Brief information on Turkish White Goods & Electronics Industry including major players, production versus imports

1. Foreign Market Consulting Ltd. Sti
Istanbul
September 2016
White Goods, Electronics & HVAC
Industry in Turkey
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com

2. FMConsulting prepares market snapshot reports from selected trusted sources in Turkey which
are regularly updated. These reports are brief presentations overviewing available facts &
figures on major industries in Turkey. If you need a specific research on different
segments, please contact with our Head of Market Research Department Mrs. Berna Gurleyen
(b.gurleyen@fmconsulting.com ). We would be happy to support you.

3. Contents
© 2016 Foreign Market Consulting Ltd. Sti.
A White Goods Page 04
B Electronics Page 09
C HVAC Page 14
D Main Companies Page 18

4. 4
• Large scale Turkish and foreign manufacturers: Arcelik, Vestel, BSH, Indesit,
Candy Hoover
• 90-95% of the domestic market is covered by 6 big manufacturers. In addition, more
than 50 medium sized manufacturers, 500 parts & components manufacturers,
12,000 dealers, 1,500 technical services (Source: Ministry of Science, Industry and Technology, 2014 )
• 130,000 employees (Source: Social Security Institution, 2016)
• Largest production capacity in Europe: 25 mn units. (Source: White Goods Manufacturers’ Association
(TURKBESD) & White Goods Suppliers Association (BEYSAD), 2016)
• Export oriented growth. Exports/Production (2015): 74% (Main destination is the EU)
(Source: White Goods Manufacturers’ Association (TURKBESD) & White Goods Suppliers Association (BEYSAD), 2016)
A. White Goods
Overview

5. 5
A. White Goods
Production ('000 units)
Source: White Goods Manufacturers’ Association (TURKBESD) & White Goods Suppliers Association (BEYSAD), 2016
2011 2012 2013 2014 2015
Refrigerator 6790.1 7588.8 7225.8 6658.9 6833.3
Deep freeze 853.6 904.9 956.2 963.1 1038.0
Washing machine 5357.3 5467.6 5754.9 6307.8 7466.4
Dryer 700.8 888.1 901.3 935.9 1250.9
Dishwasher 2900.2 3204.3 3248.2 3483.2 3608.7
Oven 3504.7 3636.9 3853.6 4247.0 4365.9
Total 20106.7 21690.6 21940.0 22595.9 24563.2
0
5000
10000
15000
20000
25000
30000
Refrigerator Deep freeze Washing machine Dryer
Dishwasher Oven Total Linear (Total)
CAGR (Total): 5.1%

6. 6
A. White Goods
Domestic Sales ('000 units)
Source: White Goods Manufacturers’ Association (TURKBESD) & White Goods Suppliers Association (BEYSAD), 2016
2011 2012 2013 2014 2015
Refrigerator 1900.2 1878.8 2003.1 1907.6 1976.2
Deep freeze 292.4 437.9 587.5 535.3 571.2
Washing machine 1850.4 1756.2 1908.0 1896.5 2026.3
Dryer 98.2 101.3 83.7 64.4 81.7
Dishwasher 1552.9 1512.7 1448.6 1435.0 1483.4
Oven 776.6 768.6 799.9 867.6 951.2
Total 6470.7 6455.5 6830.8 6706.4 7090.0
0
1000
2000
3000
4000
5000
6000
7000
8000 CAGR (Total): 2.3%

7. 7
A. White Goods
Exports ('000 units)
Source: White Goods Manufacturers’ Association (TURKBESD) & White Goods Suppliers Association (BEYSAD), 2016
2011 2012 2013 2014 2015
Refrigerator 4887.8 5683.5 5107.7 4723.6 4736.2
Deep freeze 789 886.1 880.5 847.1 849.3
Washing machine 3854.6 4093.2 4186.8 4766.9 5600.5
Dryer 633.8 814.3 821.6 909.3 1180.8
Dishwasher 1510.4 1877.9 2020.9 2188.8 2255.8
Oven 2765.2 2942.2 3043.9 3467.9 3459.8
Total 14440.8 16297.2 16061.4 16903.6 18082.4
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000 CAGR (Total): 5.8%

