Koc : KOÇ HOLDING POSTS TL 71.3 BILLION CONSOLIDATED TURNOVER AND TL 3.8 BILLION NET PROFIT FOR THE PARENT COMPANY IN THE FIRST NINE MONTHS OF 2017

November 9, 2017

KOÇ HOLDING POS TS TL 71.3 BILLION CONSOLIDATED TURNOVER AND TL 3.8 BILLION NET PROFIT FOR THE PARENT COMPANY

IN THE FIRST NINE MONTHS OF 2017

KOÇ HOLDING CEO LEVENT ÇAKIROĞLU: "AS WE CONTINUE TO WORK FOR THE ECONOMIC AND SOCIAL DEVELOPMENT OF OUR COUNTRY, WE REMAIN FIRMLY COMMITTED TO OUR GLOBAL GROWTH OBJECTIVES. WE HAVE MADE COMBINED INVESTMENTS TOTALLING TL 4.6 BILLION IN THE FIRST HALF OF THE YEAR, AND INCREASED OUR COMBINED EXPORTS BY 16% YEAR-ON-YEAR ON A US DOLLAR BASIS. OUR COMPANIES HAVE PERFORMED SUCCESSFULLY IN EVERY SECTOR. THE KOÇ GROUP CONTINUES TO BE A POWERFUL CONTRIBUTOR TO THE NATION'S ECONOMY."

Koç Holding has posted total consolidated turnover of 71.3 billion Turkish liras and net profits of 3.8 billion Turkish liras for the parent company in the first nine months of 2017. Assessing Koç Holding's financial results for the first nine months of 2017, Koç Holding CEO Levent Çakıroğlu says: "As we work for the economic and social development of our country, we remain firmly committed to our global growth objectives. Our priorities in production, employment, R&D, innovation and growth in foreign markets remain unchanged. We have made combined investments totalling 4.6 billion Turkish liras in the first nine months of the year, and also increased combined exports by 16% year-on-year on a US Dollar basis."

Levent Çakıroğlu: "We have maintained a solid performance, supported by the activity environment."

Commenting on the favourable activity environment of the first nine months of the year, Levent Çakıroğlu emphasises that the Koç Group maintains its successful performance. He says, "Supported by our investments of over TL 30 Billion over the past five years, our companies have performed successfully in every sector.' Pointing to the increase of Turkey's automotive sector exports since the beginning of the year, Çakıroğlu adds, "Ford Otosan exports continued to grow by 12 % in total in the first nine months of the year, making Ford Otosan the leader in the European commercial vehicle sector for the third year running. Tofaş, in the meanwhile, has continued its successful performance thanks to the high contribution of the Fiat Egea family and grew its domestic market share. Total sales grew by 17 %. Türk Traktör's exports to over 130 countries represent 87% of Turkey's total tractor exports."

Levent Çakıroğlu adds, "In the first nine months of 2017, Tüpraş continued working at full capacity and increased sales volume by 6.8 %. Yapı Kredi grew its digital banking client numbers by 35 % in the past year and mobile banking clients by 56 %; the bank proceeds with

applications that direct digital banking. Yapı Kredi World maintains its leadership of the credit card market."

Levent Çakıroğlu: "Our pursuit of growth in the renewable energy area continues." Remarking that the highest bid for the 49-year licence for the Menzelet and the Kılavuzlu Hydroelectric Plant came from Entek, a Koç Holding-Aygaz joint venture, Çakıroğlu says, "This particular privatisation is crucial to our strategy of growth and diversification of our portfolio in the renewables energy sector." Levent Çakıroğlu: "Arçelik has increased its total turnover by 31 % and international sales by 33 %"

Arçelik has maintained its leadership in the sector, says Levent Çakıroğlu, pointing to the increase in total turnover by 31 % in the first nine months of the year, before adding, "Strong demand in the appliance market has had a positive impact on Arçelik's domestic income in the first nine months of the year. Continuing to grow in the European built-in appliance sector in particular, Arçelik's international sales rose by 33 %, aided also by the increased contribution of Pakistan and ASEAN markets. Having transformed all its processes into sustainable ones, Arçelik has excelled on the international stage by becoming the first and only Turkish industrial company to join the Dow Jones Emerging Markets Sustainability Index."

Levent Çakıroğlu: "Successful Eurobond issues contribute enormously to our economy" Yapı Kredi has reinforced its strong liquidity in the first nine months of the year with a solid financial performance, states Levent Çakıroğlu, referring to two Eurobond issues totalling US

$ 1.1 Billion in international markets. Remarking that Tüpraş had also strengthened its balance sheet with seven-year Eurobonds totalling US $ 700 Million, he highlights these successful Eurobond issues as an indication of trust in Turkey's economy. "They make an enormous contribution to the economy through the funding they attract" he states.