Annual Report

Transcription

Annual Report

Annual Report 2008
BSH EV ALETLERİ SANAYİ VE TİCARET A.Ş.
Annual Report
2008
BSH Ev Aletleri Sanayi ve Ticaret A.Ş.
Head Offıce: Çakmak Mahallesi Balkan Caddesi No. 51
Ümraniye 34770 İstanbul Turkey
Tel: +90 (216) 528 90 00
Fax: +90 (216) 528 99 99
Factory: Organize Sanayi Bölgesi Fevzipaşa Mahallesi
Hayri Batur Cad. No: 70/72
59501 Çerkezköy / Tekirdağ
Tel: +90 (282) 736 60 00
Fax: +90 (282) 726 53 96
Corporate Communıcatıons
www.bsh.com.tr
kurumsal@bshg.com
B S H E V A L E T L E R İ S A N A Yİ V E T İ C A R E T A .Ş .
Design by Paralel Tasarım LTD
Tel: +90 (212) 311 47 80
Fax: +90 (212) 311 47 90
www.paraleltasarim.com.tr
Annual Report 2008
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CoolDuo
Annual Report 2008
4
About BSH
6
Our Vision
8
Management Review 2008
14 Our Values
16 Brands Portfolio
22 Energy Efficient and Innovative Products
32 Customer Oriented Innovation
38 Keeping Up With Our Responsibility
46 Chairman’s Message
48 Board of Directors
50 Management Report
55 Financial Statements
4
About BSH
5
About BSH
Bosch and Siemens Home Appliances
Group is the world’s third largest
producer of large domestic home
appliances. The group owns 14
brands and operates 44 factories
worldwide, its largest production
facility being in Çerkezköy, Turkey.
BSH is one of the leading companies in Turkey’s Home
Appliances industry, with its main brands Bosch and
Siemens, its special brand Gaggenau, and its local brand
Profilo. With 26% of the market share, BSH is the second
largest company in the white goods industry in Turkey.
The seventh largest foreign company in Turkey, with a
production capacity of more than 3.5 million units, BSH
operates 4 factories that produce refrigerators, cookers,
washers, and dishwashers. More than half of its annual
production is exported to countries around the world,
mainly in Europe, North America, Australia, and Africa.
The company’s success over the past 10 years has led
BSH to increase its investments in Turkey, making BSH
the largest foreign investor in the sector.
In Turkey, BSH markets its products through a strong
distribution network of around 4000 dealers. The
distribution of products in emerging markets, which
include Azerbaijan, Kazakhstan, Uzbekistan, Georgia,
Turkmenistan, Armenia, Kyrgyzstan, Tajikistan, Northern
Cyprus and Iraq, is handled out of Turkey and BSH’s
representative office in Almaty.
Through its Customer Service Center, which has been
ranked as the number one service provider in the white
goods industry, BSH handles delivery and service for its
customers.
BSH’s product portfolio is comprised of large and small
home appliances, including cookers, dishwashers,
washing machines, tumble dryers, refrigerators, freezers,
air conditioners, irons, vacuum cleaners, mixers, home
comfort products, and electronic appliances.
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Our Vision
built-in oven
7
Our vision is to
be the First
Choice of our
customers,
suppliers, dealers and
employees.
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“BSH once again
proved to be one
of the most
competitive
home appliances
company in Turkey,
growing its turnover
by 9%.”
Norbert Klein, CEO
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The year 2008 will be remembered for the start of a global financial crisis, easily
comparable to the one of 1929.
The crisis started in summer 2007 with the subprime mortgage meltdown in the
U.S., and by the start of 2008 the crisis was affecting many developed countries.
However, the situation appeared manageable until the Lehman Brothers
bankruptcy in late summer fanned the flames, spreading the crisis quickly to
stock markets around the world and to emerging markets like Turkey.
The modern financial system, which rests on the three pillars of capital, liquidity
and confidence, was strongly shaken. Although central banks and governments
injected liquidity and rolled out financial support packages, a growing lack of
confidence damaged inter-bank lending, leading to a malfunctioning of the credit
process and harming economies around the world. At the same time, the delayed
effects of high fuel and raw material prices, and the negative wealth effects
of falling equity values, resonated throughout and further damaged global
economic conditions. As a result, consumers demand slowed considerably,
reinforcing the negative spiral.
The negative impact hit Turkey in the second half of 2008, starting with Turkish
exports hit hard by the recession in the euro zone, an important trading
partner for Turkey. At the same time, private consumption and investment fell
considerably due to increased interest rates. These factors combined bring the
economy to a decline of 6% in the fourth quarter, leading to a growth of 1.1%
year-on-year. Central bank cut interest rates sharply in the fourth quarter, but
industrial output, retail sales and various confidence indicators are showing that
economic prospects are continuing to worsen in 2009.
After years of steady growth, the Turkish white goods industry saw production
drop of 2%. Due to relatively strong growth in the first half of the year, exports
managed to grow by 1% year-on-year. However, rapidly weakening demand in
the fourth quarter led to a flat local market. In December, local sales fell more
than 30%, wiping out the growth of approximately 3% the market was maintaining
until then.
Against this challenging background, BSH once again proved to be one of the
most competitive home appliances companies in Turkey. Despite difficult market
conditions and increasing energy and raw material prices, we succeeded in
winning market share and growing profitably. In 2008 the company’s turnover
grew by 9% to 2 billion TL.
Compared to market performance, both exports and local sales showed good
growth rates, leading to an increased market share of 26% in the domestic
market.
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From left to right:
Markus Löffler, Özcan Aydilek, Norbert Klein, Ronald Grünberg
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Our vision to be “the first choice” drives a strategy which makes this happen.
In executing our strategy:
• We consistently invest in our Çerkezköy production facilities, where we
produce refrigerators, washing machines, dishwashers and cookers. Producing
more than 3 million units in 2008, this location is the biggest production facility
in the BSH Group worldwide.
• We strive for “process excellence”, defining standardized processes to ensure
functions and departments collaborate in an efficient and target-oriented
manner. We continuously optimize these processes, and in doing so have
developed tools both to measure and to constantly improve the quality of our
processes. This year, BSH Turkey has achieved distinction within the group, in
the “Best Practice” category with an award for its Process Management project .
Processes were mapped increasing organizational transparency. Criteria for the
award included creating processes that are applicable in different countries. In
addition, BSH has been awarded by KalDer, The Quality Association of Turkey,
with the first-ever Quality Circle Award to be granted in Turkey, for attention to
process, excellence in all aspects of production, and their environmental impact.
• We develop innovative products which not only improve the lives of our
customers, but also reduce negative impact on the environment. As more than
90% of the environmental damage caused by large home appliances occurs
during normal use, this is where we at BSH can make the greatest contribution
to ecological equilibrium. Over the years Bosch and Siemens Home Appliances
Group have put a lot of effort into reducing the energy consumption of our
products, making BSH a pioneer in this area. Today our energy efficient products
consume up to 80% less energy than they did 15 years ago. In order to maintain
leadership in this area, we began investments in a new R&D center at our
facilities in Çerkezköy. Already more than 100 engineers, partly in cooperation
with local universities like İstanbul Technical University, are developing and
improving innovative products sold in more than 50 countries.
However these actions alone are not enough to be successful. Without our more
than 3500 employees, who share our vision and give their all for the company on
a daily basis, our success would not be possible. For this we would like to thank
each and every one for a job well done.
Despite the challenges ahead, BSH is in a strong position to build on its
profitable growth. If we continue to pursue our strategy systematically, there is
no reason why the success of recent years should not continue.
Norbert Klein
Özcan Aydilek
Ronald Grünberg
Markus Löffler
Chief Executive
Officer, CEO
Chief Financial
Officer, CFO
Chief Sales
Officer, CSO
Chief Technical
Officer, CTO
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Our Values
No Frost Combi Cooler
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Our Values
We live by a values-based culture and see it as a
core competence, fundamental to our continuing
success in a rapidly evolving industry. Our values
unite us. Living them every day is our common
bond and shared philosophy.
Customer Focused
We can only fulfill our vision and mission by treating each other as customers.
We must value all stakeholders and strive to understand their needs.
Creativity
With innovation so fundamental to our success, we must trust in our creativity
and approach to generate new ideas, grasp new opportunities, identify areas of
improvement, and achieve excellence.
Willingness to Change
The willingness to try new ideas and learn continuously enables us to embrace
and quickly adapt to change. We must create an environment that inspires
change and provide the necessary tools to support creative thinking.
Proactive Approach
We must be proactive in problem solving as this is the best way to surface
issues, identify causes, create fair solutions and prevent problems from reoccuring.
Responsibility
We must be more responsible to each other, to society, and to the environment
in which we live and work. This is the hallmark of global success. To achieve
this success, an investment of time and energy is required on the part of each
employee.
Fairness
We must be steadfast in our commitment to fair dealing in order to ensure that
our personal and business interactions are conducted according to the principles
of honesty, transparency, and the rule of law.
Commitment to Diversity
Diversity of experience, background, identity, and belief are the cornerstones
of creativity and innovation. As members of an international company, we must
adopt this global mindset. We must celebrate and manage diversity.
Team Spirit
To sustain BSH’s success, we must value the contribution of each employee.
Enjoying each other and supporting each other is the best way to support
individual and corporate achievement.
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Brands Portfolio
New generation dishwashers
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Just as patents bring
inventions to life,
brands embody
the customer’s
choices and personality.
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Brands Portfolio
Just as patents bring inventions to life, brands embody the customer’s choices
and personality. Customers do not just buy product features; they make
purchasing decisions based upon long-term trust and brand identification.
BSH incorporate innovations in functional design and style that reflect
customers’ needs, habits, and lifestyles.
One reason for this basic trust is that our brands demonstrate care for the
customer as well as for nature. Based upon the most economic and ecological
use of natural resources, BSH products reflect a commitment to uncompromising
performance and superior design. Sound ecological principles are a high priority
at BSH, as is ensuring minimal impact upon our environment.
Invented for Life
The Bosch brand signifying status, premium quality, exacting engineering, and
longevity inspires confidence. Quality and technical perfection are the core
values of the Bosch brand. Functionality and beauty, attention to detail, and an
intuitive user interface allow the consumer to use complicated technology with
relative ease.
Bosch stands by its vision, fulfilling exacting demands for superior quality and
performance. The well-established Bosch image stands for comprehensive,
customer-oriented solutions, an enhanced quality of life, a large range of
choices, and superior after-sales service.
Bosch’s quality appeals to environmentally-conscious customers seeking
reliable white goods that offer excellent value. The brand is identified with
energy savings and performance.
In 2008, new Bosch appliance designs were lauded at the Internationale
Funkausstellung (IFA), the consumer electronics fair, proving that BSH is in touch
with the needs of consumers and on the right track in terms of functional design.
Internationale
Funkausstellung (IFA)
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coolDuo
The Future Moving in
The Siemens brand has come to mean innovative thinking, precision engineering
and style. Sold in more than 55 countries around the globe, Siemens is the
leading built-in appliance brand in Turkey. For many years consumers, dealers,
and architects have benefited from the advanced technological superiority and
the stylish design aesthetics of Siemens appliances. A pioneering approach to
performance and functionality in precision design is combined with the cuttingedge Siemens innovations that set the industry standards. The brand epitomizes
futuristic designs, appealing to technology-oriented contemporary minds with a
refined sense of modern style.
Siemens appliances are most frequently featured for their built-in cabinetry,
their design, and their logical and attractive user controls. Siemens’ aesthetically
distinctive appliances blend well with the elements of a modern kitchen.
Signature designer products combine geometrical form and flawless function.
Induction hob
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Brands Portfolio
Durable White Goods
One of the oldest leading brands in Turkey, Profilo spells durability and
quality above all else, ensuring the best value for the money. Profilo
products combine international engineering experience with features
based upon consumers’ lifestyles. With appliances designed according
to the unique needs and habits of Turkish consumers, the brand’s
local success comes from its careful examination of market needs and
sensitivities.
Appealing to all Turkish consumers economically, practically, and
aesthetically, Profilo is widely known as a local brand with an
international user-friendly flair. Profilo’s target market consists of
consumers who seek value, trouble-free operation, and uncomplicated
features. Energy-saving durability, reigning in all BSH lines, earns good
marks with everyone.
“Profilo design is
distinctive with its curved
and precise lines and
its focus on the specific
cultural needs and habits
of our consumers.”
The winner of the 2008 Crystal Apple Advertising Award, competing against
the odds of a thousand ads submitted, Profilo’s TV ad series was lauded for its
Crystal Apple
Advertising Award
pragmatism and sense of humour. The marketing team’s bold decisions paid off
with an award-winning ad featuring a man ironing clothes.
Sedef Aksoy Abbasoğlu,
Head Designer, Profilo
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The Difference is GAGGENAU
Gaggenau is the name of professional cooking technology for the modern home.
Gaggenau products and their components emanate engineering precision and
artistic quality.
Known as the “built-in expert” in Europe, Gaggenau specializes in highperformance kitchen appliances, incorporating professional functionality and
decades of experience.
Every Gaggenau product is crafted for perfection, ease of use, and reliability.
The pristine beauty of Gaggenau wins brand major international design awards.
Yet beauty isn’t the only asset; customers love Gaggenau’s products for their
versatility and professionalism as well as for their performance and service.
The Gaggenau name is synonymous with luxury and elegance in the culinary
world for its precision engineering, enduring craftsmanship, innovative form,
and ergonomic handling. Setting the standards in cuisine and lifestyle design,
Gaggenau is the first choice of architects and designers.
Quality of life, product quality, and design are all reasons that people choose
BSH products — as well as for their beauty. The pleasure of an easier and more
beautiful life is an aspect of all product lines developed at BSH.
Vario-Cool
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Energy Efficient and Innovative Products
Zeolith
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A majority of
the products
produced in our
Çerkezköy facilities
rate
efficiency class A
or higher, indicating
energy
“active environmental and
climate protection”.
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In an appliance’s usage phase, the major consumption of energy involves
electricity and water. During an appliance’s life cycle, most of the environmental
impact occurs during this Usage Phase. For this reason, we place high emphasis
upon the efficiency rankings of an appliance. That is why a majority of the
products produced in our Çerkezköy facilities rate energy
efficiency class A or higher, indicating “active environmental
and climate protection.” Not only do these high ratings save
resources and ensure minimal impact on the environment, they
also lower energy bills, saving the consumer money. Older
appliances require approximately more than twice as much
electricity to operate than these more modern, more energyefficient appliances.
The range of our brands covers the needs of customer choices
and the exigencies of the environment.
COOLERS—Functionally Rich Ergonomic Designs
For the inventors and producers of the innovations, energysaving products are exciting; for others, products using the
“BSH occupies an excellent
position with regard to
energy. Our extensive
product range is filled with
eco-concious innovations
delivering lowest energy and
water consumption levels
coupled with uncompromised
performance and user
friendly features.”
Mario Vogl,
Central Marketing Director
newest technologies are a source of pride. In 2008, BSH
produced the very first refrigerators in the A++ category. The A++ designation
indicates a 45% higher energy savings compared to A, and 25% compared to A+
appliances.
In addition to bringing energy efficient innovations to cooling appliances,
designs that are strong in obtaining freshness have also been made available.
For example, the vitaControl system allows the interior temperature to remain
stable even when the temperature outside fluctuates. A Multi Air Flow system
ensures homogenous air circulation throughout the fridge. Freshness is a sure
ErgoCool
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vitaFresh
thing with innovative features such as FreshProtectBox, which protects food,
freshProtectbox
ensuring longer periods of storage. All of these features enable the consumer to
store more and to keep food longer while maintaining its freshness.
In this category, the bottom freezer with the largest freezer compartment in the
70x70 segment represent some of the firsts. The biggest freezer ever has a 117litre storage capacity, meeting the needs of those who shop in bulk.
The Siemens ergoCool refrigerator, equipped with extra-thick insulation and
low-energy-consuming compressors, minimizes fluctuations in temperature and
cools sections according to the requirements of different foods. Both Bosch and
Siemens offer the Trio cooling model, the largest built-in cooler with the largest
internal capacity.
In the custom kitchen, modular columns combine
different options for maximum flexibility. The side-byside built-in refrigerators have a patented hinge system,
permitting the door to open to 115 degrees for easy access.
Design combinations include a wine cooler, a single
door cooler, a double-door built-in fridge and a bottom
freezer. Depending upon the architect or the customer,
combinations can be created to suit every blueprint.
BSH addresses the evolving demands of modern
households. EasyLift movable door bins and fully
extendable shelves are designed to rearrange the contents
of the refrigerator for holidays and special occasions. The
motorized EasyLift shelf, incorporated into the built-in sideby-side appliances, allows for easy adjustment of shelves
and variable storage height. Other best-selling features
include ice and ice water dispensers, available in both solo
and built-in segments.
multiAirflow
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Zeolith
DISHWASHERS—Maximum Performance, Minimum Noise
The new generation dishwashers get more cleaning power out of every single
droplet of water. This innovative system assures that every 10 litres of water
per rinse cycle yields the power of over 4000 litres. These maximum efficient
dishwashers offer speed, elasticity, big inner capacity and greater energy and
water savings altogether. The world’s fastest dishwasher with VarioSpeed
and 55 minute cycle is also the most efficient, economical, ecological, time and
energy saving model: the new ActiveWater dishwasher by Bosch and jetMatic
jetMatic
dishwasher by Siemens with 14 place setting, consumes 29% less water and
20% less energy per
place setting than the
older range, adjusting
to the level of cleaning
as necessary. AquaStop
prevents water leakage
and preserves the
customer’s peace of
mind, even running the
dishwasher at midnight.
