44
A HEALTHY FUTURE INTEMA BUILDING MATERIALS MARKETING AND SALES COMPANY Annual Report 2002
A H E A L T H Y F U T U R E
INTEMA BUILDING MATERIALS MARKETING AND SALES COMPANY Annual Report 2002
Contents About Intema 01 Financial Highlights 02 Board of Directors 04 Chairman’s Message 06
Activities in 2002 09 An Overview of the Year 2002 10 Sales 11 Services 11 Distribution Channels 13 Promotion 14
Exhibition Activities 16 Suppliers 17 Information Technology 18 Human Resources 19 Developments in the Production of
Goods and Services 20 Report and Accounts for 2002 29 Balance Sheets 30 Notes to Balance Sheets 32 Statements of
Income 33 Statements of Retained Earnings 34 Statements of Sources and Uses of Funds 35 Statements of Cash Flows 36
Statements of Cost of Goods Sold 37 Independent Auditor’s Report 39
Eczac›bafl› Building Materials Division - Milestones
1998A joint-venture agreement with theKoramic Group of Belgium leads to thefoundation of Eczac›bafl›-KoramicBuilding Chemicals.
Eczac›bafl› Group establishes its firstoverseas plant -Vitra Ireland.
1992Eczac›bafl› Ceramic Tiles, a jointventure between the Eczac›bafl› Groupand Italy’s Marazzi, initiates wall andfloor tile production at its new plantin Bozüyük.
Inauguration of two new plants inTuzla: an acrylic bathtub plant and,with technical expertise supplied byGermany’s Bulthaup, a kitchen andbathroom furniture plant.
1996 Eczac›bafl› Building Materials-Vitra andEczac›bafl› Ceramic Tiles open theirsecond production plants in Bozüyük.Vitra’s plant has the highest ceramicsanitary ware production capacity ofany single facility worldwide.
1983 Inauguration of Eczac›bafl› BuildingMaterials-Artema’s modern sanitaryfittings plant in Bozüyük.
Ceramic sanitary ware exports toGermany begin.
1995Public offering of Eczac›bafl› BuildingMaterials, the Division’smanufacturer of ceramic sanitaryware and sanitary fittings.
1958 Dr. Nejat F. Eczac›bafl› founds Turkey’sfirst ceramic sanitary ware plant tosupply the growing demand forsanitary ware arising from rapidurbanization.
1978Establishment of Intema, the BuildingMaterials Division’s first publiclytraded company, to develop andmarket superior quality kitchen andbathroom units.
About Intema
0011
Established in 1978, Intema is the Eczac›bafl›
Building Materials Division’s sole marketing
and sales company in Turkey.
Intema’s nationwide distribution network is
founded on a business partnership approach
and comprises 72 exclusive and 35 brand-
loyalty dealerships. Apart from these selective
sales outlets, Intema has a number of
prestigious Intema Showrooms that sell
bathroom and kitchen suites and provide
architectural consultancy. The wide variety of
bathroom and kitchen displays at these
showrooms demonstrate forcefully to
consumers and professional buyers the
breadth and quality of Vitra and Artema’s
integrated bathroom and kitchen solutions.
Intema’s main suppliers are Eczac›bafl›
Building Materials-Vitra, Eczac›bafl› Building
Materials-Artema, Eczac›bafl› Ceramic Tiles,
Eczac›bafl› Bathroom and Kitchen Products
and Eczac›bafl›-Koramic Building Chemicals.
Intema is linked to its authorized dealers
through the IntemaNet B2B system, which
facilitates the transmission of data between
dealers and headquarters and accounted for
85 percent of all orders as of end-2002.
Intema’s Retail Sales Management software,
OBASE, enables Intema Showrooms to
respond quickly to customer orders.
DDrr.. NNeejjaatt FF.. EEcczzaacc››bbaaflfl›› (1913-1993)Founder of Eczac›bafl› Group
Financial Highlights
((TTLL mmiilllliioonnss)) 22000022 22000011
Net Sales 126,925,636 93,996,899
Profit After Financial Expenses 95,216 508,815
Net Profit (After Taxes) 282,582 410,554
Current Assets 23,291,570 15,317,673
Total Assets 37,565,755 24,585,231
Shareholders’ Equity 13,819,671 10,467,670
0033
Intema retained its market share with a 30.6 percent increase in sales. Several measurescontributed to this successful result: higher market shares in the middle and upper segments,successful results in the project business, direct marketing - especially to professionals, and bettercustomer service.
Board of Directors
BBüülleennttEEcczzaacc››bbaaflfl››Chairman
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Intema’s value-added approach to the market enabled it to maintain its profitability andconsolidate its position as one of the strongest and most reliable companies in the sector.
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Turkey’s economic recovery was marred by
continued volatility and uncertainty in 2002.
Positive expectations at the start of the year
were initially rewarded with exchange rate
stability and receding interest rates. In the
second half of the year, this promising trend
was reversed by political tension, which
rekindled market uncertainty and put
renewed pressure on interest rates and
inflation.
The former government’s decision in the
summer months to hold early general
elections provided some relief to markets, but
investor confidence remained weak until the
November general elections, which gave a
single party – for the first time in over a
decade – the clear majority in Parliament.
Market expectations were raised further in
subsequent weeks by Parliament’s rapid
approval of legislative reforms required from
European Union candidates and the new
government’s determined efforts to obtain a
date for membership negotiations.
Unfortunately, this positive momentum was
cut short by growing concerns of a US-led
military operation in Iraq that remained with
us through the early months of 2003.
Economic recovery in 2002 was also hindered
by the banking sector’s inability to recover
fully its capacity to generate and transfer
funds since the 2001 financial crisis.
Conditions in the construction sector reflected
this uncertain environment, with annual data
on construction permits indicating a
contraction in new construction projects by
more than 50 percent in 2002. Two other
factors greatly affecting the building materials
market were the slip in the market share of
small and medium-sized contractors and the
continued erosion in renovation demand,
traditionally a significant component of
overall demand. Consumers have responded
to economic volatility and financial
uncertainty by restricting their renovation
demand to essential purchases.
Under these difficult conditions, Intema
retained its market share with a 30.6 percent
increase in sales. Several measures
contributed to this successful result:
Chairman’s Message
higher market shares in the middle and upper
segments, successful results in the project
business, direct marketing – especially to
professionals, and better customer service.
Always focused on improving its display
capacity, Intema redesigned its longstanding
Niflantafl› Showroom in 2002, transforming it
into a six-floor 1,750 square meter showroom
unequaled in the sector.
As in 2001, Intema continued to face tough
and often unfair price competition in the
economic segment of the market, curtailing
its sales of low-end products. Fierce
competition in this segment largely derives
from the continuing lack of demand for low-
end real estate, which has reduced the cost
of economic housing projects and made cost
the most significant purchasing criteria for
these developers.
Intema’s value-added approach to the market
enabled it to maintain its profitability and
consolidate its position as one of the
strongest and most reliable companies in the
sector.
