The results of Sabancı Holding in the first half were announced
THE CONSOLIDATED SALES OF SABANCI HOLDING AMOUNTED TO 19.2 BILLON TL WITH AN 11% INCREASE IN THE FIRST HALF OF 2017 IN COMPARISON WITH THE SAME PERIOD OF THE PREVIOUS YEAR.
The consolidated sales of Sabancı Holding amounted to 19.2 billion TL with an 11% increase in the first six months of 2017 in comparison with the same period of the previous year. It increased its operational profitability in the first six months to 4.3 billion TL with a 21% increase. The total assets of Sabancı Holding, reached 326.582 billion TL and its total consolidated parent company equity reached 24.564 billion 564 in the first half of 2017.
Mr. Mehmet Göçmen, the CEO of Sabancı Holding, asserted in his statement in this respect, “As Sabancı of Turkey, we continue to grow every passing day, based on the strength, experience and culture resulting from our history of more than 90 years. With the contribution of our strong human resources, we sustain innovation, which is in our DNA and our studies in the field of R&D in a more dynamic, effective and competitive structure. We will create sustainable values for our stakeholders through innovative products and services with a high added value, without compromising on sustainability and social responsibility understanding, along with the energy originating from the transformation we are undergoing, and our human resources, our greatest power.”
“WE PROVIDED OUR ECONOMY WITH 235 BILLION TL CREDIT SUPPORT THROUGH AKBANK.”
Explaining the banking activities of the Holding, Mr. Göçmen noted that the credits for the real economy improved in the first six months of 2017 and that the credits reached 235 billion TL with 7.4% growth, of which 190 billion TL was in cash. Addressing the success of the Bank in its digitalisation activities, Mr. Göçmen continued his speech as follows, “We increased the number of our customers using digital channels in Akbank to 3.6 million and the number of our active customers in mobile banking to 3.5 million. This year, we have also been the first Turkish bank to use Blockchain technology, one of the leading innovations in the digital area, in foreign money transfers.”
ENERJİSA INCREASED ITS INVESTMENTS BY 44% IN THE FIELD OF DISTRIBUTION WHERE IT PROVIDED SERVICES TO 20 MILLION PEOPLE
Specifying that Enerjisa kept creating value thanks to their activities focusing on efficiency and operational excellence. Enerjisa is the leading company in the Turkish electricity market that was growing, developing and intensifying and provided access to electricity for 1 person out of every 4 in Turkey. Mr. Mehmet Göçmen added, “Even though the first half of this year involved critical challenges within the framework of market conditions and various regulations in all business lines of generation, distribution and sale, we increased our sales at the rate of 16% and operating profits at the rate of 18% in Enerjisa, excluding one-time incomes and expenses. We increased our investments in our business line of distribution at the rate of 44%. We now provide services in a wide geographical area and enable access to electrical energy for 20 million people, and have invested 780 million TL in comparison with the same period of the previous year. With the contribution of our production units which have been commissioned in 2016 and the beginning of 2017, our total electricity generation is approximately 70% higher in the first half of this year in comparison with the same period of the previous year.”
“WE MUST MAKE EFFORTS FOR THE SAKE OF A MORE EFFICIENT, COMPETITIVE AND PREDICTABLE ENERGY MARKET.”
Asserting that the Turkish electricity industry had a position of one of the leading markets in the world, with its strong growth dynamics and potential to grow more effectively and competitively, Mr. Göçmen continued his speech as follows, “Energy strategies and regulations have a critical importance in the most effective utilisation of this potential. Very important progress has been made so far under the leadership of the Ministry of Energy and EMRA for the development of the free market. However, particularly the costs in the retail market and the regulated tariff balance have been very negative in the recent period. We must necessarily maintain the steps taken for such energy markets, whose freedom and predictability have been strengthened, and which effectively reflect the supply and demand equilibriums and costs, so that they function on the basis of competition, have sufficient depth, and encourage energy efficiency more. A new period has started in energy generation based on renewable resources thanks to the YEKA tender with its substantially successful results.”
“WE MADE A DIFFERENCE IN R&D AND INNOVATION THROUGH OUR INDUSTRIAL COMPANIES.”
Referring to the activities of the Industry Group of Sabancı Holding as well, Mr. Göçmen stated, “Our Industry Group carried out very successful activities in the first six months. Next year, we will celebrate the 30th anniversary of the Sabancı-Bridgestone partnership with our Brisa brand. We have concurrently continued our investments in our second factory in Aksaray and put the R&D Centre into operation, which has been certified in our İzmit factory. We exported products to the global market of the value of 1.5 billion TL in the last 5 years through Brisa. With the help of the R&D Centre of Brisa, we will increase the domestic production rate which is 94% and accelerate our exports.”
