Tekfen Anonim Sirketi : Financial Statement

TEKFEN HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH INTERIM PERIOD

ENDED 30 SEPTEMBER 2022

(Translated into English from the report originally issued in Turkish)

CONTENT		PAGE
CONDENSED CONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
AS AT 30 SEPTEMBER 2022 ..................................................................................................................	1-2
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH
INTERIM PERIOD ENDED 30 SEPTEMBER 2022 ................................................................................	3
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR
THE NINE MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2022 ..............................................	4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE
MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2022 .................................................................	5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE NINE MONTH
INTERIM PERIOD ENDED 30 SEPTEMBER 202...................................................................................	6
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE
MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2022 .................................................................	7-42
NOTE 1	ORGANIZATION AND OPERATIONS OF THE GROUP ..................................................	7
NOTE 2	BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED
	FINANCIAL STATEMENTS ................................................................................................	7
NOTE 3	ADOPTION OF NEW AND REVISED STANDARDS ........................................................	8
NOTE 4	EVENTS AND TRANSACTIONS MATERIALLY AFFECTING THE CONDENSED
	CONSOLIDATED FINANCIAL STATEMENTS .................................................................	8-11
NOTE 5	SIGNIFICANT CHANGES IN EQUITY ...............................................................................	11
NOTE 6	SEGMENT REPORTING ......................................................................................................	12-18
NOTE 7	CASH AND CASH EQUIVALENTS .....................................................................................	19
NOTE 8	TRADE RECEIVABLES AND PAYABLES ..........................................................................	19-20
NOTE 9	CONTRACT ASSETS AND LIABILITIES ARISING FROM ONGOING
	CONSTRUCTION WORKS ..................................................................................................	20-21
NOTE 10	INVENTORIES ......................................................................................................................	21
NOTE 11	INVESTMENTS VALUED BY EQUITY METHOD ...........................................................	22-25
NOTE 12	PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS,
	INVESTMENT PROPERTY AND RIGHT-OF-USE ASSETS ...........................................	26-28
NOTE 13 SHORT AND LONG-TERM BORROWINGS.......................................................................	29
NOTE 14 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES ...............................................	29-31
NOTE 15	COMMITMENTS ...................................................................................................................	31-32
NOTE 16	SIGNIFICANT RELATED PARTY TRANSACTIONS .......................................................	32
NOTE 17	EQUITY................................................................................................................... ................	33
NOTE 18	EARNINGS PER SHARE ......................................................................................................	33
NOTE 19	OTHER OPERATING INCOME AND EXPENSES .............................................................	34
NOTE 20	FINANCIAL INCOME AND EXPENSES ............................................................................	34
NOTE 21	DERIVATIVE INSTRUMENTS ...........................................................................................	35
NOTE 22	FOREIGN CURRENCY POSITION .....................................................................................	36-38
NOTE 23	FINANCIAL INSTRUMENTS ..............................................................................................	39-42
NOTE 24	SUBSEQUENT EVENTS ......................................................................................................	42

TEKFEN HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2022

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

		Unreviewed	Audited
		30 September	31 December
ASSETS	Notes	2022	2021
Current Assets		23.258.933	15.407.337
Cash and cash equivalents	7	4.145.651	5.064.108
Financial investments	4	3.087.342	51.845
Trade receivables	8	4.713.157	2.814.220
- Related party receivables		50.326	50.462
- Trade receivables		4.662.831	2.763.758
Other receivables		118.824	101.659
- Related party receivables		232	-
- Other receivables		118.592	101.659
Contract assets arising from ongoing construction works	9	2.050.186	1.863.471
Derivative instruments	21	83.913	249.886
Inventories	10	7.538.352	3.952.236
Prepaid expenses		691.152	349.216
- Prepaid expenses		691.152	349.216
Assets related to current tax		337.230	434.363
Other current assets		432.474	476.648
- Other current assets		432.474	476.648
		23.198.281	15.357.652
Assets classified as held for sale		60.652	49.685
Non-Current Assets		8.792.096	6.506.236
Financial investments	23	2.753.261	1.866.285
Trade receivables	8	439.354	184.737
- Trade receivables		439.354	184.737
Other receivables		48.906	14.025
- Other receivables		48.906	14.025
Investments valued by equity method	11	164.115	95.625
Investment property	12	230.161	168.024
Property, plant and equipment	12	4.231.198	3.441.525
Right-of-use assets	12	43.145	62.194
Intangible assets	12	161.630	150.699
- Goodwill		102.911	95.687
- Other intangible assets		58.719	55.012
Prepaid expenses		66.546	52.255
- Prepaid expenses		66.546	52.255
Deferred tax assets		586.455	436.525
Other non-current assets		67.325	34.342
- Other non-current assets		67.325	34.342
TOTAL ASSETS		32.051.029	21.913.573

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

Translated into English from the report originally issued in Turkish.