Additionally, Intema focused on demand-
generating activities in 2002. Last year, for
the first time ever, Intema launched
consumer campaigns offering convenient
discounts and payment terms for end-users.
These campaigns attracted a wide range of
customers to Vitra-Artema sales outlets and
put both brands at the forefront of the
renovation market. The Intema network’s
core competency – the provision of complete
bathroom and kitchen solutions – boosted
the sale of high-end products and enabled
Intema to take full advantage of brand value.
We do not expect an improvement in
building materials demand in 2003 or a
lessening of competition. So, to strengthen
our brands – especially in the economic
segment – we need to achieve a more
competitive structure. One of the ways we
plan to do this is by establishing sales outlets
that are accessible and respond to the
expectations of consumers in the economic
segment. Another is to continue organizing
demand-generating activities aimed directly at
end-users.
I am confident that these and other measures
will ensure that Intema retains its strong
position in the Turkish building materials
market as domestic demand gradually
recovers in the coming year.
BBüülleenntt EEcczzaacc››bbaaflfl››
Chairman
0077
We do not expect an improvement in building material demand in 2003 or a lessening ofcompetition. So, to strengthen our brands– especially in the economic segment – we need to achievea more competitive structure. One of the ways we plan to do this is by establishing sales outlets thatare accessible and respond to the expectations of consumers in the economic segment.
0099
Activities in 2002
In addition to its distributionnetwork of authorized dealers,Intema has a number of fully-owned showrooms at selectlocations that providearchitectural consultancy andcomplete kitchen and bathroomsolutions.
Activities in 2002
AAnn OOvveerrvviieeww ooff tthhee YYeeaarr 22000022The year 2002 continued to be difficult for
businesses in Turkey, with the impact of the
previous year’s financial crisis continuing to
depress national consumption in many
markets, including building materials.
Domestic demand was adversely affected by
the halt in investment, rising unemployment,
growing expectations of a war in Iraq and
consumer postponement of all non-essential
expenditures. Also holding back the recovery
in demand was the failure of the Turkish
banking sector to revive loans for investment
and consumption.
Negative macroeconomic developments
contributed to a significant reduction in both
new construction and renovation demand.
According to data published by the State
Institute of Statistics (DIE), construction
permits for new residential units and
buildings dropped 58 and 56 percent
respectively during the first nine months of
2002. From a longer perspective, the
declining trend started in 2000, with new
construction and new occupancy permits for
residential units falling by 59 and 38 percent
respectively over the three-year period. Unfair
competition, over-supply and other structural
problems further compounded the problems
caused by this steady and severe contraction.
Intema protected its market share in 2002,
with sales falling half as fast as the market,
which dropped 20 percent. Moreover, Intema
was also able to raise its average unit prices
in just about every product group above the
inflation rate. This was a notable achievement
given the high price elasticity of demand last
year, particularly in the economic segment.
This performance reflected Intema’s
successful management of the Vitra and
Artema brands, enabling it to take full
advantage of their strong brand value. It also
reflected the longstanding priority it has given
to customer relations management, brand
identity and the use of differentiated
communication programs tailored to the
expectations of targeted customer groups. In
2002, Intema continued to strengthen
PartnersClub, its flagship customer relations
management program, with expanded IT
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Intema showrooms generated 13.3 percent of
total sales. Authorized dealers accounted for
86.7 percent of total sales.
SSeerrvviicceessIntema offers the full range of before- and
after-sales services, including installation,
through 118 Vitra-Artema authorized services
nationwide. To improve the quality of service
at these points, Intema provided 360 hours of
training on technical subjects and 56 hours
on customer relations to 480 service
technicians.
Additionally, Intema provided 136 hours of
training to 1,500 plumbers participating in its
marketing activities. For the A-class plumbers
among these, Intema arranged 48 hours of
training at Division production facilities on
technical points and installation techniques.
These plumbers have also been given
PartnersClub membership, raising the total
number of members in this loyalty program
to 450.
Intema’s nationwide distribution network is designed in accordance with its product and brandpolicies and comprises 72 exclusive and 35 brand-loyalty dealerships.
infrastructure and marketing activities. These
measures enabled PartnersClub to raise its
share in total sales revenues by eight percent
last year – a striking demonstration of the
importance of customer loyalty.
Long the leader in the renovation market,
Intema added a new dimension to its retailing
activities in 2002 with the remodeling of its
Niflantafl› showroom into a multi-floor retail
outlet. In April and September, it also
organized the building material sector’s first-
ever consumer campaigns for end-users,
successfully reviving renovation demand and
directing it towards the Vitra and Artema
brands.
SSaalleessIntema’s gross sales rose 30.6 percent to TL
222,700 billion in 2002. Products
manufactured by Division companies
accounted for 96.7 percent of gross sales,
while the remaining 3.3 percent comprised
complementary products and services
purchased outside the Division.
PPrroodduucctt GGrroouuppss %%
Vitra Ceramic Tiles 34.5
Vitra Ceramic Sanitary Ware 18.3
Vitra Complementary Products 7.5
Vitra Bathtubs 9.0
Vitra Bathroom Furniture 2.9
Artema Faucets and Accessories 19.7
Vitra Kitchen Furniture 2.2
Vitra Fix Building Chemicals 2.6
1133
In 2002, Intema provided solutions to 95
percent of customer requests within 36
hours. These strong results enabled Intema to
achieve an average customer satisfaction rate
of 98 percent, according to a quarterly
satisfaction survey of 435 customers.
DDiissttrriibbuuttiioonn CChhaannnneellssIntema’s nationwide distribution network is
designed in accordance with its product and
brand policies and comprises 72 exclusive and
35 brand-loyalty dealerships. In 2002, Intema
expanded its geographical reach with four
new authorized dealers in Malatya, Mardin,
Bursa and Uflak.
In addition to authorized dealers, Intema
owns and operates a retail network where
consumers can obtain architectural
consultancy as well as complete kitchen and
bathroom solutions. This retail network
additionally offers a large selection of
bathroom and kitchen accessories that
Intema markets under the “Daily” concept. In
2002, the most significant development in
Intema’s retailing structure was the reopening
of the Niflantafl› showroom in November,
remodeled with a multi-floor retailing
approach. By offering end-users and
professional buyers the opportunity to see a
wide variety of bathroom and kitchen
displays, this showroom demonstrates the
core competency of Vitra and Artema’s
integrated solutions.
To increase consumer interest in its select
chain of outlets, Intema organized the
building material market’s first consumer
campaigns in April and September 2002.
Intema advertised the two campaigns in
newspapers and magazines and on radio and
billboards, to ensure the widest possible
audience. By offering attractive discounts and
payment terms as well as project design and
installation services, Intema was able to revive
an otherwise stagnant renovation demand.
