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TOFAŞ TÜRK OTOMOBİL FABRİKASI A.Ş.

Quarterly Report Apr 28, 2025

5958_rns_2025-04-28_d3931062-5a4e-4b50-bc08-fcb6edd6991f.pdf

Quarterly Report

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Convenience translation into English of condensed consolidated financial statements for the interim period 1 January – 31 March 2025

(Originally issued in Turkish)

NOTE 6 OTHER PAYABLES…… 1 6
NOTE 8 INVENTORIES…… 1 7
NOT 13 EQUITY.…… 23-24
NOTE 15 RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SALES AND DISTRIBUTION EXPENSES, 2 6
GENERAL ADMINISTRATIVE EXPENSES .…
NOTE 23 EXPLANATIONS ON NET MONETARY POSITION GAINS / (LOSSES)… 4 2
NOTE 24 EVENTS AFTER THE REPORTING PERIOD… 4 3
Unaudited Audited
Notes 31 March 2025 31 December 2024
ASSETS:
Current assets:
Cash and cash equivalents 3 26,525,843 21,699,777
Financial investments 79,643 89,365
Trade receivables 20,856,335 22,986,700
Trade receivables from related parties 2
0
10,813,124 13,323,668
Trade receivables from third parties 5 10,043,211 9,663,032
Receivables from finance sector operations 7 13,147,960 13,504,084
Other receivables 22,433 1,616
Inventories 8 11,307,080 9,576,800
Prepaid expenses 1
2
464,783 248,914
Current tax assets 742,059 674,311
Other current assets 79,895 245,549
Total Current Assets 73,226,031 69,027,116
Non-Current Assets:
Receivables from finance sector operations 7 4,946,178 5,076,382
Other receivables 1,062 1,133
Investment properties 258,603 258,603
Property, plant and equipment 9 16,033,715 15,942,012
Right-of-Use Assets 37,470 41,598
Intangible assets 1
0
4,013,233 4,581,871
Prepaid expenses 1
2
1,698,914 1,979,728
Deferred tax asset 1
8
4,388,847 3,975,070
Total Non-Current Assets 31,378,022 31,856,397
Total Assets 104,604,053 100,883,513

Condensed Consolidated statement of financial position as of 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

The consolidated financial statements for the interim accounting period between 1 January - 31 March 2025 were approved at the Board of Directors meeting dated 28 April 2025.

Condensed Consolidated statement of financial position as of 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

Unaudited Audited
Notes 31 March 2025 31 December 2024
Current liabilities:
Short-term portion of long-term borrowings 4 12,053,820 12,037,683
Trade payables 18,147,990 12,483,157
Trade payables to related parties 2 0 8,311,932 4,248,645
Trade payables to third parties 5 9,836,058 8,234,512
Payables related to employee benefits 930,382 1,009,699
Other payables 6 6,068,795 105,088
Liabilities arising from customer contracts 269,579 267,076
Deferred income 538,164 379,862
Short-term provisions 1 1 2,701,938 2,833,029
Other current liabilities 220,537 68,631
Total current liabilities 40,931,205 29,184,225
Non-current liabilitier:
Long-term borrowings 4 17,603,396 18,670,883
Long-term provisions 1,114,609 1,187,065
Long-term provisions for employee benefits 1,114,609 1,187,065
Total non-current liabilities 18,718,005 19,857,948
Total liabilities 59,649,210 49,042,173
Equity:
Share capital 1 3 500,000 500,000
Capital adjustment differences 1 3 21,479,462 21,479,462
Accumulated other comprehensive income or expenses
not to be reclassified to profit or loss (239,305) (265,463)
Loss on remeasurement of defined benefit plans (239,305) (265,463)
Accumulated other comprehensive income or expenses to
be reclassified to profit or loss (797,458) (18,354)
Cash flow hedge losses (797,458) (18,354)
Restricted reserves appropriated from profit 1 3 6,139,550 5,542,050
Prior years' profit 18,013,048 18,856,785
Net profit for the period (140,454) 5,746,860
Total equity 44,954,843 51,841,340
Total liabilities and equity 104,604,053 100,883,513

Condensed Consolidated statements of profit or loss for the interim accounting periods ended 31 March 2025 and 2024

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

Unaudited Unaudited
1 January - 31 1 January - 31
Notes March 2025 March 2024
Revenue 1 4 24,204,042 46,484,998
Cost of sales (-) 1 4 (23,175,340) (39,390,905)
Gross profit from operations 1,028,702 7,094,093
Revenue from finance sector operations 2,469,467 2,225,538
Expenses from finance sector operations (-) (1,999,549) (1,856,857)
Gross profit from finance sector operations 469,918 368,681
Gross profit 1,498,620 7,462,774
Marketing expenses (-) 1 5 (1,174,527) (1,522,856)
General administrative expenses (-) 1 5 (889,338) (1,182,619)
Research and development expenses (-) 1 5 (394,622) (579,464)
Other income from operating activities 1 6 2,528,188 2,532,792
Other expenses from operating activities (-) 1 6 (2,443,073) (2,232,893)
Operating profit (874,752) 4,477,734
Income from investing activities 211,152 1,019
Expenses from investing activities (-) - (9,816)
Operating profit before financial expense (663,600) 4,468,937
Finance income 1 7 2,814,476 3,570,705
Finance expenses(-) 1 7 (1,003,607) (1,236,988)
Net monetary position losses 2 3 (1,335,717) (2,724,691)
Profit before tax from continuing operations (188,448) 4,077,963
Tax income for the period 47,994 (202,747)
Tax expense for the period 1 8 (117,102) (1,768,926)
Deferred tax income 1 8 165,096 1,566,179
Net profit for the period (140,454) 3,875,216
Distribution of net profit for the period:
Equity holders of the parent (140,454) 3,875,216
Earnings per share (Kr) 1 9 (0.28) 7.75

The accompanying notes form an integral part of these financial statements.

.

Condensed Consolidated statements of other comprehensive income for the interim periods ended 31 March 2025 and 2024

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

1 January - 31
March 2025
1 January - 31
March 2024
Net profit for the period (140,454) 3,875,216
Other comprehensive income:
Items not to be reclassified to profit or loss
Remeasurement losses of defined benefit plans 34,877 473,559
Remeasurement losses of defined benefit plans, tax effect (8,719) (118,390)
Items to be reclassified to profit or loss
Other comprehensive income/(expense) related to cash flow hedges (1,029,601) 446,251
Other comprehensive income/(expense) related to cash flow hedges, tax effect 257,400 (111,563)
Other comprehensive (expense)/income (after tax) (746,043) 689,857
Total comprehensive income (886,497) 4,565,073
Distribution of total comprehensive income:
Equity holders of the parent (886,497) 4,565,073

Condensed Consolidated statements of changes in equity for the interım periods ended 31 March 2025 and 2024 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

Accumulated
other
comprehensive
income
and
expenses
be
reclassified
not
to
profit
or loss
to
Accumulated
other
comprehensive
income
and
be
expenses to
reclassified
to
profit
or loss
Retained
earnings
Paid-in
Capital
Capital
Adjustment
Differences
Remeasurement
of
defined
losses
benefit
plans
Cash
Flow
Hedge
Losses
Restricted
reserves
appropriated
from
profit
Prior
years'
profit
profit
for
Net
the
period
equity
Total
as of
1
2024
Balance
January
500,000 21,479,462 (249,214) (3,877,565) 4,206,917 12,576,059 23,968,681 58,604,340
Transfers
Total
comprehensive
income
Dividends
-
-
-
-
-
-
-
355,169
-
512,713
334,688
-
1,377,586
-
22,078,382
-
- (13,810,383)
(23,968,681)
3,875,216
-
4,565,073
- (13,810,383)
Balance
as of
31
March
2024
500,000 21,479,462 105,955 (3,030,164) 5,584,503 20,844,058 3,875,216 49,359,030
Balance
as of
1
January
2025
500,000 21,479,462 (265,463) (18,354) 5,542,050 18,856,785 5,746,860 51,841,340
Transfers
Total
comprehensive
income
Dividends
-
-
-
-
-
-
-
26,158
-
(6,903)
(772,201)
-
597,500
-
-
5,156,263
-
(6,000,000)
(5,746,860)
(140,454)
-
-
(886,497)
(6,000,000)
Balance
as of
31
March
2025
500,000 21,479,462 (239,305) (797,458) 6,139,550 18,013,048 (140,454) 44,954,843

