< PreviousAUGUST 2021 39 Continued on next page MAIN INDICATORS Main Indicators of the Publicly Traded Enterprises (TL) A Top 500 Industrial Enterprises B 67 Publicly Traded Enterprises B/A (%) Production-based Sales (Net)1,178,600,842,346348,146,094,67429.5 Net Sales1,325,312,216,229397,420,038,23130.0 Exports (According to GTS, $ Thousand)64,104,48119,123,27529.8 Profit for the Period (Before Tax)113,635,788,47338,709,964,56534.1 Loss for the Period21,132,316,1534,742,786,40822.4 Total Profit and Loss for the Period (Before Tax)92,503,472,32033,967,178,15736.7 EBITDA184,446,547,33155,950,053,46730.3 Total Debts881,106,972,024281,844,508,83932.0 --Short-term Debts530,018,291,388176,693,117,98233.3 > Financial Debts206,022,030,93053,869,690,13526.1 > Other Debts323,996,260,459122,823,427,84737.9 --Long-term Debts351,088,680,636105,151,390,85730.0 > Financial Debts293,544,247,61590,055,553,16430.7 > Other Debts57,544,433,02015,095,837,69326.2 Equity Capital407,229,662,949118,176,361,94629.0 --Paid-up Capital159,507,465,06533,258,531,17420.9 --Capital Reserves19,137,779,7297,647,215,28440.0 --Profit Reserves217,043,481,88260,236,794,39527.8 --Net Period Profit99,985,426,39232,526,871,74132.5 --Accumulated Loss88,444,490,11915,493,050,64817.5 Total Assets1,288,336,634,979400,020,870,78331.0 --Current Assets820,993,456,177276,425,565,42633.7 --Fixed Assets467,343,178,802123,595,305,35726.4 > Tangible Fixed Assets297,094,549,26974,152,521,34125.0 > Other Fixed Assets170,248,629,53249,442,784,01629.0 --Accumulated Depreciation322,911,022,412123,280,116,38638.2 > 40 AUGUST 2021 Continued from previous page Main Indicators of the Publicly Traded Enterprises (TL) A Top 500 Industrial Enterprises B 67 Publicly Traded Enterprises B/A (%) Wage Employees716,962171,09223.9 Salaries and Wages Paid78,330,672,94323,959,359,14930.6 Interest Paid44,536,462,7709,742,321,99021.9 Profit as National Income53,308,717,22316,915,770,55031.7 Net Value Added (at Factors' Prices)176,175,852,93650,617,451,68928.7 Amortization41,174,360,54013,257,087,47232.2 Other Indirect Taxes1,667,209,127568,746,78334.1 Gross Value Added (at Basic Prices)219,017,422,60364,443,285,94429.4 VAT + Special Consumption Tax Paid127,678,491,60051,334,762,86040.2 Subsidies663,318,16862,572,6309.4 Gross Value Added (at Producers' Prices)346,032,596,035115,715,476,17433.4AUGUST 2021 41 As with all sectors, the COVID-19 pandemic also affected the employees in the industry. Many employees contrac- ted the virus and could not work. Again, due to the pande- mic-induced fluctuations in demand, production had to be suspended or production operations switched to part-ti- me. Public institutions launched support for working life, particularly short-time working allowance and unpaid leave support. Termination of employment contracts was banned throughout the year. These were determinants for the employment indicators of the industry. In 2020, employment in private enterprises in the ISO 500 grew by 2.9 percent. Wages and salaries paid by private enterprises also climbed by 14.5 percent in 2020. Consi- dering the 2.9 percent growth in employment, wages and salaries paid by private enterprises increased by 11.2 per- cent. When this rate is adjusted for consumer inflation, it shows that wages and salaries paid decreased by 3 per- cent in real terms in 2020. However, this setback was due to the pandemic conditions that persisted all year round in working life. Practices such as short-time working, flexible working and unpaid leave had to be introduced at different times during the year. These, in turn, led to a downward trend in wages and salaries paid. In such cases, public institutions made additional payments to employees. The industrial sector is one of the most important areas for employment and qualified human