Again, as part of its demand-generating
activities, Intema closely monitored large-scale
building projects and successfully placed Vitra
and Artema-branded products in a large
number of high-quality projects. Other
demand-generating measures sought to
increase the brand loyalty of MarketClub
members through face-to-face visits, product
display support, special promotions and
similar measures. MarketClub is a subgroup
Activities in 2002 Continued
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Activities in 2002 Continued
of PartnersClub, a secondary channel whose
members raise demand for Intema’s main
distribution network.
PPrroommoottiioonnOne of Intema’s main promotional activities
in 2002 was to renew the logos and
corporate identities of the Eczac›bafl› Building
Materials Division’s leading brands - Vitra and
Artema. In line with the new brand identity,
Intema began restructuring all Intema
Showrooms and authorized dealers as Vitra
Showrooms. In November, Intema
implemented a broad-based communication
plan of its new brand identity to both internal
and external customers, including the
employees of the Building Materials Division,
PartnersClub members, dealers and end-users.
Surveys of recent years indicate that
customers are bombarded with information –
making product differentiation quite difficult.
This has greatly increased the importance of
direct marketing, which enables companies to
utilize their promotional budgets more
effectively and maximize the contribution of
promotion to business results. Because some
of Intema’s products target end-users and
others respond mainly to the expectations of
professional buyers, direct marketing is an
essential element of its product and brand
promotional activities.
In the area of direct marketing, Intema
PartnersClub sets the standards for customer
relations management. To enhance its ability
to provide direction to marketing strategies,
Intema adjusted PartnersClub’s operating
system to reflect its multi-layered customer
structure. To enhance communications with
PartnersClub members, Intema organized
special activities for each major customer
group. Some of these involved assessment,
such as focus group studies to evaluate
products and online and face-to-face surveys.
Others were geared towards providing
technical and product information, such as
factory visits, new product exhibitions at
trade fairs and, for the first time last year,
participation in Architectural Day activities in
five provinces around the country. At the
same time, Intema continued to send
promotional material, product information
and product samples to members on a
regular basis. In 2002, Intema published and
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1155
distributed three issues of PartnersClub
Magazine, each time improved with the
suggestions of business partners.
Since 2000, Intema has given special priority
to developing its business and social
relationships with MarketClub members, in an
effort to widen its reach in the market. Apart
from face-to-face visits, Intema invited the
most important members of this group to
take part in training seminars at Eczac›bafl›
Group factories.
In another effort to expand its market reach,
Intema plans to establish a secondary
distribution network of selected MarketClub
members in geographical regions where it
presently has no authorized dealers.
Other direct marketing activities included
product presentations to 400 architects in
Adana, Gaziantep, Diyarbak›r, Izmir, Konya
and Bursa, organized in conjunction with the
architectural chambers in these cities. Intema
also organized promotional seminars with
520 students of architecture in six universities
under the heading ‘Contemporary Lifestyles
with Vitra-Artema’.
In 2002, Intema developed its website
(http://www.vitra.com.tr) into an active
marketing platform with sales campaigns,
promotions, new product information and
interactive modules. To promote site visits,
Intema distributed site brochures and CDs at
industry events attended by its target
audience, such as trade fairs, expos and
seminars. It also reached agreements with
other Internet sites to redirect visitors. These
efforts led to a three-fold increase in the
average number of monthly site visits relative
to 2001.
Because some of Intema’s products target end-users and others respond mainly to theexpectations of professional buyers, direct marketing is an essential element of its productand brand promotional activities.
Intema took measures to raise its visibility in
the press in 2002. One of these involved
regular meetings with media representatives
on new products and services and corporate
news. Another involved securing coverage in
the marketing/economy pages on marketing-
management systems, to promote Intema’s
corporate image. Additionally, during
consumer campaigns, Intema arranged to
have its sales outlets and product range
appear on television programs, greatly
expanding its communication reach.
Trade fairs and exhibitions are excellent tools
for introducing products and services to
target customers, particularly customers in
different regions of the country. Last year,
Intema attended four trade fairs: two in
Istanbul and one each in Ankara and Antalya.
At the April trade fair in Istanbul, Intema held
a press conference to announce its new
plating technology for Artema-branded
sanitary fittings products – Chrommax – and
its lifetime warranty on this plating
technology. This announcement was followed
by regular advertisements in newspapers and
magazines and direct mailings to all
PartnersClub members and representatives in
the tourism sector.
EExxhhiibbiittiioonn AAccttiivviittiieessProduct exhibition is one of the most
important tools for enhancing consumer
awareness. Window displays in particular
have a significant influence on renewal
demand through their demonstration of
modern and attractive kitchen and bathroom
solutions.
Intema is the trend-setter in showroom
displays, which it manages on five levels to
ensure a consistent corporate identity: trade
fairs, Intema Showrooms, Intema authorized
dealers, PartnersClub market members and
authorized services.
In 2002, Intema participated in the Unicera -
Istanbul, YEM - Istanbul, T‹MKODER - Ankara
and YAPEX - Antalya trade fairs with booths
tailored to the objectives of each fair and
targeted customer groups.
During the year, Intema oversaw the full
renovation of 33 authorized dealer
The sole supplier of faucets and fittings to IKEA worldwide, Eczac›bafl› Building Materials-Artema onceagain ranked among IKEA’s top three suppliers in terms of cost, compatibility with the IWAY program,timely delivery, product quality, business growth and information flow. For these achievements,Artema received its third IKEA Supplier of the Year Award in 2002.
Activities in 2002 Continued
1177
showrooms and the partial renovation of 13
more. It also renewed the display products of
another 63 authorized dealers.
Additionally, Intema fully renovated its
showrooms in Caddebostan and Adana and
partially renovated its showrooms in Ankara
and Izmir. In Antalya, it established an
information center providing displays and
consultancy to customers on the technical
features of the Vitra and Artema brands.
SSuupppplliieerrssIntema’s main product supplier, Eczac›bafl›
Ceramic Tiles, inaugurated a 2.5 x 2.5 cm
mosaic tile line at its Tuzla plant in 2002,
becoming the first Turkish tile manufacturer
with this product capacity. The new tile line,
which has an annual capacity of 175,000
square meters, utilizes machinery developed
by the engineering staff of Eczac›bafl› Ceramic
Tiles – another first in the sector. With its
superior quality and diverse products,
Eczac›bafl› Ceramic Tiles aims to secure a
competitive advantage in international
markets.
Vitra mosaic tiles are suitable for both
interiors and exteriors. They can be used in
homes or public buildings – such as hotels,
airports and metros – as well as on building
facades and in swimming pools. Innovative in
both size and design, Vitra mosaic tiles are
functional, aesthetically pleasing and available
in a wide array of colors in accordance with
the international color system.
Eczac›bafl› Building Materials-Artema
continued to invest in new technologies in
2002 despite difficult conditions in its sector,
commissioning a new production unit for
Chrommax surface plating and other
modernization projects. The sole supplier of
faucets and fittings to IKEA worldwide,
Eczac›bafl› Building Materials-Artema once
again ranked among IKEA’s top three
suppliers in terms of cost, compatibility with
the IWAY program, timely delivery, product
quality, business growth and information
flow. For these achievements, Artema
received its third IKEA Supplier of the Year
Award in 2002.
