< Previous120 OCTOBER 2022 Sectoral Ratios and Aggregates Per Employee for the ISO Top 500 Industrial Enterprises (TL) in 2021 Sectors Number of Enterprises Total Profit and Loss for the Period (Before Tax) / Net Sales (%) Total Profit and Loss for the Period (Before Tax) / Equity Capital (%) EBITDA / Net Sales 05-08 - Mining and quarrying1141.139.047.3 10 - Manufacture of food products 933.819.610.7 11 - Manufacture of beverages 437.955.06.7 12 - Manufacture of tobacco products215.654.519.4 13 - Manufacture of textiles 4613.330.024.8 14 - Manufacture of wearing apparel 135.118.312.7 16 - Manufacture of wood and of products of wood and cork (except furniture)518.959.225.4 17 - Manufacture of paper and paper products 1522.251.330.0 19 - Manufacture of coke and refined petroleum products 4-1.8-288.98.9 20 - Manufacture of chemicals and chemical products3917.747.424.4 21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations 628.835.329.9 22 - Manufacture of rubber and plastic products 239.232.420.1 23 - Manufacture of other non-metallic mineral products2112.420.727.0 24 - Manufacture of basic metals 7515.065.319.1 25 - Manufacture of fabricated metal products (except machinery and equipment) 1819.045.624.2 26 - Manufacture of computer, electronic and optical products519.427.825.4 27 - Manufacture of electrical equipment 297.737.715.7 28 - Manufacture of machinery and equipment N.E.C. 1620.444.219.3 29 - Manufacture of motor vehicles, trailers and semi-trailers428.050.714.5 30 - Manufacture of other transport equipment 6-12.6-47.027.2 31 - Manufacture of furniture 513.527.811.7 32 - Other manufacturing5-2.1-64.9-0.1 32.1 - Manufacture of jewellery, bijouterie and related articles 5-2.1-64.9-0.1 35 - Electricity, gas, steam and air conditioning supply 16-30.1-95.49.6 Total5009.535.217.5OCTOBER 2022 121 Production-Based Sales (Net) / Net Sales (%) Average Number of Wage Employees Total Profit and Loss for the Period (Before Tax) / Average Number of Employees Gross Value-Added (at Producers' Prices) / Average Number of Employees Net Value-Added (at Producers' Prices) / Average Number of Employees Net Sales / Average Number of Wage Employees 92.922,2881,045,0231,473,3891,084,4372,540,957 85.0131,83675,115309,310262,0481,965,249 95.03,8661,122,7422,536,855-1,572,1172,962,658 99.41,921798,11929,962,3601,082,9585,109,923 92.081,109146,620285,399235,7331,098,531 85.730,66634,231150,088130,153671,396 98.77,547705,7661,085,545857,9953,725,825 97.811,418749,9331,224,976924,5483,379,869 92.68,358-470,7102,543,151-626,73326,747,773 79.332,215935,2281,377,7341,199,4865,296,516 90.510,899363,326578,368499,1601,260,808 88.730,097180,764471,031400,4721,964,325 92.631,792227,681533,606407,7001,842,603 91.469,8231,074,4081,330,9071,058,7967,147,616 88.925,600387,408639,893561,0092,041,307 97.419,236382,964655,728575,8071,969,610 85.158,600191,591355,776279,5132,477,282 86.221,336425,175504,507448,7502,083,821 91.5111,823228,831486,664385,8132,860,021 94.517,051-181,660643,245576,6141,444,736 72.912,079130,824202,053172,278971,178 83.41,695-673,873-44,079-59,89132,570,060 83.41,695-673,873-44,079-59,89132,570,060 66.315,137-1,638,118-550,584-970,7455,436,808 88.5757,024289,880670,111428,8043,055,350 SECTORAL DATAMETHODOLOGY, DEFINITIONS EXPLANATIONS The main objective of the “Türkiye’s Top 500 Industrial Enterprises (ISO 500)” survey is to determine the largest enterprises engaged in the industry in Türkiye, identify their aggregates, and thus reveal the development of Turkish industry, and help draw a road map for the future.OCTOBER 2022 123 1. METHOD “Türkiye’s Top 500 Industrial Enterprises” is a survey-ba- sed study. Participation in the survey is on a voluntary basis. The survey includes all enterprises that operate in indust- rial sectors across Türkiye. The unit of analysis is enterprise. Enterprise is a place where at least one person is carrying out industrial and commercial activities or providing services under the same title. The survey analyzes enterprises carrying out industrial activities that have private accounting records and resources. Türkiye’s Top 500 Industrial Enterprises Survey is car- ried out via the “Survey User Login” application at www.iso500.org.tr. Enterprises wishing to participate in Türkiye's Top 500 In- dustrial Enterprises Survey are asked fill in the surveys until the deadline determined for each year by using the “Survey User Login” and to upload