koÇ holdİng a.Ş. condensed consolidated financial

KOÇ HOLDİNG A.Ş.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2016

(CONVENIENCE TRANSLATION OF FINANCIAL STATEMENTS

ORIGINALLY ISSUED IN TURKISH)

CONVENIENCE TRANSLATION INTO ENGLISH OF THE CONSOLIDATED FINANCIAL

STATEMENTS ORIGINALLY ISSUED IN TURKISH (NOTE 2.6)

KOÇ HOLDİNG A.Ş.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2016

CONTENTS INDEX

CONSOLIDATED BALANCE SHEETS ................................................................................................... 1-2

CONSOLIDATED STATEMENTS OF INCOME ................................................................................... 3

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME ............................... 4

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................................... 5

CONSOLIDATED STATEMENTS OF CASH FLOW ............................................................................ 6

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ..................................................... 7-46

NOTE 1 GROUP’S ORGANISATION AND NATURE OF OPERATIONS......................................... 7-12

NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS ............ 13-15

NOTE 3 SEGMENT REPORTING ........................................................................................................ 16-19

NOTE 4 CASH AND CASH EQUIVALENTS ....................................................................................... 20

NOTE 5 FINANCIAL ASSETS .............................................................................................................. 20-21

NOTE 6 JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD ........................ 21-23

NOTE 7 TRADE RECEIVABLES AND PAYABLES ........................................................................... 24

NOTE 8 RECEIVABLES FROM FINANCE SECTOR OPERATIONS ................................................ 25

NOTE 9 INVENTORIES ......................................................................................................................... 25

NOTE 10 ASSETS USED IN OPERATIONAL LEASE ......................................................................... 26

NOTE 11 PROPERTY, PLANT AND EQUIPMENT .............................................................................. 26

NOTE 12 INTANGIBLE ASSETS ............................................................................................................ 27

NOTE 13 GOODWILL.............................................................................................................................. 27

NOTE 14 BORROWINGS ........................................................................................................................ 28-29

NOTE 15 TAX ASSETS AND LIABILITIES .......................................................................................... 30-32

NOTE 16 PROVISIONS............................................................................................................................ 32

NOTE 17 OTHER RECEIVABLES AND PAYABLES ........................................................................... 33

NOTE 18 OTHER ASSETS AND LIABILITIES ..................................................................................... 33-34

NOTE 19 EQUITY .................................................................................................................................... 34-35

NOTE 20 ASSETS HELD FOR SALE ..................................................................................................... 36

NOTE 21 OTHER OPERATING INCOME/EXPENSES ......................................................................... 37

NOTE 22 FINANCIAL INCOME/EXPENSES ........................................................................................ 37

NOTE 23 RELATED PARTY DISCLOSURES ....................................................................................... 38

NOTE 24 COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES ......................................... 39

NOTE 25 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT ......................... 40-45

NOTE 26 EARNINGS PER SHARE ......................................................................................................... 45

NOTE 27 SUPPLEMENTARY CASH FLOW INFORMATION ............................................................ 46

NOTE 28 EVENTS AFTER THE BALANCE SHEET DATE ................................................................. 46



KOÇ HOLDİNG A.Ş.

CONSOLIDATED BALANCE SHEETS

AT 31 MARCH 2016 AND 31 DECEMBER 2015 (Amounts on tables expressed in thousands of Turkish Lira (“TL”) unless otherwise indicated.)

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

1

Unaudited Audited

31 March 31 March 31 March 31 December

2016 2016 2016 2015

Notes (*)

EUR’000 (*)

USD’000 TL’000 TL’000

ASSETS

Current assets: Cash and cash equivalents 4 4.572.856 5.177.589 14.670.180 10.553.331

Trade receivables 7 2.871.084 3.250.767 9.210.724 9.712.431

- Related parties 7 365.314 413.625 1.171.964 908.959

- Third parties 7 2.505.770 2.837.142 8.038.760 8.803.472

Receivables from finance sector operations 8 482.081 545.833 1.546.564 1.545.561

Derivative instruments 23.067 26.117 74.000 116.841

Inventories 9 1.812.787 2.052.517 5.815.603 5.680.030

Assets used in operational lease 10 241.325 273.239 774.194 459.320

Other receivables 17 230.800 261.322 740.431 763.001

Other current assets 18 249.910 282.959 801.736 1.067.924

Assets held for sale 20 12.538 14.196 40.223 94.039

Total current assets 10.496.448 11.884.539 33.673.655 29.992.478

Non-current assets: Financial assets 5 42.879 48.550 137.561 136.366

Joint Ventures accounted for

using the equity method 6 3.733.385 4.227.102 11.977.072 12.046.819

Trade receivables 7 31.821 36.029 102.085 327.939

- Third parties 7 31.821 36.029 102.085 327.939

Receivables from finance sector operations 8 393.025 445.000 1.260.862 1.286.986


Assets used in operational lease 10 256.221 290.105 821.983 992.438

Investment properties 139.939 158.445 448.939 451.254

Property, plant and equipment 11 5.644.746 6.391.230 18.108.911 18.135.100

Intangible assets 12 587.953 665.706 1.886.212 1.876.238

Goodwill 13 904.245 1.023.826 2.900.908 2.899.913

Deferred tax assets 15 984.324 1.114.495 3.157.810 3.243.842

Other non-current assets 18 414.424 469.227 1.329.512 1.186.346

Total non-current assets 13.221.386 14.969.833 42.415.529 42.992.424

Total assets 23.717.834 26.854.372 76.089.184 72.984.902

(*) Euro (“EUR”) and US Dollar (“USD”) amounts presented above have been translated from Turkish Lira (“TL”) for

convenience purposes only, at the official TL bid rate announced by the Central Bank of the Republic of Turkey

(“CBRT”) at 31 March 2016, and therefore do not form part of these interim condensed consolidated financial statements

(Note 2.1.3).

These interim condensed consolidated financial statements as of 1 January - 31 March 2016 have been approved

for issue by the Board of Directors on 6 May 2016.



KOÇ HOLDİNG A.Ş.

CONSOLIDATED BALANCE SHEETS

AT 31 MARCH 2016 AND 31 DECEMBER 2015 (Amounts on tables expressed in thousands of Turkish Lira (“TL”) unless otherwise indicated.)


2

Unaudited Audited 31 March 31 March 31 March 31 December 2016 2016 2016 2015 Notes

(*) EUR’000

(*) USD’000 TL’000 TL’000

LIABILITIES

Current liabilities:

Short term borrowings 14 739.560 837.363 2.372.583 1.706.870

Short term portion of long term borrowings 14 2.006.800 2.272.187 6.438.016 5.672.380

Trade payables 7 2.236.341 2.532.083 7.174.404 7.863.964

- Related parties 7 192.710 218.195 618.234 915.813

- Third parties 7 2.043.631 2.313.888 6.556.170 6.948.151 Other payables 17 644.896 730.180 2.068.891 2.426.070


Current income tax liabilities 15 12.810 14.504 41.097 225.072

Provisions 16 274.550 310.857 880.783 819.831

Other current liabilities 18 716.040 810.732 2.297.129 2.140.986

Liabilities related to assets held for sale 20 761 861 2.440 2.472

Total current liabilities 6.671.892 7.554.208 21.404.096 20.902.762

Non-current liabilities:

Long term borrowings 14 5.976.968 6.767.385 19.174.710 17.160.137


Provisions for employee benefits 168.146 190.382 539.429 530.092

Deferred tax liabilities 15 103.950 117.697 333.482 345.113

Provisions 16 45.833 51.894 147.037 137.239

Other non-current liabilities 18 60.081 68.026 192.746 206.508

Total non-current liabilities 6.373.962 7.216.879 20.448.308 18.406.542

Total liabilities 13.045.854 14.771.087 41.852.404 39.309.304

Equity:

Paid-in share capital 19 790.467 895.002 2.535.898 2.535.898

Adjustment to share capital 19 301.514 341.388 967.288 967.288

Total share capital 19 1.091.981 1.236.390 3.503.186 3.503.186

Share premium 2.895 3.277 9.286 9.286

Other comprehensive income/expense not to be

reclassified to profit or loss 19 (6.069) (6.871) (19.469) (17.260)

Other comprehensive income/expense to be

reclassified to profit or loss 19 (66.514) (75.310) (213.384) (229.996)

Restricted reserves 19 768.192 869.780 2.464.438 2.464.438

Prior years’ income 5.425.444 6.142.926 17.405.366 13.837.773

Profit for the period 160.600 181.838 515.220 3.567.593

Equity holders of the parent 7.376.529 8.352.030 23.664.643 23.135.020

Non-controlling interests 3.295.451 3.731.255 10.572.137 10.540.578

Total equity 10.671.980 12.083.285 34.236.780 33.675.598

Total liabilities and equity 23.717.834 26.854.372 76.089.184 72.984.902

Commitments and contingent liabilities 24

(*) Euro and USD amounts presented above have been translated from TL for convenience purposes only, at the official TL bid rate announced by the CBRT at 31 March 2016, and therefore do not form part of these interim condensed consolidated financial statements (Note 2.1.3).



KOÇ HOLDİNG A.Ş.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE INTERIM PERIODS ENDED 31 MARCH 2016 AND 2015 (Amounts on tables expressed in thousands of Turkish Lira (“TL”) unless otherwise indicated.)


3

Unaudited Unaudited

1 January- 1 January- 1 January- 1 January-

31 March 31 March 31 March 31 March

2016 2016 2016 2015

Notes (*)

EUR’000 (*)

USD’000 TL’000 TL’000

Revenue 4.298.299 4.736.342 13.942.821 13.677.276

Revenue from finance sector operations 33.623 37.050 109.067 82.157

Total revenue 3 4.331.922 4.773.392 14.051.888 13.759.433

Cost of sales (-) (3.596.562) (3.963.091) (11.666.529) (11.786.315)

Cost of finance sector operations (-) (23.418) (25.804) (75.962) (56.906)

Total costs (3.619.980) (3.988.895) (11.742.491) (11.843.221)

Gross profit non-finance 701.737 773.251 2.276.292 1.890.961

Gross profit finance 10.205 11.246 33.105 25.251

Gross profit 711.942 784.497 2.309.397 1.916.212

Marketing, selling and distribution expenses (-) (289.842) (319.380) (940.188) (753.611)

General administrative expenses (-) (223.314) (246.072) (724.387) (560.502)

Research and development expenses (-) (16.717) (18.420) (54.226) (46.805)

Other operating income 21 108.298 119.335 351.298 590.999

Other operating expenses (-) 21 (77.838) (85.771) (252.492) (817.245)

Share of profit/loss of Joint Ventures 6 127.550 140.548 413.746 337.317

Operating profit 3 340.079 374.737 1.103.148 666.365

Gains from investment activities 7.532 8.299 24.431 12.209

Losses from investment activities (-) (234) (258) (759) (531)

Operating profit before

financial income/(expense) 347.377 382.778 1.126.820 678.043

Financial income 22 249.774 275.229 810.217 1.174.083

Financial expense (-) 22 (366.655) (404.022) (1.189.357) (1.465.227)

Profit before tax 3 230.496 253.985 747.680 386.899

Tax income (7.915) (8.721) (25.673) 319.076

- Current income tax expense (-) (19.768) (21.782) (64.123) (31.051)

- Deferred tax income 15 11.853 13.061 38.450 350.127

Profit for the period 222.581 245.264 722.007 705.975

Attributable to:

Non-controlling interest 63.749 70.245 206.787 246.769

Equity holders of the parent 3 158.832 175.019 515.220 459.206

Earnings per share (Kr) 26 0,203 0,181

(*) EUR and USD amounts presented above have been translated from TL for convenience purposes only, at the EUR and

USD average CBRT bid rates for the three month period ended 31 March 2016, and therefore do not form part of these

interim condensed consolidated financial statements (Note 2.1.3).



KOÇ HOLDİNG A.Ş.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME



4

Unaudited Unaudited

1 January- 1 January- 1 January- 1 January-

31 March 31 March 31 March 31 March

2016 2016 2016 2015

(*)

EUR’000 (*)

USD’000 TL’000 TL’000

Profit for the period 222.581 245.264 722.007 705.975

Other comprehensive income / (expense):

Items not to be reclassified to profit / loss:

Actuarial gains/losses on defined benefit plans

Actuarial gains/losses (1.239) (1.365) (4.019) (6.046)

Tax effect 248 273 804 1.222

(991) (1.092) (3.215) (4.824)

Items to be reclassified to profit / loss:

Financial assets fair value reserve

Fair value gains/losses on financial assets 294 324 955 (1.758)

Tax effect (15) (16) (48) 87

279 308 907 (1.671)

Hedging reserve

Cumulative gains/losses on hedging 31.119 34.290 100.943 (228.935)

Tax effect (7.203) (7.937) (23.366) 34.223

23.916 26.353 77.577 (194.712)

Currency translation differences 10.350 11.407 33.578 107.250

Share of other comprehensive

income/expense of Joint Ventures (10.915) (12.028) (35.407) (27.050)

Other comprehensive income / (expense) (after tax) 22.639 24.948 73.440 (121.007)

Total comprehensive income 245.220 270.212 795.447 584.968

Attributable to:

Non-controlling interest 81.948 90.300 265.824 198.359

Equity holders of the parent 163.272 179.912 529.623 386.609

(*) EUR and USD amounts presented above have been translated from TL for convenience purposes only, at the EUR and

USD average CBRT bid rates for the three month period ended 31 March 2016, and therefore do not form part of these

interim condensed consolidated financial statements (Note 2.1.3).