In another major achievement, Eczac›bafl›
Building Materials-Artema was selected by its
largest export customer, MOEN of the United
States, as the pilot supplier for SupplyNet – a
comprehensive logistics system that monitors
all services, from order management to
product development and quality assurance,
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Activities in 2002 Continued
in an electronic environment. Artema owes its
selection to its superior service philosophy,
highly qualified staff and systematic approach
to doing business. In recognition of its
valuable support for the SupplyNet logistic
system, now the back-bone of MOEN’s
activities, MOEN presented Artema the
President’s Achievement Award and the
SupplyNet Development & Implementation
Team prize at a ceremony held on 1 May
2002, in Cleveland, Ohio.
IInnffoorrmmaattiioonn TTeecchhnnoollooggyyIntema continued to develop its information
technology systems in 2002.
Last year, Intema completed the INTEMA-Net
electronic sales project with authorized
dealers, raising the share of online orders to
85 percent. The system enables authorized
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1199
of the order-to-delivery process by e-mail and
gives dealers online access to most of their
business information.
The implementation of the OBASE program,
used in connection with retail management,
allows showrooms to respond faster to
customer requests for price quotes and
orders. Together with the INTEMA-Net
expansion program, OBASE has greatly
facilitated online data transfer between
showrooms and Intema headquarters.
In 2002, the Building Materials Division
selected SAP for a Division-wide electronic
sales and financial portal. On its completion
in 2003, the project will enable all of Intema’s
departments to establish and manage
effectively customer relations over the
Internet.
HHuummaann RReessoouurrcceessOne of the principal elements differentiating
Intema from other marketing and sales
companies in the sector is the quality of its
human resources. Intema employees are
customer-focused; they seek to add value and
they embrace the principle of continually
striving for greater productivity, creativity and
innovation.
Professional development programs maintain
the high caliber of Intema’s human resources,
with employees receiving tailored training to
strengthen their capabilities and professional
expertise. In 2002, Intema provided an
average of 30 hours training per person,
including in-house and external programs.
The successful implementation of the
performance management system has
assisted Intema employees achieve better
performance results and furthered their
personal and job-related skills.
In line with its business partnership
philosophy, Intema organizes special training
sessions for authorized dealers and their
employees to assist them improve their sales
techniques and product expertise.
Intema is committed to continually improving
its results and service quality. One of the
ways it is measuring its success in this area is
through regular self-assessment using the
TÜS‹AD-KalDer Business Excellence Model. In
2002, as in previous years, Intema reflected
the results of this exercise in its business plan
for 2003, with concrete measures to improve
weaker processes.
Intema completed the INTEMA-Net electronic sales project with authorized dealers, raising the shareof online orders to 85 percent.
Developments in the Production of Goods and Services
CCeerraammiicc SSaanniittaarryy WWaarree aanndd
CCoommpplleemmeennttaarryy PPrroodduuccttss
Vitra launched two new ceramic sanitary
ware series in 2002: the Nuovella line of
washbasins and cabinets in square and
rectangular formats and the Mia bathroom
suit for economy-minded consumers.
Nuovella washbasins are designer products
that can be tailored to individual preferences
or used in an integrated bathroom solution.
They come in seven shapes, square and
rectangular – and offer a broad range of
counter-top applications, the latest trend in
bathroom design. These washbasins are
complemented by sleek wooden cabinets
with optional glass counter-tops. Glass
counter-top options include symmetrical and
asymmetrical solutions, with the latter
offering right or left-hand shapes depending
on user preference and available space. For
smaller bathrooms, Nuovella offers the
practical stand-alone washbasin with an open-
flush system and a towel rack below.
The Mia bathroom set includes two sizes of
washbasins, a WC pan-cistern combination
and a floor-mounted bidet. This compact set
has proven very popular due to its affordable
price and attractive design. In 2002, as part
of a focused effort to increase Intema’s
presence in the economic segment, the Mia
bathroom set featured prominently in its
promotional campaign in strategic regions of
the country.
In the complementary product segment, the
primary focus of promotional activity was
"Photocell-Operated Flushing Systems".
Because of their hands-free operation, these
products contribute to hygiene in heavily-used
public bathrooms. They are also environment-
friendly, as they can be programmed to use a
minimum volume of water – a cost-saving
IInn tthhee ccoommpplleemmeennttaarryy pprroodduucctt sseeggmmeenntt,, tthheepprriimmaarryy ffooccuuss ooff pprroommoottiioonnaall aaccttiivviittyy wwaass""PPhhoottoocceellll--OOppeerraatteedd FFlluusshhiinngg SSyysstteemmss""..BBeeccaauussee ooff tthheeiirr hhaannddss--ffrreeee ooppeerraattiioonn,, tthheesseepprroodduuccttss ccoonnttrriibbuuttee ttoo hhyyggiieennee iinn hheeaavviillyy--uusseeddppuubblliicc bbaatthhrroooommss..
2211
feature for public buildings and other large
users. A self-cleaning option, which engages
automatically after 24 hours without use,
helps to maintain cleanliness and lengthen
the product’s life-span. In 2002,Vitra also
introduced the world’s first photocell-
operated WC pan-cistern combination
systems for homes. These products have all of
the ‘smart’ features found in the photocell-
operated systems of public bathrooms.
Another water-saving device first introduced
by Vitra to the Turkish market is the three
and six liter flushing option for flushing
systems. In 2002, Vitra continued to improve
these systems with a pneumatically-operated
structure that can be fitted easily and quickly
into all sizes and shapes of cisterns.
To communicate effectively the synergy
between product groups and Vitra’s expertise
in creating integrated bathroom designs,
Intema prepared a catalogue entitled
Bathroom Solutions in 2002.
VViittrraa BBaatthhttuubbss
Vitra Bathtubs expanded its range of acrylic
bathtubs in 2002 with several unique models:
Helice, Delphi and Altis, the 150x150 cm
corner bathtub Thera, and the economical
Optima bathtub in three rectangular sizes.
Other new products included the compact
Arcadia massage cabin offering shower,
vertical massage and steam bath features and
slim-line flat shower basins.
The Helice round tub comes in two sizes (150
and 160 cm diameters) that hold respectively
350 and 450 liters, offering more comfort
and a pleasing design. The Altis bathtub has
an unusual hexagonal shape 190x90 cm in
size and can be installed in different ways,
depending on the space. The Delphi bathtub
features a left- or right-oriented, 170x75 cm
asymmetric design that combines a bathtub
and shower basin.
Vitra launched two new ceramic sanitary ware series in 2002: the Nuovella line of washbasinsand cabinets in square and rectangular formats and the Mia bathroom suit for economy-minded consumers.
