Interim report
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Financial Statements As At and For the Six Months Period Ended 31 July 2025 (Convenience Translation of Financial Statements Originally Issued in Turkish) 17 September 2025 This report contains 2 pages of review report, 41 pages of condensed consolidated financial statements and explanatory notes to the condensed consolidated financial statements.
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DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. Maslak No1 Plaza Eski Büyükdere Caddesi Maslak Mahallesi No:1 Maslak, Sarıyer 34485 İstanbul, Türkiye Tel: +90 (212) 366 60 00 Fax: +90 (212) 366 60 10 www.deloitte.com.tr Mersis No :0291001097600016 Ticari Sicil No: 304099 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its n etwork of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referr ed to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/ about to learn more about our global network of member firms. © 2025. For information, contact Deloitte Touche Tohmatsu Limited. (CONVENIENCE TRANSLATION OF THE REPORT ON REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION ORIGINALLY ISSUED IN TURKISH) REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION To the Board of Directors of Mavi Giyim Sanayi ve Ticaret A.Ş. Introduction We have reviewed the accompanying condensed consolidated statement of financial position of Mavi Giyim Sanayi ve Ticaret A.Ş. (“the Company”) and its subsidiaries (together will be referred as “the Group”) as of 31 July 2025, and the related condensed consolidated statements of profit or loss, other comprehensive income, changes in equity and cash f lows and other explanatory notes for the six -month period then ended (“condensed consolidated interim financial information”) . Group management is responsible for the preparation and fair presentation of this condensed consolidated interim financial information in accordance with Turkish Accounting Standards 34 “Interim Financial Reporting” (“TAS 34”) . Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review. Scope of Review We conducted our review in accordance with Independent Auditing Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of condensed consolidated interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Independent Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
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Conclusion Based on our review, nothing has come to our attention that causes us to conclude that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with TAS 34 “Interim Financial Reporting”. Other Information Management is responsible for the other information. The other information comprises the Appendix I and Appendix 2 disclosed as "Other information" at the notes to the condensed consolidated interim financial statements but are not part of the condensed consolidated interim financial statements and of our auditor's report thereon. Our conclusion on the condensed consolidated interim financial statements does not cover the other information and we do not express any form of assurance thereon. In connection with our review of the condensed consolidated interim financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the condensed consolidated interim financial statements or our knowledge obtained in the review or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU LIMITED Tolga Sirkecioğlu, SMMM Partner İstanbul, 17 September 2025
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Table of Contents Condensed Consolidated Interim Statement of Financial Position 1-3 Condensed Consolidated Interim Profit or Loss and Other Comprehensive Income 4-5 Condensed Consolidated Interim Statement of Changes in Equity 6 Condensed Consolidated Interim Statement of Cash Flows 7 Notes to the Condensed Consolidated Interim Financial Statements 8-41 Supplementary Information Appendix 1 EBITDA reconciliation 42 Appendix 2 Effect of TFRS 16 on financial statements 42 Note Disclosure Pages 1 Organization and operations of the Group 8 2 Basis of presentation of financial statements 9-17 3 Seasonality of operations 17 4 Segment reporting 18 5 Cash and cash equivalents 19 6 Financial borrowings 20-21 7 Related party disclosures 21-22 8 Trade receivables and payables 23 9 Inventories 24 10 Property, plant and equipment and intangible assets 24 11 Goodwill 24 12 Right-of-use assets 25 13 Provisions, contingent assets and liabilities 26-27 14 Commitments 28-30 15 Share capital, reserves and other equity items 30-31 16 Administrative expenses, selling, marketing and distribution expense 31-32 17 Research and development expenses 32 18 Other operating income and expense 32-33 19 Gains and losses from investment activities 33 20 Finance income 33 21 Finance expenses 34 22 Explanations regarding net monetary position gains/(losses) 34 23 Income taxes 35 24 Earnings per share 35 25 Nature and level of risks related to financial instruments 36-40 26 Financial instruments (fair value disclosures and disclosures under hedge accounting) 41 27 Subsequent events 41
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Financial Position As at 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 1 Reviewed Audited Notes 31 July 2025 31 January 2025 ASSETS Current assets Cash and cash equivalents 5 5,884,233 7,177,612 Financial investments 4,653 4,768 Trade receivables 2,291,755 2,329,024 Due from third parties 8 2,291,755 2,329,024 Other receivables 84,799 52,617 Due from third parties 84,799 52,617 Inventories 9 6,611,130 5,795,910 Prepaid expenses 585,167 535,266 Due from related parties 7 283,963 148,510 Due from third parties 301,204 386,756 Current tax assets 106,886 152,993 Other current assets 19,489 2,502 Total current assets 15,588,112 16,050,692 Non-current assets Other receivables 27,860 20,859 Due from third parties 27,860 20,859 Property, plant and equipment 3,153,989 2,553,236 Right-of-use assets 12 2,055,907 1,925,237 Intangible assets 1,697,588 1,610,805 Other intangible assets 644,392 561,394 Goodwill 11 1,053,196 1,049,411 Deferred tax assets 360,503 41,499 Total non-current assets 7,295,847 6,151,636 TOTAL ASSETS 22,883,959 22,202,328 The accompanying notes form an integral part of these condensed consolidated interim financial statements.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Financial Position As at 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 2 Reviewed Audited Notes 31 July 2025 31 January 2025 LIABILITIES Current liabilities Short-term borrowings 6 622,552 194,884 Short-term lease liabilities 6 1,087,928 837,349 Due to related parties 7 4,613 4,238 Due to third parties 1,083,315 833,111 Short-term portion of long-term borrowings 6 281,055 236,572 Short-term portion of long-term issued debt instruments 6 535,684 608,148 Trade payables 5,551,078 5,466,644 Due to related parties 7-8 463,157 830,660 Due to third parties 8 5,087,921 4,635,984 Payables related to employee benefits 763,147 820,536 Other payables 130,461 266,849 Due to related parties 7 1,237 1,010 Due to third parties 129,224 265,839 Deferred income 243,968 246,058 Liabilities arising from customer contracts 240,562 228,554 Liabilities not arising from customer contracts 3,406 17,504 Short term provisions 417,236 334,211 Short-term provisions for employee benefits 13 58,853 42,626 Other short-term provisions 13 358,383 291,585 Current tax liabilities 223,424 188,722 Other current liabilities 143,071 134,219 Total current liabilities 9,999,604 9,334,192 Non-current liabilities Long-term borrowings 6 -- 1,840 Long-term lease liabilities 6 807,583 817,304 Due to related parties 7 7,038 8,665 Due to third parties 800,545 808,639 Payables related to employee benefits -- 44,641 Long-term provisions 176,295 171,480 Long-term provisions for employee benefits 13 176,295 171,480 Deferred tax liabilities 30,523 19,636 Total non-current liabilities 1,014,401 1,054,901 TOTAL LIABILITIES 11,014,005 10,389,093 The accompanying notes form an integral part of these condensed consolidated interim financial statements.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Financial Position As at 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 3 Reviewed Audited Notes 31 July 2025 31 January 2025 EQUITY Equity attributable to owners of the Company 11,720,832 11,579,391 Paid-in share capital 15 794,512 397,256 Adjustment to share capital 15 1,377,151 1,363,402 Treasury shares (-) (31,545) -- Share based payment fund 34,255 28,483 Other comprehensive expense not to be reclassified to profit or loss (96,053) (61,593) Defined benefit plans remeasurement losses (96,053) (61,593) Other comprehensive income or expenses to be reclassified to profit or loss 134,411 80,108 Foreign currency translation differences 95,691 80,108 Hedging gains / (losses) 38,720 -- Restricted reserves appropriated from profit 15 700,071 494,093 Retained earnings 7,697,269 6,189,470 Net profit for the period 1,110,761 3,088,172 Non-controlling interests 149,122 233,844 Total equity 11,869,954 11,813,235 TOTAL EQUITY AND LIABILITIES 22,883,959 22,202,328 The accompanying notes form an integral part of these condensed consolidated interim financial statements.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the Six Months Period Ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 4 Reviewed Not reviewed Reviewed Not reviewed Notes 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Profit or loss Revenue 19,833,187 9,563,543 21,896,914 9,916,742 Cost of sales (-) (9,656,208) (4,746,688) (10,548,854) (4,854,956) Gross profit 10,176,979 4,816,855 11,348,060 5,061,786 General administrative expenses (-) 16 (1,394,064) (694,398) (1,407,981) (710,536) Selling, marketing and distribution expenses (-) 16 (6,315,971) (3,227,098) (6,544,458) (3,302,579) Research and development expenses (-) 17 (352,810) (178,632) (274,792) (140,659) Other operating income 18 112,727 (84,096) 228,718 10,530 Other operating expenses (-) 18 (13,838) (8,230) (34,012) (2,028) Operating profit 2,213,023 624,401 3,315,535 916,514 Gains from investment activities 19 1,100 72 12,910 3,162 Losses from investment activities (-) 19 (10,413) (5,114) (6,398) (6,398) Operating profit before financial expense 2,203,710 619,359 3,322,047 913,278 Finance income 20 817,295 352,393 1,251,906 695,975 Finance expenses (-) 21 (1,527,584) (741,711) (1,865,767) (893,368) Finance expenses, net (710,289) (389,318) (613,861) (197,393) Monetary gain / (loss) 22 (151,541) (53,624) 83,808 (24,667) Profit before tax from continuing operations 1,341,880 176,417 2,791,994 691,218 Tax income / (expense) from continuing operations (324,949) (10,187) (764,131) (66,963) Tax expense for the period (621,554) (205,650) (752,204) (113,447) Deferred tax income / (expense) 296,605 195,463 (11,927) 46,484 Net profit 1,016,931 166,230 2,027,863 624,255 Distribution of profit for the period 1,016,931 166,230 2,027,863 624,255 Non-controlling interests (93,830) (64,858) (45,711) (58,835) Owners of the Company 1,110,761 231,088 2,073,574 683,090 Earnings per share 24 1.3980 0.2909 2.6099 0.8598 The accompanying notes form an integral part of these condensed consolidated interim financial statements.