KOÇ HOLDİNG A.Ş.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY



5

Items not to be Items to be

reclassified to reclassified

Capital profit/loss to profit/loss Retained earnings

Non-current Financial

Adjustment assets Actuarial Currency assets Prior Profit Equity Non-

Paid-in to share Share revaluation loss/ translation Hedging fair value Restricted years’ for the holders of controlling Total

share capital capital premium fund gain differences reserve reserve reserves income period the parent interests equity

Balances at 1 January 2015 2.535.898 967.288 9.286 27.241 (53.659) 209.302 (316.018) 157.683 2.420.668 11.680.589 2.710.145 20.348.423 8.953.046 29.301.469

Transfers - - - - - - - - 43.770 2.666.375 (2.710.145) - - -

Dividends paid - - - - - - - - - (585.259) - (585.259) (406.069) (991.328)

Total comprehensive income - - - 97 (2.979) 48.909 (47.470) (71.154) - - 459.206 386.609 198.359 584.968

Balances at 31 March 2015 2.535.898 967.288 9.286 27.338 (56.638) 258.211 (363.488) 86.529 2.464.438 13.761.705 459.206 20.149.773 8.745.336 28.895.109

Balances at 1 January 2016 2.535.898 967.288 9.286 30.688 (47.948) 299.590 (461.020) (68.566) 2.464.438 13.837.773 3.567.593 23.135.020 10.540.578 33.675.598

Transfers - - - - - - - - - 3.567.593 (3.567.593) - - -

Dividends paid - - - - - - - - - - - - (309.927) (309.927)

Capital increases - - - - - - - - - - - - 75.662 75.662

Total comprehensive income - - - 293 (2.502) 17.841 (69.501) 68.272 - - 515.220 529.623 265.824 795.447

Balances at 31 March 2016 2.535.898 967.288 9.286 30.981 (50.450) 317.431 (530.521) (294) 2.464.438 17.405.366 515.220 23.664.643 10.572.137 34.236.780



KOÇ HOLDİNG A.Ş.

CONSOLIDATED STATEMENTS OF CASH FLOW



6

Unaudited Unaudited

1 January- 1 January- 1 January- 1 January- 31 March 31 March 31 March 31 March

2016 2016 2016 2015

Notes (*) EUR’000 (*) USD’000 TL’000 TL’000

A. Cash flows from operating activities: Profit for the period 222.580 245.264 722.007 705.975

Adjustments to reconcile net cash generated: Tax expenses/(income) 7.914 8.721 25.673 (319.076)

Share of profit/loss of Joint Ventures 6 (127.550) (140.548) (413.746) (337.317)

Depreciation and amortisation 3 105.218 115.940 341.305 262.288

Changes in provisions 27 50 55 162 112.299

Interest expense, net 22 55.260 60.892 179.253 143.969

(Gains)/losses on derivative instruments, net 22 47.682 52.542 154.672 (306.748)

Exchange (gains)/losses on borrowings, net (70.818) (78.036) (229.721) 940.183

Exchange (gains)/losses on cash and cash equivalents, net 79.817 87.951 258.910 (490.925) Gain on sale of property, plant and equipment and

intangible assets, net (5.224) (5.756) (16.945) (6.869)

314.929 347.025 1.021.570 703.779

Changes in net working capital 27 117.876 129.888 382.365 (2.129.160)

Income taxes paid (48.999) (53.993) (158.943) (54.363)

Dividend income from Joint Ventures, net 6 15.507 17.085 50.296 177.466

Contribution to capital increases of Joint Ventures 6 - - - (2.000)

Tax penalties paid arising from the settlement process - - - (77.353)

Total cash flows from operating activities 399.313 440.005 1.295.288 (1.381.631)

B. Cash flows from investing activities: Purchases of property, plant and equipment and

intangible assets 3 (206.546) (227.595) (669.994) (799.836) Sale of property, plant and equipment and

intangible assets 70.334 77.502 228.151 195.119

Acquisition of financial assets and capital contributions (74) (82) (240) (3.528)

Total cash flows from investing activities (136.286) (150.175) (442.083) (608.245)

C. Cash flows from financing activities: Contribution to capital increases of non-controlling interests 23.325 25.702 75.662 -

Dividend payments (95.544) (105.281) (309.927) (80.753)

Cash flows from borrowings, net 925.945 1.020.308 3.003.579 1.193.601

Cash flows provided by/(used in) derivative transactions, net 235.424 259.416 763.668 (99.340)

Interest paid (64.768) (71.368) (210.094) (137.204)

Interest received 50.028 55.126 162.281 109.762

Total cash flows from financing activities 1.074.410 1.183.903 3.485.169 986.066

Effects of foreign exchange rate changes

on cash and cash equivalents (79.817) (87.951) (258.910) 490.925

Net increase/(decrease) in cash and cash equivalents 1.257.620 1.385.782 4.079.464 (512.885)

Cash and cash equivalents at the beginning of the period 2.999.472 3.305.150 9.729.686 9.230.949

Cash and cash equivalents at the end of the period 27 4.257.092 4.690.932 13.809.150 8.718.064

(*) EUR and USD amounts presented above have been translated from TL for convenience purposes only, at the average of

the official TL bid rates announced by the CBRT for the three month period ended 31 March 2016 and therefore do not

form part of these interim condensed consolidated financial statements (Note 2.1.3).



KOÇ HOLDİNG A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE INTERIM PERIOD ENDED 31 MARCH 2016 (Amounts on tables expressed in thousands of Turkish Lira (“TL”) unless otherwise indicated.)

7

NOTE 1 - GROUP’S ORGANISATION AND NATURE OF OPERATIONS

Koç Holding A.Ş. (“Koç Holding”) was established on 11 December 1963 in Turkey. Koç Holding’s business

activities include ensuring the establishment of participating in various companies and promoting the

achievements of these companies; ensuring a more profitable, efficient management appropriate for current

conditions and creating common service areas and therefore lightening the financial burden of these services on

the companies.

As of 31 March 2016, the number of personnel employed by the Parent Company Koç Holding, its Subsidiaries

and Joint Ventures (together referred as the “Group”) is 91.522 (31 December 2015: 91.304); divided into

categories of 43.683 white-collar (31 December 2015: 43.293) and 47.839 blue-collar workers (31 December

2015: 48.011).

The registered address of Koç Holding is as follows:

Nakkaştepe Azizbey Sok. No: 1

Kuzguncuk-İSTANBUL

Koç Holding is registered to the CMB and its shares have been quoted on the Borsa İstanbul (“BIST”) since

10 January 1986. As of 31 March 2016, the principal shareholders and their respective shareholding rates in Koç

Holding are as follows:

%

Companies owned by Koç Family members 43,99

Koç Family members 24,52

Vehbi Koç Vakfı 7,26

Koç Holding Emekli ve Yardım Sandığı Vakfı 1,99

Other 22,24

100,00

Koç Holding is organized mainly in Turkey under five core business segments:

Energy

Automotive

Consumer durables

Finance

Other (*)

(*) Other operations of Group mainly comprise of food, retail, tourism, information technologies and ship construction, none of

which are of a sufficient size to be reported separately.



KOÇ HOLDİNG A.Ş.



8

NOTE 1 - GROUP’S ORGANISATION AND NATURE OF OPERATIONS (Continued)

The subsidiaries (“Subsidiaries”), the joint ventures (“Joint Ventures”) and associates (“Associates”) included in the consolidation scope of Koç Holding, their country of incorporation, nature of business and their respective business segments are as follows:

Energy Sector

Country of Nature of

Subsidiaries incorporation business

ADG Enerji Yatırımları A.Ş. (“ADG Enerji Yatırımları”) Turkey Natural Gas

Akpa Dayanıklı Tüketim LPG ve Akaryakıt Ürünleri

Pazarlama A.Ş. (“Akpa”) Turkey Marketing

Anadoluhisarı Tankercilik A.Ş. (“ Anadoluhisarı Tankercilik”) Turkey Petroleum Shipping

Aygaz A.Ş. (“Aygaz”) Turkey LPG

Aygaz Doğal Gaz İletim A.Ş. (“Aygaz İletim”) Turkey Natural Gas

Aygaz Doğal Gaz Toptan Satış A.Ş. (“Aygaz Toptan Satış”) Turkey Natural Gas

Bakırköy Tankercilik A.Ş. (“Bakırköy Tankercilik”) (1) Turkey Petroleum Shipping

Beykoz Tankercilik A.Ş. (“Beykoz Tankercilik”) Turkey Petroleum Shipping

Çengelköy Tankercilik A.Ş. (“Çengelköy Tankercilik”) (1) Turkey Petroleum Shipping

Demir Export A.Ş. (“Demir Export”) Turkey Mining

Ditaş Deniz İşletmeciliği ve Tic. A.Ş. (“Ditaş”) Turkey Petroleum Shipping

Enerji Yatırımları A.Ş. (“Enerji Yatırımları”) Turkey Investment

Eltek Elektrik Enerjisi İthalat İhracat ve Toptan Ticaret A.Ş. (“Eltek”) Turkey Power Generation

Entek Elektrik Üretimi A.Ş. (“Entek”) Turkey Power Generation

Kadıköy Tankercilik A.Ş. (“Kadıköy Tankercilik”) Turkey Petroleum Shipping

Kandilli Tankercilik A.Ş. (“Kandilli Tankercilik”) Turkey Petroleum Shipping

Karaköy Tankercilik A.Ş. (“Karaköy Tankercilik”) (1) Turkey Petroleum Shipping

Karşıyaka Tankercilik A.Ş. (“Karşıyaka Tankercilik”) Turkey Petroleum Shipping

Kartal Tankercilik A.Ş. (“Kartal Tankercilik”) Turkey Petroleum Shipping

Kuleli Tankercilik A.Ş. (“Kuleli Tankercilik”) Turkey Petroleum Shipping

Kuzguncuk Tankercilik A.Ş. (“Kuzguncuk Tankercilik”) Turkey Petroleum Shipping

Maltepe Tankercilik A.Ş. (“Maltepe Tankercilik”) Turkey Petroleum Shipping

Salacak Tankercilik A.Ş. (“Salacak Tankercilik”) Turkey Petroleum Shipping

Sarıyer Tankercilik A.Ş. (“Sarıyer Tankercilik”) Turkey Petroleum Shipping

Seymenoba Elektrik Üretimi A.Ş.(“Seymenoba Elektrik”) Turkey Power Generation

T Damla Denizcilik A.Ş. (“T Damla Denizcilik”) Turkey Petroleum Shipping

Türkiye Petrol Rafinerileri A.Ş. (“Tüpraş”) Turkey Production and Trading

of Petroleum Products

Üsküdar Tankercilik A.Ş. (“Üsküdar Tankercilik”) Turkey Petroleum Shipping

Yeni Dore Madencilik San. Ve Tic. A.Ş. (“Yeni Dore Madencilik”) Turkey Mining


Joint Ventures Joint Venture Partner incorporation business

Ayas Enerji Üretim ve Ticaret A.Ş. (“Ayas Enerji”) Oyak Birleşik Enerji A.Ş. Turkey Power Generation

Güney Tankercilik A.Ş. (“Güney Tankercilik”) Türk Hava Yolları Turkey Petroleum Shipping

Kuzey Tankercilik A.Ş. (“Kuzey Tankercilik”) Türk Hava Yolları Turkey Petroleum Shipping

Opet Aygaz Gayrimenkul A.Ş. (“Opet Aygaz Gayrimenkul”) Öztürk Family Turkey Real Estate

Opet Fuchs Madeni Yağ San.ve Tic.A.Ş. (“Opet Fuchs”) Fuchs Petrolub SE Turkey Lubricant Trading

Opet International Limited (“Opet International”) Öztürk Family The UK Petroleum Products Trading

Opet Petrolcülük A.Ş. (“Opet”) Öztürk Family Turkey Petroleum Products Trading

Opet Trade B.V.(“Opet Trade BV”) Öztürk Family Holland Petroleum Products Trading

Opet Trade (Singapore) Pte. Ltd. (“Opet Singapore”) Öztürk Family Singapore Petroleum Products Trading

THY Opet Havacılık Yakıtları A.Ş. (“THY Opet”) Türk Hava Yolları Turkey Petroleum Products Trading

(1) Established in 2016.



KOÇ HOLDİNG A.Ş.



