Sabancı Holding made 3 billion TL investment in the first nine months of 2016 and increased its profit at the rate of 12%
THE NET PROFIT OF SABANCI HOLDING IN THE FIRST NINE MONTHS OF 2016 AMOUNTED TO 1.89 BILLION TL WITH A 12% INCREASE IN COMPARISON WITH THE SAME PERIOD OF THE PREVIOUS YEAR.
Mr. Zafer Kurtul, the CEO of Sabancı Holding, made the following statements, “As Sabancı Holding, we completed a successful period. Enerjisa maintained its successful operations in all three business lines consisting of generation, distribution and sale activities. We continued to improve our service quality substantially thanks to our investments and efficient operations in electricity distribution and sales areas.”
“Innovation and R&D are the issues which are regarded as a priority in our Group. The companies in our Energy Group carried out very fruitful business activities in these respects. Now, we are exporting our Temsa buses to 66 different countries of the world. We strengthen one out of every two automobile tyres sold across the world with Kordsa Global.”
The consolidated sales of Sabancı Holding amounted to 25.551 billion TL with a 17% increase in the first nine months of 2016 in comparison with the same period of the previous year. The net profit of Sabancı Holding in the first nine months was 1.89 billion TL with a 12% increase in comparison with the same period of the previous year. Total assets of Sabancı Holding reached 290.567 billion TL whereas its total consolidated equity reached 22.53 billion TL as at 30.09.2016.
Mr. Zafer Kurtul, the CEO of Sabancı Holding, noted the following with respect to the performance of Sabancı Holding for the nine months, “We had a very successful period in the first nine months of 2016. As Sabancı Holding, our goal is to protect our leadership in the industries we are engaged in with rapid growth in all areas just as we have done so far. We made 3 billion TL investments in this period. The amount of our investments in the last five years has exceeded 22 billion TL.”
Also stating that they made the majority of their investments in Turkey, Mr. Kurtul reported that they would keep being helpful to Turkey and create more value for their stakeholders by way of further strengthening the Sabancı Group in innovation and R&D and working and producing more in all areas they were operating in.
“THE SUPPORT PROVIDED TO THE REAL SECTOR AND INDIVIDUALS BY US EXCEEDED 202 BILLION TL.”
Making statements about the banking activities of the Holding, Mr. Kurtul asserted that Akbank continued to protect its strong balance sheet performance and that they increased the support provided to the economy at the rate of 9 percent in comparison with the last year end and increased their loans to 202 billion TL, a total of 169 billion TL of which was cash. Mr. Kurtul continued his statement as follows, “We increased our assets to 277 billion TL with a 10 percent increase. Our general deposits, which increased at the rate of 10 percent in the first 9 months of the year, exceeded 164 billion TL. Our Bank reserved 1 billion TL as a provision for tax and achieved 3.682 billion TL consolidated net profit. Another indicator of our smooth growth in this period is our rate of non-performing loans which is at the level of only 2.2 percent.”
“WE PROVIDE SERVICE TO 110 THOUSAND SQUARE KILOMETRES IN TURKEY AND RESPOND TO 1.3 MILLION CALLS PER YEAR.”
Mr. Kurtul specified that Enerjisa had a successful performance in the first nine months of 2016 and explained the following in connection with the activities of Sabancı Holding in the field of energy, “Enerjisa continued its successful operations in all three business lines consisting of generation, distribution and sales. We continued to substantially improve our service quality with our investments and efficient operations in electricity distribution and sales areas. We enhanced our efficiency and performance thanks to the important role of renewable energy in our portfolio under challenging market conditions, involving excess supply in generation and low electricity prices. Currently supplying energy for 1 person out of every 4, Enerjisa increased its operating profit by over 30% in the first nine months excluding one-time effects in comparison with the same period of the previous year.”
Stating that they continued their investments uninterruptedly in 14 cities where they provide electricity distribution services to a 110,000 square kilometre area, Mr. Kurtul noted that they also targeted making a difference in the industry with their customer oriented approaches and that Enerjisa had opened a new call centre in Adana in October, which created new service channels by means of prioritising the preferences of customers. Mr. Kurtul asserted that Enerjisa was carrying out its activities in the field of electricity sales with about 200 service points and that 1.3 million calls were responded to per year in the call centres of Enerjisa.
