ARÇELİK A.Ş.

Investor Presentation • Oct 25, 2024

3Q24 Financial Results

October 25, 2024

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 third 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.

3Q24 HIGHLIGHTS

TRY 105.4bn

Revenue

26.4%

Gross Margin

26.1%

OPEX/Sales

4.6%

Adj. EBITDA Margin*

22.7%

NWC/Sales

4.29x

Leverage

Weaker demand in major markets except Europe & Africa, inorganic growth with the contribution of Europe & MENA transactions.

Consolidated revenues grew by 13.8% y/y in real terms with the contribution of Europe and MENA transactions closed as of April 1st.

Slowdown in demand in Türkiye quarterly, where international demand improved slightly. Demand in Europe and Africa markets were relatively stronger.

Operating expenses have increased ≈1.5 points y/y, mostly due to growing personnel, marketing & selling expenses.

Adj. EBITDA margin* was 4.6% in 3Q24 due weaker gross profitability and growing OPEX.

Year-on-year improving Net Working Capital/Sales, 22.7% as of 3Q24.

• Adj. EBITDA excludes income related with contingent liabilities, one-off transaction expenses regarding Europe & MENA transactions and restructuring costs. Adjustment amount corresponds to TRY 947mn for 3Q24, mainly comprises of restructuring expenses to bring out targeted synergies.

Key Factors / Sales & Margins

• Challenging pricing environment
• Unfavorable product mix
• Higher raw material costs y/y

Growing OPEX

*Adj. EBITDA excludes income related with contingent liabilities, one-off transaction expenses regarding Europe & MENA transactions and restructuring costs. Adjustment amount corresponds to TRY 947mn for 3Q24, mainly comprises of restructuring expenses to bring out targeted synergies.

Operational Performance 3Q24 Financial Results

Figures in TRY reflect 10.3% contraction in Türkiye in real terms and 28.9% growth in international sales in terms of inflation-adjusted prices as of 30.09.2024. Since the increase in Consumer Price Index was greater than the change in EUR/TRY FX rate for the period, figures in TRY imply a smaller growth.

Sales Bridge Sales Breakdown by Geography

Slowdown in consumer demand and diminishing share of local sales in total revenue

Türkiye Share in Total Revenue Türkiye Revenue Growth -10% TRY mn 30% 39% 3Q23 3Q24 Strong unit growth in A/C Unfavorable product mix 35.756 32.077 3Q23 3Q24 Declining volumes in MDA6 y/y Flattish volumes in TV y/y

* MDA6 is data is based on WGMA for the given periods. ** A/C and TV market data (sell-in, in unit terms) reflects retail sales for the given period.

Significant improvement in Western Europe, robust demand growth continues in Eastern Europe

Robust demand in Africa whereas Middle East struggles, APAC recovers slightly y/y

Share in total Africa & Middle East Asia revenue -Pacific

• Revenues generated from Africa & Middle East grew by 28% y/y in 3Q24 in EUR terms led by the strong growth in Africa market compared to the same quarter of the previous year. Contribution of acquired entities in MENA region has limited the decline in sales units.
• In Africa region, Defy's domestic sales in South Africa have increased by almost 3% in unit terms, whereas exports within the region have shown a substantial growth more than 28% y/y. Quarterly, both domestic sales and exports have grown over 10% in Q3.
• In EUR terms, Defy's robust growth figures were around 9% and 32% y/y for both domestic sales and exports, respectively. Domestic sales increased by more than 18% quarterly whereas exports in the region grew by 22% in the same period.

• In Egypt, MDA6 market demand was substantially weaker both y/y and q/q in 2Q24 due to market instability and currency fluctuations. Despite the negative outlook, Beko Egypt's net sales were flattish y/y in EUR terms. However, in local currency, sales were up 55%. Quarterly figures show substantial recovery with a growth over 40% both in EUR terms and local currency.

• Challenges continue in APAC home appliance landscape due to rising cost of living, political instability, and housing crisis. Flash floods and typhoons in the region have deepened the challenges in Q3.

• Despite the negative outlook in the region, revenues generated in APAC were up by almost 5% in EUR terms in 3Q24 y/y due to substantial demand growth in Pakistan and Thailand.
• In Pakistan, net sales grew by almost 20% y/y in EUR terms in 3Q24 in line with the unit growth over 17% in the same period. However, sales revenue in EUR terms and sales units reflect a slowdown quarterly. Sales revenue (EUR) and sales units have decreased by almost 36% and 12% respectively compared to the previous quarter, mostly due to seasonality and increasing competition.
• In Bangladesh, more than 7% y/y revenue growth has been observed in local currency. However, in EUR terms, figures show a slight decline y/y due to depreciation against EUR. Quarterly figures are substantially lower with the seasonality impact.

8% Share in total revenue

Eased off raw material costs in 3Q24

Average Metal Prices Index - Market

• Metal raw material prices remained flattish y/y despite minor fluctuations over the period. In Q3, prices have slightly declined mainly due to weak global demand, high policy rates and lower energy costs. However, a minor increase is anticipated in the next 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. Although, weak demand, slowdown in growth and low-capacity utilization in production have caused a significant decrease in prices in the last quarter. Prices are expected to remain flattish for the next quarter.