9

NOTE 1 - GROUP’S ORGANISATION AND NATURE OF OPERATIONS (Continued) Automotive Sector



Otokar Europe SAS (“Otokar Europe”) (1) France Sales and Marketing

Otokar Otomotiv ve Savunma Sanayi A.Ş. (“Otokar”) Turkey Production

Otokoç Otomotiv Tic. Ve San. A.Ş. (“Otokoç”) Turkey Trading

Otokoç Sigorta Aracılık Hizmetleri A.Ş. (“Otokoç Sigorta”) Turkey Insurance

Set Auto Ltd. (“Set Auto”) Azerbaijan Car Rental

Tasfiye Halinde Otoyol Sanayi A.Ş. (“Otoyol”) (2) Turkey -



Fer Mas Oto Ticaret A.Ş. (“Fer-Mas”) Fiat Auto S.p.A. Turkey Trading

Ford Otomotiv Sanayi A.Ş. (“Ford Otosan”) Ford Motor Co. Turkey Production

Koç Fiat Kredi Finansman A.Ş. (“Fiat Finans”) (Note 2.1.2) Fiat Auto S.p.A. Turkey Consumer Finance

Tofaş Türk Otomobil Fabrikası A.Ş. (“Tofaş”) Fiat Auto S.p.A. Turkey Production

Türk Traktör ve Ziraat Makinaları A.Ş. (“Türk Traktör”) CNH Osterreich Gmbh Turkey Production

(1) Included in the scope of consolidation in 2016.

(2) In the process of liquidation.



KOÇ HOLDİNG A.Ş.



10


Consumer Durables Sector



Archin Limited (“Archin”) (1) Hong Kong, China Sales

Arçelik A.Ş. (“Arçelik”) Turkey Production/Sales

Ardutch B.V. (“Ardutch”) The Netherlands Holding

Ardutch B.V. Taiwan (“Ardutch Taiwan”) Taiwan Procurement

Beko A and NZ Pty Ltd. (“Beko Australia”) Australia,New Zealand Sales

Beko Appliances Malaysia Sdn Bhd. (“Beko Malaysia”) Malaysia Sales

Beko Balkans D.O.O (“Beko Balkans”) Serbia Sales

Beko Cesko (“Beko Cesko”) (1) Czech Republic Sales

Beko Deutschland GmbH (“Beko Deutschland”) Germany Sales

Beko Egypt Trading LLC (“Beko Egypt”) Egypt Sales

Beko Electronics Espãna S.L. (“Beko Espana”) Spain Sales

Beko France S.A.S. (“Beko France”) France Sales

Beko Hong Kong Ltd. (“Beko Hong Kong”) Hong Kong, China Procurement

Beko Italy SRL (“Beko Italy”) Italy Sales

Beko Llc (“Beko Russia”) Russia Production/Sales

Beko Plc. (“Beko UK”) The UK, Ireland Sales

Beko Shanghai Trading Company Ltd. (“Beko Shanghai”) China Sales

Beko Slovakia S.R.O. (“Beko Slovakia”) Slovakia Sales

Beko S.A. (“Beko Polska”) Poland Sales

Beko S.A. Czech Republic (“Beko Czech”) Czech Republic Sales

Beko Thai Co. Ltd. (“Beko Thailand”) Thailand Production/Sales

Beko Ukraine LLC (“Beko Ukraine”) Ukraine Sales

Beko US INC. (“Beko US”) (2) United States of America Sales

Bilkom Bilişim Hizmetleri A.Ş. (“Bilkom”) (Note 2.1.2) Turkey Trading

Changzhou Beko Electrical Appliances Co. Ltd. (“Beko China”) China Production/Sales

Computer Vision Interaction S.A. (“CoVii”) Portugal R&D

Defy Appliances (Proprietary) Limited (“Defy”) Republic of South Africa Production/Sales

Defy (Botswana) (Proprietary) Limited (“Defy Botswana”) Botswana Sales

Defy (Namibia) (Proprietary) Limited (“Defy Namibia”) Namibia Sales

Defy (Swaziland) (Proprietary) Limited (“Defy Swaziland”) Swaziland Sales

Elektra Bregenz AG (“Elektra Bregenz”) Austria Sales

Grundig Intermedia Ges.m.b.H (“Grundig Austria”) (1) Austria Sales

Grundig Intermedia GmbH (“Grundig Intermedia”) Germany,Croatia Sales

Grundig Magyarország Kft. (“Grundig Hungary”) (1) Hungary Sales

Grundig Multimedia A.G. (“Grundig Switzerland”) Switzerland Sales

Grundig Multimedia B.V. (“Grundig Multimedia”) The Netherlands Holding

Grundig Nordic AB. (“Grundig Sweden”) Sweden Sales

Grundig Nordic No AS (“Grundig Norway”) Norway Sales

Grundig Portuguesa Lda (“Grundig Portugal”) (1) Portugal Sales

Raupach Wollert GmbH (“Raupach”) (1) Germany Holding

SC Arctic SA (“Arctic”) Romania Production/Sales

Vietbeko Limited Liability Company (“Vietbeko”) Vietnam Sales



Arçelik-LG Klima San. Ve Tic. A.Ş. (“Arçelik LG”) LG Electronics Inc. Turkey Air Conditioner Production

(1) Non-operational companies as of the balance sheet date.

(2) Established as a sales and marketing company in January 2016.



KOÇ HOLDİNG A.Ş.



11


Finance Sector



Koç Finansman A.Ş. (“Koç Finansman”) Turkey Consumer Finance



Koç Finansal Hizmetler A.Ş.

(“Koç Finansal Hizmetler” or “KFS”) UniCredit S.p.A. Turkey Holding

Stiching Custody Services YKB (“Stiching Custody”) UniCredit S.p.A. The Netherlands Custody

Yapı Kredi Azerbaijan C.J.S.C.

(“Yapı Kredi Azerbaycan”) UniCredit S.p.A. Azerbaijan Banking

Yapı Kredi Bank Nederland N.V. (“Yapı Kredi Nederland”) UniCredit S.p.A. The Netherlands Banking

Yapı Kredi Bank Malta Ltd. (“Yapı Kredi Malta”) UniCredit S.p.A. Malta Banking

Yapı Kredi Bank Moscow (“Yapı Kredi Moscow”) UniCredit S.p.A. Russia Banking

Yapı Kredi Diversified Payment Rights Special Purpose

Finance Company (“Yapı Kredi SPC”) (*) UniCredit S.p.A. Cayman Islands Company

Yapı Kredi Faktoring A.Ş. (“Yapı Kredi Faktoring”) UniCredit S.p.A. Turkey Factoring

Yapı Kredi Finansal Kiralama A.O.

(“Yapı Kredi Finansal Kiralama”) UniCredit S.p.A. Turkey Leasing

Yapı Kredi Holding B.V. (“Yapı Kredi Holding”) UniCredit S.p.A. The Netherlands Financial Consulting

Yapı Kredi Invest LLC. (“Yapı Kredi Invest”) UniCredit S.p.A. Azerbaijan Brokerage

Yapı Kredi Koray Gayrimenkul Yatırım Ortaklığı A.Ş.

(“Yapı Kredi Koray”) Koray Group Companies Turkey Real Estate

Yapı Kredi Portföy Yönetimi A.Ş.

(“Yapı Kredi Portföy”) UniCredit S.p.A. Turkey Portfolio Management

Yapı Kredi Yatırım Menkul Değerler A.Ş.

(“Yapı Kredi Menkul”) UniCredit S.p.A. Turkey Brokerage

Yapı ve Kredi Bankası A.Ş. (“Yapı Kredi Bankası”) UniCredit S.p.A. Turkey Banking


Associates incorporation Business

Allianz Yaşam ve Emeklilik A.Ş. (“Allianz Emeklilik”) Turkey Insurance

Banque de Commerce et de Placements S.A. (“Banque de Commerce”) Switzerland Banking

(*) Although Yapı Kredi Bankası has no shareholding interest, the special purpose company established for securitization

transactions is included in the scope of consolidation.



KOÇ HOLDİNG A.Ş.



12


Other Sectors



Ayvalık Marina ve Yat İşletmeciliği San. Ve Tic. A.Ş. (“Ayvalık Marina”) Turkey Tourism

Divan Turizm İşletmeleri A.Ş. (“Divan”) Turkey Tourism

Düzey Tüketim Malları Sanayi Pazarlama A.Ş. (“Düzey”) Turkey Trading

Koç Sistem Bilgi ve İletişim Hizmetleri A.Ş. (“Koç Sistem”) Turkey Technology

Koç Yapı Malzemeleri Ticaret A.Ş. (“Koç Yapı Malzeme”) Turkey Trading

Marmaris Altınyunus Turistik Tesisleri A.Ş. (“Mares”) Turkey Tourism

Ram Dış Ticaret A.Ş. (“Ram Dış Ticaret”) Turkey Foreign Trade

RMK Marine Gemi Yapım Sanayi ve Deniz Taş. İşl. A.Ş. (“RMK Marine”) Turkey Ship Construction

Setur Servis Turistik A.Ş. (“Setur”) Turkey Tourism

Setur Yalova Marina İşletmeciliği A.Ş. (“Yalova Marina”) Turkey Tourism

Tat Gıda Sanayi A.Ş. (“Tat Gıda”) Turkey Food

Tek-Art Kalamış ve Fenerbahçe Marmara Turizm Tesisleri A.Ş. (“Tek-Art Marina”) Turkey Tourism

Zer Merkezi Hizmetler ve Ticaret A.Ş. (“Zer Ticaret”) Turkey Trading



Koçtaş Yapı Marketleri Ticaret A.Ş. (“Koçtaş Yapı Market”) Kingfisher Plc Turkey Retail

Netsel Turizm Yatırımları A.Ş. (“Netsel”) Torunlar GYO A.Ş. Turkey Tourism

For the purpose of segment presentation in these consolidated financial statements; Koç Holding’s stand-alone

financial statements have been included in the “Other” segment (Note 3).



KOÇ HOLDİNG A.Ş.



13

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 2.1 Basis of Presentation 2.1.1 Financial reporting standards The consolidated financial statements of the Group have been prepared in accordance with Turkish Accounting

Standards / Turkish Financial Reporting Standards (“TAS/TFRS”) promulgated by the Public Oversight

Accounting and Auditing Standards Authority (“POA”) that are set out in the 5th

article of the communiqué

numbered II-14.1 “Communiqué on the Principles of Financial Reporting In Capital Markets”

(“the Communiqué”) announced by the Capital Markets Board (“CMB”) on 13 June 2013 and published in

Official Gazette numbered 28676.

In accordance with the decision taken on 7 June 2013 by the CMB at its meeting numbered 20/670,

a new set of illustrative financial statements and guidance to it have been issued effective from the periods ended

after 31 March 2013 which is applicable for the companies that are subject to the Communiqué regarding the

Principles of Financial Reporting in Capital Markets. The accompanying consolidated financial statements are

prepared in accordance with the aforementioned illustrative financial statements.

In accordance with the Turkish Accounting Standard No:34 “Interim Financial Reporting”, entities are allowed

to prepare a complete or condensed set of interim financial statements. In this respect, the Group has preferred to

prepare condensed consolidated financial statements in the interim periods. Accordingly, these interim condensed

consolidated financial statements should be read in conjunction with the annual consolidated financial statements

for the year ended 31 December 2015.

Koç Holding, its Subsidiaries and Joint Ventures registered in Turkey maintain their books of account and

prepare their statutory financial statements in TL in accordance with the Turkish Commercial Code (“TCC”), tax

legislation and the Uniform Chart of Accounts issued by the Ministry of Finance, applicable Turkish insurance

laws for insurance companies and banking law, accounting principles and instructions promulgated by the

Banking Regulation and the Supervision Agency (“BRSA”) and TAS/TFRS together with notes and explanations

related to the accounting and financial reporting standards issued by POA in case of no specific regulations have

been introduced by these institutions. Foreign Subsidiaries, Joint Ventures and Associates maintain their books of

account in accordance with the laws and regulations in force in the countries in which they are registered. These

consolidated financial statements have been prepared under the historical cost conversion except for the financial

assets and liabilities presented at fair values, and the revaluations related to the differences between the carrying

value and fair value of the non-current assets recognised in business combinations. Adjustments and

restatements, required for the fair presentation of the consolidated financial statements in conformity with the

TAS/TFRS, have been accounted for in the statutory financial statements which are prepared in accordance with

the historical cost principle.

2.1.2 Comparatives and adjustment of prior periods’ financial statements

The current period condensed consolidated financial statements of the Group include comparative financial

information to enable the determination of the financial position and performance. Comparative figures are

reclassified, where necessary, to conform to the changes in the presentation of the current period condensed

consolidated financial statements.

Rent income amounting to TL4.809 thousand which was classified in “other operating income” in consolidated

income statement as of 31 March 2015, has been reclassified in “gains from investment activities”.

Following the organizational change in Koç Holding, Bilkom has been reported under Consumer Durables sector

(previously Other Sector) and Fiat Finans has been reported under Automotive sector (previously Finance sector)

in segment reporting prepared in accordance with the managerial approach. Additionally, THY Opet and Opet

Fuchs, the Joint Ventures owned by the Joint Ventures of the Group, have been included in the combined

financial information consistent with the managerial approach. Within the scope of respective changes, previous

period information of segment reporting (Note 3) has been restated for comparable presentation.



KOÇ HOLDİNG A.Ş.



