Net : 31.03.2021 Financial Statements

NET HOLDİNG ANONİM ŞİRKETİ

AND IT'S SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD ENDED AT 31 MARCH 2021

CONTENTS		PAGE
Consolidated Balance Sheets…………………………………………………………………………………………	1-2
Consolidated Statements of Income ………………………………………………………………………………	3
Consolidated Statements of Other Comprehensive Income………………………………………………………	4
Consolidated Statements of Change in Shareholder's Equity ……………………………………………………	5
Consolidated Statements of Cash Flow ……………………………………………………………………………	6-7
Notes to the Consolidated Financial Statements …………………………………………………………………	8-103
NOTE 1	Organization and Nature Of Activities………………………………………………………………..	8
NOTE 2	Basis of the Consolidated Financial Statement…………………………………………………………	9-30
NOTE 3	Business Mergers and Subject to Joint Control and Joint Ventures……………………………………	30
NOTE 4	Shares in Other Companies……………………………………………………………………………	31-36
NOTE 5	Report by Segments……………………………………………………………………………………	36-43
NOTE 6	Related Party Disclosures………………………………………………………………………………	43-47
NOTE 7	Cash And Cash Equivalents……………………………………………………………………………	47-49
NOTE 8	Financial Investments, net………………………………………………………………………………	49-50
NOTE 9	Financial Borrowings, net………………………………………………………………………………	51
NOTE 10	Trade Receivables and Payables………………………………………………………………………	52-53
NOTE 11	Receivables and Payables from Finance Sector Activities……………………………………………	54
NOTE 12	Other Receivables and Payables………………………………………………………………………	55-57
NOTE 13	Payables from Employee Benefits……………………………………………………………………	58
NOTE 14	Inventories………………………………………………………………………………………………	58-59
NOTE 15	Prepaid Expenses and Deferred Income………………………………………………………………	59-60
NOTE 16	Investments Consolidated by Equity Pick Up Method…………………………………………………	60-62
NOTE 17	Right of Use Assets……………………………………………………………………………………	62
NOTE 18	Investment Properties…………………………………………………………………………………	63
NOTE 19	Tangible Fixed Assets…………………………………………………………………………………	64
NOTE 20	Intangible Fixed Assets, net……………………………………………………………………………	65
NOTE 21	Government Incentives and Grants……………………………………………………………………	66
NOTE 22	Commitments and Contingent Assets and Liabilities …………………………………………………	67-68
NOTE 23	Commitments…………………………………………………………………………………………	69
NOTE 24	Provisions for Employee Benefits………………………………………………………………………	69
NOTE 25	Other Assets……………………………………………………………………………………………	70
NOTE 26	Shareholders' Equity……………………………………………………………………………………	70-74
NOTE 27	Sales and Cost of Sales…………………………………………………………………………………	74
NOTE 28	General Administrative Expenses and Marketing Expenses……………………………………………	75
NOTE 29	Expenses According to Qualifıcations…………………………………………………………………	76
NOTE 30	Other Operating Income / Expenses……………………………………………………………………	77
NOTE 31	Investment Activities Income / Expenses………………………………………………………………	78
NOTE 32	Financial Income / (Expenses)…………………………………………………………………………	78-79
NOTE 33	Current Assets Held for Sale and Discontinued Operations……………………………………………	79-80
NOTE 34	Tax Assets and Liabilities (Including Deferred Tax Assets and Liabilities)……………………………	81-86
NOTE 35	Earnings Per Share……………………………………………………………………………………	86
NOTE 36	Exposure to Financial Risks Due to Financial Instrument……………………………………………	87-95
NOTE 37	Financial Instruments (Fair Value Disclosures and Hedge Accounting Disclosures)…………	96-98
NOTE 38	Post Balance Sheet Events…………………………………………………………………………….	98
NOTE 39	Other Issues Affecting the Consolidated Financial Statements Significantly or Required to be	99-103
Disclosed for Clear, Understandable and Interpretable Presentation .............................................

NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2021 AND 31 DECEMBER 2020

(Currency - Turkish Lira unless otherwise expressed.)

		Current Period	Prior Period
		Non-Reviewed	Audited
	Footnote
	References	31.03.2021	31.12.2020
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	7	220,925,149	332,659,077
Financial Investments	8	75,706,137	78,701,349
Trade Receivables		156,713,034	124,317,208
- Trade receivables from related parties	10	16,826,672	306,806
- Trade receivables from other parties	10	139,886,362	124,010,402
Receivables From Finance Sector	11	9,674,883	8,465,495
Other Receivables		4,417,487	4,083,698
- Other receivables from related parties	12	1,291,302	1,216,125
- Other receivables from other parties	12	3,126,185	2,867,573
Inventories	14	33,839,267	36,142,998
Prepaid Expenses	15	23,631,163	20,457,066
Assets Relevant to Current Period Taxes	34	36,379,468	37,263,097
Other Current Assets	25	17,055,811	14,373,668
TOTAL CURRENT ASSETS		578,342,399	656,463,656
NON-CURRENT ASSETS
Financial Investments	8	3,068,570	3,068,570
Other Receivables		9,165,784	8,709,962
- Other receivables from related parties	12	7,784,325	7,397,747
- Other receivables from other parties	12	1,381,459	1,312,215
Investments Evaluated by Equity Pick-up Method	16	189,222,757	167,016,632
Investment Properties	18	1,644,530,814	1,644,250,814
Tangible Fixed Assets	19	4,621,993,418	4,622,754,706
Right of Use Assets	17	313,817,430	264,103,863
Intangible Fixed Assets	20	4,285,178	3,095,874
Prepaid Expenses	15	96,455,421	88,233,405
Deferred Tax Assets	34	169,372,202	104,173,966
Other Non-Current Assets	25	11,706,620	12,227,186
TOTAL NON-CURRENT ASSETS		7,063,618,194	6,917,634,978
TOTAL ASSETS		7,641,960,593	7,574,098,634

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2021 AND 31 DECEMBER 2020

(Currency - Turkish Lira unless otherwise expressed.)

		Current Period	Prior Period
		Non-Reviewed	Audited
	Footnote
	References	31.03.2021	31.12.2020
LIABILITIES
CURRENT LIABILITIES
Financial Borrowings	9	193,778,549	144,720,378
Current Installment of Long Term Financial Borrowings	9	672,665,135	495,755,336
Trade Payables		135,413,300	147,614,344
- Trade payables due to related parties	10	2,091,866	515,911
- Trade payables due to other parties	10	133,321,434	147,098,433
Liabilities from Finance Sector	11	9,553,742	8,417,656
Employee Benefit Liabilities	13	2,598,107	21,327,186
Other Payables		7,562,429	11,292,824
- Other payables due to related parties	12	2,996,144	2,872,612
- Other payables due to other parties	12	4,566,285	8,420,212
Deferred Income	15	37,669,669	10,090,912
Current Tax Liabilities	34	1,007,831	4,619,085
Current Provisions		2,327,774	2,655,450
- Provision for employee benefits	24	1,824,767	2,152,443
- Other current provisions	22	503,007	503,007
TOTAL CURRENT LIABILITIES		1,062,576,536	846,493,171
NON-CURRENT LIABILITIES
Financial Borrowings	9	1,421,939,844	1,435,410,176
Trade Payables	10	3,066,425	5,941,408
Other Payables	12	573,191	507,565
Deferred Income	15	77,071	129,311
Non-Current Provisions		6,886,904	6,564,992
- Provision for employee benefits	24	6,886,904	6,564,992
Deferred Tax Liabilities	34	1,156,585,479	1,136,919,644
TOTAL NON-CURRENT LIABILITIES		2,589,128,914	2,585,473,096
TOTAL CURRENT AND NON-CURRENT LIABILITIES		3,651,705,450	3,431,966,267
SHAREHOLDERS' EQUITY
Parent Company's Equity		3,885,178,658	4,041,110,361
Paid In Capital	26.1	563,875,937	563,875,937
Inflationary Adjustments of Shareholder's Equity	26.1	410,912,684	410,912,684
Treasury Shares	26.10	(503,638,432)	(503,638,432)
Share Premiums (Discounts)	26.2	(53,744,105)	(53,739,327)
Not to Be Reclassified on Profit or Loss
Other Comprehensive Income or Expense
-Revaluation of Tangible Fixed Assets
Increases (Decreases)	26.9	2,558,347,830	2,572,364,188
- Gain (Losses) on Remeasurements on Defined Benefit
Plans	26.7	(1,652,794)	(1,283,894)
- Other Revaluation and Measurement Gains (Losses)	26.4	23,474,759	23,474,759
Other Comprehensive Income or Expense
To Be Reclassified on Profit or Loss
- Foreign Currency Conversion Differences	26.5	294,538,273	253,905,628
Restricted Reserves	26.3	534,628,501	534,628,501
Retained Earnings or Losses	26.8	263,309,953	730,122,985
Net Profit or Loss for the Period	35	(204,873,948)	(489,512,668)
Minority Interests	26.6	105,076,485	101,022,006
TOTAL SHAREHOLDERS' EQUITY		3,990,255,143	4,142,132,367
TOTAL LIABILITIES		7,641,960,593	7,574,098,634

