< Previous40 OCTOBER 2022 The number of ICI-member enterprises declined to 158. On a yearly basis, the number of ICI members follows a general downward trend. Having stood at 197 in 2010, the number of ICI members declined to 166 in 2018. In 2019, the number of ICI-member organizations rose by three to 169, breaking away from a long flat trend, and was 161 in 2021. In 2021, the decrease in the number of ICI members continued and it dropped to 158. While the ISO 500 covers all industrial companies across Türkiye, the survey also evaluates the progress of Istanbul Chamber of Industry members. ICI Members in the ISO 500 The share of ICI members in producti- on-based sales shrank. Despite the decrease in the number of ICI members, the shares of these enterprises in the main aggregates of ISO 500 followed different trajectories. In this regard, produc- tion-based sales serve as a key indicator that influences the ranking of the ISO 500 list. The share of ICI members in production-based sales dropped from 40.6 percent in 2020 to 37.7 percent in 2021. While the share increased in 2019 and 2020 and climbed to exceed the 40 percent mark again, the share of ICI members in production-based sales decreased to its lowest level in recent years in 2021. The shares of ICI-member enterprises in other indicators displayed varying trajectories. In 2021, their share in to- tal profit and loss before tax increased from 44.5 percent to 48.8 percent. The share of equity capital climbed from 34.6 percent to 35.5 percent. In contrast, the share of ICI members in exports declined from 45.6 percent to 44.2 percent, and in wage employees from 36.7 percent to 36.1 percent. ICI MEMBERS (#) 0 50 100 150 200 250 2017 2019 2020 2021 2018 2016 2015 2014 2013 2012198 192 190 182 180 174 166 169 161 158 SHARE OF ICI MEMBERS (%) 2020 40.6 % 45.6% 2021 37.7% 44.2% ExportsProduction-based Sales (Net)OCTOBER 2022 41 The share of profit in net value-added con- tinued to increase. The share of ICI members’ profit as national income in net value-added went up by 4.8 points in 2021 to reach 33.9 percent. During the rapid growth period in 2021, industrial enterprises enjoyed high rates of absolute and real incre- ase in their profits. Accordingly, the share of profit as national income in net value-added, which had dropped all the way down to 0.5 percent after the financial shock in 2018 and risen back to 10.2 percent in 2019, recorded significant jumps in 2020 and 2021. In 2021, the share of interest paid in the net value-added generated saw a 3.1-point rise, thus hitting 28.8 percent. Due to higher interest rates in 2021, the share of interest paid in net value-added rose again. MAIN INDICATORS BREAKDOWN OF FACTOR INCOME OF ICI MEMBERS (%) Salaries and Wages Paid Profit as National Income Interest Paid 37.2 The share of ICI members in wages and salaries paid was 37.2 percent in 2021, down from 45.1 percent in 2020. The share of wages and salaries paid decreased, which was mostly due to the relatively rapid increase in profits. The wages and salaries paid continued to increase in nominal terms. In addition, the short-term working al- lowance program that continued until July 1, 2021, also played a role in the decrease in the share of wages and salaries in both gross and net value-added. SHARE OF PROFIT IN THE FACTOR INCOME OF ICI MEMBERS (%) 0 2016 2017 2018 2019 2020 2021 2015 2014 2013 2012 28.0 0.5 10.2 29.2 33.9 31.8 27.0 24.1 18.3 22.1 20304010 28.8 33.942 OCTOBER 2022 Continued on next page Main Indicators of the ICI Members (TL) A Top 500 Industrial Enterprises B 158 ICI Members B/A (%) Production-based Sales (Net) 2,048,052,702,320771,219,902,89137.7 Net Sales 2,312,973,466,445882,651,292,82338.2 Exports (According to GTS, $ Thousand) 85,847,80737,947,32644.2 Profit for the Period (Before Tax) 287,770,791,543117,063,213,77640.7 Loss for the Period 68,324,823,5259,950,907,36514.6 Total Profit and Loss for the