their Corporate Inco- me Tax Return (e-return) via using financial seal applica- tion. Enterprises failing to carry out these procedures are not included in the survey. The survey asks for information about net sales, produc- tion-based sales, exports (in USD), before tax profit/loss for the period, earnings before interest, tax, depreciation and amortization (EBITDA), total assets and liabilities, annual average number of employees, R&D expenditu- res, and factor income payments through which gross value-added is calculated (salaries and wages paid, in- terest paid, non-operating revenues, amortization and indirect taxes paid, provisions allocated from profit). The participants are also asked to provide their capital distri- bution and economic activities code (NACE Rev. 2). The survey is based on the statements of enterprises. However, in order to verify the accuracy of the data, the enterprises are also requested to upload their Corporate Income Tax Return (e-return), which includes accumula- ted balance sheets and income statements prepared ac- cording to the Tax Procedure Law (TPL) to be submitted to the Ministry of Finance. The survey data is benchmarked with the e-declaration data, and in case of any inconsistency, enterprises are asked to make corrections and/or submit additional do- cuments (CPA approved letter, capacity report, industrial 124 OCTOBER 2022 registry certificate, adjusted trial balance, etc.) and/or e- declaration data are taken into account. As the “Türkiye’s Top 500 Industrial Enterprises” survey aims to determine the largest industrial enterprises in Türkiye, it also includes enterprises that do not wish to disclose their data. Data for such companies is used in all assessments, even though it is not publicly disclosed. “Türkiye’s Top 500 Industrial Enterprises” survey involves the industrial sector. The ISO 500’s scope covers Mining and Quarrying (B), Manufacturing (C) and Electricity, Gas, Steam and Air Conditioning Supply (D) sectors as defined by NACE Rev. 2. However, NACE Rev. 2 sectors 33, 35.12, 35.13, 35.14, 35.2, 35.3 and 09 are not included in the sco- pe of the study. The ranking of “Türkiye’s Top 500 Industrial Enterprises” is based on the criterion of production-based sales (exc- luding sale of goods manufactured by the enterprises, and sale of commercial goods). In the main table, where information about the enterp- rises are revealed, the rankings based on their produc- tion-based sales is also included as well as their rank in ISO Top 500 of the previous year. If an industrial enterpri- se do not have a number indicating their ranking from the previous year, this can mean that they did not make it to the ISO Top 500 of the previous year, they rose from the Second 500 to Top 500 or the enterprise do not want to disclose their information from the previous year. 2. DEFINITIONS AND EXPLANATIONS 2.1. Net Sales Net sales include the sale of goods that are bought and sold directly as they are, and goods manufactured by the enterprise or via toll manufacturing as well as the sales acquired in return for manufacture carried out for third parties by using their raw material. Net sales consist of domestic and foreign sales. Net sales should be given excluding all the sales taxes, funds, Value-added Tax and Special Consumption Tax. Total net sales should be equal to the net sales on the income statement. 2.2. Production-Based Sales (Net) Türkiye’s Top 500 Industrial Enterprises are ranked ac- cording to the criterion of production-based (net) sales. Production-based sales include the sale of goods man- ufactured by the enterprise or via toll manufacturing and the sales acquired in return for manufacture carried out for third parties by using their raw material. As in net sales, production-based sales should also be given ex- cluding all the sales taxes, funds, Value-added Tax, and Special Consumption Tax. Sales returns and allowances should not be included in the total sales. If there are any discounts and allowances that are not specified under “Sales Allowances”, these should also be deducted from sales. Goods that are bought and sold directly as they are should not be included in the production-based sales. Sales price: It is the exit price of the product. Sales price is found by deducting all the discounts issued for the customer and all the transportation and delivery expenses. If the trans- portation of goods were performed by the