resources. Accordingly, changes in wages and salaries paid and the number of employees of the private enterprises in the ISO 500 serve as significant indicators. EMPLOYMENT IN PRIVATE ENTERPRISES EMPLOYMENT AND WAGES & SALARIES IN PRIVATE ENTERPRISES 2017 2016 37,826 43,496 2018 52,466 2019 2020 63,647 72,871 Salaries and Wages Paid (TL Million) 2016 616,892 2017 632,264 2018 651,160 2019 2020 659,463 678,917 Employees (Persons) 2020/2019 14.5% 2.9% Employees (Persons) Salaries and Wages Paid (TL Million) Change (%) 2019/2018 21.3% 1.3% The employment performance of private en- terprises improved during the pandemic year. 2020 was a very different year with regards to the effects of the pandemic on working life. It is safe to say that the pandemic shook the working life to its core. New ways of working, especially remote working, emerged. Multiple lockdowns and restrictions implemented throughout the year also limited the working hours. MAIN FINANCIAL INDICATORS The distribution of debt and equity is one of the important indicators demonstrating the financial structure of enterprises.AUGUST 2021 43 The share of equity capital of public enterprises fell to 52.6 percent while the share of debt rose to 47.4 percent. Borrowing and equity capital trends mirrored the financial developments in 2020. And the pandemic was what sha- ped the financial developments. Due to the pandemic in 2020, the cash flows of indust- rial enterprises dropped to their lowest levels especially in Q2. With lockdowns and restrictions, cash flow neared stagnation. It was at this point when public institutions introduced support packages, providing favorable con- ditions and borrowing opportunities. Many public obliga- tions were postponed. Legal action against bank loans was banned. Thus, industrial enterprises had access to relatively more favorable financing conditions. Moreover, as of 2H20, cash flows started to normalize with the recovery in do- mestic and foreign demand. Equity capital expansion opportunities remained very li- mited in 1H20. However, the normalization and increase in profits in 2H20 were also reflected positively in equity capital. Debt/equity distribution did not change. Private companies in Turkey use borrowing as a signifi- cant source for financing their operations. The expanding variety and decreasing costs of global borrowing were particularly effective for private companies in Turkey to reinforce this trend. Foreign currency borrowing was preferred to a greater extent. With this trend, the share of total debt increased while the share of equity started to decline. The share of total debt in ISO 500, which exceeded the 60 percent mark for the first time in 2015, maintained its upward trajectory in the following years and increased by 1.4 points YoY, reaching 68.4 percent in 2019. In 2020, the debt-equity capital distribution remained unchanged. The share of total debts was 68.4 percent, and the share of equity capital was 31.6 percent. Thus, while the share of debts remained at its highest level, the share of equity capital remained at its lowest level. In 2020, organizati- ons adjusted their growth to the increase in their equity capital. In 2020, the ratio of the debts of private enterprises recor- ded a 0.5-point drop, falling from 70.6 percent to 70.1 per- cent. However, the share of their equity capital climbed to 29.9 percent. The rate of deterioration in the financing structure of the private sector slowed down. However, the share of debts remained high. CHANGE IN DEBT AND EQUITY IN THE FUNDING STRUCTURE (%) 2019 68.4 31.6 2020 68.4 31.6 100 80 60 40 20 0 Total DebtEquity 2016 61.9 38.1 2017 62.9 37.1 2018 67.0 33.0 2015 60.1 39.9 2014 57.0 43.0 2013 57.0 43.0 2012 52.8 47.2 2011 53.7 46.3 CHANGE IN DEBT AND EQUITY IN THE FUNDING STRUCTURE OF PRIVATE