The explanatory notes are an integral part of these statements.

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NET HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE PERIODS ENDED AT 31 MARCH 2021 AND 2020

(Currency - Turkish Lira unless otherwise expressed.)

		Current Period	Prior Period
		Non-ReviewedNon-Reviewed
	Footnote	01.01.-	01.01.-
	References	31.03.2021	31.03.2020
OPERATING ACTIVITIES
Sales	27.1	46,265,619	175,508,728
Cost of Sales	27.2	(67,648,567)	(142,101,442)
GROSS PROFIT (LOSS)		(21,382,948)	33,407,286
General Administrative Expenses	28.1	(17,771,622)	(32,644,762)
Marketing Expenses	28.2	(3,952,118)	(5,764,789)
Other Operating Income	30.1	29,237,899	16,567,545
Other Operating Expenses	30.2	(47,458,835)	(28,302,997)
OPERATING PROFIT (LOSS)		(61,327,624)	(16,737,717)
Investment Activities Income	31.1	2,265,751	6,450,077
Investment Activities Expenses	31.2	(432,000)	(1,586)
Share of Profit (Loss) from Investments Evaluated by
Equity Pick-Up Method	16	(80,204)	(15,515)
OPERATING ACTIVITY PROFIT (LOSS)
BEFORE FINANCIAL INCOME (EXPENSE)		(59,574,077)	(10,304,741)
Financial Income	32.1	23,709,033	31,301,770
Financial Expenses	32.2	(215,040,988)	(148,587,581)
OPERATING ACTIVITY PROFIT / (LOSS) BEFORE
TAXATION		(250,906,032)	(127,590,552)
Operating Activity Tax Income / (Expense)		44,491,707	7,498,608
Current Tax (Expense) Income	34	(1,007,831)	(8,319,234)
Deferred Tax (Expense) Income	34	45,499,538	15,817,842
OPERATING ACTIVITY PROFIT (LOSS) FOR THE
PERIOD		(206,414,325)	(120,091,944)
DISCONTINUED OPERATIONS PROFIT (LOSS)
FOR THE PERIOD	33.2	(59,643)	(58,447)
PROFIT (LOSS) FOR THE PERIOD		(206,473,968)	(120,150,391)
Minority Interests	26.6	(1,600,020)	1,542,831
Parent Company's Share	35	(204,873,948)	(121,693,222)
Earnings Per Share		(0.363332)	(0.215816)
Earnings per Share From Operating Activities		(0.363226)	(0.215712)
Earnings per Share From Discontinued Operations		(0.000106)	(0.000104)

The explanatory notes are an integral part of these statements.

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