< PreviousDEVELOPMENTS IN THE WORLD AND TURKISH ECONOMY Developments in Turkey's economy and the global economic landscape play a determining role in the performance of the industry.10 AUGUST 2021 The COVID-19 pandemic shaped the world economy in 2020. The main factor shaping the world economy in 2020 was the COVID-19 pandemic and the extraordinary conditions it entailed. The pandemic, which broke out in China and spread all over the world, created a shock contraction in the global economy in 2Q20. As the pandemic took a he - avy toll on human lives, efforts were made to combat the outbreak on multiple fronts. On the economic front of the fight against the epidemic, governments, central banks and international institutions stepped in. Governments provided large grants to a bro- ad spectrum of companies and employees, and central banks provided banks with liquidity funding to support increased government spending and help the private se- ctor. The support quickly took effect and the world eco- nomy started to recover in the second half of the year. In 2020, the pandemic reclaimed lost battleground around the globe with the second wave in the autumn. Economic and social activities continued under new rules and restri- ctions. The new rules implemented in economic and soci- al life were called the "new normal" in the world economy. The pandemic affected the industry and services differently. In 2020, the pandemic affected the industries in differing ways. The immediate impact was the sharp contraction faced by all industries in the second quarter of the year. In the following period, the trajectories of the industries started to diverge, and the services industry continued to shrink in 2H20. On the other hand, the industrial sector managed to get back on its growth track as of 3Q20. Supply chain security gained prominence in the new nor- mal that emerged with the pandemic conditions. Count- ries started to focus on domestic production and initiated a restructuring process for their supply chains. Industries and firms also prioritized production and procurement, with concerns about new pandemic waves. With this tendency, the industrial sector recovered in a short time and industrial production started to grow on an annual basis, especially in 4Q20. The support provided by governments and central banks also contributed to the early transition to growth. World commodity trade contracted by 7.4 percent in 2020. In 2020, world commodity trade followed a steep downward trajectory due to the adverse climate created by the COVID-19 pandemic. The pandemic caused a physi- cal halt in global trade, especially in 2Q20. Customs, logis- tics, port and transportation services were interrupted, and all traded commodities and goods suffered significant drops in price. As governments provided support and companies trans- formed their production and supply processes in an effort to adapt them to the new normal, world commodity tra- de started to recover in 2H20. Picking up momentum as supply concerns emerged, world commodity trade started to grow again in 4Q20. Nevertheless, world commodity trade still suffered a 5.3 percent YoY decline in quantity and a 7 percent YoY decline in value in 2020, dropping to USD 17 trillion. Source: IMF, World Economic Outlook, April 2021. GLOBAL ECONOMIC GROWTH RATES - 2020 (%) WorldDeveloped CountriesDeveloping Countries -3.3-4.7-2.2 The vaccine studies were what restored hope for the glo- bal economy, especially in the fourth quarter of 2020. Sin- ce many vaccines had been authorized for use towards the end of the year, the global economic forecast impro- ved as 2021 rolled in. The world economy suffered a 3.3 percent contraction in 2020 due to the pandemic, which is deemed to be the sharpest in the last decades. The economic contraction was felt in almost all regions and countries. Source: OECD, Interim Economic Outlook, March 2021. GLOBAL ECONOMY, QUARTERLY GROWTH RATES (%) 3.3 201820192020 3.3 3.2 3.0 2.8 2.5 2.22.12.2 -4.6 -9.7 -2.4 1Ç2Ç3Ç4Ç1Ç2Ç3Ç4Ç 1Ç2Ç3Ç 4Ç 3 6 0 -3 -6 -9 -12AUGUST 2021 11 Inflation and interest rates fell sharply. The pandemic that marked 2020 had a negative impact on commodity and goods prices throughout the year. Commodity and goods prices saw steep falls especially in the