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VESTEL BEYAZ EŞYA SANAYİ VE TİCARET A.Ş.

Quarterly Report Apr 30, 2025

5975_rns_2025-04-30_6b35b2e8-47d6-4b51-9c15-0e701939361f.pdf

Quarterly Report

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CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 31 MARCH 2025

(ORIGINALLY ISSUED IN TURKISH)

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY - 31 MARCH 2025

CONTENTS PAGE

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 1-4
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 5-6
STATEMENTS OF CHANGES IN EQUITY 7
STATEMENTS OF CASH FLOWS 8-10

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY – 31 MARCH 2025

NOTE 1 COMPANY'S ORGANISATION AND NATURE OF OPERATIONS 11
NOTE 2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 12-18
NOTE 3 SEGMENT REPORTING 19
NOTE 4 CASH AND CASH EQUIVALENTS 20
NOTE 5 FINANCIAL LIABILITIES 21-23
NOTE 6 RELATED PARTY DISCLOSURES 24-27
NOTE 7 TRADE RECEIVABLES AND PAYABLES 28
NOTE 8 OTHER RECEIVABLES AND PAYABLES 29
NOTE 9 INVENTORIES 30
NOTE 10 PREPAID EXPENSES 30
NOTE 11 PROPERTY, PLANT AND EQUIPMENT 31-32
NOTE 12 RIGHT OF USE ASSETS 33
NOTE 13 INTANGIBLE ASSETS 34
NOTE 14 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 35-36
NOTE 15 COMMITMENTS 37
NOTE 16 EMPLOYEE BENEFITS 37-39
NOTE 17 OTHER ASSETS AND LIABILITIES 39
NOTE 18 CAPITAL, RESERVES AND OTHER EQUITY ITEMS 40-42
NOTE 19 SALES 42
NOTE 20 OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES 42-43
NOTE 21 FINANCIAL INCOME AND FINANCIAL EXPENSE 43
NOTE 22 MONETARY GAIN/LOSS ………………………………………………………………………………………… 44
NOTE 23 TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 44-49
NOTE 24 LOSSES PER SHARE 49
NOTE 25 DERIVATIVE INSTRUMENTS 49
NOTE 26 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 49-53
NOTE 27 FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) 53-54
NOTE 28 OTHER FINANCIAL LIABILITIES 54
NOTE 29 SUBSEQUENT EVENT 55

CONDENSED INTERIM BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

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

Unaudited Audited
Notes 31 March 2025 31 December 2024
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents 4 587.421 1.202.038
Financial Assets 24.331 26.780
Trade Receivables 12.655.857 16.013.961
Trade Receivables Due from Related Parties 6 11.941.934 15.437.635
Trade Receivables Due from Third Parties 7 713.923 576.326
Other Receivables 7.363.757 5.310.066
Other Receivables Due from Related Parties 6 6.251.249 4.194.032
Other Receivables Due from Third Parties 8 1.112.508 1.116.034
Derivative Financial Instruments 25 161.780 378.029
Inventories 9 11.720.744 10.846.205
Prepaid Expenses 1.294.697 679.271
Prepayments to Related Parties 6 640.621 395.291
Prepayments to Third Parties 10 654.076 283.980
Current Tax Assets 23 11.290 11.241
Other Current Assets 41.306 106.311
Other Current Assets Due from Third Parties 17 41.306 106.311
TOTAL CURRENT ASSETS 33.861.183 34.573.902
NON-CURRENT ASSETS
Other Receivables 11.767 14.089
Other Receivables Due from Third Parties 11.767 14.089
Property, Plant and Equipment 11 39.938.451 39.797.957
Right of Use Assets 12 1.027.140 793.165
Intangible Assets 13 2.790.053 2.658.589
Prepaid Expenses 880.952 936.003
Prepaid Expenses to Related Parties 6 472.665 506.118
Prepayments to Third Parties 10 408.287 429.885
TOTAL NON-CURRENT ASSETS 44.648.363 44.199.803
TOTAL ASSETS 78.509.546 78.773.705

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

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED INTERIM BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

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

Unaudited Audited
Notes 31 March 2025 31 December 2024
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 12.535.323 10.843.765
Short Term Borrowings from Related Parties 6.477 4.675
Lease Liabilities 5,6 6.477 4.675
Short Term Borrowings from Third Parties 12.528.846 10.839.090
Bank Loans 5 10.592.314 8.200.590
Lease Liabilities 5 181.979 4.727
Issued Debt Instruments 5 1.754.553 2.633.773
Current Portion of Long Term Borrowings 1.372.952 456.195
Current Portion of Long Term Borrowings from Third Parties 1.372.952 456.195
Bank Loans 5 436.743 456.195
Issued Debt Instruments 5 936.209 -
Other Financial Liabilities 69.993 70.977
Trade Payables 20.787.644 23.060.766
Trade Payables to Related Parties 6 1.407.268 1.969.771
Trade Payables to Third Parties 7 19.380.376 21.090.995
Payables Related to Employee Benefits 16 550.477 433.717
Other Payables - 103.648
Other Payables to Related Parties 6 - 103.648
Derivative Financial Liabilities 25 209.958 33.224
Deferred Revenue 316.219 88.706
Deferred Revenues from Related Parties 6 223.160 86.630
Deferred Revenue from Third Parties 8 93.059 2.076
Current Provisions 35.940 29.680
Other Current Provisions 14 35.940 29.680
Other Current Liabilities 216.455 209.905
Other Current Liabilities to Third Parties 17 216.455 209.905
TOTAL CURRENT LIABILITIES 36.094.961 35.330.583

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED INTERIM BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

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

Unaudited Audited
Notes 31 March 2025 31 December 2024
NON-CURRENT LIABILITIES
Long Term Borrowings 1.442.260 1.348.971
Long Term Borrowings from Related Parties 200.663 150.563
Lease Liabilities 5,6 200.663 150.563
Long Term Borrowings from Third Parties 1.241.597 1.198.408
Bank Loans 5 1.045.226 1.191.768
Lease Liabilities 5 196.371 6.640
Other Financial Liabilities 200.791 225.599
Trade Payables 138.977 135.318
Trade Payables to Third Parties 7 138.977 135.318
Non-current Provisions 985.263 1.019.163
Non-current Provisions for Employee Benefits 16 985.263 1.019.163
Deferred Tax Liabilities 23 3.633.481 3.452.404
Other Non-current Liabilities 3.400 11.324
Other Non-current Liabilities to Third Parties 3.400 11.324
TOTAL NON-CURRENT LIABILITIES 6.404.172 6.192.779
TOTAL LIABILITIES 42.499.133 41.523.362

CONDENSED INTERIM BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

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

Unaudited Audited
Notes 31 March 2025 31 December 2024
EQUITY
Equity Attributable to Owners of Parent 36.010.413 37.250.343
Issued Capital 18 1.600.000 1.600.000
Adjustments on Capital 18 10.844.163 10.844.163
Other Accumulated Comprehensive Income (Loss) that will not be
Reclassified to Profit or Loss 9.104.449 9.114.492
Gains (Losses) on Revaluation and Remeasurement 9.104.449 9.114.492
Increases on Revaluation of Property, Plant and Equipment 10.176.574 10.178.093
Losses on Remeasurement of Defined Benefit Plans (1.072.125) (1.063.601)
Other Accumulated Comprehensive Income (Loss) that will be Reclassified to
Profit or (Loss) (45.242) 172.155
Profit or (Losses) on Hedge (45.242) 172.155
Profit or (Losses) on Cash Flow Hedges (45.242) 172.155
Restricted Reserves 2.253.772 2.253.772
Legal Reserves 18 2.253.772 2.253.772
Prior Years' Profits 13.267.280 12.973.183
Current Period Net Profit or Loss (1.014.009) 292.578
TOTAL EQUITY 36.010.413 37.250.343
TOTAL LIABILITIES AND EQUITY 78.509.546 78.773.705

Financial statements for the period 1 January – 31 March 2025 were approved by the Board of Directors of Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. on 30 April 2025. General Assembly and specified regulatory bodies have the right to make amendments to statutory financial statements after issue.

