Strong Foundations, Sustainable Leadership Çimsa 2017 Integrated Annual Report
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2017 INTEGRATED ANNUAL REPORT STRONG FOUNDATIONS, SUSTAINABLE LEADERSHIP ÇİMSA 2017 INTEGRATED ANNUAL REPORT CONTENTS ABOUT THE INTEGRATED ANNUAL REPORT B1 FROM THE MANAGEMENT B2 MESSAGE FROM THE GENERAL MANAGER B2 ABOUT ÇİMSA B3 OUR PERFORMANCE IN 2017 B6 Corporate Profile Economic Performance National Facilities Investments Overseas Terminals R&D and Innovation Product Range Corporate Development and Human Resources Milestones: Çimsa’s 45-year-old Road to Success Occupational Health and Safety Climate and Energy Environmental Management STRATEGY AND STAKEHOLDERS B4 Corporate Social Responsibility The Çimsa Business Model BOARD OF DIRECTORS B7 The Business Model - 2017 Inputs and Outputs ANNUAL REPORT Çimsa’s Stakeholders and Communication Channels Prioritization Analysis and Matrix Serial: Prepared with Respect to Notification Sustainable Development Goals and Çimsa Number II-14.1 1 January - 31 December 2017 Sustainability Management at Çimsa Annual Report of the Board of Directors FINANCIAL INFORMATION B8 WORKPLACE ENVIRONMENT AND RISKS B5 OF THE YEAR 2017 Economic and Sectoral Environment Independent Auditor Report and Consolidated Risks, Opportunities and Çimsa’s Approach Financial Statements Profit Distribution Suggestion and Results Profit Distribution Table APPENDICES B9 Çimsa 2016-2017 Performance Table Independent Guarantee Declarations Communication and Legal Disclaimer ÇİMSA INTEGRATED ANNUAL REPORT I ABOUT THE INTEGRATED ANNUAL REPORT B1 ABOUT THE INTEGRATED ANNUAL REPORT This report is the second integrated Unless stated otherwise, all information prioritization. Performance notifications annual report of Çimsa. in this report is 2017 end-of-year data. were mainly presented in the scope of With this report, Çimsa reviews the The financial results of Afyon Cement the GRI G4 indicators; additionally, the current output of its activities and its Industry Inc. Co., a Çimsa affiliate (51%), United Nations Global Compact (UNGC) future plans and goals in the scope of are included in the consolidated financial development reporting principles -which the capital framework proposed by the results of Çimsa, but its other indicators Çimsa adhered to in 2013, and the IIRC (International Integrated Reporting are excluded. Çimsa aims at gradually World Business Council For Sustainable Council) of which it is a member of 4 including the environmental and social Development (WBCSD)’s Cement years; the company also views, analyzes sustainability data of Afyon Cement Sustainability Initiative (CSI) principles and reports it to its stakeholders from an starting from the next annual report. were also taken into consideration. integrated perspective. This report is in compliance with the The 2017 Integrated Annual Report of This report also proves that Çimsa has International Integrated Reporting Çimsa, whose shares are publicly traded internalized integrated thinking and Framework suggested by the IIRC. The in the Borsa Istanbul Exchange, is also sustainability in all its business processes. report was prepared in accordance with in accordance with the minimum annual The adoption of this approach strongly the core option of the GRI G4 Reporting reporting requirements of the Turkish supports Çimsa’s efforts to conduct its guideline published by the Global Code of Commerce and the Capital business in the most righteous way both Reporting Initiative (GRI). The contents Market Law. for the society it belongs to and for our of the report were gathered based on world. the principles on the determination of report content described in the GRI G4 It is crucial and top priority for Çimsa Guideline, especially on the principle of for the integrated annual report to be accessible by all stakeholders. In this framework, the report was produced with an environment-friendly perspective and was shared electronically. The report can be accessed via the website www.cimsa. com.tr and through the link Sustainability and Investor Relations, as well as via the sustainability website of Çimsa: www.cimsadasurdurulebilirlik.org. - This report has been published on 26 March 2018. - The Report’s GRI Content Index approval process is still ongoing. As soon as the process is completed, the PDF file appearing on the Çimsa corporate website will be updated. GRI-G4 G4-18, G4-22, G4-23 1 ÇİMSA 2017 INTEGRATED ANNUAL REPORT I B2 B2 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS SUCCESSFUL RESULTS ON OUR • 45TH YEAR We have reached the objectives we had set for 2017. • INVESTMENTS We have concluded the investments that will give momentum to our future value production power. • STRATEGIC FOCUS Our strategy is focused on the production of lasting value production for our stakeholders in the short, medium and long-term with a sustainable and profitable growth. MEHMET HACIKAMİLOĞLU CHAIRMAN OF THE BOARD OF DIRECTORS 2 GRI-G4 G4-1, G4-DMA ÇİMSA 2017 INTEGRATED ANNUAL REPORT I FROM THE MANAGEMENT Dear stakeholders, In 2017 where it celebrates its 45th year, th Çimsa has not only reached its goals, In 