YILDIRIM GROUP OF COMPANIES
ANNUAL REPORT "shaping the future" 2019 ANNUAL REPORT
"shaping the future"
YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 1 The name of the game was sustainability up until now but the rules of the game has changed to survivability.Only the strongest will endure in the next decade.
Robert Yüksel Yıldırım
YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 3 CONTENTS
GROUP OVERVIEW...... 6 46 CHAIRMAN'S MESSAGE...... 18 PRESIDENT AND CEO'S MESSAGE...... 20 CHIEF FINANCIAL OFFICER'S MESSAGE...... 22 CHIEF OPERATIONS OFFICER'S MESSAGE...... 24 CHIEF ADMINISTRATIVE OFFICER'S MESSAGE...... 26 ECONOMIC REVIEW...... 28 YILMADEN HOLDING...... 30 COAL AND COKE...... 48 SODA ASH AND DERIVATIVES...... 54 YILPORT HOLDING...... 58 YILFERT HOLDING...... 74 YILDIRIM ENERGY HOLDING...... 82 YILMAR HOLDING...... 86 LOGISTICS...... 94 INTERNATIONAL TRADE...... 98 YILDIRIM TECHNOLOGY...... 100 CONSTRUCTION...... 104 YILDIRIM TOWER...... 110 BEYKOZ KUNDURA...... 112 FINANCIAL INVESTMENTS...... 120 HUMAN RESOURCES...... 122 SUSTAINABILITY...... 124 GARİP AND ZEYCAN YILDIRIM FOUNDATION...... 128
4 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 5 GROUP OVERVIEW
YILDIRIM Group YILDIRIM is active in 9 industries; metals and mining, coal and coke, energy, fertilizers and chemicals, port management, shipping and logistics, construction and real estate, financial investments and international trade. The foundations of YILDIRIM Group date back to 1963, when Garip YILDIRIM established a modest construction materials trading company called GARİP YILDIRIM & SONS in Samsun, Turkey.
CONSTRUCTION The Group has continuously broadened its focus through new subsidiaries since AND REAL ESTATE its establishment. By entrepreneurship and constant innovation, it has evolved into an industrially diversified group of companies as well as one of the fastest-growing Turkish industrial groups since 2005.
YILDIRIM Group is a family-owned business, held 100% privately by the YILDIRIM Family. Brothers Ali Rıza YILDIRIM and Robert Yuksel YILDIRIM are managing the
company’s operations after the losses of founder Garip YILDIRIM and brother of the PORT FINANCIAL INVESTMENTS second generation Mehmet YILDIRIM in 2017. MANAGEMENT
YILDIRIM’s business structure ensures passionate motivation for sustainable growth as well as quick and sound decision-making capabilities. COAL AND COKE YILDIRIM Group embarked on international trade first time in 1993, importing coal directly from Russia. 15 years later, the company completed its first international acquisition in Sweden in 2008. METALS AND MINING INTERNATIONAL TRADE Following the breakthrough, YILDIRIM Group has grown to become a global force based in Istanbul, Turkey, with operations in 51 countries on 5 continents, employing more than 13,000 people. SHIPPING AND LOGISTICS ENERGY
FERTILIZERS AND CHEMICALS
The key to success is in our DNA
6 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 7 MISSION, VISION, VALUES & STRATEGY 9 HUMAN DYNAMIC ACCESS RESOURCES GLOBAL STRATEGY SUSTAINABILITY 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP INNOVATION SHOP ONE-STOP- SOLUTIONS UNIQUE YILDIRIM STRATEGIC LONG-TERM INVESTMENTS WHAT MAKES WHAT diverse operations and top-tier assets. diverse operations Group offers one-stop-shop solutions to its offers Group investments and dynamic human resources. The investments and dynamic human resources. customers by its global footprint, robust financials, robust customers by its global footprint, YILDIRIM Group is powered by long-term strategic by long-term strategic is powered YILDIRIM Group STRONG STRONG FINANCIALS DIVERSIFIED OPERATIONS EXCELLENCE ASSETS OPERATIONAL TOP TIER
VISION sustainably. Contributing Contributing broadly to the to the broadly YILDIRIM aims
global economy global economy to strengthen its to strengthen our activity fields. and accelerate its and accelerate influential position influential of standing among of sustainable growth, growth, sustainable in the global arena, in the global arena, and maintaining our and maintaining the global leaders in the global leaders in in line with our ideal in line with our ideal growth momentum growth MAIN STRATEGY
VISION, MISSION, VALUES & VALUES STRATEGY Steering global change in the industries of interest. in the industries of global change Steering but is followed. does not follow Becoming the institution that will extend our that our organization across business transformation Deployment of on a global scale. reach Focusing on long-term, low-cost, expandable and high-quality assets. earnings, and high cash flow. predictable and solid profitability, Ensuring strong scale and high quality projects. Developing large risk. opportunities by optimum levels of growth sectors to take Investing in strategic customer principle, and improve as our core Embracing customer expectations satisfaction to the highest level. satisfaction valuable workforce. with our highly and energy Meeting our synergy all together. values, and growing shared our global assets by YILDIRIM’s Integrating • • • • • • • • • • GROWTH STRATEGY GROWTH Qualified workforce in high Qualified workforce team spirit Sustainability innovation, Flexibility, Entrepreneurship Customer focus Respect and honesty Excellence 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP • • • • • • VALUES 8 MISSION end- Providing to-end solutions to our global utilizing customers, the synergistic our capabilities of subsidiaries FACTSHEET
YILMADEN HOLDING YILPORT HOLDING YILDIRIM ENERGY ETİ LOGISTICS: End-to-end logistics METALS & MINING GROUP PORT MANAGEMENT HOLDING services provider in Turkey. POWER GENERATION GROUP TRANSITEX: Forwarding company ETİ KROM: The largest marketable that specializes in reefer containers, hard lumpy chrome ore producer in 4 GREENFIELD POWER PLANT active in 40 countries. YIL the world, and the only high quality PROJECTS IN TURKEY high carbon ferrochrome producer u Filiz Kirazlidere Thermal Power in Turkey. Plants, Canakkale - 2 x 660 MW YILDIRIM ASSET u Sarikaya Karaburun Thermal Power MANAGEMENT HOLDING YILKROM: Mineral exploration Plants, Canakkale - 2 x 660 MW CMA CGM: 3rd largest container company offering local and shipping company in the world, 24% international investors the chance 3 HYDROELECTRIC of shares owned by YILDIRIM HOLDING. to partner with YILDIRIM’s deep POWER PLANTS OPERATIONAL SEALEASE: Niche maritime company experience and knowledge in mining. IN TURKEY DI in Belgium and global provider u Gullubag Hydroelectric Power of full-service leasing products to VOSKHOD CHROME: Chrome Plant, Erzurum - 96 MW concentrate plant in Kazakhstan, yacht chartering companies and u Bayramhacili Hydroelectric Power passenger boats, 75% of shares owned and one of the highest quality chro- Plant, Nevsehir - 47 MW by YILDIRIM. me ore mines in the world. u Hasanlar Canal Hydroelectric Power Plant, Duzce - 4.7 MW MIDURAL: Ferroalloys and metals VARGÖN ALLOYS: The oldest and production Group headquartered in highest quality ferroalloys producer Russia, 49% of shares owned by RIM in the world. YILDIRIM. ENERGY TRADE GROUP TIKHVIN FERROALLOY: High CONSTRUCTION & REAL carbon ferrochrome producer in YETAŞ: Power and gas trade company ESTATE DEVELOPMENT Russia, and the most modern ferro- GROUP alloy plant in the CIS. YILTEKNİK: Testing and survey BEYKOZ KUNDURA: Histo- AT A BEST COAL COMPANY: Coal company. rical renovation and real estate mining investment company in development project established Colombia, and the largest integrated on an Ottoman-era tannery and underground coal mining project YILMAR HOLDING shoe factory on the Bosphorus in SHIPPING & LOGISTICS GROUP in the Americas. (Rebranded from Istanbul. YCCX, active 2014-2016). YILMAR SHIPPING AGENCY ETİ BETON: Ready-mix concrete LOGISTICS & TRADING: supplier that recycles ferrochrome BEAR METALLURGICAL Shipping and logistics operations slag. GL COMPANY: Ferrovanadium and company with a fleet of 9 dry bulk ferromolybdenum production plant and general cargo vessels. in the USA. AFFILIATED SUBSIDIARIES YM TANKER HOLDINGS: Ship YILDIRIM TECHNOLOGY: Tech- QAZAQ SODA: Soda ash and deri- YILFERT HOLDING owner company with a fleet of 10 nology provider for Group subsidi- vatives production plant investment FERTILIZERS & CHEMICALS GROUP chemical tankers. company in Kazakhstan. aries and third party customers. GEMLIK GUBRE: The lar- gest producer and exporter SOLAR CHARTERING: ETİPET: Fuel oil, gas oil and diesel AN of calcium ammonium nitrate Commercial management company oil distributor in Elazig, Turkey. COAL & COKE GROUP (CAN) fertilizers and ammonia in for chemical tankers. YILYAK: The largest and #1 sized Turkey. coal importer in Turkey. GARİP & ZEYCAN YILDIRIM YILKEM CHEMICALS: One of CHEMFLEET & DRYFLEET: FOUNDATION: YILCOQUE: Metallurgical coke Turkey’s largest, and top trading Technical management company for Established in 2015 to develop production plant in Cúcuta, companies in chemicals and chemical tankers and general cargo social responsibility projects on CE Colombia. petrochemicals. vessels. education, health, and culture.
10 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 11 GLOBAL PRESENCE
GLOBAL RUSSIA PRESENCE LITHUANIA ACROSS 51 COUNTRIES SWEDEN KAZAKHSTAN ON 5 CONTINENTS. FINLAND UZBEKISTAN
NORWAY
BELGIUM
ENGLAND
DENMARK IRELAND
NETHERLANDS FRANCE
CANADA SWITZERLAND
SPAIN CHINA UNITED STATES PORTUGAL
MEXICO MOROCCO TAIWAN
HONDURAS ITALY INDIA GUATEMALA THAILAND
VIETNAM SERBIA TURKEY BANGLADESH INDONESIA MALTA COSTA RICA ZAMBIA COLOMBIA ECUADOR SINGAPORE GREECE
TANZANIA PERU
ANGOLA BRAZIL MALAWI MORE THAN KEY CHILE ZIMBABWE Headquarters 13,000 EMPLOYEES URUGUAY Representative Office IN 51 COUNTRIES & MOZAMBIQUE Metals & Mining NAMIBIA ON 5 CONTINENTS SOUTH AFRICA Fertilizers & Chemicals Port Management ARJGENTINA Energy Coal & Coke Shipping & Logistics Construction & Real Estate
Financial Investments Forwarding
12 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 13 TIMELINE
A STORY OF SUCCESS £ ALEMDAR PORT (TURKEY) £ YILPORT CONTAINER £ YILYAK SOLID FUEL TERMINAL & PORT MARKETING & TRADING OPERATION INC. £ CMA CGM S.A. INC. (TURKEY) (SEDEF PORT + (FRANCE) £ YILKROM MINING £ GEMLIK GÜBRE INC. (TURKEY) ALEMDAR PORT) (TURKEY) £ YILDEM IRON & STEEL & ENERGY £ YILDIRIM ENERGY (TURKEY) ETİ KROM INC. (TURKEY) TRADING INC. £ YILMAR £ £ YILFERT FERTILIZER & INVESTMENTS INC. (TURKEY) INVESTMENT INC. £ YILDIRIM FOREIGN SHIPPING & £ BEYKOZ KUNDURA CHEMISTRY £ MARMARA £ ETİPET (TURKEY) TRADE & MARKETING TRADINGINC. COMPLEX (TURKEY) INDUSTRY & SHIPYARD INC. PETROL INC. £ YILAIR AVIATION INC. (TURKEY) (TURKEY) £ SEDEF PORT (TURKEY) TRADING INC. (TURKEY) (TURKEY) (TURKEY) INC. (TURKEY)
1963 1994 2000 2004 2005 2006 2007 2008 2009 2010
ESTABLISHMENT OF YILDIRIM VARGÖN ALLOYS GARIP YILDIRIM & SONS. HOLDING INC. AB (SWEDEN) CO
2011 2012 2013 2014 2015 2016 2017 2018 2019
£ SEALEASE S.A. £ YILPORT GEMPORT £ VOSHKOD CHROME (KAZAKHSTAN) £ YILFERT HOLDING INC. (TURKEY) £ TERTIR (PORTUGAL) £ BALTIC SEA £ THE SADDENING £ PUERTA QUETZAL £ TARANTO CONTAINER (BELGIUM) (TURKEY) £ TIKHVIN FERROALLOY (RUSSIA) £ YILKEM CHEMICAL IND & TRADE £ YILDIRIM ENERGY GATEWAY (SWEDEN) LOSSES OF GARİP (GUATEMALA) TERMINAL (ITALY) £ ETİ BETON WASTE £ YILPORT YARIMCA £ YILCOQUE S.A.S (COLOMBIA) INC. (TURKEY) TRADE INC. £ SOLVENTAŞ YILDIRIM, OUR £ MIDURAL (RUSSIA) RECOVERY (TURKEY) £ YILDIRIM ENERGY HOLDING INC. £ YILMAR HOLDING INC. (TURKEY) (TURKEY) (TURKEY) FOUNDER AND INDUSTRY INC. £ CHEMFLEET INC. (TURKEY) £ YILMADEN HOLDING INC. (TURKEY) £ GARİP&ZEYCAN £ PUERTO BOLíVAR HONORARY (TURKEY) (TURKEY) £ SARIKAYA KARABURUN POWER £ BCC (COLOMBIA) YILDIRIM (ECUADOR) CHAIRMAN AND £ MALTA FREEPORT £ DRYFLEET INC. GENERATION INC. (TURKEY) £ GAVLE KONTEYNER TERMINAL FOUNDATION £ BEAR MEHMET YILDIRIM, (MALTA) (TURKEY) £ PEGAI POWER (SWEDEN) (TURKEY) METALLURGICAL OUR EXECUTIVE £ ETİ LOGISTICS INC. £ SOLAR CHARTERING GENERATION (TURKEY) £ PORT OF OSLO (NORWAY) COMPANY (USA) VICE PRESIDENT (TURKEY) LIMITED (MALTA) £ RÜZGAR TEPE POWER £ SENERJİ ENERGY GENERATION £ YILDIRIM AND COO. £ YILPORT HOLDING GENERATION INC. (TURKEY) CO. (TURKEY) INTERNATIONAL INC. (TURKEY) £ FILIZ KIRAZLIDERE POWER £ DUZCE ENERGY GENERATION CO. (THE NETHERLANDS) GENERATION (TURKEY) (TURKEY) 14 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 15 METALSSTRUCTURE & MINING 17 COO COO CİHAN AKIN LOGISTICS GROUP LOGISTICS VOLKAN ÖZTÜRK VOLKAN SHIPPING GROUP (YILMAR HOLDING) CAO COO GROUP UFUK ÇETİNER CHEMICAL TANKERS MUSTAFA KEMAL ERKANAT MUSTAFA CEO HOLDING) ENERGY GROUP 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP (YILDIRIM ENERGY MUSTAFA KURNAZ MUSTAFA COO METİN OKTAY BUSINESS DEVELOPMENT COO GROUP ÖZER ÖZ ÖZER CHAIRMAN ALİ ODABAŞ (GEMLİK GÜBRE) ALİ RIZA YILDIRIM GENERAL MANAGER PRESIDENT AND CEO FERTILIZERS & CHEMICALS ROBERT YÜKSEL YILDIRIM YÜKSEL ROBERT COO GROUP RISK MANAGEMENT KUTLAY ÖZMENLİKANKUTLAY CEO CEO (YILPORT HOLDING) (YILYAK) PORT MANAGEMENT CFO CHRISTIAN BLAUERT AHMET NALCI COAL & COKE GROUP & COKE COAL DR. EVREN ÖZTÜRK
CEO CEO SODA ASH & SODA İSMAİL CEYLAN DR. ALP MALAZGİRT (YILMADEN HOLDING) DERIVATIVES GROUP DERIVATIVES ORGANIZATIONAL ORGANIZATIONAL STRUCTURE METALS & MINING GROUP METALS (YETAŞ) YILTEKNİK GEMLİK GÜBRE POLYMETCORE TRADING USA POLYMETCORE INTERNATIONAL TRADE INTERNATIONAL TRADING SA POLYMETCORE GENERATION GENERATION HOLDING INVESTMENTS YILKEM CHEMICALS SENERJİ POWER YILDIRIM ENERGY YILFERT HOLDING YILFERT POWER GENERATION POWER SARIKAYA KARABURUN SARIKAYA YILDIRIM ENERGY TRADEYILDIRIM ENERGY YILDIRIM ENERGY YILDIRIM ENERGY FILIZ KIRAZLIDERE POWER DÜZCE POWER GENERATION POWER DÜZCE ETİ LOGISTICS DRYLEET A(%51) DRYLEET TRANSITEX (%85) YILMAR SHIPPING CHEMFLEET (%51) SOLAR CHARTERING YM TANKER HOLDINGS TANKER YM QAZAQ SODA QAZAQ YILMAR HOLDING BEYKOZ KUNDURABEYKOZ ETİ BETON CONSTRUCTION & REAL ESTATE CONSTRUCTION VARGÖN ALLOYS VARGÖN YILYAK, YILCOQUE YILYAK, ETİ KROM, YILKROM ETİ KROM, VOSKHOD CHROME VOSKHOD BEST COAL COMPANY BEST COAL TIKHVIN FERROALLOY BEAR METALLURGICAL YILMADEN HOLDING HUELVA, FERROL FERROL HUELVA, GEBZE, GEMPORT PUERTO QUETZAL PUERTO STOCKHOLM NORD STOCKHOLM TARANTO, GÄVLE, BSG GÄVLE, TARANTO, OSLO, AVEIRO, LEIXÕES AVEIRO, OSLO, MALTA FREEPORT (%50) MALTA YILPORT HOLDING YILPORT ROTAPORT, SOLVENTAŞ ROTAPORT, PUERTO BOLÍVAR, PAITA BOLÍVAR, PUERTO FIGUEIRA DA FOZ, LISCONT FOZ, FIGUEIRA DA SOTAGUS, SETUBAL, TERSADO SOTAGUS,
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP SEALEASE (%75) MIDURAL (%49) FINANCIAL INVESTMENTS FINANCIAL HOLDING YILDIRIM ASSET MANAGEMENT (%24) CMA CGM STRUCTURE 16 [CHAIRMAN'S MEESAGE]
Sustainability in success, which is the result of our long years of business experience, has earned us the appreciation that we can regard as a certificate of pride by many respected and WE HAVE PROUDLY CONCLUDED 2019, independent institutions in 2019. Yılport Holding is once again listed in the 12th place among the ranking of international WORKING HARDER BY OUR PRINCIPLE container terminal operators by the respected maritime OF DOING BUSINESS WITH HIGH research institution Drewry. The well-established maritime EFFICIENCY AND PRODUCTIVITY. publication Lloyd’s List has listed Yılport Holding among the finalists in Lloyd’s List Europe Awards 2019. With significant achievements that the industry could not remain indifferent, corporate responsibility. Our philanthropy activities continued our goal to rank among the top 10 international container in 2019 by Garip and Zeycan Yıldırım Foundation that we terminal operators by 2025 stands resolute. have established for this purpose. In 2019, we granted free tuition scholarships to more than 200 successful university A proud development in Turkey in 2019 was the students nationwide. On 23 April Children’s Day, we gifted toys announcement that our fertilizer facilities in Gemlik, Bursa, and books to primary school students in Yarımca Ferrokrom Ali Rıza YILDIRIM, Chairman of the Board Turkey were inaugurated as “Gemlik Fertilizer Industry Inc. Elementary School, close to where our Eti Krom factory is Bursa Private Industrial established. YILDIRIM Group Zone” by a presidential hopes to set an example decree. We have made and wishes more global our plan to start works in YILDIRIM IS DETERMINED TO companies to emerge 2020 after obtaining project PURSUE WIDER SUCCESS IN in Turkey. Therefore we Dear Business Partners, investment incentives for believe in the importance of It is obvious that this negative outlook will continue into 2020. our greenfield urea factory. 2020 AND THE NEW DECADE. foreign language education. At YILDIRIM Group of Companies, 2019 has been a year in While the ice between the United States and China breaks, the The new urea fertilizer plant For this reason, we have which we have struggled with global and local challenges and tension with Iran escalated. Impeachment in the United States will help the growth of started extracurricular continued our tradition of displaying positive business results and upcoming presidential election will also determine the agriculture in Turkey, which English classes to 100 against the contracting market conditions. We have proudly course of global economy in 2020, in addition to the insoluble we believe will make a great contribution to the national Yılport Logistics Vocational High School students with the concluded 2019, working harder by our principle of doing dilemma of Brexit. economy. In addition to agriculture, we prioritize our new cooperation of Boğaziçi University. We donated 1000 books business with high efficiency, which is the main rule in our facility as a project of national interest because urea is widely to students of Garip-Zeycan Yıldırım Science High School commercial and industrial activities since 1963. The global macroeconomic agenda in Turkey and abroad used in industries as a raw material. Our plant will hopefully in Samsun and Zeycan Yıldırım Vocational and Technical aggravated the already problematic conditions in 2019. close the urea demand and foreign dependency by 30%. High School in Elazığ. Finally, we started our support for the As a result of the contraction in global trade in 2019, all Despite the negative commercial atmosphere and our global complete renovation of Yarımca Ferrokrom Elementary School economic actors, especially China, the United States and consolidated revenues depreciating compared to 2018; we as We see YILDIRIM Group’s ability to transfer its accumulated in 2020. Our goal in 2020 is to obtain tax-exempt foundation Europe started to turn towards protectionism in their trade YILDIRIM Group, have been pleased to maintain profitability. business experience to education, health and culture as our status and move forward to greater projects in education, policy. While countries are returning to more aggressive ways This is the most important financial criterion for us, thanks to health and culture in Turkey. to protect their domestic income, commodity markets have our strong financial structure, long-term strategies, diversity taken the strongest hit during the course of events. Commodity of our investments, high productivity and efficiency that we YILDIRIM Group of Companies is determined to pursue wider prices such as coal and oil were crushed under pressure, which prioritize in our global operations. success in 2020 and beyond. We hope to extend 2019’s global are directly related to economic growth. The raw materials of presence in the new year. I extend my sincere gratitude to my the steel industry, such as chromium, which YILDIRIM Group I can proudly say that YILDIRIM Group of Companies has colleagues who have contributed greatly to our endeavors. also is a prominent actor, experienced a year of collapse due made it a tradition to take quick action and decide accurately I wholeheartedly believe that we will build upon 2019, and to the low Chinese demand. This negative outlook has left even under pressure, relieving surprise conditions that exceed reach new accomplishments. the manufacturers no choice other than reducing supply. forecasts. Thanks to our diligence, efficiency and productivity Regarding the Turkish fertilizer market, raw input commodities criteria, we have a long-standing experience in eliminating Sincerely, such as natural gas, ammonia, sulfuric acid, phosphate rock the risks that may cause a crisis in any other enterprise. contracted in the global market, indirectly impacting the Turkish The fruits of this experience were collected again in 2019. Ali Rıza YILDIRIM market prices. Fertilizer prices dropped sharply while costs The opportunities to emerge in Turkey with the expected Chairman of the Board increased due to inflation. economic growth will be followed closely in 2020. YILDIRIM Group of Companies
18 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 19 [PRESIDENT AND CEO'S MESSAGE]
handover of the terminal in February 2020. At the end of 2019, ceremony of our Qazaq Soda facilities with the participation we received approvals from the Mississippi State Senate and of the Mr. Askar Mamin, the Prime Minister of Kazakhstan. It the port authority for Gulfport in the US state of Mississippi. In will be another source of pride for YILDIRIM Group to receive YILDIRIM HAS PROVEN ITSELF January 2020, we will apply for approval from the Committee full support from the Kazakh government for this project, on Foreign Investment in the United States (CFIUS). After which will end soda ash imports of Kazakhstan and reduce ONCE AGAIN IN 2019 AS ONE OF THE passing this review, we plan to take over the port towards the the current account deficit. In 2019, we began the transition HEALTHIEST HOLDING COMPANIES end of the first half of 2020. Our port operations experience to mechanized chrome mining in Turkey for the first time in GROWING ON A GLOBAL SCALE. in Turkey, Latin America, and Italy has proved that when you Eti Krom in Elazığ, which is a Yılmaden Holding subsidiary. This acquire a port in a region and you manage it successfully, other investment has returned an annual production capacity boost port opportunities come in domino effect. Therefore, after of additional 400,000 tons of chrome ore. As YILDIRIM Holding taking over Gulfport, we will continue to have our appetite for we made our offer in the sales tender of Kümaş Magnesite Inc. various strategic port investments in the USA. in 2019, and started bilateral talks in the last round. By closing this deal in the first quarter of 2020, we want to add Kümaş to We completed the first investment phase in Puerto Bolívar in our metals and mining portfolio. We want to venture into 2020 Ecuador, which we took over in 2017, and started the second with overhauling, increasing capacities and seizing acquisition Robert Yüksel YILDIRIM, President and CEO phase immediately. We continued our dredging work in 2019 opportunities at YILDIRIM Group. Our negotiations for fertilizer to deepen the channel to -16.5 meters. We installed two plants and soda plants in Uzbekistan will continue in 2020. mobile harbor cranes there in August 2019. Shipments of 6 We have prepared our USD 350 million investment plan for STS gantry cranes and 18 electrical RTG cranes will constitute the Gemlik Gübre Urea Fertilizer Plant in Turkey. Renewal and the most crucial equipment investment in the port. This is the capacity increase investments of the mining and port projects hot topic for Puerto Bolívar in 2020. From the moment we will be among the priority items of our 2020 agenda. We will Dear Business Partners, a global consolidated turnover of USD 2 billion by successfully started from scratch in Puerto Bolívar, we reached 220,000 also increase capacities of our ports in Italy, Portugal, Ecuador, applying our formula of working tirelessly, taking measurable TEU container throughput in 2019. We started our operations Sweden and Turkey without taking a break. 2019 was the year of limited growth for world economies and risks and capturing opportunities even in challenging conditions. by delivering 4 mobile harbor cranes in Puerto Quetzal in contraction in global markets. While we waited for the ceasefire As an industrial enterprise in love with sustainable growth, we Guatemala in 2019. We handled a total of 143,000 TEUs there We launched YILDIRIM Academy, which we established in agreement to end the trade war between the United States and committed to domestic and international investment plans with in 2019. We are focused on investments in 2020 to increase YILDIRIM Tower in 2019. In this project, our goal is to empower China, political turmoil such as the escalating tension between determination in 2019 despite the negative global atmosphere. the capacities of our current portfolio. Commodity prices were our human resources in our Group affiliates by training, the USA and Iran, impeachment of President Trump less than Our investments in countries such as Turkey, Italy, Sweden, at extreme lows in the mining and metal industry throughout mentoring, increasing their knowledge base, augmenting a year before the presidential election in November 2020, and Kazakhstan, Uzbekistan, Ecuador and Guatemala continued in 2019 and hit rock bottom all over the world due to supply them with managerial qualities, preparing young colleagues the United Kingdom not being able to close the Brexit deal have full swing, and we pursued innovative investments in untapped surplus. In order to control the adverse effects of contraction, in YILDIRIM Holding as senior executives of the future at our impacted the markets harshly. Commodity prices collapsed to regions. In addition to our organic growth, we continued we restricted our production by 30%. We anticipate that the subsidiaries around the world. I attach great importance to the bottom levels throughout 2019 due to limited 5% growth our acquisition efforts. No matter where we do business, we prices will follow a horizontal trend in the chrome market in creating a standardized office culture by spreading the know- in China and the stagnation in the European economy, while a continued to receive the appreciation and investment support 2020, after the steep drops of up to 50% in 2019. We expect how of “Being a YILDIRIM Employee” across our subsidiaries. As challenging 2020 is expected around the world. The name of of global financial and banking institutions. This is all owed to prices to recover in the next few years due to Chinese market I always say, our most valuable capital is our talented human the game was sustainability up until now, but the new decade YILDIRIM’s proven global success formula and high credibility. influence. We prioritized exploration and drilling activities in resources. We value investing in people, while investing in will change the rules of the game to survivability. Turkey and Kazakhstan, to sustain a healthier growth in mining business. 2019 was one of the golden years for the Group, especially in in the new decade. The first half of 2019 in Turkey was slow, however the second the field of port management. We reached a portfolio of 22 I extend my sincere gratitude to all my colleagues who have half led the way to limited growth. Our expectations for Turkish terminals across 10 countries. We maintained our 12th place We arrived in Kazakhstan after our Voskhod Chrome made great efforts in the accomplishments we have achieved economy at YILDIRIM is to record an economic growth among the international container operators ranking published acquisition and it is among the regions we invest with in 2019. I believe YILDIRIM Group of Companies will continue to of 2-3% in 2020. We believe this growth, albeit slower than by Drewry, a prestigious institution that keeps the pulse of enthusiasm. In 2019, we concentrated on exploration of rise in the new decade and we will create many success stories previous years will still have a positive effect on our activities maritime industry. At Yılport Holding, we continued to progress chromium, copper, gold and polymetallic minerals, which we together. in Turkey. YILDIRIM Group of Companies, one of Turkey’s further on the road towards our target of ranking among the carry out in a joint venture with Kazgeology. We continued healthiest holding companies has proven itself again in 2019. top 10 global terminal operators in 2025. We operate in the port our works for the production of soda ash in 2019. In the Taraz Sincerely, The biggest indicator of our success is the achievement of industry with a keen interest. Our annual container handling City of Zhambyl Province of Kazakhstan, we are working positive financial results in every sector we operate. 2019 has capacity reached 12 million TEU in 2019. In October 2019, we hard with the goal of producing 500,000 tons of soda ash Robert Yüksel YILDIRIM been a year in which we collected the fruits of our principle of signed the concession agreement for the Taranto Container per year with an investment of USD 400 million dollars in the President & CEO investing in good times for the bad times. We have achieved Terminal in Italy. We plan to start our operations rapidly after the first phase. In June 2020, we will hold the groundbreaking YILDIRIM Group of Companies
20 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 21 [CFO'S MESSAGE]
YILDIRIM Group’s main strategy of “sustainable cash inflow and pursuing opportunistic approach for inorganic growth” resulted in many potential organic and inorganic OUR STRATEGIC SECTORS DISPLAYED investments including acquiring operational companies, greenfield and brownfield transactions. Unfortunately, our SUPERIOR PERFORMANCE, ACHIEVED USD 1.8 billion acquisition attempt of Long Beach Container THROUGH EARLY DETECTION OF Terminal was not successful, though it proved us the trust FINANCIAL AND COMMERCIAL RISKS. of our financial stakeholders to our growth story. In 2019, YILDIRIM Group acquired the concession rights of Taranto Port. Taranto will significantly strengthen our presence in the Mediterranean region. Another first step of successful investment occurred in our fertilizer business unit. With this investment, YILDIRIM Group will be Turkey’s first granular urea producer which will solely be used in the farming industry. After each investment, our mission to create long Dr. Evren ÖZTÜRK, Chief Financial Officer term value becomes reality, but our appetite for better value still continues. In 2020, we plan to extend our portfolio through inorganic growth.
Political risks are expected to play an important part in global in the right intellectual capital along with the technological economy. Multilateral and domestic policies will directly developments. Dear Business Partners, Group’s total revenue and EBITDA, respectively. This has been affect the global trade and inflation. In 2020, weakening final achieved through early detection of financial, commercial, demand and global trade are expected to have a negative In 2019, we increased our intellectual capital incorporating Unfavorable circumstances are the perfect opportunities to test political risks and preparing in advance. effect on inflation which will be the priority of the central diversified talent with global exposure. Our employee our strength as employees and companies. In 2019, we tested banks. Central banks will try to stimulate economy to boost performance criteria are updated with brand new goals in line our financial strength, and as YILDIRIM Group we demonstrated In terms of resilience, we maintained strong cash flow the growth by increasing money supply via monetary and with today’s current needs to improve the performance both strong financial results thanks to our resilience arising from our generation. EBITDA generation at core businesses displayed quantitative easing which will provide global companies with individually and collectively. At YILDIRIM Group, we always sectoral expertise, previous crisis management experiences and limited decrease in line with the global trends. However, we favorable financing terms. As a result, we plan to maintain appreciate our dynamic, ambitious professionals who provide superb risk hedged financial positioning. maintained and/or increased our market share via sustaining our current indebtedness even with the current growth plans us fresh ideas and high enthusiasm and this is our prior request strong relationship with our stakeholders and creating win-win while significantly reducing finance related costs. from all our employees. 2019 presented the world with a risky financial atmosphere opportunities for both parties. caused by the US and China, Brexit and currency fluctuations YILDIRIM Group will ensure its sustainable profitability by In 2019, we upgraded Hyperion and SAP and implemented in developing countries. Many of these risks are still continuing investing smart and increasing efficiency. We assess potential Alteryx reporting systems enabling us to shorten financial to exist and will continue to threaten the world trade activity future risks by using various commercial, technical and reporting period significantly. Implementation of Tax Robot and growth. In 2019, our approach to make YILDIRIM Group financial metrics and strategize accordingly. This is the source through Alteryx received an excellence award in London. a more sustainable company has shown its results. In 2020, of our resilience and sustainable cash generation. In detail, Our efforts and appetite for digitalization and technological global growth with an emphasis on China along with Europe operational and financial metrics such as production & service improvement have never been higher. In order to keep and developed countries’ low inflation will be key issues. With costs, inventory levels, collection days, payment terms, CAPEX the pace with the latest trends, we are monitoring new monetary policy running out of steam, policy makers are and acquisition plans are evaluated elaborately to maximize developments closely. expected to implement more extensive plans including fiscal the cash returns. policy tools and economic reforms to boost the growth and As in previous years, financial excellence will continue to be inflation. In addition to growth, competitiveness will be the key In YILDIRIM Group, our commitment to stakeholders grows our priority in 2020 to support our commitment to growth. area for large companies since the supply increases more than every day. As the YILDIRIM Group CFO, it is a crucial part demand in general. We do not expect a global sustainable of my agenda to invest in our employees and technology Sincerely, growth story to be written in 2020. to satisfy all our stakeholders’ needs. In my opinion, this is also how a company can measure its success. The digital Dr. Evren ÖZTÜRK In 2019, our strategic sectors showed a superior performance age holds many synergistic opportunities thanks to the Chief Financial Officer given the market conditions covering the majority of YILDIRIM technological developments for the companies that invest YILDIRIM Group of Companies
22 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 23 [COO'S MESSAGE]
deposits in many areas in the eastern region of the country, 2019, we completed the design works and tender for a plant especially around Aktöbe. The exploration and drilling works with an annual production capacity of 550,000 tons. In this were conducted in a joint venture partnership with Kazgeology. way we will diversify our product portfolio, as well as increase WE ARE PROUD TO FINISH 2019 Our collaboration with the Republic of Kazakhstan accelerated our production and sales volume. Our urea production will SUCCESSFULLY BY PROACTIVELY in 2019 to start mining activities in 2020. substitute Turkey's urea imports, helping close current account FOCUSING ON EFFICIENCY AND deficit. In 2019, our project-based incentive request was We value the philosophy of smart, efficient and sustainable accepted by the Ministry of Industry and Technology. Another PROCESS EXCELLENCE IN OUR MAIN production above all. Eti Krom Waste Recycling Pilot Plant, development that pleased us is that Gemlik Gübre facilities were BUSINESS LINES. which is the latest product of our “Zero Waste” policy and announced as a Special Industrial Zone. This way, we will be innovation ecosystem, was inaugurated in February 2019. granted government incentives for our future investments. The plant produced approximately 8,000 tons of marketable chromium concentrate and 5,000 tons of olivine during the For YILDIRIM Energy Holding, 2019 was an efficient, successful year. Our target for 2020 is to realize our zero waste philosophy and profitable period in terms of energy production and by reaching an annual production capacity of 60,000 tons. energy sales at YETAŞ. We determined the purpose and vision of Yılteknik, the new subsidiary of YILDIRIM Energy Holding Özer ÖZ, Chief Operations Officer Our investment appetite for vanadium mines on a global scale during the year. In the first year of operation, our company continued in 2019. We research vanadium mining projects in has succeeded in receiving orders for medium-sized energy order to produce vanadium and meet the raw material needs of infrastructure projects at home and abroad as well as testing our ferrovanadium production plant Bear Metallurgical. and technical services and closed the year profitably.
We have put substantial effort into Uzbekistan since the second In recent years, we have achieved a steady success in Dear Business Partners, due to the stagnant demand in domestic and international half of 2018, to establish mining, energy and infrastructure operational efficiency and profitability in coal and coke markets. YILDIRIM is a prominent actor of the global chromium projects. Scientific, legal and infrastructure studies were operations at Yılyak. Coke production, domestic sized coal As YILDIRIM Group of Companies, we have achieved successful industry. While the prices were under pressure, we chose to successfully concluded by the Republic of Uzbekistan and by import and sales figures display that our sustainability rhythm business results in 2019 against global economic challenges, focus on R&D, mineral exploration, drilling, modernization YILDIRIM Holding. We plan to start our investments in 2020. continued in 2019. political turmoil and contracting markets worldwide. The and process development in our existing metal and mining challenging year of 2019 has been left behind with positive subsidiaries in 2019. The growth achieved by Yılport and our global scale have been Efficiency in all processes from production to sales is the key results, thanks to our group’s experience in industrial and a source of pride in 2020 as in previous years. In 2019, we have to sustainability. We continue our digital transformation efforts, commercial activities for more than half a century. 2019 was the year of firsts for our metals and mining reached 22 terminals in 10 countries by adding Puerto Quetzal which aim at achieving measurable and sustainable production subsidiaries within Yılmaden Holding. For the first time in the in Guatemala and Taranto Container Terminal in Italy to our standards of our industrial activities, with an expanding scope Our values such as efficient and smart working under all history of Eti Krom, we obtained the JORC certificate for our port management portfolio. At the same time, we continued every year. In 2019, we continued our digital transformation conditions, uninterrupted production, budget discipline, chrome reserves in the Kef and Dereboyu regions in Turkey. our expansion and modernization investments in Puerto Bolivar journey by implementing SAP technologies at Yılmaden, Yılport embracing long-term strategies even under critical conditions, This certification enabled us to determine the real values in 2019 as required by our concession deal. We accelerated and Gemlik Gübre in order to simplify and standardize our rapid decision making and rapid implementation have formed and the life of our reserves. Again in Eti Krom, we launched infrastructure and equipment investments in 2019. The business processes. This will bring agility to our managerial the basis for the success of YILDIRIM Group in 2019 as it was the first application of a mechanized underground chrome operational targets given in the 2019 budget were successfully decision making mechanism in our global affiliates. Digitalization the case in previous years. mining in Turkey. With the transition to mechanized mining, exceeded especially in our Latin American ports. Our business will remain vital throughout YILDIRIM in 2020 and beyond. our ore production cost in Eti Krom has been optimized, while in Turkey has reached the service quality and operational We observed a global political turbulence on the axes of the US- our production volumes almost doubled. This practice is efficiency to beat the competition via new investments. I would like to thank all YILDIRIM employees for their China and the US-Iran throughout the year. China has slowed comprehended as a great step towards smart and autonomous contribution in our achievements in 2019. I believe we will down its production capacity in the last three years. The global mining. Mechanization also provided us with a higher sense of Global collapse of prices in 2019 had a direct impact on fertilizer continue to achieve success and productivity and will carry trade volume has received the hardest blow as a result of the health, safety and security for our miners, eliminating human prices in Turkey. High inflation and fertilizer tracking system YILDIRIM to the future, while focusing on employee health, problems caused by these, in addition to political uncertainties error factor underground. (GTS) application fees, created an extra cost for the fertilizer and safety, and environmental conservation. in Europe, especially Brexit. Commodity prices fell to their agricultural industries in Turkey. Despite the contraction in the lowest levels in recent years. We faced an unexpected negative In our Voskhod Chrome Mine in Kazakhstan, we have explored fertilizer industry since 2016, changing dynamics, unexpected Sincerely, outlook in the chrome and fertilizer sectors, where YILDIRIM the existence of an additional 1.5 million tons of ore with axis shifts and the turmoil in 2019, domestic and international Group is also a global player. Despite the high prices of inputs successful and efficient drilling operations. Thus, we protracted fertilizer, ammonia and nitric acid sales reached nearly 1 million Özer ÖZ in our commodity production, we had to revise our budgeted the economic life and financial impact of our mining site. We tons, including our 560.000 tons of CAN and AN production Chief Operations Officer trade volume, production planning and commercial priorities have also explored chrome, gold, copper and polymetal ore in 2019. In 2020, we will break ground for our urea factory. In YILDIRIM Group of Companies
24 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 25 [CAO'S MESSAGE]
Employee” meetings in 2018, organized by the Training and Development Department. We reduced the time lost on WE AIM TO INCREASE YILDIRIM the commute. In 2019, we launched a cafeteria that our employees and guests can have meals and refreshments BRAND AWARENESS AMONG OUR ADMINISTRATIVE AFFAIRS inside the building, which was another significant demand OUR STAKEHOLDERS IN 2020. of that initiative. One of the results of “Being a YILDIRIM DEPARTMENT COORDINATED VARIOUS Employee” trainings was that social groups should be more PROJECTS TO KEEP YILDIRIM'S GLOBAL active. In this sense, our sports and theater clubs started their OPERATIONS IN SYNC. activities in 2019 and YILDIRIM Basketball Team continues to successfully represent YILDIRIM Group of Companies in the In 2019, we took our first steps in the Corporate Corporate Basketball League. Communications Department to strengthen important communication channels such as digital marketing and social We know that the most important and most valuable resource media. To this end, we have begun to transform web pages that will enable us to reach our targets is our talented and into a modern structure that directly affects the reputation of well-trained human resources. YILDIRIM Academy was founded our companies. The website of Yılteknik has been completed with the aim of nourishing competent, well-equipped human and the final stage has been reached on the Yılmaden website. Mustafa Kemal ERKANAT, Chief Administrative Officer resources and encouraging the career development of our In the department, we also formed a dynamic team that is employees. Our team will keep pace with the inevitable prone to producing various products. We aim to launch new transformation and change brought by technology. The projects such as content production, website management, department is committed to launch modular trainings in 2020. social media, digital marketing and YILDIRIM TV in 2020 With the establishment of YILDIRIM Academy, the Mehmet as well as products such as digital and printed magazines YILDIRIM Auditorium in our building was started to be actively while the corporate communication department transforms Dear Business Partners, Our Hospitality Department was established in 2018. As used in 2019. Many distinguished guests were hosted as into a creative collective. Our Corporate Communications of 2019, we started to offer hotel quality accommodation speakers during the year within the scope of YILDIRIM Academy. Manager Aytuğ Pirimoğlu evaluates the new period as At the Administrative Affairs Department that carries for our guests visiting from out of town, in addition to the Four of our training rooms were also actively used in 2019. follows: “We aim to increase our brand awareness among out the administrative duties of YILDIRIM Group of management of the 43 meeting rooms in YILDIRIM Tower. In our external stakeholders in 2020 by developing our existing Companies, we have transformed the challenging 2019 December 2019, we brought together the ambassadors of In 2018, we completed the transition to management with communication tools, creating new communication into an opportunity era to take steps that will enable us South American countries and business people operating in technologies, digital solutions and targets that meet the platforms, and we will rejuvenate our corporate identity for our to walk confidently into the future. Building Management, this region on behalf of the DEİK Foreign Economic Relations human resources needs of our group operating in different employees.” Hospitality, Travel, Corporate Communications, Human Board with a very successful organization. Thus, we started the geographies of the world and increase our employee Resources, Training and Development departments transformation of YILDIRIM Tower to become the new center motivation. In 2019, we revised the modules to be used on On the other hand, we have successfully organized our worked in coordination and implemented many projects where business and diplomacy meet. With the management SAP SuccessFactors and activated all of them. You can study traditional summer party and New Year’s gala, aimed at in order to meet the expectations of our stakeholders of meeting rooms, accommodation services and event the important progress made by the Human Resources increasing the corporate loyalty of our employees and at the highest level. I believe that we will take firm steps organization, our department started to provide services in all Department in detail in our annual report. strengthening the team spirit. We plan to increase the number towards our goals in 2020 and beyond owing much to the areas of hospitality. of such organizations in 2020. In addition, we will continue to infrastructure we have established. support many events organized by our business units, such as We operate in 51 countries on 5 continents with 13,000 picnics and a corporate dinner from the headquarters. Our Building Management Department, which ensures employees in our global structure. It was inevitable to plan our that we all work safely, in a peaceful atmosphere and travels better, to manage our expenses under one roof and I believe that the achievements in 2019 will increase in 2020 comfort in YILDIRIM Tower, has continued the technical, to control the costs more efficiently. In line with this quest, and beyond. I would like to express my sincere gratitude to maintenance and security services at YILDIRIM Tower with our Travel Department has embraced SAP’s Concur module the Administrative Affairs team and the whole YILDIRIM Group great devotion in 2019. In order to increase the experience as of the end of 2019 and aimed to centralize the travel and family who contributed to our successful activities during the of the emergency teams and to improve the coordination of accommodation activities of our domestic and international year. evacuation personnel, the emergency evacuation exercise companies. In 2020, we will be able to plan our business trips was conducted. We evacuated the building in full without much more systematically. Sincerely, an accident. On the other hand, in order to increase social awareness, we have supported many social responsibility In 2018, we launched our personnel shuttles for commute to Mustafa Kemal ERKANAT campaigns by illuminating YILDIRIM Tower in various YILDIRIM Tower, which is one of the most important requests Chief Administrative Officer campaign colors throughout the year. forwarded to the management during “Being a YILDIRIM YILDIRIM Group of Companies
26 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 27 [ECONOMIC REVIEW]
THE HIGH DEMAND AND LOW SUPPLY BALANCE HAD BEEN CONTINUING SINCE THE 2000s. THAT ERA SEEMS TO HAVE COMPLETED ITS TRANSITION TO A LOW DEMAND AND HIGH SUPPLY PHASE.
