VESTEL ELEKTRONİK SANAYİ VE TİCARET AŞ SUMMARY FINANCIAL STATEMENTS FOR THE PERIOD 01.01.2017-30.09.2017 (Originally issued in Turkish)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF BALANCE SHEETS AS OF 30 SEPTEMBER 2017 AND 31 DECEMBER 2016 Audited ASSETS Note 30.09.2017 31.12.2016 Current Assets 8,352,101 6,023,852 Cash and cash equivalents 5 1,596,751 1,264,003 Trade receivables 3,212,214 2,434,816 Related parties 8 35,147 38,045 Other parties 9 3,177,067 2,396,771 Other receivables 266,208 280,962 Related parties 8 -- 52,282 Other parties 10 266,208 228,680 Derivative financial instruments 61,076 150,982 Derivative financial instruments held for trading 27 57,019 44,454 Derivative financial instruments held for hedging 27 4,057 106,528 Inventories 11 3,115,324 1,817,869 Prepaid expenses 12 56,335 31,098 Current income tax assets 13,887 6,252 Other current assets 18 30,306 37,870 Non - Current Assets 4,249,322 3,627,363 Financial investments available for sale 6 43,897 11,896 Trade receivables 134,319 122,901 Other parties 9 134,319 122,901 Other receivables 1,440,111 1,123,117 Related parties 8 1,439,027 1,121,832 Other parties 10 1,084 1,285 Property, plant and equipment 1,773,738 1,642,927 Land and premises 13 277,111 241,478 Land improvements 13 57,480 58,799 Buildings 13 701,272 697,185 Machinery and equipment 13 576,531 527,529 Vehicles 13 889 1,212 Fixtures and fittings 13 84,085 83,128 Leasehold improvements 13 25,636 25,761 Construction in progress 13 50,732 7,832 Other 13 2 3 Intangible assets 634,509 593,018 Goodwill 197,793 197,793 Other rights 14 18,221 20,393 Capitalized development costs 14 365,439 331,486 Other 14 53,056 43,346 Prepaid expenses 12 76,492 63,501 Deferred tax asset 25 140,287 62,559 Other non-current assets 18 5,969 7,444 TOTAL ASSETS 12,601,423 9,651,215 2
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF BALANCE SHEETS AS OF 30 SEPTEMBER 2017 AND 31 DECEMBER 2016 Audited LIABILITIES AND SHAREHOLDERS' EQUITY Note 30.09.2017 31.12.2016 Current Liabilities 10,111,976 5,377,292 Short-term financial liabilities 1,543,853 342,397 Bank loans 7 1,542,930 318,694 Leasing debt 7 923 -- Other 7 -- 23,703 Short-term portion of long-term financial liabilities 2,325,192 518,099 Bank loans 7 2,325,192 518,099 Trade payables 5,379,191 3,683,188 Related parties 8 5,695 6,440 Other parties 9 5,373,496 3,676,748 Liabilities for employee benefits 17 110,080 91,229 Other payables 54,358 46,379 Related parties 8 4,996 -- Other parties 49,362 46,379 Derivative financial instruments 121,347 235,398 Derivative financial instruments held for trading 27 21,322 235,398 Derivative financial instruments held for hedging 27 100,025 -- Current income tax liabilities 25 1,079 3,959 Short-term provisions 15 335,785 275,367 Other current liabilities 18 241,091 181,276 Non - Current Liabilities 625,770 2,434,798 Long-term financial liabilities 409,830 2,233,073 Bank loans 7 402,542 2,228,870 Leasing debt 7 7,288 4,203 Trade payables 1,959 -- Long-term provisions 166,195 153,260 Provisions for employee benefits 17 82,489 76,463 Other long-term provisions 15 83,706 76,797 Deferred tax liability 25 41,359 48,465 Other non - current liabilities 6,427 -- Shareholders' Equity 1,863,677 1,839,125 Equity Attributable to Owners of Parent 1,803,117 1,779,236 Paid in capital 19 335,456 335,456 Adjustments to share capital 688,315 688,315 Share premium (Discount) 103,165 103,165 Other comprehensive income/expense that will not be reclassified to profit or loss 540,407 551,864 Revaluation gain/loss 540,407 551,864 Increases/(decreases) on revaluation of property, plant and equipment 19 552,178 561,662 Actuarial gain/ (loss ) arising from defined benefit plans (11,771) (9,798) Other comprehensive income/expense that will be reclassified to profit or loss 10,378 59,698 Exchange differences on translation 47,375 10,038 Gains/(losses) on hedges (40,897) 48,184 Gains/(losses) on revaluation and reclassification of financial assets available for sale 19 3,900 1,476 Restricted reserves 19 46,195 41,029 Accumulated deficit 19 4,027 (168,010) Net profit for the period 75,174 167,719 Non-Controlling