2017 where it celebrates its 45 but it has also made key investments that will shape its future and therefore, it year, Çimsa has not only reached has reinforced the value it creates for its stakeholders. its goals, but it has also made key In the year 2017 where global economic growth has accelerated investments that will shape its future beyond predictions, a speed-up has also been observed in the economic recovery of developed and therefore, it has reinforced the countries. During the same period, the growth performance of developing value it creates for its stakeholders. countries has gained momentum as well. While the monetary policies implemented by the world’s leading central banks (such as the Fed, the European Central Bank and Our company has not only achieved the We are focusing on new horizons the BoJ) and aimed at reviving economic financial and operational goals it had set with our simple, realistic and flexible activity have had positive effects, the for 2017, but it has also further reinforced strategy. increased trend for global risk-taking after its value production power and its Çimsa’s strategy is focused on the the first quarter of 2017 has supported competences by carrying out important production of lasting value production capital movements oriented towards enterprises and investments that will for its stakeholders in the short, medium developing countries. shape its future. and long-term with a sustainable and profitable growth. I am pleased to express Turkish economy had an energetic In 2017, Çimsa has successfully that in 2017, Çimsa has successfully performance in 2017. completed and implemented three fulfilled its goals in the areas of It has demonstrated strong growth in significant investments which it had that year. The growth rate of the third initiated in the recent past. • economic performance quarter of the year exceeding by 11.1% • new product and new market Our Afyon Plant has been moved to its the previous year’s performance on the development through R&D and newly-built modern and green compound same period has pointed to the strongest innovation equipped with state-of-the-art cement performance in the last 6 years. Private production technology. • energy efficiency consumption expenditures have had the • creation of economic values through greatest contribution on growth with 7 The white cement investment we made environmentally-profitable investments points on the third quarter. A rise in public in our Eskişehir Plant has also been • human development consumption expenditures has also been completed and the I. production line has in question in the same period. been modified so as to produce both grey • management of risks and opportunities, and white clinker. We believe that this and that it has made a leap forward that We made important investments on investment will strengthen our position on will support its medium and long-term our 45th year. the global scene even more. growth. Çimsa has been proudly celebrating its th 45 year in the midst of fluctuating global With the finalization of the investment Our strategic plan hosted by our Board and national economic conditions. at our Niğde Plant aimed at increasing of Directors and mentored by our higher capacity, we have reached a level where management is implemented with a win- our competitive clinker production win approach and by remaining loyal to capacity structure has been even more integrated management principles. fortified. GRI-G4 G4-1, G4-DMA 3 ÇİMSA 2017 INTEGRATED ANNUAL REPORT I B2 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS This approach of ours allows us to add human resources; all the while focusing sustainable value to the welfare of all on the future. of our partners, particularly our human Çimsa is resources, our customers and our With the forward leaps it will make in stakeholders. the years to come, Çimsa will reinforce its leadership position in the global and constantly gaining Çimsa is ready for tomorrow since national cement industries on the one yesterday. hand, and on the other, it will continue strength with its Throughout nearly half-a-century, Çimsa to create more values for its stakeholders has revealed a strong, and to increase its contribution to Turkish • sustainable and healthy performance in economy. highly-developed the main objectives of We are concentrating on growth as a • adding value to Turkish economy and to profitable and efficient company. foresight, the society it belongs to, Global markets that have shown some • continuously improving stakeholder significant fluctuations in the past 10 sound financial and investor value, years have entered a phase of recovery. • becoming a role model in the cement Our visions for the future are positive. It is structure, change industry, estimated that the growth in developed economies will continue its ascension in • improving customer satisfaction in 2018 and beyond. We are strongly aware internalizing skill internal and external markets, of the great potential that exists in Turkey and ensuring the best efficiency in all and in its surrounding geography, and we and professional types of natural resources.