14

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS(Continued)

2.1.3 EUR and USD amounts presented in the financial statements

EUR and USD amounts shown in the consolidated balance sheet prepared in accordance with the TAS/TFRS

have been translated from TL, as a matter of arithmetic computation only, at the official EUR and USD bid rates

announced by the CBRT on 31 March 2016 of TL3,2081 = EUR1 and TL2,8334 = USD1, respectively and EUR

and USD amounts shown in the consolidated statements of income, comprehensive income and cash flow have

been translated from TL, as a matter of arithmetic computation only, at the average EUR and USD bid rates

calculated from the official daily bid rates announced by the CBRT for the three month period ended 31 March

2016 of TL3,2438 = EUR1 and TL2,9438 = USD1, respectively, and do not form part of these interim

condensed consolidated financial statements.

2.2 Amendments in Turkey Financial Reporting Standards

The accounting policies applied in the preparation of the consolidated financial statements as of 1 January - 31

March 2016 are consistent with those applied in the preparation of the consolidated financial statements as of

31 December 2015, except for the new standards and amended TAS/TFRS standards which are valid as of 1

January 2016 and Turkey Financial Reporting Interpretations Committee’s (“TFRIC”) interpretations summarized

below.

Standards, amendments and interpretations effective as of 1 January 2016:

- TFRS 11 - Acquisition of an Interest in a Joint Operation (Amendment)

- TAS 16 and TAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments

to TAS 16 and TAS 38)

- TAS 16 - Property, Plant and Equipment and TAS 41 Agriculture (Amendment) - Bearer Plants

- TAS 27 - Equity Method in Separate Financial Statements - Amendments to TAS 27

- TFRS 10 and TAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint

Venture (Amendments)

- TFRS 10, TFRS 12 and TAS 28:Investment Entities: Applying the Consolidation Exception (Amendments

to TFRS 10 and TAS 28)

- TAS 1 - Disclosure Initiative (Amendments to TAS 1)

- Annual Improvements to TFRSs - 2012-2014 Cycle

These amendments did not have any impact on the financial position or performance of the Group.

Standards, amendments and improvements issued but not yet effective and not early adopted:

- TFRS 9 - Financial Instruments - Classification and measurement

The impacts of the new standards, amendments and improvements on the financial position and performance of

the Group are being assessed.

New standards, amendments and interpretations that are issued by the International Accounting Standard

Boards (IASB) but not issued by POA:

- Annual Improvements – 2010–2012 Cycle (IFRS 13 Fair Value Measurement - Basis for Conclusions)

- IFRS 15 - Revenue from Contracts with Customers

- Clarifications to IFRS 15 - Revenue from Contracts with Customers' (Amendment)

- IFRS 9 - Financial Instruments - Final standard (2014)

- IFRS 16 - Leases

- IAS 12 - Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses (Amendments)

- IAS 7 - Statement of Cash Flows (Amendments)

The impacts of the new standards, amendments and improvements on the financial position and performance of

the Group are being assessed.



KOÇ HOLDİNG A.Ş.



15

NOTE 2- BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.3 Changes in Accounting Policies

Any change in accounting policies resulting from the first time adoption of a new TAS/TFRS is made either

retrospectively or prospectively in accordance with the transition requirements of TAS/TFRS. Changes without

any transition requirement, material changes in accounting policies or material errors are corrected,

retrospectively by restating the prior period consolidated financial statements.

If changes in accounting estimates are related to only one period, they are recognised in the period when the

changes are applied; if changes in estimates are related to future periods, they are recognised both in the period

where the change is applied and in future periods prospectively. The Group doesn’t have any significant changes

in accounting policy and accounting estimates in the current period.

2.4 Summary of Significant Accounting Policies

The interim condensed consolidated financial statements for the period ended 31 March 2016 have been

prepared in accordance with TAS 34. The accounting policies used in the preparation of these interim condensed

consolidated financial statements for the period ended 31 March 2016 are consistent with those used in the

preparation of annual consolidated financial statements for the year ended 31 December 2015. Accordingly,

these interim condensed consolidated financial statements should be read in conjunction with the annual

consolidated financial statements for the year ended 31 December 2015.

Group accounting

There has been no change in total ownership interests and effective interests of the Subsidiaries, Associates and

Joint Ventures of the Group reported as of 31 March 2016 from interests reported as of 31 December 2015,

except for the Companies mentioned below: Proportion Direct and indirect Ownership interest Total of effective ownership interest held by Koç ownership interest held by Koç Holding Family members interest

31 March 31 December 31 March 31 December 31 March 31 December 31 March 31 December

Subsidiaries 2016 2015 2016 2015 2016 2015 2016 2015

Bakırköy Tankercilik (*) 34,95 - 100,00 - - - 100,00 -

Beko US (*) 40,51 - 100,00 - - - 100,00 -

Çengelköy Tankercilik (*) 34,95 - 100,00 - - - 100,00 -

Karaköy Tankercilik (*) 34,95 - 100,00 - - - 100,00 -

(*) Established in 2016.

2.5 Significant Accounting Estimates and Assumptions

Preparation of consolidated financial statements requires the usage of estimations and assumptions which may affect the reported amounts of assets and liabilities as of the balance sheet date, disclosure of contingent assets and liabilities and reported amounts of income and expenses during the financial period. The accounting assessments, forecasts and assumptions are reviewed continuously considering the past experiences, other factors and the reasonable expectations about the future events under current conditions. Although the estimations and assumptions are based on the best estimates of the management’s existing incidents and operations, they may differ from the actual results.

2.6 Convenience Translation into English of Consolidated Financial Statements

The accounting principles described in Note 2 (defined as Turkish Accounting Standards/Turkish Financial

Reporting Standards) to the accompanying consolidated financial statements differ from International Financial

Reporting Standards (“IFRS”) issued by the International Accounting Standards Board with respect to the

application of inflation accounting, classification of some income statement items and also for certain disclosure

requirements of the POA.



KOÇ HOLDİNG A.Ş.



16

NOTE 3 - SEGMENT REPORTING

The financial information of the Joint Ventures has been included in the segment results, prepared within the

framework of the Group’s managerial approach, by full consolidation method (as 100%). The segment reporting

information prepared in conformity with this approach is defined as “combined financial information”.

“Combined revenue” reported below is before intra and inter segment revenue eliminations. Other financial

information except for “combined revenue” represents the amounts after the related consolidation adjustments and

profit.

The reconciliations of the combined financial information to the amounts reported in the condensed consolidated

financial statements for the interim periods ended 31 March 2016 and 2015 are presented separately.

Consumer

1 January - 31 March 2016 Energy Automotive durables Finance Other Total

External revenue 11.062.873 8.669.223 3.876.756 5.920.371 1.188.837 30.718.060

Intra segment revenue 1.484.346 348.827 94.941 8.392 277.432 2.213.938

Inter segment revenue 44.672 101.478 3.557 12.037 714.039 875.783

Combined revenue 12.591.891 9.119.528 3.975.254 5.940.800 2.180.308 33.807.781

Combined gross profit 894.379 1.144.231 1.222.087 2.377.688 390.502 6.028.887

Operating expenses (575.870) (534.157) (934.315) (1.083.213) (434.293) (3.561.848) Other operating

income/expenses (net) (1)

32.682 7.519 42.841 (557.264) 1.461 (472.761) Exchange gains/losses and

credit finance income/charges

from operating activities (net) (2)

77.932 (37.780) (34.189) - (2.160) 3.803

Combined operating profit 429.123 579.813 296.424 737.211 (44.490) 1.998.081

Gains/losses from

investment activities (net) 14.446 (662) 1.732 21.967 14.106 51.589

Financial income/expenses (net) (282.618) (72.187) (147.374) - 50.437 (451.742)

Combined profit before tax 160.951 506.964 150.782 759.178 20.053 1.597.928

Tax income/expense (net) (31.007) 35.080 2.610 (170.564) 2.376 (161.505)

Combined net profit for the period 129.944 542.044 153.392 588.614 22.429 1.436.423

Net profit for the period (3)

51.009 211.452 62.764 196.607 (6.612) 515.220

(1) Provisions for loan impairment in Finance sector have been accounted for under “other operating income/expenses”

account

(2) Includes the foreign exchange gains/losses and credit finance income/charges arising from trading activities (trade

receivables and payables) of Non-Finance sectors.

(3) Represents consolidated net profit attributable to the equity holders of the parent.



KOÇ HOLDİNG A.Ş.



17

NOTE 3 - SEGMENT REPORTING (Continued)

Consumer

1 January - 31 March 2015 Energy Automotive durables Finance Other Total

External revenue 11.272.529 6.883.721 3.191.322 4.613.209 1.022.653 26.983.434

Intra segment revenue 1.745.267 647.194 34.363 7.367 238.016 2.672.207

Inter segment revenue 45.860 67.729 22.636 21.456 614.788 772.469

Combined revenue 13.063.656 7.598.644 3.248.321 4.642.032 1.875.457 30.428.110

Combined gross profit 842.583 928.670 894.849 1.979.096 322.715 4.967.913

Operating expenses (475.144) (441.882) (722.637) (988.997) (354.052) (2.982.712) Other operating

income/expenses (net) (1)

19.833 8.461 11.837 (391.737) (39.713) (391.319) Exchange gains/losses and

credit finance income/charges

from operating activities (net) (2)

(253.306) (6.412) 43.875 - (3.659) (219.502)

Combined operating profit 133.966 488.837 227.924 598.362 (74.709) 1.374.380

Gains from investment

activities (net) 1.474 3.458 313 11.893 8.898 26.036

Financial income/expenses (net) (265.218) (58.124) (112.282) - 42.559 (393.065)

Combined profit before tax (129.778) 434.171 115.955 610.255 (23.252) 1.007.351

Tax income/expense (net) 311.804 59.849 16.852 (121.658) (883) 265.964

Combined net profit for the period 182.026 494.020 132.807 488.597 (24.135) 1.273.315

Net profit for the period (3)

70.945 192.798 54.953 163.007 (22.497) 459.206

(1) Provisions for loan impairment in Finance sector have been accounted for under “other operating income/expenses”

account.

(2) Includes the foreign exchange gains/losses and credit finance income/charges arising from trading activities (trade

receivables and payables) of Non-Finance sectors.

(3) Represents consolidated net profit attributable to the equity holders of the parent.



KOÇ HOLDİNG A.Ş.



18


1 January- 1 January-

31 March 2016 31 March 2015

a) Revenue

Energy 12.591.891 13.063.656

Automotive 9.119.528 7.598.644

Consumer durables 3.975.254 3.248.321

Finance 5.940.800 4.642.032

Other 2.180.308 1.875.457

Combined 33.807.781 30.428.110

Less: Joint Ventures (Note 6.c) (18.815.286) (15.915.252)

Less: Consolidation elimination and adjustments (940.607) (753.425)

Consolidated 14.051.888 13.759.433

b) Operating profit

Energy 429.123 133.966

Automotive 579.813 488.837

Consumer durables 296.424 227.924

Finance 737.211 598.362

Other (44.490) (74.709)

Combined 1.998.081 1.374.380

Less: Joint Ventures (Note 6.c) (1.308.679) (1.045.332)

Add: Net profit shares of Joint Ventures (Note 6.b) 413.746 337.317

Consolidated 1.103.148 666.365

c) Depreciation and amortisation

Energy 214.202 146.106

Automotive 262.375 227.032


Finance 81.948 82.417

Other 30.687 25.030

Combined 689.049 571.835

Less: Joint Ventures (347.744) (309.547)

Consolidated 341.305 262.288



KOÇ HOLDİNG A.Ş.



19



31 March 2016 31 March 2015

d) Profit before tax

Energy 160.951 (129.778)

Automotive 506.964 434.171


Finance 759.178 610.255

Other 20.053 (23.252)

Combined 1.597.928 1.007.351

Less: Joint Ventures (Note 6.c) (1.263.994) (957.769)


Consolidated 747.680 386.899

e) Net profit for the period

Energy 129.944 182.026

Automotive 542.044 494.020


Finance 588.614 488.597

Other 22.429 (24.135)

Combined 1.436.423 1.273.315

Less: Joint Ventures (Note 6.c) (1.128.162) (904.657)


Less: Non-controlling interests (206.787) (246.769)

Consolidated (attributable to the equity holders of the parent) 515.220 459.206

f) Capital expenditures

Energy 377.096 797.200

Automotive 697.010 509.669


Finance 138.093 185.886

Other 17.883 36.039

Combined 1.375.725 1.647.874

Less: Joint Ventures (705.731) (552.291)

Consolidated 669.994 1.095.583



KOÇ HOLDİNG A.Ş.



20

NOTE 4 - CASH AND CASH EQUIVALENTS

31 March 2016 31 December 2015

Finance Non-Finance Total Finance Non-Finance Total

Cash in hand - 3.279 3.279 - 2.555 2.555

Cheques received - 49.013 49.013 - 62.040 62.040

Banks

- Demand deposits 14.560 340.880 355.440 23.777 314.887 338.664

- Time deposits 34.978 13.965.226 14.000.204 51.056 9.868.953 9.920.009

Other 77.367 184.877 262.244 57.251 172.812 230.063

126.905 14.543.275 14.670.180 132.084 10.421.247 10.553.331

As of 31 March 2016, total blocked deposits amount to TL861.262 thousand (31 December 2015: TL823.645

thousand). TL861.030 thousand of the related amount consists of the revenue shares collected by Tüpraş, a

Subsidiary of the Group, as indicated in the Petroleum Market License Regulation . (31 December 2015:

TL823.645 thousand).