second quarter of the year, thus bringing inflation down. Consumer price inflation closed 2020 at 0.7 percent in developed countries and 5.1 percent in developing countries. Central banks took quick action to relax their monetary policies against the economic effects of the pandemic. The main instrument used to serve this end was bringing policy rates down near zero. Central banks, especially the Fed, maintained their policy of keeping interest rates at a minimum throughout the year, and accordingly, market interest rates declined. The 6-month LIBOR rate fell all the way down to 0.7 percent. This provided the governments with the opportunity to borrow and finance budget deficits with low interest rates and the companies with access to a broad spectrum of financing opportunities. Central banks took extraordinary measures. In 2020, the monetary policies of central banks were the key to combating the negative economic effects of the pan- demic. Central banks, which resorted to almost unlimited quantitative easing (QE) as of March 2020, reduced interest rates to near zero in the first stage, and then provided the liquidity needed by governments, banks and real markets with bond purchases and other instruments. While the US central bank Fed reduced the policy rate to 0.25 percent in March 2020, it increased its balance sheet to USD 8 trillion with QE throughout the year. The European Central Bank (ECB), which started 2020 with a QE program, also took extraordinary measures to expand it even further due to the pandemic. The balance sheet of ECB grew by nearly 50 percent from when the pandemic broke out until the end of the year. Central banks of all the other developed and developing countries followed suit and relaxed their monetary policies and had to increase their currency in circulation to remedy the economic repercussions of the pandemic. DEVELOPMENTS IN GLOBAL GOODS TRADE (%) Source: World Trade Organization, April 2021. 201820192020 Goods Trade ($ Billion)18,92018,35017,000 Goods Trade Growth (by value)10.0-3.5-7.4 Goods Trade Growth (by volume)3.0-0.1-5.3 The global industry dipped in 2020Q2. The global industrial sector had an optimistic outlook for 2020. The “phase one” trade deal amidst the U.S.-China trade war, which negatively affected 2019, and the Brexit decision to leave with an agreement restored optimism. However, at the beginning of 2020, the COVID-19 pande- mic started to affect the industry negatively, and in April, global industry indicators experienced sharp contractions and hit bottom. The global industrial sector started to recuperate as of June in multiple indicators. The support provided to the economies, the ‘new normal’ conditions and the produ- ction and procurements that the companies prioritized triggered a recovery process in the industry. The Purchasing Managers Index (PMI) data indicate that the global manufacturing industry managed to get on the positive side of growth as 3Q20. Despite the restrictive measures that came into effect due to a new and strong wave of the pandemic in the last months of the year, the industry maintained its growth trajectory in the last quar- ter as well. The global industry PMI data closed 2020 at 53.8 points. All other sub-indicators such as production, new orders and employment closed the year 2020 with growth. In particular, the production indicator, which rose to 54.9 points, became the driving force of growth in glo- bal industry. Source: JP Morgan, IHS Markit. Note: Figures above 50 indicate improvement in operating conditions, while figures below 50 indicate deterioration. GLOBAL MANUFACTURING PMI (PURCHASING MANAGERS' INDEX) AND SUB-INDICES December 2019 April 2020 June 2020 September 2020 December 2020 Global PMI50.139.847.852.453.8 Output50.432.547.353.754.9 New Orders50.331.546.853.854.4 New Export Orders49.227.143.551.751.1 Employment49.641.546.049.450.112 AUGUST 2021 Industry grew in the US, the EU and China. Industry sectors in the U.S., the EU, China and Japan, whi- ch boast the largest shares in the global industry, also felt the effects of the COVID-19 pandemic. However, with the recovery process that started in the middle of the year, the industrial sectors of these countries were able to close the year in the growth zone. After falling to