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the Six months Period Ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 5 Reviewed Not reviewed Reviewed Not reviewed Notes 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurement losses of defined benefit plans (45,946) (45,050) (14,698) (14,698) Deferred tax income 11,486 11,263 3,675 3,675 Items that will not be reclassified to profit or loss Foreign currency translation differences 18,359 9,566 (456,914) (231,146) Cash flow hedging gains / (losses) 51,627 52,415 (4,433) 11,953 Deferred tax income / (expense) (12,907) (13,104) 1,108 (2,988) Other comprehensive income 22,619 15,090 (471,262) (233,204) Total comprehensive income 1,039,550 181,320 1,556,601 391,051 Total comprehensive income attributable to: Non-controlling interests (91,054) (61,826) (225,376) (144,352) Owners of the Company 1,130,604 243,146 1,781,977 535,403 The accompanying notes form an integral part of these condensed consolidated interim financial statements.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Changes In Equity As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 6 Other comprehensive income that will not reclassified to profit or loss Other comprehensive income that will reclassified to profit or loss Retained earnings Share capital Adjustment to share capital Treasury shares Legal reserves Share based payment fund Remeasurement of defined benefit liability Foreign currency translation reserve Hedging reserve Retained earnings Net profit Attributable to owners of the Company Attributable to non- controlling interest Total equity Balance as of 1 February 2024 198,628 1,265,254 -- 281,117 17,128 (41,082) 554,797 3,325 5,008,675 2,874,204 10,162,046 581,511 10,743,557 Transfers 198,628 98,148 -- 212,976 -- -- -- -- 2,364,452 (2,874,204) -- -- -- Dividend payments -- -- -- -- -- -- -- -- (1,183,683) -- (1,183,683) -- (1,183,683) Increase (decrease) due to share- based transactions -- -- -- -- 5,302 -- -- -- -- -- 5,302 8,576 13,878 Total comprehensive income/(expense) -- -- -- -- -- (11,023) (277,249) (3,325) -- 2,073,574 1,781,977 (225,376) 1,556,601 Balance as of 31 July 2024 397,256 1,363,402 -- 494,093 22,430 (52,105) 277,548 -- 6,189,444 2,073,574 10,765,642 364,711 11,130,353 Balance as of 1 February 2025 397,256 1,363,402 -- 494,093 28,483 (61,593) 80,108 -- 6,189,470 3,088,172 11,579,391 233,844 11,813,235 Transfers 397,256 13,749 -- 174,433 -- -- -- -- 2,502,734 (3,088,172) -- -- -- Dividend payments -- -- -- -- -- -- -- -- (963,390) -- (963,390) -- (963,390) Increase (decrease) due to share- based transactions -- -- -- -- 5,772 -- -- -- -- -- 5,772 6,332 12,104 Increase (decrease) due to treasury share transactions (Note 15) -- -- (31,545) 31,545 -- -- -- -- (31,545) -- (31,545) -- (31,545) Total comprehensive income/(expense) -- -- -- -- -- (34,460) 15,583 38,720 -- 1,110,761 1,130,604 (91,054) 1,039,550 Balance as of 31 July 2025 794,512 1,377,151 (31,545) 700,071 34,255 (96,053) 95,691 38,720 7,697,269 1,110,761 11,720,832 149,122 11,869,954 The accompanying notes form an integral part of these condensed consolidated interim financial statements.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Condensed Consolidated Interim Statement of Cash Flows As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 7 The accompanying notes form an integral part of these condensed consolidated interim financial statements. Reviewed Reviewed Cash flow from operating activities Notes 1 February – 31 July 2025 1 February – 31 July 2024 Net profit for the period 1,016,931 2,027,863 Adjustments for: Adjustments for depreciation and amortization expense 10,12 1,438,386 1,317,301 Adjustments for interest income 20 (813,924) (1,227,834) Adjustments for interest expense 21 1,523,946 1,864,589 Adjustments for provision for vacation 13 21,819 27,970 Adjustments for fair value losses / (gains) of financial assets 19 -- (9,923) Adjustments for provision for employment termination benefit 13 36,370 59,501 Adjustments for impairment losses on trade receivables 3,770 257 Adjustments for rediscount interest expense/ (income) on trade payables 18 (8,807) (121,436) Adjustments for share-based payments 12,104 13,878 Adjustments for monetary gain/loss 838,727 1,153,987 Adjustments for expected credit losses 18 1,493 (140) Adjustments for inventory impairment 9 (4,894) (4,655) Adjustments for provisions for payables short-term and long-term 13 93,728 65,852 Adjustments for loss on disposal of property and equipment 19 9,313 3,411 Adjustments for tax expense 324,949 764,131 Adjustments for unrealized foreign currency translation differences 56,585 (519,312) 4,550,496 5,415,440 Changes in working capital: Change in trade receivables (258,271) (397,591) Change in inventories (1,518,989) (1,556,601) Change in prepaid expenses (112,671) (410,496) Change in other receivables (47,849) (10,014) Change in other current and non-current assets (17,282) 2,067 Change in employee benefits liabilities 8 35,877 Change in trade payables 999,850 2,005,073 Change in payables to related parties (269,189) 322,689 Change in deferred income 26,930 30,808 Change in other payables (105,263) (46,163) Change in short-term and long-term provisions (1,576) (1,899) Change in other liabilities 21,539 26,190 Cash flows used in operating activities 3,267,733 5,415,380 Employment termination benefits paid 13 (63,521) (34,473) Tax payments (565,839) (807,261) A. Net cash from operating activities 2,638,373 4,573,646 Cash flows from investing activities Cash outflows from purchases of property, plant, and equipment 10 (999,112) (479,650) Cash inflows from the sale of property, plant and equipment and intangible asset 10,19 2,715 (113) Cash outflows from purchase of intangible assets 10 (215,448) (197,850) Other investing activities -- 109,577 Interest received 872,404 1,194,466 B. Net cash used in investing activities (339,441) 626,430 Cash inflows from borrowings 698,403 249,140 Cash outflows from repayments of borrowings (258,093) (134,774) Cash outflows from payments of lease contracts (857,284) (692,286) Cash outflows from repurchase of own shares (31,545) -- Other financial cash outflows (1,112,261) (1,280,124) Dividend paid 15 (963,390) (1,183,683) Interest paid (163,117) (358,736) C. Net cash flow generated from /(used in) financing activities (2,687,287) (3,400,463) Net change in cash and cash equivalent (A+B+C) (388,355) 1,799,613 The effect of inflation on cash and cash equivalents (846,544) (1,339,665) D. Cash and cash equivalents at the beginning of the period 5 7,083,228 7,786,438 Cash and cash equivalents at the end of the period (A+B+C+D) 5 5,848,329 8,246,386
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 8 1 Organization and operations of the Group Mavi Giyim Sanayi ve Ticaret A .Ş. (the “Company” or “Mavi Giyim”), established in 1991, engages in wholesale and retail sales of ready -to-wear denim apparel . The product range includes knit and woven shirts, t -shirts, sweaters, jackets, skirts, dresses, accessories and denim bottoms for men, women and children. The Company’s registered office is located at Huzur Mah. Azerbaycan Cad. D Blok , No: 4D/7, İç Kapı No:457 34475 Sarıyer/ İstanbul/Türkiye. Export sales operations started in 1994 , Mavi Giyim has offices and showrooms in New York, Vancouver, Moscow, New Jersey, Los Angeles, Atlanta, Dallas, Toronto, Montreal, Düsseldorf, Munich, Hamburg, Leipzig, Heusenstamm, Zurich, Salzburg, Prague and Almere. Shares of the Company has been traded at Borsa Istanbul (“BIST”) since 15 June 2017 , As of 31 July 2025, the Company's main shareholders are Blue International Holding B .V., which owns 0 ,22% of the Company's share capital, and Fatma Elif Akarlılar, Hayriye Fethiye Akarlılar and Seyhan Akarlılar, each of whom own 9,062% of the Company's share capital (31 January 2025: Blue International Holding B.V., which owns 0 ,22% of the Company's share capital, and Fatma Elif Akarlılar, Hayriye Fethiye Akarlılar and Seyhan Akarlılar, each of whom own 9 ,062% of the Company's share capital) , Blue International Holding B.V. is controlled by Fatma Elif Akarlılar, Hayriye Fethiye Akarlılar and Seyhan Akarlılar. The condensed consolidated interim financial statements for the six-months period ended as at 31 July 2025 include financial position and the results of Mavi Giyim, Mavi Europe AG (“Mavi Europe”) and Mavi Jeans LLC (“Mavi Russia”), Eflatun Giyim Yatırım Ticaret Anonim Şirketi (“Eflatun Giyim”), Mavi Jeans Incorporated (“Mavi Canada”) and Mavi Jeans Incorporated (“Mavi United States of America (“USA”)), Mavi Giyim and its subsidiaries are referred here as the “ the Group” and individually “the Group entity” in this report. The ownership interest and voting rights of the subsidiaries as of 31 July 2025 and 31 January 2025 are as follows: Subsidiaries Place of Incorporation Principal Activities Effective Shareholding % 31 July 2025 31 January 2025 Mavi Europe Germany Wholesale and retail sales of apparel 100.00 100.00 Mavi Russia Russia Wholesale and retail sales of apparel 100.00 100.00 Eflatun Giyim Türkiye Holding company 51.00 51.00 Mavi USA USA Wholesale and retail sales of apparel 47.69 47.69 Mavi US Retail LLC (1) USA Wholesale and retail sales of apparel 100.00 -- Mavi Canada Canada Wholesale and retail sales of apparel 63.25 63.25 Mavi Kazakhstan(2) Kazakhstan Retail sales of apparel 100.00 100.00 (1) Mavi US Retail LLC is established at 6 May 2025. (2) Mavi Kazakhstan is in the liquidation process and does no longer proceed any operations as of 31 October 2015 . Mavi Kazakhstan financials have not been consolidated since its operations insignificant in terms of condensed consolidated interim financial statements, as of 31 July 2025. As of 31 July 2025, the Group’s total number of employees is 5,938 (31 January 2025: 5,872).
