R&D and Innovation in Energy Efficient Products slide image

R&D and Innovation in Energy Efficient Products

May 2020 Receivable Risk Liquidity Risk Financial Risk Management • Credit risk of receivables is managed by securing receivables with collaterals covering receivables at the highest possible proportion. Apart from bank guarantees (guarantee letters, LOC etc.), Arçelik utilizes credit insurance for international receivables and mortgages for receivables in Turkey. In credit risk control, for the customers which are not secured with collaterals, the credit quality of the customer is assessed by taking into account its financial position, past experience and other factors. Arçelik seeks to minimize gap risk in its financial and commercial liabilities by managing its balance sheet according to expected cash flows. Maturities of financial liabilities are arranged according to maturities of assets, and where possible, a mismatch between the maturities is eliminated FX Risk Arçelik targets to maintain a net FX position close to zero and limit its exposure to set amounts as a % of capital. On top of the on-balance sheet natural hedge and financial liability management, derivatives are also employed to maintain the FX risk at targeted levels. Arçelik
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