ARÇELİK A.Ş. — Interim / Quarterly Report 2022

Oct 21, 2022

3Q22 Financial Results

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

October 21, 2022

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

Sensitivity: Public

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

3Q22 HIGHLIGHTS

TRY34.3bn

Revenue

8.7%

EBITDA Margin

22.8%

OPEX / Sales

Steady solid revenue growth on y/y while the cost pressure were persistent.. Diminishing costs on q/q resulted in slightly better operating margins..

==> picture [35 x 34] intentionally omitted <==

Robust revenue growth of 89% y/y driven by price increases & TRY depreciation. On a quarterly basis, the revenue growth was 6%.

==> picture [35 x 34] intentionally omitted <==

Sell-out and sell-in were weak in Turkey, while contraction in consumer demand accelerated in both West & East Europe.

Improved OPEX/Sales ratio resulted in 125 bps EBITDA margin expansion, despite having contracted gross margin on a quarterly basis mainly as a result of further declining EURUSD parity.

==> picture [35 x 34] intentionally omitted <==

==> picture [35 x 34] intentionally omitted <==

Net Working Capital/Sales was 26.3% thanks to strong collection.

26.3%

NWC / Sales

2.68x

Leverage

==> picture [37 x 35] intentionally omitted <==

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

Leverage was 2.68x, down by 0.47x compared to 2Q22 thanks to cash generation in the quarter. Excluding the impact of share buyback as of September, 2022 (0.29x impact), the leverage would be 2.38x.

Beko captured the market leadership position in Europe in 8M22 with an increased market share.

2

Sensitivity: Public

Key Factors Sales / Margins

==> picture [73 x 72] intentionally omitted <==

REVENUE GROWTH

89%

Price increases on both quarterly & yearly basis

TRY depreciation on both quarterly & yearly basis

Weaker demand on both quarterly & yearly basis

==> picture [73 x 72] intentionally omitted <==

GROSS MARGIN

28.8%

Further weakened EUR against USD

Minimum wage increase within the quarter

• Increased energy costs

==> picture [85 x 31] intentionally omitted <==

3Q22 Financial Results

==> picture [72 x 72] intentionally omitted <==

EBITDA MARGIN

8.7%

Lower marketing & logistics expenses on a quarterly basis

Higher logistic expenses on a yearly basis

Eased raw material prices on a quarterly basis

==> picture [274 x 118] intentionally omitted <==

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

34,255
32,305
18,148
TRYmn
3Q21 2Q22 3Q22
----- End of picture text -----

==> picture [244 x 130] intentionally omitted <==

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

29.6%
28.2% 28.8%
3Q21 2Q22 3Q22
----- End of picture text -----

==> picture [244 x 104] intentionally omitted <==

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

9.8%
8.7%
7.4%
3Q21 2Q22 3Q22
----- End of picture text -----

43

Sensitivity: Public

Operational Performance

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

3Q22 Financial Results

Sensitivity: Public

Strong revenue growth maintained in Turkey through pricing 3Q22 Financial Results Consumer demand dropped in July & August

==> picture [85 x 31] intentionally omitted <==

MDA6*

==> picture [215 x 100] intentionally omitted <==

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

ARÇELİK y/y growth (%)
TURKEY y/y growth (%)
17% 12%
(10%) (6%)
8M21 8M22
----- End of picture text -----

AIR CONDITIONER*

==> picture [359 x 265] intentionally omitted <==

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

ARÇELİK y/y growth (%)
TURKEY y/y growth (%)
22% 25%
11% 8%
8M21 8M22
TELEVISION
ARÇELİK y/y growth (%)
TURKEY y/y growth (%)
(5%)(4%)
(7%)
(23%)
8M21 8M22
----- End of picture text -----**

Turke Revenue Growth y

==> picture [433 x 156] intentionally omitted <==

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

88%
4%
Price increases on y/y & q/q
10,128
9,737 Unit contraction in MDA6 (sell-in) y/y
5,401
TRYmn
3Q21 2Q22 3Q22
----- End of picture text -----