the lowest level of the last 11 years with 36.1 in April 2020, the Manufacturing PMI headline index in the U.S. was en route to recovery starting from the summer months. The recovery gained pace in 4Q20, and the Manufacturing PMI closed 2020 at 57.1, the highest level in more than six years. The Eurozone’s industry sector suffered the most, with the manufacturing PMI of the region dropping to 33.4 in April. However, the Eurozone industry also re-entered the growth zone in the autumn and the Manufacturing PMI reached 55.2 at year-end 2020, the highest in one-and-a- half years. The industry sector in China, which had the earliest en - counter with the pandemic, saw the negative effects peak in February and started to grow again as of 2Q20. The in- dustry in Japan, on the other hand, started to show some signs of recovery in 2H20, but closed the year unable to return to the growth territory. Global manufacturing industry production delivered varying performances in each quarter under the effects of the pandemic in 2020. As companies in China, where the pandemic broke out, had to suspend production in 1Q20, the global manufacturing industry production contracted by 6 percent. In the second quarter, when the pandemic became a global health crisis, the global Source: IHS Markit. Note: Quarterly and annual figures are period averages. MANUFACTURING PMI (PURCHASING MANAGERS' INDEX) PERIODUSAEU-EUROZONECHINAJAPAN 2015 53.752.248.751.4 2016 52.252.549.850.0 2017 53.657.450.952.9 2018 55.554.850.753.1 201951.847.450.549.3 2020 April36.133.449.441.9 2020 Q141.940.150.440.1 2020 Q2 52.452.453.046.7 2020 Q3 55.754.653.849.2 2020 Q4 57.155.253.048.0 manufacturing industry contracted by 11.1 percent. With the reopening process in the manufacturing industries in 3Q20, the annual contraction lost momentum and eased to 1 percent. In 3Q20, the global manufacturing industry returned to growth with 2.4 percent. Input, final goods and export prices rose in the second half. With the industrial production dipping in April, input and final goods prices also fell to their lowest levels in recent years. Input and final goods prices, which started to reco- ver with the “new normal” as of June, exceeded their 2019 year-end levels by the end of Q3. At the beginning of Q4, the demand for raw materials and inputs started to surge in the industrial sector to ensure production and supply security. As there were difficulties in accessing the products in question, shipping prices also went up. Accordingly, the input prices in the global industry increased significantly and this upward trend was reflected in the final goods prices. However, as of ye- ar-end, the increase in input prices was much higher than that of final goods. The export prices of global industrial goods declined due to the pandemic in early 2020 and hit bottom in April. As the summer rolled in, the demand for goods in world tra- de started to recover with normalization efforts. In parti- cular, the increase in demand for metals, ores, minerals, chemicals and agricultural-food products accelerated. With the increasing momentum in demand, the export prices of these products started to rise, and these price hikes were also reflected in the final goods. Thus, at the end of the year, the average export unit price index of go- ods traded increased worldwide. 201820192020 3 6 0 -3 -6 -9 -12 WORLD MANUFACTURING OUTPUT, GROWTH (%) Source: UNIDO, Quarterly Report on Manufacturing. 4.2 3.8 3.1 2.4 2.2 1.5 1.1 1.2 -6.0 -11.1 -1.0 2.4 1Q1Q 1Q 2Q2Q 2Q 3Q3Q 3Q 4Q4Q4QAUGUST 2021 13 The industrial sector grew by 2 percent in 2020. The pandemic in 2020 significantly affected industrial production as well. In Q2, industrial production contracted sharply due to the pandemic. In 2H20, industrial produc- tion started to recover, especially with the support provi- ded to the economy. On the other hand, foreign markets started to recuperate, and demand went up in 2H20. Ac- cordingly, industrial production reclaimed its growth tra- jectory in the second half of the year. The industrial sector achieved a growth of 2 percent on an annual basis. Manufacturing capacity utilization was down by 4 points in 2020. With the slowdown in industrial production in 2020, the average capacity utilization rate in the