enterprise via their own vehicles, the sales price of said goods is the price at the time of delivery. Sales price does not include all sales taxes, funds, Value-added Tax, and Special Consumption Tax. 2.3. Gross Value-Added In order to calculate the contribution of enterprises ana- lyzed by the Top 500 Industrial Enterprises survey, there are questions about value-added in the survey form. The ISO Top 500 survey uses a value-added calculation that is in line with the income approach to GDP. However, the payments for factors of production are calculated directly, rather than using the residual income approach to GDP. Net value-added is the sum of all the salaries and wages paid, interest paid, rent paid (only in the agricultural sec- tor) and profit as national income within the payments for factors of production. Gross value-added is calculated by OCTOBER 2022 125 collecting net value-added, the amortization set aside for the year, and total indirect taxes; then deducting the sub- sidies from the sum. Factor income profit, that is, profit as national income (the production share acquired by the enterprise upon participation in the production) is found by the following calculation: provisions allocated for the period are add- ed to the before tax total profit/loss for the period; and non-operating revenues such as dividend income, rev- enues from participations, net profit/loss from foreign currency exchange, and interest revenues are deducted from the sum. 2.4. Equity Equity is calculated by collecting the paid-up capital, cap- ital reserves, profit reserves, accumulated profit, and net profit for the period, then deducting the accumulated loss and loss for the period. It should be equal to the total eq- uity on the balance sheet. 2.5. Total Assets It should be equal to the total assets (current assets + fixed assets) on the balance sheet. 2.6. Profit/Loss for the Period (Before Tax) It should be equal to the total before tax profit/loss for the period on the income statement. 2.7. Earnings Before Interest, Tax, Depreciation, and Amortization Depreciation expenses (including amortization and de- pletion expenses), (net) financial revenues and expenses, and (net) non-operating revenues and expenses should be added to the before tax profit/loss for the period. 2.8. Exports The US dollar equivalent (Fob) of the exports of an enter- prise should be specified. Export value should be speci- fied according to the General Trading System (GTS). Ac- cording to GTS, goods that are moved abroad from the free zones, customs warehouses and the free circulation area are considered as exports. This figure should in- clude, if any, export-registered sales and exclude service trade and transit trade. Export amounts should exclude any state subsidies received in any way, shape or form. The dollar equivalent of exports to the TRNC should also be specified. 2.9. Number of Wage Employees Average number of wage employees should be stated. All wage employees are included. All employees receiv- ing wages, salaries, commissions, bonuses, piece-rate pay and pay in kind, in possession of labor contract, and working for the employer should be stated. 2.10. Sectoral Classification The ISO 500 survey uses European Union’s Statistical Clas- sification of Economic Activities (NACE Rev.2) for sectoral classification. As a cumulative survey, the ISO 500 continues to use United Nations International Standard Industrial Clas- sification of All Economic Activities (ISIC Rev.2) to ensure continuity and facilitate comparisons with previous years In sectoral tables, if there is only one enterprise operating in any given sector, information about that sector is not shared with the public. METHODECONOMIC ACTIVITY CODES AND CAPITAL DISTRIBUTION In the ISO 500 survey, the sectors are classified according to the Statistical Classification of Economic Activities in the European Community (NACE Rev. 2).OCTOBER 2022 127 ECONOMIC ACTIVITY CODES The study includes the economic activity codes for each enterprise based on the Statistical Classification of Economic Activities in the European Community (NACE Rev.2, 2022), as well as the United Nations’ International Standard Industrial Classification of All Economic Activities (ISIC Rev. 2). The ISIC Rev. 2 economic activity codes of the enterp- rises are based on the NACE Rev.2 economic activity codes provided either by the enterprises themselves or by the chambers of