Dogan Sirketler Grubu : 01 July - 30 September (3rd Quarter)

CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS

ORIGINALLY ISSUED IN TURKISH

DOĞAN ŞİRKETLER GRUBU HOLDİNG A.Ş.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD ENDED 1 JANUARY - 30 SEPTEMBER 2022

DOĞAN ŞİRKETLER GRUBU HOLDİNG A.Ş.
CONTENTS	PAGES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION..........................................	1-2
CONSOLIDATED STATEMENT OF PROFIT OR LOSS....................................................	3
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME ................	4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...........................................	5-6
CONSOLIDATED STATEMENT OF CASH FLOW.............................................................	7-8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ....................................	9-135
NOTE 1	ORGANIZATION AND NATURE OF OPERATIONS ........................................................................	9-11
NOTE 2	BASIS OF PRESENTATION OF FINANCIAL STATEMENTS ..........................................................	12-49
NOTE 3	BUSINESS COMBINATIONS...............................................................................................................	50-56
NOTE 4	INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD ..................................................	57-62
NOTE 5	SEGMENT REPORTING.......................................................................................................................	63-69
NOTE 6	CASH AND CASH EQUIVALENTS ....................................................................................................	70
NOTE 7	FINANCIAL INVESTMENTS...............................................................................................................	71-72
NOTE 8	SHORT AND LONG TERM FINANCIAL BORROWINGS ................................................................	73-77
NOTE 9	TRADE RECEIVABLES AND PAYABLES.........................................................................................	77-78
NOTE 10	RECEIVABLES AND PAYABLES FROM FINANCE SECTOR OPERATIONS ...............................	79-80
NOTE 11	OTHER RECEIVABLES AND PAYABLES.........................................................................................	81
NOTE 12	INVENTORIES ......................................................................................................................................	82
NOTE 13	BIOLOGICAL ASSETS .........................................................................................................................	82
NOTE 14	INVESTMENT PROPERTIES ...............................................................................................................	83-84
NOTE 15	PROPERTY, PLANT AND EQUIPMENT ............................................................................................	85-86
NOTE 16	INTANGIBLE ASSETS .........................................................................................................................	87-89
NOTE 17	RIGHT OF USE ASSETS.......................................................................................................................	89-90
NOTE 18	GOVERNMENT GRANTS ....................................................................................................................	90
NOTE 19	PROVISIONS, CONTINGENT ASSETS AND LIABILITIES .............................................................	91-93
NOTE 20	COMMITMENTS...................................................................................................................................	94-95
NOTE 21	OTHER ASSETS ....................................................................................................................................	96
NOTE 22	PREPAID EXPENSES AND DEFERRED INCOME ............................................................................	96-97
NOTE 23	DERIVATIVE INSTRUMENTS ............................................................................................................	97
NOTE 24	PROVISION FOR EMPLOYMENT BENEFITS ...................................................................................	98-99
NOTE 25	EQUITY..................................................................................................................................................	100-104
NOTE 26	REVENUE AND COST OF SALES ......................................................................................................	105-109
NOTE 27	RESEARCH AND DEVELOPMENT EXPENSES, MARKETING EXPENSES AND
	GENERAL ADMINISTRATIVE EXPENSES.......................................................................................	109-110
NOTE 28	EXPENSES BY NATURE .....................................................................................................................	110
NOTE 29	OTHER INCOME AND EXPENSES FROM OPERATING ACTIVITIES ..........................................	110-111
NOTE 30	INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES......................................................	111
NOTE 31	FINANCE EXPENSES...........................................................................................................................	112
NOTE 32	ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS AND
	LIABILITES RELATED TO ASSET GROUPS CLASSIFIED AS HELD FOR SALE........................	112
NOTE 33	INCOME TAXES ...................................................................................................................................	113-117
NOTE 34	EARNING/LOSS PER SHARE..............................................................................................................	117
NOTE 35	RELATED PARTY DISCLOSURES .....................................................................................................	118-120
NOTE 36	FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES................................................	120-131
NOTE 37	FINANCIAL INSTRUMENTS...............................................................................................................	132-133
NOTE 38	SHARES IN OTHER OPERATIONS ....................................................................................................	133
NOTE 39	SUBSEQUENT EVENTS.......................................................................................................................	134-135

DOĞAN ŞİRKETLER GRUBU HOLDİNG A.Ş.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated. Currencies other than TRY, expressed in thousands unless otherwise indicated.)