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 9 2 Basis of presentation of financial statements 2.1 Basis for the presentation of interim condensed consolidated financial statements (a) Statement of compliance to TFRS The accompanying consolidated financial statements have been prepared in line with Capital Markets Board (“CMB”), Communiqué Serial: II, No , 14,1 on “Principles on Financial Reporting in Capital Market” (“the Communiqué”), promulgated in Official Gazette No , 28676 dated 13 June 2013 , TFRSs include Standards and Interpretations published by POA under the names of Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards, TAS Interpretations and TFRS Interpretations. The consolidated financial statements are presented in accordance with TFRS Taxonomy developed based on the “Financial Statement Examples and User Guide” announced by the POA published in the Offical Gazette dated 7 June 2019 and numbered 30794. (b) Preparation of financial statements These condensed consolidated interim financial statements were authorized for issue by the Board of Directors on 17 September 2025 . The General Assembly has the authority to modify the condensed consolidated interim financial statements. (c) Functional and presentation currency Except for subsidiaries established abroad, functional currency of the companies included in the consolidation is Turkish Lira (“TL”) and companies keep their accounting records in TL in accordance with the commercial legislation, financial legislation and the Uniform Chart of Accounts published by the Ministry of Finance. Consolidated financial statements and footnotes are based on the legal records of the Group companies and are presented in thousands of TL unless otherwise stated, and have been prepared, subject to some corrections and classification changes, to adequately present the status of the Group in accordance with the Turkish Accounting Standards published by Public Oversight Accounting and Auditing Standards Authority (the “POA”). All other foreign currency amounts are shown in Thousand Turkish Lira (“TL”) unless otherwise stated. The table below summarizes functional currencies of the Group entities. Company Functional currency Mavi Giyim TL Mavi Europe Euro (“EUR”) Mavi Russia Rouble (“RUB”) Mavi USA US Dollars (“USD”) Mavi US Retail LLC US Dollars (“USD”) Mavi Canada Canada Dollars (“CAD”) Eflatun Giyim TL
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 10 2 Basis of presentation of financial statements (continued) 2.1 Basis for the presentation of interim condensed consolidated financial statements (continued) (d) Basis of measurement Condensed interim consolidated financial statements have been prepared at historical costs, excluding derivative financial instruments, which are measured at fair value . Historical cost is generally based on the fair value of the consideration given for goods and services . The methods used in fair value measurement are specified in note 2.1 (f). (e) Significant accounting judgments, estimates and assumptions Preparation of condensed consolidated financial statements requires the usage of management estimations and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis . Revisions in accounting estimates are recorded in the period when the revision is made and in the future periods affected by these revisions. Although these estimates are based on management's best estimates based on current events and actions, actual results may differ from estimates . Assumptions and estimates that are complex and require further interpretation may have a significant impact on the financial statements . As of 31 July 2025 , the assumptions and significant accounting estimates used in the preparation of the six-months interim condensed consolidated financial statements have not changed compared to those used in the prior year. (f) Measurement of fair values The Group's various accounting policies and disclosures require determining the fair values of both financial and non-financial assets and liabilities. Fair values are determined by the following methods for measurement and disclosure purposes . If applicable, additional information on the assumptions used in determining fair values is presented in the asset or notes specific for liabilities. (i) Trade and other receivables Short-term trade and other receivables are measured at the original invoice amount since the promised amount of consideration for the effects of a significant financing component is not material and the period between the entity transfers a promised good or service to a customer and the customer pays for that good or service is less than one year. This fair value is determined at the initial recognition and the end of each reporting period for disclosure purposes. (ii) Forward exchange contracts The fair value of forward contracts and exchange transactions is determined based on broker quotes . Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date. Fair value represents the credit risk of the instrument and includes adjustments related to the credit risk of both the Group and the counterparty. (iii) Other non-derivative financial liabilities The fair value of other non-derivative financial liabilities is determined during the initial recognition and for disclosure purposes at the end of each period. Fair values are calculated as reduction of present values of prospective principal and interest cash flows with market interest rate at the measurement date . Fair values of current non-derivative financial liabilities are accepted as their carrying values.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 11 2 Basis of presentation of financial statements (continued) 2.1 Basis for the presentation of interim condensed consolidated financial statements (continued) (f) Measurement of fair values (continued) (iv) Property, plant and equipment The fair value of the property, plant and equipment resulting from business combinations is the price that would arise when a willing buyer and a voluntary seller acted with knowledge, prudence and without any pressure on the date of purchase, in a transaction under market conditions . The fair values of plant, equipment and fixtures are determined based on the market price and replacement cost of similar items, if any. The amortized replacement cost reflects adjustments for functional and economic obsolescence as well as physical deterioration. (v) Intangible assets The fair value of intangible assets is based on the discounted cash flows expected to be derived from the use and eventual sale of the assets . The fair value of customer relationships acquired in a business combination is determined according to the excess earnings methods and replacement cost approach. Restatement of financial statements during periods of high inflation In accordance with the CMB's decision dated 17 March 2005 and numbered 11/367, for companies operating in T ürkiye and preparing financial statements in accordance with Turkish Financial Reporting Standards, the application of inflation accounting has been terminated as of 1 January 2005 . Accordingly, as of 1 January 2005, the Standard No , 29 “Financial Reporting in Hyperinflationary Economies” (“TAS 29”) was not applied. The financial statements and related figures for previous periods have been restated for changes in the general purchasing power of the functional currency and, consequently, the financial statements and related figures for previous periods are expressed in terms of the measuring unit current at the end of the reporting period in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies. TAS 29 applies to the financial statements, including the consolidated financial statements, of each entity whose functional currency is the currency of a hyperinflationary economy . If an economy is subject to hyperinflation, TAS 29 requires an entity whose functional currency is the currency of a hyperinflationary economy to present its financial statements in terms of the measuring unit current at the end of the reporting period. As at the reporting date, entities operating in Türkiye are required to apply TAS 29 "Financial Reporting in Hyperinflationary Economies" for the reporting periods ending on or after 31 December 2023, as the cumulative change in the general purchasing power of the last three years based on the Consumer Price Index (“CPI”) is more than 100%.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 12 2 Basis of presentation of financial statements (continued) 2.1 Basis for the presentation of interim condensed consolidated financial statements (continued) Restatement of financial statements during periods of high inflation (continued) POA made a n announcement on 23 November 2023 regarding the scope and application of TAS 29 . It stated that the financial statements of the entities applying Turkish Financial Reporting Standards for the annual reporting period ending on or after 31 January 202 4 should be presented in accordance with the related accounting principles in TAS 29, adjusted for the effects of inflation. In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 to their annual financial statements for the accounting periods ending on 31 January 2024. In this framework, while preparing the consolidated financial statements dated 31 July 2025, 31 January 2025 and 31 July 2024, inflation adjustment has been made in accordance with TAS 29. The table below shows the inflation rates for the relevant years calculated by taking into account the Consumer Price Indices published by the Turkish Statistical Institute (TURKSTAT): Date Index Adjustment coefficient Three-year cumulative inflation rates 31 July 2025 3,196.66 1 219% 31 January 2025 2,819.65 1.13371 269% 31 July 2024 2,394.10 1.33522 330% The main lines of TAS 29 indexation transactions are as follows: • As of the balance sheet date, all items other than those stated in terms of current purchasing power are restated by using the relevant price index coefficients . Prior year amounts are also restated in the same way. • Monetary assets and liabilities are expressed in terms of the purchasing power at the balance sheet date and are therefore not subject to restatement . Monetary items are cash and items to be received or paid in cash.