Görkem KAVÇAK MARKET RESEARCH DIRECTOR
2020 seems to be a year in which the economic slowdown directly related to economic growth, such as coal and oil, in the world in recent years can worsen into recession. The has reached a serious level. On the other hand, the prices of deterioration in global economic balances since 2008, commodities used in steel production have declined due to uncertainty in European economies since 2011, the chronic China's high output and uneven demand in return. The high deceleration of China's economic slowdown in the following demand and low supply balance, which has been continuing years, and the global trade wars where United States started since the 2000s, seems to have completed its transition to the fire as a result of the race to gain/lose a share from the low demand and high supply phase. Therefore, there is a global economic pie. These reveal that the probability of a continuous depreciation in prices. solution to all these chronic problems within a year is a bit weak. The only factor that will cause this decrease to stop and the prices to return to the long-term averages is the supply cuts In particular, as a result of the contraction in the global trade or restrictions. The most vivid example of this was observed side, China, the United States, the European Union and other in the last months of 2019, when Indonesia announced that countries adopted a defensive trade policy. They began it would ban nickel ore exports in 2020. Nickel prices, which KLUCHEVSKY FERROALLOY, RUSSIA TIKHVIN FERROALLOY, RUSSIA to pursue more aggressive ways to protect their current have recently followed a calm trend of USD 10,000-12,000, commercial revenues at least. Of course, this war does not have reached up to USD 20,000 in the Chinese market. consist of a single front. In 2019, we saw similar movements in commodities such as Although the US, led by Donald Trump throughout 2019, has palladium and iron ore. As a result, the liberation recipe of the used customs tariffs as a weapon, it acted as a weapon to commodity markets goes through supply cuts. reduce efforts to keep countries' currencies weak. As we saw in 2019, the currency of a country with a large economy like The expected recession for 2020 is highly likely to happen. China lost about 7.5% of its value against the dollar. Although institutions such as the US Federal Reserve provide solutions to accelerate economies, we will observe These conflicts are likely to continue in 2020. Although an the effects of this in the coming years. The huge wave agreement is reached between the US and China, the engines of demand in China in the 2000s has been replaced by of global economies are still slow, and the pie is the same size. an enormous supply surplus. Not only this but also the A dynamic in the opposite direction has not yet been formed, distribution of capital in the world is moving east, mainly to which will slow down the pie-grabbing race. China. Therefore, some structural changes will continue to take place as new balances are established. For this reason, Commodity markets continue to be affected by these 2020 will be the most difficult year of dieting for global developments. In particular, the pressure on commodities economies.
VARGÖN ALLOYS, SWEDEN
28 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 29 [METALS AND MINING] METALS & MINING
Dr. Alp MALAZGİRT YILMADEN HOLDING CEO METALS AND MINING
Dear Business Partners,
Despite the stagnating global economy and ambiguity in chromium and ferrochrome markets, which we are in, in 2019, we took firm steps CONSOLIDATED towards realizing our strategic goals and by large scale we achieved them. We made significant progress in the sustainability front in 2019. YILDIRIM GROUP For the first time in Eti Krom’s history, our chrome reserves in Kef and REVENUE Dereboyu regions are ascertained per the JORC standards.
At our Voskhod mine, in Kazakhstan, some of the technical experiments that we performed proved that eventually there is about 1.5 million tons more ore still available for mining which will have a major financial % impact on the overall feasibility of Voskhod mine. We have intensified 28 our exploration activities in Kazakhstan within the scope of Kazgeology through the five joint venture projects. THE LARGEST MARKETABLE HARD In 2019, we provided different recipes and have the agility to be able LUMPY CHROME ORE to move from product to product in our ferrochrome productions PRODUCER IN THE so that we can stay competitive in the marketplace. This could only happen with increasing our understanding of our furnaces. We WORLD have collaborated with external resources for the education of our metallurgical team. THE 2nd LARGEST We have doubled our efforts to do research and development in our HIGH QUALITY newly minted R & D Center at Eti Krom. We take the advantage of this HIGH CARBON period of relatively calm and depressed prices to install our computing FERROCHROME power in our operations, installing a system of innovation, implementing PRODUCER IN THE WORLD an enterprise resource planning system, called SAP, and focusing on massive training both of our blue and white collar staff.
I am proud to say that although 2019 may not turn to be financially so bright but as far as our determination of building a sustainable and nimble operational systems at all of our companies at Yılmaden Holding has produced very strong roots and this investment will pay off in many years to come.
Sincerely, Dr. Alp MALAZGİRT
30 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 31 METALS & MINING
33 ) 3
CO 2 The master plan is Taraz, Kazakhstan Taraz, Butler, PA, USA PA, Butler, 2022 (projected) USA 1990 6 billion tons (N143-101 compliant) 6 billion tons (N143-101 FeV80, FeMo60 FeV80, Colombia Highest quality in the world, lowest world, the in quality Highest Dibulla Port and railroad Dibulla Port with Zero Waste target where Waste with Zero the common practice in the sector is to produce 10 ton waste in order to get a ton of product. Established: Business Focus: Soda ash (Na tons 400,000 Capacity: Production Headquarters: - tons per year produc based on 1,000,000 QAZAQ SODA,QAZAQ KAZAKHSTAN per year (projected). per year (projected). tion capacity. and its derivatives The facility is designed to work industries BEST COAL COMPANY, COLOMBIA COMPANY, COAL BEST Location: Location: Resources: Resources: Proven Reserves: 716 million tons 35 million tonsPeak Coal Production: steel and iron Energy, Focus Markets: Economic Value: USD 5 billion Economic Value: Initial Coal Production: 10 million tonsInitial Coal Production: BEAR METALLURGICAL BEAR METALLURGICAL Established: Headquarters: and FeMo Business Focus: FeV Production Method: Metal thermic process Vanadium oxyde and oxyde Vanadium Material: Raw Products: Grade: 85% FeV FeMo Grade: 70% per year per year Quality: COMPANY, COMPANY, molybdenum oxyde Acquired by YILDIRIM: 2016 Acquired by Assets: a Brazilian Group.) Acquired by YILDIRIM: 2016 ash and sulphur (Formerly known as CCX, owned by owned as CCX, (Formerly known and toll manufacturing by the Colombian government. Labeled “project of national interest”“project of national Labeled Thermal value: 6300 kcal/kg 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
Tikhvin, St. Petersburg,St. Tikhvin, Yekaterinburg, Russia Yekaterinburg, Vargön, Sweden Vargön, Nur-Sultan, Kazakhstan Nur-Sultan, 2005 2018 2007 1874 4 closed type arc furnaces 4 closed type arc DTK METALS AND MINING METALS DTK Easy access toLogistics Advantages: Easy access Headquarters: Headquarters: FeSi Business Focus: HC FeCr, Furnaces: Established: ferroalloys FeCr, Business Focus: LC Established: Established: Headquarters: Mining exploration Business focus: Established: Headquarters: Established: Business Focus: HC FeCr Installed Capacity: 105 MW MIDURAL GROUP, RUSSIA MIDURAL GROUP, KAZAKHSTAN Offtake agreement: 2018 Offtake Chrome Grade: 68.5% REE, limestone) Russia VARGÖN ALLOYS, SWEDEN ALLOYS, VARGÖN Acquired by YILDIRIM: 2013 Acquired by YILDIRIM: Acquired by YILDIRIM: 2008 TIKHVIN FERROALLOY, RUSSIA TIKHVIN FERROALLOY, Swedish ports, highways and railways ports, highways Swedish (Chrome, Gold-Copper, Salt, EV minerals, Gold-Copper, (Chrome, (one of the world’s largest) (one of chemical chromic based products, based products, chemical chromic metal chrome Largest chromium salt producer in Russia. 25% of FeCr LC the world's ultra production One of the oldest ferroalloys producers in the world Russia’s largest producer of HC Russia’s largest producer FeCr (30% of total country production) The most modern ferroalloy manufacturing plant of CIS
Elazig, Turkey Istanbul, Turkey Istanbul, Turkey Aktöbe, Kazakhstan 2007 1936 2004 TURKEY Metallurgical (hard lumpy, concentrate) and concentrate) lumpy, (hard Metallurgical - min coal mining, in chrome 10 companies Exports to more than 50 countries Exports to more than Only company to produce HC FeCr in 3 countries 3 in HC FeCr produce Only company to #4 in global chromium industry#4 in global chromium The world’s largest hard lumpy marketable The world’s largest hard lumpy marketable ing, ferroalloys production and soda ash production. and production ing, ferroalloys ETİ KROM, TURKEY ETİ KROM, Reserves: 130 million tons Headquarters: HC FeCr ore, Business Focus: Chrome Established: Headquarters: lead, ore, (chrome Business Focus: Mineral exploration 2014 Established: Headquarters: Established: Exploration, mining, processing, trade mining, processing, Business Focus: Exploration, 23 exploitation licenses Licenses: 23 exploitation Products: 10,000 tons per year 10,000 Slag Recycling: tons of HC FeCr tons of refractory (hard lumpy, friable) chrome ore friable) chrome lumpy, (hard refractory Kazakhstan, Colombia, Uzbekistan) Kazakhstan, 7 countries (Turkey, USA, Sweden, Russia, Sweden, USA, (Turkey, countries 7 Active in: 160,000 ore, chrome of tons million Annual Capacity: 1 Acquired by YILDIRIM: 2004 Acquired by YILDIRIM: Assets: chrome ore producer The only HC FeCr producer in Turkey
zinc, iron, barite) zinc, iron, YILKROM, YILKROM, YILMADEN HOLDING YILMADEN Headquarters: ore Business Focus: Chrome Established: Proven Reserves: 10 million tons (JORC compliant) 1.3 million crude ore tons per year tons per Capacity: 1.3 million crude ore 3.5:1 to 3.8:1 to 3.8:1 3.5:1 Chromium to Iron Ratio: Chrome Ore Beneficiation Productivity Increase: Productivity Beneficiation Ore Chrome VOSKHOD CHROME, KAZAKHSTAN CHROME, VOSKHOD Acquired by YILDIRIM: 2013 (One of the highest in the world) (One of investment in Kazakhstan Largest Turkish Supplier for Tikhvin Ferroalloy 40% to 80% USA Colombia the World’s Highest Quality, Lowest Ash Coal of min. 6300 kcal/kg Thermal Value Leading Producer in High Quality FeV and FeMo in the USA
∞ 4 in ETİ KROM, TR ∞ 4 in VARGÖN ALLOYS, SE ∞ 4 in TIKHVIN FERROALLOY, RU 50 EXPORTS TO COUNTRIES FURNACES MORE THAN JIT Delivery Around the Globe 19 11 Warehouses Countries 12 tons
the World’s High Quality HC FeCr Producer LARGEST
exploration exploration in Turkey Cr, Pb-Zn, Polymetal, Fe LARGEST licenses in 9 Turkey‘s provinces total Russian production 54 the HC FeCr producer in Consolidated Annual HC FeCr Production Capacity operational licenses operational licenses explorational 301 2529 550,000 4 # TR, US, SE, RU, RU, SE, TR, US, UZ KZ, CO, 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP DTK EXPLORATION MIDURAL 10 ∞ ETİ KROM ∞ YILKROM ∞ VARGÖN ALLOYS ∞ VOSKHOD CHROME ∞ TIKHVIN FERROALLOY ∞ BEST COAL COMPANY ∞ BEAR METALLURGICAL ∞ QAZAQ SODA ∞ COMPANY (5JV’S) ∞ chro e inin co inin e o erro oys ro e so sh ro Consolidated Annual Chrome Ore Production Capacity Global Chromium Industry [METALS AND MINING] AND [METALS [METALS AND MINING] AND [METALS 32 METALS & MINING 35 2020 GOALS AND2020 GOALS EXPECTATIONS its activities under Yılmaden Holding Yılmaden under activities its umbrella and in line with their strategy;umbrella reliability, DTK will continue studies will continue DTK reliability, in Kazakhstan andmineralizations sustainable and reliable mining. Insustainable and reliable commodities or other scale chromite on the discovery new and large- of in 2020. Asian countries Central other order to capture sustainability andsustainability capture to order DTK Metals and Mining will continue DTK international standards, occupational occupational standards, international health and safety procedures and QA / procedures health and safety venture company with Kazgeology, a with Kazgeology, company venture DTK METALS and MINING and MINING METALS DTK (KAZAKHSTAN) which have high potentials of chromite, chromite, which have high potentials of the preliminary feasibility study of the study of feasibility the preliminary ration activities in Kazakhstan under the in Kazakhstan under activities ration and Mining, a joint Metals DTK name of rers and develops its assets adhering to and develops its assets rers metal), Kempirsai (Cr) and in Itasybulak (Cr) and metal), Kempirsai DTK, with its experienced team, explo- with its experienced DTK, and its prospecting continues DTK Licenses are found in Charskiy (Cr-Au), found are Licenses assets in element) group PGE (platinum Kazakhstan. In 2019, totally 4780 meters of diamond totally 4780 meters of In 2019, 2019 HIGHLIGHTS drilling activities in chrome, gold-copper, gold-copper, drilling activities in chrome, gold-copper and PGE mineralization. mineralization. and PGE gold-copper of completion for drilling was executed - (Poly Surovskiy (Polymetal), Maylishat QC standards. state-owned subsidiary in Kazakhstan. state-owned fields. salt and platinum soda project and for 2 gold-copper- and for soda project (Au-W-Mo). As of 2019, DTK Metals and Mining owns DTK 2019, As of Yılmaden Holding continues its explo- Holding continues Yılmaden 7 exploration licenses in Kazakhstan, licenses 7 exploration Tekturmas (Cr), Shiderty-Ekibastus (Cr), (Cr), Shiderty-Ekibastus Tekturmas 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP 2020 GOALS AND2020 GOALS EXPECTATIONS line with Yılmaden Holding strategy Holding line with Yılmaden in the line of “West Tethys Chromite Tethys “West in the line of projects in Turkey and Kazakhstan in Turkey projects protocols, international H&S, and and H&S, international protocols, new ore deposits and continue to continue and deposits ore new which is sustainable and reliable mining, and reliable which is sustainable activities will be executed in line in line activities will be executed QA / QC standards, with CRIRSCO safe and agile furnace operations. agile furnace operations. and safe sustainable mining operations. All mining operations. sustainable exploration strategy in order to discover strategy exploration environmental standards. environmental Exploration Strategy” and general and general Strategy” Exploration Yılkrom will continue its activities in its activities continue will Yılkrom meters drilling plans 75,000 Yılkrom licensed sites, and 28,640 hectares hectares sites, and 28,640 licensed lead-zinc, iron and barite license assets, and barite license lead-zinc, iron in Turkey: in 9 provinces located to complete the pre-feasibility of the the of the pre-feasibility to complete / reserve resource the purpose of total of 6280 hectares of operational operational of 6280 hectares total of process of Tau-Ken Temir company. Temir Tau-Ken of process project as technical operator. project has 31 chromium, mining licenses, diamond drilling was completed for for diamond drilling was completed different geological belts. In addition, different 5 exploration licenses in Kazakhstan in licenses 5 exploration 4 in Adana, sites in Hatay, 5 licensed soda project. In addition, 1330 meters soda project. and in the limestone-salt field in order and in the limestone-salt field in order of exploration-licensed sites, totaling exploration-licensed of (platinum group) fields in Kazakhstan fields in Kazakhstan group) (platinum confirmation within the acquisition confirmation 9 in Elazığ, 2 in Konya, 6 in Erzincan, 9 in Elazığ, 2 in Konya, in Turkey, licenses 27 exploration owns a the company In Turkey, 2019. YILKROM LICENSES IN 2019 YILKROM Yılkrom owns 7 operational licenses and licenses owns 7 operational Yılkrom part in a joint venture takes Yılkrom 6 MAPEG with newly acquired Yılkrom, 1 in Kayseri, 2 in Muğla, 2 in Gaziantep, site in Kütahya. 1 joint venture 34,920 hectares of licensed area on area licensed of hectares 34,920 license areas. As a result of 334 soil of As a result areas. license licenses have been evaluated through through have been evaluated licenses its structure and prepared 1/5000 and and prepared its structure the mineralization for In 2019, in 2020. Kütahya, project identified in joint venture identified by mapping, geochemistry have been examined in details and 138 we determined 50 million ton reserves. In ton reserves. 50 million we determined and 1/100whole license the open of scale with 1/5000 and 1/1000 scale geology though, the chrome was obtained. Even the drilling work with 1050 meters drillingthe drilling work with and economical to determine more studies werethe mining plan and cost pit mine was prepared. Over 500 surface prepared. pit mine was maps of the license area. Chromite was Chromite area. the license maps of studies, 15 ppb Au anomalyprospecting meters diamond drilling within the project In the Gaziantep-Nurdağı project, a newly project, In the Gaziantep-Nurdağı In 2019, within the scope of Erzincan- of within the scope In 2019, efficient levels will continue next year. efficient levels will levels will continue surface economic executed in two gold-copper-PGE in two gold-copper-PGE executed drilling study, the inclusions were cut the inclusions were drilling study, much more for the search deep. Likewise, executed. diamond drilling were geological studies. samples and 2500 meters drilling results 2500 meters drilling samples and outcome. support the İliç project, Yılkrom added new areas to added new areas Yılkrom İliç project, geochemical within samples collected high grade tons of and 21,000 scope submitted to our company which submitted to our company and geophysical studies, 764 meters owned tender area, Yılkrom completed Yılkrom owned tender area, was tested by 1250 metersoccurrence cut at an unfeasible deep level and studies an unfeasible cut at kilometer over 1 square an area covering 2,280 performed Yılkrom completed. was determined. ore chrome 2019, 1/5000 the map of scale geology 2019, 2780 meters diamond drilling was Adana-Feke for the iron ore areas areas ore the iron for Adana-Feke 1/1000 scale geology maps in these Totally 442 tender sites and proposals 442 tender sites and proposals Totally + CAPACITY INDUSTRY #4 2.5 EXPORT TO EXPORT COUNTRIES CHROMIUM 50 IN THE GLOBAL IN THE GLOBAL CONSOLIDATED CONSOLIDATED million tons million ANNUAL CHROME ANNUAL ORE PRODUCTION ORE PRODUCTION Exploration Kurultai. Exploration nd by the exploration studies executed in studies executed by the exploration were has been implemented and results unexplored chromite has been identified chromite unexplored the Guleman region. A new method the Guleman region. methods (splitting, gallery, drilling etc.) methods (splitting, gallery, result of this study, adhering to JORC this study, of result region. was determined in Kef resource million ton low-grade chromium resource resource million ton low-grade chromium In 2019, in the scope of “West Tethys Tethys “West of in the scope In 2019, In Aladağ project, in order to develop in order In Aladağ project, exploration strategy, 55,000 meters of meters of 55,000 strategy, exploration derived from Yılmaden’s general mining Yılmaden’s derived from As a performed. diamond drilling were Chrome Exploration Project” which was which Project” Exploration Chrome million ton indicated 7.4 standards in 2 shared alternative to conventional exploration exploration to conventional alternative and 4.2 million ton inferred chromite chromite ton inferred million and 4.2 and as a result of mine planning studies, of and as a result over 10,000 meters and identified 168 over 10,000 current resource modelling, we drilled resource current Additionally, the presence of previously previously of the presence Additionally, (TURKEY) 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP YILKROM YILKROM 2019 HIGHLIGHTS investment opportunities. In 2019, investment opportunities. In 2019, the light of scientific developments scientific the light of prospects and drilling in gold, lead- prospects molybdenum, cobalt, lithium and lithium and molybdenum, cobalt, protocols. It continues all projects in all projects It continues protocols. Kazakhstan. Holding strategy and explores and explores Holding strategy exploration team both in Kazakhstan team both exploration gold projects in line with Yılmaden in line with Yılmaden gold projects Central Asia, Africa, North America Central Asia, Africa, North America standards, occupational health and occupational standards, and QA / QC procedures safety and South America regions for new new for and South America regions and technology. and Turkey, conducts its exploration its exploration conducts and Turkey, development / resource and reserve activities adhering to international organizations with experienced with experienced organizations zinc and chromite in Turkey and and in Turkey zinc and chromite Yılkrom continued detailed surface detailed surface continued Yılkrom Yılkrom investigate vanadium, vanadium, investigate Yılkrom Yılkrom, one of the industry’s leading one of Yılkrom, [METALS AND MINING] AND [METALS [METALS AND MINING] AND [METALS 34 METALS & MINING 37 improvement, cost reduction, product reduction, cost improvement, irrigation water. irrigation increase awareness of our “Zero Waste” Waste” our “Zero of awareness increase bags to the users. bags to the ETİ KROM R&D CENTER ETİ KROM to benefit from the incentives and the incentives to benefit from the cooperation with universities andthe cooperation treated and discharged in the quality of in the and discharged treated that was generated in ferrochrome in ferrochrome was generated that related institutes. In addition, it aims institutes. In addition, related projects in a single center and catalyzes and in a single center projects production plant and social facilities are plant and social production Domestic and industrial wastewaterDomestic and industrial Provincial Directorate of Environment andEnvironment of Directorate Provincial In July 2019, Eti Krom R & D center was R & D center Krom Eti In July 2019, Urbanization and distributed 4000 cloth distributed 4000 and Urbanization quality improvement, process process quality improvement, supports that are provided from national from provided are supports that Center centralizes our existing research our existing research Center centralizes strategy, we worked together with Elazığ together we worked strategy, and international institutions. R & D institutions. and international performance activities such as efficiency, approved by The Ministry of Industry andof by The Ministry approved optimization. center conducts innovative research research innovative conducts center Technology and began its activities. R & D Technology 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP O AL 820,000 mt 820,000 is classified as hazardous waste and 300is classified as hazardous health and safety guidelines. health and safety trainings. Priority washeld virtual reality ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL SAFETY work by renewing all the equipment. work by renewing will be built after the success of the pilot of the success will be built after to occupational health and safety and to health and safety to occupational performed. 40 personnel were trainings of to and it continues team in the region, tagging system, work permit system, tons of it non-hazardous. In order to In order it non-hazardous. tons of raise their awareness. management adhering to occupational plant. Eti Krom operates the largest mine rescue the largest operates Krom Eti OCCUPATIONAL HEALTH AND HEALTH OCCUPATIONAL given to slinger training and working attention employees’ developed to attract disposed in 2019. 150 tons of this waste 150 tons of disposed in 2019. Within the scope of OHS, rescue drills and rescue OHS, of the scope Within We improve and update our locking- update and improve We subcontractor management and waste management subcontractor we culture, sustainable health and safety separation. A higher capacity main plant A higher capacity separation. at height. The reward system was height. The reward at A total of 450 tons of waste was 450 tons of A total of To increase awareness and build awareness increase To 465,000 mt 465,000 RO E O O ET RO 355,000 mt 355,000 improvements within the scope of within the scope improvements its kind in Turkey and the world to enrich its kind in Turkey in case of an opportunity, the product will the product an opportunity, in case of be marketed. Our pilot plant is the first of Our pilot plant is the first be marketed. FERROCHROME PRODUCTION FERROCHROME was realized. and revisions achieved through were A and its established. Production were within the company for internal usage but for within the company tons. A total of 87,200 tons of production tons of 87,200 tons. A total of range was expanded. 4 silosthe product tons of olivine. Produced olivine is utilized olivine. Produced tons of WASTE RECYCLING PILOT PLANT PILOT RECYCLING WASTE refractory bricks were replaced. bricks were refractory policy is the Waste Recycling Pilot Plant, Pilot Recycling policy is the Waste tons 8,000 approximately plant produced Production B facility produced 64,175 64,175 B facility produced Production product diversity efficiency and Flexibility, B facility’s 50/15 tons overhead bridge In 2019, Production A facility produced Production In 2019, single two slag skimming. The STD B A and in Facility started to be produced agile furnace production. Production production. agile furnace a product of our innovation ecosystem. our innovation of a product of salable chrome concentrate and 5,000 and 5,000 concentrate salable chrome of crane was commissioned instead ofcrane was commissioned chromite via gravitational and magnetic via gravitational chromite CONSOLIDATED CHROME EXPORTS IN 2019 EXPORTS CHROME CONSOLIDATED 23,025 tons of ferrochrome and ferrochrome tons of 23,025 The last instance of the “Zero Waste” Waste” the “Zero of The last instance The in 2019. The plant was commissioned 1,350,000 TOTAL 1,830,000 MARKETABLE PRODUCTION MARKETABLE 650,000 less allocated human resource while human resource less allocated increasing H&S standards and decreasing H&S standards increasing the cost of mining significantly. of the cost reached to 1 million ton per year withreached mine planning and these studies serve modernization. We prepare short, mid and long term prepare We as a good base for our mine facilities our as a good base for 1,000,000 O O RO E RUN OF MINE PRODUCTION 700,000 830,000 . . . CONSOLIDATED CHROME PRODUCTION IN 2019 PRODUCTION CHROME CONSOLIDATED level stoping method and mechanized implementation in the industry. This new in the industry. implementation from underground, was taken through was taken underground, from MECHANIZED UNDERGROUND MINING the facility design study with Middle East the cutting-edge technology, it is the first the cutting-edge technology, the mine level to 1345 instead of 1390. 1390. the mine level to 1345 instead of performed at the end of 2019. the end of at performed mining for the first time in chromium the first time mining for though it is not Even mining in Turkey. mining technique has almost doubled previously had been planned to be taken previously Preliminary feasibility studies were feasibility Preliminary Pit Project, officials approved to lower to approved officials Pit Project, in the mine plan, aBy improvements In Eti Krom, we have implemented sub- Krom, In Eti In 2019, 700,130 tons of high grade (28- tons of 700,130 In 2019, 800,000 tons of chrome ore. chrome tons of 800,000 CHROME ORE MINING ORE CHROME Within the scope of West Kef Open Kef West of Within the scope significant portion of the ore, which the ore, of significant portion achieved. our production capacity which hasour production ore were produced, reaching a total of reaching produced, were ore open pit and a significant saving was 46%), 99,440 tons of low grade (11-28%) tons of 46%), 99,440 Technical University was completed. Technical (TURKEY) 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP licenses is as follows: 13 in Elazığ, 4 in is as follows: licenses line with the exploration and miningline with the exploration identified as a result of mine planningresult identified as a found in the Kef region according to according region in the Kef found EXPLORATION were determined where chromium determined where were was established and started to work inwas established and tested with 2500 meters drilling. In 2019, tested with 2500 meters drilling. In 2019, tons of low-grade chromium ore. Over ore. low-grade chromium tons of to conventional exploration methods exploration to conventional the “Guleman Research Project”, a Project”, Research the “Guleman mineralizations were found. were mineralizations new deposits to be found in shorter timenew deposits to be found new exploration method has been method new exploration process at Eti Krom, the exploration team the exploration Krom, Eti at process Drillings and over 500 surface samplesDrillings and over 500 surface Hatay and 1 in Adana. Hatay Kef region to ensure exploration team exploration to ensure region Kef extension has been determined and executed in 2019 indicating 168 million in 2019 indicating executed executed and chrome ore has been ore and chrome executed distribution of the fields with chromium, the fields distribution of and baritequartzite, lead-zinc, iron Muğla, 2 in Kayseri, 2 in Diyarbakır, 1 in Muğla, 2 in Kayseri, 2 in Diyarbakır, 50 million tons of reserve has been reserve 50 million tons of 55,000 meters diamond drilling has been 55,000 Within the scope of the restructuring of scope Within the studies. In addition, new mineralization square kilometer area and target fields and target kilometer area square studied which could be an alternative be studied which could Geoscience Center has been built inGeoscience strategies of Yılmaden Holding. These Yılmaden of strategies to CRIRSCO adhering studies executed and QA / QC protocols. standards an area of 27,760 hectares in Turkey. The in Turkey. hectares 27,760 of an area and lower costs. In this context, magnetic context, In this and lower costs. in 10 conducted and gravity studies were operational licensed sites that spans over sites that licensed operational (splitting, gallery, drilling, etc.) and enable (splitting, gallery, continues its activities effectively. With its activities effectively. continues ETİ KROM 2019 HIGHLIGHTS At the end of 2019, Eti Krom owns 23 Krom Eti 2019, At the end of JORC standards. [METALS AND MINING] AND [METALS [METALS AND MINING] AND [METALS 36 METALS & MINING 39 pond and roads construction roads pond and monitoring Using discharged materials for the for materials Using discharged enterprise Gardening of the territory of SPZ and SPZ of the territory of Gardening survey a radioecological Conducting of the territory as part of radiological as part of the territory of
laws of the Republic of Kazakhstan. of the Republic laws of in vocational training necessary for training necessary in vocational varying from software to operation and to operation software varying from was retrained and received advanced and received was retrained technical personnel on myriad subjectstechnical personnel blasting. of training in the field the performance of job duties. In of the performance maintenance trainings. Mine personnel trainings. maintenance labor on industrial safety, performed to the according ecology, protection, machinery producers trained Voskhod trained Voskhod machinery producers resources and staff development staff and resources approximately USD 105,000. approximately Voskhod invests heavily in human invests Voskhod consulting companies and mining companies consulting TRAINING 2. 2019, various prestigious international various prestigious 2019, Additionally, compulsory training was compulsory Additionally, 3. 4. Training expenditures of 2019 is of expenditures Training 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP buildings of the concentration plant the concentration buildings of Dust suppression of roads and roads of Dust suppression legislation in the field of environmental in the field legislation basis in compliance with environmental basis in compliance ENVIRONMENTAL PROTECTION ENVIRONMENTAL were developed. An alarm system An alarm system developed. were to alert civil defense was installed testing of knowledge. Apart from Apart from knowledge. testing of emergency trainings, the regular dust, and lighting temperature, response plans for hazardous facilities facilities hazardous for plans response protection, fire safety, instruction and and instruction safety, fire protection, monitoring is performed on a quarterlymonitoring is performed established by requirements protection Besides environmental protection. actions following legislation, protection Department of Emergency Situations Situations Emergency Department of during accidents, connected to the to the connected during accidents, air noise, vibration, quarterly for decreased due to the modernization decreased standards. Compared to 2018, Voskhod’s emissions Voskhod’s to 2018, Compared are held continuously: are of Aktobe. Workplaces were checked checked were Aktobe. Workplaces of of dust collecting plant. Environmental plant. dust collecting of 1. ) (KAZAKHSTAN 2019 HIGHLIGHTS VOSKHOD CHROME VOSKHOD in the eastern part of the Karagash field. in the eastern part of in 2019 was USD 450,000. implemented a system that allows reuse implemented a system that facility. HEALTH AND SAFETY HEALTH EXPLORATION western area is left to drill in 2020. The 2020. is left to drill in western area water is purified to the level of drinking level is purified to the water the internal needs of and used for water 2019 with in September was inaugurated to the laws of the Republic of Kazakhstan of the Republic to the laws of WASTE WATER TREATMENT WATER WASTE remaining three reserves will also be drilled reserves three remaining reverse water supply and for the process supply and for water reverse all passes through water needs. Waste mine filtration, the plant. After method at attracts that process purification Kazakhstan produced 1,050,000 tons 1,050,000 produced Kazakhstan HSE activities were performed adhering performed HSE activities were in continued internal trainings Regular Republic of Kazakhstan, Mr. Askar Mamin, Kazakhstan, Mr. of Republic In 2019, Voskhod chrome mine in mine chrome Voskhod In 2019, USD 4.5 million CAPEX investment. USD 4.5 Urazalin and YILDIRIM Holding President enterprise. quality lumpy ore and breeze concentrate. and breeze quality lumpy ore 5,470 meters of drilling works in Karagash meters of 5,470 stages of the physicochemical treatment the physicochemical stages of field was completed. One deposit in thefield was and international standards. HSE budget standards. and international and CEO Mr. Robert Yuksel Yıldırım in the Yıldırım Yuksel Robert Mr. and CEO Voskhod has developed and successfully Voskhod of crude ore, and 670,000 tons of high tons of and 670,000 crude ore, of of wastewater after treatment, both in treatment, after wastewater of the of hosting the Prime Minister of considerable attention. We had the honor We attention. considerable 2019 covering industrial safety, labor labor industrial safety, 2019 covering Akim of the Aktobe region Mr. Ondasyn Mr. the Aktobe region Akim of The wastewater treatment facility system treatment The wastewater waterThis facility has state-of-the-art increase the overall yield from 35% to 75%. the overall yield from increase be expanded. prospecting and geophysical explorations. and geophysical prospecting tons. target is 102,910 the production In 2020, production. with full focus. planned in 2020 and will continue plant based on the Waste Recycling Pilot Plant. The main plant is designed to The main plant Plant. Recycling Pilot based on the Waste plant (Cr2O3) annually and ore chromium concentrated tons of 60,000 produce accordance with CRIRSCO standards and QA / QC protocols. We will focus We standards and QA / QC protocols. accordance with CRIRSCO application of the sub-level stoping method in our underground Kef mines will Kef in our underground the sub-level stoping method of application management under one roof. management FERROCHROME PRODUCTION on the Guleman Research Project by conducting large surface geochemistry surface large by conducting Project Research Guleman on the on ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007. The system will bring and OHSAS 18001:2007. ISO 14001:2015 on ISO 9001:2015, In 2020, engineering works will be accelerated to build a higher capacity process will be accelerated engineering works In 2020, in processes agile uphold will Facility B Production and Facility A Production are waste policies emission and zero consumption, CO2 in water Improvement In 2020, the exploration team aims to perform 45,000 meters of drilling in drilling in meters of 45,000 team aims to perform the exploration In 2020, mechanized Fully will be our focus in 2020. and modernization increase Efficiency CHROME ORE MINING Our Integrated Management System is planned to be established in 2020, based is planned to be established in 2020, System Management Our Integrated 2020 GOALS AND EXPECTATIONS 2020 GOALS
me plant by exergoeconomic analysis me plant by exergoeconomic residue recycling pilot plant products recycling Enhancing the academy-industry Extracting nickel and platinum from and platinum Extracting nickel - ferrochro of a the efficiency Evaluating Improving the quality of waste the quality of Improving Investigating the production potential the production Investigating olivine mineral of refractory material from olivine from material refractory of cooperation 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
[METALS AND MINING] AND [METALS [METALS AND MINING] AND [METALS 38 lopment and investment projects. Our key Our investment projects. lopment and independent entity with our improved infrastructure. increased and possible analysis errors were and possible analysis errors increased analysis easily within chromium and iron Therefore, structure. its Central Laboratory held in 2020. In 2019, OHSAS 18001:2007 In 2019, held in 2020. for chromium and iron analyzes, within the within analyzes, and iron chromium for follows: ETİ KROM CENTRAL LABETİ KROM we successfully fulfill our responsibilities fulfill our we successfully will continue in the center in 2020 are as are in 2020 in the center will continue to internal and external customers as an - Accredi by the Turkish tory was accredited Agency (TÜRKAK)tation until January 2023 through the necessary audits and received audits the necessary through mana- total quality version of the current - deve new product evaluate tifically and reliability in production and sales operations in production reliability its own can perform Krom Eti prevented. process. ment System certificate was renewed andrenewed was certificate ment System performed for the transition audit to TS EN for performed research and development projects that projects and development research Necessary documentation studies were documentation Necessary In January 2019, Eti Krom’s Central Labora- Central Krom’s Eti In January 2019, ISO / IEC 17025: 2017 version which will be 17025: 2017 version ISO / IEC In January 2019, our quality system passed In January 2019, QUALITY SYSTEM dard. As a result of the accreditation, data the accreditation, of As a result dard. gement certificate TS EN ISO 9001:2015.gement certificate Occupational Health and Safety Manage- Health and Safety Occupational 5. scope of TS EN ISO / IEC 17025:2012 stan- TS EN ISO / IEC of scope compliance was approved during the audit was approved compliance 2. 1. 3. 4. These support our existing activities scien- our existing activities These support METALS & MINING 41 2020 GOALS AND2020 GOALS EXPECTATIONS increase the already high quality already the increase to success. productions further, by having further, productions a high utilization of the raw the raw of a high utilization economy by increasing a circular materials, together with a focus together with materials, secondary raw materials. of our production continue. In continue. our production of the cost of order to reduce will be essential on productivity raw materials of our utilization combined with domestic We will continue to work towards will continue We Continuous improvements to improvements Continuous 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP lation in year 2020. The company always The company in year 2020. lation issues. work to gather data and conduct studies conduct and data work to gather - with the regu to be able to fully comply to adapt to the limitations in the BAT. in the BAT. to adapt to the limitations more to the circular economy by efficient economy to the circular more recycling. rence Document (BREF) for Non-Ferrous (BREF) for Document rence EU in 2016. COMPLIANCE STUDIES COMPLIANCE Metals Industries was sanctioned by theMetals Industries was strives to be proactive in environmental strives to be proactive at the factory as well as scientific research the factory as well as scientific at Vargön Alloys AB are doing an extensive Alloys AB are Vargön All industries concerned will have 4 yearsAll industries concerned - Refe (BAT) Techniques The Best Available
(SWEDEN) lived by a code of conduct with 8 prin- conduct of lived by a code have been on a high level for most part level for have been on a high for ordinary bulk ferrochrome, Vargön Vargön ferrochrome, bulk ordinary for autumn 2020. from furnaces ENVIRONMENTAL FOCUS ENVIRONMENTAL SOCIAL RESPONSIBILITY we have found a solution to recycle their to recycle a solution we have found raw efficiently as secondary waste more named our slag as a product, we certified tank for further transportation through further transportation tank for the specialty steel industry had a betterthe specialty steel industry on all four the plant to start producing the standards ISO 9001:2015 and ISO ISO 9001:2015 the standards to implement these throughout our entire to implement these throughout pipelines to the district heating centrals in centrals pipelines to the district heating This joint development hasmaterial. mental system approved by LRQA for mental system approved part of our day to day business and strive our day to day part of Despite gradual decline in demandDespite gradual #8 furnace we restarted April 2019 During Investments have been approved to allow approved Investments have been QUALITY SYSTEM CAPEX INVESTMENTS gases and deliver the hot water to a buffergases and deliver the hot water demand in 2019, whereby, deliveries still whereby, demand in 2019, We recover the heat from our waste from the heat recover We successful examples to contribute even examples to contribute successful supply chain. since 2015. We see these principles as a see We 2015. since and concreate. We are pleased with theseare We and concreate. Vargön Alloys AB has maintained and Alloys Vargön Vascoria, to be used as ballast in asphalt Vascoria, our two neighboring cities. on ferrochrome and at the same time and at on ferrochrome of the year. of created a new product group. In 2019 group. a new product created closed the smaller furnace #9. closed the smaller furnace ciples based on the UN Global Compact 2019 HIGHLIGHTS VARGÖN ALLOYS ALLOYS VARGÖN Alloys’ niche ferrochrome products for products ferrochrome Alloys’ niche 14001:2015. Together with Swedish steel producers steel producers with Swedish Together - and environ has a quality The company