		Unaudited	Audited
		Current Period	Prior Period
ASSETS	Notes	30 September 2022	31 December 2021
Current assets		28,604,558	15,513,672
Cash and cash equivalents	6	5,135,584	4,646,127
Financial investments	7	9,389,119	5,076,315
Trade receivables
- Due from related parties	35	23,156	5,136
- Due from non-related parties	9	3,907,961	1,825,475
Receivables from finance sector operations
- Due from related parties	10, 35	-	44,064
- Due from non-related parties	10	1,671,842	1,159,490
Balances with the Central Bank of
the Republic of Turkey	6	67,890	130,280
Other receivables
- Due from non-related parties	11	244,916	74,528
Inventories	12	4,824,145	2,042,478
Prepaid expenses	22	969,995	196,923
Derivative instruments	23	99,114	46,920
Biological assets	13	16,449	15,249
Other current assets	21	400,731	250,387
Non-current assets classified
as held for sale	32	1,853,656	300
Non-current assets		10,119,181	6,781,066
Trade receivables
- Due from non-related parties	9	11,945	14,742
Receivables from finance sector operations
- Due from non-related parties	10	-	14,304
Financial investments	7	949,144	364,930
Investments accounted for
by the equity method	4	461,298	264,140
Investment properties	14	1,483,426	2,005,201
Property, plant and equipment	15	3,287,087	2,035,484
Intangible assets
- Other intangible assets	16	2,336,617	1,228,999
- Goodwill	16	411,926	108,843
Rights of use assets	17	476,845	359,761
Prepaid expenses	22	52,635	57,482
Derivative instruments	23	64,309	-
Deferred tax asset	33	526,266	138,916
Other non-current assets	21	57,683	188,264
Total assets		38,723,739	22,294,738

The consolidated financial statements as of and for the period ended 30 September 2022 have been approved by the Board of Directors on 8 November 2022.

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

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DOĞAN ŞİRKETLER GRUBU HOLDİNG A.Ş.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2022

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated. Currencies other than TRY, expressed in thousands unless otherwise indicated.)

		Unaudited	Audited
LIABILITIES	Notes	Current Period	Prior Period
30 September 2022	31 December 2021
Short-term liabilities		14,289,330	5,932,448
Short-term borrowings
- Short-term borrowings from non-related parties	8	6,819,710	2,232,362
- Bank borrowings
- Issued debt instruments	8	799,970	270,161
Short-term portion of long- term borrowings
- Short-term portion of long term borrowings from related parties	8, 35	19,973	9,574
- Lease borrowings
- Short-term portion of long- term borrowings from non-related parties	8	1,253,263	651,787
- Bank borrowings
- Lease borrowings	8	101,588	55,301
Trade payables	35	3,464	2,835
- Due to related parties
- Due to non-related parties	9	3,565,094	1,913,270
Payables from finance sector operations	10	314,918	7,908
- Due to non-related parties
Payables related to	24	120,078	58,242
employee benefits
Deferred income (Except obligations arising from customer contracts)
- Deferred income from non-related parties	22	388,690	123,015
(Except obligations arising from customer contracts)
Derivative instruments	23	9,642	17,776
Other payables	3, 35	-	27,107
- Due to related parties
- Due to non-related parties	11	255,440	94,533
Liabilities related to asset groups classified as held for sale	33	83,949	-
Current income tax liability	115,329	411,958
Short-term provisions
- Short-term provisions for	24	85,168	32,497
employment benefits
- Other short-term provisions	19	325,837	23,683
Other short term liabilities		27,217	439
Long-term liabilities		3,643,889	2,042,610
Long-term borrowings
- Long-term borrowings from related parties	8, 35	9,783	12,839
- Lease borrowings
- Long -term borrowings from non-related parties	8	2,070,823	1,207,435
- Bank borrowings
- Lease borrowings	8	396,163	217,841
Investments accounted for	4	171,301	107,111
by the equity method
Other payables	11	87,290	5,149
- Due to non-related parties
Deferred income (Except obligations arising from customer contracts)
- Deferred income from non-related parties	22	24,442	19,956
(Except obligations arising from customer contracts)
Long-term provisions
- Long-term provisions for	24	187,627	103,326
employment benefits
- Other long term provisions	23	6,444	6,496
Derivative instruments	12,463	-
Deferred tax liability	33	677,553	362,457
EQUITY		20,790,520	14,319,680
Equity attributable to equity holders of the parent company		17,791,312	12,905,136
Share capital	25	2,616,938	2,616,938
Adjustments to share capital	25	143,526	143,526
Repurchased shares (-)	25	(59,533)	(59,533)
Share premiums (discounts)	25	35,159	35,159
Other comprehensive income (losses) that
will not be reclassified in profit or loss
- Actuarial gains (losses) on	25	(29,422)	(29,422)
defined benefit plans
Shares not classified as profit or loss
from other comprehensive income of		(1,347)	(1,347)
investments accounted for by equity method
Other comprehensive income (losses) that
will be reclassified in profit or loss	25	3,315,295	2,155,915
- Change in currency translation reserves
- Gain (loss) on revaluation and reclassification	25	(169,837)	(86,948)
of financial assets held for sale
Restricted reserves	25	1,867,062	1,020,689
Retained earnings or accumulated losses		5,940,204	4,281,683
Net profit or loss for the period		4,133,267	2,828,476
Non-controlling interests		2,999,208	1,414,544
Total liabilities		38,723,739	22,294,738

