Polisan Holding Increases Consolidated Revenue by 150 Percent

Polisan Holding Increases Consolidated Revenues by 150 Percent Polisan Holding increased its consolidated revenues by 149.7 percent to approximately TRY 2 billion in the first half of 2022 compared to the same period of the previous year, while boosting combined revenues by 111.6 percent to approximately TRY 3.3 billion. Polisan Holding Chief Executive Officer Mehmet Hacıkamiloğlu attributed the positive results achieved despite global market uncertainties to their success in effective working capital management with a focus on cash generation. Mehmet Hacıkamiloğlu noted that in this period, Polisan Kansai Boya achieved good sales momentum through a new economic product line introduced to the market, while at Polisan Kimya, focus was placed on phenolic resins experiencing strong external demand, and trial production at the new resin facility under investment would begin as of September. He added that at Poliport, where they conduct port operations, they accelerated new tank investments as liquid cargo tank utilization reached full capacity. Polisan Holding, which demonstrated strong operational performance through its activities in chemicals, paints and coatings, port operations and real estate, its overseas operations, and business partnerships developed with two global giants, increased its consolidated revenues by 149.7 percent to approximately TRY 2 billion in the first half of 2022 compared to the same period of the previous year. The holding raised its consolidated EBITDA margin by 1.5 points to 19.4 percent and increased net profit by 298.2 percent to TRY 317 million. Polisan Holding also achieved success in combined financial results including Polisan Kansai Boya, growing combined revenues by 111.6 percent to approximately TRY 3.3 billion and raising combined EBITDA margin by 1.9 points to 18.3 percent. Polisan Holding's combined net profitability grew by 322.4 percent and reached TRY 328 million. Evaluating the financial results, Polisan Holding Chief Executive Officer Mehmet Hacıkamiloğlu noted that they managed the process well despite the slowdown in the Chinese economy, inflation exceeding expectations in the United States and Europe, and energy supply uncertainty in the shadow of the Russia-Ukraine war. Attributing the continuity they achieved in growth and profitability since 2020 when the pandemic emerged to good management of production costs, Mehmet Hacıkamiloğlu provided information about the current situation at Polisan Kansai Boya, Polisan Kimya, Poliport and Polisan Hellas.

Polisan Kansai Boya's Economic Product Line Achieves Positive Sales Momentum

Mehmet Hacıkamiloğlu, explaining that rising raw material costs and inflation pressure in the global market caused a slowdown in demand in Turkey's decorative paints market, stated: "At Polisan Kansai Boya, to both manage the process and offer quality to our customers at more economical prices, our new economic product line that we introduced to the market in the first half of the year received great appreciation. Beyond all this, we conducted effective communication work with our 5,200 dealers across Turkey and 363 stores of 3 retail chains we work with. We also strengthened our e-commerce operations. The successful strategy we implemented on both the product and operational sides provided significant positive contribution to the paints side." Mehmet Hacıkamiloğlu noted that they focused on marketing activities in 26 countries where they export paints and carried out work strengthening brand perception in their 127 overseas stores.

Tank Utilization at Poliport Reaches Full Capacity While New Tank Investments Continue

Providing information about the current situation at Poliport, their affiliated company conducting port operations, Mehmet Hacıkamiloğlu stated: "At our 200-meter dry cargo dock that completed maintenance and commenced operations in April, we made improvements in labor and equipment with a focus on productivity. While our tank utilization rates at the terminal reached full capacity, we are continuing our investments that will provide a 20,000 m3 increase in our liquid cargo storage capacity."

Export Revenues Rise with High-Value-Added Phenolic Resin Products

Mehmet Hacıkamiloğlu stated that product development work for external markets at Polisan Kimya, which will soon begin trial production at the new resin facility, continues at full pace. He elaborated: "We focused on high-value-added phenolic resin product groups and, prioritizing meeting strong external market demand, increased the share of formaldehyde product group exports in our total revenues to 20 percent." Listing export markets as "Romania, Bulgaria, Italy, Greece, Kosovo, Israel, Egypt and Australia," Mehmet Hacıkamiloğlu announced they would accelerate export work targeting the Balkans and Europe. He added that the strategy for construction chemicals and Adblue products used in diesel vehicles, product lines through which they operate on the chemistry side, continues with success.

Polisan Hellas Focused on Operational Profitability

Mehmet Hacıkamiloğlu noted that Polisan Hellas, an affiliate of Polisan Holding, is one of the only Polyethylene Terephthalate (PET) and advanced r-PET granule producers in Greece and the Balkans. He stated: "Throughout the pandemic, thanks to supply chain management and effective working capital management, we have successfully continued to implement our strategy to bring our increasing operational profitability to the best level. During this period, we conducted work to reduce energy consumption and made updates to our equipment. As global logistics problems slowly ease, we have begun work on different scenarios against Far Eastern competition likely to increase in the coming period."

Polisan Facilities Use Wind Energy

Mehmet Hacıkamiloğlu also addressed sustainability policies in his statement, noting: "As Polisan Holding, we continue our efforts against climate change by focusing on all environmental impacts we create and implementing strategies with our new vision, mission and values. In evaluations conducted by Refinitiv on behalf of BIST based on international sustainability criteria, our company was ranked 72nd among 353 companies in the global chemistry sector included in the evaluation based on Environmental, Social and Governance (ESG) performance score in the reporting period, and we continue to maintain our position in the Borsa Istanbul Sustainability Index for 6 years. From our group companies Polisan Kimya, Poliport and Polisan Kansai Boya, 50 percent of energy requirements are sourced from wind. We work with Turkey's largest renewable energy providers." Mehmet Hacıkamiloğlu also added that as a result of their sustainability work, they increased the carbon intensity reduction rate for direct and indirect controlled emissions (Scope I-II) compared to 2012 to 53 percent. He stated: "By using renewable energy sources, we aim to reduce carbon emissions from electricity energy use to zero by 2025."