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODS 1 JANUARY – 31 MARCH 2025 AND 2024

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

Unaudited Unaudited
1 January - 1 January -
31 March 31 March
Notes 2025 2024
PROFIT OR LOSS
Revenue 19 15.891.253 19.297.992
Cost of Sales 19 (14.643.253) (16.346.458)
GROSS PROFIT 1.248.000 2.951.534
General Administrative Expenses (345.094) (229.828)
Marketing Expenses (772.110) (879.538)
Research and Development Expense (240.965) (259.434)
Other Income from Operating Activities 20 1.082.107 976.478
Other Expenses from Operating Activities 20 (1.653.969) (1.910.684)
PROFIT/(LOSS) FROM OPERATING ACTIVITIES (682.031) 648.528
PROFIT/(LOSS) BEFORE FINANCING INCOME (682.031) 648.528
Finance Income 21 988.908 589.982
Finance Expense 21 (2.210.730) (1.764.029)
Monetary Gain 22 1.146.229 1.326.235
PROFIT/(LOSS) FROM CONTINUING OPERATIONS, BEFORE TAX (757.624) 800.716
Tax (Expense) Income, Continuing Operations (256.385) 50.851
Current Tax Expense 23 - (2.926)
Deferred Tax Income/(Loss) 23 (256.385) 53.777
PROFIT//LOSS) FOR THE PERIOD (1.014.009) 851.567
Earnings per 100 share with a Kr 1 of Par Value (TL) 24 (0,63) 0,53

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

VESTEL BEYAZ EŞYA SANAYİ VE TİCARET ANONİM ŞİRKETİ CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODS 1 JANUARY – 31 MARCH 2025 AND 2024

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

Unaudited Unaudited
1 January - 1 January -
31 March 31 March
2025 2024
PROFIT/(LOSS) FOR THE PERIOD OTHER COMPREHENSIVE INCOME (1.014.009) 851.567
Other Comprehensive Income that will
not be Reclassified to Profit or Loss (8.524) (6.433)
Gains (Losses) on Remeasurements of Defined Benefit Plans (11.366) (8.578)
Taxes Relating to Components of Other Comprehensive Income 2.842 2.145
Taxes Relating to Remeasurements of Defined Benefit Plans 2.842 2.145
Other Comprehensive Income that will
be Reclassified to Profit or Loss (217.397) 272.815
Other Comprehensive Income (Loss) Related with Cash Flow Hedges (289.863) 363.754
Taxes Relating to Components of Other Comprehensive Income 72.466 (90.939)
Taxes Relating to Cash Flow Hedges 72.466 (90.939)
OTHER COMPREHENSIVE INCOME/(LOSS) (225.921) 266.382
TOTAL COMPREHENSIVE INCOME/(LOSS) (1.239.930) 1.117.949

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

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE PERIODS 1 JANUARY – 31 MARCH 2025 AND 2024

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

Other
Increases
Accumulated
Other
(Decreases) on
Comprehensive
Accumulated
Revaluation of
Gains (Losses) on
Income That Will
Reserve Of
Comprehensive
Restricted
Equity
Property,
Remeasurement of
Inflation
Gains (Losses)
Not Be
Gains or
Income That Will
Reserves
Prior Years'
attributable to
Plant and
Defined Benefit
Cash Flow
Issued
Adjustments
Revaluations and
Reclassified To
Losses on
Be Reclassified
Appropriated
Profits or
Net Profit or
Retained
owners of
Equipment
Plans
Hedges
Capital
on Capital
Remeasurements
Profit Or Loss
Hedge
To Profit Or Loss
From Profits
Losses
Loss
Earnings
parent
Previous Period
1 January -31 March 2024
Beginning of Period
1.600.000 10.844.163 6.421.939
(920.945)
5.500.994
5.500.994 (296.175) (296.175)
(296.175)
1.904.214 7.247.033 7.507.498 14.754.531 34.307.727 34.307.727
-
-
(18.042)
-
(18.042)
(18.042)
-
-
-
-
7.525.540 (7.507.498)
18.042
-
Transfers
Total Comprehensive Income (Loss)
-
-
-
(6.433)
(6.433)
(6.433) 272.815 272.815
272.815
-
-
851.567
851.567
1.117.949
Profit for the period (Loss)
-
-
-
-
-
-
-
-
-
-
-
851.567
851.567
851.567
-
-
-
(6.433)
(6.433)
(6.433) 272.815 272.815
272.815
-
-
-
-
266.382
Other Comprehensive Income (Loss)
1.600.000 10.844.163 6.403.897
(927.378)
5.476.519
5.476.519 (23.360) (23.360)
(23.360)
1.904.214 14.772.573
851.567 15.624.140 35.425.676 35.425.676
End of Period
Current Period
1 January -31 March 2025
1.600.000 10.844.163 10.178.093
(1.063.601)
9.114.492
9.114.492 172.155 172.155
172.155
2.253.772 12.973.183
292.578 13.265.761 37.250.343 37.250.343
Beginning of Period
-
-
(1.519)
-
(1.519)
(1.519)
-
-
-
-
294.097 (292.578)
1.519
-
Transfers
-
-
-
(8.524)
(8.524)
(8.524) (217.397) (217.397)
(217.397)
-
-
(1.014.009) (1.014.009)
(1.239.930)
Total Comprehensive Income (Loss)
(1.014.009) (1.014.009)
Equity
-
1.117.949
851.567
266.382
-
(1.239.930)
-
-
Profit for the period (Loss)
- -
-
- - - - - - (1.014.009) (1.014.009)
Other Comprehensive Income (Loss)
-
-
-
(8.524)
(8.524)
(8.524) (217.397) (217.397)
(217.397)
-
-
-
-
(225.921)
(225.921)
1.600.000 10.844.163 10.176.574
(1.072.125)
9.104.449
9.104.449 (45.242) (45.242)
(45.242)
2.253.772 13.267.280 (1.014.009) 12.253.271
36.010.413
End of Period
36.010.413

CONDENSED INTERIM STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY- 31 MARCH 2025 AND 2024

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

Unaudited Unaudited
1 January - 1 January -
31 March 31 March
Notes 2025 2024
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES 519.207 1.702.964
Profit (Loss) for the Period (1.014.009) 851.567
Profit (Loss) from Continuing Operations (1.014.009) 851.567
Adjustments to Reconcile Profit 1.039.037 (45.151)
Adjustments for Depreciation and Amortisation Expense 11,12,13 810.805 951.214
Adjustments for Impairment Loss (Reversal of Impairment Loss) 50.186 1.696
Adjustments for Impairement Loss
(Reversal of Impairment Loss) of Receivables (4.792) (290)
Adjustments for Impairment Loss
(Reversal of Impairment Loss) of Inventories 9 54.978 1.986
Adjustments for Provisions 107.805 40.738
Adjustments for (Reversal of) Provisions Related with
Employee Benefits 101.545 39.183
Adjustments for (Reversal of) Lawsuit and/or
Penalty Provisions 14 6.260 (1.399)
Adjustments for (Reversal of) Other Provisions - 2.954
Adjustments for Interest (Income) Expenses 1.217.185 937.278
Adjustments for Interest Income 21 (328.968) (87.385)
Adjustments for Interest Expense 21 1.546.153 1.024.663
Adjustments for Unrealised Foreign
Exchange Losses (Gains) (174.516) (195.715)
Adjustments for Fair Value Losses (Gains) 103.120 (125.227)
Adjustments for Fair Value (Gains) Losses on
Derivative Financial Instruments 103.120 (125.227)
Adjustments for Tax (Income) Expenses 23 256.385 (50.850)
Adjustments for Losses (Gains) on Disposal of
Non-Current Assets (1.768) (152)
Adjustments for Losses (Gains) Arised from
Sale of Tangible Assets (1.768) (152)
Other Adjustments to Reconcile Profit (Loss) 4 2 4
Monetary Loss/Gain (1.330.167) (1.604.137)

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

CONDENSED INTERIM STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY- 31 MARCH 2025 AND 2024

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

Unaudited Unaudited
1 January - 1 January -
31 March 31 March
Notes 2025 2024
Changes in Working Capital 546.701 934.496
Adjustments for Decrease (Increase) in Trade Accounts Receivable 1.944.546 (63.217)
Decrease (Increase) in Trade Accounts Receivables from Related Parties 6 2.134.641 42.513
Decrease (Increase) in Trade Accounts Receivables from Third Parties 7 (190.095) (105.730)
Adjustments for Decrease (Increase) in Other Receivables Related with Operations (99.832) 15.365
Decrease (Increase) in Other Third Party Receivables Related with Operations 8 (99.832) 15.365
Adjustments for Decrease (Increase) in Inventories 9 (929.517) (1.776.975)
Decrease (Increase) in Prepaid Expenses 10 (693.902) (491.323)
Adjustments for Increase (Decrease) in Trade Accounts Payable (150.941) 3.074.248
Increase (Decrease) in Trade Accounts Payables to Related Parties 6 (391.654) 874.688
Increase (Decrease) in Trade Accounts Payables to Third Parties 240.713 2.199.560
Increase (Decrease) in Employee Benefit Liabilities 16 160.194 179.537
Increase (Decrease) in Deferred Revenues 241.317 (116.698)
Other Adjustments for Other Increase (Decrease) in Working Capital 74.836 113.559
Decrease (Increase) in Other Assets Related with Operations 17 55.522 103.796
Increase (Decrease) in Other Payables Related with Operations 17 19.314 9.763
Cash Flows from (used in) Operations 571.729 1.740.912
Payments Related with Provisions for Employee Benefits 16 (52.473) (67.125)
Income Taxes Refund (Paid) 23 (49) 29.177

CONDENSED INTERIM STATEMENTS OF CASH FLOWS FOR THE PERIODS 1 JANUARY- 31 MARCH 2025 AND 2024

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

Unaudited Unaudited
1 January - 1 January -
31 March 31 March
Notes 2025 2024
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (3.008.005) (2.397.407)
Proceeds from Sales of Property, Plant, Equipment and Intangible Assets 2.295 9.862
Proceeds from Sales of Property, Plant and Equipment 2.295 9.862
Purchase of Property, Plant, Equipment and Intangible Assets (1.046.847) (1.249.149)
Purchase of Property, Plant and Equipment 11 (823.527) (948.324)
Purchase of Intangible Assets 13 (223.320) (300.825)
Cash Advances and Loans Made to Other Parties (1.965.902) (1.157.007)
Cash Advances and Loans Made to Related Parties (1.947.769) (963.171)
Cash Advances and Loans Made to Third Parties (18.133) (193.836)
Other Cash Inflows (Outflows) 2.449 (1.113)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES 1.984.082 (175.378)
Proceeds from Borrowings 5 7.661.657 3.188.286
Proceeds from Loans 6.426.657 2.257.702
Proceeds from Other Financial Borrowings 1.235.000 930.584
Repayments of Borrowings 5 (4.450.098) (2.203.207)
Loan Repayments (3.450.098) (1.644.857)
Issued bonds repayments (1.000.000) (558.350)
Increase in Other Payables to Related Parties (103.648) (294.888)
Payments of Lease Liabilities (56.755) 76.032
Interest Paid (1.077.368) (952.910)
Interest Received 10.294 11.309
INFLATION EFFECT ON CASH AND CASH EQUIVALENTS (119.380) (155.356)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES (624.096) (1.025.177)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 9.481 3.586
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (614.615) (1.021.591)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 4 1.202.014 1.159.257
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 587.399 137.666

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

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

NOTE 1 – COMPANY'S ORGANISATION AND NATURE OF OPERATIONS

Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. (the "Company" or "Vestel Beyaz Eşya") was incorporated in 1997 under the Turkish Commercial Code and its head office is located at Levent 199, Büyükdere Caddesi No: 199, 34394 Şişli / İstanbul.