Condensed Consolidated statements of changes in equity

for the interım periods ended 31 March 2025 and 2024

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

Unaudited Unaudited

Notes Current Period
31 March 2025
Prior Period
31 March 2024
A. Cash flows from operating activities 5,078,426 (1,945,861)
Profit for the period (140,454) 3,875,216
Adjustments to reconcile net profit for the period 1,703,794 5,060,846
- Adjustments related to depreciation and amortization expenses 14.15 1,658,811 2,023,698
- Adjustments related to impairment of receivables 5.7 87,921 61,603
- Adjustments related to interest income 1 7 (1,843,335) (2,199,077)
- Adjustments related to inventory impairment, net 8 88,144 104,535
- Adjustments related to gains arising from the disposal of property, plant and equipment (211,152) (21,544)
- Adjustments related to employment termination benefits 91,080 541,023
- Adjustments related to guarantee provisions 1 1 447,803 578,285
- Adjustments related to other provisions 10,514 (67,043)
- Adjustments related to interest expenses 1 7 138,941 24,555
- Adjustments related to tax expense / (income) 1 8 (47,994) 202,747
- Deferred finance income from forward purchases and sales, net (78,229) (850,562)
- Adjustments related to unrealised foreign currency translation differences 4,284 642,826
- Adjustments related to monetary (gain)/loss 1,357,006 4,019,800
Changes in working capital 3,993,487 (10,137,071)
- Adjustments related to decrease / ( increase) in inventories (1,765,615) (1,338,259)
- Decrease / (increase) in trade receivables from third parties (1,155,222) (1,626,537)
- Decrease / (increase) in trade receivables from related parties 1,292,394 (3,617,091)
- Decrease / (increase) in other receivables from operating activities (20,998) 6,001
- Increase / (decrease) in trade payables to third parties 2,354,407 1,473,818
- Increase / (decrease) in trade payables to related parties 4,421,535 (309,373)
- Adjustments related to increase in liabilities arising from customer contracts 2,503 (16,904)
- Decrease / (increase) in receivables from finance sector operations (1,300,359) (5,201,940)
- (Increase)/decrease in prepaid expenses (211,261) 1,135,850
- Increase / (decrease) in deferred income 158,302 135,972
- (Decrease) in government incentives and aid - (11,008)
- Decrease / (increase) in other operating assets 79,584 (328,930)
- Increase in other operating liabilities 138,217 (438,670)
Cash flows generated from operations 5,556,827 (1,201,009)
- Tax payments (117,102) (421,534)
- Employment termination benefits paid (8,954) (72,619)
- Other cash outflows (352,345) (250,699)
B. Cash flows generated from investing activities (737,604) (2,196,745)
- Cash outflows from purchase of property, plant and equipment 9, 10 (1,487,921) (304,557)
- Cash inflows from sale of property, plant and equipment 464,389 -
- Change in cash advance given 276,206 (1,901,695)
- Decrease / (increase) in financial investments 9,722 9,507
C. Cash flows from financing activities 2,189,797 8,445,478
- Cash inflows from borrowing 4 2,425,461 7,455,150
- Cash outflows related to debt payments 4 (1,997,120) (1,276,977)
- Cash outflows related to debt payments arising from lease agreements 4 (1,203) (16,552)
- Interest paid (94,975) (23,279)
- Other cash inflows / outflows (Blocked deposit change)
- Interest received
72,441
1,785,193
(161,232)
2,468,368
D. Effect of foreign currency translation differences on cash and cash equivalents 293,703 511,945
Net Increase/Decrease in Cash and Cash Equivalents 6,824,322 4,814,817
E. Cash and Cash Equivalents at the Beginning of the Period 20,780,152 38,456,602
F. Inflation Effect on Cash and Cash Equivalents (1,983,957) (5,162,472)
Cash and Cash Equivalents at the End of the Period 3 25,620,517 38,108,947

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 1 - ORGANISATION AND OPERATIONS OF THE COMPANY

Tofaş Türk Otomobil Fabrikası A.Ş. (the "Company" or "Tofaş") was established in 1968 as a Turkish-Italian cooperation venture. The core business of the Company is manufacturing. exporting and selling passenger cars and light commercial vehicles. Tofaş, which is a joint venture of Koç Holding A.Ş. ("Koç Holding") and FCA Italy S.p.A (Stellantis), also produces various automotive spare parts used in its automobiles. The Company's head office is located at Büyükdere Cad. No: 145 Zincirlikuyu Şişli, İstanbul. The manufacturing facilities are located at Bursa. Tofaş is registered with the Capital Markets Board ("CMB") and listed on the Istanbul Stock Exchange ("ISE") in 1991 and its shares are currently traded on the Borsa Istanbul A.Ş. ("BIST").

Fiat Chrysler Automobiles signed a merger agreement with the PSA Group at the end of 2019, in which both companies will have a 50% share. Stellantis N.V. was established by merger in January 2021.

Framework Agreement on Fundamental Principles regarding commercial activities between Stellantis Group and the Company, acquisition of the shares of Stellantis Otomotiv Pazarlama A.Ş. and The Company's cooperation and partnership relations with Stellantis Group and Koç Group has been signed on 2023. Detailed explanations regarding developments after this date are provided in Note 24.

The Company conducts a significant portion of its business activities with Koç Holding and Stellantis Group Companies (Note 20).

The Company's subsidiaries as of 31 March 2025 and 2024 which are subject to consolidation are as follows:

Rate of ownership of
the Company (%)
Company Field of activity 2025 2024
Koç Fiat Kredi Finansman A.Ş. ("KFK") Consumer financing 100 100
Fer Mas Oto Ticaret A.Ş. Trading
o
f
automobile
and
spare parts
100 100
Koç Fiat Sigorta Aracılık Hizmetleri A.Ş. Insurance services 100 100

For the purpose of interim consolidated financial statements, Tofaş and its consolidated subsidiaries are referred to as the "Group".

The number of personnel employed during the period by categories of the Group is as follows:

Average End of Period
31 March 2025 31 March 2024 31 March 2025 31 December 2024
Hourly-rated 2,993 4,312 2,988 2,996
Monthly-rated 1,530 1,637 1,524 1,506
Total 4,523 5,949 4,512 4,502

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1 Basis of Presentation

2.1.1 Financial reporting standards applied

The accompanying consolidated financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which was published in the Official Gazette No:28676 on 13 June 2013. The accompanying financial statements are prepared based on the Turkish Financial Reporting Standards ("TFRS") that have been put into effect by the Public Oversight Accounting and Auditing Standards Authority ("POA") under Article 5 of the Communiqué. In addition, it is also presented in accordance with the TAS taxonomy published by POA on 4 October 2022.

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

2.1.1 Financial reporting standards applied (cont'd)

The Company and Subsidiaries in Turkey maintain their books of accounts and prepare their statutory financial statements in accordance with the Turkish Commercial Code ("TCC"), tax legislation, the Uniform Chart of Accounts issued by the Ministry of Finance and principles issued by CMB. These consolidated financial statements are based on the statutory records, which are maintained under historical cost conversion, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with the TFRS.

2.1.2 Financial reporting in high inflation economies

With the announcement made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023, entities that apply TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies for the financial statements for the annual reporting period ending on or after 31 December 2023. In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 to their annual financial statements for the accounting periods ending on 31 December 2023.

TAS 29 is applied to the financial statements, including the consolidated financial statements, of entities whose functional currency is the currency of a hyperinflationary economy. In accordance with the standard, financial statements prepared in the currency of a hyperinflationary economy are stated in terms of the purchasing power of that currency at the balance sheet date. In the prior period financial statements, comparative information is expressed in terms of the measuring unit current at the end of the reporting period. Therefore, the Group has presented the consolidated financial statements as of 31 March 2024 and 31 December 2024 on the basis of purchasing power as of 31 March 2025.

The restatement in accordance with TAS 29 has been made by using the adjustment factor derived from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute ("TURKSTAT"). As of 31 March 2025, the indices and adjustment factors used in the restatement of the consolidated financial statements are as follows:

Date Index Adjustment Coefficient Three-year cumulative
inflation rates
31.03.2025 2,954.69 1.00000 250%
31.12.2024 2,684.55 1.10063 291%
31.03.2024 2,139.47 1.38104 309%

2.1.3 Comparative information

The financial statements of the Group include comparative financial information to enable the determination of the financial position and performance trends. In order to comply with the presentation of the current period financial statements, comparative information is reclassed, and significant changes are disclosed if necessary.

2.1.4 Functional and reporting currency

The Group's functional and reporting currency is Turkish Lira ("TRY"). Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Assets and liabilities in foreign currencies are translated at the exchange rate prevailing at the balance sheet date. Foreign exchange gains and losses from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit or loss.

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

2.1.5 Basis of consolidation

Subsidiaries are entities on which the Group has control. The Group controls an entity when the group is exposed to. or has rights to. variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which the control is transferred to the Group and are no longer consolidated from the date that control ceases. All gains and losses, inter-group transactions. balances and unrealized gains on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group's accounting policies.

2.1.6 Significant accounting judgments. estimates and assumptions

In the preparation of the consolidated financial statements, the Group management must make assumptions and estimates that will affect the assets and liabilities reported as of the balance sheet date and determine the liabilities and commitments likely to occur as of the balance sheet date and the income and expense amounts as of the reporting period. Actual results may differ from the assumptions. Estimates are regularly reviewed, necessary adjustments are made and reflected in the profit or loss statement of the period they occur.

Comments that may have significant impact on the amounts reflected in the consolidated financial statements and the significant assumptions and evaluations made by taking into consideration the main sources of the estimates that occurred or may occur in the balance sheet date are as follows:

  • a) The Company determines warranty provision by considering the past warranty expenses and remaining warranty period per vehicle. In calculation of the warranty provision; vehicle quantity. warranty period and the historical warranty claims incurred are considered. As of 31 March 2025 the amount of guarantee expense is TL 447,803 (31 March 2024: TL 578,285) (Note 11).
  • b) The Group's subsidiary KFK management, as a result of the evaluations made on the loans given, allocates a certain provision for the losses that may arise from the receivables whose collection is deemed doubtful. Impairment and uncollectibility risk are calculated separately for each individually significant loan. In the condensed consolidated financial statements as of 31 March 2024, there is a general loan loss provision amounting to TL 209,429 for receivables from finance sector operations (31 December 2024: 166,284) (Note 7).
  • c) The cost of defined benefit plans is determined using actuarial valuations which involve making assumptions about discount rates. future salary increases and employee turnover. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty.
  • d) When allocating provisions for lawsuits, the probability of losing the lawsuits and the liabilities that will arise in case of loss are evaluated by the Group management by taking the opinions of the Group Legal Counsel and experts. The Group management determines the amount of provision for litigation based on the best estimates.
  • e) The data in the discounted price list are used to calculate inventory impairment. If expected net realizable value is less than cost. the Group allocates provisions for inventory impairment.
  • f) Group management has made assumptions based on the experience of the technical staff in determining the useful life of property, plant and equipment and intangible assets.
  • g) Deferred tax assets and liabilities are recognized for temporary differences between the carrying amounts of assets and liabilities in the financial statements using substantially enacted tax rates. Based on the available evidence, it has been assessed that it is probable that some or all of the deferred tax assets may or may not be realized in cash. The main factors considered include the potential for future income, accumulated losses from prior years, tax planning strategies to be implemented if necessary, and the nature of the income that can be used to convert the deferred tax asset into cash.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

2.1.6 Significant accounting judgments. estimates and assumptions (cont'd)

h) The Group capitalizes ongoing development expenditures and assesses annually whether there is any impairment on these capitalized assets. As at 31 March 2025 and 31 December 2024, no impairment has been identified for capitalized development expenditures.