NOTE 5 - FINANCIAL ASSETS


Short-term Long-term Total Short-term Long-term Total

Available-for-sale financial assets - 137.561 137.561 - 136.366 136.366

- 137.561 137.561 - 136.366 136.366

The list of equity securities and the shareholding rates are as follows:


(%) (%)

Listed:

Altınyunus Çeşme Turistik Tesisler A.Ş. 19.304 30,00 18.349 30,00

19.304 18.349

Unlisted:

Makmarin Kaş Marina İşletmeciliği Turizm ve Ticaret A.Ş. 23.642 50,00 23.642 50,00

Setur Antalya Marina İşletmeciliği A.Ş. 22.589 100,00 22.589 100,00

Alaşehir Alkollü İçkiler Sanayi ve Ticaret A.Ş. 21.000 93,00 21.000 93,00

Tanı Pazarlama ve İletişim Hizmetleri A.Ş. 18.662 88,00 19.364 88,00

Beldesan Otomotiv Yan San. ve Tic. A.Ş 6.121 91,82 6.121 91,82

Set Air Hava Taşımacılığı ve Hizmetleri A.Ş. 4.037 70,00 4.037 70,00

Körfez Hava Ulaştırma A.Ş. 4.000 100,00 4.000 100,00

Mytilini Marina S.A. 4.769 50,00 3.859 50,00

Other 13.437 13.405

118.257 118.017

137.561 136.366



KOÇ HOLDİNG A.Ş.



21

NOTE 5 - FINANCIAL ASSETS (Continued)

Subsidiaries and joint ventures, in which the Group, together with Koç Family members, have attributable interests

of 20% or more but are not material for the consolidated financial statements or the Group does not have a

significant influence, are not included in the scope of consolidation and classified as available-for-sale financial

assets. These financial assets are measured at fair value or carried at cost less any impairment when fair values

cannot be reliably measured.

Total assets, revenues and net profit of the unconsolidated subsidiaries and joint ventures are below 1% of the total

consolidated assets, revenues and net profit of the Group.

NOTE 6 - JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD

a) The details of carrying values and consolidation rates subject to equity accounting of Joint Ventures are as

follows:


% Amount % Amount

Koç Finansal Hizmetler 44,12 8.810.586 44,12 8.631.207

Ford Otosan 38,46 1.114.679 38,46 1.172.074

Tofaş 37,59 905.850 37,59 970.459

Opet 41,33 462.836 41,33 497.399

Türk Traktör 37,50 161.582 37,50 244.090

Other 521.539 531.590

11.977.072 12.046.819

b) The movement of Joint Ventures is as follows:

2016 2015

Beginning of the period - 1 January 12.046.819 11.006.282

Shares of profit/loss 413.746 337.317

Shares of other comprehensive income/(loss) (35.407) (27.050)

Dividend income from Joint Ventures (*)

(435.106) (579.384)

Contribution to capital increases in Joint Ventures - 2.000

Profit elimination (13.142) (2.646)

Dividend paid to Joint Ventures 162 180

End of the period - 31 March 11.977.072 10.736.699

(*) As of 31 March 2016, dividend income amounting to TL50.458 thousand has been collected (31 March 2015: TL177.646

thousand).



KOÇ HOLDİNG A.Ş.



22

NOTE 6 - JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD (Continued) Shares of profit/loss of Joint Ventures: 31 March 2016 31 March 2015 Koç Finansal Hizmetler 209.058 173.783 Ford Otosan 78.252 89.375 Tofaş 89.830 77.240 Opet 11.564 (19.244) Türk Traktör 30.095 16.536 Other (5.053) (373)

413.746 337.317

Shares of other comprehensive income/(loss) of Joint Ventures: Koç Finansal Hizmetler (29.680) (28.909) Ford Otosan (694) (2.546) Tofaş (4.269) 2.283 Opet (662) 2.005 Türk Traktör (102) 6 Other - 111

(35.407) (27.050)

Dividend income/(capital increases) from Joint Ventures: Koç Finansal Hizmetler - 142.516 Ford Otosan 134.953 76.924 Tofaş 137.195 182.300 Opet 43.397 72.328 Türk Traktör 112.500 75.000 Other 7.061 28.316

435.106 577.384

c) Significant income statement items of Joint Ventures are as follows:

Revenue

Koç Finansal Hizmetler(*)

5.831.733 4.559.875 Ford Otosan 4.185.416 3.563.332 Tofaş 2.802.132 2.186.252 Opet 3.820.320 3.493.447 Türk Traktör 885.833 693.388 Other 1.289.852 1.418.958

18.815.286 15.915.252

Operating profit

Koç Finansal Hizmetler 725.489 589.879 Ford Otosan 237.037 216.756 Tofaş 150.399 178.197 Opet 83.975 (15.867) Türk Traktör 112.995 68.062 Other (1.216) 8.305

1.308.679 1.045.332

(*) Includes gross revenue (interest, commission and other banking revenue) of Koç Finansal Hizmetler.



KOÇ HOLDİNG A.Ş.



23

NOTE 6 - JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD (Continued)

31 March 2016 31 March 2015 Profit before tax Koç Finansal Hizmetler 747.464 600.532 Ford Otosan 210.409 188.505 Tofaş 173.349 178.741 Opet 45.474 (44.567) Türk Traktör 98.550 54.868 Other (11.252) (20.310)

1.263.994 957.769

Net profit for the period (before non-controlling interests)

Koç Finansal Hizmetler 579.204 481.432 Ford Otosan 203.473 232.395 Tofaş 240.487 205.492 Opet 33.550 (37.718) Türk Traktör 80.253 44.095 Other (8.805) (21.039)

1.128.162 904.657

d) Other significant matters regarding the Joint Ventures are as follows:

i) The tax audit reports related with 2008-2012 financial years that have been prepared following a tax inspection in Tofaş, a Joint Venture of the Group, were delivered to the Company in 2013 by the Presidency of Tax Audit Committee of Istanbul Large Scaled Tax Payers. In these tax audit reports, some payments made to foreign based tax payer institutions were criticised in terms of VAT and withholding tax. In accordance with the tax audit reports, Tofaş was obliged to pay a total of TL40,8 million tax base and TL64,8 million tax penalty for the years 2008-2012.

According to the management of Tofaş, practices subject to criticism are in compliance and consistent with the related regulations and international agreements regarding the prevention of double taxation. Tofaş is planning to claim all its legal rights including settlement and all other legal processes with regard to these reports. In case of a possible legal process, it is expected that the outcome is more likely to result in favour of Tofaş, therefore no provision was recognised in the financial statements of Tofaş.

ii) Ford Otosan, a Joint Venture of the Group, obtained “Large Scale Investment Incentive Certificate within the scope of the “Council of Ministers decision on Government Incentives on Investments” amounting to TL1.342.220 thousand in December 2010, for its New Generation Transit model and for its new product Transit Custom model. The incentive certificate has a 30% contribution rate and TL559.295 thousand of capital expenditure has been realised within the scope of this incentive and expenditures related to the certificate is completed as of the balance sheet date.

In accordance with “Council of Ministers decision on Government Incentives on Investments” for rearranging investment incentive system which was published on Official Gazette as of 19 June 2012, Ford Otosan has reconsidered its ongoing investments and obtained Priority Investment Incentive Certificates amounting to TL1.194.398 thousand for the New Generation Transit investment mentioned above and TL697.394 thousand for the new model Transit Courier which will be produced in light commercial vehicle segment. In addition to the vehicle investments, Priority Investment Incentive Certificate amounting to TL187.379 thousand has been obtained in 2013 for the production of new 6 and 4 cylinder engines which will be used in Cargo trucks and Transit vehicles and Priority Investment Incentive Certificate amounting to TL331.362 thousand has been obtained in December 2014 for Euro 6 emission truck investment which will be started by 2018. Within the scope of these incentives investment, TL2.010.299 thousand of capital expenditure has been incurred as of the balance sheet date.

As of 31 March 2016, Ford Otosan accounted for TL722.216 thousand deferred tax asset regarding the investment incentives (31 December 2015: TL718.283 thousand).



KOÇ HOLDİNG A.Ş.



24

NOTE 7 - TRADE RECEIVABLES AND PAYABLES

Trade receivables 31 March 2016 31 December 2015

Trade receivables 6.263.145 6.985.114

Notes and cheques receivable 2.116.792 2.390.208

Less: Provision for doubtful receivables (211.876) (213.333)

Less: Unearned finance income (27.216) (30.578)

8.140.845 9.131.411

Due from related parties (Note 23) 1.171.964 908.959

9.312.809 10.040.370

Short-term trade receivables 9.210.724 9.712.431

Long-term trade receivables 102.085 327.939

9.312.809 10.040.370

Tüpraş and Arçelik, the Subsidiaries of the Group, have offset TL648.251 thousand (31 December 2015:

TL778.111 thousand) and TL441.846 thousand (31 December 2015: TL382.302 thousand) respectively from its

trade receivables that are collected from factoring companies as a part of irrevocable factoring agreements as of

31 March 2016.

Movement in the provision for doubtful receivables is as follows:

2016 2015

Beginning of the period - 1 January 213.333 191.217

Increases during the period 2.183 3.678

Collections (1.176) (907)

Write-offs (*)

(2.758) (375)

Currency translation differences 294 831

End of the period - 31 March 211.876 194.444

(*) Doubtful receivables, for which no possibility of collection is foreseen, are written off from the records along with their

related provisions.

Trade payables 31 March 2016 31 December 2015

Trade payables 6.571.519 6.965.352

Less: Unearned finance expense (15.349) (17.201)

6.556.170 6.948.151

Due to related parties (Note 23) 618.234 915.813

7.174.404 7.863.964



KOÇ HOLDİNG A.Ş.



25

NOTE 8 - RECEIVABLES FROM FINANCE SECTOR OPERATIONS


Performing loans 2.796.794 2.818.881

Loans under legal follow-up 92.314 87.476

Gross 2.889.108 2.906.357

Less: Provision for impairment (81.682) (73.810)

Net 2.807.426 2.832.547

Short-term receivables from finance sector operations 1.546.564 1.545.561

Long-term receivables from finance sector operations 1.260.862 1.286.986

2.807.426 2.832.547

Movement of provision for impairment is as follows:

2016 2015

Beginning of the period - 1 January 73.810 46.892

Increase in provisions for loan impairment 10.751 6.083

Recoveries of amounts previously provisioned (2.879) (1.759)

End of the period - 31 March 81.682 51.216

NOTE 9 - INVENTORIES


Raw materials and supplies 2.037.010 2.267.486

Finished goods 1.853.690 1.792.687

Work in progress 714.351 646.846

Merchandise 976.362 865.035

Goods in transit 206.788 175.553

Other inventories 114.888 107.563

Less: Provision for impairment (87.486) (175.140)

5.815.603 5.680.030



KOÇ HOLDİNG A.Ş.



26

NOT 10 - ASSETS USED IN OPERATIONAL LEASE

2016 2015

Net book value at the beginning of the period - 1 January 1.451.758 1.165.004

Additions 313.979 186.561

Disposals (153.226) (132.336)

Transfers (*)

1.310 1.116

Currency translation differences 257 -

Current period depreciation (17.901) (19.589)

Net book value at the end of the period - 31 March 1.596.177 1.200.756

(*) Includes transfers from property, plant and equipment.


Current assets used in operational lease 774.194 459.320

Non-current assets used in operational lease 821.983 992.438

1.596.177 1.451.758

NOTE 11 - PROPERTY, PLANT AND EQUIPMENT

2016 2015

As of 1 January

Cost 26.409.371 24.348.795

Accumulated depreciation (8.274.271) (7.478.505)

Net book value 18.135.100 16.870.290

Net book value at the beginning of the period 18.135.100 16.870.290

Additions 292.581 863.516

Disposals (57.980) (53.632)

Transfers (*)

(1.358) (836)

Currency translation differences 9.361 36.935

Current period depreciation (268.793) (200.921)

Net book value at the end of the period 18.108.911 17.515.352

As of 31 March

Cost 26.624.779 25.184.858

Accumulated depreciation (8.515.868) (7.669.506)

Net book value 18.108.911 17.515.352

(*) Includes transfers amounting to TL48 thousand intangible assets (Note 12) and TL1.310 thousand to assets used in

operational lease.( 31 March 2015: Includes transfers amounting to TL280 thousand intangible assets (Note 12) and

TL1.116 thousand to assets used in operational lease.)



KOÇ HOLDİNG A.Ş.



27

NOTE 12 - INTANGIBLE ASSETS

2016 2015

As of 1 January

Cost 2.947.215 2.676.340

Accumulated amortisation (1.070.977) (866.873)

Net book value 1.876.238 1.809.467

Net book value at the beginning of the period 1.876.238 1.809.467

Additions 63.434 45.506

Disposals - (2.282)

Transfers (*)

48 (280)


Current period amortisation (56.012) (45.029)

Net book value at the end of the period 1.886.212 1.835.470

As of 31 March

Cost 3.010.400 2.747.372

Accumulated amortisation (1.124.188) (911.902)

Net book value 1.886.212 1.835.470

(*) Includes transfers to property, plant and equipment. (31 March 2015: Includes transfers from property, plant and equipment).