th anniversary. Over 15 years anniversary. th ANNIVERSARY TH 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP local government bodies, Voskhod’s Voskhod’s local government bodies, including grievance mechanism. including grievance implementing projects in these areas, the in these areas, implementing projects between Voskhod and government, non- between Voskhod from low-income families, orphans, and low-income from focused on an active and healthy lifestyle,focused veterans and employees attended theveterans and employees attended SOCIAL RESPONSIBILITY youth education and development, and youth education million tons of products were shipped to were products million tons of million tons of ore, 4.2 million tons of million tons 4.2 ore, of million tons participating in various charity events:participating reflects the system of cooperationof the system reflects partners and the local community. Helping disabled individuals, children For this purpose, the company hasFor this purpose, the company events. elderly people. In 2019, more than USD more elderly people. In 2019, environmental protection, social protection, environmental 15 governmental organizations and the localgovernmental organizations developed and put into force a regulation developed and put into force Our personnel have a tradition of stakeholders, including employees,stakeholders, flowers and trees in variety landscape in variety flowers and trees anniversary. architecture activities within celebration architecture and charity programs. In process of In process and charity programs. Voskhod Group’s social activities mainly Group’s Voskhod Voskhod’s 15 Voskhod’s Voskhod team planted more than 15,000 than 15,000 planted more team Voskhod of operation, Voskhod mined about 7.5 about 7.5 mined Voskhod operation, of on stakeholder engagement, whichon stakeholder ceremony organized in honor of the 15 the in honor of organized ceremony consumers. concentrate were produced, and 4.06 and 4.06 produced, were concentrate charitable programs. community on a wide variety of issues, on a wide variety of community company concentrated on some specific concentrated company 2019 was a remarkable year for being year for a remarkable 2019 was Yılmaden Holding representatives, the representatives, Holding Yılmaden 780,000 were spent in social activities and were 780,000 [METALS AND MINING] MINING] AND AND [METALS [METALS 40 METALS & MINING 43 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP high quality ferrovanadium high quality ferrovanadium ferroalloys. - Bear Metallur utilization, to minimize the impact to minimize productivity, Bear provides Bear provides productivity, to customers. products Despite low capacity expanding its portfolio of of expanding its portfolio gical Company was able With high efficiency and and ferromolybdenum and ferromolybdenum 2020 GOALS AND2020 GOALS EXPECTATIONS by providing vertical integration vertical integration by providing to the steel industry besides toll to the steel industry besides toll focus on the growth of vanadium in of growth focus on the aims to have its own raw materials raw materials aims to have its own and to serve as a strong supplier supplier and to serve as a strong manufacturing. Bear Metallurgical Company will will Company Bear Metallurgical 2020. In this context, the company the company In this context, 2020. infrastructure. - the ferrovana entered has successfully to EBITDA and cash flow in 2019. This is and cash flow in 2019. to EBITDA dium and ferromolybdenum markets, markets, dium and ferromolybdenum due to its sustainable financial structure, acquisition of BMC, Yılmaden Holding Yılmaden BMC, acquisition of and technical equipment automated
CLIENTS. GRADE FEV & FEMOGRADE YIELD BACK TO THEYIELD BACK WITH GUARANTEED WITH GUARANTEED BMC IS THE LEADINGBMC PROCESSOR OF HIGH OF PROCESSOR PRODUCER AND TOLL PRODUCER (USA) lished in 1990 in Butler, Pennsylvania Pennsylvania lished in 1990 in Butler, in the United States. In 2016, YILDIRIM YILDIRIM In 2016, in the United States. in North America. Main ferrovanadium and ferromolybdenum and ferromolybdenum ferrovanadium friendly approach. with an environmentally with an environmentally yield and toll conversion technology. technology. yield and toll conversion production. The company was estab- The company production. nadium, and up to 60% to 70% standard pany (BMC) is the largest pany (BMC) is the largest 80% FeV of producer the company of products and high nadium (FeV) Bear Metallurgical Company is a sub- Bear Metallurgical - continu Bear successfully Com- Bear Metallurgical ed its production in 2019 ed its production grade ferromolybdenum. After the grade ferromolybdenum. grade ferromolybdenum (FeMo). BMC grade ferromolybdenum sidiary of Yılmaden Holding, active in Yılmaden sidiary of The the company. acquired Group almost 30 years in the market and it is market almost 30 years in the product its high quality for acclaimed - high grade ferrova are company has a reputable history of history of has a reputable company - ferrova up to 80% grade can produce BEAR BEAR METALLURGICAL COMPANY 2019 HIGHLIGHTS TOTAL 261,600 O AL 226,000 mt 226,000 119,900 VARGÖN ALLOYS 97,000 mt 97,000 VARGÖN ALLOYS VARGÖN 85,400 ETİ KROM ETİ KROM 75,000 mt 75,000 56,300 CONSOLIDATED FERROCHROME SALES IN 2019 FERROCHROME CONSOLIDATED TIKHVIN FERROALLOY CONSOLIDATED FERROCHROME PRODUCTION IN 2019 PRODUCTION FERROCHROME CONSOLIDATED TIKHVIN 0 50 54,000 mt 54,000 150 100 250 300 200 FERROALLOY increase mobility during shipment. In In mobility during shipment. increase to diversify our product range. We strive strive to diversify range. We our product range and to extend our raw materials will expand the base. We the resource focusing on efficiency, we will also work we will also work focusing on efficiency, warehouses of finished products to to finished products of warehouses will be paid to attention of addition, a lot responsibility issues in 2020. responsibility maintain operational efficiency. While While efficiency. operational maintain technologies. We our production renew occupational safety and environmental and environmental safety occupational consider the possibility of expanding expanding consider the possibility of 2020 GOALS AND2020 GOALS EXPECTATIONS The main strategic goal in 2020 is to goal in 2020 is to The main strategic (RUSSIA) fine chrome fine chrome the the technical performance performance processed processed aspiration aspiration amount of amount of of the the of of furnaces. of ore without without ore compromising compromising Stage 2 Stage 2 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP OF PRODUCTION, TIKHVIN FERROALLOY FERROALLOY TIKHVIN 2019 HIGHLIGHTS leak in the crushing area, the the leak in the crushing area, in Tikhvin due to our continuing in Tikhvin due to our continuing introduction of a new briquetting a new briquetting of introduction fine fraction of chrome ore ore chrome fine fraction of SOCIAL ACTIVITY unit will provide a healthier work a healthier work unit will provide unit for the finished product the finished product unit for was commissioned. Production Production was commissioned. the Russian Orthodox Church Church the Russian Orthodox the general sponsor of the annual the annual the general sponsor of technology will increase the the technology will increase tons of briquettes per year. The The briquettes per year. tons of the market condition in the global in the global condition the market per month. By capturing dust per month. By capturing dust metallurgical industry. metallurgical environment and recovery of those those of and recovery environment small metal particles. Competition and of the celebration the celebration Competition and of awarded with the diplomas from with the diplomas from awarded of Tikhvin City Day. We were were We Tikhvin City Day. of crushing and sieving has been crushing and sieving has been dust of The amount completed. caught has risen to 50-60 tons charity help. capacity of the facility is 50,000 the facility is 50,000 capacity of [METALS AND MINING] MINING] AND AND [METALS [METALS 2019 realized as 56,000 tons due to tons due to as 56,000 2019 realized ADVERSE GLOBAL ADVERSE Tikhvin Ferroalloy was once again again was once Tikhvin Ferroalloy Children’s International Tikhvin Lel’ The briquetting facility for the the for The briquetting facility Tikhvin ferrochrome production in in production Tikhvin ferrochrome IMPACTED BY THE BY IMPACTED 42 MARKET CONDITIONS. MARKET TIKHVIN FERROALLOY TIKHVIN FERROALLOY REALIZED 56,000 TONSREALIZED METALS & MINING 45 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP 2020 GOALS AND2020 GOALS EXPECTATIONS license is among the 2020 2020 license is among the has been updated and the and the has been updated long coal mining methods are targets. The different capacity capacity targets. The different based on the licensing process these updates. to start mining operations in in operations to start mining The the Cañaverales quarry. feasibility of the Papayal site the Papayal site feasibility of acquisition of the operating the operating acquisition of and these studies also evaluated will enter and railway projects will be evaluated. In addition, In addition, will be evaluated. will be concluded by using short foot, room heel, and other heel, and other room short foot, options of the San Juan project the San Juan project options of different methods of mining for for of mining methods different Our port combinations. different San Juan and Papayal, such as such as San Juan and Papayal, Our main objective in 2020 is is objective in 2020 Our main
lifestyle and world view, identified and identified and and world view, lifestyle in production preparation, socio- preparation, in production be initiated in 2020 as a result of the the of as a result in 2020 be initiated ENVIRONMENTAL AND SOCIAL AND ENVIRONMENTAL EFFORTS very old community councils in the in the councils very old community verales license, interviews were held held interviews were verales license, with local communities registered by by registered with local communities the ministry in the Papayal region. In In the ministry in the Papayal region. air and water of state to the current the Interior Ministry. In the presence In the presence the Interior Ministry. region, integration of the local people local people the of integration region, public meetings. The next stages will sites regarding all licensed made at In 2019, within the scope of Caña- of scope within the In 2019, evaluation of the project submitted to submitted to the project of evaluation quality. addition, regular measurements are are measurements addition, regular observed the characterization of the the of observed the characterization of the ministry, we studied the local we studied the local the ministry, of cultural determination. We organized organized We cultural determination. licenses of the San Juan region explo- region the San Juan of licenses initiated. include the determination of asset and of include the determination identified within the scope of southern scope identified within the SAN JUAN SOUTHERN LICENSES SOUTHERN SAN JUAN projects will be presented to the relevant to the relevant presented will be projects will be process ministries and the EIA resource reporting standard, Joint Ore Joint Ore standard, reporting resource ration activities and different types of types activities and different ration these of the presence where rocks the most probable are mical analyzes Reserves Committee (JORC, NI 43-101). NI Committee (JORC, Reserves exploration methods applied for silver, silver, methods applied for exploration elements have been detected by che- subsequent production planning studies subsequent production sources. The 2020 targets for this field for The 2020 targets sources. reserve- adhering to the international copper, and molybdenum search. The search. and molybdenum copper, 2020. Subsequently, mining operation mining operation Subsequently, 2020. 7 polymetallic formations have been 7 polymetallic formations (COLOMBIA) 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP largest project of BCC with 6,300 kcal/ with 6,300 BCC of project largest licenses have also begun for Papayal. In have also begun for licenses les project will be ready for stripping in for will be ready les project les mine, which offers 6,000 kcal/kg ma- kcal/kg 6,000 les mine, which offers in 2019 are the completion of basic of the completion in 2019 are kg value, 5.8 billion tons of resources resources billion tons of value, 5.8 kg kg calorific value. Its underground long calorific value. Its underground kg by the Interior Ministry as the project by the Interior Ministry as the project has been improved in terms of both of in terms has been improved foot option project was submitted to the option project foot PAPAYAL MINE PAPAYAL SAN JUAN MINE SAN JUAN operational for the EIA evaluation terial in 117.2 million tons of resources resources million tons of terial in 117.2 required by the end of the first quarter of the first quarter by the end of required mid-2020 and then for coal production. coal mid-2020 and then for pit mine project, Cañaverales, and the Cañaverales, pit mine project, - resour million tons of Despite its 26.1 quality the highest Papayal contains BCC is to utilize the open pit Cañavera- the open pit is to utilize BCC Impact Assessment) evaluation process. process. evaluation Impact Assessment) CAÑAVERALES MINE CAÑAVERALES stakeholders is finalized. The Cañavera- is finalized. stakeholders studies have concluded. The informing The informing studies have concluded. finishing the construction of the open- construction finishing the of the EIA (Environmental finalization and 672 million tons of reserves. We We reserves. and 672 million tons of of different the evaluation aim to finalize approval of the ministry. Preparations for for Preparations the ministry. of approval and 26.7 million tons of reserves. Its EIA reserves. tons of million and 26.7 alternative production methods and production alternative and detailed engineering studies and and detailed engineering options to reduce the initial investment options to reduce obtain Papayal’s operational license. obtain Papayal’s operational of ethnic groups that are recognized recognized are that ethnic groups of ces and 15.6 million tons of reserves, reserves, million tons of and 15.6 ces kcal/ with 6,700 project the BCC of coal capacity increase. San Juan underground mine is the San Juan underground 2019 HIGHLIGHTS San Juan, an underground coal project, project, coal San Juan, an underground 2020, all requirements will be fulfilled to all requirements 2020, BEST COAL COMPANY BEST COAL [METALS AND MINING] MINING] AND AND [METALS [METALS The most probable production project of of project production The most probable The most important BCC activities activities important BCC The most 44 METALS & MINING 47 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP last long and lead by the Chinese domestic loy, the ferrochrome producing subsidiaries subsidiaries producing the ferrochrome loy, increase our volume with spot sales during increase to last our volumes compared increased in 2019 like other market players. market other in 2019 like has been a partial increase in prices and in prices has been a partial increase folio. However, spot market was also very spot market However, folio. ver, we were able to maintain the volume able to maintain we were ver, volume as expected because of the lower volume as expected because of were not able to reach our target that we that our target not able to reach were that time. However, positive climate did not positive climate time. However, that prices Chinese spot market tender prices, that we captured last year in the Japanese last year in we captured that to the tightening in the automotive sector, the automotive sector, to the tightening in main customers in our of the consumption of pricing strategies aggressive the help of witnessed about 40% we the competitors, year in the rest of Asia / China however we of year in the rest year, we lost some market share in India share market we lost some year, market. able to during Q1 and we were pectations many manufacturing sectors and global un- many manufacturing competitors. low cost of products pared to last year. Consequently, ferro- Consequently, to last year. pared With markets. the other commodity most of - Ferroal Alloys and Tikhvin Vargön Krom, Eti - com has been diminished market Europe In the rest of Asian / Chinese markets, there there markets, Asian / Chinese of In the rest In the North American market, we lost In the North American market, demand with the temporary optimistic ex- demand with the temporary optimistic We 20% during Q2/Q3. around dropped drop on ferrochrome index prices YoY basis. YoY index prices on ferrochrome drop We experienced contraction in demand in in demand contraction experienced We set at the beginning the year. set at stagnant because it was oversupplied with stagnant because it was oversupplied with and increased domestic production. Howe- domestic production. and increased amount of long term contracts in our port- contracts long term amount of of Yılmaden Holding had a challenging year Holding had a Yılmaden of compared to 2018 because of low prices low prices of to 2018 because compared certainty due to trade wars. Especially due due to trade wars. Especially due certainty chrome prices dropped drastically following drastically following dropped prices chrome FERROCHROME As one of the best performing markets last markets the best performing As one of
MINING 3. 4. MINERAL 4. PROCESSING
2. PLANNING 5. METAL 5. PRODUCTION 1. EXPLORATION 6. MARKETING DELIVERY 7. MARKET 7. 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP CHROME ORE CHROME YILMADEN HOLDING YILMADEN MARKETING SALES AND FERROCHROME [METALS AND MINING] AND [METALS [METALS AND MINING] AND [METALS levels of the year in late Q3 and Q4. We We Q3 and Q4. the year in late levels of in Kazakhstan and Russia. There has been in Kazakhstan and Russia. There been a slight increase in sales to Vargön to Vargön in sales been a slight increase worries, chrome ore prices are expected expected are prices ore worries, chrome whole of 2019 and they were at lowest at were 2019 and they whole of to fluctuate also in 2020. As production As production also in 2020. to fluctuate to the trade war between US and China to the trade war between US and China to the price drops and the growing need for need for and the growing drops to the price may expect slide recovery especially after after especially may expect slide recovery - to ferro Chrome Voskhod no sales from - Chro Voskhod Sales of there. production due to global mainly me also decreased che- chrome and less demand from prices Russia and Kazakhstan. of mical producers Eti Krom was the number one exporter of was the number one exporter of Krom Eti get of 1 million tons for 2019. However, due However, 2019. 1 million tons for get of Chinese new year in February 2020. Due Chinese new year in February 2020. slowdown in commodities, decreasing sales decreasing slowdown in commodities, and demand would be in balance in 2020 and demand would be in balance in 2020 and we may expect better prices and also global slowdown and recession and also global slowdown and recession ore and ferrochrome production, supply production, and ferrochrome ore ore prices were under pressure throughout throughout under pressure were prices ore compared to 2019. compared cuts have already started both in chrome started both in chrome cuts have already chrome plants in western China. Chrome plants in western China. Chrome chrome chrome in Turkey in 2019. Voskhod Chrome Chrome Voskhod in 2019. in Turkey chrome its existing customers to supply continued chrome inside Yılmaden Holding, Eti Krom Krom Holding, Eti inside Yılmaden chrome non-group to ore chose not to sell chrome has There the year. Q1 of after companies Alloys thanks to increasing ferrochrome ferrochrome Alloys thanks to increasing Yılmaden Holding budgeted a total sales tar- Holding budgeted Yılmaden 46 COAL & COKE 49 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Ahmet NALCI GROUP COKE & COAL CEO, in line with the targets. Despite negative market conditions, positive results conditions, market Despite negative in line with the targets. in overcoming the difficulties and ending 2019 with successful results as the difficulties and ending 2019 with successful in in overcoming both the coke needs of YILDIRIM Group companies were fully met, and the were companies YILDIRIM Group needs of both the coke foreign market trends. We have implemented a purchase and sale policy in and sale policy implemented a purchase have We trends. market foreign were obtained. In addition to the long years of experience of Yılyak, qualified Yılyak, of experience obtained. In addition to the long years of were this, Yılyak continued to trade with its traditional customers without risk. to trade with its traditional customers without continued this, Yılyak the previous year. Yilcoque completed 2019 with a total of 160,000 tons of 160,000 2019 with a total of completed Yilcoque year. the previous market has declined and competition climate have become harsher. Despite harsher. have become climate has declined and competition market profitability target was achieved. YILDIRIM’s strong financial structure, work financial structure, strong was achieved. YILDIRIM’s target profitability powder exports and sales. and coke coke metallurgical Dear Business Partners, Coal trade in the domestic extended into 2019 as well. effects Negative employees, customer trust and loyalty contributed greatly to our success. greatly employees, customer trust and loyalty contributed 87,000 tons of coke sales including sales to Eti Krom. to Eti sales including sales coke tons of 87,000 significantly contributed company as a reliable and reputation experience Moreover, steam coal and anthracite sales on board were also carried out were and anthracite sales on board steam coal Moreover, Our Yilcoque coke factory rapidly adjusted to market conditions such as conditions factory rapidly adjusted to market coke Our Yilcoque sales trio. Sized coal and steam coal sales continued in a balanced manner in manner in a balanced sales continued and steam coal coal sales trio. Sized and Krom, imports including the volume to Eti coke of tons sales, 114,000 sudden increases in coking coal prices and the difficulties in the coal supply. and the difficulties in the prices coal in coking sudden increases accordance with the current market conditions, analyzing the supply-stock- analyzing the conditions, market with the current accordance Yılyak market. in line with adverse and fluctuating were that and practices appropriate actions. Finally, in terms of Yilcoque, 2019 was a year in which Yilcoque, in terms of actions. Finally, appropriate almost twice in the region during the year. Despite the local difficulties the year. during in the region almost twice traders international the large of practices and the harsh and competitive operating in the region, the need for coking coal has been met with fast and coal coking the need for in the region, operating conditions. Our company ended the year profitably with positive results with positive ended the year profitably Our company conditions. coal tons of imports, 415,000 coal tons of 370,000 2019 with completed Sincerely, 2019 was a year of declining prices in the international coal and coke markets. coke and coal international the in prices declining of year a was 2019 Turkey. have impacted fluctuations rate exchange August 2018, Since 2019. As in previous years, our company has closely followed domestic and has closely followed years, our company As in previous Ahmet NALCI Yilcoque continued to produce with full capacity. Coal prices increased Coal prices with full capacity. to produce continued Yilcoque The sales volume target could not be reached due to unfavorable marketdue to unfavorable not be reached could The sales volume target There was no production shortage with the right decisions in the right time. shortage with the right decisions was no production There
%
AND THE
MOST 6 REVENUE CONSOLIDATED GROUP YILDIRIM TURKEY’S LARGEST SIZED IMPORTER COAL IN TURKEY PRODUCE TO OVERSEAS COKE THE FIRST COMPANY RELIABLE RELIABLE 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP COAL AND COKE AND COAL [COAL AND COKE] AND [COAL 48 COAL & COKE 51 warehouses high and the customer warehouses made to keep the product range in our the product made to keep expanded. portfolio demand and number of customers, high demand and number of was also imported coke quality foundry trial purposes Colombia for from directly and offered to customers. Efforts were were to customers. Efforts and offered 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP 2020 GOALS AND EXPECTATIONS 2020 GOALS is expected that the domestic coal supply and sales in 2020 will be slightly will be slightly the domestic coal supply and sales in 2020 is expected that depots our coal target of the sales In 2020, to 2019. higher compared have started from our warehouses. This strategy will continue this year. this year. will continue This strategy our warehouses. have started from been advanced in recent years, connection with reliable sources has has sources connection with reliable years, been advanced in recent trial shipments positive negotiations, of been established, and as a result the new year will begin with the targeted minimum stock levels. In line minimum stock levels. In line the new year will begin with the targeted Colombian coal have our efforts towards the quality high in our stocks, was determined as 600,000 tons. In terms of our warehouse stock figures, stock figures, warehouse our In terms of tons. was determined as 600,000 keeping origins and different supplying coal from of with our strategy Demand for metallurgical coke will continue. generic coal markets, are higher than 2019. in 2020 is expected to be slightly breeze and coke No significant increase in domestic coal demand is forecasted in 2020. It It in 2020. coal demand is forecasted in domestic increase No significant On the other hand, the supply of Russian and South African coal, which South African coal, which Russian and hand, the supply of On the other Accordingly, our sales target in 2020 is 25,000 tons of coke breeze and and breeze coke tons of in 2020 is 25,000 our sales target Accordingly, 100,000 tons of metallurgical coke, including sales to Eti Krom. including sales to Eti metallurgical coke, tons of 100,000 in a business relation in the recent years. in the recent in a business relation In 2019, the free on board sales totaled sales on board the free In 2019, domestic market. With the increasing With the increasing domestic market. around 100,000 tons. Sales of steam tons. Sales of 100,000 around in the continued were coke and foundry (breeze) to third parties we have been third to (breeze) coal, coke breeze, metallurgical coke coke metallurgical breeze, coke coal, in the sale of coal for heating purposes heating for coal in the sale of is a successful and reliable supplier in and reliable is a successful have continued to increase the sales of the sales of to increase have continued warehouses in Samsun, Trabzon, Gebze Gebze in Samsun, Trabzon, warehouses to Russia and Ukraine from Yilcoque’s Yilcoque’s to Russia and Ukraine from years starting with sized coal in Turkey in Turkey coal years starting with sized Established in 1994, Yılyak specializes specializes Yılyak Established in 1994, In addition, the company has become has become In addition, the company In 2019, Yılyak continued to supply continued Yılyak In 2019, 2019 HIGHLIGHTS expanded its business portfolio over the expanded its business portfolio steel industries with steam coal, coking coking steel industries with steam coal, steam coal, coke breeze and anthracite breeze coke steam coal, field by supplying coke and coke breeze breeze coke and coke field by supplying and continues coal sales direct from from sales direct coal and continues The company in Turkey. and İskenderun sugar and as well as supplying cement, a subsidiary of YILDIRIM Group. Yılyak Yılyak YILDIRIM Group. a subsidiary of of activity with well-established all fields infrastructure. and experienced and sell steam coal. In addition, we and sell steam coal. of YILDIRIM Group of Companies. of YILDIRIM Group of one of the biggest companies in this the biggest companies one of coal, PCI and occasionally anthracite. PCI and occasionally coal, coke factory in Colombia, which is also coke YILYAK YILYAK WAREHOUSE, SAMSUN WAREHOUSE, YILYAK Yılyak is one of the first subsidiaries is one of Yılyak YILCOQUE YILCOQUE 160,000 mt PRODUCTION YILYAK WAREHOUSE, ELAZIG WAREHOUSE, YILYAK 87,000 mt COKE SALES COKE have reflected on the metallurgical coke coke on the metallurgical have reflected the negativities us from have covered updated according to market conditions. conditions. to market according updated the low levels of coking coal prices prices coal coking the low levels of year in terms of profitability for the coal coal the for profitability year in terms of prices, and therefore on the price of of on the price and therefore prices, of and selling strategies purchasing PCI, steam coal and sized coal. Finally, Finally, coal. and sized steam coal PCI, Our strategy of rapid decision-making rapid decision-making of Our strategy and rapid implementation of decisions decisions of and rapid implementation YILDIRIM. business of and coke of the markets. It has been a successful a successful It has been the markets. of Yılyak and Yilcoque companies were were companies and Yilcoque Yılyak 114,000 mt COKE IMPORTS COKE 415,000 mt COAL SALES COAL 370,000 mt last year. Contrary to the steady prices Contrary to the steady prices last year. in Turkey deliveries maintained CIF 130 maintained CIF 130 deliveries in Turkey followed a declining trend in Turkey. in Turkey. a declining trend followed CIF 90 USD/ton in the beginning from various quality sized coal and steam and steam coal various quality sized washed coal vendors stood firm in vendors stood firm in washed coal their policies. SSPK quality coal prices prices quality coal their policies. SSPK COAL AND COKE SALES IN 2019 SALES AND COKE COAL USD/ton levels, albeit a little lower than a little lower than USD/ton levels, albeit end of the year in Turkey. As a result; As a result; the year in Turkey. end of 0-50 mm steam coal prices declined declined prices 0-50 mm steam coal of washed SSOM-SSPK quality coal, quality coal, washed SSOM-SSPK of USD/ton in the the year to CIF 60 of coal prices supplied from Russia has Russia has supplied from prices coal COAL IMPORTS COAL
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP beginning of the year. This significant This significant the year. beginning of used as PCI. However, high quality high quality However, used as PCI. which are of appropriate quality to be quality to be appropriate of which are was the year prices continuously continuously prices was the year to be reflected in Turkish sale prices Turkish sale prices in to be reflected the beginning of the year, China’s China’s the year, the beginning of the year due to pressure from the the from the year due to pressure year. Far East delivery PCI prices also also East delivery PCI prices Far year. metallurgical coke prices were around around were prices coke metallurgical metallurgical coke and PCI prices. At At prices. and PCI coke metallurgical prices have decreased from 175-180 175-180 from have decreased prices In terms of international energy coal, coal, energy international In terms of USD/ton to FOB 90-95 USD/ton. This USD/ton to FOB 90-95 USD/ton. This USD/ton to 125-130 USD/ton during USD/ton during USD/ton to 125-130 declined during the year, from FOB 130 FOB 130 from declined during the year, was considered decline in PCI prices decrease was also reflected on on was also reflected decrease of SSOM and SSPK type Russian coal Russian coal SSOM and SSPK type of crashed. International coking coal coal coking crashed. International coking coal and coke markets, 2019 2019 markets, and coke coal coking 260 USD/ton towards the end of the the the end of 260 USD/ton towards 330 USD/ton, while it declined to it declined to 330 USD/ton, while COAL AND COKE AND COAL IN 2019 MARKETS [COAL AND COKE] AND [COAL 50 COAL & COKE 53
increase the synergy generated the synergy generated increase coke dust, coal and other in coke manufacturing and supplying manufacturing and supplying the coke needs of our own our own needs of the coke producers in the region. In In in the region. producers further. products ferrochrome factories, we factories, we ferrochrome additional coke from coke coke from additional coke aim to increase our coke our coke aim to increase sales and exports by contract sales and exports by contract capacity in 2020. After meeting After meeting capacity in 2020. expected to continue at full full at expected to continue At Yilcoque, production is is Yilcoque, production At 2019, efforts will continue to to efforts will continue 2019, 2020 GOALS AND 2020 GOALS EXPECTATIONS low phosphor coal. Around 510,000 tons 510,000 Around low phosphor coal. in 2019, since the day it was established. since in 2019, ferrochrome plants, coal needs were also were needs plants, coal ferrochrome sold in to be parties. In order third from the Turkish market (traded through our (traded through market the Turkish out carried shipments were coke tons of raw tons of 160,000 A total of to Yılyak. the domestic market. Our company has Our company market. the domestic production facility, laboratory and staff. and staff. laboratory facility, production made factory management. Our coke employees. philosophy and experienced met. Our company exported a total ofmet. Our company manufacturing, to meet the needs of reached the highest sales performance the highest reached Improvements were made in our were Improvements In addition to the coke needs of our needs of to the coke In addition excess production and quantities supplied production excess screened coke to those factories were to those factories coke screened to YILDIRIM contributions significant with its quality management Group of coke breeze was marketed, including was marketed, breeze coke of company with the Polymetcore) 35,000 35,000 with the Polymetcore) company including contractwas produced, coke Strong steps have been taken for quality for steps have been taken Strong Sweden, and Russia. The total exports ofSweden, YILDIRIM’s ferrochrome factories in Turkey, factories in Turkey, ferrochrome YILDIRIM’s 120,000 tons. 120,000 7,000 tons of low ash, low sulphur and low ash, low sulphur of tons 7,000 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP half of the year due to the volatility in the volatility the year due to half of been realized together with the sales in been realized factory during the year, has reduced has reduced factory during the year, were expanded. The trial shipments of The trial shipments of expanded. were the region for inclusion purposes. Our for the region traded coke breeze in the Colombian breeze traded coke taken into account, 175,000 tons of 175,000 into account, taken production policy in our own coke policy in our own coke production region. On the coking coal supply coal On the coking region. positive results. When all products are When all products positive results. In addition to coke production, Yilcoque production, In addition to coke In 2019, export commodity portfolio export commodity In 2019, efforts have commenced for foundryfor commenced have efforts global commodity prices. global commodity domestic market for export purposes. export for domestic market stock area was rented in the Cúcuta was rented stock area also made to create were side, efforts sales and 160,000 tons of exports have tons of sales and 160,000 an appropriate mineral repertoire in mineral repertoire an appropriate company, acting with full capacity company, in the second manufacturing contract coal shipments to the Turkish market shipments to the Turkish coal In addition trial shipmentcontinued. observed We in Turkey. market coke increased. In the supply of coking coal; coking In the supply of increased. for coke production. In order to reach to reach In order production. coke for this production, subcontracted coke coke subcontracted this production, production has continued to increase. to has continued production coal, coking in the supply of provided 2019 HIGHLIGHTS experiencing difficulties in the past years. diversity. We have supplied approximately have supplied approximately We diversity. quality continuity with the assurancequality continuity We have achieved coke production and production achieved coke have We Our coke factory operated in full factory operated Our coke supplier strategy of protecting quality protecting of supplier strategy stock level by securing the supply of according to market conditions with its conditions to market according in Colombia and to producers all coal and production efficiency has been and production our company has taken a rapid position has taken our company of our ferrochrome plants in Turkey, plants in Turkey, our ferrochrome of create new supply sources, a separate new supply sources, create coking coal needed for production and production needed for coal coking capacity in 2019; to meet the needs Sweden, and Russia. In addition to Sweden, 280,000 tons of coking coal in total coal coking tons of 280,000 Yilcoque maintains the minimum safety maintains the Yilcoque 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP is to produce low phosphorus low phosphorus is to produce has strengthened its position as its position as has strengthened built from the ground up. The up. The the ground built from from third parties. Yilcoque has 400 has 400 parties. Yilcoque third from 130.000 and produces furnaces, tons of subcontracted crude coke, crude coke, subcontracted tons of to that, considering the production the production considering to that, tons of raw coke a year when it a year when it raw coke tons of the most reliable manufacturer in in manufacturer the most reliable Our factory has also the region. YILCOQUE received a high demand for coke coke a high demand for received main purpose of its establishment establishment its main purpose of by Yılmaden required coke reactive Holding’s ferrochrome subsidiaries; subsidiaries; Holding’s ferrochrome Alloys and Tikhvin Vargön Krom, Eti it foundation, its Since Ferroalloy. subsidiaries, was established in subsidiaries, was established in first greenfield facility of YILDIRIM, of YILDIRIM, facility first greenfield amount of approximately 30,000 30,000 approximately amount of of crude coke annually. annually. crude coke of operates at full capacity. In addition In addition full capacity. at operates coke production company. It is the It is the company. production coke [COAL AND COKE] AND [COAL 2013 in Cúcuta, Colombia as a 2013 in Cúcuta, Colombia as a Yilcoque can produce 160,000 tons tons 160,000 can produce Yilcoque Yilcoque, one of YILDIRIM Group YILDIRIM Group one of Yilcoque, 52 SODA ASH & DERIVATIVES 55 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP İsmail CEYLAN CEO DERIVATIVES and ASH SODA limited to this region. With our vision, vast experience and knowledge With our vision, vast experience limited to this region. increasing the capacity of existing facilities, cultivating YILDIRIM culture YILDIRIM culture facilities, cultivating existing the capacity of increasing vision set, it will escalate in 2020 and beyond. vision set, it will escalate within these facilities, making its stakeholders happy, and being a reliable being a reliable and happy, within these facilities, making its stakeholders of activity and location. we determine the new field the fields of soda ash (Na2CO3) and its derivatives, modernizing and and its derivatives, of soda ash (Na2CO3) the fields products cost, high quality production low to achieve high efficiency, the production not limited to studies are performed Successfully target. reached the point in less than a year where it was said could not be it was said could the point in less than a year where reached we are set last year, within two years. In line with the vision reached YILDIRIM. of the speed moving at Dear Business Partners, YILDIRIM had difficulties to survive, when many companies During 2019, In Qazaq Soda project, we implement several patents and know-how patents we implement several In Qazaq Soda project, evaluated. We entered into 2019 with an ambition of making new investments in making new investments of into 2019 with an ambition entered We in 2019; and with the to increase continued in 2018 Our high energy İsmail CEYLAN supplier contributing to the country economy and we have achieved and we have achieved economy the country to supplier contributing have expansion plans. We moved in full speed ahead with major Group in waste is produced 10 tons of where In the sector standards. safety and logistics, minimum environmental impact and high health and impact and and logistics, minimum environmental our targets. waste” to achieve “zero we work hard product, to get one ton of order are projects chemicals production soda ash, but also other inorganic of Sincerely, Although our target geography is CIS countries, our activities are not our activities are geography is CIS countries, Although our target 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP [SODA ASH & DERIVATIVES] ASH [SODA 54 SODA ASH & DERIVATIVES 57 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
have been prepared and application and application have been prepared has been completed. Salt mine drillings has been completed. and the GKZ have been completed factory site was prepared. The protocol The protocol was prepared. factory site infrastructure of the construction for water reserve of these artesian has been of reserve water were prepared and sent to companies. and sent to companies. prepared were the state has been prepared. been prepared. has the state the nearest existing railway station to the to the railway station existing the nearest process was completed. There are two are There was completed. process reporting process is in progress. process reporting projects (railway, water, electricity) by electricity) water, (railway, projects Limestone mine GKZ reporting process process reporting Limestone mine GKZ In order to reduce production costs and costs production to reduce In order environmental improvement, 4 patents 4 patents improvement, environmental determination of the underground the underground of determination determined and EPC tender documents determined and EPC Owners engineering company has been company Owners engineering started. artesian sites near the factory land. The artesian sites near the factory land. The 21 kilometer railway connection from from connection railway 21 kilometer An office was established in Taraz. was established in An office
ate gR ratin e Op 100% 95% 90% 85% 80% 75% 70% 65% 60% 27 22 21 20 Production (-0.9/2.8) Operating Rate Forecast
19 18 ) 17 ) 16 15 14 ) 13 Domestic Demand (-1.3/1.3 Total Capacity (0.9/1.3 12 2-17/17-27 line with our action plan. infrastructure of the facility, set set the facility, of infrastructure kilometer long electricity line, EPC kilometer long electricity line, EPC to be completed in 2020. It is our It is our to be completed in 2020. in to start soda ash production tender completion, financing of of tender completion, financing finalizing detailed the project, primary for 2020 and beyond goal EPC company and starting EPC company and starting planned in Kazakhstan are Factory construction of the Qazaq Soda Qazaq Soda the construction of engineering study, completing completing engineering study, GKZ report, constructing 28 constructing 28 GKZ report, 2020 GOALS AND 2020 GOALS EXPECTATIONS =1 The works such as obtaining such as obtaining The works 0 0 0 0 0 0 0 0 0
8. 7. 6. 5. 4. 3. 2. 1. 0.