ENTERPRISES (%) 7080 69.4 70.6 70.1 0102030405060 Total DebtEquity 58.4 57.3 61.1 60.0 63.0 65.0 65.6 37.0 2017 2016 2015 2014 2013 2012 2011 40.0 38.9 42.7 41.6 35.0 34.4 2018 30.6 2019 2020 29.4 29.944 AUGUST 2021 The share of financial debt in total debt re- mained unchanged. In 2020, financial debts of the ISO 500 grew at a rate of 23 percent while other debts rose by 23.1 percent. According- ly, financial debts and other debts recorded almost identi- cal growth rates in 2020. Based on their growth rates, the share of financial debts and other debts in total debts did not change. The share of financial debts and other debts remained flat with 56.7 percent and 43.3 percent, respec- tively. Thus, the previous climb in the financial debts/total debt ratio stopped in 2020. Funding Structure (%) Top 500 Industrial Enterprises201220132014201520162017201820192020 Short-Term Debts34.336.234.634.935.638.041.641.341.1 Long-Term Debts18.520.822.425.226.324.925.427.227.3 Total Debts52.857.057.060.161.962.967.068.468.4 Equity 47.243.043.039.938.137.133.031.631.6 100.0100.0100.0100.0100.0100.0100.0100.0100.0 Private Enterprises201220132014201520162017201820192020 Short-Term Debts37.038.536.837.438.040.443.342.542.2 Long-Term Debts20.322.623.225.627.025.226.028.027.9 Total Debts57.361.160.063.065.065.669.470.670.1 Equity 42.738.940.037.035.034.430.629.429.9 100.0100.0100.0100.0100.0100.0100.0100.0100.0 Public Enterprises201220132014201520162017201820192020 Short-Term Debts16.117.015.311.114.615.624.627.028.0 Long-Term Debts6.36.015.421.220.522.019.117.519.5 Total Debts22.423.030.732.335.137.643.744.547.4 Equity77.677.069.367.764.962.456.355.552.6 100.0100.0100.0100.0100.0100.0100.0100.0100.0 RATES OF CHANGE 23.0% 23.0% TOTAL DEBT FINANCIAL DEBT OTHER DEBT 23.1%AUGUST 2021 45 With the support loan facilities provided, the share of short-term financial debts went down. In 2017 and 2018, the share of short-term financial debt in overall financial debt surged. The ratio of short-term financial debts to overall financial debt, which was 41.9 percent in 2017, climbed to 45.3 percent in 2018. In 2019, however, the share of short-term financial debt in total financial debt dipped once more to 41.4 percent. Two factors were effective in this decline. Firstly, some of the short-term financial debts were restructu- red into mid-to-long term financial debts. The other factor is that the relative improvement in financial conditions starting in the second half of 2019 once again extended the long-term loan opportunities. In 2020, industrial enterprises had access to a wide range of loan opportunities as public institutions rolled out loan packa- ges, most of which were medium-term, due to the pandemic. While industrial enterprises continued to use traditional short- term loans in trade and exports, they opted for medium-term loans for their other financing needs. There was a great de- mand for support loan packages. Accordingly, in 2020, the sha- re of short-term financial debt in total financial debt recorded a limited 0.2-point decrease to 41.2 percent, down from 41.4 percent. As of 2019, the long-term financial debts of the ISO 500 were higher than short-term financial debts in 14 of the 25 sub-sec- tors. 11 sectors, on the other hand, had higher short-term de- bts compared to long-term debts. On a YoY basis, the number of sectors with higher long-term debts increased by one, while the number of sectors with higher short-term debts decreased by one. The sectoral analysis of the financial debts of the ISO 500 re- vealed some changes in the three sectors with the highest fi- nancial debt and their rankings YoY. The manufacture of basic metals ranked at the very top with the highest financial debt. The manufacture of food products, which had ranked third in 2019, rose to the second