Both Bosch and
Siemens dishwashers
feature a third drawer
“VarioDrawer” for
cutleries, utensils, and
also Turkish coffee
cups.
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The newest models feature the first patented use of Zeolite®, a natural mineral
compound that optimizes drying process and represents 20% less energy saving
than regular A energy class dishwashers. An IntensiveZone in the bottom
basket for pots and pans with power spray pressure makes sure that even
heavily soiled pots and pans are optimally cleaned while the delicate glasses are
cleaned gently on the upper basket. The new hydraulic system and new door
design assure exceptionally quiet running with only 40db. Bosch, Siemens, and
Profilo dishwashers are space-saving, efficient, and economical, handling heavyduty volume and/or completing a cycle in record time.
A new innovation for Profilo, Ekspres 55’ is a special program that completes
a full load at 65 degrees in 55 minutes. Another speed feature is the Turbo
function which cuts washing time of various programs by 50%. With foldable
racks, the dishwasher is much more flexible. In auto program, dirt sensors
measure the level of dirt and adjust the cleaning temperature accordingly, which
prevents unnecessary use of energy and water.
With the jet-black Piano Black dishwasher, walking into the kitchen becomes an
aesthetic pleasure: added to the black built-in cooker, oven hood, and side by
side fridge, the elegant kitchen is complete. Piano Black products are not only
stylish; with GlassProtec they represent the utmost technological superiority in
protecting fine glassware and chinaware.
The highly stylish new Gaggenau dishwashers can handle a complete load of
dishes for 14 people; its high-tech features also include Zeolite® and a laserpointer light to indicate when the cycle is finished. Energy-saving and watersaving features can be activated by the touch of a button. These TouchMatic
buttons put all controls at the user’s fingertips.
ActiveWater
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blueTherm
Short Cycle Washers and Self Cleaning Dryers
The Ecologixx7 dryers better harness natural resources with their patented
ActiveAir system— another earth-friendly, innovative solution to household
problems from BSH. For 2008, A++ Ecologixx 7 dryers improve upon
perfection by 40%.
Ecologixx 7 comes equipped with a SelfClean condenser for lifetime energy
efficiency, Touch Control technology for ease of use, a 7-kg drying capacity, and a
transparent door that acts as a window. It is the world’s first self-cleaning dryer.
Ecologixx 7
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The world’s first tumble dryer to consume
40% less energy than A energy class
appliances, the blueTherm from Siemens
comes with a sensitive drying feature and
silent drying technology. Through the softDry
drum system blueTherm enables gentle
treatement of laundry. blueTherm decreases
the ironing workload with the perfect drying
options.
In addition to ranking in the 20% energysaving category, Bosch Logixx8 sensitive
washing machine is smart as well. The weight
of the laundry determines the detergent
dosage; the power and water adjust to the
volume, with an energy savings of 20%
compared to the A energy class appliances.
16 automatic stain removal programs, a
memory function that shortens and makes
program setup easier, the VarioSoft drum
system—that prevents wearing out while
washing— are among the other features of a
washing machine that ranges from a 60-minute
PowerWash to a 15-minute super-short cycle.
blueTherm
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Built-in IC5
COOKERS—Perfect Built-In Cookers
Built-in cooking products are becoming the most sought after appliances in the
modern kitchen.
The new AutoPilot68 steam ovens come with 68 automatic programs. For
example, Hydrobaking, a dehydrated cooking system, has an enhanced doughriser feature which ensures softness for bread and other yeast and dough-based
foods .
Also new are the induction cooktops and steam ovens, which use the latest
technology to cook faster and better, combining steam with convection.
The steam oven offers a multi-sided usage area with features like steaming,
defrosting, and keeping warm. With Memory Cooking, the cook’s favourite
settings are memorized by the oven, minimizing the need to make detailed
programming everytime.
These induction cooktops are state-of-the-art, easier to clean, and also faster
than gas-operated models. They not only save time for the user but also make
use of the energy in the most efficient way.
The new electric Cooktop with DirectSelect is a cross-appliance concept
featuring intuitive user controls and automatic programs.
These new design ovens make expert cooking possible on one, two, and
three levels. The multi-level cooking feature is excellent for baking pies, cakes,
pastries, and even drying fruits. These innovations in the high-end models are
appreciated by the cook, who wants to multi-task. The chef of the future can
cook three different dishes perfectly at the same time — saving energy, time,
and money.
These built-in ovens add style and value to the kitchens not only with well known
inox color but also with the new white and black color alternatives.
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ProEnergy
Consumer Products
BSH offers a range of consumer and home comfort products to fit the needs
of the Turkish consumer. Some of the most popular products have been our
vacuum cleaners that come with compressor technology, which uses less energy
and features better performance. The proEnergy feature on the 1200W vacuum
cleaner saves up to 50% more energy, functioning with the strength of a 2400W
cleaner.
The new coffee machines are also highly popular: particularly the full automatic
espresso and coffee machines from Siemens, thanks to their unique brewing
technology, set new quality standards for in-the-cup quality of espresso and
automatic coffee. With its rotateable coffee outlet, the low operating noise and
its one touch cappucino function this machine is the perfect choice for coffee
connoisseurs.
The new multidirectional irons can easily move in every direction due to their
specially shaped soleplates. The newly developed steam channels and its special
ceramic coating palladium glissee helps to iron all kinds of fabrics easily. The
innovative automatic function in Vacuum Cleaners and Irons helps customers
to ease their housework: The Z6.0 vacuum cleaner adjusts the suction power
according the floor type, wheras the automatic irons from Siemens can be used
EQ7 Espresso Machine
with each fabric once the auto-temperature is set.
Multidirectional iron
32
Customer Oriented Innovation
built-in oven
33
For us, innovation
means developing
new technologies
and home
appliances that
are energy-efficient
and environmentally
friendly.
34
35
BSH’s vision is to be the first
choice of customers, suppliers,
dealers and employers alike.
This spirit of innovation
benefits the customer and
the organization alike, as
BSH prudently responds to
future challenges posed by the
constantly changing supply
and demand landscape.
For us, innovation means developing new technologies and home appliances
that are energy-efficient and environmentally friendly. BSH’s production system
consistently delivers the highest-quality products while cutting operating costs
to a minimum and reducing environmental impact. Toward this end, all teams
look for ways to save energy in processes and products.
Enhancing The BSH Patent Portfolio
Our commitment to “innovating for a better life” is demonstrated by the number
of patent applications submitted each year. The World Intellectual Property
Organization ranks the BSH Group 28th among leading international patent
proprietors.
On an international scale, there are about 2000 employees in BSH’s global R&D
network. Collaboratively, they work to design new, innovative, and high-quality
products. In Turkey, we have more than 100 employees who are dedicated
to Research & Development activities, and who contribute to the innovative
product portfolio of the BSH group. Our investments in university-industry
cooperation, R&D as well as intensive training sessions for employees with a
technical background, are baring fruits. In this endeavor, Turkey ranks third in
the BSH organization worldwide, before the US and France.
36
Cooperative Knowledge and
Inspiration
At BSH, we value each and every idea:
every employee is a potential inventor. Our
employees are also invested in their work:
employee training sessions encourage and
develop potential competencies and bring
out the best in every employee, whitecollar and blue-collar alike. BSH actively
encourages innovative and useful partners
as well. Our partnership with Istanbul
Technical University gives students
the opportunity to put their theoretical
knowledge into practice; projects with
students from Middle Eastern Technical
University literally bring R&D into the
kitchens of current and prospective
“My internship has been
valuable for my career. I feel
lucky to be able to combine
my theoretical knowledge
with practice, gaining
experience at an important
company like BSH. The value
that BSH gives to employees
is truly exciting.”
customers. Our green products, practices,
and processes inspire trust.
BSH’s broad focus on R&D brings together the academic and business
communities. Located on the premises of Istanbul Technical University (ITU),
BSH’s R&D initiatives attract wide interest from faculty, graduates, interns,
and the academic community at large. Cooperative efforts between BSH and
universities like ITU, connects the universities with the BSH Group’s global
Sevinç Koç,
Management Engineering
student and A-Cool factory
intern.
network of developers, and at the same time connects BSH to a wealth of
knowledge and inspiration.
With initiatives as such, BSH undertakes innovation projects such as reverse
engineering and develops new materials in joint programs with ITU and faculty
alike. The first project with Engineering Interns and Cooling Factory Industrial
Engineers took place in 2008. As well as working on their own projects, students
observed, listened, and made suggestions to improve productivity.
ITU students working along
with BSH’s R&D center staff.
37
Interns at BSH’s welcome
event.
At BSH, student interns feel valued because they
are treated like junior colleagues. Their projects not
only serve as graduation theses, but also as hands
on experience necessary on becoming professional
engineers. Whether optimizing a dishwasher door
mechanism, designing a spring, or solving a chip
fixation problem on washers, the students’ pride
in producing “technical things BSH can use” also
has large-scale implications. The combination of
industry and the university community also proves
that.
BSH has also been cooperating with Middle East
Technical University’s industrial design department.
Seven groups of four students, 28 in total, worked
on a project that required developing food storing
and cooking systems that were tailored according to the needs of Turkish
consumers. Balancing the most innovative trends in kitchen products with
the traditional dishes of Turkish cuisine, the study is a superb application
of the cultural theory of the “practice of daily life.” The results were
stunning: the research, ideas, and designs resulted in the initiation of a
patent application at BSH. A variety of prizes were awarded to all of the
students, and one of them was awarded an internship at BSH in Munich.
We see it as our responsibility to nurture a learning environment that is
coupled with real-world applications. Thus, we are happy to be working
with the students and professors of Istanbul Technical University, and we
look forward to creating many more unique inventions together.
“We turn our academic
knowledge into practice, because
we have the opportunity to
see the factory production and
product. The opportunities at
BSH, where I would like to work
in the future, also demonstrate
the value that BSH gives to its
employees. And we get lots of
practical advantages.”
Hüseyin Caner Duran,
Washing Factory intern and ITU
Mechanical Engineering student.
38
Keeping Up With Our Responsibility
Lake Eğirdir
39
“Future generations in
Turkey can live in a
more sustainable
world only if the
required steps
are taken today.”
Norbert Klein, CEO
40
41
We understand that the use of home appliances has an impact on resource
consumption. Beginning in the 1990s, in an effort to protect the ozone layer
and the climate, BSH Group led the global shift to hydrocarbon technology
in refrigerators. Since then, BSH has been leading the development of
environmentally safe and energy efficient products. Since then, BSH has reduced
the level of energy consumption in refrigerators by 75%; in ovens, dishwashers,
washers, and dryers, by 30% to 40%.
No BSH product uses ozone-depleting refrigerants. Entrepreneurial eco-vision
is essential for any company that expects to sustain a viable future. Such a feat
requires sound business ethics and practices, strong corporate governance,
meticulous engineering and management systems, and the cultivation and
involvement of talented people, but most important of all, customer-oriented,
eco-conscious applications to sustain a competitive edge for the long term.
At The Factory Front
BSH pays close attention to housekeeping, constantly monitoring practices
to achieve greener, more efficient operations. In large-scale operations, costs
multiply faster; therefore factory practices add up to dramatic savings in energy
and cost. In 2008, an “energy initiative team” analyzed critical areas of energy
use in the factories with an eye toward more efficient, less wasteful use of
electricity, water, and heating.
To name just a few of our initiatives in preserving resources, in the cooling
factory, automatic switches have been installed in the factories to shut off
lights, and tap sensors prevent wasted water. A similar automatic mechanism
also closes doors, conserving precious energy and lowering heating costs in the
factories. Leakage detectors locate and troubleshoot areas where air escapes;
less air leakage means less energy consumption.
As a part of the government-initiated EnVer project, constant improvements
are being made to factory machines: for example, motors that consume high
amounts of energy were replaced with higher-efficiency motors. Similarly, the
Enamel Firing Furnace was overhauled for efficiency, reducing heat transfer and
fuel use.
In cooking, a new patented mechanism separates oil from water, decreasing
the consumption of wastewater by 10% and chemicals by 32%. For example,
Bonderite NT-1® is a new pre-treatment method for paint adhesion and
corrosion protection. This revolutionary nanoceramic material replaces iron
phosphate or zinc phosphate coatings. Phosphate-free, non-toxic, and nonhazardous, the new Bonderite® compound requires less waste disposal and
handling, less energy, and less maintenance. This innovation translates into less
labour, less pollution, and lighter clean-up.
42
In dishwashing, audit tests were made to reduce water consumption by 62%,
energy consumption by 65%, and detergent usage by 90%. Separate chillers on
each machine were replaced by a central chiller cooling system, saving 19.2 kW.
Discontinuing the use of chemical primer and Isopropanol has eliminated an
entire category of hazardous waste.
At BSH, saving water is a way of life in both process and product. Water used at
Çerkezköy facilities comes from a deep well. Despite an increase in production,
water consumption decreased; nevertheless, BSH will continue to be vigilant
in making water conservation a priority. The dramatic reduction in water usage
and reduced transport costs also kept production costs down in 2008. Using the
concept of pre-emptive troubleshooting, these fail-safe systems are designed to
eliminate errors before they happen. Changing the cooling system mechanism to
a more natural, less wasteful injection system is an investment that will pay for
itself in less than two years. Additional energy loss was determined using factory
mapping techniques. Using this data, the factory can conserve even more air,
water, and heat.
Making water conservation a priority, employees concluded that fresh water
was not necessary for everything and that wastewater could be recycled in the
laboratories. Previously, for example, irrigation was done with freshwater but
now it is done with recycled water. Recycled water is used to irrigate the 7,500
trees planted at the Çerkezköy facility, another contribution to the municipality
as well as to the environment.
43
Creating Educational Opportunities
Reducing environmental impact does not end with innovative and efficient
practices in process and product. Education initiatives create awareness and
new habits and practices in the next generation. The Green Pack Education
Project, sponsored by Bosch, was originally developed as a multimedia
educational package for schoolchildren aged 11-15 by REC (Regional
Environmental Centre for Central and Eastern Europe). The Green Pack is a set of
materials designed to instil an environmental consciousness by developing core
values and behaviour.
In Turkey, the Green Pack Project has hit the road, touring Anatolia at the
beginning of the school year. A conference wagon owned by the state railway
system (TCDD) was loaned to the project so local teachers could use the Green
Pack Environmental Education kit in their classrooms. Teachers from Edirne,
Kırklareli, Tekirdağ, Bilecik and Uşak attended training seminars in Çanakkale;
teachers in Malatya, Elazığ, Muş, and Van were trained as well.
An international project designed especially for each country, Green Pack comes
in a Turkey-specific version. Approved by the Ministry of Education and the
Ministry of Environment and Forestry, the Green Pack Project is not a separate
lesson; it is designed to be adapted by local teachers and incorporated into
classes. For information, please visit www.yesilkutu.net.
The Green Pack Project, implemented in European schools for many years, is
one of the most important training instruments developed to increase students’
knowledge and awareness of environmental protection and sustainability.
Green Wagon
44
Lake Eğirdir
Preserving Resources
Important social initiatives also include a Siemens and WWF co-sponsored
project for the preservation of Lake Eğirdir. Because the lake is known locally as
the “seven-coloured lake,” the project is called Seven Colourful Lives for Seven
Colourful Lakes.” Lake Eğirdir, the second-largest freshwater lake in Turkey,
is a Utility Water Conservation Site as well as a Natural Protection Area and a
Bird Nesting area featuring wildlife diversity. The lake, also an important source
of drinking water, is at risk due to pollution from agricultural, industrial, and
domestic waste.
In collaboration with WWF, Siemens will undertake the following steps: a solid
waste depot will be placed in a village as an example; wetlands treatment will
begin in another sample village; fishermen will be trained in sustainable fishing;
farmers will be trained in eco-friendly agricultural methods; local people will be
trained in eco-tourism as a livelihood; farmers will be provided with eco-friendly
fertilizers; and residents will be trained in Rationalistic Natural Resource Usage.
Another recent project sponsored by Siemens is “Dialogue for Urban Quality”
or ArkiPARC 2008. Held in Harbiye in October, people who made major “built
environment” contributions received ArkiPARC awards. Bringing together
45
professionals from architecture, real estate, and construction, opportunities
were created for further communication and subsequent meetings. The
conference addressed the future of urban social responsibility by creating a
platform for sharing ideas and solutions in development and construction.
Internationally renowned architect and urban planner Rem Koolhaas was the
keynote speaker.
Community Involvement
Community involvement is promoted through projects such as the “Profilo, Your
Next Door Neighbour” project—a program that particularly encourages women’s
participation. The Neighbour project’s well-publicized events held in local
markets brought women together for an array of activities, including dishwasher,
refrigerator, and vacuum cleaner competitions. Useful household hints
contributed by the women were later published in
a Practical Tips booklet.
The project had a charity component as well:
Kırkyama quilts sewn by the women were
distributed to camps in Çatalca for homeless
children. This colourful and highly visible “Road
Show” toured Turkish cities such as Isparta,
Afyon, Sandıklı, Dinar, Burdur, Muğla, Kütahya,
Tavşanlı, Uşak, Çivril, Bilecik, Bozüyük, and Inegöl
in the summer of 2008.
Corporate social responsibility also begins at
home, at our Çerkezköy base. Because of the at-risk water levels in the Thrace
region, BSH discovered and developed cost-cutting, resource-conserving
measures to utilize water more efficiently. These benefits extended not only to
the Çerkezköy plant, but to the surrounding region as well.
BSH received significant awards as a result of its environmental initiatives,
including the Environmental Encouragement Prize given by the Istanbul Chamber
of Industry in 1998, the Environmental Brevet and Shield by the Ministry of
Environment & Forestry in 1999, and the Environment Prize awarded by the
Çerkezköy Chamber of Trade and Industry in 2003.