2.2 New and Amended Turkish Financial Reporting Standards

a) Amendments that are mandatorily effective from 2025

Amendments to TAS 21 Lack of Exchangeability

Amendments to TAS 21 Lack of Exchangeability

The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Amendments are effective from annual reporting periods beginning on or after 1 January 2025.

b) The Group evaluates the effects of these standards, amendments and improvements on the consolidated financial statements. New and revised TFRSs in issue but not yet effective

The Group has not yet adopted the following standards and amendments and interpretations to the existing standards:

TFRS 17 Insurance Contracts Amendments to TFRS 17 Initial Application of TFRS 17 and TFRS 9 — Comparative Information

TFRS 17 Insurance Contracts

TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2026.

Amendments to TFRS 17 Insurance Contracts and Initial Application of TFRS 17 and TFRS 9 – Comparative Information

Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the results and to facilitate the initial application.

The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had been applied to that financial asset before. Amendments are effective with the first application of TFRS 17.

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.3 Summary of significant accounting policies

Interim condensed consolidated financial statements for the period ending 31 March 2025 have been prepared in accordance with TAS 34 standard for the preparation of interim financial statements of TMS/TFRS.

The accounting policies used in the preparation of these condensed interim consolidated financial statements as of and for the period ended 31 March 2025 are consistent with those used in the preparation of annual consolidated financial statements as of and for the year ended 31 December 2024. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements as of and for the year ended 31 December 2024.

2.4 Changes in significant accounting policies

The accounting policy changes arising from the first-time adoption of a new standard are applied retrospectively or prospectively in accordance with the transitional provisions, if any. Changes with no transition provisions, significant voluntary changes in accounting policy or accounting errors detected are applied retrospectively and prior period financial statements are restated. If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 3 - CASH AND CASH EQUIVALENTS

31 March 2025 31 December 2024
Cash at banks
-Demand deposits 20,125,006 20,409,179
-Time deposits 5,569,778 387,098
-Demand blocked deposit 830,940 903,478
-Time blocked deposit 119 2
2
26,525,843 21,699,777

The breakdown of time deposits as of 31 March 2025 and 31 December 2024 is as follows:

31 March 2025 31 December 2024
Annual interest Annual interest
Amount rate (%) Amount rate (%)
EUR 5,190,391 %0,4-%4,00 6,849,515 %0,4-%1,25
TL 14,934,615 %35,00-%47,25 13,559,664 %46,5-%48,75
20,125,006 20,409,179

As of 31 March 2025, the maturities of time deposits vary between 5 and 34 days (31 December 2024: 2 days).

As at 31 March 2025, time and demand deposits amounting to TL 4,091,035 (31 December 2024: 2,005,781) are held at the bank which is a related party (Note 20).

As of 31 March 2025 and 2024, the reserves of cash and cash equivalent in cash flow statement:

31 March 2025 31 March 2024
Cash on hand and banks 26,525,843 38,977,875
Less: interest accruals (74,267) (1,653)
Less: blocked deposits (831,059) (867,275)
25,620,517 38,108,947

As of 31 March 2025, there are blocked deposits amounting to TL 831,059 (31 December 2024: 903,500 TL). TL 830,940 of this amount consists of the reserve requirement of the Central Bank of the Republic of Turkey (31 December 2024: TL 903,478).

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 4 - FINANCIAL LIABILITIES

a) Short-term portion of long-term financial liabilities

31 March 2025 31 December 2024
Foreign currency TL Annual interest Foreign currency TL Annual interest
amount (thousand) equivalent rate (%) amount (thousand) equivalent rate (%)
TL loans (*) - 8,105,585 45,23-74,34 - 8,204,663 45,72-74,34
EUR loans 47,551 1,935,421 3,26 -6,8 34,718 1,404,027 3,26 -6,8
Bonds issued (1,2,3,4,5,6) - 1,981,232 43,50-54,37 - 2,409,843 35,98-54,37
Short-term portions of long
term lease liabilities
- 31,582 - - 19,150 -
47,551 12,053,820 34,718 12,037,683

b) Long-term financial liabilities

31 March 2025 31 December 2024
Foreign currency TL Annual interest Foreign currency TL Annual interest
amount (thousand) equivalent rate (%) amount (thousand) equivalent rate (%)
EUR loans
TL loans (*)
242,299
-
9,862,011
7,013,451
3,26 -6,8
45,23-74,34
249,928
-
10,107,167
7,743,405
3,26 -6,8
45,72-74,34
Bonds issued (1,2,3,4,5,6) - 722,198 39,00-52,85 - 797,666 39,00-52,85
Long-term lease liabilities - 5,736 - - 22,645 -
242,299 17,603,396 249,928 18,670,883

(*) The whole short-term and long-term bank borrowings amounting to TL 15,119,036 (31 December 2024: TL 15,948,068) which are denominated in TL comprise bank borrowings obtained by KFK, consolidated subsidiary, to finance consumer financing loans as of 31 March 2025.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 4 - FINANCIAL LIABILITIES (cont'd)

  • (1) The Group issued a bond with a nominal payment of TL 290,000 with a nominal interest rate of 52.85% and a maturity of 24 months on 7 September 2023.
  • (2) The Group issued a bond with a nominal payment of TL 650,000 with a nominal interest rate of 48.50% and a maturity of 24 months on 7 December 2023.
  • (3) The Group issued a 13-month maturity bond with a nominal interest rate of 48.75% and a nominal payment of 400,000 TL on 6 August 2024.
  • (4) The Group issued a bond with a nominal payment of TL 350,000 with a nominal interest rate of 46.50% and a maturity of 15 months on 26 November 2024.
  • (5) The Group issued a bond with a nominal payment of TL 360,000 with a nominal interest rate of 48.80% and a maturity of 18 months on 25 December 2024.
  • (6) The Group issued a bond with a nominal payment of TL 300,000 with a nominal interest rate of 45.50% and a maturity of 15 months on 7 January 2025.

As at 31 March 2025, the interest rate on TL loans is fixed and the interest rate on EUR loans is variable.

As of 31 March 2025, TL 1,458,524 (31 December 2024: TL : 1,415,349) of short-term and long-term financial liabilities are obtained through banks which are related parties of the Group (Note 20).

The redemption schedule of the long-term bank borrowings and bonds as of 31 March 2025 and 31 December 2024 is as follows:

31 March 2025 31 December 2024
Between 1-2 years 9,141,036 9,761,477
Between 2-3 years 1,405,122 1,956,049
Between 3-4 years 1,405,386 1,385,735
Between 4-5 years 1,405,386 1,386,026
More than 5 years 4,240,730 4,158,951
17,597,660 18,648,238
The movement of financial liabilities as of 31 March 2025 and 31 March 2024 is as follows:
2025 2024
1 January 30,708,566 18,799,983
Effect of cash flows, net 428,341 6,178,173
Unrealized foreign exchange differences 1,327,588 196,576
Cash flows on payments arising from TFRS 16 lease agreements (1,203) (16,552)
Change in accrual of interest 43,966 1,276
Inflation Effect (2,850,042) (2,680,221)
29,657,216 22,479,235

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 5 - TRADE RECEIVABLES AND PAYABLES

a) Trade receivables from third parties

31 March 2025 31 December 2024
9,870,404
19,545
(16,118) (17,740)
(209,177)
9,663,032
10,149,995
17,758
(108,424)
10,043,211

The movement of provision for doubtful receivables is as follows:

31 March 2025 31 March 2024
1 January 17,740 19,524
Change during the period, net - 4,631
Inflation Effect (1,622) (1,895)
16,118 22,260

Collaterals received related with trade receivables

As of 31 March 2025, the Group has letters of guarantee amounting to TL 449,108 guarantee cheques amounting to TL 2,224, mortgages amounting to TL 1,832, direct borrowing system limit (payment guarantee limit granted by the bank to its customer according to the transaction volume) amounting to TL 6,488,381. (31 December 2024: Letter of guarantee amounting to TL 514,568, guarantee cheques amounting to TL 2,248 mortgage amounting to TL 2,072, direct borrowing system limit amounting to TL 5,419,836).

b) Trade payables to third parties

31 March 2025 31 December 2024
Trade payables
Less: unrealised finance expense
on credit purchases
9,866,253
(30,195)
8,270,110
(35,598)
9,836,058 8,234,512

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 6 – OTHER PAYABLES

31 March 2025 31 December 2024
Dividend payables to shareholders 6,000,000 -
Taxes and payables 57,832 93,311
Other 10,963 11,777
6,068,795 105,088

NOTE 7 - RECEIVABLES FROM FINANCE SECTOR OPERATIONS

31 March 2025 31 December 2024
Short-term consumer finance loans 13,031,595 13,386,853
Doubtful loans 432,608 411,727
13,464,203 13,798,580
Special provisions (166,913) (176,297)
General provisions (149,330) (118,199)
13,147,960 13,504,084
Long-term consumer finance loans 5,006,277 5,124,467
General provisions (60,099) (48,085)
4,946,178 5,076,382

As of 31 March 2025, interest rates on loans to consumers are fixed and range between 0.01% - 8.96% (31 December 2024: 0.01% - 8.96%) per month for TL loans.

