Aksa Enerji Üretim : 31.03.2024 CMB Report

AKSA ENERJİ ÜRETİM A.Ş.

AND ITS SUBSIDIARIES

Interim Condensed Consolidated Financial

Statements For The Three-Month Period

Ended 31 March 2024

INDEX		PAGE
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	1-3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS	4
INTERIM CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME	5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	6
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	7
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	8-53
NOTE 1	ORGANIZATION AND OPERATIONS OF THE GROUP	8-12
NOTE 2	BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS	13-22
NOTE 3	OPERATING SEGMENTS	23
NOTE 4	RELATED PARTY DISCLOSURE	24-27
NOTE 5	FINANCIAL INVESTMENTS	28
NOTE 6	TRADE RECEIVABLES AND PAYABLES	28-29
NOTE 7	BORROWINGS	29-31
NOTE 8	PROPERTY, PLANT AND EQUIOMENT	31-34
NOTE 9	RIGHT OF USE ASSETS	34-35
NOTE 10	COMMITMENTS	35-36
NOTE 11	SHARE CAPITAL, RESERVES AND OTHER EQUITY ITEMS	37-39
NOTE 12	REVENUE	39
NOTE 13	FINANCIAL INCOME	40
NOTE 14	FINANCIAL EXPENSES	40
NOTE 15	TAXATION	40-42
NOTE 16	EARNINGS PER SHARE	42
NOTE 17	FINANCIAL INSTRUMENTS	43-44
NOTE 18	NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS	45-51
NOTE 19	FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND EXPLANATION ON
	HEDGE ACCOUNTING)	51-52
NOTE 20	NOTES ON THE STATEMENT OF CASH FLOWS	52
NOTE 21	EVENTS AFTER THE REPORTING PERIOD	53

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Financial Position

As At 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

			Not reviewed/	Audited/
			Currenct period	Prior period
ASSETS	Note	31 March 2024	31 December 2023
Current assets
Cash and cash equivalents			1,215,957,120	914,591,614
Financial investments	5		1,604,955,342	1,008,259,807
Trade receivables			14,315,315,496	15,567,727,775
- Trade receivables from related parties	4		2,589,930,876	2,932,905,109
- Trade receivables from third parties	6		11,725,384,620	12,634,822,666
Other receivables			62,597,472	65,707,842
- Other receivables from third parties			62,597,472	65,707,842
Derivative instruments			14,761,138	29,880,465
Inventories			1,223,628,181	1,030,911,225
Prepaid expenses			524,181,212	492,122,612
Current tax assets			25,106,421	27,103,642
Other current assets			774,383,451	528,184,911
Total current assets			19,760,885,833	19,664,489,893
Non-current assets
Financial investments	5		3,561,648	3,561,648
Other receivables			7,226,711	7,342,648
- Other receivables from third parties			7,226,711	7,342,648
Property, plant and equipment	8		41,389,336,351	40,290,114,081
Right-of-use assets	9		326,387,086	335,071,414
Intangible assets			1,218,754,914	1,273,178,280
- Goodwill			382,825,474	412,275,010
- Other intangible assets			835,929,440	860,903,270
Prepaid expenses			4,532,811,337	2,143,681,413
Deferred tax asset	15		440,680,600	493,268,026
Total non-current assets			47,918,758,647	44,546,217,510
TOTAL ASSETS			67,679,644,480	64,210,707,403