NOTE 13 - GOODWILL

2016 2015

Net book value at the beginning of the period - 1 January 2.899.913 2.905.658

Currency translation differences 995 12.414

Net book value at the end of the period - 31 March 2.900.908 2.918.072

The allocation of the goodwill is as follows:


Tüpraş 2.736.463 2.736.463

Defy Group 154.697 153.735

Other 9.748 9.715

2.900.908 2.899.913



KOÇ HOLDİNG A.Ş.



28

NOTE 14 - BORROWINGS


Finance Non-Finance Total Finance Non-Finance Total

Short-term borrowings (*)

:

Bank borrowings 1.303.255 6.574.919 7.878.174 1.498.182 5.380.627 6.878.809

Debt securities in issue 369.033 494.408 863.441 314.944 126.578 441.522

Factoring payables - 47.358 47.358 - 39.628 39.628

Financial leasing payables - 21.626 21.626 - 19.291 19.291

1.672.288 7.138.311 8.810.599 1.813.126 5.566.124 7.379.250

Long-term borrowings:

Bank borrowings 737.581 9.146.788 9.884.369 789.429 8.969.416 9.758.845

Debt securities in issue 275.000 8.844.935 9.119.935 120.000 7.104.207 7.224.207

Financial leasing payables - 170.406 170.406 - 177.085 177.085

1.012.581 18.162.129 19.174.710 909.429 16.250.708 17.160.137

2.684.869

25.300.440

27.985.309

2.722.555

21.816.832

24.539.387

(*) Includes short-term portion of long-term borrowings.

Long-term debt securities issued:

2016 :

On 15 March 2016, Koç Holding completed the bond issue, quoted on the Irish Stock Exchange, with a nominal

value of USD750 million, maturity of 7 years, coupon payment in every 6 months, principal and coupon

payments at the end of maturity and an annual interest rate of 5,40 %.

On 28 January 2016, Aygaz, a Subsidiary of the Group, completed the bond issue with a nominal value of TL75

million, maturity of 728 days, coupon payment in every 6 months an annual interest rate of 13,09%.

Koç Finansman, a Subsidiary of the Group, completed the bond issue with a nominal value of TL205 million,

maturities between 15 and 18 months, principle and coupon payments at the end of maturity and annual interest

rates between 11,79% and 12,65%.

2015 and before :

Aygaz, a Subsidiary of the Group, completed bond issues on 18 March 2015 and 30 March 2015, respectively;

with a nominal value of TL100 million, maturity of 728 days,coupon payments in every 6 months, an annual

interest rate of 10,55%, and with a nominal value of TL60 million, maturity of 1.092 days, coupon payments in

every 3 months, an annual interest rate of 10,37%.

On 19 January 2015, Tüpraş, a Subsidiary of the Group, completed the bond issue with a nominal value of

TL200 million, maturity of 728 days, coupon payments in every 6 months, principal and coupon payments at the

end of maturity and an annual interest rate of 8,7995%.

On 26 December 2014,Tat Gıda, a Subsidiary of the Group, completed the bond issue with a nominal value of

TL50 million and maturity of 2 years, coupon payments in every 6 months, principle and coupon payments at the

end of maturity and an annual interest rate of 9,68 %.

On 16 September 2014, Arçelik, a Subsidiary of the Group, completed the bond issue, quoted on the Irish Stock

Exchange, with a nominal value of EUR350 million, maturity of 7 years, coupon payment in each year, principal

and coupon payments at the end of maturity and an annual interest rate of 4%.



KOÇ HOLDİNG A.Ş.



29

NOTE 14 - BORROWINGS (Continued)

On 24 April 2013, Koç Holding completed the bond issue, quoted on the Irish Stock Exchange, with a nominal

value of USD750 million, maturity of 7 years, coupon payment in every 6 months, principal and coupon payment at

the end of maturity and an annual interest rate of 3,568%.

On 3 April 2013, Arçelik, a Subsidiary of the Group, completed the bond issue, quoted on the Irish Stock

Exchange, with a nominal value of USD500 million, maturity of 10 years, coupon payment in every 6 months,

principal and coupon payments at the end of maturity and an annual interest rate of 5,125%.

On 2 November 2012, Tüpraş completed the bond issue, quoted on the London Stock Exchange, with a nominal

value of USD700 million, maturity of 5,5 years, coupon payment in every 6 months, principal and coupon

payments at the end of maturity and an annual interest rate of 4,168%.

Koç Finansman, a Subsidiary of the Group, has bond issues with a total nominal value of TL425 million,

maturities 24 months, principal and coupon payments at the end of maturity and an annual interest rates between

8,96% and 12,90%.

Other major long term borrowings:

The loan obtained in 2006 in order to finance the acquisition cost of Tüpraş shares, amounting to USD1.800

million from a consortium comprising of Akbank T.A.Ş. Malta Branch, Türkiye Garanti Bankası A.Ş.

Luxembourg Branch, Türkiye İş Bankası A.Ş. Bahrain Offshore Branch, Standard Bank Plc., Türkiye Vakıflar

Bankası T.A.O. Bahrain Offshore Branch and Türkiye Halk Bankası A.Ş. with a maturity of 10 years and

bearing an interest rate of Libor+2,3 until 2013 and an interest rate of Libor+2,8 thereafter; of which the

remaining balance amounting to USD248,1 million, was prepaid on 30 March 2015. In order to pay the related

loan, a loan amounting to TL294 million was obtained from Türkiye Halk Bankası A.Ş. on 30 March 2015 with

a fixed interest rate of 10,5% and a loan amounting to TL350 million was obtained from Akbank T.A.Ş. with a

fixed interest rate of 10,06%. Both of the loans consist of equal principal installments and interest payments on

15 April 2016 and 17 April 2017.

Tüpraş, a Subsidiary of the Group, signed three different loan agreements regarding the financing of the Fuel Oil

Conversion Project in 2011. Tüpraş commenced to utilize the related loans in 2011 and continued to utilize in

2012 and in 2015. The two tranches of the financing package; insured by the Spanish export credit Agency

(CESCE) and the Italian export credit agency (SACE) are non-recourse loans for 4 years and with a maximum

12 years maturity date. The third tranche is also a non-recourse loan for 4 years with a maximum 7 years

maturity date. As of 31 December 2015, the amount of loan utilised for insurance payments and capital

expenditures is USD1.988 million. USD148 million of a payment was made at the initial payment date on 15

October 2015, and the remaining balance of the loan is USD1.850 million as of 31 March 2016.

The redemption schedule of long-term bank borrowings is as follows:


1-2 years 4.148.448 4.679.092

2-3 years 3.960.394 4.300.426

3-4 years 1.474.211 955.844

4-5 years 3.277.765 2.913.649

5 years and over 6.313.892 4.311.126

19.174.710 17.160.137



KOÇ HOLDİNG A.Ş.



30

NOTE 15 - TAX ASSETS AND LIABILITIES


Current income tax liabilities

Domestic 61.792 371.551

Foreign 1.489 13.062

Less: Prepaid income tax (22.184) (159.541)

Current income tax liabilities (net) 41.097 225.072

Deferred tax liabilities

Domestic (180.427) (195.478)

Foreign (153.055) (149.635)

(333.482) (345.113)

Deferred tax assets

Domestic 3.082.584 3.170.275

Foreign 75.226 73.567

3.157.810 3.243.842

Deferred tax assets (net) 2.824.328 2.898.729

Turkish tax legislation does not permit a parent company,consolidated tax return. Therefore, tax liabilities, as

reflected in consolidated financial statements, have been calculated on a separate-entity basis.

The corporation tax rate is 20% in Turkey. Corporation tax is payable on the total income of the company after

adjusting for certain disallowable expenses, income not subject to tax and allowances.



KOÇ HOLDİNG A.Ş.



31

NOTE 15 - TAX ASSETS AND LIABILITIES (Continued)

Koç Holding, its Subsidiaries and Joint Ventures, recognise deferred tax assets and liabilities based upon temporary

differences arising between their financial statements prepared in accordance with TAS/TFRS and the Turkish tax

legislations.

The breakdown of cumulative temporary differences and deferred tax assets and liabilities provided using

principal tax rates are as follows:

Cumulative temporary Deferred tax

differences assets/(liabilities)

31 March 31 December 31 March 31 December

2016 2015 2016 2015

Property, plant and equipment and intangible assets 4.836.014 4.693.843 (981.202) (956.386)

Investment incentives (1)

(7.969.662) (7.969.662) 3.656.588 3.656.588

Investment incentives to be offset (-) (1)

- - (434.712) (344.638)

Deductible tax losses and other tax advantages(2)

(2.831.877) (2.852.402) 318.073 323.716

Provision for employment termination benefits (422.249) (419.585) 84.447 83.990

Warranty and assembly provisions (352.152) (327.842) 72.269 67.507

Inventories (111.696) (109.082) 22.497 21.883

Provisions for unused vacations (64.406) (62.487) 12.881 12.498

Provisions for lawsuits (56.310) (63.957) 11.369 12.792

Expense accruals (net) (52.483) (36.942) 10.497 7.579

Deferred income (45.131) (49.851) 9.028 9.970

Unearned finance income (net) 68.744 47.586 (13.750) (9.518)

Derivative financial instruments 173.021 444.803 (34.616) (88.959)

Other (net) (532.344) (595.040) 90.959 101.707

Deferred tax assets (net) 2.824.328 2.898.729

(1) For the Residuum Upgrade Project (RUP), in the first period of 2011, within the scope of the decree of the Council of

Ministers dated 14 July 2009 and numbered 2009/15199, Tüpraş, a Subsidiary of the Group, was granted a large-scaled

investment incentive. Within the scope of the subject legislation, Tüpraş can deduct 30% of its investment expenditures

related with the new investment, with a rate of 50% from tax base in accordance with the legislation provisions, at the

time investment is completed and the revenue is started to be recognised. As of 7 October 2013, Residuum Upgrading

Project was granted Strategic Investment Incentive by Incentive Implementation and Foreign Investment Department of

Ministry of Economy of Republic of Turkey that would be applicable after 19 October 2012. Within the scope of the

Strategic Investment, Tüpraş can deduct 50% of its investment expenditures related with the new investment, with a

rate of 90% from tax base in accordance with the legislation provisions. Accordingly, as of 31 March 2016, investment

expenditures amounting to TL7.969.662 thousand (31 December 2015: TL7.969.662 thousand) have been made and tax

credits amounting to TL3.656.588 thousand (31 December 2015: TL3.656.588 thousand) have been realised to be used

in future periods. Moreover, as of 31 March 2016 within the scope of the Strategic Investment Tüpraş offset TL434.712

thousand from tax base (31 December 2015: TL344.638 thousand).

(2) Gains of Arçelik, a Subsidiary of the Group, arising from investments under incentive certificate are subject to corporate

income tax at reduced rates being effective from the financial year which the investment starts to be operated partially

or entirely till the period that investment reaches the contribution amount. The tax court approved that the corporate

income tax at reduced rates is determined by deducting accumulated depreciation in the calculation of the net value of

property plant and equipment. In this context, the tax advantage of TL258.026 thousand as of 31 March 2016 (31

December 2015: TL254.274 thousand) that Arçelik will benefit in the foreseeable future is recognised as deferred tax

asset and reflected in the consolidated financial statements

Net deferred tax assets and liabilities recognised in the Subsidiaries’ financial statements prepared in accordance

with TAS/TFRS, are separately classified under deferred tax assets and liabilities accounts in Koç Holding’s

consolidated balance sheet. Temporary differences and deferred tax assets and liabilities presented above, which are

prepared on the basis of gross amounts, present the net deferred tax position.



KOÇ HOLDİNG A.Ş.



32

NOTE 15 - TAX ASSETS AND LIABILITIES (Continued)

The redemption schedule of carry forward tax losses which are not considered in deferred tax calculation is as

follows:


Up to 1 year 411.535 370.827

Up to 2 years 89.467 23.835

Up to 3 years 208.436 209.980

Up to 4 years 118.409 141.725

5 years and above 552.799 478.683

1.380.646 1.225.050

Movements in deferred tax assets / (liabilities) are as follows:

2016 2015

Beginning of the period - 1 January 2.898.729 2.109.246

Charge to the income statement 38.450 350.127

Charge to equity:

- Financial assets fair value reserve (48) 87

- Hedging reserve (24.281) 33.917

- Actuarial gain/loss 804 1.222

Incentive income offsetted (88.240) -

Currency translation differences (1.086) (2.120)

End of the period - 31 March 2.824.328 2.492.479

NOTE 16 - PROVISIONS

a) Short-term provisions: 31 March 2016 31 December 2015

Cost accruals of construction contracts 312.061 288.845

Provisions for warranty and assembly 283.013 270.825

Special Consumption Tax (SCT) provision on imported LPG 66.326 68.496

Provisions for lawsuits and penalties 49.352 46.354

Provision for Energy Market Regulation Authority participation share 25.661 21.282

Other 144.370 124.029

880.783 819.831

b) Long-term provisions

Warranty provision 145.851 137.239

Other 1.186 -

147.037 137.239



KOÇ HOLDİNG A.Ş.



