The enterprise value to be taken into account at the closing date for the respective sales transaction is determined as $525 million and the final sale consideration will be subject to adjustments to be made including cash and debt adjustments after the closing.
Cesar Tiron: Very clear.
Ali Taha Koc: Okay.
Operator: The next question is from the land of Mandaci, Ece with UNLU Securities. Please go ahead.
Ece Mandaci: Hi, congratulations on the strong results. I have a couple of questions. One is about your EBITDA guidance for 2024. It looks like you’re expecting maybe some double-digit growth in your EBITDA in real terms. What’s the main reason for that? I understand that you are going to make price adjustments and there will be real revenue growth, but could there be any possibilities in cost saving maybe? Can you provide more details about that? And secondly, I’m seeing that you have recorded deferred tax income. You also had last year, is this due to the revaluation of some of it and will this be continuing in 2024 as well? And thirdly, I see that you expensed some donation expense in the fourth quarter, but cash flow wise, this payment will be done in the first quarter. Is that right? Thank you.
Kamil Kalyon: Yes, Ece. Starting from the third question, yes, the donation is paid on January 2024, the second installment regarding the donation payment. And our EBITDA margin forecast for 2024, as you know, it’s a very tough environment in 2024 also for Turkey. Our full year EBITDA margin was around 41% in 2023, which is 1.8 pp above of last year. However, this year we expect a flattish margin at around 42% because inflationary cost pressures will continue and the cost of energy prices will be one of the most important factors that will affect our EBITDA margin. As you know, in 2023, the energy costs are subsidized by the government side. Therefore, it really affected our EBITDA high margin in 2023. However, our strong real top line growth support by our sequential price adjustments.
Therefore, as you know, we are all continuously promising our investors to make the inflationary pricing. We continue to do it in 2023. And most probably in 2024, this inflationary sequential price adjustment will continue and we would aim the same EBITDA margins in 2024. The first question is about…
Ece Mandaci: Deferred tax income. Is that continuing in 2024 as well and the reason for that, if you can explain.
Kamil Kalyon: Normally, after the inflationary adjustment side we will not make any revelation for the fixed assets side in the local side. Therefore it would not — there would not be any, most probably would be a revelation after the inflationary accounting side. Therefore we have some tax effects in 2023 coming from the donation side. In 2024, we do not expect any donation-related deferred tax or [indiscernible] basis effect in 2024 in the deferred tax side.
Ece Mandaci: Just to follow up on your EBITDA margin guide, do you consider any more increase in minimum wage in the second half or increase in personal expenses in the second half of the year?
Kamil Kalyon: No. Our macro model does not include a second increase in the minimum wage income. We will see after the — we will wait the elections and after the election, we will be closely following the policies of the economical side. But our assumption does not bring a second minimum wage increase in July. And nominal EBITDA growth in 2024 will be around 10%, Ece.
Ece Mandaci: Thank you very much.
Kamil Kalyon: You’re welcome.
Operator: The next question comes from the line of Demirtas, Cemal with Ata Invest. Please go ahead.
Cemal Demirtas: Thank you very much. Congratulations for good results. My first question is about this continued operation. You shared some historical figures, including Ukraine. Could you tell us the bottom line net income number for full year 2023, including Ukraine in 2023? That’s my question. I can see the — I can calculate the revenue and EBITDA but I cannot calculate the recircle number for discontinued sites at the net income level. That’s my first question. And maybe if you give more digits about the revenue growth, it is so good to you, so that we can compare. I think it will be helpful. And the other question is about your guidance. I understand that for the — when you make the calculation based on the IFRS 29 figures, you’re saying that you will have, let’s say, 8%, 9% real growth plus inflation 37% year-over-year.
I think that’s the assumption we are making, if I didn’t understand it wrong. That’s my second question. And the third question, how do you see the Ukraine operations to act up? You put it in discontinuity, as it was a profitable one, maybe going forward, it will change. But can you give us some — the timeline? And the last is not a question, but just criticism I’m making to all the blue chips companies in Turkey. To be honest, I would expect higher disclosure, transparency related to inflation accounting because it’s really hard to understand. And most of the companies put several numbers as you did. But I know some good examples like the [indiscernible], they made whole — the comparison, which was very much helpful. Just a quick, it’s a criticism because I keep [indiscernible] of our I always show it as a very good standard but in my humble opinion that’s the basic thing.
I didn’t like any company in Turkey, most of the blue chip companies. They give limited figures, but I look for the transparency. I would expect much, much higher. Thank you. Thank you very much.
