Message From Chairman

We observed that macro uncertainties that started in 2018 and caused global turbulence were partially offset towards the end of last year. The fact that the USA and China reached an agreement in the trade wars and the UK and the European Union in the Brexit process in the last months of 2019 and that central banks pursued loose monetary policies prevented a deeper global crisis. As a result, we started 2020 with a relatively optimistic outlook.

Despite this outlook, it is difficult to talk about a fundamental improvement in key issues. For example, while the growth rate of the euro zone which is one of Turkey’s critical trading partners fell to 1.2%; China’s recording of the lowest growth over the past 30 years raises questions of global stability. On the other hand, we see that the volume of international trade in 2019 achieved the slowest growth in the last 5 years and the total value of cross-border purchases and mergers diminished by 25% compared to the previous year, again marking the lowest level in the last 5 years. This shows that companies are turning to their regions in the global uncertainty and protectionism environment. When the COVID-19 outbreak which began to show its symptoms in the last days of the year but with its impact still unpredictable, is added to all these factors cited, we see that it is beneficial to act more cautiously than ever.

Our country, on the other hand, entered 2019 under difficult conditions and completed the year with a gradual recovery. The relatively quiet course of volatility in exchange rates, along with falling interest rates and inflation, were positive signs for the economy. Thus, although the Turkish economy narrowed 2.3% and 1.6%, respectively, in the first and second quarters of 2019, it achieved a growth of 0.9% for the whole of 2019. The course of our bilateral relations with the US and Russia, which have become more delicate in recent years and other indicators such as private sector investments and consumer confidence indices, continue to be of significance.

Entering 2020, the upward trend in the manufacturing PMI index, which is one of the leading indicators and the growth estimates rising to the 3% -5% band, strengthened our expectations for a cautious but optimistic year for our country, just as for the world. On the other hand, we believe that the realization of structural reforms and sustainable development models are critical in a world where global risks such as recession and epidemics are becoming almost a permanent occurrence. Especially economic / political predictability, a strong legal system and healthy financial markets seem to be the factors that will raise our country’s resistance to global crises and accelerate private sector investments and consumer confidence.

At Akkök Group, we continued our growth in 2019 and raised our combined turnover to TL 15 billion. This year, our foreign sales reached TL 2.7 billion and contributed positively to growth. The combined net profit of our Group expanded significantly compared to 2018 reaching TL 540 million.

We act in line with our goal of creating value for both our country and our stakeholders in all sectors we operate, especially in chemicals, energy and real estate, and we expend tremendous efforts in these areas. As we progress towards this goal, I would like to thank all our business partners and employees for their contribution.

Sincerely,

Raif Ali Dinçkök

Chairman