The Company started its operations in 1999 and produces refrigerators, room air conditioning units, washing machines, drying machines, cookers, dishwashers and water heaters. The Company's production facilities occupy 641 square meters of enclosed area located in Manisa Organized Industrial Zone on total area of 763 square meters.

The Company is a member of Vestel Group of Companies which are under the control of Zorlu Family. The Company performs its export sales and domestic sales via Vestel Ticaret A.Ş. which is also a member of Vestel Group of Companies.

The Company is registered to Capital Market Board and its shares have been quoted to Borsa Istanbul ("BİST") since 21 April 2006.

As of 31 March 2025, the number of personnel employed was 9.478 (31 December 2024: 9.628).

As of balance sheet dates, the shareholders of the Company and their percentage shareholdings were as follows:

Shareholding %
Vestel Elektronik Sanayi ve Ticaret A.Ş. 77,33
Other shareholders 22,67

100,00

As of 31 March 2025 Company have been quoted at the Borsa Istanbul 31,47% of its share capital (31 December 2024: 31,47%).

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of presentation

2.1.1 Statement of compliance

The accompanying financial statements are prepared in accordance with the Communiqué Serial II, No: 14.1, "Principals of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. According to the article 5 of the Communiqué, financial statements are prepared in accordance with Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS" / "TFRS") and its addendum and interpretations ("IFRIC") issued by the Public Oversight Accounting and Auditing Standards Authority ("POAASA") Turkish Accounting Standards Board.

Financial statements are presented in accordance with the formats determined in the "Announcement on TFRS Taxonomy" published by the POA on 3 July 2024 and in the Financial Statement Samples and User Guide published by the CMB.

The Company bases its accounting records and preparation of its legal financial statements on the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance of the Republic of Türkiye. The financial statements have been prepared in Turkish Lira on the basis of historical cost, except for land, buildings and land improvements from the tangible assets group shown at their fair value, and financial assets and liabilities shown at their fair value.

Financial statements have been prepared by reflecting the necessary corrections and classifications in order to ensure accurate presentation in accordance with TFRS, on the legal records prepared on the historical cost basis except for derivative instruments shown at their fair value and revaluations arising from fixed assets.

Financial reporting in high-inflation economies

The Company has prepared its financial statements for the year dated 31 December 2023 and ending on the same date, by applying TAS 29 "Financial Reporting in High Inflation Economies" Standard, based on the announcement made by the POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published. In accordance with the said standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date, and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for the purpose of comparison in the financial statements of the previous period.For this reason, the company has presented its financial statements as of 31 December 2024 and 31 March 2024 on the basis of purchasing power as of 31 March 2025.

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.1 Basis of presentation (Cont'd)

2.1.1 Statement of compliance (Cont'd)

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 shall comply with the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2023. It was decided to apply inflation accounting by applying.

Rearrangements made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index in Türkiye ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"). As of 31 March 2025, the indices and correction coefficients used in the correction of financial statements are as follows:

Three-Year
Correction Compound
Date Index Coeffection Inflation Rate
31 March 2025 2.954,69 1 %250
31 December 2024 2.684,55 1,1006 %291
31 March 2024 2.139,47 1,3810 %309

The main elements of the Company's adjustment for financial reporting purposes in high-inflation economies are as follows:

  • Current period financial statements prepared in TL are expressed in purchasing power at the balance sheet date, and amounts from previous reporting periods are also expressed by adjusting according to the purchasing power at the end of the reporting period.
  • Monetary assets and liabilities are not adjusted as they are currently expressed in current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed the recoverable amount or net realizable value, the provisions of TAS 36 and TAS 2 were applied, respectively.

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.1 Basis of presentation (Cont'd)

  • Non-monetary assets and liabilities and equity items that are not expressed in current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
  • All items included in the statement of comprehensive income, except for non-monetary items in the balance sheet that have an impact on the statement of comprehensive income, are indexed with coefficients calculated over the periods in which the income and expense accounts are first reflected in the financial statements.The effect of inflation on the Company's net monetary asset position in the current period is recorded in the net monetary position gains/(losses) account in the income statement (Note 22).

2.2 Comparative information and restatement of prior period financial statements

Financial statements of the Company have been prepared comparatively with the preceding financial period, in order to enable determination of trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to changes in presentation in the financial statements.

Comparative figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the currency in effect at the end of the reporting period. Information disclosed for previous periods is also expressed in the currency valid at the end of the reporting period.

Except for the changes mentioned in the paragraph below, consistent accounting policies have been applied in the financial statements for the periods presented and there are no significant changes in accounting policies and estimates in the current period.

In accordance with the "Implementation Guidance on Financial Reporting in Hyperinflationary Economies" published by POA, monetary position gains and losses on cash and cash equivalents are presented in the statement of cash flows, and in accordance with the 3rd approach in the implementation guidance, the effect of inflation on cash flows from operating, investing and financing activities is attributed to the relevant class of activity and the inflation effect on cash and cash equivalents is presented separately. In the 31 March 2024 Statement of Cash Flows, TL 661.710 has been reclassified between "Changes in Working Capital" and "Adjustments Related to Reconciliation of Net Profit for the Period" and the related reclassifications have been brought to 2025 purchasing power. There has been no change in "Cash Flows from Operating Activities".

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.3 Restatement and errors in the accounting estimates

Major changes in accounting policies are applied retrospectively and any major accounting errors that have been detected are corrected and the financial statements of the previous period are restated. Changes in accounting policies resulting from the initial implementation of a new standard, if any, are implemented retrospectively or prospectively in accordance with the transition provisions. 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.

2.4 Amendments in Türkiye Financial Reporting Standards

The accounting policies used in the preparation of financial statements for the accounting period ending 31 March 2025 are consistent with those used in the previous year, except for the new and amended Turkish Accounting Standards ("TAS")/TFRS and TAS/TFRS interpretations valid as of 1 January 2025, summarized below, has been implemented. The effects of these standards and interpretations on the financial position and performance of the Company are explained in the relevant paragraphs.

a) Standards, amendments, and interpretations applicable as of 31 March 2025:

Amendment to IAS 21 – Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.

b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025:

Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:

• clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.4 Amendments in Türkiye Financial Reporting Standards (Cont'd)

b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025 (Cont'd):

• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and

• make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).

Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards;
  • IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
  • IFRS 9 Financial Instruments;
  • IFRS 10 Consolidated Financial Statements; and
  • IAS 7 Statement of Cash Flows.

Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.4 Amendments in Türkiye Financial Reporting Standards (Cont'd)

b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025 (Cont'd):

IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

• the structure of the statement of profit or loss;

• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and

• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:

• it does not have public accountability; and

• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

2.5 Summary of significant accounting policies

Summary financial statements for the interim period ending on 31 March 2025 have been prepared in accordance with the TAS 34 standard for the preparation of interim financial statements.

The significant accounting policies used in preparing the summary financial statements are consistent with the accounting policies explained in detail in the financial statements dated 31 December 2024. Therefore, interim financial statements should be evaluated together with the financial statements for the year ending 31 December 2024.

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

NOTE 2 – BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Cont'd)

2.5 Summary of significant accounting policies (Cont'd):

The frequency of revaluations

The frequency of revaluations is determined to ensure that the carrying amounts of the revalued items of property, plant and equipment are not materially different from their fair values at the end of the reporting period.

The frequency of revaluations depends on the change in the fair value of the items of property, plant and equipment. Where the fair value of a revalued asset is considered to be materially different from its carrying amount, the revaluation is required to be repeated and this is done for the entire asset class in which the revalued asset is included as of the same date.

On the other hand, it is not considered necessary to repeat the revaluation of property, plant and equipment whose fair value changes are insignificant.

In this context, as a result of the assessments made by the Company management, it is assumed that the fair values of land, buildings and land improvements determined in the valuation studies performed as of 31 December 2024 will converge to their respective fair values as of 31 March 2025 after deducting current period depreciation and the CPI change in the related interim period.

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

NOTE 3 - SEGMENT REPORTING

Operating segments are identified on the same basis as financial information is reported internally to the Company's chief operating decision maker. The Company's Board of Directors has been identified as the Company's chief operating decision maker who is responsible for allocating resources between segments and assessing their performance. The Company management determines operating segments by reference to the reports reviewed by the Board of Directors to make strategic decisions.

The Management believes that the Company operates in a single industry sector as the risks and returns for the activities do not show any material difference because the scope of activity covers only the production of white goods and the production processes and classes of customers are similar. As a result, all information related to the industrial segment has been fully presented in the attached financial statements.