46
Chairman’s Message
47
Dear colleagues,
2008 has turned out to be a rather challenging year worldwide. In Turkey, the
economic downturn started to hit the markets especially in the second half
of the year. As for the white goods industry, a sharp decline in December was
the mark of another and even more difficult 2009. The white goods industry’s
production output slowed, closing the year with 2% decline overall. While
exports continued to show a 1% increase, the domestic market stayed flat due to
a sharp decline at the end of the year.
Having continually invested in the development of the company since the
beginning, we have been able to weather the global economic crisis rather
smoothly. The company’s turnover saw an increase of 9% compared with
the year before. This proves us that BSH is a very competitive company with
considerable operational excellence. Our investments bare positive results in
terms of benchmark quality production output, satisfied customer feedback,
sought after innovations and environment friendly product ranges.
In our Çerkezköy facilities, we successfully produced over 3 million units of large
domestic home appliances that included many new product varieties which are
well accepted by customers here and abroad.
In 2008, we are thrilled to have closed the year having succeeded in gaining
market share in the domestic market and raising it to 26%. This is no easy
task to tackle; it is clearly a result of careful planning and strategic execution.
Additionally, our export performance showed an increase of 8% despite the
effects of the global financial crises. These achievements have been rewarding
for BSH, indicating a potential to further grow our company’s significance both
locally and internationally.
In closing, I’d like to thank each and every employee for putting their passion,
dedication and commitment to the goals set for the year. They have been
instrumental in keeping the momentum and making 2008 a year filled with many
hard earned achievements.
As always, I would like to extend my gratitude to our customers, who trust in
us; to our suppliers, for growing with us, and to our shareholders, for being
committed to us. Many thanks to all our partners for supporting us in our quest
for sustainable growth that is both good for the company, the environment and
the society.
Sincerely,
Dr. Wolfgang Colberg
Chairman of the Board
48
Board of Directors
49
1
Dr. sc. pol. Wolfgang COLBERG
Chairman of the Board
2 Prof. E.h. Werner VOGT
Member
3 Thomas BAADER
Member
4 Wolfgang TOCHTERMANN
Member
5 Norbert KLEIN
Member
6 Leon GRÜNBERG
Member
7 Hermann BUTZ
Member
8 Hüseyin GELİŞ
Member
50
Management Report
GDP
State of the Turkish Economy
The Turkish economy showed sustained growth over the past
million TL
(Real terms)
seven years, having grown on average 7% annually since the 2001
1.1%
domestic financial crisis. Unfortunately, it was interrupted by
102,328
domestic political tension in early 2008 and the deterioration of
the international financial markets. The country’s economy began
101,255
slowing especially sharply in the second half of 2008, in response
to a widening global economic crisis. In the fourth quarter of 2008,
growth declined by 6%, leading to an annual growth of only 1.1%.
The Turkish lira depreciated about 25% against the Euro and 30%
against the U.S. Dollar in 2008. While this allowed some recouping
of earlier competitiveness losses, interest rates also increased
2007
2008
significantly, inflation accelerated above targets and expectations.
However, due to the negative economical development in Turkey’s
Per Capita Income
main export markets, particularly in the last quarter of the year,
exports declined considerably. In this environment, including layoffs,
U.S Dollars
12%
consumer and business confidence weakened. The consumer
confidence index in Turkey has fallen to new lows, 69.9 points in
$10,436
December, reflecting the global economic crisis to intensify.
$9,333
National Income Per Capita increased from US$9.333 to
approximately US$10.436, a promising trend which is expected to
continue in the mid term. However, at the same time, inflation, one
of the greatest obstacles to the country’s general economic stability,
rose to 10.06%, up 1.67% compared to the previous year.
2007
2008
Despite high volatility of the exchange rate and the global financial
problems, exports grew 23%, reaching US$132 billion for the year.
The nation’s exports have boomed since 2002, when they amounted
to only US$36 billion.
However, imports grew faster over the same period, reaching US$202
billion. Thus, the trade deficit once again widened to US$70 billion.
For the time being the expanding current account deficit, which
amounted to approximately US$70 billion in 2008, is still financed
mostly by direct foreign investment, but it remains a major concern
for the turbulent economy.
In 2009, we expect the Turkish economy to resume its growth in the
second half of the year, but with the losses incurred in the first half, it
is likely to close the year with a 1% decline.
51
The Home Appliances Sector*
After years of steady growth, the Turkish white goods industry saw
a drop in production by 2%, reaching 15.9 million units of large
Production Volume
000 Units
-2%
domestic appliances.** Exports slightly increased by 1% to 11.5 million
units, bringing the export share to 68%.
16,197
Of the total production, refrigerators accounted for 6 million units,
15,920
showing the biggest decline with 13%. Washing machines were down
8%, reaching 4.7 million units, whereas dishwashers and cookers still
saw considerable growth rates of 16%, reaching 2.1 million units and
29%, reaching 3 million units, respectively.
The domestic market for white goods appliances developed quite
2007
well after a weak start in the year, and showed a growth rate of
approximately 3% when the negative impacts of the global crisis
hit Turkey. High interest rates, reduced credit availability, and
uncertainty about the near future considerably slowed consumer
demand for durable goods, evaporating the growth in just one
2008
Export Volume
000 Units
1%
month, when December sales volume dropped sharply by 30%,
bringing the total market volume to 5.2 million units.
Under these volatile market conditions only the dishwasher product
category showed a growth of 13%, due to the low saturation level.
11,437
11,519
2007
2008
Refrigerator sales stayed flat with approximately 1.9 million units,
while the washing machine and cooker product categories saw a
decline of 5%.
Under these adverse market conditions, with falling consumer
demand, and the necessity for producers to fill their capacities, we
expect downward market pressure on prices to continue. In addition,
Market Growth
we expect more buyers to request adjusted payment terms from the
dealers.
* BESD figures.
** LDA: Coolers, cookers, dishwashers, washing machines
000 Units
0,25%
5,154
5,167
2007
2008
52
Management Report
Total Turnover
Company Performance
million TL
Turnover Development
9%
Despite the negative effects of the global financial crisis, BSH
2.031
1.860
reached a total turnover of 2 billion TL in 2008, representing a 9%
increase year-on-year.
In our production facilities in Çerkezköy, we produced approximately
3.1 million appliances, up 4% year-on-year. Dishwashers and
cookers showed considerable growth of 24% and 19% respectively,
whereas we saw a decline of 7% in refrigerators and 2% in washers
2007
2008
due to weak market conditions. Out of the total produced volume,
approximately 60% was exported worldwide, compared to 58% in
Export Turnover
2007.
million TL
In a stagnant domestic market BSH grew volume by approximately
20%
4%, increasing our market share to 26%, compared to 25% in 2007.
791
Accordingly, our local turnover increased by 3% to 1.2 million TL.
657
In exports, our volume grew by 8% to approximately 1.7 million units,
once again outperforming the sector’s growth rate of 1%.
All product categories contributed to this success, but in particular
our new refrigerator ranges and dishwashers were very well received
2007
2008
Local Turnover
million TL
3%
1.203
1.239
2007
2008
by consumers.
53
Investment Development
Being the largest foreign investment company in the white goods
sector, BSH made investments totalling 53.5 million TL in 2008.
Investment Development
million TL
-21%
Of the total investment 37.9 million TL were dedicated for our
operations in Çerkezköy mainly for capacity increases, rationalization
67
projects, maintenance and environmental projects. We also invested
53
15.6 million TL in our sales operations, dealers and service network.
Profit Development
BSH delivered a net profit of 71.5 million TL. Due to a strong Turkish
Lira and high financing costs, our net profits declined 20%.
Trends and Expectations
The continued unfolding of the global financial crisis makes it
hard to predict what lies ahead of us. After the sharp drop in the
2007
2008
Net Profit
million TL
-20%
Turkish economy in the third and fourth quarter of 2008, we expect
a rebound of the economy in the 2nd half of 2009 at the earliest.
90
That would mean that like other countries, Turkey’s economy will
71
show a decline, which we expect to be around minus 1%. As high
unemployment rates and difficulties in obtaining credit will prevail in
2009, we expect consumers to postpone and even cancel necessary
and planned investments into durable goods.
The loss of consumer confidence is deepening the crisis further, and
how this confidence will be regained and the economic situation
reversed remains uncertain for the time being. Looking forward, we
expect that there might be a certain improvement in the durable
goods sector in the second half of the year, yet the overall market
growth for the white goods is estimated to be around minus 10%
year-on-year.
As a consequence for us, as market declines persist, we will continue
to keep our costs under control. Nevertheless, we will proceed with
our strategy to bring innovative products, like our built in appliances
and our new fully automatic coffee machines, to the market in 2009.
2007
2008
Financial Statements
2008
56
Financial Report
CONVENIENCE TRANSLATION OF REPORT AND FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH
INDEPENDENT AUDITORS’ REPORT
ON THE FINANCIAL STATEMENTS FOR THE PERIOD
1 JANUARY – 31 DECEMBER 2008
To the Board of Directors of
BSH Ev Aletleri Sanayi ve Ticaret Anonim Şirketi
We have audited the accompanying financial statements of BSH Ev Aletleri Sanayi ve Ticaret Anonim Şirketi (the “Company”), which
comprise the balance sheet as at 31 December 2008, and the statement of income, statement of shareholders’ equity and statement of
cash flow for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
The Company’s Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting standards published by Capital Markets Board. This responsibility includes: designing, implementing and maintaining internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
standards on auditing published by the Capital Market Board. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Company as of 31 December 2008, and
of its financial performance and its cash flows for the year then ended in accordance with legislation and generally accepted accounting
principles published by Capital Markets Board.
Without qualifying our opinion, we would like to draw your attention to the following:
As explained in Note 27, the Company restated its financial statements for the years ended as of 31 December 2007 and 31 December 2006.
İstanbul, 13 March 2009
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATS
Ali Çiçekli
Partner
57
CONTENTS
BALANCE SHEET
INCOME STATEMENT
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1
ORGANIZATION AND OPERATIONS OF THE COMPANY
NOTE 2
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
NOTE 3
CASH AND CASH EQUIVALENTS
NOTE 4
FINANCIAL INVESTMENTS
NOTE 5
FINANCIAL BORROWINGS
NOTE 6
OTHER FINANCIAL LIABILITES
NOTE 7
TRADE RECEIVABLES AND PAYABLES
NOTE 8
OTHER RECEIVABLES AND PAYABLES
NOTE 9
INVENTORIES
NOTE 10 PROPERTY, PLANT AND EQUIPMENT
NOTE 11 INTANGIBLE ASSETS
NOTE 12 PROVISIONS AND CONTINGENT LIABILITIES
NOTE 13 COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
NOTE 14 EMPLOYMENT TERMINATION BENEFITS
NOTE 15 OTHER ASSET AND LIABILITIES
NOTE 16 EQUITY
NOTE 17 SALES AND COST OF SALES
NOTE 18 RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SELLING AND DISTRIBUTION EXPENSES,
GENERAL ADMINISTRATIVE EXPENSES
NOTE 19 OTHER OPERATING INCOME AND LOSS
NOTE 20 FINANCIAL INCOME
NOTE 21 FINANCIAL EXPENSE
NOTE 22 CURRENT TAX LIABILITIES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)
NOTE 23 EARNINGS PER SHARE
NOTE 24 TRANSACTIONS WITH RELATED PARTIES
NOTE 25 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
NOTE 26 FINANCIAL INSTRUMENTS (DESCRIPTIONS ON FAIR VALUE AND HEDGE ACCOUNTING)
NOTE 27 OTHER ISSUES THAT SIGNIFICANTLY EFFECT THE FINANCIAL STATEMENTS
OR OTHER ISSUES REQUIRED FOR THE CLEAR UNDERSTANDING OF FINANCIAL STATEMENTS
58
Financial Report
BSH EVBSH
ALETLERİ
EV ALETLERİ
SANAYİSANAYİ
VE TİCARET
VE TİCARET
A.Ş. A.Ş.
NOTESBALANCE
TO THE FINANCIAL
SHEET ASSTATEMENTS
OF 31 DECEMBER
FOR 2008
THE YEAR ENDED 31 DECEMBER 2008
(Amounts
(Amounts
expressed
expressed
in Turkish
in Turkish
Lira (TL)
Lira
unless
(TL) unless
otherwise
otherwise
stated.)stated.)
(Restated)
Notes
Current Period
Prior Period
31 December
31 December
2008
2007
ASSETS
Current Assets
Cash and Cash Equivalent
Trade Receivables
- Due From Related Parties
- Other Receivables
Other Receivables
Inventories
Other Current Assets
3
1.021.839.090
73.660.199
910.487.228
469.309
24
7
8
9
15
74.153.879
675.201.599
5.130.868
165.481.274
28.211.271
78.693.271
604.088.108
3.225.720
187.235.488
36.775.332
Non-Current Assets
Other Receivables
Financial Investments
Property, Plant and Equipment
Intangible Assets
Deferred Tax Assets
Other Non-Current Assets
8
4
10
11
22
15
323.627.066
98.466
343.483
304.806.645
138.154
17.412.072
828.246
322.094.426
89.686
343.483
318.282.547
245.034
1.494.463
1.639.213
1.345.466.156
1.232.581.654
TOTAL ASSETS
The accompanying notes form an integral part of these financial statements.
59
BSH EV ALETLERİ
BSH EV ALETLERİ
SANAYİ VE
SANAYİ
TİCARET
VE TİCARET
A.Ş.
A.Ş.
NOTES TO
BALANCE
THE FINANCIAL
SHEET AS
STATEMENTS
OF 31 DECEMBER
FOR THE
2008
YEAR ENDED 31 DECEMBER 2008
(Amounts(Amounts
expressed
expressed
in Turkish
inLira
Turkish
(TL) Lira
unless
(TL)otherwise
unless otherwise
stated.) stated.)
(Restated)
Current Period
Prior Period
31 December
31 December
2008
2007
682.548.157
640.233.219
24
5
6
253.367.176
79.643.453
-
226.090.154
70.735.761
2.073.680
24
7
8
22
12
14
15
20.361.290
122.398.155
12.613.344
1.559.844
125.359.540
14.145.620
53.099.735
44.655.254
165.440.996
12.821.640
9.700.914
50.184.205
11.589.787
46.940.828
5
14
15
128.710.226
94.600.846
23.417.093
10.692.287
89.163.486
62.131.529
18.852.067
8.179.890
534.207.773
42.000.000
150.427.940
102.458
25.529.383
244.686.501
71.461.491
502.815.969
42.000.000
150.427.940
102.458
21.732.414
198.773.417
89.779.740
1.345.466.156
1.232.212.674
Notes
LIABILITIES
Current Liabilities
Financial Borrowings
- Due To Related Parties
- Financial Borrowings
Other Financial Liabilities
Trade Payables
- Due To Related Parties
- Trade Payables
Other Payables
Current Tax Liabilites
Provisions
Provisions for Employee Benefits
Other Short Term Liabilities
Non-Current Liabilities
Financial Borrowings
Provision for Employment Termination Benefits
Other Non-Current Liabilities
EQUITY
Paid-in Capital
Equity Inflation Restatement Differences
Premium In Excess Of Par
Restricted Profit Reserves
Retained Earnings
Net Profit For The Year
TOTAL EQUITY AND LIABILITIES
16
16
16
60
Financial Report
BSH EV
BSH
ALETLERİ
EV ALETLERİ
SANAYİ
SANAYİ
VE TİCARET
VE TİCARET
A.Ş. A.Ş.
NOTESSTATEMENT
TO THE FINANCIAL
OF INCOME
STATEMENTS
FOR THE YEAR
FOR THE
ENDED
YEAR
31 ENDED
DECEMBER
31 DECEMBER
2008
2008
(Amounts
(Amounts
expressed
expressed
in Turkish
in Turkish
Lira (TL)
Liraunless
(TL) unless
otherwise
otherwise
stated.)
stated.)
(As Restated)
Notes
Sales
Cost of Sales (-)
17
17
GROSS PROFIT
Selling, Marketing,
And Distribution Costs (-)
General Administrative Expenses (-)
Research And Development Expenses (-)
Other Operating Income
Other Operating Loss (-)
18
18
18
19
19
OPERATING PROFIT
Finance Income
Finance Expenses (-)
20
21
PROFIT BEFORE TAX
Current Tax Expense
Deferred Tax Income
22
22
NET PROFIT FOR THE YEAR
Earnings per share
23
Current Period
Prior Period
1 January -
1 January -
31 December
31 December
2008
2007
2.007.015.807
(1.455.938.801)
1.814.929.232
(1.343.813.807)
551.077.006
471.115.425
(274.337.082)
(153.857.661)
(9.645.404)
37.617.495
(1.812.976)
(243.223.043)
(81.691.370)
(20.934.154)
28.489.945
(2.786.778)
149.041.378
150.970.025
116.556.869
(175.477.833)
67.584.031
(104.827.345)
90.120.414
113.726.711
(34.576.532)
15.917.609
(29.935.480)
5.988.509
71.461.491
89.779.740
1,70
2,14
61
BSHBSH
EV ALETLERİ
EV ALETLERİ
SANAYİ
SANAYİ
VE TİCARET
VE TİCARET
A.Ş.A.Ş.
NOTES
STATEMENT
TO THE FINANCIAL
OF CHANGES
STATEMENTS
IN EQUITY FOR
FOR THE
THE YEAR
YEAR ENDED
ENDED 31
31 DECEMBER
DECEMBER 2008
2008
(Amounts
(Amounts
expressed
expressed
in Turkish
in Turkish
LiraLira
(TL)(TL)
unless
unless
otherwise
otherwise
stated.)
stated.)
