Message from CEO

Dear Stakeholders,

In 2025, Anadolu Group will celebrate the 75th anniversary of its foundation. As the leadership team, our mission is to ensure that this special family of 100,000 people generates value for all stakeholders. Alongside a strong growth-oriented perspective based on corporate governance and transparency, we are committed to achieving efficient results through a holistic approach that includes principles such as talent development, evaluation of new opportunities, diversity and inclusion, collaborative synergy, and social and environmental responsibility. Our aim has always been to add value in every area we operate. In addition to exceeding customer expectations with our products and services, we strive relentlessly to achieve excellence. Our dedication to value creation enhances customer satisfaction, strengthens our brands, and positions Anadolu Group as a trusted business partner wherever we operate. We aim to maintain Anadolu Group’s growth by building long-term relationships, promoting customer loyalty, and continuously evaluating and improving our processes by listening to our customers and aligning our strategies with their needs.

Despite the geopolitical tensions and economic difficulties we face in the regions where we operate, our strong positioning in the markets, proactive management approach, and diversified portfolio have enabled us to sustain our growth and provide a healthy balance sheet structure in 2024. In 2023, we increased our total consolidated sales by 17.5% to 375.6 billion TL, and our total assets reached 391.8 billion TL. In the first half of 2024, supported by our flexible and resilient business models, geographic and sectoral distribution, and efficiency and cost-focused structure, our consolidated sales revenue grew by 4.4% year-on-year, while EBITDA decreased by 9.2% year-on-year due to significantly increasing cost pressures. Our consolidated net profit for the holding company was 4.0 billion TL during this period. Excluding the effects of TMS29 (inflation accounting), we increased our sales revenue by 77.5% and EBITDA by 72.5%.

Evaluating the performance of our main operations; despite all the challenges in the beverage segment in the countries we operate in, we focused on quality growth and operational excellence, increasing both our volumes and EBITDA margin in the second quarter. In the beer group, strong volume performance not only exceeded expectations but also allowed us to strengthen our position in most of our markets. Thanks to tight management of operating expenses and effective use of risk management tools, the pressure on profitability was partially balanced. Migros continues to show strong revenue growth, gain market share, and maintain disciplined balance sheet management. The automotive segment was naturally affected by slowing domestic automotive market growth and increased competition conditions following last year’s very strong performance.

In a rapidly changing global environment, we are renewing our business models to develop and placing sustainability at the center of our growth strategy. We continue to contribute to our ecosystem by working with approximately 30,000 suppliers. Our investments in digitalization, R&D, and innovation reached 880 million TL. AG Anadolu Group Holding, Migros, Coca-Cola İçecek, and Anadolu Efes are listed in the BIST Sustainability Index and are recognized as leading companies in their sectors by the London Stock Exchange Group. We are committed to upholding the highest standards of ethics, governance, and transparency. We ensure that our decision-making processes are transparent, accountable, and aligned with our core values. Our corporate governance rating is 9.57. We strive to build trust with our stakeholders by communicating openly, honestly, and ethically in all our interactions. Maintaining these high standards is a factor that preserves Anadolu Group’s reputation and ensures trust in our business practices.

People are at the heart of Anadolu Group's success. We are committed to supporting the well-being, safety, and development of our employees, customers, and communities. Anadolu Group works to create a brighter and more prosperous future for everyone by investing in initiatives that support education, health, and social development. In 2023, we invested approximately 2 billion TL in social and community benefit initiatives. Our investments in occupational health and safety reached 284 million TL. Through our innovation platform "Bi-Fikir," we launched 7,300 quick applications and 2,600 projects. We know that our most significant asset is our talented workforce. We are determined to create an environment where everyone can reach their full potential. We offer talent development programs that promote personal and professional growth for all employees, providing mentoring opportunities and a supportive network.

We believe that a diverse workforce composed of individuals from different backgrounds, experiences, and perspectives enhances innovation and success. In our operations across 20 countries, colleagues from 40 nationalities enrich our collective mind. We pledge to foster an inclusive environment that embraces diversity, provides equal opportunities, and values everyone’s contributions. Our belief in diversity and inclusion unlocks new opportunities, supports our reach into global markets, and propels Anadolu Group to unprecedented successes.

As Anadolu Group, we are deeply aware of the importance of protecting nature and the world. We actively contribute to protecting and restoring our planet's ecosystems, supporting responsible resource management, reducing our carbon footprint, and promoting biodiversity. Our commitment to the future of nature extends to every aspect of our operations. In line with our goal of becoming a net-zero company, we are conducting efficiency studies and implementing projects. Our total investment in environmental initiatives has tripled to reach 1.5 billion TL.

Within the framework of our strategy to focus on our core business lines and utilize our balance sheet as efficiently as possible, we will continue to invest in adding value in every area we operate and supporting our long-term growth. We recognize our responsibility to society and the environment. We will actively integrate sustainable practices into our operations, strive for responsible resource management, and continue our efforts. Our priorities will remain close ties with consumers, operational efficiency, cost management, net cash flow, effective and disciplined financial management, digitalization, and sustainability efforts. I would like to thank all my colleagues contributing to our group's efforts and all stakeholders who support us.

#ProudlyAnadolu

Burak Başarır
CEO

October 2024