Turke Share in Total Revenue y

==> picture [183 x 193] intentionally omitted <==

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

3Q22
30%
30%
3Q21
----- End of picture text -----

MDA6 and A/C data (sell-in, in unit terms) is based on WGMA for 8M22 period on a cumulative basis. *TV market reflects the data of a retail panel market for 8M22 period in unit terms on a cumulative basis.Sensitivity: Public

5 6

17% Share in total revenue

Accelerated demand contraction in both West & East Europe Price increases were offset the unit contraction to a certain extent

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

==> picture [85 x 82] intentionally omitted <==

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

25%
Share in total
revenue
----- End of picture text -----

y/y market unit growth

Western Europe

MDA6 Market

MDA6 Market

Eastern Europe

==> picture [37 x 29] intentionally omitted <==

y/y market unit growth

8M22 6M22 W. Europe

Germany

==> picture [26 x 6] intentionally omitted <==

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

France
----- End of picture text -----

Great Britain

Italy

Spain

Belgium

==> picture [173 x 48] intentionally omitted <==

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

Austria
(20%) (10%) 0% 10% 20%
----- End of picture text -----

• Slowdown in consumer demand in Western Europe market accelerated in July & August mainly due to inflationary environment and changing consumer spending priorities.

• In Germany, Great Britain and France, consumer demand fell by double-digits on a yearly basis in both July and August.

• Despite having been contracted in unit terms, market remained flattish in 8M22 y/y in value terms, reflecting price increases and higher share of premium segment sales.

Arçelik in Western Europe

• 14% y/y revenue contraction in EUR terms mainly due to lower units.

• Beko maintained leadership in the U.K.

• Consumer demand continued to contract significantly in July and August in Eastern Europe as it was accelerated in the major countries compared to previous months.

• Market grew significantly in value terms in July & August period on a cumulative basis thanks mainly to strong price increases in the market.

Arçelik in Eastern Europe

• 35% y/y revenue growth in EUR terms thanks mainly to price increases and inorganic revenue contribution from recent acquisition. Organically, revenue growth was 30%.

• Arctic & Beko brands continued to hold the first and second position respectively in Romania in 8M22.

8M22 6M22

==> picture [70 x 244] intentionally omitted <==

==> picture [36 x 7] intentionally omitted <==

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

E. Europe
----- End of picture text -----

Russia

Poland

Romania

(20%) (10%) 0% 10% 20%

MDA6 market charts show the growth of sell-out demand in the countries and the regions in both 6M22 and 8M22 y/y and reflect the data of a retail panel market. Eastern European MDA6 market chart excludes Ukraine’s figures.Sensitivity: Public Russia’s share in Arçelik’s total revenue in 9M22 was 3.5% (9M21: 1.9%). Ukraine’s share in total revenue in 9M22 was 0.6% (9M21: 0.4%).

6

Solid revenue growth in Africa & Middle East maintained APAC sales were slightly lower in 3Q22 y/y

3Q22 Financial Results

==> picture [89 x 85] intentionally omitted <==

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

9%
Share in total
revenue
----- End of picture text -----

Africa & Middle East

Asia-Pacific

• Revenues from Africa & Middle East increased by c.48% y/y in 3Q22 in EUR terms thanks to significantly higher contribution of Middle East operations.

• Revenues from APAC were down by c.2% in EUR terms in 3Q22 y/y.

• In Pakistan, mainly due to the flood disaster in the country, units were contracted significantly on a quarterly basis. Thus, net sales were down by c.48% q/q in PKR terms (52% in EUR terms). On a yearly basis, thanks to price increases, net sales were increased by c.9% in PKR terms while due to PKR depreciation, net sales were contracted by c.7% in EUR terms.

• Defy’s domestic unit sales were flattish in the third quarter compared to a year ago while delivering mid single digit growth on a quarterly basis. Export units were down by mid-to-high single digit on a yearly basis and grew at low-teens on a quarterly basis.