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TEKFEN HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2022

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

			Unreviewed		Audited
			30 September		31 December
LIABILITIES	Notes		2022		2021
Current Liabilities		20.892.240	13.073.283
Short-term borrowings	13	5.061.601	3.088.485
Short-term portion of long-term borrowings		126.755	88.282
Trade payables	8	10.107.764	6.832.598
- Related party payables		35.301	10.174
- Trade payables		10.072.463	6.822.424
Payables related to employee benefits		164.621	126.891
Other payables		218.419	117.262
- Related party payables		20	-
- Other payables		218.399	117.262
Contract liabilities arising from ongoing construction works	9	1.123.289	457.701
Derivative instruments	21	418.367	198.465
Deferred revenue		2.552.284	880.956
- Deferred revenue		2.552.284	880.956
Current tax liability		239.620	499.325
Short-term provisions	14	874.227	777.228
- Short-term provisions attributable to employee benefits		224.767	260.389
- Other short-term provisions		649.460	516.839
Other short-term liabilities		5.293	6.090
- Other short-term liabilities		5.293	6.090
Non-Current Liabilities		1.485.955	1.114.830
Long-term borrowings	13	287.861	324.786
Trade payables	8	326.556	218.075
- Trade payables		326.556	218.075
Other payables		125.299	86.305
- Other payables		125.299	86.305
Deferred revenue		231	231
- Deferred revenue		231	231
Long-term provisions	14	375.056	288.417
- Long-term provisions attributable to employee benefits		374.952	288.362
- Other long-term provisions		104	55
Deferred tax liabilities		370.952	197.016
TOTAL LIABILITIES		22.378.195	14.188.113
EQUITY		9.672.834	7.725.460
Equity Attributable To Owners Of The Parent	5, 17	9.510.048	7.595.637
Paid in capital		370.000	370.000
Capital structure adjustment		3.475	3.475
Premiums in capital stock		300.984	300.984
Accumulated other comprehensive income		(528.129)	(359.392)
that will not be reclassified to profit or loss
- Gain on investments in equity instruments		(533.972)	(362.986)
- Gain on revaluation and remeasurement		5.843	3.594
Accumulated other comprehensive income		3.314.347	2.770.245
that will be reclassified to profit or loss
- Currency translation reserve		3.401.341	2.577.869
- Hedging reserve		(86.994)	192.376
Legal reserves		563.375	397.716
Prior years' income		3.672.851	3.273.381
Net profit for the period		1.813.145	839.228
Non-controlling Interests			162.786		129.823
TOTAL LIABILITIES AND EQUITY		32.051.029	21.913.573

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

Translated into English from the report originally issued in Turkish.

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TEKFEN HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2022

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

		Unreviewed	Unreviewed	Unreviewed	Unreviewed
		1 January-	1 July-	1 January -	1 July-
		30 September	30 September	30 September	30 September
	Notes	2022	2022	2021	2021
Revenue	6	21.218.111	8.222.965	11.020.384	3.598.842
Cost of revenue (-)		(18.487.732)	(7.236.121)	(9.482.300)	(3.157.457)
GROSS PROFIT (LOSS)		2.730.379	986.844	1.538.084	441.385
General administrative expenses (-)		(629.300)	(210.803)	(449.326)	(131.481)
Marketing expenses (-)		(579.148)	(243.642)	(234.475)	(64.509)
Research and development expenses (-)		(19.496)	(6.269)	(17.330)	(4.156)
Other operating income	19	2.203.773	801.552	389.130	148.202
Other operating expenses (-)	19	(2.739.738)	(930.275)	(580.475)	(176.785)
Share on profit of investments valued
by equity method	11	41.332	23.204	93.103	52.165
OPERATING PROFIT (LOSS)		1.007.802	420.611	738.711	264.821
Investment income	4	729.777	247.568	404.151	144.223
Investment expense (-)		(128.137)	(13.688)	(22.105)	(527)
PROFIT BEFORE FINANCIAL
INCOME (EXPENSE)		1.609.442	654.491	1.120.757	408.517
Financial income	20	1.414.287	297.681	765.264	221.081
Financial expenses (-)	20	(973.423)	(238.693)	(429.271)	(164.060)
PROFIT FROM CONTINUING OPERATIONS
BEFORE TAXATION		2.050.306	713.479	1.456.750	465.538
Tax (Expense) Income from Continuing Operations		(255.538)	15.127	(257.581)	8.644
Tax expense for the period (-)		(180.021)	(90.203)	(313.979)	(70.023)
Deferred tax (expense) income		(75.517)	105.330	56.398	78.667
PROFIT FROM CONTINUING OPERATIONS		1.794.768	728.606	1.199.169	474.182
FOR THE PERIOD
Distribution of Profit for the Period
Non-controlling interests		(18.377)	(6.931)	6.636	10.997
Owners of the parent	18	1.813.145	735.537	1.192.533	463.185
Earnings Per Share	18	4,900	1,988	3,223	1,252

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

Translated into English from the report originally issued in Turkish.

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