The maturities of long-term consumer financing loans are as follows:

31 March 2025 31 December 2024
Between 1-2 years 3,992,514 4,118,739
Between 2-3 years 915,383 957,643
Between 3-4 years 38,281 -
4,946,178 5,076,382

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 7 - RECEIVABLES FROM FINANCE SECTOR OPERATIONS (cont'd)

Movements in the allowance for loan impairment are as follows:

31 March 2025 31 March 2024
1 January 176,961 188,879
Provision allocated during the period 87,921 61,607
Collected during the year (-) (21,267) (1,648)
Inflation Effect 132,727 (26,792)
Total 376,342 222,046

The Group has obtained pledge rights as a guarantee for its consumer financing loans. up to total amount of receivables. depending on the agreement between the Group and the consumers. As of 31 March 2025, the fair value of guarantees obtained for the consumer loans amounting to TL 24,559,856 (31 December 2024: TL 25,796,443). Furthermore, the Group obtains mortgage guarantees where necessary. The Group has mortgage guarantee on vehicles for all consumer financing loans that Group booked special provision amounting to TL 240,203 (31 December 2024: TL 218,976) as of 31 March 2025.

NOTE 8 – INVENTORIES

31 March 2025 31 December 2024
Raw materials 4,175,135 2,491,096
Work-in-progress 429,778 2,304,324
Goods 542,727 535,822
Imported vehicles 1,857,191 1,970,212
Spare parts 1,139,795 1,085,672
Goods in transit 3,542,522 1,481,599
Provision for inventory impairment (-) (380,068) (291,925)
11,307,080 9,576,800

Movements in the provision for impairment on inventory are as follows:

31 March 2025 31 March 2024
1 January 291,924 208,851
Movements during the period, net 88,144 83,310
380,068 292,161

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 9 - PROPERTY. PLANT AND EQUIPMENT

The movement of property, plant and equipment and the accumulated depreciation for three months period ended 31 March 2025 is as follows:

Land,
land
improvements
and
buildings
Machinery
and
equipments
Furniture
and
fixtures
Vehicles Leasehold
improvements
Construction
in
progress
Total
As
of
1
January
Cost 10,157,930 92,126,985 10,577,288 1,940,547 270,027 949,004 116,021,781
Accumulated
depreciation
(6,940,817) (83,011,217) (9,183,333) (747,232) (197,170) - (100,079,769)
Net
book
value
3,217,113 9,115,768 1,393,955 1,193,315 72,857 949,004 15,942,012
1
January
2025,
net book
value
Additions - 465 283 - - 1,209,703 1,210,451
Disposal
cost
- (9,648) (40,677) (360,349) - - (410,674)
Depreciation
of
disposals
- 9,648 40,533 107,256 - - 157,437
Transfers 3,981 555,865 89,042 75,606 - (724,494) -
Depreciation
expense
(44,860) (630,615) (106,075) (81,547) (2,414) - (865,511)
31
March
2025,
net book
value
3,176,234 9,041,483 1,377,061 934,281 70,443 1,434,213 16,033,715
As
of
1
January
Cost 10,161,911 92,673,667 10,625,936 1,655,804 270,027 1,434,213 116,821,558
Accumulated
depreciation
(6,985,677) (83,632,184) (9,248,875) (721,523) (199,584) - (100,787,843)
31
March
2025,
net book
value
3,176,234 9,041,483 1,377,061 934,281 70,443 1,434,213 16,033,715

As of 31 March 2025, there are no pledges or collaterals on property, plant and equipment (31 March 2024: None).

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 9 - PROPERTY. PLANT AND EQUIPMENT (cont'd)

The movement of property, plant and equipment and the accumulated depreciation for three months period ended 31 March 2024 is as follows:

Land,
land
improvements
buildings
and
Machinery
and
equipments
Furniture
and
fixtures
Vehicles Leasehold
improvements
Construction
in
progress
Total
As
of
1
January
Cost 10,082,770 89,790,003 10,312,700 1,769,769 267,301 896,816 113,119,359
Accumulated
depreciation
(6,769,568) (82,486,898) (8,960,337) (705,461) (187,834) - (99,110,098)
Net
book
value
3,313,202 7,303,105 1,352,363 1,064,308 79,467 896,816 14,009,261
1
January
2024,
net book
value
Additions - 1,280 726 - - 530,437 532,443
Disposal
cost
(1,508) (419,785) (108,253) (128,620) - - (658,166)
Depreciation
of
disposals
1,284 241,444 39,358 16,717 - - 298,803
Transfers 10,639 58,817 39,670 378,519 - (487,645) -
Depreciation
expense
(44,045) (620,390) (109,464) (98,171) (2,429) - (874,499)
31
2024,
March
net book
value
3,279,572 6,564,471 1,214,400 1,232,753 77,038 939,608 13,307,842
As
of
31
March
Cost 10,091,901 89,430,315 10,244,843 2,019,668 267,301 939,608 112,993,636
Accumulated
depreciation
(6,812,329) (82,865,844) (9,030,443) (786,915) (190,263) - (99,685,794)
31
March
2024,
net book
value
3,279,572 6,564,471 1,214,400 1,232,753 77,038 939,608 13,307,842

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 10 – INTANGIBLE ASSETS

The movement table of intangible assets for the interim periods ending as of 31 March 2025 and 2024 is as follows:

Licenses and Other Total
development costs
As of 1 January
Cost 59,886,724 6,274,818 66,161,542
Accumulated amortization (55,710,596) (5,869,075) (61,579,671)
Net book value 4,176,128 405,743 4,581,871
1 January 2025, net book value
Additions 268,233 9,237 277,470
Amortization expense (816,104) (30,004) (846,108)
31 March 2025, net book value 3,628,257 384,976 4,013,233
As of 31 March
Cost 60,154,957 6,284,055 66,439,012
Accumulated amortization (56,526,700) (5,899,079) (62,425,779)
31 March 2025, net book value 3,628,257 384,976 4,013,233
Licenses and
development costs Other Total
As of 1 January
Cost 58,469,840 6,134,663 64,604,503
Accumulated amortization (52,078,051) (5,753,589) (57,831,640)
Net book value 6,391,789 381,074 6,772,863
1 January 2024, net book value
Additions 139,877 13,143 153,020
Amortization expense (1,120,544) (28,654) (1,149,198)
31 March 2024, net book value 5,411,122 365,563 5,776,685
As of 31 March
Additions 58,609,717 6,147,806 64,757,523
Accumulated amortization (53,198,595) (5,782,243) (58,980,838)
31 March 2024, net book value 5,411,122 365,563 5,776,685

(*) It consists of development costs made within the scope of increasing the efficiency and quality of automobile production and reducing costs. The aforementioned amount has been capitalized within the scope of TMS 38 and is recognized within intangible assets.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 11 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

Short-term debt provisions:

31 March 2025 31 December 2024
Provision for warranty claims 2,329,064 2,460,860
Provision for legal cases 97,479 107,288
Other 275,395 264,881
2,701,938 2,833,029

Movement table of the warranty provision is as follows:

31 March 2025 31 March 2024
1 January 2,460,860 2,766,303
Paid during the period (352,345) (250,699)
Increase during the year (Note:15) 447,803 578,285
Inflation Effect (227,254) (376,925)
2,329,064 2,716,964

Movement table of the provision for litigation is as follows:

31 March 2025 31 March 2024
1 January 107,288 27,832
Inflation Effect (9,809) (3,644)
97,479 24,188

Litigations against the Group

As of 31 March 2025, the total amount of outstanding legal claims brought against the Group is TL 31,027 (31 December 2024: TL 34,149). The Group has reflected a reserve amounting to TL 97,479 (31 December 2024: TL 107,288) in the financial statements.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 11 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)

Guarantees, pledges, mortgages and sureties:

As at 31 March 2025 and 31 December 2024, guarantees, pledges, mortgages and sureties ("GPMs") given by the Group are as follows in original currencies:

31 March 2025 31 December 2024
TL TL
Equivalent EUR TL Equivalent EUR TL
A. Total Amount of CPM Given for Its Own Legal Entity
B. Total Amount of CPM Given
on Behalf of the Fully
Consolidated Entities
524,434
-
2,000
-
443,030
-
740,059
-
2,000
-
659,178
-
C. Total Amount of CPM Given on Behalf of Third Parties Debts for Continuation of - - - - - -
Their Economic Activities
D. Total Other CPM Given
i. Total CPM Given on Behalf of
the Parent Company
B ve C maddeleri kapsamına
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
ii. Total CPM Given on Behalf of Other Group Companies which are not included in the Scope of Items B and C - - - - - -
iii. Total CPM Given on Behalf of Third Parties
which are not included in the Scope of Items C
-
-
-
-
-
-
-
-
-
-
-
-
Total 671,213 2,000 443,030 740,059 2,000 659,178

As of 31 March 2025 and 31 December 2024, the ratio of other GPMs given by the Group to the Group's equity is zero.

Other

Within the scope of the export incentive certificate dated 04 March 2021 and numbered 2021/D1-01051, which provides an export commitment of full 3,288,142,000 USD to be realized until 30 April 2024, full 2,918,148,554 USD has been exported. Within the scope of the export incentive certificate, which provides an import commitment of full 1,950,184,800 USD, full 1,491,043,569 USD has been imported.

Within the scope of the export incentive certificate dated 21 February 2023 and numbered 2023/D1-01035, which provides an export commitment of full 2,070,948,000 USD to be realized by 05April 2025, full 852.579.230 USD has been exported. Within the scope of the export incentive certificate, which provides an import commitment of full 955,230,840 USD, full 289,331,265 USD has been imported.

Within the scope of the export incentive certificate dated 22 November 2024 and numbered 2024/D1-06175, which provides an export commitment of full 1,748,667,200 USD to be realized by 22 November 2025, full 5,013,410 USD of export has been realized. Within the scope of the export incentive certificate, which provides an import commitment of full 1,127,480,951 USD, full 15,513,325 USD has been imported.