The Management has decided to use geographical segments for segment reporting considering the fact that risks and returns are affected by the differences in geographical regions.

Geographical segments

1 January - 1 January -
31 March 31 March
Segment revenue 2025 2024
Türkiye 4.756.427 7.394.220
Europe 7.162.544 8.062.712
Other 4.028.931 3.939.084
Gross segment sales 15.947.902 19.396.016
Discounts (-) (56.649) (98.024)
Net sales 15.891.253 19.297.992

The amount of export is TL 11.191.475 for the period ended 31 March 2025 (1 January-31 March 2024: TL 12.001.796). 82% of the export amount was realized in EUR, 13% in USD and 5% in other foreign currencies. Segment assets are not shown separately because a significant portion of the segment assets and the significant portion of the costs incurred to acquire the segment assets are incurred in Türkiye. (As of 31 March 2024, 88% of the export amount was realized in EUR, 9% in USD and 3% in other foreign currencies.)

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

NOTE 4 – CASH AND CASH EQUIVALENTS

31 March 2025 31 December 2024
Cash 2.411 2.480
Bank deposits
- Demand deposits 328.730 926.242
- Time deposits 256.258 273.292
587.399 1.202.014
Blocked deposits 22 24
Cash and cash equivalents 587.421 1.202.038

The effective interest rates for time deposits are as below:

31 March 2025 31 December 2024
TL 45,00% 45,00%

As of 31 March 2025 and 31 December 2024, the average maturity of the Group's time deposits is less than 3 months.

Based on the independent data with respect to the credit risk assessment of the banks, at which the Company has deposits, the credit quality of the banks is sufficient. The market values of cash and cash equivalents approximate carrying values, including accrued income at the respective balance sheet date.

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

NOTE 5 – FINANCIAL LIABILITIES

31 March 2025 31 December 2024
Short term financial liabilities
Short term bank loans 10.592.314 8.200.590
Short term portion of long term bank loans 436.743 456.195
Short term lease liabilities 188.456 9.402
Short term issued bonds 1.754.553 2.633.773
Short term portion of long term issued bonds 936.209 -
13.908.275 11.299.960
Long term financial liabilities
Long term bank loans 1.045.226 1.191.768
Long term lease liabilities 397.034 157.203
1.442.260 1.348.971

* The maturity date of the bond with the ISIN code TRFVEST82517, amounting to TL 350.000, with a maturity of 170 days, a single coupon payment, issued to qualified investors on 12 February 2025 is 1 August 2025 and the annual simple interest rate of the coupon has been determined as 43,5%.

* The maturity date of the bond with the ISIN code TRSVEST32614, amounting to TL 885.000, with a maturity of 399 days, every 3 months coupon payment, issued to qualified investors on 12 February 2025 is 18 March 2026 and the annual simple interest rate of the coupon has been determined as 44%.

* The maturity date of the bond with the ISIN code TRFVEST42511, amounting to TL 395.000, with a maturity of 175 days, a single coupon payment, issued to qualified investors on 1 November 2024 is 25 April 2025 and the annual simple interest rate of the coupon has been determined as 51%.

* The maturity date of the bond with the ISIN code TRFVEST62519, amounting to TL 800.000, with a maturity of 181 days, a single coupon payment, issued to qualified investors on 27 December 2024 is 26 June 2025 and the annual simple interest rate of the coupon has been determined as 51%.

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

NOTE 5 – FINANCIAL LIABILITIES (Cont'd)

Details of the Company's short term bank loans are given below:

31 March 2025 31 December 2024
Weighted
average of
Weighted
average of
effective Original effective Original
Currency interest rates currency TL Equivalent interest rates currency TL Equivalent
- USD 8,74% 19.277 729.320 8,59% 22.239 865.105
- EUR 8,60% 16.577 675.932 8,47% 16.303 660.366
- TL 35,87% 9.187.062 9.187.062 34,28% 6.675.119 6.675.119
10.592.314 8.200.590

Details of the Company's long term bank loans are given below:

31 March 2025 31 December 2024
Weighted
average of
Weighted
average of
effective Original effective Original
Currency interest rates currency TL Equivalent interest rates currency TL Equivalent
- TL 20,65% 436.743 436.743 20,65% 456.195 456.195
Short term portion 436.743 456.195
- TL 20,65% 1.045.226 1.045.226 20,65% 1.191.768 1.191.768
Long term portion 1.045.226 1.191.768
1.481.969 1.647.963

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

NOTE 5 – FINANCIAL LIABILITIES (Cont'd)

The redemption schedule of the Company's long term bank loans is given below:

Uzun vadeli finansal borçların ödeme planı 31 March 2025 31 December 2024
One to two years 313.768 353.469
Two to three years 227.988 256.698
Three to four years 166.937 188.250
Over five years 336.533 393.351
1.045.226 1.191.768

Fair value of short term bank borrowings are considered to approximate their carrying values due to immateriality of discounting. Fair values are determined using average effective annual interest rates.

Guarantees given for the bank loans obtained are disclosed in note 14.

As of 31 March 2025 and 2024, reconciliation of net financial debt is as below:

31 March 2025 31 March 2024
Net financial debt as of 1 January 11.446.916 6.133.221
Cash inflows from loans and issued bonds 7.661.657 3.188.286
Cash outflows from loan and bonds payments (4.450.098) (2.203.206)
Payments of lease liabilities (56.755) 76.032
Unrealized exchange 112.992 141.777
Accrued interest 367.314 93.034
Change in cash and cash equivalents 614.615 1.021.591
Monetary gain / (loss) (933.505) (996.259)
Net financial debt at the end of the period 14.763.136 7.454.476

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

NOTE 6 – RELATED PARTY DISCLOSURES

a) Short term trade receivables from related parties

31 March 2025 31 December 2024
Vestel Ticaret A.Ş. (1) 11.941.700 15.437.382
Other related parties 234 253
11.941.934 15.437.635

The receivables result from the Company's foreign and domestic sales performed via Vestel Ticaret A.Ş which is also a member of Vestel Group Companies.

b) Short term trade payables to related parties

31 March 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 466.561 1.478.550
Vestel Ticaret A.Ş. (1) 344.665 465.049
Vestel Holland B.V. (1) 464.532 3.984
Other related parties 153.291 35.255
1.429.049 1.982.838
Deferred finance income (-) (21.781) (13.067)
1.407.268 1.969.771

The short term payables to related parties consist of goods and service purchases.

c) Other short term receivables from related parties

31 March 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 6.251.249 4.194.032
6.251.249 4.194.032

As of 31 March 2025, the Company's interest rate of other short-term receivables in TL %47,5 USD 9% and in EUR 7,5% ( As of 31 December 2024 the Company's interest rate of other short-term receivables in USD 9% and in EUR 7,5% ).

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

NOTE 6 – RELATED PARTY DISCLOSURES (Cont'd)

d) Other short term liabilities to related parties

31 March 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) - 103.648
- 103.648

As of 31 December 2024, Company's interest rate of short-term other payables denominated in TL is 50%

e) Lease liabilities to related parties

31 March 2025 31 December 2024
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 207.140 155.238
207.140 155.238

As of 31 March 2025, the Company's short term lease liabilities to Vestel Elektronik Sanayi ve Ticaret A.Ş. are amounted to TL 6.477 and long-term lease liabilities are amounted to TL 200.663 (31 December 2024: short term TL 4.675 and long term TL 150.563)

f) Deferred income from related parties

31 March 2025 31 December 2024
Vestel Ticaret A.Ş. (1) 223.160 86.630
223.160 86.630

g) Short-term prepaid expenses to related parties

31 March 2025 31 December 2024
Zorlu Yenilenebilir Enerji A.Ş. (3) 209.240 307.783
Vestel Holland B.V. (1) 425.913 83.220
Other related parties 5.468 4.288
640.621 395.291

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

NOTE 6 – RELATED PARTY DISCLOSURES (Cont'd)

h) Long-term prepaid expenses to related parties

31 March 2025 31 December 2024
Zorlu Yenilenebilir Enerji A.Ş. (3) 471.268 465.213
Other related parties 1.397 40.905
472.665 506.118

Rotor Elektrik Üretim A.Ş. was transferred to Zorlu Yenilenebilir Enerji A.Ş. with all its assets and liabilities on 24.02.2025. All short and long-term prepaid expenses from Rotor Elektrik Üretim A.Ş. were transferred to Zorlu Yenilenebilir Enerji A.Ş.

i) Transactions with related parties

1 January - 1 January -
31 March
2024
31 March
2025
Sales
Vestel Ticaret A.Ş. (1) 14.900.922 18.915.447
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 132.601 145.610
Other related parties - 33.851
15.033.523 19.094.908
Operating expenses
Vestel Holland B.V. (1) 1.065.260 1.163.587
Vestel Ticaret A.Ş. (1) 348.128 491.541
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 647.903 1.098.670
Other related parties 173.631 207.531
2.234.922 2.961.329

The Company's transactions to related parties consist of goods and service purchases.

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

NOTE 6 – RELATED PARTY DISCLOSURES (Cont'd)

i) Transactions with related parties (Cont'd)

1 January - 1 January -
31 March
2024
31 March
2025
Other income from operating activities
Vestel Ticaret A.Ş. (1) 903.355 689.254
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) - 1.178
Other related parties 98.158 181.734
1.001.513 872.166
Other expense from operating activities
Vestel Ticaret A.Ş. (1) 53.248 93.391
Vestel Holland B.V. (1) 20.586 67.442
Other related parties 28.833 54.780
102.667 215.613
Financial income
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) 564.799 471.504
Other related parties 311 -
565.110 471.504
Financial expense
Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) - 560.776
- 560.776

j) Compensation paid to key management including directors, the Chairman of Board of Directors, general managers and assistant general managers.

