Vestel Elektronik Sanayi ve Ticaret Anonim Sirketi : announced its financials for 9M22

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE INTERIM PERIOD

1 JANUARY- 30 SEPTEMBER 2022

(ORIGINALLY ISSUED IN TURKISH)

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 30 SEPTEMBER 2022

CONTENTS	PAGE
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS ...................................................................	1-5
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME............................................................................................................................	6-7
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY...............................................................................................................................................	8
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS ............................................	9-11

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 30 SEPTEMBER 2022

NOTE 1	GROUP'S ORGANISATION AND NATURE OF OPERATIONS...............................................................	12-13
NOTE 2	BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS...........................	13-31
NOTE 3	INTERESTS IN OTHER ENTITIES.........................................................................................................................	32-33
NOTE 4	SEGMENT REPORTING...............................................................................................................................................	34-35
NOTE 5	CASH AND CASH EQUIVALENTS..........................................................................................................................	36
NOTE 6	FINANCIAL ASSETS.......................................................................................................................................................	36-37
NOTE 7	FINANCIAL LIABILITIES............................................................................................................................................	37-39
NOTE 8	RELATED PARTY DISCLOSURES..........................................................................................................................	40-43
NOTE 9	TRADE RECEIVABLES AND PAYABLES...........................................................................................................	44
NOTE 10	OTHER RECEIVABLES AND PAYABLES...........................................................................................................	45
NOTE 11	INVENTORIES...................................................................................................................................................................	46
NOTE 12	PREPAID EXPENSES.....................................................................................................................................................	47
NOTE 13	INVESTMENTS RECOGNIZED BY EQUITY PICKUP METHOD...........................................................	47-48
NOTE 14	PROPERTY, PLANT AND EQUIPMENT.............................................................................................................	49-51
NOTE 15	RIGHT OF USE ASSETS................................................................................................................................................	52
NOTE 16	INTANGIBLE ASSETS...................................................................................................................................................	53-54
NOTE 17	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES........................................................................	54-56
NOTE 18	COMMITMENTS..............................................................................................................................................................	56
NOTE 19	EMPLOYEE BENEFITS.................................................................................................................................................	57-58
NOTE 20	OTHER ASSETS AND LIABILITIES.......................................................................................................................	58
NOTE 21	CAPITAL, RESERVES AND OTHER EQUITY ITEMS ..................................................................................	59-61
NOTE 22	SALES .....................................................................................................................................................................................	61
NOTE 23	EXPENSES BY NATURE..............................................................................................................................................	62
NOTE 24	GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES, RESEARCH
	AND DEVELOPMENT EXPENSES.........................................................................................................................	62-63
NOTE 25	OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES...............................................	63-64
NOTE 26	FINANCIAL INCOME AND FINANCIAL EXPENSES...................................................................................	64
NOTE 27	TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)....................	65-68
NOTE 28	EARNINGS PER SHARE...............................................................................................................................................	68
NOTE 29	DERIVATIVE INSTRUMENTS .................................................................................................................................	69
NOTE 30	FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT............................................	69-73
NOTE 31	SUBSEQUENT EVENTS...............................................................................................................................................	73

1

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS AS OF 30 SEPTEMBER 2022 AND 31 DECEMBER 2021

(Amounts expressed in thousands of Turkish Lira ("TL") unless otherwise indicated.)

		Reviewed	Audited
		30 September	31 December
	Notes	2022	2021
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	5	1,520,072	2,089,143
Financial Investment		47,373	1,710
Time Deposit		47,373	1,710
Trade Receivables		8,384,459	6,674,282
Trade Receivables Due from Related Parties	8.9	24,727	14,133
Trade Receivables Due from Third Parties	9	8,359,732	6,660,149
Other Receivables		2,401,117	1,461,021
Other Receivables Due from Related Parties	8.10	1,578,947	848,275
Other Receivables Due from Third Parties	10	822,170	612,746
Derivative Financial Assets		231,435	288,768
Derivative Financial Assets Held for Trading	29	25,372	14,151
Derivative Financial Assets Held for Hedging	29	206,063	274,617
Inventories	11	14,964,489	9,528,703
Prepaid Expenses		977,118	611,717
Prepaid Expenses to Related Parties	8	110,715	-
Prepaid Expenses to Third Parties	12	866,403	611,717
Current Tax Assets	27	11,474	7,987
Other Current Assets		415,988	215,323
Other Current Assets Due from
Third Parties	20	415,988	215,323
TOTAL CURRENT ASSETS		28,953,525	20,878,654

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

2

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS AS OF 30 SEPTEMBER 2022 AND 31 DECEMBER 2021

(Amounts expressed in thousands of Turkish Lira ("TL") unless otherwise indicated.)