manufacturing in- dustry decreased by 4 points from 75.9 percent to 71.9 per- cent. In many sectors, this rate fell below 75 percent. The pandemic affected the capacity utilization rates in the su- b-sectors of the manufacturing industry in different ways. The annual average capacity utilization rate in the manu- facturing industry, which climbed to its 10-year-high with 78.5 percent in 2017 and decreased to 76.8 percent in 2018, continued to decline in 2019 and dropped to 75.9 percent. In 2020, the capacity utilization rate of the manufacturing industry went down by 4 points due to the pandemic. The capacity utilization rate saw its trough in Q2 and recovered in the second half of the year. Turkey’s economy grew by 1.8 percent in 2020. The pandemic that marked 2020 was a determining factor for economic growth. The economy suffered contraction in Q2. As the economic support efforts and the recovery in foreign demand started to take effect, the Q2 economic outlook pointed back to growth. Accordingly, growth was realized as 1.8 percent on an annual basis. Turkey was one of the few countries to record growth in 2020. In 2020, household spending grew by 3.2 percent, public spending by 2.3 percent and gross fixed capital invest- ments by 6.5 percent. Exports of goods and services cont- racted by 15.4 percent, thus limiting economic growth. Im- ports of goods and services, on the other hand, grew by 7.4 percent. Investments and consumption spending were what drove growth in 2020. 80 78 76 74 72 70 CAPACITY UTILIZATION RATES IN MANUFACTURING (%) Source: The Central Bank of the Republic of Turkey. 20142015201620172018201920202013 76.7 75.0 76.8 77.4 78.5 76.8 75.9 71.9 Industrial employment declined in 2020. In 2020, the average annual employment in the industry decreased by 63,000 people to 5.5 million people. The sha- re of industrial employment in total employment climbed to 20.5 percent. The pandemic in 2020 significantly affec- ted working life as well. For most of the year, termination of employment contracts was banned. In addition, support was provided towards protecting employment, particular- ly the short-term working allowance. The industrial sector was back on its growth track in 2H20, closing the pandemic year with the least loss of employment. ECONOMIC AND INDUSTRIAL GROWTH (%) Source: TurkStat. 4 3 2 1 0 -1 Industrial GrowthGDP Growth 201820192020 3.0 0.9 1.8 1.3 -1.0 2.014 AUGUST 2021 Industrial exports contracted. TThe Turkish Statistical Institute (TURKSTAT) switched to the General Trade System (GTS) in calculating Turkey’s foreign trade statistics. According to GTS, goods that are moved abroad from free zones, customs warehouses and the free circulation area are considered as exports. Due to the scope in question, the foreign trade data cal- culated in line with GTS are higher than those collected according to the Special Trade System (STS) used in pre- vious years. In this context, data pertaining to Turkey's in- dustrial sector exports were also updated to include data calculated according to GTS. In 2020, Turkey’s industrial exports dropped by 6.6 per- cent to USD 163.5 billion, down from USD 175.1 billion. Exports, which recorded a relatively strong increase in 2017 and 2018 and had a slower pace of growth in 2019, reversed its course in 2020. Turkey's overall export figu- res shrank down by 6.2 percent in 2020. Manufacturing industry’s share in national income reached 18.8 percent. İIn 2020, the share of the manufacturing industry in GDP at current prices was 18.8 percent, up from 18.3 in 2019. The fact that the share of the manufacturing industry in national income had dropped as low as 15 percent before Turkey becomes a fully industrialized country was seen as a cause of concern. The share, which was 22.3 percent in 1998, declined to its lowest level with 15.1 percent in 2010. The ratio, which remained flat between 2011 and 2016, increased signifi- cantly in 2017 and 2018. The conditions that emerged with the pandemic were the main reason for the decline in industrial exports in 2020. There was a sharp contraction in global trade in Q2, du- ring which a significant part of markets remained closed for a long time. Global industry trade started to recover from Q3 onwards. All markets, without exception, experienced contractions in 2020. The European Union, Turkey's most important industrial goods export market, was one of the that ex- perienced the most severe contraction. The U.S. market also had its fair share of this trend of drastic contractions. Although world industrial goods exports grew in Q4, this could not compensate the shrinkage in the overall year. INDUSTRIAL EXPORTS (ACCORDING TO GTS, $ BILLION) Source: TurkStat. 