“Through our Kordsa company, we offer value added and innovative strengthening technologies for the service of our customers in four continents from America to Asia Pacific, under the mission of “strengthening of life”. Being the technology leader of the tyre, composite and construction reinforcement market, our Kordsa company increased its operational profitability at the rate of 22% in comparison with the same period in the previous year. It increased too, its net profit to 112 million TL with an 11% increase. Today, we have R&D and innovation achievements and long-term customer relationships in the global market. We are currently working on lighter tyres and vehicles of the future in the R&D Centre of Kordsa, which has been selected to be among the first three R&D centres of Turkey. Additionally, Kordsa and Continental have carried out leading work in the industry under a significant cooperation. Kordsa has combined its comprehensive knowledge and specialty in tyre reinforcement technologies with Continental. In this way, they achieved a change in the formula, which has been used for 80 years in tyre cord baths.”
Mentioning the activities in Temsa, Mr. Göçmen reported that Temsa, which has been the leader of the Turkish bus market for the last three years, maintained its leadership with a share of 33 percent, according to the market results in the first half of 2017. Mr. Göçmen continued, “The market share of our Temsa company is at the level of 33%. It is very proud for our country to see the buses of Temsa on the roads of various countries around the world. Our foreign turnover target for the year 2017 is to exceed 170 million USD.”
“WE ARE THE LEADER IN TURKEY FOR CEMENT AND WE WILL GROW WITH NEW INVESTMENTS.”
Addressing the activities of the cement companies as well, Mr. Göçmen stated, “We also continued our leadership in the industry in this period with our cement companies Akçansa and Çimsa. We have been investing in innovation in the industry for more than 45 years and we are steering the trends of the construction industry. The importance we attach to innovation activities and our investments in this field lie behind our achievements. For the purpose of making the growth achieved in global markets sustainable, the main objective of our companies has always been to keep up with technological trends and be a part of innovative solutions.
We completed the relocation process of our factory in Afyonkarahisar and equipped it with modern technologies using a 165 million USD investment by our Çimsa company. We are modifying the 1st Production Line in the Eskişehir Factory of Çimsa so that it will produce both grey and white clinkers as a result of a 55 million USD investment. Following this investment, our Eskişehir Factory will reach 415,000 tons of white clinker production capacity per year. In this way, our annual white clinker production capacity will reach 1.6 million tons along with the existing production from our Mersin Factory and our global position in white cement will get stronger.”
“WE ARE ALL OVER TURKEY WITH OUR BRANDS IN THE RETAIL INDUSTRY.”
Mr. Göçmen reported, “As the Sabancı Group, we successfully continued the transformation, which was started in 2016, with CarrefourSA, our leading brand in food retailing, in the first half of 2017. We focused our attention on store optimisation activities and operational excellence studies in the first place, in accordance with the identified strategy. At the same time, we strengthened all our formats in accordance with their locations in terms of “differentiation”. Within this framework, we renewed our supply chain, procurement, logistics and store locations. Today, we are working with all our strength in order to provide the best service in food retailing with our 625 stores across Turkey.”
Pointing out that the first half of 2017 was generally depressed for the retail industry, Mr. Göçmen continued, “We achieved the targeted increase in store sales thanks to the mobility resulting from special days and our differentiated services, particularly in the second quarter with our Teknosa brand, the technology leader of Turkey. We keep intensifying in the multiple channel model we are pioneering. Our total turnover in the first half amounted to 1.531 billion TL. Our goal is to grow at a higher rate than the industry and keep creating a positive value in the second half of the year.”
“ABOUT 2,000 FIRMS PREFERRED AVIVASA IN AUTOMATIC PARTICIPATION.”
Also addressing the activities of the insurance companies, Mr. Göçmen specified that they achieved 28% growth in total net asset value of funds with AvivaSA in comparison with the same period of the previous year. Mr. Göçmen continued his speech as follows, “Our AvivaSA company maintains its leadership in the industry with 13.5 billion TL total net asset value of funds and a 19.3% market share according to the 30.06.2017 dated data. The number of participants at this time has reached 885,000. About 2,000 firms, including giant holdings of our company, preferred AvivaSA for the automatic participation system. We are planning to sustain our achievement in the Individual Pension System also in Automatic Participation.”
“Being one of the leading players of the non-life insurance industry, our Aksigorta company increased its premium production at the rate of 15% and displayed a remarkable performance despite only 7% growth of the industry in the first half of the year. The net profit of Aksigorta was doubled, and reached 74 million TL, in comparison with the same period of the previous year according to the financial statements prepared at the end of June on the basis of the International Financial Reporting Standards (UFRS). Our objective is to continue to create a well-balanced portfolio in the remaining period of 2017, achieve a greater growth than the industry, invest in digital transformation and innovation in line with our customer oriented service understanding and enhance our market value as a company whose profitability is sustainable, whose capital is strong and whose financials and balance sheets are quite transparent.”