Compensation paid to key management for the three months period ended 31 March 2025 is TL 22.108 (1 January -31 March 2024: TL 16.829).

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

NOTE 7 – TRADE RECEIVABLES AND PAYABLES

31 March 2025 31 December 2024
Short term trade receivables
Trade receivables
- Related parties (note 6) 11.941.934 15.437.635
- Other parties 763.689 630.884
12.705.623 16.068.519
Allowance for doubtful receivables (-) (49.766) (54.558)
Total short term trade receivables 12.655.857 16.013.961

The Company has made a provision considering its past experience in collecting its trade receivables.

The Company has made a provision considering its past experience in collecting its trade receivables. Hence, the Company management made a provision assessment according to the expected credit losses model within the scope of TFRS 9 and as of 31 March 2025, no additional doubtful trade receivables risk was detected.

31 March 2025 31 December 2024
Short term trade payables
Trade payables
- Related parties (Note 6) 1.429.049 1.982.838
- Other parties 19.553.882 21.271.440
20.982.931 23.254.278
Unearned interest income (-)
- Related parties (Note 6) (21.781) (13.067)
- Other parties (173.506) (180.445)
Total short term trade payables 20.787.644 23.060.766
Long term trade payables
- Other parties 138.977 135.318
Total long term trade payables 138.977 135.318

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

NOTE 8 – OTHER RECEIVABLES AND PAYABLES

31 March 2025 31 December 2024
Other short-term receivables from third parties
Receivables from public institutions 1.069.821 1.076.293
Deposits and guarantees given 12.749 21.454
Other 29.938 18.287
Total short term other receivables 1.112.508 1.116.034
31 March 2025 31 December 2024
Long term other receivables
Deposits and guarantees given 11.767 14.089
11.767 14.089
31 March 2025 31 December 2024
Short term other payables
Related parties (Note 6) - 103.648
- 103.648
31 March 2025 31 December 2024
Deferred revenue
Related parties (Note 6) 223.160 86.630
Other parties 93.059 2.076
316.219 88.706

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

NOTE 9 – INVENTORIES

31 March 2025 31 December 2024
Raw materials 6.771.975 7.020.148
Work in process 229.652 186.605
Finished goods 4.812.509 3.677.587
Merchandise - 279
11.814.136 10.884.619
Provision for impairment on inventories (-) (93.392) (38.414)
11.720.744 10.846.205

As of 31 March 2025, the Company does not have inventories pledged as security for liabilities (31 December 2024: None).

NOTE 10 – PREPAID EXPENSES

31 March 2025 31 December 2024
Short-term prepaid expenses to third parties
Order advances given 281.662 73.940
Prepaid expenses 372.414 210.040
654.076 283.980
31 March 2025 31 December 2024
Long-term prepaid expenses to third parties
Advences given for purchase of fixed assets 402.217 424.415
Prepaid expenses 6.070 5.470
408.287 429.885

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

NOTE 11 – PROPERTY, PLANT AND EQUIPMENT

1 January 31 March
2025 Additions Disposals Transfer 2025
Cost or revaluation
Land 16.317.428 - - - 16.317.428
Land improvements 305.923 - - - 305.923
Buildings 12.078.014 4.987 - 177 12.083.178
Leasehold improvements 5.229 - - - 5.229
Plants, machinery and equipment 34.805.656 544.156 (34.778) 46.264 35.361.298
Motor vehicles 11.579 - (191) - 11.388
Furniture and fixtures 1.716.202 6.024 - 3.068 1.725.294
Construction in progress (*) 421.580 268.360 - (49.509) 640.431
65.661.611 823.527 (34.969) - 66.450.169
Accumulated depreciation
Land improvements - 2.823 - - 2.823
Buildings - 123.073 - - 123.073
Leasehold improvements 3.951 77 - - 4.028
Plants, machinery and equipment 24.590.055 527.044 (34.251) - 25.082.848
Motor vehicles 8.662 303 (191) - 8.774
Furniture and fixtures 1.260.986 29.186 - - 1.290.172
25.863.654 682.506 (34.442) - 26.511.718
Net book value 39.797.957 39.938.451

(*) A significant part of the investments being made are related to ongoing machinery investments.

There is no mortgage on property, plant and equipment as of 31 March 2025 (31 December 2024:None).

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

NOTE 11 – PROPERTY, PLANT AND EQUIPMENT (Cont'd)

1 January 31 March
2024 Additions Disposals Transfer 2024
Cost or revaluation
Land 11.262.166 - - - 11.262.166
Land improvements 252.614 - - - 252.614
Buildings 8.838.804 3.222 - 164 8.842.190
Leasehold improvements 4.064 175 - - 4.239
Plants, machinery and equipment 33.616.607 287.056 (111.625) 54.673 33.846.711
Motor vehicles 11.580 - - - 11.580
Furniture and fixtures 1.534.248 16.721 (1.463) 7.810 1.557.316
Construction in progress 2.776.724 641.148 - (62.647) 3.355.225
58.296.807 948.322 (113.088) - 59.132.041
Accumulated depreciation
Land improvements - 3.977 - - 3.977
Buildings - 238.135 - - 238.135
Leasehold improvements 3.679 40 - - 3.719
Plants, machinery and equipment 22.832.626 557.611 (101.922) - 23.288.315
Motor vehicles 7.300 345 - - 7.645
Furniture and fixtures 1.159.665 26.720 (1.456) - 1.184.929
24.003.270 826.828 (103.378) - 24.726.720
Net book value 34.293.537 34.405.321

Allocation of period depreciation and amortization expenses is as follows:

1 January - 1 January -
31 March
31 March
2025 2024
Cost of sales 603.733 777.810
Research and development expenses 147.739 163.343
Marketing, selling and distribution expenses 55.553 2.953
General administrative expenses 3.780 7.108
810.805 951.214

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

NOTE 12 – RIGHT OF USE ASSETS

1 January 31 March
2025 Additions Disposals 2025
Cost
Land and buildings 1.531.176 128.929 - 1.660.105
Motor vehicles and machinery 342.303 141.489 - 483.792
1.873.479 270.418 - 2.143.897
Accumulated amortization
Land and buildings 827.337 16.484 - 843.821
Motor vehicles and machinery 252.977 19.959 - 272.936
1.080.314 36.443 - 1.116.757
Net book value 793.165 1.027.140
1 January 31 March
2024 Additions Disposals 2024
Cost
Land and buildings 1.538.641 64.095 - 1.602.736
Motor vehicles and machinery 339.136 - (3.493) 335.643
1.877.777 64.095 (3.493) 1.938.379
Accumulated amortization
Land and buildings 564.483 42.000 - 606.483
Motor vehicles and machinery 246.764 5.009 (3.493) 248.280
811.247 47.009 (3.493) 854.763
Net book value 1.066.530 1.083.616

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

NOTE 13 – INTANGIBLE ASSETS

1 January 31 March
2025 Additions 2025
Cost
Rights 166.340 - 166.340
Development cost 5.661.966 210.830 5.872.796
Other intangible assets 441.628 12.490 454.118
6.269.934 223.320 6.493.254
Accumulated amortization
Rights 165.678 38 165.716
Development cost 3.200.842 82.716 3.283.558
Other intangible assets 244.825 9.102 253.927
3.611.345 91.856 3.703.201
Net book value 2.658.589 2.790.053
1 January 31 March
2024 Additions 2024
Cost
Rights 166.339 - 166.339
Development cost 4.872.031 299.952 5.171.983
Other intangible assets 386.966 873 387.839
5.425.336 300.825 5.726.161
Accumulated amortization
Rights 165.511 168 165.679
Development cost 2.859.213 68.044 2.927.257
Other intangible assets 208.114 9.165 217.279
3.232.838 77.377 3.310.215

Development costs, incurred by the Company on development projects relating to refrigerators, split air conditioners, washing machines, cookers and dish washers are capitalized as intangible assets since it is highly probable that it will derive economic benefit from these projects and the economic benefits and expenditures made during the development process can be reliably measured.

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

NOTE 14 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Provisions

31 March 2025 31 December 2024
Short term provisions
Provision for lawsuit risks 35.940 29.680
35.940 29.680

b) Guarantees received by the Company

31 March 2025 31 December 2024
Guarantee letters 463.485 453.795
Cheques and notes 650 715
Collaterals and pledges 62.022.318 49.844.433
62.486.453 50.298.943

Vestel Elektronik Sanayi ve Ticaret A.Ş., Vestel Mobilite Sanayi ve Ticaret A.Ş. and Vestel Ticaret A.Ş. has given guarantees to various banks on behalf of the Company for its forward contracts and bank borrowings.

c) Collaterals, pledges and mortgages ("CPMB's") given by the Company are as follows:

USD EUR
CPMB's given by the Group ('000) ('000) TL TL Equivalent
31 March 2025
A. CPMB's given on behalf of its own legal entity - 2.000 8.261.501 8.343.052
B. CPMB's given on behalf of fully consolidated
subsidiaries - - - -
C. CPMB's given on behalf of third parties for ordinary
course of business - - - -
D. Total amount of other CPMB's given 500.742 - 277.439 19.222.362
i. Total amount of CPMB's given on behalf of the parent
company 380.820 - 155.076 14.562.906
ii. Total amount of CPMB's given to on behalf of other
group companies which are not in scope of B and C. 119.922 - 122.363 4.659.456
iii.Total amount of CPMB's given on behalf of third
parties which are not in scope of C. - - - -
Total 500.742 2.000 8.538.940 27.565.414

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

NOTE 14 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Cont'd)

c) Collaterals, pledges and mortgages ("CPMB's") given by the Company are as follows:

The Company has given guarantees to various banks on behalf of Vestel Elektronik Sanayi ve Ticaret A.Ş. and Vestel Ticaret A.Ş. for the purpose of carrying out its usual commercial activities.