s Ton Metric lion l Mi AAGR
(%
e Rat rating e Op 100% 90% 80% 70% 60% 50% 27 22 21 20 19 18 17 16 15 14 ) 13 12 2-17/17-27 =1 0 0. 80.0 60.0 40.0 20.0 AAGR 100.0 (% Source: IHS Markit Source: 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP including factory and social facility lands, been completed and it was approved and it was approved been completed was process TEO by the experts. The from the artesian near the factory site. from usage right was obtained from Akgöl, usage right was obtained from water intake structure and 48 kilometer structure intake water waste operations lands and reserve lands and reserve lands waste operations use wasright of and the completed were water requirements, 10 liters per second 10 liters per second requirements, water was obtained usage permission water which was required for the construction the construction for which was required was completed. Public Participation Public Participation was completed. the factory, 1000 tons per hour water the factory, the projects to Kazakhstan standards standards to Kazakhstan the projects pipeline project was prepared. pipeline project period, was designed and put into the period, was designed Basic engineering works were works were Basic engineering SODA ASH ANDSODA GROUP DERIVATIVES economic feasibility of the project has the project of feasibility economic 2019 HIGHLIGHTS Meeting was successfully held. The Meeting was successfully Cadastral works of 2535 hectares hectares 2535 Cadastral works of state budget. For the construction site construction budget. For the state successfully completed. completed. successfully obtained. For the water requirement of requirement obtained. For the water completed and the adaptation of of and the adaptation completed 28 kilometers long 2 MW electricity line 2 MW 28 kilometers long QAZAQ SODA SALT DRILLINGS, KAZAKHSTAN DRILLINGS, SALT SODA QAZAQ [SODA ASH & DERIVATIVES] ASH [SODA 56 PORT MANAGEMENT 59 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Christian BLAUERT CEO HOLDING YILPORT harbor cranes. Yılport team is fully committed to using all endeavors team is fully committed harbor cranes. Yılport for providing the best service to customers. The ambitious target of the of to customers. The ambitious target the best service providing for warehouse for 600,000 tons of paper, the planned foodstuff laboratory, laboratory, the planned foodstuff paper, tons of 600,000 for warehouse world’s Solventaş liquid terminal sustained its position as the well. Yılport will TEUs eventually with the investment that to 860,000 will increase terminal in Ecuador. The tender process for the expansion of container container the expansion of for The tender process terminal in Ecuador. The Q2 2020. of the beginning at terminal is expected to be concluded equipment inventory with the addition its current terminal increased two new Gottwald mobile harbor cranes in addition to Liebherr mobile technology and services. terminal continued construction of a new fully automated high-rise a new fully automated of construction terminal continued works concreting the first phase terminal. Gemport terminal completed portion in the market share and catching better growth than the overall better growth and catching share portion in the market in the Puerto Bolívar have ongoing projects America, we In Latin market. Dear Business Partners, demand increasing to meet the needs of continued Expansion projects project development The Leixões and Aveiro. Huelva, Figueira da Foz, In Italy, the concession agreement of Taranto Container Terminal was Terminal Container Taranto of agreement the concession In Italy, Liscont, in Leixões, the projects Iberia, we simultaneously continued e-RTG’s, completed the berth construction, and renovated the liquid and renovated the berth construction, completed e-RTG’s, Christian BLAUERT signed in July 2019. Our Oslo terminal had good progress in short sea good progress Our Oslo terminal had signed in July 2019. the call to new lines. In Gävle, the port of shipping and has become In and added new customers to its portfolio. provider service standard and a new logistics area adjacent to the port in addition to 600,000 to the port in addition to 600,000 adjacent and a new logistics area handling assets and liquid cargo and volume both in the container 4 new The terminal added terminal in Turkey. Gebze our Yılport at of 2 giant mobile harbor cranes. Puerto Quetzal in Guatemala added 2 giant mobile harbor cranes. Puerto Quetzal in Guatemala of of 80,000 square meters of new yard. Containership lines started to Containership new yard. meters of square 80,000 of the terminal The capacity of terminal started in 2019. the container of company is to continue stronger into the future with state-of-the-art with state-of-the-art into the future stronger is to continue company call Gemport with 2 services (Libya and Tunisia) in October 2019 as (Libya and Tunisia) call Gemport with 2 services our is to increase our target total. For 2020, EUR 43 million in cost Sincerely, Yılport Holding left another intense and aggressive growth year behind. year behind. growth left another intense and aggressive Holding Yılport TEUs expansion of the ongoing project. the TEUs expansion of
%
% of
INTERNATIONAL INTERNATIONAL
38 FASTEST
PORT MANAGEMENT REVENUE CONSOLIDATED GROUP YILDIRIM
YILDIRIM GROUP YILDIRIM REVENUE 33 CONSOLIDATED GROWING BY 2025 BY VISION TO RANK AMONG RANK AMONG VISION TO TOP 10 INTERNATIONAL INTERNATIONAL TERMINAL OPERATOR IN THE WORLD THE PORT AND TERMINAL OPERATORS 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP [PORT MANAGEMENT] [PORT 58 PORT MANAGEMENT 61 t aport Gebze Gempor Rot Solventas UR EY minal rminal e inal T Ter
y Term
r d Dr r o urpose ine p N lti olm h k S EDEN I ALY c nto o a ävle Mu ävle Conta t r G S G a T Freeport 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP MAL A Malta errol uelva F H SPAIN o l s O NOR AY s t u g a con t o S a da Foz xões r rsado i e Aveiro e Lei T Sadoport POR UGAL isboa Lis isboa igu L L F YILPORT GEBZE, TURKEY l a z to Quet r
e u P GUA EMALA 3 Paita PERU o Bolivar t r 12 millon TEU ECUADOR Pue Istanbul, Turkey 1 million CEU 2004 Ro-Ro: Ro-Ro: Dry Bulk & General Cargo: 22 million ton Liquid Cargo: 2.15 million m Container: • • • • urkey, Portugal, Spain, Sweden, Malta, Norway Malta, Spain, Sweden, Portugal, urkey, Ecuador, Peru, Guatemala, Italy Guatemala, Peru, Ecuador, #12 International Container Terminal Operator #12 International Container Terminal Largest Port Operator #1 Turkey’s Growing International #1 The Fastest Terminal Operator Terminal T Established: Holding Structure: 2011 Headquarters: management Business Focus: Port Number of Ports: 22 6 Number of Dry Terminals: Number of Countries: 10 YILPORT HOLDING, TURKEY YILPORT HOLDING'S GLOBAL REACH YILPORT HOLDING'S GLOBAL Number of Employees: 6000+ 99% Crane Availability: Capacities: Consolidated Average Crane Moves: 30 moves per hour Average % 6.6 FORECASTED 2020 GROWTH 2019 % PUERTO BOLÍVAR 23 % 6.400 11
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
22 10 [PORT MANAGEMENT] [PORT 60 PORT MANAGEMENT 63 3 RECORD TURKISH PER HOUR PER CRANE 28.3 MOVES YILPORT GEBZE YILPORT BY 2025 BY 5 MILLION M 40 MILLION TON 4.6 MILLION CEU 33.75 MILLION TEU INCREASE 3
% FORECASTED 6.6 2019 7 1 MILLION CEU 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP 12 MILLION TEU 2.15 MILLION M 22 MILLION TON 6.1 6.4 6.5 6 5
4
TEU million 3
2 1 CONSOLIDATED CONSOLIDATED HANDLING CONTAINER CONSOLIDATED DRY BULK AND DRY CONSOLIDATED HANDLING GENERAL CARGO LIQUIDCONSOLIDATED HANDLING CARGO HANDLING RO-RO 2020 2018 2019 YILPORT HOLDING'S CONSOLIDATED CAPACITIES YILPORT HOLDING'S CONSOLIDATED YILPORT OSLO, NORWAY YILPORT OSLO, 2018-2020 CONTAINER HANDLING THROUGHPUT HANDLING 2018-2020 CONTAINER IN th livered 2 MHCs to Yılport Puerto Bolívar Puerto Bolívar 2 MHCs to Yılport livered with a the region leading terminal in in 2019. The company remained as the remained The company in 2019. information systems, being compatible being compatible systems, information de- in Gävle. We investments continue terminal the first deep-sea in 2019, harbor cranes already arrived at Puerto Puerto arrived at harbor cranes already DREWRY RANKING DREWRY world’s 12th largest container terminal container world’s 12th largest - environ the of the conservation with committed mobile of 4 with the final 2 top 10 global port operators by 2025. top 10 global port operators - conti OLG SA (OLG). tica Guatemala ment and promoting tourism. As a part part tourism. As a promoting ment and in Puerto Quetzal nues its operations Region will also be integrated to SAP SAP to be integrated will also Region finance with new regional ERP module expansion projects and equipment and equipment expansion projects ement with SAP and implemented SAP Quetzal and operations continue with 4 with 4 continue Quetzal and operations structure. In the Nordic Region, the the Region, Nordic In the structure. global CRM system to have 360-degree and 18 e-RTGs in 2020. Yılport Holding Holding Yılport in 2020. and 18 e-RTGs operator. Yılport Holding is one-step Holding is one-step Yılport operator. of regional integration process, Iberian Iberian process, integration regional of into the will steer it We Ecuador. of - Operadora Logis of owns 55% shares closer to its target of being among the of closer to its target continuing investment of 6 STS cranes 6 STS cranes investment of continuing - Holding signed an agre cranes. Yılport customer operations. YILPORT HOLDING 12 Yılport Holding kept its steady position Holding kept Yılport latest technology used in the world’s in the world’s technology used latest ports, both in equipment and in largest ixões development project of the South the South of development project ixões the Alcântara investment will modernize PUERTO BOLÍVAR, ECUADOR BOLÍVAR, PUERTO - in the all terminals. Le realized were - an agree reached Liscont million. Yılport ment in July 2019 with the Portuguese Leixões will increase the capacity to the capacity to will increase Leixões 860,000 TEUs and will cost EUR 43 EUR 43 TEUs and will cost 860,000 Container Terminal of Port of Leixões Leixões of Port of Container Terminal concession modifies the that state commenced. Development project at at Development project commenced. The the Alcântara Terminal. for contract Terminal, providing it with the best and and it with the best providing Terminal,
nd is expected to have a negative effect on effect is expected to have a negative - expenses. There total operating half of have impact on 2020 figures. Those have impact on 2020 figures. fore, a significant increase is expected on a significant increase fore, rates. freight freight rates. Some sources published Some sources rates. freight vessel sizes will need to use fuel oil that vessel sizes will limit the sulfur content in fuel oil. Allwill limit the sulfur content terminals. The home region also had a also had a terminals. The home region that the industry will bear an additional the industry will bear that marine port in Yılport Holding’s portfolio, Holding’s portfolio, marine port in Yılport ments in line with its aggressive organic organic ments in line with its aggressive reduce the output of SOx. This regulation SOx. This regulation the output of reduce meets 0.5% limit from 1 January 2020. 1 January 2020. limit from meets 0.5% 2019 HIGHLIGHTS Container Terminal. This is the 22 Container Terminal. successful year in which many projects year in which many projects successful fluctuating regional economy of Turkey, Turkey, of regional economy fluctuating agreement to operate the Taranto the Taranto to operate agreement alliance services to Gebze and Gemport and Gemport to Gebze services alliance and its first terminal in Italy. Despite the Despite the and its first terminal in Italy. and inorganic growing strategy in 2019. in 2019. strategy growing and inorganic (AdSP) signed a 49-year concession (AdSP) signed a 49-year concession cost of over USD 15 billion on fuel. Fuel of cost than more representing already are costs YILPORT LISCONT, PORTUGAL YILPORT LISCONT, Yılport Turkey terminals welcomed new new terminals welcomed Turkey Yılport Yılport and Ionian Sea Port Authority Authority and Ionian Sea Port Yılport Yılport Holding continued its invest- Holding continued Yılport The alternative is to install scrubbers to is to install The alternative The IMO MARPOL regulations may also The IMO MARPOL regulations
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP - distribution cen and leading companies lopments such as the US-China trade war, US-China trade war, lopments such as the in today’s world where many of the many of in today’s world where in 2019 and for the first time, fleet capa- the first in 2019 and for in the last decade, thanks to the simul- decade, thanks to the in the last by Chinese ports alone. However, we all by Chinese ports alone. However, especially trade is unstoppable know that handling volume was expected in 2019 haviors of country rules and conservative rules country haviors of for over 17% of all trade and its share is and its share all trade over 17% of for volume reached 785 million TEU in 2018. 785 million TEU in 2018. volume reached when we consider more than half of the half of than more when we consider to the overall fleet this year. In contrast, In to the overall fleet this year. there is a strong relationship between relationship is a strong there ters work by just-in-time supply structure. ters work by just-in-time supply structure. schedules that times adopt and provide the world. Containerized trade accounts the world. Containerized taneous effect of globalization and the and of globalization taneous effect new containerships added 826,000 TEU added 826,000 new containerships nership capacity growth is expected 3.7% is expected 3.7% nership capacity growth report. Forecasting the numbers is not Forecasting report. policies will have an effect on the growth on the growth policies will have an effect numbers globally. protectionism and other political deve- and other political protectionism Political developments play the most developments Political - was recor growth 4.3% In 2018 a strong US-Iran sanctions, Brexit, introvertish be- introvertish US-Iran sanctions, Brexit, easy under many uncertainties eveneasy under many uncertainties global container volumes are handled are volumes global container ded compared to 2017. Port handling Port to 2017. ded compared growing year by year. However, rising However, year by year. growing global trade volume and over 70% ofglobal trade volume by transported global trade value are World Trade Organization; over 80% of Organization; Trade World We observed strong global trade growth trade growth global observed strong We scrapping has remained low with only scrapping has remained GDP and container handling numbers. handling GDP and container sea. That is handled by ports all around is handled by ports all around sea. That - contai cellular World accurate. more are according to Drewry’s container forecast forecast container to Drewry’s according critical role mostly on east to west trade critical role Deliveries of city passed 23 million TEU. containerization trend. According to the According trend. containerization MARKET IN 2019 MARKET PORT MANAGEMENT PORT 2019 according to Alphaliner. 2019 according A 2.6% growth and 805 million TEU port growth A 2.6% 165,000 TEU removed from the fleet in from TEU removed 165,000 [PORT MANAGEMENT] [PORT This also pushes liners to shorten transit 62 PORT MANAGEMENT 65 its capacity both in vessel and logistics increased to 12,000 tons with the expan- to 12,000 increased data. the Türklim regarding in the region, how in bulk and break-bulk services. how in bulk and break-bulk been started. will be increased to 15,000 tons and the to 15,000 will be increased port general cargo was the only growing the largest direct discharge operation of operation discharge direct the largest with the discharged were cargo tons of two companies. 000094 warehouse. A41 the Rotaport’s Also, railway to customers in Asia Minor. Rotaport in its history. In 2019, 500,000 500,000 In 2019, in its history. Rotaport existing steel roll storage capacity will beexisting steel roll general cargo customers with its know- general cargo started to use Rotaport. The 66,000 tons The 66,000 started to use Rotaport. to Marmara Shipyard a section at sion of with 2018 volumes, RotaportCompared ations and provide cheaper cost delivery cheaper cost and provide ations operations. It aims to be the first choice for the first choice It aims to be operations. corn discharge operation of TMO was TMO of operation discharge corn have to the terminal project connection YILPORT SOLVENTAŞ, TURKEY YILPORT SOLVENTAŞ, Yılport Gebze will support container oper- will support container Gebze Yılport The companies such as TMO-Torunlar TMO-Torunlar such as The companies The existing aluminum storage capacity 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in 2019. In this way, the terminal increased the terminal In this way, in 2019. in 2019. Railway project continues to continues Railway project in 2019. had been implemented in Yılport Solven- had been implemented in Yılport from Ministry of Agriculture. Yılport Solven- Yılport Agriculture. Ministry of from widen the logistics opportunities for thewiden the logistics opportunities for ty. Our new quality system received ISO Our new quality system received ty. taş and related license had been received license taş and related its consistenttaş is expected to continue terminal reached its all-time high opera- terminal reached its establish- tional handling volume since ment System certificates. Concerning new Concerning certificates. ment System in 2020 as well. progress port. Marmara Shipyard became a part ofport. Marmara Shipyard ment and the highest level of warehousingment and the highest level of efficient and successful operations. The operations. efficient and successful Management System, and ISO 45001Management System, Occupational Health and Safety Manage- Health and Safety Occupational approved by multinational companies in companies by multinational approved Facility” Denaturation “Alcohol applications, order to improve our high service quali- our high service to improve order once again as a “Green Port”. We are We Port”. again as a “Green once System, ISO 22301 Business ContinuitySystem, YILPORT GEMPORT, TURKEY GEMPORT, YILPORT TURKEY YILPORT ROTAPORT, 27001 Information Security Management Security 27001 Information YILPORT ROTAPORT Yılport Rotaport, and the operations started and the operations Rotaport, Yılport Yılport Rotaport ended the year with Rotaport Yılport SLOW IN 2019,SLOW THROUGHPUT. ECONOMY WAS WAS ECONOMY YILPORT TURKEYYILPORT ALTHOUGH TURKISH ALTHOUGH RECORDED IMPROVED RECORDED ing to shrink dramatically in 2019, Gemport in 2019, ing to shrink dramatically ing to store all kinds of bulk liquid chemical, all kinds of ing to store to be auditedTurkey is the first terminal in kept its market share and financial figures share its market kept keeps growing on general cargo business on general cargo growing keeps by CDI-T regularly. We were acclaimed were We by CDI-T regularly. volume reaches up to 1.5 million tons per million up to 1.5 volume reaches with the high/heavy cargo and the newwith the high/heavy cargo will be expanded by approximately 45,000 45,000 will be expanded by approximately targets of Yılport Gemport in 2020. Yılport of targets the end of 2019, Gemport’s bonded yard 2019, the end of cement,too with the new customers from - by continu high-level service to its current year. Although automotive sector was go- Although automotive year. m2 and the terminal capacity will increase. in and Tunisian) (Libya port with 2 services Gemport Yılport volume. port’s container mine and grain sectors. General cargo mineral oil, vegetable oil, food products,mineral oil, vegetable oil, food storage. and bunker products petroleum Renault Clio 5. Renault In 2019 Yılport Solventaş added new values In 2019 Yılport October 2019. This new service will make This new service October 2019. started to make all kinds of CFS operations CFS of all kinds started to make depot flexible. Moreover, and more safer started to be given to Maersk atservices By in May 2019. area Gemport’s new CFS Gem- Containership line started to call at and new improvements will be the primaryand new improvements area, which is about 80,000 m2, Gemport which is about 80,000 area, a capacity of 333,000 m3. Yılport Solventaş Yılport m3. 333,000 a capacity of YILPORT SOLVENTAŞ 15,000 TEU/year positive effect on Gem- TEU/year positive effect 15,000 The best possible customer experience The company offers 217 units of tanks with 217 units offers The company YILPORT GEBZE, TURKEY YILPORT in 2019 was the shared main road project. main road in 2019 was the shared the planning to complete are We in 2019. been obtained from Ministry of Forest and Forest Ministry of been obtained from - 3200 TEU con will store We warehouse. installed in the terminal in the end ofwere to increase customer satisfaction. With customer satisfaction. to increase unbonded new CFS of the enlargement to increase awareness in safe driving. in safe awareness to increase New 4 RTGs T2 stacking yard. tainers at yard, and construction of new CFS area/ new CFS of and construction yard, - be com is planned to This project yard. ments in 2019 with technological invest- in order projects ments and infrastructure pleted in the second quarter of 2020. of quarter pleted in the second 2020. the end of new highway at named “Safety Belts Save Lives” launchednamed “Safety Environment. The project phase continued The project Environment. employees and contractors. A campaignemployees and contractors. decrease the congestion in terminal road, in the congestion decrease One of the most important investments the most important One of Gebze. The highway permissions haveGebze. and support volume increase in Yılport in Yılport and support volume increase Safety Handbooks were distributed to Handbooks were Safety 2019. They are going to be used in the T2 They are 2019. Another project for Gebze is T2 stacking Gebze for Another project YILPORT GEMPORT Yılport Gemport continued its develop- Gemport continued Yılport The common main road project will help will project main road The common were conducted. Additionally, invest- Additionally, conducted. were weather conditions. weather was achieved. Also, a progress has beenwas achieved. Also, a progress we added an extra 1850 TEU stacking which will give an opportu- warehouse was 62,000 m2 concrete surfacing of E-5 surfacing of concrete m2 was 62,000 tations for maintenance and inspections maintenance for tations to 51 seconds after having changed the IT after to 51 seconds topology. a we constructed terminal. Also, in E-5, ment on liquid tank farm heating systemment on liquid tank farm heating new customers into our liquid portfolio. nity to continue the CFS operations in all operations the CFS nity to continue new stacking yards. By completing T1 and Phase 2 projects, T1 and By completing In the liquid tank farm, third party control In the liquid tank farm, third In 2019, another critical project for Gebze for another critical project In 2019, safety, we continue to invest in electrical we continue safety, services and quality certificate documen- and quality certificate services and instrumental projects. We have added We and instrumental projects. on gate was decreased from 62 seconds from was decreased on gate continued. In order to escalate process to escalate In order continued. carried out at the gates. The time spent the gates. carried out at the yard is to increase The target capacity. 3200 TEU withcapacity to approximately At the beginning of the year, Health and the year, At the beginning of 15% improvement on traffic congestion on traffic 15% improvement
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP improve the service quality. the service improve improvements have been carried out inimprovements improves its market share and strong share its market improves in the economy and the markets, due to markets, and the in the economy based approach in the sector. based approach weak markets, as well as capacity increaseweak markets, tion of the increasing business volume, the increasing tion of trative costs under the new management costs trative The regionteam established in the region. the decrease of trade activity, which trade activity, of the decrease trade. Consequently, there is a stagnation there trade. Consequently, needs and raise current efficiency. Several efficiency. needs and raise current projects in order to meet the capacity in order projects position as the market leader, thanks to its leader, position as the market mance to ongoing analyses and devel- to ongoing analyses mance provements on operational and adminis- on operational provements E-5/main terminal to ensure the adapta- E-5/main terminal to ensure sion, substantially originating from import from sion, substantially originating of competitors and emergence of new of and emergence competitors of opments despite economic turmoil andopments despite economic - perfor productivity owes this increasing changing customs procedures and to changing customs procedures customer oriented, cost reducing, value reducing, customer oriented, cost competitors in the market. Turkish Region Turkish in the market. competitors caused minimum company stock levels.caused minimum company YILPORT TURKEY YILPORT 2019 with infrastructure and technology2019 with infrastructure YILPORT GEBZE Yılport Gebze continued developing in continued Gebze Yılport [PORT MANAGEMENT] [PORT The productivity is achieved through im- is achieved through The productivity - has been in reces economy The Turkish 64 PORT MANAGEMENT 67 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP YILPORT OSLO, NORWAY YILPORT OSLO, both overseas imports and exports, as imports and exports, both overseas further links to the continent. With thisfurther links to the continent. and stability in the work force, formance, well as cost effective competition for thefor competition effective well as cost the Port Authority for the development of Authority for the Port blocks, 3 new RTG the the next phase of have supported levels the high service to Poland for the first time ever. This has the first time ever. for to Poland is just While this service the continent. the eastgame for this will change the new services that have started, creating have started, creating that new services to focus will continue We growth. record port Stutskär, and provide capacity when provide and port Stutskär, owner. cargo needed by this core RTGs, and the replacement of one of the one of of and the replacement RTGs, enabled new transshipment points for transshipment points enabled new growth, there has been approval from from has been approval there growth, gain insights into the supply chain needs Outbound mill logistics activity kicked short sea segment. There have been 3 There short sea segment. starting there are many positive signs that many positive are starting there a significant increase in the European European in the a significant increase able to proactively offer services via Yıl- via services offer able to proactively a part in this. older STS cranes. Strong operational per- operational older STS cranes. Strong Oslo. Yılport at on growth off in early 2019. It has enabled Yılport to It has enabled in early 2019. off has been Nordic Stora Enso. Yılport of current truck flow coming to and from coming to and from truck flow current to play is excited Yılport Sweden. of coast YILPORT SKUTSKÄR, SWEDEN YILPORT SKUTSKÄR YILPORT OSLO Yılport Oslo has continued to experience continued Oslo has Yılport There is a direct connection from Gävle from connection is a direct There for Sweden. The company handled over The company Sweden. for forward to continuing success. to continuing forward STOCKHOLM NORD, SWEDEN NORD, STOCKHOLM world’s largest wind turbines. We look We wind turbines. world’s largest the potential to drive over 100,000 new the potential to drive over 100,000 even further in its efforts to bring Yılport sustainable to drive environmentally paper automated warehouse will forever will forever warehouse paper automated The expertise and skill set producers. Further projects have begun in 2019 to projects Further ensure the endeavors have the lowest ensure designed impact. They are environmental ensuring safe and secure handling of the handling of and secure ensuring safe scale increase in key windmill projects windmill projects in key scale increase Gävle Container Terminal has also Gävle Container Terminal activities. of Yılport Gävle team is world class in Gävle team Yılport of development in 2019. observed service change the profile of the port. It has change the profile A new service started in August 2019. started in August 2019. A new service Yılport Gävle was also a part of large- Gävle was also a part of Yılport 150 wind turbines for the world’s top 3 the 150 wind turbines for TEU via the new terminal infrastructure. TEU via the new terminal infrastructure. increased substantially and has led to increased offer further To capacity. inserting more holm closes. using Gävle as the import hub to serve using Gävle as the import hub to serve was built for works has been proven. We We works has been proven. was built for warehouse continued in 2019. These in 2019. continued warehouse the growing northern Stockholm urban the growing - and environmen effective, timing, cost the Yılport of The use tally attractive. has train shuttle to Stockholm Nord the full supply chain and effectively terminal that proves the core concept of of concept the core proves terminal that the new quay wall and the new auto- projects are part of a port transformation part of are projects mated CFS high bay automated paper high bay automated CFS mated expect 2020 to bring even more growth growth expect 2020 to bring even more effort. Both projects are expected to be expected to are Both projects effort. CFS The new efficient options in services. deliver to the door of the end customer the deliver to the door of Overall 2019 has been the year where Overall 2019 has been the year where Ongoing construction work at both work at Ongoing construction as the current container port of Stock- of port container as the current area. The service setup is efficient in setup is efficient The service area. offer the regional cargo owners more owners more regional cargo the offer concept and strategy that the terminal that and strategy concept completed in 2020. New capacity will in 2020. completed YILPORT GÄVLE Yılport has invested in its own trucks. Yılport 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP long-term Swedish investor, into the investor, long-term Swedish highlight for the Nordic region in 2019 region the Nordic highlight for for Yılport Stockholm Nord. Two large large Two Stockholm Nord. Yılport for for Yılport Holding. The Nordic Region Holding. The Nordic Yılport for will continue to lead Yılport as a role as a role to lead Yılport will continue was the introduction of InfraNode, a InfraNode, of was the introduction ture planning. This also delivers fresh planning. This also delivers fresh ture the sustainability of the business and the the sustainability of is Yılport that proves strategy the growth taking a minority share, this acknowl- taking a minority share, the environmental shift from road to sea road shift from the environmental A targeting. are countries Nordic that model for development and acting as a development model for maturing in its governance structure and structure in its governance maturing In 2019 Yılport Nordic has continued the has continued Nordic In 2019 Yılport edgment from the financial markets on the financial markets edgment from game changer. growing short sea trend which enables short sea trend growing - infrastruc in its long-term sophistication solutions, services, and supporting the and solutions, services, field infrastructure to support the cargo field infrastructure accounts were added to the multimodal were accounts aggressive growth path by delivering new by delivering path growth aggressive owners. This type of transaction is a firstowners. This type of - in green further investments capital for Swedish terminal portfolio. While only terminal portfolio. Swedish 2019 has been a very successful year 2019 has been a very successful YILPORT STOCKHOLM NORD YILPORT NORDIC YILPORT [PORT MANAGEMENT] [PORT PORT OF GÄVLE, SWEDEN PORT OF GÄVLE, 66 PORT MANAGEMENT 69 MHC th in Guatemala, which has been awarded which has in Guatemala, investment by Puerto Quetzal Port Authority (EPQ) toby Puerto Quetzal Port the terminal as of 18 October 2018. 18 October the terminal as of expect double-digit We tainers in 2019. 330the EPQ to develop a new quay of the Pacific that handle various cargo. While various cargo. handle the Pacific that handled in the port is the main commodity meters and -14.5 meters draft which may meters draft meters and -14.5 provides service with its 4 state-of-the-art service provides mobile harbor cranes. growth in container handling numbers in handling in container growth dry bulk (wheat, soy, corn, etc.) fresh fruits etc.) fresh corn, soy, dry bulk (wheat, - con TEU of 180,000 handled over OLG Canal, close to the large Mexican ports inCanal, close to the large attend biggest vessels calling the country. biggest vessels calling the country. attend the port, we volumes at and the growing a 5 also entertain the possibility of activities in Puerto Quetzal to the yard and sugar exports in containers also holdand sugar exports in containers OLG variety. product in an important place operate the multi-purpose operations in operations the multi-purpose operate Also working together tooperations. operations in Puerto Quetzal in October in Puerto Quetzal operations 2018. Yılport acquired 55% shares of OLG OLG of 55% shares acquired Yılport 2018. 2020. As a result of our 4 MHCs in operation of As a result Yılport is working on extending its Yılport Yılport Holding started multi-purpose Yılport 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP is located in a central point to the Panama in a central is located ing works will enable the port to reach -14 ing works will enable the port to reach berth expansion project by finally reaching by finally berth expansion project PUERTO QUETZAL - OLG position in the Central American Region. Itposition in the Central American Region. meters draft. Yılport Paita will be able to Yılport meters draft. Puerto Quetzal is the largest port ofPuerto Quetzal is the largest efficient, smooth, and safe operations. operations. safe efficient, smooth, and In Guatemala. It has a privileged geographical It has a privileged Guatemala. system enables the terminal to provide serve larger vessels after investments in vessels after serve larger additional gates and reefer yards. and reefer additional gates PAITA, PERU PAITA, 2020, TPE Paita will finalize its +60 meters TPE Paita will finalize 2020, - berth length. Dredg 360 meters container PUERTO QUETZAL, GUATEMALA PUERTO is located in the Puira region. It has a largeregion. in the Puira is located import break bulk or consolidated cargo, bulk or consolidated import break approved with the Customs in accordance hinterland including Cajamarca, Lam- hinterland including Cajamarca, Martín and San bayeque, Piura, Tumbes has improved substantially. Because of its Because of substantially. has improved we will need to improve our facilities for our we will need to improve types of products; including avocados, including products; types of talks with the shipping lines for them to them shipping lines for talks with the mangoes, bananas, grapes, blueberries, regions. Our terminal handles variousregions. random products and vehicles. We had and vehicles. We random products hinterland, and resourceful modernization the west and port in Ecuador promising Puerto Bolívar is believed as the mostPuerto Bolívar is believed Imports into Puerto Bolívar remained slow. Puerto Bolívar remained Imports into external climateIn general, internal and growing fruit and fish exports. The terminalgrowing Only paper coils now containerize a few now containerize coils Only paper standards. fish, fish oil, fertilizers, fruits, grains, shrimps, fertilizers, fish, fish oil, and vegetable oil. accept import cargo. For this to happen, cargo. import accept containers in 2019 with an 8% growth in 2019 with containers Upgraded Navis TOS to 2018. compared South American coast. YILPORT PAITA - TPE YILPORT PAITA Yılport Paita handled 292,000 TEU Paita handled 292,000 Yılport Yılport Paita is supporting northern Peru’s Yılport ing countries. This enabled a smooth and This enabled ing countries. cocoa and is observed with several coffee ing status. border. - business. They com basin in other lines of - Logis Cosco bag loads and containers. for Puerto Bolívar over Guayaquil port Puerto Bolívar over for us in front of other choices they have, not other choices of us in front to Puerto Bolívar fast tracked through the through to Puerto Bolívar fast tracked is placingto us. Chinese EcuaCorriente their preference expressed tics already the turningterminals. This will constitute products among others. We established among others. We products pitahaya fruit exporters in the Amazonian to be production mitted 2000 hectares export- changing into who are producers, Some smaller miners point on our favor. Bolívar as their ordinary port. Bolívar as their ordinary exported via Puerto Bolívar. Same change exported via Puerto Bolívar. We observed an increasing interest from interest an increasing observed We Customs and the police of both neighbor- of Customs and the police plants packing Peruvian transit from secure a logistics corridor in collaboration with in collaboration a logistics corridor to use Guayaquil ports because forced are only for their bulk cargo, but also for big but also for their bulk cargo, only for Puerto also looking at carriers. They are of The mining products are closer than ever are The mining products ly. A team effort from our side, the 14.5 14.5 our side, the from A team effort ly. ing back soon in their new season. There ising back soon in their new season. There ing shipping lines services, especially toing shipping lines services, until July 2019. was completed and we are ready now for ready are and we was completed the port attracted more business, de- business, more the port attracted province, El Oro of the banana production - come. With increas the first shipments to promote our port, we attracted Peruvian our port, we attracted promote meters draft, and the improved service of service and the improved meters draft, 25% in 2017 to almost 40%raised from locally and shipped via Puertopacked productivity and bring Yılport’s world-class and bring Yılport’s productivity shrimps’ inspections facility for nous reefer Bolívar. - com will see their products exporters. We delivered, together with Navis Terminal together with Navis Terminal delivered, Operating System. These will increase our These will increase System. Operating shrimps, mangoes, grapes, and mineral spite a low banana season due to colder China (main customer), we will see shrimps service level to our customers. An indige- level to our customers. service an interesting market with organic bananas, with organic market an interesting and port infrastructure running efficient- running and port infrastructure climate. Puerto Bolívar’s export share in export share Puerto Bolívar’s climate. Turning our eyes south of the border to the border our eyes south of Turning The 2 new Gottwald mobile cranes 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in the Yılport portfolio; Puerto Bolívar, Puerto Bolívar, portfolio; in the Yılport toing down. Puerto Quetzal is excited in Yılport in 2019. They expect news from in 2019. in Yılport improved substantially, diminishing all the substantially, improved upcoming installation of 144 new hi-tech 144 of installation upcoming tegic partner for the development of the of the development tegic partner for realized in the terminals without slow- realized now allows us to keep our existing cranesnow allows us to keep renewal of our security guards, imple- our security guards, of renewal and the security procedures of mentation Puerto Quetzal, Paita (TPE). Equipment Latin American Region sustained its American Region Latin Local authorities see Yılport as their stra- authorities see Yılport Local growing trend with its three terminals with its three trend growing CCTV cameras. A complete structural cameras. A complete CCTV and infrastructure investments are being are investments and infrastructure ofadded 2 new cranes, all courtesy operate with 4 cranes, and Puerto Bolívar with 4 cranes, and operate overhaul in our maintenance departmentoverhaul in our maintenance city, the region and the southern part of the and the southern part of the region city, country. conflicts. Exporters had more confidence Exporters had more conflicts. PUERTO BOLÍVAR, ECUADOR BOLÍVAR, PUERTO Security has been improved with the totalSecurity has been improved YILPORT PUERTO BOLÍVAR Yılport Holding. Yılport Yılport regarding new or improved services. new or improved regarding Yılport YILPORT LATIN AMERICA LATIN YILPORT The relationship with our stakeholdersThe relationship [PORT MANAGEMENT] [PORT 68 PORT MANAGEMENT 71 MALTA FREEPORT, MALTA FREEPORT, MALTA infrastructure for artificial intelligence and artificial intelligence for infrastructure the locality and has been of interests including a double-glazing scheme for been awarded ISO 45001, the highest ISO 45001, been awarded be the base and will support all future heavily in its reefer facilities in order to facilities in order heavily in its reefer rise in reefer the for be able to cater the forefront, Malta Freeport has officially Malta Freeport the forefront, agenda. to rank high on Malta Freeport’s as well an embellishmentthe residents their launch in 2018. The projects will The projects their launch in 2018. terminals enabling it to handle more terminals enabling it to handle more project for the Birżebbuġa community. community. the Birżebbuġa for project perishable cargo. This investment isperishable cargo. new trading opportunities to providing development. MFT kicked off the internet of things the internet off MFT kicked MFT has been actively involved in the Malta Freeport has also been investing has also been Malta Freeport in this clients operating Malta Freeport’s standard to operate an integrated health, an integrated to operate standard management and environmental safety with and is conforms system that continued social responsibility Corporate sector of business. sector of shipping. Today MFT has a reefer MFT has a reefer shipping. Today also contributed to local growth and to local growth also contributed optimization projects. Keeping safety at safety Keeping projects. optimization initiatives Malta on a number of of (IoT) and big data projects, following projects, and big data (IoT) certified to international standards. to international certified with the Governmentcollaborating capacity of over 1600 points on both over 1600 capacity of A number of other local initiativesA number of 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
handled a record-breaking 3.3 million 3.3 handled a record-breaking environment. benefitting the surrounding by further investment in other yard with lower emissions. With an increasing throughput of 2.7 million TEU. 2.7 of throughput an anti-collision featuring to operate, quieter than the considerably are that trailers and another 2 new reach stackers. trailers and another 2 new reach MALTA FREEPORT MALTA yard cranes are being complemented cranes are yard milestone this year as it showcased the These with this technology. retrofitted Freeport experienced changes in itsexperienced Freeport Cranes. Kone KCI from delivered are RTGs fitted with white noise sounders are RTGs environmental consciousness, these new consciousness, environmental elevated levels of capacity after having capacity after levels of elevated equipment including 31 tractors, 36 delivery of 15 new rubber-tyred gantry 15 new rubber-tyred delivery of Malta Freeport marked an important marked Malta Freeport Malta Freeport Terminals (MFT). The Terminals Malta Freeport 50 RTGs already in operation. The new in operation. already 50 RTGs services portfolio. Within this context, the Within this context, portfolio. services efficient energy more system and are alarms currently in use on older cranes,alarms currently company closed the year registering ayear registering closed the company the existing complimenting cranes (RTGs) also safer they are cranes, conventional company started 2019 operating at operating started 2019 company 2019 has been a challenging year for As well as being considerably faster thanAs well as being considerably YILPORT MEDITERRANEAN TEU in 2018. Later this year, Malta this year, Later TEU in 2018. have been The port’s existing RTGs FERROL, SPAIN HUELVA, SPAIN HUELVA, in 2019. With this takeover, Yılport Holding Yılport With this takeover, in 2019. berth length with -14 meters draft. The meters draft. berth length with -14 the Tertir portfolio in 2015. In line with in 2015. portfolio the Tertir being the exclusive of target the strategic terminal offers 90,000 TEU annual 90,000 terminal offers more efficiently in 2019. more Ferrol implemented the Navis N4 terminalFerrol Peninsula. The terminal has 500 metersPeninsula. Container Terminal in the port of Cadiz, of in the port Container Terminal in the Iberian its footprint strengthened acquisition of Huelva Container Terminal Huelva Container Terminal acquisition of operating system (TOS) to optimize system (TOS) operating faster and cargo and move operations owner and operator of its terminals, of owner and operator connections to several countries. Yılport Yılport countries. to several connections container handling capacity. container Spain in 2015 during the acquisition of Atlantic coast of southern Europe. It has southern Europe. of Atlantic coast YILPORT HUELVA Yılport first acquired 60% shares of Huelva 60% shares first acquired Yılport 100% Holding completed Yılport links with Huelva and Rotterdam, inlinks with Huelva and Rotterdam, is the largest and deepest port in the and deepest is the largest began receiving regular weekly calls of regular began receiving with Seville and Tilbury (UK), and inbound the Netherlands. These shorten the by the area of to boost the economy to our valuable customers. In this sense, this investment, the terminal boosted terminal. new terminal tractors in July 2019. With new terminal tractors in July 2019. by minimizing turnover timeproductivity distance between the Galician marketdistance during container transport inside the transport during container MacAndrews POSS service in 2019. Ferrol in 2019. POSS service MacAndrews already has direct outbound connections has direct already and global trade. Yılport Ferrol is willing Ferrol and global trade. Yılport offering Galicia as container hub. Ferrol Galicia as offering current equipment inventory by addingcurrent SETUBAL, PORTUGAL YILPORT FERROL Yılport’s Ferrol Container Terminal Container Terminal Ferrol Yılport’s Yılport Setúbal invested in terminal’s Yılport breakbulk cargo operations. It has a draft operations. cargo breakbulk vessels with a capacity of about 1500 TEUvessels with a capacity of was awarded by Transporter & Negócios by Transporter was awarded to Italy, Greece, Turkey, Lebanon, Egypt Lebanon, Turkey, Greece, to Italy, market. The Great Pendulum Service Pendulum The Great market. Leixões started to host Arkas-Tarros Great started to host Arkas-Tarros Leixões reinforced The service Service. Pendulum In November 2018, Yılport Leixões was Leixões Yılport In November 2018, each. Operator in Portugal. The distinction in Portugal. Operator Cargo Awards. In June 2019, Yılport Yılport In June 2019, Awards. Cargo at the canal. We offer Yılport privilege offer the canal. We at and Morocco. The service consists of five of consists The service and Morocco. awarded as the Best Container Terminal Terminal as the Best Container awarded of -15 meters at berth and -12 meters -15 meters at of our connection with the Mediterranean with the our connection by Arkas Line and jointly (GPS), operated conducts container, ro-ro, bulk, and ro-ro, container, conducts LISCONT, PORTUGAL LISCONT, LEIXÕES, PORTUGAL LEIXÕES, YILPORT SETÚBAL Yılport Setúbal multipurpose terminal Yılport Tarros Line offers regular connectionsregular Line offers Tarros 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in human resources and technology in human resources is committed to short sea shipping. Itis committed in September 2018 for Yılport Liscont. Yılport in September 2018 for infrastructure and modernizing infrastructure in 2019 to provide planning and customer provide in 2019 to has been Yılport Leixões’ top priority to Leixões’ has been Yılport was completed in 2019. Yılport Liscont Yılport in 2019. was completed well as technology investment with new the market’s needs in cargo handling. needs in cargo the market’s to main European port hubs. Investingto main European trade. It handles more than 18 milliontrade. It handles more Yılport annually. commodities tons of the north of Portugal and one of the and one of Portugal the north of terminal integration. Full integration Full terminal integration. of the effectiveness to maximize targets the technology investments by aligning terminal operating system (TOS) and (TOS) system terminal operating Navis N4 meters. The to -14.5 the draft terminal. The plans include overhaulingterminal. The plans include ports in Portugal, representing 25% representing ports in Portugal, most prominent marine terminals in themost prominent productivity. Leixões is mainly a gateway terminal. It is mainly a gateway Leixões Billing process was centralized for Setúbal for was centralized Billing process equipment. We will install ship-to-shore equipment. We gantry cranes, other machineries, as quarter of 2018. We supported the center supported We 2018. quarter of OCR systems. Dredging will deepenOCR systems. Dredging services to all of our Iberian terminals. of to all services assure efficient operations and to meet efficient operations assure also offers competitive connectionscompetitive also offers at Liscont terminal in the port of Lisbon. port of terminal in the Liscont at and Ferrol terminals in 2019 for the for terminals in 2019 and Ferrol of the Portuguese seaborne foreign seaborne foreign the Portuguese of operational optimization and improving optimization operational opened in Lisbon, Portugal in the second in the Lisbon, Portugal opened in country. The port is also one of the most is also one of The port country. multipurpose and versatile competitive commercial side. commercial YILPORT IBERIA YILPORT YILPORT LEIXÕES YILPORT LISCONT Yılport Leixões is the largest seaport in largest is the Leixões Yılport Yılport invested around EUR 200 million around invested Yılport the Liscont to rebuild has plans Yılport [PORT MANAGEMENT] [PORT TOS standardization is a part of Yılport Yılport is a part of standardization TOS TOS implementation process started process implementation TOS The Global Logistics Center Iberia was Center Iberia Logistics The Global 70 PORT MANAGEMENT 73 join the Tradelens platform and workand platform Tradelens join the locations within the portfolio. Upgradeslocations implementing new systems in many in many new systems implementing by the beginning of 2020. by the beginning of business in the form of truck appointments truck of form the in business be deployed. to -16.5 meters. The terminal has 10 terminal has 10 meters. The to -16.5 terminal and current superstructure. superstructure. current and terminal TECHNOLOGY INFORMATION view to Yılport. primarily focus on modernizing the modernizing the primarily focus on project will include integration with with integration include will project customer 360-degree a real provide from the Port Authority is also in talks. the Port Authority is also in talks. from new customer relationship management management relationship customer new about blockchain. We evaluated its suitability evaluated We about blockchain. terminal and use cases within Yılport’s in our a focus on the implementation an extremely busy and productive year, year, busy and productive an extremely to our automation and improvements and billing enhancements. newest technological solutions will solutions will newest technological was involved in a number of workshops of number a in involved was million TEU with a quayside draft of up up of draft quayside a with TEU million plans to Yılport (RMG). gantries mounted will commence on this in early 2020. standard ERP system, SAP continued with continued SAP system, ERP standard ship-to-shore cranes (STS) and 22 rail- ship-to-shore carried OCR were systems, crane and gate operators that specialize in this domain. in specialize that operators capacity of the terminal is about 2 2 terminal is about the of capacity the supported developments New out. other SAP modules and systems to SAP modules and systems to other expand annual handling capacity to over to over capacity expand annual handling ecosystem. Yılport also signed up to also signed up to ecosystem. Yılport globally in 2019. The Phase 2 of the the The Phase 2 of globally in 2019. (CRM) system. It was implemented (CRM) system. It was implemented During Phase 1 investment, Yılport will will Yılport During Phase 1 investment, Projects to expand the footprint of our our of to expand the footprint Projects Portuguese terminals and companies Equipment will be revamped and and will be revamped Equipment Current annual container handling handling annual container Current SAP Cloud-4-Customer was selected as aSAP Cloud-4-Customer A potential new terminal extension new terminal extension A potential 4 million TEU with 4 investment phases. phases. investment 4 million TEU with 4 Together with Yıldırım Technology, Yılport Yılport Technology, with Yıldırım Together The information technology team had The information 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