Restricted
Inflation
Premium
Reserves
Paid Adjustment of
in excess of
Transferred from
Retained
Capital
Capital
Par
Profits
Earnings
42.000.000
42.000.000
190.622.409
(40.194.469)
150.427.940
102.458
102.458
16.902.414
16.902.414
218.117.358 467.744.639
35.886.059 (4.308.410)
254.003.417 463.436.229
-
-
-
4.830.000
-
(4.830.000)
(50.400.000) (50.400.000)
89.779.740 89.779.740
42.000.000
150.427.940
102.458
21.732.414
288.553.157 502.815.969
As previously stated
balance as of 1 January 2008
Effect of restatement (Note: 27)
42.000.000
-
190.622.409
(40.194.469)
102.458
-
21.732.414
-
254.421.735 508.879.016
34.131.422 (6.063.047)
As restated balance as of 1 January 2008
42.000.000
150.427.940
102.458
21.732.414
288.553.157 502.815.969
-
-
-
3.796.969
-
(3.796.969)
(40.069.687) (40.069.687)
71.461.491
71.461.491
42.000.000
150.427.940
102.458
25.529.383
316.147.992 534.207.773
Note
As previously stated
balance as of 1 January 2007
Effect of restatement (Note: 27)
As restated balance as of 1 January 2007
Transfers to legal reserves
Dividend payments
Net income for the year
Balance as of 31 December 2007
16
Transfers to legal reserves
Dividend payments
Net income for the year
Balance as of 31 December 2008
16
Total
62
Financial Report
BSH EV
BSH
ALETLERİ
EV ALETLERİ
SANAYİ
SANAYİ
VE TİCARET
VE TİCARET
A.Ş. A.Ş.
NOTESSTATEMENT
TO THE FINANCIAL
OF CASHSTATEMENTS
FLOWS FOR THE
FOR YEAR
THE YEAR
ENDED
ENDED
31 DECEMBER
31 DECEMBER
20082008
(Amounts
(Amounts
expressed
expressed
in Turkish
in Turkish
Lira (TL)
Liraunless
(TL) unless
otherwise
otherwise
stated.)
stated.)
Cash flows from operating activities
Profit for the year
- Income tax expense
- Loss on sale or disposal of property, plant, and equipment
- Retirement pay provision
- Provision for unused vacation
- Warranty provision
- Provision for premiums
- Promotion and assembly provision
- Provision for sales and marketing costs
- Provision for license commission fee
- Provision for doubtful receivables
- Allowance for diminution in value of inventories
- Depreciation and amortisation of non-current assets
- (Increase) / decrease in derivative income accruals / liabilities
- Unrealized foreign exchange (gain) / loss
- Interest expense
Note
22
19
14
14
12
14
12
12
12
7
9
10-11
6-15
21
Movements in working capital
Increase in trade receivables and in due from related parties
8
(Increase) / decrease in inventories
9
(Increase) / decrease in other short-term and long-term receivables 15
(Increase) / decrease in other assets
15
(Increase) / decrease in trade payables and in due to related parties 8
Decrease in provisions
12
Increase in other payables and expense accruals
8-14-15
Income taxes paid
Interest paid
Retirement provision paid
22
14
Cash generated by operating activities
Cash flows from investing activities
Payments for property, plant, and equipment
Payments for intangible assets
Proceeds on disposal of property, plant, and equipment
10
11
Cash used in investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
3
3
Current Period
1 January 31 December
2008
(As Restated)
Prior Period
2007
71.461.491
18.658.923
1.093.938
9.155.461
314.621
40.904.180
7.608.592
4.004.720
3.266.560
70.083.370
8.599.134
921.669
65.102.421
(3.284.674)
27.787.406
44.459.745
370.137.557
89.779.740
23.946.971
1.029.598
(1.880.386)
383.448
40.147.574
6.159.243
1.422.703
17.888.378
3.833.040
51.899.575
3.454.776
(3.185.565)
45.670.699
280.549.794
(75.173.233)
20.832.545
(1.913.928)
10.586.022
(67.705.785)
(51.006.708)
11.018.841
216.775.311
(42.717.602)
(42.488.900)
(4.590.435)
(117.694.791)
(19.187.935)
1.123.494
(17.905.266)
52.600.562
(25.776.242)
10.392.650
164.102.266
(23.386.847)
(45.841.836)
(2.870.915)
126.978.374
92.002.668
(54.456.082)
(190.707)
2.033.212
(68.435.109)
(210.342)
1.178.575
(52.613.577)
(67.466.876)
349.775.200
(310.879.420)
(40.069.687)
(1.173.907)
347.827.860
(339.060.110)
(50.400.000)
(41.632.250)
73.190.890
469.309
73.660.199
(17.096.458)
17.565.767
469.309
63
BSH
BSH
EVEV
ALETLERİ
ALETLERİ
SANAYİ
SANAYİ
VEVE
TİCARET
TİCARET
A.Ş.
A.Ş.
NOTES
NOTES
TOTO
THE
THE
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
FOR
FOR
THE
THE
YEAR
YEAR
ENDED
ENDED
3131
DECEMBER
DECEMBER
2008
2008
(Amounts
(Amounts
expressed
expressed
inin
Turkish
Turkish
Lira
Lira
(TL)
(TL)
unless
unless
otherwise
otherwise
stated.)
stated.)
1. ORGANIZATION AND OPERATIONS OF THE COMPANY
BSH Ev Aletleri Sanayi ve Ticaret A.Ş. (the “Company”) is engaged in the production of white durable goods, and the marketing and sale
of white durable goods, small household appliances, electronics and office equipment, and after-sale services for the goods imported
and produced. The Company produces, imports, and sells household appliances of Bosch, Siemens, Profilo and Gaggenau brands.
The Company operates its production in BSH Home Appliances Plant located in Çerkezköy. The head quarters of the Company are
located at Çakmak Mahallesi Balkan Caddesi No: 51 Ümraniye/İstanbul.
The Company is the subsidiary of BSH Bosch und Siemens Hausgeräte GMBH which is located in Germany and its shares are traded on
İstanbul Stock Exchange “ISE”.
As of 31 December 2008, the Company employs 3,349 people. (December 31, 2007: 3,402).
Approval of financial statements
The financial statements prepared as of and for the period ended December 31, 2008 have been approved and authorized for
declaration on 13 March 2009 by the Board of Directors. The Plenary Assembly holds the right to change the financial statements.
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2.1 Accounting Standards
The Basis for Preparation of the Financial Statements and Significant Accounting Policies
The Company maintains its books of account and prepares its statutory financial statements (“Statutory Financial Statements”) in
accordance with accounting principles in the Turkish Commercial Code and tax legislation.
The Capital Markets Board (“CMB”) has established principles, procedures and basis on the preparation of financial reports by
enterprises and the representation of the reports with Communiqué No: XI/29 “Communiqué on Capital Market Financial Reporting
Standards”. This Communiqué is applicable for the first interim financial statements to be prepared after 1 January 2008, and with this
Communiqué, the Communiqué No: XI/25 “Communiqué on Capital Market Accounting Standards” has been repealed. In accordance
with this Communiqué, the companies are supposed to prepare their financial statements in accordance with the International
Financial Reporting Standards (“IAS/IFRS”) accepted by the European Union. Nevertheless, until the discrepancies between the IAS/
IFRS accepted by the European Union, and the IAS/IFRS declared by IASB are announced by the Turkish Accounting Standards Board
(“TASB”), IAS/IFRS will be in use. Under these circumstances, Turkish Accounting Standards/Turkish Financial Reporting Standards
(“TAS/TFRS”), which are the standards published by TASB, not contradicting with IAS/IFRS will be predicated on.
The accompanying financial statements have been prepared in accordance with IFRS and comply with CMB’s decree announce on 14
April 2008 regarding the format of the financial statements and footnotes since at the date of the issuance of these financial statements
the differences of IAS/ IFRS accepted by the European Union are not declared by the TASB. Accordingly, some reclassifications are
made in the prior year financial statements.
Currency in Use
In accordance with Law No: 5083 “Monetary Unit of the Turkish Republic” (Law No: 5083), the name of the Turkish Republic’s monetary
unit and its sub-currency unit was changed to the New Turkish Lira (“YTL”) and the New Turkish Cent (“Ykr”), respectively. However, in
accordance with the additional order of the Council of Ministers in regards to the order on the Removal of the phase “New” in the New
Turkish Lira and the New Turkish Cent and Its Application Principles, the phase “New” used in the Turkish Republic’s monetary unit is
removed both from YTL and in Ykr as of 01 January 2009. Therefore, the Company’s financial statements are prepared and presented in
TL accordingly.
64
Financial Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008
(Amounts expressed in Turkish Lira (TL) unless otherwise stated.)
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d)
2.1 Accounting Standards (cont’d)
Inflation Accounting
CMB, with its resolution dated 17 March 2005 declared that companies operating in Turkey which prepare their financial statements
in accordance with CMB Accounting Standards, effective January 1, 2005, will not be subject to the application of inflation accounting.
Consequently, in the accompanying financial statements IAS 29 “Financial Reporting in Hyperinflationary Economies” was not applied.
Consolidation
The Company does not have any financial investments consolidated to the financial statements. Profilo Elektrogerate was not
consolidated since its total assets and transaction volume deemed immaterial taken the financial statements as a whole.
2.2 Changes in the Accounting Policies
Significant changes in accounting policies are applied retrospectively and prior year financial statements are restated. The Company has
made necessary changes to accounting policies starting with 1 January 2007, to comply with the CMB Communiqué XI/29. The details of
these changes are presented in Note 27.
2.3 Changes and Errors in Accounting Estimates
Changes in accounting policies or accounting errors are applied retroactively and the financial statements of the previous periods
are adjusted. If estimated changes in accounting policies are for only one period, changes are applied on the current year but if the
estimated changes effect the following periods, changes are applied both on the current and following years prospectively. There are not
any significant changes in accounting estimates of the Company in the current period.
The Company has prepared its financial statements in accordance with the Communiqué XI/29 starting with the first interim financial
statements to be prepared after 1 January 2008. Restatements to the Company’s financial statements dated 31 December 2006 in
accordance with the Communiqué XI/29 are provided in Note 27.
2.4 Adoption of New and Revised International Financial Reporting Standards
In the current year, the Company has adopted all of the new and revised Standards and Interpretations issued by the International
Accounting Standards Board (“the IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of the IASB that
are relevant to its operations and effective for accounting periods beginning on 1 January 2008.
Standards, amendments and interpretations effective in 2008 but not relevant
The following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning on or
after 1 January 2008 but they are not relevant to the Company’s operations:
• IFRIC 11, “IFRS 2 – Group and treasury share transactions”,
• IFRIC 12, “Service concession arrangements”,
• IFRIC 14, “IAS 19- The limit on a defined benefit asset, minimum funding requirements and their interaction”,
• IAS 39, IFRS 7 “Amendments relating to classification of Financial Assets”
65
2.4 Adoption of New and Revised International Financial Reporting Standards (cont’d)
Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the
Company
At the date of authorization of these financial statements, the following Standards and Interpretations were in issue but not yet
effective:
• IFRS 8, “Operating segments”
Effective for annual periods beginning on or after 1 January
2009
• IFRIC 13, “Customer loyalty programmes”
Effective for annual periods beginning on or after 1 July 2008
• IFRIC 15, “Agreements for the construction of real estate”
2009
• IFRIC 16, “Hedges of a net investment in a foreign operation”
Effective for annual periods beginning on or after 1 November
2008
• IFRS 2, “Share-based Payment” Amendment relating to vesting
conditions and cancellations”
2009
• IFRS 1, “First-time Adoption of International Financial Reporting
Standards”— Amendment relating to cost of an investment
on first-time adoption
2009
•
•
•
•
IFRS 3, “Business Combinations”
IAS 27, “Consolidated and Separate Financial Statements
IAS 28, “Investments in Associates”
IAS 31 “Interests in Joint Ventures” Comprehensive revision on
applying the acquisition method
Effective for annual periods beginning on or after 1 July 2009
• IAS 23, “(Amendment) Borrowing costs”
Comprehensive revision to prohibit immediate expensing
2009
• IAS 27, “Consolidated and Separate Financial Statements”
Amendment relating to cost of an investment on first-time adoption
2009
• IAS 1, “Presentation of Financial Statements”
• IAS 32, “Financial Instruments: Presentation” Amendments relating
to disclosure of puttable instruments and obligations arising
on liquidation
2009
• IAS 1, “Presentation of Financial Statements”
Comprehensive revision including requiring a statement of
comprehensive income
• IAS 39, “Financial Instruments: Recognition and Measurement”
Amendments for eligible hedged items
2009
2009
66
Financial Report
2.4 Adoption of New and Revised International Financial Reporting Standards (cont’d)
IAS 23, “(Revised) Borrowing Costs”
The main change from this standard is the removal of the option of immediate expense recognition of borrowing costs that relate to
assets that take a substantial period of time to get ready for use or sale and instead the capitalization of these costs as part of the cost of
the asset. The Company will begin to apply the IAS 23 (Revised) standard commencing from 1 January 2009.
The Company’s management anticipates that except for the changes in the IAS 23 standard, the adoption of these Standards and
Interpretations in future periods will not have a material impact on the financial statements of the Company.
2.5 Summary of Significant Accounting Policies
Revenue recognition
Revenue is recognized on accrual basis at the fair value of the amount received or to be received based on the assumptions that revenue
is measured reliably and it is probable that economic benefits associated with the sale will flow to the Company. Net sales are calculated
after the sales returns and sales discounts. If the sales transaction contains a financing element, the fair value of the sales is measured
through discounting future collections using the effective interest method. The difference between the fair value and the nominal value
of sales is recognized as finance income for the relevant period on an accrual basis.
Sale of goods:
Revenue from sale of goods is recognized when all the following conditions are satisfied:
• The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
• The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the entity; and
• The costs incurred or to be incurred in respect of transactions can be measured reliably.
Rendering of services and other sales:
Service income and other revenues are recognized on accrual basis at the fair value of the amount obtained or to be obtained based on
the assumptions that delivery is realized, the income can be reliably determined and the inflow of the economic benefits related with the
transaction to the Company is probable.
Interest revenue:
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net
carrying amount.
67
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs, including an appropriate portion of fixed and variable overhead
expenses, are assigned to inventories held by the method most appropriate to the particular class of inventory, being valued using the
weighted average method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs
necessary to make a sale.
2.5 Summary of Significant Accounting Policies (cont’d)
Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses.
Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried
at cost, less any recognized impairment loss. Cost includes professional fees. Depreciation of these assets, on the same basis as other
property assets, commences when the assets are ready for their intended use.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction, over their
estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at
each year end, with the effect of any changes in estimate accounted for on a prospective basis.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
Intangible assets
Intangible assets acquired separately
Intangible assets acquired separately are reported at cost less accumulated amortization and accumulated impairment losses.
Amortization is charged on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are
reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Computer software
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software.
These costs are amortized over their estimated useful lives (three to five years).
Impairment of assets
Assets with indefinite useful lives such as goodwill are not subject to amortization. Such assets are subject to impairment test each year.
Assets that are subject to amortization and depreciation are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows
68
Financial Report
(cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the
impairment at each reporting date.
Borrowing costs
Borrowing costs are recognized in profit or loss in the period in which they are incurred. As detailed in Note 2.4, starting from 1 January
2009, the Company will begin to capitalize borrowing costs which are directly attributable to the assets that take a substantial amount of
time to get ready for use, such as prolonged periods of acquisition, construction, production or assembly, as part of the cost of the asset.
Financial instruments
Financial assets
Financial investments, except for those that are measured at fair value and for which the fair value difference is carried at profit or loss,
Investments are recognized and derecognized on a trade date where the purchase or sale of an investments under a contract whose
terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at
fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss, which are initially
measured at fair value.
Financial assets are classified into the following specified categories: financial assets as ‘at fair value through profit or loss’ (FVTPL),
‘held-to-maturity investments’, ‘available-for-sale’ (AFS) financial assets and ‘loans and receivables’.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the
relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset, or, where appropriate, a shorter period.
Income is recognized on an effective interest basis for debt instruments other than those financial assets designated as at fair value
through profit and loss.
Available-for-sale financial assets
Investments other than (a) held-to-maturity debt securities and (b) held for trading securities are classified as available-for-sale, and
are measured at subsequent reporting dates at fair value except available-for-sale investments that do not have quoted prices in active
markets and whose fair values cannot be reliably measured are stated at cost and restated to the equivalent purchasing power. Gains
and losses arising from changes in fair value are recognized directly in equity, until the security is disposed of or is determined to be
impaired, at which time the cumulative gain or loss previously recognized in equity is included in the profit or loss for the period.
Borrowings and receivables
Interest-bearing bank loans, trade and other receivables that are subject to the interest rates which are fixed on an entry value basis are
classified as borrowings and receivables. Borrowings and receivables are carried at cost discounted at the effective interest rate minus
impairment.
69
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance sheet date. Financial assets
are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the
financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortized cost, the
amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate.
Financial instruments (cont’d)
Financial assets (cont’d)
Impairment of financial assets (cont’d)
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade
receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it
is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance account are recognized in profit or loss.
In case of a decrease in impairment loss in the subsequent period, if decrease can be related to an event that has occurred after
impairment loss has been accounted for, the previously accounted impairment loss is derecognized in profit and loss accounts with the
amount that does not exceed the amortized cost that the investment would be carrying hadn’t the impairment loss been recognized. This
case does not apply to equity instruments available for sale.
The increase in value of equity instruments available for sale after an impairment loss has been accounted for is directly accounted in
equity accounts.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which their
maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject
to an insignificant risk of changes in value.