USD EUR
CPMB's given by the Group ('000) ('000) TL TL Equivalent
31 December 2024
A. CPMB's given on behalf of its own legal entity - 2.000 5.946.318 6.027.330
B. CPMB's given on behalf of fully consolidated
subsidiaries - - - -
C. CPMB's given on behalf of third parties for ordinary
course of business - - - -
D. Total amount of other CPMB's given 500.742 - 305.357 19.784.403
i. Total amount of CPMB's given on behalf of the parent
company 380.820 - 170.681 14.984.718
ii. Total amount of CPMB's given to on behalf of other
group companies which are not in scope of B and C. 119.922 - 134.676 4.799.685
iii.Total amount of CPMB's given on behalf of third
parties which are not in scope of C. - - - -
Total 500.742 2.000 6.251.675 25.811.733

Proportion of other CPMB's given by the Company to its equity 53% as of 31 March 2025 (31 December 2024: 53%).

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

NOTE 15 – COMMITMENTS

As of the balance sheet date the Company has committed to realize exports amounting to USD 1.262.939 thousand (31 December 2024: USD 1.119.701 thousand) due to the export and investment incentive certificates obtained.

As of 31 March 2025 the Company has forward foreign currency purchase contract that amounts to EUR 20.732 thousand, PLN 2.335 thousand, GBP 728 thousand, USD 540.936 thousand, SEK 57.084 thousand and TL 5.984.000 and against forward foreign currency sales contract that amounts to EUR 496.115 thousand, GBP 9.177 thousand, PLN 8.770 thousand, USD 150.523 thousand and SEK 186.744 thousand (31 December 2024 : The Company has forward foreign currency purchase contract of EUR 95.197 thousand, PLN 11.401 thousand, GBP 2.272 thousand, USD 383.643 thousand, SEK 96.848 thousand and TL 2.135.768 against forward foreign currency sales contract that amounts to EUR 351.173 thousand, GBP 10.584 thousand, PLN 17.853 thousand, USD 136.707 thousand and SEK 177.648 thousand).

NOTE 16 – EMPLOYEE BENEFITS

Liabilities for employee benefits:

31 March 2025
Due to personnel 363.609 287.317
Social security payables 186.868 146.400
550.477 433.717

Long term provisions for employee benefits:

31 March 2025 31 December 2024
Provision for employment termination benefits 985.263 1.019.163
985.263 1.019.163

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

NOTE 16-EMPLOYEE BENEFITS (Cont'd)

Under Turkish law, the Company is required to pay employment termination benefits to each employee whose employment is terminated without due cause. In addition, under the existing Social Security Law No. 506, clause No. 60, amended by the Labor Laws dated 6 March 1981, No. 2422 and 25 August 1999, No. 4447, the Company is also required to pay termination benefits to each employee who has earned the right to retire by receiving termination indemnities.

The amount payable is the equivalent of one month's gross salary for each year of service and is limited to a maximum of TL 46.655,43 / year as of 31 March 2025 (31 December 2024: TL 41.828,42 /year - at 31 December 2024 purchasing power).

The provision for employee termination benefits is not funded.

The provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. Turkish Accounting Standards No: 19 ("Employee Benefits") requires actuarial valuation methods to be developed to estimate the enterprise's obligation under defined employee plans. Accordingly actuarial assumptions were used in the calculation of the total liability which is described below:

The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. An expected inflation rate and appropriate discount rate should both be determined, the net of these being real discount rate. Consequently, in the accompanying financial statements as of 31 December 2024 the provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. As of 31 March 2025, provision is calculated based on real discount rate of 11,54% assuming 26,71% annual inflation rate and 2,47% discount rate. (31 December 2024: 26,71% inflation rate, 11,54% real discount rate, 2,47% discount rate)

The main assumption is that the seniority ceiling for each year of service increases in line with inflation. Thus, the discount rate applied represents the actual rate adjusted for the expected effects of inflation. The maximum liability is revised every six months, the maximum amount of TL 46.655,43 effective from 1 January 2025 has been taken into consideration in the calculation of provision for employment termination benefits as of 31 December 2024 and 31 March 2025.

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

NOTE 16-EMPLOYEE BENEFITS (Cont'd)

The movements in the provision for employment termination benefit are as follows:

1 January - 1 January -
31 March 2025 31 March 2024
Balance at 1 January 1.019.163 1.075.232
Increase during the year 40.769 39.183
Payments during the year (52.473) (67.125)
Actuarial (gain) /loss 11.366 8.578
Interest expense 60.776 52.305
Monetary gain/ (loss) (94.338) (141.768)
Balance at 31 March 985.263 966.405

NOTE 17 – OTHER ASSETS AND LIABILITIES

31 March 2025 31 December 2024
Other current assets
VAT carried forward 4.391 4.023
Revenue and discount accruals 36.915 102.288
41.306 106.311
Other current liabilities
Tax payables 200.277 197.376
Other 16.178 12.529
216.455 209.905

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

NOTE 18 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS

a) Paid in capital

31 March 2025 31 December 2024
Shares of par value Kr 1 each
issued share capital 1.600.000 1.600.000

As of 31 March 2025 and 31 December 2024, the shareholding structure is as follows:

Shareholding Amount
31 March 31 December 31 March 31 December
2025 2024 2025 2024
Vestel Elektronik Sanayi ve Ticaret AŞ 77,33% 77,33% 1.237.302 1.237.302
Stocks traded on BIST 22,67% 22,67% 362.698 362.698
100% 100% 1.600.000 1.600.000

b) Adjustments to share capital

Adjustment to share capital is the difference between the share capital recalculated to adjust the effects of inflation and historical share capital.

31 March 2025 31 December 2024
Adjustments to share capital 10.844.163 10.844.163

c) Restricted reserves ("Legal reserves")

The legal reserves consist of first and second legal reserves appropriated in accordance with the Turkish Commercial Code ("TCC"). The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the Company's share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the Company's share capital. Under TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid in share capital.

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

NOTE 18 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Cont'd)

c) Restricted reserves ("Legal reserves") (Cont'd)

31 March 2025 31 December 2024
Legal reserves 2.253.772 2.253.772

The differences arising as a result of converting the following inflation-adjusted amounts in the company's legal records into CPI-adjusted amounts within the scope of TAS 29 are accounted under the Retained Earnings item.

Differences Tracked in
PPI-Indexed Legal
Records
CPI Indexed
Amounts
Past Years
Profits/Losses
Capital Adjustment Gains/Losses 11.830.091 10.844.163 985.928
Appropriated Retained Earnings 2.984.214 2.253.772 730.442

d) Dividend distribution

For quoted companies dividends are distributed in accordance with the Communiqué Serial II -19.1 on "Principals Regarding Distribution of Interim Dividends" issued by the CMB effective from 1 February 2014. Companies distribute dividends in accordance with their dividend payment policies settled and dividend payment decision taken in general assembly and in conformity with relevant legislations. The communiqué does not state a minimum dividend rate.

Companies distribute dividends in accordance with the method defined in their dividend policy or articles of association. Additionally, dividend can be distributed in fixed or variable installments and dividend advances can be paid over the profit on financial statements.

Unless the general reserves that has to be appropriated in accordance with TCC or the dividend to shareholders as determined in the articles of association or dividend policy are set aside; no decision can be taken to set aside other reserves, to transfer reserves to the subsequent year or to distribute dividends to holders of redeemed shares right certificates, to board of directors members or to employees; and no dividend can be distributed to those unless the determined dividend to shareholders is paid in cash.

On the other hand, in accordance with the Articles of Association of the Company, up to 5% of retained earnings after dividend distribution could be allocated to the Board of Directors or used for certain reasons designated by the Board of Directors when necessary.

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

NOTE 18 – CAPITAL, RESERVES AND OTHER EQUITY ITEMS (Cont'd)

d) Dividend distribution (Cont'd)

  • Based on the approval of the General Assembly, up to 3% of retained earnings after dividend distribution could be allocated to plant investments designated in accordance with article of 468 in TCC,
  • Up to 5% of retained earnings after dividend distribution could be allocated to the Board of Directors as necessary, up to 5% of retained earnings after dividend distribution could be allocated to donations, bonuses etc.