• Defy’s revenue increased by c.16% in both EUR & ZAR terms y/y in 3Q22 mainly thanks to price increases and grew by c.11% in EUR terms q/q due to higher units and price increases.

• In Bangladesh, net sales were increased by c.13% in BDT terms in 3Q22 y/y driven by higher A/C, washing machine and SDA unit sales and price increases.

==> picture [85 x 31] intentionally omitted <==

==> picture [59 x 43] intentionally omitted <==

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

18%
----- End of picture text -----

Share in total revenue

• Defy increased its market share significantly as of August y/y in South Africa and maintained its strong leadership in a declining demand environment.

• Beko Egypt registered c.48% y/y revenue growth in EUR terms thanks mainly to increased dishwasher and air conditioner units and price increases while on a quarterly basis, revenue fell by c.15% in EUR terms mainly due to the import regulation imposed by the government.

7 9

Sensitivity: Public

Raw material prices were eased due to declining demand However, still above pre-pandemic levels

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

Average Metal Prices Index - Market

Average Plastic Prices Index - Market

==> picture [311 x 222] intentionally omitted <==

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

3Q22 108
2Q22 135
1Q22 141
2021 127
4Q21 132
3Q21 134
2Q21 134
1Q21 108
----- End of picture text -----

==> picture [397 x 222] intentionally omitted <==

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

3Q22 176
2Q22 195
1Q22 175
2021 159
4Q21 166
3Q21 158
2Q21 172
1Q21 140
----- End of picture text -----

• Shrunk demand continued to weigh on metal raw material prices in 3Q22.

• Increased oil, gas and energy prices due to the war between Russia & Ukraine impacted plastic raw material prices negatively starting from March.

• Declining demand resulted in lower plastic prices in 3Q22.

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

10 8

Sensitivity: Public

Sales Performance

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

3Q22 Financial Results

Sensitivity: Public

Resilient revenue composition through diversification

Sales Bridge

==> picture [463 x 318] intentionally omitted <==

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

88.8% y/y
207
8.740 1.6%
y/y
2.433
TRYm 68.6% 24.127
4.727 19.1% y/y
y/y 34.048
87.5%
y/y 25.307
12.747 22.874
18.148
10.128
5.401
3Q21 TR INT INT Acquisition 3Q22
Organic Organic FX Impact Impact
International Turkey
----- End of picture text -----

==> picture [85 x 31] intentionally omitted <==

3Q22 Financial Results

Sales Breakdown by Geography

==> picture [463 x 318] intentionally omitted <==

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

3Q22
Turkey
14%
Western Europe
3% 15% 30%
CIS & Eastern Europe
3% 30%
3%
4% 3% Africa
2%
5% 5% 3Q21 Middle East
13% Pakistan
30%
17% Bangladesh
25%
Other
----- End of picture text -----

10

Sensitivity: Public

Financial Performance

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

3Q22 Financial Results

Sensitivity: Public

Summary financials

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

TRYmn 3Q22 3Q21 y/y 2Q22 q/q Revenue 34.255 18.148 89% 32.305 6% Gross Profit 9.861 5.125 92% 9.568 3% EBIT 2.100 1.321 59% 1.631 29% EBIT - exc. one-off items 2.046 1.321 55% 1.602 28% Profit Before Tax 231 770 (70%) 304 (24%) Net Income 495 717 (31%) 340 46% Net Income -exc. one-off items 441 717 (38%) 311 42% EBITDA 2.986 1.782 68% 2.412 24% EBITDA -exc. one-off items 2.932 1.782 65% 2.383 24% Gross Profit Margin 28,8% 28,2% 54 bps 29,6% (83 bps) EBIT Margin 6,1% 7,3% (115 bps) 5,0% 108 bps EBIT Margin -exc. one-off items 6,0% 7,3% (131 bps) 5,0% 101 bps Net Profit Margin 1,4% 3,9% (251 bps) 1,1% 39 bps Net Profit Margin -exc. one-off items 1,3% 3,9% (266 bps) 1,0% 32 bps EBITDA Margin 8,7% 9,8% (110 bps) 7,5% 125 bps EBITDA Margin -exc. one-off items 8,6% 9,8% (126 bps) 7,4% 118 bps

