Chairman's Message

Esteemed Shareholders, Business Partners and Distinguished Employees,

NUROL Holding has been carrying out its operations unabated in a variety of sectors, including those devoted to construction and contracting, 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 maximum use of our capacity, and to create jobs and value added for the national economy, while efficiently managing our risks through a balanced portfolio. We have been carrying out operations in Turkey in a manner appropriate to NUROL’s reputation since our establishment, while taking care to undertake successful projects abroad and represent our country in the best possible manner, without compromise to our universal values.

We have made it our mission to contribute to the efforts to ensure our country catches 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 we have been involved. 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 protecting the environment. We consider it a priority to leave a liveable world for future generations and to meticulously carry out our operations in all fields in which we are engaged.

Economic developments at a glance:

As I am sure you are aware, the adverse effects of the economic contraction were observed in all sectors following the economic recession in the last quarter of 2018 that carried over into the first couple of months of 2019. While the Turkish economy grew by 6 percent over the last quarter of 2019 when compared to the corresponding period in the preceding year, annual growth was only 0.9%. The US$/TL exchange rate, which dwindled to TL 5.32 in February 2019, closed the year at TL 5.95. Throughout the year, investments continued to decrease due to the increasing costs of financing, the difficult lending terms, geopolitical risks and the global slowdown. After entering 2020 with such low momentum, global trade, which was already in decline, will continue to shrink significantly as a result of the coronavirus pandemic that has spread

around the world after first emerging in China. This situation poses a threat to the world that is much greater than first anticipated. In fact, it has been reported that the 0.4 percent contraction in global trade witnessed in 2019 was the first major decline observed in the past decade since 2009, when a global crisis was witnessed due in part to the US-led trade wars.

It is too early to predict how fiscal policies, interest rates, exchange rates and inflation will be shaped in the coming period,  and it remains to be seen what kind of economic transformation will emerge in this period that is rife with uncertainties. We can say that it will be quite difficult to achieve 5 percent economic growth that the government set for 2020, considering the current circumstances. Unfortunately, the negative developments observed at a global scale since the beginning of the year indicate that there will be a high exchange rate risk in 2020.

GROUP Companies at a glance;

NUROL Construction’s reference projects include infrastructure projects, highways, expressways, railway and metro systems, tunnels, gas/oil pipelines and related facilities, irrigation/drainage systems, dams and hydroelectric power plants, water supply and waste water systems, urban/industrial treatment plants and landfills, turn-key production plants and industrial complex projects, industrial parks, business and trade centres, high-end/mass housing and social centres, and the company takes pride in being included on the list of the world’s leading international contractors. Raising its quality through the innovative technology and business models that it has developed while carrying out major projects at home, NUROL is successfully representing our country abroad through projects carried out in close to 20 countries, including Algeria, Morocco, UAE, Saudi Arabia, Libya, Qatar, Georgia, Romania, Hungary, Russia, Turkmenistan, Kazakhstan, Uzbekistan, Iraq and Afghanistan. In addition, through our continued business development efforts, we are seeking to expand our international operations in Lebanon, North Africa, Sub-Saharan Africa, Bosnia-Herzegovina, Kosovo, Albania, Macedonia, Serbia, Montenegro, Kuwait, Kazakhstan, Azerbaijan, Iran, Afghanistan, Pakistan, India, Romania and Ukraine. Serving toward the fulfilment of the needs of the Turkish defence sector, NUROL Makina, NUROL Teknoloji, FNSS and NUROL BAE Systems (BNA) are continuing their efforts in efficient, reliable and innovative production, design and engineering, 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 countries in which they have undersigned many important projects.

TÜMAD Engineering mines gold in line with the principles of sustainability, respecting human life and the environment, and operating with the motto “Mine for the People” at its mines. Our company has secured a place among the leading gold production companies as the new driving force of our country, thanks to its projects in which “the best applicable technologies” are utilised to meet the performance requirements of the European Bank for Reconstruction and Development (EBRD). TÜMAD is the first Turkish company to be presented with two international project funding awards in the field of natural resources. The company launched its mining operations in 2011 and it continues its operations today in exploration of minerals in Turkey and abroad, in addition to its Lapseki and Ivrindi projects, which were entered into operation in a short period of time.

NUROL GROUP’s financial data at a glance:

Our consolidated assets were worth approximately TL 25 billion as of 31 December, 2019. With a turnover of TL 9.1 billion in the same period, our Group had aimed to bring its turnover to TL 9.6 billion by the end of 2020. We will, however, need to reconsider our goals for the coming period in parallel with unforeseen changes in the market and economy, and to establish new goals that are commensurate with the current situation.

Through the investments we have made that have contributed to national development for more than half century, we strive to provide better and more qualified services in line with the demands of our times, making contributions to the national economy and to the creation of new jobs through the inflows of foreign currency we bring. In addition to the commercial accomplishments of our companies, we continue supporting projects that bring social benefit to many fields, including education, culture, the arts and sports, through the activities of the NUROL Foundation, which was established in order to fulfil our social responsibilities. Guided by our respect for human life and the environment, we are engaged in various social activities throughout the country, including in the regions in which we have made investments, with a view to protecting our natural and cultural heritage, and we continue to build schools, libraries and mosques for our nation.

We share the concerns of the international community regarding our future, stemming from the coronavirus pandemic that was first identified China, but which has spread around the entire world. I strongly believe that we will put these challenging times behind us through unity and solidarity, as has always been the case. I thank all of the members of the NUROL FAMILY, particularly our Founding Shareholders, who have always worked with full devotion  and who have supported us. We hope that our country and the world as a whole will soon return to peaceful times.

Sincerely yours,

Chairman of Board