IInn 22000022,, VViittrraa pprreeppaarreedd aa ddeettaaiilleeddbbrroocchhuurree oonn tthhee mmaatteerriiaall,, tteecchhnnoollooggyy,,ffuunnccttiioonnss aanndd rraannggee ooff VViittrraa bbaatthhttuubbss.. TThheebbrroocchhuurree wwaass eennttiittlleedd BBaatthhrroooomm PPlleeaassuurreessaanndd ddiissttrriibbuutteedd tthhrroouugghhoouutt tthhee ssaalleessnneettwwoorrkk..
Developments in the Production of Goods and Services Continued
Thera, the new corner bathtub, can hold 270
liters and has five hydro-massage options.
Thera’s symmetric shape allows both sides of
the tub to be used for hydro-massage
therapy.
The Optima bathtub, although launched as
an economic alternative, offers exactly the
same quality as other Vitra products.
Available in three sizes (150x70, 160x70 and
170x70 cm), the Optima bathtub is made of
standard Vitra material – Lucite acrylic plates
produced by Ineos.
Arcadia offers sauna, vertical hydro-massage
and shower features in a cabin space that
measures 90x90x215 cm. A control panel in
the cabin allows users to regulate the
temperature and duration of the sauna
function.
Flat shower basins, a new product group for
Vitra, come in three models and six sizes. The
most important feature of these basins is
2233
their slim design and correspondingly shallow
basin, which is aesthetically pleasing.
In 2002, Vitra developed new names for
hydro-massage systems featured in its
bathtub products, such as Duo Maxi, Duo
Soft, Aqua Maxi, Aqua Soft and Aqua Soft
Easy. This new method of identification has
enabled dealers to communicate more
effectively the functions and benefits of
hydro-massage systems.
In 2002, Vitra also prepared a detailed
brochure on the material, technology,
functions and range of Vitra bathtubs. The
brochure was entitled Bathroom Pleasures
and distributed throughout the sales network.
VViittrraa BBaatthhrroooomm FFuurrnniittuurree
Vitra expanded its economy range of
bathroom furniture with two lines in 2002:
the classic Ilia line and the modern Optima
line.
Optima bathroom cabinets are available for
three washbasin sizes - 65, 80 and 100 cm -
and two countertop washbasin sizes - 80 and
100 cm. Though launched in June, Optima
bathroom cabinets contributed significantly to
year-end sales, thanks to carefully-planned
promotion, direct marketing through
PartnersClub and quick release to sales
outlets.
The Ilia cabinet is part of a set that includes a
washbasin, cabinet, mirror, light fixture and
countertop.
Concept products like Nouvella are
characterized by their focus on innovative
design and their brand value. With their
square-shaped design – long the primary
geometric choice in architecture – Nuovella
bathroom cabinets are in perfect harmony
Flat shower basins, a new product group for Vitra, come in three models and six sizes. The mostimportant feature of these basins is their slim design and correspondingly shallow basin, whichis aesthetically pleasing.
with the trendy shape of the Nuovella
washbasin. Six alternative cabinet sizes and
shapes permit the use of this cabinet concept
in bathrooms of all sizes.
The rapid success of the Nuovella cabinet
series, promoted alongside the Nuova and
Mona bathroom furniture lines launched in
2001, confirms that product development
activities over the last three years are
responding effectively to customer
expectations.
VViittrraa CCeerraammiicc TTiilleess
Vitra Ceramic Tiles continued to add its own
style to emerging global trends in interior
design, with several new and innovative
products for the Arkitekt and Rezidans lines.
Vitra Rezidans primarily focuses on end-users’
aesthetic expectations, while Vitra Arkitekt
tiles seek to provide solutions for the
functional needs of commercial and social
establishments.
Vitra Ceramic Tiles continued to expand the
Rezidans product group in 2002, with new
additions to existing series and a large
number of innovative series featuring special
surfaces and materials. Last year, Vitra
Ceramic Tiles added new sizes to the classical
Travertino Toscana series and enriched the
Scabos and Jerusalem series with new border
tiles, decorative designs and sizes.
Responding to the global trend in interior
design, Vitra Ceramic Tiles added new colors
to its minimalist Smart and Romance series
and launched several innovative series
manufactured with insert technology. Impulse
features a textured surface and is
complemented by vertical and horizontal
border tiles; Nova, Venus, Helsinki and Safari
offer a variety of patterns for different tastes.
Vitra Ceramic Tiles also launched three
minimalist series aimed at higher income
groups and distinguished by their creative use
of material. The Metropol series captures the
Vitra Ceramic Tiles continued to add its own style to emerging global trends in interior design, withseveral new and innovative products for the Arkitekt and Rezidans lines.
Developments in the Production of Goods and Services Continued
2255
aesthetics of glass, while the Cosmo series
combines ceramic with porcelain. The Oslo
series is especially unique in its use of metal
and has been received very well by
consumers.
To overcome grouting problems, Vitra
Ceramic Tiles redesigned the Mediterraneo
series with new arrow border tiles that create
a continuous design. It also expanded its
porcelain technology-based Rezidans and
Arkitekt floor tile groups, adding new colors
to the Vermont and Cotto Naturel glazed tile
series and skirting borders, stair tiles and
profiled stair tiles to the Cotto Toscana and
Cotto Piazza series. Two new porcelain series
– Arizona and Frigya – joined this group of
floor tiling in 2002.
To meet the fast-growing demand in Turkey
for swimming pools, Vitra Ceramic Tiles
added several new components to the
Arkitekt Pool series, including corner
components with channel edges, shower
edges and porcelain tiles for surrounding pool
areas.
The main development in the Vitra Tiles series
in 2002 was the introduction of 2.5x2.5 cm
mosaic tiles for both the Rezidans and
Arkitekt series. The first of their kind to be
manufactured in Turkey, these tiles can be
used in a wide range of applications:
kitchens, bathrooms, pools and building
facades. The tiles are available in the RAL,
Color Line and Mix color schemes and are
manufactured with porcelain technology. The
Unglazed Porcelain Series offers highly
durable solutions tailored for professional
users.
VViittrraaffiixx CCeerraammiicc AAddhheessiivveess aanndd GGrroouuttss
Eczac›bafl›-Koramic Building Chemicals
initiated the manufacture of LP ready-to-use
adhesive paste in 2002, building on the family
of adhesive pastes that it started in 2001
with HP. LP adhesive paste has been received
well in export markets and is increasingly in
demand in Turkey for renewal projects, as it
is suitable for internal wall applications and is
CCoonncceepptt pprroodduuccttss lliikkee NNoouuvveellllaa aarree
cchhaarraacctteerriizzeedd bbyy tthheeiirr ffooccuuss oonn iinnnnoovvaattiivvee
ddeessiiggnn aanndd tthheeiirr bbrraanndd vvaalluuee..
Developments in the Production of Goods and Services Continued
more economical than HP. Similar to HP, LP is
effective on reinforced gypsum walls.
In 2002, Eczac›bafl›-Koramic Building
Chemicals added a fast-drying anti-bacterial
silicon to its line of VitraFix silicon, raising to
four the number of products in this category.