Pointing out that they reached 3,536 MW installed power in total upon the commissioning of 1,139 MW installed power by Enerjisa this year, Mr. Kurtul reported the following about the generation activities, “The 55% share of domestic and renewable sources of energy in the portfolio of Enerjisa, the largest private electricity generation company of Turkey, is an indicator of the importance we attach to these resources. An efficient and balanced generation portfolio in terms of the sources of energy is of critical importance for competitive power in the challenging market conditions. Enerjisa also created substantial value with effective optimisation of the generating from its hydroelectricity power plants equipped with a reservoir.”
Mr. Kurtul continued his statement as follows, “The discount in the natural gas price at the beginning of October was a positive development for the industry. The new incentive mechanism regarding the supply of electricity energy from domestic coal power plants makes a positive contribution to these types of investments, which are important for strengthening the energy supply safety of Turkey and decreasing the current account deficit. The steps which have been taken for the sake of a more competitive electricity market up to the present day are quite valuable. At this point, we need to continue to take these steps. Within this framework, the minimisation of the market abusive effects, operation of power plants controlled by the public based on market conditions, resetting of the free consumer limit in electricity, elimination of cross subventions and removal of regulated tariffs in retail for the sake of liberalisation, will ensure the development of a more efficient, liberal and competitive energy market.”
“OUR INDUSTRY COMPANIES CONTINUE TO BE A SOURCE OF PRIDE FOR TURKEY IN TERMS OF PRODUCTION AND INNOVATION.”
Referring to the business activities of the Industry Group of Sabancı Holding as well, Mr. Kurtul stated, “Our Industry Group carried our very successful activities in the first nine months of 2016 just like in the previous periods. Particularly our Kordsa Global company increased its EBITDA (earnings before interest, tax and depreciation) to 215 million TL with a 25% increase in comparison with the same period of the previous year. Its sales amounted to 1.403 billion TL with a 9% increase in comparison with the same period of the previous year.
Kordsa Global achieved new success by being deemed worthy of “The Third Prize for the Best R&D Centre” among all industries and “The Best R&D Centre Award” in the textile industry thanks to its R&D studies and value added inventions within the scope of the “R&D Centres of Private Industries Summit” organised by the Ministry of Science, Industry and Technology.
Put into service in the past few months, the Composite Technologies Centre of Excellence, where Kordsa Global and the Sabancı University will get together under the same roof is the leading example of university-industry cooperation in Turkey and an important example of the same in the world. This centre, where lecturers and students of the Sabancı University are studying besides R&D employees, will make a great contribution to our growth strategy with a focus on innovation in the Sabancı Group. This centre will become the R&D and production centre for composite materials that are 10 times lighter and 3 times stronger than metal and believed to be an important value for the future of our country.
I sincerely celebrate all Kordsa Global employees and valuable members of the Sabancı University who have played a role in this proud achievement and worked devotedly. As Sabancı of Turkey, we will continue to create value for our country, strengthen our competitive position in the market and achieve a breakthrough with the help of our employees.
Our Brisa company protected its leadership in the market during the first nine months of 2016 and achieved 1.3 billion TL turnover. Furthermore, Brisa increased its gross profit to 378 million TL in the same period. Increasing its international competitive power particularly with our Lassa brand, Brisa achieved a growth greater than the European tyre market and managed a 5.2% increase in its sale incomes thanks to its globally successful activities in 70 countries.
Today, one out of every three tyres sold in Turkey is of the Brisa brand. With our second factory in Aksaray whose construction is ongoing with 300 million USD investment, we aim at increasing our tyre production capacity at the rate of 30%, enhancing our leadership in Turkish industry further and maximising the exporter strength of Turkey in international markets. In numbers, the export of Lassa branded tyres increased at the rate of 9% whereas the export of Bridgestone branded tyres increased at the rate of 12%. As Brisa, we are maintaining our activities to add value to all our stakeholders through our innovative practices. We increased the capacity of our Tyre Hotel in order to provide conveniences to our customers in their shift to winter tyres from summer tyres, in this period when winter conditions have started to appear. We are doing our best in order for our company to maintain its investments and strengthen its leadership in the market under these challenging market conditions.