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 12 - PREPAID EXPENSES AND INCOME, OTHER ASSETS AND LIABILITES

a) Short-term prepaid expenses

31 March 2025 31 December 2024
Order advances given 100,438 39,260
Prepaid insurance and dealer expenses 364,345 209,654
464,783 248,914

b) Long-term prepaid expenses

As of 31 March 2025, long term prepaid expenses amounting to TL 1,698,914 (31 December 2024: TL 1,979,728) consist of advances given for the purchase of property, plant and equipment amounting to TL 1,688,382 (31 December 2024: TL 1,964,588).

NOTE 13 SHAREHOLDER'S EQUITY

Share capital/adjustments to share capital and equity investments

Registered capital ceiling of the Company is 2,500,000,000 (exact TL). The Company's historical authorized and issued share capital as of 31 March 2025 and 31 December 2024 is KTL 500,000,000 (exact TL) and consists of 50 billion shares with TL 0.01 (exact TL) par value each. As of 31 March 2025 and 31 December 2024, the breakdown of issued share capital of the Company is as follows:

31 March 2025 31 December 2024
Amount Amount
Share Group (historical) Amount (%) (historical) Amount (%)
Stellantis Europe SPA D 189,280 37.856 189,280 37.856
Koç Holding A.Ş. A 188,115 37.623 188,115 37.623
Koç Topluluğu Companies ve Koç Family A 1,166 0.233 1,166 0.233
Other, including publicly traded shares E 121,439 24.288 121,439 24.288
Total 500,000 100.000 500,000 100.000

Half of the Board of Directors' ("BoD") members are required to be elected from the nominees of A group shareholders, while the remaining half is to be nominated by D group shareholders. The General Assembly is authorized for determining the number and election of BoD members. At least one nominee from both A and D type of shareholders have to fulfill the requirements of an independent member as prescribed by the CMB legislation.

The historical values and inflation adjustment effects of the following equity accounts under the Company's balance sheet, in accordance with IFRS and Tax Law financial statements, as of March 31, 2025, are as follows:

Inflation Indexed
31 March 2025 (IFRS) Historical Value adjustment effect value
Capital 500,000 21,479,462 21,979,462
Restricted reserves appropriated from profit 2,608,081 3,531,469 6,139,550

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 13 SHAREHOLDER'S EQUITY (cont'd)

Share capital/adjustments to share capital and equity investments (cont'd)

Inflation Indexed
31 March 2025 (TAS) Historical Value adjustment effect value
Capital 500,000 15,621,312 16,121,312
Restricted reserves appropriated from profit 2,608,081 3,777,458 6,385,539

NOTE 14 - SALES AND COST OF SALES

a) Net sales

1 January - 1 January -
31 March 2025 31 March 2024
Domestic sales 19,174,787 32,851,791
Foreign sales 4,066,080 11,323,151
Other 963,175 2,310,056
Total 24,204,042 46,484,998

The amount of sales discounts is TL 2,057,825 (31 March 2024: TL 2,805,175).

b) Production and sales quantities

Production Sales
March 2025 March 2024 March 2025 March 2024
Manufactured vehicles
Egea 11,352 25,300 11,118 22,624
K0 Scudo 8,358 - 8,046 -
Egea Hatchback 6,945 11,229 6,821 10,084
Egea Stationwagon - 1,737 - 1,733
MCV - 17,592 4 17,674
Yeni Doblo - - - 1
Total 26,655 55,858 25,989 52,116

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 14 - SALES AND COST OF SALES (cont'd)

b) Production and sales quantities (cont'd)

Import
March 2025 March 2024 March 2025 March 2024
Imported vehicles
Doblo 4,284 3,094 3,866 2,942
Ducato 2,120 1,698 2,056 1,928
Jeep 360 820 525 1,037
Alfa Romeo 237 157 259 271
Scudo 132 333 129 269
Fiat 600 75 2 2 2
Transit 6 - 6 -
Ferrari 4 8 4 7
Maserati 1 105 1 1 7 1
Fiat Topolino - 132 6 8 4 5
Ulysse - 263 1 194
Panda Futura - 91 - 7 1
Fiat 500 - 47 7 8 106
Total 7,219 6,750 7,005 6,943

c) Cost of sales

1 January - 1 January -
31 March 2025 31 March 2024
Direct material expenses (12,192,519) (25,971,697)
Depreciation and amortization expense (1,409,737) (1,645,326)
Direct labor expense (354,851) (606,180)
Other production expenses (791,764) (1,000,376)
Total cost of production (14,748,871) (29,223,579)
Change in work-in-process (6,558,717) (1,941,589)
Change in goods (1,874,546) 1,755,431
Cost of merchandise sold 6,905 (9,981,100)
Cost of other sales (111) (68)
Total (23,175,340) (39,390,905)

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 15 - RESEARCH AND DEVELOPMENT EXPENSES, MARKETING EXPENSES, GENERAL ADMINISTRATIVE EXPENSES

1 January - 1 January -
31 March 2025 31 March 2024
Marketing expenses (1,174,527) (1,522,856)
General administrative expenses (889,338) (1,182,619)
Research and development expenses (394,622) (579,464)

Total (2,458,487) (3,284,939) a) Marketing Expenses

1 January - 1 January -
31 March 2025 31 March 2024
Warranty expenses (Note 11) (447,803) (578,285)
Transportation and insurance expenses (306,727) (441,089)
Personnel expenses (247,073) (280,658)
Advertisement expenses (74,800) (89,353)
Depreciation and amortization expenses (10,410) (13,404)
Travel expenses (9,436) (9,813)
Other (78,278) (110,254)
Total (1,174,527) (1,522,856)

b) General Administrative Expenses

1 January - 1 January -
31 March 2025 31 March 2024
Personnel expenses (364,242) (474,383)
Depreciation and amortization expenses (226,964) (327,649)
Outsourced expenses (69,837) (80,477)
Maintenance and repair expenses (31,205) (89,129)
Insurance expenses (31,466) (52,243)
Taxes, duties and charges (20,589) (29,527)
Travel expenses (7,807) (11,460)
Other (137,228) (117,751)
Total (889,338) (1,182,619)

c) Research and development expenses

1 January - 1 January -
31 March 2025 31 March 2024
Personnel expenses (303,233) (391,552)
Outsourced R&D expenses (29,077) (86,476)
Depreciation and amortization expenses (11,700) (26,295)
Prototype Expenses (9,706) (7,304)
Transport and travel expenses (4,178) (13,947)
Energy expenses (2,387) (4,009)
Other (34,341) (49,881)
Total (394,622) (579,464)

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 16 - OTHER INCOME AND EXPENSES FROM MAIN OPERATIONS

1 January - 1 January -
31 March 2025 31 March 2024
Foreign exchange income from operating activities 1,919,709 734,366
Maturity difference income from operating activities 583,540 1,523,940
Other 24,939 274,486
Total 2,528,188 2,532,792
1 January - 1 January -
31 March 2025 31 March 2024
Foreign exchange expenses from operating activities (1,834,694) (1,294,841)
Maturity difference expenses from operating activities (177,924) (673,378)
Other (430,455) (264,674)
Total (2,443,073) (2,232,893)

NOTE 17 - FINANCE INCOME/EXPENSES

1 January - 1 January -
31 March 2025 31 March 2024
Foreign exchange income 971,141 1,371,628
Interest income 1,843,335 2,199,077
Total finance income 2,814,476 3,570,705
1 January - 1 January -
31 March 2025 31 March 2024
Foreign exchange expenses (864,062) (1,211,357)
Interest expense (138,941) (24,555)
Other (604) (1,076)
Total finance expenses (1,003,607) (1,236,988)
Finance income, net 1,810,869 2,333,717

NOTE 18 - TAX ASSETS AND LIABILITIES

Current tax expense and deferred tax

.

Tax expense includes current tax expense and deferred tax expense. Tax is included in the income statement, provided that it is not directly related to a transaction accounted for under equity. Otherwise, the tax is accounted for under the equity, together with the related transaction.

Current tax expense is calculated by taking into account the tax legislation, in force as of the financial statement date, in respective countries where the investments of the subsidiaries and investments accounted for by the equity method are active. According to Turkish tax legislation, all legal or business centers and institutions in Turkey, are subject to Corporate Income Tax.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 18 - TAX ASSETS AND LIABILITIES (cont'd)

In the Turkish taxation system, financial losses may be offset against taxable profits for up to next five years while may not be offset (retrospectively) from previous years' earnings

In addition, to be deducted from the corporate tax, a provisional tax of 25% is paid over the tax bases declared in the interim periods during the year in 2025 (31 December 2024: 25%).

As of 31 March 2025 and 31 December 2024, tax provision has been made in accordance with the applicable tax legislation.

The Company recognizes deferred tax based upon temporary differences arising between its financial statements and its statutory tax financial statements by using liability method. In the calculation of deferred tax, the tax rates valid as of the date of the statement of financial position are used in accordance with the current tax legislation.

As of 31 March 2025, a tax rate of 25% (31 December 2024: 25%) has been used in the deferred tax calculation.

While deferred tax liability is calculated for all taxable temporary differences, deferred tax assets consisting of deductible temporary differences are calculated provided that it is highly probable to benefit from these differences by generating taxable profit in the future.

Provided that they are subject to the tax legislation of the same country and there is a legally enforceable right to set off current tax assets from current tax liabilities, deferred tax assets and liabilities are mutually offset.

Tax assets and liabilities

Corporate tax

The Company and its subsidiaries established in Turkey and other countries in the scope of consolidation, associates, and joint ventures are subject to the tax legislation and practices in force in the countries they are operating.