To ensure the best possible use of the
technical innovations incorporated in its
products, Eczac›bafl›-Koramic Building
Chemicals initiated training programs for
ceramic tile applications in nine provinces
across the country, reaching about 600 tile
installers.
AArrtteemmaa FFaauucceettss aanndd BBaatthhrroooomm FFiixxttuurreess
Artema continued to adapt its sanitary fixture
range to the needs of its customers in 2002.
Last year, the focus was further
differentiation between bathroom and
kitchen fittings, leading to the full
restructuring of its kitchen fittings range
based on design and functionality. At the
same time, Artema launched a new series of
bathroom fixtures.
Artema faucets are aesthetically pleasing,
functional and of the highest quality. Often,
they are also technological leaders, as in the
case of Chrommax-plated products.
Chrommax extra-durable plating is
manufactured with PVD (Physical Vapor
2277
Deposition) technology, which was developed
by NASA to protect the exterior of space
shuttles. With Chrommax surface-plating
technology, Artema has eradicated problems
caused by heavy wear, such as corrosion and
scratches, and is able to provide a life-time
warranty on fittings installed in public
buildings, like hospitals, hotels, schools and
shopping centers.
Artema launched several new fittings series in
2002. In line with the minimalist trend, the
Ilia series has simple, clean lines and the
choice of chrome or chrome-satin plating. It
also offers a number of special technical
features, such as a temperature and flow-
adjustable cartridge that helps save water
and energy and a ‘Joystick’ faucet that can
rotate 360 degrees.
The Trio double level series is a spin-off of the
existing Juno series, with a new handle
design and choice of chrome and chrome-
satin plating. The series includes the full
range of bathroom fittings, including wall-
mounted faucets for bathtub, shower, bidet
and basin applications.
Artema has given priority to water and
energy-saving features in its new product
series, so as to promote environment-friendly
use of natural resources. The Arion series
launched in 2001 has a special cartridge that
can generate water savings of up to 90
percent; this cartridge is also used in the Ilia
series. The Armix Lux series uses a two-step
cartridge that offers water savings of up to
50 percent. The Percussion tap eliminates
waste caused by faucets left on in public
bathrooms.
CChhrroommmmaaxx eexxttrraa--dduurraabbllee ppllaattiinngg iiss mmaannuuffaaccttuurreedd
wwiitthh PPVVDD ((PPhhyyssiiccaall VVaappoorr DDeeppoossiittiioonn)) tteecchhnnoollooggyy,,
wwhhiicchh wwaass ddeevveellooppeedd bbyy NNAASSAA ttoo pprrootteecctt tthhee
eexxtteerriioorr ooff ssppaaccee sshhuuttttlleess.. WWiitthh CChhrroommmmaaxx
ssuurrffaaccee--ppllaattiinngg tteecchhnnoollooggyy,, AArrtteemmaa hhaass eerraaddiiccaatteedd
pprroobblleemmss ccaauusseedd bbyy hheeaavvyy wweeaarr,, ssuucchh aass ccoorrrroossiioonn
aanndd ssccrraattcchheess,, aanndd iiss aabbllee ttoo pprroovviiddee aa lliiffee--ttiimmee
wwaarrrraannttyy oonn ffiittttiinnggss iinnssttaalllleedd iinn ppuubblliicc bbuuiillddiinnggss..
Artema faucets are aesthetically pleasing, functional and of the highest quality. Often, they arealso technological leaders, as in the case of Chrommax-plated products.
AArrtteemmaa hhaass ggiivveenn pprriioorriittyy ttoo wwaatteerr aanndd
eenneerrggyy--ssaavviinngg ffeeaattuurreess iinn iittss nneeww pprroodduucctt
sseerriieess,, ssoo aass ttoo pprroommoottee eennvviirroonnmmeenntt--
ffrriieennddllyy uussee ooff nnaattuurraall rreessoouurrcceess..
Developments in the Production of Goods and Services Continued
Artema launched two accessory series in
2002 for consumers with classical tastes. The
Hera and Flora line of bathroom accessories
combine wood, porcelain and chrome
materials in the complete range of bathroom
accessories: vanity unit, soap dish, toothbrush
holder, towel holder, toilet paper, dispenser
and toilet brush holder. For the economic
segment, Artema introduced the Daphne
series of accessories that uses transparent
acrylic in place of glass.
In response to customer demand, Artema
expanded the Arkitekta series of accessories
for general use with liquid soap and paper
towel dispensers, trash boxes and clotheslines
made of stainless steel. Other new Arkitekta
products included compact solutions for
residential use with multiple functions, such
as soap dishes, toothbrush and towel holders,
toilet paper dispensers, toilet brush holders
and newspaper/magazine racks.
Intema Building Materials Marketing and Sales Company
Report and Accounts for 2002
Intema Building Materials Marketing and Sales CompanyBalance SheetsAt December 31, 2002 and 2001 (Turkish Liras in Million)
AAsssseettss Dec. 31, 2002 Dec. 31, 2001
II-- CCUURRRREENNTT AASSSSEETTSS 2233,,229911,,557700 1155,,331177,,667733
A. Cash and Cash Equivalents 495,703 1,426,4171. Cash 22,817 18,821
2. Bank Deposits 383,719 584,893
3. Others 89,167 822,703
B. Short-Term Receivables 16,765,688 10,437,7891. Accounts Receivable 9,685,210 4,009,638
2. Notes Receivable 6,095,046 6,666,558
3. Other Receivables 1,433,992 186,920
4. Rediscount on Notes Receivable (-) (262,622) (249,718)
5. Provision for Bad Debt (-) (185,938) (175,609)
C. Other Short-Term Receivables - 43,067D. Inventories 5,456,954 2,867,871
1. Finished Goods 5,234,608 2,449,827
2. Other Inventories 701 173,448
3. Advance Payments for Inventories 221,645 244,596
F. Other Current Assets 573,225 542,529
IIII-- FFIIXXEEDD AASSSSEETTSS 1144,,227744,,118855 99,,226677,,555588