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 13 2 Basis of presentation of financial statements (continued) 2.1 Basis for the presentation of interim condensed consolidated financial statements (continued) Restatement of financial statements during periods of high inflation (continued) • Fixed assets, subsidiaries and similar assets are indexed to their acquisition values, which do not exceed their market values . Depreciation has been adjusted in a similar manner . Amounts included in shareholders' equity have been restated by applying general price indices for the periods in which they were contributed to or arose within the Company. • All items in the income statement, except for the effects of non -monetary items in the balance sheet on the income statement, have been restated by applying the multiples calculated over the periods when the income and expense accounts were initially recognised in the financial statements. • The gain or loss arising on the net monetary position as a result of general inflation is the difference between the adjustments to non -monetary assets, equity items and income statement accounts . This gain or loss on the net monetary position is included in net profit. The impact of the application of TAS 29 Inflation Accounting is summarised below: Restatement of the Statement of Financial Position Amounts in the statement of financial position that are not expressed in terms of the measuring unit current at the end of the reporting period are restated . Accordingly, monetary items are not restated because they are expressed in the currency of the reporting period. Non-monetary items are required to be restated unless they are expressed in terms of the currency in effect at the end of the reporting period. The gain or loss on the net monetary position arising on restatement of non -monetary items is recognised in profit or loss and presented separately in the statement of comprehensive income. Restatement of the Statement of Profit or Loss All items in the statement of profit or loss are expressed in terms of the measuring unit current at the end of the reporting period. Therefore, all amounts have been restated by applying changes in the monthly general price index. Cost of inventories sold has been restated using the restated inventory balance. Depreciation and amortisation expenses have been restated using the restated balances of property, plant and equipment, intangible assets, investment property and right-of-use assets.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 14 2 Basis of presentation of financial statements (continued) 2.1 Basis for the presentation of interim condensed consolidated financial statements (continued) Restatement of financial statements during periods of high inflation (continued) Restatement of Statement of Cash Flows All items in the statement of cash flows are expressed in terms of the measuring unit current at the end of the reporting period. Consolidated financial statements The financial statements of a subsidiary whose functional currency is the currency of a hyperinflationary economy are restated by applying the general price index before they are included in the consolidated financial statements prepared by the parent company. Subsidiaries of the Group whose functional currency is other than Turkish Lira have been translated to the purchasing power of 31 July 2025 according to the following principles. As of 31 July 2025 , the consolidated statement of financial position for the six-months period ended 31 July 2025 has been translated into Turkish Lira at the closing rate of 31 July 2025, 1 February 2025 – 31 July 2025 consolidated statement of income has been translated into Turkish Lira at the average monthly exchange rates and indexed to the purchasing power of 31 July 2025 from the translation date and the relevant months. The consolidated statement of financial position for the period ended 31 January 2025 has been translated into Turkish Lira at the closing rate of 31 January 2025 and indexed to the purchasing power of 31 July 2025. The income statement for the period 1 February 2024 - 31 July 2024 has been translated into Turkish Lira at the average monthly exchange rates and indexed to the purchasing power of 31 July 2025. Comparative figures Relevant figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the measuring unit applicable at the end of the reporting period. Information disclosed for prior periods is also expressed in terms of the measuring unit current at the end of the reporting period.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 15 2 Basis of presentation of financial statements (continued) 2.2 New and Amended Turkish Financial Reporting Standards (a) Amendments that are mandatorily effective from 2025 Amendments to TAS 21 Lack of Exchangeability Amendments to TAS 21 Lack of Exchangeability The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Amendments are effective from annual reporting periods beginning on or after 1 January 2025. The Group evaluates the effects of these standards, amendments and improvements on the consolidated financial statements. (b) New and revised TFRSs in issue but not yet effective The Group has not yet adopted the following standards and amendments and interpretations to the existing standards: TFRS 17 Insurance Contracts Amendments to TFRS 17 Initial Application of TFRS 17 and TFRS 9 — Comparative Information TFRS 18 Presentation and Disclosures in Financial Statements Amendments TFRS 9 and TFRS 7 Classification and measurement of financial instruments Amendments TFRS 9 and TFRS 7 Power purchase arrangements TFRS 19 Subsidiaries without Public Accountability: Disclosures TFRS 17 Insurance Contracts TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle -based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2026. Amendments to TFRS 17 Insurance Contracts and Initial Application of TFRS 17 and TFRS 9 – Comparative Information Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the results and to facilitate the initial application. The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had been applied to that financial asset before. Amendments are effective with the first application of TFRS 17.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 16 2 Basis of presentation of financial statements (continued) 2.2 New and Amended Turkish Financial Reporting Standards (continued) (b) New and revised TFRSs in issue but not yet effective (continued) TFRS 18 Presentation and Disclosures in Financial Statements TFRS 18 includes requirements for all entities applying TFRS for the presentation and disclosure of information in financial statements. Applicable to annual reporting periods beginning on or after 1 January 2027. Amendments TFRS 9 and TFRS 7 regarding the classification and measurement of financial instruments The amendments address matters identified during the post -implementation review of the classification and measurement requirements of TFRS 9 Financial Instruments. Amendments are effective from annual reporting periods beginning on or after 1 January 2026. Amendments TFRS 9 and TFRS 7 regarding power purchase arrangements The amendments aim at enabling entities to include information in their financial statements that in the IASB’s view more faithfully represents contracts referencing nature -dependent electricity. Amendments are effective from annual reporting periods beginning on or after 1 January 2026. TFRS 19 Subsidiaries without Public Accountability: Disclosures TFRS 19 specifies the disclosure requirements an eligible subsidiary is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. Applicable to annual reporting periods beginning on or after 1 January 2027. 2.3 Significant accounting policies Condensed consolidated financial statements as of and for the six-months interim period ended 31 July 2025 have been prepared by the Group by applying the accounting policies consistent with the accounting policies applied during the preparation of the consolidated financial statements for the year ended 31 January 2025. The financial statements in the condensed consolidated interim financial statements for the six-months period ended on 31 July 2025 must be evaluated together with the consolidated financial statements fo r the year ended 31 January 2025.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 17 2 Basis of presentation of financial statements (continued) 2.3 Significant accounting policies (continued) TFRS 16 Leases Leases The Group assesses whether a contract is or contains a lease, at inception of the contract . The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short -term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets . For these leases, the Group recognises the lease payments as an operating expense on a straight -line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. The Group has not recognised a right of use asset and liability for lease contracts where rent amount is solely dependent on a performance obligation. In case such contracts include a minimum guaranteed rent payment along with a sales performance obligation, the Group has recognized a right of use asset and liability based on minimum guaranteed rent amount. Right-of-use assets The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right- of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. The right of use asset is initially measured at cost, and subsequently measured at fair value, in accordance with the Group’s accounting policies. Lease liability The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate . Generally, the Group uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured if there is a change in these payments as a result of a change in the lease term and index or rate. 3 Seasonality of operations The condensed consolidated interim financial statements of the Group also comprise the effects of seasonality. Therefore, the six-months operating results for the period ended 31 July 2025 are not indicative of the results for the financial year.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 18 4 Segment reporting 1 February- 31 July 2025 1 May - 31 July 2025 1 February- 31 July 2024 1 May- 31 July 2024 Reportable segment Reportable segment Reportable segment Reportable segment Türkiye International Total Türkiye International Total Türkiye International Total Türkiye International Total Segment revenue (1) 18,017,119 1,816,068 19,833,187 8,704,740 858,803 9,563,543 19,671,113 2,225,801 21,896,914 9,024,160 892,582 9,916,742 - Retail 13,636,111 245,949 13,882,060 7,029,722 136,708 7,166,430 14,887,579 299,144 15,186,723 7,225,978 155,977 7,381,955 - Wholesale 2,942,627 1,150,915 4,093,542 1,021,450 519,541 1,540,991 3,209,721 1,457,400 4,667,121 1,102,653 525,138 1,627,791 - E-commerce 1,438,381 419,204 1,857,585 653,568 202,554 856,122 1,573,813 469,257 2,043,070 695,529 211,467 906,996 Segment profit before tax 1,535,610 (193,730) 1,341,880 325,514 (149,097) 176,417 2,917,979 (125,985) 2,791,994 843,133 (151,915) 691,218 31 July 2025 31 January 2025 Reportable segment Reportable segment Türkiye International Toplam Türkiye International Total Total segment assets 20,344,869 2,539,090 22,883,959 20,093,749 2,108,579 22,202,328 Total segment liabilities 8,992,934 2,021,071 11,014,005 8,930,968 1,458,125 10,389,093 The Group applies TFRS 8 and operating segments are determined based on internal reports that are regularly reviewed by the Group's decision maker . The Group has 2 strategic operating segments as T ürkiye and International based on the geographical areas where sales are generated . These divisions are managed separately because they require different trading and marketing strategies . International segment comprises Europe, USA, Canada, Russia and rest of the world. (1) Segment revenue comprised of third-party sales after elimination between consolidated subsidiaries.