place in 2020. The manufacture of refi- ned petroleum products, which had ranked second in 2019, fell to the third place. Among the sectors whose short-term financial debts are sig- nificantly above their long-term financial debts, manufacture of food products, the manufacture of chemicals and chemical products and manufacture of electronics stand out. In the ma- nufacture of basic metals, long-term financial debts exceeded short-term financial debts. The sectors whose long-term fi- nancial debts were significantly above their short-term financi- al debts were the manufacture of refined petroleum products, mining and quarrying, manufacture of mineral products and electricity, gas, steam and air conditioning supply. SHARE OF SHORT-TERM FINANCIAL DEBT IN TOTAL FINANCIAL DEBT (%) 20162017201820192020 37.8 45.3 41.2 41.9 41.4 Changes in Debts (TL) Total Debts Financial DebtsOther Debts ValueShare (%)ValueShare (%) 2015305,472,597,410174,394,921,48357.1131,077,675,92742.9 2016379,080,634,920207,366,601,03254.7171,714,033,88845.3 2017447,231,461,383242,877,446,34554.3 204,354,015,03845.7 2018589,493,485,990328,597,965,01555.7260,895,520,97544.3 2019716,338,725,686406,312,909,87256.7310,025,815,81443.3 2020881,106,972,024499,566,278,54556.7381,540,693,47943.3 Change (%) - (2020/2019)23.023.0-23.1-46 AUGUST 2021 Financial Debts (TL) Sectors Short-Term Financial Debts Long-Term Financial Debts Total Financial Debts 05-08Mining and quarrying4,563,809,74625,143,509,70129,707,319,447 10Manufacture of food products36,321,385,97023,427,484,85159,748,870,821 11Manufacture of beverages1,068,771,4328,491,002,8539,559,774,284 12Manufacture of tobacco products464,592,18118,733,500483,325,681 13Manufacture of textiles18,923,854,90423,728,401,26942,652,256,173 14Manufacture of wearing apparel1,293,269,9111,058,511,3452,351,781,256 16 Manufacture of wood and of products of wood and cork (except furniture) 4,284,922,7117,083,877,02211,368,799,733 17Manufacture of paper and paper products1,463,071,2565,234,175,9766,697,247,232 19Manufacture of coke and refined petroleum products12,360,918,75841,614,982,00753,975,900,765 20Manufacture of chemicals and chemical products22,091,705,26317,496,625,15539,588,330,418 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 1,554,621,2931,503,870,5263,058,491,818 22Manufacture of rubber and plastic products5,979,983,1667,249,987,36113,229,970,528 23Manufacture of other non-metallic mineral products6,964,462,26123,074,200,53030,038,662,792 24Manufacture of basic metals33,427,196,10033,948,146,62667,375,342,725 25 Manufacture of fabricated metal products (except machinery and equipment) 2,376,111,9512,235,627,5654,611,739,516 26Manufacture of computer, electronic and optical products6,481,404,0492,343,596,4618,825,000,509 27Manufacture of electrical equipment9,679,705,60012,103,699,49921,783,405,099 28Manufacture of machinery and equipment N.E.C.1,436,907,3733,016,413,8504,453,321,223 29Manufacture of motor vehicles, trailers and semi-trailers16,268,556,25122,446,567,16438,715,123,414 30Manufacture of other transport equipment7,221,367,5095,086,019,97112,307,387,480 31Manufacture of furniture256,917,689574,689,860831,607,549 32Other manufacturing1,087,082,2991,081,595,6282,168,677,927 32.1Manufacture of jewellery, bijouterie and related articles1,087,082,2991,081,595,6282,168,677,927 35Electricity, gas, steam and air conditioning supply9,675,492,88925,414,830,22635,090,323,114 Total206,022,030,930293,544,247,615499,566,278,545-Total Area 31 Million m 2 -Allocated Area 20 Million m 2 -670 Industrial Enterprises -45 Thousand Employees -$5 Billion Revenue -$1.7 Billion Exports -100 Exporters -31 Foreign Capital Firms ESKİŞEHİR OIZ -Land Ready for Allocation with Finished Infrastructure -Reasonable Prices and Payment Terms -Natural Gas Supply