A. Long-Term Receivables 5,978 1,1371. Deposits and Guarantees 5,978 1,137
B. Financial Fixed Assets 9,773,350 7,526,050C. Tangible Fixed Assets 2,077,705 1,431,891
1. Land 15,100 15,100
2. Buildings 520,178 327,156
3. Vehicles 1,396,535 841,430
4. Furniture and Fixtures 2,659,399 1,807,351
5. Accumulated Depreciation (-) (2,513,507) (1,559,166)
6. Advance Payments for Fixed Assets - 20
D. Intangible Fixed Assets 2,414,643 308,480
TToottaall AAsssseettss 3377,,556655,,775555 2244,,558855,,223311
LLiiaabbiilliittiieess aanndd SShhaarreehhoollddeerrss’’ EEqquuiittyy Dec. 31, 2002 Dec. 31, 2001
II-- CCUURRRREENNTT LLIIAABBIILLIITTIIEESS 2211,,888800,,998888 1133,,006699,,440099
A. Trade Payables 19,188,256 9,759,7871. Accounts Payable 19,737,599 9,925,006
2. Rediscount on Accounts Payable (-) (1,212,980) (165,219)
3. Other Current Payables 663,637 -
B. Other Short-Term Liabilities 412,373 272,4931. Taxes and Duties Payable - 37,295
2. Deferred VAT 323,141 233,617
3. Others 89,232 1,581
C. Advance Receipts 2,257,692 2,790,573D. Provisions for Loans and Expenses 22,667 246,556
1. Provisions for Taxes - 238,195
2. Provisions for Expenses 22,667 8,361
IIII-- LLOONNGG--TTEERRMM LLIIAABBIILLIITTIIEESS 11,,886655,,009966 11,,004488,,115522
A.Provisions for Loans and Expenses 1,530,370 1,048,1521. Severance Indemnity 1,530,370 1,048,152
B. Other Long-Term Payables 334.726 -
IIIIII-- SSHHAARREEHHOOLLDDEERRSS’’ EEQQUUIITTYY 1133,,881199,,667711 1100,,446677,,667700
A.Paid-in Capital 972,000 972,000B. Premium on Sale of Stocks 2,625 2,625C. Revaluation Fund 11,242,987 8,173,570
1. Revaluation of Fixed Assets 1,684,605 862,488
2. Revaluation of Financial Investments 60,366 60,366
3. Revaluation in Exchange Market 9,498,016 7,250,716
D. Retained Earnings 1,319,477 908,9211. Legal Reserves 101,865 81,337
2. Undistributed Profits 1,216,635 826,607
3. Reserves 977 977
E. Net Profit 282,582 410,554
TToottaall LLiiaabbiilliittiieess aanndd SShhaarreehhoollddeerrss’’ EEqquuiittyy 3377,,556655,,775555 2244,,558855,,223311
3311
Intema Building Materials Marketing and Sales CompanyBalance SheetsAt December 31, 2002 and 2001 (Turkish Liras in Million)
AAsssseettss Dec. 31, 2002 Dec. 31, 2001
II-- CCUURRRREENNTT AASSSSEETTSS 2233,,229911,,557700 1155,,331177,,667733
A. Cash and Cash Equivalents 495,703 1,426,4171. Cash 22,817 18,821
2. Bank Deposits 383,719 584,893
3. Others 89,167 822,703
B. Short-Term Receivables 16,765,688 10,437,7891. Accounts Receivable 9,685,210 4,009,638
2. Notes Receivable 6,095,046 6,666,558
3. Other Receivables 1,433,992 186,920
4. Rediscount on Notes Receivable (-) (262,622) (249,718)
5. Provision for Bad Debt (-) (185,938) (175,609)
C. Other Short-Term Receivables - 43,067D. Inventories 5,456,954 2,867,871
1. Finished Goods 5,234,608 2,449,827
2. Other Inventories 701 173,448
3. Advance Payments for Inventories 221,645 244,596
F. Other Current Assets 573,225 542,529
IIII-- FFIIXXEEDD AASSSSEETTSS 1144,,227744,,118855 99,,226677,,555588
A. Long-Term Receivables 5,978 1,1371. Deposits and Guarantees 5,978 1,137
B. Financial Fixed Assets 9,773,350 7,526,050C. Tangible Fixed Assets 2,077,705 1,431,891
1. Land 15,100 15,100
2. Buildings 520,178 327,156
3. Vehicles 1,396,535 841,430
4. Furniture and Fixtures 2,659,399 1,807,351
5. Accumulated Depreciation (-) (2,513,507) (1,559,166)
6. Advance Payments for Fixed Assets - 20
D. Intangible Fixed Assets 2,414,643 308,480
TToottaall AAsssseettss 3377,,556655,,775555 2244,,558855,,223311
3333Intema Building Materials Marketing and Sales CompanyStatements of IncomeJanuary 1 - December 31, 2002 and 2001(Turkish Liras in Million)
Jan. 1 - Dec. 31, 2002 Jan. 1 - Dec. 31, 2001
AA-- GGRROOSSSS SSAALLEESS 222222,,771177,,559988 117700,,552244,,774444
1. Domestic Sales 222,717,598 170,524,744
BB-- DDIISSCCOOUUNNTTSS AANNDD RREETTUURRNNSS ((--)) ((9955,,779911,,996622)) ((7766,,552277,,884455))
1. Returns on Sales (-) (1,355,608) (1,796,237)
2. Sales Discounts (-) (94,436,354) (74,731,608)
CC-- NNEETT SSAALLEESS 112266,,992255,,663366 9933,,999966,,889999
DD-- CCOOSSTT OOFF GGOOOODDSS SSOOLLDD ((--)) ((111166,,007777,,444499)) ((8844,,889944,,882200))
GROSS MARGIN 10,848,187 9,102,079
EE-- OOPPEERRAATTIINNGG EEXXPPEENNSSEESS ((--)) ((1144,,222277,,443377)) ((1111,,445555,,335588))
1. Marketing, Sales and Distribution Expenses (-) (10,493,070) (8,793,998)
2. General Administrative Expenses (-) (3,734,367) (2,661,360)
OPERATING PROFIT (LOSS) (3,379,250) (2,353,279)
FF-- NNOONN--OOPPEERRAATTIINNGG IINNCCOOMMEE AANNDD PPRROOFFIITTSS 99,,115566,,330088 55,,774455,,778844
1. Dividend Income from Affiliates 7,492 -
2. Interest Income 1,340,455 488,869
3. Other Income 7,808,361 5,256,915
GG-- NNOONN--OOPPEERRAATTIINNGG EEXXPPEENNSSEESS AANNDD LLOOSSSSEESS ((--)) ((55,,660077,,220044)) ((22,,661144,,337777))
HH-- FFIINNAANNCCIIAALL EEXXPPEENNSSEESS ((--)) ((7744,,663388)) ((226699,,331133))
1. ‹nterest on Short-Term Loans (-) (74,638) (269,313)
PROFIT AFTER INTEREST 95,216 508,815
II-- EEXXTTRRAAOORRDDIINNAARRYY IINNCCOOMMEE AANNDD PPRROOFFIITTSS 223388,,883388 117766,,443322
JJ-- EEXXTTRRAAOORRDDIINNAARRYY EEXXPPEENNSSEESS AANNDD LLOOSSSS ((--)) ((5511,,447722)) ((3366,,449988))
PROFIT BEFORE TAXES 282,582 648,749
KK-- TTAAXXEESS ((--)) -- ((223388,,119955))
NNEETT PPRROOFFIITT 228822,,558822 441100,,555544
Intema Building Materials Marketing and Sales CompanyStatements of Retained EarningsJanuary 1 - December 31, 2002 and 2001 (Turkish Liras in Million)
Jan. 1 - Dec. 31, 2002 Jan. 1 - Dec. 31, 2001
AA-- DDiissttrriibbuuttiioonn ooff PPrrooffiitt
1. Profit Before Taxes 282,582 648,749
