Arçelik Anonim Sirketi : 2021 12 Month Financial Statements

(CONVENIENCE TRANSLATION OF THE INDEPENDENT AUDITORS' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

ARÇELİK ANONİM ŞİRKETİ

JANUARY 1 - DECEMBER 31, 2021 CONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITOR'S REPORT

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CONTENTS	PAGES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION........................................	1-3
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS .................................................	4
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME ..............	5
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY .....	6
CONSOLIDATED STATEMENTS OF CASH FLOWS ........................................................	7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ....................................	8-81
NOTE 1 - GROUP'S ORGANISATION AND NATURE OF OPERATIONS .....................................................	8
NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS .......................	10
NOTE 3 - BUSINESS COMBINATION..............................................................................................................	30
NOTE 4 - SEGMENT REPORTING ...................................................................................................................	32
NOTE 5 - CASH AND CASH EQUIVALENTS .................................................................................................	33
NOTE 6 - FINANCIAL INVESTMENTS............................................................................................................	34
NOTE 7 - BORROWINGS ...................................................................................................................................	35
NOTE 8 - DERIVATIVE INSTRUMENTS.........................................................................................................	39
NOTE 9 - TRADE RECEIVABLES AND PAYABLES .....................................................................................	40
NOTE 10 - OTHER PAYABLES.........................................................................................................................	41
NOTE 11 - INVENTORIES .................................................................................................................................	41
NOTE 12 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD ......................................	42
NOTE 13 - PROPERTY, PLANT AND EQUIPMENT .......................................................................................	43
NOTE 14 - OTHER INTANGIBLE ASSETS ......................................................................................................	46
NOTE 15 - GOODWILL ......................................................................................................................................	48
NOTE 16 - GOVERNMENT GRANTS ...............................................................................................................	50
NOTE 17 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES..................................................	51
NOTE 18 - OTHER PROVISIONS ......................................................................................................................	52
NOTE 19 - LONG TERM PROVISION FOR EMPLOYEE BENEFITS ............................................................	53
NOTE 20 - PREPAID EXPENSES ......................................................................................................................	54
NOTE 21 - CURRENT INCOME TAX ASSETS ................................................................................................	55
NOTE 22 - EMPLOYEE BENEFIT OBLIGATIONS .........................................................................................	55
NOTE 23 - OTHER ASSETS AND LIABILITIES..............................................................................................	55
NOTE 24 - EQUITY.............................................................................................................................................	56
NOTE 25 - SALES ...............................................................................................................................................	58
NOTE 26 - EXPENSES BY NATURE ................................................................................................................	59
NOTE 27 - OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES .....................................	60
NOTE 28 - INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES ................................................	61
NOTE 29 - FINANCIAL INCOME......................................................................................................................	61
NOTE 30 - FINANCIAL EXPENSES..................................................................................................................	61
NOTE 31 - TAX ASSETS AND LIABILITIES...................................................................................................	62
NOTE 32 - EARNINGS PER SHARE .................................................................................................................	64
NOTE 33 - RELATED PARTY DISCLOSURES ................................................................................................	65
NOTE 34 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT ..................................	67
NOTE 35 - FINANCIAL INSTRUMENTS .........................................................................................................	79
NOTE 36 - SUPPLEMENTARY CASH FLOW INFORMATION .....................................................................	81
NOTE 37 - EVENTS AFTER BALANCE SHEET DATE ..................................................................................	81

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(CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

ARÇELİK ANONİM ŞİRKETİ

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2021

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

		Audited
		December 31,	December 31,
	Notes	2021	2020
ASSETS
Current assets:
Cash and cash equivalents	5	16,014,589	12,002,246
Trade receivables
-Due from related parties	33	269,306	103,153
-Trade receivables, third parties	9	23,142,238	12,046,292
Derivative instruments	8	16,094	27,354
Inventories	11	16,828,699	7,095,622
Prepaid expenses	20	648,799	496,783
Current income tax assets	21	415,431	143,032
Other current assets	23	2,259,652	1,146,367

Total current assets		59,594,808	33,060,849
Non-current assets:
Financial investments	6	10,531	5,614
Trade receivables
-Trade receivables, third parties	9	45,865	68,225
Derivative instruments	8	19,157	-
Investments accounted for using the equity method	12	855,409	648,016
Property, plant and equipment	13	13,125,336	7,296,568
Intangible assets
-Goodwill	15	2,844,448	989,060
-Other intangible assets	14	6,573,315	3,563,944
Prepaid expenses	20	186,057	83,484
Deferred tax assets	31	1,823,680	833,284
Total non-current assets		25,483,798	13,488,195
Total assets		85,078,606	46,549,044

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

1

Sensitivity: Public

(CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

ARÇELİK ANONİM ŞİRKETİ

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2021

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

			Audited
		December 31,	December 31,
	Notes	2021	2020
LIABILITIES
Current liabilities:
Short-term borrowings	7	10,584,261	4,840,622
Short-term portion of long-term borrowings	7	2,459,839	5,390,255
Trade payables
-Due to related parties	33	1,592,704	995,829
-Trade payables, third parties	9	18,076,327	8,649,373
Derivative instruments	8	245,292	8,266
Employee benefit obligations	22	775,090	492,554
Other payables
-Other payables, third parties	10	1,245,608	726,074
Current income tax liabilities	31	55,292	7,736
Provisions
-Other provisions	18	2,087,963	977,478
Other current liabilities	23	3,379,248	1,738,729
Total current liabilities		40,501,624	23,826,916
Non-current liabilities:
Long-term borrowings	7	19,535,399	6,844,348
Provisions
-Provision for employee benefits	19	935,609	419,517
-Other provisions	18	439,072	289,640
Deferred tax liabilities	31	1,528,994	563,071
Other non-current liabilities	23	1,082,693	581,706
Total non-current liabilities		23,521,767	8,698,282
Total liabilities		64,023,391	32,525,198

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

2

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(CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

ARÇELİK ANONİM ŞİRKETİ

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2021

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

			Audited
		December 31,	December 31,
	Notes	2021	2020
EQUITY
Paid-in capital	24	675,728	675,728
Adjustment to share capital	24	468,811	468,811
Treasury shares	24	(1,215,266)	-
Share premium/discount		889	889
Other accumulated comprehensive income and
expense not to be reclassified to profit or loss
Gains/ losses on revaluation and remeasurement
-Gain/loss arising from defined
benefit plans		(396,514)	(298,280)
-Revaluation/ remeasurement of intangible
assets		6,900	-
-Other gains/ losses on revaluation and
remeasurement		6,109	4,918
Other accumulated comprehensive income and
expense to be reclassified to profit or loss
-Currency translation differences		11,381,483	5,225,745
Gains/ losses on hedge
-Gains/ losses on hedges of net investment
in foreign operations		(1,835,770)	(966,053)
-Gains/ losses on cash flow hedges		15,080	(3,072)
Gains/ losses on revaluation and reclassification
Balancing account for merger capital		14,507	14,507
Restricted reserves	24	1,771,002	409,115
Retained earnings		5,425,850	5,439,898
Net income for the period		3,064,674	2,847,839
Equity holders of the parent		19,383,483	13,820,045
Non-controlling interest		1,671,732	203,801
Total equity		21,055,215	14,023,846
Total liabilities and equity		85,078,606	46,549,044
Commitments, contingent assets and liabilities	17

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

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