Period (Before Tax) 219,445,968,018107,112,306,41148.8 EBITDA 405,286,853,107139,842,647,77534.5 Total Debts 1,507,359,556,516485,910,449,16232.2 --Short-term Debts 959,137,418,668349,768,953,08736.5 > Financial Debts 341,010,156,143120,582,194,55935.4 > Other Debts 618,127,262,525229,186,758,52837.1 --Long-term Debts 548,222,137,848136,141,496,07524.8 > Financial Debts 454,905,265,387123,886,277,75627.2 > Other Debts 93,316,872,46112,255,218,31913.1 Equity Capital 624,068,846,500221,756,400,67635.5 --Paid-up Capital 217,120,283,98847,400,484,15521.8 --Capital Reserves 80,440,696,27017,815,907,76722.1 --Profit Reserves 239,353,407,89483,506,662,76034.9 --Net Period Profit 249,772,105,616101,239,736,25040.5 --Accumulated Loss 162,617,647,26728,206,390,25617.3 Total Assets 2,131,428,403,017707,666,849,84233.2 --Current Assets 1,425,265,871,552515,879,121,22136.2 --Fixed Assets 706,162,531,465191,787,728,62127.2 > Tangible Fixed Assets 461,741,174,645102,809,100,17022.3 > Other Fixed Assets 244,421,356,82088,978,628,45136.4 --Accumulated Depreciation 467,062,428,080169,315,566,75236.3 > OCTOBER 2022 43 Continued from previous page Main Indicators of the ICI Members (TL) A Top 500 Industrial Enterprises B 158 ICI Members B/A (%) Wage Employees 757,024273,32636.1 Salaries and Wages Paid 104,466,377,46039,356,299,53137.7 Interest Paid 91,188,236,83430,456,893,92533.4 Profit as National Income 128,959,978,13335,845,128,08727.8 Net Value-Added (at Factors' Prices) 324,614,592,427105,658,321,54332.5 Amortization 63,449,064,56319,824,415,27831.2 Other Indirect Taxes 2,249,187,327765,710,55434.0 Gross Value-Added (at Basic Prices) 390,312,844,317126,248,447,37532.3 VAT + Special Consumption Tax Paid 117,381,511,14053,614,479,25845.7 Subsidies 403,941,26496,912,50424.0 Gross Value-Added (at Producers' Prices) 507,290,414,193179,766,014,12935.4 Weight of the ICI Members (%) Number of ICI Members Net Sales Production- based Sales (Net) Exports Total Profit and Loss for the Period (Before Tax) Total Assets Equity Capital Wage Employees Gross Value- Added 201119345.244.151.237.639.436.241.543.8 201219843.243.051.740.938.936.842.041.5 201319240.441.249.035.638.034.840.138.9 201419045.643.950.946.640.739.041.744.5 201518245.444.052.137.739.736.440.641.1 201618042.941.749.833.935.432.139.737.8 201717441.540.246.637.035.832.539.237.2 201816639.438.647.038.034.732.638.037.4 201916939.639.246.239.633.732.637.837.7 202016141.140.645.644.533.934.636.738.1 202115838.237.744.248.833.235.536.135.4 MAIN INDICATORS44 OCTOBER 2022 The number of publicly traded enterprises in the ISO 500 was 65. The number of publicly traded enterprises within the ISO 500, which was 67 in 2018, 66 in 2019, and 67 in 2020, dropped to 65 in 2021. While there was not a notable change in the number of enterprises during the last four years, the share of publicly traded enterprises in the basic indicators and total aggregates of the ISO 500 showed different trends. Despite the significant increase in IPOs in 2021, it is worth no- ting that this was not reflected in the number of publicly traded enterprises within the ISO 500. From 2020 to 2021, the share of publicly traded enterprises in production-based sales rose from 29.5 percent to 30.8 percent, their share in exports from 29.8 per- cent to 30.8 percent, and their share in total profit and loss for the period from 36.7 percent to 46.2 percent. In addition to these indicators, there is an increase in the share of profit/loss before interest, depreciation and tax and of equ- ity capital. However, their shares in other basic indicators decli- ned. Their share in total assets dropped from 31 percent to 30.6 percent, the share in wage employees from 23.9 percent to 23.1 percent, and the share in net value-added at factor prices from 28.7 percent to 27.5 percent. As is seen, the 2021 performance of publicly traded enterprises showed different trends in terms of basic indicators. PERFORMANCE