Iso 500 2018
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enterprise europe network Technological Cooperation&Partnership Access to New Markets Access to New Technologies CE Mark EU Technical Standards Horizon 2020 Innovation Intellectual Property Rights Internationalization Foreign Trade Research&Development Enterprise Europe Network ISTANBUL www.een-istanbul.org een.ec.europa.eu Among 80 countries. Always the best. • Afghanistan • Albania • Algeria • Australia • Azerbaijan • Bahrain • Barbados • Belarus • Belgium • Benin • Bulgaria • Burkina Faso • Cameroon • Canada • Cayman Islands • Congo • Denmark • Djibouti • Equatorial Guinea • Ethiopia • France • Gabon • Gambia • Georgia • Germany • Ghana • Greece • Guinea • India • Iraq • Ireland • Jordan • Kazakhstan • Kenya • Kosovo • Kuwait • Kyrgyzstan • Lebanon • Liberia • Libya • Macedonia • Madagascar • Malta • Mauritania • Moldova • Montenegro • Morocco • Netherlands • Niger • Nigeria • Oman • P.R. China • Pakistan • Palastine • Panama • Qatar • Réunion • Romania • Russia • Rwanda • Saudi Arabia • Serbia • Sierra Leone • Slovakia • South Africa • Sweden • Switzerland • Taiwan • Tajikistan • Tanzania • Tunisia • Turkish Republic of Northern Cyprus • Turkmenistan • Uganda • Ukraine • United Arab Emirates • United Kingdom • United States of America • Uzbekistan • Yemen Kalekim Kimyevi Maddeler San. ve Tic. A.Ş. Firuzköy Mah. Firuzköy Bulvarı No: 188 /1 Avcılar - İstanbul / Türkiye T +90 212 423 0018 (pbx) F +90 212 423 3188 www.kalekim.com / [email protected] / [email protected] CHAIRMAN'S MESSAGE INDUSTRY’S 2018 CHALLENGE... The Istanbul Chamber of Industry is proud to present to the public the most comprehensive and deep-rooted survey on the industrial landscape in Turkey, "Turkey's Top 500 Industrial Enterprises (ISO 500)" offering remarkable insights that shed light on the present and future of our economy. hile the year 2018 had a promising start for the global economy, Wthe rising trade war and tightening financial conditions resulted in a major shift in the forecast towards the end of the year. Particularly in the second half, global trade and growth lost momentum. On the other hand, regardless of global developments, 2018 was a difficult year for our country. Turkey had a turbulent period due to increasing political and geo- political uncertainties, coupled with the rise in inflation and interest rates triggered by the sharp depreciation of the Turkish lira in the summer. This was a significant challenge, especially for us industrialists, to overcome. The 2018 results of the ISO 500 mark a historic period, showing how our industrial enterprises were affected by all these recent developments and how they tackled these challenging conditions. Looking briefly at the findings of the survey, we see that the ISO 500 were able to achieve an increase of more than 30 percent each in production-based sales and net sales, but the figures were mainly affected by inflation and exchange rate differences. Especially in the second half of the year, the surge in exchange rates and the shrinking domestic demand led our industrial- ists to focus on exports while growth, mirroring the economic trend at the time, was driven by exports. Ultimately, the 11.3 percent increase in the ISO 500’s exports was above the overall performance of the Turkish economy. Another noteworthy result is that in 2018, our companies focused on their main activities and maintained an upwards trend in their operating profitability by effectively managing their sales costs and operational ex- penses. When compared to net sales, the operating profit increased by 1.3 points to 10.9 percent, and the earnings before interest, tax, deprecia- tion and amortization (EBITDA) to 14.2 percent, pointing to a noteworthy performance. However, there are certain problems that overshadow this success. The depreciation of the Turkish lira substantially increased the companies’ debt burden and furthered the deterioration in the resource structure. Fi- nancing expenses skyrocketed 172.4 percent in one year, forcing compa- nies to spend 88.9 percent of their operating profit on financing expenses. This led to a decline in return on sales, which dropped from 7.2 percent to 6.4 percent. In other words, the main factor that suppressed profitability was again financing and its effect became much more prevalent. On the other hand, we should not ignore our companies’ experience in and capability of coping with challenging conditions. It is worth noting that the ISO 500 enterprises, having managed their cash flow well, were able to remain on the positive side of the foreign exchange profit-loss balance, despite the deterioration in balance sheet structures and the increase in financing costs. Another positive data is that growing focus on R&D and technological activities amongst our industrial companies. While the number of com- panies with R&D operations has jumped to 276, there is also a promising increase in the share of high-tech industries. However, it is clear that we ERDAL BAHÇIVAN need to step up our efforts to transform into the competitive and high Istanbul Chamber of Industry