The corporate tax rate in Turkey is 25%. (However, in accordance with the articles added to the Corporate Tax Law, the corporate tax rate of 20% has been applied as 25% for corporate earnings for the taxation period of 2024). The corporate tax rate is applied to the net corporate income calculated as a result of adding nondeductible expenses in accordance with the tax laws to the trade income of the corporations and deducting the exceptions and deductions in the tax laws. Corporate tax is declared until the evening of the thirtieth day of the fourth month following the end of the relevant year and is paid in a single installment until the end of the relevant month.

Companies calculate a provisional tax of 25% on their quarterly financial profits and declare it by the 17th day of the second month following that period and pay it by the evening of the seventeenth day. The temporary tax paid during the year belongs to that year and is deducted from the corporate tax to be calculated over the corporate tax return to be submitted in the following year. If the amount of temporary tax paid remains despite the deduction, this amount can be refunded in cash or set off against any other financial liabilities to the government.

Corporate tax losses can be carried forward for a maximum period of 5 years following the year in which the losses were incurred. The tax authorities can inspect tax returns and the related accounting records for a retrospective maximum period of five years.

10% withholding applies to dividends distributed by resident real persons, those who are not liable to income and corporation tax, non-resident real persons, non-resident corporations and non-resident corporations exempted from income and corporation tax. Dividend distribution by resident corporations to resident corporations is not subject to a withholding tax. Furthermore, in the event the profit is not distributed or included in capital, no withholding tax shall be applicable.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 18 - TAX ASSETS AND LIABILITIES (cont'd)

Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, tax liabilities, as reflected in these consolidated financial statements, have been calculated on a separate-entity basis. As of 31 March 2025 and 31 December 2024, taxes payable are netted off for each Subsidiary and classified separately in the consolidated financial statements.

The breakdown of the tax expense reflected in the consolidated statement of profit or loss for the periods ending 31 March 2025 and 2024 is presented below:

1 January - 1 January -
31 March 2025 31 March 2024
Current tax expense (117,102) (1,768,926)
Deferred tax income 165,096 1,566,179
47,994 (202,747)

b) Deferred tax assets and liabilities

As of 31 March 2025 and 31 December 2024, temporary differences subject to deferred tax and the distribution of deferred tax assets calculated using the effective tax rates enacted as of the balance sheet date are summarized below:

Cumulative temporary differences Deferred tax asset/(liability)
31 March 2025 31 December 2024 31 March 2025 31 December 2024
Discounted corporate tax (*) 10,574,204 8,142,263 4,781,062 3,953,097
Provision for employment termination
benefits and unused vacation
1,192,920 1,249,960 298,230 312,490
Liabilities arising from customer service 269,579 267,076 80,874 80,122
Warranty expense provision 2,329,064 2,460,860 582,257 615,215
Depreciable assets (3,829,659) (4,271,781) (957,415) (1,067,946)
Inventories (332,613) (513,294) (83,153) (128,323)
Land and investment properties 328,067 361,079 82,017 90,270
Other (1,601,312) 480,583 (395,025) 120,145
Deferred tax asset, net 8,930,250 8,176,746 4,388,847 3,975,070

(*) As a result of its fixed asset investments, the Group uses different reduced tax rates in proportion to different rates of investment amounts.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 18 - TAX ASSETS AND LIABILITIES (cont'd)

The movement of the deferred tax asset balance during the period is as follows:

1 January - 1 January -
31 March 2025 31 March 2024
Deferred tax asset as of 1 January 3,975,070 2,748,538
Deferred tax income 165,096 1,566,179
Related to other comprehensive income statement 248,681 (229,953)
Remeasurement gains/(losses) (8,719) (118,390)
on defined benefit plans
Cash flow hedge losses 257,400 (111,563)
Total 4,388,847 4,084,764

(*) Related amount which is accounted under equity in connection with the tax effect of exchange losses subject to allowance from tax base in statutory records and reflected in the deferred tax charge.

The analysis of tax income reflected in the statement of profit or loss as of 31 March 2025 and 2024 is presented below:

1 January - 1 January -
31 March 2025 31 March 2024
Profit before tax (188,448) 4,077,963
Tax expense based on effective tax (25%) 47,112 (1,019,491)
Non-deductible expenses (2,337) (30,086)
Discount provided from R&D expenses
made during the period
106,313 141,039
Effect of reduced tax rate 136,241 867,469
Investment incentives utilised and earned, net 827,965 1,890,245
Other (176,515) (1,047,200)
Monetary (loss)/gain (890,785) (1,004,723)
47,994 (202,747)

NOTE 19 - EARNINGS PER SHARE

Earnings per share are determined by dividing net income by the weighted average number of shares that have been outstanding during the related period concerned. In 2025 and 2024, the weighted average number of shares outstanding is 50,000,000,000 and as of 31 March 2025 and 2024 earnings per share is Kr -0.28 and Kr 7.75 respectively.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 20 - RELATED PARTY DISCLOSURES

Balances with related parties

Deposit and financial loan balances
with related parties 31 March 2025 31 December 2024
Yapı ve Kredi Bankası A.Ş. (deposit) (1) 4,091,035 2,005,781
Yapı ve Kredi Bankası A.Ş. (financial loan) (1) (1,458,424) (1,415,349)
Total 2,632,611 590,432
Trade receivables from related parties 31 March 2025 31 December 2024
Otokoç Otomotiv Tic. ve San. A.Ş. (1) 3,111,348 4,362,373
Stellantis Europe SPA (2) 5,302,031 6,716,220
Other (1) 2,439,726 2,312,906
Less: unearned finance income from forward sales (39,981) (67,831)
Total 10,813,124 13,323,668
Trade payables to related parties 31 March 2025 31 December 2024
Stellantis Europe SPA (2) 8,002,114 3,356,171
Other (1) 347,807 934,286
Rediscount receivables from related parties (37,989) (41,812)
8,311,932 4,248,645

Transactions with related parties

Sales
1 January - 1 January -
31 March 2025 31 March 2024
Otokoç Otomotiv Tic. ve San. A.Ş. (1) 5,996,669 10,948,259
Stellantis Europe SPA (2) 1,794,261 9,554,781
Stellantis Auto SAS (1) 1,983,725 11,879
Opel Automobile GMBH (1) 695,477 -
Stellantis Otomotiv Pazarlama A.Ş (1) 616,145 7,679
Other (1) 38,386 128,134
11,124,663 20,650,732

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 20 - RELATED PARTY DISCLOSURES (cont'd)

Transactions with related parties (cont'd)

Domestic material and service purchases:

1 January - 1 January -
31 March 2025 31 March 2024
Otokoç Otomotiv Tic. ve San. A.Ş. (1) 304,178 303,831
Zer Merkezi Hizmetler ve Ticaret A.Ş. (1) 300,972 477,690
Ram Dış Ticaret A.Ş. (1) 109,532 611,310
Opet Fuchs Madeni Yağlar Tic. A.Ş. (1) 41,734 64,198
Koç Holding A.Ş. (2)(*) 40,628 38,572
Koç Sistem Bilgi ve İletişim Hizmetleri A.Ş. (1) 37,940 44,058
Plastiform Plastik San. Tic. A.Ş. (1) 29,264 87,156
Opet Petrolcülük A.Ş (1) 19,093 30,148
Sistemi Comandi Meccanici Otomotiv San. Tic. A.Ş. (1) 17,554 60,749
Ingage Dijital Pazarlama Hizmetleri (1) 16,416 13,980
Setur Servis Turistik A.Ş.(1) 9,357 13,522
Ram Sigorta Aracılık Hizmet A.Ş. (1) (**) 7,894 10,714
Tanı Pazarlama ve İletişim A.Ş (1) 6,904 4,831
Diğer (1) 16,888 15,059
Toplam 958,354 1,775,818

(1) Joint Ventures represent the shareholders of these companies and their related parties, which are subsidiaries, joint ventures or associates.

(2) Represents the joint ventures.

(*) It includes the service fee invoiced to the Group as a result of the distribution of the expenses, including personnel and senior management expenses, incurred by Koç Holding A.Ş. in relation to the companies to which services are provided, in return for the services provided to the companies within Koç Holding A.Ş. in areas such as finance, law, planning, tax and senior management, within the framework of the "11- Intragroup Services" regulation of the General Communiqué Serial No.1 on Disguised Profit Distribution through Transfer Pricing.

(**) It includes premiums paid and accrued in accordance with the policies signed between Ram Sigorta Aracılık Hizmetleri A.Ş., which operates as an insurance agency, and insurance companies that are not related parties.

Foreign trade good. material and service purchase:

1 January -
31 March 2025
1 January -
31 March 2024
Stellantis Europe SPA (2) 10,094,108 9,554,781
Stellantis Auto SAS (1) 1,245,925 -
Other (1) 22,476 -
11,362,509 9,554,781

Interest income from related parties for the three-month period ended 31 March 2025 is TL 65,096 (31 December 2024: TL 924,279).

Salaries and similar benefits paid to the top management consisting of (25 persons) (31 March 2024: 28 persons) for the three-month period of 2025 is TL 39,239 (31 March 2024: TL 71,495)

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS

Financial risk management objectives and policies

The Group's principal financial instruments are cash and cash equivalents and financial liabilities. The main purpose of these financial instruments is to raise financing for the Group's operations. The Group has various other financial instruments such as trade payables and trade receivables. which arise directly from its operations. The main risks arising from Group's financial instruments are interest rate risk, liquidity risk, currency risk and credit risk. The Group's management reviews and develops policies for managing each of these risks which are summarized below.

Credit risk

Credit risk is the risk that the other party will incur a financial loss as a result of the failure of the parties to fulfill their obligations with respect to a financial instrument. The Group attempts to control credit risk by monitoring credit exposures. limiting transactions with specific counterparties. and continually assessing the creditworthiness of the counterparties. It is the Group policy that all customers who wish to trade on credit terms are subject to credit screening procedures and the Group also obtains collaterals from customers when appropriate. In addition, the Group's doubtful loan / receivable risk is minimized by continuously reviewing the receivables. Trade receivables are evaluated by the Group management based on past experiences and the current economic situation and are presented net in the balance sheet after an appropriate amount of allowance for doubtful receivables (Note 5).