1

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Financial Position

As At 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

				Not reviewed/	Audited/
				Current period	Prior period
LIABILITIES	Note	31 March 2024	31 December 2023
Current liabilities
Short-term borrowings	7			3,411,116,841	3,402,251,798
Current portion of long-term borrowings	7			7,117,586,407	5,999,335,040
Short-term lease liabilities	7			24,149,286	4,240,401
- Lease liabilities from related parties				15,224,379	-
- Lease liabilities from third parties				8,924,907	4,240,401
Short-term portion of long-term lease liabilities	7			37,365,120	38,278,827
Trade payables				4,598,394,929	3,843,420,735
- Trade payables to related parties	4			311,614,486	313,529,818
- Trade payables to third parties	6			4,286,780,443	3,529,890,917
Payables related to employee benefits				93,634,584	78,484,933
Other payables				1,102,563,609	819,507,326
- Other payables to third parties	4			12,534	14,422
Derivative instruments				1,102,551,075	819,492,904
Current tax liabilities				635,554,331	1,568,264,295
Short-term provisions				50,855,329	46,127,252
- Short-term provisions for employee benefits				21,713,957	13,340,996
- Other short-term provisions				29,141,372	32,786,256
Other current liabilities				42,980,263	39,402,867
Total current liabilities				17,114,200,699	15,839,313,474
Non-current liabilities
Long-term borrowings	7			8,269,945,908	5,842,351,954
Long-term lease liabilities	7			211,025,981	177,719,675
Other payables				1,420,720,711	1,144,724,883
- Other payables to third parties				1,420,720,711	1,144,724,883
Long-term provisions				158,221,274	162,566,784
- Long-term provisions for employee benefits				39,618,194	39,875,709
- Other long-term provisions				118,603,080	122,691,075
Deferred tax liabilities	15			1,173,052,259	1,192,262,033
Total non-current liabilities				11,232,966,133	8,519,625,329
TOTAL LIABILITIES				28,347,166,832	24,358,938,803

2

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Financial Position

As At 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

				Not reviewed/	Audited/
				Current period	Prior period
EQUITY	Note	31 March 2024	31 December 2023
Equity attributable to owners of the Company
Paid-in capital	11			1,226,338,236	1,226,338,236
Share capital adjustment differences	11			10,112,290,063	10,112,290,063
Shares repurchased (-)				(49,400,001)	(49,400,001)
Accumulated other comprehensive income not to be
reclassified in profit or loss				3,787,506,949	3,828,542,571
- Gains on revaluation of property, plant and
equipment				3,787,704,551	3,828,656,903
- Gains on remeasurements of the defined benefit
plans				(197,602)	(114,332)
Accumulated other comprehensive income that will
be reclassified in profit or loss				(2,459,476,748)	(1,254,373,238)
- Foreign currency translation differences	11			(812,601,668)	387,070,161
-Gain / (loss) of hedging reserve	11			(1,646,875,080)	(1,641,443,399)
Restricted reserves appropriated from profit	11			1,626,073,149	1,500,510,722
Prior years' profit	11			21,058,997,265	14,819,259,714
Net profit for the period				726,185,269	6,324,347,626
Total equity attributable to
equity holders of the Company				36,028,514,182	36,507,515,693
Non-controlling interests	11			3,303,963,466	3,344,252,907
Total equity				39,332,477,648	39,851,768,600
TOTAL LIABILITIES AND EQUITY				67,679,644,480	64,210,707,403

3

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES Unaudited Condensed Consolidated Statement of Profit or Loss for the Three-Month Period Ended 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

				Not reviewed/		Not reviewed/
				Current period		Prior period
				1 January -		1 January -
PROFIT OR LOSS:		Note		31 March 2024		31 March 2023
Revenue	12	5,861,583,327	14,330,204,230
Cost of sales (-)	12		(4,867,582,701)		(11,646,344,511)
Gross profit			994,000,626	2,683,859,719
General administrative expenses (-)			(280,014,552)	(206,169,983)
Sales expenses (-)			(12,483,889)	(5,193,505)
Other operating income			293,244,236	127,769,995
Other operating expenses (-)				(29,283,292)		(71,272,229)
Operating profit			965,463,129	2,528,993,997
Expected credit losses in accordance with TFRS 9 (-)			(20,459,740)	(249,939,320)
Gain from investing activities				33,280		83,153,851
Operating profit before finance income			945,036,669	2,362,208,528
Financial income	13	1,317,196,055	899,752,516
Financial expenses (-)	14		(697,918,784)		(1,325,840,751)
Financial incomes / (expenses), net			619,277,271	(426,088,235)
Net monetary polition losses				(233,945,109)		(52,564,724)
Profit from operations before tax				1,330,368,831		1,883,555,569
Operations tax expense			(329,229,222)	(174,361,973)
- Current tax expense			(258,476,521)	(583,945,508)
- Deferred tax (expense) / income	15	(70,752,701)	409,583,535
Profit from operations for the period			1,001,139,609	1,709,193,596
Profit for the year attributable to
- Non-controlling interests			274,954,340	104,636,173
- Equity holders of the parent				726,185,269		1,604,557,423
Total			1,001,139,609	1,709,193,596
Earnings per share
- Earnings per share attributable to equity holders
of the parent			0.59	1.31

