currency Effect	Acquisition	TOTAL
Domestic Growth	69,3%	0,0%	0,0%	69,3%
International Growth	30,0%	36,0%	0,0%	66,0%
Total Growth	44,0%	23,2%	0,0%	67,2%

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Financial Performance

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2021 Q1 Income Statement

					Δ%	Δ%
TL mn		2021 Q1	2020 Q1	2020 Q4	YoY	QoQ
Revenue		12.984	7.768	13.335	67	-3
Gross Profit		4.483	2.468	4.803	82	-7
	margin	34,5	31,8	36,0
EBIT*		1.545	589	1.607	162	-4
	margin	11,9	7,6	12,0
Profit Before Tax		1.294	308	1.379	320	-6
	margin	10,0	4,0	10,3
Net Income**		1.100	259	1.170	327	-6
	margin	8,5	3,3	8,8
EBITDA*		1.890	871	1.932	117	-2
	margin	14,6	11,2	14,5
EBITDA -ex.one-offs		1.890	654	1.932	189	-2
	margin	14,6	8,4	14,5

• EBIT was calculated by deducting the impact of foreign exchange gains and losses arising from trade receivables and payables, credit finance income and charges and cash discount expense and adding income and expenses from sale of property plant and equipment.

** Net income before minority

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2021 Q1 Cash & Financial Debt

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TL mn 3,15 2,36 2,31 2,40 2,41 2,39
2,33 1,88
18.000 1,42
1,24 0,95
13.000
8.000
3.000 4.225 5.342 6.478 5.788 5.482 6.937 7.827 9.253 11.540 12.002 10.213
-2.000 -4.687 -5.517 -5.602 -5.596 -5.772 -6.152 -6.210 -5.781
-9.606 -10.231 -10.921
-7.000
-6.836 -6.432 -7.529 -7.690 -7.359
-12.000 -8.803 -9.885 [-10.113]
-7.301
-6.844
-8.366
-17.000
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18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2 20 Q3 20 Q4 21 Q1

Cash and cash equivalent Short term debt Long term debt Net Debt/EBITDA

Cash Breakdown by Currency

13% 2%[2%] 2% 21% 60% USD EUR TRY GBP RUB Other

Financial Debt profile (as of Mar 31 2021)

	Effective	mn Original	TL mn
	Interest Rate p.a. (%)	Currency	Equivalent
TRY	12,4%	4.371	4.371
EUR	0,9%	232	2.271
USD	2,0%	18	153
ZAR	5,4%	946	527
AUD	3,3%	15	94
RUB	0,8%	127	14
PKR	7,9%	16.972	919
BDT	6,3%	3.886	382
Total			8.730
USD	5,1%	512	4.263
EUR	4,0%	357	3.491
TRY*	18,8%	1.748	1.748
Total Bond			9.502

Debt Maturity Profile

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2023+
4%
2023
33%
2021
56%
2022
7%
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Total

18.232

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2021 Q1 Cash Flow

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2021 Q1
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2020 Q1
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Strong Revenue Growth Led Solid EBITDA But Im actin Workin Ca ital & FCF p g g p

Working Capital / Sales

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4.6% -2.8% 0.3% 27.1%
4.4%
20.5%
FY20 1Q21
A/R Inventory A/P Other
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4.4% 4.6%
Accounts Inventory
Receivable
2.0% 0.9%
2.3% FX impact 2.4% FX impact
2.0%
Change in sales 2.1% 2.2%
TL based FX based
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Free Cash Flow

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A/P
2,500
1,890
A/R
(3,585)
Inv.
(3,029) 501
(2,108)
(4,115)
(384)
EBITDA CAPEX Other FCF
WC
Items 1Q21
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Higher receivables & inventory levels due to;

Strong EBITDA through;

• » TRY depreciation

» Unit growth

• » Increased receviables of Turkey operation as a result of higher sales QoQ

» Pricing

• » TRY depreciation

• » Increased production to meet market demand in the coming quarters

Resulted in negative FCF

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2021 Guidance

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2021 Expectations

Turkey (in TRY) c.25% growth International (in FX) >10% growth Consolidated Total (in TRY) >30% growth

Arçelik Revenue

Profitability EBITDA Margin Working Capital/Sales

c.12%

c.25%

c.220 mio. EUR

CAPEX

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APPENDIX: Other Financial Statements

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2021 Q1 Margin by Segments

Consolidated

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13.335
12.984
35,9
31,8 34,5
7.768
2020 Q1 2020 Q4 2021 Q1
Revenue Gross Margin (%)
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White Goods
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10.488
9.947
38,1
36,5
5.723
33,4
2020 Q1 2020 Q4 2021 Q1
Revenue Gross Margin (%)
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Consumer Electronics
1.455
23,3 1.159
23,0
980
20,5
2020 Q1 2020 Q4 2021 Q1
Revenue Gross Margin (%)
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Other
32,8
1.878
31,0 33,0
1.391
1.064
2020 Q1 2020 Q4 2021 Q1
Revenue Gross Margin (%)
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2021 Q1 FX Hedging

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400 3,9% 6,0%
200 4,0%
2,0%
0
0,0%
-200 0,4% 0,7% 0,3%
-0,5%
-2,0%
-1,1% -1,2% -1,2% -1,2%
-400
-2,5% [-2,1%-2,0%] -3,6%
-2,9% [-2,4%] -3,2% -4,0%
-3,7%
-600 -4,1% -5,1% -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
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• 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 an FX exposure exceeding low single-digit % of equity.

	Before	Hedged	Net
(TRYmn)	Hedge	Position	Position
EUR	(1.766)	1.843	77
USD	54	(124)	(69)
GBP	1.266	(1.219)	47
Other	947	(960)	(13)
TOTAL	501	(460)	41
Net FX Position/Equity			0,3%

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

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Contacts for Investor Relations

Polat Şen Özkan Çimen Öktem Söylemez CFO Finance & ERM Director Senior Investor Relations Specialist Tel: (+90 212) 314 34 34 Tel: (+90 212) 314 39 01 Tel: (+90 212) 705 96 81

Investor Relations App

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www.arcelikglobal.com

investorrelations@arcelik.com

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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.

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Thank You

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