33

NOT 17 - OTHER RECEIVABLES AND PAYABLES a) Other receivables 31 March 2016 31 December 2015 VAT receivables 493.063 533.235 Taxes and funds deductible 247.368 229.766

740.431 763.001

b) Other payables Taxes and duties payable 1.998.421 2.315.723 Social security premiums payable 70.470 110.347

2.068.891 2.426.070

NOTE 18 - OTHER ASSETS AND LIABILITIES a) Other current assets 31 March 2016 31 December 2015

Prepaid expenses 280.555 234.375 Advances given 261.530 241.297 Deposits and guarantees given 26.254 28.956 Assets obtained as collaterals 10.137 10.255 Income accrual on commodity hedge

(*) - 445.148

Other 223.260 107.893

801.736 1.067.924

(*)Tüpraş, a Subsidiary of the Group, has entered into commodity hedge transactions, maturing as of 31 December 2015, for

12 million barrels of inventory exposed to commodity price risk arising from fluctuations in crude oil prices. The income accrual regarding the aforementioned transactions has been collected as of 8 January 2016

b) Other non-current assets Spare parts and other materials 928.453 862.494 Advances given 202.354 116.547 Prepaid expenses 177.077 184.493 Other 21.628 22.812

1.329.512 1.186.346

c) Other current liabilities Revenue share

(*) 865.260 827.793

Accruals for sales and incentive bonus 274.124 269.635 Advances received 227.464 300.770 Dividend payables 216.191 - Payables to personnel and premium accruals 205.834 288.685 Deferred income 126.445 115.880 Accruals for license expenses 51.717 50.048 Deposits and guarantees received 26.577 27.073 Other 303.517 261.102

2.297.129 2.140.986

(*) In accordance with the Petroleum Market License Regulation and Liquefied Petroleum Gas (“LPG”) Market Regulation,

revenue shares collected by Tüpraş, but not recognised in the statement of comprehensive income, have been recorded as revenue share within “Other current liabilities” and blocked in banks as demand deposits with special interest rates within “Cash and cash equivalents” according to the decision of National Petroleum Reserves Commission.



KOÇ HOLDİNG A.Ş.



34

NOTE 18 - OTHER ASSETS AND LIABILITIES (Continued)

d) Other non-current liabilities 31 March 2016 31 December 2015

Deposits and guarantees received 84.567 83.953

Deferred income 60.593 59.505

Other 47.586 63.050

192.746 206.508

NOTE 19 - EQUITY

Share Capital

Koç Holding adopted the registered share capital system available to companies registered with the CMB. Koç

Holding’s registered and issued share capital is as follows:

31 March 2016

Limit on registered share capital (historical) 5.000.000

Issued share capital in nominal value 2.535.898

Companies in Turkey may exceed the limit on registered share capital in the event of the issuance of free capital

shares to existing shareholders.

The shareholding structure of Koç Holding is as follows:


% Share Amount % Share Amount

Temel Ticaret ve Yatırım A.Ş. 42,59 1.079.984 42,59 1.079.984

Koç Family Members 24,52 621.881 24,52 621.881

Rahmi M. Koç ve Mahdumları Maden, İnşaat,

Turizm, Ulaştırma, Yatırım ve Ticaret A.Ş. 1,40 35.386 1,40 35.386

Total Koç Family members and companies

owned by Koç Family members 68,51 1.737.251 68,51 1.737.251

Vehbi Koç Vakfı 7,26 184.172 7,26 184.172

Koç Holding Emekli ve Yardım Sandığı Vakfı 1,99 50.452 1,99 50.452

Other 22,24 564.023 22,24 564.023

Paid-in share capital 100,00 2.535.898 100,00 2.535.898

Adjustment to share capital (*)

967.288 967.288

Total share capital 3.503.186 3.503.186

(*) Adjustment to share capital includes the restatement effect of cash and cash equivalent contributions to share capital

measured in accordance with TAS 29 and fair value differences of share issues within the context of acquisitions and

mergers.



KOÇ HOLDİNG A.Ş.



35

NOTE 19 - EQUITY (Continued)

The analysis of shares by group is as follows:

Group Unit of shares TL’000 Nature of shares

A 67.877.342.230 678.773 Registered

B 185.712.462.770 1.857.125 Registered

253.589.805.000 2.535.898

In the Articles of Association (“the Articles”) Koç Holding sets out the following privileges for A-group shares:

1. In accordance with Article 6, pre-emptive rights are used in purchase of new shares issued for their own

groups; however, pre-emptive rights not used by B-group shareholders, can be used by A-group shareholders

within the terms of CMB Legislation.

2. In accordance with Article 15 paragraph “c”, A-group shareholders have two voting rights for each share

owned at the General Assembly meetings (except for resolutions to change the Articles and decisions given for

filing release and liability suits).

Other Comprehensive Income/Expense


Items not to be reclassified to profit/loss:

Non-current assets revaluation fund 30.981 30.688

Actuarial loss/gain (50.450) (47.948)

(19.469) (17.260)

Items to be reclassified to profit/loss:


Financial assets fair value reserve (294) (68.566)

Hedging reserve (530.521) (461.020)

- Cash flow hedge (315.156) (249.930)

- Net investment hedge (215.365) (211.090)

(213.384) (229.996)

The movements in other comprehensive income/expense are presented in the statement of comprehensive income

and statement of changes in equity.

Restricted Reserves

The details of the restricted reserves are as follows:


Legal reserves 319.861 319.861

Special reserves 2.144.577 2.144.577

2.464.438 2.464.438

Within the scope of the Exemption for Sale of Participation Shares, the 75% portion of gains in statutory financial statements arising from the sale of investments was transferred to “Special Reserves”. As a result of the expiration of five year period, TL2.137.978 thousand of the special reserve balance become distributable without creating an additional corporate tax burden.



KOÇ HOLDİNG A.Ş.



36

NOTE 20 - ASSETS HELD FOR SALE

i) The part amounting to TL170.506 thousand (138 apartments) of the properties delivered within the scope of the

project realised jointly with KİPTAŞ has been transferred from investment property to assets held for sale in

2014 since they are intended to be sold in the short term. As of 31 March 2016, sale of the part of the property

with a net book value of TL139.890 thousand (111 apartments) was completed (31 December 2015:TL124.255

thousand).

ii) Due to the liquidation process of Otoyol Sanayi, a Subsidiary of the Group, assets and liabilities of the

company have been classified as held for sale in accordance with TFRS 5 in the consolidated financial

statements as of 31 March 2016 and 31 December 2015.

A summary of information regarding assets and liabilities held for sale is as follows:

Assets held for sale 31 March 2016 31 December 2015

Cash and cash equivalents 9.404 9.441

Investment properties 30.616 46.251

Property, plant and equipment - 38.187

Other assets 203 160

40.223 94.039

Liabilities related to assets held for sale 31 March 2016 31 December 2015

Provision for employment termination benefits 155 143

Other liabilities 2.285 2.329

2.440 2.472



KOÇ HOLDİNG A.Ş.



37

NOTE 21 - OTHER OPERATING INCOME/EXPENSES


31 March 2016 31 March 2015

Other operating income Foreign exchange gains arising from trading activities 217.183 514.516

Credit finance income arising from trading activities 49.397 30.781

Income from claims and grants 47.944 21.120

Reversals of provisions 7.888 3.502

Other 28.886 21.080

351.298 590.999

Other operating expenses Foreign exchange losses arising from trading activities (193.616) (733.858)

Credit finance charges arising from trading activities (17.822) (14.361)

Provision expenses for doubtful receivables and loans (12.075) (8.871)

Provisions for lawsuits and penalties (8.553) (36.609)

Other (20.426) (23.546)

(252.492) (817.245)

NOTE 22 - FINANCIAL INCOME/EXPENSES


31 March 2016 31 March 2015

Financial income

Foreign exchange gains (*)

578.919 709.462

Interest income 170.944 105.576

Gains on derivative instruments 59.703 358.375

Other financial income 651 670

810.217 1.174.083

Financial expenses

Foreign exchange losses (*)

(608.108) (1.158.720)

Interest expenses (350.197) (249.545)

Losses on derivative instruments (214.375) (51.627)

Other financial expenses (16.677) (5.335)

(1.189.357) (1.465.227)

(*) Foreign exchange income / expenses arising from trading activities (trade receivables and payables) are accounted for

under “other operating income/expense”.



KOÇ HOLDİNG A.Ş.



38

NOTE 23 - RELATED PARTY DISCLOSURES

a) Related party balances


Joint Ventures Other Total Joint Ventures Other Total

Cash and cash equivalents 10.498.224 - 10.498.224 6.777.703 - 6.777.703

Trade receivables 1.114.302 57.662 1.171.964 879.313 29.646 908.959

Trade payables 594.171 24.063 618.234 878.939 36.874 915.813

Borrowings 1.105.184 - 1.105.184 1.085.663 - 1.085.663

b) Related party transactions

1 January - 31 March 2016 1 January - 31 March 2015

Joint Ventures Other Total Joint Ventures Other Total

Sales of goods and services 1.757.237 16.429 1.773.666 1.927.137 52.354 1.979.491

Purchases of goods and services 805.176 33.020 838.196 784.306 64.780 849.086

Interest income 127.896 - 127.896 74.827 - 74.827

Interest expense (-) (24.411) - (24.411) (11.343) - (11.343)

Joint Ventures of the Group have been accounted for using the equity method in the consolidated financial

statement. Accordingly, the transactions of Group’s Subsidiaries with Joint Ventures and the balances from Joint

Ventures are not subject to elimination.

As of 31 March 2016, TL384.648 thousand of trade receivables are dividend receivables from Joint Ventures.

As of 31 March 2016, cash and cash equivalents and borrowings balances include balances of the Group’s

Subsidiaries with Yapı Kredi Bankası. TL520.915 thousand (31 December 2015: TL583.917 thousand) of trade

receivables is composed of Tüpraş balances against Opet and THY Opet, TL111.723 thousand (31 December 2015:

TL112.934 thousand) of trade receivables is composed of balances of Zer Ticaret and TL81.455 thousand

(31 December 2015: TL83.030 thousand) of trade receivables is composed of balances of Ram Dış Ticaret arising

from the sales transactions with other Group companies. TL482.577 thousand (31 December 2015: TL614.626

thousand) of trade payables is composed of balances due to vehicle purchases of Otokoç from Ford Otosan and

Tofaş.

TL1.294.942 thousand (31 March 2015: TL1.524.680 thousand) of sales of goods and services is composed of

balances arising from the sales of Tüpraş’s petroleum products to Opet and THY Opet for the period ended

31 March 2016. TL609.748 thousand (31 March 2015: TL651.228 thousand) of purchases of goods and services is

composed of balances due to Otokoç’s vehicle purchases from Ford Otosan and Tofaş.

c) Key management compensation

The key management of Koç Holding is identified as the members of the Board of Directors (including the

President) and Group Presidents. Total compensation provided to key management personnel of Koç Holding for

the three months period ended 31 March 2016 amounts to TL52.941 thousand (31 March 2015: TL20.056

thousand). The amount is comprised of short-term employee benefits. After charging the costs to Koç Group

companies to whom services are provided, the cost incurred by Koç Holding A.Ş. amounted to TL34.523 thousand

(31 March 2015:TL11.857 thousand).



KOÇ HOLDİNG A.Ş.



39

NOTE 24 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES Guarantees: Guarantees given: 31 March 2016 31 December 2015 Letters of guarantee 6.260.632 5.433.075 Letters of credit 268.251 305.121 Letters of guarantee given to banks 356.605 452.709 Other 3.673 3.738

6.889.161 6.194.643

Guarantees received: 31 March 2016 31 December 2015 Letter of guarantee 3.252.246 3.974.940 Mortgages 2.056.309 2.038.196 Bill of guarantees 514.199 518.437 Guarantee notes 113.982 109.025 Direct crediting limit 386.237 357.132 Other commitments 371.302 313.008

6.694.275 7.310.738

Collaterals/pledges/mortgages/bill of guarantees (“CPMB”) of Subsidiaries of the Group, except finance sector, as of 31 March 2016 and 31 December 2015 are as follows (Total amounts in the table below also contains TL denominated CPMB balances. Foreign currency CPMBs are presented by their TL equivalents): 31 March 2016 31 December 2015 A. Total amount of CPMB’s given in the name of its own legal personality 6.252.936 5.605.242 -TL 3.288.845 3.116.544 -USD 2.243.688 1.818.047 -EUR 688.829 646.105 -Other 31.574 24.546

B. Total amount of CPMB’s given on behalf of the fully consolidated companies

636.225 589.401

-TL 161.475 142.030 -USD 247.399 215.146 -EUR 227.351 232.225 -Other - -

C. Total amount of CPMB’s given on behalf of third parties for ordinary course of business - -

D. Total amount of other CPMB’s given i) Total amount of CPMB’s given on behalf of the majority shareholder - - ii) Total amount of CPMB’s given to on behalf of other

group companies which are not in scope of B and C. - - iii) Total amount of CPMB’s given on behalf of

third parties which are not in scope of C. - -

6.889.161 6.194.643



KOÇ HOLDİNG A.Ş.