2018201920202017 171.2 175.1 158.8 163.6 SHARE OF MANUFACTURING IN GDP (%) Source: TurkStat. 2014 16.8 17.6 2017 15.8 2012 16.7 2015 19.0 2018 2013 16.3 2016 16.6 2019 18.3 2020 18.8 CHANGES IN INDUSTRIAL EMPLOYMENT Source: TurkStat. Industrial Employment (Share, %) Industrial Employment (Thousand Persons) 21.5 21.0 20.5 20.0 19.5 19.0 18.5 6,000 5,000 4,000 3,000 2,000 1,000 0 20142015201620172018201920202013201220112010 5,2975,3835,6755,5615,4985,3315,3155,1014,9034,8424,615 20.8 20.5 19.1 19.7 19.8 20.5 20.0 19.5 21.1 20.7 20.5AUGUST 2021 15 Manufacturing investment incentives rose by 80.7 percent. Manufacturing investment incentives in 2020 amounted to TL 153.2 billion. Investment amount increased by 80.7 percent YoY. There were four drivers behind the high rate of increase in investments in the pandemic year 2020. Firstly, long-term and low-interest investment loans were provided with favorable plans in 2020. Secondly, investments started to pick up momentum thanks to programs such as the technology-oriented industry move. Thirdly, investments focused on products that were highly demanded and needed due to the pandemic, especially medical products. Finally, in order to adapt to the pandemic conditions and what has been coined as ‘new normal’, enterprises made several replacement and improvement investments, mainly in digitalization. Of the incentivized manufacturing industry investments, 49.6 percent was new, 42.7 percent was for capacity expansion and 7.7 percent was other investments. Based on the amount of investments, 40 percent of the investments are in the first zone, 23.6 percent in the second zone and 19.4 percent in the third zone. 78.5 percent of the investments benefited from regional support, 20.8 percent from general incentives and 0.6 percent from strategic investment incentives. FOREIGN DIRECT INVESTMENTS INTO MANUFACTURING ($ MILLION) 4,800 4,200 3,600 3,000 2,400 1,800 1,200 600 0 Source: Ministry of Industry and Technology. 2014201520162017201820192020201320122011 3,599 2,843 2,742 4,237 2,241 1,934 1,930 1,089 1,202 4,519 Foreign capital investments in the manufacturing industry, which were realized as around USD 1.9 billion in 2018 and 2019, went down to USD 1.1 billion in 2020. The global pandemic led to a sharp contraction in foreign direct investments around the world. Accordingly, total investments into Turkey and into the manufacturing industry fell significantly. Turkey's economic and financial fragility also limited foreign capital investments. The support that has been provided in recent years to increase the share of the manufacturing industry in the economy is yet to show its full effect. As a matter of fact, the share decreased again in 2019. In 2020, the share of the manufacturing industry increased by 0.5 points. However, it remained below the 19 percent mark achieved in 2018. For the manufacturing industry's share in GDP to inc- rease steadily, the industry must achieve a high, steady growth rate. Manufacturing industry performance was also limited in 2020 due to the pandemic. Foreign direct capital investments in the ma- nufacturing industry totaled USD 1.09 billion. In a setting where new investments are limited in numbers, direct foreign capital investments into the manufacturing industry are largely in the form of acquisitions. Therefore, the main determining factor for foreign capital investments is the conditions for acquisition. INVESTMENT INCENTIVE CERTIFICATES FOR THE MANUFACTURING INDUSTRY (TL MILLION) Source: Ministry of Industry and Technology. 