4

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Other Comprehensive Income for the Three-Month Period Ended 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

				Not reviewed		Not reviewed
				1 January -		1 January -
Other comprehensive income:		Note		31 March 2024		31 March 2023
Profit for the period				1,001,139,609	1,709,193,596
Items that will not be reclassified to profit or loss				(111,027)	-
Revaluation increases on property, plant and
equipment				(111,027)	-
Tax related to other comprehensive income to be
reclassified subsequently to profit or loss:				27,757	-
- Deferred tax income				27,757	-
Items that will be reclassified subsequently to
profit or loss				(1,520,573,901)	(1,833,812,799)
Foreign currency translation differences				(1,514,915,610)	(2,580,644,036)
(Losses) / gains on cash flow hedging				(5,658,291)	746,831,237
Tax related to other comprehensive income to be
reclassified subsequently to profit or loss:				226,610	(29,873,247)
- Deferred tax income				226,610	(29,873,247)
Other comprehensive income				(1,520,430,561)		(1,863,686,046)
Total comprehensive income				(519,290,952)	(154,492,450)
Total comprehensive income attributable to
Non-controlling interests				(40,289,441)	(320,221,657)
Equity holders of the parent				(479,001,511)		165,729,207
Total				(519,290,952)	(154,492,450)

5

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES Unaudited Condensed Consolidated Statement of Changes in Equity For the Three-Month Period Ended 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

Paid-in capital

Share capital

adjustment differences

Repurchased

shares

		Other comprehensive income and
Other comprehensive income and expenses	expenses to be reclassified in profit
not to be reclassified in profit or loss	or loss			Retained earnings
	Gains on			Foreign	Restricted
Gain/(loss) on	revaluation of			currency	reserves				Attributable to	Non-
remeasurements of	property, plant and	Gain / (loss) of		translation	appropriated	Prior years'		Net profit for	equity holders	controlling	Total
defined benefit plans	equipment	hedging reserve		differences	from profit	profit/(loss)		the period	of the parent	interests	equity

Balance as of
1 January 2023	1,226,338,236	10,112,290,063	-	398,235	3,690,367,587	(2,326,437,444)	3,541,621,246	1,155,192,102	10,155,226,997	6,422,149,711	33,977,146,733	3,318,642,857	37,295,789,590
													-
- Total comprehensive income	-	-	-	-	-	716,957,989	(2,155,786,205)	-	-	1,604,557,423	165,729,207	(320,221,657)	(154,492,450)
-Transfers (*)	-	-	-	-	(12,063,931)	-	-	258,765,924	6,175,447,718	(6,422,149,711)	-	-	-
Balance as of
31 March 2023	1,226,338,236	10,112,290,063	-	398,235	3,678,303,656	(1,609,479,455)	1,385,835,041	1,413,958,026	16,330,674,715	1,604,557,423	34,142,875,940	2,998,421,200	37,141,297,140
Balance as of
1 January 2024	1,226,338,236	10,112,290,063	(49,400,001)	(114,332)	3,828,656,903	(1,641,443,399)	387,070,161	1,500,510,722	14,819,259,714	6,324,347,626	36,507,515,693	3,344,252,907	39,851,768,600
- Total comprehensive income	-	-	-	(83,270)	-	(5,431,681)	(1,199,671,829)	-	-	726,185,269	(479,001,511)	(40,289,441)	(519,290,952)
-Transfers (*)	-	-	-	-	(40,952,352)	-	-	125,562,427	6,239,737,551	(6,324,347,626)	-	-	-
Balance as of
31 March 2024	1,226,338,236	10,112,290,063	(49,400,001)	(197,602)	3,787,704,551	(1,646,875,080)	(812,601,668)	1,626,073,149	21,058,997,265	726,185,269	36,028,514,182	3,303,963,466	39,332,477,648

1. The transfer amount of TL 40,952,352 represents the depreciation difference for the period in which the Group has incurred due to the value increase in property, plant and equipment. (31 March 2023: TL 12,063,931).