The amounts stated in the balance sheets reflects the maximum risk exposure of the Group.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

Types of credit exposed by types of financial instruments;

31 March 2025 Trade Receivables Other Receivables Cash and Cash
Equivalents
Financial
investments
Receivables from
financial sector
activities
Related Party Other Other
Maximum exposure to credit risk as of reporting date ( A + B + C + D + E) (1)
- The portion of the maximum risk secured by collateral, etc. ( - ) (2)
10,813,124
29,950
10,043,211
6,898,499
23,495
-
26,525,843
-
79,643
-
18,094,138
18,094,138
10,406,692 9,871,858 23,495 26,525,843 79,643 17,525,190
A. Net book value of financial assets that are not overdue or impaired
a- The portion of the maximum risk secured by collateral, etc. ( - )
- General loan provisions
29,950
-
6,897,870
-
-
-
-
-
-
-
17,525,190
(209,429)
Not past due or not impaired (gross carrying amount) - - - - - -
B. Carrying amount of financial assets that are renegotiated, otherwise considered
overdue or impaired
- - - - - -
b- The portion of the maximum risk secured by collateral, etc. ( - ) - - - - - -
C. Net book value of overdue but not impaired assets 406,432 169,713 - - - 303,253
c-The portion of the maximum risk secured by collateral, etc. ( - ) - 629 - - - (300,220)
D. Net book values of impaired assets - 1,640 - - - 265,695
- Past due (gross book value) - 17,758 - - - 432,608
- Impairment (-) - (16,118) - - - (166,913)
- Secured portion of the net book value by collateral, etc. - - - - - -
- Not past due (gross amount) - - - - - -
- Impairment (-) - - - - - -
- Secured portion of the net book value by collateral, etc. - - - - - 240,203
E. Off-balance sheet items that include credit risk - - - - - -

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

31 December 2024 Trade Receivables Other Receivables Cash and Cash
Equivalents
Financial
investments
Receivables from
financial sector
activities
Related Party Other Other
Maximum exposure to credit risk as of reporting date ( A + B + C + D + E) (1)
- The portion of the maximum risk secured by collateral, etc. ( - ) (2)
13,323,668
32,964
9,663,032
5,891,491
2,749
-
21,699,777
-
89,365
-
18,580,466
18,580,466
12,144,137 9,481,887 2,749 21,699,777 89,365 17,988,861
A. Net book value of financial assets that are not overdue or impaired
a- The portion of the maximum risk secured by collateral, etc. ( - )
- General loan provisions
32,964 5,891,350 - - - 17,988,861
(166,284)
Not past due or not impaired (gross carrying amount) - - - - - -
B. Carrying amount of financial assets that are renegotiated, otherwise considered
overdue or impaired
b- The portion of the maximum risk secured by collateral, etc. ( - )
- - - - - -
C. Net book value of overdue but not impaired assets 1,179,531 179,340 - - - 356,174
c-The portion of the maximum risk secured by collateral, etc. ( - ) - 141 - - - (352,612)
D. Net book values of impaired assets - 1,805 - - - 235,431
- Past due (gross book value) - 19,545 - - - 411,727
- Impairment (-) - (17,740) - - - (176,297)
- Secured portion of the net book value by collateral, etc. - - - - - -
- Not past due (gross amount) - - - - - -
- Impairment (-) - - - - - -
- Secured portion of the net book value by collateral, etc. - - - - - 12,114
E. Off-balance sheet items that include credit risk - - - - - -

(1) Guarantees received and factors increasing the loan reliability are not considered when determining this amount

(2) Guarantees consist of guarantee notes. guarantee checks. mortgages and car pledges received from customers.

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

Aging analysis of trade receivables

Aging of the Group's receivables which are overdue but not impaired is as follows:

31 Mart 2025
Vadesi üzerinden 1-30 gün geçmiş 359,648
Vadesi üzerinden 1-3 ay geçmiş 229,982
Vadesi üzerinden 3-12 ay geçmiş 121,503
Vadesi üzerinden 1-5 yıl geçmiş 168,265
879,398
31 Mart 2024
Vadesi üzerinden 1-30 gün geçmiş 1,409,713
Vadesi üzerinden 1-3 ay geçmiş 224,089
Vadesi üzerinden 3-12 ay geçmiş 217,536
Vadesi üzerinden 1-5 yıl geçmiş 4,538
1,855,876

Amount secured with guarantees

As of 31 March 2025 TL 562,833 of total past due receivables of the Group is due from the Group's related party, Stellantis Europe SPA (31 December 2024: TL 385,091). As of 31 March 2025, the Group's payables to Stellantis Europe SPA amount to TL 8,002,114 (31 December 2024: TL 3,356,171).

Foreign currency risk

The Group is exposed to foreign exchange risk arising from the ownership of foreign currency denominated assets and liabilities with sales or purchase commitments. The policy of the Group is to compare every foreign currency type for the probable sales or purchases in the future.

As explained in detail in Note 4, according to the manufacturing agreements signed by the Group, the repayment obligations related to loans obtained for Egea, Doblo, Mini Cargo are guaranteed by Stellantis Group through future purchases. Therefore, the Stellantis Group has assumed the risk of fluctuations in foreign exchange rates and interest rates that may arise from the loan used for the production of the vehicles.

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of

31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

31 March 2025 TL equivalent
(functional
currency)
USD
('000)
EUR
('000)
Other
('000)
1 Trade Receivables 5,671,076 2,232 137,261 -
2a. Monetary Financial Assets (including cash, bank accounts) 8,805,672 7 216,339 -
2b. Non-Monetary Financial Assets 3,360,471 - 80,615 -
3 Other 1,666 - 4
1
-
4 Current assets (1+2+3) 17,838,885 2,239 434,256 -
5 Trade Receivables - - - -
6a. Monetary Financial Assets - - - -
6b. Non-Monetary Financial Assets 1,455,864 - 34,925 -
7 Other 56,983 - 1,400 -
8 Non-current assets (5+6+7) 1,512,847 - 36,325 -
9 Total assets (4+8) 19,351,732 2,239 470,581 -
10. Trade Payables (10,161,871) (1,610) (247,725) (3,518)
11. Financial Liabilities (1,935,421) - (47,551) -
12a. Monetary Other Liabilities - - - -
12b. Non-Monetary Other Liabilities - - - -
13. Current liabilities (10+11+12) (12,097,292) (1,610) (295,276) (3,518)
14. Trade Payables - - - -
15. Financial Liabilities (*) (9,862,011) - (242,299) -
16a. Monetary Other Liabilities - - - -
16b. Non-Monetary Other Liabilities - - - -
17. Non-current liabilities (14+15+16) (9,862,011) - (242,299) -
18. Total liabilities (13+17) (21,959,303) (1,610) (537,575) (3,518)
19. Net Asset/ (Liability) Position of Off-Balance Sheet
Derivative Instruments (19a-19b) 11,797,446 - 289,850 -
19a. Hedged portion of assets amount - - - -
19b. Hedged portion of liabilities amount (11,797,446) - (289,850) -
20. Net foreign currencies assets / (liability)
position (9+18+19) 9,189,875 629 222,856 (3,518)
21. Monetary Items Net Foreign Currency
Asset/Liability Position
(1+2a+3+5+6a+10+11+12a+14+15+16a) (7,480,889) 629 (183,934) (3,518)
22. Total fair value of financial instruments
used for foreign currency hedges - - - -
23. Export 4,663,076 - 118,940 7,988
24. Import 13,806,784 1,576 351,206 734,809

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

31 December 2024 TL equivalent
(functional
currency)
USD
('000)
EUR
('000)
Other
('000)
1 . Trade Receivables 9,022,444 1,994 221,194 -
2a. Monetary Financial Assets (including cash, bank accounts) 6,850,728 9 169,394 -
2b. Non-Monetary Financial Assets 1,663,818 - 35,844 8
3 . Other 317,371 - 7,848 -
4 . Current assets (1+2+3) 17,854,361 2,003 434,280 -
5 . Trade Receivables - - - 8
6a. Monetary Financial Assets - - - -
6b. Non-Monetary Financial Assets 1,944,972 - 41,901 -
7 . Other - - - -
8 . Non-current assets (5+6+7) 1,944,972 - 41,901 -
9 . Total assets (4+8) 19,799,333 2,003 476,181 -
10. Trade Payables (5,206,696) (1,676) (126,882) 8
11. Financial Liabilities (1,404,027) - (34,718) (1,987)
12a. Monetary Other Liabilities - - - -
12b. Non-Monetary Other Liabilities (232) - (5) -
13. Current liabilities (10+11+12) (6,610,955) (1,676) (161,605) -
14. Trade Payables - - - (1,987)
15. Financial Liabilities (*) (10,107,166) - (249,928) -
16a. Monetary Other Liabilities - - - -
16b. Non-Monetary Other Liabilities - - - -
17. Non-current liabilities (14+15+16) (10,107,166) - (249,928) -
18. Total liabilities (13+17) (16,718,122) (1,676) (411,533) -
19. Net Asset/ (Liability) Position of Off-Balance Sheet
Derivative Instruments (19a-19b)
11,511,157 - 284,646
19a. Hedged portion of assets amount - - - -
19b. Hedged portion of liabilities amount (11,511,157) - (284,646) -
- - -
20. Net foreign currencies assets / (liability) -
-
position (9+18+19) 14,592,368 327 349,294 -
21. Monetary Items Net Foreign Currency
Asset/Liability Position
(1,979)
(1+2a+3+5+6a+10+11+12a+14+15+16a) - - -
22. Total fair value of financial instruments
used for foreign currency hedges
- - - -
23. Export - - - -
24. Import 20,131,287 4,212 518,088 76,501

