Akkök Holding A.Ş. Report 2015 CONTENTS Introduction 02 Akkök at a Glance 04 About Us 06 Key Financial Indicators 08 History and Development Management 16 Message from the Chairman 18 Message from the CEO 20 Executive Board 22 2015 Akkök Board of Directors Operations in 2015 Chemicals 24 Aksa Akrilik Kimya Sanayii A.Ş. 28 DowAksa İleri Kompozit Malzemeler Sanayi Ltd. Şti. 32 Ak-Kim Kimya Sanayi ve Ticaret A.Ş. Energy 36 Akenerji Elektrik Üretim A.Ş. 42 AKCEZ Enerji Yatırımları Sanayi ve Ticaret A.Ş. 44 SEDAŞ Sakarya Elektrik Dağıtım A.Ş. 48 SEPAŞ Enerji Sakarya Elektrik Perakende Satış A.Ş. Real Estate 52 Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. 56 Akmerkez Gayrimenkul Yatırım Ortaklığı A.Ş. 62 SAF Gayrimenkul Yatırım Ortaklığı A.Ş. 68 Ak Turizm ve Dış Ticaret A.Ş. Textiles 70 Aksa Egypt Acrylic Fiber Industry S.A.E. Services 72 Akmerkez Lokantacılık Gıda San. ve Tic. A.Ş. 74 Akasya Çocuk Dünyası A.Ş. 76 Ak-Pa Tekstil İhracat Pazarlama A.Ş. 77 Aktek Bilgi İletişim Teknolojisi San. ve Tic. A.Ş. 79 Dinkal Sigorta Acenteliği A.Ş. Akkök Holding A.Ş. 82 Human Resources 88 Corporate Social Responsibility 90 Sustainability 99 Financial Statements 168 Directory Akkök Holding A.Ş. Report 2015 1 APPROPRIATE INVESTMENTS, SUSTAINABLE PROGRESS… WE INVEST IN THE FUTURE WITH OUR SERVICES AND PRODUCTS, RAISING STANDARDS IN THE CHEMICAL, ENERGY AND REAL ESTATE INDUSTRIES. 2 Akkök at a Glance TOTAL COMBINED TURNOVER OF US$ 3.1 BILLION. AKKÖK HOLDİNG Attaining the sector’s highest export figure for the Mr. Raif Dinçkök founded the Akkök Holding of past 4 years running, it won the grand prize in the Companies in 1952, with the establishment of Aksu Istanbul Mineral and Metals Exporters’ Association Yarn and Weaving Factories Sectoral Export Some 62 years later, today, focusing primarily on the chemicals, energy and real estate industries Akkök DOWAKSA Holding includes over 5.000 employees and 18 DowAksa is an international 50:50 joint venture industrial and commercial companies. between The Dow Chemical Company and Aksa The Holding’s total turnover amounted to US$ 3.1 Akrilik Kimya Sanayii A.Ş. billion in 2015. A wide range of products and technical service solutions offered to the composite industry, the raw GROUP COMPANIES material of which is carbon fiber KİMYA Advanced technology developed fully by Turkish AKSA engineers Aksa was founded in 1968 as part of Akkök Holding Strong production network and advanced production 100% Turkish owned, Aksa has a production infrastructure. capacity of 315.000 tons/year. Established on an area of 502.000 square meters, ENERGY and Turkey’s only local acrylic fiber producer, Aksa is AKENERJİ also the world’s biggest producer with a share of 17% Union of forces between Akkök Holding and the in the international market. Czech energy company Cez Group With its leading actions in the field of renewable AK-KİM energy, Akenerji has become the representative of Total production capacity of 800,000 tons foresight and stability in the energy industry. Production allied with the subsidiaries on an area of An installed capacity of 1,292 MW as of 2015 year- 400,000 m2 over 5 different locations end, 388 MW of which is renewable Export spread across five continents and more than 10.7 TWh sales volume in Energy Trade 50 countries 800 employees in total EGEMER Nearly 50 employees in Ak-Kim R&D units, which is Akenerji’s largest investment the only R&D center in Yalova Erzin Natural Gas Combined Cycle Power Plant, with a capacity of 904 MW GİZEM FRİT Capacity to meet 3% of Turkey’s electric energy Established in 1979, Gizem Frit commenced the first needs frit production Became operational in 2014 Q3. The firm conducted pigment production in 1985, Electrostatic Powder Production in 1990, and ceramic AKCEZ frit production in 2008, and accomplished the first AKCEZ is a joint venture company established by enamel frit export in 1995 Akkök Holding, one of the leading industrial groups The Company joined Akkök Holding in 2015. of Turkey, and CEZ Group, one of the leading energy Production capacity of 120,000 Tons/Year companies of Europe. Indoor factory area of 30,000 m2 on a 60,000 m2 site Strong position in the electric distribution and retail The world’s 2nd largest Enamel Frit producer, with a sales industries market share of 11% Highly skilled and technically equipped labor force, Enamel, ceramic, pigment and non-stick coating renewed IT infrastructure, modern management recognized across the international market practices More than 1,000 varieties of products Quality and productivity centered service approach Export to 55 countries on five continents in the ever-changing energy market Akkök Holding A.