highlights of the year 2019. In addition, In addition, the year 2019. of highlights and systems security new of installation in Italy. Taranto is the first terminal to be is the first terminal Taranto in Italy. in heavy lift and break and growing is strong hectares of land. It also includes additional of hectares by and should be concluded is in progress operations. terminal of efficiency increased bulk. We will also collaborate with local with collaborate also will We bulk. trade, only 48 hours away from the Sueztrade, only 48 hours away from to the port. The number of MHCs totaledto the port. The number of and new crane operators hired We to 4. the equipment,team members to maintain Taranto in Port of Terminal to San Cataldo time operations successfully. The headquarters successfully. time operations of 2020. the first months PUERTO BOLÍVAR are 12 e-RTGs terminal. the at arrive to PUERTO QUETZAL provide administrative and support functions. and administrative provide at the heart of Mediterranean seaborne the heart of at and regional teams supported the project. supported the teams and regional In October 2019, 2020. of topics the hot are should be completed in the first days of should be completed in the first days completed the change from manual to real- manual the change from completed including an handling equipment, container for the transfer an agreement conclusion of the were to Yılport the Navy land from of and in progress systems are operational operated in Italy by Yılport. Taranto has a Taranto in Italy by Yılport. operated extension started in 2019. The project The project in 2019. extension started by an additional 2expanded the terminal expected to arrive at the terminal in Julyexpected to arrive at good opportunity with its strategic locationgood opportunity with its strategic region for logistics. Taranto potential great In 2019, 2 additional MHCs were delivered 2 additional MHCs were In 2019, 49-year rights secured Yılport In June 2019, Navis TOS was implemented. Its modules was implemented. Navis TOS expected 4 STS cranes are In January 2020, Center in Lisbon. The local operations teamThe local operations in Lisbon. Center Canal. With synergies to Malta, it offers offers it to Malta, synergies With Canal. a STS crane. The expansion of the 2 hectares2 the expansion of The crane. STS YILPORT TARANTO, An investment to grant 8+ years of concession of 8+ years to grant An investment the and cranes harbor mobile new of Arrival 2020. Equipment and system investments and Equipment 2020. 2020. Terminal San Cataldo S.P.A. San Cataldo Terminal logistics branch. The logistics platform logistics branch. The logistics platform hardware infrastructure planned by the by the planned infrastructure hardware standards. The in 2020 in line with Yılport beginning of year. beginning of being evaluated with supplier companies,being evaluated has made significantbuilding and yard areas the modernization works at the terminal. at works the modernization to create value to customers by offering value to customers to create trucking services, cargo storage, stuffing develop will also The project end-user. the to targeting early 2020 to place the purchase the place to 2020 early targeting upgrade the terminal’stechnology team will control,remote New to finish in August 2020. terminalthe terminal and support improved performance. plan for modernization, the Information Information the for modernization, plan civil full the of Completion 2019. in progress new TOS will bring world class technology to will bring world TOS new and will trigger the commencement of of the commencement and will trigger and discharging containers, intermodal intermodal containers, discharging and works for the expansion project is projected project the expansion for works will be a perfect combination of location, of will be a perfect combination system, supported by our Global Logistics semi-automated RTGs are currently being currently are RTGs semi-automated customers cost-savings on their operations. Leixões. cargo volume in the Port of order. terminal capacity to support the ordered operations for rail and trucks. operations expertise, and efficiency. It will offer It will our expertise, and efficiency. expansion and investment plans. expansion and investment end-to-end solutions. They will provide buffer, terminal M&R, containers, empty It is diversified in depot branch and the It is diversified in depot Panamax Ship-to-Shore cranes are currently cranes are Panamax Ship-to-Shore In 2019 Yılport implemented the Navis the Navis implemented In 2019 Yılport Six new e-RTGs and two new Super Postand two new Super Six new e-RTGs YILPORT HUELVA YILPORT LEIXÕES Also it will elevate the service levels offeredAlso it will elevate Aligned with the IT Strategy and the InvestmentAligned with the IT Strategy Yılport Leixões logistics operations will aim will operations logistics Leixões Yılport The project will be completed in two phases. will The project The construction for the new administrationThe construction for the terminalin installed be will TOS The Navis implementation in Q2 2020 to support theimplementation hinterland, Yılport Gemport continued to continued Gemport Yılport hinterland, invest for better services. terminal operations system is planned for system terminal operations the concession agreement with the Portthe concession agreement to upgrade the civil infrastructure and toto upgrade the civil infrastructure terminal. A contract was signed with Mitsui was signed with contract terminal. A Gemport. for RTGs 6 and STS 3 purchase to provide new container handling equipment handling container new provide new terminal operations are currently being currently are new terminal operations and will start operations in 2020. and will start operations systems. and operational additional CFS capacity adjacent to the to the adjacent capacity CFS additional warehouse is currently being constructed being is currently warehouse support further investment in the terminalsupport further investment ofbeginning the by concluded be should container operation. A new automated paper A new automated operation. container and in progress This is currently Portugal. of expected to be completed in Q2 of 2020. 2020. in Q2 of expected to be completed grant the concession agreement extensionagreement the concession grant EIA approval by the environmental authoritythe environmental by EIA approval In 2019, Yılport finalized the extension of the extension finalized Yılport In 2019, finalized and started in 2019. The Navis The Navis and started in 2019. finalized With its leading position at Southeast Marmara Southeast at its leading position With and on the new quay is progressing Work Civil work and equipment to support theCivil work and equipment Sea. This was an important milestone to milestone Sea. This was an important YILPORT LISCONT YILPORT GÄVLE Authority of Lisbon and the Ministry of Ministry of the and Lisbon of Authority 2020. The EIA approval is the last step to The EIA approval 2020. The extension and investment are subject to subject are investment and extension The 2020 GOALS AND EXPECTATIONS GOALS 2020 including new weighbridges, license plate under one roof. underway in our E-5 terminal including underway in our E-5 to alleviate congestion, improve truck improve congestion, alleviate to portals. The South Land construction project (Phase 1) was completed providing (Phase 1) was completed project a new road in and out of the terminal of in and out a new road the terminal. capacity at and gate at the end of January 2020. The building January the end of 2020. at warehouse was in construction with with was in construction warehouse will accommodate service departmentswill accommodate warehouse. Additional container yard container Additional warehouse. is also Work in 2020. arrive in Gebze readers, self-service kiosks and OCR and OCR self-service kiosks readers, resurfacing and electrical improvements. electrical and resurfacing road, which has already completed and already which has road, yard construction, bus bar installation,yard construction, construction and expected completion is of 2020. We will relocate the current CFS the current will relocate We 2020. of operations.for available be will capacity cleaning pool construction is progressing. is construction pool cleaning expected completion in the beginningexpected completion constructed and 4 new RTG’s will will 4 new RTG’s constructed and Finally, approval was granted to create was granted approval Finally, Phase 2 construction completed in October in completed construction 2 Phase TARANTO, ITALY TARANTO, YILPORT GEBZE YILPORT GEMPORT An additional 3 RTG blocks are being are blocks An additional 3 RTG 2019. This phase includes additional includes additional This phase 2019. The new HSE building is currently under currently is building HSE new The 2019in completed phase gate third The TEU capacity. A new CFS area and and A new CFS area TEU capacity. The terminal gained an additional 2775additional an gained terminal The we are alsowe are working on the de Castilla Chiriquí are very close toare opportunities Acajutlaof (Guatemala), (Panamá). We (Salvador), Santo Tomás Santo Tomás As Yılport, As Yılport, AFRICA. 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP for their acceptance. The LOI includes an The LOI their acceptance. for for opportunities in Africa and in Europe. opportunities for which can be the largest port of mineral port of which can be the largest together with CMA CGM Group, in Vila Group, together with CMA CGM negotiate with them for a public-private with them for negotiate ofpartnership, including the construction portfolios. main area of banana exports of Colombia. of banana exports of main area palm oil, wood, car parts, etc. There is apalm oil, wood, car parts, etc. There in Colombia, Yılport new opportunity for next to Baltimore, at the early stages. at next to Baltimore, portfolios in the Americas, also looking in the portfolios Pisisi, in the bay of Turbo, which is the Turbo, Pisisi, in the bay of Haven in Suriname, with the partnership Hueneme, California, and Maryland State,Hueneme, California, Perishables were still a better segment of a better segment still were Perishables In 2019, we were focused on developing focused were we In 2019, exports in the near future, also shippingexports in the near future, exhibit with terms sheet. We are exploring are We exhibit with terms sheet. do Conde. There are opportunities for are do Conde. There IN 2020 SUCH ASIN 2020 SUCH MSPA for Gulfport, and we are waiting Gulfport, and we are for MSPA We are working on an opportunity in Brazil, are We a new container terminal, and the mergera new container acquisition of port operators with small port operators acquisition of of the operations with the existing one. the operations of of Mauritius Island to present an offer and an offer Mauritius Island to present of of CMA CGM Group. There is a new There Group. CMA CGM of Ecuador, a PI in Esmeraldas, opportunity of other two opportunities in the US, in in the US, other two opportunities conclude an acquisition deal with Nieuwe an acquisition conclude cargo to focus on. to focus cargo Yılport has been invited by the Government Yılport Yılport agreed to a letter of intent with of to a letter agreed Yılport WE ARE KEEN TOWE ARE MERGERS AND ACQUISITIONS MERGERS [PORT MANAGEMENT] [PORT 72 INVEST IN UNTAPPED INVEST IN UNTAPPED NORTH AMERICA AND AMERICA NORTH REGIONS FOR YILPORT FOR REGIONS FERTILIZERS AND CHEMICALS 75 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Ali ODABAŞ MANAGER GENERAL GÜBRE GEMLİK lira, which had an impact on Turkish economy, and the termination of of and the termination economy, lira, which had an impact on Turkish it was CAN and AN fertilizers. Besides, 600,000 tons of other kinds tons of Besides, 600,000 it was CAN and AN fertilizers. brought extra costs. Despite all these, our total sales volume including Despite extra costs. brought fertilizer, ammonia and nitric acid approached to 1 million tons. Our to 1 million ammonia and nitric acid approached fertilizer, to apply the same system to our ammonia unit. We foresee that the that foresee to apply the same system to our ammonia unit. We time, related to this strategical investment, our company has been given investment, our company to this strategical time, related Industry and by the Ministry of investment incentive the project-based the high inflation and the fertilizer tracking system (GTS) applications tracking system (GTS) applications fertilizer and the the high inflation targets. The fertilizer demand in the domestic market was seriously demand in the domestic market The fertilizer targets. plans as well. Both using our present sources effectively and increasing and increasing effectively sources plans as well. Both using our present markets. The most prominent activity of 2019 was the developments activity of The most prominent markets. material prices, high inflation, and geopolitical factors are especially and geopolitical factors are high inflation, prices, material market, in the Turkish prices impact on the fertilizer had a direct market DCS (Distributed Control System) onto our fertilizer and nitric acid units. onto our fertilizer System) DCS (Distributed Control Dear Business Partners, Industry Zone”. We have successfully completed our studies to apply completed have successfully We Industry Zone”. Urea Production Plant was completed and Italian company Tecnimont Tecnimont and Italian company Plant was completed Production Urea economic uncertainties, the sharp decrease on the fertilizer and raw on the fertilizer the sharp decrease uncertainties, economic our a risk for creates 2020 and this situation in expected to continue difficulties which begun in the last quarter of 2018 and continued in of 2018 and difficulties which begun in the last quarter On the other hand, our preparations and set up studies are in progress in progress and set up studies are On the other hand, our preparations sales with credit. While the depreciation of the raw materials in global the raw materials of While the depreciation sales with credit. affected by the high inflation, interest rate hikes, depreciation of Turkish of depreciation rate hikes, interest by the high inflation, affected our efficiency in the domestic and foreign markets in accordance with accordance in markets foreign our efficiency in the domestic and of chemical fertilizers were imported to meet the needs of domestic of imported to meet the needs were chemical fertilizers of added value to which shall create Project, Urea on our new strategical our for bidding process Within this concept, economy. our country’s changing market conditions, we target a working year in which we shall we target conditions, changing market results. successful create company had 1 million tons production in 2019 and 560,000 tons of tons of in 2019 and 560,000 tons production had 1 million company SpA has been awarded to be the contractor company. At the same At the same company. be the contractor to SpA has been awarded Sincerely, 2019, shall continue in 2020. We are revising and updating our work and updating revising are We 2020. in shall continue 2019, Ali ODABAŞ Technology and has been awarded to be “Gemlik Gübre Inc. Private Inc. Private Gübre to be “Gemlik and has been awarded Technology The market in 2019 was similar to 2018. The fluctuations due to the The fluctuations similar to 2018. in 2019 was The market %
OF
OF FERTILIZERS
LARGEST
rd 15 3 LARGEST
REVENUE CONSOLIDATED GROUP YILDIRIM CAN FERTILIZER & AMMONIA IN TURKEY PRODUCER IN TURKEY THE THE TRADER & CHEMICALS (CAN, AN, AN, & CHEMICALS (CAN, NPK, UREA) AS, DAP, 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP FERTILIZERS & CHEMICALS FERTILIZERS [FERTILIZERS AND CHEMICALS] AND [FERTILIZERS 74 FERTILIZERS AND CHEMICALS 77 CONDITIONS. GEMLİK GÜBRE MILLION TONS OF TONS MILLION ADVERSE MARKET ADVERSE REALIZED NEARLY 1 NEARLY REALIZED PRODUCTION AGAINST PRODUCTION barcoding application introduced by the introduced application barcoding fertilizers and raw material prices in the prices and raw material fertilizers who has limited purchasing power and who has limited purchasing years. With the shrinking demand in the years. With the shrinking demand in the previous year, there was no loss in the there year, previous margin. profit producers abolished their deferred sales deferred abolished their producers resulted in extra costs for manufacturers. for in extra costs resulted Especially due to the volatility in Especially due to the volatility exchange rates throughout the year, the year, throughout rates exchange decrease in quantity compared to the in quantity compared decrease quantities compared to the previous to the previous quantities compared in and the decrease domestic market distributors, producers, global markets, Ministry of Agriculture and Forestry has has and Forestry Agriculture Ministry of When the sales figures for 2019 are for 2019 are When the sales figures analyzed, it is observed that; despite 20% it is observed that; analyzed, and returned to cash sales. This situation to cash sales. This situation and returned consumption fertilizer also decreased sector had in the fertilizer operating are distress. a year of caused great difficulties for the farmer difficulties caused great traders and farmers who cooperatives, 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP (TURKEY) ic fluctuations affected Turkey’s econo- Turkey’s affected ic fluctuations and the in supply-demand imbalances due to inflation increased in the costs in due to the increase costs increasing fragility of fertilizer prices in the im- in the prices fertilizer fragility of the value of Turkish lira, uncertainties in lira, uncertainties Turkish the value of finan- and risks in deferred the markets demand. the overall market - and the deprecia rates the exchange the DNA of lira, the cost Turkish tion of port-dependent fertilizer sector. port-dependent fertilizer gas, ammonia, such as natural materials - despite the decreas However, prices. my. Sudden increases in the exchange in the exchange Sudden increases my. to continued and uncertainties rates High in- in 2019. maintain its influence which markets, in the global rial prices foreign on the domestic and reflected fertilizer the This affected markets. causing an increase negatively, market In addition, there has been a constant has been a constant In addition, there es in fertilizer prices, the main input prices, es in fertilizer - and raw mate in all fertilizer decrease - the profit on prices, reflected directly sulfuric acid, phosphate rock directly directly rock sulfuric acid, phosphate flation and interest rates, depreciation in depreciation rates, and interest flation affected market prices in Turkey and Turkey in prices market affected be cannot increase cost that and since In addition to the decreased. ability rates cial expenses have significantly reduced reduced cial expenses have significantly in fertilizer caused a sharp decrease - econom 2018, half of the second Since FERTILIZER MARKET IN 2019 FERTILIZER MARKET A global price decrease in the raw in the decrease A global price GEMLİK GÜBRE GEMLİK GÜBRE
3 Gemlik, Bursa, Turkey İstanbul, Turkey Bursa, İzmir, Samsun, Tekirdağ, Samsun, Tekirdağ, Bursa, İzmir, 2014 1973 Mersin, Hatay Far East Far LARGEST supplier of fertilizers in Turkey End-to-end service provider Logistic services Warehousing capabilities Warehousing Trade network Trade fertilizer and Ammonia in Turkey #1 The LARGEST CAN producer of #3 #1 supplier of Styrene Monomer in Turkey Holding Structure: 2014 Headquarters: Area: 1 million m Facility Established: Headquarters: Established: Number of Distributors: 1000+ Production Capacities tons/year Nitric Acid (100%): 363,000 Europe, USA, Middle East, Supply Network: Europe, GEMLİK GÜBRE, TURKEY GEMLİK GÜBRE, 594,000 ton/year CAN (26%): 594,000 Warehouses: Warehouses: 468,000 ton/year AN (33%): 468,000 370,000 tons/year Ammonia (100%): 370,000 Joined YILDIRIM: 2004
YILKEM CHEMICALS, TURKEY 762,000 tons Storage Capacity: 762,000 Total • • • • 762,000 tons 640,000 164,000 156,200 21,000
961,000 796,200 850,000 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP [FERTILIZERS AND CHEMICALS] AND [FERTILIZERS 76 FERTILIZERS AND CHEMICALS 79 in our fertilizer production. In addition, production. in our fertilizer buying ammonia from the producers the producers from ammonia buying from the domestic market. We also We market. the domestic from the domestic market. prices resulting in low production costs costs low production in resulting prices dealer network with 65 new dealers in dealer network with and therefore we could reach better reach we could and therefore continued to expand and strengthen our our expand and strengthen to continued 60,000 tons of AS 21% was purchased was purchased AS 21% tons of 60,000 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP 2020 GOALS AND EXPECTATIONS 2020 GOALS important to both our company and our country; and to strengthen our our our company and our country; to strengthen and to both important rates in global markets in 2019 are expected to continue in 2020 as well. in 2020 as well. expected to continue in 2019 are in global markets rates position in the market by increasing our market share with our growing with our growing share our market by increasing position in the market conditions. sales in the market and production fertilizers abroad to meet the needs of our customers in Turkey. to meet the needs of abroad fertilizers will mirror 2019. Fluctuations, uncertainties and the increase in exchange in exchange and the increase uncertainties Fluctuations, 2019. will mirror In addition to our production, we shall continue to import other kinds of kinds of to import other we shall continue In addition to our production, to technologies is expected information of use the efficient Finally, contribute positively to sales and shipments after the completion of the completion of after positively to sales and shipments contribute of positive climate conditions in 2020. positive climate of engaging in the SAP program. 850,000 tons of domestic sales and 200,000 tons of export in the event the event export in tons of domestic sales and 200,000 tons of 850,000 Gemlik Gübre Sanayii A.S. target to continue investments, which are which are investments, target to continue Sanayii A.S. Gemlik Gübre Considering the developments in the fertilizer sector, we believe 2020 we believe 2020 sector, in the fertilizer the developments Considering Accordingly, we aim to sell more than 1 million tons of products, including including products, than 1 million tons of we aim to sell more Accordingly, Thanks to our growing network both in the domestic and export markets, domestic and export markets, in the network both growing to our Thanks for raw materials, 600,000 tons and 600,000 raw materials, for In addition, for directly. producers from traders and all the rest were imported were all the rest traders and could start we the first time this year, year and out of these quantities, only these quantities, of year and out ammonia and nitric acid. We imported imported We nitric acid. and ammonia other kinds of fertilizers and ammonia and ammonia fertilizers kinds of other 160,000 tons respectively during the tons respectively 160,000 40,000 tons of it were imported via imported it were tons of 40,000 income was provided to the company to the company was provided income and around countries, in the European by purchasing products from other from products by purchasing fertilizers, ammonia and nitric acid in fertilizers, we exported our products without any without any our products we exported the quantities decreased throughout throughout decreased the quantities in decrease and despite the the year, the sales. The number of than deferred fertilizers of other kinds transit sales of including products tons of than 800,000 and together with the domestic market purchase. Nevertheless, even though even Nevertheless, purchase. and production nearly 1 million tons of Besides, for the first time this year, we the first time this year, Besides, for In addition to this, foreign currency currency In addition to this, foreign USD in the local market also rather rather also USD in the local market establishing the cash sales policy in establishing the cash exports our total sales volume reached global fertilizer and raw material prices, prices, raw material and global fertilizer especially buyers was increased direct more we sold In 2019, markets. different 560,000 tons of CAN&AN and the rest CAN&AN and the rest tons of 560,000 sources and selling to our customers in and selling to our sources a decrease on AN&CAN quantities they they quantities on AN&CAN a decrease was maintained by and profitability made 1 million tons in total. We around out of this volume, we produced around around produced this volume, we out of like materials was raw the production of compromise in terms of profitability. profitability. of in terms compromise with to our profitability contributed 200,000 tons of fertilizer and around and around fertilizer tons of 200,000 ammonia was exported. tons of 20,000 quarter. th last year, could not be repeated in 2019. not be repeated could last year, been an important destination for for been an important destination from nitrogenous fertilizers, believing fertilizers, nitrogenous from period, which resulted in that fertilizer which had created a significant volume a significant which had created was imported for the operation of of the operation was imported for this situation, the export quantities to this situation, the decline in global ammonia prices, the decline in global ammonia prices, our factory of costs the production that the prices would decrease more more would decrease the prices that of the farmers delayed their purchases production in Ukraine, which had production remained above the global ammonia remained and therefore as foreseen prices was stopped and ammonia production rainfall over the European countries, countries, over the European rainfall In addition, owing to the low ammonia In addition, owing to the low ammonia Ukraine decreased especially during the Ukraine decreased situation, our ammonia export revenue, export revenue, our ammonia situation, and the price pressure on urea fertilizer fertilizer on urea pressure and the price to the traditional habits, and contrary our fertilizer factory. Because of this Because of factory. our fertilizer of As a result in 2018. our exportation costs, some factories returned to AN returned some factories costs, Again in the last quarter, due to late due to late Again in the last quarter, 4 losses in sales and shipment amounts by 30%. fertilizer production plant. production fertilizer was completed in and went live at the in and went live at was completed was paused on purpose. During this taken to activate the DCS (Distributed the DCS (Distributed to activate taken the urea is used for both in agricultural both in agricultural is used for the urea the country dependency of the foreign period, necessary action has been action period, necessary plant. Besides, DCS system installation reduce demand and supply gap; and gap; and demand and supply reduce compared and imported were produced Regarding the export market, due to the export market, Regarding In 2019, as a result of the continuous the continuous of as a result In 2019, emerged in August 2019, caused serious in August 2019, emerged decrease in the ammonia prices in the in the ammonia prices decrease ammonia of the costs global markets, Control System) system at the ammonia system at System) Control which System), Tracking GTS (Fertilizer the GTS labels, etc.) supply of as a result of the practices of the of the practices of as a result and industrial purposes, which shall and industrial purposes, which shall importation the that and it was predicted ammonia production and therefore of ammonia would be more profitable profitable more ammonia would be of contractor (stopping sales, restricting (stopping sales, restricting contractor 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP incentive for its new urea plant. its new urea for incentive along with industry, in the fertilizer in markets, sudden exchange rate rate sudden exchange in markets, fertilizer with a capacity that shall meet shall meet with a capacity that fertilizer unfavorable situation, with a successful with a successful situation, unfavorable targets with minimum loss. targets the domestic market. Foreseeing this Foreseeing the domestic market. types and raw materials in global types and raw materials many initiatives with its investments with its investments many initiatives markets had a negative impact on impact had a negative markets Increase in exchange rates, uncertainties uncertainties rates, in exchange Increase Urea Plant shall produce high-quality high-quality shall produce Plant Urea establishing the new Urea Plant, Plant, establishing the new Urea 2019 HIGHLIGHTS One of the most prominent activities the most prominent One of shall make a big contribution to the to the a big contribution shall make Gemlik Gübre Sanayii AS which leads Sanayii AS which leads Gemlik Gübre sales planning Gemlik Gübre reached its reached sales planning Gemlik Gübre fluctuations, depreciation of all fertilizer fertilizer of all depreciation fluctuations, an important market demand where demand where an important market agricultural sector with domestic agricultural sector with domestic and given a project based investment and given a project of 2019 was that Gemlik Gübre Sanayii Gemlik Gübre 2019 was that of capital. Gemlik Gübre Sanayii AS’s new Sanayii AS’s new capital. Gemlik Gübre Sanayii A.Ş. Bursa Private Industry Zone” Industry Zone” Bursa Private Sanayii A.Ş. AS was declared as “Gemlik Gübre Gübre as “Gemlik AS was declared [FERTILIZERS AND CHEMICALS] AND [FERTILIZERS 78 FERTILIZERS AND CHEMICALS 81 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
YILPORT SOLVENTAŞ, TURKEY YILPORT SOLVENTAŞ, increase in exchange rates due due rates in exchange increase half years. Raw material prices prices half years. Raw material and is expected to continue be expected in 2020. Regional Regional be expected in 2020. to reasons such as the lower such as the lower to reasons trade will generally be tonnage of its container-based to increase that the infrastructure and synergy and synergy the infrastructure that to this goal. problems, reflection of these of these reflection problems, on the economy, problems with customer-specific solutions solutions with customer-specific quality providing with its vision of sales as well as ship-based trade sales as well as ship-based trade services during continuously observed. In 2020, Yılkem aims aims Yılkem observed. In 2020, changing conditions. It is clear changing conditions. It is clear will contribute YILDIRIM Group of direction in the last one and a in the last one and a direction Volatility rapidly. fluctuated shift should not economic data World trade has tried to find a trade has tried to find World 2020 GOALS AND 2020 GOALS EXPECTATIONS fuels and the transit trade of white oil fuels and the transit trade of of vessels and 10 tankers 9 dry cargo for these developments, we provided these developments, we provided In addition, the tonnage goods faster. - contain and also completed market, in 2019. put into practice were products er-based deliveries in addition to bulk We continued to purchase marine fuel to purchase continued We studies initiated for the sale of marine the sale of for studies initiated cargo deliveries to its customers. With cargo customers a capacity to supply lower YILPORT SOLVENTAŞ, TURKEY YILPORT SOLVENTAŞ, YILPORT SOLVENTAŞ, TURKEY YILPORT SOLVENTAŞ, Yılkem maintained its position in the maintained Yılkem YILDIRIM Group. (TURKEY) 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP ing ahead, market is to continue to be is to continue ing ahead, market indicators in Turkey (particularly in the in Turkey indicators boring countries seriously regarding de- regarding seriously boring countries beginning of 2019, failing to recover loss failing to recover 2019, of beginning facilities in September 2019, it was tem- 2019, facilities in September from the drop in the fourth quarter of in the fourth the drop from volatility of oil prices on petrochemicals on petrochemicals oil prices of volatility tional products. In line with these data, In line with these data, tional products. constantly has normalized the market - Look the year. throughout the products the aforementioned changes. In 2019, changes. In 2019, the aforementioned mand. In addition, the contraction in the mand. In addition, the contraction market was limited and the market prices the market was limited and market per barrel for WTI. The reflection of the The reflection WTI. for per barrel price averages are settled around at settled around averages are price porary and prices continued to decrease to decrease continued porary and prices market, and the increase in financing and the increase market, payment performance, rising storage payment performance, - The rea in 2019. missed its goals greatly United States affected Turkey and neigh- Turkey affected United States USD 65 per barrel for Brent and USD 57 Brent for USD 65 per barrel 2019 HIGHLIGHTS - conven of volume in consumption drop due to bearish short-term outlook. Oildue to bearish short-term drone strikes on Saudi Arabia’s oil refining oil refining on Saudi Arabia’s strikes drone disadvantage of that in a declining price in a declining price that disadvantage of Oil prices increased nearly by 30% in the nearly by 30% in increased Oil prices With the infrastructure and synergy of of and synergy With the infrastructure sensitive to news from the trade disputes sensitive to news from squeezed in a narrow band for most of band for in a narrow squeezed strated its energy to adapt quickly to its energy strated sons behind this are negative economic economic negative sons behind this are and supply disruptions. changing conditions. construction sector in Turkey caused a Turkey sector in construction costs. costs due to irregular shipments and the due to irregular costs construction sector), deterioration in sector), deterioration construction YILKEM CHEMICALS CHEMICALS YILKEM MARKETPETROCHEMICALS IN 2019 2018. Although prices were supported by supported were prices Although 2018. YILDIRIM Group, Yılkem has demon- Yılkem YILDIRIM Group, [FERTILIZERS AND CHEMICALS] AND [FERTILIZERS The trade war between China and the Turkish petrochemicals market has market petrochemicals Turkish 80 ENERGY 83 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Mustafa KURNAZ Mustafa CEO GROUP ENERGY licenses. its test and technical services offered under the Yılteknik brand. It has under the offered its test and technical services market. and sells electricity to the energy MW 150 installed capacity of and achieve globally accepted independence, economic increase increasing and consumptions energy reducing investments, thereby based on clean fossil fuels. based on clean fossil based on clean and nationalized coal in Çanakkale, Turkey. In Turkey In Turkey Turkey. in Çanakkale, coal based on clean and nationalized won important public tenders through strategic steps and became a strategic won important public tenders through the attention of private organizations and competitors in Turkey through through in Turkey and competitors organizations private of the attention gas trade with its electricity and natural trading program the energy until 2030 by means of MW 5,000 to have a total installed power of renewable energy, biomass power plants, and power plant projects and power plant projects biomass power plants, energy, renewable Dear Business Partners, Plant (TPP) and Sarıkaya Karaburun Thermal Power Kirazlıdere Projects In order to reduce dependence particularly on foreign energy resources, resources, energy particularly on foreign dependence to reduce In order Filiz of the implementation for our activities continue In this context, expand its customer portfolio rapidly in 2020. expand its customer portfolio cycles. their own energy redesign countries standards, environmental efficiency. guide the future of the energy sector. the energy of guide the future Mustafa KURNAZ Mustafa With its more effective, flexible and dynamic new corporate structure, structure, corporate flexible and dynamic new effective, With its more power plants with a total hydroelectric three operates Our company successful services abroad. Highly motivated, Yılteknik will continue to will continue Yılteknik Highly motivated, abroad. services successful and international energy production, energy trade, engineering services services trade, engineering energy production, energy and international to in order staff with its expert and competent and technical services portfolio production develops an energy YILDIRIM Energy and abroad, critical solution partner for its customers with a proven track record of of track record its customers with a proven critical solution partner for Sincerely, YILDIRIM Energy Holding Inc. carries out its main activities in domestic Holding Inc. carries out its YILDIRIM Energy attracted and its infrastructure has further improved YILDIRIM Energy runs YILDIRIM Energy, Inc., a subsidiary of Tedarik YILDIRIM Enerji YETAŞ They diversify alternative and domestic energy sources and focus on and focus sources and domestic energy They diversify alternative
%
PRODUCTION 6 REVENUE CONSOLIDATED GROUP YILDIRIM ENERGY INVESTMENT IN CIS, PROJECTS AFRICA, LATIN AMERICA COMPANY TARGET COMPANY 3 GW REACH IS TO ENERGY 5% AND CAPACITY IN SHARE MARKET 2030 TURKEY BY 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP ENERGY [ENERGY] 82 ENERGY 85 has expanded its services with the with the has expanded its services the energy related projects of its intra- of projects related the energy In the second half of 2019, Yılteknik Yılteknik 2019, half of In the second expanded its service network in network in expanded its service distributorship of Huaming, Schneider Huaming, Schneider distributorship of in overseas. companies group and Baur companies. Yılteknik aims to aims to Yılteknik and Baur companies. also obtained ISO 9001:2015, ISO ISO also obtained ISO 9001:2015, Department Services and Technical offer turnkey solutions to implement solutions to implement turnkey offer obtained TS 12831, TS 12817, and and obtained TS 12831, TS 12817, certifications in 2019. The Testing Testing The in 2019. certifications Standards Institution (TSE) and has Institution (TSE)Standards and has 14001:2015 and OHSAS 18001:2007 and OHSAS 18001:2007 14001:2015 Turkey. TS 12541 certifications from Turkish Turkish from certifications TS 12541 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in both field and the management activities. Constructing the natural gas gas Constructing the natural activities. field and the management in both on public institutions and their and services. By focusing infrastructures brand new service center, Yılteknik Bursa-Gemlik Technical Services and and Services Technical Bursa-Gemlik Yılteknik brand new service center, businesses will develop as the market grows. as the market businesses will develop hydroelectric power plants to Turkish Energy Exchange (EXIST) Energy Exchange in 2020 to Turkish power plants hydroelectric thermal power plants both in Turkey and abroad. Engineering and project Engineering and project and abroad. in Turkey both thermal power plants national activities at the prioritized its services. In 2020, the quality of cable generator, accumulator, thermography (thermal camera imaging), and MV transformer installation, panel and testing services, automation through the YEKDEM tariff, which stands as a security for YILDIRIM Energy Energy for YILDIRIM which stands as a security YEKDEM tariff, the through plant mechanical maintenance services. With the larger scope of services services services. With the larger scope of mechanical maintenance plant pipeline in Kazakhstan is one of our new projects. is one of pipeline in Kazakhstan validated officially Yılteknik this track record, public tenders. Through portfolio. and products, Yılteknik is expected to be headquartered in its larger and in its larger and be headquartered is expected to Yılteknik and products, activities, Yılteknik has successfully won and accomplished important important has successfully won and accomplished activities, Yılteknik secondary of will be testing and maintenance levels and international management services will utilize YILDIRIM Energy’s expertise and abilities Energy’s expertise and abilities YILDIRIM services will utilize management of electricity solution partners in a short time in the field most preferred switchgear (HV-MV), secondary testing and commissioning services, secondary testing and commissioning services, switchgear (HV-MV), Manufacturing Center in January Manufacturing Center 2020. generation that it will become a financial back up power for YILDIRIM YILDIRIM a financial back up power for it will become that generation In 2020, the company will continue to implement investment projects of of projects investment to implement company will continue the In 2020, power hydroelectric and maintenance, HV transmission line installation Energy. As before, the natural gas trading will continue steadily and new steadily and new trading will continue gas the natural before, As Energy. 2020 GOALS AND EXPECTATIONS AND 2020 GOALS Yılteknik testing and technical services division has become one of the the one of testing and technical services division has become Yılteknik YILDIRIM Energy will continue to market its electricity from its its from its electricity to market Energy will continue YILDIRIM its electricity Inc. will considerably increase Energy Trade Yıldırım YETAŞ latest technology. latest its electrical energy from different different from its electrical energy foreign companies and organizations and organizations companies foreign transportation vehicles based on the vehicles based on the transportation providing service to domestic and to domestic and service providing Energy Production Inc., was rebranded Inc., was rebranded Production Energy Energy Holding, and Yılteknik have have Yılteknik Holding, and Energy equipped with test devices and and equipped with test devices sources to both final consumers and consumers and to both final sources as Yılteknik. It develops business by It develops business by as Yılteknik. other market participants. other market Senerji under the brand of operation outside of the group. Yılteknik is is Yılteknik the group. outside of Senerji Energy, Düzce Energy, Yıldırım Yıldırım Energy, Düzce Senerji Energy, Testing and technical services and technical services Testing , TURKEY NEVŞEHİR HEPP (47 MW), BAYRAMHACILI through the YEKDEM tariff. In 2019, In 2019, the YEKDEM tariff. through power plants with a total installed power plants with a total installed Production Senerji Energy plants are; per year was sold to the production Plant with a capacity of 96 MW in İspir, in İspir, 96 MW Plant with a capacity of Erzurum, Bayramhacılı Hydroelectric Plant with an installed capacity Power Hasanlar Association Energy Düzce Düzce. Inc. Güllübağ Hydroelectric Power Power Inc. Güllübağ Hydroelectric 360 GWh annual electricity In 2019, HASANLAR HEPP (4,67 MW), DÜZCE, TURKEY DÜZCE, MW), HASANLAR HEPP (4,67 Canal Power Plant of 4.7 MW in in MW 4.7 Plant of Canal Power of 47 MW in Bozca, Nevşehir, and and Nevşehir, in Bozca, 47 MW of capacity of 150 MW. These power power These 150 MW. capacity of HASANLAR HEPP TURBINES (4,67 MW), DÜZCE, DÜZCE, TURKEY MW), HASANLAR HEPP TURBINES (4,67 YETAŞ Yıldırım Energy Trade Inc., sold Inc., sold Trade Energy Yıldırım YETAŞ Turkish Energy Exchange (EXIST) (EXIST) Exchange Energy Turkish in developing biomass and renewable in developing biomass and renewable in early 2019, and the investment and in early 2019, stage. in review heads of terms agreement was signed was terms agreement heads of with Uzbekistan’s Ministry of Energy Energy with Uzbekistan’s Ministry of the environmental impact analysis report impact analysis report the environmental producer. It has three hydroelectric hydroelectric It has three producer. power plant for 30 years. The first part of 30 years. The first part power plant for have been agreements power purchase power plant investment renewable the right in standby for are projects Power Plant, Filiz Kirazlıdere Thermal Thermal Plant, Filiz Kirazlıdere Power consecutive Plant and other Power In parallel, Sarıkaya Karaburun Thermal In parallel, Sarıkaya Karaburun Thermal 2019 HIGHLIGHTS energy power plant projects in both power plant projects energy drilling analysis were completed. The completed. drilling analysis were strategic signals from the market. the market. signals from strategic and rich energy sources as a goal, sources and rich energy and the feasibility study including soil and the feasibility Aiming to supply energy from diverse from Aiming to supply energy YILDIRIM Energy is an active energy active energy is an YILDIRIM Energy YILDIRIM Energy will continue to invest will continue YILDIRIM Energy Turkey and abroad. Turkey investments. key player in the market. Volatility in Volatility player in the market. key compared less, the market has affected focused on the retail sales and technical on the retail focused POWER PLANTPOWER PROJECTS to 2018. The troublesome retail part of retail The troublesome to 2018. due its volume the sector has recovered It saved intervention. to the regulatory natural-gas-fired combined cycle power natural-gas-fired in Uzbekistan, YILDIRIM plant project risk. In this direction, YILDIRIM Energy has YILDIRIM Energy risk. In this direction, market will eventually need such will eventually need such market Energy has been granted as the official as the official has been granted Energy Regarding YILDIRIM Energy’s 900 MW 900 MW YILDIRIM Energy’s Regarding electricity and natural gas spot priceselectricity and natural designed by YILDIRIM Energy as the as the designed by YILDIRIM Energy suppliers taking long-term fixed-price salesuppliers taking long-term fixed-price its activities, while continuing of services a recovery period during all of 2019. 2019. of period during all a recovery on preparing for big projects. for on preparing contractor to build and operate the to build and operate contractor After devastating effects of late 2018, 2018, of late effects After devastating YILDIRIM Energy kept its position as a kept YILDIRIM Energy Turkey’s energy market set itself through set itself through market energy Turkey’s (96 MW), ERZURUM, TURKEY ERZURUM, (96 MW),
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP investment strategy and cautious but and investment strategy investments. institutions to the energy investors are fluctuations in currency currency in fluctuations investors are ENERGY MARKET IN 2019 MARKET ENERGY which is a crucial but stringent path which is a crucial but stringent path weakest aspects of the market for the for the market aspects of weakest technological advances in renewables, in renewables, technological advances While future. in the to be followed rates and weak demand. However, main However, and weak demand. rates rapid changes of legislation. The legislation. rapid changes of Energy aims to ease the burden on on the burden aims to ease Energy engaging with renewables, YILDIRIM YILDIRIM engaging with renewables, energy market include; geopolitical risks, market energy government authorities for a robust a robust government authorities for dependence on foreign markets, and markets, on foreign dependence dependence on foreign energy, lack energy, on foreign dependence supply chain that will fire the clean the clean will fire supply chain that and secured market infrastructure. infrastructure. market and secured are; government grants, national energy energy government grants, national are; financial of approach also exclusive opportunities in Turkey’s energy market market energy opportunities in Turkey’s of R & D investments, technological R & D investments, of coal based thermal power plants based thermal power plants coal YILDIRIM owns 100% shares of a coal a coal of YILDIRIM owns 100% shares The market is adapting major is adapting major The market The main factors that challenge Turkey’s Turkey’s challenge The main factors that [ENERGY] GÜLLÜBAĞ HEPP GÜLLÜBAĞ 84 SHIPPING 87 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Capt. Volkan ÖZTÜRK Capt. Volkan COOGROUP SHIPPING BULK DRY impacted incomes from Capesize to Handysize, compared to first half compared to Handysize, Capesize from impacted incomes basis. Considering that this tonnage was 0.7 million tons last year, tons last year, million tonnage was 0.7 this basis. Considering that as well global economies on the moment due to uncertainty hold at services in overall. Along with successful having 810 annual operations via cost-saving policies that are of utmost importance. In addition to In utmost importance. of are that policies via cost-saving parties on both spot or contract by third vessels owned and operated unstable performance in the first half of the year, dramatically dropped dropped dramatically of the year, in the first half unstable performance 2518 in September 2019. its highest level of unexpectedly reached would continue in 2019, with a dramatic fall in market by the beginning by the beginning fall in market with a dramatic in 2019, would continue conditions, within the market working to achieve maximum profitability ports, Dardanelles İstanbul-Marmara region in the ports of we provided the risks and adversities of 2019 will diminish. the risks and adversities of to 645 levels and then showed a positive trend by summer, when it summer, by trend to 645 levels and then showed a positive necessary measures have been taken to minimize operational expenses operational to minimize taken have been measures necessary Dear Business Partners, due to trade wars, closed 2018 below expectations market Dry cargo its following dry bulk market, for Baltic Dry Index (BDI), an indicator Shipping is While Yılmar BDI ended the year ended with 1090 level. economic problems and geopolitical risks. We observed that similar risks observed that and geopolitical risks. We problems economic on are Our newbuilding projects completed. was engine maintenance ship personnel. 1 million tons have been carried in total with our dry ship personnel. 1 million tons have been via companies group the the import and export activities of shipped for productive and efficient, we hope to have a more In 2020, successfully. ÖZTÜRK Capt. Volkan as new IMO bunker regulations that will come into force on January into force will come that regulations as new IMO bunker and all necessary steps have been taken regarding the training of the the training of regarding have been taken steps and all necessary companies to third-party service to provide and Bosporus, we continued of 2019. By summer 2019, improvement of trade opportunities trade of improvement 2019, By summer 2019. of coaster segment. affect did not increase that However, the year. of colleagues, in the hope that year with all our profitable more course of cost control, another issue that we care about has been staff training, about has been staff we care another issue that control, cost YILDIRIM Group for was transported volume of that fleet. %30 cargo was cargo 1 million tons of addition, a total of needs. In companies’ Sincerely, YILDIRIM's import/export volume grew successfully. In 2019, YM Everest, Everest, YM In 2019, successfully. grew import/export volume YILDIRIM's surveyed and their Hazar vessels were and YM Amazon YM Fuji, YM 1, 2020. Our agency department completed 2019 quite successfully, 2019 quite successfully, completed Our agency department 1, 2020.