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

The following table demonstrates the sensitivity to a possible change of 10% in the USD. EUR and other exchange rates in the Group's foreign currency denominated liabilities (excluding foreign currency denominated inventory and fixed asset purchase advances). with all other variables held constant. on the Group's income before tax as of 31 March 2025 and 31 December 2024;

Profit/loss Equity
Appreciation of Depreciation Appreciation of Depreciation
31 March 2025 foreign currency foreign currency foreign currency foreign currency
In case of a 10% appreciation
of USD against TL:
1- USD net asset/liability 2,375 (2,375) - -
2- Portion hedged against USD risk (-) - - - -
3- USD net effect (1 +2) 2,375 (2,375) - -
In case of a 10% appreciation
of EUR against TL:
4- EUR net asset/liability (748,646) 748,646 (1,201,468) 1,201,468
5- Portion hedged against EUR risk (-) 1,201,468 (1,201,468) - -
6- EUR net effect (4+5) 452,822 (452,822) (1,201,468) 1,201,468
In case of a 10% appreciation
of other foreign exchange rates against TL:
7- Other foreign currency net asset/liabilitt
8- Other foreign currency
(1,819) 1,819 - -
hedged portion (-) - - - -
9- Other Foreign Currency Assets net effect (7+8) (1,819) 1,819 - -
Total (3+6+9) 453,378 (453,378) (1,201,468) 1,201,468
Profit/loss Equity
31 December 2024 Appreciation of Depreciation
foreign currency foreign currency foreign currency foreign currency
Appreciation of Depreciation
In case of a 10% appreciation
of USD against TL:
1- USD net asset/liability
2- Portion hedged against USD risk (-)
1,268
-
(1,268)
-
-
-
-
-
3- USD net effect (1 +2) 1,268 (1,268) - -
In case of a 10% appreciation
of EUR against TL:
4- EUR net asset/liability
5- Portion hedged against EUR risk (-)
(52,964)
1,074,372
52,964
(1,074,372)
(1,074,372)
-
1,074,372
-
6- EUR net effect (4+5)
In case of a 10% appreciation
of other foreign exchange rates against TL:
1,021,408 (1,021,408) (1,074,372) 1,074,372
7- Other foreign currency net asset/liabilitt
8- Other foreign currency
hedged portion (-)
9- Other Foreign Currency Assets net effect (7+8)
(1,054)
-
(1,054)
1,054
-
1,054
-
-
-
-
-
-
Total (3+6+9) 1,021,622 (1,021,622) (1,074,372) 1,074,372

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

Interest risk

Interest rate risk arises from the impact of changes in interest rates on the financial statements. The Group is exposed to interest rate risk due to timing mismatches or differences of assets and liabilities that are due to be expired or re-priced in a given period. The Group manages this risk by applying risk management strategies by matching the dates of interest rate change of assets and liabilities.

As of 31 March 2025, there are no interest rate sensitive financial instruments in the balance sheet (None as of 31 December 2024).

Liquidity risk

Liquidity risk is the risk that a company will be unable to meet its funding requirements. Liquidity risk is reduced by balancing cash inflows and outflows with the support of loans provided by qualified credit institutions.

The breakdown of financial assets and liabilities according to their maturities is disclosed considering from balance sheet date to due date period. Financial assets and liabilities that have no certain due dates are classified in over one-year column.

31 March 2025

Book Total Contracted
Cash Outflows
Less than Between Between More than
Contractual maturities value (=I+II+III+IV) 3 months (I) 3-12 months (II) 1-5 years (III) 5 years (IV)
Non-derivative financial liabilities
Bank loans 26,916,468 33,877,134 3,266,049 9,370,021 17,000,333 4,240,731
Lease liabilities 37,318 38,822 1,640 31,448 5,734 -
Trade payables 18,147,990 18,241,922 18,223,550 18,372 - -
Debt securities issues 2,703,430 3,659,685 156,329 2,415,158 1,088,198 -
Employee benefit payables 930,382 930,382 930,382 -
-
-
Other payables 6,068,795 6,068,795 6,068,795 -
-
-
54,804,383 62,816,740 28,646,745 11,834,999 18,094,265 4,240,731
31 December 2024
Book Total Contracted
Cash Outflows
Less than Between Between More than
Contractual maturities value (=I+II+III+IV) 3 months (I) 3-12 months (II) 1-5 years (III) 5 years (IV)
Non-derivative financial liabilities
Bank loans 27,459,261 35,958,876 3,036,364 10,680,823 18,082,740 4,158,949
Lease liabilities 41,797 50,809 7,479 20,686 22,644 -
Trade payables 12,483,157 12,591,585 12,590,304 1,281 - -
Debt securities issues 3,207,509 4,384,250 870,780 2,225,118 1,288,352 -
Employee benefit payables 1,009,699 1,009,699 1,009,699 - - -
Other payables 105,086 105,086 105,086 - - -
44,306,509 54,100,305 17,619,712 12,927,908 19,393,736 4,158,949.00

Notes to the condensed consolidated interim financial statements for the interim period ended 31 March 2025 (Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 21- NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (cont'd)

Capital management policy

The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure and makes amendments to it, in light of changes in economic conditions.

The Group may adjust dividend payments to shareholders or return capital to shareholders in order to adjust and maintain its capital structure. As of 31 March 2025, there have been no changes in objectives, policies or processes.

31 March 2025 31 December 2024
Total financial debt 29,657,216 30,708,566
Cash and cash equivalents (-) (26,525,843) (21,699,777)
Net financial debt 3,131,373 9,008,789
Equity 44,954,843 51,841,340
Net financial debt/equity ratio %7 %17

NOT 22 SEGMENT REPORTING

1 January- 31 March 2025

Trading of
spare part and automobile
Consumer
financing
Total
Revenue 24,204,042 2,469,467 26,673,509
Gross profit 1,028,702 469,918 1,498,620
Operating expenses (-)
Other income from main operations
Other expenses from main operations (-)
(2,365,321)
2,524,702
(2,354,225)
(93,166)
3,486
(88,848)
(2,458,487)
2,528,188
(2,443,073)
Operating profit before finance expense (1,166,142) 291,390 (874,752)

1 January- 31 March 2024

Trading of
spare part and automobile
Consumer
financing
Total
Revenue 46,484,998 2,225,538 48,710,536
Gross profit 7,094,093 368,681 7,462,774
Operating expenses (-) (3,188,335) (96,604) (3,284,939)
Other income from main operations 2,532,628 164 2,532,792
Other expenses from main operations (-) (2,173,525) (59,368) (2,232,893)
Operating profit before finance expense 4,264,861 212,873 4,477,734

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 22 SEGMENT REPORTING (cont'd)

As of 31 March 2025, the distribution of assets and liabilities of consumer financing segment is followed by TL 15,128,907 in current asset, TL 5,042,964 in non-current asset, TL 10,720,496 in current liabilities and TL 7,758,528 in non-current liabilities as financial liabilities. (As of 31 March 2024 TL 15,671,136 in current asset, TL 5,991,832 in non-current asset and TL 9,988,181 in current liabilities, TL 10,380,895 in non-current liabilities as financial liabilities.

As of 31 March 2025, a significant portion of revenue consists of sales to related party's ratio to 45.96% (31 December 2024: 44.42%) (Note 20).

The Group management focuses on operating profit before financial expense in segment reporting, so the Group does not distribute financial income and expenses on a segment basis.

NOTE 23 EXPLANATIONS ON NET MONETARY POSITION GAINS / (LOSSES)

Non Monetary Items 31 March 2025
-------------------- ---------------
Statement of financial position items
Inventories 1,358,831
Prepaid expenses (ST) 21,646
Investment properties 23,644
Property, plant and equipment 1,686,343
Intangible assets (2,367)
Prepaid expenses (LT) 21,516
Deferred tax asset 347,950
Deferred income (26,033)
Capital adjustment differences (2,009,528)
Accumulated other comprehensive income or expenses not to be reclassified to profit or loss 88,964
Accumulated other comprehensive income or expenses to be reclassified to profit or loss 10,215
Prior years' profit (2,778,489)
Statement of profit or loss items
Revenue (495,122)
Revenue from finance sector operations (63,740)
Cost of sales (-) 426,594
Expenses from finance sector operations (-) 51,800
Marketing expenses (-) 24,900
General administrative expenses (-) 20,877
Research and development expenses (-) 9,700
Other income from operating activities (38,378)
Other expenses from operating activities (-) 35,136
Income from investing activities (2,354)
Finance income (52,754)
Finance expenses(-) 14,092
Tax expense for the period 1,795
Deferred tax income (10,955)
Net monetary position gains/(losses) (1,335,717)

Notes to the condensed consolidated interim financial statements

for the interim period ended 31 March 2025

(Amounts are expressed in thousands of TL based on the purchasing power of Turkish Lira ("TL") as of 31 March 2025, unless otherwise stated.)

NOTE 24 EVENTS AFTER THE REPORTING PERIOD

To purchase all of Stellantis Otomotiv Pazarlama A.Ş.'s (Stellantis Otomotiv) shares together with its operations and distribution rights of Stellantis brands (Peugeot, Citroen, Opel and DS Automobiles) in Türkiye; Following further analyses and evaluations, and subsequently the submission of new commitments to be effective as of the closing date of the transaction regarding investment plans, the composition of the board of directors, employee confidentiality policies and the dealership (distribution/sales) network, we were notified that the Competition Board conditionally approved the transaction.

Following the discussions between our company and Stellantis Group within the scope of these commitments, our board of directors resolved to invest up to 256 million Euros for the new light vehicle project, and negotiations regarding the agreement on project details and conditions (including production quantities, market forecasts and models to be produced) with the Stellantis Group are ongoing.

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