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 19 5 Cash and cash equivalents As at 31 July 2025 and 31 January 2025, cash and cash equivalents comprise the following: 31 July 2025 31 January 2025 Cash on hand 28,462 17,555 Cash at banks 4,488,139 5,586,934 -Demand deposits 225,774 335,397 -Time deposits 4,262,365 5,251,537 Other cash and cash equivalents 1,331,728 1,478,739 Cash and cash equivalents in the statement of cash flow 5,848,329 7,083,228 Time deposit interest accrual 35,904 94,384 5,884,233 7,177,612 As at 31 July 2025 and 31 January 2025 , other cash and cash equivalents consist of credit card receivables with maturities less than three months. As at 31 July 2025 and 31 January 2025 , the details of the maturity dates and interest rates of the Group's time deposits are as follows: Maturity Interest rate 31 July 2025 TL 1-4 August 25 47.00%-48.30% 2,875,961 USD 1 August- 22 September 25 3.25% - 4.25% 1,345,108 EUR 1 August 25 1.50% 41,296 4,262,365 Maturity Interest rate 31 January 2025 TL 3 February - 10 March 25 45.50%-49.75% 5,251,537 5,251,537 As at 31 July 2025 and 31 January 2025 , there is no restriction or blockage on cash and cash equivalents. The Group’s currency risk and sensitivity analyses are disclosed in Note 25.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 20 6 Financial borrowings As at 31 July 2025 and 31 January 2025, financial borrowings comprise the following: 31 July 2025 31 January 2025 Current liabilities Unsecured bank loans 622,552 194,884 Current portion of unsecured bank loans 281,055 236,572 Issued debt instruments 535,684 608,148 Lease liabilities 1,087,928 837,349 2,527,219 1,876,953 Non-current liabilities Unsecured bank loans -- 1,840 Lease liabilities 807,583 817,304 807,583 819,144 As of 31 July 2025 and 31 January 2025, the Group's total bank loans are as follows: 31 July 2025 31 January 2025 Bank loans 903,607 433,296 Issued debt instruments 535,684 608,148 Lease liabilities 1,895,511 1,654,653 3,334,802 2,696,097 As of 31 July 2025 and 31 January 2025, the repayments of loan agreements according to the original maturities are as follows: 31 July 2025 31 January 2025 Less than one year 1,439,291 1,039,604 One to two years -- 1,840 1,439,291 1,041,444 As of 31 July 2025 and 31 January 2025, maturities and conditions of outstanding loans comprised the following: 31 July 2025 Currency Nominal interest rate% Maturity Face value Carrying amount Unsecured bank loans RUB 22.00%-23.00% 2025-2026 277,334 281,055 Unsecured bank loans CAD 5.20-7.30% 2025-2026 245,618 248,713 Unsecured bank loans USD 6.80-7.00% 2026 267,136 373,839 Issued debt instruments TL 47.00% 2025 500,000 535,684 1,290,088 1,439,291 31 January 2025 Currency Nominal interest rate% Maturity Face value Carrying amount Unsecured bank loans RUB 25.50%-26.00% 2025-2026 231,833 236,572 Unsecured bank loans CAD 5.70-7.30% 2025-2026 196,724 196,724 Issued debt instruments TL 47.00% 2025 566,855 608,148 995,412 1,041,444 Currency risk and sensitivity analysis regarding the Group's financial liabilities are presented in note 25.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 21 6 Financial borrowings (continued) Short-term portion of long-term liabilities 31 July 2025 31 January 2025 Lease liabilities 1,361,669 1,066,844 Deferred lease borrowing cost (-) (273,741) (229,495) 1,087,928 837,349 Long-term lease liabilities Lease liabilities 1,277,778 1,250,972 Deferred lease borrowing cost (-) (470,195) (433,668) 807,583 817,304 Total lease liabilities 1,895,511 1,654,653 7 Related party disclosures Related parties in condensed consolidated interim financial statements are determined as key management personnel, board of directors, family members and the subsidiaries controlled by the Company. Several related party transactions are carried out during the ordinary course of the business. As of 31 July 2025 , the members of the Akarlılar Family (Fatma Elif Akarlılar, Hayriye Fethiye Akarlılar and Seyhan Akarlılar) are the controlling shareholders of the Group with a total ownership interest of 27 .41% where 27 .19% is the direct ownership interest and 0 .22% is the indirect ownership interest through Blue International Holding B.V. (a) Related party balances Advances given to related parties as of 31 July 2025 and 31 January 2025 are as follows: 31 July 2025 31 January 2025 Advances given to related parties Erak Giyim Sanayi Tic. A.Ş. (“Erak”)(1) 283,963 148,510 283,963 148,510 (1) Advances given to Erak are related to fabric purchases and are tracked in prepaid expenses. The balance of trade payables to related parties for the periods ending 31 July 2025 and 31 January 2025 is as follows: 31 July 2025 31 January 2025 Due to related parties Erak(1) 401,633 629,116 Akay Lelmalabis Elgazhizah LLC (“Akay”) (2) 61,524 201,544 463,157 830,660 (1) Amounts due to Erak, a company controlled by immediate family members of the shareholder of the parent company, are for purchases of inventory . The amounts are without guarantee and non-interest bearing. Purchases from Erak have 90 days repayment date. (2) Payables to Akay, Erak's subsidiary located in Egypt, are due to inventory purchases . The amounts are non-interest bearing and have 90 days repayment date.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 22 7 Related party disclosures (continued) (a) Related party balances (continued) As of 31 July 2025 and 31 January 2025, other short-term payables to related parties are as follows: 31 July 2025 31 January 2025 Other payables to related parties Eflatun Giyim shareholders 1,237 1,010 1,237 1,010 31 July 2025 31 January 2025 Short-term lease liabilities to related parties Sylvia House Inc. 4,613 4,238 4,613 4,238 31 July 2025 31 January 2025 Long-term lease liabilities to related parties Sylvia House Inc. 7,038 8,665 7,038 8,665 (b) Related party transactions For the six-months period ended 31 July 2025 and 2024, product purchases from related parties of the Group are as follows: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Product purchase from related parties Erak 2,381,417 845,631 3,277,458 1,300,629 Akay 386,191 239,667 329,256 189,850 2,767,608 1,085,298 3,606,714 1,490,479 For the six-months period ended 31 July 2025 and 2024, the services from related parties of the Group are as follows: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Services from related parties Erak (1) 7,547 4,057 10,466 5,197 Sylvia House Inc.(3) 3,118 1,584 3,560 1,717 10,665 5,641 14,026 6,914 (1) The Group rented Çerkezköy and Bayrampaşa retail stores from Erak. (2) Mavi Canada rented its office in Yaletown, Vancouver from Sylvia House Inc. (c) Information regarding benefits provided to the Group’s key management The Group’s senior management is determined as Chairmen and Members of the Board of Directors , General Manager, Deputy General Managers and Senior Directors. For the six-months period ended 31 July 2025 , short-term and long -term benefits (salaries and wages, attendance fee, bonu s, holiday overtime, severance payment, premium and other benefits) provided to senior management and board of directors amounted to TL 506,991 (31 July 2024: TL 552,387).
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 23 8 Trade receivables and payables Short-term trade receivables As at 31 July 2025 and 31 January 2025, short-term trade receivables are as follows: 31 July 2025 31 January 2025 Trade receivables from third parties 2,291,755 2,329,024 2,291,755 2,329,024 As at 31 July 2025 and 31 January 2025, short-term trade receivables from third parties are as follows: 31 July 2025 31 January 2025 Receivables 1,718,834 1,991,226 Notes receivables 131,024 94,257 Post-dated cheques 82,669 73,358 Endorsed cheques 474,112 276,742 Expected credit losses (-) (4,961) (2,852) Allowance for doubtful receviables (-) (109,923) (103,707) 2,291,755 2,329,024 The provision for doubtful receivables is determined based on the experience of non -collection of receivables. The details of the exchange rate risk and sensitivity analysis of the Group's short-term trade receivables are disclosed in Note 25. Short-term trade payables As at 31 July 2025 and 31 January 2025, short-term trade payables of the Group are as follows: 31 July 2025 31 January 2025 Trade payables to third parties 5,087,921 4,635,984 Trade payables to related parties (Note 7) 463,157 830,660 5,551,078 5,466,644 Trade payables mainly consist of unpaid amounts of trade purchases and ongoing expenditures. Details related to the Group’s exposure to foreign currency risk for short -term trade payables are disclosed in Note 25. As of 31 July 2025 and 31 January 2025, short-term trade payables to third parties are as follows: 31 July 2025 31 January 2025 Trade payables (1) 4,998,060 4,501,909 Expense accruals 89,861 134,075 5,087,921 4,635,984 (1) Trade payables to third part ies comprise supplier financing payables amounting TL 1,204,322 (31 January 2025: TL 1,144,511). Within the scope of supplier financing, domestic suppliers transfer their receivables from the Company to the financial institutions where the Company works with confirmation of assignment . The company has no import factoring payables as of 31 July 2025 (31 January 2025: TL 246,321). The Company performs import factoring for the purchases of good s from abroad. Within the scope of import factoring, foreign suppliers transfer their receivables from the Company to the financial institutions where the Company works with confirmation of assignment.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 24 9 Inventories As of 31 July 2025 and 31 January 2025, inventories are as follows: 31 July 2025 31 January 2025 Trade goods 6,473,383 5,603,926 Consignment trade goods 277,866 367,802 Goods in transit 66,481 32,137 Provision for impairment on inventory (-) (206,600) (207,955) 6,611,130 5,795,910 As of 31 July 2025 there is no restriction / pledge on inventories (31 January 2025: nil). As of 31 July 2025 and 2024, the provision for impairment on inventory is as follows: 31 July 2025 31 July 2024 Opening balance 207,955 239,277 Provision for the period 213,239 64,192 Foreign currency translation effect 3,539 (10,022) Disposals (218,133) (68,847) Closing balance 206,600 224,600 In the interim period ended on 31 July 2025, inventories of TL 213,239 (31 July 2024: TL 64,192) were recognized as an expense for slow moving inventory and net realizable value assessment in accordance with Group policies of provision for impairment on inventory during the period and included in “cost of sales”. 