%
1.5 REVENUE CONSOLIDATED GROUP YILDIRIM DRY BULKDRY 9 GENERAL OWNS CARGO VESSELS AND THEIR MANAGES OPERATIONS. 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP (DRY BULK) SHIPPING (DRY [SHIPPING] 86 SHIPPING 89 increase in bunker prices with prices with in bunker increase in Gemlik, and Samsun and in Gemlik, and Samsun and best way, which is estimated to to which is estimated best way, keep we wiil year, be a difficult the services we provide increase bulk market, we plan to attend we plan to attend bulk market, new agency by opening three Gemport branches primarily at the New Bunker Regulation that that Regulation the New Bunker uncertainties, IMF’s slowdown IMF’s slowdown uncertainties, and keep the income to increase quality, the service to improve to third-party companies. prices in 2019 and possibility of possibility of prices in 2019 and productivity. for America’s growth for the first for the first growth for America’s will come into force in 2020, and and in 2020, force will come into would be far lower in 2020 than in 2020 than would be far lower conferences national/international and seminars and also, in order the we will work on increasing we will accelerate efforts to efforts to we will accelerate risks becoming deeper, German’s German’s deeper, becoming risks estimation and even regression growth China’s that stating report saving maximizing operational improve in order to measures year for shipping. show that 2020 will be a tough 2020 will be a tough show that for new opportunities searching continuity of this decrease and its and its this decrease of continuity these with costs related operating company profitability and and company profitability activities. educational effects on the shipping industry, industry, effects on the shipping economic vision having vision having economic similarly IMF’s 2020, quarter of In order to have 2020 in the In order to have 2020 in the In addition, in Turkey. Iskenderun Possibility of worldwide economic worldwide economic of Possibility As an important player in the dry in the dry player As an important Agency activities will expand 2020 GOALS AND2020 GOALS EXPECTATIONS 2019, decrease in commodity in commodity decrease 2019, 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP international conferences, seminars conferences, international in 2020, installation of those systems of installation in 2020, has been scheduled for the course the course for has been scheduled for all of our vessels. In addition, due In addition, our vessels. all of for the same time, chartering, technical, take very seriously and make sure both sure very seriously and make take international with trained to comply that will come into force in 2020, in 2020, into force will come that system treatment to the ballast water vessels. In these party chartered third have been carried. The fertilizers tons of rules and standards. Fuel tank cleaning tank Fuel rules and standards. and technologies. new regulations preparations and compliance studies compliance and preparations services and 280 strait port services which we policy, part to our company Due to the low sulphur regulation low sulphur regulation Due to the 2019 HIGHLIGHTS 2019 encouraged to attend national and national to attend encouraged export sales have been carried by export sales have been developments in education, information, information, developments in education, sulphur fuel will be completed. At sulphur fuel will be completed. Group companies’ total import and companies’ Group chrome tons of shipments 450,000 is an important Training separately. and chimney arrangements for low and chimney arrangements for follow new to and briefings in order and ferrochrome, 220,000 tons of coal coal tons of 220,000 and ferrochrome, and 330,000 coke, and metallurgical a total agency department has serviced operation and legal departments were were and legal departments operation officers and ship crew are regularly are crew and ship officers (WBTS), which will come into force into force which will come (WBTS), YILDIRIM tons of 1 million the year. of including 530 810 vessels in 2019, of completed in the last quarter of 2019 2019 in the last quarter of completed by assuming growth rate for seaborne for rate by assuming growth becomes clear. becomes for 2019 was 4%. On the other hand, for uncertainties. wars as well as geopolitical risks. United wars as well as geopolitical tonnage was 40 million DWT. According According tonnage was 40 million DWT. rate fleet growth data, to the Bimco freight flat for trade as 4%, the reason was a steep decline in newbuilding there year, US sanctions against Iran, currency US sanctions against Iran, currency year, prices, and second hand prices due to hand prices and second prices, most affected sectors by global trade sectors most affected last year, to the numbers compared Handy segments. On the other side, On the other Handy segments. In 2019 7.5 million DWT was scrapped, million DWT In 2019 7.5 in orders newbuilding If we look at effects on economy, uncertainties uncertainties on economy, effects growth in earnings compared to 2018. compared in earnings growth delivered unhealthy results in 2019 for in 2019 for unhealthy results delivered Capesize segment brough 10-12% brough segment Capesize fluctuations in Turkey and its effect to and its effect Turkey in fluctuations and the globally delivered newbuilding and the globally delivered averages between 2018 and 2019 all segments, despite a slight rise in about Brexit, fluctuation in the oil prices in the oil prices fluctuation about Brexit, on import and exports, Turkey’s Syrian Syrian Turkey’s on import and exports, and their local and global operations our sector. country trade, Chinese government’s country decisions and their effect commercial States’ trade war with China during the States’ 10-18% less in Panamax/Supramax/ less in 10-18% The maritime industry is one of the the of industry is one The maritime 9 DRY BULK DRY MANAGES OWNS AND OWNS 80 1.1 VESSELS OF YILMAR FLEET SHIPPING GROUP SHIPPING GROUP TONNAGE IN 2019 TONNAGE TOTAL CARRIED (MN) CARRIED (MN) TOTAL CURRENT DWT (x1000) CURRENT DWT levels. Due to the reasons explained explained levels. Due to the reasons index was 1340 and this year we have index was 1340 and this year we have from these figures, shipowners earned figures, these from was considered to be a good year to be a good year was considered the third quarter around 1823 with a with a 1823 quarter around the third risen up to 2378 level, it finally closed risen up to 2378 level, it finally closed Handysize, USD 9992 for Supramax, Supramax, USD 9992 for Handysize, If we need to go into detail, Baltic Dry If we need to go into detail, Baltic Dry 1282 Index begun the year around USD 11,156 for Panamax, and USD Panamax, USD 11,156 for experienced the same index average the same index average experienced despite all negative events. The average events. The average despite all negative quarter by June 2019, after having having after quarter by June 2019, around 1090 levels. As a result, 2019 2019 1090 levels. As a result, around USD 7229 for annual basis were above, it drew back dramatically to to back dramatically above, it drew of the year, that corrective action action corrective that the year, of compared to the previous year. to the previous compared continued and the year was closed was closed and the year continued corrective action. In the last quarter quarter action. In the last corrective 689 levels. By recovering in the second in the second 689 levels. By recovering 18,097 for Capesize. As can be seen Capesize. for 18,097 The average time charter rates on The average time charter rates iron ore producers Vale, Rio Tinto and Vale, producers ore iron beginning of the year, three largest largest three the year, beginning of beginning of 2019. This caused a serious 2019. beginning of the disaster at Vale’s premises in premises Vale’s the disaster at at incurred the losses that to minimize increased the year, the beginning of their trade volumes. They brought trend in dry cargo markets due to markets in dry cargo trend year, a downward corrective action was corrective a downward year, recession until the middle of 2019 with of until the middle recession BHP Billiton declared that they would they that BHP Billiton declared tornado in Australia Brazil and tropical players who wish ore iron By June 2019, the In the last quarter of BDI growth. equilibrium have collapsed. and 2019 ended. experienced geopolitical risks was felt strongly at the at strongly geopolitical risks was felt a downward trend. Especially at the at Especially trend. a downward Train negatively. market ore iron affected in interrupted transportation accidents which enabled activity to the market cut-down production lines. Meanwhile, cut-down production segment. Supply and demand capsize 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in 2000 in order to meet the logistics to meet in 2000 in order in Turkey. its operations. Yılmar has expanded its Yılmar its operations. bulk and general cargo vessels, with bulk and general cargo DRY CARGO MARKETS IN 2019 MARKETS CARGO DRY the last quarter of 2018, and negative and negative 2018, the last quarter of thus securing a place for itself among for thus securing a place shipping enterprises the most respected the previous 5 years. The company also 5 years. The company the previous the annual volume of dry bulk carried dry the annual volume of needs of YILDIRIM Group. The The YILDIRIM Group. needs of Negative course in global economy by in global economy course Negative exceeding the 2 million tons level for the 2 million tons level for exceeding global range of activities by anticipating activities by anticipating global range of shifting customer needs and policies, serves third parties with the principles parties with the serves third agency as well as the sale and purchase agency as well as the sale and purchase owning, management, chartering and of honesty, reliability, and high quality in reliability, honesty, of (S&P) of vessels. Yılmar manages 9 dry vessels. Yılmar (S&P) of company’s activities include ship activities company’s changes in marine industry, as well as changes in marine industry, Yılmar Shipping Agency was established Yılmar [SHIPPING] YILMAR SHIPPING YILMAR 88 SHIPPING 91 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Capt. Ufuk ÇETİNER COO GROUP SHIPPING TANKERS CHEMICAL look at these figures from the detailed viewpoint of stainless vessels, we viewpoint the detailed from these figures look at is expected to be approximately 1 trillion dollars in the next 5 years. 1 is expected to be approximately in global trade, US-China trade war and the problems it brings, and the problems in global trade, US-China trade war and bright, the world economic growth was 3.2% in 2019 and 3.5% is in 2019 and 3.5% was 3.2% growth bright, the world economic has grown by 4% around the world. This growth is usually observed in is usually observed the world. This growth by 4% around has grown forecasted for 2020. The IMF’s persistence on recession, the slowdown on recession, The IMF’s persistence 2020. for forecasted the growth of global economy and the consumption of the end-user. of and the consumption global economy of the growth and uncertainty, price refineries, of to the change in the production of this change The total global effect awaiting us in 2020. the problems the geopolitical risks eliminates the optimism. It seems to hinder the the geopolitical risks eliminates recovery of the chemical tanker market, which is entirely dependent on dependent which is entirely market, the chemical tanker of recovery of new fuels due Difficulties in the availability greatly. maritime market medium sized (35,000-50,000 DWT) which we call ‘medium tankers, (35,000-50,000 medium sized to decreases newbuilding, this ratio DWT range’. Under 10,000 Eastern region. This increase is expected to continue in 2020. We We in 2020. is expected to continue This increase Eastern region. Dear Business Partners, In addition, IMO’s 2020 decision seems to impact the world oil and In addition, IMO’s 2020 decision seems to impact the world oil and While all these expectations give the impression that the future looks the future that give the impression While all these expectations When we look at the newbuilding market, it is seen that the tanker fleet the tanker it is seen that market, the newbuilding When we look at Capt. Ufuk ÇETİNER fluctuation, impact of these changes on other industries are some of some industries are of these changes on other impact fluctuation, approximately 1.2%, and between 10,000-20,000 DWT to 2.5%. If we to 2.5%. DWT 1.2%, and between 10,000-20,000 approximately observe that these rates go down much lower. these rates observe that observe that the production of approximately 20 million tons of low- 20 million tons of approximately of the production observe that maritime transport. of cost liquid inorganic chemicals production will be the upcoming subject upcoming will be the chemicals production liquid inorganic cost Sincerely, 2020. They are likely to be scrapped. likely They are 2020. 31 chemical tankers in Europe are expected to reach the age of 26 by the age of expected to reach are in Europe 31 chemical tankers There is an increase in chemical production in America and Middle production in chemical is an increase There
CHEMFLEET MANAGES CURRENTLY BY OWNED VESSELS 24 9 DIFFERENT GROUPS. SOLAR CHARTERING COMMERCIALLY CHEMICALMANAGES TANKERS. % 3 YILDIRIM GROUP YILDIRIM REVENUE CONSOLIDATED OWNS 10 CHEMICAL OWNS AND TANKERS THEIR MANAGES OPERATIONS. YM TANKERS YM 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP SHIPPING TANKERS) (CHEMICAL [SHIPPING] 90 SHIPPING 93 issue of quarterly quarterly issue of th incidents, zero spills at sea, sea, spills at zero incidents, of in 2020 with the attendances to achieve the goals of zero zero the goals of to achieve and zero detention through through detention and zero salvage brokers, insurance insurance salvage brokers, continuous improvement in 2020. in 2020. improvement continuous drills ship-shore comprehensive companies, agents and lawyers. companies, agents In parallel, Chemfleet will perform will perform In parallel, Chemfleet Group executives, charterers, charterers, executives, Group Chemical tankers group aims aims group tankers Chemical YILDIRIM management, Chemfleet 2020 GOALS AND2020 GOALS EXPECTATIONS inspections, a total of 60 onboard 60 onboard inspections, a total of for crew training. crew for vetting inspections have been vetting inspections have been vessels in its fleet in September vessels in its fleet in September provide updated instructional training training instructional updated provide 445 total 751 crew, issues for relating and total 461 officers performance, methods, Reflective Learning, Learning, methods, Reflective Security and Planned Cyber policy, published the 34 HSEQ magazine by November 2019 2019 magazine by November HSEQ 15 CDI and 45 SIRE During 2019, Resilience, Behavior Based Safety, Behavior Based Safety, Resilience, In addition to these efforts, In addition to these efforts, Meeting, Intervention & Speak Up Meeting, Intervention & Speak Up Chemfleet System. Maintenance Chemfleet also organized 101 pieces 101 pieces also organized Chemfleet trainings successfully. CBT/VOD such as Company Policies, KPIs, KPIs, such as Company Policies, annual targets successfully with an with an successfully annual targets SIRE for observations 2.44 average of CDI. for and 3.00 of in house pre-joining briefings to to briefings in house pre-joining of and quality environmental on safety, ratings. Add to above and 306 officers crew members completed in house in house members completed crew completed at fleet base. We achieved We achieved fleet base. at completed covers HSEQ related topics topics related HSEQ covers Situational Awareness, Tool Box Box Tool Awareness, Situational 2019. This comprehensive seminar seminar This comprehensive 2019. Accident & Incident Analysis and Analysis and & Incident Accident 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
tons total million 1.2
tons bio oils thousand 170 lawyers. During this drill, Chemfleet lawyers. During this drill, Chemfleet insurance companies, agents and agents and companies, insurance has improved emergency response response emergency has improved management, YILDIRIM Group management, YILDIRIM Group and 18001 ISO 9001, 14001 renewed Bureau Veritas. Bureau In August 2019, Chemfleet has has Chemfleet In August 2019, In order to maintain and improve our our to maintain and improve In order executives, charterers, salvage brokers, salvage brokers, charterers, executives, safety and environmental protection protection and environmental safety held a 2-day Chemfleet standards, and also the 89 officers seminar for and coordination with third party party with third and coordination abilities. certification and was accredited by by and was accredited certification 1 day seminar for 79 ratings of the the of ratings 79 1 day seminar for thousand tons clean 240 petroleum products petroleum LIQUID CARGO CARRIED IN 2019 CARRIED CARGO LIQUID
tons thousand chemicals in Safety Workshop in Istanbul. in Istanbul. Workshop in Safety the meetings have been completed the meetings have been completed the company of the attendance participated in 2-day long Shell long Shell in 2-day participated in the Shell Partners participated Partners in Safety Conference in in Conference Partners in Safety we In October 2019, Rotterdam. In January 2019, Chemfleet has has Chemfleet In January 2019, of conclusions of Implementation also Chemfleet In July 2019, successfully by the end of year. by the end of successfully an annual performed successfully operations, summing a total of 2078 2078 a total of summing operations, cargo operations. cargo drill with ship-shore comprehensive 1006 loading, 1072 discharging 1006 loading, 1072 discharging 780 in 2019. We employed office staff and staff employed office We in 2019. board the managed ships. board been a decline in consumption. This This in consumption. been a decline due to the IMO’s have been initiated revenues. has affected high prices from 9 different ship-owner groups ship-owner groups 9 different from trade. This effect lasted until the end of of end lasted until the effect trade. This investments In addition, fixed the year. management and 3 crew management management crew management and 3 have completed managed tankers In 2019, a total of 3.06 million DWT million DWT 3.06 a total of In 2019, expectations, weak economic data data economic weak expectations, directly affected the chemical tanker chemical tanker the affected directly Chemfleet and Dryfleet operated and Dryfleet operated Chemfleet a total of 26 vessels, 23 technical 26 vessels, 23 technical a total of members on 750 crew approximately affected the end customers. There has has end customers. There the affected of oil and chemical cargo have been have been cargo oil and chemical of carried. Chemfleet and Dryfleet and Dryfleet carried. Chemfleet 2020 rule. In the last two months of two months of 2020 rule. In the last low-sulfur fuel with the use of 2019, by YILDIRIM Group. As of 2018, the the 2018, As of Group. by YILDIRIM horizontal market. Decline in growth Decline in growth market. horizontal with the aim to become the biggest the biggest with the aim to become than expected due to the positive to the positive than expected due period, In the following the targets. of trade wars left the the effect player in its field in the Mediterranean the Mediterranean player in its field in will expand to The company region. planned investments. network to manage third party vessels party vessels third network to manage positive process to a more stable and and stable to a more positive process 2019 HIGHLIGHTS expected to pass slowly was better was better expected to pass slowly developments. It was slightly above developments. It was slightly above Group subsidiary YM Tankers Holding Holding Tankers YM subsidiary Group and 1 Turkish-flagged chemical tanker. chemical tanker. and 1 Turkish-flagged after the middle of the year, recession recession the year, the middle of after other regions and markets following following and markets other regions company manages 11 vessels, 10 10 11 vessels, manages company owned by YILDIRIM tankers chemical Solar Chartering is also expanding its its is also expanding Solar Chartering The first quarter, which is usually which is usually The first quarter, 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP is the first independent chemical independent chemical is the first high-quality safety and environmental environmental and high-quality safety for chemical tankers, owned 100% owned 100% chemical tankers, for SOLAR CHARTERING transportation of bulk liquid chemicals liquid chemicals bulk of transportation tanker management company in in company management tanker provides its customers with reliable reliable its customers with provides manages 24 chemical tankers and and chemical tankers manages 24 Established in 2012, Solar Chartering is is Established in 2012, Solar Chartering Established in 2006, Chemfleet Chemfleet in 2006, Established employs approximately 750 ship crew, 750 ship crew, employs approximately CHEMFLEET standards, with ISO 9001, 14001 and and with ISO 9001, 14001 standards, Code Certification. ship management activities for the the activities for ship management a commercial management company company management a commercial all of them Turkish. The company The company them Turkish. all of comply with that and efficient services and oils. As of 2018, Chemfleet Chemfleet 2018, and oils. As of crewing, operational and technical and technical operational crewing, 18001 certifications in addition to ISM addition to ISM in 18001 certifications Turkey. The company performs performs The company Turkey. [SHIPPING] 92 LOGISTICS 95 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Cihan AKIN DIRECTOR EXECUTIVE OPERATIONS LOGISTICS GLOBAL logistics operator in fruit transport from Portugal and Spain to Brazil and Portugal in fruit transport from logistics operator integrated value-added logistics services to third party customers. In to third logistics services value-added integrated terminals around the world. terminals around the proficiencies of YILDIRIM Group companies, such as Transitex’s companies, such as Group of YILDIRIM the proficiencies its volume and met Logistics Eti 2019, of half the second throughout we in Brazil. In 2020, cargo fresh of forwarder freight largest the second market and Yılport Holding’s technical knowledge, we aim to expand technical knowledge, we aim to Holding’s and Yılport market all our up for and networking opportunities will open projects and global logistics services forwarder freight Transitex, targets. revenue Mersin. in Miami, Manchester and new offices as the number one ranked currently are worldwide. We cargo reefer in offices our volume further by opening new Transitex plan to grow logistics solutions to Yılport integrated major trade nodes and provide port and backyards in the Gebze and Gemlik locations of Yılport, and Yılport, of and Gemlik locations Gebze in the port and backyards Dear Business Partners, expansion. Combining is an important factor in our global Logistics of Group to YILDIRIM but also in regard and Transitex, Logistics between transportation container has been providing Logistics Eti In 2019, we transported around 70,000 TEU general and 30,000 TEU TEU general and 30,000 70,000 we transported around In 2019, develop 3PL logistics systems and improve integration with operations with operations integration develop 3PL logistics systems and improve We think of global logistics not only in the framework of Yılport, Eti Eti Yılport, global logistics not only in the framework of of think We Cihan AKIN Companies. As we expand our commercial network, more business network, more Companies. As we expand our commercial our service scale and develop new logistics projects to reach more more to reach projects scale and develop new logistics our service Companies. of Holding and YILDIRIM Group Yılport of customers worldwide. companies. the overall logistics levels and reducing service improving continuously to continued the logistics group In 2019, YILDIRIM Group. of cost Turkey contraction in fleet. Despite the economic and truck contractors and opened three to grow continued the logistics group, of company Sincerely, Since its inception, the logistics groups’ main objectives have been the logistics groups’ its inception, Since 2019, Eti Logistics successfully carried out its mission with its own carried out its mission successfully Logistics Eti 2019,
%
LOGISTICS 8 REVENUE CONSOLIDATED GROUP YILDIRIM THE LARGEST PORT SERVICE LOGISTICS RANKED PROVIDER THROUGHPUT IN BY TURKEY 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP THE FIRST FULLY THE FIRST FULLY MINERAL AUTOMATED AND STORAGE IN FREIGHT STATION TURKEY [LOGISTICS] 94 LOGISTICS 97 OPERATIONS. KNOW-HOW AND KNOW-HOW TECHNOLOGICAL GLOBAL LOGISTICSGLOBAL TRANSITEX OFFERS INFRASTRUCTURE FOR INFRASTRUCTURE 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP platforms) perishable cargo fresh food, seafood, health food, to become one of the industry food, to become one of leaders in health food, seafood, fresh Expand presence by opening new offices on major trade nodes opening new offices by Expand presence as such commodity and products differentiated of Focus on transportation Leverage logistics collaboration with YILDIRIM subsidiaries logistics collaboration Leverage air cargo volume Increase Increase contracted cargo customers by customer-focused operations cargo customers by customer-focused contracted Increase logistics depots, (warehouses, supply chain projects Invest in mid-stream Seek trading opportunities hinterlands and gain a competitive advantage by proximity over competition in by proximity and gain a competitive advantage hinterlands penetration. terminals for deep hinterland corridors by rail and inland intermodal the accessibility of the ports to link supply chain and provide customized logistics customized ports to link supply chain and provide the the accessibility of technological infrastructure that produces fast and professional solutions to solutions professional and fast produces that infrastructure technological and to maintain in operation and utilization productivity technology to increase networks. The main hinterland strategy of Logistics Group is to capture immediate capture to is Group Logistics of strategy hinterland main The networks. all Yılport regions. For distant hinterlands, our strategic approach is to improve approach our strategic hinterlands, For distant regions. all Yılport regions. We believe that the success of a port depends on its ability to integrateon its ability to a port depends the success of believe that We regions. and players within the logistics transport nodes other well as its ability to utilize solutions to Yılport terminals around the world. The second objective is to expandto is objective second The world. the around terminals Yılport to solutions develop will we suitable, is infrastructure railroad where regions In solutions. effectively into the networks of business relations that shape supply chains, as that relations of business the networks effectively into customer demands. In 2020, we will complete by enhancing our back-office customer demands. In 2020, effective communication with our customers. effective communication In 2020, we have two main objectives. The first is to provide integrated logistics integrated provide to is first The objectives. main two have we 2020, In Logistics Group will continue to promote hinterland development of Yılport Yılport of development hinterland to promote will continue Group Logistics We will focus on the following strategy to grow Transitex in 2020 and beyond: Transitex to grow strategy will focus on the following We At Transitex, our most important difference is the experience, knowledge and is the experience, knowledge difference our most important Transitex, At Transitex’s global presence. global Transitex’s • • • • • • • 2020 GOALS AND EXPECTATIONS AND 2020 GOALS 2020. GROWING INGROWING WILL CONTINUE HINTERLANDS OFHINTERLANDS LOGISTICS GROUPLOGISTICS ACTIVE REGIONS IN REGIONS ACTIVE logistics services company of the of company logistics services grow to continued logistics group, in Berlin, APAS Show in São Paulo, in Berlin, APAS in 2019. to provide transportation services in services transportation to provide Logistica trade fairs, such as Fruit Transitex cargo reefer the volume of 10% has grown Europe transported from Elazığ and carried 10,000 cubic meters cubic Elazığ and carried 10,000 Rotaport. Expoalimentaria in Lima and Fruit exporters, trading in Latin American exporters, trading in Latin Miami, Manchester and Mersin. As we and opened three new offices in new offices and opened three number the planning to become are of fuel in 2019. We have also begun have also begun We fuel in 2019. of all European one logistics partner of countries, we exhibited at major food major food at we exhibited countries, Attraction in Madrid in 2019. As a result, As a result, Attraction in Madrid in 2019. Transitex, freight forwarder and global forwarder freight Transitex, TEU 40 TONS IN 2019 RAILWAY RAILWAY TRANSPORT CONTAINERS % TRANSPORTED TRANSPORTED GENERAL CARGO TRANSPORTATION VOLUME GROWTH GROWTH VOLUME 181,000 360,000 loading. Eti Logistics provided fuel provided Logistics loading. Eti in Gemlik, including 17,000 third party) third in Gemlik, including 17,000 freight forwarder of fresh cargo in Brazil. cargo fresh of forwarder freight were transported. In addition, 365,000 transported. In addition, 365,000 were and Gebze in Yılport’s was provided tons of general cargo transportation transportation general cargo tons of in 2019, transport volume increased container tons, including 7310 tons of to the fuel services transportation reaching 270,000 tons. In Gemlik, 270,000 reaching mining depot metals and mine handling projects around the world. around projects In 2019, a total of 181,000 TEU 181,000 a total of In 2019, 2019 HIGHLIGHTS engineering and major construction engineering and major construction Gemlik locations. Eti Logistics railway Logistics Eti Gemlik locations. 311,000 a volume of reached services of bulk ship tons 79,500 stuffing and YILDIRIM in Gemlik and of stations special sized cargo for general industry, general industry, for cargo special sized containers (125,000 in Gebze, 56,000 56,000 in Gebze, (125,000 containers Transitex also provides transportation of of transportation also provides Transitex land, sea or air and make them land, sea or air and make logistics solutions through multimodal logistics solutions through in fruit transport from Portugal and Portugal in fruit transport from involving global transportation by involving global transportation for land transportation and operates and operates land transportation for forwarder that provides door-to-door door-to-door provides that forwarder warehouses in Latin America and Africa. in Latin warehouses world. Transitex provides full-service full-service provides world. Transitex transportation and is currently ranked ranked and is currently transportation railway, truck and sea freight logistics. and sea freight truck railway, platforms. With over 40 international With over 40 international platforms. Established in 2002, Transitex is a Established in 2002, Transitex It operates a logistics platform in Elvas a logistics platform It operates global logistics operator and freight and freight global logistics operator as the number one logistics operator as the number one logistics operator and warehouse in Porto, Portugal. Portugal. in Porto, and warehouse and competitive logistical solutions logistical and competitive obtainable from anywhere around the around anywhere obtainable from offices in Europe, Africa, LATAM and LATAM Africa, in Europe, offices Spain to Brazil and the second largest largest Spain to Brazil and the second TRANSITEX Asia, its mission is to provide reliable reliable Asia, its mission is to provide Transitex specializes in perishable food in perishable food specializes Transitex The company owns fleets of trucks owns fleets The company 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in the mining storage area. Using state- in the mining storage area. white and 169 blue-collar employees. Etiwhite and 169 blue-collar with its own TTs and trucks. The and trucks. with its own TTs trucks, 3 fuel tankers, 74 railway wagons, 74 trucks, 3 fuel tankers, transport services to Eti Krom and other Krom to Eti transport services transportation services to Yılport Gemlik to Yılport services transportation transportation services to Yılport Gebze Gebze to Yılport services transportation in theterminal and moves containers yard and inland terminals of Yılport Yılport of and inland terminals yard railroad at three locations (Gebze, Gemlik (Gebze, locations three at railroad run block trains and contracted wagons,run block trains and contracted Logistics’ equipment park consists of 30 of equipment park consists Logistics’ Eti Logistics also provides railroad railroad also provides Logistics Eti Established in 2011, Eti Logistics is the Logistics Established in 2011, Eti ETİ LOGISTICS strategic logistics services provider to provider logistics services strategic party and third companies Group and Elazığ). Eti Logistics operates with 11 operates Logistics and Elazığ). Eti one maneuvering locomotive and oneone maneuvering locomotive container handling equipment. container customers in Turkey using its own customers in Turkey company also provides stevedoring and stevedoring also provides company customers. Eti Logistics provides ground ground provides Logistics customers. Eti Yılport Holding, as well as YILDIRIM Yılport [LOGISTICS] 96 INTERNATIONAL TRADE 99 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP logistics arms. in 2019, especially when the market is facing challenges. Therefore, is facing challenges. Therefore, especially when the market in 2019, is able to provide its customers with just-in-time delivery service on a delivery service its customers with just-in-time is able to provide including products from Eti Krom, Yılkrom, Voskhod Chrome, Tikhvin Chrome, Voskhod Yılkrom, Krom, Eti from including products house, which also resulted in higher efficiency for these departments. in higher efficiency house, which also resulted by Polymetcore. Polymetcore is fortunate enough to enjoy competitive enough to enjoy competitive is fortunate Polymetcore by Polymetcore. ferroalloy industry. This has also reflected in the financials in form of form in the financials in This has also reflected industry. ferroalloy Polymetcore actively also attended conferences globally with other conferences actively also attended Polymetcore Ferroalloy, Vargön Alloys and Kluychevsky Ferroalloy Plant are marketed marketed Plant are Ferroalloy Alloys and Kluychevsky Vargön Ferroalloy, Polymetcore is currently trading with more than 50 countries, on four on four than 50 countries, trading with more is currently Polymetcore Polymetcore on the map as an important name in the international on the map as an important name in the international Polymetcore Polymetcore Trading SA was established in 2014 as the commodity sales as the commodity SA was established in 2014 Trading Polymetcore It was an eventful consolidation year for Polymetcore both locally and Polymetcore year for It was an eventful consolidation globally. During the development year of 2018 and consolidation year of year of 2018 and consolidation During the development year of globally. global level. Today Polymetcore plays a central role in all of YILDIRIM in all of role plays a central Polymetcore global level. Today different continents. Products from other subsidiaries of YILDIRIM Group of YILDIRIM Group other subsidiaries from continents. Products different Group’s trade flows and has more recently become the interface of the interface become recently trade flows and has more Group’s synergy and expertise from e.g. the port management, shipping and e.g. the port management, shipping and and expertise from synergy strong increase in asset size, turnover, profitability, as well as equity. profitability, turnover, in asset size, increase strong advantages thanks to the vertical integration of YILDIRIM Group, the YILDIRIM Group, of advantages thanks to the vertical integration and its global awareness in terms of commodity market. commodity of in terms and its global awareness arm for mining and metals, coal and coke, as well as fertilizer sectors fertilizer as well as and coke, mining and metals, coal arm for of employees as well as banking relations, which further has put as banking relations, employees as well of of YILDIRIM Group. The original idea of establishing Polymetcore in establishing Polymetcore The original idea of YILDIRIM Group. of create new client relationships. create company what comes to strong increase in handled volumes, number increase to strong comes what company Switzerland was the economic, social, and legal stability of the country the country stability of social, and legal was the economic, Switzerland 2019, many of the Polymetcore departments received reinforcements. reinforcements. departments received the Polymetcore many of 2019, YILDIRIM Group subsidiaries in order to strengthen existing bonds and to strengthen subsidiaries in order YILDIRIM Group YILDIRIM Group towards all internal and external parties. all internal towards YILDIRIM Group OUR GLOBAL TRADING BRAND POLYMETCORE TRADING BRAND POLYMETCORE OUR GLOBAL POLYMETCORE TRADING SA POLYMETCORE INTERNATIONAL TRADE INTERNATIONAL [INTERNATIONAL TRADE] [INTERNATIONAL SALES OF COMMODITIES OBTAINED FROM FROM OBTAINED OF COMMODITIES SALES BOTH INTERNAL AND EXTERNAL SOURCES. INTERNAL AND EXTERNAL BOTH UNDERTAKES THE GLOBAL MARKETING AND AND MARKETING GLOBAL THE UNDERTAKES This enabled Polymetcore to move and manage more processes in- processes to move and manage more This enabled Polymetcore The importance of face-to-face client contact was proven once again once was proven client contact face-to-face of The importance Thanks to its international sales and distribution networks, Polymetcore sales and distribution networks, Polymetcore Thanks to its international Throughout the years, there has been a fast development within the has been a fast development the years, there Throughout 98 YILDIRIM TECHNOLOGY 101 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP Ömer ARTUK MANAGER GENERAL TECHNOLOGY YILDIRIM live in 2018 for the first time in Yılport Turkey, the project was realized realized was the project Turkey, Yılport the first time in live in 2018 for the online system. languages, both over the phone and via infrastructure in Turkey and abroad. We have expanded our security We abroad. and in Turkey infrastructure in Yılmaden Holding, Eti Krom, Gemlik Gübre, and our companies and our companies Gemlik Gübre, Krom, Holding, Eti in Yılmaden Turkish for a necessity These will become in Turkey. is continuing our carried out works to improve We groups. and projects infrastructure workshops blockchain parallel, we organized things. In internet of is widespread. YILDIRIM Technology will move forward with all our will move forward YILDIRIM Technology is widespread. by augmenting technology. In parallel, we have expanded our electronic we have expanded our electronic In parallel, by augmenting technology. for Yılport operations, management and IT groups. As part of this As part of management and IT groups. operations, Yılport for technology support function with Russian language support. We are are language support. We technology support function with Russian the World Economic Forum supply chain. We have accelerated the have accelerated Forum supply chain. We Economic the World projects under the title of Atlas Business Transformation Project. Went Went Project. Atlas Business Transformation under the title of projects to expand our technical our efforts In addition, we accelerated process. operations to in our mining importance great we attach that measures systems both in and personnel monitoring and radio communication subsidiaries in their native now able to support our Russian-speaking remote support and service quality. We have expanded our centralized have expanded our centralized We quality. support and service remote to the labor greatly we can contribute that consider We rapidly today. Dear Business Partners, In 2019, YILDIRIM Group continued one of its largest technology technology its largest one of continued YILDIRIM Group In 2019, enterprises in the near future. We have already realized many of them. many of realized have already We enterprises in the near future. and artificial intelligence, technologies such as blockchain, emerging evaluation studies for Robotics Process Automation, which is expanding Automation, Process Robotics studies for evaluation development, Yılport is conducting evaluation studies to take part in studies to take evaluation is conducting development, Yılport We came one step closer to our target in the business transformation in the business transformation one step closer to our target came We with our and abroad in Turkey supported many projects technically We Ömer ARTUK saving and the more effective use of workforce when this process when this process of workforce use effective saving and the more path. growth supporting YILDIRIM Group's strength, abroad such as Polymetcore and Yılport Iberia, as major breakthroughs. breakthroughs. Iberia, as major and Yılport such as Polymetcore abroad out of galleries. We have made plans for the e-transformation that that the e-transformation have made plans for galleries. We out of Sincerely, As YILDIRIM Technology, we continued to observe closely the we continued As YILDIRIM Technology, Tradelens Blockchain platform. We support the Blockchain initiative in initiative support the Blockchain We platform. Blockchain Tradelens 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP [YILDIRIM TECHNOLOGY] [YILDIRIM 100 YILDIRIM TECHNOLOGY 103 2020 GOALS AND2020 GOALS EXPECTATIONS be effective service organization, be effective service organization, international subsidiaries with subsidiaries with international the best way. perspective. Our other goals will goals will perspective. Our other the momentum we achieved. we achieved. the momentum and improving infrastructure by by infrastructure and improving and improvement efforts in efforts in and improvement studies from a technological a technological studies from evaluating cloud technologies in cloud technologies in evaluating our information security and security and our information In this compliance processes. we will support business context, and sustainability continuity continue in our domestic and and in our domestic continue In 2020, our Atlas Project will will Project our Atlas In 2020, We will accelerate distribution distribution will accelerate We information security governance system system security governance information in 2020. improved the overall information information the overall improved based environments. Thus, we have have Thus, we environments. based the protection of personal data (KVKK) (KVKK) data personal of the protection technical control systems like SIEM SIEM systems like technical control measures. We will continue our our will continue We measures. processes. Also we deployed some Also we deployed some processes. more than 600 employees in 2019. in 2019. than 600 employees more During 2019 we gave consultancy to to During 2019 we gave consultancy established our Global Information our Global Information established We started global information risk risk started global information We We will continue our efforts in 2020, 2020, in our efforts will continue We system and vulnerability scan systems. system and vulnerability scan systems. security risks on all our business our business security risks on all security measures. Our department, Our department, security measures. training to giving security awareness, about technical and administrative about technical and administrative analyses with some of our companies. our companies. of analyses with some aligned with our 2018-2022 strategy. strategy. aligned with our 2018-2022 actions to strengthen our information our information strengthen actions to our group companies for the law on the law on for companies our group operations to have a resilient resilient to have a operations (Security Incidents Events Management) Management) (Security Incidents Events our aim is determining our information our information our aim is determining Security group and started to take and started to take Security group This project will continue globally and globally and will continue This project 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP DIGITAL DIGITAL DECADE. IS AT THE HEART THE IS AT OF YILDIRIM'S NEW YILDIRIM'S OF TRANSFORMATION TRANSFORMATION VISION FOR THE NEW FOR VISION integration. This provides end-to-end end-to-end This provides integration. INFORMATION SECURITY INFORMATION way to a successful roll-out path in in path roll-out way to a successful traceability. The first rollout project of of rollout project The first traceability. project started with a limited scope, scope, started with a limited project Bolívar was completed in the final in the final completed Bolívar was Information security is one of the most the most security is one of Information enlarged and it is going strong in the in the and it is going strong enlarged days of 2018. Yılport Iberia was the first first Iberia was the Yılport 2018. days of system is activated with invoice with invoice is activated system crucial aspects of today’s technology today’s technology crucial aspects of 2020. Atlas international roll-out in 2019. The The in 2019. roll-out Atlas international Yılport Holding’s SAP project in Puerto Puerto in Holding’s SAP project Yılport infrastructure renewal works in parallel works in parallel renewal infrastructure invoicing, sales, accounting and and invoicing, sales, accounting for 16 companies. These modules have These modules have 16 companies. for DIGITAL TRANSFORMATION AT AT TRANSFORMATION DIGITAL using live SAP systems in 2019. In the In the in 2019. using live SAP systems invoicing Automatic under one roof. with this project, we initiated the the we initiated with this project, investments that with supporting our transition to SAP S/4 HANA, to simplify simplify to SAP S/4 HANA, to transition standardize processes, the business the managerial accelerate them, and thus supporting the centralization of of thus supporting the centralization productive in 2019. Main objective is is Main objective in 2019. productive resources module and interim modules, module and interim modules, resources expense modules were inaugurated inaugurated expense modules were decision-making mechanism. In parallel In parallel mechanism. decision-making with Gemlik Gübre, gained momentum first phase, purchasing, maintenance maintenance first phase, purchasing, and our new urea production facility. production and our new urea and repair, warehouse operations, operations, warehouse and repair, with the human also been integrated our Group through shared systems systems shared through our Group commissioned. This project became became This project commissioned. Solventaş terminals in Turkey began began in Turkey Solventaş terminals YILPORT HOLDING Yılport Gebze, Gemport, Rotaport, and and Rotaport, Gemport, Gebze, Yılport DIGITAL TRANSFORMATION AT AT TRANSFORMATION DIGITAL under the supervision and control of of under the supervision and control manage it as effectively as possible. manage it as effectively Next phase of Atlas Project at Gemlik Gemlik at Atlas Project Next phase of (HR), (PP), Human Resources Production extensive scope. In addition, we have we have In addition, extensive scope. GEMLİK GÜBRE Maintenance Repair (PM) modules were modules were (PM) Repair Maintenance Material and Inventory Management and Inventory Management Material Budget (CO), Management Accounting Within the scope of the project, the project, of Within the scope set our software standards and fixed and fixed standards set our software Gübre started during late 2018 2018 started during late Gübre Control (FM), Project Management Management Project (FM), Control our shortcomings in order to create to create order in our shortcomings (MM), Financial Accounting (FI), (FI), (MM), Financial Accounting (PS), Quality Management (QM), Sales-Distribution (SD), Procurement, Sales-Distribution (SD), Procurement, Architecture to create, improve, and and improve, to create, Architecture Yılmaden Global Enterprise Software Global Enterprise Software Yılmaden YILDIRIM Technology management. management. YILDIRIM Technology large group. Yılport Holding successfully successfully Holding Yılport group. large implemented the first phase of the of the implemented the first phase important steps of the project, Yılmaden Yılmaden the project, important steps of have provided support as YILDIRIM support as YILDIRIM have provided DIGITAL TRANSFORMATION AT AT TRANSFORMATION DIGITAL ETİ KROM under the leadership of YILDIRIM YILDIRIM under the leadership of whole team. In 2019 project became became whole team. In 2019 project transformation and announced project project and announced transformation project started with a pleasant kick-off started with a pleasant kick-off project meeting. At the meeting, Yılmaden Holding CEO Dr. Alp Malazgirt Alp Malazgirt Dr. Holding CEO Eti Krom teams in 2019. One of the the One of teams in 2019. Krom Eti SAP Holding’s transition to Phase 1 of emphasized the importance of digital digital of the importance emphasized an productive with efficient and CRM project. In this project, we we In this project, CRM project. objectives, wishing success for the the for objectives, wishing success Technology. The project continued in full swing swing in full continued The project Holding and Yılmaden Technology,
2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP its scope. This year we developed This year we developed its scope. by YILDIRIM Technology, widening widening by YILDIRIM Technology, by following the global technological the global technological by following the coverage of Atlas reached over our over our Atlas reached of the coverage transformation project by YILDIRIM by YILDIRIM project transformation regional projects have been carried have been carried projects regional Krom, Polymetcore and Yılport Iberia Iberia and Yılport Polymetcore Krom, In the third year of its activities, its activities, year of In the third 2019 HIGHLIGHTS efforts to support the needs of the of the to support the needs efforts developments as closely as possible. group in the most effective manner manner in the most effective group ATLAS DIGITAL ATLAS side functions. Gemlik Gübre, Eti Eti side functions. Gemlik Gübre, Group senior management, Project senior management, Project Group applications to support many of our our to support many of applications out successfully. With these projects, With these projects, out successfully. TRANSFORMATION PROJECT TRANSFORMATION Started in 2016 as a digital business Started in 2016 as a digital business Atlas accelerated greatly in 2019 in 2019 greatly Atlas accelerated YILDIRIM Technology continued its its continued YILDIRIM Technology [YILDIRIM TECHNOLOGY] [YILDIRIM 102 [CONSTRUCTION] CONSTRUCTION
Kadir OKÇU CONSTRUCTION & INFRASTRUCTURE EXECUTIVE DIRECTOR
Dear Business Partners,
YILDIRIM Group’s Industrial Construction Division oversees the construction projects for the Group’s diversified businesses in Turkey and abroad; including ports, fertilizer warehouses, coal and coke warehouses, metals and mining facilities and more.