8. 8
A. White Goods
Imports ('000 units)
Source: White Goods Manufacturers’ Association (TURKBESD) & White Goods Suppliers Association (BEYSAD), 2016
2011 2012 2013 2014 2015
Refrigerator 75.3 69.3 79.1 83.2 98.3
Deep freeze 194.6 251.6 380.0 228.4 314.6
Washing machine 329.7 316.3 344.4 270.9 291.7
Dryer 31.9 27.9 34.6 19.7 29.5
Dishwasher 189 188.8 212.4 148.2 145.7
Oven 60.2 58.8 72.8 70.1 61.8
Total 880.7 912.7 1123.3 820.5 941.6
0
200
400
600
800
1000
1200 CAGR (Total): 1.7%

9. 9
• Vestel is the TV market leader in Turkey and ranks 2nd in Europe. (Source: Vestel web
site, 2016)
• USD 13.5 bn production value, USD 25 bn domestic sales, USD 20 bn sales in
engineering and service. (Source: TESID [Turkish Electronic Industrialists Association] 2016)
• Exports: USD 5.8 bn (main market: EU, followed by North Africa-Middle East) (Source:
TESID, 2016)
• Imports: USD 17.3 bn (main sources: Far East, followed by the EU) (Source: TESID, 2016)
• 50,000 employees in production and 100,000 employees in related engineering and
services. (Source: TESID, 2016)
• USD 280 mn of R&D expenditures (Source: TESID, 2016)
B. Electronics
Overview

10. 10
B. Electronics
Production & Domestic Market
Source: TESID, 2016
8150
9482 9513 9508
9537
11287
12047
12539
13109
14018 13508
14527
15979
18714
17329
16878
20212
22275
21810
23908
25584
25027
0
5000
10000
15000
20000
25000
30000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Production Domestic Market Linear (Production) Linear (Domestic Market)
CAGR (Production): 5.2%
USD mn
CAGR (D. Market): 5.6%

11. 11
B. Electronics
Foreign Trade
Source: TESID, 2013
10835 10917
14098
13776
12227
14511
16726
16110
17374
18199
17286
4459 4421
4896
5955
4886
5586
6498
6839 6574 6632
5768
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Import Export Linear (Import) Linear (Export)
USD mn
CAGR (Import): 4.8%
CAGR (Export): 2.6%

12. 12
B. Electronics
Source: TESID, 2016
Segments
23%
19%
19%
15%
7%
17%
Production
Consumer Electronics
Computer
Telecommunication
Equipment and Cables
Defence Electronics
Components
Other Professional &
Industrial Equipment
34%
16%15%
11%
24%
Imports
Telecommunication Equipment
and Cables
Computer
Consumer Electronics
Components
Other Professional & Industrial
Equipment
38%
30%
17%
3%
12%
Exports
Telecommunication Equipment
and Cables
Consumer Electronics
Components
Computer
Other Professional & Industrial
Equipment

13. 13
• TV production, which is mainly carried out for exports to the EU, has been in a
decreasing trend due to the contracting TV market in Europe and increasing
competition from Far East in flat screen.
B. Electronics
TV Production & Exports
Source: TESID, 2016
9104
10070
8118
8381
7683
10901
11570
10113
10569
9772
0
2000
4000
6000
8000
10000
12000
14000
2011 2012 2013 2014 2015
Exports Production Linear (Exports) Linear (Production)
'000 units
CAGR (Production): -2.7%
CAGR (Export): -4.2%

