The Message of Executive Chairman


BELIEVING THAT TURKEY’S ECONOMY WILL BECOME A NEW “SUCCESS STORY” WITH THE NEW ECONOMIC PLAN (NEP), İHLAS HOLDING WILL CONTINUE TO PURSUE ITS GROWTH TARGETS WITH DETERMINATION.

Dear Stakeholders, 2018 has been a period of significant changes in terms of all market players in the global and domestic economy. The most prominent developments hindering the globalization process were the trade wars between the USA and China and the failure of the British Parliament to approve the Brexit process, of which possible consequences have been long discussed in the European Union. Besides, the meeting of the World Economic Forum under the theme of Globalization 4.0: Shaping a New Global Architecture in the Age of the Fourth Industrial Revolution, within the scope of which the players shaping the world economy came together in Davos, Switzerland, has shown that there is a search for a direction in the light of new technologies in terms of the globalization process, which has significantly increased the volume of international trade.

GLOBAL ECONOMY HAS GROWN MAINTAINING A HORIZONTAL TREND…

According to IMF indicators, the global economy showed a performance close to the previous year, growing by 3.6% as of year-end 2018. The IMF predicts that the global economy will maintain its horizontal growth trend in the upcoming period due to the increase in geopolitical risks and the possible formation of new trade blocs. On the other hand, the expectation that the Central Bank of the United States (FED) will loosen its monetary tightening policy, which has been in effect since 2015 causing liquidity shortages and interest rate hikes in international markets, is seen as the main development that will stimulate international markets.

A NEW GROWTH MODEL FOR TURKEY: NEW ECONOMIC PLAN (NEP) 

Having started the first quarter of 2018 with a strong growth performance, the Turkish economy faced some problems such as the depreciation of TRY against foreign currencies during August, the deterioration in product and service pricing and an increase in consumer inflation. In the face of these developments, which have shaken the long-standing environment of confidence in the Turkish economy, the Government has retained confidence in the markets by announcing the New Economic Program (NEP). Targeting a balanced growth model based on the reduction of the current deficit and the fight against inflation, the NEP has gained the confidence of market players within a short period of time and achieved a balance in the real economy. In line with our government’s macro-economic objectives, the Central Bank of the Republic of Turkey (CBRT) increased interest rates. However, the depreciation of TRY against foreign currencies slowed down significantly. In line with our government’s goal of fighting inflation and reducing the current account deficit, the Turkish economy displayed a balanced performance and grew by 2.6% in 2018.

OUR PRIMARY TARGET IS INCREASING EXPORTS AND NATIONAL SAVINGS…

The recession in the construction sector, one of the key sectors that shape the growth of Turkey’s economy, rendered the NEP objective of increasing the exports with the added value-oriented products a priority. Within this framework, I would like to state with pride and happiness that İhlas Ev Aletleri, which exports to 63 countries throughout the world, will continue its strong support to the Turkish economy in line with the NEP objectives. Despite emerging risks in the global economy in recent years, Turkey has successfully completed projects of great importance for our sustainable development thanks to its economy built on strong foundations. In this respect, I wish that the opening of Istanbul Airport, which is expected to accelerate the rise of our country in the global aviation sector, will be beneficial for our country.

OUR EXPERIENCE GUIDES US…                                                          

Again, in 2018 operating period, which has been a challenging year in every aspect; İhlas Holding, one of the well-established private sector firms of Turkey, continued to add value to the Turkish economy in its fields of activity. Operating in various fields ranging from construction to marketing, from media to health and education, as of year-end 2018, the Holding’s total assets amounted to TRY 2.48 billion, while its shareholders’ equity stood at TRY 814 million. Our Holding is operating with an approach focused on the “benefit of humanity” since its establishment. With this approach, we managed to add value to our shareholders’ savings by effectively managing risks and opportunities with our experienced human resources consisting of 2,589 employees as of year-end 2018. Constituting one of the best examples of the hard work and determination of Turkish people with its successes it achieved throughout the years, our Holding has continued its unconditional support to the Turkish economy in every field in 2018, at a time when being “domestic” and “national” gained more importance.

WE KEEP EXPANDING IN THE CONSTRUCTION SECTOR WITH BİZİMEVLER HOUSING PROJECT PHASE 8.  

Considering construction as one of the fundamental development areas, İhlas Holding started the preliminary sales and construction processes of the 8th phase of Bizimevler Housing Project in 2018. In this way, the Holding demonstrated its determination to grow in this area. We are certain that the Bizim Evler Housing Project Phase 8 in Istanbul/Avcılar, Ispartakule comprising the construction of a total of 278 independent sections including 247 residential and 31 commercial units will reach high sales figures in a short period of time and contribute significantly to our consolidated turnover providing us motivation to develop more projects with a larger scale in the construction sector in the long term.

İHLAS BRANDED HOUSEHOLD APPLIANCES ARE ALL AROUND THE WORLD

The export star of İhlas Holding, İhlas Home Appliances increased the number of its export countries from 57 to 63 in 2018, successfully representing Turkey all around the world. Focusing solely on development, İhlas Home Appliances continued its product development efforts through its TÜBİTAK-approved R&D Center and reinforced our strong vision and competence in the field of innovation in the eyes of our stakeholders.

THE RIGHT ADDRESS FOR TRUST AND DEVELOPMENT IN THE MEDIA SECTOR… 

In 2018 operating period, İhlas Holding was the right address for trust and corporate development in the media sector where it has a deep-rooted experience and expertise. Increasing its ratings by 60% compared to the previous year, TGRT, the address for fast and accurate television journalism, became the TV channel which increased its ratings the most. Meanwhile, Türkiye Newspaper continued to increase its circulation steadily without being affected by the problems in paper supply within the sector thanks to its strong distribution network and printing infrastructure. İhlas News Agency (İHA), which is the leader in its sector by far, revamped its corporate identity in 2018 and started to use a new logo combining the excitement of journalism with its 25 years of experience. Thanks to the dynamism provided by the new logo, İHA will continue to be among the most important sources of news in Turkey and in the world in the coming period.

A TOUCH OF İHLAS IN EDUCATION AND HEALTH

With its corporate social responsibility approach, İhlas Holding continued to achieve significant success in the field of education and health in 2018. Türkiye Newspaper Hospital, which started its operations 28 years ago with the slogan “A Hospital Like Home,” increased its total bed capacity to 125 with the introduction of the additional building built in accordance with the smart building approach. Equipped with new health technologies for treatment processes, our additional building reinforced our hospital’s strong reputation in the health sector. Meanwhile, a student of the İhlas Educational Institutions made us proud by ranking first in the Higher Education Institutions Exam (YKS) in 2018. In addition, two students ranked 12th and 50th in the same exam and our school managed to list a total of 9 students in the first 100 successful students.

WE WILL CONTINUE TO GROW WITH OUR “FOR THE BENEFIT OF HUMANITY” APPROACH…

Representing İhlas Holding, I would like to thank all of our stakeholders for their unconditional support in our activities during 2018, which we carried out on the basis of “For the Benefit of Humanity” approach. In the coming period, as one of Turkey’s deep-rooted holdings, we will continue to operate with social responsibility in line with our corporate identity respecting the national and moral values.

Respectfully Yours,

AHMET MÜCAHİD ÖREN
Executive Chairman