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Koç Holding’s Financial Results For The First Half of 2016

KOÇ HOLDING POSTS TL 31.1 BILLION CONSOLIDATED TURNOVER AND TL 1.4 BILLION NET PROFIT FOR PARENT COMPANY IN THE FIRST HALF OF 2016

KOÇ HOLDING CEO LEVENT ÇAKIROĞLU:
“OUR INVESTMENTS TOTALLING TL 30 BILLION IN THE PAST FIVE YEARS FUNCTION AS THE MOST SIGNIFICANT INDICATOR OF OUR STRONG BELIEF IN OUR COUNTRY AND ITS FUTURE. WE SHALL CONTINUE TO PROMOTE OUR COUNTRY’S POTENTIAL WHEREVER WE OPERATE AND THROUGHOUT THE WORLD.”

Koç Holding has posted a total consolidated turnover of 31.1 billion Turkish liras and net profits of 1.4 billion Turkish liras for the parent company in the first half of 2016. Assessing Koç Holding’s financial results for the first half of 2016, Koç Holding CEO Levent Çakıroğlu says: “Our country has come through quite a challenging period when a coup attempt, a black mark in our political history, targeted the unity and integrity of the Republic of Turkey. It was the belief in democracy held so dear by our nation, state and forces of law that thwarted this attempt. That our country has passed this crucial test of democracy with flying colours is a credit to our nation. I would like to take this opportunity to ask that God rest the souls of the victims, and extend my sympathy to their families as I wish the injured a speedy recovery. We are proud to note the triumph of common sense, unity and harmony in effecting a swift return to normality in the wake of this intolerable coup attempt. The resultant environment of solidarity has opened an enormous window of opportunity in establishing a sustainable social peace. I am convinced that it is now beholden upon all segments of society to behave responsibly; I would also like to reiterate, on behalf of the Koç Group, our readiness to do our duty. Nearly the same age as the Republic of Turkey, our Group has witnessed many a tough period in their common history. With nothing less than totally unshakeable confidence in Turkey, we have always endeavoured to prove to our loyalty to our country through our work and production. Our investments totalling 30 billion Turkish liras in the past five years serve as the most significant indicator of our strong belief in our country and its future. We shall continue to promote our country’s potential wherever we operate and throughout the world.”

Levent Çakıroğlu: “Investments ensured our sustained growth in the first half of the year as we continued to contribute to the economy and employment.”
Drawing attention to the first half performance of Koç Group companies that continue to serve as driving forces of their industries in Turkish economy, Levent Çakıroğlu remarks: “The first half of 2016 has been characterised by intense political uncertainty, geopolitical risks and market turbulence both in Turkey and abroad. During this period, we have continued to grow and contribute to the economy and employment through a varied portfolio, powerful exporting companies and investments; moreover, our S&P investment grade status is maintained thanks to the solid operational and financial performances of our companies and our strong balance sheet. In line with our global vision we have taken a major step to further fortify Arçelik’s international position. We have signed an agreement to acquire the leading Pakistani home appliances manufacturer. Several investments in the automotive sector made in the past few years have enabled us to launch new models on the market in 2016, and drive the growth in Turkish automotive exports. As we grew profitability in banking, we have also taken the necessary steps to strengthen our capital structure and cash holdings. We have continued to invest in technology as we place enormous value on R&D and innovation; consequently today, three of the Patent League top five are Koç Group companies.”

Levent Çakıroğlu: “Responding to strong domestic demand, Tüpraş realised full capacity and grew sales by 12% in the first half of the year.”
Remarking on the sales growth of Tüpraş year-on-year, helped also by the Fuel Oil Recycling Facility despite the decline of the net refinery margin in the same period due to the weakening product-price ratios in the Mediterranean market in the first half of the year, Levent Çakıroğlu comments, “Tüpraş achieved total sales of 14.5 M tonnes in the first half of the year, representing a growth of 12% year-on-year. Solid domestic demand grew domestic sales by 23%.”

Levent Çakıroğlu: “We have become the driving force of growth in Turkish automotive exports.”
“Strong export performance has fostered growth in both turnover and profitability for our automotive companies despite the decline in demand in commercial vehicles in the first half of the year” says Levent Çakıroğlu and continues: “Bolstered by investments and new products, Ford Otosan and Tofaş bucked the trend in the industry and grew their total export figures by 17% and 53% respectively, with exports accounting for nearly 70% of their sales. Koç Group companies have also, in this period, become global players in manufacturing and R&D. As Ford Otosan begins mass production of the new generation Ecotorq lorry engine developed and built entirely in Turkey, Tofaş has given the go-ahead for the production of the Hatchback and Station Wagon models in the Fiat Aegea Project, a Tofaş intellectual and industrial property.”

Levent Çakıroğlu: “Arçelik strengthens its position in the global home appliances market.”
Remarking on the continued growth in Arçelik’s share on the European home appliances market in the first half of 2016 and its Beko brand’s steady top two position in units sold, Levent Çakıroğlu states: “Solid domestic demand and strong exports have helped Arçelik to grow total turnover by 20% in the first half of the year. In a move consistent with its global growth strategy, Arçelik has also signed an acquisition agreement with Dawlance, Pakistan’s leading home appliances manufacturer in the same period. We have consequently taken a significant step in raising Arçelik’s manufacturing power to eighteen facilities in seven countries.”

Levent Çakıroğlu: “Yapı Kredi continues to display a successful performance.”
Highlighting Yapı Kredi’s increased profitability in the first half of the year, while maintaining its position in capital, cash holdings and market share, Levent Çakıroğlu continues: “Yapı Kredi’s consolidated net profit (based on Turkish Accounting Standards) has risen by 62% year-on-year to reach 1.55 billion Turkish liras, while cumulative tangible return on equity rose by 433 points on base and reached 14%. Strong profitability, effective capital usage and issuance of a subordinate loan have all contributed to strengthening the bank’s capitalisation. With a sustained focus on digital banking in 2016 and mobile banking leading the way, Yapı Kredi has continued to expand its customer base via digital channels.”