value-added industrial structure we need. Chairman of the Board of Directors In closing, I would like to congratulate our industrialists who have always had an optimistic outlook and who have furthered their contributions to the Turkish economy with great devotion and commitment even in these difficult times. I would also like to extend my gratitude to our Economic Research and Corporate Finance Department for rigorously preparing this survey with great effort, our valuable consultants and academics who have contributed with their comments and evaluations and all col- leagues who have helped us in the creation of the ISO 500. AUGUST 2019 l 3 INDEX Chairman’s Message I 2 Executive Summary I 7 Developments in the World and Turkish Economy I 9 Main Indicators I 20 Main Financial Indicators I 41 Profitability Indicators I 49 Value Added, Efficiency and Productivity I 61 Technological Activities I 70 Turkey's Top 500 Industrial Enterprises Ranking I 77 Sectoral Data I 109 Methodology, Definitions and Explanations I 116 Economic Activity Codes and Capital Distribution I 120 Sectoral Ranking I 123 Alphabetical Ranking I 141 4 l AUGUST 2019 Country Days We organize country days to explore new markets, improve our economic relations with different countries and discover opportunities for cooperation and investment. Enterprise Europe Network ISTANBUL www.een-istanbul.org een.ec.europa.eu CREDITS THE JOURNAL OF THE ISTANBUL CHAMBER OF INDUSTRY August 2019 Special Issue AUTHORIZED BY CHAIRMAN OF THE BOARD OF DIRECTORS ON BEHALF OF THE ISTANBUL CHAMBER OF INDUSTRY Erdal Bahçıvan EDITORIAL BOARD Sultan Tepe – Ayşegül Çapan – Ramazan Güven Sadettin Kaşıkırık – Hülya Koç – Sabahattin Şen DIRECTOR OF PUBLICATIONS Haktan Akın CHIEF PUBLISHING COORDINATOR Asım Aslan STUDY BY Economic Research and Corporate Finance Department of Istanbul Chamber of Industry EDITED BY Corporate Communications and Member Services Department of Istanbul Chamber of Industry ADDRESS FOR ADVERTISING Odakule, Meşrutiyet Cad. No: 63 34430 Beyoğlu /Istanbul Phone: +90 212 252 29 00 Ext 131-132-133-134 E-mail: [email protected] PUBLISHING Promat Basım Yayın Sanayi ve Ticaret A.Ş. Orhan Gazi Mahallesi 1673. Sk. 34 - Esenyurt/Istanbul Phone: 0212 622 63 63 www.promat.com.tr Certificate No: 12039 Date of Publication: August 2019 A special issue of the Monthly Journal of the Istanbul Chamber of Industry ISO 500® / ©2019 Istanbul Chamber of Industry/ All rights reserved according to Law no. 5846 on Intellectual and Artistic Works. Cannot be copied, reproduced or published without permission in any circumstances. Istanbul Chamber of Industry has no liability for errors or mistakes that may occur due to copy or reproduction of the information and analyses in this publication. 6 l AUGUST 2019 EXECUTIVE SUMMARY In 2018, the global economy lost a great deal of momentum, number of foreign-invested enterprises in the ISO 500 rose suffering from the effects of protectionist measures, the un- by 2 to reach 117. The share of foreign-invested enterprises certainty of Brexit, sanctions and geopolitical risks as well as in production-based sales dropped to 31.1 percent, while their the end of quantitative easing. The global economic growth share in gross value-added climbed to 39.5 percent. rate, which peaked at 3.8 percent in 2017 and achieved its The number of ICI-member enterprises declined to 166 in highest in the last six years, fell to 3.6 percent in 2018. In the 2018. In parallel with this decline, their share in main ag- same period, despite the protectionism measures, global gregates was also decreasing. Compared to 2007, the share commodity trade increased by 3 percent in volume and 10 of ICI members in production-based sales fell by 8.8 points. percent in value to reach $18.9 trillion. However, there is a sig- While the share of the interest paid in the breakdown of fac- nificant slowdown especially in quantity-based global com- tor income of ICI-member enterprises increased significantly, modity trade. As a result of these developments, global in- there was a dramatic decrease in the share of profit as na- dustrial performance has weakened considerably. Industrial tional income. production showed a downward trend virtually all around the The number of publicly traded companies declined to 67 from world, same as the export prices of global industrial goods. 69. Nevertheless, the shares of those companies in the ba- Affected by the financial volatility caused by rising political sic indicators followed an upward trajectory. In particular, the tensions abroad and geopolitical risks as well as the current share of publicly traded companies in the total profit and loss global conditions, Turkey’s economy achieved a 2.6 percent for the period before tax increased to 50.7 percent. growth in 2018, dropping well below its potential. In this pe- Meanwhile, there has been a significant leap in sales. In 2018, riod, the industry also suffered from the sharp shrinkage in both production-based sales and net sales recorded substan- domestic demand. Moreover, the rise in inflation and interest tial growth, with 34.5 percent and 34.2 percent, respectively.