NOTE 19 – SALES

1 January - 1 January -
31 March
2024
31 March
2025
Domestic sales 4.756.427 7.394.220
Overseas sales 11.191.475 12.001.796
Gross sales 15.947.902 19.396.016
Sales discounts (-) (56.649) (98.024)
Net sales 15.891.253 19.297.992
Cost of sales (14.643.253) (16.346.458)
Gross profit 1.248.000 2.951.534

NOTE 20 – OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES

a) Other Operating Income:

1 January -
31 March
2025
1 January -
31 March
2024
Credit finance gains arising from trading activities 36.461 136.273
Foreign exchange gains arising from trading activities 1.035.702 837.518
Other income 9.944 2.687
1.082.107 976.478

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

NOTE 20 – OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES (Cont'd)

b) Other Operating Expense:

1 January -
31 March
2025
1 January -
31 March
2024
Debit finance charges and interest income arising from
trading activities 350 701
Foreign exchange expenses arising from trading activities 1.596.785 1.884.096
Other expenses 56.834 25.887
1.653.969 1.910.684

NOTE 21 – FINANCIAL INCOME AND FINANCIAL EXPENSE

a) Financial income:

1 January - 1 January -
31 March
2024
31 March
2025
Foreign exchange gains 257.063 394.782
Gains on derivative financial instruments 402.877 107.814
Interest income 328.968 87.386
988.908 589.982

b) Financial expense:

1 January -
31 March
2025
1 January -
31 March
2024
Foreign exchange losses 148.583 230.459
Losses on derivative financial instruments 312.611 310.973
Interest expense 1.546.153 1.024.663
203.383
Commission and other finance expenses
2.210.730
197.934
1.764.029

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

NOTE 22 – MONETARY LOSS/GAIN

Non-monetary items 31 March 2025
Balance sheet items 461.058
Inventories 1.434.487
Prepaid expenses 11.431
Tangible and intangible assets 3.480.462
Right of use assets 75.199
Inflation adjustments on capital (1.137.739)
Other comprehensive income (expenses) that will not be reclassified to profit/(losses) (1.190.452)
Other comprehensive income (expenses) that will be reclassified to profit/(losses) (15.739)
Restricted reserves (206.057)
Prior years' profits or loss (1.990.534)
Profit and loss items 685.171
Sales (369.275)
Cost of sales 854.382
General administration expenses 10.468
Marketing expenses 53.930
Research and development expenses 87.242
Other income from operating activities (25.146)
Other expenses from operating activities 45.178
Financial income (22.980)
Financial expense 51.372
Net monetary position gains/(losses) 1.146.229

NOTE 23 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)

31 March 2025 31 December 2024
Prepaid taxes (-) (11.290) (11.241)
Current income tax liabilities - net (11.290) (11.241)
Deferred tax liabilities - net (3.633.481) (3.452.404)

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

NOTE 23 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

Pursuant to paragraph 1 of Article 6 of the Corporate Tax Law No. 5520, corporate tax is calculated on the net corporate income of the taxpayers for an accounting period. Pursuant to paragraph 2 of the same article, by taking into account the provisions of Income Tax Law No. 193 on commercial income, pure corporate income is calculated by adding legally unacceptable expenses to the commercial income and deducting the exempt earnings and discounts from the commercial income.

With the amendment made to Article 32 of the Corporate Tax Law No. 5520 with Article 21 of the Law No. 7456, corporate taxpayers other than banks, companies within the scope of the Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies are subject to corporate tax at the rate of 25% on their net corporate earnings.

In addition to the corporate tax levied on corporate income, withholding income/corporate tax burden may arise if all or part of the profits of corporations are subject to profit distribution. By full taxpayer corporations;

  • Full taxpayer real persons,
  • For non-income and corporate taxpayers,
  • For those exempt from income tax,
  • Limited taxpayer real persons,
  • Limited taxpayers exempt from income tax,
  • Institutions exempt from corporate tax,
  • To limited taxpayer corporations or limited taxpayers exempt from corporate tax, except for those who obtain dividends through a place of business or permanent representative in Türkiye,

In Türkiye, the Domestic Minimum Corporate Tax has entered into force with the laws published in the Official Gazette dated 2 August 2024. The regulation will be applied to corporate earnings for the taxation period of 2025. Within this scope, a regulation has been made stating that the corporate tax calculated cannot be less than 10% of the corporate earnings before deductions and exemptions. Since the application will start on the earnings of the corporations as of 1 January 2025, it will not have an impact on the current period tax expense in the financials dated 31 December 2024. On the other hand, the effects of the International Tax Reform - Second Pillar Model Rules on the financial position and performance of the Company have been evaluated and it has been determined that it does not have a significant impact.

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

NOTE 23 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

In case of dividend distribution, 10% withholding income/corporate tax is payable. According to the Turkish tax legislation, capitalization of profit is not considered as dividend distribution.

Corporations are required to calculate advance tax on their quarterly earnings for the first 3 months of their accounting periods in accordance with the principles set out in the Income Tax Law No. 193 and at the corporate tax rate and declare it until the 17th day of the second month following that period and pay it until the evening of the 17th day. Advance tax paid during the year belongs to that year and is deducted from the corporate tax to be calculatedon the corporate tax return to be submitted in the following year.

Corporations are exempt from corporate tax on 75% of the gains arising from the sale of participation shares included in their assets for at least two full years and 25% of the gains arising from the sale of immovables included in their assets on 15 July 2023 for the same period. As of 15 July 2023, corporate tax exemption is not applied to the gains arising from the sale of immovables taken into assets.

Under Turkish tax legislation, tax losses carried forward can be carried forward to offset against future taxable income for up to 5 years. However, tax losses cannot be offset against retained earnings.

In Türkiye, there is no such practice as reconciliation with the tax authority on taxes payable. Corporate tax returns are required to be filed with the tax office by the 30th of the fourth month following the close of the accounting period and corporate tax is payable within the same period.

However, tax authorities may examine the accounting records within five years and the amount of tax payable may change if incorrect transactions are detected.

Earnings from the Company's investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or completely until the investment contribution amount is reached.

Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized in respect of deductible temporary differences, tax losses and tax advantages arising from investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.

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

NOTE 23 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

For the periods 31 March 2025 and 2024, tax expenses recognized in the statement of comprehensive income are as follows;

1 January - 1 January -
31 March 2025 31 March 2024
Current period tax expense - (2.926)
Deferred tax benefit/(expense) (256.385) 53.777
Total tax benefit/(expense) (256.385) 50.851

Due to modernization, plant extension and investments incentive documents in Manisa Organized Industrial Zone, the Company has reduced rate of corporate tax advantage.

Deferred tax assets and liabilities

The breakdown of cumulative temporary differences and the resulting deferred tax assets and liabilities provided using principal tax rate as of the balance sheet dates is as follows:

Cumulative temporary
differences Deferred tax
31 March
2025
31 December 31 March
2025
31 December
2024
2024
Deferred tax assets/(liabilities)
Employment termination benefits (985.263) (1.019.163) 246.316 254.791
Invesment incentive - - 910.936 1.322.952
Deferred tax calculated on financial period loss - - 478.939 192.448
Net difference between recorded values and tax bases of tangible and
intangible assets 23.133.169 22.852.540 (4.763.453) (4.693.295)
Net difference between registered values of stocks and tax bases 2.423.900 2.366.226 (605.975) (591.557)
Derivative financial instruments (284.346) 344.805 71.087 (86.200)
Other (114.675) (593.828) 28.669 148.457
(3.633.481) (3.452.404)

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

NOTE 23 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

The Company's earnings from investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or fully until the investment contribution amount is reached.

Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized for deductible temporary differences, tax losses and investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.

Furthermore, financial statements consist of the deferred tax effect of the temporary differences accounted by the adjustments made regarding inflation accounting together with the notification of the Corporate Tax Law dated 30 December 2023 and numbered 32415.

As of 31 March 2025, the tax advantage amounting to TL 910.936 that the Company will benefit from in the foreseeable future is reflected in the financial statements as deferred tax asset. In line with the precautionary principle of accounting and in line with the budget made by the Company, the tax advantage arising from the investment incentives that the Company expects to benefit from in the coming years has been recognized as deferred tax asset in the financial statements.However, the tax advantage amounting to TL 4.902.055 that the Company is entitled to use has not been recognized in deferred tax assets in accordance with the precautionary principle of accounting.

The Company assesses the recoverability of deferred tax assets related to investment incentives based on business models that include estimates of taxable profit. These business models include forward-looking management estimates such as sales volumes, selling prices and exchange rate expectations.

As a result of the sensitivity analyses on the forward-looking use of investment incentives, it has been concluded that a 10% increase/decrease in the related estimates has no an important impact on the recoverability of the related deferred tax assets.

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

NOTE 23 – TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Cont'd)

The movement of net deferred tax assets and liabilities is as follows:

1 January - 1 January -
31 March 2025 31 March 2024
Opening balance, 1 January (3.452.404) (2.613.649)
Tax benefit recognized in income statement (256.385) 53.777
Recognized in shareholders' equity 75.308 (88.794)
Deferred tax liabilities at the end of the period, net (3.633.481) (2.648.666)

NOTE 24– LOSSES PER SHARE

1 January - 1 January -
31 March
2024
31 March
2025
Net income / (loss) attributable to equity holders of the parent (1.014.009) 851.567
Weighted number of ordinary shares with a Kr 1 of par value (hundred shares) 1.600.000.000 1.600.000.000
Losses per share (0,63) 0,53

NOTE 25 – DERIVATIVE INSTRUMENTS

31 March 2025 31 December 2024
Fair Value Fair Value
Contract Assets / Contract Assets /
amount (Liabilities) amount (Liabilities)
Derivative financial instruments:
Held for trading
Forward foreign currency transactions 2.155.479 51.533 4.092.779 24.125
Cash flow hedge
Forward foreign currency transactions 12.935.397 110.247 10.937.542 353.904
Derivative financial liabilities:
Held for trading
Forward foreign currency transactions 6.662.888 (128.406) 6.075.957 (29.242)
Cash flow hedge
Forward foreign currency transactions 5.774.918 (81.552) 311.221 (3.982)
27.528.682 (48.178) 21.417.499 344.805

NOTE 26 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

Foreign currency risk:

The Company is exposed to exchange rate risk due to its foreign currency denominated transactions. The main principle of foreign currency risk management is to maintain foreign exchange position at the level that minimizes the impact of foreign exchange fluctuations.