which they are members. EUROPEAN COMMUNITY-STATISTICAL CLASSIFICATION OF ECONOMIC ACTIVITIES (NACE Rev.2, 2022) CodeDefinition BMINING and QUARRYING 05Mining of coal and lignite 06Extraction of crude petroleum and natural gas 07Mining of metal ores 08Other mining and quarrying CMANUFACTURING 10Manufacture of food products 11Manufacture of beverages 12Manufacture of tobacco products 13Manufacture of textiles 14Manufacture of wearing apparel 15Manufacture of leather and related products 16Manufacture of wood and of products of wood and cork (except furniture) 17Manufacture of paper and paper products 18Printing and reproduction of recorded media 19Manufacture of coke and refined petroleum products 20Manufacture of chemicals and chemical products 21Manufacture of basic pharmaceutical products and pharmaceutical preparations 22Manufacture of rubber and plastic products 23Manufacture of other non-metallic mineral products 24Manufacture of basic metals 25Manufacture of fabricated metal products (except machinery and equipment) 26Manufacture of computer, electronic and optical products 27Manufacture of electrical equipment 28Manufacture of machinery and equipment N.E.C. 29Manufacture of motor vehicles, trailers and semi-trailers 30Manufacture of other transport equipment 31Manufacture of furniture 32Other manufacturing 32.1Manufacture of jewellery, bijouterie and related articles 32.2Manufacture of musical instruments 32.3Manufacture of sports goods 32.4Manufacture of games and toys 32.5Manufacture of medical and dental instruments and supplies 32.9Manufacturing N.E.C. DELECTRICITY, GAS, STEAM and AIR CONDITIONING SUPPLY 35Electricity, gas, steam and air conditioning supply UNITED NATIONS-INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION OF ALL ECONOMIC ACTIVITIES (ISIC REV.2) CodeDefinition 210Mining and Quarrying 311Manufacture of food products 312Manufacture of food products not elsewhere classified (NEC) 313Beverage industries (alcoholic and non-alcoholic) 314Manufacture of tobacco processing 321Manufacture of textiles 322Manufacture of wearing apparel, except footwear 323 Tanning and dressing of leather; manufacture of leather substi- tutes 324Manufacture of footwear 331Manufacture of wood and products of wood and cork 332Manufacture of wooden furniture 341Manufacture of paper and paper products 342Printing and publishing 351Manufacture of basic chemicals 352Manufacture of other chemical products 353Manufacture of petroleum products 354Oil and coal derivatives 355Manufacture of rubber goods 356Manufacture of plastic products NEC 361Manufacture of pottery, china, earthenware and porcelain 362Manufacture of glass and glass products 369Manufacture of other nonmetallic mineral products 371Manufacture of basic iron and steel 372Manufacture of non-ferrous products 381Manufacture of metal products 382Manufacture of machinery, except electrical 383Manufacture of electrical machinery, apparatus and appliances 384Manufacture of motor vehicles 385 Manufacture of professional, scientific and medical instruments and equipment 390Other manufacturing 400Power production and distribution128 OCTOBER 2022 Private Enterprises Capital Distribution of the Top 500 Industrial Enterprises Enterprises with 100% public capital 8 Public-private capital enterprises with more than 50% public capital - Public-foreign partnership enterprises with more than 50% public capital - Public-private-foreign capital enterprises with more than 50% public capital - Total Public Enterprises8 Mostly Domestic Capital Enterprises with %100 private capital 379 Private-public capital enterprises with more than 50% private capital 4 Private-foreign capital enterprises with more than 50% private capital 26 Private-public-foreign capital enterprises with more than 50%private capital- Mostly Foreign Capital Enterprises with 100% foreign capital 46 Foreign-private capital enterprises with more than 50% foreign capital 28 Foreign-public capital enterprises with more than 50% foreign capital - Foreign-private-public capital enterprises with more than 50% foreign capital 1 Public-private-foreign capital enterprises where no party has put in more than 50% of the capital - Enterprises with 50% private and 50% foreign capital 8 Total Private Enterprises492 Total500 Publicly Traded Enterprises (*) 65 Public Enterprises (*) Publicly traded shares are based on the information declared by the enterprises in the survey.Next >