10 Property, plant and equipment and intangible assets The amount of tangible and intangible assets purchased during the six-months period ended 31 July 2025 is TL 1,214,560 (31 July 2024 : TL 677,500). The increase in tangible assets is primarily attributable to investments in the head office and retail stores. Net book value of tangible and intangible assets sold during the six-months period ended 31 July 2025 amounted to TL 12,028 (31 July 2024: TL 3,298). The depreciation charge for the six-months period ended 31 July 2025 is TL 514,229 (31 July 2024: TL 446,253). The depreciation charge of TL 529 for the six-months period ended 31 July 2025 is capitalized in accordance with incentive program (31 July 2024: TL 1,300). 11 Goodwill As of 31 July 2025 and 31 January 2025 , the carrying amount of goodwill allocated to each cash generating unit is as follows: 31 July 2025 31 January 2025 Mavi USA 928,873 929,003 Mavi Canada 88,365 84,450 Other 35,958 35,958 1,053,196 1,049,411 As of 31 July 2025, the decrease in goodwill recognized at foreign subsidiaries is related with the increase in previous year goodwill is higher than the foreign currency rate increase as a result of the application of inflation accounting. Goodwill is primarily attributable to the synergies expected to be derived from the integration of Mavi America and Mavi Canada into the Group's existing business.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 25 12 Right-of-use assets For the period ending 31 July 2025 and 2024 the movement of right-of-use assets is as follows: Cost Buildings Store Vehicles Warehouse Total 1 February 2025 balance 1,057,148 9,410,860 313,050 188,254 10,969,312 Additions 11,432 84,113 8,638 -- 104,183 Modification 204,087 763,940 -- -- 968,027 Disposals (56,830) (159,959) (1,888) (4,330) (223,007) Currency translation differences 13,246 46,792 2,283 2,102 64,423 Balance as of 31 July 2025 1,229,083 10,145,746 322,083 186,026 11,882,938 Accumulated depreciation Buildings Store Vehicles Warehouse Total 1 February 2025 balance 615,212 8,189,980 133,443 105,440 9,044,075 Charge for the period 69,929 780,174 44,586 29,468 924,157 Disposals (56,830) (129,924) (1,015) (4,330) (192,099) Currency translation differences 15,039 32,303 1,611 1,945 50,898 Balance as of 31 July 2025 643,350 8,872,533 178,625 132,523 9,827,031 Net book value as of 31 July 2025 585,733 1,273,213 143,458 53,503 2,055,907 Cost Buildings Store Vehicles Warehouse Total 1 February 2024 balance 939,261 8,374,385 285,985 247,984 9,847,615 Additions 31,857 53,537 13,645 -- 99,039 Modification 71,422 565,829 13,113 -- 650,364 Disposals (6,178) (3,131) (5,257) (21,502) (36,068) Currency translation differences (30,008) (30,959) (2,586) (23,752) (87,305) Balance as of 31 July 2024 1,006,354 8,959,661 304,900 202,730 10,473,645 Accumulated depreciation Buildings Store Vehicles Warehouse Total 1 February 2024 balance 620,757 6,894,908 66,566 83,015 7,665,246 Charge for the period 68,541 727,372 43,331 31,804 871,048 Disposals (6,178) (2,026) (5,255) (21,502) (34,961) Currency translation differences (27,271) (13,694) (1,787) (9,118) (51,870) Balance as of 31 July 2024 655,849 7,606,560 102,855 84,199 8,449,463 Net book value as of 31 July 2024 350,505 1,353,101 202,045 118,531 2,024,182 For the six-months period ended 31 July 2025 , TL 56,418 (31 July 2024 : TL 62,519) of amortisation expenses are included under general administrative expenses and TL 862,392 (31 July 2024 : TL 802,302) under selling and marketing expenses and TL 5,346 (31 July 2024: TL 6,227) under research and development expenses.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 26 13 Provisions, contingent assets and liabilities Short-term provisions As of 31 July 2025 and 31 January 2025, short-term provisions are as follows: 31 July 2025 31 January 2025 Short-term provisions for employee benefits 58,853 42,626 Other short-term provisions 358,383 291,585 417,236 334,211 Short-term provision for employee benefits consist s of provision for vacation pay liability . The movement of provision for vacation liability for the six-months period ending on 31 July 2025 and 2024 is as follows: 2025 2024 1 February balance 42,626 55,143 Current period provision 21,819 27,970 Currency translation differences 3,515 1,920 Payments (2,827) (3,604) Inflation correction effect (6,280) (11,808) 31 July balance 58,853 69,621 Provision for vacation pay liability Vacation pay liability is calculated by the remaining number of unused vacation days and average daily salary. Vacation pay liability if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term vacation pay liability if the Group has a present legal or constructive obligation to pay this amount because of past service provided by the employee, and the obligation can be estimated reliably. In accordance with the existing labour law in T ürkiye, the Company is required to pay to the employee, whose employment is terminated due to any reasons, the wage of the deserved and unused vacation days over the gross prevailing wage and other benefits subject to contract at the date the contract is terminated. Vacation pay liability is the total undiscounted liability of the deserved and unused vacation days of all employees. Vacation pay liability is calculated by the remaining number of unused vacation days and average daily salary. As of 31 July 2025 and 31 January 2025, details of other short-term provisions are as follows: 31 July 2025 31 January 2025 Sales return provision 271,461 240,523 Legal provision (1) 55,848 23,687 Other provisions 31,074 27,375 358,383 291,585 (1) Legal provision is mainly comprised of labour lawsuits.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 27 13 Provisions, contingent assets and liabilities (continued) Short-term provisions (continued) The movement of provisions for the six-months interim period ending on 31 July 2025 and 2024 is as follows: Legal provision (1) Return provisions Other provisions Total 1 February 2025 balance 23,687 240,523 27,375 291,585 Current year provision 39,745 53,590 11,677 105,012 Currency translation differences -- 5,027 1,206 6,233 Provisions used (1,577) -- -- (1,577) Provisions cancelled (1,154) (946) (9,184) (11,284) Inflation correction effect (4,853) (26,733) -- (31,586) 31 July 2025 balance 55,848 271,461 31,074 358,383 1 February 2024 balance 18,909 214,355 24,603 257,867 Current year provision 7,489 61,949 3,753 73,191 Currency translation differences -- 3,352 (3,069) 283 Provisions used (1,897) -- -- (1,897) Provisions cancelled (706) -- (6,633) (7,339) Inflation correction effect (3,625) (41,873) -- (45,498) 31 July 2024 balance 20,170 237,783 18,654 276,607 (1) Legal provision is mainly comprised of labour lawsuits. Long-term provisions As of 31 July 2025 and 31 January 2025, long-term provisions which consist of severance pay liabilities are as follows: 31 July 2025 31 January 2025 Long-term provisions for employee benefits 176,295 171,480 176,295 171,480 For the period ending 31 July 2025 and 2024 the movement of provision for termination benefits is as follows: 1 February – 31 July 2025 1 February – 31 July 2024 As of February 1 171,480 163,471 Interest cost 18,614 17,351 Service cost 17,756 42,150 Payment of employment termination benefits (60,694) (30,869) Currency translation differences 2,186 952 Actuarial differences 45,946 14,698 Inflation correction effect (18,993) (32,774) As of the end of the period 176,295 174,979
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 28 14 Commitments (a) Guaranties, pledges and mortgages As of 31 July 2025 and 31 January 2025, the Group's guarantee / pledge / mortgage ("GPM") position statement is as follows: 31 July 2025 TL Equivalent TL EUR RUB USD A. On behalf of its own legal personality of the total amount of GPMs 429,451 377,840 800 12,955 193 Guarantee 429,451 377,840 800 12,955 193 Pledge -- -- -- -- -- Mortgage -- -- -- -- -- B. Total amount of GPM included in the scope of consolidation given on behalf of subsidiaries 18,530 -- -- -- 458 Guarantee 18,530 -- -- -- 458 Pledge -- -- -- -- -- Mortgage -- -- -- -- -- C. Total amount of GPM given to conduct other 3rd parties to guarantee the depts. -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- D. Total amount of other GPM -- -- -- -- -- i. Total amount of GPM given on behalf of the main partners -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- ii. Total amount of GPM given on behalf of other group companies which are not in the scope of B and C section -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- iii. Total amount of GPM given on behalf of other group companies which are not in the scope of C section -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- Total GPM 447,981 377,840 800 12,955 651
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 29 14 Commitments (continued) (a) Guaranties, pledges and mortgages (continued) 31 January 2025 TL Equivalent TL EUR RUB USD A. On behalf of its own legal personality of the total amount of GPMs 400,893 326,532 1,079 13,098 580 Guarantee 400,893 326,532 1,079 13,098 580 Pledge -- -- -- -- -- Mortgage -- -- -- -- -- B. Total amount of GPM included in the scope of consolidation given on behalf of subsidiaries 12,573 -- 53 -- 255 Guarantee 12,573 -- 53 -- 255 Pledge -- -- -- -- -- Mortgage -- -- -- -- -- C. Total amount of GPM given to conduct other 3rd parties to guarantee the depts. -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- D. Total amount of other GPM -- -- -- -- -- i. Total amount of GPM given on behalf of the main partners -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- ii. Total amount of GPM given on behalf of other group companies which are not in the scope of B and C section -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- iii. Total amount of GPM given on behalf of other group companies which are not in the scope of C section -- -- -- -- -- Guarantee -- -- -- -- -- Pledge -- -- -- -- -- Mortgage -- -- -- -- -- Total GPM 413,466 326,532 1,132 13,098 835