Ş. Report 2015 3 SEDAŞ AKTEK Sedaş General Directorate is an institution providing Using the most up-to-date global technologies in uninterrupted energy distribution service to a information technology population of 3.384.719 in a total of four regions, 45 Developing applications for the Group companies to districts, 47 towns and 1.441 villages on an area of keep their technological infrastructure up to date 19.421 square kilometers covering the regions of Pioneering brand in the IT sector Sakarya, Kocaeli, Bolu and Düzce High service standards and customer satisfaction Installed power of 3.050 MVA (Mega-Volt-Ampere) and a Peak Power of 1.825 MW DİNKAL Prudent care in planning and project development in Among the most preferred companies in the line with the latest technological innovations insurance sector Expeditious and modern business solutions Potential to offer excellent service in all insurance categories SEPAŞ ENERGY Offering tailored and innovative solutions to each Retail Electricity Sales Company, the region’s final customer supplier in Bolu, Düzce, Sakarya, Kocaeli and Gebze High quality service standards The firm operates across Turkey, selling electricity to 1.5 million customers REAL ESTATE Developing expertise in know-how, improving AKİŞ REIT distribution channels and use of advertising tools AKİŞ REIT’s success in the real estate industry is The power and reliability brought about by national a result of Akkök Holding’s expertise in shopping and international cooperation center investment Investments aligned with international standards SERVICES Pioneer of high quality and credibility in the real AKMERKEZ LOKANTACILIK estate industry With its chic interior design, tranquil ambiance, Diversified project portfolio meticulous service and savory cuisine where Rich portfolio offering a wide array of real estate elegance meets comfort, Paper Moon has become investment options such as shopping centers and an Istanbul classic among the most select and residential complexes, housing, building tracts and prestigious names for fine dining factory premises Matching world standards in food and service quality Strategies targeted to vary the project portfolio An interior design that reflects luxury and simplicity AKMERKEZ REIT AKASYA CHILDREN’S WORLD An innovative perspective, a space where aesthetics Akdünya is the franchise licensee in Turkey for meet comfort KidZania, which currently operates in 14 countries Akmerkez is beyond a shopping mall; it is rather a and 17 cities. living space More than 90 role-play opportunities in more than Authentic design artistic, social and cultural activities, 60 activity areas for children according to their skills which breathe life into urban living and interests Unlimited comfort designed to meet all needs of Located on 9.900 square meter tract modern life; offers unlimited comfort AK-PA SAF GYO Export to more than 70 countries over five continents Well-respected and credible name in the industry (acrylic fiber, carbon fiber, inorganic and organic Develops projects that focus on high quality lifestyle chemical substances and frit) Brand strength in the market with the fiber and AK TURİZM thread group (polyester, polyamide, viscose, cotton) Carrying out tourism investments on Kaşık Island, Maintains its leadership position among textile which is close to the city center and yet presents exporters in the Turkish textiles industry an opportunity to escape from the hubbub, noise pollution and heavy traffic Investment plans are shaped considering the requirements of city life as well as environment and social integrity of the island 4 About Us A BEACON OF ESTABLISHED KNOWHOW, FINANCIAL STRENGTH AND RELIABILITY... Founded in 1952 by the late Raif Dinçkök, and with Ak-Kim stands out as a model company in the chemicals deep know-how spanning 63 years, Akkök Holding ranks industry with its world-class manufacturing facilities among the most well established industrial groups in and an annual production capacity of 600,000 tons. Turkey. The Group conducts operations in the fields of The Company’s range of products is oriented towards chemicals, energy and real estate, with 18 commercial various industry groups, particularly the chemicals, and industrial enterprises, one of which is overseas, textile, food, water treatment, paper, pharmaceutical and with 18 production plants. By closely following and construction sectors. Thanks to a rich product the trends in the world’s markets and in its operating portfolio of more than 500 assorted chemicals, Ak-Kim industries, Akkök Holding aims to catch up with the continuously consolidates its competitive strength in global competition, and achieve world-class standards international markets. The Company exports to about together with all the companies under its roof. 55 countries across five continents, and aims to reach a minimum turnover of USD 1 billion in 2023. It acquired With an annual installed production capacity of Gizem Frit, one of the world’s biggest enamel and 315,000 tons, Aksa is the only domestic acrylic fiber ceramic frit producers, opening upto a new market. manufacturer in Turkey. The Company holds a 17% With this acquisition Ak-Kim adds enamel and ceramic global market share in acrylic fiber production, and frit production, used in the coating of many products in supplies the textile and industrial textile industries our daily life such as white goods, kitchenware, ceramic, in more than 50 countries across five continents.