from BOTAŞ and TANAP -300 MW Electric Power -Fiberoptic Internet Infrastructure -Telephony Infrastructure -Uninterrupted Water Supply -Wastewater Infrastructure - Rainwater Canals -Fire Station -Ambulance INFRASTRUCTURE -Wastewater Treatment Plant -Environment Laboratory -Solar Drying Plant -Natural Gas Power Plant -Solar Power Plants -Turkey's Greenest OIZ -Eco-Friendly OIZ -Symbiosis Studies -Street Animal Commission ENVIRONMENT AND ENERGY -Private EOIZ Vocational and Technical High School -MEGEM Vocational Training Center -ESBEM Examination and Certification Center -ESOGÜ Vocational School -Assembly Workshop for the Disabled -Joint Project Studies with Universities TRAINING -Technology Development Zone -Design and Innovation Center -Internet Service Provider -University-Industry Cooperation -High-Tech Product Exports up to 15% -The Possibility to Benefit from Investment Incentives -Consultancy Services -14 R&D Centers -Highly Trained Workforce Presence -Pilot OIZ Selected by World Bank TECHNOLOGY -SME-OIZ -Life Center -Business and Trade Center -Logistics Center -Customs -Warehouses -Breakdown and Support Center -Mosques -Sports Facilities -Nursery -Restaurants SERVICE UNITS ESKİŞEHİR ORGANIZED INDUSTRIAL ZONE www.eosb.org.tr info@eosb.org.tr WE WORK FOR YOUR FUTURE ESKİŞEHİR ORGANIZED INDUSTRIAL ZONE MANAGEMENT BOARD ORGANIZED INDUSTRIAL ZONE48 AUGUST 2021 After 2019, marked by the financial shocks in 2018 and the effects of the economic rebalancing policies, industrial enterprises tried to protect their financial structures under the conditions created by the COVID-19 pandemic in 2020. Current ratio improved significantly. Current ratio refers to businesses’ capability to liquidate their current assets and use the funds generated to meet their short-term financial liabilities. A current asset stock that is greater in value than short-term debts indicates that the business has a net positive working capital and the capacity to fulfill its short-term financial liabilities. The current ratio of ISO 500 recorded a significant impro - vement in 2020. The ratio, which climbed to 154.9 percent following a YoY increase of 7.3 points, was at its highest level since 2014. Total debts/equity capital ratio remained unchanged. The economic developments and financial shocks that marked 2018 and 2019 caused a significant increase in to- tal debt and the total debt/equity capital ratio of the ISO 500 jumped from 169.9 percent to 216.6 percent. In other words, the total debt exceeded twice the size of equity capital. FINANCIAL RATIOS In 2020, the increases in borrowing and equity capital of the ISO 500 followed near-parallel trajectories. The increase in the profits of the ISO 500 also led to a significant increa- se in equity capital. Thus, industrial enterprises were able to balance the increase in their debts with equity capital growth. In 2020, the upward trend in the debt/equity capital ratio flattened and the ratio was realized as 216.4 percent. However, it still managed to maintain its very high levels. Financial debt remained above equity. The financial debt/equity capital ratio of the ISO 500 dec- reased slightly in 2020 to 122.7 percent. However, financial debts remained above equity capital. The persistent effects of the financial shocks in 2018 and 2019 are considered to be the reason why financial debts were higher than equity capital. A significant portion of financial debts consisted of fore- ign currency debts. 2020 saw depreciation in Turkish lira continue, leading to an increase in the TL-equivalents of financial debts and a high financial debt/equity capital ratio. CURRENT RATIO (%) 200 150 100 50 0 20172018201920202016 153.7153.7 147.6 154.9 147.1 250 200 150 100 50 0 TOTAL DEBT / EQUITY (%) 20182019202020172016 162.3 169.9 203.4 216.6 216.4Next >