2016 2017 2018 2019 2020 30.3 56.9 97.8 84.8 153.216 AUGUST 2021 Sharp depreciation of the Turkish lira continued to affect the financial structure of industrial firms. Foreign exchange and interest rates are important vari- ables that affect the financial structures and profitability of industrial enterprises. The Turkish lira has seen a se- ries of severe depreciations, especially in recent years, a trend that continued in 2020. With macroeconomic im- balances, the decline in foreign exchange reserves and increasing financial fragility, the Turkish lira depreciated by 23.5 percent against the US dollar in 2020 and closed the year at 7.35. USD/TL EXCHANGE RATE (YEAR-END) Source: Central Bank of the Republic of Turkey. 2015 2.91 2017 3.82 2016 3.54 2018 5.27 2019 5.95 2020 7.35 2014 2.32 2013 2.14 TL COMMERCIAL LOAN INTEREST RATES (YEAR-END, %) Source: Central Bank of the Republic of Turkey. 27.24 2018 12.62 2019 9.71 2020 Haziran 12.11 2020 Mart 14.91 2020 Eylül 19.7 2020 Aralık Source: Banking Regulation and Supervision Agency. DOMESTIC BANK LOANS USED BY THE INDUSTRIAL SECTOR (TL BILLION) 2019 Year-end 2020 Year-end Change (%) Manufacturing556.5755.435.8 Energy, Water, Natural Gas207.3257.624.3 Mining & Quarrying33.446.137.9 Total797.21,059.232.9 The high rate of depreciation of the Turkish lira also affected industrial enterprises. The annual average indicates that the Turkish lira depreciated by 23.9 percent against the US dol- lar. The annual average dollar rate was TL 7.04. Financial conditions showed improvement for most of the year. The year 2020 presented unique financing conditions. In 2020, the pandemic posed significant financial challenges to industries and enterprises. For this reason, support loan programs targeting industries and enterprises were launched. These programs offered medium- and long-term loans, low interest rates, credit guarantee fund sureties, and a certain grace period. Thanks to these loan programs, the industrial sector, like all other sectors, had access to more favorable financing conditions. The size of domestic loans used by the industrial sector increased by 32.9 percent to an excess of TL 1 trillion. Interest rates remained low in 1H20. Financial debts constitute a key resource for the ISO 500. As such, interest rates of TL loans are a key determinant of financing costs and profitability. 2020 was a distinct year in terms of interest rates. First, the Central Bank of the Republic of Turkey (CBRT) welcomed the new year with a negative interest rate policy. Accordingly, interest rates remained low in Q1. Annual loan interest rates were kept below 10 percent for the loan support packages made ava- ilable in the fight against the pandemic, which started to take effect after Q1. The interest rates remained low until the end of August. As economic fragility increased towards the autumn, CBRT announced a policy rate hike in September, leading com- mercial loan interest rates to exceed 15 percent. In Q4, the management of both the Ministry of Treasury and Finance and CBRT saw changes, with CBRT’s new management tightening the monetary policy and increasing the policy rate to 17 percent. The industrial sector, which was able to use loans with negative real interest rates in the first eight months of 2020, faced positive real interest rates again in the last four months.AUGUST 2021 17 With a history of over 50 years, the Turkey's Top 500 In- dustrial Enterprises (ISO 500) survey continues to be a major reference point and a wealth of information on the development of Turkish industry. Focused exclusively on industrial enterprises, the ISO 500 survey provides a ranking of companies based on their production-based (net) sales figures. As such, the level of industrial activity serves as the only criterion for enterpri- se scale. These industrial activities covered in the report include the sectors of mining and quarrying, manufactu- ring, and electricity, gas, steam and air conditioning supply sectors. The main objective of the ISO 500 survey is to determine the largest enterprises, with cumulative balance sheets and income statements of the companies ranked allowing for comparative analysis and evaluation. Analyses and assessments are performed in terms of basic economic indicators, financial ratios, profitability, value-added and efficiency as well as technological activities. THE ISO 500 RESULTS REFLECT THE EFFECTS OF THE GLOBAL COVID-19 PANDEMIC ON THE INDUSTRY. The Istanbul Chamber of Industry has been compiling and presenting to the public its survey of Turkey’s largest