Economic Performance

In 2007 the Group increased its EBITDA to $ 245 million and profi t before taxes to $ 170 million over the fi gures from the previous year, which stood at $ 227 million and $ 133 million, respectively. Parallel with Borusan’s growth in the volume of business and high investment levels, our total assets increased to $ 2 billion in 2007.

Additionally in 2007, Borusan’s total capital expenditures reached a record $ 159 million, the highest level in the Company’s history. These expenditures are a vital part of the strategic investments initiated in 2006, which ultimately will total $ 653 million between 2006 and 2010. Of the 2007 investments, $ 67 million was utilized for capacity increases in fl at steel and pipe production, while $ 19 million was applied to our rental fl eet investments in the earth moving equipment, power systems and automotive businesses. A further $ 13 million funded an investment for an Energy License. The Group’s portfolio restructuring efforts in 2007 are paving the way for a partnership between our Otomax business and Manheim, the world’s leading automobile auction and remarketing company. New and major key investment plans initiated in 2007 involved energy, a new line of business which started in August, and the decision in October to invest $ 500 million in a new hot strip mill with ArcelorMittal, the world steel giant.

At the end of 2006, as part of its strategic direction, the Board of Directors of Borusan Holding decided to invest in the energy sector. Our primary objective is to invest in renewable energy sources such as wind and hydro, as well as exploring the opportunities in alternative energy resources. Moreover, we aim to fully recognize the importance of creating a well balanced portfolio for the purpose of serving key customers. To achieve these goals Borusan Enerji started its journey in the fi rst half of the year by acquiring a 70 % stake in Maya Enerji, which owned a hydro power station license of 52 MW capacity.

Financial Highlights