Message from the Chairman of the Executive Board

Distinguished Shareholders, Esteemed Business Partners, Dear Employees,

Globalization increases trade opportunities between countries, removes borders, encourages social and cultural sharing, and, as a result, improves our world. The citizens of the world are brought together by the constantly upgraded means of transportation and communication, the widespread use of the internet, and the increasing power of social media along with conventional media. This solidarity brings about both economic and cultural development; however, it also causes the negative effects of any crisis to be felt all over the world.

We at the Kibar Group have adopted the goal of carrying our society and our country forward with the help of our unity and solidarity, by following recent developments, and abiding by our corporate values during this transition period. With over 7,500 employees and 22 companies in sectors such as the metal, automotive, packaging, construction materials, real estate, logistics and energy sector, our group continues to make entrepreneurial, modern, and innovative investments in order to serve this goal.

During this period, our companies that have strong foreign partnerships are working towards making their current operations more efficient and diverse by taking advantage of their global experience and the strength of their operations in Turkey. Our other companies, on the other hand, are actively keeping track of potential collaboration and purchasing opportunities in their sectors. As an integral part of our group’s progress, “innovation” will keep on shaping our future by breaking new grounds.

In the last few years, it’s been predicted that new global parameters have been generated, and that three main factors will bring about new economic and political developments in international relations: how relations between the USA and the EU will develop, the EU’s internal attitude, and the direction in which the relationship between the U.S. and Russia will move. In this context, the topic of significance importance for Turkey is how to position itself in this environment. As we all know very well, the problems that Turkey has been facing in the last few years do not only affect only the country itself, but also the world and the region’s future. We need a new foreign policy discourse to be developed by Turkey and its allies.

As for the developments in the global economy, we can say that they look positive. In the IMF’s report titled “World Economic Outlook Update,” it states that the global economy, which grew by 3.1 percent last year, will gain momentum in 2017 and 2018 thanks to developing countries. On the other hand, it also states that making predictions will be more difficult due to uncertainty regarding the policies of the new US administration and its global impact. Turkey’s economy remains strong despite all challenges. Especially the 5% growth rate in the first quarter of 2017 signals a hopeful future for our economy.

According to the reports of international research companies, it is estimated that world automotive production will reach about 100 million in 2018 with an increase of 1.3 percent compared to 2017. I foresee that export figures in the Turkish Automotive sector in 2018 will be at the same level as or slightly higher than last year.

Another important industry in Turkey is the iron and steel industry. Even though industries with high metal input, such as the automotive industry, have a growth tendency that results in development, domestic manufacturers prefer imported intermediate goods because of the high quality concern regarding flat products in the iron and steel industry. On the other hand, the foreign sales of the industry are under high pressure because the U.S., one of Turkey’s important markets, has increased taxes on importing steel goods from Turkey. Many protective policies are being developed all around the world. Turkey also needs to take a step forward regarding this issue. With the help of protective policies, Turkey will be able to eradicate the idle capacity problem that it is facing particularly in the iron and steel industry. In the face of these development and transformation processes that are taking place both in Turkey and the global arena, we at the Kibar Group cherish the dynamic characteristics of corporate management that increase the quality of communication, provide a more efficient method of risk management, and inspire reliability and prestige regarding the capital markets and branding. In this regard, we continue to rapidly develop with a sustainable, responsible, reliable, transparent, and fair concept of management, which is the most significant factor in corporate governance.

The Kibar Group has always been among the prominent and leading institutions in Turkey. Our main objective is to use this position for the benefit of our country while trying to achieve our goals with determination and perseverance. On this journey, we will continue generating added value for our customers, our employees, the sectors that we work in, our society, and the environment.

We have been carrying out various social responsibility projects and activities for the welfare of society and a sustainable future. We continue to work towards creating opportunities that are more environmentally-friendly, more efficient, and more effective.

Once again, we’d like to thank our customers, partners, executives, employees, and all institutions that have supported us and made our group’s success possible through their hard work and contributions.

With my kindest regards,

Ali Kibar