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

6

AKSA ENERJİ ÜRETİM A.Ş. ITS SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Cash Flow

For the Three-Month Period Ended 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

				Unaudited		Unaudited
				1 January -		1 January -
		Note		31 March 2024		31 March 2023
A. Cash flows from operating activities		1,705,464,322	2,826,511,001
Profit for the period		1,001,139,609	1,709,193,596
Adjustments to reconcile net profit/loss to net cash:		1,735,812,085	1,317,779,549
Adjustments related to depreciation and amortization expenses		478,519,429	472,304,060
Adjustments related to provision for employee benefits		15,062,952	15,169,946
Adjustments related to interest expenses	14	601,511,972	433,525,860
Adjustments related to interest income	13	(344,150,338)	(249,878,663)
Adjustments related to expected provision expenses on trade receivables		20,459,740	249,939,320
Adjustments related to impairment on inventories		(3,956,823)	9,723,627
Adjustments related to tax expense		329,229,222	174,361,973
Adjustments related to derivative transactions (income)/expense		(25,078,277)	(23,796,012)
Adjustments related to loss/(gain) on disposal of property, plant and equipment		(33,280)	(65,963,928)
Unrealized currency (profit)/losses and translation differences		1,152,506,872	1,010,797,139
Monetary loss		(488,259,384)	(708,403,773)
Adjustments related to other increase/(decrease) in working capital		(918,155,749)	(108,701,941)
Increase in inventories		(376,066,491)	(373,276,353)
Increase in trade receivables from third parties		(688,089,894)	(612,994,276)
(Increase)/decrease in trade receivables from related parties		(40,908,532)	1,176,320,991
Increase in other operating receivables from third parties		(6,335,142)	(2,146,865)
Increase in trade payables to third parties		1,218,910,708	131,822,357
Increase in other operating payables to third parties		816,146,993	473,015,788
Increase/(decrease) in trade payables to related parties		39,122,032	(97,135,099)
Increase in other liabilities related to operations		(1,108,171,095)	(1,177,853,255)
Increase in prepaid expenses		(44,099,449)	(126,554,546)
Financial investment in (increase)/decrease		(728,664,879)	500,099,317
Cash flows generated from operations		1,818,795,945	2,918,271,204
Taxes paid		(112,215,507)	(89,299,503)
Payments related to provision for employee benefits paid		(1,116,116)	(2,460,700)
B. Cash flows from investing activities		(5,106,058,585)	(361,501,462)
Proceeds from sale of property, plant and equipment and intangible assets		81,307	78,392,423
Cash outflows from purchases of property, plant and equipment	8	(2,432,095,800)	(382,950,481)
Cash outflows from purchases of intangible assets		(4,331,497)	(56,943,404)
Other cash advances and funds given		(2,669,712,595)	-
C. Cash flows from financing activities		3.824.342.285	(1,558,196,147)
Cash inflows from borrowings	20	6,469,878,195	976,148,500
Cash outflows from borrowings	20	(2,437,296,214)	(2,050,090,450)
Cash outflows related to debt payments arising from Lease Contracts	20	(45,644,165)	(98,512,238)
Interest paid		(506,745,869)	(635,620,622)
Interest received	13	344,150,338	249,878,663
Net increase/(decrease) in cash and cash equivalents before
foreign currency translation differences (A+B+C)				423,748,022		906,813,392
D. Inflation impact on cash and cash equivalents		(119,709,280)	(197,726,958)
E. Cash and cash equivalents at the beginning of the year		921,374,146	1,783,611,963
Cash and cash equivalents at the end of the period (A+B+C+D+E)		1,225,412,888	2,492,698,397

As at 31 March 2024, the Group calculated expected credit loss amounting to TL 9,455,768 on cash and cash equivalents within the scope of TFRS 9 (31 March 2023: TL 10,115,275).

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

7

AKSA ENERJİ ÜRETİM A.Ş. AND ITS SUBSIDIARIES

Notes to the Unaudited Condensed Consolidated Financial Statements As At 31 March 2024

(Amounts expressed Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2024, unless otherwise stated.)

1 Organization and operations of the Group

Aksa Enerji Üretim A.Ş. ("Aksa Enerji" or "the Company") was established on 12 March 1997 to engage in constructing, lending and operating of electricity power plant, production and sale of electricity and/or energy production capacity to the customers.