40

NOTE 25 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

Financial Instruments and Financial Risk Management

a) Credit Risk

The maximum exposure of Group’s consolidated financial assets to credit risk is as follows:

Receivables

from finance Cash

Trade sector and cash Financial Derivative

31 March 2016 receivables operations equivalents assets instruments

Maximum exposure to credit risk as of reporting date (A+B+C+D+E) 9.312.809 2.807.426 14.666.901 - 357.674 A. Net book value of neither past due nor impaired financial assets

(*) 8.601.319 2.003.469 14.666.901 - 357.674

B. Net book value of restructured financial assets 46.322 763.471 - - - C. Net book value of past due but not impaired financial assets 607.073 29.854 - - - D. Net book value of impaired assets 58.095 42.447 - - - - Past due 58.095 42.447 - - - - Gross amount 269.971 92.314 - - - - Impairment (211.876) (49.867) - - - - Secured with guarantees 50.458 41.219 - - - - Not past due - - - - - - Gross amount - - - - - - Impairment - - - - - - Secured with guarantees - - - - - E.Collective provision for impairment (-) - (31.815) - - -

Receivables from finance Cash Trade sector and cash Financial Derivative 31 December 2015 receivables operations equivalents assets instruments

Maximum exposure to credit risk as of reporting date (A+B+C+D+E) 10.040.370 2.832.547 10.550.776 - 526.024 A. Net book value of neither past due nor impaired financial assets

(*) 9.320.412 2.294.608 10.550.776 - 526.024

B. Net book value of restructured financial assets 51.233 494.850 - - - C. Net book value of past due but not impaired financial assets 615.879 29.423 - - - D. Net book value of impaired assets 52.846 45.692 - - - - Past due 52.846 45.692 - - - - Gross amount 266.179 87.476 - - - - Impairment (213.333) (41.784) - - - - Secured with guarantees 48.463 47.665 - - - - Not past due - - - - - - Gross amount - - - - - - Impairment - - - - - - Secured with guarantees - - - - - E. Collective provision for impairment (-) - (32.026) - - -

(*) Includes receivables from related parties.



KOÇ HOLDİNG A.Ş.



41

NOTE 25 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Continued)

As of 31 March 2016, trade receivables that are not due and not impaired amounting to TL4.363.641 thousand are

secured with guarantees (31 December 2015: TL4.670.089 thousand) and past due but not impaired trade

receivables amounting to TL334.211 thousand are secured with guarantees (31 December 2015: TL558.407

thousand).

b) Commodity price risk

Tüpraş, a Subsidiary of the Group is exposed to risk arising from fluctuations in crude oil prices due to raw material

inventory held for production. Tüpraş management manages the risk by regularly reviewing the amount of the

inventory held and utilizes financial instruments when considered as necessary.

As of 31 March 2016, Tüpraş has outstanding commodity derivatives and zero cost collar transactions for its

3,54 million barrels of inventory which are exposed to commodity price risk, to avoid from fluctuations in oil

prices. Weighted average price of future transactions, with maturity on 31 December 2016, is 42,23 USD/per barrel

for an inventory of 2,2 million barrels. Average purchase price and and weighted average selling price of zero cost

collar transactions, is 35,1 USD/per barrel and 50,09 USD/per barrel respectively for an inventory amount of

1,34 million barrels and with maturity on 31 December 2016. Fair value gain regarding the valuation of these

derivatives amounting to TL15.339 thousand has been recorded as “cost of sales” in the consolidated income

statements as of 31 March 2016.

Tüpraş sets its sales price according to Petroleum Market Law No: 5015 considering the product prices at the

Mediterranean market, which are the closest reachable world competitive market and USD currency rates. The

changes in prices in the Mediterranean market and USD currency rate are evaluated daily by Tüpraş management

and sales prices are updated when prices calculated according to the aforementioned factors differ significantly

from the current sales prices.

c) Foreign Exchange Risk

Consolidated assets and liabilities denominated in foreign currency are as follows:


Assets 12.398.873 9.656.899

Liabilities (22.509.189) (19.377.360)

Net balance sheet position (10.110.316) (9.720.461)

Off-balance sheet derivative instruments net position 3.388.807 2.110.421

Net foreign currency position (6.721.509) (7.610.040)

Tüpraş, a Subsidiary of the Group, manages its foreign currency risk resulting from its net financial liabilities by

reflecting (“naturel hedge”) the effects of the changes in foreign currencies to its selling prices of petroleum

products. As of 31 March 2016, Tüpraş has raw materials and petroleum products amounting to TL2.051.707

thousand (31 December 2015: TL1.962.440 thousand).

In addition, the loans of Tüpraş related to financing the Residuum Upgrade Project (RUP) are designated as

hedging instruments against the spot foreign exchange rate risk (USD/TL) associated with highly probable export

revenues. In this context, Tüpraş has started to apply cash flow hedge accounting effective from 1 March 2015.

Foreign exchange gains/losses arising from investment loans of RUP, are recognised under equity as “hedging

reserve” until the realisation of the cash flows of the hedged item. The amount of loans associated within this

scope amounted to USD1.637 million as of 31 March 2016 (31 December 2015: USD1.709 million)

Excluding the RUP investment loans designated as hedging instruments of highly probable export revenues and

abovementioned natural hedge of Tüpraş, the Group’s foreign exchange net short position declines to TL30.260

thousand (USD11 million) as of 31 March 2016.



KOÇ HOLDİNG A.Ş.



42


As of 31 March 2016, if EUR and USD had appreciated by 10% against TL with all other variables held constant,

profit before tax would have been TL210.264 thousand lower, mainly as a result of foreign exchange losses on the

translation of the foreign exchange position as presented in detail in the table below. The net effect of the related

foreign exchange losses on the net profit (equity holders) is approximately TL65 million.

The impact of 10% exchange increase in income statement (pre-tax profit):

USD EUR Other Total

31 March 2016

Foreign currency net position(*)

(182.226) (26.198) (1.840) (210.264)

(*) Related balances do not include the foreign exchange impacts of hedged items. Profit before tax impacts arising from foreign

exchange positions of Joint Ventures have been included in the sensitivity analysis.

The impact of 10% exchange increase in other comprehensive income statement (pre-tax profit):

USD EUR Other Total

31 March 2016

Hedged items (*)

(478.121) (290.909) - (769.030)

(*) Related balances include foreign exchange impacts which are within the scope of cash flow hedge and net investment hedge

in foreign operations and which are recognised under the hedging reserve.



KOÇ HOLDİNG A.Ş.



43


31 March 2016

USD (1)

EUR (1)

Other Total

(TL Equivalent) (TL Equivalent)

Assets:

Trade receivables (2)

364.322 451.764 652.288 3.133.863

Monetary financial assets 2.273.242 658.478 24.409 8.577.877

Non-monetary assets 38.616 11.421 157 146.212

Other assets 45.541 14.588 2.803 178.639

Current assets 2.721.721 1.136.251 679.657 12.036.591


- 25.196 - 80.830

Monetary financial assets 335 17.681 90 57.762

Other assets 26.265 46.451 253 223.690

Non-current assets 26.600 89.328 343 362.282

Total assets 2.748.321 1.225.579 680.000 12.398.873

Liabilities:

Trade payables (2)

1.104.339 257.195 60.530 4.014.671

Borrowings 513.567 169.990 13.665 2.014.150

Other liabilities 129.349 80.120 118 623.649

Short-term liabilities 1.747.255 507.305 74.313 6.652.470

Trade payables (2)

- - - -

Borrowings 4.538.625 894.503 5.984 15.735.380

Other liabilities 33.954 7.834 - 121.339

Long-term liabilities 4.572.579 902.337 5.984 15.856.719

Total liabilities 6.319.834 1.409.642 80.297 22.509.189

Net balance sheet position (3.571.513) (184.063) 599.703 (10.110.316)

Derivative assets 2.152.009 423.017 81.482 7.536.066

Derivative liabilities (818.922) (351.970) (697.769) (4.147.259)

Off-balance sheet derivative

instruments net position 1.333.087 71.047 (616.287) 3.388.807

Net foreign currency position (2.238.426) (113.016) (16.584) (6.721.509)

Net foreign currency position of monetary items (2.277.042) (124.437) (16.741) (6.867.721)

Fair value of derivative instruments

held for hedging 53.192 3.184 - 160.930

(1) Presented in original currencies.

(2) Represents balances before consolidation eliminations.



KOÇ HOLDİNG A.Ş.



44


31 December 2015

USD (1)

EUR (1)

Other Total

(TL Equivalent) (TL Equivalent)

Assets:


319.440 514.533 839.345 3.403.131

Monetary financial assets 1.468.180 234.325 13.852 5.027.322

Non-monetary financial assets 39.458 13.215 538 157.260

Other 203.259 8.175 1.935 618.910

Current assets 2.030.337 770.248 855.670 9.206.623


64.754 36.876 - 305.455

Financial assets 417 12.243 - 40.117

Other 3.075 28.989 3.648 104.704

Non-current assets 68.246 78.108 3.648 450.276

Total assets 2.098.583 848.356 859.318 9.656.899

Liabilities: Trade payables

(2) 1.193.125 248.503 95.862 4.354.636

Borrowings 470.170 163.444 2.602 1.889.029

Other liabilities 140.921 44.955 122 552.714

Short-term liabilities 1.804.216 456.902 98.586 6.796.379

Trade payables (2)

20.415 - - 59.359

Borrowings 3.613.810 619.975 6.792 12.484.339

Other liabilities 2.011 9.893 - 37.283

Long-term liabilities 3.636.236 629.868 6.792 12.580.981

Total liabilities 5.440.452 1.086.770 105.378 19.377.360

Net balance sheet position (3.341.869) (238.414) 753.940 (9.720.461)

Derivative assets 1.579.624 452.940 93.443 6.125.620

Derivative liabilities (761.037) (315.746) (799.094) (4.015.199)

Off-balance sheet derivative

instruments net position 818.587 137.194 (705.651) 2.110.421

Net foreign currency position (2.523.282) (101.220) 48.289 (7.610.040)

Net foreign currency position of monetary items (2.562.740) (114.435) 47.751 (7.767.300)

Fair value of derivative instruments

held for hedging 89.820 6.455 - 281.674

(1) Presented in original currencies.

(2) Represents balances before consolidation eliminations.



KOÇ HOLDİNG A.Ş.



45


Export and Import details (TL Equivalent)

Export 31 March 2016 31 March 2015

USD 1.986.453 2.203.854

EUR 791.858 844.479

Other 378.840 306.680

3.157.151 3.355.013

Import

USD 5.720.026 7.047.390

EUR 306.317 334.790

Other 5.987 7.478

6.032.330 7.389.658

NOTE 26 - EARNINGS PER SHARE

31 March 2016 31 March 2015

Earnings per share:

Profit for the period 722.007 705.975

Profit attributable to non-controlling interests 206.787 246.769

Profit attributable to equity holders of the parent 515.220 459.206

Weighted average number of shares with nominal value of Kr 1 each 253.589.805.000 253.589.805.000

Earnings per share (Kr) 0,203 0,181



KOÇ HOLDİNG A.Ş.



46

NOTE 27 - SUPPLEMENTARY CASH FLOW INFORMATION

Supplementary information for the details included in the consolidated cash flow statements as of 31 March 2016

and 2015 is as follows:

31 March 2016 31 March 2015

Changes in provisions:

Cost accruals of construction contracts 23.216 39.079

Provisions for lawsuits and penalties 2.998 34.803

Provisions for warranty and assembly 20.800 11.239

Provisions for loans and doubtful receivables 12.934 9.761

Provisions for employee benefits 5.318 6.193

Provisions for impairment on inventories (87.654) (90.031)

Other provisions 22.550 101.255

162 112.299

Changes in net working capital: Inventories (44.195) (485.991)

Trade receivables 1.110.026 (29.025)

Trade payables (689.560) (1.500.690)

Other assets and liabilities, net (29.830) (85.683)

Receivables from finance sector operations 14.370 (59.597)


382.365 (2.129.160)

Cash and cash equivalents:

Cash and cash equivalents (Note 4) 14.670.180 9.423.768

Less: Blocked deposits (Note 4) (861.030) (705.704)

13.809.150 8.718.064

NOT 28 - EVENTS AFTER THE BALANCE SHEET DATE

At the Ordinary General Assembly Meeting of Koç Holding A.Ş. held on 5 Nisan 2016, it was resolved;

- to distribute TL737.946.332,55 consisting the first level dividend amounting to TL175.175.018,03 and the

second level dividend of TL562.771.314,52 in cash;

- to source the related dividend payments of TL737.946.332,55 to shareholders, TL101.260.380,39 payment

allocated to usufruct shareholders and TL10.000.000 payment allocated to Koç Holding Emekli ve Yardım

Sandığı Vakfı, amounting to a total of TL849.206.712,94 from current year taxable earnings.

Related cash dividend payments were completed on 14 April 2016.

............................

koÇ holdİng a.Ş. condensed consolidated financial

Documents