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

NOTE 26 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

Derivative instruments are used in foreign currency risk management where necessary. In this respect the Company mainly prefers using foreign exchange forward contracts.

USD EUR Other (TL
31 March 2025 (Thousand) (Thousand) Equivalent) TL Equivalent
1. Trade receivables 29.129 188.856 452.812 9.239.684
2a. Monetary financial assets (including
cash and cash equivalents) 3.340 250 1.036 137.349
2b. Non-monetary financial assets - - - -
3. Other 81.227 7.995 - 3.392.998
4. Current assets (1+2+3) 113.696 197.101 453.848 12.770.031
5. Trade receivables - - - -
6a. Monetary financial assets - - - -
6b. Non-monetary financial assets - - - -
7. Other 14.403 7.689 - 856.895
8. Non-current assets (5+6+7) 14.403 7.689 - 856.895
9. Total assets (4+8) 128.099 204.790 453.848 13.626.926
10. Trade payables 262.687 179.116 66.632 17.308.562
11. Financial liabilities 19.277 18.293 - 1.475.223
12a. Other monetary liabilities - - - -
12b. Other non-monetary liabilities - - - -
13. Current liabilities (10+11+12) 281.964 197.409 66.632 18.783.785
14. Trade payables - 3.408 - 138.962
15. Financial liabilities - 4.924 - 200.778
16a. Other monetary liabilities - - - -
16b. Other non-monetary liabilities - - - -
17. Non-current liabilities (14+15+16) - 8.332 - 339.740
18. Total liabilities (13+17) 281.964 205.741 66.632 19.123.524
19. Off-balance sheet derivative instruments
net asset / (liability) position (19a+19b)(*) 390.413 (475.383) (960.511) (5.611.979)
19a. Hedged total assets 540.936 20.732 272.071 21.544.683
19b. Hedged total liabilities (150.523) (496.115) (1.232.582) (27.156.662)
20. Net foreign currency asset/ (liability)
position (9-18+19) 236.548 (476.334) (573.295) (11.108.577)
21. Net foreign currency monetary asset/
(liability) position
(=1+2a+3+5+6a+7-10-11-12a-14-15-16a) (153.865) (951) 387.216 (5.496.598)
22. Fair value of financial instruments used
in foreign currency hedging - - - (48.178)
23. Export 36.188 222.702 421.983 11.191.475
24. Import 126.224 29.891 13.186 5.712.578

(*) Consists of net asset/(liability) positions of off-balance sheet derivative instruments denominated in foreign currencies.

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

NOTE 26 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

USD EUR Other (TL
31 December 2024 (Thousand) (Thousand) Equivalent) TL Equivalent
1. Trade receivables 43.277 214.998 377.588 10.789.038
2a. Monetary financial assets (including
cash and cash equivalents) 11.204 11.313 1.325 893.932
2b. Non-monetary financial assets - - - -
3. Other 70.925 1.330 - 2.807.827
4. Current assets (1+2+3) 125.406 227.641 378.913 14.490.797
5. Trade receivables - - - -
6a. Monetary financial assets - - - -
6b. Non-monetary financial assets - - - -
7. Other 14.113 8.875 - 906.857
8. Non-current assets (5+6+7) 14.113 8.875 - 906.857
9. Total assets (4+8) 139.519 236.516 378.913 15.397.653
10. Trade payables 259.615 208.998 34.926 18.603.177
11. Financial liabilities 22.239 18.055 - 1.596.436
12a. Other monetary liabilities - - 20 22
12b. Other non-monetary liabilities - - - -
13. Current liabilities (10+11+12) 281.854 227.053 34.946 20.199.635
14. Trade payables - 3.341 - 135.330
15. Financial liabilities - 5.570 - 225.599
16a. Other monetary liabilities - - - -
16b. Other non-monetary liabilities - - - -
17. Non-current liabilities (14+15+16) - 8.911 - 360.929
18. Total liabilities (13+17) 281.854 235.964 34.946 20.560.564
19. Off-balance sheet derivative instruments
net asset / (liability) position (19a+19b) 246.936 (255.976) (681.221) (1.528.351)
19a. Hedged total assets 383.643 95.197 507.874 19.281.732
19b. Hedged total liabilities (136.707) (351.173) (1.189.095) (20.810.083)
20. Net foreign currency asset/ (liability)
position (9-18+19) 104.601 (255.424) (337.254) (6.691.262)
21. Net foreign currency monetary asset/
(liability) position
(=1+2a+5+6a-10-11-12a-14-15-16a) (142.335) 552 343.967 (5.162.911)
22. Fair value of financial instruments used
in foreign currency hedging - - - 344.805
23. Export 152.583 1.091.070 1.411.440 56.699.276
24. Import 514.039 152.022 44.418 24.445.045

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

NOTE 26 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

As of 31 March 2025 and 31 December 2024, sensitivity analysis of foreign exchange rate tables is presented below, secured portions include impact of derivative instruments.

Gain / Loss Equity
Foreign Foreign Foreign Foreign
31 March 2025 exchange exchange exchange
appreciation
exchange
depreciation
appreciation depreciation
+/- 10% fluctuation of USD rate:
USD net asset / liability (583.001) 583.001 (583.001) 583.001
Secured portion from USD risk (-) (328.883) 328.883 1.489.350 (1.489.350)
USD net effect (911.884) 911.884 906.349 (906.349)
+/- 10% fluctuation of EUR rate:
EUR net asset / liability (4.993) 4.993 (4.993) 4.993
Secured portion from EUR risk (-) (131.569) 131.569 (1.963.807) 1.963.807
EUR net effect (136.562) 136.562 (1.968.800) 1.968.800
+/- 10% fluctuation of other currency rates:
Other currencies net asset / liability 38.722 (38.722) 38.722 (38.722)
Secured portion from other currency risk (70.891) 70.891 (53.902) 53.902
Other currency net effect (32.169) 32.169 (15.180) 15.180
Total (1.080.615) 1.080.615 (1.077.631) 1.077.631

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

NOTE 26 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont'd)

Gain / Loss Equity
Foreign Foreign Foreign Foreign
exchange exchange exchange exchange
31 December 2024 appreciation depreciation appreciation depreciation
+/- 10% fluctuation of USD rate:
USD net asset / liability (555.539) 555.539 (555.539) 555.539
Secured portion from USD risk (-) (116.626) 116.626 963.722 (963.722)
USD net effect (672.165) 672.165 408.183 (408.183)
+/- 10% fluctuation of EUR rate:
EUR net asset / liability (988) 988 (988) 988
Secured portion from EUR risk (-) (6.433) 6.433 (1.082.298) 1.082.298
EUR net effect (7.421) 7.421 (1.083.286) 1.083.286
+/- 10% fluctuation of other currency rates:
Other currencies net asset / liability 37.858 (37.858) 37.858 (37.858)
Secured portion from other currency risk (50.556) 50.556 (19.219) 19.219
Other currency net effect (12.698) 12.698 18.639 (18.639)
Total (692.284) 692.284 (656.464) 656.464

NOTE 27– FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES)

Fair value hierarchy

The Company classifies the fair value measurement of each class of financial instruments according to the source, using the three-level hierarchy, as follows:

Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)

Level 2: Other valuation techniques include direct or indirect observable inputs

Level 3: Valuation techniques do not contain observable market inputs

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

NOTE 27– FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) (Cont'd)

Fair value hierarchy tables as of 31 March 2025 and 31 December 2024 are as follows:

31 March 2025 Level 1 Level 2 Level 3 Total
Financial assets/liabilities
Derivative financial instruments - (48.178) - (48.178)
31 December 2024 Level 1 Level 2 Level 3 Total
Financial assets/liabilities
Derivative financial instruments - 344.805 - 344.805

The Company's non-financial assets, calculated at fair value as of 31 March 2025 and 31 December 2024 are as follows:

31 March 2025 Level 1 Level 2 Level 3 Total
Tangible Assets
Lands - 16.317.428 - 16.317.428
Buildings and land improvements - 12.263.205 - 12.263.205
31 December 2024 Level 1 Level 2 Level 3 Total
Tangible Assets
Lands - 16.317.428 - 16.317.428

NOTE 28 - OTHER FINANCIAL LIABILITIES

The maturity of other financial liabilities is 30 July 2030 and the interest rate is EURIBOR+2,5.

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

NOTE 29– SUBSEQUENT EVENTS

Taking into consideration the provisions of the Company's Articles of Association and the Profit Distribution Policy, from the net distributable profit for the period — including the donations calculated in accordance with CMB regulations — a dividend in the amount of TL 70.238 corresponding to 25%, shall be allocated to the shares representing the issued capital; the dividend (corresponding to a gross TL 0,0439 and net TL 0,03731 per share with a nominal value of TL 1,00) shall be paid in cash to the shareholders on 24 July 2025; the dividend distribution shall be covered from the extraordinary reserves stated in the financial statements prepared in accordance with TPL (Tax Procedure Law) regulations; and these matters shall be submitted to the approval of the shareholders at the 2024 Ordinary General Assembly Meeting.This resolution has been adopted unanimously by the members of the Board of Directors present at the meeting.

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