Esteemed Shareholders, Business Partners and Distinguished Employees;
Due to its rapid spread and devastating impact, the COVID-19 disease, which first emerged in China at the end of 2019 and spread rapidly around the world, was at the top of the agenda of all countries last year. As a result of the measures taken against the pandemic and the threat it poses to human life, all over the world, life has come to a standstill, with suspensions in education and the closure of restaurants, shops, factories and other workplaces, while activities in many areas have all but been terminated, such as those in the tourism and aviation sectors.
Although we are for the first time experiencing such a devastating pandemic, this is not the first the world has experienced, and it probably will not be the last. What is important is to overcome the pandemic in question as quickly as possible and with the least damage; to manage this process well in every field, from health to the economy, and in all social fields; and to prepare for the future in the best way possible.
The global economy is experiencing its worst recession since World War II, but it should not be forgotten that crises also offer opportunities besides the severe problems they cause. For Turkey to overcome this global crisis and to gain an advantageous position, and achieve its goal of avoiding income and job losses in both the new economy and in working life following the pandemic, we must all align our thoughts and strengths, and work together as the public and private sectors, and as employees and employers.
The NUROL Group of Companies, in line with the measures taken by our state, immediately took the necessary measures in all of our companies to protect the health of our employees and their families in the face of the COVID-19 threat as it spread around the world and throughout our country, including the implementation of a flexible working system.
Throughout this period, our priority has been to protect the health of our employees, to avoid job losses and to reduce the risks, leading to an increase in the importance of virtual and remote access. As NUROL Holding, the investments we have made into tools to support digital communication and to develop our technological infrastructure, from the past to the present, have supported our rapid adaptation to this current crisis.
If we summarize the situation from an economic perspective;
In the OECD Economic Outlook report it is emphasized that although the global GDP is projected to grow by an average of 4 percent year-on-year between 2021 and 2022 following a 4 percent decrease in 2020, faster growth can be expected based on recent developments. It is expected that the dollar/TL exchange rate will remain below the 8.00 level for the first half of the year, and will be around 8.5 for the year as a whole. The upward trend in inflation has resulted in the Central Bank increasing the policy interest rate, which in turn has affected expectations in the market benchmark interest rate. The expected inflation for the first quarter of the year hovers at around 14–15 percent.
Investments in 2020 have been challenging due to the ongoing problems that are affecting the entire world and our country, but despite this, we can still say that we had a good year in economic terms. With the normalization and recovery that we hope to see next year, we aim to increase our turnover by cautiously continuing our investments.
GROUP Companies at a glance;
NUROL Holding has been carrying out its operations unabated in a variety of sectors, including those devoted especially to construction and contracting, and to defence, mining, advanced technologies, real estate investment, finance, tourism, energy, trade and services, both at home and abroad, taking advantage of the superior high-quality brand that we have created based on our half-century of experience and knowledge. Our primary objective, shared by close to 40 subsidiaries, affiliates, branches and project partnerships and around 15,000 employees, is to make the maximum use of our capacity, and to create jobs and value-added for the national economy, while efficiently managing risk through a balanced portfolio.
We have been carrying out operations in every sector in which we are involved in Turkey in a manner appropriate to NUROL’s reputation since our establishment, while taking care to undertake successful projects abroad and to represent our country in the best possible manner, without compromise to our universal values.
NUROL Construction, the flagship of the NUROL Group of Companies, operates across a large area incorporating almost 20 countries, from Algeria and Morocco to the UAE, Saudi Arabia, Libya, Qatar, Georgia, Romania, Hungary, Russia, Turkmenistan, Kazakhstan, Uzbekistan, Iraq and Afghanistan. (*)
Among our ongoing domestic projects, the foundations of the Izmir Metropolitan Municipality Çiğli Tram Line Construction Project were laid in November 2020, which includes the construction of a 12-km 15-station tramline, transformer buildings, a tramway bridge, electromechanical works and platform extension works to the Konak Tram Line stops currently in operation.
The Brasov - Targu Mures - Cluj - Oradea, Section 3B: Mihaiesti - Suplacu de Barcau, Subsection 3B5: Nusfalau - Suplacu de Barcau Highway project, which started in 2020 and is scheduled for completion in 24 months, is of critical importance in connecting Romania to Western Europe, and is among our most important overseas projects.