9M22 9M21 y/y 94.724 45.666 107% 28.116 14.002 101% 6.013 3.912 54% 5.930 3.912 52% 1.987 2.648 (25%) 2.059 2.358 (13%) 1.977 2.358 (16%) 8.404 5.099 65% 8.321 5.099 63% 29,7% 30,7% (98 bps) 6,3% 8,6% (222 bps) 6,3% 8,6% (231 bps) 2,2% 5,2% (299 bps) 2,1% 5,2% (308 bps) 8,9% 11,2% (229 bps) 8,8% 11,2% (238 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

12

Deleveraging backed by cash generation

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

==> picture [135 x 12] intentionally omitted <==

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

Net Debt & Leverage
----- End of picture text -----

==> picture [322 x 210] intentionally omitted <==

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

3.15
Acq. impact: 0.13x
2,68
3.02
2,00
Acq. impact: 0.28x
29,287
28,116
1,72
13,973
TRYmn
3Q21 2Q22 3Q22
----- End of picture text -----

Debt Currency & Rates Breakdown

Currency	Effective Interest Rate	Original Currency	TRY Equivalent
TRY EUR USD	p.a. 22,1% 1,7% 5,8%	(mn) 6.609 503 49	(mn) 6.609 9.015 906
GBP	3,4%	7	142
ZAR	6,5%	1.027	1.058
AUD PKR	4,1% 14,8%	28 42.064	338 3.379
BDT RUB RON	6,6% 13,2% 8,1%	8.492 7 127	1.554 2 456
PLN	9,0%	119	440
NOK	3,4%	28	47
SEK IDR	1,0% 8,4%	92 88.966	150 108
MYR	6,0%	31	126
THB	3,9%	43	21
TOTAL LOANS			24.351
USD	5,0%	512	9.480
EUR	3,0%	353	6.334
TRY	23,2%	6.255	6.255
TOTAL BOND			22.069
TOTAL			46.419

Cash Currency Breakdown

Debt Currency Breakdown

TRY20.4bn (EUR1.1bn) TRY46.4bn (EUR2.6bn)

==> picture [425 x 129] intentionally omitted <==

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

17%
26% Other 22%
Other USD
40%
USD
11%
TRY 28%
5% TRY
CNY 33%
2% 16% EUR
GBP EUR
----- End of picture text -----

Debt Maturity Profile TRY46.4bn (EUR2.6bn)

==> picture [131 x 131] intentionally omitted <==

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

24%
2024+
22%
2022
54%
2023
----- End of picture text -----

In 3Q22, the impact of share buyback on leverage was 0.29x.Sensitivity: Public

13

Improved NWC/Sales resulted in significant cash generation

EBITDA Margin

==> picture [306 x 25] intentionally omitted <==

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

3Q21 3Q22
Non-cash
GP Margin OPEX/Sales
Items
----- End of picture text -----

CAPEX/Sales

==> picture [345 x 155] intentionally omitted <==

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

5,1%
3,4%
3Q21 3Q22
----- End of picture text -----

==> picture [85 x 31] intentionally omitted <==

3Q22 Financial Results

Working Capital/Sales

==> picture [346 x 125] intentionally omitted <==

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

27,7% 28,3%
26,3% 26,3%
2021 1Q22 2Q22 3Q22
----- End of picture text -----

Free Cash Flow

==> picture [346 x 132] intentionally omitted <==

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

2.100
TRYmn
(109)
3Q21 3Q22
----- End of picture text -----

14

Sensitivity: Public

Guidance

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

3Q22 Financial Results

Sensitivity: Public

2022 Guidance

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

Revenue

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

==> picture [398 x 217] intentionally omitted <==

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

•
Turkey (in TRY) >70% growth
•
International (in FX) >20% growth
•
Consolidated (in TRY) >90% growth
EBITDA Mar in c.9.5%
g
WC/Sales c.25%
----- End of picture text -----