Temsa Otobüs doubled its export in the first 9 months in comparison with the same period of the previous year. Upon the introduction of our Temsa Maraton vehicle to the domestic market, our market share in the travel segment of the domestic bus market in the first nine months of 2016 increased to 37% while it was 26% in the first nine months of the previous year. Our market share in the domestic midi bus segment increased from 29% to 34% in comparison with the previous year. Now, it is possible to see our Temsa branded buses in 66 countries of the world. Temsa buses are preferred even in Silicon Valley. As Temsa Otobüs, we launched many new products in 2016. We manufactured the first 100% domestic electric bus of Turkey jointly with Aselsan. We are planning to launch this bus next month. It will be a first in its segment with its feature of being charged in 8 minutes and we will have proven the innovation strength of our Group once more. Additionally, we received the “2016 New Product Innovation” award within the scope of the “Intelligent Mobility” event organised in London thanks to our smart bus Avenue I BUS.”
“OUR CEMENT COMPANIES ARE PROTECTING THEIR LEADERSHIP POSITIONS IN THE INDUSTRY.”
Addressing the business activities of the cement companies of Sabancı Holding as well, Mr. Kurtul continued his speech as follows, “Today, Turkey is the fourth biggest cement producer in the world and the largest cement producer in Europe. The domestic increase in cement demand also continues in 2016. We protected our leadership in the industry with our cement companies Akçansa and Çimsa in this period as well. Afyon Çimento which will be opened in 2017, and put into operation with 165 million USD of investment, will be a breakthrough in the industry for Çimsa.
The turnover of our Akçansa company in the first nine months of the year was 1.09 billion TL and it increased its profit to 234 million TL with 8% growth in comparison with the same period of the previous year. It developed and used a special product that is resistant for over 100 years without any maintenance requirement, for the Yavuz Sultan Selim Bridge, which is the widest, longest and highest suspension bridge made of reinforced concrete.
Called 100+Beton with its high resistance against environmental factors, this special product won the first prize in The ACI Excellence in Concrete Construction Competition which is organised by the American Concrete Institute on a yearly basis and awards the most innovative projects in the concrete world.
“WE AIM AT PROVIDING OUR CUSTOMERS WITH THE BEST SERVICE HEREINAFTER JUST LIKE WE HAVE DONE UP TO THE PRESENT DAY.”
Mentioning the performance of the retail companies, Mr. Zafer Kurtul, the CEO of Sabancı Holding, also stated, “The retail industry is one of the most important business lines of our Group. We are continuing to provide service with our CarrefourSA and Teknosa brands that are two important players in this industry.
CarrefourSA increased its sales at the rate of 23% in the first nine months of 2016 in comparison with the same period of the previous year. Having had a particular place for more than 20 years under the cooperation of Sabancı and Carrefour, our CarrefourSA brand is, and will be, our most important affiliate in this industry. Our goal is to make CarrefourSA the best and the favourite company of the industry with the provision of the best services, just as we have done up to the present day.
Besides the steps taken for making our store locations, product portfolio and staff more efficient with our TeknoSa brand, the leader of technology retailing in Turkey, we have started to harvest the fruits of our multiple channel strategy.”
“THE NUMBER OF OUR PARTICIPANTS IN INDIVIDUAL PENSIONS EXCEEDED 860,000.”
Pointing out the activities of Sabancı Holding in the insurance industry, Mr. Kurtul reported that AvivaSA was the leader of the individual pension and life insurances industry and that the company reached 11.2 billion TL in total in the total net asset value of funds for the Individual Pension System, including the state contribution, and the number of participants exceeded 860,000 according to the current data provided by the Pension Monitoring Centre.
Stating that they targeted to provide the best service in the industry through Aksigorta, based on its 56 years of experience, Mr. Kurtul added, “We produced 1.377 billion TL premiums with Aksigorta in the first nine months of 2016 and achieved 73.4 million TL technical profit. We ensured 12 percent growth in premium production in comparison with the same period of the previous year.”
“WE ARE CONTINUING TO WORK AND PRODUCE FOR OUR COUNTRY.”
As the Sabancı Group, we are a big family together with our employees. We have always been aware of our responsibility towards our country and environment. Our Sabancı Foundation has been continuing to work with all its strength for the sake of a better life for women, young and disabled individuals in Turkey for 42 years. We look at the future more confidently thanks to our permanent works all over our country, our reward programmes and the over 42,000 scholarships we have provided so far.
As Sabancı of Turkey, we will continue to work, produce and create value for our country and stakeholders with the help of our foreign partners and employees just as we have done up to the present day. Accordingly, we thank all our shareholders, customers and employees who contributed to our successful performance in the first nine months of 2016.”