industrial enterprises for the last 53 years. Originally covering the top 100 enterprises, the scope of the survey was subsequently expanded to 300 in later years, and to 500 from 1980 onwards.18 AUGUST 2021 Prepared with the same level of attention to detail as it has always been in more than 50 years, the 2020 edition of the “Turkey’s Top 500 Industrial Enterprises” is shared with the public in May, as in the previous years – except for the last year. The ISO 500 results were published in mid-July, with the Corporate Tax return submission deadline being exten- ded due to the COVID-19 outbreak last year. This year, whi- le the ISO 500 survey was prepared under full lockdowns and restrictions, it has been announced at an earlier date than in the years before the pandemic. In 2020, the number of new entries to the ISO 500 survey was 50. 39 of these were on the ISO Second Top 500 list of last year, while the remaining 11 made it directly to the list from outside the ISO 1000. 450 companies were listed in the ISO 500 in both 2019 and 2020. The 2020 results of the ISO 500 survey offer striking data and detailed analyses that reveal how economic fragilities, the COVID-19 pandemic and the support provided to the economy and sectors to remedy the negative conditions caused by the pandemic translated to the industry. TOP THREE TÜPRAŞ ranked #1 in production-based sales once again. According to the ISO 500 Industrial Enterprises 2020 survey, the largest enterprise according to production- based sales was "TÜPRAŞ - Türkiye Petrol Rafinerileri A.Ş.". TÜPRAŞ maintained its leadership in 2020 as well, a position it has been holding for many years. The gap between TÜPRAŞ and the runners-up in the production- based sales ranking narrowed, unlike in previous years. In 2020, TÜPRAŞ accounted for 5 percent of the total production-based sales of the ISO 500. This rate was 9 percent in 2018 and 8.6 percent in 2019. In 2020, “Ford Otomotiv Sanayi A.Ş.” came second for its production-based sales figures, maintaining its position from last year. “Oyak-Renault Otomobil Fabrikaları A.Ş.” replaced last year’s third largest enterprise and rose one place in 2020. In 2020, “Toyota Otomotiv Sanayi Türkiye A.Ş.” dropped one place to rank fourth. The fifth largest enterprise preferred to remain anonymous. “Star Rafineri A.Ş.”, which had commenced its production activities in 2019 and participated in the survey for the first time, dropped one place in 2020 and ranked sixth. Down one place, “Arçelik A.Ş.” ranked seventh in 2020. The ranking of the remaining three enterprises in the top 10 also changed. Ranking seventh in 2019, “TOFAŞ Türk Otomobil Fabrikası A.Ş.” fell to eighth place in 2020. “Ereğli Demir ve Çelik Fabrikaları T.A.Ş.” rose to ninth place in 2020 after ranking 10th in 2019. “İskenderun Demir ve Çelik A.Ş.” dropped to the 10th place in 2020 after ranking eighth in 2019. As can be seen, while the enterprises that were among the top 10 in 2020 did not change YoY, there were differences in their ranking. There were no public enterprises among the top 10 in 2020. In 2017, the private sector grabbed all the top 10 places for the first time, a trend that carried over into the years that followed. The leader in the value-added generated changed in 2020. The ISO 500 also ranks companies by value-added generated. The survey uses producers' prices to calculate gross value-added. The enterprise that generated the highest value-added at producers’ prices changed in 2020, however, the top- ranking enterprise preferred to remain anonymous. “TÜPRAŞ-Türkiye Petrol Rafinerileri A.Ş.”, which boasted the highest value-added generated in recent years, fell to second place in 2020. The third enterprise in terms of value-added was “JTI Tütün Ürünleri Sanayi A.Ş.”, same as 2019. All the top three enterprises with the highest value-added generated in 2020 were private. The enterprise with the highest value-added generated accounted for 9.5 percent of the total gross value-added generated of the ISO 500 in 2020. Last year, this rate was higher with 11.8 percent. TOP THREE ENTERPRISES BY PRODUCTION-BASED SALES Production-Based Sales (Net, Excluding Sales Taxes) TÜPRAŞ TL 58,592,905,460 1 FORD OTOMOTİV TL 45,223,467,516 2 OYAK-RENAULT TL 31,241,977,176 3Next >