Financial liabilities
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract
that evidences a residual interest in the assets of the Company after deducting all of its liabilities. The accounting policies adopted for
specific financial liabilities and equity instruments are set out below.
Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities.
70
Financial Report
Financial liabilities at fair value through profit and loss
Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or it is designated as at FVTPL. Financial
liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognized in profit or loss. The net gain or loss recognized in
profit or loss incorporates any interest paid on the financial liability.
Financial instruments (cont’d)
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense
recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected
life of the financial liability, or, where appropriate, a shorter period.
Derivative financial instruments and hedge accounting
Derivative financial instruments are initially measured at cost on the contract date, including any related transaction costs, and are
remeasured to fair value at subsequent reporting dates. All derivative financial instruments are classified as financial assets measured
at fair value and carried on the income statement. The fair value of derivative financial instruments are measured though their market
values or using the discounted cash flow method. The fair value of over-the-counter foreign exchange contracts are measured in
comparison with the forward exchange rates at the date of the balance sheet, with reference to the market interest rates of the original
forward exchange rate. Depending on the measured fair value being positive or negative, the derivative financial instruments are stated
within the balance sheets as assets or liabilities respectively.
The differences arising from the revaluations of the fair values of derivative financial instruments, which are measured at fair value are
carried on the income statements. While some derivative financial instruments provide adequate protection and hedging from economic
risks, according to IAS 39, they are accounted as “Derivative financial instrumens for which the fair value differences are reflected upon
the income statement” and their fair value differences are carried on the income statements.
Effects of Changes in Foreign Exchange Rates
Transactions in currencies other than TL (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the
transactions during the preparation of financial statements. Foreign currency indexed monetary assets and liabilities are recorded at
the rates of exchange prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognized in profit or loss in the
period in which they arise.
71
Earnings per share
Earnings per share disclosed in the accompanying consolidated statement of income is determined by dividing net income by the
weighted average number of shares in existence during the year concerned.
In Turkey, companies can raise their share capital by distributing “Bonus Shares” to shareholders from retained earnings. In computing
earnings per share, such “bonus share” distributions are assessed as issued shares. Accordingly, the retrospective effect for those share
distributions is taken into consideration in determining the weighted-average number of shares outstanding used in this computation.
Subsequent events
Events following the balance sheet date include any favorable or unfavorable event that took place between the balance sheet date and
the publication date of the balance sheet, despite any possible event that might arise after the publicization of any information regarding
profits or other financial figures.
The Company adjusts its financial statements if such adjusting subsequent events arise.
Provisions, contingent liabilities, contingent assets
Provisions are recognized when the Company has a present obligation as a result of a past event, and it is probable that the Company
will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance
sheet date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of
those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable
is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured
reliably.
Warranties
Provisions of warranty costs are recognized at the date of sale of the relevant products, at the directors’ best estimate of the expenditure
required to settle the Company’s obligation.
72
Financial Report
Taxation and deferred tax
Income tax expense comprises current tax and deferred tax expenses.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are
never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively
enacted by the balance sheet date.
Deferred tax
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the
corresponding tax bases which is used in the computation of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for
all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and
interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable
profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled
or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax
assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred taxes are recognized as an expense or income in profit or loss.
73
Employee benefits / Retirement pay provision
Under Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily leaving the Company.
Such payments are considered as being part of defined retirement benefit plan as per IAS 19 (Revised) “Employee Benefits” (“IAS 19”).
The retirement benefit obligation recognized in the balance sheet have been measured as the net current value of the liabilities that are
expected to emerge from the retirements of all employees and disclosed as such on the financial statements. Any actuarial gains and
losses calculated are carried on the income statement.
Statement of Cash Flows
Cash flows are classified according to operating, investment and finance activities in the statement of cash flows.
Cash flows from operating activities reflect cash flows generated from white durable goods sales of the Company.
Cash flows from investment activities express cash used in investment activities (direct investments and financial investments) and cash
flows generated from investment activities of the Company.
Cash flows relating to finance activities express sources of financial activities and payment schedules of the Company.
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which their
maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject
to an insignificant risk of changes in value.
Critical accounting estimates and assumptions
The preparation of financial statements require the use of estimations that can potentially affect the assets and liabilities as reported
on the balance sheet date, the contingent asset and liability descriptions and the income and expense amounts as reported throughout
the accounting period. Although these estimations are based on the best knowledge of the Company’s management on the events and
transactions, actual results may vary from the estimated events. The estimates and assumptions that may cause a material adjustment
to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Useful lives of property, plant and equipment
The Company calculates the depreciation of property, plant and equipment by using the useful lives given in Note 10.
Provisions, contingent liabilities, contingent assets
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance
sheet date, taking into account the risks and uncertainties surrounding the obligation.
74
Financial Report
3.
CASH AND CASH EQUIVALENTS
31 December
31 December
2008
2007
5.629
10.871
1.480.053
425.589
Cash on hand
Cash at banks:
Demand deposits
Time deposits mature within three months
72.174.517
32.849
73.660.199
469.309
Risk management objectives and policies associated with cash and cash equivalents are explained in Note 25.
4.
FINANCIAL INVESTMENTS
Financial Assets Available for Sale
Shares
Company name
Profilo Elektrogerate (*)
31 December
Pay
31 December
%
2008
%
2007
100,00
68.251
100,00
68.251
Pro-Eks Dış Ticaret A.Ş. (**)
0,23
274.753
0,23
274.753
Profilo Telra A.Ş.
0,16
1.124.003
0,16
1.124.003
Profilo Telra A.Ş. değer düşüş karşılığı (-)
Ak Enerji A.Ş. (**)
(1.124.003)
0,01
(1.124.003)
479
0,01
343.483
479
343.483
(*) Profilo Elektrogerate was not consolidated since its total assets and transaction volume deemed immaterial taken the financial
statements as a whole.
(**) Available-for-sale financial investment does not have a quoted market price and its fair value cannot be reliably measured. For
this reason it is presented at cost less provision for diminution in value, if any.
5.
FINANCIAL BORROWINGS
Weighted average
effective
Currency type
TL
EUR
31 December 2008
interest rate
Current
Non-current
16,58%
73.256.780
55.078.385
4,51%
6.368.673
39.522.461
79.625.453
94.600.846
Weighted average
effective
Currency type
TL
EUR
31 December 2007
interest rate
Current
Non-current
21,57%
66.190.516
25.741.500
3,74%
4.545.245
36.390.029
70.735.761
62.131.529
75
5.
FINANCIAL BORROWINGS (cont’d)
The borrowings are repayable as follows:
31 December
31 December
2008
2007
To be paid within 1 year
79.643.453
70.735.761
To be paid between 1-2 years
15.365.308
6.797.220
15.365.308
9.222.385
15.365.308
9.222.385
15.365.308
9.222.385
To be paid between 5+ years
33.139.614
27.667.154
174.244.299
132.867.290
The Company’s major financial borrowings are as follows:
As of 31 December 2008 the Company is carrying loans taken in 1999 from Bayer Hypo Bank to be used in investments and as work
ing capital. These loans, whose maturies are in 2008 and 2009 were used to purchase fixed assets and working capital for the pur
pose of production and modernization.
The Company has taken a loan amounting to EUR 20,000,000 and TL 25,741,500 in 2007 and TL 31,317,000 in 2008 from European
Investment Bank to finance its investment projects in the year 2007. The maturities of these loans are between 2009 and 2015. All
loans are guaranteed by BSH Bosch und Siemens Hausgeräte GmbH (Germany).
6.
OTHER FINANCIAL LIABILITIES
Liabilities arising from derivative instruments (Note: 26)
7.
31 December
31 December
2008
2007
-
2.073.680
31 December
31 December
2008
2007
152.597.531
136.718.570
TRADE RECEIVABLES AND PAYABLES
Details of trade receivables as of the balance sheet date are as follows:
Current trade receivables
Trade receivables
Notes receivable
576.869.193
510.838.553
Discount on trade receivables (-)
(27.273.268)
(20.596.659)
Allowance for doubtful receivables (-)
(26.991.857)
(22.872.356)
675.201.599
604.088.108
76
Financial Report
7.
TRADE RECEIVABLES AND PAYABLES (cont’d)
Average turnover of notes receivable is 108 days (31 Aralık 2007: 90). The maturities of notes receivable as of 2008 and 2007 are as follows:
1 month
31 December
31 December
2008
2007
8.311.510
22.295.033
2 months
104.366.220
94.932.170
3 months
95.338.810
95.342.950
4 months
82.964.240
90.760.440
5 months
74.342.690
67.589.660
6 months and more
211.545.723
139.918.300
576.869.193
510.838.553
The provisions on doubtful receivables have been estimated based on the experience from previous years considering the collection
issues associated with these receivables.
The amount of allowance for doubtful receivables is determined based on historical collectability analysis.
The movement of the doubtful receivable provision of the Company is as follows:
Movement of allowance for doubtful receivables
Balance at beginning of the period
1 January -
1 January -
31 December
31 December
2008
2007
22.872.356
6.269.471
8.599.134
17.888.378
Amounts recovered during the period
(1.538.560)
(894.596)
Amouns written off
(2.941.073)
(390.897)
Closing balance
26.991.857
22.872.356
Amounts written off during the period
Risk management objectives and policies associated with trade receivables are explained in Note 25.
As of the balance sheet date, trade payables are summarized below:
31 December
31 December
2008
2007
Trade payables
122.389.964
157.501.304
Notes payables
-
8.000.000
Short term trade payables
Discount on notes payables (-)
Other trade payables
-
(66.988)
8.191
6.680
122.398.155
165.440.996
77
8.
OTHER RECEIVABLES AND PAYABLES
a) Other Receivables
31 December
31 December
2008
2007
3.980.010
2.096.399
Deposits and guarantees given
679.964
620.203
Due from personnel
300.406
362.949
Other Current Receivables
Taxes receivable
Other
Other Non-current Receivables
Collaterals and guarantees given
170.488
146.169
5.130.868
3.225.720
31 December
31 December
2008
2007
98.466
89.686
Risk management objectives and policies associated with other receivables is explained in Note 25.
b) Other Liabilities
31 December
31 December
Other Current Liabilities
2008
2007
Taxes and dues payable
7.690.606
8.023.125
Social security premiums payable
3.618.662
3.348.581
721.435
653.045
Accrued remuneration to foundation and labor organization
120.178
381.482
Other current liabilities
462.463
415.407
12.613.344
12.821.640
Deposits collected and guarantees taken
78
Financial Report
9.
INVENTORIES
Raw materials
Work in process
31 December
31 December
2008
2007
56.686.289
51.768.089
2.818.594
1.985.554
Finished goods
32.559.350
40.016.083
Trade goods
44.378.866
37.724.983
Goods in transit
40.599.125
66.380.060
Allowance for impairment on inventory (-)
(11.560.950)
(10.639.281)
165.481.274
187.235.488
31 December
31 December
2008
2007
7.710.976
6.717.866
Allowance for impairment of inventory is as follows:
Raw materials
Finished goods and trade goods
The movement of allowance for impairment of inventory
Opening balance
Charge for the year
Closing balance
3.849.974
3.921.415
11.560.950
10.639.281
1 January -
1 January -
31 December
31 December
2008
2007
10.639.281
6.806.241
921.669
3.833.040
11.560.950
10.639.281
The Company has recorded the impairment of certain inventories amounting to TL 921,669 (1 January - 31 December 2007:
TL 3,833,040) as cost of sales.
79
10.
PROPERTY, PLANT AND EQUIPMENT
Land
Cost
Land Improvements
Plant, Machinery
Motor
Furniture and
Leasehold
Construction in
Buildings
and Equipment
Vehicles
Fixture
Improvements
Progress
Total
Opening balance
6.767.734
6.693.467
110.805.479
510.406.230
1.796.092
136.434.059
18.877.174
15.569.975
807.350.210
Additions
as of 1 January 2008
17.000
53.876
2.528.173
31.455.372
14.311
12.856.742
1.916.369
5.614.239
54.456.082
Disposals
(174.767)
-
(385.812)
(1.271.707)
(4.270)
(5.504.656)
(778.108)
-
(8.119.320)
-
-
-
15.059.176
339.791
34.094
-
(15.433.061)
-
as of 31 December 2008 6.609.967
6.747.343
112.947.840
555.649.071
2.145.924
143.820.239
20.015.435
5.751.153
853.686.972
(5.422.174) (36.659.697)
(339.434.161)
(1.162.514)
(96.465.441)
(9.923.676)
- (489.067.663)
Transfers from
construction in progress
Closing balance
Accumulated Depreciation
Opening balance
-
Charge for the year
-
(335.147)
(3.117.713)
(47.087.817)
(179.768)
(11.844.527)
(2.239.862)
-
(64.804.834)
Disposals
-
-
26.286
985.818
795
3.672.112
307.159
-
4.992.170
-
(5.757.321)
(39.751.124)
(385.536.160)
(1.341.487)
(104.637.856)
(11.856.379)
6.767.734
1.271.293
74.145.782
170.972.069
633.578
39.968.618
8.953.498
15.569.975
318.282.547
as of 31 December 2008 6.609.967
990.022
73.196.716
170.112.911
804.437
39.182.383
8.159.056
5.751.153
304.806.645
Closing balance
as of 31 December 2008
- (548.880.327)
Net book value
Closing balance
80
Financial Report
10.
PROPERTY, PLANT AND EQUIPMENT (cont’d)
Land
Cost
Land Improvements
Plant, Machinery
Motor
Furniture and
Leasehold
Construction in
Buildings
and Equipment
Vehicles
Fixture
Improvements
Progress
Total
749.822.919
Opening balance
6.442.734
6.583.463
98.775.991
483.548.834
2.022.055
128.501.227
17.147.317
6.801.298
Additions
325.000
110.004
13.462.658
25.994.994
9.264
11.909.271
2.166.185
14.457.733
68.435.109
Disposals
-
-
(1.433.170)
(4.826.654)
(235.227)
(3.976.439)
(436.328)
-
(10.907.818)
-
-
-
5.689.056
-
-
-
(5.689.056)
-
6.693.467
110.805.479
510.406.230
1.796.092
136.434.059
18.877.174
15.569.975
807.350.210
(5.086.766) (34.725.222)
(305.327.278)
(1.115.292)
(91.970.819)
(8.099.923)
Transfers from
construction in progress
Closing balance
as of 31 December 2007 6.767.734
Accumulated Depreciation
Opening balance
-
- (446.325.300)
Charge for the year
-
(335.408)
(2.866.455)
(38.326.914)
(182.389)
(7.686.314)
(2.044.528)
-
(51.442.008)
Disposals
-
-
931.980
4.220.031
135.167
3.191.692
220.775
-
8.699.645
(5.422.174) (36.659.697)
(339.434.161)
(1.162.514)
(96.465.441)
(9.923.676)
Closing balance
as of 31 December 2007
-
- (489.067.663)
Net book value
6.442.734
1.496.697
64.050.769
178.221.556
906.763
36.530.408
9.047.394
6.801.298
303.497.619
1.271.293
74.145.782
170.972.069
633.578
39.968.618
8.953.498
15.569.975
318.282.547
Net book value
as of 31 December 2007 6.767.734
81
10.
PROPERTY, PLANT AND EQUIPMENT (cont’d)
The following useful lives are used in the calculation of depreciation:
Useful life
Land Improvements
10-18 years
Buildings
25-33 years
Plant, Machinery and Equipment
3-13 years
Motor vehicles
5-6 years
Furniture and fixtures
5-8 years
Leasehold improvements
5 years
Depreciation expense of 45,139,070 (2007: 35,502,733) has been charged in ‘cost of goods sold’, 2,276,585 (2007: 1,782,648) in
‘selling and marketing costs’, 15,427,407 (2007: 12,149,575) in ‘general administrative expenses’, 634,050 (2007: 387,497) in ‘re
search and development expenses’ and 1,327,722 (2007: 1,619,555) in ‘finished goods inventory’.
11.
INTANGIBLE ASSETS
Other
Intangible
Cost
Rights
Assest
Total
453.009
2.013.387
2.466.396
Additions
-
190.707
190.707
Disposals
-
(1.875)
(1.875)
453.009
2.202.219
2.655.228
Opening balance as of 1 January 2008
(313.308)
(1.908.054)
(2.221.362)
Charge for the year
(115.364)
(182.223)
(297.587)
Closing balance as of 31 December 2008
Accumulated Amortization
Disposals
-
1.875
1.875
(428.672)
(2.088.402)
(2.517.074)
Net book value as of 1 January 2008
139.701
105.333
245.034
Net book value as of 31 December 2008
24.337
113.817
138.154
82
Financial Report
11.
INTANGIBLE ASSETS (cont’d)
Other
Intangible
Cost
Rights
Assest
Total
451.827
1.804.285
2.256.112
Additions
1.240
209.102
210.342
Disposals
(58)
-
(58)
453.009
2.013.387
2.466.396
(201.118)
(1.562.735)
(1.763.853)
Charge for the year
(112.248)
(345.319)
(457.567)
Accumulated Amortization
Disposals
58
-
58
(313.308)
(1.908.054)
(2.221.362)
Net book value as of 1 January 2007
250.709
241.550
492.259
Net book value as of 31 December 2007
139.701
105.333
245.034
Other intangible assets are composed of copyright development and other intangible asset acquisition costs within the company.
The following useful lives are used in the calculation of amortization:
Rights and other intangible assets
Useful life
3-5 years
Amortization expense of 207,281 TL (2007: 315,790) has been charged in ‘cost of goods sold’, 10,454 (2007: 15,856) in ‘selling and
marketing costs’, 70,843 (2007: 108,068) in ‘general administrative expenses’, 2,912 (2007: 3,447) in ‘research and development
expenses’ and 6,097 (2007: 14,406) in ‘finished goods in inventories’.