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 30 14 Commitments (continued) (a) Guaranties, pledges and mortgages (continued) As of 31 July 2025, ratio of other GPM given by the Group to equity was 0% (31 January 2025: 0%). The Group ha s purchase commitments related to inventory a mounting to TL 7,474,430 as of 31 July 2025 (31 January 2025: TL 9,651,048). (b) Guarantees received As of 31 July 2025, the Group has received letter of guarantees for the amount of TL 386,097 as in the form of security from wholesale customers (31 January 2025: TL 793,742). 15 Share capital, reserves and other equity items Paid-in capital The capital structure as of 31 July 2025 and 31 January 2025 is as follows: % 31 July 2025 % 31 January 2025 Akarlılar Family 27.19 216,000 27.19 108,000 Blue International 0.22 1,732 0.22 866 Publicly held 72.6 576,780 72.60 288,390 Capital stock 100 794,512 100 397,256 Adjusment of inflation 1,377,151 1,363,402 Adjusted capital 2,171,663 1,760,658 As of 31 July 2025 paid-in capital of the Company comprises 794,512,000 shares issued of TL 1 each (31 January 2025: 397,256,000 shares issued of TL 1 each). Within the scope of the capital increase of Company from 397,256 TL to 794,512 TL to be fully covered by the amount in the “Retained Earnings” account, the process was initiated with the Board of Directors’ resolution dated 14 January 2025, and the application for the increase was approved by the Capital Markets Board on 21 April 2025. The amendment to Article 6 titled “Capital and Shares” of Company’s Articles of Association was registered by the Istanbul Trade Registry Office on 14 May 2025 and announced in the Turkish Trade Registry Gazette dated 15 May 2025 and numbered 11332. Dividend distribution At the Ordinary General Assembly meeting held at 2 2 May 2025, dividend distribution of TL 931,184 (gross dividend per share: TL 1,17) from 202 4 and previous years’ distributable net income was approved unanimously. Dividend payment expressed in terms of the purchasing power of TL at 31 July 2025 TL is 963,390. Entire dividend payment has been completed as of reporting date. Legal reserves The legal reserves consist of first and second legal reserves, appropriated in accordance with the Turkish Commercial Code (“TCC”). The TCC stipulates that the first legal reserve is appropriated out of historical statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group’s historically paid-in share capital. The second legal reserve is appropriated at the rate of 1/10 of all cash dividend distributions exceeding 5% of the company's capital in cases where profit distribution is made according to CMB regulations, and in cases where dividends are distributed according to legal records, it is appropriated at the rate of 1/11 per annum of all cash distribut es in excess of 5% of the historical paid-in share capital.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 31 15 Share capital, reserves and other equity items (continued) Legal reserves (continued) The legal reserves are not available for distribution unless they exceed 50% of the historical paid -in share capital but may be used to offset losses in the event that historical general reserve is exhausted . As of 31 July 2025 the Group's total legal reserves are TL 700,071 (31 January 2025: TL 494,093). Hedging reserve The hedging reserve consists of the effective portion of the cumulative net change in fair value of the hedged item until the hedging instrument is subsequently accounted for. Share buyback transactions Within the scope of the “Share Buyback Program” approved by the Board of Directors dated 10 June 2025, the Company repurchased 825,000 shares for TRY 31,401. Repurchased shares expressed in terms of the purchasing power of TL at 31 July 2025 is TRY 31,545. As of the reporting date, in accordance with the Communiqué on Share Buybacks (II -22.1), a legal reserve equal to the repurchase amount has been set aside and classified as restricted reserves under equity (31 January 2025: None). 16 Administrative expenses, selling, marketing and distribution expenses For the six-months periods end ing 31 July 2025 and 2024 , administrative expenses comprised the following: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Personnel expenses 890,624 435,082 894,364 457,892 Depreciation and amortization expenses 161,544 88,597 164,702 80,253 Office materials expenses 72,902 36,710 72,011 40,823 Consultancy expenses 71,236 37,729 119,928 56,858 General office expenses 37,815 21,679 29,009 13,896 Travel expenses 12,285 5,674 15,167 7,341 Rent expenses 3,631 1,187 6,505 2,819 Other 144,027 67,740 106,295 50,654 1,394,064 694,398 1,407,981 710,536
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 32 16 Administrative expenses, selling, marketing and distribution expenses (continued) For the six-months periods ending 31 July 2025 and 2024, selling, marketing and distribution expenses comprised the following: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Personnel expenses 2,377,915 1,228,536 2,458,044 1,243,064 Depreciation and amortization expenses 1,139,058 583,081 1,054,093 534,489 Rent expenses (1) 945,597 507,484 1,048,886 509,615 Outsourced logistics expenses 416,919 194,814 421,895 211,839 Freight-out expenses 377,956 165,949 405,911 186,702 Advertising expenses 267,280 131,941 292,973 165,866 Consultancy expenses 120,690 54,695 150,797 76,077 Shopping bag expenses 49,611 26,254 54,902 25,990 Travel expenses 47,374 27,000 49,295 27,733 Other 573,571 307,344 607,662 321,204 6,315,971 3,227,098 6,544,458 3,302,579 (1) Rent expenses cover rent payments calculated on turnover, building management and utilities. 17 Research and development expenses For the six mon ths 31 July 2025 and 202 4, research and development expenses comprised the following: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Personnel expenses 202,656 103,272 165,177 85,534 Depreciation and amortization expenses 137,784 66,720 98,506 48,394 Travel expenses 5,616 2,945 5,693 2,960 Other 6,754 5,695 5,416 3,771 352,810 178,632 274,792 140,659 18 Other operating income and expenses Other operating income for the six-months interim periods end ing on 31 July 2025 and 202 4 is as follows: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Deferred payment income 39,503 36,608 51,255 51,255 Foreign exchange gain related with receivables and payables, net 19,502 (3,916) 29,061 4,643 Turquality incentive income 12,978 12,978 899 -- Salary protocol income 10,785 5,222 13,892 6,269 Rediscount interest income on trade payables, net 8,807 (137,217) 121,436 (57,225) Reversal of expected credit loss 602 (77) 215 99 Other 20,550 2,306 11,960 5,489 112,727 (84,096) 228,718 10,530
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 33 18 Other operating income and expenses (continued) Other operating expenses for the six-months interim periods ending on 31 July 2025 and 2024 are as follows: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Foreign exchange loss related with receivables and payables, net 4,460 3,883 22,553 (278) Expected credit loss 2,095 1,756 75 (192) Other 7,283 2,591 11,384 2,498 13,838 8,230 34,012 2,028 19 Gains and losses from investment activities As of 31 July 2025 and 2024, gains from investment activities comprised the following: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Gain on sale of fixed assets 1,100 72 2,987 2,219 Fx protected deposit income -- -- 9,923 943 1,100 72 12,910 3,162 As of 31 July 2025 and 2024, losses from investment activities comprised the following: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Losses on sale of fixed assets 10,413 5,114 6,398 6,398 10,413 5,114 6,398 6,398 20 Finance income Finance income for the six-months interim periods ending on 31 July 2025 and 2024 is as follows: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Interest income on time deposits 813,924 356,091 1,227,834 692,310 Foreign exchange gain 3,371 (3,698) 24,072 3,665 817,295 352,393 1,251,906 695,975
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 34 21 Finance expenses Finance expenses for the six-months interim periods ending on 31 July 2025 and 2024 are as follows: 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Discount interest on purchases of goods 735,603 340,459 929,258 423,106 Credit card commission expenses 357,778 183,474 344,077 176,077 Interest expenses on lease liabilities 246,159 128,791 223,110 114,849 Interest expenses on financial liabilities 165,526 82,898 361,355 176,034 Import financing expenses 13,211 -- -- -- Foreign exchange loss 3,638 3,613 1,178 104 Other 5,669 2,476 6,789 3,198 1,527,584 741,711 1,865,767 893,368 22 Explanations regarding net monetary position gains/(losses) As of 31 July 2025 and 2024, net monetary position gains in accordance with TAS 29 comprised the following: 1 February- 31 July 2025 1 February- 31 July 2024 Balance Sheet Statement Items Inventories (82,952) (160,610) Prepaid expenses (250) (1,477) Property, plant and equipment & Intangible assets 16,132 95,467 Right-of-use assets (74,941) (42,037) Investments 15,202 30,723 Deferred tax asset 35,504 11,734 Paid-in share capital (53,115) (54,817) Defined benefit plans remeasurement losses 7,290 10,054 Treasury shares (-) 144 -- Restricted reserves appropriated from profit (22,971) (5,457) Retained earnings (908,149) (888,839) Profit or Loss Statement Items Revenue (1,056,394) (1,661,676) Cost of sales (-) 1,182,312 1,683,587 General administrative expenses (-) 95,897 127,801 Selling, marketing and distribution expenses (-) 592,394 778,152 Research and development expenses (-) 67,429 62,810 Other operating income (20,486) (34,885) Other operating expenses (-) 8,588 18,141 Gains from investment activities (94) (1,829) Losses from investment activities (-) 466 178 Finance income (51,719) (94,980) Finance expenses (-) 83,484 141,659 Deferred tax income / (expense) 14,688 70,109 Monetary gain / (loss) (151,541) 83,808
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 35 23 Income taxes Corporate tax rate of Türkiye is 25% (31 July 2024: 25%). For the six-months interim period ended 31 July 2025, the Group’s effective tax rate is 24.2% (31 July 2024: 27.4%). 24 Earnings per share The amount of earnings per share is calculated by dividing the net period profit attributable to the owners of the Company shares by the weighted average share of the company's shares during the period. Earnings per share for the six-months interim periods ending on 31 July 2025 and 2024 are as follows: 1 February – 31 July 2025 1 May – 31 July 2025 Restated 1 February – 31 July 2024 Restated 1 May – 31 July 2024 Net profit for the year attributable to owners of the Company 1,110,761 231,088 2,073,574 683,090 Weighted average number of ordinary shares 794,512 794,512 794,512 794,512 Earnings per share 1.3980 0.2909 2.6099 0.8598
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 36 25 Nature and level of risks related to financial instruments Market risk The market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments . The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. Currency risk The Group has exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flow . The main currencies used in these transactions are E UR, USD, CAD and RUB. The Group maintains foreign currency deposits and uses derivative financial instruments such as short- term forward foreign exchange contracts to hedge currency risk arising from import purchases on credit. Interest rate risk Since the Group does not use floating interest loans, it is not exposed to the risk of fluctuations in interest rates. Capital Management The Board’s policy is to maintain a strong capital base to maintain investor, creditor and market confidence; to sustain future development of the business and to maintain an optimal capital structure in order to reduce the cost of capital. Currency Risk The foreign currency exchange rates are as follows as of the end of the reporting period: 31 July 2025 31 January 2025 TL / EUR 46.7684 37.1844 TL / USD 40.4994 35.7210 TL / RUB 0.4921 0.3619 TL / CAD 29.3556 24.7461 The average of foreign exchange rates as of the end of the reporting period is as follows: 1 February – 31 July 2025 1 February – 31 July 2024 TL / EUR 42.7148 34.6488 TL / USD 38.2241 32.072 TL / RUB 0.4589 0.353 TL / CAD 27.3386 23.5062