Interests 60,560 59,889 TOTAL LIABILITIES AND EQUITY 12,601,423 9,651,215 3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME FOR THE PERIOD ENDED 30 SEPTEMBER 2017 AND 30 SEPTEMBER 2016 01.01-01.01- Note 30.09.2017 30.09.2016 Revenue 20 8,234,481 6,764,675 Cost of sales 20 (6,573,235) (5,307,908) Gross Profit 1,661,246 1,456,767 General & Administrative expenses 22 (205,658) (146,328) Marketing expenses 22 (1,008,307) (847,605) Research and development expenses 22 (132,609) (106,793) Other income from operating activities 23 683,511 277,948 Other expenses from operating activities 23 (598,821) (272,145) Operating Profit/Loss 399,362 361,844 Operating Profit Before Finance Income / (Expense) 399,362 361,844 Financial income 24 786,599 611,146 Financial expenses 24 (1,153,307) (677,618) Profit/Loss Before Tax 32,654 295,372 Tax benefit/(expense) 54,209 (13,695) Current tax benefit/(expense) 25 (8,013) (21,676) Deferred tax benefit/(expense) 25 62,222 7,981 Net Income/Loss for the Period 86,863 281,677 Attributable to: Non-controlling interests 11,689 15,288 Equity holders of the parent 75,174 266,389 4
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2017 AND 30 SEPTEMBER 2016 Note 01.01-01.01-30.09.2017 30.09.2016 Net Cash Provided by Operating Activities: 115,917 199,878 Net income/(loss) for the period 86,863 281,677 Adjustments to reconcile net profit/(loss) 477,748 425,457 Depreciation and amortization 13 271,699 239,487 Impairments 10,494 (22,116) Impairment on receivables 3,741 (24,605) Impairment on inventories 11 6,753 2,489 Provisions 85,541 43,035 Provisions for employee benefits 17 18,214 14,586 Provisions for lawsuits and/or penalties 15 (5,443) 970 Provisions for warranties 15 44,596 25,929 Other 28,174 1,550 Interest (income) expense 135,166 177,412 Interest income 24 (152,856) (84,057) Interest expense 24 288,022 261,469 Unrealized foreign exchange differences 120,014 44,364 Fair value gain/(loss) on derivative financial instruments (137,414) (68,634) Tax benefit/(expense) (54,209) 13,695 (Gain)/loss from sales of tangible assets (2,253) (1,686) Other 5 48,710 (100) Changes in working capital (417,843) (504,457) (Increase)/decrease in financial investments (32,001) (4,274) (Increase)/decrease in trade receivables (792,557) 275,453 Related parties 2,898 (7,753) Other parties (795,455) 283,206 (Increase)/decrease in other receivables (37,327) 154,176 (Increase)/decrease in inventories (1,305,172) 379,512 (Increase)/decrease in prepaid expenses (38,228) (27,612) Increase/(decrease) in trade payables 1,697,962 (1,323,523) Related parties (745) 4,333 Other parties 1,698,707 (1,327,856) Increase/(decrease) in employee benefits 18,851 (7,876) Increase/(decrease) in other payables and other liabilities 2,983 (2,659) Other 67,646 52,346 Other assests 1,404 20,265 Other liabilities 66,242 32,081 Cash flows from operating activities 146,768 202,677 Employment termination benefits paid 17 (14,683) (12,162) Current income tax paid 25 (16,168) 9,363 Net Cash From Investing Activities: (684,329) (635,185) Cash provided from sales of tangible and intangible assets 5,168 3,178 Tangible assets 5,168 3,178 Cash outflows from acqusition of tangible and intangible assets (424,584) (256,585) Tangible assets 13 (310,575) (160,162) Intangible assets 14 (114,009) (96,423) Cash advances and loans made to related parties 8 (264,913) (381,778) Net Cash From Financing Activities: 925,661 484,093 5
Proceeds from bank borrowings 1,871,860 1,626,031 Repayment of borrowings (912,627) (992,030) Bank borrowings (892,932) (992,030) Other (19,695) -- Increase in other payables to related parties 4,996 -- Dividends paid (9,461) (7,042) Interest paid (181,963) (226,923) Interest received 152,856 84,057 Net increase/(decrease) in cash and cash equivalents before foreign currency translation differences 357,249 48,786 Effect of currency translation differences on cash and cash equivalents 24,209 (17,168) Net increase/(decrease) in cash and cash equivalents 381,458 31,618 Cash and cash equivalents at the beginning of the period 5 1,210,714 675,290 Cash and cash equivalents at the end of the period 1,592,172 706,908 6