12.
PROVISIONS AND CONTINGENT LIABILITIES
Current provisions
31 December
31 December
2008
2007
Provision for license commission costs (i)
70.083.370
-
After sales warranty provision (ii)
43.140.220
45.581.057
Promotion and assembly provision (iii)
7.236.004
3.392.096
Provision for sales and marketing costs
3.266.560
-
Other
1.633.386
1.211.052
125.359.540
50.184.205
83
12.
PROVISIONS AND CONTINGENT LIABILITIES (cont’d)
(i)
The ratio of the license commission fee payable to BSH Germany has been brought to the attention of the Ministry of Finance by
the Company and the approval process is still ongoing as of the publishing date of the report. The Company has provided for
the amount it believes is due and has emerged in the year 2008. The Company management believes that the aforementioned
approval process will be finalized within the year 2009 and that the license commission amount will be paid to BSH Germany
following the approval of the Ministry of Finance.
(ii) The provision for after sales guarantee represents the present value of the managements’ best estimate of the future outflow
of economic benefits that will be required under the Company’s 36-month warranty program for white durable goods.
The estimate has been made on the basis of historical warranty trends and may vary as a result of new goods, altered
manufacturing processes or other events affecting product quality.
(iii) The Company provided a provision for the goods which were sold to distributors but of which the assembling has not yet been
completed as of 31 December 2008. The Company also provided a provision for the goods already sold together with discounted
goods or promotion goods that were not sent as of 31 December 2008.
As of 1 January 2007
Additional provisions
After sales
Promotion and
warranty provision
assembly provision
24.840.481
2.327.182
40.147.574
1.422.703
(19.406.998)
(357.789)
Balance at 31 December 2007
45.581.057
3.392.096
As of 1 January 2008
45.581.057
3.392.096
Additional provisions
40.904.180
4.004.720
(43.345.017)
(160.812)
43.140.220
7.236.004
Payments / realizations
Payments / realizations
Balance at 31 December 2008
The Company has announced to public with its announcement to the CMB dated 12 September 2008 that Telra Elektronik Sanayi ve
Ticaret A.Ş., the supplier and manufacturer of the electronics goods marketed and sold by the Company, has filed litigational claims
against the Company with respect to claims of an alleged violation of the Distribution Agreement signed on 8 October 2003 among
the parties, on 1 August 2008, at the T.C. Kadikoy 2nd Common Trade Law Bench, against the Company, executive directors, and
Ruling Partner BSH Bosch und Siemens Hausgeräte GmbH, for a litigational liability amounting but not limited to 30 million USD
(TL 34,911,000) for any spiritual and material damages. The lawyers of the Company state that the probability of losing the case as
minimal, with no associated imminent risk of liabilities.
13.
COMMITMENTS
The Company committed to make USD 496,198,800 worth of exports, as of 31 December 2008, in compliance with the Inward
Processing Certificates (31 December 2007: USD 611,842,310).
84
Financial Report
14.
EMPLOYMENT TERMINATION BENEFITS
Retirement pay provision:
Under Turkish Labor Law, the Company is required to pay employment termination benefits to each entitled employee. Also,
employees are entitled to be paid their retirement pay provisions who retired by gaining right to receive retirement pay provisions
according to of the prevailing 506 numbered Social Insurance Law’s Article 60, as amended by 6 March 1981 dated, 2422
numbered and 25 August 1999 dated, 4447 numbered laws. Some transition provisions related to the pre-retirement service term
was excluded from the law since the related law was changed as of 23 May 2002.
The amount payable consists of one month’s salary limited to a maximum of TL 2,173.19 for each period of service as of 31
December 2008 (31 December 2007: TL 2,030.19).
The liability is not funded, as there is no funding requirement in Turkey. The provision has been calculated by estimating the
present value of the future probable obligation of the Company arising from the retirement of employees. IAS 19 requires actuarial
valuation methods to be developed to estimate the enterprise’s obligation under defined benefit plans. Accordingly, the following
actuarial assumptions were used in the calculation of the total liability:
The principal assumption is that the maximum liability for each year of service will increase parallel with inflation. Thus, the
discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Consequently,
in the accompanying financial statements as of 31 December 2008, the provision has been calculated by estimating the present
value of the future probable obligation of the Company arising from the retirement of the employees. The provisions at the
respective balance sheet dates have been calculated assuming an annual inflation rate of 5% and a discount rate of 11%, resulting
in a real discount rate of approximately 5.71% (31 December 2007: 5.71%). The anticipated rate of forfeitures is considered. The
maximum liability is revised semi annually.
2008
2007
Provision at 1 January
Service cost
Actuarial (gain)/ loss
Interest cost
Retirement pay paid
18.852.067
4.808.436
2.328.742
2.018.283
(4.590.435)
23.603.368
4.086.974
(7.477.587)
1.510.227
(2.870.915)
Provision at 31 December
23.417.093
18.852.067
TL 6,534,572 of the total current provision (2007: TL 1,900,452) has been charged in ‘cost of goods sold’, TL 1,979,764
(2007: TL 74,764) in ‘selling and marketing costs’, and TL 641,125 (2007: TL 54,668) in ‘general administrative expenses’.
Short term employee benefits
31 December
2008
31 December
2007
Bonus provisions
Provision for unused vacation
Payables to personnel
Due to shareholders
7.608.592
4.048.623
2.443.199
45.206
6.159.243
3.734.002
1.660.588
35.954
14.145.620
11.589.787
85
15.
OTHER ASSETS AND LIABILITIES
VAT carried forward
Cost sharing income accrual (*)
Advances given to services and distributors (**)
Forward income accruals
Advances given for purchases
Prepaid expenses
Advances given for advertisement and travelling
Other VAT
Advances given to employees
Other current assets
Advances given (**)
Prepaid expenses
Other Current Liabilities
Advances received for purchases
Deferred revenue (***)
Inventory count surplus
Other VAT
Other non-Current Liabilities
Deferred revenue (***)
31 December
2008
31 December
2007
17.885.620
6.298.233
1.273.548
1.210.994
501.269
445.845
313.592
123.246
59.436
99.488
28.211.271
23.072.577
4.848.417
1.599.927
5.894.913
312.021
708.000
112.980
42.854
183.643
36.775.332
31 December
2008
31 December
2007
824.971
3.275
828.246
1.579.245
59.968
1.639.213
31 December
2008
31 December
2007
51.223.998
1.617.034
135.449
123.254
53.099.735
45.850.529
752.915
224.382
113.002
46.940.828
31 December
2008
31 December
2007
10.692.287
8.179.890
(*) In accordance with the agreement made by the Company with BSH Germany, certain after-sales warranty expenses related
with exported refrigerators will be paid by BSH Bosch and Siemens Hausgeräte GmbH (Germany). As of 31 December 2008, the
Company booked TL 490,243 (2007: TL 4,848,417), and TL 5,807,990 (2007: None), a total of TL 6,298,233 regarding cost sharing
income accruals for warranty and R&D costs respectively.
(**) During 2007 the Company gave advances to its distributors to cover their debts to tax authorities. Those advances will be
collected from distributors at their respective maturities.
(***) In addition to the warranty expenses, the Company sells additional warranty certificates to its customers. The related income
derives from the portions of the the months and years covered by these warranty certificates.
86
Financial Report
16.
EQUITY
a) Share Capital
As of 31 December 2008 and 31 December 2007 the share capital held is as follows:
Shareholders
BSH Bosch und Siemens
Hausgeraete GMBH
(“BSH-GERMANY” or “BSH-D”)
Deutsche Bank A.G.
Publicly traded
Other
Nominal capital
Inflation adjustment
Adjusted capital
%
31 December
2008
%
31 December
2007
97,84
0,72
1,44
41.093.559
301.641
604.800
95,88
0,86
0,86
2,40
40.269.255
363.822
358.923
1.008.000
100,00
42.000.000
100,0
42.000.000
150.427.940
192.427.940
150.427.940
192.427.940
The total number of common stock shares of the Company in 2008 is 4,2 billion shares (2007: 4,2 billion shares) with a par value
of YTL 0.01 per share (2007: YTL 0.01 per share).
On 29 December 2008, the majority shareholder of the Company, BSH Bosch und Siemens Hausgeräte GmbH (Germany) has
purchased 363,822 lots of the Company’s shares for 5,989,375 US Dollar (Lot price being 16,4624 USD, from $1 = TL 1,5043
making 1 lot share price TL 24,76) from Deutsche Bank AG outside the stock exchange. The ratio of the shares subject to this
transaction to total capital is 0.866%. Following this transaction, Deutsche Bank AG does not own any share in equity of the
Company (BSHEV).
b) Restricted Profit Reserves
Legal Reserves
31 December
2008
31 December
2007
25.529.383
21.732.414
The legal reserves consist of first and second legal reserves, appropriated in accordance with the Turkish Commercial Code. The
first legal reserve is appropriated out of historical statutory profits at the rate of 5% per annum, until the total reserve reaches
20% of the historical paid-in share capital. The second legal reserve is appropriated after the first legal reserve and dividends, at
the rate of 10% per annum of all cash dividend distributions.
c) Retained Earnings / Accumulated Deficit
The Company has classified TL 196,563,322 as extraordinary reserves in retained earnings as of 31 December 2008 (31 December
2007: TL 160,259,532).
87
16.
EQUITY (cont’d)
In accordance with the CMB’s requirements which were effective until 1 January 2008, the amount generated from first-time
application of inflation adjustments on financial statements, and followed under the “accumulated loss” item was taken into
consideration as a reduction in the calculation of profit distribution based on the inflation adjusted financial statements within
the scope of the CMB’s regulation issued on profit distribution. The related amount that was followed under the “accumulated
loss” item could also be offset against the profit for the period (if any) and undistributed retained earnings and the remaining loss
amount could be offset against capital reserves arising from the restatement of extraordinary reserves, legal reserves and equity
items, respectively.
In addition, in accordance with the CMB’s requirements which were effective until 1 January 2008, at the first-time application
of inflation adjustments on financial statements, equity items, namely “Capital issue premiums”, “Legal reserves”, “Statutory
reserves”, “Special reserves” and “Extraordinary reserves” were carried at nominal value in the balance sheet and restatement
differences of such items were presented in equity under the “Shareholders’ equity inflation restatement differences” line item in
aggregate. “Shareholders’ equity inflation restatement differences” related to all equity items could only be subject to the capital
increase by bonus issue or loss deduction, while the carrying value of extraordinary reserves could be subject to the capital
increase by bonus issue; cash profit distribution or loss offsetting.
However, in accordance with the Communiqué Volume: XI, No: 29 issued on 1 January 2008 and other related CMB’s announcements, “Paid-in capital”, “Restricted profit reserves” and “Premium in excess of par” should be carried at their registered
amounts in statutory records. Restatement differences (e.g. inflation restatement differences) arising from the application of the
Communiqué should be associated with:
- “Capital restatement differences” account, following the “Paid-in capital” line item in the financial statements, if such differences are arising from “Paid-in Capital” and not added to capital;
- “Retained earnings/ Accumulated loss”, if such differences are arising from “Restricted profit reserves” and “Premium in excess
of par” and has not been subjected to profit distribution or capital increase.
Other equity items are carried at the amounts that are valued based on the CMB’s Financial Reporting Standards.
Capital restatement differences can only be included in capital.
Based on the CMB’s decree issued on 9 January 2009, for listed companies, minimum profit distribution rate shall be applied as
20% for the year 2008 (31 December 2007: 20%). In accordance with this decree and CMB’s Communiqué Volume: IV, No: 27
“Communique for the Principles of the Distribution of Dividends and Dividend Advances for Listed Companies Regulated by CMB”,
depending on the decision made in general shareholders’ meeting, the profit distribution can be made either by giving bonus
shares to shareholders which are issued either in cash or by adding dividend to capital or giving some amount of cash and some
amount of bonus shares to shareholders. If the primary dividend amount determined is less than 5% of the paid-in capital, the
Decree gives the option to not to distribute the related amount as to keep within the equity. However, for companies that have
not made any dividend distributions in the prior period and therefore has classified their shares as “old shares” and “new shares”
and those that will distribute dividends from the profit for the year obtained from their activities, primary dividend amount shall
be distributed in cash.
In this context, if profit distribution amount calculated based on the CMB’s regulation on the minimum profit distribution requirement over the net distributable profit calculated based on the CMB’s regulations is fully recovered from the distributable profit
presented in the statutory records, the company will distribute the full amount; if not, the company will only distribute the net
distributable profit presented in the statutory records.
Resources That Can Be Subject To Profit Distribution:
As of the balance sheet date, the Company’s statutory net profit for the period is TL 71,316,401 TL (31 December 2007: TL
80,170,445) and the total of other resources that can be subject to profit distribution is TL 196,563,322 (31 December 2007: TL
160,259,532).
88
Financial Report
17.
SALES AND COST OF SALES
Sales
Domestic Sales
Exports
Sales returns (-)
Sales discounts (-)
1 January -
1 January -
31 December
31 December
2008
2007
1.239.914.327
1.203.185.449
791.356.620
656.939.705
(20.292.115)
(14.645.453)
(104.737.261)
(120.754.667)
1.906.241.571
1.724.725.034
4.797.612
4.686.667
Service sales
Domestic service sales
Export service sales
5.086.313
4.332.286
9.883.925
9.018.953
90.890.311
81.185.245
2.007.015.807
1.814.929.232
852.445.695
756.434.243
Employee benefits expenses
69.555.112
54.012.675
Production overheads
77.451.442
67.558.190
Depreciation and amortisation expenses
45.346.351
35.818.523
Change in work-in-progress inventories
(833.040)
479.352
Change in finished goods inventories
7.456.733
(13.930.269)
Cost of service and assembly material
12.680.692
9.339.366
1.064.102.985
909.712.080
339.051.439
393.810.260
1.492.620
1.524.594
Other sales
Raw material and spare part sales
Total Sales
Cost of Sales
Cost of raw materials
Cost of merchandises sold
Cost of services rendered
Cost of other sales
51.291.757
38.766.873
1.455.938.801
1.343.813.807
89
18.
RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SELLING AND DISTRIBUTION EXPENSES, GENERAL ADMINISTRATIVE
EXPENSES
1 January -
1 January -
31 December
31 December
2008
2007
Marketing, selling and distribution expenses (-)
274.337.082
243.223.043
General administrative expenses (-)
153.857.661
81.691.370
9.645.404
20.934.154
437.840.147
345.848.567
5.384.373
4.581.014
Research and development expenses (-)
Research and development expenses
Employee benefit expenses
Depreciation and amortisation expenses
636.962
390.943
Sampling and testing expenses
1.378.655
1.093.025
Material consumption expenses
259.403
1.240.223
Consulting and license expenses
303.248
11.751.224
Other research and development expenses
1.682.763
1.877.725
9.645.404
20.934.154
45.937.759
39.316.013
2.287.039
1.798.505
Marketing, selling and distribution expenses
Personnel expenses
Depreciation and amortisation charges
Shipment and exportation expenses
72.630.012
61.121.742
After sales service expenses
69.220.108
59.599.200
Advertisement expenses
47.558.784
47.194.484
Other marketing, selling and distribution expenses
36.703.380
34.193.099
274.337.082
243.223.043
Personnel expenses
30.293.256
26.051.739
Depreciation and amortisation charges
15.498.250
12.257.643
Consulting and license expenses
86.166.582
13.144.443
8.599.134
17.888.378
General administrative expenses
Allowance for doubtful receivables
Other general administrative expenses
13.300.439
12.349.167
153.857.661
81.691.370
90
Financial Report
19.
OTHER OPERATING INCOME AND LOSS
Income / Profit from other operations
Foreign consulting income
BSH-D R&D cost sharing income
Transportation income
Reversal of unnecessary provisions
Other service income
Tax refunds received
Discounts and promotions received
Tubitak R&D premium income
Claims and other recoveries made
Other income
Expense / Loss from other operations
Loss on disposal of tangible assets (-)
Provision expenses (-)
Other expenses and losses (-)
20.
2007
8.875.882
5.807.990
4.585.042
1.538.560
1.488.747
1.191.396
674.524
653.320
497.857
12.304.177
37.617.495
7.656.410
3.455.445
894.596
1.159.339
1.414.511
491.396
2.078.395
1.759.284
9.580.569
28.489.945
2008
2007
1.093.938
719.038
1.812.976
1.029.598
1.124.002
633.178
2.786.778
2008
2007
55.773.894
25.782.486
18.796.155
15.577.352
626.982
116.556.869
25.798.095
17.954.820
7.475.806
15.768.353
586.957
67.584.031
2008
2007
77.300.950
44.459.745
33.221.008
19.026.121
718.339
751.670
175.477.833
23.255.604
45.670.699
20.733.059
13.284.181
715.052
1.168.750
104.827.345
FINANCIAL INCOME
Foreign exchange gains
Discount interest income
Forward interest income
Interest income related with sales
Interest income
21.
2008
FINANCIAL EXPENSES
Foreign exchange losses (-)
Interest expense (-)
Discount interest expense (-)
Foreign exchange losses (-)
Interest expense related to purchases (-)
Other expenses (-)
91
22.
CURRENT TAX LIABILITIES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)
Current tax liability
Current corporate tax provision
Less: prepaid taxes and funds
Current tax liability:
Current corporate tax provision
Deferred tax (income) / expense
31 December
2008
31 December
2007
34.576.532
(33.016.688)
1.559.844
29.935.480
(20.234.566)
9.700.914
2008
2007
34.576.532
(15.917.609)
18.658.923
29.935.480
(5.988.509)
23.946.971
Corporate Tax
The Company is subject to Turkish corporate taxes. Provision is made in the accompanying financial statements for the estimated
charge based on the Company’s results for the year.