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 37 25 Nature and level of risks related to financial instruments (continued) Market risk (continued) Currency risk (continued) As of 31 July 2025, the Group's foreign currency position specified in the following table arises from foreign currency denominated assets and liabilities. As at 31 July 2025, Mavi Türkiye has trade receivables amounting to TL 85,827 from consolidated subsidiaries which comprise CAD 389 thousand, USD 1,083 thousand, RUB 146,768 thousand and has trade payable amounting EUR 891 thousand. These amounts have been eliminated in consolidation . Considering these receivables, the Group's net foreign currency monetary assets position amounts to TL 768,680. TL Equivalent USD EUR Other (TL Equivalent) 1. Trade receivables 40,928 1,000 -- 429 2a. Monetary financial assets (including cash banks) 1,408,069 33,412 1,140 1,587 2b. Non-monetary financial assets -- -- -- -- 3. Other 702,435 17,233 96 -- 4. Current assets (1+2+3) 2,151,432 51,645 1,236 2,016 5. Trade receivables -- -- -- -- 6a. Monetary financial assets -- -- -- -- 6b. Non-monetary financial assets -- -- -- -- 7. Other -- -- -- -- 8. Non-current assets (5+6+7) -- -- -- -- 9. Total assets (4+8) 2,151,432 51,645 1,236 2,016 10. Trade payables 583,797 12,990 1,201 1,524 11. Financial liabilities 91,377 1,246 875 -- 12a. Monetary other liabilities -- -- (26) 1,193 12b. Non-monetary other liabilities -- -- -- -- 13. Short-term liabilities (10+11+12) 675,174 14,236 2,050 2,717 14. Trade payables -- -- -- -- 15. Financial liabilities 5,143 -- 110 -- 16a. Monetary other liabilities -- -- -- -- 16b. Non-monetary other liabilities -- -- -- -- 17. Long-term liabilities (14+15+16) 5,143 -- 110 -- 18. Total liabilities (13+17) 680,317 14,236 2,160 2,717 19. Net Asset/(Liability) Position of derivative instruments (19a-19b) -- -- -- -- 19a. Hedged total asset -- -- -- -- 19b. Hedged total liabilities -- -- -- -- 20. Position of net foreign currency assets/liabilities (9-18+19) 1,471,115 37,409 (924) (701) 21. Position of net foreign currency monetary assets/liabilities (=1+2a+5+6a-10-11-12a-14-15-16a) 768,680 20,176 (1,020) (701)
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 38 25 Nature and level of risks related to financial instruments (continued) Market risk (continued) Currency risk (continued) As of 31 January 2025, the Group's foreign currency position specified in the following table arises from foreign currency denominated assets and liabilities, As at 31 January 2025, Mavi Türkiye has trade receivables amounting to TL 64,592 from consolidated subsidiaries which comprise; USD 84 thousand, CAD 232 thousand, EUR 945 thousand and RUB 57,054 thousand amounts have been eliminated in consolidation . Considering these receivables, the Group's net foreign currency monetary assets position amounts to TL 60,426. TL Equivalent USD Euro Other (TL Equivalent) 1. Trade receivables 40,205 1,026 -- 3,555 2a. Monetary financial assets (including cash. banks) 21,160 413 104 2,541 2b. Non-monetary financial assets -- -- -- -- 3. Other 138,984 3,891 -- -- 4. Current assets (1+2+3) 200,349 5,330 104 6,096 5. Trade receivables -- -- -- -- 6a. Monetary financial assets -- -- -- -- 6b. Non-monetary financial assets -- -- -- -- 7. Other -- -- -- -- 8. Non-current assets (5+6+7) -- -- -- -- 9. Total assets (4+8) 200,349 5,330 104 6,096 10. Trade payables 111,950 1,903 1,163 707 11. Financial liabilities 7,914 -- 213 -- 12a. Monetary other liabilities -- -- (26) 971 12b. Non-monetary other liabilities -- -- -- -- 13. Short-term liabilities (10+11+12) 119,864 1,903 1,350 1,678 14. Trade payables -- -- -- -- 15. Financial liabilities 1,927 -- 52 -- 16a. Monetary other liabilities -- -- -- -- 16b. Non-monetary other liabilities -- -- -- -- 17. Long-term liabilities (14+15+16) 1,927 -- 52 -- 18. Total liabilities (13+17) 121,791 1,903 1,402 1,678 19. Net Asset/(Liability) Position of derivative instruments (19a-19b) -- -- -- -- 19a. Hedged total asset -- -- -- -- 19b. Hedged total liabilities -- -- -- -- 20. Position of net foreign currency assets/liabilities (9+18-19) 78,558 3,427 (1,298) 4,418 21. Position of net foreign currency monetary assets/liabilities (=1+2a+5+6a-10-11-12a-14-15-16a) (60,426) (464) (1,298) 4,418
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 39 25 Nature and level of risks related to financial instruments (continued) Market risk (continued) Currency risk (continued) Sensitivity analysis The Group's foreign exchange risk consists of movements of TL against Euro, ABD Dollar and Rouble and Canada Dollar. The basis for performing sensitivity analysis to measure foreign exchange risk is to disclose the total currency position of the Company . Total foreign currency position consists of all purchase/sales agreements in foreign currency and all assets and liabilities . Analysis does not include net foreign currency investments. The Group’s short-term and long-term borrowings are carried out in balance under pooling/portfolio model. Foreign Currency Sensitivity Analysis 31 July 2025 Profit/Loss Equity Appreciation of foreign currency Devaluation of foreign currency Appreciation of foreign currency Devaluation of foreign currency 10% change of the USD against TL 1- Net USD denominated asset/liability (106,960) 106,960 (106,960) 106,960 2- Hedged portion of TL against USD risk(-) -- -- 188,670 (188,670) 3- Net effect of USD (1+2) (106,960) 106,960 81,710 (81,710) 10% change of the EURO against TL 4- Net EURO denominated asset/liability (4,772) 4,772 (4,772) 4,772 5- Hedged portion of TL against EURO risk(-) -- -- -- -- 6- Net effect of EURO (4+5) (4,772) 4,772 (4,772) 4,772 10% change of other against TL 7- Net other denominated asset/liability (70) 70 (70) 70 8- Hedged portion of TL against other risk(-) -- -- -- -- 9- Net effect of other (7+8) (70) 70 (70) 70 Total (3+6+9) (111,802) 111,802 76,868 (76,868)
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 40 25 Nature and level of risks related to financial instruments (continued) Market risk (continued) Currency risk (continued) Sensitivity analysis (continued) Foreign Currency Sensitivity Analysis 31 January 2025 Profit/Loss Equity Appreciation of foreign currency Devaluation of foreign currency Appreciation of foreign currency Devaluation of foreign currency 10% change of the USD against TL 1- Net USD denominated asset/liability (1,660) 1,660 (1,660) 1,660 2- Hedged portion of TL against USD risk(-) -- -- -- -- 3- Net effect of USD (1+2) (1,660) 1,660 (1,660) 1,660 10% change of the EURO against TL 4- Net EURO denominated asset/liability (4,824) 4,824 (4,824) 4,824 5- Hedged portion of TL against EURO risk(-) -- -- -- -- 6- Net effect of EURO (4+5) (4,824) 4,824 (4,824) 4,824 10% change of other against TL 7- Net other denominated asset/liability 441 (441) 441 (441) 8- Hedged portion of TL against other risk(-) -- -- -- -- 9- Net effect of other (7+8) 441 (441) 441 (441) Total (3+6+9) (6,043) 6,043 (6,043) 6,043
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements As at and for the six months period ended 31 July 2025 (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 41 26 Financial instruments (fair value disclosures and disclosures under hedge accounting) Fair value disclosures The Group estimates the fair values of financial instruments based on market information readily available and proper valuation approaches. The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used. When measuring fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorized into different levels in fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i,e, prices) or indirectly (i,e, derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data. Financial instruments measured at fair value Type Valuation technique Significant unobservable Intra-relationship between significant unobservable inputs and fair value measurement Forward exchange contracts Forward pricing: the fair value is determined using quoted forward Exchange rate and present value calculations based on high credit quality yield curves in the respective currencies. Not applicable. Not applicable. Financial instruments not measured at fair value Other financial liabilities (1) Discounted cash flows: the valuation model considers the present value of expected payment, discounted using a risk-adjusted discounted rate. (1) Other financial liabilities include bank loans. 27 Subsequent events None.
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Mavi Giyim Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries Reviewed supplementary information (Amounts expressed in thousands of Turkish Lira (“TL”) in terms of the purchasing power of the TL at 31 July 2025, unless otherwise indicated.) 42 APPENDIX 1 EBITDA reconciliation EBITDA is not a defined performance measure in TFRS, EBITDA reconciliation for the six-months period ended 31 July 2025 and 2024 are as follows: Note 1 February – 31 July 2025 1 May – 31 July 2025 1 February – 31 July 2024 1 May – 31 July 2024 Profit 1,016,931 166,230 2,027,863 624,255 Tax (income) / expense 324,949 10,187 764,131 66,963 Profit before tax 1,341,880 176,417 2,791,994 691,218 - Fx protected deposit income 19 -- -- (9,923) (943) - Net monetary (gain)/ loss 22 151,541 53,624 (83,808) 24,667 - Net finance costs 710,289 389,318 613,861 197,393 - Rediscount interest on trade receivables and payables, net 18 (8,807) 137,217 (121,436) 57,225 - Currency translation differences on trade receivables and payables, net 18 (15,042) 7,799 (6,508) (4,921) - Depreciation and amortization 10-12 1,438,386 738,399 1,317,301 663,134 EBITDA 3,618,247 1,502,774 4,501,481 1,627,773 As of 31 July 2025, TFRS 16 has an impact of TL 910,307 on EBITDA (31 July 2024: TL 750,451). APPENDIX 2 Effect of TFRS 16 on Financial Statements The effects of TFRS 16 lease standard on the Group's financial statements are presented below: 1 February – 31 July 2025 TFRS 16 Effect After TFRS 16 Operating profit 2,226,873 (13,850) 2,213,023 Operating profit before finance costs 2,217,560 (13,850) 2,203,710 Finance income 817,295 -- 817,295 Finance expense (1,273,480) (254,104) (1,527,584) Monetary gain /loss (352,364) 200,823 (151,541) Profit before tax 1,409,011 (67,131) 1,341,880 Net profit 1,051,664 (34,733) 1,016,931 EBITDA 2,707,940 910,307 3,618,247 31 July 2025 TFRS 16 Effect After TFRS 16 Current assets 15,621,984 (33,872) 15,588,112 Non-current assets 5,280,186 2,015,661 7,295,847 Current liabilities 8,911,677 1,087,927 9,999,604 Non-current liabilities 206,817 807,584 1,014,401 Equity 11,783,676 86,278 11,869,954