(*) No sanctions were adopted to the specified countries at the contract date of the projects.
All infrastructure works within the scope of the US$300 million Riyadh City South Phase-4 Infrastructure Works Project, signed with the United Arab Emirates in September 2020, including road works, rainwater and sewerage networks, irrigation network, telecommunications for 3,199 villas on a 960-hectare project area, are planned to be completed in February 2023.
Aiming to fulfil the needs of the Turkish defence sector for modern factories and facilities with high production capacity and with advanced technological infrastructures, NUROL Makina, NUROL Teknoloji, FNSS and NUROL BAE Systems (BNA) are continuing their efforts in efficient, reliable, innovative and indigenous design, engineering and production, offering integrated solution packages that are tailor-made to suit user requirements. By generating employment, establishing a supply chain and transferring technology, our companies continue to create economic added value for our country not only through their achievements in Turkey, but also through their exports to other nations, in which they have undersigned many important projects.
TÜMAD Mining launched its activities in 2011 with advanced explorations in potential mining areas, but without compromise on quality, and with respect for nature, the environment and human life. The company is now among the leading gold producers in the country, and is engaged in sustainable mining projects that target economic and social development with an environmental protection approach. Accordingly, our company is continuing its activities in the İvrindi and Lapseki enterprises, and holds many mine exploration licenses.
All mining operations and projects are carried out using the best available technologies with due attention paid to OHS, the Environment and Community Relations, and with Quality and Integrated Management systems aimed at meeting national and international standards.
TÜMAD promotes economic and social growth in the regions in which it operates by safeguarding the environment, maintaining open and consistent communication based on mutual confidence and respect for values, and gaining local support through its understanding and management of social acceptance, complaints and feedback, stakeholder engagement, local purchasing and employment.
Overview of NUROL Holding’s financial figures for 2020;
Our consolidated assets amounted to TL 29 billion as of December 31, 2020. With a turnover of TL 9 billion in the same period, our Group is targeting a total turnover of TL 12 billion by the end of 2021. As a result of the ambiguity associated with the effects of the pandemic on the unforeseen market and economic fluctuations, we may need to reconsider our targets in the upcoming period and set new targets in line with the current situation.
We strive to improve our services in line with the demands of our times through our investments, which have always, first and foremost, contributed to the development of our country through inflows of foreign currency into the national economy, and through our works to increase employment. In addition to the commercial accomplishments of our companies, we continue supporting projects that bring social benefit to many fields, first in education, but also culture, the arts and sports, through the activities of the NUROL Foundation, which was established to oversee our social responsibility contributions. Guided by our respect for human life and the environment, we are engaged in various social activities throughout the country, primarily in the regions in which we have made investments, with a view to protecting our natural and cultural heritage, and where we continue to build schools, libraries and mosques for our nation.
We believe that it will be more meaningful for our companies to achieve sustainable growth by functioning not only as profit-oriented centres but also as institutions that add value to the lives of our social stakeholders, while at the same time protecting the environment. We have made it our mission to contribute to efforts to ensure our country keeps up with the rising level of prosperity, while playing a leading role and setting a good example to society in all of the corporate and social responsibility and sponsorship projects in which it is involved. We consider it a priority to leave behind a liveable world for future generations, and to carry out our operations meticulously in all fields in which we are engaged.
Based on our principles of continuous improvement and transparency, we present the goals of our companies in our sustainability report this year, and we are looking forward to following up our commitments together with you, our stakeholders, in the upcoming periods. With an awareness that such improvements contribute not only to our Group, but also to the radical transformation of the national economy, we attach great importance to the continuity and interaction of the value chain, allowing us to grow both in the foreign markets and at home.
In conclusion, it is clear that after the pandemic has lifted, social, economic and business life will not be the same as before. Like the rest of the world, it is imperative that we adapt to the new situation in the fastest and most efficient way possible. I believe that our country can overcome this pandemic by continuing in its efforts and taking the necessary precautions, as always in unity and solidarity, and with the widespread application of vaccines.
In the hope that these difficult days will be left behind as soon as possible, and that we will never find ourselves in such a situation again, I would like to thank our Founding Shareholders; all members of the NUROL FAMILY who have been with us, working with devotion, from the past to the present; and all of our business partners. I hope we will see healthy and peaceful days again soon.
Chairman of Board