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

Financial Performance 3Q24 Financial Results

Summary Financials

TRY mn	3Q24*	3Q23*	y/y	2Q24*	q/q	9M24*	9M23*	y/y
Revenue	105.391	92.649	14%	110.645	(5%)	301.362	264.019	14%
Gross Profit	27.827	27.137	3%	30.625	(9%)	83.775	78.498	7%
Operating Profit	(426)	4.080	(110%)	1.760	(124%)	5.104	13.237	(61%)
Adj. Operating Profit**	520	4.485	(88%)	1.052	(51%)	5.437	13.987	(61%)
Net Financial Income/Expense	(8.671)	(5.533)	57%	(5.262)	65%	(19.898)	(14.946)	33%
Monetary Gain/Loss	2.431	6.359	(62%)	1.945	25%	8.203	11.287	(27%)
Profit Before Tax	(6.646)	4.570	(245%)	(1.689)	293%	(6.823)	9.041	(175%)
Net Income***	(5.608)	1.473	(481%)	(877)	539%	(5.849)	5.283	(211%)
EBITDA	3.869	7.050	(45%)	5.967	(35%)	16.626	22.307	(25%)
Adj. EBITDA**	4.815	7.455	(35%)	5.258	(8%)	16.959	23.057	(26%)
Gross Profit Margin	26,4%	29,3%	(289 bps)	27,7%	(128 bps)	27,8%	29,7%	(193 bps)
Operating Profit Margin	-0,4%	4,4%	(481 bps)	1,6%	(200 bps)	1,7%	5,0%	(332 bps)
Adj. Operating Profit Margin	0,5%	4,8%	(435 bps)	1,0%	(46 bps)	1,8%	5,3%	(349 bps)
Monetary Gain(Loss)/Sales	2,3%	6,9%	(456 bps)	1,8%	55 bps	2,7%	4,3%	(94 bps)
Net Income Margin	-5,3%	1,6%	(691 bps)	-0,8%	(453 bps)	-1,9%	2,0%	(394 bps)
EBITDA Margin	3,7%	7,6%	(394 bps)	5,4%	(172 bps)	5,5%	8,4%	(293 bps)
Adj. EBITDA Margin	4,6%	8,0%	(348 bps)	4,8%	(18 bps)	5,6%	8,7%	(311 bps)

* All results are indexed to reflect 3Q24 prices.

** Adj. EBIT / EBITDA: excludes income related with contingent liabilities, one-off transaction expenses regarding Europe & MENA transactions and restructuring costs. *** Net income before minority.

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

Currency	Effective Interest Rate***	Original Currency	TRY Equivalent
	p.a.	(mn)	(mn)
EUR	4,9%	1.041	39.581
TRY	40,4%	25.641	25.641
USD	8,6%	297	10.112
BDT	12,5%	15.264	4.358
ZAR	5,1%	2.548	3.284
PKR	21,1%	20.875	2.549
RON	7,5%	203	1.540
RUB	21,1%	3.872	1.416
THB	5,7%	1.005	1.059
AUD	6,1%	32	743
GBP	7,3%	16	723
NOK	3,4%	150	485
PLN	8,5%	36	318
SEK	5,4%	86	289
CZK	6,0%	180	273
MYR	6,6%	31	256
CNY	3,5%	49	239
IDR	9,5%	89.081	201
CHF	2,4%	1	55
TOTAL LOANS			93.121
USD	8,5%	501	17.069
EUR	3,0%	354	13.373
TRY	46,2%	6.360	6.360
TOTAL BOND			36.803
TOTAL			129.918

Sensitivity: Internal / Non-Personal Data

**** The average duration of the consolidated debt portfolio was 2 years.

Key Performance Indicators

Guidance 3Q24 Financial Results

2024 Guidance

	Q1 Guidance*	Q2 Guidance	New Guidance
Revenue
Türkiye (in TRY)	Flattish	Flattish	Flattish
International (in FX)	≈ 2%	≈ 50%	≈ 50%
EBITDA Margin	≈ 8%	≈ 6.5%**	≈ 5.8% - 6.0%**
NWC/Sales	< 25%	≈ 22%	≈ 20%
CAPEX	≈ EUR 300 mn	≈ EUR 350 mn***	≈ EUR 400 mn***

*

**

Impact of Europe & MENA transactions was not included. Excluding income related with contingent liabilities, one-off transaction expenses regarding Europe & MENA transactions and restructuring 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 across our global operations:

• 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

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.
• Estimated EUR 140mn savings through eliminating approximately 2,000 office positions across our global operations within 3 years' time *.

Ongoing Eliminations in Office Positions

As of 3Q24,

▪ ≈ ¼ of planned eliminations in office positions within 3 years' time, have been completed across our global operations.

* Realized figures would be updated in the earnings presentations.

3Q24 Financial Results

Arçelik Investor Relations

Contacts

Barış Alparslan Chief Financial Officer (+90) 212 314 39 01 Mine Şule Yazgan Finance & Enterprise Risk

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 www.bekocorporate.com

Thank You!