Kalekim 2022 Financial Results

Kalekim 2022 Financial Results Kalekim has announced its 2022 financial results. Carrying its consistent success throughout the year to year-end, Kalekim completed 2022 with performance exceeding its targets, despite pandemic, war and energy crisis in global markets. Kalekim increased its net profit from approximately TRY 213.2 million in 2021 by 146% to reach a total net profit of TRY 524.7 million as of end of 2022, with the contribution of its new investments. Increasing domestic sales by 161% and foreign sales by 171% compared to the previous year, Kalekim crowned its successful quarterly performance with year-end figures. Advancing its success year after year with innovative products in construction chemicals, Kalekim shared its financial results for the January-December 2022 period through the Public Disclosure Platform. Carrying its consistent performance throughout the year to year-end and demonstrating strong growth performance, Kalekim completed 2022 with success exceeding its targets. With new investments and strong partnerships made domestically and internationally in 2022, Kalekim expanded its production capacity and marketing network further. Despite the energy crisis deepening in global markets due to the Russia-Ukraine war, Kalekim increased its net profit from approximately TRY 213.2 million in 2021 by 146% as of end of 2022, reaching a total net profit of TRY 524.7 million. "2022 was a year we focused on investments and partnerships" Haluk Alperat, Chief Financial Officer of Kale Holding, noted that in 2022 they focused on investment plans domestically and internationally in line with their growth targets, and shared the following regarding the process Turkey went through and the investments they made during the year with its support: "As a country, we are going through a difficult period. On 6 February, two consecutive earthquakes struck Kahramanmaraş province, and we lost tens of thousands of lives. Our condolences to our nation. In the face of this disaster, we continue to act with one heart and heal our wounds. Kalekim moved to provide support from day one together with group companies within the Kale Group, volunteer employees, domestic and foreign dealers, and suppliers. We organized our in-kind and cash support through Kaleseramik Education, Health and Social Assistance Foundation, and reached those in need under the coordination of AFAD and other relevant official and private institutions. In line with the needs identified by the governorates in the disaster area, we dispatched specially designed accessible toilets for persons with disabilities suitable for both shower and toilet use, totaling 170 hygiene containers, and a total of 253 containers, 79 of which for housing and 4 for kindergarten, to the region. In addition, we said that if needed, we could open our facilities in Mersin and Mardin for use. For us, 2022 was a year we focused on investments and partnerships in line with our growth targets. At the beginning of the year, we acquired a 75% stake in Lyksor Kimya A.Ş., which operates in the construction chemicals and concrete technologies field in the domestic market, for approximately TRY 140 million. This investment contributed TRY 439 million to our 2022 revenue. Furthermore, within the scope of our growth targets abroad, we successfully concluded our investment in Romania, which we had been working on since last year, at the beginning of this year. Kalekim Romania SA, which we established jointly with a strong local partner operating in the construction sector in Romania, began its operations in this country. We continue our activities with the warehouses and sales outlets we opened in Constanța and Bucharest. We also plan to open a new branch in Duhok city in Iraq. With this branch, we aim to reach consumers faster in both Northern Iraq and the remaining regions of Iraq. Additionally, in line with rising energy costs and our sustainability targets, we decided to make an investment of approximately USD 6 million in solar energy in the coming period." he said. "It was a year we turned challenges into success" Timur Karaoğlu, General Manager of Kalekim: "We are going through a difficult period due to the earthquakes we experienced. However, we are a nation that knows very well how to act in unity and solidarity in the face of difficulties, with our history full of examples of this. In this earthquake disaster, we will heal our wounds and stand up again with the same spirit of solidarity. As Kalekim, together with subsidiary companies of Kale Group, we took action from day one, supporting the region with in-kind and cash aid. Once again, I wish my condolences to our entire nation for all the lives we lost. As a company, we will continue to support the region and the earthquake victims in line with our responsibilities, just as we did on the first day. As Kalekim, in 2022 we crowned the financial success we advanced step by step each quarter, exceeding our targets as of year-end. In a year overshadowed by pandemic, war, energy crisis and global recession concerns, we turned challenges into success with the right investment and partnership moves we made. As of year-end, we increased our net sales revenue by 165% compared to the previous year to TRY 2.14 billion. In this process, our net period profit increased by 146% compared to the previous year, reaching TRY 524.7 million. In 2022, we also improved our operating profit margin by 420 basis points, increasing it from 15.6% to 19.8%. Similarly, we increased our domestic sales by 161% and foreign sales by 171% compared to the previous year, achieving significant success in both national and international markets. In the coming period, we aim to advance this success further with new investments and partnerships. "We decided on a USD 6 million investment in solar energy" One of our most important investment targets in the coming period will be clean energy. In line with both rising energy costs and our sustainability targets, we made an important investment decision for clean energy. In order to benefit more from clean energy in production, we plan to make investments especially in solar energy in the coming period. Within this scope, we decided to install 5 MW (MegaWatt Inverter) on 99,520 square meters of the 171,477 square meters of land in 5 different parcels in the Kaleseramik Special Organized Industrial Zone in Yerköy, Yozgat, and 0.96 MW on the roof of our factory in Balıkesir, for a total of 5.96 MW. We have also completed the EIA compliance application process for our Yerköy investment. In the solar energy field, evaluating alternative offers, we aim to make an investment of approximately USD 6 million with company resources and green financing opportunities in the coming period. We believe that this investment, apart from contributing to our green transition as a company, will make very important contributions to our country's 2053 Net Zero emission targets."