The Company has been registered in Istanbul Trade Registry Office and the shares of the Company have been traded in the Borsa İstanbul A.Ş. ("BIST") on 21 May 2010 under the name "AKSEN". As of 31 March 2024, the Company's share in actual circulation is 20.58% (31 December 2023: 20.58%).

The main shareholder of the Company is Kazancı Holding A.Ş. ("Kazancı Holding"). The Company's registered office address is Rüzgarlıbahçe Mahallesi, Özalp Çıkmazı, No:10, Kavacık-Beykoz, Istanbul / Turkey.

Aksa Enerji and its subsidiaries are collectively referred to as "the Group" in this report. As of 31 March 2024 and

31 December 2023, the details of the subsidiaries included in the consolidation are as follows:

Group's	Group's
effective	effective
share ratio	share ratio
(%)	(%)

	Principal	Place of	31 March	31 December
Name of subsidiary - Foreign Branch	activity	operation	2024	2023
Aksa Yenilenebilir Enerji Üretim A.Ş. ("Aksa
Yenilenebilir")	Electricity production	Turkey	100.00	100.00
Aksa Energy Company Ghana Limited ("Aksa Enerji
Gana")	Electricity production	Ghana	75.00	75.00
Aksa Enerji Üretim A.Ş.-Y.Ş. ("Aksa Enerji - Y.Ş.")	Electricity production	TRNC	100.00	100.00
Aksa Ghana B.V.	Holding company	Netherlands	100.00	100.00
Aksa Uzbekistan Investment B.V.	Holding company	Netherlands	100.00	100.00
Aksa Uzbekistan Bukhara B.V.	Holding company	Netherlands	100.00	100.00
Aksa Global Investment B.V. ("Aksa Global B.V.")	Holding company	Netherlands	100.00	100.00
Aksa Göynük Enerji Üretim A.Ş. ("Aksa Göynük Enerji")	Electricity production	Turkey	99.99	99.99
Aksa Madagascar B.V.	Holding company	Netherlands	100.00	100.00
Aksa Madagascar SAU	Electricity production	Madagascar	100.00	100.00
Aksa Mali S.A.	Electricity production	Mali	100.00	100.00
Aksaf Power Ltd. ("Aksaf Power")	Electricity production	Mauritius	100.00	100.00
İdil İki Enerji Sanayi ve Ticaret A.Ş. ("İdil İki Enerji")	Electricity production	Turkey	99.99	99.99
Overseas Power Ltd. ("Overseas Power")	Supply trade	Mauritius	100.00	100.00
Rasa Enerji Üretim A.Ş. ("Rasa Enerji")	Electricity production	Turkey	99.99	99.99
Aksa Energy Company Congo ("Aksa Enerji Kongo)	Electricity production	Congo	100.00	100.00
Aksa Energy Cameroon PLC ("Aksa Enerji Kamerun") (*)	Electricity production	Cameroon	75.00	75.00
Aksa Energy Tashkent FE LLC	Electricity production	Uzbekistan	100.00	100.00
Aksa Energy Bukhara FE LLC	Electricity production	Uzbekistan	100.00	100.00
Aksa Enerji Üretim A.Ş. Kazakistan Branch (*)	Electricity production	Kazakhstan	100.00	100.00
Aksa Kyzylorda Investment B.V.	Electricity production	Netherlands	100.00	100.00
Aksa Energy Kyzylorda LLP (*)	Electricity production	Kazakhstan	100.00	100.00
Aksa Taboth IPP	Electricity production	Ivory Coast	80.00	80.00
Aksa Talimarjan B.V.	Holding company	Netherlands	100.00	100.00
Aksa Renewable Energy B.V.	Holding company	Netherlands	100.00	100.00
Aksa Enerji Talimarjan FE LLC (*)	Electricity production	Uzbekistan	100.00	100.00
Ndar Energies SA (*)	Electricity production	Senegal	85.00	85.00
Aksa-Ndar Holding SA	Holding company	Senegal	60.00	60.00
Aksa Senegal Investment B.V.	Holding company	Netherlands	100.00	-

(*) The relevant companies are in the investment period; as of 31 March 2024, electricity generation has not started.

As of 31 March 2024, the number of employees of the Group is 1,263 (31 December 2023: 1,268).

8