14. 14
Domestic production (units):
•Air-conditioners: 740 thousand
(2015)
•Combi boilers: 1.5 mn (2014)
•Water heaters: 166 thousand
(2014)
Domestic market (units):
•Air-conditioners: 1 mn (2015)
•Combi boilers: 1 mn (2014)
•Water heaters: 116 thousand
(2014)
• Large scale foreign groups have acquired or built partnerships with Turkish
companies in the past:
Carrier Alarko (1998)
Buderus Isisan (2002. Later on, Bosch acquired Buderus in 2004.)
Vaillant DemirDokum (2007)
Daikin Airfel (2011)
BDR Thermea Baymak (2013)
• In 2013, Viessmann made greenfield investment in the city of Manisa to
manufacture 100,000 condensing combi-boilers per year.
C. HVAC
Overview
Sources: Air-conditioning and Refrigeration Manufacturer’s Association (ISKID), 2016
The Union of Chambers and Commodity Exchanges of Turkey (TOBB), 2015

15. 15
• As Turkey complies with the EU regulation which limits the sales of energy inefficient
air conditioners, the air conditioner market has contracted in last years.
C. HVAC
Air-Conditioners
Source: Air-conditioning and Refrigeration Manufacturer’s Association (ISKID), 2016
2303880
2991558
2711767
1613535
740062
1385038
2134872
2057027
1537324
1002419
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
2010 2011 2012 2013 2014
Production D. Sales
Linear (Production) Linear (D. Sales)
Units
355600
515767
599253
668699
411662
1297659
1466232
1211851
473788
374396
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2010 2011 2012 2013 2014
Imports Exports
Linear (Imports) Linear (Exports)
Units

16. 16
546829
1460996
1300658
1355401
1524907
754996
1303175
981610
1112088
1044904
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2010 2011 2012 2013 2014
Production D. Sales
Linear (Production) Linear (D. Sales)
Units
• CAGR (2010-2014): 29% in production, 8% in d. sales, 1% in imports, 25% in
exports.
C. HVAC
Combi Boilers
Source: The Union of Chambers and Commodity Exchanges of Turkey (TOBB), 2015
231891
302701
282141
305859
244550
270000
493183
87048
541164
655695
0
100000
200000
300000
400000
500000
600000
700000
2010 2011 2012 2013 2014
Imports Exports
Linear (Imports) Linear (Exports)
Units

17. 17
• CAGR (2010-2014): -2% in production, 9% in d. sales, 77% in imports, -7% in
exports.
C. HVAC
Water Heaters
Source: The Union of Chambers and Commodity Exchanges of Turkey (TOBB), 2015
179046
142631
175008
155377
165593
81725
123907 122527 124728
115827
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
2010 2011 2012 2013 2014
Production D. Sales
Linear (Production) Linear (D. Sales)
Units
1750
35843
29280 30229
17070
86441
65308
76664
58777
64475
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2010 2011 2012 2013 2014
Imports Exports
Linear (Imports) Linear (Exports)
Units

18. 18
D. Main Companies
Largest Manufacturers
Company Business Field Net Sales
(TRY mn, 2015)*
Number of
Employees
Arcelik White Goods 14,166.1 26,128
Vestel Elektronik Electronics 9,250.5 15,690
BSH Ev Aletleri White Goods 4,661.4 6,624
Vestel Beyaz Esya White Goods 2,524.1 6,445
Bosch Termoteknik HVAC 1,146.3 529
Indesit Company Beyaz Esya White Goods 1,018.6 1,059
Daikin Isitma ve Sogutma HVAC 756.7 844
Demirdokum (Vaillant) HVAC 671.0 1,213
Alarko Carrier HVAC 438.6 611
Baymak Makina (BDR Thermea) HVAC 369.1 646
Kumtel Dayanikli Tuketim Mallari White Goods 356.5 1,495
Candy Hoover Euroasia White Goods 353.0 560
*EUR 1 = TRY 3.021 in 2015
Source: Fortune Magazine (July 2016), Capital Magazine (Aug. 2016) and company web sites

19. Confidentiality
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information to be handled confidentially, especially regarding the sources used.
Liability
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customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com