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding back
non-deductible expenses, and by deducting dividends received from resident companies, other exempt income and investment
incentives utilized.
The effective rate of tax in 2008 is 20% (2007: 20%).
In Turkey, advance tax returns are filed on a quarterly basis. The advance corporate income tax rate in 2008 is 20% (2007: 20%).
Losses are allowed to be carried 5 years maximum to be deducted from the taxable profit of the following years. Tax carry back is
not allowed.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns between
1-25 April following the close of the accounting year to which they relate. Tax authorities may, however, examine such returns and
the underlying accounting records and may revise assessments within five years.
92
Financial Report
22.
CURRENT TAX LIABILITIES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont’d)
Deferred Tax
The Company recognizes deferred tax assets and liabilities based upon temporary differences arising between its financial
statements prepared in compliance with IFRS and its statutory tax financial statements. These differences usually result in the
recognition of revenue and expenses in different reporting periods for IFRS financial statements and statutory tax financial
statements and are set out below.
Deferred tax assets and liabilities are calculated at %20 (2007: 20%).
Deferred tax (assets) / liabilities:
Restatement and depreciation / amortisation differences
of tangible and other intangible assets
License commission expense provision
Warranty provision
Provision for employment termination benefits
Change in inventory
Provision for employee premiums
Discount on receivables and payables
Promotion and assembly provision
Doubtful receivable provision
Other
31 December
2008
31 December
2007
17.622.504
(14.016.674)
(8.529.995)
(4.683.419)
(2.508.222)
(1.521.718)
(1.495.147)
(1.488.189)
(1.413.552)
622.340
(17.412.072)
20.053.741
(8.146.528)
(3.770.414)
(2.432.902)
(1.231.849)
(889.446)
(773.706)
(2.329.400)
(1.973.959)
(1.494.463)
Movement of deferred tax (assets) / liabilities for the years ended 31 December 2008 and 31 December 2007 is as follows:
Movement of deferred tax (assets) / liabilities:
2008
2007
Opening balance as of 1 January
Deferred tax income
Closing balance as of 31 December
(1.494.463)
(15.917.609)
(17.412.072)
4.494.046
(5.988.509)
(1.494.463)
93
22.
CURRENT TAX LIABILITIES (INCLUDING DEFERRED TAX ASSETS and LIABILITIES) (cont’d)
Income Withholding Tax
In addition to corporate taxes, companies should also calculate income withholding taxes and funds surcharge on any dividends
distributed, except for companies receiving dividends domiciled in Turkey and Turkish branches of foreign companies. The rate of
income withholding tax is 10% starting from 24 April 2003. This rate was changed to 15% commencing from 23 July 2006 with the
Cabinet decision 2006/10731. Undistributed dividends incorporated in share capital are not subject to income withholding taxes.
Withholding tax at the rate of 19.8% is still applied to investment allowances relating to investment incentive certificates obtained
prior to 24 April 2003. Subsequent to this date, companies can deduct 40% of the investments within the scope of the investment
incentive certificate and that are directly related to production facilities of the Company. The investments without investment
incentive certificates do not qualify for tax allowance.
Investment incentive certificates are revoked commencing from 1 January 2006. If companies cannot use their investment
incentives as of 31 December 2005 due to inadequate taxable profit, such outstanding investment incentive can be carried
forward to following years so as to be deducted from taxable income of subsequent profitable years. However the companies can
deduct the carried forward outstanding allowance from 2006, 2007 and 2008 taxable income. The investment incentive amount
that cannot be deducted from the 2008 taxable income will not be carried forward to following years.
The tax rate that the companies can use in the case of deducting the tax investment incentive amount in 2006, 2007 and 2008
is 30%. If the companies do not use the investment incentive carried forward, the effective tax rate will be 20% and the unused
investment incentive will be cancelled.
The Company has applied 20% rate of tax since it had not utilized investment incentives.
Total charge for the year can be reconciled to the accounting profit as follows:
2008
2007
90.120.414
165.805.443
20%
20%
Tax calculated
Tax effects of:
- Expenses that are not deductible in determining taxable profit
- Change in building depreciation
- Revenue that is exempt from taxation
18.024.083
33.161.089
165.410
469.430
284.324
433.021
484.284
Income tax expense recognised in profit or loss
18.658.923
34.362.718
Tax reconciliation
Profit from operations
Tax at the domestic income tax rate of 20% (2007: 20%)
94
Financial Report
23.
EARNINGS PER SHARE
For the years ending 31 December 2008 and 31 December 2007, the weighted average number of shares and earnings per share
are as follows:
2008
2007
Number of outstanding shares
As of 1 January (total)
Issued shares
4.200.000.000
-
4.200.000.000
-
Number of outstanding shares
As of 31 December (total)
4.200.000.000
4.200.000.000
Outstanding shares in
weighted average units
4.200.000.000
4.200.000.000
71.461.491
89.779.740
1,70
2,14
Net profit for the year (TL)
(Par value of each share is 0.01 TL)
Earning per share (TL)
95
24.
TRANSACTIONS WITH RELATED PARTIES
Balances with related parties
Receivables
Current trade receivables
31 December 2008 31 December 2007
Main Shareholder
BSH Bosch und Siemens Hausgerate
GmbH (Germany)
Related parties
BSH Electrodomesticos Espana S.A. (Spain)
BSH Home Appliances Corporation (U.S.A.)
BSH Elettrodomestici S.p.A. (Italy)
BSH Electromenager S.A.S. (France)
BSH Sprzet Gospodarstwa Domowego
Sp.z o.o. (Poland)
BSHHV Willem van Rijn HuishoudElektro B.V.- (Holland)
BSH Home Appliances Ltd. (Israel)
BSH Home Appliances Ltd. (U.K.)
BSH Hushallsapparater (Sweden)
BSH Hisni Aparati d.o.o. (Slovenia)
BSH Drives and Pumps s.r.o. (Slovakia)
Other related parties
Subsidiary
Profilo Telra Elektronik Sanayi ve Tic. A.Ş.
Payables
Current trade payables
31 December 2008
31 December 2007
39.944.062
36.671.875
16.120.013
38.918.134
6.512.688
4.264.805
4.724.915
3.999.623
3.658.583
10.365.122
3.443.867
6.422.939
1.633.586
3.426.659
1.201.589
59.669
357.219
2.646.923
70.930
1.078.176
3.608.845
5.551.075
-
-
2.565.783
1.623.568
2.341.704
191.381
717.922
3.353.359
3.105.158
2.313.162
717.503
1.024.002
61.608
120.821
2.408.097
32.274
1.883.008
58.083
74.153.879
664.964
78.693.271
20.361.290
368.980
45.024.234
As of 31 December 2008, the Company has provided TL 70,083,370 for the license commission fees payable to BSH Bosch und
Siemens Hausgeräte GmbH (BSH Germany).
96
Financial Report
24. TRANSACTIONS WITH RELATED PARTIES (cont’d)
1 January - 31 December 2008
Transactions with related parties
Purchases
Sales
Interest received
Interest paid
License expenses
153.500.551 288.643.350
-
-
79.431.122
29.002.946
61.503.941
-
-
-
11.600
32.314.323
-
-
-
59.669
61.054.385
-
-
-
-
36.855.053
-
-
-
BSH Sprzet Gospodarstwa Domowego Sp.z o.o. (Poland)
14.354.375
30.664.326
-
-
-
BSHHV Willem van Rijn Huishoud-Elektro B.V.- (Holland)
-
25.997.295
-
-
-
-
15.163.514
-
-
-
-
60.033.448
-
-
-
-
51.991.819
-
-
-
120.821
5.358.142
-
-
-
36.753.397
-
-
-
-
-
-
-
10.884.789
-
Main Shareholder
BSH Bosch und Siemens Hausgerate GmbH (Germany)
Related parties
BSH Finance Management GmbH (Austria)
Siemens Electrogerate GmbH (Germany)
4.752.660
194
-
-
-
BSH Ikiakes Syskeves A.B.E. (Greece)
7.170.761
11.285.521
-
-
-
Other related parties
1.717.434
6.271.562
-
-
-
43.712.726
-
1.724.783
3.508
-
291.156.940 687.136.873
1.724.783
10.888.297
79.431.122
Subsidiary
97
24.
TRANSACTIONS WITH RELATED PARTIES (cont’d)
1 January - 31 December 2007
Balances with related parties
Purchases
Sales
Interest received
Interest paid
License expenses
157.939.090
222.134.621
-
-
18.261.849
30.258.926
67.366.186
-
-
-
-
29.527.125
-
-
-
70.930
75.579.322
-
-
-
-
20.105.688
-
-
-
Main Shareholder
BSH Bosch und Siemens Hausgerate GmbH (Germany)
Related parties
BSH Sprzet Gospodarstwa Domowego Sp.z o.o. (Poland)
13.154.124
21.219.585
-
-
BSHHV Willem van Rijn Huishoud-Elektro B.V.- (Holland)
-
19.755.388
-
-
-
-
16.058.195
-
-
-
-
58.158.454
-
-
-
-
24.801.282
-
-
-
-
7.477.512
-
-
-
30.043.956
-
-
-
-
-
-
-
14.698.277
-
BSH Finance Management GmbH (Austria)
Siemens Electrogerate GmbH (Germany)
8.927.443
-
-
-
-
BSH Ikiakes Syskeves A.B.E. (Greece)
2.735.153
7.972.721
-
-
-
BSH Continental Eletrodomesticos Ltda. (Brezilya)
2.893.907
2.741.006
-
-
-
60.300.177
-
1.523.848
197.111
-
306.323.706 572.897.085
1.523.848
14.895.388
18.261.849
Subsidiary
98
Financial Report
24.
31 December 2008
Original
Weighted Average
Currency
Maturity
Interest Rate %
Liabilities
TL
28.11.2008 - 26.02.2009
24,75
25.584.375
EUR
30.05.2008 - 23.12.2009
6,48
227.782.801
Borrowings from related parties:
Current
BSH Finance Managment GmbH (Austria)
253.367.176
31 December 2007
Original
Weighted Average
Currency
Maturity
Interest Rate %
Liabilities
TL
14.12.2007 - 28.01.2008
16,83
67.333.300
EUR
31.05.2007 - 30.09.2008
5,07
158.756.854
Borrowings from related parties:
Current
226.090.154
99
24.
Compensation and remuneration of key management personnel during the year has been as follows:
Salaries and other short term benefits
Indemnity paid for terminations
25.
2008
2007
6.023.795
94.806
6.118.601
6.729.741
6.541
6.736.282
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Capital risk management
The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximizing the
return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of debt, which includes the borrowings disclosed in note 5, cash and cash
equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
The Company’s risk management committee reviews the capital structure on a semi-annual basis. As a part of this review, the
committee considers the cost of capital and the risks associated with each class of capital. Based on recommendations of the
committee, the Company will balance its overall capital structure through the payment of dividends, new share issues and share
buy-backs as well as the issue of new debt or the redemption of existing debt.
The Company’s overall strategy remains unchanged from 2007.
Financial risk factors
The Company’s activities expose it to a variety of financial risks. The Company’s overall risk management program focuses on the
unpredictability of financial markets and seeks to minimize potential adverse effects on the company’s financial performance. The
Company uses derivative financial instruments to hedge certain risk exposures.
Risk management is carried out by a finance department under policies approved by the board of directors. Company treasury
identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units.
Market risk
The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see below)
and interest rates (see below). The Company enters into a variety of derivative financial instruments to manage its exposure to
interest rate and foreign currency risk.
In the current period, there has been no change to the Company’s exposure to market risks or the manner in which it manages
and measures the risk.
100
Financial Report
25.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)
Foreign currency risk management
The Company undertakes certain transactions denominated in foreign currencies. Exchange rate exposures are managed within
approved policy parameters utilizing forward foreign exchange contracts.
The carrying amount of the Company’s foreign currency denominated monetary assets and monetary liabilities at the reporting
date is disclosed below:
As of 31 December 2008 foreign currency denominated asset and liability balances were converted with the following exchange
rates; TL 1.5123 = USD 1 and TL 2.1408 = EUR 1 (31 December 2007: TL 1.1647 = USD 1 and TL 1.7102 = EUR 1).
Detailed Foreign Currency Position Denominated in Their Original Currencies
TL Equivalent
1. Trade Receivables
2. Monetary Financial Assets
3. Other
4. Total Assets (1+2+3)
5. Trade Payables
6. Financial Liabilities
7. Other Monetary Liabilities
8. Short Term Liabilities (5+6+7)
9. Long Term Financial Liabilities
10. Total Liabilities (8+9)
11. Net asset position of off-balance sheet derivatives
12. Net foreign currency asset / (liability)
provision (4-10+11)
13. Net foreign currency monetary
asset / (liability) position (1+2-5-6-7-9)
14. Total fair value of financial instruments
used for foreign currency hedging
15. Hedged portion of foreign currency assets
16. Hedged portion of foreign currency liabilities
17. Exports
18. Imports
31 December 2008
US Dollar
Euro
105.892.316
78.489.386
25.175.634
209.557.336
52.453.782
234.169.473
291.821
286.915.076
39.522.461
326.437.537
86.702.400
19.734.230
1.573.507
463.407
21.771.144
6.214.393
192.965
6.407.358
6.407.358
-
35.523.281
35.552.023
11.432.559
82.507.863
20.111.993
109.384.096
129.496.089
18.461.538
147.957.627
40.500.000
(30.177.801)
15.363.786
(24.949.764)
(142.055.835)
14.900.379
(76.882.323)
1.210.994
86.702.400
804.593.379
691.412.344
74.981.684
32.117.189
565.674
40.500.000
369.617.311
343.488.062
101
25.
Foreign currency risk management (cont’d)
Detailed Foreign Currency Position Denominated in Their Original Currencies
1. Trade Receivable
2. Monetary Financial Assets
3. Other
4. Total Assets (1+2+3)
5. Trade Payables
6. Financial Liabilities
7. Other Monetary Liabilities
8. Short Term Liabilities (5+6+7)
9. Long Term Financial Liabilities
10. Total Liabilities (8+9)
11. Net asset position of off-balance sheet derivatives
12. Net foreign currency asset / (liability)
provision (4-10+11)
13. Net foreign currency monetary
asset / (liability) position (1+2-5-6-7-9)
14. Total fair value of financial instruments
used for foreign currency hedging
15. Hedged portion of foreign currency assets
16. Hedged portion of foreign currency liabilities
17. Exports
18. Imports
TL Equivalent
31 December 2007
US Dollar
101.110.677
2.049.069
78.938.086
182.097.832
111.114.933
165.475.780
373.091
276.963.804
36.390.029
313.353.833
74.016.080
19.652.016
28.204
2.801.062
22.481.282
2.105.024
952.258
317.563
3.374.845
3.374.845
38.000.000
45.738.495
1.178.938
44.249.614
91.167.047
63.538.306
96.109.628
1.886
159.649.820
21.278.230
180.928.050
17.400.000
(57.239.921)
57.106.437
(72.361.003)
(210.194.087)
16.305.375
(134.010.617)
(2.073.680)
74.016.080
674.127.199
541.385.451
(1.352.623)
38.000.000
87.961.389
16.936.680
(498.280)
17.400.000
317.044.596
295.069.933
Euro
102
Financial Report
25.
Foreign currency sensitivity
The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar
and the Euro.
The following table details the Company’s sensitivity to a 10% increase and decrease in the TL against the relevant foreign
currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and
represents management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only
outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in
foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Company
where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number
indicates an increase in profit or loss.
31 December 2008
Profit / (Loss)
Valuation of
Devaluation of
foreign currency
foreign currency
In the case of US Dollar gaining 10 % value against TL
1 - US Dollar net asset / (liability)
2- Portion hedged against US Dollar risk
3- US Dollar net effect
2.253.384
2.253.384
(2.253.384)
(2.253.384)
(16.458.968)
16.458.968
5 - Portion hedged against Euro risk
6- Euro net effect
8.670.240
(7.788.728)
(8.670.240)
7.788.728
TOTAL
(5.535.344)
5.535.344
In the case of Euro gaining 10 % value against TL
4 - Euro net asset / (liability)
31 December 2007
Profit / (Loss)
Valuation of
Devaluation of
foreign currency
foreign currency
In the case of US Dollar gaining 10 % value against TL
1 - US Dollar net asset / (liability)
2- Portion hedged against US Dollar risk
3- US Dollar net effect
In the case of Euro gaining 10 % value against TL
4 - Euro net asset / (liability)
5 - Portion hedged against Euro risk
6- Euro net effect
TOTAL
1.899.087
4.425.860
6.324.947
(1.899.087)
(4.425.860)
(6.324.947)
(22.918.496)
2.975.748
(19.942.748)
22.918.496
(2.975.748)
19.942.748
(13.617.801)
13.617.801
103
25.
Credit risk management
The Company is subject to credit risk due to trade receivables resulting from sales on credit terms and deposits in bank accounts.
Significant portion of trade receivables is from related parties. For the management of risks associated with receivables from third
parties prospective, the principle is to obtain sufficient collateral where appropriate, as means of mitigating the risk of financial
loss from defaults. In this scope, collaterals obtained are gurantee letters, mortgages and security bonds.
For the customers which do not provide sufficient collaterals, risk is controlled by setting up individual credit limits. These credit
limits are determined via credit evaluations through monitoring their financial positions, historical operations and other factors.
The credit limits and the use of these limits are periodically reviewed by the Company.
The same credit risk management principles are applied for the management of financial assets. Deposits are invested in
instruments with higher liquidities and credit ratings of counterparty is considered.
