CHAIRMAN'S MESSAGE

Ahmet Zorlu

Esteemed Stakeholders,

Although the COVID-19 pandemic still persists, we left behind another year during which socioeconomic fluctuations affected the world. 2021 was a year of increased imbalances throughout the markets while there was a consolidation in economic recovery. Problems in logistics and raw material supply, record increases in commodity prices triggered by rising energy and food prices, combined with the aftereffects of the expansionary monetary policies of the central banks, caused the emergence of a global inflation wave risk. We continue to experience the negative impacts of this process on the household appliances sector as well as in many other industries.

We left 2021 behind as a year throughout which the effects of the pandemic and fluctuations in the exchange rate set the agenda in Turkey as well. The recent cuts in interest rates have changed inflation expectations while at the same time increasing the pressure on the exchange rate, real household income and external financing. However, we have recorded improvements in industrial production as vaccination rates have increased. As Vestel Beyaz Eşya, we continued to contribute to the development of our country with our robust growth in export markets in 2021.

Thanks to Vestel Beyaz Eşya’s flexible and agile structure, digital transformation and technology-oriented business model, we have successfully managed this challenging process. Comprehensive risk management and diversity in our supplier network have played an important role in tackling the global supply challenge. Our export-oriented business model, which has expanded to 158 countries, plays an important role in maintaining our success by minimizing the risks posed by the changes in Turkey’s economic conditions. 2021 was a year during which we achieved a growth far above the market in Europe, our sales increased strongly in regions outside of Europe, including the American market, and we launched new investments and completed some of the investments under our capacity expansion program. In addition, we maintained our steady growth in the domestic market.

The pandemic process has become the threshold to a better understanding that the importance of sustainability and sustainability-oriented transformations will shape the future all over the world. Being aware of this phenomenon, we focused on improving sustainability as a way of doing business at Vestel Beyaz Eşya. We developed our strategy for Vestel Beyaz Eşya under the guidance of the Smart Life 2030 vision encompassing the entire value chain of Zorlu Group, highlighting business models that serve the climate-oriented and circular economy, and creating value for all stakeholders via a responsible investment approach and gathered our operations under three headings: “human-oriented technological transformation”, “a net zero company” and “accessible and smart solutions that make life easier”.

Human-Oriented Technological Transformation

We aim to achieve a human-oriented transformation in the entire value chain by leveraging the power of technology and innovation. We lead the consumer electronics and household appliances sectors in Turkey in terms of Industry 4.0 and digitalization practices by integrating emerging technologies, especially artificial intelligence (AI), the internet of things (IoT) and autonomous systems, into our manufacturing processes.

Driven by the transformation culture, we have increased our global market share and strengthened our competitiveness. We support education and training programs through which our employees can develop their knowledge and skills, and we encourage in-house innovation programs. We adopt diversity, inclusion and social benefit for all our stakeholders as our fundamental principles and integrate technological innovations that add value to human life into our processes. In line with the equal opportunities approach, we aim to increase our female employee ratio to 40% by 2030.

A Net Zero Company

In order to manage the ever-increasing effects of the climate crisis, transition to an economy based on net zero emissions is of great importance. And in order to achieve net zero emissions, especially in Vestel Beyaz Eşya’s operations, we aim to be a net zero company in the entire value chain by 2050. We will continue to improve different practices such as product recovery and repair as well as raw material recycling, with a focus on contributing to the circular economy.

Accessible and Smart Solutions That Make Life Easier

We design innovative products and services; and we believe that our products and services will play a key role in the building of a sustainable society. We strive to develop products with reduced environmental impact and high savings through our R&D and innovation competence, and we devote a significant part of our R&D budget to developing smart products that create benefits. Through our products, we aim to achieve energy and water efficiency, reduce plastics pollution, and render accessible the “Smart Home” concept based on customer experience.

I am very pleased to share Vestel Beyaz Eşya’s first integrated report, through which we describe our activities in integration with our sustainability approach in the light of our Smart Life 2030 strategy.

I sincerely believe that Vestel Beyaz Eşya will contribute to global problems with innovative and sustainable solutions under its new climate-friendly and social benefit-oriented strategy. I would like to express my gratitude to all our stakeholders, especially my colleagues, for their valuable cooperation and constant contributions.

Sincerely,

Ahmet Nazif Zorlu
Chairman