OF PUBLICLY TRADED ENTERPRISES SHARE OF PUBLICLY TRADED ENTERPRISES IN MAIN INDICATORS (%) 20202021 Production-Based Sales (Net)29.530.8 Exports (According to GTS)29.830.8 Total Profit/Loss for the Period (Before Tax)36.746.2 Earnings before Interest, Tax, Depreciation and Amortization 30.332.6 Total Debt32.030.7 Equity29.030.5 Total Assets31.030.6 Wage Employees23.923.1 Net Value-Added (at Factor Cost)28.727.5 SHARE OF PUBLICLY TRADED ENTERPRISES IN MAIN INDICATORS (%) 30.7% Total Debt 30.6% Total Assets 32.6% EBITDA 30.5% Equity 46.2% Profit/Loss for the Period (Before Tax) (*) Publicly traded shares are based on the information declared by the enterprises in the survey. (*)OCTOBER 2022 45 Continued on next page Main Indicators of the Publicly Traded Enterprises (TL) A Top 500 Industrial Enterprises B 65 Publicly Traded Enterprises B/A (%) Production-based Sales (Net) 2,048,052,702,320630,034,948,38030.8 Net Sales 2,312,973,466,445721,852,213,09731.2 Exports (According to GTS, $ Thousand) 85,847,80726,415,06530.8 Profit for the Period (Before Tax) 287,770,791,543104,792,563,36636.4 Loss for the Period 68,324,823,5253,304,919,3584.8 Total Profit and Loss for the Period (Before Tax) 219,445,968,018101,487,644,00846.2 EBITDA 405,286,853,107132,240,939,44532.6 Total Debts 1,507,359,556,516463,078,746,52730.7 --Short-term Debts 959,137,418,668318,593,942,65333.2 > Financial Debts 341,010,156,14389,138,418,87126.1 > Other Debts 618,127,262,525229,455,523,78337.1 --Long-term Debts 548,222,137,848144,484,803,87326.4 > Financial Debts 454,905,265,387126,050,417,15827.7 > Other Debts 93,316,872,46218,434,386,71619.8 Equity Capital 624,068,846,500190,112,899,03230.5 --Paid-up Capital 217,120,283,98835,430,274,06616.3 --Capital Reserves 80,440,696,27020,433,756,18325.4 --Profit Reserves 239,353,407,89359,493,364,24124.9 --Net Period Profit 249,772,105,61691,379,100,30736.6 --Accumulated Loss 162,617,647,26716,623,595,76710.2 Total Assets 2,131,428,403,017653,191,645,55530.6 --Current Assets 1,425,265,871,549469,889,368,71133.0 --Fixed Assets 706,162,531,465183,302,276,84526.0 > Tangible Fixed Assets 461,741,174,645109,356,247,37623.7 > Other Fixed Assets 244,421,356,82073,946,029,46930.3 --Accumulated Depreciation 467,062,428,080171,802,520,85136.8 > MAIN INDICATORS46 OCTOBER 2022 Continued from previous page Main Indicators of the Publicly Traded Enterprises (TL) A Top 500 Industrial Enterprises B 65 Publicly Traded Enterprises B/A (%) Wage Employees 757,024174,53123.1 Salaries and Wages Paid 104,466,377,46031,256,748,83429.9 Interest Paid 91,188,236,83414,164,217,12715.5 Profit as National Income 128,959,978,13343,925,297,62834.1 Net Value-Added (at Factors' Prices) 324,614,592,42789,346,263,58927.5 Amortization 63,449,064,56318,813,156,68929.7 Other Indirect Taxes 2,249,187,327775,867,75234.5 Gross Value-Added (at Basic Prices) 390,312,844,317108,935,288,03027.9 VAT + Special Consumption Tax Paid 117,381,511,14038,474,183,79532.8 Subsidies 403,941,26486,014,41421.3 Gross Value-Added (at Producers' Prices) 507,290,414,193147,323,457,41129.0OCTOBER 2022 47 In this period, increased momentum in exports rendered production capacities insufficient, and capacity expansi- on was targeted with expansion and new investments. Accordingly, growth in the industrial sector and new ca- pacity investments also made positive contributions to employment. The employment in private ISO 500 enterprises increased by 6.1 percent in 2021, reaching 720,490 people. Wages and salaries paid by private enterprises also climbed by 34.7 percent in 2021. Considering the 6.1 percent growth in employment, wa- ges and salaries paid per employee by private enterprises increased by 26.9 percent. When this rate is adjusted for year-end consumer inflation, it shows that wages and sa- laries paid decreased by 6.7 percent in real terms in 2021. However, this decline was mostly due to the year-end inc- rease in