In 2019, we successfully completed the warehouse, port and berth construction projects of YILDIRIM Group of Companies' industrial subsidiaries.
We engage in the high quality construction works of YILDIRIM Group that strengthen the activities of our subsidiaries in a sustainable and cost-effective manner.
We completed the infrastructure constructions of Yılport ports and terminals in 2019, in the new phases of port investments in Turkey, Iberia, Scandinavia and Latin America.
We have completed and delivered new warehouse constructions that expand the logistics capacity of Gemlik Gübre.
We also completed the project processes and obtained permits in some industrial structures to be constructed.
In 2019, we have also accelerated our construction investments abroad, mainly in the port expansion and rejuvenation projects.
The new quay, container stock area and building construction of our foreign terminals are also closely followed by the industrial construction department of YILDIRIM.
As the Construction Department, we will continue to support YILDIRIM Group subsidiaries in their construction needs in 2020. We target supporting sustainable and steady growth of the Group in the upcoming year.
Sincerely, Kadir OKÇU
104 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT 105 CONSTRUCTION 107 idling areas, transformer station, cold cold station, transformer idling areas, port entrance and truck parking and port entrance Dredging the 8.5 kilometer long the 8.5 Dredging Infrastructure systems, pre-gate, OCR, systems, pre-gate, Infrastructure stacking area and to make the existing and to make stacking area access channel and maneuvering area channel and maneuvering area access continued in 2019. Work has been Work in 2019. continued carried out to expand the container efficient. more stacking area container 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in accordance with the regulations in with the regulations in accordance the region. port expansion project, a new quay port expansion project, existing infrastructure operational again operational existing infrastructure Within the scope of Phase 1 of the Phase 1 of of Within the scope continued in 2019. We plan to make the plan to make We in 2019. continued 450 meters is planned. of construction HUELVA CONTAINER TERMINAL, SPAIN CONTAINER HUELVA ECUADOR BOLÍVAR, PUERTO YILPORT PUERTO BOLÍVAR in 2019. The project is ongoing for 202. for is ongoing The project in 2019. been completed. Tender processes are are processes Tender been completed. detailed be established. In this context, works Construction been completed. have been established in accordance. have been established in accordance. building and facilities were started to facilities were building and undertaken. was finalized. RTG container stacking RTG was finalized. will be infrastructure with the entire to the existing container stacking to the existing container meters square 20,000 of total area project works and tender process have have works and tender process project project, the ground improvement of of improvement the ground project, maintenance building, inspection building, inspection maintenance context, the is finished. In this project Dredging work is continued in the port work is continued Dredging Detailed design phase is in progress for for is in progress Detailed design phase In the scope of the project, a total of a total of the project, of In the scope In order to obtain operational licenses licenses to obtain operational In order environmental impact assessment impact assessment environmental ground slots will be provided in addition slots will be provided ground Within the scope of the project, a the project, of Within the scope Within the scope of the port expansion the of Within the scope 1544 is completed, When the project We plan to increase the container the container plan to increase We stacking capacity from 2090 ground ground 2090 stacking capacity from when the slots slots to 3406 ground are ongoing for 2020. for ongoing are approximately 85,000 square meters of meters of square 85,000 approximately terminal the existing to the east of area electrical is established. All road, area systems and mechanical infrastructure at the port, detailed project studies the port, detailed project at and infrastructure systems continued. continued. systems and infrastructure ongoing for 2020. ongoing for (EIA) report of the project was finalized. was finalized. the project of (EIA) report capacity. Detailed design phase has Detailed design phase has capacity. will stacking area Container constructed. completed. Administrative building, building, Administrative completed. electrical of Rehabilitation construct. 90,000 cubic meters of dredging will be will dredging cubic meters of 90,000 2020. YILPORT HUELVA YILPORT AVEIRO YILPORT TARANTO YILPORT GÄVLE with e-RTG. Pre-gate, port entrance port entrance Pre-gate, with e-RTG. The arranged and optimized. were expansion project. Existing RTG Existing RTG expansion project. and truck parking and idling areas and truck parking and idling areas the train lines has been arrangement of optimized and made more efficient and made more optimized container stacking areas have been stacking areas container In 2019, detailed work has been carried In 2019, existing site capacity will increase from from existing site capacity will increase out within the scope of terminal of out within the scope completion of the construction, the the the construction, of completion LEIXOES CONTAINER TERMINAL, PORTUGAL TERMINAL, CONTAINER LEIXOES YILPORT LISCONT 1872 ground slots to 3347 ground slots. slots to 3347 ground 1872 ground 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP building and mechanical maintenance building and mechanical maintenance will continue in 2020 with the plan in 2020 with the plan will continue workshop was carried out. Also we workshop was carried out. Also we to complete in October 2020. Upon Upon in October 2020. to complete the 72,000 square meters of land to land to meters of square the 72,000 the capacity in order to create create to the capacity in order the existing substation out of the the out of the existing substation provided from the new transformer the new transformer from provided port stacking area and increasing and increasing port stacking area project of the terminal, moving the terminal, moving of project RTG container stacking areas was was stacking areas container RTG 2019 HIGHLIGHTS energy requirements of the port are the port are of requirements energy Within the scope of the expansion the expansion of Within the scope started to transform and improve improve and started to transform station. In 2019, the tender for the the tender for the In 2019, station. operations. Construction activities Construction activities operations. create the CFS area for 6+1 wide RTG 6+1 wide RTG for area the CFS create construction of the new administrative the new administrative of construction completed in October 2019. All of the the All of 2019. in October completed YILPORT LEIXÕES PROCESSES OF GROUP COMPANIES, PROVIDING AGILITY CONTROL. PROVIDING AND COST COMPANIES, OF GROUP PROCESSES CONSTRUCTION CONSTRUCTION IN DIVISION ENGAGES CONSTRUCTION GROUP’S YILDIRIM [CONSTRUCTION] 106 CONSTRUCTION 109 is to increase its production its production is to increase groups, its product in all of its marketing efforts in order in order efforts its marketing for its high its customer base better to the needs of Elazığ Elazığ of better to the needs municipalities. In addition, we translates to environmental to environmental translates products with lower costs. products to boost sales and expand expand to boost sales and friendly production. The The friendly production. and deplete current stocks of of stocks current and deplete aim to produce higher quality quality higher aim to produce slag. The recycling of slag also slag also of slag. The recycling company also aims to intensify to intensify company also aims quality products in 2020. The The in 2020. quality products responding towards efforts are Eti Beton’s main target for 2020 for 2020 main target Beton’s Eti Province, and surrounding and surrounding Province, 2020 GOALS AND GOALS 2020 EXPECTATIONS 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP industry, in terms of evaluation of waste. of evaluation in terms of industry, bear the CE marking to indicate their their marking to indicate bear the CE the Turkish Standards Institute (TSE) Institute Standards and the Turkish meters of paving stones, curbstones, andmeters of slag. from produced rain gutters were mix concrete and concrete curbstones concrete and mix concrete by certified are Beton by Eti produced Eti Beton meets the needs of concrete concrete Beton meets the needs of Eti an example in the Beton constitute Eti 2019 HIGHLIGHTS environmental and health conditions. and health environmental grain size and then they were utilized were and then they grain size slag waste was classified according to according slag waste was classified at facilities and mines. The activities of facilities and mines. at as aggregate in the concrete plant. In in the concrete as aggregate and disciplined team. All of the ready ready the of team. All and disciplined (EC) directives for basic safety, basic safety, for directives (EC) concrete and about 40,000 square square and about 40,000 concrete creative solutions as well as its expert as its as well solutions creative Commission with European compliance 2019, 5,000 cubic meters of ready mix ready of cubic meters 5,000 2019, After the ferrochrome production, the production, After the ferrochrome batching plant, a concrete paving paving plant, a concrete batching ferrochrome production activities. production ferrochrome ETİ BETON were handled. were paving stones and curbstones by and curbstones paving stones during the slag generated recycling respected leader in the industry. The leader in the industry. respected Eti Beton established in 2011 to produce produce in 2011 to Beton established Eti mining and ore chrome Krom’s Eti mobile one Beton comprises Eti mine in the underground Krom’s Eti as well as a concrete Elazığ Province, Beton develops quality products as a Beton develops quality products shoring and retaining wall projects wall projects and retaining shoring stone plant, a curbstone machine and stone plant, a curbstone flexible business structure, inventive and flexible business structure, aggregate, ready mix concrete, concrete concrete mix concrete, ready aggregate, an aggregate plant located on the site on plant located an aggregate of Eti Krom’s ferrochrome plant. Eti plant. Eti ferrochrome Krom’s Eti of concrete batching plant located at at plant located batching concrete company derives strength from its its from derives strength company Sori region of the Alacakaya district in of Sori region in Marmara Shipyard was transferred was transferred in Marmara Shipyard fertilizer storages were completed. completed. storages were fertilizer works have been completed. Rota Rota works have been completed. works of the new cafeteria were were the new cafeteria works of to Gemlik Gübre. The project and and The project to Gemlik Gübre. new transformer station works have station new transformer marine discharge works have been have been works marine discharge Route bridge repair and reinforcement and reinforcement bridge repair Route disassembly procedures have been have been disassembly procedures GEMLİK GÜBRE successfully undertaken. Gemlik Gemlik undertaken. successfully and building project refining Gübre finished. additional warehouse, bonded area and bonded area additional warehouse, completed. Project works and works and Project completed. additional works of construction workshop and cafeteria of consisting factory general plans, Urea completed. YILPORT ROTAPORT The project, license and construction construction and license The project, complex The steel construction been completed. Additional closed been completed. been completed. Phase 1 construction Phase been completed. was the project and has been completed works have been finished. Gemport warehouses at Gemport’s northern site at warehouses constructed. were works are completed by 90%. Yılport Yılport by 90%. completed works are refinement building project works have building project refinement Phase 2 CFS site construction has been site construction Phase 2 CFS E-5 Terminal construction works were construction E-5 Terminal delivered to Çolakoğlu Metalurji A.Ş. to Çolakoğlu delivered Gemport’s Phase 3 shoring wall construction Gemport portal crane field are constructed. Gemport Phase 1 constructed. are construction has been completed in has been completed construction has been completed. construction Gemport exit weighbridges completed. completed by 85%. Common road project road by 85%. Common completed 2019. The gas station area and border and border area The gas station 2019. YILPORT GEMPORT T2 site’s CFS area into RTG blocks have into RTG area T2 site’s CFS 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in 2019. Infrastructure and superstructure Infrastructure in 2019. works of the upper CFS area were area the upper CFS works of works started on 2 September 2019. works started on 2 September 2019. was undertaken between 29 March between 29 March was undertaken transferred to its new location. The to its new location. transferred project works required to convert the to convert works required project meters of material were dredged. The dredged. were material meters of Phase 1 dredging of -14.5 meters was meters -14.5 of Phase 1 dredging second stage was finished between 10 stage was finished second storage area construction is planned. is construction storage area according to the plans in 2020. to the plans in according completed and the open shed wascompleted cubic meters of material were dredged. dredged. were material cubic meters of completed in two stages. The first phase in two stages. completed Shoring wall construction was completedShoring wall construction [CONSTRUCTION] 2018 and 31 May 2018. 7,268,526 cubic 7,268,526 2018 and 31 May 2018. April 2019 and 31 May 2019. 2,564,102 2,564,102 April 2019 and 31 May 2019. YILPORT GEBZE 16 December 2019. We will proceed will proceed We 2019. 16 December The tender process for construction construction for The tender process submitted on were The tender offers 108 CONSTRUCTION 111 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP
th and 26 th floor is residential. There is residential. There floor is th lot has a capacity of 488 vehicles, and alot has a capacity of helipad is built on the roof. footprint. facades of all building floors. The parkingfacades of use. The floors between 13 and 21 use, waste management, and carbon the 27 to meeting rooms. The 25 to meeting rooms. the evaluation of criteria such as energy criteria such as energy of the evaluation refreshments during the day. refreshments dynamicthat, In addition to presentation. after LEED Gold certification receive Four training and education halls named Four training and education LED lighting system is installed on the YILDIRIM Besides all these features, designed as meeting rooms and and rooms designed as meeting green building. The headquarters will green floors are management floors whereas management floors whereas floors are floors of the building are exclusively exclusively of the building are floors allocated 24 are floors between 22 and and effective work as its corporate corporate work as its and effective are designed as office spaces. Three Three spaces. designed as office are an auditorium in the building, named & COO President Vice the late after the world, of universities prestigious after meals and serves that and a cafeteria a dynamic video and the facade features of YILDIRIM Group, Mehmet YILDIRIM. YILDIRIM. Mehmet YILDIRIM Group, of care, as the Group regards efficient regards as the Group care, For this reason, prime principle. culture’s a as considered are work areas common Three YILDIRIM Tower. of feature central collaboration areas. collaboration Group’s to YILDIRIM commissioned 20 floors of the building are are of the building 20 floors A winter garden is placed on the facade is placed A winter garden YILDIRIM Tower was planned with great was planned with great YILDIRIM Tower Tower has been constructed as a has been constructed Tower 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP high, whereas the ground floor is 7 the ground high, whereas by a beautiful nature, providing providing by a beautiful nature, business partners work with efficiency business partners work with efficiency been designed as the base of operations operations been designed as the base of worthy of YILDIRIM Group. worthy of the indoor area is measured at 36,760 36,760 at is measured the indoor area technologies, based on the vision set by technologies, based on the vision set by meters high. recreational, cultural, sports, and leisure cultural, sports, and leisure recreational, Bakırküre Architects. The headquarters Architects. Bakırküre In order to bring its corporate culture culture to bring its corporate In order entrance to the building. entrance efficiently under one roof, YILDIRIM roof, one efficiently under Maslak 1453, a living space surrounded surrounded space a living Maslak 1453, Our building is located at the heart of the heart of at Our building is located square meters. Each floor is 3.5 meters 3.5 meters. Each floor is square Group constructed its new headquarters constructed Group Towering project. Maslak 1453 Group’s are all located in the lobby floor as the located all are activities to our employees. and comfort. a platform where our colleagues and our colleagues where a platform architecture and smart building architecture architecture and design work of and design work of architecture and inaugurated in March 2018. in March and inaugurated combines principles of contemporary contemporary of principles combines 28 floors high, the headquarters has 28 floors high, the & CEO Robert Yuksel Yildirim. Yuksel Robert & CEO An exhibition area, reception, guest area guest area reception, An exhibition area, YILDIRIM Tower is designed to provide provide is designed to YILDIRIM Tower YILDIRIM Group of Companies President President Companies of YILDIRIM Group YILDIRIM Group undertook interior YILDIRIM Group with in cooperation YILDIRIM Tower YILDIRIM Tower is located in Ağaoğlu in Ağaoğlu is located YILDIRIM Tower OF EFFICIENCY AND COMFORT. OF EFFICIENCY COLLEAGUES AND BUSINESS PARTNERS A PLATFORM A PLATFORM PARTNERS AND BUSINESS COLLEAGUES YILDIRIM TOWER IS DESIGNED TO PROVIDE OUR PROVIDE TO IS DESIGNED TOWER YILDIRIM [CONSTRUCTION] The building is 101 meters tall, and YILDIRIM TOWER YILDIRIM 110 INDUSTRIAL CULTURAL DEVELOPMENT 113 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP S. Buse YILDIRIM S. ARTS & CULTURE DIRECTOR, MANAGING itself to modern dance enthusiasts with various workshops in autumn. itself to modern dance kindergartens. Hosting organic farming, Saklı Kundura also offers also offers farming, Saklı Kundura Hosting organic kindergartens. heritage on UNESCO World Day for Audiovisual Heritage. We selected selected Audiovisual Heritage. We Day for World heritage on UNESCO from the archive. Papers and photographs are still being restored. We We still being restored. Papers and photographs are archive. the from with peacocks, rabbits, and pheasants. While oral history interviews with peacocks, some accounts utilized We Beykoz. in the history of interested who are workshops and talks is gaining its new identity on the thin line between identity on the thin line between workshops and talks is gaining its new transformed into an organic living space for eco-tourism. It hosted eco-tourism. for living space into an organic transformed the Journey to the Moon theme for November-December program program November-December the Journey to the Moon theme for perception of time and space in relation to Beykoz Kundura for those for Kundura to Beykoz relation in time and space of perception is planned to be the exhibition that for preparations made preliminary program involving special curations with restored classical films, various with restored involving special curations program Kundura Cinema ended the summer season with jazz films under stars Cinema ended the summer season with jazz films Kundura Dear Business Partners, It is also getting ready for its soft opening in spring 2020 with modern opening in spring 2020 its soft for It is also getting ready dance performances designed for the venue itself. Saklı Kundura is Saklı Kundura the venue itself. for designed performances dance season on October 2019 with restored films that are considered cultural considered are films that season on October 2019 with restored workshop and introduced step in summer 2019 with an intense dance film and TV productions and shootings, as well as corporate events. corporate shootings, as well as and film and TV productions accommodation in tents, providing a peaceful environment in the city in environment a peaceful in tents, providing accommodation area had not been used since Sümerbank period. It is landscaped and had not been used since area at full speed. The spaces are staying alive with new stories by hosting staying are full speed. The spaces at events, open-air theater As part of art house and cultural center. started the 2019-20 2019-20 season. We for and started to prepare opened in 2020. In the upcoming seasons, with the opening of Kundura Kundura seasons, with the opening of In the upcoming opened in 2020. of culture and arts, which film lovers of Istanbul frequent. In 2019, the In 2019, of Istanbul frequent. film lovers and arts, which culture of This green Kundura. Beykoz of opened in 2019 as the hidden corner culture and arts. culture continue, we held a talk as part of Beykoz Symposium. We talked on the talked We Symposium. Beykoz we held a talk as part of continue, corporate events, yoga workshops and story reading sessions of sessions of events, yoga workshops and story reading corporate commemorating the 1969 moon landing. Kundura Stage took its first the 1969 moon landing. Kundura commemorating Stage, Beykoz Kundura will continue contributing to the creative sector, sector, to the creative contributing will continue Kundura Stage, Beykoz Sincerely, Buse YILDIRIM S. After Kundura Cinema’s successful first season, it became a destination first season, it became a destination Cinema’s successful After Kundura The project of preserving and developing Beykoz Kundura continues continues Kundura and developing Beykoz preserving of The project 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP [INDUSTRIAL CULTURAL DEVELOPMENT] CULTURAL [INDUSTRIAL 112 INDUSTRIAL CULTURAL DEVELOPMENT 115 into a movie theater with the purpose with the purpose into a movie theater thematic selections, its curatorial factory workers in the industrial era. industrial era. in the factory workers talks, premieres, 3 silent films, film for held in collaboration factory tour were Midsummer Night’s Cinema” “A festival KUNDURA CINEMA KUNDURA which talks about films are also held. also held. which talks about films are within workshops and tours took place Images” theme with with “Moving with MasterCard. 2 DJ performances, with 6 screenings, today. Movie screenings were held for held for were screenings Movie today. July 2019 with on 11-14 took place the slogan #sonikiüçdört. Kundura perspectives for watching films with films with watching perspectives for and additional events. programs 2018 to 30 17 November from place music videos in 2019. Elle Magazine, Magazine, Elle in 2019. music videos Beykoz Kundura served as a living served as a living Kundura Beykoz our present inspired community Beykoz alternative Cinema offers Kundura Cinema’s first season took Kundura with Hüsne Rhea Çiğdem. 6 screenings film Cinema’s outdoor Kundura Ben Deniz, Ceylan, Berdan Mardini, Mardini, Ceylan, Berdan Ben Deniz, their Zakkum filmed Doğuş, and during the factory period as it does as it does during the factory period Magazine, Filli Boya, Konfor Mobilya, Mobilya, Konfor Magazine, Filli Boya, space containing cultural venues venues cultural containing space in November Cinema opened its gates 3 live music performances screenings, successfully ended Cinema’s festival İrem Derici, Ziynet Sali, Tuğba Özay, Özay, Sali, Tuğba Derici, Ziynet İrem shoots in our premises in 2019. shoots in our premises XOXO Magazine, Vogue Turkey Turkey Vogue Magazine, XOXO activities. The boiler room is defined is defined activities. The boiler room It is turned the factory. as the heart of and 1100 guests in 4 days. of maintaining that tradition. Kundura tradition. Kundura maintaining that of 2018. It serves as an authentic place, in in place, It serves as an authentic 2018. AVVA, and Sketchers had photo had photo Sketchers and AVVA, June 2019. 142 screenings, 6 special 6 special screenings, 142 June 2019. 3 workshops were held for children children held for 3 workshops were 7 months. 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP KUNDURA CINEMA KUNDURA CINEMA for commercial films by Signal, films by Signal, commercial for when more pictures are filmed. are pictures when more Gelin” (03 Medya), “İstanbullu were Kundura during 2019 were “Cep “Cep 2019 were during Kundura (Dijital Süleymanoğlu” Herkülü: Naim (03 Medya), “Aşk Mucize” Koğuştaki Sanat (7. Gözüm” “İki Film Prodüksiyon), Daha” (Solis Film), “Grev”. Nefes (Most “Kurşun” (Gold Yapım), Kuş” Ertuğrul” (Bozdağ “Diriliş: Production), short-term also hosted Kundura Beykoz Production), “Söz” (TİMS&B “Söz” Production), Production), Pictures), Sen” (Karga7 Yerde Film), “Her was also the stage Kundura Beykoz Emlak Bankası, Little Big. Singers Tarık Mengüç, Hande Yener, Ebru Yaşar, Ebru Yaşar, Mengüç, Hande Yener, series projects that stand out in 2019 out in 2019 stand that series projects Coca-Cola, ACE, Algida, İdaş Yatak, Algida, İdaş Yatak, Coca-Cola, ACE, Digitürk, Nescafe, Garanti, Yumoş, Doğan, İsmail YK, Demet Akalın, Nihat (Çamaşırhane Yapım), “Türkler Geliyor” Geliyor” “Türkler (Çamaşırhane Yapım), İhtimal” “Öteki Yapım), (Bozdağ Kavga” (Feyz (Newmark Film), “Kutsal Aşk” series: “Afili TV or daily shootings of (ARC Yapım), “Benim Tatlım Yalanım” Yalanım” Tatlım “Benim (ARC Yapım), Sokaklar” (Erler Film), (03 Medya), “Arka Ağacı” (TİMS&B “İncir Prodcution), (Limon “Avlu” Yapım), (Sonsuz Kare Sanatlar), “Çiçero” (Dijital Sanatlar), “7. “7. Sanatlar), (Dijital “Çiçero” Sanatlar), “Bir (İmaj Yapım), Sinema), “Azizler” and long-term TV the regular Some of Yapım), “Şampiyon” (BSK Yapım). “Şampiyon” Yapım), Yapım), “Bir Zamanlar Çukurova” (TİMS Zamanlar Çukurova” “Bir Yapım), (Netflix), “Muhafız” (Netflix), “Atiye” Yapım), İkili” (TMC Yapım), “Muhteşem Yapım), The motion pictures shot in Beykoz shot in Beykoz pictures The motion Yapım), Sever 2” (Böcek Tesadüfleri TEB, Vakıfbank, İş Bankası, Defacto, İş Bankası, Defacto, Vakıfbank, TEB, “Kemanın Ağıtları” (Feza Film), “Zengo” Ağıtları” (Feza Film), “Zengo” “Kemanın “Erkenci ile Şirin” (03 Medya), “Ferhat “Çukur” (Ay Yapım), “Kuzgun” (Ay Yapım), Yapım), (Ay “Kuzgun” Yapım), (Ay “Çukur” (Ay “Çarpışma” Yapım), “Şahsiyet” (Ay (TİMS&B “Gülperi” Production), “Leke” Yapım), (Green “Elif” (Med Yapım), “Kızım” Hikâye” (Med (ES Film), “Bizim “Halka” (Koliba Evim” (A23 Medya), “Can “Vuslat” Bilmez” (Baba Yapım). “Kimse launches, and meeting organizations. look of the old factory, Beykoz Kundura Kundura Beykoz the old factory, look of infrastructure. built and various projects are realized realized are built and various projects and technological fiber box by green by protected buildings, which are FILM STAGE various brands and films such as galas, various brands and films such as galas, understanding. In addition to TV series, understanding. In addition to TV series, places also host corporate events of events of also host corporate places This daily shooting is 5. number of 35 shootings in a week, means a total of Beykoz Kundura film stage is where TV TV is where film stage Kundura Beykoz these places Most of Kundura. Beykoz with this executives Kundura Beykoz In Beykoz Kundura sets, the average sets, the average Kundura In Beykoz series and films are born. Thanks to the born. Thanks to the series and films are TV series set for serves as a preferred shootings and establishing sets in films and catalog photo shoots, these photo shoots, these films and catalog and films, where large sets can be sets can be large and films, where historical second-degree registered, are 150 in a month, and 1825 in a year. 150 in a month, and 1825 in a year. This number increases during summer, during summer, This number increases There are 34 different places for for places 34 different are There 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP is operating as a professional venue- as a professional is operating keeping up with the contemporary up with the contemporary keeping booking institution and also hosting booking institution and also hosting historical and cultural heritage of historical and cultural heritage of from Ottoman era to the Republic Ottoman era to the Republic from values to what it inherited. values to what with contemporary dynamics on on dynamics with contemporary the Bosporus by adding new cultural the Bosporus by adding new cultural that are inspired by the past but also by the past but also inspired are that to the Turkish economy. Acting with Acting with economy. to the Turkish this heritage, preserving the purpose of two centuries ago. Beykoz Kundura Kundura ago. Beykoz two centuries period. It is decidedly a valuable period. It is decidedly a valuable Beykoz Kundura team is hosting events team is hosting events Kundura Beykoz Bosporus. Beykoz Kundura is a significant is a significant Kundura Beykoz Operating as a meeting point where as a meeting point where Operating still stands as a monumental place on on still stands as a monumental place standards on the old factory lot on the old factory lot standards 183 decares. over a land of stretching a spectacular location along the along the a spectacular location creative ideas are born, Beykoz Kundura Kundura Beykoz born, are ideas creative cultural heritage given its contribution cultural heritage given its contribution cultural activities keeping pace pace cultural activities keeping BEYKOZ KUNDURA BEYKOZ [INDUSTRIAL CULTURAL DEVELOPMENT] CULTURAL [INDUSTRIAL This industrial complex had operated had operated This industrial complex Turkey, with its history dating back back with its history dating Turkey, 114 INDUSTRIAL CULTURAL DEVELOPMENT 117 Istanbul Jazz Festival organized Istanbul Jazz Festival organized th were Madgeburger Sigorta, Fifteen Sigorta, Fifteen Madgeburger were wedding parties were hosted during 4 hosted during 4 wedding parties were throughout the year. Some of them them Some of the year. throughout Mindwalley Night, Mobil Oil, Sephora, Mindwalley Night, Mobil Oil, Sephora, summer months when TV series were summer months when TV series were Values Day Event, Fakir Product Launch, Launch, Product Fakir Day Event, Values on breaks. Seconds Festival Start Up Event, Festival Start Up Event, Seconds 26 Acıbadem Sigorta Summer Party. 10 10 Acıbadem Sigorta Summer Party. 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP weekends. meetings and celebration events. events. meetings and celebration Held on 22 September 2019 for the the 2019 for Held on 22 September Beykoz Kundura is preferred by by is preferred Kundura Beykoz CORPORATE EVENTS CORPORATE first time, the program continued on on continued first time, the program as part of a yoga program titled “Matını titled “Matını a yoga program as part of corporate firms for launches, galas, galas, for launches, firms corporate Several companies held their events their events held Several companies Al Gel” offered by Duygu ‘Dee’ Cooke. Cooke. ‘Dee’ by Duygu Al Gel” offered
in 2019 as a new place for various various for a new place in 2019 as hosted Her Çocuk Bir Evren Preschool’s Preschool’s Evren Bir Çocuk Her hosted various activities. SAKLI KUNDURA SAKLI where you can camp close to nature camp close to nature you can where trekking trail and children’s playground. playground. trail and children’s trekking team activities of corporations, Saklı Saklı corporations, team activities of Kundura Yıldız is located in the same in the same is located Yıldız Kundura for serves as a place Yıldız Kundura Kundura’s first guest was YILDIRIM first guest was YILDIRIM Kundura’s (SECRET KUNDURA) (SECRET enthusiasts in the last quarter of 2019 2019 enthusiasts in the last quarter of exercises were offered. Saklı Kundura Kundura Saklı offered. were exercises games were played and motivation played and motivation games were and animals. The venue was opened opened The venue was and animals. hot tub, garden, activities with its tents, and it was used a reservoir. area camping events twice in 2019. camping events twice SAKLI KUNDURA (SECRET KUNDURA) SAKLI KUNDURA (SECRET Saklı Kundura is located on a forestland on a forestland is located Saklı Kundura opened its doors to yoga Saklı Kundura As the perfect place for outdoor outdoor for place As the perfect firms’ events, corporate Also used for Technology. Throughout the day, team team the day, Throughout Technology. were Hilal Sibel Pekel, Melih Kıraç, and Melih Kıraç, and Hilal Sibel Pekel, were with Body Mindfulness and Dance on program a free workshop. Creating with training workshops before the the with training workshops before the occasion of 24 November Teachers’ November Teachers’ 24 of the occasion received their certificates. received Prof. Dr. Tuğçe Tuna. The other trainers The other trainers Tuna. Tuğçe Dr. Prof. on its activities Stage carried Kundura Day, Kundura Stage promoted itself itself Stage promoted Kundura Day, grand opening. on 26-31 August 2019 participants on 26-31 August 2019 participants Aslı Öztürk. After the training program Aslı Öztürk. After the training program KUNDURA STAGE in spring 2020 as the new culture and and in spring 2020 as the new culture hall. Kundura Stage will open its doors open its doors Stage will hall. Kundura for promoting Kundura Stage. Kundura promoting for Dance Techniques, Improvisation, Body Body Improvisation, Techniques, Dance Mindfulness, Stretching, Condition and Condition and Mindfulness, Stretching, Composition under the supervision of Composition under the supervision of arts venue of Istanbul. Before the grand the grand Istanbul. Before arts venue of a theater, concert, and performance and performance concert, a theater, opening, pop-up events had been held opening, pop-up events had been held 36-hour workshop including Modern 36-hour workshop including Modern The first event of Kundura Stage was Kundura Stage was of The first event “Intense Dance Days”, which was a Days”, which was a Dance “Intense 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP its way to host Kundura Stage, which Stage, which its way to host Kundura building was completed in 2019. After After in 2019. building was completed free program titled “As Real Becomes Becomes Real titled “As program free KUNDURA STAGE KUNDURA with Kundura Cinema’s selection. Cinema’s selection. with Kundura the theme of November-December November-December the theme of of first steps the 50th anniversary of mankind on the moon. people had registered to attend this this to attend people had registered Foundation’s Istanbul Biennale. 1000 Biennale. 1000 Istanbul Foundation’s Kundura Cinema, the Boiler Room is on is on Boiler Room Cinema, the Kundura events with Istanbul Culture and Arts and Arts events with Istanbul Culture Wuerthewein before the new season. the new season. before Wuerthewein can serve multiple purposes such as can serve multiple purposes such as 6 October 2019, the season started the season started 6 October 2019, Surreal”, which took place between 14 between 14 which took place Surreal”, On September and 9 November 2019. S. Buse Yıldırım and Pia Charecerti- Yıldırım Buse S. KUNDURA STAGE 2019 program, on the occasion of of on the occasion 2019 program, A special selection was curated by by A special selection was curated [INDUSTRIAL CULTURAL DEVELOPMENT] CULTURAL [INDUSTRIAL This selection was part of parallel parallel This selection was part of The renovation of the old Boiler Room the old Boiler Room of The renovation “Journey to the Moon” was selected as to the Moon” was selected as “Journey 116 INDUSTRIAL CULTURAL DEVELOPMENT 119 updating Kundura Memory website. Memory website. Kundura updating these people are scanned and added scanned and added these people are Photos, documents and to the archive. purpose is to ensure an easier research an easier research purpose is to ensure and in the planned archive process Urban and Regional Planning visited us. Urban and Regional documentation center. documentation 5 pm. Photos and documents from 5 pm. Photos and documents from We had a brief tour of Marangozhane Marangozhane brief tour of had a We Content work was carried out for Content work was carried out for archive are categorized under themes under themes categorized are archive The with codes. and rearranged and other places. We shared information information shared We and other places. Kundura Beykoz about the history of Memory project. and Kundura Visits from former workers continue continue workers former Visits from on Wednesdays between 2 pm and between 2 pm and on Wednesdays Memory in Kundura other materials 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP factory workers. Photos, documents Photos, documents factory workers. were collected from the guests and and the guests from collected were made a presentation about Beykoz about Beykoz made a presentation Department of History. S. Buse Yıldırım Buse Yıldırım S. History. Department of site and cultural heritage Kundura Memory project. Kundura On 28 August 2019, a group of of a group On 28 August 2019, On 2 May 2019, a reunion dinner was dinner was a reunion On 2 May 2019, academics of a group On 19 July 2019, academics and researchers from Mimar from academics and researchers and students were hosted in Yağhane hosted in Yağhane and students were the Cultural Heritage as part of and materials from the factory period period the factory from and materials added to the archive. organized in Demirane for former former in Demirane for organized course offered by Boğaziçi University by Boğaziçi University offered course Sinan Fine Arts University Department of Sinan Fine Arts University Department of history of places. Restored documents documents Restored places. history of and photos Kundura, Beykoz history of history. MasterCard guests were guests were MasterCard history. were scanned and added to the archive. scanned and added to the archive. were were shared. were tags, and inventory were prepared for for prepared tags, and inventory were them about the tours, and we informed Katie Nadworny from Cornucopia Cornucopia Nadworny from Katie and the Memory project Kundura exhibited in Marangozhane. Texts, Texts, exhibited in Marangozhane. Magazine was informed about the about the Magazine was informed Marangozhane exhibition area. Marangozhane They exhibition area. Marangozhane and photos from Serendip Restaurant Restaurant Serendip and photos from are informed about Beykoz Kundura’s Kundura’s about Beykoz informed are Kundura during Beykoz accompanied on weekends were offered a tour of of a tour offered were on weekends The guests visiting Kundura Cinema Cinema The guests visiting Kundura YILDIRIM HOLDING SUMMER PARTY KUNDURA MEMORY history. As part of the project, more more the project, As part of history. free of charge. Medium and low Medium and low charge. of free KUNDURA MEMORY KUNDURA voltage lines were established and established and voltage lines were various documents. This archive is is various documents. This archive were built and they are backed by by backed built and they are were of an area for constructed walls were were interviewed. Kundura Memory Memory interviewed. Kundura were work carried out for learning more more learning work carried out for than 100 former factory workers workers factory than 100 former to life again in 2019. Kundura Memory Memory Kundura again in 2019. to life road running across the plot from the plot from running across road photos, hundreds of clippings, and clippings, and of photos, hundreds Kundura from Turk-German University University Turk-German from Kundura economy. We honor the memory honor the memory We economy. generators. Mini poles and supporting and supporting Mini poles generators. Memories of the factory came back came back the factory Memories of sliding. activated. Within the plot, 4 distribution plot, 4 distribution Within the activated. archive was created with almost 1500 with almost 1500 was created archive about the history of Beykoz Kundura Kundura Beykoz about the history of in the Turkish as an important place oral history project is an archive is an archive oral history project people who played a part in this of centers with the capacity of 1 MVA 1 MVA of with the capacity centers 100 meters in length to prevent the the 100 meters in length to prevent time. time. th 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP lounge, Kundura Cinema with its Cinema with its lounge, Kundura The Yağhane. and lounge (138 seats) is celebrated as one of the leading the leading as one of is celebrated into Kundura Stage with its 220 seater Stage with its 220 seater into Kundura him was Turgut Alp Bekoğlu, who who Alp Bekoğlu, him was Turgut by İKSV was hosted for the 4 the for was hosted by İKSV from Ministry of Culture and Tourism and Tourism Culture Ministry of from Cinema Stage, Kundura Kundura for PARTY 2019 voltage line was delivered to Beykoz to Beykoz voltage line was delivered upgraded to 4 MVA (36,5 kV). The new kV). The new (36,5 upgraded to 4 MVA usage area is 3137 square meters. meters. is 3137 square usage area with 500 guests in Kundura Kordon. Kordon. with 500 guests in Kundura MAINTENANCE EFFORTS to become a venue of culture and arts. culture a venue of to become player Barış Demirel was the first was the first Demirel player Barış in Beykoz the festival of performer performed. project area consists of five buildings five buildings of consists area project Berglund and drummer Magnus and drummer Magnus Berglund Kundura on 6 July 2019. Following Following 6 July 2019. on Kundura Employees of YILDIRIM Tower, Beykoz Beykoz Tower, YILDIRIM Employees of ve Yılport Gemlik Gübre Kundura, Party was held on 22 June 2019 Party was held on 22 June 2019 Beykoz Kundura’s old and inadequate old and inadequate Kundura’s Beykoz Landscaping work is completed in in Landscaping work is completed Sahne, Saklı Sahil VIP entrance, Dekovil, Cultural facility areas. project Kundura energy line of 1 MVA (10,5 kV) is kV) is (10,5 1 MVA line of energy drummers in the Turkish jazz scene. jazz scene. drummers in the Turkish Öström. Wesseltoft of New Conception of of New Conception of Wesseltoft ARCHITECTURAL RENOVATION ARCHITECTURAL Gebze attended the party where where the party attended Gebze Paydaş and His Orchestra İskender a new Scandinavian band consisting band consisting a new Scandinavian and Kundura Plato for Beykoz Kundura Kundura Beykoz for Plato and Kundura and a shared basement. The total basement. The total and a shared of award-winning jazz pianist Bugge Bugge jazz pianist award-winning of certificates and plaques were obtained obtained and plaques were certificates [INDUSTRIAL CULTURAL DEVELOPMENT] CULTURAL [INDUSTRIAL Acclaimed for his last album, trumpet his last album, trumpet for Acclaimed YILDIRIM HOLDING SUMMER SUMMER HOLDING YILDIRIM YILDIRIM Holding’s traditional Summer YILDIRIM Holding’s traditional Summer Jazz and e.s.t. fame, bass player Dan player Dan fame, bass Jazz and e.s.t. 3500-meter underground medium medium 3500-meter underground The third performance was by RYMDEN, was by RYMDEN, performance The third The old Boiler Room was transformed was transformed The old Boiler Room 118 FINANCIAL INVESTMENTS 121 SEALEASE, BELGIUM list. The demand for Sealease’s product product Sealease’s list. The demand for is still stretching its annual new asset is still stretching has increased the number of units in its units the number of has increased support. by YILDIRIM’s production. Sealease has set a new production. portfolio with revenues following the following with revenues portfolio in the last five years player in the market global charter companies in its customer global charter companies margins. and enhance down the cost, same trend. Sealease became a niche same trend. aggressive goal to build new boats, drive goal to build new boats, aggressive approximately 150 units at Sealease. 