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

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DOĞAN ŞİRKETLER GRUBU HOLDİNG A.Ş.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE INTERIM PERIODS 1 JANUARY - 30 SEPTEMBER 2022 AND 2021

(Amounts expressed in thousands of Turkish Lira ("TRY") unless otherwise indicated. Currencies other than TRY, expressed in thousands unless otherwise indicated.)

		Unaudited	Unaudited	Unaudited	Unaudited
		Current Period	Current Period	Prior Period	Prior Period
		1 January -	1 July -	1 January -	1 July -
	Notes	30 September 2022	30 September 2022	30 September 2021	30 September 2021
Profit or Loss
Revenue	26	30,347,715	12,846,077	11,020,387	4,609,305
Revenue From Finance Sector Operations	26	497,629	227,469	161,742	55,673
Total Revenue	26	30,845,344	13,073,546	11,182,129	4,664,978
Cost of Sales (-)	26	(26,613,793)	(11,597,511)	(9,748,598)	(4,083,277)
Revenue From Finance Sector Operations	26	(304,561)	(147,018)	(89,101)	(30,690)
Total Cost of Sales	26	(26,918,354)	(11,744,529)	(9,837,699)	(4,113,967)
Gross Profit/(Loss) (Non-Finance)	26	3,733,922	1,248,566	1,271,789	526,028
Gross Profit/(Loss) (Finance)	26	193,068	80,451	72,641	24,983
Gross Profit (Loss)	26	3,926,990	1,329,017	1,344,430	551,011
Research and Development Expenses (-)	27	(21,744)	(17,808)	(5,373)	(1,570)
General Administrative Expenses (-)	27	(536,610)	(210,201)	(267,627)	(87,980)
Marketing Expenses (-)	27	(916,391)	(355,853)	(476,808)	(192,992)
Other Income From Operating Activities	29	2,194,363	840,829	575,999	101,018
Other Expenses From Operating Activities (-)	29	(414,687)	(215,158)	(187,818)	(35,700)
Share of Gain (Loss) on Investments
Accounted for by the Equity Method	4	133,038	2,855	(5,124)	3,007
Operating Profit/(Loss)		4,364,959	1,373,681	977,679	336,794
Income from Investment Activities	30	2,555,238	1,545,688	572,579	93,095
Expenses from Investment Activities (-)	30	(414,729)	(348,357)	(11,808)	(152)
Operating Profit (Loss) Before
Finance (Expense)/Income		6,505,468	2,571,012	1,538,450	429,737
Finance Expense (-)	31	(1,471,063)	(601,884)	(401,924)	(99,123)
Profit/(Loss) Before Taxation
From Continued Operations		5,034,405	1,969,128	1,136,526	330,614
Tax Expense From
Continued Operations	33	(200,971)	(131,799)	(306,679)	(195,478)
Tax Income/(Expense) for the Period		(495,863)	(102,573)	(285,852)	(174,850)
Deferred Tax Income/(Expense)		294,892	(29,226)	(20,827)	(20,628)
Profit/(Loss) For The Period		4,833,434	1,837,329	829,847	135,136
Allocation of Profit/(Loss)
For The Period
Attributable to Non-Controlling Interests		700,167	198,722	109,960	46,367
Attributable to Equity Holders of the
Parent Company		4,133,267	1,638,607	719,887	88,769
Gain/(Loss) Per Share Attributable
to Equity
Holders of the Parent Company	34	1.596	0.633	0.277	0.034

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

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