inflation. Practices such as short-time working, flexible working and unpaid leave had to be introduced at various times during the year. As part of these practices, some of the payments made to the employees were covered by the public, which limited the wages and salaries paid by the enterprises. EMPLOYMENT IN PRIVATE ENTERPRISES EMPLOYMENT AND WAGES & SALARIES IN PRIVATE ENTERPRISES 2017 43,496 2018 52,466 2019 2020 2021 63,647 72,871 98,159 Salaries and Wages Paid (TL Million) 2017 632,264 2018 651,160 2019 2020 2021 659,463 678,917 720,490 Employees (Persons) The increase in the employment in private enterprises picked up momentum. The industrial sector is among the crucial areas for emp- loyment and qualified human resources. In this context, changes in wages and salaries paid and the number of employees of the private enterprises in the ISO 500 serve as significant indicators. As the effects of the pandemic waned, several factors were at play in the developments in industrial employ- ment in 2021. Firstly, the return to economic life led to a normalization in working life. The restrictions’ being gra- dually lifted contributed positively to employment. Meanwhile, pandemic support was gradually stopped du- ring the year, and the ban on the termination of employ- ment contracts was repealed. 2020/2019 34.7% 2.9% Employees (Persons) Salaries and Wages Paid (TL Million) Change (%) 2021/2020 6.1% 14.5%MAIN FINANCIAL INDICATORS The distribution of debt and equity is one of the important indicators demonstrating the financial structure of enterprises.OCTOBER 2022 49 As is known, the public provided affordable borrowing op- portunities to support sectors and enterprises during the pandemic in 2020. Industrial enterprises also leveraged these opportunities to a substantial extent and the ratio of debts remained high. Unlike 2020, it was enterprises’ activities rather than fi- nancial conditions that determined their debt and equity capital developments in 2021. In 2021, when exports, production and sales increased significantly, industrial enterprises financed growth mostly through borrowing. Despite making high profits, equity capital expansion op- portunities could not be enhanced. The share of debt in capital structure excee- ded the 70 percent mark for the first time. The resource structure, which represents the distribution of debt and equity capital within the ISO 500, showed a development in favor of debts in 2015. The share of debt in the ISO 500, which exceeded the 60 percent mark for the first time in 2015, was realized as 68.4 percent in 2019 and 2020. In 2021, the share of the total debt climbed by a further 2.3 points to reach the 70 percent threshold. During the year in question, the share of debts was 70.7 percent, and the share of equity capital was 29.3 percent. Thus, while the share of debts remained at its highest level, the share of equity capital remained at its lowest. In 2021, the ratio of the debts of private enterprises recor- ded a 1.5-point increase, rising from 70.1 percent to 71.6 percent. In turn, the share of their equity dropped to 28.4 percent. The resource structure of the private sector saw the highest deterioration in debts. The share of equity capital of public enterprises fell to 44 percent while the share of debt rose to 56 percent. The share of total debt in public enterprises exceeded the 50 percent mark for the first time. CHANGE IN DEBT AND EQUITY IN THE FUNDING STRUCTURE (%) 2019 68.4 31.6 2020 68.4 31.6 2021 70.7 29.3 100 80 60 40 20 0 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 CHANGE IN DEBT AND EQUITY IN THE FUNDING STRUCTURE OF PRIVATE ENTERPRISES (%) 7080 69.4 70.6 70.1 71.6 0102030405060 Total DebtEquity Total DebtEquity 57.3 61.1 60.0 63.0 65.0 65.6 37.0 2017 2016 2015 2014 2013 2012 40.0 38.9 42.7 35.0 34.4 2018 30.6 2019 2020 2021 29.4 29.9 28.4 In 2021, the share of total debt topped 70% for the first time.Next >