2. Taxes Payable (-) - (238,195)
3. Legal Reserves (-) (14,129) (20,528)
NNeett IInnccoommee FFoorr DDiissttrriibbuuttiioonn 226688,,445533 339900,,002266
4. Dividends to Shareholders (-) (53,691) (78,005)
Extraordinary Reserves 214,762 312,021
BB-- PPrrooffiitt PPeerr SShhaarree ((TTLL // %%)) 227766 // 2277..66%% 440011 // 4400..11%%
1. Common Stock (TL / %) 276 / 27.6% 401 / 40.1%
3355Intema Building Materials Marketing and Sales CompanyStatements of Sources and Uses of Funds January 1 - December 31, 2002 and 2001 (Turkish Liras in Million)
Jan. 1 - Dec. 31, 2002 Jan. 1 - Dec. 31, 2001
AA.. SSoouurrcceess ooff FFuunnddss 1111..993344..111177 44..776633..226611
1. Sources from Operating Income 1,112,105 1,629,549
a) Operating Income 95,216 508,815
b) Depreciation (+) 1,231,618 617,326
c) Expenses that do not Require Funds (+) 1,011,122 678,580
d) Income that does not Generate Funds (-) (1,225,851) (175,172)
2. Sources of Extraordinary Income 238,838 176,432
3. Decrease in Current Assets - 1,970,085
4. Increase in Short-Term Liabilities 10,248,448 987,195
5. Increase in Long-Term Liabilities 334,726 -
BB.. UUsseess ooff FFuunnddss 1111,,993344,,111177 44,,776633,,226611
1. Extraordinary Losses 51,472 36,498
2. Tax Payments 238,195 628,487
3. Increase in Current Assets 8,475,624 1,160,630
4. Increase in Fixed Assets 3,168,826 467,957
(Does not include Revaluation Fund)
5. Decrease in Short-Term Liabilities - 2,469,689
Changes in Net Working Capital1. Increase in Net Working Capital (837,682) 921,423
Intema Building Materials Marketing and Sales CompanyStatements of Cash Flows January 1 - December 31, 2002 and 2001 (Turkish Liras in Million)
Jan. 1 - Dec. 31, 2002 Jan. 1 - Dec. 31, 2001 AA.. CCaasshh BBeeggiinnnniinngg BBaallaannccee 11,,442266,,441177 11,,661122,,110055
BB.. CCaasshh IInnfflloowwss 113300,,448877,,332233 110022,,669900,,663399
1. Cash Inflows from Sales 120,574,504 95,781,228
a) Net Sales 126,925,636 93,996,899
b) Decrease in Receivables - 1,784,329
c) Increase in Receivables (-) (6,351,132) -
2. Cash from Non-Operating Income and Profits 9,156,308 5,745,784
3. Cash from Extraordinary Income and Profits 238,838 176,432
4. Increase in Short-Term Liabilities
(Not Related to Purchases) 139,880 987.195
5. Increase in Long-Term Liabilities 334,726 -
6. Other Cash Inflow 43,067 -
CC.. CCaasshh OOuuttfflloowwss 113311,,441188,,003377 110022,,887766,,332277
1. Cash Outflows Related to Costs 109,238,063 88,566,017
a) Cost of Goods Sold 116,077,449 84,894,820
b) Increase in Inventories 2,589,083 1,117,563
c) Decrease in Trade Payables (Related to Purchases) - 2,553,634
d) Increase in Trade Payables (Related to Purchases) (-) (9,428,469) -
2. Cash Outflow From Operations 12,488,966 10,409,170
a) Marketing, Sales and Distribution Expenses 10,493,070 8,793,998
b) General Administrative Expenses 3,734,367 2,661,360
c) Non-Cash Expenses (-) (1,738,471) (1,046,188)
3. Cash Outflows for Non-Operating
Expenses and Losses 5,594,300 2,364,659
a) Non-Operating Expenses and Losses 5,607,204 2,614,377
b) Non-Cash Expenses and Losses (-) (12,904) (249,718)
4. Cash Outflow For Financial Expenses 74,638 269,313
5. Cash Outflow For Extraordinary Expenses and Losses 51,472 36,498
6. Cash Outflow For Fixed Asset Investments 3,168,826 467,957
7. Repayment of Current Liabilities 532,881 91,159
8. Tax Payments 238,195 628,487
9. Other Cash Disbursements 30,696 43,067
DD.. CCaasshh EEnnddiinngg BBaallaannccee 449955,,770033 11,,442266,,441177
EE.. IInnccrreeaassee oorr DDeeccrreeaassee iinn CCaasshh ((993300,,771144)) ((118855,,668888))
Intema Building Materials Marketing and Sales CompanyStatements of Cost of Goods Sold January 1 - December 31, 2002 and 2001 (Turkish Liras in Million)
Jan. 1 - Dec. 31, 2002 Jan. 1 - Dec. 31, 2001
TTrraaddee AAccttiivviittiieess
AA.. MMeerrcchhaannddiissee IInnvveennttoorryy 22,,662233,,227755 11,,118800,,997700
(Beginning of the Year) (+)
BB.. PPuurrcchhaassee DDuurriinngg tthhee YYeeaarr ((++)) 111188,,668899,,448833 8866,,333377,,112255
CC.. MMeerrcchhaannddiissee IInnvveennttoorryy ((55,,223355,,330099)) ((22,,662233,,227755))
(End of the Year) (-)
I- Cost of Merchandise Sold 116,077,449 84,894,820
CCOOSSTT OOFF GGOOOODDSS SSOOLLDD 111166,,007777,,444499 8844,,889944,,882200
3377
Intema Building Materials Marketing and Sales CompanyIndependent Auditor’s Report for the Year Ended December 31, 2002
We have audited the balance sheet of ‹ntema ‹nflaat ve Tesisat Malzemeleri Yat›r›m ve Pazarlama A.fi. as of December 31, 2002 and the related
income statement for the year then ended. Our audit was conducted in accordance with generally accepted auditing standards, rules and
principles issued by the Turkish Capital Market Board (CMB) and accordingly, included such tests of accounting records and other auditing
procedures as we considered necessary.
In our opinion, the financial statements of ‹ntema ‹nflaat ve Tesisat Malzemeleri Yat›r›m ve Pazarlama A.fi. at December 31, 2002 reflect the
Company’s real financial position and the results of its operations for the year then ended, in accordance with existing regulations and generally
accepted accounting standards, which it applies consistently.
YYÖÖNNEETT
Yeminli Mali Müflavirlik ve Denetim A.fi.
(Member Firm of MOORE STEPHENS)
M. Lütfi OnurResponsible Partner, Chief Auditor
Istanbul, March 6, 2003
Produced by Finar Corporate Design.Istanbul, June 2003
INTEMA BUILDING MATERIALS MARKETING AND SALES COMPANYBüyükdere Caddesi 193, Levent 34394, Istanbul, TurkeyTel : +90 212 339 90 00Fax : +90 212 282 66 61www.intema.com.trwww.vitra.com.tr