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

==> picture [303 x 16] intentionally omitted <==

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

CAPEX c.260 mio EUR
----- End of picture text -----

16 19

Sensitivity: Public

Q&A

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

3Q22 Financial Results

Sensitivity: Public

Appendix

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

3Q22 Financial Results

Sensitivity: Public

Margins by segments

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

Consolidated

==> picture [804 x 193] intentionally omitted <==

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

30,0% 28,2% 29,6% 28,8% 45.000
40.000
25,0% 32.305 34.272 35.000
30.000
20,0%
25.000
15,0% 18.148 20.000
10,0% 15.000
10.000
5,0%
5.000
0,0% 0
2021 3Q 2022 2Q 2022 3Q
Revenue Gross Margin
----- End of picture text -----

White Goods

==> picture [288 x 194] intentionally omitted <==

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

29,6% 45.000
30,0% 28,5% 28,4%
40.000
25,0% 35.000
27.547 30.000
20,0% 24.616
25.000
15,0% 20.000
14.331
10,0% 15.000
10.000
5,0%
5.000
0,0% 0
2021 3Q 2022 2Q 2022 3Q
Revenue Gross Margin
----- End of picture text -----

Consumer Electronics

==> picture [288 x 194] intentionally omitted <==

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

5.000
30,0% 27,5%
4.500
25,6%
25,0% 4.000
3.500
20,0% 18,0% 3.000
2.126 2.500
15,0% 1.888
2.000
10,0% 1.288 1.500
1.000
5,0%
500
0,0% 0
2021 3Q 2022 2Q 2022 3Q
Revenue Gross Margin
----- End of picture text -----

==> picture [41 x 10] intentionally omitted <==

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

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

==> picture [287 x 194] intentionally omitted <==

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

35,0% 32,2% 32,4% 10.000
30,5%
9.000
30,0%
8.000
25,0% 7.000
5.800
6.000
20,0%
4.599
5.000
15,0% 4.000
10,0% 2.529 3.000
2.000
5,0%
1.000
0,0% 0
2021 3Q 2022 2Q 2022 3Q
Revenue Gross Margin
----- End of picture text -----

19 22

Sensitivity: Public

Close watch on FX risk, proactively taken actions

3Q22 Financial Results

==> picture [85 x 31] intentionally omitted <==

==> picture [921 x 225] intentionally omitted <==

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

3,9%
TRYm Before Hedge Hedged Position Net Position
4,0%
2,9% 2,9%
1,7%
2,0% EUR (8,962) 8,830 (133)
0,7% 0,0% USD (4,306) 5,047 742
0,4% 0,3%0,3%
-0,5%
-1,1% -1,2% -1,2% -1,2% -2,0% GBP 1,553 (1,384) 169
-2,1%-2,0% -3,6% -2,4% -2,6%
-2,5% -3,7% -2,9% -3,2% -4,0% Other (3,443) 3,385 (54)
-4,1% -5,1%
-4,1% -6,0%
-5,7% TOTAL (15,158) 15,882 724
-6,6%
-8,0%
Net FX Position / Equity 2,9%
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 21 Q3 21 Q4 22 Q1 22 Q2 22 Q3
----- End of picture text -----

• 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.

20 23

Sensitivity: Public

Contacts

Özkan Çimen

3Q22 Financial Results

Öktem Söylemez

==> picture [85 x 31] intentionally omitted <==

CFO Investor Relations Lead

(+90) 212 314 34 34 (+90) 212 705 96 81

Investor Relations App

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

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

www.arcelikglobal.com investorrelations@arcelik.com

21 24

Sensitivity: Public

3Q22 Financial Results

Disclaimer

==> picture [85 x 31] intentionally omitted <==

This presentation contains information and analysis on financial statements as well as forwardlooking 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 nor of its or nor other shall have Arçelik any managers employees any person any liability whatsoever for any loss arising from the use of this presentation.

22 25

Sensitivity: Public

Thank You!

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

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

Sensitivity: Public