Koç : KOÇ HOLDING POSTS 385.9 BILLION TL IN CONSOLIDATED REVENUE IN THE FIRST HALF-YEAR WITH A COMBINED INVESTMENTS OF 14.9 BILLION TL

August 16, 2022

KOÇ HOLDING POSTS 385.9 BILLION TL IN CONSOLIDATED REVENUE IN THE FIRST HALF-YEAR WITH A COMBINED INVESTMENTS OF 14.9 BILLION TL

KOÇ HOLDİNG CEO LEVENT ÇAKIROĞLU:

"SUPPORTED BY OUR SOLID BALANCE SHEET, DISCIPLINED MANAGEMENT APPROACH, DIVERSIFIED PORTFOLIO STRUCTURE, AND ROBUST SUPPLY CHAIN, AT KOÇ GROUP WE HAVE ACHIEVED SUCCESSFUL RESULTS DESPITE ONGOING GLOBAL UNCERTAINTIES, VOLATILITIES CAUSED BY THE RUSSIA-UKRAINE WAR, AND CHALLENGING MARKET CONDITIONS DURING THE FIRST HALF OF THE YEAR. HAVING FAITH IN OUR COUNTRY, WE CONTINUED WITH OUR INVESTMENTS, THE OVERALL VALUE OF WHICH WAS DOUBLED AS COMPARED WITH THE SAME PERIOD OF THE PREVIOUS YEAR AND AMOUNTED TO 14.9 BILLION TL. DURING THE REST OF THE YEAR, WE WILL CONTINUE OUR DISCIPLINED AND PRUDENT APPROACH IN THE CONDUCT OF OUR OPERATIONS WHILE KEEPING UP TO CREATE VALUE FOR OUR COUNTRY AND OUR GROUP."

Koç Holding generated a consolidated revenue of 385.9 billion TL and made a combined investment of 14.9 billion TL in the first half of 2022. Commenting on the financial results, Koç Holding CEO Levent Çakıroğlu said: "Supported by our solid balance sheet, disciplined management approach, diversified portfolio, and robust supply chain, at Koç Group we have achieved successful results despite ongoing global uncertainties, volatilities caused by the Russia-Ukraine war, and challenging market conditions during the first half of the year. Having faith in our country, we continued with our investments, the overall value of which was doubled as compared with the same period of the previous year and amounted to 14.9 billion TL, which brought our total investments over the past 5 years to 65 billion TL. During the rest of the year, we will continue our disciplined and prudent approach in the conduct of our operations while keeping up to create value for our country and our Group.

"At Koç Group, we have faith in our country's future and continue to work and be productive whatever circumstances might prevail" said Levent Çakıroğlu, adding: "As was the case in previous years, together with our Group companies, we have been once again ranked at the top of the Istanbul Chamber of Industry's "Turkey's Top 500 Industrial Enterprises" list, with Tüpraş coming in first, Ford Otosan second, Arçelik eighth, and Tofaş tenth. In the Turkish Exporters Assembly's "Turkey's Top 1000 Exporters" survey, Ford Otosan once again placed first with Tüpraş also coming in third and Arçelik in sixth place."

Levent Çakıroğlu: "We continue to pioneer the digital transformation of the automotives industry not only through the efforts of our companies but as Koç Holding as well."

Noting that as the Turkish automotives industry undergoes its transformation, the Koç Group is resolutely carrying on with investments that increase Turkey's competitive strength, Levent Çakıroğlu continued: "Through our Automotives Group companies we continue to successfully play a leading role in the sector's production and exports. We continue to pioneer the digital transformation of the automotives industry not only through the efforts of our companies but as Koç Holding as well. Our

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investments in electrification in particular are also consistent with the transformation of our business models, products, and services for the sake of combating the climate crisis and are in line with our goal of becoming carbon neutral by 2050."

Pointing out that the process involving the transfer of control of Ford Motor Company's Craiova plant in Romania to Ford Otosan had been completed, Levent Çakıroğlu said: "With the Craiova plant and its operations having become important elements of Ford Otosan's production network, the engineering and production capabilities of our company will be expanded to a global scale. Tofaş for its part authored successful financial and operational results also in this quarter, and sustained its overall leadership in the domestic passenger cars and light commercial vehicles market with its Fiat brand in a reproduction of the last three years' performance."

Levent Çakıroğlu: "The transfer of Entek shares held by Koç Holding and Aygaz to Tüpraş is a significant move in our Carbon Transformation Program as well as in our Group's strategy of pursuing growth in sustainable and renewable energy sources."

Noting that the process of Tüpraş's acquisition of Entek shares in line with the goal of making the conduct of Koç's Energy Group companies' operations more effective was still going on, Levent Çakıroğlu said: "We are gearing up to transfer Entek shares held by Koç Holding and Aygaz to Tüpraş, a project that is to be submitted for the approval of all three companies' shareholders at extraordinary general meetings that are to be held on August 25, 2022. Thus, we will be carrying through a significant move in our Carbon Transformation Program as well as in our Group's strategy of pursuing growth in sustainable and renewable energy sources. Speeding up its own investments in line with the Carbon Transformation Program, Tüpraş for its part has begun installing a 12.6 MW solar power plant at its Kırıkkale refinery. Tüpraş has also recently taken another important step with the signature of a licensing agreement with technology firm Honeywell as part of its plan to make a sustainable aviation fuel."

Commenting on the Koç Group companies' performance during the first half of 2022, Levent Çakıroğlu said: "Continuing to perform strongly during the first six months of the year and create added value for the country and all of its stakeholders, Yapı Kredi boosted its capital and liquidity indicators to even higher levels."

Levent Çakıroğlu: "Recognizing that past and current successes never guarantee future ones, we are taking our Group forward by taking bold steps that strengthen our R&D and innovation competencies."

Noting that they are readying the Koç Group for its upcoming century of competition, Levent Çakıroğlu said: "Recognizing that past and current successes never guarantee future ones, we are taking our Group forward by taking bold steps that strengthen our R&D and innovation competencies. Attaching great importance to cooperating with all stakeholders in our ecosystem, we try to make the most efficient use of national and international support mechanism in the conduct of our R&D operations and in pursuit of innovation. With this in mind, we are prioritizing the participation in the EU Framework Programs, the world's biggest civil research and innovation program. During the Horizon 2020 program, which ran from 2014-2020, Koç University took part in 54 projects while the Koç Group companies also took part in 75. That is why the Koç Group companies were the top four entries in TÜBİTAK's list of "Most Successful Turkish Industrial Organizations" while Koç University was the most successful educational institution in the TÜBİTAK- published list by a wide margin. With the same motivation, we have also moved quickly ahead with Horizon Europe, the framework program covering the years 2021-2027. A few days ago, we announced that we've set up a special mentoring program in which our colleagues who have

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experience of playing active roles in EU framework programs will be providing support to stakeholders wishing to be part of the Horizon Europe process."

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