150 units at approximately various segments and they are across niche of by a variety all contracted operators during the lease period. operators customers in 2020 and beyond. Sealease looks forward to grow with its to grow Sealease looks forward Sealease is proud to count 4 of the top 5 4 of to count Sealease is proud 2019. As a customer-oriented company, As a customer-oriented company, At the year-end of 2019, the company the company 2019, At the year-end of YILDIRIM’s leadership between 2011 and YILDIRIM’s The year of 2019 ended with a fleet of with a fleet 2019 ended The year of the globe, across The vessels spread 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP FOR POTENTIALFOR ADDED VALUE TO VALUE ADDED GROUP PORTFOLIO. GROUP FLEXIBLE INVESTOR ASSETS THAT OFFER ASSETS THAT YILDIRIM SERVES AS A SERVES YILDIRIM in three main segments; charter boats, main segments; charter boats, in three full-service yacht leasing packages to full-service SEALEASE the industry in 2019. The company is The company the industry in 2019. the marine industry. passenger boats, and utility vessels. The passenger boats, of provider as a professional recognized Based in Belgium, Sealease SA is active surged in both size and scope under and scope in both size surged acquire 2% more shares in 5 years. shares 2% more acquire company celebrated its 13th year in celebrated company Sealease shares in 2011. The company in 2011. The company Sealease shares YILDIRIM Group has the option to YILDIRIM Group YILDIRIM Group acquired 75% of 75% of acquired YILDIRIM Group logistics services with 750 warehouses with 750 warehouses logistics services is the largest chromium salt producer salt producer chromium is the largest the world’s in Russia and has one of in MidUral Group as a financial investor. as a financial investor. in MidUral Group four largest factories in the production factories in the production largest four MIDURAL GROUP world is 20%, it accounts for 25% of the 25% of for world is 20%, it accounts world’s ultra-low-carbon ferrochromium the bonds have converted to equity and the bonds have converted totaling 9 million square meters of land. meters of million square totaling 9 production of ligatures and ferroalloys, and ferroalloys, ligatures of production production and 20% of the chromium the chromium and 20% of production Latin American market. The Group’s Group’s The American market. Latin 7 + 7 years. for Polymetcore In December 2017, YILDIRIM signed 2017, In December In December 2018, the agreement was the agreement 2018, In December excluding China. excluding 80% of cattle vitamins alone in the cattle 80% of level, and extended to an advanced MidUral Group is a vertically-integrated is a vertically-integrated MidUral Group CGM Group. CGM started to be marketed to the world by started to be marketed as well as in manufacturing of chemical as well as in manufacturing of and 2013. As of the year end of 2017, 2017, the year end of As of and 2013. and 30% of the vitamin K3 production K3 production the vitamin and 30% of with MidUral. agreement an offtake of chromium oxide. MidUral produces MidUral produces oxide. chromium of of CMA CGM between the years of 2010 years of between the CMA CGM of oxide production excluding China excluding production oxide chromic-based products. chromic-based producing on 4 continents, countries chemical and metallurgical group of of group chemical and metallurgical in Russia. headquartered companies, capacity is calculated at 2.71 million 2.71 at is calculated capacity chromium metal market share in the share metal market chromium 600 million into the convertible bonds convertible 600 million into the According to the investment agreement, agreement, to the investment According YILDIRIM is the 24% shareholder in CMA in CMA shareholder YILDIRIM is the 24% YILDIRIM Group invested a total of USD a total of invested Group YILDIRIM YILDIRIM Group acquired a 49% shares a 49% shares acquired YILDIRIM Group 17 different commodities. The Group commodities. The Group 17 different The Group has subsidiaries in 6 The Group The MidUral factories specialize in the The MidUral factories specialize TEUs. The company also offers global global also offers company TEUs. The The whole production of MidUral was of The whole production logistics. The company is headquartered is headquartered logistics. The company in Marseille, France. CMA CGM Group Group CMA CGM in Marseille, France. than 160 countries is active in more in the metals and mining industry, in the metals and mining industry, in Russia. vessels, the CMA CGM Group serves serves Group vessels, the CMA CGM 21 million vessels transport a volume of world, and a worldwide leader in through its network of over 755 over 755 its network of through the company operates on every one of on every one of operates the company the world’s seas. people worldwide. With a young people worldwide. With a young ports. 521 commercial number of In December 2018, YILDIRIM Group YILDIRIM Group 2018, In December CMA CGM GROUP CMA CGM CMA CGM is the fourth-largest container container is the fourth-largest CMA CGM in the shipping and transport Group CMA CGM Group’s global presence, global presence, Group’s CMA CGM container and efficient footprint strong agencies across the globe. agencies across and diversified fleet of 509 container container of 509 and diversified fleet acquiring 49% shares of MidUral Group Group MidUral of acquiring 49% shares over 420 ports of the world’s current the world’s current over 420 ports of company employs more than 110,000 110,000 than employs more company completed another financial investment another financial completed As of the year end of 2019, the the 2019, the year end of As of Through more than 200 shipping lines, than 200 shipping lines, more Through TEUs annually. CMA CGM fleet’s slot CMA CGM TEUs annually. leasing business with the acquisition of leasing business with the acquisition of bringing YILDIRIM’s total investment in bringing YILDIRIM’s over the all aims to grow business that world by YILDIRIM’s experience. world by YILDIRIM’s the maritime industry corresponds to a the maritime industry corresponds majority share in Sealese’s well-defined majority share In the year of 2011, YILDIRIM made its 2011, YILDIRIM In the year of end of 2017, bringing the total shares of of bringing the total shares 2017, end of second financial investment as venture as venture financial investment second CMA CGM Group to USD 600 million. to USD 600 Group CMA CGM capital in the maritime operational capital in the maritime operational This investment in Sealease SA company YILDIRIM in CMA CGM Group to 24%. to Group YILDIRIM in CMA CGM CMA CGM GROUP, FRANCE GROUP, CMA CGM 75% shares in the Belgian yacht leasing 75% shares The convertible bonds matured in the matured bonds The convertible 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP INVESTMENT ACTIVITIES IN ADDITION TO INDUSTRIAL AND TRADE INITIATIVES. AND INDUSTRIAL TO IN ADDITION ACTIVITIES INVESTMENT it acquired 20% shares in CMA CGM in CMA CGM 20% shares it acquired investment in the last quarter of 2010. 2010. investment in the last quarter of headlines in the maritime industry when headlines in the maritime industry when MANAGEMENT HOLDING MANAGEMENT new bonds mandatorily redeemable in redeemable new bonds mandatorily rights, including board representation at at representation rights, including board portfolio through organic and inorganic and inorganic organic through portfolio Netherlands in 2010. The company The company Netherlands in 2010. BV is a private investment company company investment is a private BV In early 2013, YILDIRIM Asset In early 2013, established in Amsterdam, the established in Amsterdam, growth. Management Holding subscribed to 500 million investment gave YILDIRIM shares for an amount of USD 100 million, an amount of for shares Group strong corporate governance governance corporate strong Group Group. CMA CGM Group, the world’s third largest container container largest the world’s third Group, a major and shipping company serves as a flexible investor with the goal serves as a flexible of adding value to YILDIRIM Group’s adding value to YILDIRIM Group’s of customer of Yılport Holding. This USD Yılport customer of FINANCIAL INVESTMENTS FINANCIAL [FINANCIAL INVESTMENTS] [FINANCIAL As a result, YILDIRIM Group made YILDIRIM Group As a result, A subsidiary of YILDIRIM Group, YILDIRIM Group, A subsidiary of MIDURAL GROUP, RUSSIA MIDURAL GROUP, YILDIRIM ASSET YILDIRIM YILDIRIM made its first private equity YILDIRIM made its first private YILDIRIM Asset Management Holding YILDIRIM Asset Management YILDIRIM HOLDING ENGAGES IN VENTURE CAPITAL, PRIVATE EQUITY AND FINANCIAL AND EQUITY PRIVATE CAPITAL, VENTURE IN ENGAGES HOLDING YILDIRIM 120 HUMAN RESOURCES 123 ENERGY HEADQUARTERS 2.78% 0.7% Generation Y (1980-1999) Generation Y Generation (1980-1999) FERTILIZERS OTHER 4.71% AND CHEMICALS 1.42% people 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP MINING 35% METALS AND METALS Generation X (1965-1979) SHIPPING Generation X Generation (1965-1979) +13,000 1.94% YILDIRIM GROUP EMPLOYEE BREAKDOWN EMPLOYEE GROUP YILDIRIM PORT COAL & COKE 52% MANAGEMENT 2.08% Baby Boomers (1945-1964) EMPLOYEE PROFILES EMPLOYEE MANAGEMENT TOP Baby Boomers (1945-1964) Male Female institutionalize in terms of human human in terms of institutionalize basis for governance philosophy, a philosophy, governance basis for beyond. foundation for institutionalization. for foundation will continue to transform and to transform will continue in full swing with to work will continue talented candidates for our companies in our companies for talented candidates satisfying tenured, the most preferred, one become we can that the awareness not disregard the country and global the country not disregard resources practices in 2020 and practices resources Resources Department will find the most Resources In this context, we, as the Human we, as In this context, employee-focused practices. We will We practices. employee-focused sectors in which we operate. and engaged working places with ourand engaged working places of the leading global employers in all the leading global of conjuncture while doing so. Thus, we while doing so. conjuncture 2020. Also we will make our companies Also we will make 2020. YILDIRIM Group of Companies of YILDIRIM Group initiated in 2016 continued in 2019 at in 2016 continued initiated by all employees. The roll out of the out of by all employees. The roll full speed. The backbone of the SAPfull speed. The backbone of which is a part of corporate planning corporate which is a part of our policies and to realize the chance the processes that are empowered by empowered are that the processes and should technological infrastructure project will be done in other locations. project procedures, which will constitute a which will constitute procedures, platform with the belief that Human with the belief that platform Finally, another important module of the the another important module of Finally, Resources Policies should be based on should be Policies Resources In this context, the studies that were were that the studies In this context, efficient and transparent working efficient and transparent Module, which has also been Module went live in the last quarter of Module went live in the last quarter of One of the important modules of SAP of the important modules One of While we are experiencing these While we are We continued the SAP integration, the SAP integration, continued We Center module have been completed inCenter module have been completed successfully launched at YILDIRIM Tower. launched at successfully and automated processes, we will reach we will reach processes, and automated announced in 2019 to our employees. announced out to build a much more effective, effective, out to build a much more changes mentioned above, we had climate goal. climate contribute directly to sustainable growth. to sustainable directly contribute SuccessFactors software, the Employee software, SuccessFactors SuccessFactors was the Performance was the Performance SuccessFactors SAP SuccessFactors software, Learning Learning software, SAP SuccessFactors 2019. Thus, by means of standardized standardized Thus, by means of 2019. YILDIRIM Tower, and started to be used YILDIRIM Tower, THE NEXT DECADE. YILDIRIM CONTINUED TO CONTINUED YILDIRIM PRACTICES TO BE READY FOR READY TO BE PRACTICES TRANSFORM HUMAN RESOURCES RESOURCES HUMAN TRANSFORM is implemented for corporate training training corporate is implemented for valuable employees in a much more in a much more valuable employees were delivered in Eti Krom and Yılport’s and Yılport’s Krom in Eti delivered were of YILDIRIM Group worldwide needs of to contribute in the training and in the training to contribute in line with continued training programs important asset, our most the needs of YILDIRIM the launch of this respect, is umbrella under one these efforts recruitments, carried out in 2019. As a in 2019. carried out recruitments, our to serve continue we could result, managerial, and personal development Department was established in Beside the development programs, to build in order terminals Portuguese efficient and effective way. effective efficient and functional, employees. Design of department. In 2019, they continued they continued department. In 2019, Group all YILDIRIM development of In in 2020. development programs Our Training and Development Our Training training and plan to accelerate We Companies. and development department and and development department and our employees. and common culture organizational corporate language. corporate 2018 within the Human Resources 2018 within the Human Resources Accordingly, an integrated approach approach an integrated Accordingly, will frame all of Academy that YILDIRIM Academy is being formed for for YILDIRIM Academy is being formed “Being a YILDIRIM Employee” trainings “Being Aykut GAVAS Aykut DIRECTOR EXECUTIVE RESOURCES HUMAN 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP implemented throughout all group all group implemented throughout institutionalization. have been attended to specific to have been attended from payroll duties and work locally in payroll from the past years, our human resources the past years, our human resources transformation is human resources. is human resources. transformation managers acting as business partners mergers and acquisitions in Turkey and and acquisitions in Turkey mergers HR practices in the related sectors/ in the related HR practices Human resources processes are are processes Human resources HUMAN RESOURCES different locations complete this new locations different departments and representing them. departments and representing departments and sectors. They play developed day-by-day and maturing developed day-by-day and maturing group that attracted the most global the most attracted that group Our talent management team was Our employees who are responsible responsible Our employees who are supported and expanded with specialist structure. structure and business practices. structure a key role in both implementing new role a key as a requirement of ongoing of as a requirement attention in the last 10 years thanks to attention it In parallel with its growth, abroad. companies in 2019. companies company, structural changes have been structural changes have company, continued to transform its organizational its organizational to transform continued According to the model structured in to the model structured According YILDIRIM Group is a Turkish industrial is a Turkish YILDIRIM Group [HUMAN RESOURCES] [HUMAN To capture the growth strategy of the of strategy the growth capture To The most important element of the The most important element of 122 SUSTAINABILITY 125 in our internal processes and and in our internal processes business areas and organizational and organizational business areas necessary revisions were made made were revisions necessary procedures. In line with the changes in in In line with the changes activities were carried out, carried out, activities were carried out by third party auditor party auditor carried out by third companies. continues to spread across across to spread continues SAP integration. YILDIRIM Holding companies via via YILDIRIM Holding companies Transition to a digital platform to a digital platform Transition honesty, integrity, and correctness and correctness integrity, honesty, values, fighting against corruption values, fighting against corruption this regard. this purpose in 2020. year than 2019 regarding Corporate Corporate year than 2019 regarding processes; focusing on excellence, on excellence, focusing processes; Holding Ethical Rules define our Rules define our Holding Ethical In order to increase our sensitivity our sensitivity to increase In order We believe that 2020 will be a better a better 2020 will be believe that We Governance and Compliance. Governance sensitivity of management in detail in in detail in management sensitivity of Commitment to moral and ethical Commitment to moral and ethical for special management committee and unethical activities are among among and unethical activities are them in all company and expressing long-term goals, value of attainment our basic principles. YILDIRIM our basic principles. YILDIRIM areas. focus our core are operate on this issue, we plan to establish a on this issue, we plan to establish a creation in the countries in which we in which we in the countries creation Also, principles of transparency, transparency, Also, principles of • • 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP in parallel with integrated in parallel with integrated investigated. Our purpose is to is to Our purpose investigated. awareness and increase improve arena. international issue” within this term. being managed by their activities being managed by their activities by Ministry of Trade) is being is being Trade) by Ministry of the Turquality program (which (which program the Turquality building brand- the national management system audits management system audits management system which management system which ISO ISO 9001, ISO 14001, require program facilitated and supported and supported facilitated program During the year, our companies our companies During the year, Data Protection Authority (KVKK) (KVKK) Authority Protection Data We carried out compliance out compliance carried We successfully passed the integrated passed the integrated successfully activities for the “Turkish Personal Personal the “Turkish activities for of Yılport Holding brand in the brand in the Holding Yılport of 27001 and ISO 45001 standards. 27001 and ISO 45001 standards. YILDIRIM Group companies are are companies YILDIRIM Group Yılport Holding’s application to to Holding’s application Yılport implementing the matrix organization organization implementing the matrix its affiliated holdings and subsidiaries and subsidiaries holdings its affiliated have the managerial competence competence have the managerial The company with care. balances which were focused on: focused which were to provide in-group strengths and and strengths in-group to provide management is committed to to management is committed In 2019 we completed some projects some projects In 2019 we completed efficiently and create multi-functional multi-functional create efficiently and structure in order to increase their their to increase in order structure skills within the group. structure of YILDIRIM Holding and YILDIRIM Holding and of structure flexibility in the team, use resources resources flexibility in the team, use The management and organizational and organizational The management • • •
Board of sub holdings and of Board Management reports, Management Team Management meetings Corporate committees such as; committees Corporate companies YILDIRIM Holding Board of Directors of YILDIRIM Holding Board YILDIRIM Holding Executive o Management executive reports, executive o Management in parallel to the organizational in parallel to the organizational its organizational and management management and its organizational meetings” and “Management reports” reports” meetings” and “Management national and international standards standards international and national our group. of main principles Directors”, “Management Committees”, Committees”, “Management Directors”, structure. Such as; structure. structure in line with this framework. in line with this structure Compliance with laws and regulations, with laws and regulations, Compliance and company rules is one of the the rules is one of and company of “Board of and tools consist reports, o Performance o Annual reports, o Sectoral reports, reports, research o Market etc. o Investor reports, those tools. some of are o Sector based annual corporate meetings, alignment review management o Monthly meetings, development o Periodical strategy meetings, review meetings, o Specific project o Other functional meetings, etc. o Budget Planning and Control o Budget Planning and Control Committee, o Audit Committee, Digital Transformation o Atlas Committee, o YILDIRIM Academy Committee, (under Committee o Ethics development), (under o Sustainability Committee development), Committees, Team o Taskforce YILDIRIM Holding has established Holding has established YILDIRIM structure YILDIRIM Holding corporate • • • • • • “Other periodical management review periodical management review “Other healthy communication with the entire with the entire healthy communication have on the environment and society, and society, have on the environment Hence, both positive and negative. with strong dedication to ethical and to ethical dedication with strong and consumption waste and resource transparent and responsible corporate corporate and responsible transparent meetings and workshops. In meetings and workshops. In vital in our institution. mechanisms are management principles. responsible practices. In all our business In all our practices. responsible footprints, carbon impact from negative Risk management and internal audit Risk management and internal audit and unethical Fighting corruption Eti Krom’s Waste Recycling Projects are are Projects Recycling Waste Krom’s Eti enhance the positive impact in terms the positive enhance COMMITMENT TO ETHIC VALUES COMMITMENT governance approach. The company The company approach. governance by planned top management group social media usage in order to create to create social media usage in order in 2020. sustainability committee sensitive activities are getting stronger. getting sensitive activities are and local communities engagement. and local communities within the synergy aims to increase a we plan to form addition to that, among our sustainable activities are areas, we are aware of the impact we of aware we are areas, also important to show that our eco- that also important to show of employee benefits, social welfare social welfare employee benefits, of community. Since its establishment in 1963, in 1963, its establishment Since YILDIRIM Group has adopted a fair, has adopted a fair, YILDIRIM Group YILDIRIM Group executes its businesses executes YILDIRIM Group the tries to minimize YILDIRIM Group Thus YILDIRIM Group has enhanced its has enhanced Thus YILDIRIM Group GROWTH AT YILDIRIM GROUP. AT GROWTH ‘SHAPING THE FUTURE’ IS OUR THE FUTURE’ ‘SHAPING SUSTAINABLE AND PROFITABLE PROFITABLE AND SUSTAINABLE APPROACH FOR THE TARGET OF TARGET FOR THE APPROACH legal authority has approved the the legal authority has approved highest standards of sustainability. The The sustainability. of highest standards mining plan for health and safety valuable expertise gained from the Eti the Eti valuable expertise gained from used in production. After obtaining After obtaining used in production. the permits in the Gemlik Gübre Urea Urea the permits in the Gemlik Gübre in and chose the EPC firm the offers will be recovered. thus carbon dioxide to boost mining innovations. The The to boost mining innovations. providing the recycling of materials materials of the recycling providing rehabilitation plans of the two mining the two mining plans of rehabilitation waiting for management plans are Factory project in 2018, we evaluated we evaluated in 2018, project Factory Krom example in every mining project. Krom Eti Krom R&D Center is established R&D Center is established Krom Eti In addition to that Yılteknik started to Yılteknik In addition to that In addition, the new mining waste environmental understanding by understanding by environmental establish an R&D center focusing on focusing establish an R&D center OUR ENVIRONMENTAL FOCUS OUR ENVIRONMENTAL dioxide gas emission is used as input, gas emission is used as input, dioxide Waste’ policy as an environmental pillar. pillar. policy as an environmental Waste’ Our subsidiary Eti Krom was selected was selected Krom Our subsidiary Eti Group is planning to use the most is planning to use the most Group sites and the process is continuing. is continuing. sites and the process activities is in progress. YILDIRIM YILDIRIM activities is in progress. as pilot company for assuring the assuring the for as pilot company a new to do that, In order approval. order to achieve our sustainability goals. order companies like BAUR and Schneider in BAUR like companies cable testing. 2019. With the project the flue carbon flue carbon the With the project 2019. YILDIRIM Group emphasizes ‘Zero ‘Zero emphasizes YILDIRIM Group This principle contributes to sustainable to sustainable This principle contributes CORPORATE GOVERNANCE & COMPLIANCE & COMPLIANCE GOVERNANCE CORPORATE DIRECTOR EXECUTIVE Sinan KAR 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP implementation of SAP programs to SAP programs of implementation Yılmaden like its subsidiary companies, is to diversify our business portfolio is to diversify our business portfolio business processes in order to maintain in order business processes business opportunities’ stands as one focused on improvement of the of on improvement focused focusing on new markets like Central like on new markets focusing SUSTAINABILITY STRATEGY & STRATEGY SUSTAINABILITY us to wield the power of our network of us to wield the power to drive positive change. We believe to drive positive change. We to enhance our business scope by scope our business to enhance role in society, which drives us to inspire which drives us to inspire in society, role making collective progress and helps progress making collective Energy is developing partnerships with is developing partnerships Energy Holding, Gemlik Gübre, Yılport Iberia, Yılport Holding, Gemlik Gübre, In the year 2019, YILDIRIM Group YILDIRIM Group In the year 2019, environment. In order to achieve this In order environment. CONTINUOUS DEVELOPMENT CONTINUOUS goal, YILDIRIM Group fastened the goal, YILDIRIM Group growth pattern for YILDIRIM Group of of YILDIRIM Group for pattern growth sustainability is directly connected to connected sustainability is directly Companies. soda ash and other minerals. Our goal and Yılport Nordic. Also YILDIRIM Nordic. and Yılport an effective and sustainable business and sustainable an effective and create a solid and sustainable a solid and sustainable and create CORPORATE GOVERNANCE, COMPLIANCE AND SUSTAINABILITY COMPLIANCE GOVERNANCE, CORPORATE others and develop every person, and we engage with. organization our business growth and our unique our business growth of our fundamental sustainability goals. our fundamental sustainability of Sustainability sets a framework for framework for Sustainability sets a Asia, Italy etc. and new businesses like Asia, Italy etc. and new businesses like According to this principle, we continue to this principle, we continue According [SUSTAINABILITY] The notion of ‘capturing global new ‘capturing The notion of 124 SUSTAINABILITY 127 be raised as a result of the experiences the experiences of be raised as a result happy 2020. formation of teams that are focused on focused are teams that of formation work and wish a healthy, successful and successful work and wish a healthy, to ensure that the activities are carried carried the activities are that to ensure and commitment. target the common year in which efficiency and success will year in which efficiency and success In this respect, I wish that 2020 will be a 2020 I wish that In this respect, ensure unity and solidarity in practice, unity and solidarity in practice, ensure to our everyone who has contributed gained in previous years. gained in previous develop in the correct way and to way and develop in the correct With these wishes, I would like to thank With these wishes, I would like Group is to help the Group companies companies is to help the Group Group and external legislation and to take and to take and external legislation activities carried out in YILDIRIM activities carried out out in accordance with the internal out in accordance corrective measures in a timely manner. in a timely manner. measures corrective The most important condition is the The most important condition The purpose of the internal audit The purpose of 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP IN YILDIRIM SUBSIDIARIES. IN YILDIRIM DEPARTMENT IS NOT ONLY TO IS NOT ONLY DEPARTMENT THE DUTY OF INTERNAL AUDIT AUDIT OF INTERNAL THE DUTY DISCOVER WRONG PRACTICES BUT PRACTICES WRONG DISCOVER TO REVEAL SUCCESSFUL EXAMPLES TO REVEAL SUCCESSFUL based perspective. Internal by our team, the duty of fraudulent activities, incomplete and/ fraudulent activities, incomplete world. to saving, at first providing benefits first providing to saving, at our employees, then ourto oneself, potential risks with a proactive approach approach potential risks with a proactive giving importance productively, peace, Internal Audit Team handles current and handles current Internal Audit Team environment, industry, country and the country industry, environment, successful practices and set them practices successful subsidiaries. and duties. Within this structure, the structure, and duties. Within this and carries out audit activities with a risk as examples and targets for other for as examples and targets or wrong practices, but also to reveal to reveal but also practices, or wrong Audit Team has more responsibilities responsibilities has more Audit Team As it is known and always reminded As it is known and always reminded errors, is not only to find Audit Team The main thing here is to do business in The main thing here Altan EROKYAR INTEGRATION AND AUDIT INTERNAL DIRECTOR EXECUTIVE lessons learned from 2019 and previous 2019 and previous lessons learned from in advance, it has been revealed that that revealed it has been in advance, interstate conflicts of interest, trade wars trade of interest, conflicts interstate world to become a place with different with different a place world to become appetite and growth with aggressive that this year will pass by recovering by recovering this year will pass that bringing 2019 and the damages of back to an ratios the deteriorated the world. Financial crises, intensifying the world. Financial protectionism, of started on the axis that and complete. robust more the structure years should be utilized. political, economic, technological and technological political, economic, the situation enterprises foresee private Even though economy experts said though economy Even In this manner, the YILDIRIM Internal In this manner, environmental risks from the past. risks from environmental geopolitical factors, dramatic geopolitical factors, dramatic While such periods offer very attractive very While such periods offer some measures are not implemented are some measures sufficiently and in a timely manner. security problems triggered by triggered security problems financial data and conjuncture to make to make conjuncture and financial data acceptable level. In this direction, in level. In this direction, acceptable order for 2020 to be a better year, the 2020 to be a better year, for order opportunities for the companies the companies opportunities for times that opportunities, these are existing should review other companies consequences of disasters, climate disasters, climate of consequences caused the change, and social problems OPERATIONAL AND FINANCIAL AUDIT AND FINANCIAL OPERATIONAL 2020 will be a better year, I believe 2020 will be a better year, 2019 was a difficult year for Turkey and Turkey for year 2019 was a difficult Although all the parties in the public and Although all the parties in the public and international institutions international is primarily secured by local by local is primarily secured markets insurance rehabilitation at Eti Krom Eti at rehabilitation Ferroalloys and Eti Krom by by Krom and Eti Ferroalloys Ensuring that Gemlik Gübre Gemlik Gübre Ensuring that Port of Oslo, Norway of Port Container Terminal, Leixões Portugal Ecuador Puerto Bolívar, extinguishing systems extinguishing systems Completing the successful risk risk Completing the successful Completion of the fire the fire Completion of Gävle Container Terminal, Sweden Gävle Container Terminal, assessment studies of Tikhvin Tikhvin assessment studies of Voskhod Chrome, Kazakhstan Chrome, Voskhod include the above-ground facilities facilities include the above-ground that provided program, insurance insurance premiums and to document and to document premiums insurance insurers: works in 2020, there will be no will be no there works in 2020, the Yılmaden Global Insurance Global Insurance the Yılmaden extinguishing systems were the fire these rehabilitation of the completion rehabilitated within one year. With With within one year. rehabilitated Program. In July 2019, Eti Krom was was Krom Eti In July 2019, Program. Our main targets in 2020 will be: in 2020 Our main targets One of our goals in 2019 was to 2019 was to our goals in One of successfully added to our global added to our global successfully obstacles to the insurance of Eti Krom. Eti of obstacles to the insurance of Eti Krom in Elazığ, Turkey in in in Elazığ, Turkey Krom Eti of our operational excellence to our to our excellence our operational • • • • • • • • INSURANCE COSTS. INSURANCE DEPARTMENT OF RISK DEPARTMENT OPERATIONAL RISKS AND OPERATIONAL MANAGEMENT CONTINUED MANAGEMENT ACTIVITIES IN 2019 TO REDUCE IN 2019 TO REDUCE ACTIVITIES led to a noticeable increase in the in the increase led to a noticeable in order to balance the increase in in the increase to balance in order in our holdings were maintained. maintained. in our holdings were insurance offices in Lloyds and in Lloyds and offices insurance YILDIRIM of premiums insurance its current business through offices in offices business through its current from the marine insurance industry. industry. the marine insurance from that faced capacity contraction: Brit, Brit, capacity contraction: faced that to Swiss Re Italy. Lloyds branches and Lloyds branches and Italy. Re to Swiss during market insurance the London premiums was inevitable. In 2019, was inevitable. In 2019, premiums carried risk assessment studies were marine insurance, liability insurance, insurance, liability marine insurance, Nevertheless, the increase in insurance in insurance Nevertheless, the increase London, and transferred the authority the authority and transferred London, Lloyds in July 2019 and maintained and maintained Lloyds in July 2019 Insurance syndicates and companies and companies syndicates Insurance energy and product recall branches. recall and product energy Oslo and London. Argo has withdrawn has withdrawn Argo Oslo and London. subsidiaries in four ports and a mine, and a mine, ports subsidiaries in four Group’s sub-holdings. Operational sub-holdings. Operational Group’s ratios and low loss / premium success senior insurers left the industry just in left the industry just in senior insurers XL Catlin, MS Amlin, Neon MS Amlin, XL Catlin, out with international company company out with international offices out of England. out offices Swiss Re has closed vessel machinery machinery has closed vessel Re Swiss Skuld closed its trade syndicate in the in the syndicate Skuld closed its trade 2019. Axis Capital has withdrawn from the the Axis Capital has withdrawn from 29 these developments, of As a result The rising fire in the insurance markets markets in the insurance The rising fire Kutlay ÖZMENLİKAN Kutlay DIRECTOR EXECUTIVE MANAGEMENT RISK 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP insurance markets: AIG/Validus, AXA/ AIG/Validus, markets: insurance has turned into a tougher trend due due has turned into a tougher trend had an impact of over USD 200 billion USD 200 billion over had an impact of hit North America especially the hit North America especially the for the insurance world. the insurance for that faced cancelled capacities: capacities: cancelled faced that to the effects of the above-mentioned of the above-mentioned to the effects two major fires, the big earthquake the big earthquake two major fires, the second half of 2017 were revealed. revealed. were 2017 half of the second mergers in insurance markets, markets, in insurance mergers Re/Chauser Insurance syndicates and companies and companies syndicates Insurance In the second half of 2018, the results the results 2018, half of In the second RISK MANAGEMENT RISK Until 2018, the competitive the competitive Until 2018, USA, namely Harvey, Irma and Maria, Irma and Maria, USA, namely Harvey, environment in the insurance market market in the insurance environment damages. As a result of the first quarter first quarter the of damages. As a result Mergers and acquisitions in the in the and acquisitions Mergers Mexico. The damages mentioned here mentioned here The damages Mexico. serious trend. As a result, we observed we observed As a result, serious trend. XL, Hartford/Nav, Axis/Novae, China Axis/Novae, China XL, Hartford/Nav, and capacity contraction. affecting Mexico and the Gulf of of Gulf and the Mexico affecting of 2019, the situation became clearer. the situation 2019, of of natural disasters that occurred in in occurred disasters that natural of cancellation of insurance capacities capacities insurance of cancellation continued. As of the end of 2018, this this 2018, the end of As of continued. & PD, TRV PD, Barbican, Kiln, Hardy, Barbican, Kiln, Hardy, TRV PD, & PD, Amtrust, Standard Syndicate - Marine - Marine Syndicate Amtrust, Standard Advent, Aspen, Channel [SUSTAINABILITY] The disruption has reached a more a more The disruption has reached They were the three typhoons which typhoons which the three They were 126 GARİP AND ZEYCAN YILDIRIM FOUNDATION 129 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP of each year. of rd Educational Purposes Educational Character Development Social Wellbeing located on our chrome factory, Eti Eti factory, on our chrome located level the playing field, giving more equal level the playing field, giving more its identity to be an education-focused in 2015, to transfer their industrial their to transfer in 2015, in the more impoverished Eastern in the more books and dancing took place at the at books and dancing took place has rebranded itself in 2019, and found itself in 2019, has rebranded just a single toy a year, and often no and often just a single toy a year, foundation, currently serving the Turkish Turkish serving the currently foundation, where more than 250 deserving more where toys at all. A core principle of the Garip the principle of all. A core toys at youth to become successful and well- successful youth to become youth. We strive to provide sustainable strive to provide youth. We or our own projects youth by operating rounded individuals, both academicallyrounded region of Turkey, a child may receive a child may receive Turkey, of region Krom’s grounds. Krom’s Four years since establishment, theFour years since National Sovereignty and Children’s Day, Day, and Children’s Sovereignty National 2019 HIGHLIGHTS Children's Day Toy Campaign Children's Day Toy give seed funding in the areas of: the areas give seed funding in solutions to different issues facing thesolutions to different Garip & Zeycan YILDIRIM Foundation Garip & Zeycan Foundation YILDIRIM Garip and Zeycan and socially. and economic power to develop the power to develop and economic an additional 100 used toys given and Zeycan YILDIRIM Foundation is to YILDIRIM Foundation and Zeycan old corporate culture, established the culture, old corporate out, during a joyful celebration ofout, during a joyful celebration communities around them. around communities children received brand new toys with brand new toys received children on April 23 commemorated Statistics say, on average, a child in say, Statistics A party filled with cupcakes, balloons, A party filled with cupcakes, Yarımca Ferrokrom School that is School that Ferrokrom Yarımca The goal of the Foundation is to prepare is to prepare the Foundation The goal of The YILDIRIM family, having a half-century- having a family, The YILDIRIM The Foundation had its largest event largest had its The Foundation Turkey receives 1 toy every month. But receives Turkey • • • AND SOCIAL WELLBEING. AND SOCIAL DEVELOPMENT, EDUCATIONAL NEEDS, EDUCATIONAL DEVELOPMENT, THE FOUNDATION REBRANDED ITSELF REBRANDED THE FOUNDATION IN 2019 AND IDENTIFIED 3 KEY AREAS OF 3 KEY AREAS AND IDENTIFIED IN 2019 FOCUS TO SERVE THE YOUTH: CHARACTER CHARACTER YOUTH: THE SERVE TO FOCUS Zeycan YILDIRIM Zeycan DIRECTOR EXECUTIVE 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP GARİP AND ZEYCAN YILDIRIM FOUNDATION YILDIRIM AND ZEYCAN GARİP [GARİP AND ZEYCAN YILDIRIM FOUNDATION] YILDIRIM ZEYCAN AND [GARİP 128 GARİP AND ZEYCAN YILDIRIM FOUNDATION 131 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP to dream bigger about what they can become. Since they can become. Since bigger about what to dream and vision. This activity aims to help deserving children and vision. This activity aims to help deserving children we hope this before, never been to a movie theater activity will touch their lives immeasurably. many of these kids have limited opportunities and have these kids have limited opportunities and have many of children to culture and new worlds, expanding their mind and new worlds, expanding their mind to culture children donated 51,235 TL generously to the renovation project. to the renovation 51,235 TL generously donated discover who they truly are, with hopes of enabling them enabling them with hopes of discover who they truly are, Plans to rebuild or renovate the Yarımca Ferrokrom Ferrokrom the Yarımca or renovate Plans to rebuild School are underway. Papatya International School also School also International Papatya underway. School are Zeycan YILDIRIM Foundation believes that movies expose movies expose believes that YILDIRIM Foundation Zeycan Children’s Day Day Children’s rd the children who have cancer, as well as psychological as well as psychological who have cancer, the children nights for rural students in Elazığ, Turkey. Garip and Garip and in Elazığ, Turkey. for rural students nights will offer support to an organization called Laughter called Laughter support to an organization will offer counseling to their parents. creating happy memories for cancer-stricken kids. We kids. We happy memories for cancer-stricken creating Heals Association, which provides sanitized playrooms for for playrooms sanitized which provides Heals Association, Party. Next year this program will expand to more children, children, will expand to more Next year this program Party. Initiative by continuing support to Yarımca Ferrokrom Ferrokrom support to Yarımca by continuing Initiative School by sponsoring the annual April 23 The Happy Childhood Initiative will start sponsored movie movie will start sponsored The Happy Childhood Initiative 2020 GOALS AND EXPECTATIONS 2020 GOALS The Foundation plans to continue the Happy Childhood the Happy Childhood plans to continue The Foundation logo printed on them. The staff of the logo printed on them. The staff inclusivity for the youth and the ruralinclusivity for fun and hometown pride as well. village schools with the team’s bus to the Foundation and the football club. football and the the Foundation and encourage to young children, he bought 780 fans, them to become team jerseys with the Foundation’s Our the students, teachers, and parents. Foundation and the team met three rural met three and the team Foundation distribute jerseys and match tickets for tickets distribute jerseys and match a collaboration campaign betweena collaboration opportunities to partake in the football opportunities to partake owner of Yılport Samsunspor, created created Samsunspor, Yılport owner of campaign was successful in showingcampaign was successful them Samsun, offering of community As a way to bring hometown pride
from our activities from Students Students benefited 1,619 2019 IMPACT to children Books and toys 1,350 in 2019. 1,000 books were given to our books were 1,000 in 2019. Book Campaign Samsunspor Jersey Campaign to efficient tools to motivate them to them to efficient tools to motivate Robert Yüksel YILDIRIM, who is also the YILDIRIM, Yüksel Robert High School, Yılport Logistics Vocational Vocational Logistics High School, Yılport YILDIRIMHigh School and Garip & Zeycan encourage reading. encourage Garip and Zeycan YILDIRIM Foundation’s Garip and Zeycan Trustees, of the Board Chairman of schools, Zeycan YILDIRIM Vocational YILDIRIM Vocational schools, Zeycan continue learning on their own. learning on continue Science High School, as a way toScience The book donation campaign continuedThe book donation 2019 ANNUAL REPORT 2019 ANNUAL OF COMPANIES YILDIRIM GROUP learning English can be fun, feasible, learning English can be fun, feasible, is imperative to success as an adult. All as an adult. to success is imperative in Turkey. We have partnered with with have partnered We in Turkey. focus on traditional classroom-style on traditional classroom-style focus for English as a second language language English as a second for English Learning Program Innovation Contest Scholarships universities and awarded 105,000 TL in 105,000 universities and awarded their discretion. Students are either either are Students their discretion. the youth, because a happy childhood because a happy childhood the youth, teaching of grammar. We focus on on focus We grammar. teaching of of approach the unconventional is our program The goal of technology. to teach rural, high school students that the integration of modern, advanced modern, advanced of the integration of the interest technology to capture this year, we have launched our launched our we have this year, total prize money. total prize year to help students with living and with living and year to help students picked based on financial need or for for need or based on financial picked money in 2019. Our scholarships are Our scholarships are money in 2019. ranked university, to consult us on us on to consult university, ranked plan to plant our first seed of change of change plan to plant our first seed most significant program to date: to date: most significant program Boğaziçi University, Turkey’s highest highest Turkey’s Boğaziçi University, In collaboration with Yılport Holding, with Yılport In collaboration educational costs, to be used at used at to be costs, educational extracurricular English classes to extracurricular English classes to encourage students to create game- to create students encourage given as monthly, non-refundable non-refundable given as monthly, school grants during the academic digitally native, generation Z students. Z students. generation digitally native, Most schools and programs in Turkey in Turkey Most schools and programs We received applications from 12 from applications received We strive to lessen the gap of inequality for for inequality the gap of strive to lessen speaking and conversation through through speaking and conversation achieving high university exam scores. achieving high university and free. Therefore, we introduce them them we introduce Therefore, and free. an Innovation Contest was held to Contest an Innovation Vocational High School. With this, we High School. With this, we Vocational opportunities to youth who lack it. We We lack it. youth who to opportunities children deserve to smile. deserve children changing projects in the port industry. in the port industry. changing projects 211 students were awarded scholarship scholarship awarded 211 students were As an operating, private foundation, foundation, private As an operating, 100 students of Yılport Logistics Logistics Yılport 100 students of [GARİP AND ZEYCAN YILDIRIM FOUNDATION] YILDIRIM ZEYCAN AND [GARİP 130 132 YILDIRIM GROUP OF COMPANIES 2019 ANNUAL REPORT YILDIRIM GROUP OF COMPANIES HEADQUARTERS YILDIRIM Tower, Maslak 1453, Block B2 Maslak, 34485, Istanbul, Turkey Phone: +90 212 290 30 80 Fax: +90 212 290 30 81 E-mail: [email protected] Yildirim Holding www.yildirimgroup.com