The details of credit and receivables risks as of 31 December 2008 and 2007 are as follows:
31 December 2008
Trade Receivables
Related
Third
party
party
Maximum net credit risk as of balance sheet date
74.153.879
-The part of maximum risk under guarantee with collateral etc.
A. Net book value of financial assets that are neither
5.785.448
past due nor impaired
B. Net book value of financial assets that are rescheduled, if not
that will be accepted as past due or impared
C. Carrying value of financial assets that are past due but not impaired 68.368.431
- the part under guarantee with collateral etc.
D. Net book value of impaired assets
- past due (gross carrying amount)
- Impairment (-)
- The part of net value under guarantee with collaterals etc.
-
Deposits in
Derivative
Banks instruments
675.201.599
73.654.570
(367.938.602)
633.708.020
73.654.570
1.210.994
1.210.994
-
-
-
41.174.629
(28.881.570)
318.950
27.310.807
(26.991.857)
(1.896.000)
-
-
458.438
458.438
-
-
-
-
-
31 December 2007
Maximum net credit risk as of balance sheet date
78.693.271 604.088.108
-The part of maximum risk under guarantee with collateral etc.
- (354.796.536)
A. Net book value of financial assets that are neither
6.527.435 560.803.728
past due nor impaired
B. Net book value of financial assets that are rescheduled, if not that
will be accepted as past due or impared
C. Carrying value of financial assets that are past due
but not impaired
72.165.836 43.027.423
- the part under guarantee with collateral etc.
- (17.194.155)
D. Net book value of impaired assets
256.957
- past due (gross carrying amount)
- 23.129.313
- Impairment (-)
- (22.872.356)
- The part of net value under guarantee with collaterals etc.
- (6.632.810)
104
Financial Report
25.
Credit risk management (cont’d)
The aging of overdue trade receivables is as follows:
Trade
Receivables
Related
Party
Receivables
Other
Trade
Receivables
Total
1-30 days overdue
1-3 months overdue
3-12 months overdue
1-5 years overdue
More than 5 years overdue
22.174.758
19.023.757
8.416.840
2.343.443
-
52.319.704
10.645.097
4.904.050
499.580
-
298.024
2.487.738
6.055.300
6.640.415
1.045.161
74.792.486
32.156.592
19.376.190
9.483.438
1.045.161
Total trade receivables overdue
51.958.798
68.368.431
16.526.638
136.853.867
31 December 2008
The part under guarantee with collateral
30.777.570
Trade
Receivables
Related
Party
Receivables
Other
Trade
Receivables
Total
1-30 days overdue
1-3 months overdue
3-12 months overdue
1-5 years overdue
More than 5 years overdue
18.343.194
27.019.472
4.511.680
1.376.052
67.192
48.794.266
17.440.188
5.537.689
147.740
245.953
718.198
3.477.515
5.999.952
3.462.853
1.180.628
67.855.658
47.937.175
16.049.321
4.986.645
1.493.773
Total trade receivables overdue
51.317.590
72.165.836
14.839.146
138.322.572
31 December 2007
The part under guarantee with collateral
23.826.965
Colleterals held for trade receivables that are past due but not impaired:
Letter of guarantees
Mortgages
31 December
2008
31 December
2007
305.000
28.576.570
28.881.570
17.194.155
17.194.155
31 December
2008
1.896.000
31 December
2007
6.632.810
Colleterals held for trade receivables that are impaired:
Mortgages
105
25.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk
management framework for the management of the Company’s short, medium and long-term funding and liquidity management
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities.
The following tables detail the Company’s remaining contractual maturities for its non-derivative financial liabilities. The tables
have been prepared based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay. The table includes both interest and principal cash flows. The adjustments column represents
the possible future cash flows attributable to the instrument included in the maturity analysis which are not included in the
carrying amount of the financial liability on the balance sheet.
106
Financial Report
25.
Liquidity risk management (cont’d)
31 December 2008
Contractual maturity analysis
Total cash
outflow according
Carrying
to contract
value
(I+II+III+IV)
Less than
3 months (I)
3-12
months (II)
1-5
years (III)
More than
5 years (IV)
Non-derivative financial liabilities
Financial liabilities to related parties
Trade payables to related parties
Trade payables
Other payables
Debt provisions (Note: 12)
174.244.299
253.367.176
20.361.290
122.398.155
12.613.344
70.083.370
653.067.634
189.609.607
300.821.970
20.407.860
123.683.240
12.613.344
70.083.370
717.219.391
32.369.800
28.583.176
20.407.860
123.683.240
12.607.844
217.651.920
47.273.654
272.238.794
5.500
70.083.370
389.601.318
76.826.538
76.826.538
33.139.615
33.139.615
93.220.451
(92.009.457)
1.210.994
93.220.451
(94.880.390)
(1.659.939)
49.566.957
(48.724.240)
842.717
43.653.494
(46.156.150)
(2.502.656)
-
-
Derivative financial liabilities
Derivative cash inflow
Derivative cash outflow
Net cash inflow from derivatives
107
25.
Liquidity risk management (cont’d)
31 December 2007
Contractual maturity analysis
Total cash
outflow according
Carrying
to contract
value
(I+II+III+IV)
Less than
3 months (I)
3-12
months (II)
1-5
years (III)
More than
5 years (IV)
Non-derivative financial liabilities
Financial liabilities to related parties
Trade payables to related parties
Trade payables
Other payables
132.867.290
226.090.154
45.024.234
165.440.996
12.821.640
582.244.314
176.471.668
245.368.883
45.258.250
167.590.672
12.821.640
647.511.113
60.760.054
69.948.894
45.258.250
167.590.672
12.806.003
356.363.873
10.850.558
175.419.989
14.275
186.284.822
61.177.995
1.362
61.179.357
43.683.061
43.683.061
90.109.502
(92.183.182)
(2.073.680)
90.109.502
(94.564.836)
(4.455.334)
53.224.162
(55.125.256)
(1.901.094)
36.885.340
(39.439.580)
(2.554.240)
-
-
Derivative financial liabilities
Derivative cash inflow
Derivative cash outflow
Net cash inflow from derivatives
108
Financial Report
25.
FINANCIAL INSTRUMENTS
Categories of financial instruments and fair values
31 December 2008
Financial assets at
amortized cost
Financial
investments
at cost
Loans and
receivables
Financial
liabilities at
amortized cost
Carrying
value
Note
73.660.199
-
343.483
74.153.879
675.201.599
-
-
73.660.199
74.153.879
675.201.599
343.483
3
24
7
4
-
-
-
174.244.299
253.367.176
122.398.155
20.361.290
174.244.299
253.367.176
122.398.155
20.361.290
5
24
7
24
Financial assets at
amortized cost
Financial
investments
at cost
Loans and
receivables
Financial
liabilities at
amortized cost
Carrying
value
Note
469.309
-
343.483
78.693.271
604.088.108
-
-
469.309
78.693.271
604.088.108
343.483
3
24
7
4
-
-
-
132.867.290
226.090.514
165.440.996
45.024.234
132.867.290
226.090.514
165.440.996
45.024.234
5
24
7
24
Financial assets
Due from related parties
Trade receivables
Financial investments
Borrowings
Borrowings from related parties
Trade payables
Due to related parties
31 December 2007
Financial assets
Due from related parties
Trade receivables
Financial investments
Borrowings
Borrowings from related parties
Trade payables
Due to related parties
The Company believes that the carrying values of its financial instruments reflect their fair values.
109
26.
FINANCIAL INSTRUMENTS (cont’d)
Derivative Financial Instruments
In addition, the Company has made foreign exchange forward agreements in order to hedge the possible fair value changes in its
liabilities denominated in foreign currencies as of 31 December 2008.
Opening Date
Closing Date
Foreign Currency Type
National Foreign
Currency Amount
06.08.2008 - 29.12.2008
11.08.2008 - 01.11.2008
07.01.2009 - 23.06.2009
29.01.2009 – 30.04.2009
EUR
USD
40,500,000
4,200,000
The Company reflected changes in the market values of the forward agreements into the statement of income. As of the balance
sheet date, TL 1,210,994 income accrual was accounted for under “Other Financial Liabilities” in the accompanying financial
statements regarding foreign exchange forward agreements.
The summary of foreign exchange forward agreements as of 31 December 2007 is as follows:
Opening Date
Closing Date
Foreign Currency Type
National Foreign
Currency Amount
29.11.2007 - 24.12.2007
31.07.2007 - 12.12.2007
02.01.2008 - 15.05.2008
31.01.2008 - 30.06.2008
EUR
USD
17,400,000
51,380,000
The Company reflected changes in the market values of the forward agreements into the statement of income in 2007. As of the
31 December 2007 balance sheet date, YTL 2,073,680 expense accrual was accounted for under “Provisions” in the accompanying
financial statements.
110
Financial Report
27.
OTHER ISSUES THAT SIGNIFICANTLY EFFECT THE FINANCIAL STATEMENTS OR OTHER ISSUES REQUIRED FOR THE CLEAR
UNDERSTANDING OF FINANCIAL STATEMENTS
ADJUSTMENTS TO PRIOR YEAR FINANCIAL STATEMENTS
Subsequent to the issuance of the 31 December 2007 financial statements, the Company’s management has reviewed the
financial statements and has decided to restate their financial statements in accordance with IFRS 8 “Accounting Policies,
Changes in Accounting Estimates and Errors”. The effect of major adjustments for the restatement on net profit for the year ended
2007 is as below:
Net Profit
31 December
2007
As previously stated as of 31 December 2007
91.534.377
Unused vacation provision adjustment
Adjustment for cancelled transportation and guarantee provision
Other adjustments
3.000.000
(5.143.467)
388.830
As restated as of 31 December 2007
89.779.740
In addition to the restatement adjustments made in accordance with IAS 8 as explained above, the Company prepared its financial
statements for the first period after 1 January 2008 in accordance with Communiqué Serial XI No: 29. In order to be comply with
Communiqué Serial XI No: 29 the necessary changes in accounting policies were made as of 1 January 2007. The Company made
certain reclassifications to its financial statements as of 31 December 2006 in accordance with Communiqué Serial XI No: 29.
The effect of aforementioned restatements on the calculation of earnings per share is a decrease of TL 0.042 per share.
111
28.
UNDERSTANDING OF FINANCIAL STATEMENTS (cont’d)
ADJUSTMENTS TO PRIOR YEAR FINANCIAL STATEMENTS (cont’d)
Aforementioned reclassifications are summarized as follows:
1 January 2007
ASSETS
Current Assets
Trade and Related Party Receivables
Other Receivables
Inventories
Non-Current Assets
Trade Receivables
Other Receivables
Tangible Assets
Intangible Assets
TOTAL ASSETS
LIABILITIES
Short Term Liabilities
Financial Payables
Trade and Related Party Payables
Other Payables
Current Tax Liabilities
Debt Provisions
Long Term Liabilities
Financial Payables
Debt Provisions
Deferred Tax Liabilities
Other Long Term Liabilities
CAPITAL
Capital Commitments
Capital Inflation Adjustment (-)
Premium in Excess of Par
Restricted Reserves Transferred From Profit
Retained Earnings/(Accumulated Losses)
Net Profit/Loss of the Year
TOTAL LIABILITIES
Based on
Serial XI, No:25
Adjustments
Based on
Serial XI, No:29
744.989.101
17.565.767
584.195.546
11.674.677
124.456.726
7.096.385
305.545.271
80.251
1.467.607
303.315.404
674.474
7.535
1.050.534.372
52.550.220
(1.220.580)
772.517
47.423.867
5.574.416
(630)
(80.251)
80.251
(630)
182.215
(182.215)
52.549.590
797.539.321
17.565.767
582.974.966
12.447.194
171.880.593
12.670.801
305.544.641
80.251
1.466.977
303.497.619
492.259
7.535
1.103.083.962
541.723.010
346.446.469
101.636.784
43.297.521
50.342.236
41.066.723
7.099.927
23.603.368
5.154.932
5.208.496
57.348.376
(164.790.250)
221.018.134
16.958.296
29.601.460
(34.982.631)
(10.456.633)
(490.376)
(23.603.368)
23.603.368
(660.886)
170.510
599.071.386
181.656.219
322.654.918
16.958.296
29.601.460
8.314.890
39.885.603
40.576.347
7.099.927
23.603.368
4.494.046
5.379.006
467.744.639
42.000.000
190.622.409
102.458
16.902.414
95.238.688
122.878.670
1.050.534.372
(4.308.410)
(40.194.469)
21.660.958
14.225.101
52.549.590
463.436.229
42.000.000
150.427.940
102.458
16.902.414
116.899.646
137.103.771
1.103.083.962
112
Financial Report
28.
1 January 2008
ASSETS
Current Assets
Trade Receivables
Related Party Receivables
Other Receivables
Inventories
Non-Current Assets
Trade Receivables
Other Receivables
Tangible Assets
Intangible Assets
Deferred Tax Assets
TOTAL ASSETS
LIABILITIES
Short Term Liabilities
Financial Payables
Other Financial Payables
Trade Payables
Related Party Payables
Other Payables
Current Tax Liabilities
Debt Provisions
Long Term Liabilities
Financial Payables
Debt Provisions
Other Long Term Liabilities
CAPITAL
Capital Commitments
Capital Inflation Adjustment (-)
Premium in Excess of Par
Restricted Reserves Transferred From Profit
Retained Earnings/(Accumulated Losses)
Net Profit/Loss of the Year
TOTAL LIABILITIES
Based on
Serial XI, No:25
Adjustments
Based on
Serial XI, No:29
916.888.610
469.309
611.655.394
73.505.145
146.170
198.248.754
32.863.838
320.651.148
89.686
344.112
318.096.160
431.421
50.556
1.639.213
1.237.539.758
(6.401.382)
(7.567.286)
5.188.126
3.079.550
(11.013.266)
3.911.494
1.443.278
(89.686)
89.686
(629)
186.387
(186.387)
1.443.907
(4.958.104)
910.487.228
469.309
604.088.108
78.693.271
3.225.720
187.235.488
36.775.332
322.094.426
89.686
343.483
318.282.547
245.034
1.494.463
1.639.213
1.232.581.654
638.911.889
69.979.885
166.340.545
272.974.540
71.030.590
58.586.329
89.748.853
62.887.405
18.852.067
8.009.381
1.690.310
755.876
2.073.680
(899.549)
(1.860.152)
14.518.182
9.700.914
(14.687.142)
(7.911.499)
(585.367)
(755.876)
(18.852.067)
18.852.067
170.509
640.602.199
70.735.761
2.073.680
165.440.996
271.114.388
14.518.182
9.700.914
56.343.448
50.674.830
89.163.486
62.131.529
18.852.067
8.179.890
508.879.016
42.000.000
190.622.409
102.458
21.732.414
162.887.358
91.534.377
1.237.539.758
(6.063.047)
(40.194.469)
35.886.059
(1.754.637)
(4.958.104)
502.815.969
42.000.000
150.427.940
102.458
21.732.414
198.773.417
89.779.740
1.232.581.654
113
28.
The detailed information for the restatements made to prior year financial statements is as below:
-
Other Current Assets: Advances Given to Suppliers amounting to TL 5,894,913 presented in “Inventories” in the balance
sheet as of 31 December 2007 is presented in “Other Current Assets” in the financial statements dated 31 December 2008.
-
Trade Receivables and Other Receivables: Receivables from Personnel amounting oto TL 362,949 presented in “Due from
Related Parties” in the balance sheet as of 31 December 2007 are presented in “Other Receivables” in the financial
statements dated 31 December 2008.
-
Transactions With Related Parties: Transactions with related parties, which had separate lines in the balance sheet as
of 31 December 2007 are classified to “Trade Receivables”, “Trade Payables” and “Borrowings” according to their nature
and presented under these related accounts as additional lines within the balance sheet as of 31 December 2008.
-
Other Receivables: “Deposits and Guarantees Given” amounting to TL 620,203 presented in “Trade Receivables” in the
balance sheet as of 31 December 2007 are presented in “Other Receivables” in the financial statements dated 31 December
2008.
-
Financial Payables: Amounting to TL 4,372,058 presented in “Current Portion of Long Term Financial Payables” in the
balance sheet as of 31 December 2007 is presented in “Financial Borrowings” in the financial statements dated 31 December
2008.
-
Other Payables: Due to shareholders amounting to TL 35,954 and due to Personnel amounting of TL 1,660,588 presented
in “Due to Related Parties” in the balance sheet as of 31 December 2007 is presented in “Other Payables” in the financial
statements dated 31 December 2008.
-
Current Tax Liability: “Tax provision” amounting to TL 29,935,480 presented in “Provisions” in the balance sheet as of 31
December 2007 is presented in “Current Tax Liabilities” in the financial statements dated 31 December 2008.
-
Other Short Term Liabilities: “Unused Vacation Provisions” amounting to TL 3,734,002 presented in “Provisions” in the
balance sheet as of 31 December 2007 are presented in “Other Payables” in the financial statements dated 31 December
2008.
-
Other Short Term Liabilities: Item amounting to TL 45,850,529 presented in “Advances Received” in the balance sheet as of
31 December 2007 is presented in “Other Payables” in the financial statements dated 31 December 2008.
-
Employee Benefits: Provisions amounting to TL 18,852,067 presented in “Provisions” in the balance sheet as of 31 December
2007 are presented in “Provision for Employment Termination Benefits” in the financial statements dated 31 December 2008.
-
Retained Earning: Extraordinary Reserves amounting to TL 110,153,656 presented with a separate line in the balance sheet
as of 31 December 2007 are presented in “Retained Earning” in the financial statements dated 31 December 2008.

Annual Report

Transcription

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