		Reviewed	Audited
		30 September	31 December
	Notes	2022	2021
NON-CURRENT ASSETS
Financial Investments	6	88,584	73,085
Financial Assets Available-for-Sale	6	88,584	73,085
Investments in subsidiaries, joint ventures	13	1,939,347	1,406,812
Trade Receivables		282	468
Trade Receivables Due from Third Parties		282	468
Other Receivables		15,672,802	10,843,955
Other Receivables Due from Related Parties	8	15,627,739	10,717,782
Other Receivables Due from Third Parties	10	45,063	126,173
Property, Plant and Equipments		9,459,776	7,426,989
Land	14	1,771,879	1,724,691
Land Improvements	14	254,064	203,884
Buildings	14	3,864,651	3,241,874
Machinery and Equipments	14	2,600,332	2,092,530
Vehicles	14	6,062	6,936
Furniture and Fixtures	14	164,669	70,832
Leasehold Improvements	14	28,306	4,110
Construction in Progress	14	769,813	82,132
Right of Use Assets	15	420,345	179,618
Intangible Assets and Goodwill		1,373,916	1,107,011
Goodwill		196,568	196,568
Other Rights	16	21,837	24,901
Capitalized Development Costs	16	1,030,176	789,738
Other Intangible Assets	16	125,335	95,804
Prepaid Expenses		441,165	371,314
Prepaid Expenses to Third Parties	12	441,165	371,314
Deferred Tax Asset	27	1,297,070	795,193
Other Non-current Assets		12,534	9,590
Other Non-Current Assets Due from
Third Parties	20	12,534	9,590
TOTAL NON-CURRENT ASSETS		30,705,821	22,214,035
TOTAL ASSETS		59,659,346	43,092,689

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

3

VESTEL ELEKTRONİK SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS AS OF 30 SEPTEMBER 2022 AND 31 DECEMBER 2021

(Amounts expressed in thousands of Turkish Lira ("TL") unless otherwise indicated.)

		Reviewed	Audited
		30 September	31 December
	Notes	2022	2021
LIABILITIES
CURRENT LIABILITIES
Current Borrowings		17,369,676	5,057,567
Current Borrowings from Related Parties		12,512	11,423
Lease Liabilities	7.8	12,512	11,423
Current Borrowings from Third Parties		17,357,164	5,046,144
Bank Loans	7	16,179,187	4,344,893
Lease Liabilities	7	104,539	63,434
Issued debt instruments	7	1,073,438	637,817
Current Portion of Non-current Borrowings		892,079	6,014,337
Current Portion of Non-current Borrowings from
Third Parties		892,079	6,014,337
Bank Loans	7	892,079	6,014,337
Trade Payables		21,587,033	16,026,589
Trade Payables to Related Parties	8	46,113	66,009
Trade Payables to Third Parties	9	21,540,920	15,960,580
Payables Related to Employee Benefits	19	432,857	279,503
Other Payables		3,670	10,752
Other Payables to Third Parties	10	3,670	10,752
Derivative Financial Liabilities		314,639	531,887
Derivative Financial Liabilities Held for Trading	29	238,974	490,901
Derivative Financial Liabilities Held for Hedging	29	75,665	40,986
Deferred Income		470,432	-
Deferred Income from Third Parties	10	470,432	-
Current Tax Liabilities	27	8,418	-
Current Provisions		1,332,651	1,240,635
Other Current Provisions	17	1,332,651	1,240,635
Other Current Liabilities		2,148,537	1,448,827
Other Current Liabilities to Third Parties	20	2,148,537	1,448,827
TOTAL CURRENT LIABILITIES		44,559,992	30,610,097

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